HomeMy WebLinkAbout02-09-09 Regular Meeting of La Porte Fiscal Affairs Committee
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MINUTES OF THE REGULAR MEETING OF LA PORTE FISCAL AFFAIRS COMMITTEE
February 9, 2009
1. Call to Order
The meeting was called to order by Chairman Chuck Engelken at 5:00 p.m.
Members of Committee Present: Councilmembers, Chuck Engelken, Howard Ebow and
Tommy Moser
Members of Committee Absent: Louis Rigby
Members of City Council. City Executive Staff and City Employees Present: City Manager
Ron Bottoms, Assistant City Manager John Joerns, Director of Finance Michael Dolby,
Controller Phyllis Rinehart, and City Secretary Martha Gillett
Others present: Nick Barrera
2. Consider approval of Minutes of Special Called Regular Meeting of Fiscal Affairs Committee
held October 27,2008.
Motion was made by Committee Member Ebow to approve the minutes as presented. A
second by Committee Member Engelken. The motion carried.
Ayes: Ebow, Engelken
Nays: None
Abstain: Moser
Absent: Rigby
3. Controller Phyllis Rinehart provided an overview of the First Quarter (FY 2009) Investment
Report.
4. Finance Director Michael Dolby provided an overview of the First Quarter (FY 2009)
Purchasing Card Expenditure.
5. Administrative Reports
City Manager Ron Bottoms reported on the following items:
Fiscal Affairs Committee Meeting - March 9, 2009 - 5:00 p.m. (Audit Report)
Fiscal Affairs Committee Meeting - April 20, 2009 - 5:00 p.m.
6. Committee Comments
There were no committee comments.
Fiscal Affairs Committee Meeting - February 9, 2009
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7. Adjournment
There being no further business to come before the committee, the meeting was adjourned at
5:18 p.m.
Respectfully submitted,
f!7auI~
Martha Gillett TRMC, CMC
City Secretary
Approved this ~ day of March, 2009.
dwd- ~
Chuck Engelken, Chairman
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CITY OF LA PORTE, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
For the fiscal year ended
September 30, 2008
Prepared by:
Department of Finance
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City of La Porte
Comprehensive Annual Financial Report
For the Fiscal Year Ended September 30,2008
TABLE OF CONTENTS
INTRODUCTORY SECTION
Letter of Transmittal
Organization Chart
GFOA Certificate of Achievement
List of Elected Officials
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
Schedule of Revenues, Expenditures, and Changes in Fund
Balances - Grant Special Revenue 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:
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
Transportation and Other Infrastructure Fund
1998 General Obligation Bonds Fund
2000 Certificate of Obligation Bonds Fund
2000 General Obligation Bonds Fund
III
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City of La Porte
Comprehensive Annual Financial Report
For the Fiscal Year Ended September 30,2008
TABLE OF CONTENTS
2002 General Obligation Bonds Fund 104
2004 General Obligation Bonds Fund 105
2005 General Obligation Bonds Fund 106
2005 Certificate of Obligation Bonds Fund 107
2006 Certificate of Obligation Bonds Fund 108
2006 General Obligation Bonds Fund 109
2007 Certificate of Obligation Bonds Fund 109
Debt Service Fund 110
2007 Certificate of Obligation Bonds Fund 111
Capital Projects Fund 112
Supplementary Individual Fund Financial Statements and Schedules - General Fund 114
Schedule of Revenues - Budget and Actual 115
Schedule of Expenditures - Budget and Actual 116
Combining Financial Statements - Nonmajor Enterprise Funds: 121
Combining Statement of Net Assets 122
Combining Statement of Revenues, Expenses and Changes in Fund Net Assets 123
Combining Statement of Cash Flows 124
Combining Financial Statements - Internal Service Funds: 125
Combining Statement of Net Assets 126
Combining Statement of Revenues, Expenses and Changes in Fund Net Assets 127
Combining Statement of Cash Flows 128
Capital Assets Used in the Operation of Governmental Funds: 130
Schedule by Source 131
Schedule by Function and Activity 133
Schedule of Changes by Function and Activity 134
STATISTICAL SECTION
Net Assets by Component 138
Changes in Net Assets 139
General Government Tax Revenues by Source 141
Fund Balances of Governmental Funds 143
Changes in Fund Balances of Governmental Funds 145
Assessed Value and Estimated Actual Value of Taxable Property 147
Property Tax Rates - Direct and Overlapping Governments 149
Principal Property Taxpayers 151
Property Tax Levies and Collections 152
Ratios of Outstanding Debt by Type 153
Ratios of General Bonded Debt Outstanding 155
Direct and Overlapping Governmental Activities Debt 156
Legal Debt Margin Information 157
Pledged Revenue Coverage 159
Demographic and Economic Statistics 160
Principal Employers 161
Full-time Equivalent City Government Employees by Function 162
Operating Indicators by Function 163
Capital Asset Statistics by Function 165
IV
INTRODUCTORY SECTION
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CITY OF LA PORTE
Established 1892
February 25,2009
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,
2008. This report is published to provide the City Council, City staff, our citizens, our bondholders
and other interested parties with detailed information concerning the financial condition and
activities of the City government.
This report consists of management's representations concerning the finances of the City of La
Porte. Consequently, management assumes full responsibility for the completeness and reliability
of all of the information presented in this report. To provide a reasonable basis for making these
representations, management of the City has established a comprehensive internal control
framework that is designed both to protect the government's assets from loss, theft or misuse and
to compile sufficient reliable information for the preparation of the City of La Porte's financial
statements in conformity with GAAP. Because the cost of internal controls should not outweigh
their benefits, the City of La Porte's comprehensive framework of internal controls has been
designed to provide reasonable rather than absolute assurance that the financial statements will be
free from material misstatement. As management, we assert that, to the best of our knowledge and
belief, this financial report is complete and reliable in all material respects.
The City of La Porte's financial statements have been audited by Pattillo, Brown & Hill, LLP, a firm
of licensed certified public accountants. The goal of the independent audit was to provide
reasonable assurance that the financial statements of the City of La Porte for the fiscal year ended
September 30, 2008 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, 2008, are fairly presented in
conformity with GAAP. The independent auditor's report is presented as a component of the
financial section of this report.
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604 W. Fairmont Pkwy. . La Porte, Texas 77571 . (281) 471-5020
The independent audit of the financial statements of the City of La Porte included a federally
mandated "Single Audit" designed to meet the special needs of federal grantor agencies. The
standards governing Single Audit engagements require the independent auditor to report not only
on the fair presentation of the financial statements, but also on the audited government's internal
controls and compliance with legal requirements, with special emphasis on internal controls and
legal requirements involving the administration of federal awards. These reports are available in
the City of La Porte's separately issued Single Audit Report.
GAAP requires that management provide a narrative introduction, overview and analysis to
accompany the basic financial statements in the form of Management's Discussion and Analysis
(MD&A). This letter of transmittal is designed to complement MD&A and should be read in
conjunction with it. The City of La Porte's MD&A can be found immediately following the report of
the independent auditors.
Profile of the City
The City of La Porte, incorporated in 1892, is located in the southeast quadrant of Harris County
and is bounded on the north by the Houston ship channel, on the east by Galveston Bay and the
south by the Bayport channel. The City of La Porte currently encompasses 19 square miles and
serves a population of 35,518.
The City is a home rule city operating under the Council-Manager form of government. Policy-
making and legislative authority are vested in a governing council consisting of the mayor and eight
other members. The city council is responsible, among other things, for passing ordinances,
adopting the budget, appointing committees and hiring both the City Manager and Attorney. The
City Manager is responsible for carrying out the policies and ordinances of the City Council, for
overseeing the day-to-day operations of the City and for appointing the heads of various
departments. The Council is elected on a non-partisan basis. The Mayor and Council members
serve three-year staggered terms. Six of the council members are elected by district. The Mayor
and the two remaining council members are elected at large.
The City of La Porte provides a full range of services, including police and fire protection, the
construction and maintenance of streets and other infrastructure and recreational activities and
cultural events. Certain services are provided through a legally separate Water Authority, which
functions, as a blended component unit and in essence, is a department of the City of La Porte,
and, therefore, has been included as an integral part of the City of La Porte's financial statements.
Additional information on the Water Authority and other blended component units can be found in
Note 1.B. of the notes to the financial statements.
The City's accounting records for general governmental operations are maintained on a modified
accrual basis, with the revenues being recorded when available and measurable and expenditures
being recorded when the services or goods are received and the liabilities are incurred.
Accounting records for the City's utilities and other proprietary activities are maintained on the
accrual basis.
The annual budget serves as the foundation for the City of La Porte's financial planning and
control. Budgetary control has been established at the fund level. All agencies of the City of La
Porte are required to submit requests for appropriation to the City Manager on or before May 26 of
each year. The City Manager uses these requests as the starting point for developing a proposed
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budget. The City Manager then presents this proposed budget to council for review prior to
August. The council is required to hold a public hearing on the proposed budget and to adopt a
final budget by no later than August. The appropriated budget is prepared by fund, function (e.g.,
public safety) and department (e.g., police). The directors are given latitude to approve transfers of
appropriations within a department. Transfers of appropriations between funds, however require
the special approval of the city council. Budget-to-actual comparisons are provided in financial
reports for each individual governmental fund for which an appropriated annual budget has been
adopted. For the general fund, this comparison is presented on page 78 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 82.
Factors Affecting Financial Condition
The information presented in the financial statements is perhaps best understood when it is
considered from the broader perspective of the specific environment within which the City of La
Porte operates.
Local economy. The City of La Porte is located in the southeast quadrant of Harris County, which
is a 1,723 square mile county is a leading oil, gas and petrochemical areas. The County has more
than 3,200 manufacturing plants, the nation's largest concentration of petrochemical plants, the
third largest United States seaport and is a corporation management center. A significant part of
the County's major employers, manufacturers, education and financial institutions are located in
Houston, the County seat. The Texas Medical Center, located in Harris County, is one of the
nation's largest, providing medical care and educational opportunities. The county's 64 hospitals
have over 17,000 beds of which 4,600 are in the Texas Medical Center. Higher education facilities
includes: University of Houston, Rice University, Texas Southern University, St. Thomas University
and Houston Baptist College, all offering full four-year as well as postgraduate programs. The
Lyndon B. Johnson Space Center is also located here.
Located some 20 miles southeast of Houston on Galveston Bay in Harris County are the three
communities that make up the La Porte Bayshore Area: La Porte, Morgan's Point and Shoreacres.
The area has a combined population of approximately 40,000. Though much of the image of this
area is industrial, the La Porte-Bayshore area is still characterized by an expanse of resort homes.
Because of this, and the metropolitan advantages of Houston, La Porte is one of the few
communities in the Gulf Coast area that offers this favorable combination.
Future planning. The La Porte 2020 Comprehensive Plan is a 20-year master plan adopted by
the City Council to guide policy decisions relating to the physical and economic development of the
community. In general, the plan indicates how the community desires to develop and redevelop
over the course of the next twenty years. The comprehensive plan is a physical plan; it is long-
range, comprehensive and states the goals, objectives and policies of the local government. The
comprehensive plan provides clear direction through specific statements of action to achieve the
desired results envisioned by citizens and the leadership of the community.
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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 redevelopment of the community;
.:. The time frame is long, extending over a twenty-year horizon;
.:. It encompasses a large geographic area including the corporate limits and ET J of the
community;
.:. It is general in nature, allowing some issues to be resolved and many decisions to be made;
.:. It articulates ideas in a framework of goals and objectives, policies and actions, and plans
and projects;
.:. It is intended foremost, to serve as a continuing guide to decision-making, to provide a
common direction and to provide stability as issues are addressed and future decisions are
made.
Residential Development. Neighborhoods are one of La Porte's greatest assets as they form a
foundation for a sound quality of life. The City is made up of several distinct neighborhood areas,
each with somewhat different physical characteristics such as the age of housing, street
configuration, and the sizes of structures and lots. Much of the City's overall image and identity is
due to the unique character of its neighborhoods and these distinguishing features should, therefore,
be preserved. Neighborhoods that are safe, well maintained and have character will maintain
property values and thus maintain a sound neighborhood environment and a stable residential tax
base.
The attractive appearance and environmental quality of existing and future low-density residential
neighborhoods should be protected and improvements made where necessary to maintain the value
of properties and enhance the quality of life. As the city continues to develop it is important that the
integrity of the neighborhoods is preserved and the value and enjoyment of property is maintained
and enhanced.
Goals for residential development:
.:. Consider programs to revitalize and rehabilitate existing housing where needed.
.:. Meet the future housing needs by providing for a variety of housing options.
.:. Encourage the rehabilitation or replacement of substandard housing.
.:. Promote a standard of home ownership encouraging well-maintained residential properties.
.:. Preserve the integrity of existing neighborhoods and create livable and safe neighborhood
environments.
.:. Protect the attractive appearance and environmental quality of existing neighborhoods and
make necessary improvements to maintain the value of properties and enhance the quality
of life.
Beautification and Conservation. Citizens have expressed great interest for enhancing the
visual appearance of La Porte and the redevelopment and reinvestment in Downtown, along major
corridors and in nonresidential areas. Through public involvement it is apparent that citizens
visualize attractive shopping centers, livable neighborhoods, landscaped roadways, pleasant
places to walk and an enhanced quality of life. They want successful shopping areas that appeal
to shoppers. They see the opportunities in downtown to create a destination that combines a lively
entertainment district in a historically significant area, retail stores interspersed with restaurants
and professional offices and a blend of residential units as well.
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Goals for Beautification:
.:. Improve the community character to make it a more desirable place to live, work and visit.
.:. Improve the aesthetic visual environment through enhancement of site design, signage,
roadways, parking areas, open space and landscaping.
.:. Invest in Downtown to establish a vibrant mix of places to work, live and visit, with shops,
restaurants, entertainment and a variety of dwelling units.
Redevelopment Strategy. Urban redevelopment efforts require cooperative action to encourage
new and sustained private investment and to provide supporting rehabilitation of public
infrastructure. A key part of the process is determining what strategic actions the community
should take to achieve its redevelopment goals and objectives. Successful redevelopment will
often require cooperation and coordination between agencies at different levels of government as
well as non-profit community organizations. This should include coordination of physical
improvements with social service programs, which aim to enhance the health and economic
capacity of residents in targeted neighborhoods.
Redevelopment Goals:
.:. Stabilize and improve the quality of neighborhoods and other areas in decline by attracting
renewed private investment activity.
.:. Revitalize the City's historic downtown area.
Cash management policies and practices. Cash temporarily idle during the year was invested
in demand deposits and obligations of the U.S. Treasury. The maturities of the investments range
from 30 days to 2 years, with an average maturity of 14.32 months. The average yield on
investments was 3.32% for the government. Investment income includes appreciation in the fair
value of investments. Increases in fair value during the current year, however, do not necessarily
represent trends that will continue; nor is it always possible to realize such amounts, especially in
the case of temporary changes in the fair value of investments that the City intends to hold to
maturity.
Pension and other post employment benefits. The City of La Porte is a member of a cost
sharing multiple employer pension system administered by the State of Texas for its emergency
services employees.
The City of La Porte also provides pension benefits for its non emergency services employees.
These benefits are provided through a state-wide plan managed by Texas Municipal Retirement
System (TMRS). The City of La Porte has no obligation in connection with employee benefits
offered through this plan beyond its annual contractual payment to TMRS.
The City of La Porte also provides postretirement health and dental care benefits for certain
retirees and their dependents. As of the end of the current fiscal year, there were 61 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
The Government Finance Officers Association (GFOA) awarded a Certificate of
Achievement for Excellence in Financial Reporting to the City for its comprehensive annual
financial report for the fiscal year ended September 30, 2007. This was the twenty-seventh
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
con' e 0 the preparation of this report. Credit also must be given to the mayor and city
c cil for heir unfailing support for maintaining the highest standards of professionalism in
e m ment of the City of La Porte's finances.
~t~f!k
Director of Finance;PA t:J' r
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9
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, 2007
A Certificate of Achievement for Excellence in Financial
Reporting is presented by the Government Finance Officers
Association of the United States and Canada to
government units and public employee retirement
systems whose comprehensive annual financial
reports (CAFRs) achieve the highest
standards in government accounting
and financial reporting.
.... Ie-:. i,.... "........". ~ > #- i
~. ~~" . ~.~.
President
~/~
Executive Director
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CITY OF LA PORTE
LIST OF ELECTED OFFICIALS
ALTON PORTER
MA YOR
MICHAEL MOSTEI
COUNCIL PERSQ
DISTRICT 1 .
JOHN BLACK
COUNCIL PERSON
AT LARGE B
GEORGIA A. MALONE
COUNCIL PERSON
AT LARGE A
.HUCK ENGELKEN
COUNCIL PERSON
, DISTRICT 2
HOWARD EBO"Y\.
COUNCIL PERSQ,,~;;;?:
DISTRICT 3 ... .,
OMMY MOSER
UNCIL PERSON
DISTRICT 4
LOUIS RIGBY
COUNCIL PERSON
DISTRICT 5
MIKE CLAUSEN
MAYOR PROTEM
DISTRICT 6
11
]2
FINANCIAL SECTION
13
]4
PJ1~
PAT T ILL 0, B ROW N & H ILL, L. L. P.
CERTIFIED PUBLIC ACCOUNTANTS. BUSINESS CONSULTANTS
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, 2008, 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, 2008, 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.
40] WEST HIGHWAY 6. P. o. BOX 20725. WACO, TX 76702-0725. (254) 772-490] . FAX: (254) 772-4920. www.pbhcpa.com
AFFILIATE OFFICES: BROWNSVILLE, TX (956) 544-7778. HILLSBORO, TX (254) 582-2583
TEMPLE, TX (254) 79]-3460. WHITNEY, TX (254) 694-4600. ALBUQUERQUE, NM (505) 266-5904
15
In accordance with Government Auditing Standards, we have issued our report dated February 25,
2009, on our consideration of the City's internal control over financial reporting and on our tests of
its compliance with certain provisions or laws, regulations, contracts, and grant agreements and
other matters. The purpose of that report is to describe the scope of our testing of internal control
over financial reporting and compliance and the results of that testing, and not to provide an opinion
on the internal control over financial reporting or on compliance. That report is an integral part of
an audit performed in accordance with Government Auditing Standards and should be considered in
assessing the results of our audit.
The Management's Discussion and Analysis on pages 17 through 23, Pension System
Supplementary Information on page 75, and budgetary comparison information on pages 76 through
79 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.
'P~-ItJ1, I \SM>vrr\ ~ th.ll) L. L.f.
February 25, 2009
CITY OF LA PORTE, TEXAS
Management's Discussion and Analysis
For the Year Ended September 30, 2008
As management of the City of La Porte, we offer readers of the City's financial statements this narrative
overview and analysis of the financial activities of the City for the fiscal year ended September 30, 2007. We
encourage readers to consider the information presented here in conjunction with additional information that we
have furnished in our letter of transmittal, which can be found on pages 3-8 of this report.
FINANCIAL HIGHLIGHTS
. The assets of the City of La Porte exceeded its liabilities at the close of the most recent fiscal year by
$101,945,458 (net assets). Of this amount $22,784,576 (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 $6,152,309. This increase is due to capital contributions in the
business type funds.
. As of the close of the current fiscal year, the City of La Porte's governmental funds reported combined
ending fund balances of $43,228,403. Of this amount, $39,845,794 (92%) is unreserved and available
for use within the City's designation and policies and working capital requirements.
. At the end of the current fiscal year, unreserved fund balance for the general fund was $13,587,254
approximately (49%) of the total general fund expenditures.
OVERVIEW OF THE FINANCIAL STATEMENTS
This discussion and analysis is intended to serve as an introduction of the City's basic financial statements. The
City's basic financial statements are comprised of three components: 1) govemment-wide financial statements,
2) fund financial statements and 3) notes to the financial statements. This report also contains other
supplementary information in addition to the basic financial statements themselves.
Government-wide financial statements - The government-wide financial statements are designed to provide
readers with a broad overview of the City's finances, in a manner similar to a private-sector business.
The Statement of Net Assets presents information on all of the City's assets and liabilities, with the difference
between the two reported as net assets. Over time, increases or decreases in net assets may serve as a useful
indicator of whether the financial position of the City is improving or deteriorating.
The Statement of Activities presents information showing how the City's net assets changed during the fiscal
year. All changes in net assets are reported when the underlying event giving rise to the change occurs,
regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for
some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but
unused compensated absences).
Both of the government-wide financial statements report functions of the City that are principally supported by
taxes and intergovernmental revenues (governmental activities) from functions that are intended to recover all or
a significant portion of their costs through user fees and charges (business-type activities). The governmental
activities of the City include general government, public safety, public works, health and sanitation and culture
and recreation. The business-type activities of the City include the Water and Sewer Utilities, Airport, La Porte
Area Water Authority, Sylvan Beach Convention Center and Bay Forest Golf Course operations.
The government-wide financial statements can be found on pages 27-31 of this report.
17
CITY OF LA PORTE, TEXAS
Management's Discussion and Analysis
For the Year Ended September 30,2008
Fund financial statements - A fund is a grouping of related accounts that is used to maintain control over
resources that have been segregated for specific activities or objectives. The City, like other state and local
governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal
requirements. All of the funds of the City can be divided into two categories - governmental funds and
proprietary funds.
Governmental funds - Governmental funds are used to account for essentially the same functions reported as
governmental activities in the government-wide financial statements. However, unlike the government-wide
financial statements, governmental fund financial statements focus on current sources and uses of spendable
resources, as well as on balances of spendable resources available at the end of the fiscal year. Such
information may be useful in evaluating a government's near-term financing requirements.
Because the focus of governmental funds is narrower than that of the government-wide financial statements, it
is useful to compare the information presented for governmental funds with similar information presented for
governmental activities in the government-wide financial statements. By doing so, readers may better
understand the long-term impact of the government's near-term financing decisions. Both the governmental
funds balance sheet and the governmental fund statements of revenues, expenditures and changes in fund
balances provide a reconciliation to facilitate this comparison between governmental funds and governmental
activities.
The City maintains 20 governmental funds. Information is presented separately in the Governmental Fund
Balance Sheet and in the Governmental Fund Statement of Revenues, Expenditures and Changes in Fund
Balances for the General, 2007 Certificates of Obligation Bond, Grant and Capital Projects Fund, all of which
are considered to be major funds. Data from the other 16 governmental funds are combined into a single,
aggregated presentation called non-major. Individual fund data for each of these non-major governmental funds
is provided in the form of combining statements elsewhere in this report.
The basic governmental fund financial statements can be found on pages 27-36 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 45-73 of this report.
18
CITY OF LA PORTE, TEXAS
Management's Discussion and Analysis
For the Year Ended September 30, 2008
Other Information - In addition to the basic financial statements and accompanying notes, this report also
presents certain required supplementary information concerning the City's progress in funding its obligation to
provide pension benefits to its employees. Required supplementary information can be found on pages 75-78
of this report.
The combining statements referred to earlier in connection with nonmajor governmental funds and internal
service funds are presented immediately following the required supplementary information for the general fund.
Combining fund statements and schedules can be found on pages 82-110 of this report.
GOVERNMENT-WIDE FINANCIAL ANAL YS/S
As noted earlier, net assets may serve over time as a useful indicator of a govemment's financial position. In
the case of the City of La Porte, assets exceeded liabilities by $101,945,458 at the close of the fiscal year.
By far the largest portion of the City's net assets ($60,405,676) 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
2008 2007 2008 2007 2008 2007
Current and other assets $ 60,577,388 $ 57,295,634 $ 7,766,710 $ 7,231,350 $ 68,344,098 $ 64,526,984
Capital assets 51,131,865 52,727,418 42,818,003 37,688,868 93,949,868 90,416,286
Total Assets 111,709,253 110,023,052 50,584,713 44,920,218 162,293,966 154,943,270
Long term liabilities 42,799,774 44,109,498 7,744,081 8,607,342 50,543,855 52,716,840
Other liabilities 8,434,625 5,081,971 1,370,028 1,351,282 9,804,653 6,433,253
Total Liabilities 51,234,399 49,191,469 9,114,109 9,958,624 60,348,508 59,150,093
Net Assets:
Invested in capital assets,
net of related debt 24,922,673 27,529,009 35,483,003 29,481,368 60,405,676 57,010,377
Restricted 16,566,966 13,316,591 2,188,240 2,184,725 18,755,206 15,501,316
Unrestricted 18,985,215 19,985,983 3,799,361 3,295,501 22,784,576 23,281,484
Total Net Assets $ 60,474,854 $ 60,831,583 $ 41,470,604 $ 34,961,594 $ 101,945,458 $ 95,793,177
An additional portion of the City's net assets $18,755,206 (18%) represents resources that are subject to
external restrictions on how they may be used. The remaining balance of unrestricted net assets of
$22,784,576 (22%) may be used to meet the government's ongoing obligations to citizens and creditors.
As of September 30, 2008, the City is able to report positive balances in all three categories of net assets, both
for the government as a whole, as well as for its separate categories - governmental and business-type
activities.
19
CITY OF LA PORTE, TEXAS
Management's Discussion and Analysis
For the Year Ended September 30, 2008
Analysis of the City's Operations - the following table provides a summary of the City's operations for the
year ended September 30, 2008, with comparative totals for year ended September 30, 2007. Governmental
activities decreased the City of La Porte's net assets by ($356,728). Business-type activities increased the
City's net assets by $6,509,037 .
City of La Porte's Changes in Net Assets
Govemmental Business-Type
Activities Activities Total
2008 2007 2008 2007 2008 2007
Revenues:
Program Revenues:
Charges for Services $ 5,622,610 $ 4,715,891 $ 11,060,721 $ 8,696,589 $ 16,683,331 $ 13,412,480
Operating grants and contributions 4,647,718 991,679 4,647,718 991,679
Cap~a1 grants and contributions 234,630 2,337,630 1,060,948 2,572,260 1,060,948
General revenues:
Property taxes, levied for general purposes 11,802,564 11,246,050 11,802,564 11,246,050
Property taxes, levied for debt service 1,880,095 1,819,554 1,880,095 1,819,554
Industrial payments 7,958,522 8,188,891 7,958,522 8,188,891
Franchise taxes 2,165,343 2,003,691 2,165,343 2,003,691
Sales tax 5,803,077 5,735,725 5,803,077 5,735,725
Unrestricted investment eamings 1,782,572 2,386,980 199.060 342,566 1,981,632 2,729,546
Miscellaneous 115,351 89,400 115,351 89,400
Total revenues 42,012,482 37,177,861 13,597,411 10,100,103 55,609,893 47,277,964
Expenses:
General Govemment 10,056,369 8,410,865 10,056,369 8,410,865
Public Safety 16,267,453 12,153,324 16,267,453 12,153,324
Public Wori<s 4,348,281 3,668,425 4,348,281 3,668,425
Health and Sanitation 2,465,327 2,487,531 2,465,327 2,487,531
Cunure and Recreation 4,004,206 3,120,183 4,004,206 3,120,183
Interest on Long-term debt 1,694,638 1,352,747 1,694,638 1,352,747
Water Services 6,630,986 6,548,382 6,630,986 6,548,382
Sewer Services 2,247,031 2,086,651 2,247,031 2,086,651
Airport 155,970 123,904 155,970 123,904
Bay Forest Golf Course 1,361,970 1,310,589 1,361,970 1,310,589
Sylvan Beach Convention Center 225,353 218,053 225,353 218,053
Total Expenses 38,836,274 31,193,075 10.621.310 10,287,579 49,457,584 41,480,654
Change in net assets before transfers 3,176,209 5,984,786 2,976,101 (187,476) 6,152,309 5,797,310
Transfers (3,532,936) 75,612 3,532,936 (75,612)
Change in net assets (356,728) 6,060,398 6,509,037 (263,088) 6,152,309 5,797,310
Net assets - beginning 60,831,582 54,771,185 34,961,567 35,224,655 95,793,149 89,995,840
Net assets - ending $ 60,474,854 $ 60,831,583 $ 41,470,604 $ 34,961,567 $ 101,945,458 $ 95,793,150
20
CITY OF LA PORTE, TEXAS
Management's Discussion and Analysis
For the Year Ended September 30, 2008
FINANCIAL ANAL YS/S OF THE GOVERNMENT'S FUNDS
Governmental funds - The focus of the City of La Porte's governmental funds is to provide information on
near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the
City's financing requirements. In particular, unreserved fund balance may serve as a useful measure of a
government's net resources available for spending at the end of the fiscal year.
As of the end of the current fiscal year, the City of La Porte's governmental funds reported combined ending
fund balances of $43,228,403. Approximately 92% of this total amount ($39,845,794) 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 ($498,822), 2) to provide for inventories
($104,937), 3) to pay for debt service ($1,999,842), 4) to provide for municipal court building security
($153,244),5) to provide for municipal court technology ($62,703),6) to provide for park zone ($161,272), and
7) to provide for confiscated funds ($395,315), 8) to provide for animal control ($729), 9) to provide for judicial
fund ($5,745).
The actual fund balance increase for fiscal year 2008 was $90,379. This is because of increased revenue
collections and decreased expenditures. The 2007 Certificate of Obligation Fund balance decreased by
($3,079,664) due to expenditures of bond proceeds in the current fiscal year. The Grant Fund balance
increased by $874,466 due to the accrual of grant funds. The Capital Projects Fund balance increased by
$3,783,171 due to interfund transfers for construction of a municipal court building and Sylvan Beach
renourishment program. Other governmental fund balances decreased in 2008 by ($1,130,147) due to
decreased 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 - $2,046,959, Airport - $261,693, La Porte
Area Water Authority - $1,536,785, Sylvan Beach Convention Center - $182,729, and Bay Forest Golf Course-
($228,805). The change (decrease) in net assets of the proprietary funds in 2007 was as follows: Utility-
$5,026,252 , Airport - $1,135,620, La Porte Area Water Authority - $368,892, Sylvan Beach Convention Center -
$9,713, and Bay Forest Golf Course - ($31,440).
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 5% or $1,375,316. The
City increased its anticipated revenues by $2.0 million. This revenue included an upturn in industrial district
payments, sales tax and property tax.
Variances noted in the general fund are due to City Council appropriating additional capital projects, increased
spending for public safety projects, salary savings and anticipated lease of property.
CAPITAL ASSETS AND DEBT ADMINISTRA TlON
Capital Assets - The City of La Porte's investment in capital assets for its governmental and business-type
activities as of September 30,2008 amounts to $93,949,868 (net of accumulated depreciation). This investment
in capital assets includes land, building, equipment, improvements, infrastructure and construction in progress.
Major capital asset events during the current fiscal year included the following:
· Construction in progress Waste Water Treatment Plant improvements $2.8 million.
21
CITY OF LA PORTE, TEXAS
Management's Discussion and Analysis
For the Year Ended September 30, 2008
Capital Assets at Year-end
Net of Accumulated Depreciation
Land
Buildings
Equipment
Improvements
Infrastructure
Construction in Progress
Total
Governmental
Activities
2008
$ 8,108,756
19,080,887
4,501,469
2,768,649
14,619,115
2,052,990
$ 51,131,866
Business-type
Activities
2008
$ 2,308,777
314,869
154,145
33,456,152
6,584,059
$ 42,818,002
Total
$ 10,417,533
19,395,756
4,655,614
36,224,801
14,619,115
8,637,049
$ 93,949,868
Additional information of the City of La Porte's capital assets can be found in Note 4 on pages 57-59 of this
report.
Debt Administration - At the end of the current fiscal year, the City of La Porte had bonded debt payable of
$46,665,000. Of this amount, $39,330,000 comprises bonded debt backed by the full faith and credit of the
government and $7,335,000 represents bonds secured solely by water and sewer revenues.
Outstanding Debt at Year End
Bonds Payable
General Obligations
Revenue Bonds Payable
Certificate of Obligations
Total
Governmental
Activities
2008
$ 16,065,000
23,265,000
$ 39,330,000
Business-type
Activities
2008
$
5,235,000
2,100,000
$ 7,335,000
Totals
$ 16,065,000
5,235,000
25,365,000
$ 46,665,000
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 60-64 of this
report.
22
CITY OF LA PORTE, TEXAS
Management's Discussion and Analysis
For the Year Ended September 30, 2008
ECONOMIC FACTS AND NEXT YEAR'S BUDGETS AND RA TES
The unemployment rate for the Houston metropolitan area is currently 5.2 percent, which is an increase from a
rate of 4.4 percent a year ago. This compares identical to the state's average unemployment rate of 5.2 percent
which is less than the national average rate of 6.2 percent. During the upcoming year, the City will closely
monitor the volatility in the housing market. Although our area has not been adversely affected by home
foreclosures, we will observe economic changes due to the recession. Total assessed property value for all
residential and commercial property in the City of La Porte exceeded $1.9 billion for fiscal year 2008 which is 9
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. However, in the upcoming fiscal
year, we anticipate that residential and commercial values will remain flat. Sales tax receipts have grown 2%
this fiscal year due to an increase in economic activity. This revenue source is the most volatile and subject to
decline if an economic slowdown occurs.
Assessed Property Valuations
(in billions)
Sales Tax Collections
(in millions)
2
6
2.5
5
1.5
4
3
2
0.5
o
2004 2005 2006 2007 2008
o
2004
2005
2006
2007
2008
REQUEST FOR INFORMA TION
This financial report is designed to provide our citizens, customers and creditors a general overview of the City's
finances. Questions concerning any of the information provided in this report or requests for additional
information should be addressed to the Director of Finance, 604 West Fairmont Parkway, La Porte, Texas,
77571.
23
24
BASIC FINANCIAL STATEMENTS
25
26
CITY OF LA PORTE, TEXAS
Statement of Net Assets
Septem ber 30, 2008
Primary Government
Governmental Bus iness-type
Activities Activities Total
ASSETS
Cash and cash equivalents $ 36,604,620 $ 2,629,104 $ 39,233,724
Investrrents 16,142,823 2,172,464 18,315,287
Receivables, net of
allow ance for uncollectibles
Accounts receivable 1,523,815 1,532,759 3,056,574
Taxes receivable 1,667,441 1,667,441
DJe from other governrrents 3,653,722 3,653,722
Accrued interest receivable 49,128 7,184 56,312
Other 198,814 198,814
Internal Balances (2,641) 2,641
Materials and supplies inventories at cost 148,774 4,540 153,314
Deferred issuance costs 590,892 590,892
Restricted Assets:
Cash and cash equivalents restricted for:
Custorrer service deposits 542,949 542,949
Debt service 875,069 875,069
Capital assets:
Land 8,108,756 2,308,777 10,417,533
Buildings and illl>roverrents 30,801,244 1,166,840 31,968,084
inl>roverrents other than buildings 8,165,380 73,913,056 82,078,436
Infrastructure 31,677,569 31,677,569
Machinery and equiprrent 13,935,635 525,652 14,461,287
Construction in progress 2,052,990 6,584,059 8,637,049
Accumulated depreciation (43,609,709) (41,680,381) (85,290,090)
Total assets 111,709,253 50,584,713 162,293,966
LIABILITIES
Accounts payable 7,852,433 687,732 8,540,165
Accrued salaries payable 523,955 89,315 613,270
Unearned revenue 879 19,153 20,032
Other current liabilities 8,440 8,440
Interest payable 57,358 30,815 88,173
Custorrer deposits 534,573 534,573
f\bncurrent liabilities :
DJe within one year 1,844,000 922,500 2,766,500
DJe in rrore than one year 40,955,774 6,821,581 47,777,355
Total liabilities 51,234,399 9,114,109 60,348,508
NET ASSETS
Invested in capital assets, net of related debt 24,922,673 35,483,003 60,405,676
Restricted for:
Debt service 1,994,218 2,188,240 4,182,458
Economic developrrent 4,799,544 4,799,544
Capital illl>roverrents 7,293,582 7,293,582
Grants and state programs 2,479,622 2,479,622
Unrestricted 18,985,215 3,799,361 22,784,576
Total net assets $ 60,474,854 $ 41,470,604 $ 101,945,458
See accompanying notes to financial statements.
27
CITY OF LA PORTE, TEXAS
Statement of Activities
For The Year Ended September 30, 2008
Program Activities
Governmental activities:
General Government
Public Safety
Public Works
Health & Sanitation
Culture and recreation
I nterest on Long Term Debt
Total governmental activities
Expenses
Program Revenues
Fees, Fines and Operating
Charges for Grants and
Services Contributions
Capital
Grants and
Contributions
$10,056,369
16,267,453
4,348,281
2,465,327
4,004,206
1,694,638
38,836,274
$ 2,724,739 $ $
591,101 4,465,581
100,000
1,888,934 59,933
417,836 22,204
5,622,610 4,647,718
234,630
234,630
Business-type activities:
Water Services 6,630,986 6,132,716 860,388
Sewer Services 2,247,031 3,670,202
Airport 155,970 64,639 1,221,060
Golf Course 1,361,970 1,031,822 256,182
Sylvan Beach Convention Ctr 225,353 161,342
Total business-type activities 10,621,310 11,060,721 2,337,630
Total government $ 49,457,584 $ 16,683,331 $ 4,647,718 $ 2,572,260
General revenues:
Taxes:
Property taxes, levied for general purposes
Property taxes, levied for debt service
I ndustrial 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.
28
Net (Expenses) Revenues
and Changes in Net Assets
Governmental Business-type
Activities Activities Total
$ (7,331,630) $
(11,210,771)
(4,013,651)
(516,460)
(3,564,166)
(1,694,638)
(28,331,316)
$ (7,331,630)
(11,210,771)
(4,013,651 )
(516,460)
(3,564,166)
(1,694,638)
(28,331,316)
362,118 362,118
1,423,171 1,423,171
1,129,729 1,129,729
(73,966) (73,966)
(64,011) (64,011)
2,777,041 2,777,041
$ (28,331,316) $ 2,777,041 $ (25,554,275)
11,802,564 11,802,564
1,880,095 1,880,095
7,958,522 7,958,522
2,165,343 2,165,343
5,803,077 5,803,077
1,782,572 199,060 1,981,632
115,351 115,351
(3,532,936) 3,532,936
27,974,588 3,731,996 31,706,584
(356,728) 6,509,037 6,152,309
60,831,582 34,961,567 95,793,149
$ 60,474,854 $ 41,470,604 $ 101,945,458
29
CITY OF LA PORTE, TEXAS
Balance Sheet
Governmental Funds
September 30, 2008
2007 Certificates
of Obligation
General Bonds Grant
ASSETS
Cash and cash equivalents $ 12,511,439 $ 567,555 $ 815,807
Investments 2,363,294 5,101,662 153,926
Receivables, net of allowance for
uncollectibles:
Accounts 1,523,815
Taxes 1,255,339
Intergovernmental 3,653,722
Accrued interest 17,168 777 1,049
Due from other funds 1,080,842
Materials and supplies inventories, at cost 104,938
Total assets 18,856,835 5,669,994 4,624,504
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable 2,883,845 635,876 1,886,975
Accrued salaries payable 497,843 102
Due to other funds 1,110,437
Retainage payable 65,002 5,096
Deferred revenue 1,527,166
Total liabilities 4,908,854 700,878 3,002,610
Fund balances:
Reserved for:
Inventories 104,937
Encumbrances 255,790 32,141
Animal control 729
Judicial fund 5,745
Municipal Court Building Security 153,244
Municipal Court Technology Fee 62,703
Park Zone 161,272
Confiscated funds 395,315
Debt service
Unreserved, Designated for capital projects 38,084
U nreserved/Undesignated 13,549,170 4,969,116 810,745
Unreserved, reported in nonmajor:
Special revenue funds
Capital projects funds
Total fund balances 13,947,981 4,969,116 1,621,894
Total liabilities and fund balances $ 18,856,835 $ 5,669,994 $4,624,504
See accompanying notes to basic financial statements.
30
Other Total
Capital Governmental Governmental
Projects Funds Funds
$ 5,489,074 $ 10,992,521 $ 30,376,396
1,036,737 6,312,578 14,968,197
1,523,815
412,102 1,667,441
3,653,722
7,628 14,086 40,708
615,026 1,695,868
104,938
6,533,439 18,346,313 54,031,085
786,008 667,798 6,860,502
5,321 503,266
615,026 1,725,463
26,616 37,837 134,551
51,734 1,578,900
812,624 1,377,716 10,802,682
104,937
210,891 498,822
729
5,745
153,244
62,703
161,272
395,315
1,999,842 1,999,842
38,084
5,720,815 25,049,846
5,514,344 5,514,344
9,243,520 9,243,520
5,720,815 16,968,597 43,228,403
$ 6,533,439 $ 18,346,313 $ 54,031,085
31
32
CITY OF LA PORTE, TEXAS
Reconciliation of the Governmental Funds
Balance Sheet to Statement of Net Assets
September 30, 2008
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
Arbitrage Allowance
Net assets of governmental activities
See accompanying notes to basic financial statements.
33
$ 43,228,403
47,591,987
1,578,900
(57,358)
10,240,543
(39,330,000)
(314,013)
(2,750,026)
590,892
(304,474)
$ 60,474,854
34
Other Total
Capital Governmental Governmental
Projects Funds Funds
$ $ 2,202,876 $ 14,132,768
2,165,343
2,280,107 5,320,255
198,875 7,958,522
401,920 482,822
559,803
1,726,433
39,739 3,958,189
334,630 4,755,080
90,454 865,528 1,883,095
40,168 90,409
130,193 6,324,104 43,032,719
738,517 8,418,445
216,813 15,609,623
2,908,970
147,526 2,478,846
3,470,123
1,655,000 1,655,000
1,724,468 1,757,889
1 ,105,767 2,152,440 6,351,166
1,105,767 6,634,764 42,650,062
(975,574) (310,660) 382,657
4,758,745 2,437,215 7,625,287
(3,256,702) (7,501,259)
31,518
4,758,745 (819,487) 155,546
3,783,171 (1,130,147) 538,203
1,937,644 18,098,744 42,690,200
$ 5,720,815 $ 16,968,597 $ 43,228,403
35
36
CITY OF LA PORTE, TEXAS
Reconciliation of the Statement of Revenues, Expenditures and
Changes in Fund Balances of Governmental Funds to the
Statement of Activities
For The Year Ended September 30, 2008
Amounts reported for governmental activities in the statement of activities are
different because:
Net change in fund balances-total governmental funds:
Governmental funds report outlays for capital assets as expenditures because
such outlays use current financial resources. In contrast, the statement of
activities reports only a portion of the outlay as expense. The outlay is allocated
over the assets' estimated useful lives as depreciation expense for the period.
This is the amount by which governmental activity capital outlays $2,964,705
exceeded depreciation $2,872,702 and losses of $33,421 from the disposition
of capital assets in the current period.
Water and sewer capital assets were constructed in a governmental fund in the
amount of $4,482,977. The capital asset was reported as governmental activities
construction in progress in the prior year in the amount of $1,192,475
and transferred from governmental capital assets to business-type
activities in the current year statement of activities.
Governmental funds do not present revenues that are not available to pay
current obligations. In contrast, such revenues are reported in the statement
of activities when earned.
Governmental funds report bond proceeds as current financial resources. In
contrast, the statement of activities treats such issuance of debt as a liability.
Governmental funds report repayment of bond principal as an expenditure. In
contrast, the statement of activities treats such repayments as a reduction in
long-term liabilities. This is the amount by which proceeds exceeded
repayments.
Some expenses reported in the statement of activities do not require the use of
current financial resources and these are not reported as expenditures in
governmental funds:
Accrued interest not reflected in governmental funds
Additional compensated absences not reflected in governmental funds
Amortization of bond issuance costs
Amortization of premium on bonds
Arbitrage allowance
Internal service funds are used by management to charge the costs of certain
activities, such as fleet maintenance and information technology, to individual
funds. The net revenue (expense) of the internal service funds is reported with
governmental activities.
Change in net assets of governmental activities
See accompanying notes to basic financial statements.
37
$ 538,203
58,582
(1,192,475)
(944,656)
1,655,000
20,707
(87,647)
30,535
12,009
(304,474)
(142,512)
$ (356,728)
CITY OF LA PORTE, TEXAS
Statement of Net Assets
Proprietary Funds
September 30, 2008
Business-type Activities -
Enterprise Funds
La Porte Area Other
Utility Water Authority Funds
ASSETS
Current assets:
Cash and cash equivalents $ 1,886,972 $ 403,416 $ 338,716
Investments 1,073,867 977,015 121,582
Receivables, net of
allowance for uncollectibles 1,206,068 299,443 27,248
Accrued interest receivable 4,166 2,439 579
Due from other funds 35,951 4,238
Miscellaneous receivables
Material and supplies inventories, at cost 4,540
Restricted cash and cash equivalents for:
Customer service deposits 497,088 45,861
Cash restricted for:
Current debt service 125,000 750,069
Total current assets 4,833,652 2,432,382 538,224
Noncurrent assets:
Capital assets:
Land 224,308 2,084,469
Buildings and improvements 51,730 1 ,115,110
Improvements other than buildings 50,333,989 15,306,000 8,273,067
Vehicles and equipment 428,392 6,130 91,130
Construction in progress 6,292,972 291,087
Less accumulated depreciation (29,958,870) (6,314,535) (5,406,976)
Total noncurrent assets 27,372,521 8,997,595 6,447,887
Total assets 32,206,173 11,429,977 6,986,111
LIABILITIES
Current liabilities:
Accounts payable 501,920 134,712 51,100
Accrued salaries payable 64,084 25,231
Due to other funds 37,548
Unearned revenue 19,153
Other current liabilities 8,440
Accrued interest payable 19,999 10,816
Accrued separation pay 30,000
Payable from restricted assets:
Current portion of revenue bonds 387,500 505,000
Customer deposits 497,088 37,485
Total current liabilities 1,500,591 650,528 178,957
Noncurrent liabilities:
Revenue bonds, net of current portion 1,837,500 4,605,000
Accrued separation pay 235,431 143,650
Total noncurrent liabilities 2,072,931 4,605,000 143,650
Total liabilities 3,573,522 5,255,528 322,607
NET ASSETS
Invested in capital assets, net of related debt 25,147,521 3,887,595 6,447,887
Restricted for debt service 1,438,171 750,069
Unrestricted (deficit) 2,046,959 1,536,785 215,617
Total net assets $ 28,632,651 $ 6,174,449 $ 6,663,504
See accompanying notes to basic financial statements.
38
Governmental
Activities -
Internal
Totals Service Funds
$ 2,629,104 $ 6,228,224
2,172,464 1,174,626
1,532,759
7,184 8,420
40,189 26,954
198,814
4,540 43,836
542,949
875,069
7,804,258 7,680,874
2,308,777
1,166,840
73,913,056
525,652 11,823,210
6,584,059
(41,680,381) (8,283,332)
42,818,003 3,539,878
50,622,261 11,220,752
687,732 857,380
89,315 20,689
37,548
19,153 879
8,440
30,815
30,000
892,500
534,573
2,330,076 878,948
6,442,500
379,081 101,261
6,821,581 101,261
9,151,657 980,209
35,483,003 3,539,878
2,188,240
3,799,361 6,700,665
$ 41,470,604 $ 10,240,543
39
CITY OF LA PORTE, TEXAS
Statement of Revenues, Expenses and Changes in Fund Net Assets
Proprietary Funds
For The Year Ended September 30, 2008
Business-type Activities-
Enterprise Funds
La Porte Area Other
Utility Water Authority Funds
Operating revenues:
User fees $ 8,816,946 $ 985,972 $1,257,803
Operating expenses:
Personal services 2,587,510 1,018,050
Supplies 224,821 46 188,890
Other services and charges 2,841,166 769,756 248,203
Depreciation 1,558,261 451,689 288,150
Total operating expenses 7,211,758 1,221,491 1,743,293
Operating income (loss) 1,605,188 (235,519) (485,490)
Nonoperating revenues (expenses):
Interest income 99,831 77,870 21,359
Interest expense and fiscal charges (172,399) (272,369)
Gain (loss) on sale of equipment
Total nonoperating revenue (expenses) (72,568) (194,499) 21,359
Income (loss) before contributions
and transfers 1,532,620 (430,018) (464,131)
Capital contributions 860,388 1,477,242
Transfers in 4,529,001 134,499
Transfers out (1,035,369) (61,478) (33,717)
Change in net assets 5,026,252 368,892 1,113,893
Total net assets-beginning 23,606,399 5,805,557 5,549,611
Total net assets-ending $ 28,632,651 $ 6,174,449 $ 6,663,504
See accompanying notes to basic financial statements.
40
Governmental
Activities -
Internal
Totals Service Funds
$ 11,060,721 $ 7,027,371
3,605,560 1,362,633
413,757 558,978
3,859,125 5,529,610
2,298,100 775,471
10,176,542 8,226,692
884,179 (1,199,321 )
199,060 203,954
(444,768)
26,842
(245,708) 230,796
638,471 (968,525)
2,337,630
4,663,500 848,534
(1,130,564) (22,521 )
6,509,037 (142,512)
34,961,567 10,383,055
$ 41,470,604 $ 10,240,543
41
CITY OF LA PORTE, TEXAS
Statement of Cash Flows
Proprietary Funds
For The Year Ended September 30, 2008
Business-type Activities -
Enterprise Funds
La Porte Area Other
Utility Water Authority Funds
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from user fees $ 8,370,578 $ 845,744 $ 1,181,800
Cash payments to suppliers (3,072,506) (635,195) (365,881 )
Cash payments for personal services (2,540,071) (1,026,911 )
Net cash provided (used) by operating activities 2,758,001 210,549 (210,992)
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
Transfers from other funds 46,024 134,499
Transfers to other funds (1,035,369) (61,478) (33,717)
Net cash provided (used) by noncapital financing activies (989,345) (61,478) 100,782
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES
Payments received from participants for debt service 758,532
Payments received from participants for capital recovery 101,856
Payments for capital acquisitions (880,456) (586,560)
Proceeds from sale of assets
Principal payments on revenue bonds (387,500) (485,000)
Interest paid on debt (172,732) (273,531)
Net cash provided (used) by capital
and related financing activies (1,440,688) (484,703)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest on investments 112,857 88,014 23,898
Net Investments purchased (930,171) (432,738) (149,975)
Net Investments sold 716,813 11,207 212,775
Net cash provided by investing activities (100,501 ) (333,517) 86,698
Net increase in cash and cash equivalents 227,467 (669,149) (23,512)
Balances-beginning of the year 2,156,593 1,072,565 408,089
Balances-end of the year $ 2,384,060 $ 403,416 $ 384,577
Reconciliation of operating loss to net cash
provided (used) by operating activities:
Operating loss $ 1,605,188 $ (235,519) $ (485,490)
Adjustments to reconcile operating income to net cash
provided (used) by operating activities:
Depreciation expense 1,558,261 451,689 288,150
(Increase) decrease in accounts receivable (438,134) (140,228) (22,750)
(Increase) decrease in due from other funds (35,951) (4,238)
(Increase) decrease in inventories
(Increase) decrease in prepaid expenses 149,580
Increase (decrease) in accrued salaries payable 22,171 7,169
Increase (decrease) in accounts payable (6,519) (14,973) 32,832
Increase (decrease) in other current liabilities (28,798)
Increase (decrease) in due to other funds 37,548
Increase (decrease) in customer utility deposits 27,746 (19,385)
Increase (decrease) in accrued employee separation 25,239 (16,030)
Total adjustments 1,152,813 446,068 274,498
Net cash provided (used) by operating activities $ 2,758,001 $ 210,549 $ (210,992)
Reconciliation of total cash and cash investments:
Current Assets - cash and cash equivalents $ 1,886,972 $ 403,416 $ 338,716
Restricted Assets - cash and cash equivalents:
Customer deposits 497,088 45,861
Total cash and cash equivalents $ 2,384,060 $ 403,416 $ 384,577
Noncash investing, capital and financing activities:
Increase (decrease) in fair value of assets $ (1,119) $ (521) $ (181)
~ee accompanYing notes to baSIC finanCial statements.
42
Governmental
Activities -
Internal
Totals Service Funds
$ 10,398,122 $ 6,805,457
(4,073,582) (5,879,957)
(3,566,982) (1,394,763)
2,757,558 (469,263)
180,523 848,534
(1,130,564) (22,521 )
(950,041 ) 826,013
758,532
101,856
(1,467,016) (361,085)
74,115
(872,500)
(446,263)
(1,925,391) (286,970)
224,769 233,130
(1,512,884) (2,326,507)
940,795 3,549,631
(347,320) 1,456,254
(465,194) 1,526,034
3,637,247 4,702,190
$ 3,172,053 $ 6,228,224
$ 884,179 $ (1,199,321)
2,298,100 775,471
(601,112) (197,342)
(40,189) (23,757)
(2,430)
149,580
29,340 2,708
11,340 211,059
(28,798) (815)
37,548
8,361
9,209 (34,836)
1,873,379 730,058
$ 2,757,558 $ (469,263)
$ 2,629,104 $ 6,228,224
542,949
$ 3,172,053 $ 6,228,224
$ (1,821) $ (2,800)
43
44
CITY OF LA PORTE, TEXAS
Notes to the Financial Statements
September 30,2008
1. Summary of significant accounting policies
A. General Statement
The City of La Porte, Texas (the "City"), was incorporated on August 10, 1892, and operates under a
"Council - Manager" form of government and provides the following services as authorized by its charter:
public safety, development services, public health and welfare, culture and recreation and waterworks.
The accounting and reporting policies of the City relating to the funds included in the accompanying basic
financial statements conform to U.S. Generally Accepted Accounting Principles (GAAP) applicable to state
and local governments which include those principles prescribed by the Governmental Accounting
Standards Board (GASB), the American Institute of Certified Public Accountants and the Financial
Accounting Standards Board. The more significant accounting policies of the City are described below.
B. Financial Reoortina Entitv
The City's basic financial statements include the accounts of all City operations. The City, with its elected
governing body of mayor and eight council members, is considered a primary government. As required by
generally accepted accounting principles, the basic financial statements include the City and its component
units, entities for which the government is considered to be financially accountable. Blended component
units, although legally separate entities, are, in substance, part of the government's operations. All
component units have been included as blended component units because of the significance of their
operational and financial relationships with the City.
The La Porte Area Water Authority (the "Authority") is governed by a five-member board appointed by the
City Council. Although it is a legally separate entity, the Authority provides services almost exclusively for
the City's water operations, and is in substance a part of the City's primary operations. The Authority was
created by the City to finance the operations involved in obtaining surface water supplies and converting
these supplies to potable water. This water is sold primarily to the City of La Porte (86%) with the remainder
being sold to other neighboring political subdivisions. The operations of the Authority are reported as a
proprietary fund type.
The Tax Increment Reinvestment Zone One (the "Zone") is governed by a nine-member board appointed by
the City Council. The Zone provides benefits exclusively for the City through reinvestment financing of ad
valorem taxes, which are utilized for capital improvements for the City of La Porte. The Zone is presented
as a governmental fund type.
The Section 4B Sales Tax corporation provides services that exclusively benefit the City of La Porte and is
governed by a seven-member board appointed by City Council. The Section 4B Sales Tax Corporation is
presented as a governmental fund type.
Complete financial statements for each of the individual component units may be obtained through the City
of La Porte.
C. Basis of Presentation
Government Wide Statements:
The government-wide financial statements (Le. the statement of net assets and the statement activities)
report information on all of the nonfiduciary activities of the City, including the component units. 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, 2008
1. Summary of significant accounting policies - Continued
The statement of activities demonstrates the degree to which the direct expenses of a given program or
function is offset by program revenues. Direct expenses are those that are clearly identifiable with a specific
program or function. Program revenues include 1) charges to customers or applicants who purchase, use
or directly benefit from goods, services or privileges provided by a given program or function and 2)
operating or capital grants and contributions that are restricted to meeting the operational or capital
requirements of a particular program or function. Taxes and other items not properly included among
program revenues are reported instead as general revenues.
The accounts of the City are organized on the basis of funds each of which is considered a separate
accounting entity. The operations of each fund are accounted for with a separate set of self-balancing
accounts that comprise its assets, liabilities, fund equity, revenues and expenditures or expenses, as
appropriate. Government resources are allocated to and accounted for in individual funds based on the
purposes for which they are to be spent and the means by which spending activities are controlled.
Individual funds 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) 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.
(c) Capital Improvements Fund- This fund is used to account for capital projects that are normally small
in nature and generally effect the general operation of the city.
(d) 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.
46
CITY OF LA PORTE, TEXAS
Notes to the Financial Statements
September 30,2008
1. Summary of significant accounting policies - Continued
Proprietary Funds are accounted for using the economic resources measurement focus and the accrual
basis of accounting. The accounting objectives are determinations of net income, financial position and
cash flow. All assets and liabilities are included on the Statement of Net Assets. Proprietary funds
distinguish operating revenues and expenses from non-operating items. Operating revenues and expenses
generally result from providing services and producing and delivering goods in connection with a proprietary
fund's principal ongoing operations. Operating expenses for the proprietary funds include the cost of
personal and contractual services, supplies and depreciation on capital assets. All revenues and expenses
not meeting this definition are reported as non-operating revenues and expenses.
The City reports the following major proprietary funds:
(a) Utility Fund - is used to account for the provision of water and sewer services to the residents of the
City. All activities necessary to provide such services are accounted for in this fund, including, but
not limited to administration, operations and maintenance of the water and sewer system and billing
and collection activities. The fund also accounts for the accumulation of resources for, and the
payment of, long-term debt principal and interest for water and sewer debt. All costs are financed
through charges to utility customers with rates reviewed regularly and adjusted if necessary to
ensure integrity of the fund.
(b) La Porte Area Water Authority Fund - is used to account for revenues and expenses related to
obtaining raw surface water and converting it to potable water to be sold to La Porte and
neighboring cities.
Additionally, the City reports the Internal Service Funds which are used to account for the Motor Pool,
Technology and Insurance services provided to other departments of the City on a cost reimbursement
basis.
D. Measurement Focus and Basis of AccountinQ
Measurement focus refers to what is being measured; basis of accounting refers to when revenues and
expenditures are recognized in the accounts and reported in the financial statements. Basis of accounting
relates to the timing of the measurement made, regardless of the measurement focus applied.
The government-wide financial statements and fund financial statements for proprietary funds are reported
using the economic resources measurement focus and the accrual basis of accounting. The economic
resources measurement focus means all assets and liabilities (whether current or non-current) are included
on the statement of net assets. The operating statements present increases (revenues) and decreases
(expenses) in net total assets. Under the accrual basis of accounting, revenues are recognized when they
are earned. Expenses are recognized at the time the liability is incurred. Unbilled water and wastewater
utility service receivables are accrued as revenues and reflected in the financial statements.
Private sector standards of accounting and financial reporting issued prior to December 1, 1989, generally
are followed in both the government wide and proprietary fund financial statements to the extent that those
standards do not conflict with or contradict guidance of the Governmental Accounting Standards Board. The
city has the option of following subsequent private sector guidance for business type activities and
enterprise funds, subject to this same limitation. The city has elected not to follow subsequent private sector
guidance.
47
CITY OF LA PORTE, TEXAS
Notes to the Financial Statements
September 30, 2008
1. Summary of significant accounting policies - Continued
Governmental fund financial statements are reported using the current financial resources measurement
focus and are accounted for using the modified accrual basis of accounting. Under the modified accrual
basis of accounting, revenues are recognized when susceptible to accrual; Le., when they become both
measurable and available. "Measurable" means the amount of the transaction can be determined and
"available" means collectible within the current period or soon enough thereafter to be used to pay liabilities
of the current period. For this purpose, the government considers revenues to be available if they are
collected within 60 days of the current fiscal period.
Most revenue sources are recorded as revenues when received in cash because they are generally not
measurable until actually received. The revenues susceptible to accrual are property and sales taxes,
franchise fees, interest income and intergovernmental revenues. A one-year availability period is used for
recognition of all other Govemmental Fund revenues. Expenditures are recorded when the related fund
liability is incurred. However, debt service expenditures, as well as expenditures related to compensated
absences are recorded only when payment is due.
E. Budqetarv Information
Annual budgets are adopted on a basis consistent with generally accepted accounting principles. Annual
appropriated budgets are adopted for the general, special revenue funds and debt service funds. All annual
appropriations lapse at fiscal year-end. Project length financial plans are adopted for all capital projects
funds and are revised annually.
The City uses the following procedures in establishing the budgets reflected in the financial statements:
1. Prior to August, the City Manager submits to the City Council a proposed operating budget for the fiscal
year commencing on the following October 1. The operating budget includes proposed expenditures
and the means of financing them.
2. A public hearing is conducted to obtain taxpayer comments.
3. Prior to September 30, the budget is legally enacted through passage of an ordinance.
4. The City Manager must approve changes within a fund, which is the legal level of control. City Council
approves changes between departments as well as amendments to the budget during the year as may
be required.
5. Formal budgetary integration is employed as a management control device during the year for the
General Fund and Proprietary Funds. Formal budgetary integration is not employed for the Debt
Service Fund and Capital Projects Funds because effective budgetary control is alternatively achieved
through bond indenture provisions and legally binding construction contracts, respectively.
6. The budget for the General Fund and Special Revenue Funds are adopted on a basis consistent with
GAAP. Budgets for the Proprietary Funds are utilized for planning, control and evaluation purposes.
They are adopted on a basis consistent with GAAP except that bond principal payments and capital
asset acquisitions are treated as expenditures.
7. Budgeted amounts are amended by the City Council during the year. Individual amendments were not
material in relation to the original appropriations, which were amended.
Encumbrances represent commitments related to unperformed contracts for goods or services.
Encumbrance accounting - under which purchase orders, contracts and other commitments for the
expenditure of resources are recorded to reserve that portion of the applicable appropriation - is utilized in
the governmental funds throughout the year. Encumbered amounts lapse at year-end. However,
encumbrances generally are reappropriated as part of the following year's budget.
48
CITY OF LA PORTE, TEXAS
Notes to the Financial Statements
September 30, 2008
1. Summary of significant accounting policies - Continued
F. Cash and Investments
Cash includes amounts in demand deposits, short-term investments, which mature within ninety days of the
fiscal year end, and various petty cash funds. The short-term investments are stated at cost or amortized
cost, which approximate fair value. The short-term investments consist of U.S. Treasury Bills and deposits
in the Texas Local Govemment 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:
Fund Taxes Interest Other Accounts Total
General $ 1,857,871 $ 17,168 $ $ 2,009,061 $3,884,100
2007 C.O. 777 777
Grant 1,049 1,049
Capital Projects 7,628 7,628
Nonmajor governmental 543,016 14,086 557,102
Utility 4,166 1,245,092 1,249,258
La Porte Area
Water Authority 2,439 299,443 301,882
Nonmajor enterprise 579 27,248 27,827
Intemal service funds 8,420 198,814 207,234
Gross Receivables 2,400,887 56,312 198,814 3,580,844 6,236,857
Less: allowance for
uncollectibles (733,446) (524,270) (1,257,716)
Net total receivables $1,667,441 $ 56,312 $198,814 $ 3,056,574 $4,979,141
49
CITY OF LA PORTE, TEXAS
Notes to the Financial Statements
September 30, 2008
1. Summary of significant accounting policies - Continued
Governmental funds reported unearned revenue in connection with receivables for revenues that are not
considered to be available to liquidate liabilities of the current period. Revenue recognition is also deferred
in connection with resources that have been received, but not yet earned in the proprietary funds. At the
end of the current fiscal year, the various components of deferred revenue and unearned revenue reported
in the governmental and proprietary funds were as follows:
Unavailable Unearned
Nonmajor Nonmajor Internal
General Governmental Enterprise Service Total
$ 334,501 $ 51,734 $ $ $ 386,235
61,091 61,091
727,869 727,869
269,598 269,598
134,107 19,153 879 153,260
$ 1,527,166 $ 51 ,734 $ 19,153 $ 879 $ 1,598,053
Delinquent property taxes receivable
Court fines
Emergency medical services
Mowing and demolition services
Miscellanous
Total deferred I 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 nonroutine 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 30,2008
N. Capital Assets
1. Summary of significant accounting policies - Continued
Capital assets, which include property, plant, equipment and infrastructure assets, are reported in the
applicable governmental or business-type activities columns in the government-wide financial statements
and in the fund financial statements for proprietary funds. Capital assets are defined by the government as
assets with an initial unit cost of $5,000 or more and an estimated useful life exceeding two years. Such
assets are recorded at historical cost or estimated historical cost if actual historical cost is not available.
Donated capital assets are recorded at their fair market value on the date donated. Repairs and
maintenance that do not add to the value of the asset or extend assets lives are recorded as expenses.
Interest cost during construction is capitalized when the effect of capitalization materially impact the financial
statements. During the year ended September 30, 2008, 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
O. Compensated Absences
20 years
20 - 40 years
20 - 30 years
4 -10 years
20 years
The City's employees earn vacation and sick leave, which may either be taken or accumulated, up to certain
amounts, until paid upon termination or retirement. For all funds, this liability reflects amounts attributable to
cumulative employee services already rendered, where the payment is probable and can be reasonably
estimated. The current and long-term portions of the governmental fund type liabilities are recorded in the
Government-Wide Statement of Net Assets. The proprietary fund type liability is recorded as a liability in the
individual proprietary funds since payment of this liability will be made from resources of these funds. Also,
for the governmental activities, compensated absences are generally liquidated by the general fund.
Policies relating to the accrual and payment of these benefits are as follows:
· Vacation - Employees earn from 10 to 25 days of vacation per year. Upon separation, employees
are paid for all accumulated vacation leave (up to one and one half times their annual accrual rate).
· Sick Leave - Full time 8 hour employees accrue 3.70 hours per pay period. Full time 24 hour
employees accrue 5.91 hours per pay period and civil service employees accrue 15 days per
calendar year. The maximum sick leave time which may be accumulated by any employee shall be
90 days for regular full time employees. For 24 hour shift personnel, the maximum accrual is 1,152
hours. Civil service employees may accrue unlimited sick leave.
The liability for compensated absences at September 30, 2008 is comprised of the following:
Vacation
Sick Leave
Total All Funds
Governmental
$ 902,082
1,949,205
$ 2,851,287
51
Business Type
$ 164,846
244,235
$ 409,081
Total
$1,066,928
2,193,440
$ 3,260,368
CITY OF LA PORTE, TEXAS
Notes to the Financial Statements
September 30, 2008
1. Summary of significant accounting policies - Continued
P. Lona-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 Eauivalents
The City reports cash and cash equivalents in the City's statement of cash flows for Proprietary Fund Types
and in all other financial statements of financial position. The City considers cash and cash equivalents to be
cash on hand, demand deposits, certificates of deposit, balances in privately managed public funds
investment pools and money market mutual funds.
Investments
Investments consist of balances in privately managed public funds investment pools, money market mutual
funds and investments in United States (US) Agency securities. The City reports all investments at fair value
based on quoted market prices at year-end date.
The Texas Public Funds Investment Act (PFIA), as prescribed in Chapter 2256 of the Texas Government
Code, regulates deposits and investment transactions of the City.
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, 2008
2. Cash, Cash Equivalents and Investments - Continued
safekeeping receipts to the City. In accordance with Texas statutes, the safekeeping receipts are in the
name of the depository with proper indication of pledge of the collateral securities by the depository to
secure funds of the City. The City must approve all collateral securities pledged and also must approve in
writing any changes to the pledged collateral securities.
The City has adopted a written investment policy regarding the investment of its funds as defined by the PFIA.
The PFIA also requires the City to have independent auditors perform test procedures related to investment
practices as provided by the Act. The City complies with the requirements of the Act and with local policies.
The City's investment policy permits investment of City funds in only the following investment types,
consistent with the strategies and maturities defined in the policy:
~ Obligations of the U.S., its agencies and instrumentalities.
~ Direct obligations of the State of Texas or its agencies.
~ Collateralized mortgage obligations directly issued by a federal agency or instrumentality of the United
States, the underlying security for which is guaranteed by an agency or instrumentality of the United
States.
~ Other obligations, the principal and interest on which are unconditionally guaranteed or insured by, or
backed by full faith and credit of the State of Texas or the United States or their agencies and
instrumentalities.
~ Obligations of states, agencies, counties, cities and other political subdivisions of any state having been
rated as to the investment quality by a nationally recognized investment firm and having received a
rating of not less than A or its equivalent.
~ Certificates of Deposit issued by state and national banks or savings and on associations domiciled in
this state that are:
a. guaranteed or insured by the Federal Deposit Insurance Corporation; or
b. secured by obligations that are described in 1-5 above, which are intended to include all direct
federal agency or instrumentality issued mortgage backed securities that have a market value of not
less than the principal amount of the certificates or in any other manner and amount provided by law
for deposit of the investing entities.
~ Certificates of Deposit and share certificates issued by a state or federal credit union domiciled in the
State of Texas that are guaranteed or insured by the Federal Deposit Insurance Corporation or the
National Credit Union Share Insurance Fund, or are secured as to principal by obligations described in 1
through 5 above in any other manner and amount provided by law for the City deposits.
~ Fully collateralized repurchase agreements having a defined termination date, secured by obligations of
the United States, its agencies or instrumentalities, pledged with a third party selected or approved by
the political entity, and placed through a primary government securities dealer, as by the Federal
Reserve or through a financial institution domiciled in the State of Texas.
~ Prime domestic banker's acceptances, defined as a banker's acceptance with a remaining term of 270
days or less, if the short-term obligations of the accepting bank or its parent are rated at least "A-1" or
"P-1" or equivalent by at least one nationally recognized credit rating agency.
~ Commercial paper that is rated at least "A-1" or "P-1" or the equivalent by either (a) two nationally
recognized credit agencies or (b) one nationally recognized credit rating agency if the paper is fully
secured by an irrevocable letter of credit issued by a U.S. or State bank.
^' SEC-registered no-load money market mutual fund (MMMF), with a dollar weighted average portfolio
maturity of 90 days or less, includes in their investment objectives the maintenance of a stable net asset
value of $1 for each share.
~ SEC-registered, no-load money market mutual funds (MMMF) that have an average weighted maturity
of less than two years, invests exclusively in obligations described above and are continuously rated as
to investment quality by at least one nationally recognized investment rating firm of no less than "AAA"
or its equivalent.
~ Authorized government investment pools that invest solely in obligations of any of the above
investments provided that the pools are rated no lower than "Aaa" or "AAA" or an equivalent by at least
one nationally recognized rating service.
53
CITY OF LA PORTE, TEXAS
Notes to the Financial Statements
September 30, 2008
2. Cash, Cash Equivalents and Investments - Continued
Deposit and Investment Amounts
At year-end, the City recorded cash on hand, demand deposits, certificates of deposit, balances in
privately managed public funds investment pools, money market mutual funds, and investments stated
at fair value of $58,967,029.
The following schedule shows the City's recorded cash and investments at year-end:
Cash
Bank
Deposits Pooled Funds Investments Total
General $ 597,197 $11,905,104 $ 2,363,294 $14,865,595
Debt Service 80,252 1,600,311 317,085 1,997,648
Capital Projects 455,092 18,628,301 1,799,677 20,883,070
Special Revenue Funds 613,523 5,829,954 1,154,804 7,598,281
Total Governmental Funds 1,746,064 37,963,670 5,634,860 45,344,594
Internal Service Funds 297,396 5,930,827 1,174,626 7,402,849
Total Governmental Activities 2,043,460 43,894,497 6,809,486 52,747,443
Enterprise 250,820 3,796,302 2,172,464 6,219,586
Total $ 2,294,279 $ 47,690,800 $ 8,981,950 $ 58,967,029
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\testments
Total in\testment income
$ 1,966,995
(18,050)
$ 1,948,945
I nvestment 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
47,690,800
8,981,950
56,672,750
54
CITY OF LA PORTE, TEXAS
Notes to the Financial Statements
September 30, 2008
2. Cash, Cash Equivalents and Investments - Continued
Interest Rate Risk
At year-end, the City had the following investments subject to interest rate risk disclosure, under u.S.
generally accepted accounting principles, by investment type:
Federal Home Loan Bank (FHLB)
Federal Home Loan Mortgage Corporation (FHLMC)
Federal National Mortgage Association (FNMA)
Fair
Value
$5,987,520
1,999,120
995,310
Weighted Average
Maturity (Months)
8.07
4.23
2.02
Total fair value
$8,981,950
Portfolio weighted awrage maturity
14.32
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
$ 8,981,950
47,690,800
$ 56,672,750
Percentage
of Total
Portfolio
16%
84%
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 A1 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, 2008
3. Property tax
The appraisal of property within the City is the responsibility of the Harris County Appraisal District (the
"Appraisal District"). The Appraisal District is required under the Property Tax Code to appraise all property
within the county on the basis of 100% of its market value. The value of real property within the Appraisal
District must be reviewed every five years; however, the City may, at its own expense, require annual
reviews of appraised values. The City may challenge appraised values established by the Appraisal District
through various appeals and, if necessary, take legal action. Under this legislation, the City continues to set
tax rates on City property. However, if the effective tax rate, excluding tax rates for repayment of general
obligation bonds and other contractual obligations, adjusted for new improvements, exceeds the rate for the
previous year by more than 8 percent, qualified voters of the City may petition for an election to determine
whether to limit the tax rate to no more than 8 percent above the effective tax rate.
The City's property taxes are levied annually in October on the basis of the Appraisal District's assessed
values as of January 1 of that calendar year. Appraised values are established by the Appraisal District at
market value, assessed at 100% of appraised value and certified by the Harris County Appraisal District
Board of Review. The City's property taxes are billed and collected by the City's Tax Assessor/Collector.
Such taxes are applicable to the fiscal year in which they are levied and become delinquent with an
enforceable lien on property on January 1 of the current calendar year.
The City is permitted, by Article XI, Section 5, of the State of Texas Constitution and the City Charter, to levy
property taxes up to $2.50 per $100 of assessed valuation for general governmental services. Within the
$2.50 maximum levy, there is no legal limit upon the amount of property taxes, which can be levied for debt
service. The property tax rates to finance general governmental services and debt service for the 2006-07
tax year were $0.612 and $0.098, respectively, per $100 of assessed valuation. The 2008 assessed value
and total tax levy as adjusted through September 30, 2008 were $1,950,489,769 and $13,857,467
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, 2008
4. Capital Assets
Capital asset activity for the year ended September 30, 2008 was as follows:
Beginning Ending
Balance Retirements & Balance
10/01/07 Additions Adjustments 09/30/08
Governmental activities:
Capital assets, not being depreciated:
Land $ 7,925,969 $ $ 182,787 $ 8,108,756
Construction in progress 18,558,413 781,311 (17,286,734) 2,052,990
Total capital assets, not being depreciated 26,484,382 781,311 (17,103,947) 10,161,746
Capital assets, being depreciated:
Buildings and improvements 18,187,994 178,134 12,435,116 30,801,244
Improvements other than buildings 7,649,693 452,594 63,093 8,165,380
I nfrastructu re 26,957,309 1,340,418 3,379,842 31,677,569
Machinery and equipment 13,672,415 573,332 (310,113) 13,935,634
Total capital assets being depreciated 66,467,411 2,544,478 15,567,938 84,579,827
Less accumulated depreciation for:
Buildings 10,677,922 1,042,435 11,720,357
Improvements other than buildings 5,078,662 318,070 5,396,732
Machinery and equipment 8,697,942 999,063 (262,839) 9,434,166
I nfrastructu re 15,769,849 1,288,605 17,058,454
Total accumulated depreciation 40,224,375 3,648,173 (262,839) 43,609,709
Total capital assets, being depreciated, net 26,243,036 (1,103,695) 15,830,777 40,970,118
Governmental activities capital assets, net $ 52,727,418 $ (322,384) $ (1,273,170) $51,131,864
57
CITY OF LA PORTE, TEXAS
Notes to the Financial Statements
September 30, 2008
4. Capital Assets - Continued
Beginning Ending
Balance Retirements & Balance
10/01/07 Additions Adjustments 09/30/08
Business-type activities:
Capital assets, not being depreciated:
Land $ 2,308,777 $ $ $ 2,308,777
Construction in progress 3,141,809 3,584,628 (142,378) 6,584,059
Total capital assets, not being depreciated 5,450,586 3,584,628 (142,378) 8,892,836
Capital assets, being depreciated
Buildings and improvements 1,166,840 1,166,840
Improvements other than buildings 69,928,070 2,650,131 1,334,855 73,913,056
Machinery and equipment 525,652 525,652
Total capital assets, being depreciated 71,620,562 2,650,131 1,334,855 75,605,548
Less accumulated depreciation for:
Buildings and improvements 805,933 46,038 851,971
Improvements other than buildings 38,230,921 2,225,689 293 40,456,903
Machinery and equipment 345,427 26,081 371,507
Total accumulated depreciation 39,382,281 2,297,808 293 41,680,381
Total capital assets, being depreciated net 32,238,281 352,323 1,334,562 33,925,166
Business-type activities capital assets, net $ 37,688,867 $ 3,936,951 $ 1 ,192,184 $42,818,002
58
CITY OF LA PORTE, TEXAS
Notes to the Financial Statements
September 30, 2008
4. Capital Assets - Continued
Depreciation expense was charged to functions/programs of the primary government as follows:
Governmental activities:
General government
Public safety
Public works
Culture and Recreation
Capital assets held by the government's internal service funds are
charged to the various functions based on their usage of the assets
Total depreciation expense - governmental activities
Business-type activities:
Water & Sewer Services
Airport
Golf Course
Sylvan Beach Pavillion
Total depreciation expense - business-type activities
$ 337,432
649,111
1,364,745
521,414
775,471
$ 3,648,173
$ 2,009,950
136,629
136,356
14,871
$ 2,297,806
The City has active construction projects as of September 30, 2008. Total accumulated commitments for
ongoing capital projects are composed of the following:
Remaining
Construction Contract
In Progress Balance
Utility Capital Projects Fund $ 2,884,466 $ 147,360
Sylvan Beach Fund 34,905
Hotel/Motel Occupancy Tax Fund 52,316 40,436
TIRZ Fund 201,170
General CIP 1,213,790 255,972
S1998 General Obligation Bonds 436,035 34,033
S2005 Cert. of Obligation Bonds 8,893 63,002
S2006 Cert. of Obligation Bonds 3,451,306
S2006 GO Bonds 97,986 292,012
S2007 Cert of Obligation Bonds 256,182 2,644,391
Total $ 8,637,049 $ 3,477,206
59
CITY OF LA PORTE, TEXAS
Notes to the Financial Statements
September 30,2008
5. Long Term Liabilities
At September 3D, 2008 bonds payable consisted of the following individual issues:
Governmental Business-type
. 1998 General Obligation Serial Bonds $ 1,375,000 $
due in annual installments of $125,000
through March 15, 2019; interest at 4.25% to 6.25%
$2,500,000 issued for street and drainage improvements.
. 1998 Waterworks and Sewer System Revenue Bonds 125,000
due in annual installments of $125,000
through March 15, 2009; interest at 4.35% to 6.2%
$1,250,000 issued for water and sewer improvements.
. 1999 La Porte Area Water Authority Contract Revenue Refunding Bonds 5,110,000
due in annual payments through March 15, 2017; interest at 7% to 7.5%
$8,080,000 issed to refund previous debt.
. 2000 General Obligation Serial Bonds 2,050,000
due in annual installments of $150,000 through March 15, 2010,
changing to $175,000 through March 15, 2020; interest at 5% to 7%
$3,250,000 issued for city hall, fire station and pool improvements.
. 2000 Certificates of Obligation 1,800,000
due in annual installments of $150,000
through March 15, 2020; interest at 5% to 7%
$3,000,000 issed to construct a public library
. 2002 Limited Tax Bonds 4,590,000
due in annual installments of $270,000
through March 15, 2025; interest at 4.25% to 5%; $5,400,000
issued for wastewater treatment plant and fire station improvements.
. 2004 Certificates of Obligation 6,370,000
due in annual payments through March 15, 2025; interest at 3.6% to 4.45%
$7,000,000 issued for paving and drainage improvements, street extension
and land acquisition.
. 2005 General Obligation Serial Bonds 6,895,000
due in annual payments through March 15, 2025; interest at 3.75% to 4.25%
$7,675,000 issued to construct a police facility.
. 2005 Certificates of Obligation 1,610,000
due in annual payments through March 15, 2015; interest at 2.8% to 3.8%
$7,000,000 issued for water and sewer improvements and fire truck.
. 2006 Public Property Finance Contractual Obligation 2,100,000
due in annual payments through January 25,2016; interest at 3.74%
$2,625,000 issued for automated meter replacement program.
. 2006 General Obligation Serial Bonds 1,155,000
due in annual payments through March 15, 2005; interest at 3.625% to 4.25%
$1,2000,000 issued for park improvments.
. 2006 Certificates of Obligation 5,550,000
due in annual payments through March 15, 2025; interest at 3.75% to 4.3%
$5,765,000 issued for police facility, sports and water and sewer improvements
. 2007 Certificates of Obligation 7,935,000
due in annual payments through March 15, 2029; interest at 4.00% to 4.25%
$8,075,000 issued for wastewater treatment plant improvements, sports
complex and golf cart path improvements.
Total Bonds Payable $ 39,330,000 $ 7,335,000
60
CITY OF LA PORTE, TEXAS
Notes to the Financial Statements
September 30,2008
5. Long Term Liabilities - Continued
Changes in Outstanding Debt -
Transactions for the year ended September 30, 2008 are summarized as follows:
Balance Issues Balance
October 1 , or Payments or September 30, Due within
2007 Additions Expenditures 2008 one year
Governmental Type Activities
General Obligation Bonds $ 16,930,000 $ $ 865,000 $ 16,065,000 $ 875,000
Certificates of Obligation 24,055,000 790,000 23,265,000 820,000
Premium on debt issues 326,022 12,009 314,013
Compensated Absences 2,798,476 172,252 119,441 2,851,287 149,000
Arbitrage Allowance 304,474 304,474
Total governmental type activities 44,109,498 476,726 1,786,450 42,799,774 1,844,000
Business Type Activities
Revenue Bonds Payable 5,845,000 610,000 5,235,000 630,000
Public Property Finance
Contractual Obligation 2,362,500 262,500 2,100,000 262,500
Com pensated absences 399,842 31,494 22,255 409,081 30,000
Total business type activities 8,607,342 31,494 894,755 7,744,081 922,500
Total of all activities $ 52,716,840 $ 508,220 $ 2,681,205 $ 50,543,855 $ 2,766,500
General Obligation Bonds and Certificates of Obligation -
General Obligation Bonds are direct obligations issued on a pledge of the general taxing power for the
payment of the debt obligations of the City. General Obligations Bonds and Certificates of Obligation
require the City to compute, at the time other taxes are levied, the rate of tax required to provide (in each
years bonds are outstanding) a fund to pay interest and principal at maturity. The City is in compliance with
this requirement.
Arbitrage provisions of the Internal Revenue Tax Act of 1986 require the City to rebate excess arbitrage
earnings from bond proceeds to the federal government. Although the city has not incurred any liability for
arbitrage, an allowance has been created as a safe harbor in anticipation of future rebate calculations. As
provided for by the bond indentures, this amount has been recorded as a liability in the governmental
activities for the benefit of the federal government and will be paid as required by applicable regulations.
Certain General Obligation Bonds and Certificate of Obligations Bonds are to be repaid by revenues of the
proprietary funds.
Also, for the governmental activities, compensated absences are generally liquidated by the general fund
and for business-type, compensated absences are paid from the utility fund.
61
CITY OF LA PORTE, TEXAS
Notes to the Financial Statements
September 30, 2008
5. Long Term Liabilities - Continued
Revenue Bonds -
Water and Sewer Revenue Bonds constitute special obligations of the City solely secured by a lien on and
pledge of the net revenues of the water and sewer system.
The Revenue Bonds are collateralized by the revenue of the water and sewer system and the various
special funds established by the bond ordinances. The ordinances provide that the revenue of the system is
to be used first to pay operating and maintenance expenses of the system and second to establish and
maintain the Revenue Bond funds. Remaining revenues may then be used for any lawful purpose. The
ordinances also contain provisions, which, among other items, restrict the issuance of additional Revenue
Bonds unless the special funds noted above contain the required amounts and certain financial ratios are
met. The City is in compliance with all significant financial requirements as of September 30, 2008.
Below is a reconciliation of the various restricted cash and cash investments:
Current Maturities of Revenue Bonds
Customer Deposits Payable
Total Restricted Cash and Cash Investments
as of September 30,2008
$ 875,069
542,949
$1,418,018
62
CITY OF LA PORTE, TEXAS
Notes to the Financial Statements
September 30, 2008
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, 2008, are
as follows:
General Obligation Bonds
Governmental Activities Business-type Activities
Year Ending
September 30 Principal Interest Principal Interest Total
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 960,000 522,732 1,482,732
2014-2018 5,080,000 1,962,238 7,042,238
2019-2023 4,575,000 873,188 5,448,188
2024-2025 1,805,000 80,616 1,885,616
Total $16,065,000 $ 5,937,470 $ $ $ 22,002,470
Certificate of Obligations
Governmental Activities
Year Ending
Septem ber 30 Principal Interest
2009 $ 820,000 $ 966,628
2010 860,000 931,618
2011 895,000 896,048
2012 950,000 858,518
2013 1,060,000 817,983
2014-2018 6,130,000 3,353,422
2019-2023 7,140,000 1,912,747
2024-2028 4,825,000 500,321
2029-2033 585,000 12,285
Total $ 23,265,000 $ 10,249,570
Revenue Bonds
Governmental Activities
Year Ending
Septem ber 30 Principal Interest
2009 $ $
2010
2011
2012
2013
2014-2018
Total $ $
63
Business-type Activities
Principal Interest Total
$ 630,000 $ 247,788 $ 877,788
525,000 215,456 740,456
550,000 185,513 735,513
580,000 156,163 736,163
615,000 126,288 741,288
2,335,000 199,856 2,534,856
$ 5,235,000 $1,131,064 $ 6,366,064
Business-type Activities
Principal
$ 262,500
262,500
262,500
262,500
262,500
787,500
Interest
$ 73,531
63,813
53,996
44,179
34,361
44,179
$2,100,000 $ 314,059
Total
$ 2,122,659
2,117,931
2,107,544
2,115,197
2,174,844
10,315,101
9,052,747
5,325,321
597,285
$ 35,928,630
CITY OF LA PORTE, TEXAS
Notes to the Financial Statements
September 30, 2008
5. Long Term Liabilities - Continued
Bonds Authorized and Unissued -
As of September 30,2008, the City had $4,100,000 in Certificate of Obligations Bonds which were
authorized and unissued.
Defeased Bonds Outstanding -
In 1994, the City defeased certain general obligation and revenue bonds by placing the proceeds of the new
bonds in an irrevocable trust to provide for all future debt service payments on the old bonds. Accordingly,
the trust account assets and the liability for the defeased bonds are not included in the City's financial
statements.
On October 6, 1999, the La Porte Area Water Authority issued $8.08 million in Contract Revenue Refunding
Bonds, Series 1999, with an average interest rate of 5.159 percent to refund $8.08 million in outstanding
Water Supply Contract Revenue Bonds, Series I and II, 1998 with an average interest rate of 6.94 percent.
The Authority completed the current refunding to reduce its total debt service payments over the next 18
years by $1.476 million and to obtain an economic gain (difference between the present values of the old
and new debt service payments) of $1.048 million. The bonds are payable from the net revenues of the
Authority. The bonds are in $5,000 denominations. The Authority is in compliance with all significant
requirements and restrictions contained in the bond resolution. As of September 30, 2008, $2,970,000 of
the refunded bonds has been paid and $5,110,000 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 827 administered by TMRS, an agent multiple-employer public employee retirement system.
All assumptions for the December 31,2007, valuations are contained in the 2007 TMRS Comprehensive
Annual Financial Report, a copy of which may be obtained by writing to P.O. Box 149153, Austin, Texas
78714-9153. 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.
Members can retire at ages 60 and above with 10 or more years of service or with 20 years of service
regardless of age. The Plan also provides death and disability benefits. A member is vested after 10 years.
64
CITY OF LA PORTE, TEXAS
Notes to the Financial Statements
September 30,2008
6. Pension Benefits - Continued
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.
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 goveming 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
percent 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 remainder of the plan's 25-year amortization period. The unit credit
actuarial cost method is used for determining the City contribution rate. 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. (i. e. December
31, 2006, valuation is effective for rates beginning January 2008).
Assumptions and Schedule of Actuarial Liabilities and Funding Progress
Actuarial Cost method
Amortization Method
Remaining amortization
Asset Valuation Method
Projected Unit Credit
Level Percent of payroll
30 Years-closed Period
Amortized Cost
Investment Rate of Return
Projected Salary Increases
Includes Inflation at
Cost of Living Adjustments
Payroll Growth Assumptions
7.0%
Varies by age and service
3.0%
2.1 % (3% CPI)
3.0%
Actuarial Accrued Liabilities
Percentage Funded
Unfunded (Overfunded) Actuarial
Accrued Liability (UAAL)
Annual Covered Payroll
UAAL as a Percentage of Covered Payroll
53,388,381 58,587,551 69,582,807
80.5% 80.3% 70.6%
10,386,612 11,521,794 20,474,255
15,137,017 14,879,306 15,611,200
68.6% 77.4% 131.2%
Net Pension Obligation (NPO) at the Beginning
of Period
Annual Pension Cost:
Annual Required Contribution (ARC)
Interest on NPO
Adjustment to the ARC
2,004,777
1,952,908
2,033,168
2,004,777
2,004,777
1,952,908
1,952,908
2,033,168
2,033,168
Contributions Made (100%)
Increase in NPO
NPO at the End of Period
$
$
$
65
CITY OF LA PORTE, TEXAS
Notes to the Financial Statements
September 30, 2008
6. Pension Benefits - Continued
At its December 8, 2007 meeting, TMRS Board of Trustees adopted assumptions to be used in the actuarial
valuation for the year ended December 31, 2007. A summary of actuarial assumptions and definitions can be
found in the December 31,2007 TMRS Comprehensive Annual Financial Report (CAFR). Since its inception,
TMRS has used the Unit Credit actuarial funding method. This method accounts for liability accrued as of the
liability date, but does not project the potential future liability of provisions adopted by a city. Two-thirds of the
cities participating in TMRS have adopted the Updated Service Credit and Annuity increases provisions on an
annually repeating basis. For the December 31, 2007 valuation, the TMRS Board determined that the Projected
Unit Credit (PUG) funding method should be used, which facilitates advance funding for future updated service
credits and annuity increases that are adopted on an annually repeating basis. In addition, The Board also
adopted a change in the amortization period from a 25 year "open" to a 25-year "closed" period. TMRS Board of
Trustees rules provide that, whenever a change in actuarial assumptions or methods results in a contribution
rate increase in an amount greater than 0.5%, the amortization period will be increased to 30 years, unless a
city requests that the period remain at 25 years. For cities with repeating features, these changes would likely
result initially in higher required contributions and lower funded ratios; however, the funded ratio should show
steady improvement over time. To assist in this transition to higher rates, the Board also approved an eight year
phase in period, which will allow cities the opportunity to increase their contributions gradually (approximately
12.5% each year) to their full rate (or required contribution rate).
If the changes in actuarial funding method and assumptions had not been adopted for the 2007 valuation, the
City's unfunded actuarial accrued liability would have been $12,541,455 and the funded ratio would have been
79.7%.
In addition, TMRS is currently working on its legislative package for 2009. There is a possibility that the
investment rate of return (IRR) assumption of 7% would need to be lowered is desired legislation for the 2009
session is unsuccessful. Maintaining a 7% IRR assumption is contingent in part on the continued diversification
of the TMRS portfolio, from an almost exclusive bond portfolio to a portfolio that includes equities as well. If state
legislation needed to facilitate the continued diversification is not enacted, TMRS may have to revisit the
continued diversification of the portfolio and consider reducing the assumed IRR. A reduction in the IRR would
result in increased actuarial liabilities, thus causing further increases in City contribution rates following the
December 31,2009 actuarial valuation.
Texas Statewide Emergency Services Personnel Retirement Fund
Summary of Significant Accounting Policies and Plan Asset Matters
The Texas Statewide Emergency Services Personnel Retirement Fund financial statements are prepared using
the accrual basis of accounting. The Fund's fiscal year is from September 1 through the following August 31.
Contributions are recognized as revenues in the period in which they are due to the Fund. No contributions
applicable to the H.B. 258 Texas Local Fire Fighters Retirement Act (TLFFRA) are included herein.
The Texas Statewide Emergency Services Personnel Retirement Fund investments are reported at a smoothed
market-related value.
Plan Description
The Fire Fighters' Pension Commission is the administrator of the Texas Statewide Emergency Services
Personnel Retirement Fund, a cost sharing multiple employer pension system established and administered by
the State of Texas to provide pension benefits for emergency services personnel who serve without monetary
remuneration. The Texas Statewide Emergency Services Personnel Retirement Fund is considered a
component unit of the State of Texas financial reporting entity and is included in the State's financial reports as
a pension trust fund. At August 31, 2008 there were 186 member departments participating in the pension
system. The following table summarizes the pension system membership as of August 31, 2008:
66
CITY OF LA PORTE, TEXAS
Notes to the Financial Statements
September 30, 2008
6. Pension Benefits - Continued
Retirees and beneficiaries currently receiving benefits
Terminated members entitled to benefits but not yet receiving those
Current active members (vested and non-vested)
1,939
1,975
4,340
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.
Contributions Required and Contributions Made
As previously stated the required contribution of at least $16 per member per month is not actuarially
determined. The 2005 Legislative Session gave the Board of Trustees of the Texas Emergency Services
Retirement System (TESRS) the authority to establish vesting periods, contribution levels, benefit formulas
and eligibility requirements under Title 8, Government Code, Subtitle H. The minimum monthly contribution
rate per member is increasing from $12 to $36 in $4 annual increments beginning September 1, 2006 and
becoming $36 September 1, 2011. For the fiscal year ending August 31, 2008, contributions totaling
$2,439,339 for dues and prior service were paid into the fund by the governing bodies sponsoring the
member participating departments. In addition the state appropriated $8,800,000 for the fiscal year ended
August 31, 2008. Total contributions made were greater than the contributions required based on the
August 31,2006 actuarial valuation.
City Percentage of
Fiscal Annual Required
Year Contributions Contributions
2006 10,360 100%
2007 13,440 100%
2008 14,784 100%
The purpose for the biennial actuarial valuations is to test the adequacy of the contribution arrangement and
determine if they are adequate to fund the benefits that are promised. The actuarial valuation as of August
31 revealed the adequacy of the expected contributions (dues and prior service contributions) together with
the actual state appropriations for the fiscal year ending August 31, 2009 ($415,405 to help pay for the
Systems administrative expense) and with the assumed continuation of legislative appropriations of (1) the
maximum state contribution amount in future years for up to 30 years as is necessary for the System to
have a 30 year amortization period, and (2) approximately $425,000 each year to help pay for the System's
administrative expenses. Expected contributions for the fiscal year ending August 31, 2009 are equal to the
contributions required.
67
CITY OF LA PORTE, TEXAS
Notes to the Financial Statements
September 30, 2008
7. Interfund Receivables, Payables and Transfers
Interfund transfers during the year ended September 30, 2008 were as follows:
Transfer In:
Transfer out:
General
Fund
Other
Capital Governmental
Projects Funds
Other Internal
Utility Enterprise Service
Fund Funds Funds
Totals
General fund
Other governmental funds
Utility fund
La Porte Area water authority fund
Other enterprise funds
Internal service funds
$ - $3,465,589 $
1,293,156
370,000
59,327
3,464 $ 46,024 $ 17,999 $ 711 ,481 $
1,847,046 116,500
586,705 78,664
2,151
33,717
22,521
4,244,557
3,256,702
1,035,369
61,478
33,717
22,521
Total transfers out
8,654,344
Transfer of governmental capital assets
to water and seHer capital assets
4,482,977
Total transfers in
$ 13,137,321
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 for 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. In the fund financial statements, total
transfers in the amount of $13,137,321 are greater than transfers out in the amount of $8,654,344, because
of the treatment of transfers of capital assets to the utility fund from governmental capital assets. Capital
assets were transferred to the utility fund in the amount of $4,482,977. This amount was not reported in the
governmental funds because it did not involve the transfer of financial resources. However the utility fund
did report a transfer in for the capital assets transferred from governmental capital assets.
In the year September 30, 2008, the government made the following one-time transfers:
A transfer of $46,024 was made from the General Fund to the Utility Fund for the compensation study
implementation. A transfer of $3,914 was made from the General Fund to the Sylvan Beach Fund for the
compensation study implementation. A transfer of $1,424 was made from the General Fund to the
Insurance Fund for the compensation plan implementation. A transfer of $135,000 was made from the
General Fund to the Capital Projects Fund for a drainage study. A transfer was made from the General
Fund to the Capital Projects Fund for the Sylvan Beach Shoreline Project for the amount of $330,589. A
transfer of $3,000,000 was made from the General Fund to the Capital Projects for the construction of a
municipal court building. A transfer of $120,600 was made from the Hotel/Motel Fund to the Capital Projects
Fund for the Sylvan Beach Shoreline Project. A transfer of $700,000 was made from Section 4B to the
Capital Projects Fund for the Sylvan Beach Shoreline Project. A transfer of $325,000 was made from 4B to
Capital Projects Fund for the Gateway Enhancement Project. A transfer of $147,556 was made from 2000
GO Bond Fund to Capital Projects Fund for additional projects. A transfer of $5,674 was made from the
General Fund to the Technology Fund for implementation of the compensation study. A transfer for $17,043
was made from the General Fund to Vehicle Maintenance Fund for implementation of the compensation
study. A transfer for $14,085 was made from the General Fund to the Golf Course Fund for implementation
of the compensation study. A transfer of $1,587 was made from the General Fund to the Hotel/Motel Fund
for implementation of the compensation study. A transfer of $662,000 was made from the TIRZ fund to the
2006 Certificates of Obligation to return a previous transfer. A transfer of $93,620 was made from the
Community Investment Fund to the Hotel/Motel Fund for one half of budgeted main street operations. A
transfer of $1,877 was made from General Fund to 4B for implementation of the compensation study. A
transfer of $254,178 was made from Street Maintenance Sales Tax Fund to 4B for repayment of a loan in
2007.
68
CITY OF LA PORTE, TEXAS
Notes to the Financial Statements
September 30, 2008
7. Interfund Receivables, Payables and Transfers - Continued
The composition of interfund balances as of September 30, 2008 is as follows:
Receivable Fund
Payable Fund
General
Nonmajor governmental
General
Utility
Internal Service
Nonmajor Enterprise
Grant
Nonmajor governmental
Nonmajor Enterprise
Grant
Grant
Grant
$1,043,294
615,026
37,548
35,951
26,954
4,238
$1,763,011
The outstanding balances result from an overdraw of pooled cash, a loan to the TIRZ fund, and receivables
for expenditures to be reimbursed by FEMA.
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.
69
CITY OF LA PORTE, TEXAS
Notes to the Financial Statements
September 30, 2008
8. Risk Management - Continued
Activity during the year included:
Revenues:
Charges to divisions
Charges to employees
Charges to retirees
Total revenues
$3,413,336
421,805
83,330
3,918,471
Expenses:
Personnel expenses
Other expenses
Claims administration
Claims incurred
Re-insurance premiums
Total health services expenses
381,875
796,192
210,117
3,805,967
268,203
$ 5,462,354
Included in the claims paid amount is $677,000 for incurred but not reported claims.
Settled claims have not exceeded insurance coverage in any of the previous four fiscal years. Estimates of
claims payable and of claims incurred but not reported at September 30, 2008 are reflected as liabilities of
the Intemal 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 2006, 2007 and 2008 are
as follows:
Beginning Current Payment End of
of Year Year for Year
Accrual Estimates Claims Accrual
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
Fiscal Year 2008 509,552 3,805,967 3,638,519 677,000
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.
70
CITY OF LA PORTE, TEXAS
Notes to the Financial Statements
September 30, 2008
9. Commitments and Contingent Liabilities
From time to time, the City is a defendant in legal proceedings relating to its operations as a municipality. In
the best judgment of the City's management, the outcome of any pending legal proceedings will not have an
adverse effect on the accompanying general purpose financial statements.
The City participates in certain federal and state assisted grant programs. These programs are subject to
program compliance audits by the grantors or their representatives. Any liability for reimbursement which
may arise as the result of these audits is not believed to be material.
10. Post-Employment Benefits
In addition to pension benefits described in Note 6, employees who retire from the City and are eligible for
pension benefits shall be provided medical coverage by the City to the extent and subject to the conditions
of such coverage that is provided to current employees of the City. This coverage for retired employees is
provided at the option of City council through adoption of the annual budget. The City funds these
premiums in the same manner as it funds similar premiums for current employees.
Employees, who retired from the City before October 1, 1992, have 100% of their coverage paid for by the
City. Employees who retired from the City in 1993 and up to December 31,1999, with 20 or more years of
service have 100% of their coverage paid for by the City. Prior to January 1, 2000, employees who have 15
years but less than 20 years of service are required to pay for 10% of the cost and employees who have 10
years but less than 15 years of service are required to pay for 20% of their costs. For employees who retire
after January 1, 2000 the following applies:
Years of Service with City
At least 10 but less than 15 years
At least 15 but less than 20 years
At least 20 years
Retiree Cost
55%
25%
0%
Citv Cost
45%
75%
100%
Retiree Cost Per Year
$3,300
1,500
o
71
10. Post-Employment Benefits - Continued
CITY OF LA PORTE, TEXAS
Notes to the Financial Statements
September 30, 2008
Employees who are eligible for the post employment benefits are employees who retire after January 1,
2006 and who have a combination of years of service with the City of La Porte plus age totaling 80 and who
retire as a qualified annuitant under the Texas Municipal Retirement System; who retire in accordance with
the City of La Porte Employee Policies Handbook; who complete at least 20 years of service with the City of
La Porte are currently employed by the City of La Porte at the time of their retirement. The total premium
cost is the total annual dollar allocated by budget as approved by City Council for the City of La Porte for
health insurance for each employee, including employee and employer contributions. The cost allocation
shall be as follows:
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
$558,703
$475,373
Retiree Cost
Number of
Retired Emolovees
$83,330
61
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 andlor 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.
In June 2004, the GASB issued Statement No. 45, Accounting and Financial Reporting by Employers for
Postemployment Benefits Other Than Pensions. GASB 45 requires employer governments to account for
and report the annual cost of other postemployement benefits in the same manner as they do for pensions.
This statement is effective for the city's financial statements for the fiscal year ending September 30, 2009.
In fiscal year 2008, the city contracted with an actuarial firm to value the post employment medical plan.
Results of the valuation are as follows:
Actuarial Accrued Liability (AAL)
Annual Required Contribution (ARC)
Amortization Period
$28 million
$2.2 million
30 years
72
CITY OF LA PORTE, TEXAS
Notes to the Financial Statements
September 30, 2008
10. Post-Employment Benefits - Continued
The ARC is made up of two components-the Normal Cost and the Amortization Amount. The normal cost,
which is the present value of the benefits deemed to accrue in the plan year, is $1 million. The amortized
amount, which is the present value of the accrued benefit, is $1.2 million. The amortized amount has been
calculated by level percent of payroll contributions. The amortized amount is required to fully amortize the
unfunded actuarial accrued liabilities over a 30 year period assuming payroll growth of 3%.
The City's annual employer contributions each year will continue to equal the benefits that are paid on
behalf of the retirees. The City will reflect proper treatment and note disclosure of Health Care Benefits for
Retired Employees in accordance with GASB No. 45 beginning with the fiscal year ending September 30,
2009.
11. Deficit Fund Balance
The Tax Increment Reinvestment Zone One (TIRZ) Fund has a deficit fund balance of $293,847, as of
September 30, 2008. This deficit is the result of the TIRZ borrowing money from a capital projects fund to
finance capital improvements. This deficit fund balance will be covered with future property tax revenues.
73
74
REQUIRED SUPPLEMENTARY INFORMATION
75
76
Required Supplementary Information
Texas Municipal Retirement System
Schedule of Funding Progress
For the Last Three Fiscal Years
Actuarial
Accrued
Actuarial Liability Unfunded
Actuarial Value of (AAL) - AAL Funded
Valuation Assets Entry Age (UAAL) Ratio
Date (a) (b) (b-a) (alb)
2005 $43,001,769 $53,388,381 $10,386,612 80.5%
2006 47,065,757 58,587,551 11,521,794 80.3
2007 49,108,552 69,582,807 20,474,255 70.6
77
Covered
Payroll
(c)
15,137,017
14,879,306
15,611,200
UAAL as a
Percentage
of Covered
Payroll
[(b-a)/c]
68.6%
77.4
131.2
Required Supplementary Infonnation
CITY OF LA PORTE, TEXAS
General Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances
Budget and Actual
For The Year Ended September 30, 2008
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual Amounts (Negative)
REVENUES
Property taxes $ 11,050,524 $11,561,000 $ 11,929,892 $ 368,892
Franchise taxes 1,945,989 1,972,195 2,165,343 193,148
Sales taxes 2,882,538 3,085,011 3,040,148 (44,863)
Industrial payments 7,500,000 7,659,904 7,759,647 99,743
Other taxes 62,727 75,150 80,902 5,752
Licenses and permits 669,430 575,102 559,803 (15,299)
Fines and forfeits 755,106 1,409,492 1,557,045 147,553
Charges for services 3,908,613 4,638,746 3,895,853 (742,893)
Intergovernmental 6,053 6,000 4,903 (1,097)
Interest 770,400 660,870 646,545 (14,325)
Miscellaneous 25,105 25,000 50,010 25,010
Total revenues 29,576,485 31,668,470 31,690,091 21,621
EXPENDITURES
General Government:
Administration 2,652,790 2,588,894 2,564,734 24,160
Finance 3,960,738 2,731,895 2,691,012 40,883
Planning & Engineering 1,888,747 1,827,066 1,788,887 38,179
Public Safety:
Fire 3,947,802 3,940,379 3,927,292 13,087
Police 8,872,550 8,831,253 8,787,746 43,507
Public Works:
Public Works Administration 337,825 342,436 340,037 2,399
Streets 2,314,562 2,289,361 2,287,877 1 ,484
Health and Sanitation:
Solidwaste 2,022,549 2,090,052 2,089,389 663
Culture and Recreation 3,388,809 3,369,720 3,339,026 30,694
Total expenditures 29,386,372 28,011,056 27,816,000 195,056
Excess (deficiency) of revenues
over expenditures 190,113 3,657,414 3,874,091 216,677
OTHER FINANCING SOURCES (USES)
Sale of capital assets 5,000 31,518 26,518
Transfers in 397,635 429,327 429,327
Transfers out (677,438) (4,355,954) (4,244,557) 111,397
Total other financing sources (uses) (279,803) (3,921,627) (3,783,712) 137,915
Net change in fund balances (89,690) (264,213) 90,379 354,592
Fund balances-beginning 13,857,602 13,857,602 13,857,602
Fund balances-ending $13,767,912 $13,593,389 $ 13,947,981 $ 354,592
78
Required Supplementary Information
CITY OF LA PORTE, TEXAS
Grant Special Revenue Fund
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
For The Year Ended September 30,2008
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual Amounts (Negative)
REVENUES
Fines and forfeitures $ 300,489 $ 300,489 $ 169,388 $ (131,101)
Charges for services 22,597 22,597
Intergovernmental 735,867 740,168 4,415,547 3,675,379
Interest 6,026 6,026
Miscellaneous 231 231
Total revenues 1,036,356 1,040,657 4,613,789 3,573,132
EXPENDITURES
Current:
Administration 460,000 560,132 635,295 (75,163)
Public Safety 509,895 509,808 2,677,772 (2,167,964)
Public Works 281,056 (281,056)
Health and Sanitation 14,105 (14,105)
Culture and Recreation 66,461 102,009 131,097 (29,088)
Total expenditures 1,036,356 1,171,949 3,739,325 (2,567,376)
Excess (deficiency) of revenues over
expenditures (131,292) 874,464 1,005,756
Net change in fund balances (131,292) 874,464 1,005,756
Fund balances-beginning 747,430 747,430 747,430
Fund balances-ending $ 747,430 $ 616,138 $ 1,621,894 $ 1,005,756
79
CITY OF LA PORTE, TEXAS
Notes to the Required Supplementary Information
September 30, 2008
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.
81
COMBINING FINANCIAL STATEMENTS
NONMAJOR GOVERNMENTAL FUNDS
Special Revenue Funds
Special revenue funds are used to account for specific revenues that are legally restricted to expenditure for
particular purposes.
Street Maintenance Sales Tax Fund - This fund is used to account for the additional sales tax collected for
street maintenance.
Community Investment Fund - This fund is used to account for funds received and expended on community
beautification and revitalization programs.
Hotel I 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; Vemon's Texas Civil Statutes).
Tax Increment Reinvestment Zone One Fund (TIRZ) - This fund is used to account for the disposition of
property taxes collected on specific parcels within the boundaries of the TIRZ for the exclusive benefit of the
City's capital improvement programs.
Section 4B Sales Tax Fund - This fund is used to account for funds received from the % cent sales tax
dedicated to certain economic and infrastructure projects.
Capital Projects Funds
Capital projects funds are used to account for the acquisition and construction of major capital facilities other
than those financed by proprietary funds.
Transportation and Other Infrastructure Fund - This fund is used to account for the construction and expansion
of roads, bridges, sidewalks and other major infrastructure capital improvements.
1998 General Obligation Bonds Fund - This fund is used to account for the proceeds and expenditures related
to drainage and street improvements throughout the City.
2000 Certificate of Obligation Bonds Fund - This fund is used to account for the proceeds and expenditures for
construction of the community library.
2000 General Obligation Bonds Fund - This fund is used to account for the proceeds and expenditures for
construction to renovate the city hall building, public swimming pool and two fire stations.
2002 General Obligation Bonds Fund - This fund is used to account for the proceeds and expenditures for the
construction of a wastewater treatment plant.
82
2004 Certificate of Obligation Bonds Fund - This fund is used to account for the proceeds and expenditures
related to Bay Area Boulevard, Canada Road Paving and Drainage Improvements and the land acquisition of
the Police Headquarters.
2005 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.
2005 Certificate of Obligation Bonds Fund - This fund is used to account for the proceeds and expenditures
related to the purchase of an aerial fire truck, Bayshore Water/Sewer Replacement and various other
Water/Sewer Capital Improvements.
2006 Certificate of Obligation Bonds Fund - This fund is used to account for the proceeds and expenditures
related to the Police Facility, a Sports Complex (Joint Venture), South La Porte Trunk Sewer and various other
Water/Sewer projects.
2006 General Obligation Bonds Fund - This fund is used to account for the proceeds and expenditures related
to the Westside Park Improvements.
Debt Service Fund
Debt service Fund is used to pay interest and extinguish debt of the outstanding General Obligation Issues of
the City.
83
84
CITY OF LA PORTE, TEXAS
Combining Balance Sheet
Nonmajor Governmental Funds
September 30, 2008
Special Revenue Funds
Street Hotel/Motel Tax Increment
Maintenance Community Occupancy Reinvestment
Sales Tax Investment Tax Zone One (TIRZ)
ASSETS
Cash and cash equivalents $ 689,107 $ 726,052 $ 480,622 $ 321,179
I nvestm ents 130,154 137,131 90,788
Taxes receivable 120,123
Accrued interest receivable 938 989 655
Due from other funds
Total assets 940,322 864,172 572,065 321,179
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable 578,512 6,444 3,409
Accrued salaries payable 2,973
Retainage payable
Due to other funds 615,026
Deferred revenue
Total liabilities 578,512 6,444 6,382 615,026
Fund Balances:
Reserved for:
Encumbrances 38,694 1,949 39,997
Debt Service
Unreserved 323,116 855,779 525,686 (293,847)
Total fund balances 361,810 857,728 565,683 (293,847)
Total liabilities and fund balances $ 940,322 $ 864,172 $ 572,065 $ 321,179
85
Special Revenue Funds Capital Projects Funds
Transportation 1998 General 2000 Certificate
Section 4B & Other Obligation of Obligation
Sales Tax Totals Infrastructure Bonds Bonds
$ 3.362,338 $ 5,579,298 $ 1,013,868 $ 987,376 $ 24,347
635,066 993, 139 191,492 186,488 4,598
240,245 360,368
4,579 7,161 1,381 1,345 33
4,242,228 6,939,966 1,206,741 1,175,209 28,978
6,019
2,348
594,384
5,321
4,368
615,026
8,367
1,214,731
4.368
130,251
210.891
$
4,103,610
4,233,861
4,242,228 $
5,514.344
5,725,235
6,939.966
$
1.206,741
1,206,741
1,206,741 $
1,170,841
1,170,841
1,175,209 $
28,978
28,978
28,978
86
CITY OF LA PORTE, TEXAS
Combining Balance Sheet
Nonmajor Governmental Funds
September 30, 2008
(Continued)
Capital Projects Funds
2000 General 2002 General 2004 Certificate 2005 General
Obligation Obligation of Obligation Obligation
Bonds Bonds Bonds Bonds
ASSETS
Cash and cash equivalents $ 134,006 $ 34,843 $ 687,666 $ 300,735
Investments 8,302 6,581 757,442
Taxes receivable
Accrued interest receivable 59 48 938 346
Due from other funds
Total assets 142,367 41,472 1,446,046 301,081
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable 3,018
Accrued salaries payable
Retainage payable
Due to other funds
Deferred revenue
Total liabilities 3,018
Fund Balances:
Reserved for:
Encumbrances
Debt Service
Unreserved 142,367 41,472 1,446,046 298,063
Total fund balances 142,367 41,472 1,446,046 298,063
Total liabilities and fund balances $ 142,367 $ 41,472 $ 1,446,046 $ 301,081
87
Capital Projects Funds
2005 Certificate 2006 Certificate 2006 General Total Nonmajol
of Obligation of Obligation Obligation Debt Governmental
Bonds Bonds Bonds Totals Service Funds
$ 24,625 $ 247,801 $ 277,393 $ 3,732,660 $ 1,680,563 $ 10,992,521
468,645 2,413,728 965,078 5,002,354 317,085 6,312,578
51,734 412,102
34 230 317 4,731 2,194 14,086
615,026 615,026 615,026
493,304 3,276,785 1,242,788 9,354,771 2,051,576 18,346,313
5,424 60,604 73,414 667,798
5,321
37,837 37,837 37,837
615,026
51,734 51,734
43,261 60,604 111,251 51,734 1,377,716
210,891
1,999,842 1,999,842
450,043 3,276,785 1,182,184 9,243,520 14,757,864
450,043 3,276,785 1,182,184 9,243,520 1,999,842 16,968,597
$ 493,304 $ 3,276,785 $ 1,242,788 $ 9,354,771 $ 2,051,576 $ 18,346,313
88
CITY OF LA PORTE, TEXAS
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances
Nonmajor Governmental Funds
For The Year Ended September 30, 2008
Special Revenue Funds
Street Hotel/Motel Tax Increment
Maintenance Community Occupancy Reinvestment
Sales Tax Investment Tax Zone One (TIRZ)
REVENUES
Property taxes $ $ $ $ 260,201
I ntergovernm ental 100,000
Sales taxes 760,036
Industrial payments 198,875
Other taxes 401,920
Interest 29,078 23, 136 18,409 14,631
Miscellaneous 9,990 16,397
Total revenues 789,114 232,001 436,726 374,832
EXPENDITURES
Current
Adm inistration 87,957 297,808 46,986
Public Safety
Health and Sanitation
Capital Outlay 1,151,993 46,487 621,693
Debt Service:
Principal
Interest and fiscal charges
Total expenditures 1,151,993 134,444 297,808 668,679
Excess (deficiency) of revenues over
expenditures (362,879) 97,557 138,918 (293,847)
OTHER FINANCING SOURCES (USES)
Transfers in 95,207
Transfers out (254,178) (93,620) (237,100) (662,000)
Total other financing sources (uses) (254,178) (93,620) (141,893) (662,000)
Net change in fund balances (617,057) 3,937 (2,975) (955,847)
Fund balances-beginning 978,867 853,791 568,658 662,000
Fund balances-ending $ 361,810 $ 857,728 $ 565,683 $ (293,847)
89
Special Revenue Funds
Section 4B
Sales Tax Totals
$ $ 260,201
100,000
1,520,071 2,280,107
198,875
401,920
138,907 224,161
26,387
1,658,978 3,491,651
Capital Projects Funds
Transportation 1998 General 2000 Certificate
& Other Obligation of Obligation
Infrastructure Bonds Bonds
$ $ $
36,212 35,268 20,950
5,639
36,212 35,268 26,589
254,593
687,344
1,820,173
18,430
254,593 2,507,517 18,430
1,404,385 984,134 36,212 16,838 26,589
256,055 351,262
(1,862,248) (3,109,146)
(1,606,193) (2,757,884)
(201,808) (1,773,750) 36,212 16,838 26,589
4,435,669 7,498,985 1,170,529 1,154,003 2,389
$ 4,233,861 $ 5,725,235 $ 1,206,741 $ 1,170,841 $ 28,978
90
CITY OF LA PORTE, TEXAS
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances
Nonmajor Governmental Funds
For The Year Ended September 30, 2008
(Continued)
Capital Projects Funds
2000 General 2002 General 2004 Certificate 2005 Certificate
Obligation Obligation of Obligation of Obligation
Bonds Bonds Bonds Bonds
REVENUES
Property taxes $ $ $ $
Intergovernmental 234,630
Sales taxes
Industrial payments
Other taxes
Interest 32,591 3,892 48, 180 49,533
Miscellaneous 8,142
Total revenues 32,591 12,034 282,810 49,533
EXPENDITURES
Current:
Adm inistration
Public Safety
Health and Sanitation 147,526
Capital Outlay 18,690 179,625
Debt Service:
Principal
Interest
Total expenditures 18,690 327,151
Excess (deficiency) of revenues over
expenditures 13,901 12,034 282,810 (277,618)
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out (147,556)
Total other financing sources (uses) (147,556)
Net change in fund balances (133,655) 12,034 282,810 (277,618)
Fund balances-beginning 276,022 29,438 1,163,236 727,661
Fund balances-ending $ 142,367 $ 41,472 $ 1,446,046 $ 450,043
9]
Capital Projects Funds
2005 General 2006 Certificate 2006 General Total Nonmajor
Obligation of Obligation Obligation Debt Governmental
Bonds Bonds Bonds Totals Service Funds
$ $ $ $ $ 1,942,675 $ 2,202,876
234,630 334,630
2,280,107
198,875
401,920
76,376 194,712 56,726 554,440 86,927 865,528
13,781 40,168
76,376 194,712 56,726 802,851 2,029,602 6,324,104
51,173 51,173 738,517
216,813 216,813 216,813
147,526 147,526
19,138 96,384 332,267 2,152,440
1,655,000 1,655,000
1,724,468 1,724,468
267,986 19,138 96,384 747,779 3,379,468 6,634,764
(191,610) 175,574 (39,658) 55,072 (1,349,866) (310,660)
662,000 662,000 1,423,953 2,437,215
(147,556) (3,256,702)
662,000 514,444 1,423,953 (819,487)
(191,610) 837,574 (39,658) 569,516 74,087 (1,130,147)
489,673 2,439,211 1,221,842 8,674,004 1,925,755 18,098,744
$ 298,063 $ 3,276,785 $ 1,182,184 $ 9,243,520 $ 1,999,842 $ 16,968,597
92
93
SCHEDULE OF REVENUES, EXPENDITURES and
CHANGES IN FUND BALANCE - BUDGET and ACTUAL
Debt Service Fund
Special Revenue Funds
Capital Projects Funds
94
CITY OF LA PORTE, TEXAS
Street Maintenance Sales Tax Special Revenue Fund
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
For The Year Ended September 3D, 2008
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual Amounts (Negative)
REVENUES
Sales taxes $ 720,635 $ 720,635 $ 760,036 $ 39,401
Interest 5,900 5,900 29,078 23,178
Total revenues 726,535 726,535 789,114 62,579
EXPENDITURES
Capital Outlay 750,000 1,393,803 1,151,993 241,810
Total expenditures 750,000 1,393,803 1, 151 ,993 241,810
Excess of revenues over expenditures (23,465) (667,268) (362,879) 304,389
OTHER FINANCING SOURCES (USES)
Transfers out (254,178) (254,178) (254,178)
Total other financing sources (uses) (254,178) (254,178) (254,178)
Net change in fund balances (277,643) (921,446) (617,057) 304,389
Fund balances-beginning 978,867 978,867 978,867
Fund balances---ending $ 701,224 $ 57,421 $ 361,810 $ 304,389
95
CITY OF LA PORTE, TEXAS
Community Investment Special Revenue Fund
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
For The Year Ended September 30,2008
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual Amounts (Negative)
REVENUES
Industrial payments $ 192,308 $ 192,308 $ 198,875 $ 6,567
Interest 23,050 23,050 23,136 86
Miscellaneous 2,000 2,000 9,990 7,990
Total revenues 217,358 217,358 232,001 14,643
EXPENDITURES
Current:
Administration 139,500 142,150 87,957 54,193
Capital outlay 22,939 46,487 (23,548)
Total expenditures 139,500 165,089 134,444 30,645
Excess (deficiency) of revenues over
expenditures 77,858 52,269 97,557 45,288
OTHER FINANCING SOURCES (USES)
Transfers out (93,620) (93,620) (93,620)
Total other financing sources (uses) (93,620) (93,620) (93,620)
Net change in fund balances (15,762) (41,351) 3,937 45,288
Fund balances-beginning 853,791 853,791 853,791
Fund balances-ending $ 838,029 $ 812,440 $ 857,728 $ 45,288
96
CITY OF LA PORTE, TEXAS
Hotel/Motel Occupancy Tax Special Revenue Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances
Budget and Actual
For The Year Ended September 30, 2008
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Other taxes $ 415,000 $ 415,000 $ 401 ,920 $ (13,080)
Interest 21,400 21,400 18,409 (2,991)
Miscellaneous 16,397 16,397
Total revenues 436,400 436,400 436,726 326
EXPENDITURES
Current:
Administration 440,040 461,195 297,808 163,387
Total expenditures 440,040 461,195 297,808 163,387
Excess (deficiency) of revenues over
expenditures (3,640) (24,795) 138,918 163,713
OTHER FINANCING SOURCES (USES)
Transfers in 93,620 95,207 95,207
Transfers out (237,100) (237,100) (237,100)
Total other financing sources (uses) (143,480) (141,893) (141,893)
Net change in fund balances (147,120) (166,688) (2,975) 163,713
Fund balances-beginning 568,658 568,658 568,658
Fund balances-ending $ 421,538 $ 401,970 $ 565,683 $ 163,713
97
CITY OF LA PORTE, TEXAS
Tax Increment Reinvestment Zone One Special Revenue Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances
Budget and Actual
For The Year Ended September 30, 2008
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Property taxes $ 121,438 $ 121,438 $ 260,201 $ 138,763
Intergovernmental 231,348 231,348 100,000 (131,348)
Interest 14,631 14,631
Total revenues 352,786 352,786 374,832 22,046
EXPENDITURES
Current:
Administration 100,184 100,184 46,986 53,198
Capital Outlay 231,348 231,348 621,693 (390,345)
Total expenditures 331,532 331,532 668,679 (337,147)
Excess (deficiency) of revenues over
expenditures 21,254 21,254 (293,847) (315,101)
OTHER FINANCING SOURCES (USES)
Transfers out (662,000) (662,000)
Total other financing sources (uses) (662,000) (662,000)
Net change in fund balances 21,254 21,254 (955,847) (977,101)
Fund Balances----beginning 662,000 662,000 662,000
Fund Balances--ending $ 683,254 $ 683,254 $ (293,847) $ (977,101)
98
CITY OF LA PORTE, TEXAS
Section 4B Sales Tax Special Revenue Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances
Budget and Actual
For The Year Ended September 30, 2008
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Sales taxes $ 1,441,269 $ 1,441,269 $ 1,520,071 $ 78,802
Interest 176,400 176,400 138,907 (37,493)
Total revenues 1,617,669 1,617,669 1,658,978 41,309
EXPENDITURES
Current:
Administration 134,317 447,527 254,593 192,934
Total expenditures 134,317 447,527 254,593 192,934
Excess of revenues over
expenditures 1,483,352 1,170,142 1,404,385 234,243
OTHER FINANCING SOURCES (USES)
Transfers in 254,178 256,055 256,055
Transfers out (837,248) (1,862,248) (1,862,248)
Total other financing sources (uses) (583,070) (1,606,193) (1,606,193)
Net change in fund balances 900,282 (436,051 ) (201,808) 234,243
Fund balances-beginning 4,435,669 4,435,669 4,435,669
Fund balances-ending $ 5,335,951 $ 3,999,618 $ 4,233,861 $ 234,243
99
CITY OF LA PORTE, TEXAS
Transportation and Other Infrastructure Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances
Budget and Actual
For The Year Ended September 30, 2008
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Interest $ 51,700 $ 51 ,700 $ 36,212 $ (15,488)
EXPENDITURES
Capital Outlay 200,000 200,000
Total expenditures 200,000 200,000
Excess of revenues over
expenditures 51,700 (148,300) 36,212 184,512
Net change in fund balances 51,700 (148,300) 36,212 184,512
Fund balances-beginning 1,170,529 1,170,529 1,170,529
Fund balances-ending $ 1,222,229 $ 1,022,229 $ 1,206,741 $ 184,512
100
CITY OF LA PORTE, TEXAS
1998 General Obligation Bonds Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances
Budget and Actual
For The Year Ended September 30, 2008
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Interest $ 14,100 $ 14,100 $ 35,268 $ 21,168
EXPENDITURES
Capital Outlay 18,430 (18,430)
Total expenditures 18,430 (18,430)
Excess of revenues over
expenditures 14,100 14,100 16,838 2,738
Net change in fund balances 14,100 14,100 16,838 2,738
Fund balances-beginning 1,154,003 1,154,003 1,154,003
Fund balances-ending $ 1,168,103 $ 1,168,103 $ 1,170,841 $ 2,738
101
CITY OF LA PORTE, TEXAS
2000 Certificate of Obligation Bonds Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances
Budget and Actual
For The Year Ended September 30, 2008
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Interest $ $ $ 20,950 $ 20,950
Miscellaneous 5,639 5,639
Total revenues 26,589 26,589
Excess of revenues over
expenditures 26,589 26,589
Net change in fund balances 26,589 26,589
Fund balances-beginning 2,389 2,389 2,389
Fund balances--ending $ 2,389 $ 2,389 $ 28,978 $ 26,589
]02
CITY OF LA PORTE, TEXAS
2000 General Obligation Bonds Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances
Budget and Actual
For The Year Ended September 30, 2008
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Interest $ 1,100 $ 1,100 $ 32,591 $ 31,491
EXPENDITURES
Capital Outlay 54,465 54,465 18,690 35,775
Total expenditures 54,465 54,465 18,690 35,775
Excess (deficiency) of revenues over
expenditures (53,365) (53,365) 13,901 67,266
OTHER FINANCING SOURCES (USES)
Transfers out (147,556) (147,556)
Total other financing sources (uses) (147,556) (147,556)
Net change in fund balances (53,365) (200,921) (133,655) 67,266
Fund balances-beginning 276,022 276,022 276,022
Fund balances-ending $ 222,657 $ 75,101 $ 142,367 $ 67,266
103
CITY OF LA PORTE, TEXAS
2002 General Obligation Bonds Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances
Budget and Actual
For The Year Ended September 30, 2008
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Interest $ 1,500 $ 1,500 $ 3,892 $ 2,392
Miscellaneous 8,142 8,142
Total revenues 1,500 1,500 12,034 10,534
Excess (deficiency) of revenues over
expenditures 1,500 1,500 12,034 10,534
Net change in fund balances 1,500 1,500 12,034 10,534
Fund balances-beginning 29,438 29,438 29,438
Fund balances-ending $ 30,938 $ 30,938 $ 41,472 $ 10,534
104
CITY OF LA PORTE, TEXAS
2004 Certificate of Obligation Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances
Budget and Actual
For The Year Ended September 30, 2008
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Intergovernmental $ $ $ 234,630 $ 234,630
Interest 13,100 13,100 48,180 35,080
Total revenues 13,100 13,100 282,810 269,710
Net change in fund balances 13,100 13,100 282,810 269,710
Fund balances--beginning 1,163,236 1,163,236 1 ,163,236
Fund balances-ending $ 1,176,336 $ 1,176,336 $ 1,446,046 $ 269,710
105
CITY OF LA PORTE, TEXAS
2005 General Obligation Bonds Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances
Budget and Actual
For The Year Ended September 30, 2008
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Interest $ 2,300 $ 2,300 $ 76,376 $ 74,076
EXPENDITURES
Current:
Administration 51,173 (51,173)
Public Safety 216,813 (216,813)
Total expenditures 267,986 (267,986)
Net change in fund balances 2,300 2,300 (191,610) (193,910)
Fund balances-beginning 489,673 489,673 489,673
Fund balances-ending $ 491,973 $ 491,973 $ 298,063 $ (193,910)
106
CITY OF LA PORTE, TEXAS
2005 Certificate of Obligation Bonds Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances
Budget and Actual
For The Year Ended September 30, 2008
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Interest $ 2,800 $ 2,800 $ 49,533 $ 46,733
EXPENDITURES
Health and Sanitation 147,526 (147,526)
Capital Outlay 60,000 60,000 179,625 (119,625)
Total expenditures 60,000 60,000 327,151 (267,151)
Net change in fund balances (57,200) (57,200) (277,618) (220,418)
Fund balances-beginning 727,661 727,661 727,661
Fund balances-ending $ 670,461 $ 670,461 $ 450,043 $ (220,418)
107
CITY OF LA PORTE, TEXAS
2006 Certificate of Obligation Bonds Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances
Budget and Actual
For The Year Ended September 30, 2008
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Interest $ 10,000 $ 10,000 $ 194,712 $ 184,712
EXPENDITURES
Capital Outlay 19,138 (19,138)
Total expenditures 19,138 (19,138)
Excess (deficiency) of revenues over
expenditures 10,000 10,000 175,574 165,574
OTHER FINANCING SOURCES (USES)
Transfers in 662,000 662,000
Total other financing sources (uses) 662,000 662,000
Net change in fund balances 10,000 10,000 837,574 827,574
Fund balances-beginning 2,439,211 2,439,211 2,439,211
Fund balances-ending $ 2,449,211 $ 2,449,211 $ 3,276,785 $ 827,574
108
CITY OF LA PORTE, TEXAS
2006 General Obligation Bonds Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances
Budget and Actual
For The Year Ended September 30, 2008
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Interest $ 5,000 $ 5,000 $ 56,726 $ 51 ,726
EXPENDITURES
Capital Outlay 49,478 110,389 96,384 14,005
Total expenditures 49,478 110,389 96,384 14,005
Net change in fund balances (44,478) (105,389) (39,658) 65,731
Fund balances-beginning 1,221,842 1,221,842 1,221,842
Fund balances--ending $ 1,177,364 $ 1,116,453 $ 1,182,184 $ 65,731
]09
CITY OF LA PORTE, TEXAS
Debt Service Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances
Budget and Actual
For The Year Ended September 30, 2008
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Property taxes $ 1,779,170 $ 1,779,170 $ 1,942,675 $ 163,505
Interest 117,000 117,000 86,927 (30,073)
Total revenues 1,896,170 1,896,170 2,029,602 133,432
EXPENDITURES
Debt Service:
Principal 1,655,000 1,655,000 1,655,000
Interest 1,822,278 1,822,278 1,724,468 97,810
Total expenditures 3,477,278 3,477,278 3,379,468 97,810
Excess (deficiency) of revenues over
expenditures (1,581,108) (1,581,108) (1,349,866) 231,242
OTHER FINANCING SOURCES (USES)
Transfers in 1,423,953 1,423,953 1,423,953
Total other financing sources (uses) 1,423,953 1,423,953 1,423,953
Net change in fund balances (157,155) (157,155) 74,087 231,242
Fund balances-beginning 1,925,755 1,925,755 1,925,755
Fund balances--ending $ 1,768,600 $ 1,768,600 $ 1,999,842 $ 231,242
110
CITY OF LA PORTE, TEXAS
2007 Certificate of Obligation Bonds Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances
Budget and Actual
For The Year Ended September 30, 2008
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Interest $ 178,000 $ 178,000 $ 274,542 $ 96,542
EXPENDITURES
Health and Sanitation 227,826 (227,826)
Capital Outlay 305,261 533,040 3,092,959 (2,559,919)
Debt Service:
Interest and fiscal charges 33,421 (33,421 )
Total expenditures 305,261 533,040 3,354,206 (2,821,166)
Net change in fund balances (127,261) (355,040) (3,079,664) (2,724,624)
Fund balances-beginning 8,048,779 8,048,779 8,048,779
Fund balances-ending $ 7,921,518 $ 7,693,739 $ 4,969.115 $ (2,724,624)
111
CITY OF LA PORTE, TEXAS
Capital Projects Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances
Budget and Actual
For The Year Ended September 30, 2008
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Charges for Services $ 639,740 $ 639,740 $ 39,739 $ (600,001)
Interest 66,900 66,901 90,454 23,553
Total revenues 706,640 706,641 130,193 (576,448)
EXPENDITURES
Capital Outlay 855,000 6,420,010 1,105,767 5,314,243
Total expenditures 855,000 6,420,010 1,105,767 5,314,243
Excess (deficiency) of revenues over
expenditures (148,360) (5,713,369) (975,574) 4,737,795
OTHER FINANCING SOURCES (USES)
Transfers in 4,870,142 4,758,745 111,397
Total other financing sources (uses) 4,870,142 4,758,745 111,397
Net change in fund balances (148,360) (843,227) 3,783,171 4,626,398
Fund balances-beginning 1,937,644 1,937,644 1,937,644
Fund balances-ending $ 1,789,284 $ 1,094,417 $ 5,720,815 $ 4,626,398
112
114
SUPPLEMENTARY INDIVIDUAL FUND FINANCIAL
STATEMENTS AND SCHEDULES
General Fund
These supplementary statements and schedules are included to provide management additional information for
financial analysis.
115
CITY OF LA PORTE, TEXAS
General Fund
Schedule of Revenues - Budget and Actual
Year Ended September 30,2008
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
Taxes:
Ad valorem:
Current $10,764,524 $ 11,275,000 $ 11,578,983 $ 303,983
Delinquent 150,000 150,000 188,535 38,535
Industrial Payments 7,500,000 7,659,904 7,759,647 99,743
Total ad valorem 18,414,524 19,084,904 19,527,165 442,261
Penalty and interest 136,000 136,000 162,374 26,374
Sales Taxes 2,882,538 3,085,011 3,040,148 (44,863)
Other Taxes 62,727 75,150 80,902 5,752
Franchise Fees:
Electrical 1,276,330 1,262,373 1,266,789 4,416
Gas 176,316 142,968 183,823 40,855
Telephone 217,633 238,678 284,662 45,984
Cable 205,116 250,876 344,577 93,701
Commercial Solidwaste 70,594 77,300 85,492 8,192
Total Franchise Fees 1,945,989 1,972,195 2,165,343 193,148
Charges for Services:
Public safety service fees 1,273,696 1,159,215 1,032,802 (126,413)
Health and sanitation service fees 1,811,712 1,899,350 1,888,934 (10,416)
Culture and recreation fees 484,034 426,888 418,172 (8,716)
Other service fees 339,171 1,153,293 555,945 (597,348)
Total Charges for Services 3,908,613 4,638,746 3,895,853 (742,893)
Intergovernmental 6,053 6,000 4,903 (1,097)
Licenses and permits:
Building permits 637,775 541,684 526,860 (14,824)
Licenses 31,655 33,418 32,943 (475)
Total Licenses and permits 669,430 575,102 559,803 (15,299)
Investment income 770,400 660,870 646,545 (14,325)
Fines and forfeitures 755,106 1,409,492 1,557,045 147,553
Miscellaneous 25,105 30,000 50,010 20,010
Total revenues $ 29,576,485 $ 31,673,470 $ 31,690,091 $ 16,621
116
CITY OF LA PORTE, TEXAS
General Fund
Schedule of Expenditures - Budget and Actual
Year Ended September 30,2008
(Continued)
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
GENERAL GOVERNMENT
Administration:
Emergency Management:
Personal services $ 140,970 $ 151,476 $ 150,566 $ 910
Supplies 12,575 23,489 20,128 3,361
Other services and charges 75,671 92,781 95,279 (2,498)
Total Emergency Management 229,216 267,746 265,973 1,773
General Administration:
Personal services 504,446 451,246 447,477 3,769
Supplies 7,750 6,266 5,393 873
Other services and charges 68,177 73,344 72,941 403
Total General Administration 580,373 530,856 525,811 5,045
Human Resources:
Personal services 186,728 179,553 176,563 2,990
Supplies 10,200 9,350 9,269 81
Other services and charges 140,715 140,036 141,281 (1,245)
Total Human Resources 337,643 328,939 327,113 1,826
Municipal Court:
Personal services 320,071 381,042 376,432 4,610
Supplies and materials 19,186 19,674 16,596 3,078
Other services and charges 248,804 217,555 216,695 860
Capital outlay 900 900 900
Total Municipal Court 588,961 619,171 609,723 9,448
Purchasing:
Personal services 208,232 205,977 204,940 1,037
Supplies 5,130 5,109 5,495 (386)
Other services and charges 35,219 35,017 35,004 13
Total Purchasing 248,581 246,103 245,439 664
City Secretary:
Personal services 281,537 284,433 282,840 1,593
Supplies and materials 5,247 4,369 2,615 1,754
Other services and charges 106,489 86,260 86,281 (21 )
Total City Secretary 393,273 375,062 371,736 3,326
117
CITY OF LA PORTE, TEXAS
General Fund
Schedule of Expenditures - Budget and Actual
Year Ended September 30,2008
(Continued)
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
Legal:
Personal services 7,793 7,793 7,793
Other services and charges 181,604 154,754 153,995 759
Total Legal 189,397 162,547 161,788 759
City Council:
Personal services 24,544 21 ,730 21,601 129
Supplies and materials 18,050 9,600 9,377 223
Other services and charges 42,752 27,140 26,173 967
Total City Council 85,346 58,470 57,151 1,319
Total Administration 2,652,790 2,588,894 2,564,734 24,160
Finance:
Accounting:
Personal services 590,490 616,318 612,870 3,448
Supplies 19,850 14,969 14,951 18
Other services and charges 219,238 223,567 222,183 1,384
Total Accounting 829,578 854,854 850,004 4,850
Nondepartmental:
Personal services 594,571 869,599 840,059 29,540
Supplies 8,500 7,375 (187) 7,562
Other services and charges 2,123,662 591,544 598,687 (7,143)
Total Nondepartmental 2,726,733 1,468,518 1,438,559 29,959
Tax Office:
Personal services 200,622 207,286 205,912 1,374
Supplies and materials 13,418 13,683 11,341 2,342
Other services and charges 190,387 187,554 185,196 2,358
Total Tax Office 404,427 408,523 402,449 6,074
Total Finance 3,960,738 2,731,895 2,691,012 40,883
Planning and Engineering:
Planning and Engineering:
Personal services 802,265 793,644 787,886 5,758
Supplies 18,461 14,515 13,883 632
Other services and charges 122,518 126,137 121,195 4,942
Capital Outlay 65,000 65,000 64,900 100
Total Planning and Engineering 1,008,244 999,296 987,864 11 ,432
Inspection:
Personal services 612,072 615,664 612,083 3,581
Supplies 22,645 22,558 22,483 75
Other services and charges 245,786 189,548 166,457 23,091
Total Inspection 880,503 827,770 801,023 26,747
Total Planning and Engineering 1,888,747 1,827,066 1,788,887 38,179
TOTAL GENERAL GOVERNMENT 8,502,275 7,147,855 7,044,633 103,222
118
CITY OF LA PORTE, TEXAS
General Fund
Schedule of Expenditures - Budget and Actual
Year Ended September 30, 2008
(Continued)
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
PUBLIC SAFETY:
Fire
Fire Prevention:
Personal services 175,838 178,288 175,848 2,440
Supplies 16,808 14,900 14,820 80
Other services and charges 49,012 48,865 45,702 3,163
Total Fire Prevention 241,658 242,053 236,370 5,683
Fire suppression:
Personal services 1,228,245 1,238,843 1,230,636 8,207
Supplies 133,698 147,700 158,625 (10,925)
Other services and charges 539,757 502,076 502,004 72
Capital Outlay 9,000 5,900 5,900
Total Fire Suppression 1,910,700 1,894,519 1,891,265 3,254
Emergency medical services:
Personal services 1,449,481 1,453,825 1,450,036 3,789
Supplies 122,212 134,791 134,900 (109)
Other services and charges 223,751 215,191 214,721 470
Total Emergency Services 1,795,444 1,803,807 1,799,657 4,150
Total Fire 3,947,802 3,940,379 3,927,292 13,087
Police
Police Administration:
Personal services 519,396 497,828 492,369 5,459
Supplies 22,312 23,135 23,062 73
Other services and charges 381,379 240,766 238,652 2,114
Total Police Administration 923,087 761,729 754,083 7,646
Police Patrol:
Personal services 4,619,131 4,920,740 4,898,437 22,303
Supplies 182,247 251,570 251,675 (105)
Other services and charges 542,917 511,265 510,621 644
Total Police Patrol 5,344,295 5,683,575 5,660,733 22,842
Criminal Investigation:
Personal services 1,470,415 1,346,050 1,338,511 7,539
Supplies 49,978 45,681 45,143 538
Other services and charges 185,716 184,211 183,148 1,063
Total Criminal Investigation 1,706,109 1,575,942 1,566,802 9,140
119
CITY OF LA PORTE, TEXAS
General Fund
Schedule of Expenditures - Budget and Actual
Year Ended September 30,2008
(Continued)
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
Support Services:
Personal services 729,943 647,465 643,826 3,639
Supplies 62,823 63,805 63,649 156
Other services and charges 106,293 98,737 98,653 84
Total Support Services 899,059 810,007 806,128 3,879
Total Police 8,872,550 8,831,253 8,787,746 43,507
TOTAL PUBLIC SAFETY 12,820,352 12,771,632 12,715,038 56,594
PUBLIC WORKS:
Public Works Administration:
Personal services 241,285 248,808 247,548 1,260
Supplies and materials 3,700 4,291 4,279 12
Other services and charges 92,840 89,337 88,210 1,127
Total Public Works Administration 337,825 342,436 340,037 2,399
Streets:
Personal services 1,441,221 1,447,592 1,440,564 7,028
Supplies 149,849 149,737 153,306 (3,569)
Other services and charges 670,492 628,609 634,822 (6,213)
Capital outlay 53,000 63,423 59,185 4,238
Total Streets 2,314,562 2,289,361 2,287,877 1,484
TOTAL PUBLIC WORKS 2,652,387 2,631,797 2,627,914 3,883
HEALTH AND SANITATION:
Residential Solidwaste:
Personal services 1,014,459 986,601 980,251 6,350
Supplies 248,024 266,544 264,428 2,116
Other services and charges 735,066 811,907 824,858 (12,951)
Total Residential Solidwaste 1,997,549 2,065,052 2,069,537 (4,485)
Commercial solidwaste:
Other services and charges 25,000 25,000 19,852 5,148
TOT AL HEALTH AND SANITATION 2,022,549 2,090,052 2,089,389 663
CUL TURE & RECREATION:
Park Maintenance:
Personal services 945,427 946,150 941,569 4,581
Supplies and materials 91,762 122,153 121,375 778
Other services and charges 727,128 694,870 694,326 544
Capital outlay 26,200 9,656 7,000 2,656
Total Park Maintenance 1,790,517 1,772,829 1,764,270 8,559
120
CITY OF LA PORTE, TEXAS
General Fund
Schedule of Expenditures - Budget and Actual
Year Ended September 30,2008
(Continued)
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
Recreation:
Personal services 467,231 483,895 481,665 2,230
Supplies 39,217 39,077 39,029 48
Other services and charges 172,916 165,616 165,517 99
Total Recreation 679,364 688,588 686,211 2,377
Special Services:
Personal services 368,057 368,939 357,968 10,971
Supplies 22,980 26,664 26,501 163
Other services and charges 79,299 62,385 58,545 3,840
Total Special Services 470,336 457,988 443,014 14,974
Parks Administration:
Personal Services 399,276 406,829 404,418 2,411
Supplies 9,860 10,000 7,644 2,356
Other services and charges 39,456 33,486 33,469 17
Total Parks Administration 448,592 450,315 445,531 4,784
TOT AL CULTURE AND RECREATION 3,388,809 3,369,720 3,339,026 30,694
TOTAL GENERAL FUND $ 29,386,372 $ 28,011,056 $27,816,000 $ 195,056
121
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.
122
CITY OF LA PORTE, TEXAS
Combining Statement of Net Assets
Nonmajor Proprietary Funds
For the year ended September 30, 2008
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 $ 203,994 $ 133,222 $ 1,500 $ 338,716
Investments 41,837 79,745 121,582
Receivables, net of
allowance for uncollectibles 19,830 7,418 27,248
Accrued interest receivable 282 297 579
Due from other funds 1,267 2,971 4,238
Restricted cash and cash equivalents:
Customer service deposits 45,861 45,861
Total current assets 265,943 260,392 11,889 538,224
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 5,725,145 2,547,922 8,273,067
Vehicles and equipment 91,130 91,130
Construction in progress 34,905 256,182 291,087
Less accumulated depreciation (2,621,244 ) (337,050) (2,448,682) (5,406,976)
Total noncurrent assets 3,307,405 81,441 3,059,041 6,447,887
Total assets 3,573,348 341,833 3,070,930 6,986,111
LIABILITIES
Current liabilities:
Accounts payable 2,750 13,157 35,193 51,100
Due to other funds 37,548 37,548
Accrued salaries payable 3,264 21,967 25,231
Unearned revenue 19,153 19,153
Other current liabilities 1,500 6,940 8,440
Payable from restricted assets:
Customer deposits 37,485 37,485
Total current liabilities 4,250 73,059 101,648 178,957
Noncurrent liabilities:
Accrued separation pay 4,604 139,046 143,650
Total noncurrent liabilities 4,604 139,046 143,650
Total liabilities 4,250 77,663 240,694 322,607
NET ASSETS
Invested in capital assets, net of related debt 3,307,405 81,441 3,059,041 6,447,887
Unrestricted (deficit) 261,693 182,729 (228,805) 215,617
Total net assets $ 3,569,098 $ 264,170 $ 2,830,236 $ 6,663,504
123
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, 2008
Business-type Activities -
Enterprise Funds
Total
Sylvan Beach Nonmajor
Convention Bay Forest Proprietary
Airport Center Golf Course Funds
Operating revenues:
User fees $ 64,639 $ 161,342 $ 1,031,822 $1,257,803
Operating expenses:
Personal services 155,868 862,182 1,018,050
Supplies 5,145 183,745 188,890
Other services and charges 19,048 49,468 179,687 248,203
Depreciation 136,922 14,872 136,356 288,150
Total operating expenses 155,970 225,353 1,361,970 1 ,743,293
Operating loss (91,331 ) (64,011 ) (330,148) (485,490)
Nonoperating revenues (expenses):
Interest income 6,746 8,479 6,134 21,359
Total nonoperating revenue (expenses) 6,746 8,479 6,134 21,359
Loss before contributions
and transfers (84,585) (55,532) (324,014) (464,131)
Capital contributions 1,221,060 256,182 1,477,242
Transfers in 68,914 65,585 134,499
Transfers out (855) (3,669) (29,193) (33,717)
Change in net assets 1,135,620 9,713 (31,440) 1,113,893
Total net asset~beginning 2,433,478 254,457 2,861,676 5,549,611
Total net asset~nding $ 3,569,098 $ 264,170 $ 2,830,236 $ 6,663,504
124
CITY OF LA PORTE, TEXAS
Combining Statement of Cash Flows
Nonmajor Proprietary Funds
For The Year Ended September 30, 2008
Business-type Activities -
Enterprise Funds
Total
Sylvan Beach Nonmajor
Convention Bay Forest Proprietary
Airport Center Golf Course Funds
CASH FLOWS FROM OPERATING ACTMTIES
Cash receiwd from user fees $ 48,057 $ 112,310 $ 1,021,433 $ 1,181,800
Cash payments to suppliers (17,320) (46,761) (301,800) (365,881)
Cash payments for personal services (156,089) (870,822) (1,026,911 )
Net cash provided (used) by operating activities 30,737 (90,540) (151,189) (210,992)
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
Transfers from other funds 68,914 65,585 134,499
Transfers to other funds (855) (3,669) (29,193) (33,717)
Net cash provided (used) by noncapital financing activies (855) 65,245 36,392 100,782
CASH FLOWS FROM INVESTING ACTIVITIES
Interest on investments 7,562 9,622 6,714 23,898
Net Investments purchased (82,864) (67,111) (149,975)
Net Investments sold 111,411 64,590 36,774 212,775
Net cash provided (used) by investing activities 36,109 7,101 43,488 86,698
Net increase (decrease) in cash and cash equivalents 65,991 (18,194) (71,309) (23,512)
Balances-beginning of the year 138,003 197,277 72,809 408,089
Balances-€nd of the year $ 203,994 $ 179,083 $ 1,500 $ 384,577
Reconciliation of operating income (loss) to net cash
provided (used) by operating activities:
Operating income (loss) $ (91,331 ) $ (64,011 ) $ (330,148) $ (485,490)
Adjustments to reconcile operating income to net cash
provided (used) by operating activities:
Depreciation expense 136,922 14,872 136,356 288,150
(Increase) decrease in accounts receivable (16,582) 1,250 (7,418) (22,750)
(Increase) decrease in due from other funds ( 1,267) (2,971) (4,238)
Increase (decrease) in accrued salaries payable 842 6,327 7,169
Increase (decrease) in accounts payable 1,728 7,852 23,252 32,832
Increase (decrease) in other current liabilities (29,630) 832 (28,798)
Increase (decrease) in customer utility deposits (19,385) (19,385)
Increase (decrease) due to other funds 37,548 37,548
Increase (decrease) in accrued employee separation (1,063) (14,967) (16,030)
Total adjustments 122,068 (26,529) 178,959 274,498
Net cash provided by operating activities $ 30,737 $ (90,540) $ (151,189) $ (210,992)
Reconciliation of total cash and cash investments:
Current Assets - cash and cash equivalents $ 203,994 $ 133,222 $ 1,500 $ 338,716
Restricted Assets - cash and cash equivalents 45,861 45,861
Total cash and cash equivalents $ 203,994 $ 179,083 $ 1,500 $ 384,577
Noncash investing, capital and financing activities:
Increase in fair value of assets $ (100) $ (81) $ $ (181)
125
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.
]26
CITY OF LA PORTE, TEXAS
Internal Service Funds
Combining Statement of Net Assets
For the year ended September 30, 2008
Motor
Pool Technology Insurance Totals
ASSETS
Current assets:
Cash and cash equivalents $ 2,802,671 $ 760,739 $ 2,664,814 $ 6,228,224
Investments 529,454 143,728 501,444 1,174,626
Accrued interest receivable 3,820 984 3,616 8,420
Miscellaneous Receivable 198,814 198,814
Due from other funds 23,757 3,197 26,954
Material and supplies inventories, at cost 43,836 43,836
Total current assets 3,403,538 908,648 3,368,688 7,680,874
Noncurrent assets:
Capital assets
Vehicles and equipment 10,643,150 1,180,060 11,823,210
Less accumulated depreciation (7,229,535) (1,053,797) (8,283,332)
Total noncurrent assets 3,413,615 126,263 3,539,878
Total assets 6,817,153 1,034,911 3,368,688 11,220,752
LIABILITIES
Current liabilities:
Accounts payable 66,210 79,037 712,133 857,380
Accrued salaries payable 14,829 5,860 20,689
Deferred revenue 879 879
Total current liabilities 81,039 84,897 713,012 878,948
Noncurrent liabilities:
Accrued employee separation pay 101,261 101,261
Total noncurrent liabilities 101,261 101,261
Total liabilities 182,300 84,897 713,012 980,209
NET ASSETS
Invested in capital assets, net of related debt 3,413,615 126,263 3,539,878
Unrestricted 3,221,238 823,751 2,655,676 6,700,665
Total net assets $ 6,634,853 $ 950,014 $ 2,655,676 $ 10,240,543
127
CITY OF LA PORTE, TEXAS
Internal Service Funds
Combining Statement of Revenues, Expenses and Changes in Fund Net Assets
For The Year Ended September 30, 2008
Motor
Pool Technology Insurance Totals
Operating revenues:
User Fees $ 1,908,411 $ 1,073,541 $ 3,996,495 $ 6,978,447
Miscellaneous 3,599 3,599
Cable Fees 45,325 45,325
Total operating revenues 1,912,010 1,118,866 3,996,495 7,027,371
Operating expenses:
Personal services 661,972 318,785 381,876 1,362,633
Supplies 325,910 232,804 264 558,978
Other sevices and charges 379,154 705,073 4,445,383 5,529,610
Depreciation 743,593 31,878 775,471
Total operating expenses 2,110,629 1,288,540 4,827,523 8,226,692
Operating income {loss} {198,619} {169,674} {831,028} {1,199,321}
Nonoperating revenues:
Interest income 94,814 27,200 81,940 203,954
Gain on sale of equipment 26,842 26,842
Total nonoperating revenues 121,656 27,200 81,940 230,796
Income before transfers {76,963} {142,474} {749,088} {968,525}
Transfers in 17,043 5,674 825,817 848,534
Transfers out {21,822} {699} (22,521 )
Change in net assets {81,742} {137,499} 76,729 (142,512)
Net assets-beginning 6,716,595 1,087,513 2,578,947 10,383,055
Net asset5-€nding $ 6,634,853 $ 950,014 $ 2,655,676 $10,240,543
128
CITY OF LA PORTE, TEXAS
Internal Service Funds
Combining Statement of Cash Flows
For The Year Ended September 30, 2008
Motor
Pool Technology Insurance Totals
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from user fees $ 1,888,253 $ 1,115,669 $ 3,801,535 $ 6,805,457
Cash payments to suppliers (715,311) (898,780) (4,265,866) (5,879,957)
Cash payments for personal services (693,087) (319,800) (381,876) (1,394,763)
Net cash provided by operating activities 479,855 (102,911) (846,207) (469,263)
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Transfers in from other funds 17,043 5,674 825,817 848,534
Transfers out to other funds (21,822) (699) (22,521)
Net cash provided (used) by noncapital
financing activies (4,779) 4,975 825,817 826,013
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES
Payments for capital acquisitions (355,292) (5,793) (361,085)
Proceeds from sale of assets 74,115 74,115
Net cash (used) by capital and related
financing activies (281,177) (5,793) (286,970)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest on investments 107,040 31,385 94,705 233,130
Investments purchased (1,048,656) (284,673) (993,178) (2,326,507)
Investments sold 1,542,997 470,867 1,535,767 3,549,631
Net cash provided (used) by investing activities 601,381 217,579 637,294 1,456,254
Net increase in cash and cash equivalents 795,280 113,850 616,904 1,526,034
Balances-beginning of the year 2,007,391 646,889 2,047,910 4,702,190
Balan~d of the year $ 2,802,671 $ 760,739 $ 2,664,814 $ 6,228,224
Reconciliation of operating income (loss) to
net cash provided (used) by operating activities:
Operating income (loss) $ (198,619) $ (169,674) $ (831,028) $ (1,199,321)
Adjustments to reconcile operating income (loss)
to net cash provided by operating activities:
Depreciation expense 743,593 31,878 775,471
(Increase) decrease in accounts receivable (3,197) (194,145) (197,342)
(increase) decrease in due from other funds (23,757) (23,757)
(Increase) decrease in inventories (2,430) (2,430)
Increase (decrease) in accrued salaries payable 3,721 (1,013) 2,708
Increase (decrease) in accounts payable (7,817) 39,095 179,781 211,059
Increase (decrease) in deferred revenue (815) (815)
Increase (decrease) in accrued employee
separation (34,836) (34,836)
Total adjustments 678,474 66,763 (15,179) 730,058
Net cash provided by operating activities $ 479,855 $ (102,911) $ (846,207) $ (469,263)
Noncash investing, capital and financing activities:
Increase in fair value of assets $ (1,262) $ (343) $ (1,195) $ (2,800)
129
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.
130
131
CITY OF LA PORTE, TEXAS
Capital Assets Used in the Operation of Governmental Funds
Schedule by Source
For The Year Ended September 30, 2008
Governmental funds capital assets
land
Buildings
Equipment
Improvements
I nfrastructu re
Construction in progress
$ 8,108,756
30,801,244
2,112,425
8,165,380
31,677,569
2,052,990
Total governmental funds capital assets
$ 82,918,364
Investment in governmental funds capital assets by source
Current Operations
Capital Projects
Section 4B Sales Tax
$ 16,881,487
64,711,771
1,325,106
Total governmental funds capital assets
$ 82,918,364
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
CITY OF LA PORTE, TEXAS
Capital Assets Used in the Operation of Governmental Funds
Schedule by Function and Activity
September 30, 2008
Function and Activity Land Buildings Equipment Improvements
General Government
Administration $ 880,239 $ 6,688,329 $ 309,678 $ 407,287
Finance
Planning 399,789 19,922
Total general govemment 1,280,028 6,688,329 329,600 407,287
Public Safety
Fire 756,606 7,621,626 734,480 28,422
Police 45,089 9,740,615 736,651 74,505
Total Public Safety 801,695 17,362,241 1,471,131 102,927
Public Works
Adminstration 2,760,405 2,112,774 117,012 182,090
Streets
Total Public Works 2,760,405 2,112,774 117,012 182,090
Cultural and Recreational
Parks and Recreation 3,266,628 4,637,900 194,682 7,473,076
Total governmental funds
capital assets $ 8,108,756 $ 30,801,244 $ 2,112,425 $ 8,165,380
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.
133
Construction
Infrastructure in Progress Total
$ $ 290,849 $ 8,576,382
255,388 809,116 1,484,215
255,388 1,099,965 10,060,597
227,404 9,368,538
10,596,860
227,404 19,965,398
14,562,012 482,761 20,217,054
16,762,090 16,762,090
31,324,102 482,761 36,979,144
98,079 242,860 15,913,225
$ 31,677,569 $ 2,052,990 $ 82,918,364
134
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, 2008
Governmental Governmental
Fund Capital Fund Capital
Assets Assets
October 1, Additions! Retirements! September 30,
Function and Activity 2007 Adjustments Adjustments 2008
General government
Administration $ 8,263,198 $ 313,184 $ $ 8,576,382
Planning 1,320,166 164,049 1,484,215
Total general government 9,583,364 477,233 10,060,597
Public safety
Fire 9,026,792 375,167 (33,421 ) 9,368,538
Police 10,458,226 144,058 (5,423) 10,596,861
Total public safety 19,485,018 519,225 (38,844) 19,965,399
Public works
Administration 20,133,593 1,522,672 (1,439,212) 20,217,053
Streets 16,515,354 246,736 16,762,090
Total public works 36,648,947 1,769,408 (1,439,212) 36,979,143
Cultural and Recreational
Parks and recreation 15,467,650 445,575 15,913,225
Total governmental funds
capital assets $ 81,184,979 $ 3,211,441 $ (1,478,056) $ 82,918,364
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.
135
STATISTICAL SECTION
This part of the City of La Porte's Comprehensive Annual Financial Report presents detailed
information as a context for understanding what the information in the financial statements, note
disclosures, and required supplementary information says about the government's overall financial
health.
Contents Page
Financial Trends 138
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 147
These schedules contain information to help the reader assess the
government's most significant local revenue source, the property tax.
Debt Capacity 153
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 159
These schedules offer demographic and economic indicators to help the
reader understand the environment within which the government's financial
activities take place.
Operating Information 162
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.
136
137
City of La Porte, Texas
Net Assets by Component
Last Six Fiscal Years
(accrual basis of accounting)
(unaudited)
Fiscal Year
2003 2004 2005 2006 2007 2008
Governmental activities
Invested in capital assets,
net of related debt $ 23,400,108 $ 32,752,971 $ 28,933,050 $ 28,424,345 $ 27,529,009 $24,922,673
Restricted 5,804,419 5,770,840 6,642,077 7,363,187 13,316,591 16,566,966
Unrestricted 23,953,457 12,997,982 19,369,700 18,983,653 19,985,983 18,985,215
Total governmental activities net assets $ 53,157,984 $ 51,521,793 $ 54,944,827 $ 54,771,185 $ 60,831,583 $60,474,854
Business-type activities
Invested in capital assets,
net of related debt $ 26,109,776 $ 25,996,416 $ 26,589,684 $ 29,642,136 $ 29,481,368 $35,483,003
Restricted 3,042,730 3,662,800 3,407,445 2,185,791 2,184,725 2,188,240
Unrestricted 4,709,368 2,647,090 1,264,814 3,396,751 3,295,501 3,799,361
Total business-type activities net assets $ 33,861,874 $ 32,306,306 $ 31,261,943 $ 35,224,678 $ 34,961,594 $41,470,604
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 $60,405,676
Restricted 8,847,149 9,433,640 10,049,522 9,548,978 15,501,316 18,755,206
Unrestricted 28,662,825 15,645,072 20,634,514 22,380,404 23,281,484 22,784,576
Total primary govemment net assets $ 87,019,858 $ 83,828,099 $ 86,206,770 $ 89,995,863 $ 95,793,177 $101,945,458
Note: The City of La Porte first applied GASB Statement 34 in fiscal year 2003; therefore, govemment-wide financial
information for years prior to fiscal year 2003 is not available.
138
City of La Porte, Texas
Changes in Net Assets
Last Six Fiscal Years
(accrual basis of accounting)
(unaudited)
Fiscal Year
2003 2004 2005 2006 2007 2008
Expenses
Governmental activities:
General Government $ 8,625,554 $ 10,487,889 $ 7,411,122 $ 7,348,812 $ 8,410,865 $ 10,056,369
Public Safety 10,771,423 11,947,286 10,367,759 11,602,951 12,153,324 16,267,453
Public Works 3,638,063 1,267,829 5,164,855 5,209,686 3,668,425 4,348,281
Health and Sanitation 1,823,462 1,906,519 1,887,204 1,862,368 2,487,531 2,465,327
Culture and Recreation 4,048,974 4,106,491 3,717,791 3,579,917 3,120,183 4,004,206
Interest on Long-term debt 747,351 689,644 863,818 1,226,231 1,352,747 1,694,638
Total governmental activities expenses 29,654,827 30,405,658 29,412,549 30,829,965 31,193,075 38,836,274
Business-type activities:
Water Services 6,339,238 6,256,424 6,477,962 6,844,635 6,548,382 6,630,986
Sewer Services 1,913,284 1,895,709 1,819,756 1,894,415 2,086,651 2,247,031
Airport 149,472 142,765 157,186 122,548 123,904 155,970
Bay Forest Golf Course 1,284,729 1,222,819 1,242,613 1,285,121 1,310,589 1,361,970
Sylvan Beach Convention Center 212,947 194,314 211,682 214,552 218,053 225,353
Total business-type expenses 9,899,670 9,712,031 9,909,199 10,361,271 10,287,579 10,621,310
Total primary government expenses $ 39,554,497 $ 40,117,689 $ 39,321,748 $ 41,191,236 $ 41,480,654 $ 49,457,584
Program Revenues
Governmental activities:
Charges for services:
General government $ 660,955 $ 528,296 $ 670,332 $ 1,002,267 $ 2,006,607 $ 2,724,739
Public safety 1,689,780 1,441,662 1,498,310 1 ,333,005 435,128 591,101
Public works 1,481,061 106,026 24,242
Health and sanitation 830,991 463,629 1,429,617 1,770,611 1,856,013 1,888,934
Culture and recreation 657,784 1,157,449 460,796 429,971 418,143 417,836
Operating grants and contributions 480,037 576,262 2,639,934 1,031,408 991,679 4,647,718
Capital grants and contributions 234,630
Total governmental activities program revenues 5,800,608 4,273,324 6,723,231 5,567,262 5,707,570 10,504,958
BUSiness-type activities:
Charges for services
Water services 4,157,556 4,155,589 4,500,140 5,438,932 4,789,854 6,132,716
Sewer services 2,493,284 2,493,134 2,591,406 2,842,495 2,763,715 3,670,202
Airport 30,001 32,728 32,728 35,624 42,359 64,639
Golf course 943,493 1,022,103 965,983 955,867 911,371 1,031,822
Sylvan beach convention center 161,355 180,642 163,859 162,508 189,290 161,342
Capital grants and contributions 1,060,948 2,337,630
Total business-type program revenues 7,785,689 7,884,196 8,254,116 9,435,426 9,757,537 13,398,351
Total primary government program revenues $ 13,586,297 $ 12,157,520 $ 14,977,347 $ 15,002,688 $ 15,465,107 $ 23,903,309
]39
Fiscal Year
2003 2004 2005 2006 2007 2008
Net (expense)/revenue
Governrnental activities: $ (23,854,219) $ (26,132,334) $ (22,689,318) $ (25,262,703) $ (25,485,505) $ (28,331,316)
Business-type activities: (2,113,981) (1,827,835) (1,655,083) (925,845) (530,042) 2,777,041
Total primary government net expense $ (25,968,200) $ (27,960,169) $ (24,344,401) $ (26,188,548) $ (26,015,547) $ (25,554,275)
General Revenues and Other Changes in
Net Assets
Governmental activities:
Taxes
Property taxes, levied for general purposes $ 8,797,886 $ 9,139,422 $ 10,192,599 $ 10,535,316 $ 11,246,050 $ 11,802,564
Property taxes, levied for debt service 2,070,120 1,922,117 1,623,095 1,661,801 1,819,554 1,880,095
Industrial payments 7,276,821 6,896,112 6,991,926 7,659,591 8,188,891 7,958,522
Franchise taxes 1,682,849 1,718,875 1,885,801 1,986,698 2,003,691 2,165,343
Sales tax 3,037,574 3,263,459 3,459,979 4,067,767 5,735,725 5,803,077
Unrestricted investment earnings 542,254 376,359 720,137 1,874,828 2,386,980 1,782,572
Grants not specified for specific program 75,189
Miscellaneous 704,886 495,102 753,595 1,137,928 89,400 115,351
Gain/(Ioss) on sale/retirernent of capital assets (260,545) 103,594
Transfers (253,629) 684,697 381,625 (3,910,056) 75,612 (3,532,936)
Total governmental activities 23,598,216 24,496,143 26,112,351 25,089,062 31,545,903 27,974,588
Business-type activities
Unrestricted investment earnings 121,174 88,602 165,162 300,099 342,566 199,060
Miscellaneous 889,298 874,146 827,183 694,507
Gain/(Ioss) on sale/retirement of capital assets (5,784) (16,083)
Transfers 253,629 (684,697) (381,625) 3,910,056 (75,612) 3,532,936
Total business-type activities 1,264,101 272,267 610,720 4,888,579 266,954 3,731,996
Total prirnary government $ 24,862,317 $ 24,768,410 $ 26,723,071 $ 29,977,640 $ 31,812,856 $ 31,706,583
Change in Net Assets
Governmental activities $ (256,003) $ (1,636,191 ) $ 3,423,033 $ (173,642) $ 6,060,398 $ (356,728)
Business-type activities (849,880) (1,555,568) (1,044,363) 3,962,734 (263,088) 6,509,037
Total primary government $ (1,105,883) $ (3,191,759) $ 2,378,670 $ 3,789,091 $ 5,797,310 $ 6,152,307
Note: The City of La Porte first applied GASB Statement 34 in fiscal year 2003; therefore, government-wide financial information
140
City of La Porte, Texas
Governmental Activities Tax Revenues By Source
Last Six Fiscal Years
(accrual basis of accounting)
(unaudited)
Fiscal Property Industrial Franchise Public Service
Year Taxes Payments Taxes Taxes Total
2003 $10,868,006 $ 7,276,821 $ 1,682,849 $ 3,037,574 $22,865,250
2004 11,061,539 6,896,112 1,718,875 3,263,459 22,939,985
2005 11,815,694 6,991,926 1,885,801 3,459,979 24,153,400
2006 12,197,117 7,659,591 1,986,698 4,067,767 25,911,173
2007 13,065,604 8,188,891 2,003,691 5,735,725 28,993,911
2008 13,682,659 7,958,522 2,165,343 5,803,077 29,609,601
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.
14 ]
142
City of La Porte, Texas
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
(unaudited)
1999
2000
Fiscal Year
2001
2002
2003
General fund
Reserved
Unreserved
Total general fund
$ 66,158 $ 72,088 $ 58,827 $ 74,843 $ 209,191
5,428,233 5,924,197 7,608,591 7,053,076 6,632,833
$ 5,494,391 $ 5,996,285 $ 7,667,418 $ 7,127,919 $ 6,842,024
All other governmental funds
Reserved
Unreserved/Undesignated
Unreserved, reported in:
Special revenue funds
Capital projects funds
Total all other governmental funds
$ 1,119,041 $ 1,263,483 $ 1,303,068 $ 1,589,610 $ 7,462,916
2,171,471 2,837,718 3,307,882 3,850,787 3,770,935
7,178,328 13,038,143 11,765,217 13,778,877 5,067,980
$ 10,468,840 $ 17,139,344 $ 16,376,167 $ 19,219,274 $ 16,301,831
143
Fiscal Year
2004 2005 2006 2007 2008
$ 440,926 $ 209,191 $ 144,775 $ 169,708 $ 360,727
7,009,028 8,972,133 10,970,885 13,687,895 13,587,254
$ 7,449,954 $ 9,181,324 $ 11,115,660 $ 13,857,603 $ 13,947,981
$ 1,584,497 $ 2,061,426 $ 2,266,406 $ 2,670,858 $ 3,021,882
1,005,159 4,255,634 5,100,995 7,501,313 6,325,089
9,287,535 16,488,090 18,813,872 18,660,427 19,933,451
$ 11,877,191 $ 22,805,150 $ 26,181,273 $ 28,832,598 $ 29,280,422
144
City of La Porte, Texas
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
(unaudited)
1999 2000 2001 2002
Revenues
Taxes $ 20,164,016 $ 20,860,043 $ 22,406,291 $ 23,300,851
Donations
Harris County Joint Ventures
Licenses and permits 357,694 337,259 262,010 238,535
Fines and forfeits 479,363 407,459 561,547 614,534
Charges and services 2,996,774 3,147,031 2,923,504 2,129,487
Intergovernmental 170,044 313,261 673,105 385,722
Interest 976,007 1,395,339 1,626,693 748,798
Miscellaneous 213,794 193,585 119,228 143,668
Total revenues $ 25,357,692 $ 26,653,977 $ 28,572,378 $ 27,561,595
Expenditures
General Government 5,056,127 5,152,844 5,232,112 5,294,977
Public Safety 7,842,420 8,644,309 9,364,320 10,165,683
Public Works 2,204,287 2,304,829 2,487,825 2,422,522
Health and Sanitation 2,413,218 2,411,767 2,278,761 1,764,906
Culture and Recreation 2,697,886 2,944,296 3,058,199 3,297,865
Debt Service
Principal 1,495,000 1,555,000 1,775,000 1,685,000
Interest 559,379 590,841 729,932 634,535
Capital Outlay 2,514,438 2,685,085 3,032,461 4,077,477
Total expenditures 24,782,755 26,288,971 27,958,610 29,342,965
Excess of revenues
over (under) expenditures 574,937 365,006 613,768 (1,781,370)
Other financing sources (uses)
Issuance of debt 6,250,000 5,400,000
Premium on bond
Transfers in 1,346,030 1,099,032 1,974,671 1,870,191
Transfers out (2,058,568) (1,377,318) (1,849,671) (3,185,214)
Proceeds from sale of assets
Total other financing
sources (uses) (712,538) 5,971,714 125,000 4,084,977
Net change in fund balances $ (137,601) $ 6,336,720 $ 738,768 $ 2,303,607
Debt service as a percentage
of noncapital expenditures 9.2% 9.1% 10.0% 9.2%
]45
Fiscal Year
2003 2004 2005 2006 2007 2008
$ 22,922,669 $ 22,948,635 $ 24,045,940 $ 25,687,864 $ 28,919,159 $ 30,059,710
30,000 30,000
1,751,555
199,970 320,405 531,091 683,284 919,923 559,803
847,250 554,559 678,205 848,232 1,243,694 1,726,433
2,275,333 2,947,340 3,233,453 3,887,570 3,966,801 3,958,189
480,037 576,262 1,112,687 1,174,381 716,103 4,755,080
481,822 325,418 630,683 1,709,163 2,117,375 1,883,095
125,020 32,605 183,658 163,380 77,056 90,409
$ 27,332,101 $ 27,705,224 $ 32,197,272 $ 34,153,874 $ 37,990,111 $ 43,032,719
5,542,520 7,971,284 6,848,838 7,236,765 7,696,436 8,418,445
10,477,080 10,414,544 10,532,857 11,071,829 11,769,003 15,609,623
2,556,011 2,361,192 2,430,322 2,360,073 2,407,428 2,908,970
1,823,462 1,758,964 1,808,313 1,813,812 1,972,823 2,478,846
3,475,888 3,245,144 3,067,815 3,010,725 3,103,466 3,470,123
1,590,000 1,490,000 1,330,000 1,195,000 1,235,000 1,655,000
795,199 699,834 1,030,430 1,374,314 1,582,287 1,757,889
2,771,651 3,259,141 8,566,314 6,550,309 10,012,947 6,351,166
29,031,811 31,200,103 35,614,889 34,612,827 39,779,390 42,650,062
(1,699,710) (3,494,879) (3,417,617) (458,953) (1,789,279) 382,657
16,586,900 6,965,000 8,075,000
191,055 37,572
1,919,871 3,469,026 3,222,196 6,055,874 4,196,574 7,625,287
(3,423,500) (3,790,857) (3,774,399) (7,532,602) (5,147,853) (7,501,259)
42,250 90,083 21,253 31,518
(1,503,629) (321,831) 16,076,947 5,769,410 7,182,546 155,546
$ (3,203,339) $ (3,816,710) $ 12,659,330 $ 5,310,457 $ 5,393,267 $ 538,203
9.1% 7.8% 8.7% 9.2% 9.5% 9.4%
146
City of La Porte, Texas
Assessed Value and Estimated Actual Value of Taxable Property
Last Ten Fiscal Years
(unaudited)
Fiscal
Year
Ended
September 30
Estimated Market Value
Real Personal
Property Property
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
$ 1,200,942,090
1,348,881,240
1,346,611,820
1,461,368,400
1,498,049,850
1,546,560,410
1,601,433,200
1,777,351,563
1,861,821,075
2,007,113,146
$ 231,352,908
258,255,710
295,183,470
295,213,550
270,257,240
279,687,470
311,721,280
325,549,640
350,191,031
372,331,715
Less:
Tax Exempt
Property
$ 170,254,950
187,918,790
219,056,080
251,950,970
255,642,570
265,840,970
278,265,540
407,734,605
419,779,423
428,955,092
Source: City of La Porte records and the Harris County Appraisal District
147
Total Taxable
Assessed
Value
$ 1,262,040,048
1,419,218,160
1,422,739,210
1,504,630,980
1,512,664,520
1,560,406,910
1,634,888,940
1,695,166,598
1,792,232,683
1,950,489,769
Total Assessed
Direct Total Value as a
Tax Taxable Percentage of
Rate Value Actual Value
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%
0.71 1,950,489,769 100.00%
148
City of La Porte, Texas
Property Tax Rates
Direct and Overlapping Governments
(Per $100 of Assessed Value)
Last Ten Fiscal Years
(Unaudited)
City of La Porte 1 Overlapping Rates
General
Obligation Harris County Port of Harris County
Fiscal Basic Debt Total Flood Control Harris Houston Board of
Year Rate Service Direct District 2 County 2 Authority 2 Education 2
1999 $ 0.570 $ 0.140 $ 0.710 $ 0.080000 $ 0.39480 $ 0.02040 $ 0.006300
2000 0.570 0.140 0.710 0.061700 0.35900 0.01830 0.006300
2001 0.570 0.140 0.710 0.047600 0.38390 0.01830 0.006300
2002 0.570 0.140 0.710 0.047600 0.38390 0.01830 0.006300
2003 0.575 0.135 0.710 0.041740 0.38810 0.01990 0.006300
2004 0.575 0.135 0.710 0.033180 0.39990 0.01670 0.006300
2005 0.611 0.099 0.710 0.033220 0.39986 0.01474 0.006290
2006 0.611 0.099 0.710 0.032410 0.40239 0.01302 0.006290
2007 0.612 0.098 0.710 0.031060 0.39239 0.01437 0.005853
2008 0.619 0.091 0.710 0.030860 0.38923 0.01773 0.005840
Source: 1 City of La Porte records
2 Office of Harris County
3 Office of La Porte Independence School District
149
Overlapping Rates
San Jacinto
Hospital La Porte Jr. College
District 2 I.S.D.3 District 4 Total
$ 0.14650 $ 1.610 $ 0.110000 $ 3.07800
0.20270 1.650 0.126000 3.13400
0.19020 1.630 0.130700 3.11700
0.19020 1.630 0.130700 3.11700
0.19020 1.680 0.130700 3.16694
0.19020 1.734 0.139100 3.22938
0.19216 1.734 0.145365 3.23564
0.19216 1.635 0.145365 3.13664
0.19216 1.305 0.145365 2.79620
0.19216 1.325 0.163411 2.83423
]50
City of La Porte, Texas
Principal Property Tax Payers
Current Year and Ten Years Ago
(Unaudited)
2008 1998
Percentage Percentage
of Total City ofT otal City
Taxable Taxable Taxable Taxable
Assed Assessed Assed Assessed
Taxpayer Value Value Taxpayer Value Value
Conoce Phillips Inc $ 54,590,903 2.80% Conoce I nc $ 54,111,440 4.43%
PPG Industries 54,100,472 2.77% Equistar Chemicals LP 44,664,690 3.66%
Oxy Vinyls LP 49,177, 149 2.52% HL&P 42,425,040 3.48%
Equistar Chemicals LP 48,428,332 2.48% Solvay Polymer Corp 37,068,510 3.04%
Ineos USA LLC 38,002,780 1.95% Occidental Electrochem 36,236,280 2.97%
Underwood Dist 36,208,012 1.86% PPG Industries 30,016,160 2.46%
Centerpoint Energy 24,729,347 1.27% Fina Oil & Chem. Co. 24,606,050 2.02%
Dow Chemical 20,420,986 1.05% Dow Chemicals 21,053,500 1.73%
Atofina Petrochemicals 20,215,323 1.04% Geon Company 20,408,900 1.67%
Sulzer Hickham 19,058,785 0.98% Noltex 14,662,470 1.20%
$ 364,932,089 18.71% $ 325,253,040 26.65%
Source: City of La Porte Tax Department
151
City of La Porte, Texas
Property Tax Levies and Collections
Last Ten Fiscal Years
(unaudited)
Fiscal Collected within the
Year Taxes Levied Fiscal Year of the Levy Collections Total Collections to Date
Ended for the Percentage in Subsequent Percentage
September 30, Fiscal Year Amount of Levy Years Amount of Levy
1999 $ 8,951,261 $ 8,795,498 98.26% $ 133,186 $ 8,928,684 99.75%
2000 9,197,629 9,006,072 97.92% 164,263 9,170,335 99.70%
2001 10,026,496 9,780,571 97.55% 216,834 9,997,405 99.71 %
2002 10,786,185 10,463,515 97.01 % 287,472 10,750,987 99.67%
2003 10,826,184 10,491,257 96.91 % 271,812 10,763,069 99.42%
2004 11,178,351 10,829,202 96.88% 276,027 11,105,229 99.35%
2005 11,669,473 11,334,572 97.13% 241,391 11,575,963 99.20%
2006 12,080,351 11,755,121 97.31% 216,496 11,971,617 99.10%
2007 12,703,850 12,418,873 97.76% 149,320 12,568,193 98.93%
2008 13,857,467 13,476,872 97.25% 13,476,872 97.25%
Source: City of La Porte Tax Department
152
City of La Porte, Texas
Ratio of Outstanding Debt by Type
Last Ten Fiscal Years
(unaudited)
Governmental Activities
General Certificates
Fiscal Obligation of Other
Year Bonds Obligation Obligations
1999 $ 9,675,000 $ $
2000 11,370,000 3,000,000
2001 9,745,000 2,850,000
2002 8,210,000 2,700,000 5,400,000
2003 6,770,000 2,550,000 5,400,000
2004 5,430,000 2,400,000 5,400,000
2005 11,925,000 11,050,000 5,400,000
2006 12,610,000 16,405,000 5,130,000
2007 12,070,000 24,055,000 4,860,000
2008 11,475,000 23,265,000 4,590,000
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.
153
Business-Type Activities
General
Water and Obi igation Total Percentage
Sewer Revenue Refunding Other Primary of Personal Per
Bonds Bonds Obligations Government Income Capita
$ 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 1,413
125,000 7,210,000 46,665,000 N/A 1,320
154
City of La Porte, Texas
Ratio of General Bonded Debt Outstanding
Last Ten Fiscal Years
(unaudited)
General Bonded Debt Outstanding
General
Fiscal Obligation
Year Bonds
1999 $ 9,675,000
2000 14,370,000
2001 12,595,000
2002 16,310,000
2003 12,170,000
2004 10,830,000
2005 17,325,000
2006 17,740,000
2007 16,930,000
2008 16,065,000
Certificates
of
Obligation
$
2,550,000
2,400,000
11,050,000
16,405,000
24,055,000
23,265,000
Percentage of
Less: Amounts Actual Taxable
Available in Debt Value of Per
Service Fund Total Property 1 Capita 2
$ 1,119,041 $ 8,555,959 0.68% 250
1,263,483 13,106,517 0.92% 411
1,303,068 11,291,932 0.79% 349
1,589,610 14,720,390 0.98% 447
1,797,213 12,922,787 0.85% 382
1,584,497 11,645,503 0.75% 345
1,704,531 26,670,469 1.63% 772
1,813,887 32,331,113 1.91% 928
1,925,756 39,059,244 2.18% 1,105
1,999,842 37,330,158 2.08% 1,056
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 Assessed Value and Estimated Actual Value of Taxable Property for property value data.
2. Population data can be found in the Schedule of Demographic and Economic Statistics.
155
City of La Porte, Texas
Direct and Overlapping Governmental Activities Debt
As of September 30,2008
(unaudited)
Governmental Unit
Debt repaid with property taxes
Harris County $
Harris County Department of Education
Harris County Flood Control District
Harris County Toll Road - Toll Road Bonds (a)
La Porte ISD
Port of Houston Authority
San Jacinto Jr. College District
Debt
Outstanding
2,290,251,222
108,980,834
186,870,000
563,015,000
145,950,000
Subtotal, overlapping debt $
3,295,067,056
City of La Porte direct debt
Total direct and overlapping debt
41,430,000
(a) Harris County Toll Road debt is considered self-supporting.
Source: Texas Municipal Reports
156
Estimated
Estimated Share of
Percentage Overlapping
Applicable Debt
0.78% $ 17,863,960
0.78%
0.78% 850,051
0.78%
30.02% 56,098,374
0.78% 4,391,517
5.90% 8,611,050
$ 87,814,951
100% $ 41,430,000
$ 129,244,951
City of La Porte, Texas
Legal Debt Margin Information
Last Ten Fiscal Years
(unaudited)
Fiscal Year
1999 2000 2001 2002 2003
Debt limit $ 31,930,272 $ 38,129,152 $ 35,568,480 $ 37,615,775 $ 37,816,613
Total net debt applicable to limit 8,555,959 13,106,517 11,291,932 14,720,390 10,372,787
Legal debt margin $ 23,374,313 $ 25,022,635 $ 24,276,548 $ 22,895,385 $ 27,443,826
Total net debt applicable to the limit
as a percentage of debt limit
Note: The City has no general obligation legal debt limit other than a ceiling on the tax rate as specified by the State of Texas.
The precribed maximum is $2.50 per $100 of the appraised value
]57
2004
2005
2006
2007
2008
$ 39,010,173
$ 40,872,224
$
42,379,165
$
44,805,817
$
48,762,244
9,245,503
15,620,369
15,926,113
18,855,756
18,064,842
$ 29,764,670
$ 25,251,855
$
26,453,052
$
25,950,061
$
30,697,402
Legal Debt Margin Calculation for Fiscal Year 2008
Assessed value $ 1,950,489,769
Add back: exempt property $ 428,955,092
Total assessed value $ 2,379,444,861
Debt limit (2.5% of total assessed value) 48,762,244
Debt applicable to limit:
General obligation bonds $ 16,065,000
Less: Amount set aside for repayment of
general obligation debt 1,999,842
Total net debt applicable to limit 18,064,842
Legal debt margin $ 30,697,402
158
City of La Porte, Texas
Pledged-Revenue Coverage
Last Ten Fiscal Years
(unaudited)
Water and Sewer System Revenue Bonds
Utility Less: Net
Fiscal Service Operating Available Debt Service Times
Year Charges 1 Expenses 2 Revenue Principal Interest Coverage
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 1,041,226 262,500 106,828 2.82
2008 8,916,777 5,653,497 3,263,280 387,500 91,605 6.81
Note:
1. Includes interest income.
2. Excludes depreciation and loss on uncollectible accounts.
159
City of La Porte, Texas
Demographic and Economic Statistics
Last Ten Calendar Years
(Unaudited)
Personal Per
Income Capita
(thousands Personal Median School Unemployment
Year Population of dollars) Income Age Enrollment Rate
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%
2008 35,518 N/A N/A N/A 7,940 5.2%
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.
160
City of La Porte, Texas
Principal Employers
Current Year and T en Years Ago
(unaudited)
2008 *
1998 **
Percentage Percentage
ofT otal City of Total City
Employees Rank Employment Employer Employees Rank Employment
1,581 1 5.78% Solvay Polymer 1,100 1 N/A
800 2 2.93% San Jacinto College 1,003 2 N/A
800 3 2.93% La Porte ISO 987 3 N/A
700 4 2.56% E.1. Dupont 870 4 N/A
664 5 2.43% Millenium (formerly Quantum) 736 5 N/A
636 6 2.33% Akzo Nobel 500 6 N/A
500 7 1.83% Hickham Industries 270 7 N/A
400 8 1.46% Dow Chemical 250 8 N/A
400 9 1.46% Fina Oil & Chemical 225 9 N/A
368 10 1.35% Geon Company 180 10 N/A
6,849 25.04% 6,121
Employer
E.1. Dupont De Nemours & Co.
Acuren Inspection, Inc.
E.1. Dupont De Nemours & Co.
Rockwood Service Corp.
Longview Inspection Corp.
Quest Tru TEC
WalMart
Aker Kvaerner Industrial Constructors Corp.
Oxy Vinyls
City of La Porte
Total
Source:
* Centerpoint Energy
** City of La Porte Official Statement, Series 1998 General Obligation Bonds
T alai employment figures for 1998 were not available, so therefore the percentages of total city employment could not be calculated.
161
City of La Porte, Texas
Full-Time Equivalent City Government Employees by Function/Program
Last Four Fiscal Year
(unaudited)
Fiscal Year
Function/Program 2005 2006 2007 2008
General Government 76 76 80 79
Public Safety 135 138 147 142
Public Works 32 32 32 32
Health & Sanitation 22 21 21 22
Culture and Recreation 47 45 44 45
Water Services 26 27 25 25
Sewer Services 20 20 20 20
Golf Course 13 13 12 12
Sylvan Beach Convention Center 3 3 4 4
Source:
City Budget Office
Note: Data not available for fiscal years prior to 2005.
162
City of La Porte, Texas
Operating Indicators by Function/Program
Last Ten Fiscal Years
(unaudited)
Fiscal Year
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
163
Fiscal Year
2003
2004
2005
2006
2007
2008
2,271 2,000 2,330 2,465 2,489 2,642
9,605 6,593 6,877 8,212 9,652 15,352
N/A 494 644 689 1,598 1,781
N/A 500 500 N/A 600 320
27,800 33,800 66,158 27,835 22,100 19,887
413 524 531 321 1,260 996
28,243 29,675 30,022 30,795 29,279 29,282
50,111 54,875 49,140 49,140 52,250 48,136
76,311 84,353 81,868 70,558 62,828 62,245
10,987 11 ,189 11,391 11,592 11,743 11,913
4.0 3.8 4.1 3.9 3.8 4.0
440 299 437 483 467 455
3.9 4.0 3.5 2.8 3.9 3.2
38,594
38,901
34,961
32,731
32,433
35,839
164
City of La Porte, Texas
Capital Asset Statistics by Function/Program
Last Nine Fiscal Years
(unaudited)
Fiscal Year
2000 2001 2002 2003 2004 2005 2006 2007 2008
Function/Program
Public Safety
Police Station 1 1 1 1 1 1 1 1 1
Police Officers 56 71 71 72 72 72 73 74 74
Reserve Officers 9 3 5 5 5 5 5 6 2
Fire Stations 4 4 4 4 4 4 4 4 4
Sanitation
Collection trucks 13 13 13 14 14 14 14 14 14
Highways and streets
Streets (miles) 160 160 164 164 164 211 217 211 295
Streetlights 1,823 2,072 2,109 1,533 1,665 2,192 1,803 1,804 2,400
Traffic signals 3 3 3 3 3 3 3 3 3
Culture and recreation
Parks acreage 145 462 463 463 463 337 339 347 347
Parks 17 18 18 19 19 21 21 22 22
Swimming pools 6 6 6 6 6 6 6 6 6
Recreation Centers 1 1 1 1 1 1 1 1 1
Senior Center 1 1 1 1 1 1 1 1 1
Water and Sewer
Water Mains (miles) 226 229 231 231 231 165 168 176 178
Fire Hydrants 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,076 1,161
Sanitary Sewers (miles) 184 185 186 187 187 187 187 189 189
Storm Sewers (miles) 87 88 88 89 89 89 92 92 92
Source: City Departments
Note: Data not available for fiscal years prior to 2000.
165