HomeMy WebLinkAbout01-28-08 Special Called Regular Meeting of La Porte Fiscal Affairs Committee Minutes
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MINUTES OF THE SPECIAL CALLED REGULAR MEETING OF LA PORTE FISCAL AFFAIRS
COMMITTEE
January 28, 2008
1. Call to Order
The meeting was called to order by Chairman Chuck Engelken at 5:00 p.m.
Members of Committee Present: Councilmembers, Howard Ebow, Chuck Engelken, Louis
Rigby, Barry Beasley and Tommy Moser.
Members of Committee Absent: None
Members of City Council. City Executive Staff and City Employees Present: City Manager
Ron Bottoms, Assistant City Manager John Joerns, Controller Phyllis Rinehart and City
Secretary Martha Gillett.
Others present: None
2. Consider approval of Minutes of Special Called Regular Meetings of Fiscal Affairs Committee
held November 19,2007.
Motion was made by Committee Member Beasley to approve the minutes as presented. A
second by Committee Member Ebow. The motion carried.
3. Finance Director Michael Dolby presented the quarterly credit card expenditure report.
4. Controller Phyllis Rinehart presented quarterly investment reports and provided an overview.
5. Interim finance Director Michael Dolby presented quarterly purchasing card expenditure
report.
Committee members raised the following questions:
Noted there are still many out of town purchases for small amounts for items that could be
purchased locally.
Questioned why we are paying workers compensation with purchasing cards?
Staff noted it was safety supply items purchased to avoid filing claims. Committee suggested
staff have the report indicate safety supplies.
Questioned why we are paying phone and Comcast bills with purchasing cards?
Minutes of the La Porte Fiscal Affairs Committee January 28, 2008- Page 2
City Manager Ron Bottoms noted he would remind staff to keep purchases local and
coordinate trips for purchases.
The committee requested the purchasing card report stay on the agenda's for review by the
Fiscal Affairs Committee.
6. Administrative Reports.
City Manager Ron Bottoms advised the Council of the following:
He noted that he will be bringing back a report at the next meeting regarding the upcoming
changes with the Texas Municipal Retirement System.
Announced that Michael Dolby has been promoted to Finance Director.
7. Committee Comments.
The committee provided comments.
8. Adjournment
There being no further business to come before the Committee, the meeting was adjourned
at 5:25 p.m.
Respectfully submitted,
~?tk(1 t[X!i~&
Martha Gillett, TRMC, CMC
City Secretary
Approved this day of 2008.
t!lvLL<-~C C(~~...../
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REQUEST FOR CITY COUNCIL AGENDA ITEM
Agenda Date Requested:
Februarv 20. 2008
Amount Bud!!eted
Requested By: Michael Dolby, CPA Director of Financ
Source of Funds:
Account Number:
Department: FINANCE
Amount Budgeted:
Report: xx Resolution:
Ordinance:
Amount Requested:
Exhibits:
Budgeted Item:
YES
NO
Exhibits:
Receive the 2007 financial report from auditors. Auditors to make presentation and Fiscal Affairs Committee to present report to
Council regarding prior meeting with auditors.
Action ReQuired bv Council:
Receive the 2007 Comprehensive Financial Report.
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end a
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CITY OF LA PORTE, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL
REPORT
FOR THE FISCAL YEAR ENDED
SEPTEMBER 30, 2007
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CITY OF LA PORTE, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
For the fiscal year ended
September 30, 2007
Prepared by:
Department of Finance
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City of La Porte
Comprehensive Annual Financial Report
For the Fiscal Year Ended September 30,2007
TABLE OF CONTENTS
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INTRODUCTORY SECTION
Letter of Transmittal
Organization Chart
GFOA Certificate of Achievement
List of Elected Officials
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FINANCIAL SECTION
Independent 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:
Texas Municipal Retirement System Schedule of Funding Progress
Schedule of Revenues, Expenditures, and Changes in Fund
Balances - General Fund
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
Street Maintenance Sales Tax Fund
Community Investment Special Revenue Fund
Hotel/Motel Occupancy Tax Special Revenue Fund
Tax Increment Reinvestment Zone One Special Revenue Fund
Section 4B Sales Tax 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
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City of La Porte D
Comprehensive Annual Financial Report
For the Fiscal Year Ended September 30,2007
TABLE OF CONTENTS
2002 General Obligation Bonds Fund
2004 General Obligation Bonds Fund
2005 General Obligation Bonds Fund
2005 Certificate of Obligation Bonds Fund
2006 Certificate of Obligation Bonds Fund
2006 General Obligation Bonds Fund
Debt Service Fund
Supplementary Individual Fund Financial Statements and Schedules - General Fund
Schedule of Revenues - Budget and Actual
Schedule of Expenditures - Budget and Actual
Combining Financial Statements - Nonmajor Enterprise Funds:
Combining Statement of Net Assets
Combining Statement of Revenues, Expenses and Changes in Fund Net Assets
Combining Statement of Cash Flows
Combining Financial Statements - Internal Service Funds:
Combining Statement of Net Assets
Combining Statement of Revenues, Expenses and Changes in Fund Net Assets
Combining Statement of Cash Flows
Capital Assets Used in the Operation of Governmental Funds:
Schedule by Source
Schedule by Function and Activity
Schedule of Changes by Function and Activity
STATISTICAL SECTION
Net Assets by Component
Changes in Net Assets
General Government Tax Revenues by Source
Fund Balances of Governmental Funds
Changes in Fund Balances of Governmental Funds
Assessed Value and Estimated Actual Value of Taxable Property
Property Tax Rates - Direct and Overlapping Governments
Principal Property Taxpayers
Property Tax Levies and Collections
Ratios of Outstanding Debt by Type
Ratios of General Bonded Debt Outstanding
Direct and Overlapping Governmental Activities Debt
Legal Debt Margin Information
Pledged Revenue Coverage
Demographic and Economic Statistics
Principal Employers
Full-time Equivalent City Government Employees by Function
Operating Indicators by Function
Capital Asset Statistics by Function
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February 11, 2008
To the Honorable Mayor, Members of the Governing Council and Citizens of the City of La Porte,
Texas:
The Finance Department and City Manager's Office are pleased to submit the Comprehensive
Annual Financial Report for the City of La Porte, Texas for the fiscal year ended September 30,
2007. 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 GMP. Because the cost of internal controls should not outweigh
their benefits, the City of La Porte's comprehensive framework of internal controls has been
designed to provide reasonable rather than absolute assurance that the financial statements will be
free from material misstatement. As management, we assert that, to the best of our knowledge and
belief, this financial report is complete and reliable in all material respects.
The City of La Porte's financial statements have been audited by Pattillo, Brown & Hill, LLP, a firm
of licensed certified public accountants. The goal of the independent audit was to provide
reasonable assurance that the financial statements of the City of La Porte for the fiscal year ended
September 30, 2007 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, 2007, are fairly presented in
conformity with GMP. The independent auditor's report is presented as a component of the
financial section of this report.
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The independent audit of the financial statements of the City of La Port
mandated "Single Audit" designed to meet the special needs of federal g
standards governing Single Audit engagements require the independent au
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.
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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 35,362.
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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
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for developing a proposed budget. The City Manager then presents thi~ ftD,Q\blN<l't~
council for review prior to August. The council is required to hold a public he ~ ~~pEl;e
budget and to adopt a final budget by no later than August. The appropriat . .".~.t i. ~"'~aro~
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-to-actual comparisons are
provided in financial reports for each individual governmental fund for which an appropriated
annual budget has been adopted. For the general fund, this comparison is presented on page 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.
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The essential objectives of the comprehensive plan are as follows:
.:. It is a plan to guide the future physical development and redevelopme
.:. 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.
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Goals for Beautification:
.:. Improve the community character to make it a more desirable place to I
.:. Improve the aesthetic visual environment through enhancement of
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.
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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 7.42 months. The average yield on
investments was 5.14% 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 63 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.
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Awards and Acknowledgements
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The Government Finance Officers Association (GFOA) awarded a Certific r
Excellence in Financial Reporting to the City for its comprehensive annual financial report for the fiscal
year ended September 30, 2006. This was the twenty-sixth 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
Director of Finance
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Fire/EMS
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Emelgeru:)' Medical
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Police
Police
Adminktrawn
Paml
Criminal
Investigation
l Supp 011 Sewices I
Finance
CITY OF LA PORTE
ORGANIZATIONAL CHART
Accounting
Tax
UtililJ' Billing
Human Reso urces
Pun:hasing
MIS
Ci mens
~ City Secretary
A ssi stant City Man agel'
Public Works
Parks & Recreation
Pub lie Wo rl<s
Administratlon
Streets
Residential
Solid Waste
Co mmen:ial So lid
Waste
Water Production
Water D istriJ utom
Waste Water
Co Ilection
Waste Water
Treatment
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Parlls Maintenance
Recrea&n
!\> ecial Sew ices
Parl<s
Adnrlnktnw n
Planning
Planning &
Engineering
GIS Divkinn
Ill5pection Servos
Golf Cour se
Club House
Maintenance
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Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of La Porte
Texas
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
September 30, 2006
A Certificate of Achievement for Excellence in Financial
Reporting is presented by the Government Finance OMicers
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.
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CITY OF LA PORTE
LIST OF ELECTED OFFIC/1DRAFT I
ALTON PORTER
MA YOR
GEORGIA A. MALONE
COUNCIL PERSON
AT LARGE A
BARRY BEASLEY
COUNCIL PERSON
AT LARGE B
MICHAEL MOSTEIT
COUNCIL PERSON
DISTRICT 1
CHUCK ENGELKEN
COUNCIL PERSON
DISTRICT 2
HOWARD EBOW
COUNCIL PERSON
DISTRICT 3
TOMMY MOSER
COUNCIL PERSON
DISTRICT 4
LOUIS RIGBY
MAYOR PRO TEM
DISTRICT 5
MIKE CLAUSEN
COUNCIL PERSON
DISTRICT 6
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FINANCIAL SECTION
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PAT T ILL 0, B ROW N & HI L L, L.L.
CERTIFIED PUBLIC ACCOUNTANTS. BUSINESS CONSULTANTS
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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, 2007, which collectively
comprise the City's basic financial statements as listed in the table of contents. These financial
statements are the responsibility of the City's management. Our responsibility is to express opinions
on these financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United
States of America and the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States. Those standards require that we
plan and perform the audit to obtain reasonable assurance about whether the financial statements are
free of material misstatement. An audit includes examining, on a test basis, evidence supporting the
amounts and disclosures in the financial statements. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audit provides a reasonable basis for our
opmlOns.
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the governmental activities, the business-type activities, each major
fund and the aggregate remaining fund information of the City of La Porte, Texas, as of September
30, 2007, and the respective changes in financial position and, where applicable, cash flows, thereof
for the year then ended in conformity with accounting principles generally accepted in the United
States of America.
401 WEST HIGHWA Y 6. P. O. BOX 20725. WACO, TX 76702-0725. (254) 772-4901. FAX: (254) 772-4920. www.pbhcpa.com
AFFILIATE OFFICES: BROWNSYILLE, TX (956) 544-7778. HILLSBORO, TX (254) 582-2583
TEMPLE, TX (254) 791-3460. WHITNEY, TX (254) 694-4600. ALBUQUERQUE, NM (505) 266-5904
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In accordance with Government Auditing Standards, we have issued our report dated February 11,
2008, on our consideration of the City's internal control over financial report' f
its compliance with certain provisions or laws, regulations, contracts, and s~
other matters. The purpose of that report is to describe the scope of our test rV
over financial reporting and compliance and the results of that testing, and no e an 0
on the internal control over financial reporting or on compliance. That report is an integral part of
an audit performed in accordance with Government Auditing Standards and should be considered in
assessing the results of our audit.
The Management's Discussion and Analysis on pages 17 through 23, Pension System
Supplementary Information on page 75, and budgetary comparison information on pages 76 through
78 are not required parts of the basic financial statements but are supplementary information
required by accounting principles generally accepted in the United States of America. We have
applied certain limited procedures, which consisted principally of inquiries of management
regarding the methods of measurement and presentation of the required supplementary information.
However, we did not audit the information and express no opinion on it.
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the City's basic financial statements. The introductory section, combining and
individual fund statements and schedules and statistical tables are presented for purposes of
additional analysis and are not a required part of the basic financial statements. The combining and
individual fund statements and schedules have been subjected to the auditing procedures applied in
the audit of the basic financial statements and, in our opinion, are fairly stated in all material
respects in relation to the basic financial statements taken as a whole. The introductory section and
statistical tables have not been subjected to the auditing procedures applied in the audit of the basic
financial statements and, accordingly, we express no opinion on them.
February 11,2008
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CITY OF LA PORTE, TEXAS
Management's Discussion and Analysis
For the Year Ended September 30,2007
As management of the City of La Porte, we offer readers of the City's financial ;flt\DtsAh~ ve
overview and analysis of the financial activities of the City for the fiscal year ended ~nl)'\rl3\,.lbO" e
encourage readers to consider the information presented here in conjunction with add . e
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
$95,793,177 (net assets). Of this amount $23,281,484 (unrestricted net assets) may be used to meet
the City's ongoing obligations to citizens and creditors in accordance with the City's fund designation
and fiscal policies and working capital requirements.
. The City's total net assets increased by $5,797,310.
. As of the close of the current fiscal year, the City of La Porte's governmental funds reported combined
ending fund balances of $42,690,201. Of this amount, $39,811,551 (93%) is unreserved and available
for use within the City's designation and policies and working capital requirements.
. At the end of the current fiscal year, unreserved fund balance for the general fund was $13,687,895
approximately (54%) of the total general fund expenditures.
OVERVIEW OF THE FINANCIAL STA TEMENTS
This discussion and analysis is intended to serve as an introduction of the City's basic financial statements. The
City's basic financial statements are comprised of three components: 1) government-wide financial statements,
2) fund financial statements and 3) notes to the financial statements. This report also contains other
supplementary information in addition to the basic financial statements themselves.
Government-wide financial statements - The government-wide financial statements are designed to provide
readers with a broad overview of the City's finances, in a manner similar to a private-sector business.
The Statement of Net Assets presents information on all of the City's assets and liabilities, with the difference
between the two reported as net assets. Over time, increases or decreases in net assets may serve as a useful
indicator of whether the financial position of the City is improving or deteriorating.
The Statement of Activities presents information showing how the City's net assets changed during the fiscal
year. All changes in net assets are reported when the underlying event giving rise to the change occurs,
regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for
some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but
unused compensated absences).
Both of the government-wide financial statements report functions of the City that are principally supported by
taxes and intergovernmental revenues (governmental activities) from functions that are intended to recover all or
a significant portion of their costs through user fees and charges (business-type activities). The governmental
activities of the City include general government, public safety, public works, health and sanitation and culture
and recreation. The business-type activities of the City include the Water and Sewer Utilities, Airport, La Porte
Area Water Authority, Sylvan Beach Convention Center and Bay Forest Golf Course operations.
The government-wide financial statements can be found on pages 27-31 of this report.
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CITY OF LA PORTE, TEXAS
Management's Discussion and Analysis
For the Year Ended September 30, 2007
Fund financial statements - A fund is a grouping of related accounts that is use
resources that have been segregated for specific activities or objectives. The City,
governments, uses fund accounting to ensure and demonstrate compliance
requirements. All of the funds of the City can be divided into two categories -
proprietary funds.
er
al
al
governmental funds and
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.
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The City maintains 18 governmental funds. Information is presented separately in the Governmental Fund
Balance Sheet and in the Governmental Fund Statement of Revenues, Expenditures and Changes in Fund
Balances for the General, 2007 General Obligation Bond and 2005 General Obligation Bond Fund, all of which
are considered to be major funds. Data from the other 15 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.
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CITY OF LA PORTE, TEXAS
Management's Discussion and Analysis
For the Year Ended September 30,2007
Other Information - In addition to the basic financial statements and accompanYi{g1ii\tD to\; 1iil5IB~0
presents certain required supplementary information concerning the City's progress i U~).~galon to
provide pension benefits to its employees. Required supplementary information can · 'no'od 00 p.O"' 70. 8
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 YSIS
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 $95,793,177 at the close of the fiscal year.
By far the largest portion of the City's net assets ($57,010,377) 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
2007 2006 2007 2006 2007 2006
Current and other assets $ 57,295,634 $ 51,344,644 $ 6,472,819 $ 7,429,428 $ 63,768,453 $ 58,774,072
Capital assets 52,727,418 45,856,003 37,688,868 38,595,964 90,416,286 84,451,967
Total Assets 110,023,052 97,200,647 44,161,687 46,025,392 154,184,739 143,226,039
Long term liabilities 44,109,498 36,883,566 8,607,342 9,444,483 52,716,840 46,328,049
Other liabilities 5,081.971 5,545,896 1,351,282 1,356,227 6,433,253 6,902,123
Total Liabilities 49,191,469 42,429,462 9,958,624 10,800,710 59,150,093 53,230,172
Net Assets:
Invested in capital assets,
net of related debt 27,529,009 28,424,345 29,481,368 29,642,136 57,010,377 58,066,481
Restricted 13,316,591 7,363,187 2,184,725 2,185.791 15,501,316 9,548,978
Unrestricted 19,985,983 18,983,653 3,295,501 3,396,755 23,281,484 22,380,408
Total Net Assets $ 60,831,583 $ 54,771,185 $ 34,961 ,594 $ 35,224,682 $ 95,793,177 $ 89,995,867
An additional portion of the City's net assets $15,501,316 (16%) represents resources that are subject to
external restrictions on how they may be used. The remaining balance of unrestricted net assets of
$23,281,484 (24%) may be used to meet the government's ongoing obligations to citizens and creditors.
As of September 30, 2007, 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.
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CITY OF LA PORTE, TEXAS
Management's Discussion and Analysis
For the Year Ended September 30,2007
Analysis of the City's Operations - the following table provides a summary of th e
year ended September 30, 2007, with comparative totals for year ended September tal
activities increased the City of La Porte's net assets by $6,060,398. Business-type activities decreased the
City's net assets by ($263,088).
City of La Porte's Changes in Net Assets
Governrrental Business-Type
Activities Activities Total
2007 2006 2007 2006 2007 2006
Revenues:
Program Revenues: -
Charges for Services $ 4,715,891 $ 4,535,854 $ 8,696,589 $ 9,435,426 $ 13,412,480 $ 13,971,280
Operating grants and contributions 991,679 1,106,596 991,679 1,106,596
Capital grants and contributions 1,060,948 1,060,948
General revenues:
Property taxes, levied for general purposes 11,246,050 10,535,316 11,246,050 10,535,316
Property taxes, levied for debt service 1,819,554 1,661,801 1,819,554 1,661,801
Industrial payrrents 8,188,891 7,659,591 8,188,891 7,659,591
Franchise taxes 2,003,691 1,986,698 2,003,691 1,986,698
Sales tax 5,735,725 4,067,767 5,735,725 4,067,767
Unrestricted investrrent earnings 2,386,980 1,874,828 342,566 300,099 2,729,546 2,174,927
Mscellaneous 89,400 1,137,928 694,507 89,400 1,832,435
Gain on sale/retirerrent of capital assets (16,083) (16,083)
Total revenues $ 37,177,861 34,566,379 10,100,103 10,413,949 47,277,964 44,980,328
Expenses:
General Governrrent 8,410,865 7,348,812 8,410,865 7,348,812
Public Saf ety 12,153,324 11,602,951 12,153,324 11,602,951
Public Works 3,668,425 5,209,686 3,668,425 5,209,686
Health and Sanitation 2,487,531 1,862,368 2,487,531 1,862,368
Culture and Recreation 3,120,183 3,579,917 3,120,183 3,579,917
Interest on Long-term debt 1,352,747 1,226,231 1,352,747 1,226,231
Water Services 6,548,382 6,844,631 6,548,382 6,844,631
Sewer Services 2,086,651 1,894,415 2,086,651 1,894,415
Airport 123,904 122,548 123,904 122,548
Bay Forest Golf Course 1,310,589 1,285,121 1,310,589 1,285,121
Sylvan Beach Convention Center 218,053 214,552 218,053 214,552
Total Expenses 31,193,075 30,829,965 10,287,579 10,361,267 41,480,654 41,191,232
Change in net assets before transfers 5,984,787 3,736,414 (187,476) 52,682 5,797,310 3,789,096
Transfers 75,612 (3,910,056) (75,612) 3,910,056
Change in net assets 6,060,398 (173,642) (263,088) 3,962,738 5,797,310 3,789,096
Net assets - beginning 54,771,185 54,944,827 35,224,682 31,261,944 89,995,867 86,206,771
Net assets - ending $ 60,831,583 $ 54,771,185 $ 34,961 ,594 $ 35,224,682 $ 95,793,177 $ 89,995,867
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CITY OF LA PORTE, TEXAS
Management's Discussion and Analysis
For the Year Ended September 30,2007
FINANCIAL ANAL YSIS OF THE GOVERNMENT'S FUNoj D RAFT]
Governmental funds - The focus of the City of La Porte's governmental funds is tq pWllido ;nfn="t;n ,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 $42,690,201. Approximately 93% of this total amount ($39,811,551) 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 ($95,427), 2) to provide for inventories
($83,431), 3) to pay for debt service ($1,925,756), 4) to provide for municipal court building security ($123,475),
5) to provide for municipal court technology ($96,529), 6) to provide for park zone ($169,683), and 7) to provide
for confiscated funds ($346,265).
In the general fund, the City budgeted for an increase in the fund balance of $238,419. Due to actual expenses
being less than budgeted, the actual fund balance increase for fiscal year 2007 was $2,741,943. The 2007
Certificate of Obligation Fund balance increased by $8,048,780 due to issues of bonds in the current fiscal year.
The 2005 General Obligation Fund balance decreased by $6,555,527 due to the expenditure of bond proceeds.
Other Governmental fund balances increased in 2007 by $1,158,071 due to increased revenues and other
sources of financing.
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 - $1,213,407, Airport - $210,211, La Porte
Area Water Authority - $1,791,280, Sylvan Beach Convention Center - $158,144, and Bay Forest Golf Course-
($77,541). The change (decrease) in net assets of the proprietary funds in 2007 was as follows: Utility-
($970,353), Airport - $145,769, La Porte Area Water Authority - $469,531, Sylvan Beach Convention Center -
$8,915, and Bay Forest Golf Course - $83,050.
General Fund Budgetary Highlights - The City made revisions to the original appropriations approved by the
City Council. Overall these changes resulted in a decrease from the original budget of 2% or $580,094.
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 ADMIN/STRA TlON
Capital Assets - The City of La Porte's investment in capital assets for its governmental and business-type
activities as of September 30, 2007 amounts to $90,416,286 (net of accumulated depreciation). This investment
in capital assets includes land, building, equipment, improvements, infrastructure and construction in progress.
21
CITY OF LA PORTE, TEXAS
Management's Discussion and Analysis
For the Year Ended September 30,2007
Capital Assets at Year-end
Net of Accumulated Depreciation
Land
Buildings
Equipment
1m provem ents
Infrastructure
Construction in Progress
Total
Governmental
Activities
2007
$ 7,925,969
7,510,072
4,974,474
2,571,031
11,187,460
18,558,412
$ 52,727,418
Business-type
Activities
2007
$ 2,308,777
360,907
180,226
69,928,070
31,697,149
3,141,809
$ 107,616,938
Total
$ 10,234,746
7,870,979
5,154,700 -
72,499,101
42,884,609
21,700,221
$ 160,344,356
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
$49,192,500. Of this amount, $40,985,000 comprises bonded debt backed by the full faith and credit of the
government and $8,207,500 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
2007
$ 16,930,000
24,055,000
$ 40,985,000
Business-type
Activities
2007
$
5,845,000
2,362,500
$ 8,207,500
Totals
$ 16,930,000
5,845,000
26,417,500
$ 49,192,500
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The City of La Porte maintains an "Aa3", "A+", "AA" 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.
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CITY OF LA PORTE, TEXAS
Management's Discussion and Analysis
For the Year Ended September 30,2007
ECONOMIC FACTS AND NEXT YEAR'S BUDGETS AND RA
AFT
The unemployment rate for the Houston metropolitan area is currently 4.4 percent, w a
rate of 4.5 percent a year ago. This compares identical to the state's average unemployment rate of 4.2 percent
which is comparable to the national average rate of 4.6 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 $1.7 billion for fiscal year 2007 which is 6 percent higher than last year. The trend for total
assessed property values has been steadily increasing each year with an average annual increase of 3.5
percent over the past 5 years. Sales tax receipts have grown 40% this fiscal year due to an increase in
economic activity as well as an addition of a ~ cent sales tax for street maintencance. This revenue source is
the most volatile and subject to decline if an economic slowdown occurs.
Assessed A"operty Valuations
(in billions)
Sales Tax Collections
(in millions)
2.5
2003 2004 2005 2006 2007
4.5
4 ./
3.5 //
3/
25 /~.
. ,
2/"
1~r
0.5"/
oj
2003
t
2
.
./
2004
2005
2006
2007
REQUEST FOR INFORMA TlON
This financial report is designed to provide our citizens, customers and creditors a general overview of the City's
finances. Questions concerning any of the information provided in this report or requests for additional
information should be addressed to the Director of Finance, 604 West Fairmont Parkway, La Porte, Texas,
77571.
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BASIC FINANCIAL STATEMENTS
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CITY OF LA PORTE, TEXAS
Statement of Net Assets
September 30, 2007
Primary Governm
Governmental Business-type
Activities Activities Total
ASSETS
Cash and cash equivalents $ 24,872,891 $ 3,122,546 $ 27,995,437
Investments 26,415,327 1,591,913 28,007,240
Receivables, net of
allowance for un collectibles
Accounts receivable 1,936,031 931,647 2,867,678
Taxes receivable 2,153,738 2,153,738
Due from other governments 1,023,599 1,023,599
Accrued interest receivable 199,874 32,893 232,767
Other 8,978.00 8,978
Materials and supplies inventories at cost 124,839 4,540 129,379
Prepaid expenses 149,580 149,580.00
Deferred issuance costs 560,357 560,357
Restricted Assets:
Cash and cash equivalents restricted for:
Customer service deposits 514,700 514,700
Debt service 125,000 125,000
Investments restricted for debt service 758,531 758,531
Capital assets:
Land 7,925,969 2,308,777 10,234,746
Buildings and improvements 18,187,994 1,166,840 19,354,834
Improvements other than buildings 7,649,693 69,928,070 77,577,763
Infrastructure 26,957,309 26,957,309
Machinery and equipment 13,672,416 525,652 14,198,068
Construction in progress 18,558,412 3,141,809 21,700,221
Accumulated depreciation (40,224,375) (39,382,280) (79,606,655)
Total assets 110,023,052 44,920,218 154,943,270
LIABILITIES
Accounts payable 4,530,006 676,392 5,206,398
Accrued salaries payable 409,091 59,977 469,068
Due to other governments 64,445 64.445
Unearned revenue 364 48,783 49,147
Other current liabilities 7,608 7,608
Interest payable 78,065 32,310 110,375
Customer deposits 526,212 526,212
Noncurrent liabilities :
Due within one year 1,804,000 872,500 2,676,500
Due in more than one year 42,305,498 7,734,842 50,040,340
Total liabilities 49,191,469 9,958,624 59,150,093
NET ASSETS
Invested in capital assets, net of related debt 27,529,009 29.481,368 57,010,377
Restricted for:
Debt service 1,962,005 2,184,725 4,146,730
Economic development 5,004,327 5,004,327.00
Capital improvements 4,749,039 4,749,039.00
Grants and state programs 1,601,220 1,601,220
Unrestricted 19,985,983 3,295,501 23,281,484
Total net assets $ 60,831,583 $ 34,961,594 $ 95,793,177
See accompanying notes to financial statements.
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CITY OF LA PORTE, TEXAS
Statement of Activities
For The Year Ended September 30,2007
Program Reve ues
Fees, Fines and Operating Capl a
Cha rges for Grants and Grants and
Program Activities Expenses Services Contributions Contributions
Governmental activities:
General Government $ 8,410,865 $ 2,006,607 $ 30,000 $
Public Safety 12,153,324 435,128 871,320
Public Works 3,668,425
Health & Sanitation 2,487,531 1,856,013 53,591
Culture and recreation 3,120,183 418,143 36,768
Interest on Long Term Debt 1,352,747
Total governmental activities 31,193,075 4,715,891 991,679
Business-type activities:
Water Services 6,548,382 4,789,854 847,006
Sewer Services 2,086,651 2,763,715
Airport 123,904 42,359 213,942
Golf Course 1,310,589 911,371
Sylvan Beach Convention Ctr 218,053 189,290
Total business-type activities 10,287,579 8,696,589 1,060,948
Total government $ 41,480,654 $ 13,412,480 $ 991,679 $ 1,060,948
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General revenues:
Taxes:
Property taxes, levied for general purposes
Property taxes, levied for debt service
Industrial payments
Franchise
Public service
Investment earnings
Miscellaneous
Transfers
Total general revenues and transfers
Change in net assets
Net assets-beginning
Net assets-ending
See accompanying notes to basic financial statements.
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Net (Expenses) Revenues
and Changes in Net Assets
Governmental Business-type
Activities Activities Total
$ (6,374,258) $
(10,846,876)
(3,668,425)
(577,927)
(2,665,272)
(1,352,747)
(25,485,505)
$ (6,374,258)
(10,846,876)
(3,668,425)
(577,927)
(2,665,272)
(1,352,747)
(25,485,505)
(911,522) (911,522)
677,064 677,064
132,397 132,397
(399,218) (399,218)
(28,763) (28,763)
(530,042) (530,042)
$ (25,485,505) $ (530,042) $ (26,015,547)
11,246,050 11,246,050
1,819,554 1,819,554
8,188,891 8,188,891
2,003,691 2,003,691
5,735,725 5,735,725
2,386,980 342,566 2,729,546
89,400 89,400
75,612 (75,612)
31,545,903 266,954 31,812,857
6,060,398 (263,088) 5,797,310
54,771,185 35,224,682 89,995,867
$ 60,831,583 $ 34,961,594 $ 95,793,177
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CITY OF LA PORTE, TEXAS
Balance Sheet
Governmental Funds
September 30,2007
2007 Gene
Obligation
General Bonds
ASSETS
Cash and cash equivalents $ 9,726,084 $ 36,838 $
Inves tm ents 5,000,437 8,067,088 1,370,902
Receivables, net of allowance for -.
uncollectibles:
Accounts 1,936,031
Taxes 1,646,148
Intergovernm ental
Accrued interest 81,843 296 918
Other
Due from other funds 591,539
Materials and supplies inventories, at cost 83,433
Total assets 19,065,515 8,104,222 1,371,820
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable 2,411,957 55,442 290,608
Accrued salaries payable 288,407
Due to other governments
Due to other funds 591,539
Retainage payable
Deferred revenue 2,407,548
Accrued employee separation pay 100,000
Total liabilities 5,207,912 55,442 882,147
Fund balances:
Reserved for: -
Inventories 83,431
E ncum brances 86,277
Municipal Court Building Security
Municipal Court Technology Fee
Park Zone
Confiscated funds
Debt service
Unreserved, Designated for capital projects 38,084
Unreserved/U ndes ignated 13,649,811 8,048,780 489,673
Unreserved, reported in nonmajor: -
Special revenue funds
Capital projects funds
Total fund balances 13,857,603 8,048,780 489,673
Total liabilities and fund balances $ 19,065,515 $ 8,104,222 $ 1,371,820
See accompanying notes to basic financial statements.
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30
R F
Other Total
Governmental Governmental
Funds Funds
$ 10,407,778 $ 20,170,700
9,579,149 24,017,576
1,936,031
507,590 2,153,738
1,023,599 1,023,599
79,220 162,277
4,309 4,309
591,539
83,433
21,601,645 50,143,202
71,890
114,678
3,811,793
291,108
64,445
591,539
71,890
2,522,226
100,000
7,453,001
1,053,786
2,701
64,445
1,307,500
83,431
9,150 95,427
123,475 123,475
96,529 96,529
169,683 169,683
346,265 346,265
1,925,756 1,925,756
38,084
22,188,264
7,501,313 7,501 ,313
10,121,974 10,121,974
20,294,145 42,690,201
$ 21,601,645 50,143,202
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CITY OF LA PORTE, TEXAS
Reconciliation of the Governmental Funds
Balance Sheet to Statement of Net Assets
September 30,2007
Amounts reported for governmental activities in the statement of net
assets are different because:
Total fund balances - total governmental funds
Capital assets used in governmental activities are not current financial
resources and, therefore, are not reported in this fund financial
statement, but are reported in the governmental activities of the
statement of net assets.
Revenues in the statement of activities that do not provide current financial
resources are not reported as revenues in the funds
Unavailable revenues
Interest payable on long-term debt does not require current financial
resources. Therefore, interest payable is not recorded as a liability in
governmental funds balance sheets.
The assets and liabilities of certain internal service funds are not
included in the fund financial statement, but are included in the
governmental activities of the statement of net assets.
Some liabilities, (such as notes payable, capital lease contract
payable, long-term compensated absences and bonds payable), are
not due and payable in the current period and are not included in the
fund financial statement, but are included in the governmental activities
of the statement of net assets:
Bonds Payable
Premium on Issuance
Compensated Absences Payable
Bond Issuance Costs
Net assets of governmental activities
See accompanying notes to basic financial statements.
33
AF
$ 42,690,201
48,725,880
2,523,556
(78,065)
10,383,055
(40,985,000)
(326,022)
(2,662,379)
560,357
$ 60,831,583
~..
CITY OF LA PORTE, TEXAS
Statement of Revenues, Expenditures and Changes in Fund Balances
Governmental Funds
For The Year Ended September 30, 2007 F
2007 Certif cate 2005 Gen ral
of Obligation Obligation
General Bonds Bonds
REVENUES
Property taxes $ 11,137,787 $ $
Franchise taxes 2,003,691
Sales taxes 2,986,733
Donations
Industrial payments 7,987,846
Other taxes 66,937
Licenses and permits 919,923
Fines and forfeits 965,216
Charges for services 3,928,027
-..,
Intergo\lernmental 5,483
Interest 868,955 94,041 131,325
Miscellaneous 62,318
Total re\lenues 30,932,916 94,041 131,325
EXPENDITURES
Current: -
General GO\lernment 6,241,603
Public Safety 11,769,003
Public Works 2,407,428
Health and Sanitation 1,972,823
Culture and Recreation 3,103,466
Debt service:
Principal retirements
Interest and fiscal charges 129,476
Capital outlay 28,357 6,515,799
Total expenditures 25,494,323 157,833 6,515,799 -
Excess (deficiency) of re\lenues o\ler
expenditures 5,438,593 (63,792) (6,384,474)
OTHER FINANCING SOURCES (USES)
Issuance of debt 8,075,000
Premium on bonds 37,572
Transfers in 419,717
Transfers out (3,137,620) (171,053)
Proceeds from sale of Assets 21,253 -
Total other financing sources (uses) (2,696,650) 8,112,572 (171,053)
Net change in fund balances 2,741,943 8,048,780 (6,555,527)
Fund balances-beginning 11,115,660 7,045,200
Fund balances-ending $ 13,857,603 $ 8,048,780 $ 489,673
-
See accompanying notes to basic financial statements.
34
Other
Governmental
Funds
Total
Governmental
Funds
$
$ 12,990,852
2,003,691
5,227,100
30,000
8,188,891
508,625
919,923
1,243,694
3,966,801
716,103
2,117,375
77,056
37,990,111
1,853,065
2,240,367
30,000
201,045
441 ,688
278,478
38,774
710,620
1,023,054
14,738
6,831,829
1,433,089 7,674,692
11,769,003
2,407,428
1,972,823
3,103,466
1,235,000 1,235,000
1,452,811 1,582,287
3,490,535 10,034,691
7,611,435 39,779,390
(779,606) (1,789,279)
8,075,000
37,572
3,776,857 4,196,574
(1,839,180) (5,147,853)
21,253
1,937,677 7,182,546
1,158,071 5,393,267
19,136,074 37,296,934
$ 20,294,145 $ 42,690,201
FT
35
36
D FT
-
-
-
-
CITY OF LA PORTE, TEXAS
Reconciliation of the Statement of Revenues, Expenditures and
Changes in Fund Balances of Governmental Funds to th
Statement of Activities DRAF
For The Year Ended September 30, 2007
Amounts reported for governmental activities in the statement of activities are
different because:
Net change in fund balances-total governmental funds:
$ 5,393,267
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 $9,789,991 exceeded depreciation
$2,466,325 and losses from the disposition of capital assets in the current period.
7,298,727
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.
(1,094,199)
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.
(6,723,204)
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
governm ental funds:
Accrued interest not reflected in governmental funds
Additional compensated absences not reflected in governmental funds
Amortization of bond issuance costs
Amortization of premium on bonds
10,880
(145,178)
59,354
4,938
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
govern menta I activities.
1,255,813
Change in net assets of governmental activities
$ 6,060,398
37
-
CITY OF LA PORTE, TEXAS
Statement of Net Assets
Proprietary Funds
September 30, 2007 D
Business-type Activitie -
Enterprise Funds
La Porte Area Other
Utility W ate r Authority Funds
ASSETS
Current assets:
Cash and cash equivalents $ 1,687,755 $ 1,072,565 $ 362,226
Investments 860,509 547,022 184,382
Receivables, net of
allowance for uncollectibles 767,934 159,215 4,498
Accrued interest receivable 17,192 12,583 3,118 -
Miscellaneous receivables
Material and supplies inventories, at cost 4,540
Prepaid expenses 149,580 _.
Restricted cash and cash equivalents for:
Customer service deposits 468,839 45,861
Current debt service 125,000
Inves tm ents res tricted for:
Current debt service 758,531
Total current assets 3,931,769 2,699,496 600,085
Noncurrent assets:
Capital assets:
Land 224,308 2,084,469
Buildings and im provem ents 51,730 1,115,110
Improvements other than buildings 48,624,534 14,719,440 6,584,096
Vehicles and equipment 428,392 6,130 91,130
Construction in progress 2,638,994 502,815
Less accumulated depreciation (28,400,608) (5,862,846) (5,118,826 )
Total noncurrent assets 23,567,350 8,862,724 5,258,794
Total assets 27,499,119 11,562,220 5,858,879
LIABILITIES
Current liabilities:
Accounts payable 508,439 149,685 18,268
Accrued salaries payable 41,914 18,063
Unearned revenue 48,783
Other current liabilities 7,608
Accrued interest payable 20,332 11,978
Payable from restricted assets:
Current portion of revenue bonds 387,500 485,000
Customer deposits 469,342 56,870
Total current liabilities 1,427,527 646,663 149,592
Noncurrent liabilities:
Revenue bonds, net of current portion 2,225,000 5,110,000
Accrued separation pay 240,163 159,679
Total noncurrent liabilities 2,465,163 5,110,000 159,679
Total liabilities 3,892,690 5,756,663 309,271
NET ASSETS
Invested in capital assets, net of related debt 20,954,850 3,267,724 5,258,794
Restricted for debt service 1,438,172 746,553
Unrestricted (deficit) 1,213,407 1,791,280 290,814
Total net assets $ 23,606,429 $ 5,805,557 $ 5,549,608
See accompanying notes to basic financial statements.
38
AFT
Governmental
Activities -
Internal
T ota Is Service Funds
$ 3,122,546 $ 4,702,191
1,591,913 2,397,751
931,647
32,893 37,597
4,669
4,540 41 ,406
149,580
514,700
125,000
758,531
7,231,350 7,183,614
2,308,777
1,166,840
69,928,070
525,652 11,766,816
3,141,809
(39,382,280) (7,765,278)
37,688,868 4,001,538
44,920,218 11,185,152
676,392 646,323
59,977 17,983
48,783 1,694
7,608
32,310
872,500
526,212
2,223,782 666,000
7,335,000
399,842 136,097
7,734,842 136,097
9,958,624 802,097
29,481,368 4,001,538
2,184,725
3,295,501 6,381,517
$ 34,961,594 $ 10,383,055
39
....
CITY OF LA PORTE, TEXAS
Statement of Revenues, Expenses and Changes in Fund Net Ass
Proprietary Funds
For The Year Ended September 30,2007
Business-type Activities -
Enterprise Funds
La Porte Area Othe r
Utility W ate r Authority Funds
Operating revenues:
User fees $ 6,518,507 $ 1,035,062 $1,143,020
Operating expenses:
Personal services 2,333,780 949,768
Supplies 193,536 215 175,777
Other services and charges 3,154,232 721,721 257,128
Depreciation 1,531,473 441 ,91 3 267,864
Total op,erating expenses 7,213,021 1,163,849 1,650,537
Operating income (loss) (694,514) (128,787) (507,517) -
Nonoperating revenues (expenses):
Interest income 204,267 110,364 27,935
Interest expense and fiscal charges (161,364) (299,598)
Gain (loss) on sale of equipment 202,799 (2,009)
Total nonoperating revenue (expenses) 245,702 (189,234 ) 25,926
Incom e (loss) before contributions
and transfers (448,812) (318,021) (481,591 )
Capital contributions 847,006 213,942
Transfers in 54,524 538,816
Transfers out (576,065) (59,454) (33,433 )
Change in net assets (970,353) 469,531 237,734
Total net assets-beginning 24,576,782 5,336,026 5,311,874
Total net assets-ending $ 23,606,429 $ 5,805,557 $ 5,549,608
-
See accompanying notes to basic financial statements.
40
DR FT
Governmental
Activities -
Internal
Tata Is Service Funds
$ 8,696,589 $ 6,325,889
3,283,548 1,361,654
369,528 382,849
4,133,081 3,887,438
2,241,250 821,049
10,027,407 6,452,990
(1,330,818) (127,101)
342,566 269,605
(460,962)
200,790 86,418
82,394 356,023
(1,248,424) 228,922
1,060,948
593,340 1,049,222
(668,952) (22,331 )
(263,088) 1,255,813
35,224,682 9,127,242
$ 34,961,594 $ 10,383,055
41
Governmental DRAF
Activities -
Internal
Totals Service Funds
$ 8.882.084 $ 6,402.600
(6,071,642) (4,179,413)
(3,265.313) (1,344,842)
(454.871 ) 878,345
593,340 1,040,778
(668,952) (13,887)
(75,612) 1,026,891
760,701
86,305
(136,410) (517,070)
213,942
209,746
(847,500)
(504,982)
(1,188.645) (307,324)
349,430 262.737
2,930.337 (237,123)
3,279.767 25,614
2.580.316 1,930,850
2,451,428 3,078,665
$ 3,762.346 $ 4,702,191
$ (1.330.818) $ (127,101)
2.241.250 821,049
174,832 77 ,123
4,774
(149,580)
7,879 2,080
69.329 86,100
13,784 (412)
(1,490,460)
(1,443)
10,356 14,732
875,947 1,005,446
$ (454,871 ) $ 878,345
$ 3,122.546 $ 4,702,191
514,700
125,000
$ 3,762,246 $ 4,702.191
43
-
-
-
-
-
-
-'
-
...'
-
44
CITY OF LA PORTE, TEXAS
Notes to the Financial Statements
September 30, 2007
1. Summary of significant accounting policies
RAF
A. General Statement
The City of La Porte, Texas (the "City"), was incorporated on August 10, 1892, and operates under a
"Council - Manager" form of government and provides the following services as authorized by its charter:
public safety, development services, public health and welfare, culture and recreation and waterworks.
The accounting and reporting policies of the City relating to the funds included in the accompanying basic
financial statements conform to U.S. Generally Accepted Accounting Principles (GAAP) applicable to state
and local governments which include those principles prescribed by the Governmental Accounting
Standards Board (GASB), the American Institute of Certified Public Accountants and the Financial
Accounting Standards Board. The more significant accounting policies of the City are described below.
B. Financial Reportinq Entity
The City's basic financial statements include the accounts of all City operations. The City, with its elected
governing body of mayor and eight council members, is considered a primary government. As required by
generally accepted accounting principles, the basic financial statements include the City and its component
units, entities for which the government is considered to be financially accountable. Blended component
units, although legally separate entities, are, in substance, part of the government's operations. All
component units have been included as blended component units because of the significance of their
operational and financial relationships with the City.
The La Porte Area Water Authority (the "Authority") is governed by a five-member board appointed by the
City Council. Although it is a legally separate entity, the Authority provides services almost exclusively for
the City's water operations, and is in substance a part of the City's primary operations. The Authority was
created by the City to finance the operations involved in obtaining surface water supplies and converting
these supplies to potable water. This water is sold primarily to the City of La Porte (86%) with the remainder
being sold to other neighboring political subdivisions. The operations of the Authority are reported as a
proprietary fund type.
The Tax Increment Reinvestment Zone One (the "Zone") is governed by a nine-member board appointed by
the City Council. The Zone provides benefits exclusively for the City through reinvestment financing of ad
valorem taxes, which are utilized for capital improvements for the City of La Porte. The Zone is presented
as a governmental fund type.
The Section 4B Sales Tax corporation provides services that exclusively benefit the City of La Porte and is
governed by a seven-member board appointed by City Council. The Section 4B Sales Tax Corporation is
presented as a governmental fund type.
Complete financial statements for each of the individual component units may be obtained through the City
of La Porte.
C. Basis of Presentation
Government Wide Statements:
The government-wide financial statements (i.e. the statement of net assets and the statement activities)
report information on all of the nonfiduciary activities of the City, including the component units. As a
general rule the effect of interfund activity has been removed from these statements. Exceptions to this
general rule are payments reasonably equivalent in value to the interfund services provided and other
charges between the City's various functions of the government. Elimination of these charges would distort
the direct costs and program revenues reported for the various functions concerned. Governmental
activities, which are normally supported by taxes and intergovernmental revenues, are reported separately
from business-type activities, which rely significantly on fees and charges for support.
45
-
CITY OF LA PORTE, TEXAS
Notes to the Financial Statements
September 30,2007
The statement of activities demonstrates the degree to which the direct expens s of a iven ro ra 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.
1. Summary of significant accounting policies - Continued
The accounts of the City are organized on the basis of funds each of which is considered a separate
accounting entity. The operations of each fund are accounted for with a separate set of self-balancing
accounts that comprise its assets, liabilities, fund equity, revenues and expenditures or expenses, as
appropriate. Government resources are allocated to and accounted for in individual funds based on the
purposes for which they are to be spent and the means by which spending activities are controlled.
Individual funds summarized in the accompanying financial statements are classified below.
-
Fund Financial Statements:
The City segregates transactions related to certain functions or activities in separate funds in order to aid
financial management and to demonstrate legal compliance. Separate statements are presented for
governmental and proprietary activities. Major individual governmental funds and major individual
enterprise funds are reported as separate columns in the fund financial statements.
Governmental funds are those through which most governmental functions typically are financed. The
measurement focus of governmental funds is on the sources, uses and balance of current financial
resources.
The City has presented the following major governmental funds:
(a) General Fund - is the main operating fund of the City. This fund is used to account for all financial
resources not accounted for in other funds. All general tax revenues and other receipts that are not
restricted by law or contractual agreement to some other fund are accounted for in this fund.
General operating expenditures, fixed charges and capital improvement costs that are not paid
through other funds are paid from the General Fund.
(b) 2007 Certificate of Obligation Fund - This fund is used to fund is used to account for the proceeds
and expenditures related to wastewater treatment plan, ball fields and golf course cart path repair.
(c) 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 30,2007
1. Summary of significant accounting policies - Continued
Proprietary Funds are accounted for using the economic resources measurem ~l::r al
basis of accounting. The accounting objectives are determinations of net inco e financial osition nd
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 30,2007
1. Summary of significant accounting policies - Continued
Governmental fund financial statements are reported using the current financial r: nt
focus and are accounted for using the modified accrual basis of accounting. U al
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. Budoetarv 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
GMP. Budgets for the Proprietary Funds are utilized for planning, control and evaluation purposes.
They are adopted on a basis consistent with GMP except that bond principal payments and capital
asset acquisitions are treated as expenditures.
7. Budgeted amounts are amended by the City Council during the year. Individual amendments were not
material in relation to the original appropriations, which were amended.
Encumbrances represent commitments related to unperformed contracts for goods or services.
Encumbrance accounting - under which purchase orders, contracts and other commitments for the
expenditure of resources are recorded to reserve that portion of the applicable appropriation - is utilized in
the governmental funds throughout the year. Encumbered amounts lapse at year-end. However,
encumbrances generally are reappropriated as part of the following year's budget.
-
-
48
CITY OF LA PORTE, TEXAS
Notes to the Financial Statements
September 30, 2007
1. Summary of significant accounting policies - Continued
F. Cash and Investments
D
FT
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 Expenses
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:
Inter-
Fund Taxes governmental Interest Other Accounts Total
General $ 2,226,287 $ $ 81,843 $ $5,986,063 $ 8,294, 193
2007 C.O. 296 296
2005 G.O. Bonds 918 918
Nonmajor governmental 721,158 1,023,599 79,220 4,309 1,828,286
Utility 17,192 802,566 819,758
La Porte Area
Water Authority 12,583 159,215 171,798
Nonmajor enterprise 3,118 4,498 7,616
Internal service funds 37,597 4,669 42,266
Gross Receivables 2,947,445 1,023,599 232,767 8,978 6,952,342 11,165,131
Less: allowance for
uncollectibles (793,707) (4,084,664 ) (4,878,371 )
Net total receivables $2,153,738 $ 1,023,599 $ 232,767 $ 8,978 $ 2,867,678 $ 6,286,760
49
CITY OF LA PORTE, TEXAS
Notes to the Financial Statements
September 30, 2007
Governmental funds reported unearned revenue in connection with receivables
considered to be available to liquidate liabilities of the current period. Revenue r ed
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:
..".,
1. Summary of significant accounting policies - Continued
Unavailable Unearned
Nonmajor Nonmajor
General Debt Service Governmental Enterprise Total
$ 722,030 $ 114,314 $ $ $ 836,344
147,970 147,970
1,234,623 1,234,623
241,486 241,486
61,439 48,783 110,222
364 364
$ 2,407,548 $ 114,314 $ 364 $ 48,783 $ 2,571,009
Delinquent property taxes receivable
Court fines
Emergency medical services
Mowing and demolition services
Miscellanous
Grant revenues
Total deferred / unearned revenue
I. Use of Estimates
The preparation of financial statements in conformity with generally accepted accounting principles requires
management to make estimates and assumptions that affect the reported amount of assets and liabilities
and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported
amounts of revenues, expenditures, and expenses during the reporting period. Actual results may differ
from those estimates.
J. Indirect Expense Allocations
It is the policy of the City not to allocate indirect expenses to various functions in the Government-wide
Statement of Activities.
K. Restricted Assets
The City applies restricted resources when an expense is incurred for purposes for which both restricted
and unrestricted net assets are available.
L. Inventories
-
Inventories consist of material and supplies and are valued at cost (first-in, first-out). Inventories for all
funds consist of expendable supplies held for consumption and the cost thereof is recorded as an
expenditure at the time individual inventory items are issued. Reported inventories in the Governmental
Funds are offset by a fund balance reserve, which indicates they are unavailable for appropriation even
though they are a component of net current assets.
-
M. Interfund Transactions
Transactions between funds 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.
.....
50
CITY OF LA PORTE, TEXAS
Notes to the Financial Statements
September 30,2007
1. Summary of significant accounting policies - Continued
N. Capital Assets
AFT
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 30,2007, 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, 2007 is comprised of the following:
Vacation
Sick Lea\€
Total All Funds
Go\€rnmental
$ 819,979
2,078,497
$ 2,898,476
Business Type
$ 157,980
241,862
$ 399,842
Total
$ 977,959
2,320,359
$3,298,318
51
CITY OF LA PORTE, TEXAS
Notes to the Financial Statements
September 30, 2007
1. Summary of significant accounting policies - Continued
F
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
52
CITY OF LA PORTE, TEXAS
Notes to the Financial Statements
September 30,2007
2. Cash, Cash Equivalents and Investments - Continued
safekeeping receipts to the City. In accordance with Texas statutes, the safek rI he
name of the depository with proper indication of pledge of the collateral securi . to
secure funds of the City. The City must approve all collateral securities pledged and also must approve in
writing any changes to the pledged collateral securities.
The City has adopted a written investment policy regarding the investment of its funds as defined by the PFIA.
The PFIA also requires the City to have independent auditors perform test procedures related to investment
practices as provided by the Act. The City complies with the requirements of the Act and with local policies.
The City's investment policy permits investment of City funds in only the following investment types,
consistent with the strategies and maturities defined in the policy:
~ Obligations of the U.S., its agencies and instrumentalities.
~ Direct obligations of the State of Texas or its agencies.
~ Collateralized mortgage obligations directly issued by a federal agency or instrumentality of the United
States, the underlying security for which is guaranteed by an agency or instrumentality of the United
States.
~ Other obligations, the principal and interest on which are unconditionally guaranteed or insured by, or
backed by full faith and credit of the State of Texas or the United States or their agencies and
instrumentalities.
~ Obligations of states, agencies, counties, cities and other political subdivisions of any state having been
rated as to the investment quality by a nationally recognized investment firm and having received a
rating of not less than A or its equivalent.
~ Certificates of Deposit issued by state and national banks or savings and on associations domiciled in
this state that are:
a. guaranteed or insured by the Federal Deposit Insurance Corporation; or
b. secured by obligations that are described in 1-5 above, which are intended to include all direct
federal agency or instrumentality issued mortgage backed securities that have a market value of not
less than the principal amount of the certificates or in any other manner and amount provided by law
for deposit of the investing entities.
~ Certificates of Deposit and share certificates issued by a state or federal credit union domiciled in the
State of Texas that are guaranteed or insured by the Federal Deposit Insurance Corporation or the
National Credit Union Share Insurance Fund, or are secured as to principal by obligations described in 1
through 5 above in any other manner and amount provided by law for the City deposits.
~ Fully collateralized repurchase agreements having a defined termination date, secured by obligations of
the United States, its agencies or instrumentalities, pledged with a third party selected or approved by
the political entity, and placed through a primary government securities dealer, as by the Federal
Reserve or through a financial institution domiciled in the State of Texas.
~ Prime domestic banker's acceptances, defined as a banker's acceptance with a remaining term of 270
days or less, if the short-term obligations of the accepting bank or its parent are rated at least "A-1" or
"P-1" or equivalent by at least one nationally recognized credit rating agency.
~ Commercial paper that is rated at least "A-1" or "P-1" or the equivalent by either (a) two nationally
recognized credit agencies or (b) one nationally recognized credit rating agency if the paper is fully
secured by an irrevocable letter of credit issued by a U.S. or State bank.
~ SEC-registered no-load money market mutual fund (MMMF), with a dollar weighted average portfolio
maturity of 90 days or less, includes in their investment objectives the maintenance of a stable net asset
value of $1 for each share.
~ SEC-registered, no-load money market mutual funds (MMMF) that have an average weighted maturity
of less than two years, invests exclusively in obligations described above and are continuously rated as
to investment quality by at least one nationally recognized investment rating firm of no less than "AAA"
or its equivalent.
~ Authorized government investment pools that invest solely in obligations of any of the above
investments provided that the pools are rated no lower than "Aaa" or "AAA" or an equivalent by at least
one nationally recognized rating service.
53
-
CITY OF LA PORTE, TEXAS
Notes to the Financial Statements
September 30, 2007
Deposit and Investment Amounts
2. Cash, Cash Equivalents and Investments - Continued
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 $57,400,888.
The following schedule shows the City's recorded cash and investments at year-end:
Cash
Bank
Deposits Pooled Funds Investments Total
General $ 752,030 $ 8,974,054 $ 5,000,437 $14,726,521
Debt Service 98,962 1,184,409 654,535 1,937,906
Capital Projects 324,189 18,043,401 2,144,189 20,511,779
Special Revenue Funds 358,080 4,323,592 2,330,377 7,012,049
Total Governmental Funds 1,533,261 32,525,456 10,129,538 44,188,255
Internal Service Funds 362,568 4,339,625 2,397,749 7,099,942
Total Governmental Activities 1,895,829 36,865,081 12,527,287 51,288,197
Enterprise 312,153 4,208,627 1,591,911 6,112,691
Total $ 2,207,981 $ 41 ,073,709 $14,119,198 $ 57,400,888
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 in\€stments
Total in\€stment income
$ 2,635,500
23,074
$ 2,658,574
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
41,073,709
14,119,198
55,192,907
$
54
CITY OF LA PORTE, TEXAS
Notes to the Financial Statements
September 30, 2007
Interest Rate Risk
FT
2. Cash, Cash Equivalents and Investments - Continued
At year-end, the City had the following investments subject to interest rate risk disclosure, under U.S.
generally accepted accounting principles, by investment type:
Federal Home Loan Bank (FHLB)
Federal Home Loan Mortgage Corporation (FHLMC)
Federal National Mortgage Association (FNMA)
Fair
Value
$10,124,919
1,998,020
1,996,260
Weighted Average
Maturity (Months)
6.08
0.79
0.56
Total fair value
$14,119,199
Portfolio weighted average maturity
7.42
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
$14,119,199
41,073,708
$ 55,192,907
Percentage
of Total
Portfolio
26%
74%
100%
Credit Risk
At year-end balances in TexPool, a privately managed public funds investment pool was rated AAAm by
Standard & Poor's, balances in TexStar, a privately managed public funds investment pool was rated
AAAm by Standard & Poor's and balances in Logic, a privately managed public funds investment pool
was rated Aaa/MR1 + by Standard and Poor's.
Federal Home Loan Bank (FHLB) agency notes, Federal Home Loan Mortgage Corporation (FHLMC)
and Federal National Mortgage Association (FNMA) agency notes were rated AAA by Standard &
Poor's, AAA by Fitch Ratings and Aaa by Moody's Investors Service.
All credit ratings met acceptable levels required by legal guidelines prescribed in both the PFIA and the
City's investment policy. Legal guidelines require an A 1 rating by Standard & Poor's and a P-1 rating by
Moody's Investors Service for investments in commercial paper.
55
~
CITY OF LA PORTE, TEXAS
Notes to the Financial Statements
September 30,2007
3. Property tax
The appraisal of property within the City is the responsibility of the Harris Cou
"Appraisal District"). The Appraisal District is required under the Property Tax Co
within the county on the basis of 100% of its market value. The value of real pr
District must be reviewed every five years; however, the City may, at its own expense, require annual
reviews of appraised values. The City may challenge appraised values established by the Appraisal District
through various appeals and, if necessary, take legal action. Under this legislation, the City continues to set
tax rates on City property. However, if the effective tax rate, excluding tax rates for repayment of general
obligation bonds and other contractual obligations, adjusted for new improvements, exceeds the rate for the
previous year by more than 8 percent, qualified voters of the City may petition for an election to determine
whether to limit the tax rate to no more than 8 percent above the effective tax rate.
The City's property taxes are levied annually in October on the basis of the Appraisal District's assessed
values as of January 1 of that calendar year. Appraised values are established by the Appraisal District at
market value, assessed at 100% of appraised value and certified by the Harris County Appraisal District
Board of Review. The City's property taxes are billed and collected by the City's Tax Assessor/Collector.
Such taxes are applicable to the fiscal year in which they are levied and become delinquent with an
enforceable lien on property on January 1 of the current calendar year.
The City is permitted, by Article XI, Section 5, of the State of Texas Constitution and the City Charter, to levy
property taxes up to $2.50 per $100 of assessed valuation for general governmental services. Within the
$2.50 maximum levy, there is no legal limit upon the amount of property taxes, which can be levied for debt
service. The property tax rates to finance general governmental services and debt service for the 2006-07
tax year were $0.612 and $0.098, respectively, per $100 of assessed valuation. The 2006 assessed value
and total tax levy as adjusted through September 30, 2007 were $1,792,232,683 and $12,724,857
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.
56
CITY OF LA PORTE, TEXAS
Notes to the Financial Statements
September 30, 2007
4. Capital Assets
RAFT
Capital asset activity for the year ended September 30,2007 was as follows:
Beginning Ending
Balance Retirements & Balance
10/01/06 Additions Adjustments 09/30/07
Governmental activities:
Capital assets, not being depreciated:
Land $ 7,685,517 $ 47,259 $ 193,193 $ 7,925,969
Construction in progress 9,983,974 8,792,822 (218,384) 18,558,412
Total capital assets, not being depreciated 17,669,491 8,840,081 (25,191) 26,484,381
Capital assets, being depreciated:
Buildings and impro\€ments 17,732,228 459,611 (3,845) 18,187,994
Impro\€ments other than buildings 7,687,858 (38,165) 7,649,693
Infrastructure 26,873,816 83,493 26,957,309
Machinery and equipment 13,319,881 823,287 (470,752) 13,672,416
Total capital assets being depreciated 65,613,783 1,366,391 (512,762) 66,467,412
Less accumulated depreciation for:
Buildings 9,955,507 731,296 (8,881 ) 10,677,922
Impro\€ments other than buildings 4,772,854 305,808 5,078,662
Machinery and equipment 8,102,362 1,006,499 (410,919) 8,697,942
Infrastructure 14,596,546 1,173,303 15,769,849
Total accumulated depreciation 37,427,269 3,216,906 (419,800) 40,224,375
Total capital assets, being depreciated, net 28,186,514 (1,850,515) (92,962) 26,243,037
Go\€mmental activities capital assets, net $45,856,005 $ 6,989,566 $ (118,153) $ 52,727,418
57
CITY OF LA PORTE, TEXAS
Notes to the Financial Statements
September 30, 2007
4. Capital Assets - Continued
Beginning
Balance R nce
10/01/06 Additions Adjustments 09/30/07
Business-type activities:
Capital assets, not being depreciated:
Land $ 2,350,478 $ $ (41,701) $ 2,308,777
Construction in progress 2,638,961 512,348 (9,500) 3,141,809
Total capital assets, not being depreciated 4,989,439 512,348 (51,201 ) 5,450,586 -
Capital assets, being depreciated
Buildings and improvements 1,166,840 1,166,840
Improvements other than buildings 69,181,355 737,215 9,500 69,928,070
Machinery and equipment 429,184 136,300 (39,832) 525,652
Total capital assets, being depreciated 70,777,379 873,515 (30,332) 71,620,562
Less accumulated depreciation for:
Buildings and improvements 756,982 48,951 805,933
Improvements other than buildings 36,061,363 2,169,558 38,230,921
Machinery and equipment 352,538 22,649 (29,761 ) 345,426
Total accumulated depreciation 37,170,883 2,241,158 (29,761) 39,382,280
Total capital assets, being depreciated net 33,606,496 (1,367,641 ) (571 ) 32,238,286
Business-type activities capital assets, net $38,595,935 $ (855,294) $ (51,773) $ 37,688,868
58
CITY OF LA PORTE, TEXAS
Notes to the Financial Statements
September 30, 2007
4. Capital Assets - Continued
Depreciation expense was charged to functions/programs of the primary governm
F
Go\€rnmental activities:
General go\€rnment
Public safety
Public works
Culture and Recreation
Capital assets held by the go\€rnment's internal service funds are
charged to the various functions based on their usage of the assets
Total depreciation expense - go\€rnmental activities
Business-type activities:
Water & Sewer Services
Ai rport
Golf Course
Sylvan Beach Pavillion
Total depreciation expense - business-type activities
$ 322,829
320,920
1,248,027
504,080
821,050
$3,216,906
$1,973,293
108,772
144,221
14,871
$2,241,157
The City has active construction projects as of September 30,2007. Total accumulated commitments for
ongoing capital projects are composed of the following:
Utility Capital Projects Fund
8ylvan Beach Fund
Airport Fund
Hotel/Motel Occupancy Tax Fund
TIRZ Fund
General CIP
81998 General Obligation Bonds
82000 General Obligation Bonds
82002 General Obligation Bonds
82004 Cert. of Obligation Bonds
82005 General Obligation Bonds
82005 Cert. of Obligation Bonds
82006 Cert. of Obligation Bonds
82006 GO Bonds
Total
Construction
In Progress
$ 2,638,994
34,905
467,911
77,097
201,170
803,593
558,210
1,346,698
2,483,711
3,459,290
8,479,352
120,272
1,002,431
26,590
$ 21,700,224
59
Remaining
Contract
Balance
$ 419,195
132,704
13,170
100,184
487,649
168,250
364,045
17,917
108,435
$ 1,811,549
CITY OF LA PORTE, TEXAS
Notes to the Financial Statements
September 30,2007
At September 30, 2007 bonds payable consisted of the following individual issues:
F
5. Long Term Liabilities
1998 General Obligation Serial Bonds;
due in annual installments of $125,000
through March 15, 2019; interest at 4.25% to 6.25%
Governmental
$ 1,500,000
Business-type
$
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%
250,000
1999 La Porte Area Water Authority Contract Revenue Refunding Bonds
due in annual payments through March 15, 2017; interest at 7% to 7.5%
5,595,000
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%
2,200,000
2000 Certificates of Obligation
due in annual installments of $150,000
through March 15, 2020; interest at 5% to 7%
1,950,000
2002 Limited Tax Bonds
due in annual installments of $270,000
through March 15, 2025; interest at 4.25% to 5%
4,860,000
2004 Certificates of Obligation
due in annual payments through March 15, 2025; interest at 3.6% to 4.45%
6,590,000
2005 General Obligation Serial Bonds 7,170,000
due in annual payments through March 15, 2025; interest at 3.75% to 4.25%
-
2005 Certificates of Obligation 1,675,000
due in annual payments through March 15, 2015; interest at 2.8% to 3.8%
2006 Public Property Finance Contractual Obligation 2,362,500
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%
2007 Certificate of Obligation 8,075,000
due in annual payments through March 15, 2029; interest at 4.00% to 4.25%
Total Bonds Payable
$ 40,985,000
$ 8,207,500
60
CITY OF LA PORTE, TEXAS
Notes to the Financial Statements
September 30, 2007
5. Long Term Liabilities - Continued
Changes in Outstanding Debt-
RAFT
Transactions for the year ended September 30,2007 are summarized as follows:
Balance Issues Balance
October 1, or Payments or September 30, Due within
2006 Mditions Expenditures 2007 one year
Governmental Type Activities
General Obligation Bonds $ 17,740,000 $ $ 810,000 $ 16,930,000 $ 865,000
Certificates of Obligation 16,405,000 8,075,000 425,000 24,055,000 790,000
Premium on debt issues 293,388 37,572 4,938 326,022
Compensated Absences 2,517,201 319,220 37,945 2,798,4 76 149,000
Total governmental fund types 36,955,589 8,431,792 1,277 ,883 44,109,498 1,804,000
Business Type Activities
Revenue Bonds Payable 6,430,000 585,000 5,845,000 610,000
Public Property Finance
Contractual Obligation 2,625,000 262,500 2,362,500 262,500
Compensated absences 389,486 47,907 37,551 399,842 30,000
Total business fund types 9,444,486 47,907 885,051 8,607,342 902,500
Total of all fund types $ 46,400,075 $ 8,4 79,699 $ 2,162,934 $ 52,716,840 $ 2,706,500
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.
61
CITY OF LA PORTE, TEXAS
Notes to the Financial Statements
September 30, 2007
5. Long Term Liabilities - Continued
Revenue Bonds -
Water and Sewer Revenue Bonds constitute special obligations of the City solely
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 30,2007.
Below is a reconciliation of the various restricted cash and cash investments:
Current Maturities of Re\€nue Bonds
Customer Deposits Payable
Total Restricted Cash and Cash In\€stments
as of September 30, 2007
$ 883,531
514,700
$1,398,231
62
-
CITY OF LA PORTE, TEXAS
Notes to the Financial Statements
September 30,2007
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 30,2007, are
as follows:
General Obligation Bonds
Govemmental Activities Business-type Activities
Year Ending
September 30 Principal Interest Principal Interest Total
2008 $ 865,000 $ 724,726 $ - $ $ 1,589,726
2009 875,000 684,138 1,559,138
2010 895,000 644,779 1,539,779
2011 930,000 605,335 1 ,535,335
2012 945,000 564,444 1 ,509,444
2013-2017 4,985,000 2,182,312 7,167,312
2018-2022 4,765,000 1,076,948 5,841,948
2023-2025 2,670,000 179,514 2,849,514
Total $16,930,000 $ 6,662,196 $ $ $ 23,592,196
Certificate of Obligations
Governmental Activities
Year Ending
September 30 Principal Interest
2008 $ 790,000 $ 1,097,552
2009 820,000 966,628
2010 860,000 931,618
2011 895,000 896,048
2012 950,000 858,518
2013-2017 5,860,000 3,588,968
2018-2022 6,970,000 2,233,904
2023-2027 5,765,000 725,271
2028-2029 1,145,000 48,615
Total $24,055,000 $ 11,347,123
Revenue Bonds
Governmental Activities
Year Ending
September 30 Principal Interest
2008 $ - $
2009
2010
2011
2012
2013-2017
Total $ $
63
Business-type Activities
Principal Interest Total
$ 610,000 $ 281,688 $ 891,688
630,000 247,788 877,788
525,000 215,456 740,456
550,000 185,513 735,513
580,000 170,667 750,667
2,950,000 482,306 3,432,306
$5,845,000 $ 1 ,583,418 $ 7,428,418
Business-type Activities
Principal
$ 262,500
262,500
262,500
262,500
262,500
1,050,000
Interest
$ 83,449
73,631
63,814
53,996
44,179
78,540
$2,362,500 $ 397,609
Total
$ 2,233,501
2,122,759
2,117,932
2,107,544
2,115,197
10,577,508
9,203,904
6,490,271
1,193,615
$ 38, 162,232
CITY OF LA PORTE, TEXAS
Notes to the Financial Statements
September 30, 2007
5. Long Term Liabilities - Continued
Bonds Authorized and Unissued-
T
At September 30, 2007, the City had $4,100,000 in Certificate of Obligations Bond
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, 2007, $2,025,000 of
the refunded bonds has been paid and $5,595,000 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 2006 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.
64
CITY OF LA PORTE, TEXAS
Notes to the Financial Statements
September 30, 2007
6. Pension Benefits - Continued n
Members can retire at ages 60 and above with 10 or more years of service or N ce
regardless of age. The Plan also provides death and disability benefits. A memb rs.
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
2004
2005
2006
Annual
Pension
Cost (APC)
$ 2,037,218
1,984,770
1,952,908
December 30, 2006
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.
65
...
CITY OF LA PORTE, TEXAS
Notes to the Financial Statements
September 30, 2007
Texas Statewide Emergency Services Personnel Retirement Fund
6. Pension Benefits - Continued
Summary of Significant Accounting Policies and Plan Asset Matters
The Texas Statewide Emergency Services Personnel Retirement Fund financial statements are prepared
using the accrual basis of accounting. The Fund's fiscal year is from September 1 through the following
August 31. Contributions are recognized as revenues in the period in which they are due to the Fund. No
contributions applicable to the H.B. 258 Texas Local Fire Fighters Retirement Act (TLFFRA) are included
herein.
The Texas Statewide Emergency Services Personnel Retirement Fund investments are reported at a
smoothed market-related value.
Plan Description
The Fire Fighters' Pension Commission is the administrator of the Texas Statewide Emergency Services
Personnel Retirement Fund, a cost sharing multiple employer pension system established and administered
by the State of Texas to provide pension benefits for emergency services personnel who serve without
monetary remuneration. The Texas Statewide Emergency Services Personnel Retirement Fund is
considered a component unit of the State of Texas financial reporting entity and is included in the State's
financial reports as a pension trust fund. At August 31, 2006 there were 181 member departments
participating in the pension system. The following table summarizes the pension system membership as of
August 31,2006:
Retirees and beneficiaries currently receiving benefits
Terminated members entitled to benefits but not yet receiving those
Current active members (vested and non-vested)
1,766
1,815
4,480
The pension system was created by Senate Bill 411, 65th Legislature, Regular Session (1977). Benefit
provisions include retirement benefits as well and death and disability benefits. Members are vested at the
beginning of the fifth year of service, at 5 percent per year of service for the first ten years and 10 percent
for each of the next five years of service.
Upon reaching age 55, a vested member may retire and receive a monthly pension equal to his vested
percentage multiplied by six times the governing body's average monthly contribution over the member's
years of qualified service. For years of service in excess of 15 years, this monthly benefit is increased at the
rate of 6.2 percent compounded annually.
Death and disability benefits are dependent on whether or not the member was engaged in the performance
of duties at the time of death or disability. Death benefits include a lump-sum amount and continuing
monthly payments to a member's surviving spouse and/or dependents.
Contribution requirements were established by S.B. 411, 65th Legislative, Regular Session (1977) and no
contributions are required by members. As of September 1, 2006, the governing bodies of participating
department members are required to contribute at least $16 per month for each member. Additional
contributions may be necessary to pay for unfunded prior service costs and "buybacks" of vested benefits.
The State may also be required to make a limited amount of annual contributions to make the fund
actuarially sound.
66
CITY OF LA PORTE, TEXAS
Notes to the Financial Statements
September 30, 2007
6. Pension Benefits - Continued
Contributions Required and Contributions Made
D
AFT
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
2005 13,104 100%
2006 10,360 100%
2007 13,440 100%
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 Receivables, Payables and Transfers
Interfund transfers during the year ended September 30, 2007 were as follows:
Transfer In:
Other Other Internal
General Governmental Utility Enterprise Service
Transfer out: Fund Funds Fund Funds Funds Totals
General fund $ - $ 1,695,956 $ 54,524 $ 473,816 $ 913,324 $ 3,137,620
2005 G.O. fund 171,053 171,053
Other governmental funds 1,774,180 65,000 1,839,180
Utility fund 362,396 135,668 78,001 576,065
La R)rte Area water authority fund 57,321 2,133 59.454
Other enterprise funds 33.433 33.433
Internal service funds 22,331 22,331
Total $ 419,717 $ 3,776,857 $ 54,524 $ 538,816 $1,049,222 $ 5,839,136
Transfers are used to 1) for general and administrative transfer from Utility Fund to the General Fund, 2)
transfer to the Insurance Fund for liability insurance and worker's compensation, 3) annual transfers to fund
capital projects, 4) annual transfers fro debt service, 5) transfer from General Fund to La Porte Area Water
Authority for an operator's agreement, 6) transfers to fund an employee incentive program and 7) transfer
from Hotel/Motel to the Golf Fund for advertising expenditures.
67
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CITY OF LA PORTE, TEXAS
Notes to the Financial Statements
September 30, 2007
In the year September 30,2007, the government made the following one-time tran
FT
7. Interfund Receivables, Payables and Transfers - Continued
A transfer of $203,621 from the General Fund to the Insurance Fund for additional funding for health
insurance for health insurance shortfall. A transfer of $171,053 was made from the General Fund to the
Capital Projects Fund for additional funding for the police building. A transfer of $400,000 was made from
the General Fund to the Golf Course Fund to establish a positive fund balance. A transfer of $250,000 from
the Section 4B Fund for loan for street projects until sales tax funds are collected. A transfer was made from
the General Fund to the Community Investment Fund for purchase of a building on Main Street. A transfer
of $662,000 to Tax Increment reinvestment Zone Fund from 2006 Certificates of Obligation to reimburse for
trunk sewer project. A transfer of $130,000 was made from the 2005 Certificates of Obligation Fund to the
2006 Certificates of Obligation Fund. A transfer of $54,524 was made from the General Fund to the Utility
Fund for 3.25% salary adjustments. A transfer of $3,537 was made from the General Fund to the Sylvan
Beach Fund for 3.25% salary adjustments. A transfer of $3,000 was made from the General Fund to the
Insurance Fund for 3.25% salary adjustments. A transfer of $7,751 was made from the General Fund to the
Technology Fund for 3.25% salary adjustments. A transfer of $17,403 was made from the General Fund to
the Vehicle Maintenance Fund for 3.25% salary adjustments. A transfer of $20,279 was made from the
General Fund to the Golf Course Fund for 3.25% salary adjustments. A transfer of $2,209 was made from
the General Fund to the Hotel Motel Fund for 3.25% salary adjustments.
The composition of interfund balances as of September 30, 2007 is as follows:
Due to/from other funds:
Receivable Fund
Payable Fund
General
2006 General Obligation
$ 591,539
$ 591,539
The outstanding balances result from overdraws of pooled cash.
8. Risk Management
The City is exposed to various risks related to torts: theft, damage to and destruction of assets; errors and
omissions; and natural disasters. The City's risk management program encompasses various means of
protecting the City against loss by obtaining property, casualty and liability coverage from participation in a
risk pool. The participation of the City in the risk pool is limited to the payment of premiums. Further
information regarding the pool is provided below. Settled claims have not exceeded insurance coverage in
any of the previous three fiscal years. There has not been any significant reduction in insurance coverage
from that of the previous year.
Health Insurance Benefits
The City self-insures a portion of health insurance benefits provided to employees. The City records
revenues and expenses for providing employee health coverage in an Internal Service Fund and accrues
the estimated incurred but not reported claims. Charges are assessed to various City divisions based on
their full-time employee count.
68
CITY OF LA PORTE, TEXAS
Notes to the Financial Statements
September 30, 2007
8. Risk Management - Continued
D
F
Activity during the year included:
Re\.enues:
Charges to di\hsions
Charges to employees
Charges to retirees
Total re\.enues
$2,976,165
475,173
88,027
3,539,365
Expenses:
Personnel expenses
Other expenses
Claims administration
Claims incurred
Re-insurance premiums
Total health ser\hces expenses
410,896
253,897
117,021
2,441,585
256,615
$ 3,480,014
Included in the claims paid amount is $509,552 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, 2007 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 2005, 2006 and 2007 are
as follows:
Beginning Current Payment End of
of Year Year for Year
Accrual Estimates Claims Accrual
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
Fiscal Year 2007 406,650 2,441,585 2,338,683 509,552
Risk Pool
The City is a member of the Texas Municipal League Intergovernmental Risk Pool, an unincorporated
association of 1,860 political subdivisions of the State of Texas. The Pool contracts with a third party
administrator for administration, investigation and adjustment services in the handling of claims. All loss
contingencies, including claims incurred but not reported, if any, are recorded and accounted for by the
Pool.
69
CITY OF LA PORTE, TEXAS
Notes to the Financial Statements
September 30, 2007
9. Commitments and Contingent Liabilities
From time to time, the City is a defendant in legal proceedings relating to its opera 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
10. Post-Employment Benefits - Continued
CITY OF LA PORTE, TEXAS
Notes to the Financial Statements
September 30,2007
Employees who retire after January 1, 2006 and who have a combination of years
La Porte plus age totaling 80 and who retire as a qualified annuitant under the Tex t
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
$522,727
$434,700
Retiree Cost
Number of
Retired Employees
$88,027
63
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
D
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REQUIRED SUPPLEMENTARY INFORMATION
73
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74
Required Supplementary Information
Texas Municipal Retirement System
Schedule of Funding Progress
For the Last Three Fiscal Years
D
AFT
Actuarial
Accrued UAAL as a
Actuarial Liability Unfunded Percentage
Actuarial Value of (AAL) - AAL Funded Covered of Covered
Valuation Assets Entry Age (UAAL) Ratio Payroll Payroll
Date (a) (b) (b-a) (a/b) (c) [(b-a)/c]
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
2007 47,065,757 58,587,551 11,521,794 80.3 14,879,306 77.4
75
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Required Supplementary Information
CITY OF LA PORTE, TEXAS
General Fund
Schedule of Revenues, Expenditures and Changes in Fund
Budget and Actual
For The Year Ended September 30, 2007
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual Amounts (Negative)
REVENUES
-
Property taxes $10,784,211 $11,055,787 $ 11,137,787 $ 82,000
Franchise taxes 1,990,809 1,910,745 2,003,691 92,946
Sales taxes 2,434,772 2,701,493 2,986,733 285,240
Industrial payments 6,836,257 8,064,619 7,987,846 (76,773)
Other taxes 57,280 61,497 66,937 5,440
Licenses and perm its 447,880 783,880 919,923 136,043
Fines and forfeits 753,164 841,203 965,216 124,013 -
Charges for services 3,759,198 3,877,598 3,928,027 50,429
Intergovern mental 5,934 5,483 (451 )
Interest 650,000 879,700 868,955 (10,745)
Miscellaneous 25,000 24,613 62,318 37,705
Total revenues 27,738,571 30,207,069 30,932,916 725,847
EXPENDITURES -
General Government:
Adm inistration 2,426,193 2,444,689 2,353,089 91,600
Finance 3,749,892 2,976,891 2,244,033 732,858
Planning & Engineering 1,710,980 1,750,278 1,644,481 105,797
Public Safety:
Fire 3,583,768 3,646,519 3,609,570 36,949
Police 8,151,177 8,230,444 8,159,433 71,011 -
Public Works:
Public Works Administration 302,682 306,196 302,604 3,592
Streets 2,203,457 2,180,686 2,104,824 75,862
Health and Sanitation:
Solidwaste 1,867,025 1,963,119 1,972,823 (9,704)
Culture and Recreation 3,225,175 3,141,433 3,103,466 37,967
Total expenditures 27,220,349 26,640,255 25,494,323 1,145,932
Excess (deficiency) of revenues
over expenditures 518,222 3,566,814 5,438,593 1,871,779
OTHER FINANCING SOURCES (USES)
Sale of capital assets 5,000 21,253 16,253
Transfers in 397,635 419,717 419,717
Transfers out (677 ,438) (3,126,873) (3,137,620) (10,747)
Total other financing sources (uses) (279,803) (2,702,156) (2,696,650) 5,506
Net change in fund balances 238,419 864,658 2,741,943 1,877,285
Fund balances-beginning 11,115,660 11,115,660 11,115,660 -
Fund balances-ending $11,354,079 $11,980,318 $ 13,857,603 $ 1,877,285
76
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77
CITY OF LA PORTE, TEXAS
Notes to the Required Supplementary Information
September 30, 2007
F
Budqetarv Basis of Accountinq
An annual budget is adopted for the General Fund using the modified accrual basis of accounting, a basis
sanctioned by, and consistent with, generally accepted accounting principles.
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78
COMBINING FINANCIAL STATEMENTS
NONMAJOR GOVERNMENTAL FUNDS
FT
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.
Street Maintenance Sales Tax Fund - This fund is used to account for the additional sales tax collected for
street maintenance.
Community Investment Fund - This fund is used to account for funds received and expended on community
beautification and revitalization programs.
Hotel/Motel Occupancy Tax Fund - This fund is used to account for the accumulation of resources from the
Hotel/Motel Tax assessment levied by the City. These monies are to be spent to promote the development or
progress of the City within the guidelines set forth on disposition of revenues collected under the authority of the
Texas Hotel Occupancy Act (Article 1269; Vernon's Texas Civil Statutes).
Tax Increment Reinvestment Zone One Fund (TIRZ) - This fund is used to account for the disposition of
property taxes collected on specific parcels within the boundaries of the TIRZ for the exclusive benefit of the
City's capital improvement programs.
Section 4B Sales Tax Fund - This fund is used to account for funds received from the ;;2 cent sales tax
dedicated to certain economic and infrastructure projects.
Capital Projects Funds
Capital projects funds are used to account for the acquisition and construction of major capital facilities other
than those financed by proprietary funds.
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.
79
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 p
related to the purchase of an aerial fire truck, Bayshore Water/Sewer Replac
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 Wests ide Park Improvements.
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Debt Service Fund
Debt service Fund is used to pay interest and extinguish debt of the outstanding General Obligation Issues of
the City.
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CITY OF LA PORTE, TEXAS
Combining Balance Sheet
Nonmajor Governmental Funds
September 30,2007
82
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Special
Special Revenue Funds Revenue Funds Capital Projects Funds
Tax Increment Transportation 1998 General
Reinvestment Section 4B Capital & Other Obligation
Zone One (TIRZ) Sales Tax T ota Is Projects Infrastructure Bonds
$ 42,853 $ 2,748,287 $ 4,681,672 $ 1,705,444 $ 771,100 $ 760,201
21,593 1,401,661 2,330,377 869,797 393,270 387,732
265,668 398,502
662,000 1,018,883 4,716
21,959 36,203 13,650 6,159 6,071
726,446 4,437,575 8,465,637 2,593,607 1,170,529 1,154,004
563 140,959 648,688
1,343 2,701
10,753 7,277
64,445 64,445
364
64,445 1,906 219,222 655,965 0
9,150
123,475
96,529
169,683
346,265
$
662,001
662,001
726,446
$
4,435,669
4,435,669
4,437,575
$
7,501 ,313
8,246,415
8,465,637
1,937,642
1,937,642
$ 2,593,607
$
1,170,529
1,170,529
1,170,529
$
1,154,004
1,154,004
1,154,004
83
CITY OF LA PORTE, TEXAS
Combining Balance Sheet
Nonmajor Governmental Funds
September 30,2007
(Continued)
F
Capital Projects Funds
2000 Certificate 2000 General 2002 General 2004 Certificate
of Obligation Obligation Obligation of Obligation
Bonds Bonds Bonds Bonds
ASSETS
Cash and cash equivalents $ 18,517 $ 227,719 $ 1 0,094 $ 371,480
Investments 9,444 71,674 74,353 797,024
Taxes receivable -
Intergovernmental receivable
Other receivables 2,157
Accrued interest receivable 148 1,094 67 2,967
Total assets 28,109 300,487 84,514 1,173,628
LIABILITIES AND FUND BALANCES
Liabilities: -
Accounts payable 25,720 24,464 6,672 10,391
Accrued salaries payable
Retainage payable 48,404
Due to other governments
Deferred revenue
Total liabilities 25,720 24,464 55,076 10,391
Fund Balances:
Reserved for:
Encumbrances
Municipal Court Building Security
Municipal Court Technology Fee
Park Zone
Confiscated funds
Debt Service
Unreserved 2,389 276,023 29,438 1,163,237
Total fund balances 2,389 276,023 29,438 1,163,237
Total liabilities and fund balances $ 28,1 09 $ 300,487 $ 84,514 $ 1,173,628
-
-
84
D
FT
Capital Projects Funds
2005 Certificate 2006 Certificate 2006 General Total Nonmajor
of Obligation of Obligation Obligation Debt Governmental
Bonds Bonds Bonds Totals Service Funds
$ 20,979 $ 212,970 $ 344,231 $ 4,442,735 $ 1,283,371 $ 10,407,778
748,782 2,307,833 934,328 6,594,237 654,535 9,579,149
109,088 507,590
4,716 1,023,599
2,152 4,309 4,309
168.00 1,132 1,830 33,286 9,731 79,220
772,081 2,521,935 1,280,389 11,079,283 2,056,725 21,601,645
38,965 82,724 58,548 896,172 16,655 1,053,786
2,701
5,456 61,137 71,890
64,445
114,314 114,678
44,421 82,724 58,548 957,309 130,969 1 ,307,500
1,925,756
9,150
123,475
96,529
169,683
346,265
1,925,756
17,623,287
20,294,145
$ 21,601,645
$
727,660
727,660
772,081
2,439,211
2,439,211
$ 2,521,935
1 ,221 ,841
1 ,221 ,841
$ 1,280,389
10,121,974
10,121,974
$ 11,079,283
1,925,756
$ 2,056,725
85
CITY OF LA PORTE, TEXAS
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances
Nonmajor Governmental Funds
For The Year Ended September 30,2007
D
Special Revenue Funds
Street Hote 11M ote I
Maintenance Community Occupancy
Grant Sales Tax Investment Tax
REVENUES
Property taxes $ $ $ $
Donations
Intergovern menta I 710,620
Sales taxes 746,789
Industrial payments 201,045
Other taxes 441 ,688
Interest 13,991 18,275 30,324 24,830
Fines and forfeitures 278,478
Charges for services 36,360
Miscellaneous 2,000 12,738
Total revenues 1,039,449 765,064 233,369 479,256
EXPENDITURES
Current:
Adm inistration 748,293 94,573 251,901
Capital Outlay 36,197 447,270
Debt Service: -
Principal
Interest
Interest and fiscal charges
Total expenditures 748,293 36,197 541,843 251,901
Excess (deficiency) of revenues over
expenditures 291,156 728,867 (308,474) 227,355
OTHER ANANCING SOURCES (USES)
Issuance of debt
Premium on bonds
Transfers in 250,000 500,000 2,209
Transfers out (65,000)
Total other financing sources (uses) 250,000 500,000 (62,791 )
Net change in fund balances 291,156 978,867 191,526 164,564
Fund balances-beginning 456,274 662,264 404,094
Fund balances-ending $ 747,430 $ 978,867 $ 853,790 $ 568,658
86
662,000 1,414,209 1,364,800
(982,180) (1,047,180)
662,000 (982,180) 367,029 1,364,800
484,734 582,054 2,692,901 766,369 55,469 26,928
177,267 3,853,615 5,553,514 1,171,273 1,115,060 1,127,076
$ 662,001 $ 4,435,669 $ 8,246,415 $ 1,937,642 $ 1,170,529 $ 1,154,004
Special Revenue Funds
Tax Increment
Reinvestment Section 4B
Zone One (TIRZ) Sales Tax
$
$
34,213
1,493,578
7,181
190,318
41,394
1,683,896
218,660
119,662
218,660
119,662
(177,266)
1,564,234
DRAF
Special
Revenue Funds
Totals
$ 34,21 3 $
710,620
2,240,367
201,045
441 ,688
284,919
278,478
36,360
14,738
4,242,428
Capital Projects Funds
Transportation 1998 General
& Other Obligation
Infrastructure Bonds
Capital
Projects
$
$
30,000
77 ,584
55,469
55,496
2,414
55,469
55,496
109,998
1,433,089
483,467
708,429
28,568
28,568
708,429
1,916,556
2,325,872
(598,431 )
26,928
55,469
87
CITY OF LA PORTE, TEXAS
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances
Nonmajor Governmental Funds
For The Year Ended September 30, 2007 AFT
(Continued)
Capital Projects Funds
2000 Certificate 2000 General 2002 General 2004 General
of Obligation Obligation Obligation Obligation
Bonds Bonds Bonds Bonds
REVENUES
Property taxes $ $ $ $
Donations
Intergovernm ental
Sales taxes
Industrial payments
Other taxes
Interest 1,332 24,699 27.576 50,183
Fines and forfeitures
Charges for services
Miscellaneous
Total revenues 1,332 24,699 27,576 50,183
EXPENDITURES
Current:
Adm inistration
Capital Outlay 720,625 1,053,623
Debt Service:
Principal
Interest
Interest and fiscal charges
Total expenditures 720,625 1,053,623
Excess (deficiency) of revenues over
expenditures 1,332 (695,926) (1,026,047) 50,183
OTHER ANANCING SOURCES (USES)
Issuance of debt
Premium on bonds
Transfers in
Transfers out
Total other financing sources (uses) -
Net change in fund balances 1,332 (695,926) (1,026,047) 50,183
Fund balances-beginning 1,057 971,949 1,055,485 1,113,054 ~
Fund balances-ending $ 2,389 $ 276,023 $ 29,438 $ 1,163,237
88
F
Capital Projects Funds
2005 Certificate 2006 Certificate 2006 General Total Nonmajor
of Obligation of Obligation Obligation Debt Governmental
Bonds Bonds Bonds Totals Service Funds
$ $ $ $ $ 1,818,852 $ 1,853,065
30,000 30,000
710,620
2,240,367
201,045
441 ,688
48,145 234,718 49,953 625,155 112,980 1,023,054
278,4 78
2,414 38,774
14,738
48,145 234,718 49,953 657,569 1,931,832 6,831,829
1,433,089
125,729 343,504 26,590 3,007,068 3,490,535
1,235,000 1,235,000
1,452,811 1,452,811
125,729 343,504 26,590 3,007,068 2,687,811 7,611,435
(77 ,584) (108,786) 23,363 (2,349,499) (755,979) (779,606)
130,000 1,494,800 867,848 3,776,857
(130,000) (662,000 ) (792,000) (1,839,180)
(130,000) (532,000) 702,800 867,848 1,937,677
(207,584 ) (640,786) 23,363 (1,646,699) 111 ,869 1,158,071
935,244 3,079,997 1,198,478 11,768,673 1,813,887 19,136,074
$ 727,660 $ 2,439,211 $ 1,221,841 $ 10,121,974 $ 1,925,756 $ 20,294,145
89
-
-
".,.",
-
-
-
-
-
-
-
90
SCHEDULE OF REVENUES, EXPENDITURES and
CHANGES IN FUND BALANCE - BUDGET and ACTUAL
Debt Service Fund
Special Revenue Funds
Capital Projects Funds
91
D
CITY OF LA PORTE, TEXAS
Grant Special Revenue Fund
Schedule of Revenues, Expenditures and Changes in Fund
Budget and Actual
For The Year Ended September 30, 2007
FT
-
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual Amounts (Negative)
REVENUES
Fines and forfeitures $ 57,341 $ 57,341 $ 278,478 $ 221,137
Charges for services 36,360 36,360
Intergovernmental 290,150 753,832 710,620 (43,212)
Interest 13,991 13,991
Total revenues 347,491 811,173 1,039,449 228,276
EXPENDITURES
Current:
Adm inistration 347,491 979,483 748,293 231,190
Total expenditures 347,491 979,483 748,293 231,190
Net change in fund balances (168,310) 291 ,1 56 459,466
Fund balances-beginning 456,274 456,274 456,274
Fund balances-ending $ 456,274 $ 287,964 $ 747,430 $ 459,466
-
92
CITY OF LA PORTE, TEXAS
Street Maintenance Sales Tax Special Revenue Fund
Schedule of Revenues, Expenditures and Changes in Fund
Budget and Actual D
For The Year Ended September 30, 2007
AFT
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual Amounts (Negative)
REVENUES
Sales taxes $ $ 600,000 $ 746,789 $ 146,789
Interest 18,275 18,275
Total revenues 600,000 765,064 165,064
EXPENDITURES
Capital Outlay 600,000 36,197 563,803
Total expenditures 600,000 36,197 563,803
Excess of revenues over expenditures 728,867 728,867
OTHER FINANCING SOURCES (USES)
Transfers in 250,000 250,000
Total other financing sources (uses) 250,000 250,000
Net change in fund balances 250,000 978,867 728,867
Fund balances-beginning
Fund balances-ending $ $ 250,000 $ 978,867 $ 728,867
93
CITY OF LA PORTE, TEXAS
Community Investment Special Revenue Fund
Schedule of Revenues, Expenditures and Changes in Fund B
Budget and Actua I
For The Year Ended September 30,2007
F
-
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual Amounts (Negative)
REVENUES
Industrial payments $174,809 $ 174,809 $ 201,045 $ 26,236
Interest 6,000 6,000 30,324 24,324
Miscellaneous 6,000 6,000 2,000 (4,000)
Total revenues 186,809 186,809 233,369 46,560
EXPENDITURES
Current:
Administration 138,000 159,041 94,573 64,468
Capital outlay 500,000 447,270 52,730
Total expenditures 138,000 659,041 541,843 117,198
Excess (deficiency) of revenues over
expenditures 48,809 (472,232) (308,474) 163,758
OTHER FINANCING SOURCES (USES)
Transfers in 500,000 500,000
Total other financing sources (uses) 500,000 500,000
Net change in fund balances 48,809 27,768 191,526 163,758
Fund balances-beginning 662,264 662,264 662,264
Fund balances-ending $711,073 $ 690,032 $ 853,790 $ 163,758
-
94
-
CITY OF LA PORTE, TEXAS
Hotel/Motel Occupancy Tax Special Revenue Fund
Schedule of Revenues, Expenditures and Changes in Fund
Budget and Actual DR
For The Year Ended September 30,2007
F
Variance with
Final Budget
Budgeted Amounts Actua I Positive
Original Final Amounts (Negative)
REVENUES
Other taxes $ 297,500 $ 297,500 $ 441,688 $ 144,188
Interest 37,000 37,000 24,830 (12,170)
Miscellaneous 12,738 12,738
Total revenues 334,500 334,500 479,256 144,756
EXPENDITURES
Current:
Adm inistration 389,346 393,592 251,901 141,691
Total expenditures 389,346 393,592 251,901 141,691
Excess (deficiency) of revenues over
expenditures (54,846) (59,092) 227,355 286,447
OTHER FINANCING SOURCES (USES)
Transfers in 2,209 2,209
Transfers out (65,000) (65,000) (65,000)
Total other financing sources (uses) (65,000) (62,791 ) (62,791 )
Net change in fund balances (119,846) (121,883) 164,564 286,447
Fund balances-beginning 404,094 404,094 404,094
Fund balances-ending $ 284,248 $ 282,211 $ 568,658 $ 286,447
95
-
CITY OF LA PORTE, TEXAS
Tax Increment Reinvestment Zone One Special Revenue Fund
Schedule of Revenues, Expenditures and Changes in Fund B
Budget and Actual
For The Year Ended September 30,2007
F
-
Variance with
Final Budget
Budgeted Amounts Actu a I Positive
Original Final Amounts (Negative)
REVENUES
Property taxes $ 42,380 $ 42,380 $ 34,213 $ (8,167)
Interest 3,900 3,900 7,181 3,281
Total revenues 46,280 46,280 41,394 (4,886)
EXPENDITURES
Current:
Administration 36,720 251,741 218,660 33,081
Total expenditures 36,720 913,741 218,660 695,081 -
Excess (deficiency) of revenues over
expenditures 9,560 (867,461 ) (177,266) 690,195
OTHER FINANCING SOURCES (USES)
Transfers in 662,000 662,000
Total other financing sources (uses) 662,000 662,000
Net change in fund balances 9,560 (205,461 ) 484,734 690,195
Fund Balances-beginning 177,267 177,267 177 ,267
Fund Balances-ending $ 186,827 $ (28,194) $ 662,001 $ 690,195
96
CITY OF LA PORTE, TEXAS
Section 4B Sales Tax Special Revenue Fund
Schedule of Revenues, Expenditures and Changes in Fund B
Budget and Actual
For The Year Ended September 30, 2007
RAFT
Variance with
Final Budget
Budgeted Amounts Actua I Positive
Original Final Amounts (Negative)
REVENUES
Sales taxes $ 1,217,386 $ 1,217,386 $ 1,493,578 $ 276,192
Interest 123,500 123,500 190,318 66,818
Total revenues 1,340,886 1,340,886 1,683,896 343,010
EXPENDITURES
Current:
Administration 100,000 175,000 119,662 55,338
Total expenditures 100,000 175,000 119,662 55,338
Excess (deficiency) of revenues over
expenditures 1,240,886 1,165,886 1,564,234 398,348
OTHER FINANCING SOURCES (USES)
Transfers out (732,180) (982,180) (982,180)
Total other financing sources (uses) (732,180) (982,180) (982,180)
Net change in fund balances 508,706 183,706 582,054 398,348
Fund balances-beginning 3,853,615 3,853,615 3,853,615
Fund balances-ending $ 4,362,321 $ 4,037,321 $ 4,435,669 $ 398,348
97
CITY OF LA PORTE, TEXAS
Capital Projects Fund
Schedule of Revenues, Expenditures and Changes in Fund B
Budget and Actual
For The Year Ended September 30,2007
T
Variance with
Final Budget
Budgeted Amounts Actual Positive -
Original Final Amounts (Negative)
REVENUES
Charges for Services $ $ $ 2,414 $ 2,414
Donations 37,500 30,000 (7,500)
Interest 35,000 35,001 77,584 42,583
Total revenues 35,000 72,501 109,998 37,497
EXPENDITURES
Capital Outlay 402,950 724,499 708,429 16,070
Total expenditures 402,950 724,499 708,429 16,070
Excess (deficiency) of revenues over
expenditures (367,950 ) (651,998) (598,431 ) 53,567
-
OTHER FINANCING SOURCES (USES)
Transfers in 210,000 1,364,800 1,364,800
Net change in fund balances (157,950) 712,802 766,369 53,567
Fund balances-beginning 1,171,273 1,171,273 1,171,273
Fund balances-ending $ 1,013,323 $ 1,884,075 $ 1,937,642 $ 53,567
-
98
REVENUES
Interest
EXPENDITURES
CITY OF LA PORTE, TEXAS
Transportation and Other Infrastructure Fund
Schedule of Revenues, Expenditures and Changes in Fund B
Budget and Actual
For The Year Ended September 30,2007
Budgeted Amounts
Original Final
$
41,500
Net change in fund balances
Fund balances-beginning
Fund balances-ending
41 ,500
1,115,060
$ 1,156,560
99
$
41,500
41,500
1,115,060
$ 1,156,560
Actu a I
Amounts
$
55,469
55,469
1,115,060
$ 1,170,529
F
Variance with
Final Budget
Positive
(Negative)
$
13,969
13,969
$
13,969
-
CITY OF LA PORTE, TEXAS
1998 General Obligation Bonds Fund
Schedule of Revenues, Expenditures and Changes in Fund B
Budget and Actual
For The Year Ended September 30,2007
F
-
-
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Interest $ 6,000 $ 6,000 $ 55,496 $ 49,496
EXPENDITURES
Capital Outlay 6,000 34,569 28,568 6,001
Net change in fund balances (28,569) 26,928 55,497
Fund balances-beginning 1,127,076 1,127,076 1,127,076
Fund balances-ending $ 1,127,076 $ 1,098,507 $ 1,154,004 $ 55,497
-
-
100
CITY OF LA PORTE, TEXAS
2000 Certificate of Obligation Bonds Fund
Schedule of Revenues, Expenditures and Changes in Fund B
Budget and Actual D
For The Year Ended September 30,2007
AFT
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Interest $ $ $ 1,332 $ 1,332
EXPENDITURES
Net change in fund balances 1,332 1,332
Fund balances-beginning 1,057 1,057 1,057
Fund balances-ending $ 1,057 $ 1,057 $ 2,389 $ 1,332
101
CITY OF LA PORTE, TEXAS
2000 General Obligation Bonds Fund
Schedule of Revenues, Expenditures and Changes in Fund B
Budget and Actual
For The Year Ended September 30,2007
F
Variance with
Final Budget
Budgeted Amounts Actu a I Positive -
Original Final Amounts (Negative)
REVENUES
Interest $ $ $ 24,699 $ 24,699
EXPENDITURES
Capital Outlay 170,000 215,090 720,625 (505,535)
-
Net change in fund balances (170,000) (215,090) (695,926) (480,836)
Fund balances-beginning 971,949 971,949 971,949
Fund balances-ending $ 801,949 $ 756,859 $ 276,023 $ (480,836)
-
-
-
102
CITY OF LA PORTE, TEXAS
2002 General Obligation Bonds Fund
Schedule of Revenues, Expenditures and Changes in Fund B
Budget and Actua I D
For The Year Ended September 30,2007
FT
Variance with
Final Budget
Budgeted Amounts Actua I Positive
Original Final Amounts (Negative)
$ 24,000 $ 24,000 $ 27,576 $ 3,576
16,411 1,053,623 (1,037,212)
24,000 7,589 (1,026,047) (1,033,636)
1,055,485 1,055,485 1,055,485
$ 1,079,485 $ 1,063,074 $ 29,438 $ (1,033,636)
REVENUES
Interest
EXPENDITURES
Capital Outlay
Net change in fund balances
Fund balances-beginning
Fund balances-ending
103
CITY OF LA PORTE, TEXAS
2004 General Obligation Bonds Fund
Schedule of Revenues, Expenditures and Changes in Fund
Budget and Actual
For The Year Ended September 30, 2007
AFT
Variance with
Final Budget
Budgeted Amounts Actua I Positive
Original Final Amounts (Negative)
REVENUES
Interest $ 50,000 $ 50,000 $ 50,183 $ 183
EXPENDITURES
Excess (deficiency) of revenues over
expenditures 50,000 50,000 50,183 183
Net change in fund balances 50,000 50,000 50,183 183
Fund balances-beginning 1,113,054 1,113,054 1 , 113,054
Fund balances-ending $1,163,054 $ 1,163,054 $ 1,163,237 $ 183
-
104
CITY OF LA PORTE, TEXAS
2005 General Obligation Bonds Fund
Schedule of Revenues, Expenditures and Changes in Fund
Budget and Actual D
For The Year Ended September 30,2007
FT
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Interest $ 50,000 $ 50,000 $ 131,325 $ 81,325
EXPENDITURES
Capital Outlay 459,400 6,358,694 6,515,799 (157,105)
Total expenditures 459,400 6,358,694 6,515,799 (157,105)
Excess (deficiency) of revenues over
expenditures (409,400) (6,308,694) (6,384,474) (75,780 )
OTHER FINANCING SOURCES (USES)
Transfers out (171,053) (171,053)
Total other financing sources (uses) (171,053) (171,053)
Net change in fund balances (409,400 ) (6,479,747) (6,555,527) (75,780)
Fund balances-beginning 7,045,200 7,045,200 7,045,200
Fund balances-ending $ 6,635,800 $ 565,453 $ 489,673 $ (75,780)
105
-
CITY OF LA PORTE, TEXAS
2005 Certificates of Obligation Bonds Fund
Schedule of Revenues, Expenditures and Changes in Fund B
Budget and Actual DRA
For The Year Ended September 30,2007 .. F
-
-
106
CITY OF LA PORTE, TEXAS
2006 Certificates of Obligation Bonds Fund
Schedule of Revenues, Expenditures and Changes in Fund B
Budget and Actual
For The Year Ended September 30, 2007
FT
Variance with
Final Budget
Budgeted Amounts Actu a I Positive
Original Final Amounts (Negative)
REVENUES
Interest $ 100,000 $ 100,000 $ 234,718 $ 1 34,718
EXPENDITURES
Capital Outlay 260,000 (271,999) 343,504 (615,503)
Total expenditures 260,000 (271,999) 343,504 (615,503)
Excess (deficiency) of revenues over
expenditures (160,000) 371,999 (108,786) (480,785)
OTHER FINANCING SOURCES (USES)
Transfers in 130,000 130,000
Transfers out (662,000) (662,000)
Total other financing sources (uses) (532,000) (532,000)
Net change in fund balances (160,000) (160,001) (640,786) (480,785)
Fund balances-beginning 3,079,997 3,079,997
Fund balances-ending $ (160,000) $ (160,001) $ 2,439,211 $ 2,599,212
107
-
CITY OF LA PORTE, TEXAS
2006 General Obligation Bonds Fund
Schedule of Revenues, Expenditures and Changes in Fund B
Budget and Actual
For The Year Ended September 30,2007
F
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Interest $ 12,000 $ 12,000 $ 49,953 $ 37,953
EXPENDITURES
Capital Outlay 26,590 (26,590)
Total expenditures 26,590 (26,590)
Net change in fund balances 12,000 12,000 23,363 11,363
Fund balances-beginning 1,198,478 1,198,478 1,198,478
Fund balances-ending $ 1,210,478 $ 1,210,478 $ 1,221,841 $ 11,363
108
CITY OF LA PORTE, TEXAS
Debt Service Fund
Schedule of Revenues, Expenditures and Changes in Fund
Budget and Actual FT
For The Year Ended September 30,2007
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Property taxes $ 1,740,232 $ 1,740,232 $ 1,818,852 $ 78,620
Interest 89,500 89,500 112,980 23,480
Total revenues 1,829,732 1,829,732 1,931,832 102,100
EXPENDITURES
Debt Service:
Principal 1,235,000 1,235,000 1,235,000
Interest 1,563,294 1,563,294 1,452,811 110,483
Total expenditures 2,798,294 2,798,294 2,687,811 110,483
Excess (deficiency) of revenues over
expenditures (968,562) (968,562) (755,979) 212,583
OTHER FINANCING SOURCES (USES)
Transfers in 867,848 867,848 867,848
Net change in fund balances (100,714 ) (100,714) 111,869 212,583
Fund balances-beginning 1,813,887 1,813,887 1,813,887
Fund balances-ending $ 1,713,173 $ 1,713,173 $ 1,925,756 $ 212,583
109
1/IfP"'-
-
-
-
-
~--
-
-
-
-
"
no
D
FT
SUPPLEMENTARY INDIVIDUAL FUND FINANCIAL
STATEMENTS AND SCHEDULES
General Fund
These supplementary statements and schedules are included to provide management additional information for
financial analysis.
III
-
CITY OF LA PORTE, TEXAS
General Fund
Schedule of Revenues - Budget and Actual
Year Ended September 30, 2007
Variance w th
Final Budget
Budgeted Amounts Actua I Positive
Original Final Amounts (Nega tive)
Taxes:
Ad valorem:
Current $10,524,211 $ 10,636,287 $ 10,656,570 $ 20,283
Delinquent 140,000 284,000 322,826 38,826
Industrial Payments 6,836,257 8,064,619 7,987,846 (76,773)
Total ad valorem 17,500,468 18,984,906 18,967,242 (17,664 )
Penalty and interest 120,000 135,500 158,391 22,891
Sales Taxes 2,434,772 2,701,493 2,986,733 285,240
Other Taxes 57,280 61,497 66,937 5,440
-
Franchise Fees:
Electrical 1,242,462 1,255,749 1,249,747 (6,002)
Gas 174,675 172,016 131,542 (40,474) -
Telephone 261,375 213,995 298,348 84,353
Cable 239,850 200,113 250,746 50,633
Commercial Solidwaste 72,447 68,872 73,308 4,436
Total Franchise Fees 1,990,809 1,910,745 2,003,691 92,946
Charges for Services:
Public safety service fees 1,146,745 1,248,721 1,297,561 48,840
Health and sanitation service fees 1,815,500 1,819,898 1,856,013 36,115
Culture and recreation fees 484,827" 472,376" 415,190'" (57,186)
Other service fees 312,126 336,603 359,263 22,660
Total Charges for Services 3,759,198 3,877,598 3,928,027 50,429
Intergovernmental 5,934 5,483 (451 )
licenses and perm its:
Building permits 123,380 229,585 274,401 44,816
licenses 324,500 554,295 645,522 91,227
Total licenses and perm its 447,880 783,880 919,923 136,043
Investment income 650,000 879,700 868,955 (10,745)
-
Fines and forfeitures 753,164 841,203 965,216 124,013
Miscellaneous 25,000 24,613 62,318 37,705
Total revenues $27,738,571 $ 30,207,069 $ 30,932,916 $ 725,847
112
CITY OF LA PORTE, TEXAS
General Fund
Schedule of Expenditures - Budget and Actual
Year Ended September 30,2007
ith
Budgeted Amounts Actua I
Original Final Amounts
GENERAL GOVERNMENT
Administration:
Emergency Management:
Personal services $ 132,289 $ 137,545 $ 137,488 $ 57
Supplies 26,102 33,890 34,679 (789)
Other services and charges 42,176 47,447 38,082 9,365
Capital outlay 10,200 11,500 8,538 2,962
Total Emergency Management 210,767 230,382 218,787 11,595
General Administration:
Personal services 449,599 380,400 379,105 1,295
Supplies 7,750 8,000 8,755 (755)
Other services and charges 61,161 105,836 74,875 30,961
Total General Administration 518,510 494,236 462,735 31,501
Human Resources:
Personal services 190,859 187,429 182,570 4,859
Supplies 10,000 15,199 15,110 89
Other services and charges 126,389 130,021 128,366 1,655
Total Human Resources 327,248 332,649 326,046 6,603
Municipal Court:
Personal services 277,772 309,612 309,957 (345)
Supplies and materials 14,600 15,328 14,778 550
Other services and charges 178,884 180,320 174,390 5,930
Total Municipal Court 471,256 505,260 499,125 6,135
Purchasing:
Personal services 201,936 214,662 214,598 64
Supplies 3,057 3,034 3,002 32
Other services and charges 31,628 31,818 31,716 102
Total Purchasing 236,621 249,514 249,316 198
City Secretary:
Personal services 263,212 265,261 257,690 7,571
Supplies and materials 4,650 4,700 2,797 1,903
Other services and charges 106,038 109,738 99,710 10,028
Total City Secretary 373,900 379,699 360,197 19,502
113
-
CITY OF LA PORTE, TEXAS
General Fund
Schedule of Expenditures. Budget and Actual
Year Ended September 30,2007
ith -
get
Budgeted Amounts Actua I Positive
Original Final Amounts (Negative)
Legal:
Personal services 6,000 6,900 6,900
Other services and charges 188,603 173,939 171,495 2,444 ~
Total Legal 194,603 180,839 178,395 2,444
City Council:
Personal services 21,881 22,773 21,912 861
Supplies and materials 16,450 16,050 11,555 4,495
Other services and charges 54,957 33,287 25,021 8,266
Total City Council 93,288 72,110 58,488 13,622 -
Total Administration 2,426,193 2,444,689 2,353,089 91,600
-
Finance:
Accounting:
Personal services 551,330 605,099 605,089 10
Supplies 21,050 22,162 22,041 121 -
Other services and charges 183,872 212,638 205,631 7,007
Total Accounting 756,252 839,899 832,761 7,138
-
Nondepartm ental:
Personal services 438,770 534,936 476,592 58,344
Supplies 6,000 14,096 10,035 4,061
Other services and charges 2,175,492 1,212,796 550,560 662,236
Total Nondepartm ental 2,620,262 1,761,828 1,037,187 724,641
Tax Office: -
Personal services 185,819 191,368 191,294 74
Supplies and materials 11,675 11,094 10,108 986
Other services and charges 175,884 172,702 172,683 19
Total Tax Office 373,378 375,164 374,085 1,079 -
Total Finance 3,749,892 2,976,891 2,244,033 732,858
Planning and Engineering:
Planning and Engineering:
Personal services 724,016 752,151 749,337 2,814
Supplies 18,995 16,420 11 ,731 4,689 -
Other services and charges 135,816 124,584 111 ,406 13,178
Total Planning and Engineering 878,827 893,155 872,474 20,681
-
Ins pection:
Personal services 551,825 577,629 576,785 844
Supplies 30,819 27,964 24,636 3,328
Other services and charges 249,509 251,530 170,586 80,944
Total Inspection 832,153 857,123 772,007 85,116
Total Planning and Engineering 1,710,980 1,750,278 1,644,481 105,797
TOTAL GENERAL GOVERNMENT 7,887,065 7,171,858 6,241,603 930,255
114 -
CITY OF LA PORTE, TEXAS
General Fund
Schedule of Expenditures - Budget and Actual
Year Ended September 30,2007
ith
get
Positive
(Negative)
Budgeted Amounts
Original Final
Actu a I
Amounts
PUBLIC SAFETY:
Fire
Fire Prevention:
Personal services
Supplies
Other services and charges
Total Fire Prevention
156,639 150,013 145,920 4,093
18,795 34,945 34,863 82
46,953 45,254 38,296 6,958
222,387 230,212 219,079 11 ,1 33
1,150,343 1,186,381 1,186,135 246
109,397 119,093 132,677 (13,584)
473,484 441,503 423,843 17,660
35,000 32,000 7,449 24,551
1,768,224 1,778,977 1,750,104 28,873
1,336,413 1,379,931 1,373,917 6,014
112,161 117,610 131,418 (13,808)
144,583 139,789 135,052 4,737
1,593,157 1,637,330 1,640,387 (3,057)
3,583,768 3,646,519 3,609,570 36,949
Fire suppression:
Personal services
Supplies
Other services and charges
Capital Outlay
Total Fire Suppression
Emergency medical services:
Personal services
Supplies
Other services and charges
Total Emergency Services
Total Fire
Police
Police Administration:
Personal services
Supplies
Other services and charges
Total Police Administration
474,607 511,999 511,708 291
21,045 20,343 19,496 847
279,304 249,008 248,481 527
774,956 781,350 779,685 1,665
4,366,049 4,371,157 4,323,954 47,203
184,922 186,146 183,627 2,519
443,655 443,803 439,335 4,468
4,994,626 5,001,106 4,946,916 54,190
1,314,583 1,425,017 1,424,088 929
49,788 36,064 36,191 (127)
217,912 186,019 173,303 12,716
1,582,283 1,647,100 1,633,582 13,518
Police Patrol:
Personal services
Supplies
Other services and charges
Total Police Patrol
Crim inal Investigation:
Personal services
Supplies
Other services and charges
Total Crim inal Investigation
115
CITY OF LA PORTE, TEXAS
General Fund
Schedule of Expenditures - Budget and Actual
Year Ended September 30,2007 AliTe with
get
Budgeted Amounts Actu a I Positive
Original Final Amounts (Negative)
Support Services:
Personal services 659,245 668,871 668,725 146
Supplies 52,165 48,524 48,151 373
Other services and charges 87,902 83,493 82,374 1,119
Total Support Services 799,312 800,888 799,250 1,638
Total Police 8,151,177 8,230,444 8,159,433 71,011
TOTAL PUBLIC SAFETY 11,734,945 11,876,963 11,769,003 107,960
PUBLIC WORKS:
Public Works Administration: -
Personal services 219,002 227,230 225,041 2,189
Supplies and materials 3,700 3,907 3,768 139
Other services and charges 79,980 75,059 73,795 1,264
Total Public Works Administration 302,682 306,196 302,604 3,592
Streets:
Personal services 1,346,154 1,376,867 1,375,630 1,237 -
Supplies 136,211 131,182 110,959 20,223
Other services and charges 668,092 619,637 570,939 48,698
Capital outlay 53,000'" 53,000" 47,296" 5,704
Total Streets 2,203,457 2,180,686 2,104,824 75,862 -
TOTAL PUBLIC WORKS 2,506,139 2,486,882 2,407,428 79,454
-
HEAL TH AND SANITATION:
Residential Solidwaste:
Personal services 924,154 958,872 958,710 162 -
Supplies 233,093 249,985 249,975 10
Other services and charges 680,678 726,771 736,973 (10,202)
Total Residential Solidwaste 1,846,025 1,942,119 1,952,149 (10,030)
Commercial solidwaste:
Other services and charges 21,000 21,000 20,674 326
-
TOTAL HEALTH AND SANITATION 1,867,025 1,963,119 1,972,823 (9,704)
CUL TURE & RECREATION:
Park Maintenance:
Personal services 932,068 851,787 851,335 452
Supplies and materials 92,872 123,120 107,731 15,389 -
Other services and charges 658,101 618,428 617,076 1,352
Capital outlay 42,140 26,070 25,870 200
Total Park Maintenance 1,725,181 1,619,405 1,602,012 17,393
116
CITY OF LA PORTE, TEXAS
General Fund
Schedule of Expenditures - Budget and Actual
Year Ended September 30,2007
ith
get
Budgeted Amounts Actu a I Positive
Original Final Amounts (Negative)
Recreation:
Personal services 496,324 455,185 454,747 438
Supplies 48,503 43,841 43,842 (1 )
Other services and charges 82,782 156,074 152,500 3,574
Total Recreation 627,609 655,100 651,089 4,011
Special Services:
Personal services 346,817 363,404 353,149 10,255
Supplies 21,398 20,196 19,597 599
Other services and charges 70,518 53,969 53,048 921
Total Special Services 438,733 437,569 425,794 11,775
Parks Administration:
Personal Services 376,047 375,430 371,655 3,775
Supplies 10,460 9,513 9,423 90
Other services and charges 47,145 44,41 6 43,493 923
Total P arks Adm inistration 433,652 429,359 424,571 4,788
TOTAL CULTURE AND RECREATION 3,225,175 3,141,433 3,103,466 37,967
TOTAL GENERAL FUND $27,220,349 $ 26,640,255 $ 25,494,323 $ 1,145,932
117
-
-
-
-
-
-
-
-
-
-
\\~
_/-~
D
FT
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.
119
-
CITY OF LA PORTE, TEXAS
Combining Statement of Net Assets
Nonmajor Proprietary Funds
For the year ended September 30,2007 AF
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 $ 138,003 $ 151,416 $ 72,807 $ 362,226
Inves tm ents 70,384 77,224 36,774 184,382
Receivables, net of
allowance for uncollectibles 3,248 1,250 4,498
Accrued interest receivable 1,098 1,440 580 3,118
Restricted cash and cash equivalents:
Customer service deposits 45,861 45,861
Total current assets 212,733 277,191 110,161 600,085
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 2,547,922 6,584,096
Vehicles and equipment 91,130 91,130
Construction in progress 467,910 34,905 502,815
Less accum ulated depreciation (2,484,322) (322,178) (2,312,326) (5,118,826)
Total noncurrent assets 2,223,266 96,313 2,939,215 5,258,794
Total assets 2,435,999 373,504 3,049,376 5,858,879
LIABILITIES
Current liabilities:
Accounts payable 1,022 5,305 11 , 941 18,268
Accrued salaries payable 2,422 15,641 18,063 -
Unearned revenue 48,783 48,783
Other current liabilities 1,500 6,108 7,608
Payable from restricted assets:
Customer deposits 56,870 56,870
Total current liabilities 2,522 113,380 33,690 149,592
Noncurrent liabilities:
Accrued separation pay 5,667 154,012 159,679
Total noncurrent liabilities 5,667 154,012 159,679
Total liabilities 2,522 119,047 187,702 309,271
NET ASSETS -
Invested in capital assets, net of related debt 2,223,266 96,313 2,939,215 5,258,794
Unrestricted (deficit) 210,211 158,144 (77 , 54 1 ) 290,814
Total net assets $ 2,433,477 $ 254,457 $ 2,861,674 $ 5,549,608 -
-
120
CITY OF LA PORTE, TEXAS
Combining Statement of Revenues, Expenses and Changes in Fund Net Assets
Nonmajor Proprietary Funds
For The Year Ended September 30,2007
I DRAFT I
Business-type Activities -
Enterprise Funds
Total
Sylvan Beach Nonmajor
Convention Bay Forest Proprietary
Airport Center Golf Course Funds
Operating revenues:
User fees $ 42,359 $ 189,290 $ 911,371 $1,143,020
Operating expenses:
Personal services 149,363 800,405 949,768
Supplies 5,036 170,741 175,777
Other services and charges 15,132 48,783 193,213 257,128
Depreciation 108,772 14,871 144,221 267,864
Total operating expenses 123,904 218,053 1,308,580 1,650,537
Operating loss (81,545) (28,763) (397,209) (507,517)
Nonoperating revenues (expenses):
Interest income 14,220 12,779 936 27,935
Loss on sale of equipment (2,009) (2,009)
Total nonoperating revenue (expenses) 14,220 12,779 (1,073) 25,926
Loss before contributions
and transfers (67,325) (15,984) (398,282) (481,591)
Capital contributions 213,942 213,942
Transfers in 28,537 510,279 538,816
Transfers out (848 ) (3,638) (28,947) (33,433)
Change in net assets 145,769 8,915 83,050 237,734
Total net assets-beginning 2,287,708 245,542 2,778,624 5,311,874
Total net assets-ending $ 2,433,477 $ 254,457 $ 2,861 ,674 $ 5,549,608
121
122
-
R FT
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.
123
-
CITY OF LA PORTE, TEXAS
Internal Service Funds
Combining Statement of Net Assets
For the year ended September 30, 2007 D F
Motor
Pool Technology Insura nce Totals
ASSETS -
Current assets:
Cash and cash equivalents $ 2,007,391 $ 646,890 $ 2,047,910 $ 4,702,191
Investments 1,023,795 329,922 1,044,034 2,397,751
Accrued interest receivable 16,046 5,170 16,381 37,597
Miscellaneous Receivable 4,669 4,669
Material and supplies inventories, at cost 41 ,406 41,406
Total current assets 3,088,638 981,982 3,112,994 7,183,614
Noncurrent assets:
Capital assets
Vehicles and equipment 10,592,548 1,174,268 11,766,816
Less accumulated depreciation (6,743,359) (1,021,919) (7,765,278)
Total noncurrent assets 3,849,189 152,349 4,001,538
Total assets 6,937,827 1,134,331 3,112,994 11,185,152
LIABILITIES
Current liabilities:
Accounts payable 74,027 39,942 532,354 646,323
Accrued salaries payable 11 ,108 6,875 17,983
Deferred revenue 1,694 1,694
Total current liabilities 85,135 46,817 534,048 666,000
Noncurrent liabilities:
Accrued em ployee separation pay 136,097 136,097
Total noncurrent liabilities 136,097 136,097
Total liabilities 221,232 46,817 534,048 802,097
NET ASSETS ....
Invested in capital assets, net of related debt 3,849,189 152,349 4,001,538
Unrestricted 2,867,406 935,165 2,578,946 6,381,517
Total net assets $ 6,716,595 $ 1,087,514 $ 2,578,946 $ 10,383,055
124
CITY OF LA PORTE, TEXAS
Internal Service Funds
Combining Statement of Revenues, Expenses and Changes in Fu
For The Year Ended September 30,2007 D FT
Motor
Pool Technology Insurance Totals
Operating revenues:
User Fees $ 1,766,576 $ 965,624 $ 3,539,365 $ 6,271,565
Cable Fees 54,324 54,324
Total operating revenues 1,766,576 1,019,948 3,539,365 6,325,889
Operating expenses:
Personal services 656,034 294,724 410,896 1,361,654
Supplies 269,360 113,489 382,849
Other sevices and charges 201,466 616,853 3,069,119 3,887,438
Depreciation 791,667 29,382 821,049
Total operating expenses 1,918,527 1,054,448 3,480,015 6,452,990
Operating income (loss) (151,951 ) (34,500) 59,350 (127,101)
Nonoperating revenues:
Interest income 132,169 40,383 97,053 269,605
Gain on sale of equipment 86,418 86,418
Total nonoperating revenues 218,587 40,383 97,053 356,023
Income before transfers 66,636 5,883 156,403 228,922
Transfers in 17,403 7,751 1,024,068 1,049,222
Transfers out (21,638) (693) (22,331)
Change in net assets 62,401 12,941 1,180,471 1,255,813
Net assets-beginning 6,654,194 1,074,573 1,398,475 9,127,242
Net assets-ending $ 6,716,595 $ 1,087,514 $ 2,578,946 $10,383,055
125
-
CITY OF LA PORTE, TEXAS
Internal Service Funds -
Combining Statement of Cash Flows
For The Year Ended September 30, 2007 RA
-
Motor
Pool Technology Ins urance Totals
CASH FLOWS FROM OPERATING ACTIVITIES -
Cash received from user fees $ 1,846,287 $ 1,019,948 $ 3,536,365 $ 6,402,600
Cash payments to suppliers (421,717) (711 ,61 0) (3,046,086) (4,179,413)
Cash payments for personal services (641 ,51 7) (292,429 ) (410,896) (1,344,842)
Net cas h provided by operating activities 783,053 15,909 79,383 878,345 -
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Transfers in from other funds 17,403 (693) 1,024,068 1,040,778
Transfers out to other funds (21,638) 7,751 (13,887)
Net cash provided (used) by noncapital
financing activies (4,235) 7,058 1,024,068 1,026,891 -
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES
Payments for capital acquisitions (467,934) (49,136) (517,070)
Proceeds from sale of assets 209,746 209,746
Net cash (used) by capital and related
financing activies (258,188) (49,136) (307,324 ) -
CASH FLOW S FROM INVESTING ACTIVITIES
Interes ton investm e nts 130,103 40,855 91,779 262,737
Investm ents purchased (40,089) 67,670 (264,704 ) (237,123)
Net cash provided (used) by investing activities 90,014 108,525 (172,925) 25,614
Net increase in cash and cash equivalents 610,644 82,356 930,526 1,623,526
Balances-beginning of the year 1,396,747 564,534 1,117,384 3,078,665
Balances-end of the year $ 2,007,391 $ 646,890 $ 2,047,910 $ 4,702,191
Reconciliation of operating income (loss) to
net cash provided (used) by operating activities:
Operating income (loss) '" $ (151 ,951 ) $ (34,500) $ 59,350 $ (127,101)
Adjustments to reconcile operating income (loss)
to net cash provided by operating activities:
Depreciation expense 791,667 29,382 821,049
(Increase) decrease in accounts receivable 79,711 (2,588) 77,123
(Increase) decrease in inventories 4,774 4,774
Increase (decrease) in accrued salaries payable (215) 2,295 2,080
Increase (decrease) in accounts payable 44,335 18,732 23,033 86,100
Increas e (decrea se) in defe rred reve n u e (412) (412)
Increase (decrease) in accrued employee
separation 14,732 14,732 -
Total adjustments 935,004 50,409 20,033 1,005,446
Net cas h provided by operating activities $ 783,053 $ 15,909 $ 79,383 $ 878,345
-
126
FT
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.
127
-
-
-
-
-
-
-
-
-
-
\2S
CITY OF LA PORTE, TEXAS
Capital Assets Used in the Operation of Governmental Funds
Schedule by Source
For the year ended September 30,2007
D
FT
Governmental funds capital assets
Land
Buildings
Equipment
Improvements
Infrastructure
Construction in progress
$ 7,925,969
18,187,992
1,905,600
7,649,693
26,957,309
18,558,413
Total governmental funds capital assets
$ 81,184,976
Investment in governmental funds capital assets by source
Current Operations
Capital Projects
Section 4B Sales Tax
$ 16,391,463
63,468,407
1,325,106
Total governmental funds capital assets
$ 81,184,976
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.
129
-
CITY OF LA PORTE, TEXAS
Capital Assets Used in the Operation of Governmental Fun
Schedule by Function and Activity
September 30,2007
AFT
-
Function and Activity Land Buildings Equipment Improvements
General Government
Adm inistration $ 880,239 $ 6,513,677 $ 309,678 $ 407,287
Finance
P Janning 217,002 19,922
Total general government 1,097,241 6,513,677 329,600 407,287
Public Safety
Fire 756,606 3,772,597 638,758 28,422 -
Police 45,089 1,064,031 636,471 25,732
Total Public Safety 801,695 4,836,628 1,275,229 54, 1 54
Public Works
Adm instration 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 3,266,628 4,724,913 194,682 7,050,107
Total governmental funds
capital assets $ 7,925,969 $ 18,187,992 $ 1,905,600 $ 7,649,693
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.
-
130
-
D AFT
Construction
Infras tructu re in Progress Total
$ $ 52,315 $ 8,163,196
190,488 892,754 1,320,166
190,488 945,069 9,483,362
3,830,409 9,026,792
8,686,902 10,458,225
12,517,311 19,485,017
10,153,388 4,862,792 20,133,593
16,515,354 16,515,354
26,668,742 4,862,792 36,648,947
98,079 233,241 15,567,650
$ 26,957,309 $ 18,558,413 $ 81,184,976
131
-
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 30,2007
DR
FT
Governmental Governmental
Fund Capital Fund Capital
Assets Assets
October 1, Additions/ Retirem ents/ September 30,
Function and Activity 2006 Adjustments Adjustments 2007
General government
Adm inistration $ 7,789,326 $ 473,872 $ $ 8,263,198
Planning 1,131,730 188,436 1,320,166
Total general government 8,921,056 662,308 9,583,364
Public safety
Fire 7,320,136 1,718,907 (12,250) 9,026,793
Police 4,798,429 5,740,783 (80,987) 10,458,225
Total public safety 12,118,565 7,459,690 (93,237) 19,485,018
Public works
Administration 20,826,319 1,510,142 2,186,082 24,522,543
Streets 14,329,269 (2,202,867) 12,126,402
Total public works 35,155,588 1,510,142 (16,785) 36,648,945
Cultural and Recreational
Parks and recreation 15,348,044 157,770 (38,165) 15,467,649
Total governmental funds
capital assets $ 71,543,253 $ 9,789,910 $ (148,187) $ 81,184,976
This schedule presents only the capital asset balances related to governmental funds.
Accordingly, the capital assets reported in internal service funds are excluded from the
above amounts. Generally, the capital assets of internal service funds are included as
governmental activities in the statement of net assets.
132
STATISTICAL SECTION
AF
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 135
These schedules contain trend information to help the reader understand
how the government's financial performance and well-being have changed
over time.
Revenue Capacity 142
These schedules contain information to help the reader assess the
government's most significant local revenue source, the property tax.
Debt Capacity 150
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 157
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 160
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.
133
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134
City of La Porte, Texas
Net Assets by Component
Last Five Fiscal Years
(accrual basis of accounting)
(unaudited)
Fiscal Year
2003 2004 2005 2006 2007
Governmental activities
Invested in capital assets, net of related debt $ 23,400,1 08 $ 32.752,971 $28,933,050 $ 28,424,345 $ 27,529,009
Restricted 5,804,419 5,770,840 6,642,077 7,363,187 13,316,591
Unrestricted 23,953,457 12,997,982 19,369.700 18,983,653 19,985,983
Total governmental activities net assets $ 53,157,984 $ 51,521.793 $ 54,944,827 $ 54,771,185 $ 60,831,583
Business-type activities
Invested in capital assets, net of related debt $ 26, 1 09,776 $25,996,416 $26,589,684 $ 29,642,136 $ 29,481,368
Restricted 3,042,730 3,662,800 3,407,445 2,185,791 2,184,725
Unrestricted 4,709,368 2,647,090 1,264,814 3,396,751 3,295,501
Total business-type activities net assets $33,861,874 $ 32,306,306 $ 31 ,261 ,943 $ 35,224,678 $ 34,961,594
Primary government
Invested in capital assets, net of related debt $49,509,884 $ 58.749,387 $ 55,522,734 $ 58,066,481 $ 57,010,377
Restricted 8,847,149 9,433,640 10,049,522 9,548,978 15,501,316
Unrestricted 28,662,825 15,645,072 20,634,514 22,380,404 23,281,484
Total primary government net assets $ 87,019,858 $ 83,828,099 $86,206,770 $ 89,995,863 $ 95,793,177
Note: The City of La Porte first applied GASB Statement 34 in fiscal year 2003; therefore, government-wide financial information
for years prior to fiscal year 2003 is not available.
135
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City of La Porte, Texas
Changes in Net Assets
Last Five Fiscal Years F
(accrual basis of accounting)
(unaudited)
Fiscal Year
2003 2004 2005 2006 2007
Expenses
Governmental activities:
General Government $ 8,625,554 $ V,487,889 $ 7,41\ 122 $ 7,348,812 $ 8,4 '0,865
Public Safety V,77'\423 1,\947,286 '0,367,759 1'\602,951 12,153,324
Public li\brks 3,638,063 '\267,829 5,134,855 5,209,686 3,668,425
Health and Sanitation '\823,462 1,906,513 1,887,204 ,\862,368 2,487,531
Culture and Recreation 4,048,974 4,'06,491 3,717,791 3,579,917 3,120,133 -
Interest on Long-term debt 747,351 689,644 863,813 1,226,231 1,352,747
Total governmental activities expenses 29,654,827 30,405,658 29,412,549 30,829,965 3,\133,075
Business-type activities:
Water Services 6,339,238 6,256,424 6,477,962 6,844,635 6,548,382
SeV1.er Services 1,913,284 1,895,709 '\813,756 '\894,415 2,086,651
Airport 149,472 142,765 157,136 122,548 123,904
Bay Forest Golf Course '\284,729 '\222,813 ,\242,613 1,285,121 1,3'0,589
Syivan Beach Convention Center 212,947 134,314 21'\682 214,552 213,053
Total business-type expenses 9,899,670 9,712,031 9,909,139 '0,36,\271 V,287,579
Total primarygovemment expenses $ 39,554,497 $ 40,117,689 $ 39,321,748 $ 41, 131,236 $ 41,480,654
Program Revenues
Governmental activities:
Charges for services: -
General government $ 660 ,955 $ 528,296 $ 670,332 $ 1,002,267 $ 2,006,607
Public safety 1,689,780 1,441,662 1,498,3'0 '\333,005 435,128
Public VIOrkS 1,481,061 '06,026 24,242
Health and sanitation 830,991 463,629 ,\429,617 1,770,611 1,856,013
Culture and recreatio n 657,784 '\ 157.449 460,796 429,971 413,143
Operating grants and contributions 480,037 576,262 2,639,934 1,031,408 991,679
Total govemmental activities program revenues 5,800,608 4,273,324 6,723,231 5,567,262 5,707,570
Business-type activities:
Charges fo r services
Water services 4,157,556 4,155,589 4,500,140 5,438,932 4,789,854
SeV1.er services 2,493284 2,493,134 2,591,406 2,842,495 2,763,715
Airpo rt 30,001 32,728 32,728 35,624 42,359
Golf course 943,493 '\022,1)3 965,983 955,867 911,371
Syivan beach co nventio n center 13\355 130,642 163,859 162,508 139,290
Capital grants and co ntributio ns 1,060,948
Total business-type program revenues 7,785,689 7,884,136 8,254,116 9,435,426 9,757,537
Total primarygovemment program revenues $ 13,586,297 $ 12,157,520 $ 14,977,347 $ 15,002,688 $ 8
136
Fiscal Year
2003 2004 2005 2006 07
Net (expense)/revenue BAJ:T(
Govemmental activities: $ (23,8542"9) $ (26,'[32,334) $ (22,689,3'8) 5,485,505)
Business-type activities: (2,1'[3,981) (1,827,835) (1,655,083) (530,042)
Total primarygovemment net expense $ (25,968,200) $ (27,960,139) $ (24,344,401) $ (26,'88,548) $ (26,015,547)
General Revenues and Other Changes in
Net Assets
Govemmental activities:
Taxes
P roperty taxes, levied for general purposes $ 8,797,886 $ 9, '[39,422 $ 1),"92,599 $ 1),535,313 $ 11,246,050
P roperty taxes, levied for debt service 2,070,120 1,922,117 1,623,095 1,661,801 1,8"9,554
Industrial payments 7,276,821 6,896,112 6,991,926 7,659,591 8,'88,891
Franchise taxes 1,682,849 1,7'8,875 1,885,801 1,986,698 2,003,691
Sales tax 3,037,574 3,263,459 3,459,979 4,067,767 5,735,725
Unrestricted investment eamings 542,254 376,359 720, '[37 1,874,828 2,386,980
Grants not specified for specific program 75, '89
M iscelianeous 704,886 495,1)2 753,595 1, '[37 ,928 89,400
Gain/(Ioss) on sale/retirement of capital assets (260,545) 1)3,594
Transfers (253,629) 684,697 381,625 (3,91),056) 75,612
Total govemmental activities 23,598,213 24,496,143 26,112,351 25,089,062 31,545,903
Business-type activities
Unrestricted investment eamings 121,174 88,602 135,132 300,099 342,566
M iscelianeous 889,298 874,146 827,'83 694,507
Gain/(Ioss) on sale/retirement of capital assets (5,784) (13,083)
Transfers 253,629 (684,697) (381,625) 3,91),056 (75,612)
Total business-type activities 1,264,1)1 272267 61),720 4,888,579 266,954
Total primarygovemment $ 24,862,317 $ 24,768,41) $ 26,723,071 $ 29,977,640 $ 31,812,856
Change in Net Assets
Govemmental activities $ (256,003) $ (1,636,"91) $ 3,423,033 $ (173,642) $ 6,060,398
Business-type activities (849,880) (1,555,568) (1,044,363) 3,962,734 (263,088)
Total primarygovemment $ (1, 1)5,883) $ (3,"91,759) $ 2,378,670 $ 3,789,091 $ 5,797,308
Note: The City of La Porte first applied GASB Statement 34 in fiscal year 2003; therefore, govemment-wde financial information
for years prior to fiscal year 2003 is not available.
137
City of La Porte, Texas
Go\€rnmental Activities Tax Re\€nues By Source
Last Fi\€ Fiscal Years
(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
2007 12,990,852 2,003,691 5,227,100
Industrial
Payments
$ 454,619
269,978
293,819
326,504
508,625
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F
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$ 7,094,900
6,896,112
6,991,926
7,470,700
8,188,891
Total
-
$22,922,669
22,948,635
24,045,940
25,687,864
28,919,159
Note: The City of La Porte first applied GASB Statement 34 in fiscal year 2003; therefore,
go\€rntment-wide financial information for years prior to fiscal year 2003 is not available.
138
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CityofLa Porte, Texas
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
(unaudited)
1998
Fiscal Year
1999 2000
R
2002
2001
General fund
Reserved
Unreserved
Total general fund
65,028 $ 66,158 $
5,947,020 5,428,233
$ 6,012,048 $ 5,494,391
72,088 $ 58,827 $ 74,843
5,924,197 7,608,591 7,053,076
$ 5,996,285 $ 7,667,418 $ 7,127,919
$
All other governmental funds
Reserved
U nres erved/U ndes ignated
Unreserved, reported in:
Special revenue funds
Capital projects funds
Total all other governmental funds
$ 959,678 $ 1,119,041 $ 1,263,483 $ 1,303,068 $ 1,589,610
1,515,126 2,171,471 2,837,718 3,307,882 3,850,787
7,613,980 7,178,328 13,038,143 11,765,217 13,778,877
$10,088,784 $10,468,840 $17,139,344 $16,376,167 $19,219,274
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140
FT
Fiscal Year
2003 2004 2005 2006 2007
$ 209,191 $ 440,926 $ 209,191 $ 144,775 $ 169,708
6,632,833 7,009,028 8,972,133 10,970,885 13,687,895
$ 6,842,024 $ 7,449,954 $ 9,181,324 $ 11,115,660 $ 13,857,603
$ 7,462,916 $ 1,584,497 $ 2,061,426 $ 2,266,406 $ 2,670,858
3,770,935 1,005,159 4,255,634 5,100,995 7,501,313
5,067,980 9,287,535 16,488,090 18,813,872 18,660,427
$16,301,831 $11,877,191 $22,805,150 $26,181,273 $28,832,598
141
City of La Porte, Texas
Changes in Fund Balances of GO\ernmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting) FT
(unaudited)
Fiscal Year
1998 1999 2000 2001
Revenues
Taxes $ 19,614,559 $ 20,164,016 $ 20,860,043 $ 22,406,291
Donations
Harris County Joint Ventures
Licenses and permits 303,890 357,694 337,259 262,010
Fines and forfeits 617,432 479,363 407,459 561,547
Charges and services 2,552,849 2,996,774 3,147,031 2,923,504
Intergo\ernmental 192,821 170,044 313,261 673,105
Interest 994,455 976,007 1,395,339 1,626,693
Miscellaneous 244,819 213,794 193,585 119,228
Total re\enues $ 24,520,825 $ 25,357,692 $ 26,653,977 $ 28,572,378
Expenditures
General GO\ernment 4,537,921 5,056,127 5,152,844 5,232,112
Public Safety 7,472,289 7,842,420 8,644,309 9,364,320
Public Works 2,144,846 2,204,287 2,304,829 2,487,825
Health and Sanitation 2,225,835 2,413,218 2,411,767 2,278,761 -
Culture and Recreation 2,560,069 2,697,886 2,944,296 3,058,199
Debt Service
Principal 1,555,000 1,495,000 1,555,000 1,775,000
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Interest 506,420 559,379 590,841 729,932
Capital Outlay 949,895 2,514,438 2,685,085 3,032,461
Total expenditures 21,952,275 24,782,755 26,288,971 27,958,610
Excess of re\enues
o\er (under) expenditures 2,568,550 574,937 365,006 613,768
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Other financing sources (uses)
Issuance of debt 2,500,000 6,250,000
Premium on bond
Transfers in 1,090,000 1,346,030 1,099,032 1,974,671
Transfers out (991,087) (2,058,568) (1,377,318) (1,849,671 )
Proceeds from sale of assets
Total other financing
sources (uses) 2,598,913 (712,538) 5,971,714 125,000
Net change in fund balances $ 5,167,463 $ (137,601) $ 6,336,720 $ 738,768
Debt service as a percentage
of noncapital expenditures 9.8% 9.2% 9.1% 10.0%
142
RAFT
Fiscal Year
2002 2003 2004 2005 2006 2007
$ 23,300,851 $ 22,922,669 $ 22,948,635 $ 24,045,940 $ 25,687,864 $ 28,919,159
30,000 30,000
1,751,555
238,535 199,970 320,405 531,091 683,284 919,923
614,534 847,250 554,559 678,205 848,232 1,243,694
2,129,487 2,275,333 2,947,340 3,233,453 3,887,570 3,966,801
385,722 480,037 576,262 1,112,687 1,174,381 716,103
748,798 481,822 325,418 630,683 1,709,163 2,117,375
143,668 125,020 32,605 183,658 163,380 77,056
$ 27,561,595 $ 27,332,101 $ 27,705,224 $ 32,197,272 $ 34,153,874 $ 37,990,111
5,294,977 5,542,520 7,971,284 6,848,838 7,236,765 7,696,436
10,165,683 10,477,080 10,414,544 10,532,857 11,071,829 11,769,003
2,422,522 2,556,011 2,361,192 2,430,322 2,360,073 2,407,428
1,764,906 1,823,462 1,758,964 1,808,313 1,813,812 1,972,823
3,297,865 3,475,888 3,245,144 3,067,815 3,010,725 3,103,466
1 ,685,000 1,590,000 1 ,490,000 1,330,000 1,195,000 1,235,000
634,535 795,199 699,834 1 ,030,430 1,374,314 1,582,287
4,077,477 2,771,651 3,259,141 8,566,314 6,550,309 10,012,947
29,342,965 29,031,811 31,200,103 35,614,889 34,612,827 39,779,390
(1,781,370) (1,699,710) (3,494,879) (3,417,617) (458,953) (1,789,279)
5,400,000 16,586,900 6,965,000 8,075,000
191,055 37,572
1,870,191 1,919,871 3,469,026 3,222,196 6,055,874 4,196,574
(3,185,214) (3,423,500) (3,790,857) (3,774,399) (7,532,602) (5,147,853)
42,250 90,083 21,253
4,084,977 (1,503,629) (321,831 ) 16,076,947 5,769,410 7,182,546
$ 2,303,607 $ (3,203,339) $ (3,816,710) $ 12,659,330 $ 5,310,457 $ 5,393,267
9.2% 9.1% 7.8% 8.7% 9.2% 9.5%
143
City of La Porte, Texas
Assessed Value and Estimated Actual Value of Taxable Property
Last Ten Fiscal Years
(unaudited)
-
Fiscal
Year Estimated Market Value Less: Total Taxable
Ended Real Personal Tax Exempt Assessed
September 30 Property ~ Property ~ Property Value
1998 $1,132,150,100 $239,361,192 $151,237,850 $ 1,220,273,442
1999 1,200,942,090 231 ,352,908 170,254,950 1,262,040,048
2000 1,348,881,240 258,255,710 187,918,790 1,419,218,160
2001 1,346,611,820 295,183,4 70 219,056,080 1,422,739,210
2002 1 ,461 ,368,400 295,213,550 251,950,970 1,504,630,980
2003 1,498,049,850 270,257,240 255,642,570 1,512,664,520
2004 1,546,560,410 279,687,470 265,840,970 1,560,406,910
2005 1,601,433,200 311,721,280 278,265,540 1,634,888,940
2006 1 ,777,351 ,563 325,549,640 407,734,605 1,695,166,598
2007 1,861,821,075 350,191,031 419,779,423 1,792,232,683
Source: City of La Porte records and the Harris County Appraisal District
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Total Assessed
Direct Total Value as a
Tax Taxable Percentage of
Rate Value Actual Value
$ 0.71 $ 1,220,273,442 100.00%
0.71 1,262,040,048 100.00%
0.71 1,419,218,160 100.00%
0.71 1,422,739,210 100.00%
0.71 1,504,630,980 100.00%
0.71 1,512,664,520 100.00%
0.71 1,560,406,910 100.00%
0.71 1,634,888,940 100.00%
0.71 1,695,166,598 100.00%
0.71 1,792,232,683 100.00%
145
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City of La Porte, Texas
Property Tax Rates
Direct and Overlapping Governments
(Per $1 00 of Assessed Value)
Last Ten Fiscal Years
(Unaudited)
D
F
City of La Porte 1
General
Obligation Harris County
Fiscal Basic Debt Total Flood Control Harris
Year Rate Service Direct District 2 County 2
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 0.061 7 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
2007 0.612 0.098 0.71 0.031060 0.39239
Source 1 City of La Porte records
2 Office of Harris County
3 Office of La Porte Independence School District
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146
Overlapping Rates
Port of Harris County San Jacinto
Houston Board of Hos pital La Porte Jr. College
Authority 2 Education 2 District 2 I.S.o.3 District 4 Total
$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
0.01437 0.00585 0.19216 1.305 0.145365 2.79620
147
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City of La Porte, Texas
Principal Property Tax Payers
Current Year and Nine Years Ago
(Unaudited)
2007 1998
Percentage Percentage
of Total City ofTotal City
Taxable Taxable Taxable Taxable
Assed Assessed Assed Assessed
Taxpayer Value Value Taxpayer Value Value
Conoco Phillips Inc $ 59,463,141 3.32% Conoco Inc $ 54,111,440 4.43%
Oxy Vinyls LP 50,504,679 2.82% Equistar Chemicals LP 44,664,690 3.66%
Equistar Chemicals LP 49,862,115 2.78% HL&P 42,425,040 3.48%
Dow Chemicals 46,021,233 2.57% Solvay Polymer Corp 37,068,510 3.04%
PPG Industries 42,972,161 2.40% Occidental Electrochem 36,236,280 2.97%
BP Solvay 38,054,910 2.12% PPG Industries 30,016,160 2.46% -
Centerpoint Energy 26,486,387 1.48% Fina Oil & Chem. Co. 24,606,050 2.02%
Attofina Petrochemicals 20,438,783 1.14% Dow Chemicals 21,053,500 1.73%
Noltex 19,568,831 1.09% Geon Company 20,408,900 1.67% -
Sulzer Hickham 19,042,493 1.06% Noltex 14,662,470 1.20%
$ 372,414,733 20.78% $ 325,253,040 26.65%
Source: City of La Porte Tax Department
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148
City of La Porte, Texas
Property Tax Levies and Collections
Last Ten Fiscal Years
(unaudited)
RAFT
Fiscal Collected within the
Year Taxes Levied Fiscal Year of the Levy Collections Total Collections to Date
Ended for the Percentage in Subsequent Percentage
September 30, Fiscal Year Amount of Levy Years Amount of Levy
1998 $ 8,599,050 $8,437,322 98.12% $ 110,638 $ 8,547,960 99.41 %
1999 8,951,320 8,795,498 98.26% 131,816 8,927,314 99.73%
2000 9,197,711 9,006,072 97.92% 162,788 9,168,860 99.69%
2001 10,026,632 9,780,571 97.55% 215,240 9,995,811 99.69%
2002 10,784,561 10,463,515 97.02% 282,551 10,746,066 99.64%
2003 10,823,210 10,491,257 96.93% 265,414 10,756,671 99.39%
2004 11,160,176 10,829,202 97.03% 260,446 11,089,648 99.37%
2005 11,652,289 11,334,572 97.27% 228,549 11,563,121 99.23%
2006 12,086,633 11,755,121 97.26% 195,414 11,950,535 98.87%
2007 12,724,857 12,418,873 97.60% 12,418,873 97.60%
Source: City of La Porte Tax Department
149
City of La Porte, Texas
Ratio of Outstanding Debt by Type
Last Ten Fiscal Years
(unaudited)
Governmental Activities
Fiscal
Year
General
Obligation
Bonds
Certificates
of
Obligation
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
$ 11,170,000
9,675,000
11,370,000
9,745,000
8,210,000
6,770,000
5,430,000
11,925,000
12,610,000
12,070,000
3,000,000
2,850,000
2,700,000
2,550,000
2,400,000
11,050,000
16,405,000
24,055,000
$
Source: Details regarding the City's outstanding debt can be
found in the notes to the financial statements.
Percentage of personal income and Per capita personal
income provided from the 2000 US Census.
150
Other
Obligations
$
5,400,000
5,400,000
5,400,000
5,400,000
5,130,000
4,860,000
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FT
Business-Type Activities
General
Water and Obligation Total Percentage
Sewer Revenue Refunding Other Primary of Personal Per
Bonds Bonds Obligations Government Income Capita
$ 1,750,000 $ 3,145,000 $ 8,575,000 $ 24,640,000 N/A $ 754
1,650,000 2,710,000 8,335,000 22,370,000 N/A 654
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 733
975,000 1 ,440,000 7,710,000 26,435,000 N/A 803
750,000 1,040,000 7,293,358 23,803,358 N/A 704
625,000 585,000 6,904,178 21,344,178 N/A 633
500,000 145,000 6,500,000 35,520,000 N/A 1,028
375,000 8,680,000 43,200,000 N/A 1,240
250,000 7,957,500 49,192,500 N/A 1,391
151
City of La Porte, Texas
Ratio of General Bonded Debt Outstanding
Last Ten Fiscal Years
(unaudited)
F
General Bonded Debt Outstanding
Percentage of
General Certificates Less: Amounts Actual Taxable
Fiscal Obligation of Available in Debt Value of Per
Year Bonds Obligation Service Fund Total Property 1 Capita 2
1998 $ 11,170,000 $ $ 959,678 $ 10,210,322 0.84% $ 313
1999 9,675,000 1 ,119,041 8,555,959 0.68% 250
2000 14,370,000 1,263,483 13,106,517 0.92% 411
2001 12,595,000 1,303,068 11,291,932 0.79% 349
2002 16,310,000 1,589,610 14,720,390 0.98% 447
2003 12,170,000 2,550,000 1,797,213 12,922,787 0.85% 382
2004 10,830,000 2,400,000 1,584,497 11,645,503 0.75% 345
2005 17,325,000 11,050,000 1,704,531 26,670,469 1.63% 772 -.
2006 17,740,000 16,405,000 1,813,887 32,331,113 1.91% 928
2007 16,930,000 24,055,000 1,925,756 39,059,244 2.18% 1,105
Note: Details regarding the City's outstanding debt can be found in the
notes to the financial statements.
Per Capita provided from the 2000 Census
1. See the Schedule of IIssessed Value and Estim ated Actual Value of Taxable Property for property value data.
2. Population data can be found in the Schedule of Demographic and Economic Statistics.
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152
City of La Porte, Texas
Direct and Overlapping Governmental Activities Debt
As of September 30, 2007
(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 (a)
La Porte ISO
Port of Houston Authority
San Jacinto Jr. Collect District
2,074,258,644
115,924,985
107,985,000
357,105,000
64,750,000
Subtotal, overlapping debt $
2,720,023,629
City of La Porte direct debt
Total direct and overlapping debt
43,347,500
(a) Harris County Toll Road debt is considered self-supporting.
Source: Texas Municipal Reports
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Estimate hare of
Percentage ver appmg
Applicable Debt
0.82% $ 17,008,921
0.82%
0.82% 950,585
0.82%
37.82% 40,839,927
0.82% 2,928,261
6.32% 4,092,200
$ 65,819,894
100% $ 43,347,500
$ 109,167,394
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City of La Porte, Texas
Legal Debt Margin Information
Last Ten Fiscal Years
(amounts expressed in thousands)
(unaudited)
1998
1999
2000
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200
Debt limit
$30,787,158
$ 31,930,272
$38,129,152
$ 35,568,480
$37,615,775
Total net debt applicable to limit
10,210,322
8,555,959
13,106,517
11,291,932
14,720,390
Legal debt margin
$ 20,576,836
$23,374,313
$ 25,022,635
$ 24,276,548
$ 22,895,385
Total net debt applicable to the limit
as a percentage of debt limit
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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 precribed maximum is $2.50 per $100 of the appraised value
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Fiscal Year AFT
2003 2004 2005 2006 2007
$37,816,613 $ 39,010,173 $ 40,872,224 $ 42,379,165 $ 44,805,817
10,372,787 9,245,503 15,620,369 15,926,113 18,855,756
$ 27,443,826 $ 29,764,670 $ 25,251 ,855 $ 26,453,052 $ 25,950,061
Legal Debt rvlargin Calculation for Fiscal Year 2007
Assessed value
$1,792,232,683
Add back: exempt property
$ 419,779,423
Total assessed value
$2,212,012,106
Debt limit (2.5% of total assessed value)
44,805,817
Debt applicable to limit:
General obligation bonds
Less: Amount set aside for repayment of
general obligation debt
$ 16,930,000
1,925,756
Total net debt applicable to limit
18,855,756
$ 25,950,061
Legal debt margin
155
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City of La Porte, Texas
Pledged-Revenue Coverage
Last Ten Fiscal Years
(unaudited) D F
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Water and Sewer System Revenue Bonds
Utility Less: Net
Fiscal Service Operating Available Debt Service Times
Year Charges 1 Expenses 2 Revenue Principal Interest Coverage
1998 $ 6,368,938 $ 4,177,982 $ 2,190,956 $ 535,000 $ 263,547 2.74
1999 6,445,231 4,386,479 2,058,752 660,000 211,328 2.36
2000 6,844,236 5,626,662 1,217,574 660,000 170,483 1.47
2001 6,094,735 4,347,508 1,747,227 660,000 168,781 2.11
2002 5,988,595 4,814,158 1,174,437 625,000 132,418 1.55 -
2003 5,837,448 5,025,158 812,290 580,000 115,948 1.17
2004 5,836,221 5,125,635 710,586 580,000 71,293 1.09
2005 6,193,451 5,259,943 933,508 565,000 43,161 1.53
2006 7,438,016 5,389,783 2,048,233 270,000 111,712 5.37
2007 6,722,774 5,681,548 1,041,226 262,500 92,966 2.93
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Note:
1. Includes interest income.
2. Excludes depreciation and loss on uncollectible accounts.
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156
City of La Porte, Texas
Demographic and Economic Statistics
Last Ten Calendar Years
(Unaudited) D FT
Personal Per
Income Capita
(thousands Personal Median School Unemployment
Year Population of dollars) Income Age Enrollment Rate
1998 32,658 N/A N/A N/A 7,415 5.0%
1999 34,191 N/A N/A N/A 7,477 4.7%
2000 31 ,880 675,155 21,178 33 7,645 4.2%
2001 32,356 N/A N/A N/A 7,772 5.3%
2002 32,910 N/A N/A N/A 7,732 6.2%
2003 33,789 N/A N/A N/A 7,648 6.6%
2004 33,712 N/A N/A N/A 7,629 5.7%
2005 34,538 N/A N/A N/A 7,808 5.3%
2006 34,825 N/A N/A N/A 7,786 4.7%
2007 35,362 N/A N/A N/A 7,889 4.4%
Sources:
Estimated population provided by the Planning Department.
Personal, income, per capita personal income and median age provided from the 2000 US Census.
School enrollment provided by LPISD.
Unemployment rates provided from the State of Texas Labor Statistics.
157
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City of La Porte, Texas
A-incipal Employers
Current Year and Nine Years Ago
(unaudited)
Employer
Furmanite Worldw ide
EI. Dupont De Nerrours & Co,
Rockw ood Service Corp,
Longview Inspection
Quest Tru Tec LP
EI. Dupont De Nerrours & Co,
WalMart
Aker Kvaerner
Oxy Vinyls
City of La Porte
Total
D AFT
2007 . 1997 .
Percentage Percentage
of Total City of Total City
Employees Rank Employment Bnployer Employees Rank Employment
1,494 1 7.90% Solvay Polymer 1,100 1 N/A
1,001 2 5.29% San Jacinto College 1,003 2 N/A
700 3 3.70% La Porte ISD 987 3 N/A
664 4 3.51% EI. Dupont 870 4 N/A
636 5 3.36% Millenium (formerly Quantum) 736 5 N/A
580 6 3.07% Akzo Nobel 500 6 N/A
500 7 2.64% Hickham Industries 270 7 N/A
400 8 2.11% Dow Chemical 250 8 N/A
400 9 2.11% Fina Oil & Chemical 225 9 N/A
368 10 1.95% Geon Company 180 10 N/A
6,743 35.64% 6,121
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Source:
. Bay Area Economic Partnership
.. City of La Porte Official Statement, Series 1998 General Obligation Bonds
Total employment figures for 1997 were not available, so therefore the percentages of total city employment could not be calculated.
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158
City of La Porte, Texas
Full-lime Equivalent City Govemment Employees by Function/Program
Last Three Fiscal Years
(unaudited)
RAFT
Fiscal Year
Function/Program 2005 2006 2007
General Government 76 76 80
Public Safety 135 138 147
Public Works 32 32 32
Health & Sanitation 22 21 21
Culture and recreation 47 45 44
Water Services 26 27 25
Sewer Services 20 20 20
Golf Course 13 13 12
Sylvan Beach Convention Ctr. 3 3 4
Source:
City Budget Office
Note: Data not available for fiscal years prior to 2005.
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City of La Porte, Texas
Operating Indicators by Function/Program
Last Nine Fiscal Years
(unaudited)
1999 2000 2001 2002
Function/Program
Police
Physical arrests N/A 1,541 2,114 2,193
Tickets processed 6,065 6,657 9,489 9,298
Fire
Number of calls answered N/A N/A N/A N/A
Inspections N/A N/A N/A N/A
Highways and streets -
Street resurfacing (linear feet) 40,400 39,200 42,000 26,200
Potholes repaired 251 302 232 271
Sanitation -
Cu. Yds. Garbage collected 25,757 27,300 28,025 28,655
Cu. Yds. Trash collected 31,061 38,603 48,049 52,796
Culture and recreation
Fitness center admissions 66,028 67,347 68,668 73,764
Water
Number of water meters 9,500 9,679 10,699 10,957
Average daily water consumption (million gallons) 3.1 4.6 4.1 3.1
Water mains breaks 806 601 505 491
Wastewater
Average daily sewer treatment 3.4 3.0 3.9 3.4
(thousands of gallons)
Golf Course
Number of Paid Rounds Played 41,117 48,950 43,063 42,540
Source: City Departments
Notes: N/A - Data not available
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160
Fiscal Year
2003
2004
2005
2007
2006
2,271 2,000 2,330 2,465 2,489
9,605 6,593 6,877 8,212 9,652
N/A 494 644 689 1,598
N/A 500 500 N/A 600
27,800 33,800 66,158 27,835 22,100
413 524 531 321 1,260
28,243 29,675 30,022 30,795 29,279
50,111 54,875 49,140 49,140 52,250
76,311 84,353 81,868 70,558 62,828
10,987 10,987 10,987 11,592
4.0 3.8 4.1 3.9 3.8
440 299 437 483 467
3.9 4.0 3.5 2.8 3.9
38,594
34,961
32,433
32,731
38,901
161
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City of La Porte, Texas
Capital Asset Statistics by Function/Program -
Last Eight Fiscal Years
(unaudited)
Fiscal Year
2000 2001 2002 2003 2004 2007
Function/Program
Public Safety
Police Station 1 1 1 1 1 1 1 1
Police Officers 56 71 71 72 72 72 73 74
Reserve Officers 9 3 5 5 5 5 5 6
Fire Stations 4 4 4 4 4 4 4 4
Sanitation
Collection trucks 13 13 13 14 14 14 14 14
Highways and streets
Streets (miles) 160 160 164 164 164 211 217 211
Streetlights 1,823 2,072 2,109 1,533 1,665 2,192 1,803 1,804
Traffic signals 3 3 3 3 3 3 3 3-
Culture and recreation
Parks acreage 145 462 463 463 463 337 339 347 _
Parks 17 18 18 19 19 21 21 22
Swimming pools 6 6 6 6 6 6 6 6
Recreation Centers 1 1 1 1 1 1 1 1
Senior Center 1 1 1 1 1 1 1 1
Water and Sewer
Water Mains (miles) 226 229 231 231 231 165 168 176 -
Fire Hydrants 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,076
Sanitary Sewers (miles) 184 185 186 187 187 187 187 189
Storm Sewers (miles) 87 88 88 89 89 89 92 92 -
Source: City Departments
Note: Data not available for fiscal years prior to 2000. -
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162
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