HomeMy WebLinkAbout02-14-11 Regular Meeting of Fiscal Affairs Committee 2
CHUCK ENGELKEN, CHAIRMAN JAY MARTIN
Councilmember District 2 oFA, Councilmember District 5
O
DARYL LEONARD - .� JOHN ZEMANEK
Councilmember District 3 t� ' ` ^� Councilmember At -Large A
TOMMY MOSER
Councilmember District 4
MINUTES OF FISCAL AFFAIRS COMMITTEE
FEBRUARYI4, 2011
The Fiscal Affairs Committee of the City of La Porte met on Monday, February 14, 2011, at the City Hall
Council Chambers, 604 West Fairmont Parkway, La Porte, Texas, at 5:00 p.m. to consider the following
items of business:
1. Call to Order
Chairman Engelken called the meeting to order at 5:02 p.m. Members of the Fiscal Affairs
Committee present: Committee members Leonard, Engelken, Moser and Alternate members Martin
and Zemanek. Absent: None
Members of City Executive Staff and City Employees Present:
City Manager's Office: Ron Bottoms and Traci Leach
City Secretary's Office: Sharon Harris
Finance: Michael Dolby, Phyllis Rinehart and Shelley Wolny
2. Consider approval of Minutes of the Special Called Regular Committee Meeting held on
February 14, 2011 — P. Fogarty
Committee member Leonard moved to approve the minutes as presented. Committee member
Moser seconded. MOTION PASSED.
Ayes: Chairman Engelken, Committee members Moser and Leonard
and Alternate members Martin and Zemanek.
Nays: None
3. Receive and review First Quarter (FY 2011) Investment Report — M. Dolby
Budget/Investment Officer Shelley Wolny provided the First Quarter (FY 2011) Investment Report
and noted there was a correction in the wording of the report. There is 68 percent in Texpool and
20 percent in Certificates of Deposits. The charts are correct.
4. Receive and review month of September and October (FY 2010) Purchasing Card
Expenditures — M. Dolby
Finance Director Michael Dolby provided the months of September and October (FY 2010)
Purchasing Card Expenditure Reports. The committee advised staff to continue providing the report
in the format presented and to encourage staff to keep business with local vendors in the
community.
5. Consider approval or other action regarding December and January mileage reimbursement
for Mayor Rigby — Chairman Engelken
Page 1 of 2
February 14, 2011, Fiscal Affairs Committee Minutes
Committee member Moser moved to approve the December and January mileage reimbursements
for Mayor Rigby as presented. Committee member Leonard seconded. MOTION PASSED.
Ayes: Chairman Engelken, Committee members Moser, Leonard
and Alternate members Martin and Zemanek.
Nays: None
6. Administrative Reports
Finance Director Michael Dolby reported the Fiscal Year Audit will be presented at the next meeting
on March 14, 2011, at 5:00 p.m.
6. Executive Session — pursuant to provision of the Open Meeting Law, Chapter 551, Texas
Government Code, Sections 551.071 through 551.076, 551.087 (consultation with attorney,
deliberation regarding real property, deliberation regarding prospective gift or donation, personnel
matters, deliberation regarding security devices, or excluding a witness during examination of
another witness in an investigation, deliberation regarding economic development negotiations)
7. Considerations and possible action on items considered in executive session.
There was no executive session.
8. Adjournment
There being no further business, Chairman Engelken moved to adjourn the meeting. Meeting was
adjourned at 5:14 p.m.
Respectfully submitted,
_ 4. ifir.
Patrice Fogarty, Cit LC`ecreta /
Passed and approved on this 28 day of March, 2011.
Chairman Chuck Engel en
Page 2 of 2
February 14, 2011, Fiscal Affairs Committee Minutes
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CITY OF LA PORTE, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
For the fiscal year ended
September 30, 2010
Prepared by:
Department of Finance
OF . I. '�
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City of La Porte
Comprehensive Annual Financial Report
For the Fiscal Year Ended September 30, 2010
TABLE OF CONTENTS
Page
INTRODUCTORY SECTION
Letter of Transmittal 3
Organization Chart 9
GFOA Certificate of Achievement 10
List of Elected Officials 11
FINANCIAL SECTION
Independent Auditors' Report 15
Management's Discussion and Analysis 17
Basic Financial Statements:
Government -wide Financial Statements:
Statement of Net Assets 27
Statement of Activities 28
Fund Financial Statements:
Balance Sheet — Governmental Funds 30
Reconciliation of the Governmental Funds Balance Sheet to
Statement of Net Assets 33
Statement of Revenues, Expenditures and Changes in
Fund Balances — Governmental Funds 34
Reconciliation of the Statement of Revenues, Expenditures, and Changes
In Fund Balances of Governmental Funds to the Statement of Activities 37
Statement of Net Assets — Proprietary Funds 38
Statement of Revenues, Expenses and Changes in
Fund Net Assets — Proprietary Funds 40
Statement of Cash Flows — Proprietary Funds 42
Notes to the Financial Statements 45
Required Supplementary Information:
Schedule of Revenues, Expenditures, and Changes in Fund
Balances — General Fund 79
Notes to the Required Supplementary Information 80
Combining Financial Statements — Nonmajor Governmental Funds:
Combining Balance Sheet — Nonmajor Governmental Funds 84
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances — Nonmajor Governmental Funds 88
Schedules of Revenues, Expenditures, and Changes in
Fund Balances — Budget and Actual: 93
2010 Certificate of Obligation Bonds Fund 94
Capital Projects 95
Street Maintenance Sales Tax Fund 96
Community Investment Special Revenue Fund 97
Hotel /Motel Occupancy Tax Special Revenue Fund 98
Tax Increment Reinvestment Zone One Special Revenue Fund 99
Grant Special Revenue Fund 100
Section 4B Sales Tax Fund 101
Transportation and Other Infrastructure Fund 102
iii
City of La Porte
Comprehensive Annual Financial Report
For the Fiscal Year Ended September 30, 2010
TABLE OF CONTENTS
2004 Certificates of Obligation Bonds Fund 103
2005 Certificate of Obligation Bonds Fund 104
2005 General Obligation Bonds Fund 105
2006 Certificate of Obligation Bonds Fund 106
2007 Certificate of Obligation Bonds Fund 107
Drainage Improvement Fund 108
Debt Service Fund 108
Supplementary Individual Fund Financial Statements and Schedules — General Fund 109
Schedule of Revenues — Budget and Actual 110
Schedule of Expenditures — Budget and Actual 111
Combining Financial Statements — Nonmajor Enterprise Funds: 119
Combining Statement of Net Assets 120
Combining Statement of Revenues, Expenses and Changes in Fund Net Assets 121
Combining Statement of Cash Flows 122
Combining Financial Statements — Internal Service Funds: 123
Combining Statement of Net Assets 124
Combining Statement of Revenues, Expenses and Changes in Fund Net Assets 125
Combining Statement of Cash Flows 126
Capital Assets Used in the Operation of Governmental Funds: 127
Schedule by Source 129
Schedule by Function and Activity 130
Schedule of Changes by Function and Activity 132
STATISTICAL SECTION
Net Assets by Component 134
Changes in Net Assets 136
General Government Tax Revenues by Source 140
Fund Balances of Govemmental Funds 142
Changes in Fund Balances of Governmental Funds 144
Assessed Value and Estimated Actual Value of Taxable Property 146
Property Tax Rates - Direct and Overlapping Governments 148
Principal Property Taxpayers 150
Property Tax Levies and Collections 151
Ratios of Outstanding Debt by Type 152
Ratios of General Bonded Debt Outstanding 154
Direct and Overlapping Governmental Activities Debt 155
Legal Debt Margin Information 156
Pledged Revenue Coverage 158
Demographic and Economic Statistics 159
Principal Employers 160
Full -time Equivalent City Government Employees by Function 161
Operating Indicators by Function 162
Capital Asset Statistics by Function 164
iv
INTRODUCTORY SECTION
1
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2
0 4 , a 9 CITY OF LA PORTE
" �, rn Established 1892
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March 11, 2011
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,
2010. 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, 2010 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, 2010, are fairly presented in
conformity with GAAP. The independent auditors' 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 33,800.
The City is a home rule city operating under the Council- Manager form of government. Policy -
making and legislative authority are vested in a goveming 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 has established a Taxing Increment
Reinvestment Zone one (the Zone). The zone is presented as a blended component unit and is
being reported as a governmental fund type (see Note 1 B). The City has also established a
section 4 B Sales Tax Corporation (see Note 1 B).
The City's accounting records for general governmental operations are maintained on 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.
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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
budget. The City Manager then presents this proposed budget to council for review prior to August.
The council is required to hold a public hearing on the proposed budget and to adopt a final budget
by no later than September 30th. The appropriated budget is prepared by fund, function (e.g.,
public safety) and department (e.g., police). The directors are given latitude to approve transfers of
appropriations within a department. Transfers of appropriations between funds, however require
the special approval of the city council. Budget -to- actual comparisons are provided in financial
reports for each individual governmental fund for which an appropriated annual budget has been
adopted. For the general fund, this comparison is presented on page 79 as part of the required
supplementary information. For governmental funds, other than the general fund, with appropriated
annual budgets, this comparison is presented in the governmental fund subsection of this report,
which starts on page 83.
Formal budgetary integration is employed as a management control device during the year for the
General Fund and Enterprise Funds. Formal budget integration is not employed for the Debt
Service and Capital Projects Funds because effective budgetary control is alternatively achieved
through bond indenture provisions and legally binding construction contracts, respectively.
Economic 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 ope► ates.
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
5
over the course of the next twenty years. The comprehensive plan is a physical plan; it is long -
range, comprehensive and states the goals, objectives and policies of the local government.
The comprehensive plan provides clear direction through specific statements of action to achieve
the desired results envisioned by citizens and the leadership of the community.
The essential objectives of the comprehensive plan are as follows:
D It is a plan to guide the future physical development and redevelopment of the community;
D The time frame is long, extending over a twenty -year horizon;
D It encompasses a large geographic area including the corporate limits and ETJ of the
community;
D It is general in nature, allowing some issues to be resolved and many decisions to be made;
D It articulates ideas in a framework of goals and objectives, policies and actions, and
plans and projects;
D 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:
D Consider programs to revitalize and rehabilitate existing housing where needed.
D Meet the future housing needs by providing for a variety of housing options.
D Encourage the rehabilitation or replacement of substandard housing.
D Promote a standard of home ownership encouraging well - maintained residential properties.
D Preserve the integrity of existing neighborhoods and create livable and safe
neighborhood environments.
D 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
6
entertainment district in a historically significant area, retail stores interspersed with restaurants and
professional offices and a blend of residential units as well.
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.
Relevant Financial Policy
City Council, following permanent damage from Hurricane Ike, elected to close our Sylvan Beach
(enterprise fund) and transfer the remaining cash reserves to capital improvement. The cash
reserves are undesignated and will be allocated to general government projects.
Major Initiatives
Following the completion of a comprehensive city -wide drainage plan, City Council directed staff to
alleviate affected neighborhoods from surface water flooding. Consequently, the City issued $6.28
million in certificates of obligation to be spent on engineering and construction projects. The projects
will enable the City to continue moving forward with other projects and further reduce the risk of
flooding for the citizens.
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, 2009. This was the twenty -ninth 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.
7
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
govemment's budget document was judged to be proficient in several categories, including as a
policy document, a financial plan, an operations guide and a communications- device.
The preparation of this report would not have been possible without the efficient and dedicated
services of the entire staff of the finance and administration department. We would like to express our
appreciation to all members of the department who assisted and contributed to the preparation of this
report. Credit also must be given to the mayor and city council for their unfailing support for
maintaining the highest standards of professionalism in the management of the City of La Porte's
fi - . - s.
(R... t tfui , 1 bmitted,
•
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Ron B. - .rns chael G. Dolby, A
City Manager Director of F - . -
8
CITY OF LA PORTE
ORGANIZATIONAL CHART
Citizens
I
1 Legal 1 Mayor& City
kipal Court 1 Council —1 C� Saceef,ry 1
1 Emergency Management 1-- City Manager -4 Ilu.tr Resources J
Economic Devoe . ment
Assistant City Manager — I Information Technologies 1
1 Mainetreet 1
1 1 1 I 1 1 1
Fire/EMS Police Finance Public Works Part & Recreation Planning Golf Course
CD
— Police — _ Mae Wash — Planning &
Fire Prevention counting Adntebtralen I 1 Parks Maintenance Engieeeriog — Chsb House
Fire Suppression — Patrol — Tax — Streets 1 -- Recreation — GIS Division — M,Intena,ce
— Emergency MMedical _ Criminal Uliity Billing Residential 1
1 Special Services — Inspection Services 1 — Emergency Services Investigation Said waste
Support Services — Purchasing — Cammasdd Sold — Parks
Waste Administration
-— water Production I
(.„.. _. —
0
Q water Distribution
u
Waste Water
Collection
Effective Date: 10/01/2008
`'� Pn acre, — wane water
Tre,tineat
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, 2009
A Certificate of Achievement for Excellence in Financial
Reporting is presented by the Goveriunent 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.
�tTt R TES � - - -
N President
' tratko *kr o feAor ter .,
Executive Director
10
CITY OF L PORTE
LIST OF ELECTED OFFICIALS
LOUIS RIGBY
MAYOR
JOHN Z EMANEK _ JOHN BLACK
COUNCIL PERSON
MAYOR PROTEM
AT LARGE A� r ° _ AT LARGE B
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MICH MOST�I
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ai'd� 2 � . e f � P � I� �
COUNCIL PERSC _ COUNCIL PERSON
DISTRICT 1 �' A DISTRICT 2 F--: 9f,4::'.'.'::
DA RYL LEONA TOMMY MOSER
COUNCIL PERSON W °° F$ ! COUNCIL PERSON
DISTRICT 3 " °a� F ro; ° _ D ISTRICT 4
JA MARTIN
2
MIKE CLA USEN
COUNCIL PERSON COUNCIL PERSON
DISTRICT 5 DISTRICT 6
11
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12
FINANCIAL SECTION
13
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14
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PATTILLO, BROWN & HILL, L.L.P.
CERTIFIED PUBLIC ACCOUNTANTS • BUSINESS CONSULTANTS
INDEPENDENT AUDITORS' REPORT
To the Honorable Mayor and Members
of the City Council
City of 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, 2010, which collectively
comprise the City's basic financial statements as listed in the table of contents. These financial
statements are the responsibility of the City's management. Our responsibility is to express opinions
on these financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United
States of America and the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States. Those standards require that we
plan and perform the audit to obtain reasonable assurance about whether the financial statements are
free of material misstatement. An audit includes examining, on a test basis, evidence supporting the
amounts and disclosures in the financial statements. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audit provides a reasonable basis for our
opinions.
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the governmental activities, the business -type activities, each major
fund and the aggregate remaining fund information of the City of La Porte, Texas, as of September
30, 2010, and the respective changes in financial position and cash flows, where applicable, thereof,
for the year then ended in conformity with accounting principles generally accepted in the United
States of America.
In accordance with Government Auditing Standards, we have issued our report dated March 11,
2011, 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
conjunction with this report in considering assessing the results of our audit.
401 WEST HIGHWAY 6 • P. O. BOX 20725 • WACO, TX 76702 -0725 • (254) 772 -4901• FAX (254) 772 -4920 • www.pbhcpa.com
AFFILIATE OFFICES: BROWNSVILLE, TX (956) 544 -7778 • HILLSBORO, TX (254) 582 -2583
TEMPLE, TX (254) 791 -3460 • ALBUQUERQUE, NM (505) 266 -5904
15
Accounting principles generally accepted in the United States of America require that the
Management's Discussion and Analysis and budgetary comparison information on pages 17
through 23 and pages 79 through 80, be presented to supplement the basic financial statements.
Such information, although not part of the basic financial statements, is required by Governmental
Accounting Standards Board, who considers it to be an essential part of the financial statements for
placing the basic financial statements in an appropriate operational, economic, or historical context.
We have applied certain limited procedures to the required supplementary information in
accordance with auditing standards generally accepted in the United States of America, which
consisted of inquiries of management about the methods of preparing the information and
comparing the information for consistency with management's responses to our inquiries, the basic
financial statements, and other knowledge we obtained during our audit of the basic financial
statements. We do not express an opinion or provide any assurance on the information because the
limited procedures do not provide us with sufficient evidence to express an opinion or provide any
assurance.
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the City's basic financial statements as a whole. The introductory section,
combining and individual nonmajor fund financial statements and schedules, capital asset schedules
and statistical section, are presented for purposes of additional analysis and are not a required part
of the financial statements. The combining and individual nonmajor fund financial statements and
schedules and capital asset schedules are the responsibility of management and were derived from
and relate directly to the underlying accounting and other records used to prepare the financial
statements. The information has been subjected to the auditing procedures applied in the audit of
the financial statements and certain additional procedures, including comparing and reconciling
such information directly to the underlying accounting and other records used to prepare the
financial statements or to the financial statements themselves, and other additional procedures in
accordance with auditing standards generally accepted in the United States of America. In our
opinion, the information is fairly stated in all material respects in relation to the financial statements
as a whole. The introductory and statistical sections have not been subjected to the auditing
procedures applied in the audit of the basic financial statements and, accordingly, we do not express
an opinion or provide any assurance on it.
P aM Lao IS. k.oure1 ) L.A9.
March 11, 2011
16
CITY OF LA PORTE, TEXAS
Management's Discussion and Analysis
For the Year Ended September 30, 2010
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, 2010. 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
$111,289,712 (net assets). Of this amount $15,931,922(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 $1,582,339. This increase is due to capital acquisitions in the
governmental type funds.
• As of the close of the current fiscal year, the City of La Porte's governmental funds reported combined
ending fund balances of $40,543,819. Of this amount $35,868,993, (88 %) 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 $11,849,853
approximately (39 %) of the total general fund expenditures.
OVERVIEW OF THE FINANCIAL STATEMENTS
This discussion and analysis is intended to serve as an introduction of the City's basic financial statements. The
City's basic financial statements are comprised of three components: 1) government -wide financial statements,
2) fund financial statements and 3) notes to the financial statements. This report also contains other
supplementary information in addition to the basic financial statements themselves.
Government - wide financial statements — The government -wide financial statements are designed to provide
readers with a broad overview of the City's finances, in a manner similar to a private- sector business.
The Statement of Net Assets presents information on all of the City's assets and liabilities, with the difference
between the two reported as net assets. Over time, increases or decreases in net assets may serve as a useful
indicator of whether the financial position of the City is improving or deteriorating.
The Statement of Activities presents information showing how the City's net assets changed during the fiscal
year. All changes in net assets are reported when the underlying event giving rise to the change occurs,
regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for
some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but
unused compensated absences).
Both of the government -wide financial statements report functions of the City that are principally supported by
taxes and intergovernmental revenues (governmental activities) from functions that are intended to recover all or
a significant portion of their costs through user fees and charges (business -type activities). The governmental
activities of the City include general government, public safety, public works, health and sanitation and culture
and recreation. The business -type activities of the City include the Water and Sewer Utilities, Airport, La Porte
Area Water Authority, 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, 2010
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 21 govemmental 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, 2010 Certificates of Obligation Bond, and Capital Projects Fund, all of which are
considered to be major funds. Data from the other 18 governmental funds are combined into a single,
aggregated presentation called non - major. Individual fund data for each of these non -major governmental funds
is provided in the form of combining statements elsewhere in this report.
The basic governmental fund financial statements can be found on pages 27 -37 of this report.
Proprietary funds — The City maintains two types of proprietary funds. Proprietary funds are used to report the
same functions presented as business -type activities in the government -wide financial statements. The City
uses proprietary funds to account for its utilities, airport, water authority, 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. 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, and Bay Forest Golf Course. All internal service funds are combined into a single
aggregated presentation in the proprietary fund financial statements. Individual fund data for the internal service
funds is provided in the form of combining statements elsewhere in this report.
The basic proprietary fund financial statements can be found on pages 38-43 of this report.
Notes to the Financial Statements — The notes provide additional information that is essential to a full
understanding of the data provided in the government -wide and fund financial statements. The notes to the
financial statements can be found on pages 45 -75 of this report.
18
CITY OF LA PORTE, TEXAS
Management's Discussion and Analysis
For the Year Ended September 30, 2010
Other Information - In addition to the basic financial statements and accompanying notes, this report also
presents certain required supplementary information concerning the City's progress in funding its obligation to
provide pension benefits to its employees. Required supplementary information can be found on pages 77 -80
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 -125 of this report.
GOVERNMENT -WIDE FINANCIAL ANALYSIS
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 $111,289,712 at the close of the fiscal year.
By far the largest portion of the City's net assets $75,789,786 reflects its investment in capital assets (e.g., land,
buildings, machinery, equipment, improvements, construction in progress and infrastructure), Tess 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
2010 2009 2010 2009 2010 2009
Current and other assets $ 56,384,215 $ 53,527,689 $ 5,673,459 $ 5,672,420 $ 62,057,674 $ 59,200,109
Capital assets 67,484,940 62,533,458 46,380,067 46,648,862 113,865,007 109,182,320
Total Assets 123,869,155 116,061,147 52,053,526 52,321,282 175,922,681 168,382,429
Long term liabilities 50,569,787 43,417,622 6,910,440 7,165,771 57,480,227 50,583,393
Other liabilities 6,091,976 6,967,959 1,060,766 1,123,704 7,152,742 8,091,663
Total Liabilities 56,661,763 50,385,581 7,971,206 8,289,475 64,632,969 58,675,056
Net Assets:
Invested in capital assets,
net of related debt 35,194,777 32,667,469 40,595,009 40,206,362 75,789,786 72,873,831
Restricted 18,108,170 16,169,693 1,459,834 1,352,867 19,568,004 17,522,560
Unrestricted 13,904,445 16,838,404 2,027,477 2,472,578 15,931,922 19,310,982
Total Net Assets $ 67,207,392 $ 65,675,566 $ 44,082,320 $ 44,031,807 $ 111,289,712 $ 109,707,373
An additional portion of the City's net assets $19,568,004 (18 %) represents resources that are subject to
external restrictions on how they may be used. The remaining balance of unrestricted net assets of
$15,931,922 (14 %) may be used to meet the government's ongoing obligations to citizens and creditors.
As of September 30, 2010, 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, 2010
Analysis of the City's Operations — the following table provides a summary of the City's operations for the
year ended September 30, 2010, with comparative totals for year ended September 30, 2009. Governmental
activities increased the City of La Porte's net assets by $1,531,826. Business -type activities increased the
City's net assets by $50,513.
City of La Porte's Changes in Net Assets
Govemmental Business -Type
Activities Activities Total
2010 2009 2010 2009 2010 2009
Revenues:
Program Revenues:
Charges for Services $ 8,279,423 $ 7,042,938 $ 8,212,595 $ 9,005,792 $ 16,492,018 $ 16,048,730
Operating grants and contributions 1,004,047 5,165,295 - - 1,004,047 5,165,295
Capital grants and contributions - 1,259,614 860,304 1,785,653 860,304 3,045,267
General revenues:
Property taxes, levied for general purposes 15,182,382 14,389,535 - - 15,182,382 14,389,535
Property taxes, levied for debt service 2,560,023 2,001,702 - - 2,560,023 2,001,702
Industrial payments 10,732,488 10,554,872 - - 10,732,488 10,554,872
Franchise taxes 2,170,699 2,160,425 - - 2,170,699 2,160,425
Sales tax 5,913,679 5,787,406 - - 5,913,679 5,787,406
Grants not specified for a specific program - 2,000 - - - 2,000
Unrestricted investment eamings 293,943 687,567 39,078 72,814 333,021 760,381
Miscellaneous 164,237 90,599 - - 164,237 90,599
Total revenues 46,300,921 49,141,953 9,111,977 10,864,259 55,412,898 60,006,212
Expenses:
General Govemment 11,497,476 11,442,946 - - 11,497,476 11,442,946
Public Safety 17,108,837 15,495,372 - - 17,108,837 15,495,372
Public Works 4,601,382 8,095,274 - - 4,601,382 8,095,274
Health and Sanitation 2,521,222 2,378,808 - - 2,521,222 2,378,808
Culture and Recreation 6,483,006 4,222,945 - - 6,483,006 4,222,945
Interest on Long -term debt 1,556,740 1,527,041 - - 1,556,740 1,527,041
Water Services - - 5,721,303 4,832,857 5,721,303 4,832,857
Sewer Services - - 2,674,456 2,603,424 2,674,456 2,603,424
Airport - - 181,040 183,186 181,040 183,186
Bay Forest Golf Course - - 1,485,097 1,436,792 1,485,097 1,436,792
Sylvan Beach Convention Center - - - 25,649 - 25,649
Total Expenses 43,768,663 43,162,386 10,061,896 9,081,908 53,830,559 52,244,294
Change in net assets before transfers 2,532,259 5,979,567 (949,919) 1,782,351 1,582,339 7,761,918
Transfers (1,000,432) (778,855) 1,000,432 778,855 - -
Change in net assets 1,531,826 5,200,712 50,513 2,561,206 1,582,339 7,761,918
Netassets - beginning 65,675,566 60,474,854 44,031,807 41,470,601 109,707,373 101,945,455
Netassets - ending $ 67,207,392 $ 65,675,566 $ 44,082,320 $ 44,031,807 $ 111,289,712 $ 109,707,373
20
CITY OF LA PORTE, TEXAS
Management's Discussion and Analysis
For the Year Ended September 30, 2010
FINANCIAL ANALYSIS OF THE GOVERNMENT'S FUNDS
Governmental funds — The focus of the City of La Porte's governmental funds is to provide information on
near -term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the
City's financing requirements. In particular, unreserved fund balance may serve as a useful measure of a
government's net resources available for spending at the end of the fiscal year.
As of the end of the current fiscal year, the City of La Porte's governmental funds reported combined ending
fund balances of $40,543,819. Approximately 88% of this total amount ($35,868,993) 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 ($158,870), 2) to provide for inventories
($135,162), 3) to pay for debt service ($3,740,380), 4) to provide for municipal court building security
($147,915), 5) to provide for municipal court technology ($38,543), 6) to provide for park zone ($147,180), and
7) to provide for confiscated funds ($227,605), 8) to provide for animal control ($2,914 ), 9) to provide for judicial
fund ($23,197), 10) to provide for law enforcement training ($3,406), and 11) to provide for child safety fees
($49,654).
The actual General Fund fund balance decrease for fiscal year 2010 was $1,489,540 which is $4.9 million
higher than originally projected since revenues were higher than projected and expenditures were less than
budget. The 2010 Certificate of Obligation Fund balance increased by $5,789,393 due to bond proceeds in the
current fiscal year. The Capital Projects Fund balance increased by $499,576 due to interfund transfers for
construction of capital projects. Other governmental fund balances decreased in 2010 by $2,071,692 due to
decreased revenues and increased spending for capital projects.
Proprietary funds — The City's proprietary fund statements provide the same type of information found in the
government -wide financial statements, but in more detail.
Unrestricted net assets of the respective proprietary funds are Utility- $452,909 , Airport - $338,399, La Porte
Area Water Authority - $1,956,053, Sylvan Beach Convention Center - $0, and Bay Forest Golf Course —
($719,884). The change (decrease) in net assets of the proprietary funds in 2010 was as follows: Utility -
$627,684 , which increased due to capital contributions, Airport - ($126,453), which decreased, La Porte Area
Water Authority - $217,188, which increased due to capital contributions, Sylvan Beach Convention Center -
($265,398), which has closed due to hurricane damage and Bay Forest Golf Course - ($402,508), which
decreased.
General Fund Budgetary Highlights — The City made revisions to the original appropriations approved by the
City Council. Overall these changes resulted in an increase from the original budget of ($135,049) or 0.4 %.
The City received more than anticipated revenues by $3.5 million as a result of an upturn in industrial district
payments, property tax and sales tax.
CAPITAL ASSETS AND DEBT ADMINISTRATION
Capital Assets - The City of La Porte's investment in capital assets for its governmental and business -type
activities as of September 30, 2010 amounts to $113,865,007 (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 Sens Road Utilities Relocation $1.4 million.
• Construction in progress Main Street revitalization program for $1.0 million.
• Construction in progress for Sports Complex for $2.2 million.
21
CITY OF LA PORTE, TEXAS
Management's Discussion and Analysis
For the Year Ended September 30, 2010
Capital Assets at Year -end
Net of Accumulated Depreciation
Governmental Business -type
Activities Activities
2010 2010 Total
Land $ 9,699,810 $ 2,308,777 $ 12,008,587
Buildings and improvements 20,606,726 219,144 20,825,870
Improvements other than buildings 11,353,336 38,586,412 49,939,748
Infrastructure 14,922,028 - 14,922,028
Machinery and equipment 6,208,222 210,734 6,418,956
Construction in progress 4,694,818 5,055,000 9,749,818
Total $ 67,484,940 $ 46,380,067 $ 113,865,007
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
$47,725,000 Of this amount, $42,065,000 comprises bonded debt backed by the full faith and credit of the
government and $5,660,000 represents bonds secured solely by water and sewer revenues.
Outstanding Debt at Year End
Bonds Payable
Governmental Business -type
Activities Activities
2010 2010 Totals
General Obligations $ 15,715,000 $ - $ 15,715,000
Revenue Bonds Payable - 4,085,000 4,085,000
Certificate of Obligations 26,350,000 1,575,000 27,925,000
Total $ 42,065,000 $ 5,660,000 $ 47,725,000
The City of La Porte maintains an "Aa2 ", "AA ", "AA-" by Moody's, Standard and Poor's and Fitch respectively for
general obligation debt. The revenue bonds have been rated "A2, A, NR" by Moody's, Standard and Poor's and
Fitch, respectively.
Additional information on the City of La Porte's Tong -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, 2010
ECONOMIC FACTS AND NEXT YEAR'S BUDGETS AND RATES
The unemployment rate for the City of La Porte is currently 8.3 percent, which is a decrease from a rate of 9.4
percent a year ago. This compares to the state's average unemployment rate of 8.1 percent which is Tess than
the national average rate of 9.1 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
future economic changes. Total assessed property value for all residential and commercial property in the City
of La Porte exceeded $2.0 billion for fiscal year 2010. The trend for total assessed property values has been
steadily increasing each year with an average annual increase of 6 percent over the past 5 years. However, in
the upcoming fiscal year, we anticipate that residential and commercial values will decrease by 3% to 5% Sales
tax receipts have increased 6% this fiscal year.
Assessed Property Valuations Sales Tax Collections
(in billions) (in millions)
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2006 2007 2008 2009 2010 2006 2007 2008 2009 2010
REQUEST FOR INFORMATION
This financial report is designed to provide our citizens, customers and creditors a general overview of the City's
finances. Questions concerning any of the information provided in this report or requests for additional
information should be addressed to the Director of Finance, 604 West Fairmont Parkway, La Porte, Texas,
77571.
23
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24
BASIC FINANCIAL STATEMENTS
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26
CITY OF LA PORTE, TEXAS
Statement of Net Assets
September 30, 2010
Primary Government
Governmental Business -type
Activities Activities Total
ASSETS
Cash and cash equivalents $ 31,968,841 $ 1,512,167 $ 33,481,008
Investments 18,532,123 2,225,832 20,757,955
Receivables, net of
allowance for uncollectibles
Accounts receivable 1,823,908 1,061,851 2,885,759
Taxes receivable 1,976,189 - 1,976,189
Due from other governments 672,208 - 672,208
Accrued interest receivable 4,622 530 5,152
Other 183,132 - 183,132
Intemal balances 390,808 (390,808) -
Materials and supplies inventories at cost 169,788 4,800 174,588
Prepaid expenses - 71,059 71,059
Deferred issuance costs 662,596 - 662,596
Restricted assets:
Cash and cash equivalents restricted for:
Customer service deposits - 503,260 503,260
Debt service - 684,768 684,768
Capital assets:
Land 9,699,810 2,308,777 12,008,587
Buildings and improvements 34,829,904 789,144 35,619,048
Improvements other than buildings 17,390,197 83,872,233 101,262,430
Infrastructure 34,747,260 - 34,747,260
Machinery and equipment 15,205,703 593,903 15,799,606
Construction in progress 4,694,818 5,055,000 9,749,818
Accumulated depreciation (49,082,752) (46,238,990) (95,321,742)
Total assets 123,869,155 52,053,526 175,922,681
LIABILITIES
Accounts payable 5,213,072 419,750 5,632,822
Accrued salaries payable 685,858 109,607 795,465
Uneamed revenue 112,344 - 112,344
Other current liabilities 3,002 9,373 12,375
Interest payable 77,700 18,776 96,476
Customer deposits - 503,260 503,260
Noncurrent liabilities:
Due within one year 2,308,797 877,500 3,186,297
Due in more than one year 48,260,990 6,032,940 54,293,930
Total liabilities 56,661,763 7,971,206 64,632,969
NET ASSETS
Invested in capital assets, net of related debt 35,194,777 40,595,009 75,789,786
Restricted for:
Debt service 3,662,680 1,459,834 5,122,514
Economic development 1,894,012 - 1,894,012
Capital improvements 10,945,455 - 10,945,455
Grants and state programs 1,606,023 - 1,606,023
Unrestricted 13,904,445 2,027,477 15,931,922
Total net assets $ 67,207,392 $ 44,082,320 $ 111,289,712
See accompanying notes to financial statements.
27
CITY OF LA PORTE, TEXAS
Statement of Activities
For The Year Ended September 30, 2010
Program Revenues
Fees, Fines and Operating Capital
Charges for Grants and Grants and
Program Activities Expenses Services Contributions Contributions
Governmental activities:
General government $11,497,476 $ 3,116,325 $ - $ -
Public safety 17,108,837 1,593,247 928,389 -
Public works 4,601,382 1,066,936 - -
Health and sanitation 2,521,222 1,842,135 64,025 -
Culture and recreation 6,483,006 660,780 11,633 -
Interest on long term debt 1,556,740 - - -
Total governmental activities 43,768,663 8,279,423 1,004,047 -
Business - type activities:
Water services 5,721,303 3,849,661 - 860,304
Sewer services 2,674,456 3,307,484 - -
Airport 181,040 53,216 - -
Golf course 1,485,097 1,002,234 - -
Total business -type activities 10,061 8,212,595 - 860,304
Total government $ 53,830,559 $ 16,492,018 $ 1,004,047 $ 860,304
General revenues:
Taxes:
Property taxes, levied for general purposes
Property taxes, levied for debt service
Industrial payments
Franchise
Sales
Investment eamings
Miscellaneous
Transfers
Total general revenues and transfers
Change in net assets
Net assets — beginning
Net assets — ending
See accompanying notes to basic financial statements.
28
Net (Expenses) Revenues
and Changes in Net Assets
Governmental Business -type
Activities Activities Total
$ (8,381,151) $ - $ (8,381,151)
(14,587,201) - (14,587,201)
(3,534,446) - (3,534,446)
(615,062) - (615,062)
(5,810,593) - (5,810,593)
(1,556,740) - (1,556,740)
(34,485,193) - (34,485,193)
(1,011,338) (1,011,338)
633,028 633,028
(127,824) (127,824)
(482,863) (482,863)
(988,997) (988,997)
$ (34,485,193) $ (988,997) $ (35,474,190)
15,182,382 - 15,182,382
2,560,023 - 2,560,023
10,732,488 - 10,732,488
2,170,699 - 2,170,699
5,913,679 - 5,913,679
293,943 39,078 333,021
164,237 - 164,237
(1,000,432) 1,000,432 -
36,017,019 1,039,510 37,056,529
1,531,826 50,513 1,582,339
65,675,566 44,031,807 109,707,373
$ 67,207,392 $ 44,082,320 $ 111,289,712
29
CITY OF LA PORTE, TEXAS
Balance Sheet
Governmental Funds
September 30, 2010
2010 Certificates
of Obligation Capital
General Bonds Projects
ASSETS
Cash and cash equivalents $ 10,081,188 $ - $ 7,468,190
Investments 3,341,799 6,251,391 2,398,195
Receivables, net of allowance for
uncollectibles:
Accounts 1,823, 908 - -
Taxes 1,350,088 - -
Intergovernmental - - -
Accrued interest 1,565 - 1,057
Other - - -
Due from other funds 807,246 - -
Materials and supplies inventories, at cost 135,163 - -
Total assets 17,540,957 6,251,391 9,867,442
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable 3,051,747 45,560 686,723
Accrued salaries payable 634,429 - -
Due to others - - -
Due to other funds - 416,438 -
Deferred revenue 1,750,292 - -
Total liabilities 5,436,468 461,998 686,723
Fund balances:
Reserved for:
Inventories 135,162 - -
Encumbrances 119,474 - -
Animal control - - -
Judicial fund - - -
Municipal court building security - - -
Municipal court technology fee - - -
Park zone - - -
Law enforcement training - - -
Child safety - - -
Confiscated funds - - -
Debt service - - -
Unreserved, designated for capital projects 13,084 - -
Unreserved /undesignated 11,836,769 5,789,393 9,180,719
Unreserved, reported in nonmajor:
Special revenue funds - - -
Capital projects funds - - -
Total fund balances 12,104,489 5,789,393 9,180,719
Total liabilities and fund balances $ 17,540,957 $ 6,251,391 $ 9,867,442
See accompanying notes to basic financial statements.
30
Other Total
Governmental Governmental
Funds Funds
$ 8,530,774 $ 26,080,152
4,580,078 16,571,463
-
1,823,908
626,101 1,976,189
672,208 672,208
1,130 3,752
61,955 61,955
615,026 1,422,272
- 135,163
15,087,272 48,747,062
873,158 4,657,188
18,294 652,723
3,002 3,002
615,026 1,031,464
108,574 1,858,866
1,618,054 8,203,243
- 135,162
39,396 158,870
2,914 2,914
23,197 23,197
147,915 147,915
38,543 38,543
147,180 147,180
3,406 3,406
49,654 49,654
227,605 227,605
3,740,380 3,740,380
- 13,084
- 26,806,881
3,688,288 3,688,288
5,360,740 5,360,740
13,469,218 40,543,819
$ 15,087,272 $ 48,747,062
31
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32
CITY OF LA PORTE, TEXAS
Reconciliation of the Governmental Funds
Balance Sheet to Statement of Net Assets
September 30, 2010
Amounts reported for governmental activities in the statement of net
assets are different because:
Total fund balances - total governmental funds $ 40,543,819
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. 62,702,275
Revenues in the statement of activities that do not provide current financial
resources are not reported as revenues in the funds
Unavailable revenues 1,746,522
Interest payable on Tong -term debt does not require current financial
resources. Therefore, interest payable is not recorded as a liability in
governmental funds balance sheets. (77,700)
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. 12,104,048
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 (42,065,000)
Premium on issuance (478,623)
Compensated absences (3,102,794)
Bond issuance costs 662,596
Arbitrage (304,474)
Net OPEB obligation (3,216,106)
Net pension obligation (1,307,171)
Net assets of governmental activities $ 67,207,392
See accompanying notes to basic financial statements.
33
CITY OF LA PORTE, TEXAS
Statement of Revenues, Expenditures and Changes in Fund Balances
Governmental Funds
For The Year Ended September 30, 2010
2010 Certificate
of Obligation Capital
General Bonds Projects
REVENUES
Property taxes $ 13,566,424 $ - $ -
Franchise taxes 2,170,699 - -
Sales taxes 3,142,521 - -
Industrial payments 10,464,176 - -
Other taxes 77,450 - -
Licenses and permits 476,478 - -
Fines and forfeits 1,531,699 - -
Charges for services 4,307,154 - 1,405,077
Intergovernmental 863 - -
Interest 137,143 3,546 43,078
Miscellaneous 59,920 - 60,625
Total revenues 35,934,527 3,546 1,508,780
EXPENDITURES
Current:
General government 7,468,340 - 232,978
Public safety 14,206,302 - -
Public works 2,688,597 - 76,703
Health and sanitation 2,164,286 - -
Culture and recreation 3,827,212 - 1,221,236
Debt service:
Principal retirements - - -
Interest and fiscal charges - 136,533 -
Capital outlay 412,749 324,936 6,248,284
Total expenditures 30,767,486 461,469 7,779,201
Excess (deficiency) of revenues over
expenditures 5,167,041 (457,923) (6,270,421)
OTHER FINANCING SOURCES (USES)
Issuance of debt - 6,265,000 -
Premium on bonds - 123,670 -
Payment to escrow agent - - -
Transfers in 730,271 - 6,769,997
Transfers out (7,391,876) (141,354) -
Proceeds from sale of assets 5,024 - -
Total other financing sources (uses) (6,656,581) 6,247,316 6,769,997
Net change in fund balances (1,489,540) 5,789,393 499,576
Fund balances— beginning 13,594,029 - 8,681,143
Fund balances— ending $ 12,104,489 $ 5,789,393 $ 9,180,719
See accompanying notes to basic financial statements.
34
Other Total
Governmental Governmental
Funds Funds
$ 4,298,212 $ 17,864,636
- 2,170,699
2,356,887 5,499,408
268,312 10,732,488
336,822 414,272
- 476,478
271,086 1,802,785
371,536 6,083,767
987,669 988,532
79,226 262,993
4,597 125,142
8,974,347 46,421,200
2,086,288 9,787,606
405,435 14,611,737
53,621 2,818,921
68,562 2,232,848
- 5,048,448
1,755,000 1,755,000
1,451,033 1,587,566
3,857,527 10,843,496
9,677,466 48,685,622
(703,119) (2,264,422)
4,295,000 10,560,000
100,338 224,008
(4,409,763) (4,409,763)
1,657,855 9,158,123
(3,012,003) (10,545,233)
- 5,024
(1,368,573) 4,992,159
(2,071,692) 2,727,737
15,540,910 37,816,082
$ 13,469,218 $ 40,543,819
35
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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, 2010
Amounts reported for governmental activities in the statement of activities are
different because:
Net change in fund balances —total governmental funds: $ 2,727,737
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 $10,661,990
exceeded depreciation $3,713,973 and losses of $104 from the disposition
of capital assets in the current period. 6,947,913
Governmental funds report expenditures for costs of assets under construction
that will be contributed to another entity. However, in the statement
of activities, the cost of those assets will be expensed when the completed
asset is transferred. (371,718)
Governmental funds report capital outlay expenditures for costs of assets
constructed that will be contributed to a proprietary fund. However, in
the statement of activities, the cost of those assets were reclassified as a
transfer to business -type activities. (1,939,704)
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. (194,443)
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. (4,454,007)
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 (23,064)
Additional compensated absences not reflected in governmental funds (242,190)
Amortization of bond issuance costs (158,748)
Amortization of premium on bonds 47,400
Net OPEB obligation (1,661,275)
Net pension obligation (752,431)
Retainage payable 102,447
Internal service funds are used by management to charge the costs of certain
activities, such as fleet maintenance and information technology, to individual
funds. The net revenue (expense) of the internal service funds is reported with
governmental activities. 1,503,909
Change in net assets of governmental activities $ 1,531,826
See accompanying notes to basic financial statements.
37
CITY OF LA PORTE, TEXAS
Statement of Net Assets
Proprietary Funds
September 30, 2010
Business -type Activities -
Enterprise Funds
La Porte Area Other
Utility Water Authority Funds
ASSETS
Current assets:
Cash and cash equivalents $ 678,751 $ 576,720 $ 256,696
Investments 896,641 1,244,270 84,921
Receivables, net of
allowance for uncollectibles 888,913 167,816 5,122
Accrued interest receivable 228 265 37
Miscellaneous receivables - - -
Material and supplies inventories, at cost 4,800 - -
Prepaid expenses - 71,059 -
Restricted cash and cash equivalents for:
Customer service deposits 503,260 - -
Cash and cash equivalents restricted for:
Current debt service - 684,768 -
Total current assets 2,972,593 2,744,898 346,776
Noncurrent assets:
Capital assets:
Land 224,308 - 2,084,469
Buildings and improvements 57,620 - 731,524
Improvements other than buildings 59,961,741 15,306,000 8,604,492
Vehicles and equipment 544,143 6,130 43,630
Construction in progress 4,931,320 123,680 -
Less accumulated depreciation (33,378,654) (7,237,170) (5,623,166)
Total noncurrent assets 32,340,478 8,198,640 5,840,949
Total assets 35,313,071 10,943,538 6,187,725
LIABILITIES
Current liabilities:
Accounts payable 292,296 104,077 23,377
Accrued salaries payable 82,472 - 27,135
Due to other funds - - 390,808
Other current liabilities - - 9,373
Interest payable 14,057 4,719 -
Accrued separation pay 30,000 - -
Payable from restricted assets:
Current portion of revenue bonds 262,500 585,000 -
Customer deposits 503,260 - -
Total current liabilities 1,184,585 693,796 450,693
Noncurrent liabilities:
Revenue bonds, net of current portion 1,312,500 3,625,058 -
Net pension obligation 156,029 - 47,920
Net OPEB obligation 441,077 - 102,776
Accrued separation pay 220,708 - 126,872
Total noncurrent liabilities 2,130,314 3,625,058 277,568
Total liabilities 3,314,899 4,318,854 728,261
NET ASSETS
Invested in capital assets, net of related debt 30,765,478 3,988,582 5,840,949
Restricted for debt service 779,785 680,049 -
Unrestricted (deficit) 452,909 1,956,053 (381,485)
Total net assets $ 31,998,172 $ 6,624,684 $ 5,459,464
See accompanying notes to basic financial statements.
38
Governmental
Activities —
Internal
Totals Service Funds
$ 1,512,167 $ 5,888,689
2,225,832 1,960,660
1,061,851 -
530 870
121,177
-
4,800 34,625
71,059 -
503,260 -
684,768 -
6,064,267 8,006,021
2,308,777 -
789,144 -
83,872,233 -
593,903 12,223,087
5,055,000 -
(46,238,990) (7,440,422)
46,380,067 4,782,665
52, 444, 334 12, 788, 686
419,750 555,884
109,607 33,135
390,808 -
9,373 -
18,776 -
30,000 -
847,500 -
503,260 -
2,329,074 589,019
4,937,558 -
203,949 -
543,853 -
347,580 95,619
6,032,940 95,619
8,362,014 684,638
40,595,009 4,782,665
1,459, 834 -
2,027,477 7,321,383
$ 44,082,320 $ 12,104,048
39
CITY OF LA PORTE, TEXAS
Statement of Revenues, Expenses and Changes in Fund Net Assets
Proprietary Funds
For The Year Ended September 30, 2010
Business -type Activities –
Enterprise Funds
La Porte Area Other
Utility Water Authority Funds
Operating revenues:
User fees $ 7,810,291 $ 929,497 $ 1,055,450
Operating expenses:
Personal services 3,075,553 - 948,532
Supplies 227,140 14,761 188,272
Other services and charges 3,211,650 903,420 233,051
Depreciation 1,799,710 461,171 296,282
Total operating expenses 8,314,053 1,379,352 1,666,137
Operating income (loss) (503,762) (449,855) (610,687)
Nonoperating revenues (expenses):
Interest income 12,003 25,186 1,889
Interest expense and fiscal charges (128,126) (156,871) -
Gain on sale of assets - - -
Total nonoperating revenue (expenses) (116,123) (131,685) 1,889
Income (loss) before contributions
and transfers (619,885) (581,540) (608,798)
Capital contributions 1,852,377 860,304 45,059
Transfers in - - 53,000
Transfers out (604,808) (61,576) (283,620)
Change in net assets 627,684 217,188 (794,359)
Total net assets — beginning 31,370,488 6,407,496 6
Total net assets —ending $ 31 $ 6 $ 5
See accompanying notes to basic financial statements.
40
Governmental
Activities —
Internal
Totals Service Funds
$ 9,795,238 $ 7,065,421
4,024,085 1,300,952
430,173 498,247
4,348,121 5,353,618
2,557,163 809,241
11,359,542 7,962,058
(1,564,304) (896,637)
39,078 34,496
(284, 997) -
39,668
(245, 919) 74,164
(1,810,223) (822,473)
2,757,740 42,268
53,000 2,297,775
(950,004) (13,661)
50,513 1,503,909
44,031,807 10,600,139
$ 44,082,320 $ 12,104,048
41
CITY OF LA PORTE, TEXAS
Statement of Cash Flows
Proprietary Funds
For The Year Ended September 30, 2010
Business -type Activities -
Enterprise Funds
La Porte Area Other
Utility Water Authority Funds
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from user fees $ 7,692,547 $ 920,004 $ 1,057,470
Cash payments to suppliers (3,521,456) (966,276) (186,881)
Cash payments for personal services (2,726,732) - (874,229)
Net cash provided (used) by operating activities 1,444,359 (46,272) (3,640)
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
Transfers from other funds 1,852,377 - 53,000
Transfers to other funds (604,808) (61,576) (283,620)
Net cash provided (used) by noncapital financing activies 1,247,569 (61,576) (230,620)
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES
Payments received from participants for debt service - 758,532 -
Payments received from participants for capital recovery - 101,772 -
Payments for capital acquisitions (2,309,879) (3,710) -
Proceeds from sale of assets - - -
Principal payments on revenue bonds (262,500) (525,000) -
Interest paid on debt (139,430) (181,992) -
Net cash used by capital and related financing activies (2,711,809) 149,602 -
CASH FLOWS FROM INVESTING ACTIVITIES
Interest on investments 13,034 26,301 2,098
Net Investments purchased (1,404,696) (2,414,033) (124,454)
Net Investments sold 1,739,590 2,707,648 325,305
Net cash used by investing activities 347,928 319,916 202,949
Net increase (decrease) in cash and cash equivalents 328,047 361,670 (31,311)
Balances- beginning of the year 853,964 899,818 288,007
Balances -end of the year $ 1,182,011 $ 1,261,488 $ 256,696
Reconciliation of operating income (loss) to net cash
provided (used) by operating activities:
Operating income (loss) $ (503,762) $ (449,855) $ (610,687)
Adjustments to reconcile operating income (loss) to net cash
provided (used) by operating activities:
Depredation expense 1,799,710 461,171 296,282
(Increase) decrease in accounts receivable (127,020) (9,493) 3,905
(Increase) decrease in inventories 79 - -
(Increase) decrease in prepaid expenses - (71,059) -
Increase (decrease) in accrued salaries payable 17,592 - 3,421
Increase (decrease) in accounts payable (82,745) 22,964 (12,300)
Increase (decrease) in other current liabilities - - 641
Increase (decrease) in due to other funds - - 246,102
Increase (decrease) in customer utility deposits 9,276 - (1,885)
Increase (decrease) in accrued employee separation 15,724 - (8,733)
Increase (decrease) in net pension obligation 89,374 - 26,923
Increase (decrease) in net OPEB obligation 226,131 - 52,691
Total adjustments 1,948,121 403,583 607,047
Net cash provided (used) by operating activities $ 1,444,359 $ (46,272) $ (3,640)
Reconciliation of total cash and cash equivalents:
Current assets - cash and cash equivalents $ 678,751 $ 576,720 $ 256,696
Restricted assets - cash and cash equivalents: 503,260 684,768 -
Total cash and cash equivalents $ 1,182,011 $ 1,261,488 $ 256,696
Noncash investing, capital and financing activities:
Increase (decrease) in fair value of assets $ 356 $ 494 $ 55
Contributions of capital assets 1,852,377 - 45,059
Refunding bond issue - 4,114,508 -
See accompanying notes to basic financial statements.
42
Governmental
Activities —
Internal
Totals Service Funds
$ 9,670,021 $ 7,064,171
(4,674,613) (5,924,914)
(3,600,961) (1,305,792)
1,394,447 (166,535)
1,905,377 2,297,775
(950,004) (13,661)
955,373 2,284,114
758,532 -
101,772 -
(2,313,589) (801,779)
- 131,200
(787,500) -
(321,422) -
(2,562,207) (670,579)
41,433 37,347
(3,943,183) (4,060,067)
4,772,543 4,761,916
870,793 739,196
658,406 2,186,196
2,041,789 3,702,493
$ 2,700,195 $ 5,888,689
$ (1,564,304) $ (896,637)
2,557,163 809,241
(132,608) (929)
79 1,982
(71,059) -
21,013 3,052
(72,081) (75,031)
641 (321)
246,102 -
7,391 -
6,991 (7,892)
116,297 -
278,822 -
2,958,751 730,102
$ 1,394,447 $ (166,535)
$ 1,512,167 $ 5,888,689
1,188,028 -
$ 2,700,195 $ 5,888,689
$ 905 $ 778
1,897,436 42,268
4,114, 508 -
43
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44
CITY OF LA PORTE, TEXAS
Notes to the Financial Statements
September 30, 2010
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 Reporting Entity
The City's basic financial statements include the accounts of all City operations. The City, with its elected
governing body of mayor and eight council members, is considered a primary government. As required by
generally accepted accounting principles, the basic financial statements include the City and its component
units, entities for which the government is considered to be financially accountable. Blended component
units, although legally separate entities, are, in substance, part of the government's operations. All
component units have been included as blended component units because of the significance of their
operational and financial relationships with the City.
The La Porte Area Water Authority (the "Authority ") is governed by a five - member board appointed by the
City Council. Although it is a legally separate entity, the Authority provides services almost exclusively for
the City's water operations, and is in substance a part of the City's primary operations. The Authority was
created by the City to finance the operations involved in obtaining surface water supplies and converting
these supplies to potable water. This water is sold primarily to the City of La Porte (86 %) with the remainder
being sold to other neighboring political subdivisions. The operations of the Authority are reported as a
proprietary fund type.
The Tax Increment Reinvestment Zone One (the "Zone ") is governed by a nine - member board appointed by
the City Council. The Zone provides benefits exclusively for the City through reinvestment financing of ad
valorem taxes, which are utilized for capital improvements for the City of La Porte. The Zone is presented
as a governmental fund type.
The Section 4B Sales Tax corporation provides services that exclusively benefit the City of La Porte and is
governed by a seven - member board appointed by City Council. The Section 4B Sales Tax Corporation is
presented as a governmental fund type.
Complete financial statements for each of the individual component units may be obtained through the City
of La Porte.
C. Basis of Presentation
Government Wide Statements:
The government -wide financial statements (i.e. the statement of net assets and the statement activities)
report information on all of the nonfiduciary activities of the City, including the component units. As a
general rule the effect of interfund activity has been removed from these statements. Exceptions to this
general rule are payments reasonably equivalent in value to the interfund services provided and other
charges between the City's various functions of the government. Elimination of these charges would distort
the direct costs and program revenues reported for the various functions concerned. Governmental
activities, which are normally supported by taxes and intergovernmental revenues, are reported separately
from business -type activities, which rely significantly on fees and charges for support.
45
CITY OF LA PORTE, TEXAS
Notes to the Financial Statements
September 30, 2010
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) 2010 Certificate of Obligation Fund - this fund is used to account for the proceeds and expenditures
related to street, drainage and park improvements.
(c) Capital Projects Fund - This fund is used to account for capital projects that are normally small in
nature and generally effect the general operation of the city.
46
CITY OF LA PORTE, TEXAS
Notes to the Financial Statements
September 30, 2010
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 Accounting
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, 2010
1. Summary of significant accounting policies — Continued
Governmental fund financial statements are reported using the current financial resources measurement
focus and are accounted for using the modified accrual basis of accounting. Under the modified accrual
basis of accounting, revenues are recognized when susceptible to accrual; i.e., when they become both
measurable and available. "Measurable" means the amount of the transaction can be determined and
"available" means collectible within the current period or soon enough thereafter to be used to pay liabilities
of the current period. For this purpose, the government considers revenues to be available if they are
collected within 60 days of the current fiscal period.
Most revenue sources are recorded as revenues when received in cash because they are generally not
measurable until actually received. The revenues susceptible to accrual are property taxes, sales taxes,
hotel taxes, franchise fees, interest income and intergovernmental revenues. A one -year availability period
is used for recognition of all other Governmental Fund revenues. Expenditures are recorded when the
related fund liability is incurred. However, debt service expenditures, as well as expenditures related to
compensated absences are recorded only when payment is due.
E. Budgetary Information
Annual budgets are adopted on a basis consistent with generally accepted accounting principles. Annual
appropriated budgets are adopted for the general, special revenue funds and debt service funds. All annual
appropriations lapse at fiscal year -end. Project length financial plans are adopted for all capital projects
funds and are revised annually.
The City uses the following procedures in establishing the budgets reflected in the financial statements:
1. Prior to September, 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 legal level for expenditure (expense) budget control is the Fund Level. The directors are given
latitude to transfer budget funds within their departments, with the exception of personnel services. 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, 2010
1. Summary of significant accounting policies — Continued
F. Cash and Investments
Cash includes amounts in demand deposits, short-term investments, which mature within ninety days of the
fiscal year end, and various petty cash funds. The short-term investments are stated at cost or amortized
cost, which approximate fair value. The short-term investments consist of U.S. Treasury Bills and deposits
in the Texas Local Government Investment Pool (TexPool), the Local Government Investment Cooperative
(LOGIC) and Texas Short Term Asset Reserve Program (TexStar) all of which have the general
characteristics of a demand deposit account. For purpose of the statement of cash flows, Proprietary Fund
types consider temporary investments with a maturity of three months or less when purchased to be cash
equivalents.
In accordance with Statement No. 31, the City reports all investments at fair value, except for "money
market investments" and "2a7 -like pools ". Money market investments, which are short-term highly liquid
debt instruments that may include U.S. Treasury and agency obligations, are reported at amortized costs.
Investment positions in external investment pools that are operated in a manner consistent with the SEC's
Rule 2a7 of the Investment Company Act of 1940, such as TexPool, LOGIC and TexStar are reported using
the pools' share price.
G. 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 Intergovernmental Interest Other Accounts Total
General $ 1,932,409 $ - $ 1,565 $ - $ 2,421,241 $ 4,355,215
Capital Projects - - 1,057 - - 1,057
Nonmajorgovernmental 747,479 672,208 1,130 61,955 - 1,482,772
Utility - - 228 - 940,815 941,043
La Porte Area
Water Authority - - 265 - 167,816 168,081
Nonmajor enterprise - - 37 - 5,122 5,159
Intemalservicefunds - - 870 121,177 - 122,047
Gross Receivables 2,679,888 672,208 5,152 183,132 3,534,994 7,075,374
Less: allowance for
uncollectibles (703,699) - - - (649,235) (1,352,934)
Net total receivables $ 1,976,189 $ 672,208 $ 5,152 $ 183,132 $ 2,885,759 $ 5,722,440
49
CITY OF LA PORTE, TEXAS
Notes to the Financial Statements
September 30, 2010
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
General Governmental General Total
Delinquent property taxes receivable $ 197,719 $ 62,790 $ - $ 260,509
Court fines 136,772 - - 136,772
Emergency medical services 896,000 - - 896,000
Mowing and demolition services 403,767 - - 403,767
Hotel taxes - 45,534 - 45,534
Intergovernmental services - - 112,344 112,344
Grant revenues - 250 - 250
Miscellanous 3,690 - - 3,690
Total deferred / uneamed revenue $ 1,637,948 $ 108,574 $ 112,344 $ 1,858,866
H. Use of Estimates
The preparation of financial statements in conformity with generally accepted accounting principles requires
management to make estimates and assumptions that affect the reported amount of assets and liabilities
and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported
amounts of revenues, expenditures, and expenses during the reporting period. Actual results may differ
from those estimates.
I. Indirect Expense Allocations
It is the policy of the City not to allocate indirect expenses to various functions in the Government -wide
Statement of Activities.
J. Restricted Assets
The City applies restricted resources when an expense is incurred for purposes for which both restricted
and unrestricted net assets are available.
K. Inventories
Inventories consist of material and supplies and are valued at cost (first -in, first -out). Inventories for all
funds consist of expendable supplies held for consumption and the cost thereof is recorded as an
expenditure at the time individual inventory items are issued. Reported inventories in the Governmental
Funds are offset by a fund balance reserve, which indicates they are unavailable for appropriation even
though they are a component of net current assets.
L. Interfund Transactions
Transactions between funds that would be treated as revenues, expenditures or expenses if they involved
organizations external to the governmental unit are accounted for as revenues, expenditures or expenses in
50
CITY OF LA PORTE, TEXAS
Notes to the Financial Statements
September 30, 2010
1. Summary of significant accounting policies — Continued
the funds involved. Transactions, which constitute reimbursement to a fund for expenditures or expenses
initially made from that fund, which are properly attributable to another fund, are recorded as expenditures
or expenses in the reimbursing fund and as reductions of the expenditure or expense in the fund that is
reimbursed. All other legally authorized transfers are treated as transfers and are included in the results of
operations of both Governmental and Proprietary Funds.
M. Capital Assets
Capital assets, which include property, plant, equipment and infrastructure assets, are reported in the
applicable governmental or business -type activities columns in the government -wide financial statements
and in the fund financial statements for proprietary funds. Capital assets are defined by the government as
assets with an initial unit cost of $5,000 or more and an estimated useful life exceeding two years. Such
assets are recorded at historical cost or estimated historical cost if actual historical cost is not available.
Donated capital assets are recorded at their fair market value on the date donated. Repairs and
maintenance that do not add to the value of the asset or extend assets lives are recorded as expenses.
Interest cost during construction is capitalized when the effect of capitalization materially impact the financial
statements. During the year ended September 30, 2010, no interest costs were capitalized.
Property, plant and equipment of the primary government, as well as the component units, are depreciated
using the straight line method over the following estimated useful lives:
Buildings 20 years
Water and Sewer System 20 — 40 years
Infrastructure 20 — 30 years
Machinery and Equipment 4 —10 years
Improvements 20 years
N. Compensated Absences
The City's employees earn vacation and sick leave, which may either be taken or accumulated, up to certain
amounts, until paid upon termination or retirement. For all funds, this liability reflects amounts attributable to
cumulative employee services already rendered, where the payment is probable and can be reasonably
estimated. The current and long -term portions of the governmental fund type liabilities are recorded in the
Government -Wide Statement of Net Assets. The proprietary fund type liability is recorded as a liability in the
individual proprietary funds since payment of this liability will be made from resources of these funds. Also,
for the governmental activities, compensated absences are generally liquidated by the general fund.
Policies relating to the accrual and payment of these benefits are as follows:
• Vacation — Employees earn from 10 to 25 days of vacation per year. Upon separation, employees
are paid for all accumulated vacation leave (up to one and one half times their annual accrual rate).
• Sick Leave — Full time 8 hour employees accrue 3.70 hours per pay period. Full time 24 hour
employees accrue 5.91 hours per pay period and civil service employees accrue 15 days per
calendar year. The maximum sick leave time which may be accumulated by any employee shall be
90 days for regular full time employees. For 24 hour shift personnel, the maximum accrual is 1,152
hours. Civil service employees may accrue unlimited sick leave.
51
CITY OF LA PORTE, TEXAS
Notes to the Financial Statements
September 30, 2010
1. Summary of significant accounting policies — Continued
The liability for compensated absences at September 30, 2010 is comprised of the following:
Governmental Business Type Total
Vacation $ 1,059,085 $ 178,211 $ 1,237,296
Sick Leave 2,139,328 199,369 2,338,697
Total All Funds $ 3,198,413 $ 377,580 $ 3,575,993
O. Long -term Obligations
In the government -wide financial statements and proprietary fund types in the fund financial statements,
long -term debt and other Tong -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.
P. Reservations of Fund Balances
The fund balance reserves for revenue bond retirement and construction, inventory and debt service are
discussed in Notes 5 and 1(K), respectively. Other reserves of funds are for the Municipal Court Building
Security Fees and Municipal Court Technology Fees, park zone, confiscated funds, animal control and
judicial fund, child safety fees and law enforcement training.
Q. Net Assets
Net assets represent the difference between assets and liabilities. Net assets invested in capital assets, net
of related debt consists of capital assets, net of accumulated depreciations, reduced by the outstanding
balances of any borrowing used for the acquisition, construction or improvements of those assets and
adding back unspent proceeds. Net assets are reported as restricted when there are limitations imposed on
their use either through the enabling legislations adopted by the city or through external restrictions imposed
by creditors, grantors or laws or regulations of other governments.
2. Cash, Cash Equivalents and Investments
Cash and Cash Equivalents
The City reports cash and cash equivalents in the City's statement of cash flows for Proprietary Fund Types
and in all other financial statements of financial position. The City considers cash and cash equivalents to be
cash on hand, demand deposits, certificates of deposit, balances in privately managed public funds
investment pools and money market mutual funds.
Investments
Investments consist of balances in privately managed public funds investment pools, money market mutual
funds and investments in United States (US) Agency securities. The City reports all investments at fair value
based on quoted market prices at year -end date.
The Texas Public Funds Investment Act (PFIA), as prescribed in Chapter 2256 of the Texas Government
Code, regulates deposits and investment transactions of the City.
52
CITY OF LA PORTE, TEXAS
Notes to the Financial Statements
September 30, 2010
2. Cash, Cash Equivalents and Investments - Continued
In accordance with applicable statutes, the City has a depository contract with an area bank (depository)
providing for interest rates to be earned on deposited funds and for banking charges the City incurs for
banking services received. The City may place funds with the depository in interest and non - interest bearing
accounts. Statutes and the depository contract require full security for all funds in the depository institution
through federal depository insurance or a combination of federal depository insurance and acceptable
collateral securities and /or an acceptable surety bond. The City requires the depository to place the
collateral securities with an independent trustee institution. The depository is required to deliver the
safekeeping receipts to the City. In accordance with Texas statutes, the safekeeping receipts are in the
name of the depository with proper indication of pledge of the collateral securities by the depository to
secure funds of the City. The City must approve all collateral securities pledged and also must approve in
writing any changes to the pledged collateral securities.
The City has adopted a written investment policy regarding the investment of its funds as defined by the PFIA.
The PFIA also requires the City to have independent auditors perform test procedures related to investment
practices as provided by the Act. The City complies with the requirements of the Act and with local policies.
The City's investment policy permits investment of City funds in only the following investment types,
consistent with the strategies and maturities defined in the policy:
D. 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 Tess than A or its equivalent.
➢ Certificates of Deposit issued by state and national banks or savings and on associations that have its
main office or branch office in this state are:
a. guaranteed or insured by the Federal Deposit Insurance Corporation; or
b. secured by obligations that are described in 1 -5 above, which are intended to include all direct
federal agency or instrumentality issued mortgage backed securities that have a market value of not
less than the principal amount of the certificates or in any other manner and amount provided by law
for deposit of the investing entities.
➢ Certificates of Deposit and share certificates issued by a state or federal credit union that have its main
office or branch office in this state that are guaranteed or insured by the Federal Deposit Insurance
Corporation or the National Credit Union Share Insurance Fund, or are secured as to principal by
obligations described in 1 through 5 above in any other manner and amount provided by law for the City
deposits.
➢ Fully collateralized repurchase agreements having a defined termination date, secured by obligations of
the United States, its agencies or instrumentalities, pledged with a third party selected or approved by
the political entity, and placed through a primary government securities dealer, as by the Federal
Reserve or through a financial institution domiciled in the State of Texas.
➢ Prime domestic banker's acceptances, defined as a banker's acceptance with a remaining term of 270
days or Tess, if the short-term obligations of the accepting bank or its parent are rated at least "A -1" or
"P -1" or equivalent by at least one nationally recognized credit rating agency.
➢ Commercial paper that is rated at least "A -1" or "P -1" or the equivalent by either (a) two nationally
recognized credit agencies or (b) one nationally recognized credit rating agency if the paper is fully
secured by an irrevocable letter of credit issued by a U.S. or State bank.
➢ SEC - registered no -load money market mutual fund (MMMF), with a dollar weighted average portfolio
maturity of 90 days or less, includes in their investment objectives the maintenance of a stable net asset
value of $1 for each share.
53
CITY OF LA PORTE, TEXAS
Notes to the Financial Statements
September 30, 2010
2. Cash, Cash Equivalents and Investments - Continued
➢ SEC - registered, no -load money market mutual funds (MMMF) that have an average weighted maturity
of Tess 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 Tess than "AAA"
or its equivalent.
➢ Authorized government investment pools that invest solely in obligations of any of the above
investments provided that the pools are rated no lower than "Aaa" or "AAA" or an equivalent by at least
one nationally recognized rating service.
Deposit and Investment Amounts
At year -end, the City recorded cash on hand, demand deposits, certificates of deposit, balances in
privately managed public funds investment pools, money market mutual funds, and investments stated
at fair value of $55,426,991.
The following schedule shows the City's recorded cash and investments at year -end:
Deposits and
Cash Pooled Funds Investments Total
General $ 893,364 $ 9,252,991 $ 3,336,264 $ 13,482,619
Debt Service 205,260 2,118,740 773,784 3,097,784
Capital Projects 1,431,318 16,910,116 3,259,933 21,601,367
Special Revenue Funds 781,571 2,622,237 1,066,037 4,469,845
Total Governmental Funds 3,311,513 30,904,084 8,436,018 42,651,615
Internal Service Funds 520,101 5,368,588 1,960,660 7,849,349
Total Governmental Activities 3,831,614 36,272,672 10,396,678 50,500,964
Enterprise 326,398 2,320,946 2,278,683 4,926,027
Total $ 4,158,012 $ 38,593,618 $ 12,675,361 $ 55,426,991
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 $ 334,682
Net increase (decrease) in fair value of investments 5,016
Total investment income $ 339,698
Investment Risks
At year -end, the City had the following investments, shown below for all funds by investment type:
Investment Type Fair Value
Public funds investment pools $ 38,593,618
Certificates of deposit 10,623,069
US Agency securities 2,000,000
Total $ 51,216,687
54
CITY OF LA PORTE, TEXAS
Notes to the Financial Statements
September 30, 2010
2. Cash, Cash Equivalents and Investments - Continued
Interest Rate Risk
At year -end, the City had the following investments subject to interest rate risk disclosure, under U.S.
generally accepted accounting principles, by investment type:
Fair Weighted Average
Value Maturity (Months)
Public funds investment pools $38,593,618 2.37
Federal Home Loan Bank (FHLB) 2,005,016 0.97
Total fair value $40,598,634
Portfolio weighted average maturity 3.35
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.
Percentage
of Total
Investment Type Fair Value Portfolio
Investment Pools $ 38,593,618 70%
Certificates of deposit 10,623,069 25%
US Agency Securities 2,005,016 5%
$ 51,221,703 100%
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 AAAm by Standard and Poor's.
Federal Home Loan Bank (FHLB) agency notes were rated AAA by Standard & Poor's, and AAA by
Moody's Investors Service.
All credit ratings met acceptable levels required by legal guidelines prescribed in both the PFIA and the
City's investment policy. Legal guidelines require an Al rating by Standard & Poor's and a P -1 rating by
Moody's Investors Service for investments in commercial paper.
55
CITY OF LA PORTE, TEXAS
Notes to the Financial Statements
September 30, 2010
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 effective
tax rate and the rollback rate tax rate, qualified voters of the City may petition for an election to determine
whether to limit the tax rate to no more than the rollback 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 February 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 2009 -10
tax year were $0.619 and $0.091, respectively, per $100 of assessed valuation. The 2010 assessed value
and total tax levy as adjusted through September 30, 2010 were $2,329,926,727 and $16,542,483
respectively.
The City has enacted an ordinance providing for the exemption of twenty percent (20 %) of the assessed
value of residential homesteads plus and additional $60,000 for persons 65 years of age or older for
property taxes. An exemption of $60,000 is allowed for disabled persons on homesteads and up to $12,000
is allowed for disabled veterans on any one piece of property. Additionally, the market value of agricultural
land is reduced to agricultural value for purposes of the City's tax levy calculation.
56
CITY OF LA PORTE, TEXAS
Notes to the Financial Statements
September 30, 2010
4. Capital Assets
Capital asset activity for the year ended September 30, 2010 was as follows:
Beginning Ending
Balance Retirements & Balance
10/01/09 Additions Adjustments 09/30/10
Governmental activities:
Capital assets, not being depreciated:
Land $ 9,703,983 $ 39,671 $ (43,844) $ 9,699,810
Construction in progress 5,565,123 3,216,745 (4,087,050) 4,694,818
Total capital assets, not being depreciated 15,269,106 3,256,416 (4,130,894) 14,394,628
Capital assets, being depreciated:
Buildings and improvements 34,668,088 225,798 (63,982) 34,829,904
Improvements other than buildings 9,223,362 4,408,113 3,758,722 17,390,197
Infrastructure 33,943,387 459,654 344,219 34,747,260
Machinery and equipment 15,756,882 1,217,916 (1,769,095) 15,205,703
Total capital assets being depreciated 93,591,719 6,311,481 2,269,864 102,173,064
Less accumulated depreciation for:
Buildings and improvements 12,770,732 1,466,957 (14,511) 14,223,178
Improvements other than buildings 5,658,749 471,891 (93,779) 6,036,861
Infrastructure 18,396,965 1,428,358 (91) 19,825,232
Machinery and equipment 9,500,921 1,156,008 (1,659,448) 8,997,481
Total accumulated depreciation 46,327,367 4,523,214 (1,767,829) 49,082,752
Total capital assets, being depreciated, net 47,264,352 1,788,267 4,037,693 53,090,312
Governmental activities capital assets, net $ 62,533,458 $ 5,044,683 $ (93,201) $ 67,484,940
57
CITY OF LA PORTE, TEXAS
Notes to the Financial Statements
September 30, 2010
4. Capital Assets — Continued
Beginning Ending
Balance Retirements & Balance
10/01/09 Additions Adjustments 09/30/10
Business - type activities:
Capital assets, not being depreciated:
Land $ 2,308,777 $ - $ - $ 2,308,777
Construction in progress 10,100,895 1,864,793 (6,910,688) 5,055,000
Total capital assets, not being depreciated 12,409,672 1,864,793 (6,910,688) 7,363,777
Capital assets, being depreciated
Buildings and improvements 1,172,730 - (383,586) 789,144
Improvements other than buildings 76,569,644 771,025 6,531,564 83,872,233
Machinery and equipment 530,564 63,339 - 593,903
Total capital assets, being depreciated 78,272,938 834,364 6,147,978 85,255,280
Less accumulated depreciation for:
Buildings and improvements 894,323 27,598 (351,921) 570,000
Improvements other than buildings 42,783,553 2,502,268 - 45,285,821
Machinery and equipment 355,872 27,297 - 383,169
Total accumulated depreciation 44,033,748 2,557,163 (351,921) 46,238,990
Total capital assets, being depreciated net 34,239,190 (1,722,799) 6,499,899 39,016,290
Business -type activities capital assets, net $ 46,648,862 $ 141,994 $ (410,789) $ 46,380,067
58
CITY OF LA PORTE, TEXAS
Notes to the Financial Statements
September 30, 2010
4. Capital Assets — Continued
Depreciation expense was charged to functions /programs of the primary government as follows:
Governmental activities:
General government $ 507,743
Public safety 1,027,322
Public works 1,513,097
Culture and recreation 665,811
Capital assets held by the government's internal service funds are
charged to the various functions based on their usage of the assets 809,241
Total depreciation expense - governmental activities $ 4,523,214
Business -type activities:
Water & sewer services $ 2,260,881
Airport 165,071
Golf course 131,211
Total depreciation expense - business -type activities $ 2,557,163
The City has active construction projects as of September 30, 2010. Total accumulated commitments for
ongoing capital projects are composed of the following:
Remaining
Construction Contract
In Progress Balance
Utility Capital Projects Fund $ 4,769,064 $ 111,830
Hotel /Motel Occupancy Tax Fund 52,316 -
LPAWA 123,680 12,500
TIRZ 201,170 -
General CIP 3,625,002 2,662,801
S1998 General Obligation Bonds 475,452 9,898
S2004 Cert of Oblogation Bonds 242,891 -
S2005 Cert. of Obligation Bonds 58,511 72,902
S2006 Cert. of Obligation Bonds 162,255 560,679
S2006 GO Bonds 97,986 1,418,108
S2007 Cert of Obligation Bonds - 4,538
Total $ 9,808,327 $ 4,853,256
59
CITY OF LA PORTE, TEXAS
Notes to the Financial Statements
September 30, 2010
5. Long Term Liabilities
At September 30, 2010 bonds payable consisted of the following individual issues:
Govemmental Business -type
• 2002 Limited Tax Bonds $ 4,050,000 $ -
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 5,890,000 -
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 6,310,000 -
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 1,475,000 -
due in annual payments through March 15, 2015; interest at 2.8% to 3.8%
$1,800,000 issued for water and sewer improvements and fire truck.
• 2006 Public Property Finance Contractual Obligation - 1,575,000
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 1,060,000 -
due in annual payments through March 15, 2005; interest at 3.625% to 4.25%
$1,200,000 issued for park improvments.
• 2006 Certificates of Obligation 5,095,000 -
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 7,625,000 -
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.
• 2010 Certificates of Obligation 6,265,000 -
due in annual payments through March 15, 2026; interest at 3.00% to 4.00%
$6,265,000 issued for street, drainage and park improvements
• 2010 General Obligation Refunding Bonds 4,295,000 -
due in annual payments through March 15, 2020; interest at 2.00% to 4.00%
$4,295,000 issued to refund previous debt.
• 2010 LPAWA Contract Revenue Refunding Bonds - 4,085,000
due in annual payments through March 15, 2017; interest at 2.50% to 4.00%
$4,085,000 issued to refund debt.
Total Bonds Payable $ 42,065,000 $ 5,660,000
60
CITY OF LA PORTE, TEXAS
Notes to the Financial Statements
September 30, 2010
5. Long Term Liabilities - Continued
Changes in Outstanding Debt -
Transactions for the year ended September 30, 2010 are summarized as follows:
Balance Issues Balance
October 1, or Payments or September 30, Due within
2009 Additions Expenditures 2010 one year
Governmental Type Activities
General obligation bonds $ 15,190,000 $ 4,295,000 $ 3,770,000 $ 15,715,000 $ 995,000
Certificates of obligation 22,445,000 6,265,000 2,360,000 26,350,000 1,070,000
Premium on debt issues 302,015 224,008 47,400 478,623 -
Compensated absences 2,964,115 304,841 70,543 3,198,413 149,000
Net pension obligation 554,740 3,200,285 2,447,854 1,307,171 -
Net OPEB obligation 1,554,831 2,119,529 458,254 3,216,106 -
Arbitrage 304,474 - - 304,474 94,797
Retainage payable 102,447 - 102,447 - -
Total governmental type activities 43,417,622 16,408,663 9,256,498 50,569,787 2,308,797
Business Type Activities
Revenue bonds 4,605,000 4,085,000 4,605,000 4,085,000 585,000
Public property finance
contractual obligation 1,837,500 - 262,500 1,575,000 262,500
Refunding gain - 13,212 - 13,212 -
Premium on bonds - 111,846 - 111,846 -
Compensated absences 370,588 16,181 9,189 377,580 30,000
Net pension obligation 87,652 520,978 404,681 203,949 -
Net OPEB obligation 265,031 359,452 80,630 543,853 -
Total business type activities 7,165,771 5,106,669 5,362,000 6,910,440 877,500
Total of all activities $ 50,583,393 $ 21,515,332 $ 14,618,498 $ 57,480,227 $ 3,186,297
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. A liability of $94,797 has been determined to be
due in fiscal 2011 and 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, 2010
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, 2010.
Below is a reconciliation of the various restricted cash and cash investments:
Customer Deposits Payable $ 503,260
Debt Service 684,768
Total Restricted Cash and Cash Investments
as of September 30, 2010 $ 1,188,028
In May 2010, the City refunded $4.375 million in general obligation and certificates of obligation debt and
issued $4.295 million in certificates of obligation. The net carrying amount of the old debt and the
reacquisition price were approximately the same amount. The transaction resulted in an economic gain of
$345,083.
On May 13, 2010 the La Porte Area Water Authority issued $4.085 million in Contract Revenue Refunding
Bonds, Series 2010, with an average interest rate of 2.773 %. The refunded bonds were considered to be
defeased. The net carrying amount of the old debt exceeded the price requisition by $13,212. This amount
is being netted against the new debt and amortized over the remaining life of the refunded debt, which is
shorter to the life of the new debt issued. The authority completed the current refunding to reduce its debt
service payments over the next 7 years by $314,685 and to obtain an economic gain (difference between
the present values of the old and new debt service payments) of $295,735. The bonds are payable from the
net revenue of the Authority. The bonds are in $5,000 denominations. Interest on all bonds is payable on
March 15 and September 15 of each year until maturity. The Authority is in compliance with all significant
requirements and restrictions contained in the bond resolution.
Also on May 13, 2010, the city issued new certificates of obligation totaling $6.265 million to provide funds
for street, drainage and park improvements. These certificates have interest rates ranging from 3% to 4%
and are payable in annual payments through March 15, 2026.
62
CITY OF LA PORTE, TEXAS
Notes to the Financial Statements
September 30, 2010
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, 2010, are
as follows:
General Obligation Bonds
Governmental Activities Business -type Activities
Year Ending
September 30 Principal Interest Principal Interest Total
2011 $ 995,000 $ 641,697 $ - $ - $ 1,636,697
2012 1,045,000 560,407 - - 1,605,407
2013 1,045,000 525,519 - - 1,570,519
2014 1,165,000 487,731 - - 1,652,731
2015 1,175, 000 446,179 - - 1,621,179
2016 -2020 5,955,000 1,545,647 - - 7,500,647
2021 -2025 4,335,000 487,170 - - 4,822,170
Total $ 15,715,000 $ 4,694,350 $ - $ - $ 20,409,350
Certificate of Obligations
Governmental Activities Business -type Activities
Year Ending
September 30 Principal Interest Principal Interest Total
2011 $ 745,000 $ 1,134,877 $ 262,500 $ 53,996 $ 2,196,373
2012 1,125,000 1,015,861 262,500 44,179 2,447,540
2013 1,245,000 972,926 262,500 34,361 2,514,787
2014 1,320,000 925,121 262,500 24,544 2,532,165
2015 1,385,000 873,161 262,500 14,726 2,535,387
2016 -2020 7,895,000 3,473,088 262,500 4,909 11,635,497
2021 -2025 9,900,000 1,634,378 - - 11,534,378
2026 -2029 2,735,000 200,137 - - 2,935,137
Total $26,350,000 $ 10,229,549 $1,575,000 $ 176,715 $38,331,264
Revenue Bonds
Governmental Activities Business -type Activities
Year Ending
September 30 Principal Interest Principal Interest Total
2011 $ - $ - $ 585,000 $ 104,488 $ 689,488
2012 - - 605,000 88,150 693,150
2013 - - 625,000 73,556 698,556
2014 - - 630,000 58,650 688,650
2015 - - 650,000 41,838 691,838
2016 -2020 - - 990,000 29,250 1,019,250
Total $ - $ - $ 4,085,000 $ 395,932 $ 4,480,932
63
CITY OF LA PORTE, TEXAS
Notes to the Financial Statements
September 30, 2010
5. Long Term Liabilities — Continued
Defeased Bonds Outstanding —
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.
6. Pension Benefits
Plan Descriptions
The City provides pension benefits for all of its eligible employees, except firefighters, through a non-
traditional, joint contributory, hybrid defined benefit plan (the "Plan ") in the statewide Texas Municipal
Retirement System (TMRS), an agent multiple - employer public employee retirement system. The plan
provisions that have been adopted by the City are within the options available in the governing state statutes
of TMRS.
TMRS issues a publicly available comprehensive annual financial report that includes financial statements
and required supplementary information (RSI) for TMRS; the report provides detailed explanation of the
contributions, benefits and actuarial methods and assumptions used by the system. This report may be
obtained by writing to TMRS, P.O. Box 149153, Austin, Texas 78714 -9153 or by calling 800 - 924 -8677; in
addition, the report is available on TMRS' website at www.TMRS.com. In addition, the city provides pension
benefits to its volunteer firemen through the Texas Statewide Emergency Services Personnel Retirement
Fund, one of 150 administered by the Fire Fighters' Pension Commissioner, a cost sharing multiple
employer pension system. That report may be obtained by writing to Firefighters Pension Commission, P.O.
Box 12577, Austin, Texas 78711. Both Plans are more fully described below.
Texas Municipal Retirement System
The plan provisions are adopted by the governing body of the City, within the options available in the state
statutes governing TMRS. Benefits depend upon the sum of the employee's contributions to the Plan, with
interest, and the City financed monetary credits, with interest. At the date the Plan began, the city granted
monetary credits for service rendered before the Plan began of a theoretical amount equal to two times what
would have been contributed by the employee, with interest, prior to the establishment of the Plan.
Monetary credits for service since the Plan began are a percentage (100 %, 150% or 200 %) of the
employee's accumulated contributions. In addition, the City can grant annually another type of monetary
credit referred to as an updated service credit which is a theoretical amount which, when added to the
employee's accumulated contributions and the monetary credits for service since the Plan began, would be
the total monetary credits and employee's contributions accumulated with interest if the employee's
contribution rate and City's matching percentage had always been in existence and if the employee's salary
had always been the average of his salary in the last three years and that are one year before the effective
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.
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CITY OF LA PORTE, TEXAS
Notes to the Financial Statements
September 30, 2010
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. Plan provisions for the
City were as follows:
Plan Year 2009 Plan Year 2010
Employee deposit rate 7.00% 7.00%
Matching ratio (city to employee) 2 to 1 2 to 1
Years required for vesting 10 10
Service retirement eligibility
(expressed as age /years of service) 60/10,0/20 60/10,0/20
Updated service credit 100% repeating, 100% repeating,
transfers transfers
Annuity increase (to retirees) 70% of CPI repeating 70% of CPI repeating
Contributions
Under the state law governing TMRS, the contribution rate for each City is determined annually by the
actuary, using Projected Unit Credit actuarial cost method. This rate consist of the normal cost contribution
rate and the prior service cost contribution rate, which is calculated to be a level percent of payroll from year
to year. The normal cost contribution rate finances the portion of an active member's projected benefit
allocated annually; the prior service contribution rate amortizes the unfunded (overfunded) actuarial liability
(asset) over the applicable period for the city. Both the normal cost and prior service contribution rates
include recognition of the projected impact of annually repeating benefits, such as Updated Service Credits
and Annuity Increases.
The City contributes to the TMRS plan at an actuarially determined rate. Both the employees and the City
make contributions monthly. Since the City needs to know its contribution rate in advance for budgetary
purposes, there is a one -year delay between the actuarial valuation that serves as the basis for the rate and
the calendar year when the rate goes into effect. The annual pension cost and net pension obligation (asset)
are as follows:
Fiscal Year 2010 2009 2008
Annual required contribution (ARC) $ 3,712,311 $ 3,170,387 $ 2,033,168
Interest on net pension obligation 48,178 - -
Adjustment to the ARC ( 39,226) - -
Annual pension cost 3,721,263 3,170,387 2,033,168
Contributions made ( 2,852,535) ( 2,527,995) ( 2,033,168)
Increase in net pension obligation 868,728 642,392 -
Net pension obligation, beginning of year 642,392 - -
Net pension obligation, ending of year $ 1,511,120 $ 642,392 $ -
Percentage of ARC contribution 76.7% 79.7% 100.0%
65
CITY OF LA PORTE, TEXAS
Notes to the Financial Statements
September 30, 2010
6. Pension Benefits — Continued
The required contribution rate for fiscal year 2010 was determined as part of the December 31, 2007 and
2008 actuarial valuations. Additional information as of the latest actuarial valuation, December 31, 2009,
also follows:
Actuarial Valuation Date 12/31/09 12/31/08 12/31/07
Actuarial cost method Projected Unit Credit Projected Unit Credit Projected Unit Credit
Amortization method Level percent Level percent Level percent
of payroll of payroll of payroll
Remaining amortization period 28 years - closed 29 years - closed 30 years - closed
Asset valuation method 10 year smoothed Amortized cost Amortized cost
market
Actuarial assumptions:
Investment rate of return 7.5% 7.5% 7%
varies by age varies by age varies by age
Projected salary increases and service and service and service
Inflation 3.0% 3.0% 3.0%
Cost -of- living adjustments 2.1% 2.1% 2.1%
Schedule of Funding Information
The funded status as of December 31, 2009, is the most recent actuarial valuation date. The following
schedule of funding progress presents multi -year trend information about whether the actuarial value of plan
assets is increasing or decreasing over time relative to the actuarial accrued liability of benefits.
Actuarial Valuation Date 12/31/09 12/31/08 12/31/07
Actuarial value of assets $ 52,637,477 $ 47,909,865 $ 49,108,552
Actuarial accrued liability 78,345,079 72,398,270 69,582,807
Percent funded 67.2% 66.2% 70.6%
Unfunded (overfunded) actuarial accrued liability (UAAL) 25,707,602 24,488,405 20,474,255
Annual covered payroll 18,770,507 18,162,841 15,611,200
UAAL as a percentage of covered payroll 137.0% 134.8% 131.2%
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.
66
CITY OF LA PORTE, TEXAS
Notes to the Financial Statements
September 30, 2010
6. Pension Benefits — Continued
Plan Description
The Fire Fighters' Pension Commission is the administrator of the Texas Statewide Emergency Services
Personnel Retirement Fund, a cost sharing multiple employer pension system established and administered
by the State of Texas to provide pension benefits for emergency services personnel who serve without
monetary remuneration. The Texas Statewide Emergency Services Personnel Retirement Fund is
considered a component unit of the State of Texas financial reporting entity and is included in the State's
financial reports as a pension trust fund. At August 31, 2008 there were 186 member departments
participating in the pension system. The following table summarizes the pension system membership as of
August 31, 2008:
Retirees and beneficiaries currently receiving benefits 1,939
Terminated members entitled to benefits but not yet receiving those 1,975
Current active members (vested and non - vested) 4,340
The pension system was created by Senate Bill 411, 65 Legislature, Regular Session (1977). The 79
Legislature, Regular Session (2005), recodified the provisions and gave the TESRS Board of Trustees
authority to establish vesting requirements, contributions levels, benefit formulas, and eligibility requirements
by board rule. The benefit provisions include retirement benefits as well as death and disability benefits.
Member are 505 vested after the tenth year of service, with the vesting percent increasing 10% for each of
the next five years of service so that a member becomes 100% vested with 15 years of service.
Upon reaching age 55, each vested member may retire and receive a monthly pension equal to his vested
percentage multiplied by six times the governing body's average monthly contribution over the member's
years of qualified service. For years of service in excess of 15 years, this monthly benefit is increased at the
rate of 6.2 % compounded annually.
On and off -duty death benefits and on -duty disability benefits are dependent on whether or not the member
was engaged in the performance of duties at the time of death or disability. Death benefits include a lump -
sum amount and continuing monthly payments to a member's surviving spouse and dependent children.
Funding Policy
Contribution provisions were established by S.B. 411, 65 Legislative, Regular Session (1977) and were
amended by board rule in 2006. No contributions are required by individual members of participating
departments. The goveming bodies of participating department members are required to contribute at least
the minimum prescribed amount per month for each active member. Additional contributions may be made
by a governing body to pay for granting credit for service before the department began participating in
TESRS (prior service). The State may also be required to make annual contributions up to a limited amount
to make TESRS actuarially sound.
Annual Required Contributions
The contribution requirement per active emergency services personnel member per month is not actually
determined. Rather, the minimum contribution provisions were set by board rule. For the fiscal year ending
August 31, 2008, total contributions (dues and prior service) of $2,439,339 were paid into TESRS by the
political subdivision and served by the member volunteer emergency services personnel. In addition, the
state appropriated $8,800,000 for the fiscal year ending August 31, 2008. Total contributions made were
greater than the contributions required by the state statute and were greater than the contributions based on
the August 31, 2006 actuarial valuation.
67
CITY OF LA PORTE, TEXAS
Notes to the Financial Statements
September 30, 2010
6. Pension Benefits — Continued
The purpose of the biennial actuarial valuations is to test the adequacy of the contribution arrangement and
determine if they are adequate to fund the benefits that are promised. The actuarial valuation as of August
31, 2008 revealed the adequacy of the expected contributions (dues and prior service contributions)
together with the actual state appropriations for the fiscal year ending August 31, 2009 ($415,405 to help
pay for the Systems administrative expense) and with the assumed continuation of legislative appropriations
of (1) the maximum state contribution amount in future years for the System to have a 30 year amortization
period, and (2) approximately $425,000 each year to help pay for the System's administrative expenses.
Expected contributions for the fiscal year ending August 31, 2009 are equal to the contributions required.
The City's annual contributions for fiscal year ending September 30, 2010, 2009 and 2008 were $24,528,
$19,872, and $18,480, respectively.
7. Interfund Receivables, Payables and Transfers
Interfund transfers during the year ended September 30, 2010 were as follows:
Transfer In:
Other Other Internal
General Capital Govemmental Enterprise Service
Transfer out: Fund Projects Funds Funds Funds Totals
General fund $ - $ 5,175,000 $ - $ - $ 2,216,876 $ 7,391,876
2010 Certificates of obligation - 141,354 - - - 141,354
Othergovemmentalfunds 270,000 1,188,245 1,500,758 53,000 - 3,012,003
Utility fund $ 400,000 - 157,097 - 47,711 604,808
La Porte area water authority 60,271 - - - 1,305 61,576
Other enterprise funds - 265,398 - - 18,222 283,620
Intemal service funds - - - - 13,661 13,661
Total $ 730,271 $ 6,769,997 $ 1,657,855 $ 53,000 $ 2,297,775 $ 11,508,898
68
CITY OF LA PORTE, TEXAS
Notes to the Financial Statements
September 30, 2010
7. Interfund Receivables, Payables and Transfers - Continued
The detail of the interfund transfers is as follows:
Transfers from Transfers to
General Fund Insurance Fund $ 416,876 (1)
General Fund General CIP Fund 675,000 (2)
General Fund General CIP Fund 4,500,000 (3)
General Fund Vehicle Maintenance Fund 1,800,000 (4)
Utility Fund General Fund 400,000 (5)
Utility Fund Debt Service Fund 157,097 (6)
Utility Fund Insurance Fund 47,711 (1)
Sylvan Beach Fund General CIP Fund 265,398 (7)
Airport Fund Insurance Fund 518 (1)
La Porte Area Water Authority Insurance Fund 1,305 (1)
La Porte Area Water Authority General Fund 60,271 (8)
Technology Fund Insurance Fund 424 (1)
Vehicle Maintenance Fund Insurance Fund 13,236 (1)
Golf Course Fund Insurance Fund 17,705 (1)
Grant Fund General CIP Fund 388,245 (9)
Grant Fund General Fund 270,000 (10)
Community Investment Fund Hotel/Motel Fund (Mainstreet) 59,700 (11)
Hotel /Motel Fund Golf Course Fund 53,000 (12)
La Porte Development Corporation (4B) Debt Service Fund 664,104 (13)
La Porte Development Corporation (4B) General CIP Fund 800,000 (14)
2004 Certificates of Obligation Debt Service Fund 282,427 (15)
2005 General Obligation Bonds Debt Service Fund 16,219 (15)
2007 Certificates of Obligation Debt Service Fund 478,308 (15)
2010 Certificates of Obligation General CIP Fund 141,354 (16)
Total transfers $ 11,508,898
(1) Transfer for liability insurance and worker's compensation.
(2) Annual transfer to fund capital projects.
(3) Transfer annual funding to prefund Fire Station.
(4) Transfer additional funding for prefunding vehicle replacements.
(5) General and administrative transfer.
(6) Annual transfer for debt service.
(7) To close Sylvan Beach Fund.
(8) Operators agreement
(9) Transfer funding for Sylvan Beach Pier repairs received from FEMA.
(10) To reimburse disaster related expenditures.
(11) Transfer 1/2 of budgeted mainstreet operations (excluding festivals).
(12) Transfer for golf course advertising expenditures and city's bordering bay for golf course expenditures.
(13) Annual transfer for debt service.
(14) Transfer for capital projects.
(15) Transfer for debt service repayment.
(16) Reimbursement of qualified expenses.
69
CITY OF LA PORTE, TEXAS
Notes to the Financial Statements
September 30, 2010
7. Interfund Receivables, Payables and Transfers — Continued
The composition of interfund balances as of September 30, 2010 is as follows:
Due to /from other funds:
Receivable Fund Payable Fund
General 2010 Certificates of Obligation Bonds Fund $ 416,438
General Nonmajor enterprise 390,808
Nonmajor governmental Nonmajor governmental 615,026
$ 1,422,272
The outstanding balances result from an overdraw of pooled cash.
8. Risk Management
The City is exposed to various risks related to torts: theft, damage to and destruction of assets; errors and
omissions; and natural disasters. The City's risk management program encompasses various means of
protecting the City against loss by obtaining property, casualty and liability coverage from participation in a
risk pool. The participation of the City in the risk pool is limited to the payment of premiums. Further
information regarding the pool is provided below. Settled claims have not exceeded insurance coverage in
any of the previous three fiscal years. There has not been any significant reduction in insurance coverage
from that of the previous year.
Health Insurance Benefits
The City self - insures a portion of health insurance benefits provided to employees. The City records
revenues and expenses for providing employee health coverage in an Internal Service Fund and accrues
the estimated incurred but not reported claims. Charges are assessed to various City divisions based on
their full -time employee count.
Activity during the year included:
Revenues:
Charges to divisions $ 3,185,052
Charges to employees 416,175
Charges to retirees 80,305
Insurance proceeds 4,098
Interest revenue 16,010
Miscellaneous revenue 100
Total revenues 3,701,740
Expenses:
Personnel expenses 209,446
Other expenses 343,530
Claims administration 227,767
Claims incurred 3,652,943
Re- insurance premiums 246,909
Total health services expenses $ 4,680,595
70
CITY OF LA PORTE, TEXAS
Notes to the Financial Statements
September 30, 2010
8. Risk Management - Continued
Included in the claims paid amount is $499,000 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, 2010 are reflected as liabilities of
the Internal Service Fund. Because actual claims liabilities depend on such complex factors as inflation,
changes in legal requirements and damage awards, the process used in computing claims liability is an
estimate based on historical claims. Analysis of claims liability for the fiscal years 2008, 2009 and 2010 are
as follows:
Beginning Current Payment End of
of Year Year for Year
Accrual Estimates Claims Accrual
Fiscal Year 2008 509,552 3,805,967 3,638,519 677,000
Fiscal Year 2009 677,000 2,308,775 2,537,775 448,000
Fiscal Year 2010 448,000 3,703,943 3,652,943 499,000
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.
9. Commitments and Contingent Liabilities
From time to time, the City is a defendant in legal proceedings relating to its operations as a municipality. In
the best judgment of the City's management, the outcome of any pending legal proceedings will not have an
adverse effect on the accompanying general purpose financial statements.
The City participates in certain federal and state assisted grant programs. These programs are subject to
program compliance audits by the grantors or their representatives. Any liability for reimbursement which
may arise as the result of these audits is not believed to be material.
10. Post - Employment Benefits
Plan Description. In addition to pension benefits described in Note 6, employees who retire from the City
and are eligible for pension benefits shall be provided medical coverage by the City to the extent and
subject to the conditions of such coverage that is provided to current employees of the City. The City
administers this single - employer defined benefit medical plan ( "the Retiree Medical Plan "). The plan
provides medical coverage for eligible retirees and their dependents through the City's self - health insurance
plan, which covers both active and retired members. Benefit provisions are established and amended by
City Council. The Retiree Medical Plan does not issue a publicly available financial report.
Funding Policy. This coverage for retired employees is provided at the option of City council through
adoption of the annual budget. The City funds these premiums in the same manner as it funds similar
premiums for current employees.
Employees, who retired from the City before October 1, 1992, have 100% of their coverage paid for by the
City. Employees who retired from the City in 1993 and up to December 31, 1999, with 20 or more years of
service have 100% of their coverage paid for by the City. Prior to January 1, 2000, employees who have 15
years but less than 20 years of service are required to pay for 10% of the cost and employees who have 10
71
CITY OF LA PORTE, TEXAS
Notes to the Financial Statements
September 30, 2010
10. Post - Employment Benefits - continued
years but Tess than 15 years of service are required to pay for 20% of their costs. For employees who retire
after January 1, 2000 the following applies:
Years of Service with City Retiree Cost City Cost Retiree Cost Per Year
At least 10 but less than 15 years 55% 45% $3,300
At least 15 but less than 20 years 25% 75% 1,500
At least 20 years 0% 100% 0
Employees who are eligible for the post employment benefits are employees who retire after January 1,
2006 and who have a combination of years of service with the City of La Porte plus age totaling 80 and who
retire as a qualified annuitant under the Texas Municipal Retirement System; who retire in accordance with
the City of La Porte Employee Policies Handbook; who complete at least 20 years of service with the City of
La Porte are currently employed by the City of La Porte at the time of their retirement. The total premium
cost is the total annual dollar allocated by budget as approved by City Council for the City of La Porte for
health insurance for each employee, including employee and employer contributions. The cost allocation
shall be as follows:
Years of Service Retiree City
with City Cost Cost
at least 20 years 60% + dependent premiums 40%
21 years 55% + dependent premiums 45%
22 years 50% + dependent premiums 50%
23 years 45% + dependent premiums 55%
24 years 40% + dependent premiums 60%
25 years 35% + dependent premiums 65%
26 years 30% + dependent premiums 70%
27 years 25% + dependent premiums 75%
28 years 20% + dependent premiums 80%
29 years 15% + dependent premiums 85%
30 years 10% + dependent premiums 90%
Retirees who are entitled to receive retirement benefits under the City's retirement plan may purchase
continued health benefits for the retiree and the retiree's dependents. The person must inform the City no
later than the day on which the person retires that the person elects to continue coverage. If the retiree
elects to continue coverage for himself and /or his dependents, once he decides to drop either type of
coverage, the person and /or his dependents become eligible for coverage at the next open enrollment
period. The level of coverage provided is the same level of coverage provided to current employees. The
City's coverage is secondary to Medicare when the person becomes eligible for those benefits. Payment for
dependent coverage will be at the same rate as payments for current employees.
Annual OPEB Cost and Net OPEB Obligation. The City's annual other postemployment benefit (OPEB) cost
is calculated based on the annual required contribution of the employer (ARC), an amount actuarially
determined in accordance with the parameters of GASB Statement 45. The ARC represents a level of
funding that if paid on an ongoing basis, is projected to cover normal cost each year and amortize any
unfunded actuarial liabilities (or funding excess) over a period not to exceed thirty years. The following table
shows the components of the City's annual OPEB cost for the year, the amount actually contributed to the
plan, and changes in the City's OPEB obligation to the postemployment medical plan.
72
CITY OF LA PORTE, TEXAS
Notes to the Financial Statements
September 30, 2010
10. Post - Employment Benefits — Continued
Fiscal Year 2010 2009
Annual required contribution (ARC) $ 2,472,961 $ 2,190,180
Interest on net OPEB obligation 81,894 -
Adjustment to the ARC ( 75,874) -
Annual OPEB cost 2,478,981 2,190,180
Contributions made ( 538,884) ( 370,318)
Increase in net OPEB obligation 1,940,097 1,819,862
Net OPEB obligation, beginning of year 1,819,862 -
Net OPEB obligation, ending of year $ 3,759,959 $ 1,819,862
Percentage of ARC contribution 21.7% 16.9%
The City's annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the net
OPEB obligation for fiscal year 2010 and 2009 are as follows. This information is not included for fiscal year
2008 due to fiscal year 2009 being a transition year of the implementation of GASB Statement 45.
Percentage of Net
Fiscal Annual Annual OPEB OPEB
Year Ended OPEB Cost Cost Contributed Obligation
9/30/2009 $ 2,190,180 16.91% $ 1,819,862
9/30/2010 2,478,981 21.74% 3,759,959
Funded Status and Funding Progress. The funding status of the post employment medical plan as of the
most recent actuarial valuation date is as follows:
Actuarial Valuation Date 12/31 /2008
Actuarial value of assets $ -
Actuarial accrued liabilities (AAL) 32,839,108
Unfunded actuarial
accrued liability (UAAL) 32,839,108
Funded ratio 0.00%
Covered payroll (active plan members) 18,626,734
UAAL as a percentage of covered payroll 56.72%
Actuarial valuations of an ongoing plan involve estimates of the value reported amounts and assumptions
about the probability of occurrence of events far into the future. Examples include assumptions about future
employment, mortality, and the healthcare cost trend. Amounts determined regarding the funded status of
the plan and the annual required contributions of the employer are subject to continual revision as actual
results are compared with past expectations and new estimates are made about the future. A schedule of
funding progress presents multi -trend information about whether the actuarial value of plan assets is
increasing or decreasing over time relative to the actuarial accrued liabilities for benefits. The 2008 actuarial
valuation is the most recent and only actuarial valuation available; therefore a schedule of funding progress
with multi -trend information is not available.
73
CITY OF LA PORTE, TEXAS
Notes to the Financial Statements
September 30, 2010
10. Post - Employment Benefits — Continued
Actuarial Methods and Assumptions. Projections of benefits for financial reporting purposes are based on
the substantive plan (the plan as understood by the employer and plan members) and include the types of
benefits provided at the time of each valuation and the historical pattern of sharing benefit costs between
the employer and plan members to that point. The actuarial methods and assumptions used include
techniques that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities and
the actuarial value of assets, consistent with the Tong -term perspective of the calculations.
In the December 31,2008, actuarial valuation, the projected unit credit actuarial cost method was used. The
actuarial assumptions included a 4.5 percent investment rate of return compounded annually (net of
administrative expenses), which is a blended rate of the expected long -term investment returns on plan
assets and on the employer's own investments calculated based on the funded level of the plan at the
valuation date, an annual healthcare cost trend rate of 10 percent initially, reduced by decrements to an
ultimate rate of 4.5 percent after 10 years, and a payroll growth rate for projecting normal cost of 3 percent.
These rates include a 3 percent inflation assumption. The actuarial value of assets was determined using
techniques that spread the effects of short-term volatility in the market value of investments over a five -year
period. The UAAL is being amortized as a level percentage of payroll contributions over a 30 year period
assuming payroll growth of 3 percent. The remaining amortization period at September 30, 2010, was 29
years.
Supplemental Death Benefits Fund
The City also participates in the cost sharing multiple - employer defined benefit group term life insurance
plan operated by the Texas Municipal Retirement System (TMRS) known as the Supplemental Death
Benefits Fund (SDBF). The City elected, by ordinance to provide group term life insurance coverage to both
current and retired employees. The city may terminate coverage under and discontinue participation in the
SDBF by adopting an ordinance before November 1 of any year to be effective the following January 1.
The death benefit for active employees provides a lump sum payment approximately equal to the
employee's annual salary (calculated based on the employee's actual earnings, for the 12 -month period
preceding the month of death); retired employees are insured for $7,500; this coverage is an "other
postemployment benefit, " or OPEB. The city contributes to SDBF at a contractually required rate as
determined by an annual actuarial valuation. The rate is equal to the cost of providing one -year term life
insurance. The funding policy for the SDBF program is to assure that adequate resources are available to
meet all death benefit payments for the upcoming year; the intent is not to pre -fund retiree term life
insurance during employee's entire careers.
74
CITY OF LA PORTE, TEXAS
Notes to the Financial Statements
September 30, 2010
10. Post - Employment Benefits — Continued
The city's contributions to the TMRS SDBF for the fiscal year ended 2010 and 2009 were $34,554 and
$5,312 respectively, which equaled the required contributions. Fiscal year 2009 is a transition year for the
implementation of GASB 45; therefore, two years of contributions are disclosed.
Schedule of Contribution Rates
Annual Actual
Plan/ Required Contribution Percentage
Calendar Contribution Made of ARC
Year (Rate) (Rate) Contributed
2008 0.04% 0.04% 100%
2009 0.03% 0.03% 100%
2010 0.03% 0.03% 100%
75
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76
REQUIRED SUPPLEMENTARY INFORMATION
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78
Required Supplementary Information
CITY OF LA PORTE, TEXAS
General Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances
Budget and Actual
For The Year Ended September 30, 2010
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Property taxes $12,021,871 $12,021,871 $ 13,566,424 $ 1,544,553
Franchise taxes 2,151,309 2,151,309 2,170,699 19,390
Sales taxes 2,892,980 2,892,980 3,142,521 249,541
Industrial payments 8,718,883 8,718,883 10,464,176 1,745,293
Other taxes 86,218 86,218 77,450 (8,768)
Licenses and permits 601,785 601,785 476,478 (125,307)
Fines and forfeits 1,523,886 1,523,886 1,531,699 7,813
Charges for services 4,178,762 4,178,762 4,307,154 128,392
Intergovernmental 3,500 3,500 863 (2,637)
Interest 225,000 225,000 137,143 (87,857)
Miscellaneous 25,000 25,000 59,920 34,920
Total revenues 32,429,194 32,429,194 35,934,527 3,505,333
EXPENDITURES
General Government:
Administration 2,905,084 3,041,892 2,970,111 71,781
Finance 3,487,342 2,948,265 2,640,601 307,664
Planning and engineering 2,002,723 2,046,192 1,881,538 164,654
Public Safety:
Fire 4,454,121 4,514,194 4,391,599 122,595
Police 9,999,538 10,056,298 9,910,894 145,404
Public Works:
Public works administration 382,656 385,324 348,834 36,490
Streets 2,510,867 2,577,745 2,382,832 194,913
Health and Sanitation:
Solidwaste 2,239,189 2,251,641 2,180,090 71,551
Culture and Recreation 3,821,069 4,116,087 4,060,987 55,100
Total expenditures 31,802,589 31,937,638 30,767,486 1,170,152
Excess (deficiency) of revenues
over expenditures 626,605 491,556 5,167,041 4,675,485
OTHER FINANCING SOURCES (USES)
Sale of capital assets 5,000 5,000 5,024 24
Transfers in 460,271 460,271 730,271 270,000
Transfers out (1,091,876) (7,391,876) (7,391,876) -
Total other financing sources (uses) (626,605) (6,926,605) (6,656,581) 270,024
Net change in fund balances - (6,435,049) (1,489,540) 4,945,509
Fund balances- beginning 13,594,029 13 13,594,029 -
Fund balances-ending $ 13,594,029 $ 7,158,980 $ 12,104,489 $ 4,945,509
79
CITY OF LA PORTE, TEXAS
Notes to the Required Supplementary Information
September 30, 2010
Budgetary Basis of Accounting
An annual budget is adopted for the General Fund using the modified accrual basis of accounting, a basis
sanctioned by, and consistent with, generally accepted accounting principles.
80
COMBINING FINANCIAL STATEMENTS
NONMAJOR GOVERNMENTAL FUNDS
Special Revenue Funds
Special revenue funds are used to account for specific revenues that are legally restricted to expenditure for
particular purposes.
Street Maintenance Sales Tax Fund — This fund is used to account for the additional sales tax collected for
street maintenance.
Community Investment Fund — This fund is used to account for funds received and expended on community
beautification and revitalization programs.
Hotel / Motel Occupancy Tax Fund — This fund is used to account for the accumulation of resources from the
Hotel /Motel Tax assessment levied by the City. These monies are to be spent to promote the development or
progress of the City within the guidelines set forth on disposition of revenues collected under the authority of the
Texas Hotel Occupancy Act (Article 1269; Vernon's Texas Civil Statutes).
Tax Increment Reinvestment Zone One Fund (TIRZ) — This fund is used to account for the disposition of
property taxes collected on specific parcels within the boundaries of the TIRZ for the exclusive benefit of the
City's capital improvement programs.
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.
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.
81
2004 Certificate of Obligation Bonds Fund — This fund is used to account for the proceeds and expenditures
related to Bay Area Boulevard, Canada Road Paving and Drainage Improvements and the land acquisition of
the Police Headquarters.
2005 Certificate of Obligation Bonds Fund — This fund is used to account for the proceeds and expenditures
related to the purchase of an aerial fire truck, Bayshore Water /Sewer Replacement and various other
Water /Sewer Capital Improvements.
2005 General Obligation Bond Fund — This fund is used to fund projects that benefit the City in general. A
specific project from this issue is the construction of the police facility.
2006 Certificate of Obligation Bonds Fund — This fund is used to account for the proceeds and expenditures
related to the Police Facility, a Sports Complex (Joint Venture), South La Porte Trunk Sewer and various other
Water /Sewer projects.
2006 General Obligation Bonds Fund - This fund is used to account for the proceeds and expenditures related
to the Westside Park Improvements.
2007 Certificate of Obligation Bonds Fund — This fund is used to account for the proceeds and expenditures
related to wastewater treatment plant improvements, sports complex and golf cart path improvements.
Drainage Improvements — This fund is used to account for the proceeds and expenditures related to the
drainage fees collected.
Debt Service Fund
Debt Service Fund is used to pay interest and extinguish debt of the outstanding General Obligation Issues of
the City.
82
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83
CITY OF LA PORTE, TEXAS
Combining Balance Sheet
Nonmajor Governmental Funds
September 30, 2010
Special Revenue Funds
Street Hotel /Motel Tax Increment
Maintenance Community Occupancy Reinvestment
Sales Tax Investment Tax Zone One (TIRZ)
ASSETS
Cash and cash equivalents $ 539,753 $ 350,000 $ 494,651 $ 534,062
Investments 179,712 116,534 164,696 47,275
Taxes receivable 154,002 - 81,731 -
Intergovernmental receivable - - - 191,181
Other receivables - - 45,709 -
Accrued interest receivable 79 51 72 -
Due from other funds - - - -
Total assets 873,546 466,585 786,859 772,518
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable 5,483 10,000 24,633 -
Accrued salaries payable - - 2,131 -
Due to others - - - -
Due to other funds - - - 615,026
Deferred revenue - - 45,534 -
Total liabilities 5,483 10,000 72,298 615,026
Fund Balances:
Reserved for:
Encumbrances - 32,002 2,000 -
Animal Control - - - -
Judicial Fund - - - -
Municipal Court Building Security - - - -
Municipal Court Technology Fee - - - -
Park Zone - - - -
Law enforcement training - - - -
Child safety - - -
Confiscated funds - - - -
Debt Service - - - _
Unreserved 868,063 424,583 712,561 157,492
Total fund balances 868,063 456,585 714,561 157,492
Total liabilities and fund balances $ 873,546 $ 466,585 $ 786,859 $ 772,518
84
Special Revenue Funds Capital Projects Funds
Transportation 1998 General 2000 Certificate
Grant Section 4B & Other Obligation of Obligation
Fund Sales Tax Totals Infrastructure Bonds Bonds
$ 679,151 $ 1,006,148 $ 3,603,765 $ 531,436 $ 864,910 $ 22,146
22,819 335,001 866,037 176,944 287,975 7,373
- 340,262 575,995 - - -
481, 027 - 672,208 - - -
- - 45,709 - - -
99 147 448 77 126 3
1,183,096 1,681,558 5,764,162 708,457 1,153,011 29,522
17,325 1,567 59,008 79,233 - -
13,081 3,082 18,294 - - -
3,002 - 3,002 - - -
- - 615,026 - - -
250 32,258 78,042 - - -
33,658 36,907 773,372 79,233 - -
- 5,394 39,396 - - -
2,914 - 2,914 - - -
23,197 - 23,197 - - -
147,915 - 147,915 - - -
38,543 - 38,543 - - -
147,180 - 147,180 - - -
3,406 - 3,406 - - -
49,654 - 49,654 - - -
227,605 - 227,605 - - -
- 622,692 622,692 - - -
509,024 1,016,565 3,688,288 629,224 1,153,011 29,522
1,149,438 1,644,651 4,990,790 629,224 1,153,011 29,522
$ 1,183, 096 $ 1,681,558 $ 5,764,162 $ 708,457 $ 1,153, 011 $ 29,522
85
CITY OF LA PORTE, TEXAS
Combining Balance Sheet
Nonmajor Governmental Funds
September 30, 2010
(Continued)
Capital Projects Funds
2000 General 2004 Certificate 2005 Certificate 2005 General
Obligation of Obligation of Obligation Obligation
Bonds Bonds Bonds Bonds
ASSETS
Cash and cash equivalents $ - $ 125,484 $ 50,598 $ 25,522
Investments - 675,705 16,847 -
Taxes receivable - - - -
Intergovernmental receivable - - - -
Other receivables - - - -
Accrued interest receivable - 18 8 3
Due from other funds - - - -
Total assets - 801,207 67,453 25,525
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable - 93,613 - 1,105
Accrued salaries payable - - - -
Due to others - - - -
Due to other funds - - - -
Deferred revenue - - - -
Total liabilities - 93,613 - 1,105
Fund Balances:
Reserved for:
Encumbrances - - - -
Animal control - - - -
Judicial fund - - - -
Municipal Court Building Security - - - -
Municipal Court Technology Fee - - - -
Park Zone - - - _
Law enforcement training - - - -
Child safety - - - _
Confiscated funds - - - -
Debt Service - - _ _
Unreserved - 707,594 67,453 24,420
Total fund balances - 707,594 67,453 24,420
Total liabilities and fund balances $ - $ 801,207 $ 67,453 $ 25,525
86
Capital Projects Funds
2006 Certificate 2006 General 2007 Certificate Total Nonmajor
of Obligation Obligation of Obligation Drainage Debt Governmental
Bonds Bonds Bonds Improvement Totals Service Funds
$ 15,690 $ 17,575 $ 761,192 $ 188,456 $ 2,603,009 $ 2,324,000 $ 8,530,774
1,306,328 152,897 253,441 62,747 2,940,257 773,784 4,580,078
- - - - - 50,106 626,101
- - - - - - 672,208
- - - 16,246 16,246 - 61,955
3 2 112 - 352 330 1,130
615,026 - - - 615,026 - 615,026
1,937,047 170,474 1,014,745 267,449 6,174,890 3,148,220 15,087,272
604,583 35,616 - - 814,150 - 873,158
- - - - - - 18,294
- - - - - - 3,002
- - - - - - 615,026
- - - - - 30,532 108,574
604,583 35,616 - - 814,150 30,532 1,618,054
- - - - - - 39,396
- - - - - - 2,914
- - - - - - 23,197
- - - - - - 147,915
- - - - - - 38,543
- - - - - - 147,180
- - - - - - 3,406
- - - - - - 49,654
- - - - - - 227,605
- - - - - 3,117,688 3,740,380
1,332,464 134,858 1,014,745 267,449 5,360,740 - 9,049,028
1,332,464 134,858 1,014,745 267,449 5,360,740 3,117,688 13,469,218
$ 1,937,047 $ 170,474 $ 1,014,745 $ 267,449 $ 6,174,890 $ 3,148,220 $ 15,087,272
87
CITY OF LA PORTE, TEXAS
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances
Nonmajor Governmental Funds
For The Year Ended September 30, 2010
Special Revenue Funds
Street Hotel/Motel Tax Increment
Maintenance Community Occupancy Reinvestment
Sales Tax Investment Tax Zone One (T1RZ)
REVENUES
Property taxes $ - $ - $ - $ 1,738,188
Intergovemmental - - - -
Sales taxes 785,629
- -
Industrial payments - 268,312 - -
Other taxes - - 336,822 -
Intere st 2,366 2,724 3,996 910
Fines and forfeitures - - - -
Charges for services - - - 89,483
Miscellaneous - 94 - -
Total revenues 787,995 271,130 340,818 1,828,581
EXPENDITURES
Current:
General government - 219,756 347,117 1,321,399
Public safety - - - -
Public works - - - -
Culture and recreation - - - -
Capital outlay 320,605 - - -
Debt service:
Principal - - - -
Interest and fiscal charges - - - -
Total expenditures 320,605 219,756 347,117 1,321,399
Excess (deficiency) of revenues over
expenditures 467,390 51,374 (6,299) 507,182
OTHER FINANCING SOURCES (USES)
Issuance of debt - - - -
Premium on bonds - - - -
Payment to escrow agent - - - -
Transfers in - - 59,700 -
Transfers out - (59,700) (53,000) -
Total other financing sources (uses) - (59,700) 6,700 -
Net change in fund balances 467,390 (8,326) 401 507,182
Fund balances— beginning 400,673 464,911 714,160 (349,690)
Fund balances— ending $ 868,063 $ 456,585 $ 714,561 $ 157,492
88
Special Revenue Funds Capital Projects Funds
Transportation 1998 General 2000 Certificate
Grant Section 4B & Other Obligation of Obligation
Fund Sales Tax Totals Infrastructure Bonds Bonds
$ $ - $ 1,738,188 $ - $ - $ -
987,669 - 987,669 - - -
-
1,571,258 2,356,887 - - -
- 268,312 - - -
- - 336,822 - - -
2,927 8,254 21,177 6,709 6,872 175
271,086 - 271,086 - - -
15,194 - 104,677 - - -
4,455 48 4,597 - - -
1,281,331 1,579,560 6,089,415 6,709 6,872 175
46,371 151,645 2,086,288 - - -
395,435 - 395,435 - - -
4,227 - 4,227 - - -
68,562 - 68,562 - - -
174,921 - 495,526 599,575 8,578 -
689,516 151,645 3,050,038 599,575 8,578 -
591,815 1,427,915 3,039,377 (592,866) (1,706) 175
- - 59,700 - - -
(658,245) (1,464,104) (2,235,049) - - -
(658,245) (1,464,104) (2,175,349) - - -
(66,430) (36,189) 864,028 (592,866) (1,706) 175
1,215,868 1,680,840 4,126,762 1,222,090 1,154,717 29,347
$ 1,149,438 $ 1,644,651 $ 4,990,790 $ 629,224 $ 1,153,011 $ 29,522
89
CITY OF LA PORTE, TEXAS
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances
Nonmajor Governmental Funds
For The Year Ended September 30, 2010
(Continued)
Capital Projects Funds
2000 General 2004 Certificate 2005 Certificate 2005 General
Obligation of Obligation of Obligation Obligation
Bonds Bonds Bonds Bonds
REVENUES
Property taxes $ - $ - $ - $ -
Intergovernmental - - - -
Sales taxes - - - -
Industrial payments - - - -
Other taxes - - - -
Interest 121 3,737 878 227
Fines and forfeitures - - - -
Charges for services - - - -
Miscellaneous - - - -
Total revenues 121 3,737 878 227
EXPENDITURES
Current:
General govemment - - - -
Public safety - - - 10,000
Public works - - - -
Health and sanitation - - - -
Capital outlay 99,736 242,894 232,090 -
Debt Service:
Principal - - - -
Interest - - - -
Total expenditures 99,736 242,894 232,090 10,000
Excess (deficiency) of revenues over
expenditures (99,615) (239,157) (231,212) (9,773)
OTHER FINANCING SOURCES (USES)
Issuance of debt - - - -
Premium on bonds - - - -
Payment to escrow agent - - - -
Transfers in - - - -
Transfers out - (282,427) - (16,219)
Total other financing sources (uses) - (282,427) - (16,219)
Net change in fund balances (99,615) (521,584) (231,212) (25,992)
Fund balances— beginning 99,615 1,229,178 298,665 50,412
Fund balances— ending $ - $ 707,594 $ 67,453 $ 24,420
90
Capital Projects Funds
2006 Certificate 2006 General 2007 Certificate Total Nonmajor
of Obligation Obligation of Obligation Drainage Debt Governmental
Bonds Bonds Bonds Improvement Totals Service Funds
$ - $ - $ - $ - $ - $ 2,560,024 $ 4,298,212
- - - - - 987,669
- - - - - - 2,356,887
- - - - - - 268,312
- - - - - - 336,822
4,159 581 5,516 590 29,565 28,484 79,226
- - - - - - 271,086
- - - 266,859 266,859 - 371,536
- - - - - - 4,597
4,159 581 5,516 267,449 296,424 2,588,508 8,974,347
- - - - - - 2,086,288
- - - - 10,000 - 405,435
49,394 - - - 49,394 - 53,621
- - - - - - 68,562
1,667,424 197,806 313,898 - 3,362,001 - 3,857,527
- - - - - 1,755,000 1,755,000
- - - - - 1,451,033 1,451,033
1,716,818 197,806 313,898 - 3,421,395 3,206,033 9,677,466
(1,712,659) (197,225) (308,382) 267,449 (3,124,971) (617,525) (703,119)
- - - - 4,295,000 4,295,000
- - - - 100,338 100,338
- - - - (4,409,763) (4,409,763)
- - - - 1,598,155 1,657,855
- - (478,308) - (776,954) - (3,012,003)
- - (478,308) - (776,954) 1,583,730 (1,368,573)
(1,712,659) (197,225) (786,690) 267,449 (3,901,925) 966,205 (2,071,692)
3,045,123 332,083 1,801,435 - 9,262,665 2,151,483 15,540,910
$ 1,332,464 $ 134,858 $ 1,014,745 $ 267,449 $ 5,360,740 $ 3,117,688 $ 13,469,218
91
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92
SCHEDULE OF REVENUES, EXPENDITURES and
CHANGES IN FUND BALANCE — BUDGET and ACTUAL
Debt Service Fund
Special Revenue Funds
Capital Projects Funds
93
CITY OF LA PORTE, TEXAS
2010 Certificate of Obligation Bonds Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances
Budget and Actual
For The Year Ended September 30, 2010
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Interest $ 10,000 $ 10,000 $ 3,546 $ (6,454)
Total revenues 10,000 10,000 3,546 (6,454)
EXPENDITURES
Capital outlay 9,600,000 6,123,646 324,936 5,798,710
Debt service:
Interest and fiscal charges - - 136,533 (136,533)
Total expenditures 9,600,000 6,123,646 461,469 5,662,177
Excess (deficiency) of revenues over
expenditures (9,590,000) (6,113,646) (457,923) 5,655,723
OTHER FINANCING SOURCES (USES)
Issuance of debt 8,725,000 8,725,000 6,265,000 (2,460,000)
Premium on bonds - - 123,670 123,670
Transfers out - (141,354) (141,354) -
Total other financing sources (uses) 8,725,000 8,583,646 6,247,316 (2,336,330)
Net change in fund balances (865,000) 2,470,000 5,789,393 3,319,393
Fund balances— beginning - - - -
Fund balances— ending $ (865,000) $ 2,470,000 $ 5,789,393 $ 3,319,393
94
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, 2010
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Charges for services $ - $ 5,000 $ 1,405,077 $ 1,400,077
Interest 50,000 50,000 43,078 (6,922)
Miscellaneous - - 60,625 60,625
Total revenues 50,000 55,000 1,508,780 1,453,780
EXPENDITURES
Current:
General government - 231,190 232,978 (1,788)
Public works - - 76,703 (76,703)
Culture and recreation - - 1,221,236 (1,221,236)
Capital outlay 2,255,100 2,889,089 6,248,284 (3,359,195)
Total expenditures 2,255,100 3,120,279 7,779,201 (4,658,922)
Excess (deficiency) of revenues over
expenditures (2,205,100) (3,065,279) (6,270,421) (3,205,142)
OTHER FINANCING SOURCES (USES)
Transfers in 1,475,000 6,399,854 6,769,997 370,143
Total other financing sources (uses) 1,475,000 6,399,854 6,769,997 370,143
Net change in fund balances (730,100) 3,334,575 499,576 (2,834,999)
Fund balances— beginning 8,681,143 8,681,143 8,681,143 -
Fund balances —ending $ 7,951,043 $ 12,015,718 $ 9,180,719 $ (2,834,999)
95
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 30, 2010
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Sales taxes $ 723,245 $ 723,245 $ 785,629 $ 62,384
Interest 3,600 3,600 2,366 (1,234)
Total revenues 726,845 726,845 787,995 61,150
EXPENDITURES
Capital outlay 700,000 700,000 320,605 379,395
Total expenditures 700,000 700,000 320,605 379,395
Net change in fund balances 26,845 26,845 467,390 440,545
Fund balances— beginning 400,673 400,673 400,673 -
Fund balances— ending $ 427,518 $ 427,518 $ 868,063 $ 440,545
96
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, 2010
Variance with
Final Budget
Budgeted Amounts Actual Positive
Ori Final Amounts (Negative)
REVENUES
Industrial payments $ 223,561 $ 223,561 $ 268,312 $ 44,751
Interest 7,800 7,800 2,724 (5,076)
Miscellaneous - - 94 94
Total revenues 231,361 231,361 271,130 39,769
EXPENDITURES
Current:
General government 185,000 274,071 219,756 54,315
Total expenditures 185,000 274,071 219,756 54,315
Excess (deficiency) of revenues over
expenditures 46,361 (42,710) 51,374 94,084
OTHER FINANCING SOURCES (USES)
Transfers out (159,700) (159,700) (59,700) (100,000)
Total other financing sources (uses) (159,700) (159,700) (59,700) (100,000)
Net change in fund balances (113,339) (202,410) (8,326) 194,084
Fund balances— beginning 464,911 464,911 464,911 -
Fund balances— ending $ 351,572 $ 262,501 $ 456,585 $ 194,084
97
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, 2010
Variance with
Final Budget
Budgeted Amounts Actual Positive
Or Final Amounts (Negative)
REVENUES
Other taxes $ 430,000 $ 430,000 $ 336,822 $ (93,178)
Interest 5,400 5,400 3,996 (1,404)
Total revenues 435,400 435,400 340,818 (94,582)
EXPENDITURES
Current:
General government 824,522 863,515 347,117 516,398
Total expenditures 824,522 863,515 347,117 516,398
Excess of revenues over
expenditures (389,122) (428,115) (6,299) 421,816
OTHER FINANCING SOURCES (USES)
Transfers in 59,700 59,700 59,700 -
Transfers out (153,000) (153,000) (53,000) 100,000
Total other financing sources (uses) (93,300) (93,300) 6,700 100,000
Net change in fund balances (482,422) (521,415) 401 521,816
Fund balances- beginning 714,160 714,160 714 -
Fund balances-ending $ 231,738 $ 192,745 $ 714,561 $ 521,816
98
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, 2010
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Property taxes $1,400,804 $ 1,400,804 $ 1,738,188 $ 337,384
Charges for services - - 89,483 89,483
Interest 2,500 2,500 910 (1,590)
Total revenues 1,403,304 1,403,304 1,828,581 425,277
EXPENDITURES
Current:
General government 1,413,966 1,413,966 1,321,399 92,567
Total expenditures 1,413,966 1,413,966 1,321,399 92,567
Excess (deficiency) of revenues over
expenditures (10,662) (10,662) 507,182 517,844
Net change in fund balances (10,662) (10,662) 507,182 517,844
Fund Balances— beginning (349,690) (349,690) (349,690) -
Fund Balances— ending $ (360,352) $ (360,352) $ 157,492 $ 517,844
99
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, 2010
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Fines and forfeitures $ 60,500 $ 60,500 $ 271,086 $ 210,586
Charges for services 500 500 15,194 14,694
Intergovernmental 1,934,212 2,318,200 987,669 (1,330,531)
Interest - - 2,927 2,927
Miscellaneous 500 1,350 4,455 3,105
Total revenues 1,995,712 2,380,550 1,281,331 (1,099,219)
EXPENDITURES
Current:
General government 1,237,000 1,243,515 46,371 1,197,144
Public safety 773,500 877,781 395,435 482,346
Public works - 10,749 4,227 6,522
Culture and recreation 72,268 105,464 68,562 36,902
Capital outlay 77,585 91,185 174,921 (83,736)
Total expenditures 2,160,353 2,328,694 689,516 1,639,178
Excess (deficiency) of revenues over
expenditures (164,641) 51,856 591,815 539,959
OTHER FINANCING SOURCES (USES)
Transfers out - (283,500) (658,245) (374,745)
Total other financing sources (uses) - (283,500) (658,245) (374,745)
Net change in fund balances (164,641) (231,644) (66,430) 165,214
Fund balances- beginning 1,215,868 1,215,868 1,215,868 -
Fund balances- ending $ 1,051,227 $ 984,224 $ 1,149,438 $ 165,214
100
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, 2010
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Sales taxes $ 1,446,490 $ 1,446,490 $ 1,571,258 $ 124,768
Interest 30,000 30,000 8,254 (21,746)
Miscellaneous - - 48 48
Total revenues • 1,476,490 1,476,490 1,579,560 103,070
EXPENDITURES
Current:
General government 446,360 453,174 151,645 301,529
Total expenditures 446,360 453,174 151,645 301,529
Excess of revenues over
expenditures 1,030,130 1,023,316 1,427,915 404,599
OTHER FINANCING SOURCES (USES)
Transfers out (1,464,104) (1,464,104) (1,464,104) -
Total other financing sources (uses) (1,464,104) (1,464,104) (1,464,104) -
Net change in fund balances (433,974) (440,788) (36,189) 404,599
Fund balances— beginning 1,680,840 1,680,840 1,680,840 -
Fund balances —ending $ 1,246,866 $ 1,240,052 $ 1,644,651 $ 404,599
101
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, 2010
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Interest $ 10,600 $ 10,600 $ 6,709 $ (3,891)
Total revenues 10,600 10,600 6,709 (3,891)
EXPENDITURES
Capital outlay 504,000 561,000 599,575 (38,575)
Total expenditures 504,000 561,000 599,575 (38,575)
Excess of revenues over
expenditures (493,400) (550,400) (592,866) (42,466)
Net change in fund balances (493,400) (550,400) (592,866) (42,466)
Fund balances— beginning 1222,090 1,222,090 1,222,090 -
Fund balances —ending $ 728,690 $ 671,690 $ 629,224 $ (42,466)
102
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, 2010
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Interest $ - $ - $ 3,737 $ 3,737
Total revenues - - 3,737 3,737
EXPENDITURES
Capital outlay - - 242,894 (242,894)
Total expenditures - - 242,894 (242,894)
Excess (deficiency) of revenues over
expenditures - - (239,157) (239,157)
OTHER FINANCING SOURCES (USES)
Transfers out (376,570) (376,570) (282,427) 94,143
Total other financing sources (uses) (376,570) (376,570) (282,427) 94,143
Net change in fund balances (376,570) (376,570) (521,584) (145,014)
Fund balances— beginning 1,229,178 1,229,178 1,229,178 -
Fund balances— ending $ 852,608 $ 852,608 $ 707,594 $ (145,014)
103
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, 2010
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Interest $ - $ - $ 878 $ 878
Total revenues - - 878 878
EXPENDITURES
Capital outlay 256,503 256,503 232,090 24,413
Total expenditures 256,503 256,503 232,090 24,413
Net change in fund balances (256,503) (256,503) (231,212) 25,291
Fund balances— beginning 298 298,665 298,665 -
Fund balances — ending $ 42,162 $ 42,162 $ 67,453 $ 25,291
104
CITY OF LA PORTE, TEXAS
2005 General Obligation Bonds Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances
Budget and Actual
For The Year Ended September 30, 2010
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Interest $ - $ - $ 227 $ 227
Total revenues - - 227 227
EXPENDITURES
Current:
Public safety - - 10,000 (10,000)
Total expenditures - - 10,000 (10,000)
Excess (deficiency) of revenues over
expenditures - - (9,773) (9,773)
OTHER FINANCING SOURCES (USES)
Transfers out (16,219) (16,219) (16,219) -
Total other financing sources (uses) (16,219) (16,219) (16,219) -
Net change in fund balances (16,219) (16,219) (25,992) (9,773)
Fund balances— beginning 50,412 50,412 50,412 -
Fund balances— ending $ 34,193 $ 34,193 $ 24,420 $ (9,773)
105
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, 2010
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original , Final Amounts (Negative)
REVENUES
Interest $ - $ - $ 4,159 $ 4,159
Total revenues - - 4,159 4,159
EXPENDITURES
Current:
Public works - 70,000 49,394 20,606
Capital outlay 966,497 896,497 1,667,424 (770,927)
Total expenditures 966,497 966,497 1,716,818 (750,321)
Excess (deficiency) of revenues over
expenditures (966,497) (966,497) (1,712,659) (746,162)
Net change in fund balances (966,497) (966,497) (1,712,659) (746,162)
Fund balances— beginning 3,045 3 3 -
Fund balances— ending $ 2,078,626 $ 2,078,626 $ 1,332,464 $ (746,162)
106
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, 2010
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Interest $ - $ - $ 5,516 $ 5,516
Total revenues - - 5,516 5,516
EXPENDITURES
Current:
Capital outlay 647,184 647,184 313,898 333,286
Total expenditures 647,184 647,184 313,898 333,286
Excess (deficiency) of revenues over
expenditures (647,184) (647,184) (308,382) 338,802
OTHER FINANCING SOURCES (USES)
Transfers out (478,308) (478,308) (478,308) -
Total other financing sources (uses) (478,308) (478,308) (478,308) -
Net change in fund balances (1,125,492) (1,125,492) (786,690) 338,802
Fund balances— beginning 1,801,435 1,801,435 1,801,435 -
Fund balances— ending $ 675,943 $ 675,943 $ 1,014,745 $ 338,802
107
... ............ ...............................
CITY OF LA PORTE, TEXAS
Drainage Improvement Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances
Budget and Actual
For The Year Ended September 30, 2010
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Charges for Services $ 288,000 $ 288,000 $ 266,859 $ (21,141)
Interest 2,500 2,500 590 (1,910)
Total revenues 290,500 290,500 267,449 (23,051)
Excess (deficiency) of revenues over
expenditures 290,500 290,500 267,449 (23,051)
OTHER FINANCING SOURCES (USES)
Transfers out (169,000) (169,000) - 169,000
Total other financing sources (uses) (169,000) (169,000) - 169,000
Net change in fund balances 121,500 121,500 267,449 145,949
Fund balances— beginning - - - -
Fund balances— ending $ 121,500 $ 121,500 $ 267,449 $ 145,949
108
CITY OF LA PORTE, TEXAS
Debt Service Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances
Budget and Actual
For The Year Ended September 30, 2010
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Property taxes $ 2,173,774 $ 2,173,774 $ 2,560,023 $ 386,249
Interest 23,200 23,200 28,484 5,284
Total revenues 2,196,974 2,196,974 2,588,506 391,532
EXPENDITURES
Debt service:
Principal 1,990,000 1,990,000 1,755,000 235,000
Interest 2,086,755 2,086,755 1,451,033 635,722
Total expenditures 4,076,755 4,076,755 3,206,033 870,722
Excess (deficiency) of revenues over
expenditures (1,879,781) (1,879,781) (617,527) 1,262,254
OTHER FINANCING SOURCES (USES)
Issuance of debt - - 4,295,000 (4,295,000)
Premium on bonds - - 100,338 (100,338)
Payment to escrow agent - - (4,409,763) 4,409,763
Transfers in 1,892,298 1,892,298 1,598,155 294,143
Total other financing sources (uses) 1,892,298 1,892,298 1,583,730 308,568
Net change in fund balances 12,517 12,517 966,203 953,686
Fund balances— beginning 2,151,483 2,151,483 2,151,483 -
Fund balances— ending $ 2,164,000 $ 2,164,000 $ 3,117,686 $ 953,686
109
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110
SUPPLEMENTARY INDIVIDUAL FUND FINANCIAL
STATEMENTS AND SCHEDULES
General Fund
These supplementary statements and schedules are included to provide management additional information for
financial analysis.
111
CITY OF LA PORTE, TEXAS
General Fund
Schedule of Revenues - Budget and Actual
For The Year Ended September 30, 2010
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
Taxes:
Ad valorem:
Current $11,665,871 $ 11,665,871 $ 13,239,953 $ 1,574,082
Delinquent 200,000 200,000 141,277 (58,723)
Industrial payments 8,718,883 8,718,883 10,464,176 1,745,293
Total ad valorem 20,584,754 20,584,754 23,845,406 3,260,652
Penalty and interest 156,000 156,000 185,194 29,194
Sales taxes 2,892,980 2,892,980 3,142,521 249,541
Other taxes 86,218 86,218 77,450 (8,768)
Franchise Fees:
Electrical 1,291,149 1,291,149 1,276,498 (14,651)
Gas 188,419 188,419 198,044 9,625
Telephone 291,779 291,779 373,632 81,853
Cable 289,098 289,098 233,734 (55,364)
Commercial solidwaste 90,864 90,864 88,791 (2,073)
Total franchise fees 2,151,309 2,151,309 2,170,699 19,390
Charges for services:
Public safety service fees 1,467,983 1,467,983 1,468,657 674
Health and sanitation service fees 1,961,200 1,961,200 1,842,135 (119,065)
Culture and recreation fees 408,202 408,202 661,101 252,899
Other service fees 341,377 341,377 335,261 (6,116)
Total charges for services 4,178,762 4,178,762 4,307,154 128,392
Intergovernmental 3,500 3,500 863 (2,637)
Licenses and permits:
Building permits 570,675 570,675 448,443 (122,232)
Licenses 31 31,110 28,035 (3,075)
Total Licenses and permits 601,785 601,785 476,478 (125,307)
Investment income 225,000 225,000 137,143 (87,857)
Fines and forfeitures 1,523,886 1,523,886 1,531,699 7,813
Miscellaneous 25,000 30,000 59,920 29,920
Total revenues $32,429,194 $ 32,434,194 $ 35,934,527 $ 3,500,333
112
CITY OF LA PORTE, TEXAS
General Fund
Schedule of Expenditures - Budget and Actual
For The Year Ended September 30, 2010
(Continued)
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
GENERAL GOVERNMENT
Administration:
Emergency Management
Personal services $ 171,198 $ 170,791 $ 170,588 $ 203
Supplies 24,555 24,555 19,811 4,744
Other services and charges 97,394 103,394 106,002 (2,608)
Total Emergency Management 293 298,740 296,401 2,339
General Administration:
Personal services 476,450 482,720 482,495 225
Supplies 8,200 6,248 3,640 2,608
Other services and charges 113 114 88 25,073
Total General Administration 598,201 602,971 575,065 27,906
Human Resources:
Personal services 219,464 250,886 249,829 1,057
Supplies 7,150 7,150 6,926 224
Other services and charges 107,815 116,815 116,486 329
Total Human Resources 334,429 374,851 373,241 1,610
Municipal Court:
Personal services 433,039 445,053 444,770 283
Supplies and materials 23,500 23,500 21,629 1,871
Other services and charges 249,652 267,652 267,248 404
Total Municipal Court 706,191 736,205 733,647 2,558
Purchasing:
Personal services 221,100 222,764 222,740 24
Supplies 2,958 3,358 3,315 43
Other services and charges 30,789 30,139 29,596 543
Total Purchasing 254,847 256,261 255,651 610
City Secretary:
Personal services 325,416 337,011 336,940 71
Supplies and materials 4,150 4,150 2,021 2,129
Other services and charges 75,784 92,284 91,983 301
Total City Secretary 405,350 433,445 430,944 2,501
113
CITY OF LA PORTE, TEXAS
General Fund
Schedule of Expenditures - Budget and Actual
For The Year Ended September 30, 2010
(Continued)
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
Legal:
Personal services 14,412 14,412 14,412 -
Other services and charges 166,521 186,021 185,909 112
Total Legal 180 200 200 112
City Council:
Personal services 19,561 19,561 17,439 2,122
Supplies and materials 16,700 33,189 30,194 2,995
Other services and charges 95,725 52,474 33,298 19,176
Capital outlay - 33,762 23,910 9,852
Total City Council 131,986 138,986 104,841 34,145
Total Administration 2,905,084 3,041,892 2,970,111 71,781
Finance:
Accounting:
Personal services 616,771 628,318 628,166 152
Supplies 16,800 16,685 13,396 3,289
Other services and charges 156,858 168,473 168,218 255
Total Accounting 790,429 813,476 809,780 3,696
Nondepartmental:
Personal services 676,371 676,371 545,645 130,726
Supplies 6,000 6,000 4,137 1,863
Other services and charges 1,563,421 998,211 832,029 166,182
Total Nondepartmental 2,245,792 1,680,582 1,381,811 298,771
Tax Office:
Personal services 227,555 225,641 223,659 1,982
Supplies and materials 12,200 12,650 10,065 2,585
Other services and charges 211,366 215,916 215,286 630
Total Tax Office 451,121 454,207 449,010 5,197
Total Finance 3,487,342 2,948,265 2,640,601 307,664
Planning and Engineering:
Planning and Engineering:
Personal services 885,461 899,155 864,933 34,222
Supplies 33,600 33,100 18,355 14,745
Other services and charges 129,360 141,861 109,973 31,888
Total Planning and Engineering 1,048,421 1,074,116 993,261 80,855
Inspection:
Personal services 696,705 704,678 694,719 9,959
Supplies 22,878 28229 26,334 1,895
Other services and charges 234,719 239,169 167,224 71,945
Total Inspection 954,302 972,076 888,277 83,799
Total Planning and Engineering 2,002,723 2,046,192 1,881,538 164,654
TOTAL GENERAL GOVERNMENT 8,395,149 8,036,349 7,492,250 544,099
114
CITY OF LA PORTE, TEXAS
General Fund
Schedule of Expenditures - Budget and Actual
For The Year Ended September 30, 2010
(Continued)
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
PUBLIC SAFETY:
Fire
Fire Prevention:
Personal services 245,433 246,029 244,357 1,672
Supplies 9,273 8,723 7,191 1,532
Other services and charges 41,630 42,654 40,666 1,988
Total Fire Prevention 296,336 297,406 292,214 5,192
Fire suppression:
Personal services 1,256,734 1,286,609 1,286,582 27
Supplies 156,522 155,022 151,250 3,772
Other services and charges 622,503 614,129 613,680 449
Capital outlay 33,500 46,900 45,416 1,484
Total Fire Suppression 2,069,259 2,102,660 2,096,928 5,732
Emergency medical services:
Personal services 1,686,408 1,678,778 1,596,133 82,645
Supplies 168,592 173,724 169,967 3,757
Other services and charges 233,526 233,576 208,390 25,186
Capital outlay - 28,050 27,967 83
Total Emergency Services 2,088,526 2,114,128 2,002,457 111,671
Total Fire 4,454,121 4,514,194 4,391,599 122,595
Police
Police Administration:
Personal services 637,099 669,575 668,828 747
Supplies 15,994 15,994 14,412 1,582
Other services and charges 271,626 274,726 274,291 435
Total Police Administration 924,719 960,295 957,531 2,764
Police Patrol:
Personal services 4,088,046 4,225,209 4,225,114 95
Supplies 198,010 214,702 214,541 161
Other services and charges 742,155 678,950 676,601 2,349
Capital outlay 27,000 23,008 22,808 200
Total Police Patrol 5,055,211 5,141,869 5,139,064 2,805
Criminal Investigation:
Personal services 1,683,952 1,626,380 1,625,896 484
Supplies 51,429 67,410 67,361 49
Other services and charges 151,167 139,514 138,398 1,116
Total Criminal Investigation 1,886,548 1,833,304 1,831,655 1,649
115
CITY OF LA PORTE, TEXAS
General Fund
Schedule of Expenditures - Budget and Actual
For The Year Ended September 30, 2010
(Continued)
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
Support Services:
Personal services 1,916,549 1,894,109 1,780,132 113,977
Supplies 90,160 100,807 95,294 5,513
Other services and charges 126,351 125,914 107,218 18,696
Total Support Services 2,133,060 2,120,830 1,982,644 138,186
Total Police 9,999,538 10,056,298 9,910,894 145,404
TOTAL PUBUC SAFETY 14453,659 14,570,492 14,302,493 267,999
PUBUC WORKS:
Public Works Administration:
Personal services 268,605 271,273 271,718 (445)
Supplies and materials 4,700 4,677 4,105 572
Other services and charges 109,351 109,374 73,011 36,363
Total Public Works Administration 382,656 385,324 348,834 36,490
Streets:
Personal services 1536,208 1,595,520 1,525,874 69,646
Supplies 165,720 165,720 130,237 35,483
Other services and charges 755,939 763,505 683,652 79,853
Capital outlay 53,000 53,000 43,069 9,931
Total Streets 2,510,867 2,577,745 2,382,832 194,913
TOTAL PUBLIC WORKS 2,893,523 2,963,069 2,731,666 231,403
HEALTH AND SANITATION:
Residential Solidwaste:
Personal services 1,090,240 1,102,692 1,064,900 37,792
Supplies 247,586 240,586 212,147 28,439
Other services and charges 863,675 870,675 868,238 2,437
Capital outlay 16,688 16,688 15,804 884
Total Residential Solidwaste 2,218,189 2,230,641 2,161,089 69,552
Commercial solidwaste:
Other services and charges 21,000 21,000 19,001 1,999
TOTAL HEALTH AND SANITATION 2,239,189 2,251,641 2,180,090 71,551
CULTURE & RECREATION:
Park Maintenance:
Personal services 1,159,397 1,164,903 1,164,227 676
Supplies and materials 106,750 111,250 110,849 401
Other services and charges 771,085 868,510 867,831 679
Capital outlay 234,000 233,775 225
Total Park Maintenance 2,037,232 2,378,663 2,376,682 1,981
116
CITY OF LA PORTE, TEXAS
General Fund
Schedule of Expenditures - Budget and Actual
For The Year Ended September 30, 2010
(Continued)
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
Recreation:
Personal services 520,696 527,448 520,555 6,893
Supplies 63,541 59,541 51,389 8,152
Other services and charges 194,869 198,869 198,779 90
Total Recreation 779,106 785,858 770,723 15,135
Special Services:
Personal services 378,486 348,158 335,924 12,234
Supplies 25,237 25,237 22,592 2,645
Other services and charges 72,896 72,896 71,918 978
Total Special Services 476,619 446 430,434 15,857
Parks Administration:
Personal Services 477,923 455,086 437,682 17,404
Supplies 9,300 9,300 8,686 614
Other services and charges 40,889 40,889 36,780 4,109
Total Parks Administration 528,112 505,275 483,148 22,127
TOTAL CULTURE AND RECREATION 3,821,069 4,116,087 4,060,987 55,100
TOTAL GENERAL FUND $ 31,802,589 $ 31,937,638 $ 30,767,486 $ 1,170,152
117
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118
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 Toss similar to comparable private enterprises.
Airport Fund — This fund is used to account for financial activities of the airport, which include rentals, grants and
other revenues.
Sylvan Beach Fund — This fund is used to account for revenues and expenses related to the operations of
Sylvan Beach Convention Center.
Golf Course Fund — This fund is used to account for revenues and expenses related to the operation of an
eighteen -hole municipal golf course.
119
CITY OF LA PORTE, TEXAS
Combining Statement of Net Assets
Nonmajor Proprietary Funds
September 30, 2010
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 $ 255,056 $ - $ 1,640 $ 256,696
Investments 84,921 - - 84,921
Receivables, net of
allowance for uncollectibles - - 5,122 5,122
Accrued interest receivable 37 - - 37
Total current assets 340,014 - 6,762 346,776
Noncurrent assets:
Capital assets:
Land 203,504 - 1,880,965 2,084,469
Buildings and improvements - - 731,524 731,524
Improvements other than buildings 5,725,144 - 2,879,348 8,604,492
Vehicles and equipment - - 43,630 43,630
Less accumulated depreciation (2,951,386) - (2,671,780) (5,623,166)
Total noncurrent assets 2,977,262 - 2,863,687 5,840,949
Total assets 3,317,276 - 2,870,449 6,187,725
LIABILITIES
Current liabilities:
Accounts payable 115 23,262 23,377
Due to other funds - - 390,808 390,808
Accrued salaries payable - - 27,135 27,135
Other current liabilities 1,500 - 7,873 9,373
Total current liabilities 1,615 - 449,078 450,693
Noncurrent liabilities:
Net pension obligation - - 47,920 47,920
Net OPEB obligation - - 102,776 102,776
Accrued separation pay - - 126,872 126,872
Total noncurrent liabilities - - 277,568 277,568
Total liabilities 1,615 - 726,646 728,261
NET ASSETS
Invested in capital assets 2,977,262 2,863,687 5,840,949
Unrestricted (deficit) 338,399 - (719,884) (381,485)
Total net assets $ 3,315,661 $ - $ 2,143,803 $ 5,459,464
120
CITY OF LA PORTE, TEXAS
Combining Statement of Revenues, Expenses and Changes in Fund Net Assets
Nonmajor Proprietary Funds
For The Year Ended September 30, 2010
Business -type Activities -
Enterprise Funds
Total
Sylvan Beach Nonmajor
Convention Bay Forest Proprietary
Airport Center Golf Course Funds
Operating revenues:
User fees $ 53,216 $ - $ 1,002,234 $ 1,055,450
Operating expenses:
Personal services - - 948,532 948,532
Supplies - - 188,272 188,272
Other services and charges 15,969 - 217,082 233,051
Depreciation 165,071 - 131,211 296,282
Total operating expenses 181,040 - 1,485,097 1,666,137
Operating Toss (127,824) - (482,863) (610,687)
Nonoperating revenues (expenses):
Interest income 1,889 - - 1,889
Total nonoperating revenue (expenses) 1,889 - - 1,889
Loss before contributions
and transfers (125,935) - (482,863) (608,798)
Capital contributions - - 45,059 45,059
Transfers in - - 53,000 53,000
Transfers out (518) (265,398) (17,704) (283,620)
Change in net assets (126,453) (265,398) (402,508) (794,359)
Total net assets — beginning 3,442 265,398 2,546 6,253,823
Total net assets -- ending $ 3 $ - $ 2 $ 5,459
121
CITY OF LA PORTE, TEXAS
Combining Statement of Cash Flows
Nonmajor Proprietary Funds
For The Year Ended September 30, 2010
Business -type Activities -
Enterprise Funds
Total
Sylvan Beach Nonmajor
Convention Bay Forest Proprietary
Airport Center Golf Course Funds
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received (refunded) from user fees $ 55,880 $ (1,885) $ 1,003,475 $ 1,057,470
Cash payments to suppliers (16,759) (467) (169,655) (186,881)
Cash payments for personal services - (4,147) (870,082) (874,229)
Net cash provided (used) by operating activities 39,121 (6,499) (36,262) (3,640)
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
Transfers from other funds - - 53,000 53,000
Transfers to other funds (518) (265,398) (17,704) (283,620)
Net cash provided (used) by noncapital financing activies (518) (265,398) 35,296 (230,620)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest on investments 2,028 70 - 2,098
Net investments purchased (124,454) - - (124,454)
Net investments sold 164,759 160,546 - 325,305
Net cash provided by investing activities 42,333 160,616 - 202,949
Net increase (decrease) in cash and cash equivalents 80,936 (111,281) (966) (31,311)
Balances - beginning of the year 174,120 111,281 2,606 288,007
Balances -end of the year $ 255,056 $ - $ 1,640 $ 256,696
Reconciliation of operating income (loss) to net cash
provided (used) by operating activities:
Operating income (loss) $ (127,824) $ - $ (482,863) $ (610,687)
Adjustments to reconcile operating income (loss) to net cash
provided (used) by operating activities:
Depreciation expense 165,071 - 131,211 296,282
(Increase) decrease in accounts receivable 2,664 - 1,241 3,905
Increase (decrease) in accrued salaries payable - 3,421 3,421
Increase (decrease) in accounts payable (790) (467) (11,043) (12,300)
Increase (decrease) in other current liabilities - 641 641
Increase (decrease) in customer utility deposits - (1,885) - (1,885)
Increase (decrease) due to other funds - - 246,102 246,102
Increase (decrease) in accrued employee separation - (4,147) (4,586) (8,733)
Increase (decrease) in net pension olbligation - - 26,923 26,923
Increase (decrease) in net OPEB obligation - - 52,691 52,691
Total adjustments 166,945 - (6,499) - 446,601 - 607,047
Net cash provided (used) by operating activities $ 39,121 $ (6,499) $ (36,262) $ (3,640)
Noncash investing, capital and financing activities:
Increase in fair value of assets $ 34 $ 21 $ - $ 55
Contributions of capital assets - - 45,059 45,059
122
COMBINING FINANCIAL STATEMENTS
Internal Service Funds
Internal Service Funds account for the financing of goods or services provided by one City department for
another.
Motor Pool Fund — This fund is used to account for the cost of operating and maintaining automotive and other
equipment used by City departments and the purchase of general government vehicles (those not used by
proprietary fund activities). Service charges are billed to departments on a monthly basis to cover all expenses
of the fund.
Technology Fund — This fund is used to account for the cost of operating and maintaining computer software
and equipment used by City departments. Service charges are billed to departments on a monthly basis to
cover all expenses of the fund.
Insurance Fund — This fund is used to account for the provision of group health coverage for all City employees
and others eligible under the City's plan, including employee dependents and retirees.
123
CITY OF LA PORTE, TEXAS
Internal Service Funds
Combining Statement of Net Assets
September 30, 2010
Motor
Pool Technology Insurance Totals
ASSETS
Current assets:
Cash and cash equivalents $ 3,335,168 $ 427,108 $ 2,126,413 $ 5,888,689
Investments 1,110,456 142,207 707,997 1,960,660
Accrued interest receivable 509 54 307 870
Miscellaneous receivable 1,250 - 119,927 121,177
Material and supplies inventories, at cost 34,625 - - 34,625
Total current assets 4,482,008 569,369 2,954,644 8,006,021
Noncurrent assets:
Capital assets
Vehicles and equipment 12,017,142 205,945 - 12,223,087
Less accumulated depreciation (7,289,397) (151,025) - (7,440,422)
Total noncurrent assets 4,727,745 54,920 - 4,782,665
Total assets 9,209,753 624289 2,954,644 12,788,686
LIABILITIES
Current liabilities:
Accounts payable 11,317 35,418 509,149 555,884
Accrued salaries payable 20,511 11,970 654 33,135
Total current liabilities 31,828 47,388 509,803 589,019
Noncurrent liabilities:
Accrued employee separation pay 95 - - 95,619
Total noncurrent liabilities 95,619 - - 95,619
Total liabilities 127,447 47,388 509,803 684,638
NET ASSETS
Invested in capital assets 4,727,745 54,920 - 4,782,665
Unrestricted 4,354, 561 521,981 2,444,841 7,321,383
Total net assets $ 9,082,306 $ 576,901 $ 2,444,841 $ 12,104,048
124
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, 2010
Motor
Pool Technology Insurance Totals
Operating revenues:
User fees $ 2,195,595 $ 1,111,822 $ 3,685,729 $ 6,993,146
Cable fees - 72,275 - 72,275
Total operating revenues 2,195,595 1,184,097 3,685,729 7,065,421
Operating expenses:
Personal services 726,250 365,255 209,447 1,300,952
Supplies 372,849 125,398 - 498,247
Othersevices and charges 132,534 749,937 4,471,147 5,353,618
Depreciation 797 12 - 809
Total operating expenses 2,028,726 1,252,738 4,680,594 7,962,058
Operating income (loss) 166,869 (68,641) (994,865) (896,637)
Nonoperating revenues:
Interest income 15,136 3,350 16,010 34,496
Gain (loss) on sale of assets 75 (36,062) - 39,668
Total nonoperating revenues 90,866 (32,712) 16,010 74,164
Income (loss) before contributions and transfers 257,735 (101,353) (978,855) (822,473)
Capital contributions 42,268 - - 42,268
Transfers in 1,800,000 - 497,775 2,297,775
Transfers out (13,237) (424) - (13,661)
Change in net assets 2,086,766 (101,777) (481,080) 1,503,909
Net assets — beginning 6,995,540 678,678 2,925,921 10,600,139
Net assets — ending $ 9,082,306 $ 576,901 $ 2,444,841 $12,104,048
125
CITY OF LA PORTE, TEXAS
Internal Service Funds
Combining Statement of Cash Flows
For The Year Ended September 30, 2010
Motor
Pool Technology Insurance Totals
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from user fees $ 2,194,345 $ 1,184,097 $ 3,685,729 $ 7,064,171
Cash payments to suppliers (554,668) (934,879) (4,435,367) (5,924,914)
Cash payments for personal services (734,355) (362,644) (208,793) (1,305,792)
Net cash provided (used) by operating activities 905,322 (113,426) (958,431) (166,535)
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Transfers in from other funds 1,800,000 - 497,775 2,297,775
Transfers out to other funds (13,237) (424) - (13,661)
Net cash provided (used) by noncapital
financing activies 1,786,763 (424) 497,775 2,284,114
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES
Payments for capital acquisitions (765,609) (36,170) - (801,779)
Proceeds from sale of assets 131,200 - - 131,200
Net cash (used) by capital and related financing
activies (634,409) (36,170) - (670,579)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest on investments 16,058 3,668 17,621 37,347
Investments purchased (2,272,794) (413,675) (1,373,598) (4,060,067)
Investments sold 2,154,418 570,846 2,036,652 4,761,916
Net cash provided (used) by investing activities (102,318) 160,839 680,675 739,196
Net decrease in cash and cash equivalents 1,955,358 10,819 220,019 2,186,196
Balances- beginning of the year 1,379,810 416,289 1,906,394 3,702,493
Balances -end of the year $ 3,335,168 $ 427,108 $ 2,126,413 $ 5,888,689
Reconciliation of operating income (loss) to
net cash provided (used) by operating activities:
Operating income (loss) $ 166,869 $ (68,641) $ (994,865) $ (896,637)
Adjustments to reconcile operating income (loss)
to net cash provided by operating activities:
Depreciation expense 797,093 12,148 - 809,241
(Increase) decrease in accounts receivable (1,250) - 321 (929)
(Increase) decrease in inventories 1,982 - - 1,982
Increase (decrease) in accrued salaries payable (213) 2,611 654 3,052
Increase(decrease) in accounts payable (51,267) (59,544) 35,780 (75,031)
Increase (decrease) in deferred revenue - - (321) (321)
Increase (decrease) in accrued empbyee
separation (7,892) - - (7,892)
Total adjustments 738,453 (44,785) 36,434 730,102
Net cash provided (used) by operating activities $ 905,322 $ (113,426) $ (958,431) $ (166,535)
Reconciliation of total cash and cash investments:
Current Assets - cash and cash equivalents 3,335,168 427,108 2,126,413 5,888,689
Total cash and cash equivalents $ 3,335,168 $ 427,108 $ 2,126,413 $ 5,888,689
Noncash investing, capital and financing activities:
Increase h fair value of assets $ 441 $ 56 $ 281 $ 778
126
CAPITAL ASSETS USED IN THE OPERATION
OF GOVERNMENTAL FUNDS
These schedules present the capital asset balances related to governmental funds. A capital asset is presented in
this schedule when it has been purchased using general governmental resources and is used for general
governmental purposes. Assets are recorded at historical cost if purchased, or if historical cost is not available,
estimated historical cost, or fair market value on the date donated, if donated.
127
* I 4
is* _ 40
ia. l ' ,f), ,,\..4
m
128
CITY OF LA PORTE, TEXAS
Capital Assets Used in the Operation of Governmental Funds
Schedule by Source
For The Year Ended September 30, 2010
Governmental funds capital assets
Land $ 9,699,810
Buildings and improvements 34,829,904
Improvements other buildings 17,390,197
Infrastructure 34,747,261
Machinery and equipment 2,982,615
Construction in progress 4,694,817
Total govemmental funds capital assets $ 104,344,604
Investment in governmental funds capital assets by source
Current Operations $ 23,238,404
Capital Projects 79,781,094
Section 4B Sales Tax 1,325,106
Total govemmental funds capital assets $ 104,344,604
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
govemmental activities in the statement of net assets.
129
CITY OF LAPORTE, TEXAS
Capital Assets Used in the Operation of Governmental Funds
Schedule by Function and Activity
September 30, 2010
Buildings and Improvements other
Function and Activity Land Improvements than Buildings Infrastructure
General Government
Administration $ 1,055,865 $ 10,566,154 $ 2,883,294 $ -
Planning 399,789 - - 255,388
Total general govemment 1,455,654 10,566,154 2,883,294 255,388
Public Safety
Fire 815,500 7,797,666 28,422 -
Police 1,245 9,749,611 313,427 -
Total Public Safety 816,745 17,547,277 341,849 -
Public Works
Adminstration 2,760,405 2,112,774 371,785 17,878,440
Streets - - - 16,515,354
Total Public Works 2,760,405 2,112,774 371,785 34,393,794
Cultural and Recreational
Parks and Recreation 4,667,006 4,603,699 13,793,269 98,079
Total governmental funds
capital assets $ 9,699,810 $ 34,829,904 $ 17,390,197 $ 34,747,261
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 intemal service funds are included as
govemmental activities in the statement of net assets.
130
Machinery and Construction
Equipment in Progress
$ 446,216 $ 658,138
19,922 2,127,995
466,138 2,786,133
961,848 -
917,464 -
1,879,312 -
278,577 13,633
278,577 13,633
358,588 1,895,051
$ 2,982,615 $ 4,694,817
131
CITY OF LA PORTE, TEXAS
Capital Assets Used in the Operation of Governmental Funds
Schedule of Changes by Function and Activity
For The Year Ended September 30, 2010
Govemmental Govemmental
Fund Capital Fund Capital
Assets Assets
October 1, Additions/ Retirements/ September 30,
Function and Activity 2009 Adjustments Adjustments 2010
General govemment
Administration $ 15,830,183 $ 1,787,777 $ (2,008,293) $ 15,609,667
Planning 1,678,154 1,146,076 (21,136) 2,803,094
Total general government 17 2 (2,029,429) 18,412,761
Public safety
Fire 9,385,810 199,060 18,566 9,603,436
Police 11,147,546 90,332 (256,131) 10,981,747
Total public safety 20,533,356 289,392 (237,565) 20,585,183
Public works
Administration 22,170,303 654,356 344,219 23,168,878
Streets 16,762,090 - - 16,762,090
Total public works 38,932,393 654,356 344,219 39,930,968
Cultural and Recreational
Parks and recreation 18,859,565 4,865,818 1,690,309 25,415,692
Total governmental funds
capital assets $ 95,833,651 $ 8,743,419 $ (232,466) $ 104,344,604
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 intemal service funds are included as
govemmental activities in the statement of net assets.
132
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 134
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 146
These schedules contain information to help the reader assess the
govemment's most significant local revenue source, the property tax.
Debt Capacity 152
These schedules present information to help the reader assess the
affordability of the govemment's current levels of outstanding debt and the
govemment'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 161
These schedules contain service and infrastructure data to help the reader
understand how the information in the govemment's financial report relates to
the services the govemment provides and the activities it performs.
Sources: Unless otherwise noted, the information in these schedules is derived from the Comprehensive Annual
Financial Reports for the relevant year.
133
City of La Porte, Texas
Net Assets by Component
Last Eight Fiscal Years
(accrual basis of accounting)
(unaudited)
Fiscal Year
2003 2004 2005 2006
Governmental activities
Invested in capital assets,
net of related debt $ 23,400,108 $ 32,752,971 $ 28,933,050 $ 28,424,345
Restricted 5,804,419 5,770,840 6,642,077 7,363,187
Unrestricted 23,953,457 12,997,982 19,369,700 18,983,653
Total governmental activities net assets $ 53,157,984 $ 51,521,793 $ 54,944,827 $ 54,771,185
Business -type activities
Invested in capital assets,
net of related debt $ 26,109,776 $ 25,996,416 $ 26,589,684 $ 29,642,136
Restricted 3,042,730 3,662,800 3,407,445 2,185,791
Unrestricted 4,709,368 2,647,090 1,264,814 3,396,751
Total business -type activities net assets $ 33,861,874 $ 32,306,306 $ 31,261,943 $ 35,224,678
Primary government
Invested in capital assets,
net of related debt $ 49,509,884 $ 58,749,387 $ 55,522,734 $ 58,066,481
Restricted 8,847,149 9,433,640 10,049,522 9,548,978
Unrestricted 28,662,825 15,645,072 20,634,514 22,380,404
Total primary government net assets $ 87,019,858 $ 83,828,099 $ 86,206,770 $ 89,995,863
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.
134
Fiscal Year
2007 2008 2009 2010
$ 27,529,009 $24,922,673 $32,667,469 35,194,777
13,316,591 16,566,966 16,169,693 18,108,170
19, 985, 983 18, 985, 215 16, 838, 404 13, 904, 445
$ 60,831,583 $60,474,854 $65,675,566 $67,207,392
$ 29,481,368 $35,483,003 $40,206,362 $ 40,595,009
2,184,725 2,188,240 1,352,867 1,459,834
3,295,501 3,799,361 2,472,578 2,027,477
$ 34 ,961,594 $41,470,604 $44,031,807 $44,082,320
57,010,377 $60,405,676 $72,873,831 $75,789,786
15, 501, 316 18, 755, 206 17, 522, 560 19, 568, 004
23,281,484 22,784,576 19,310,982 15,931,922
$ 95,793,177 $101,945,458 $109,707,373 $111,289,712
135
City of La Porte, Texas
Changes in Net Assets
Last Eight Fiscal Years
(accrual basis of accounting)
(unaudited)
Fiscal Year
2003 2004 2005 2006
Expenses
Governmental activities:
General Government $ 8,625,554 $ 10,487,889 $ 7,411,122 $ 7,348,812
Public Safety 10,771,423 11,947,286 10,367,759 11,602,951
Public Works 3,638,063 1,267,829 5,164,855 5,209,686
Health and Sanitation 1,823,462 1,906,519 1,887,204 1,862,368
Culture and Recreation 4,048,974 4,106,491 3,717,791 3,579,917
Interest on Long -term debt 747,351 689,644 863,818 1,226,231
Total governmental activities expenses 29,654,827 30,405,658 29,412,549 30,829,965
Business -type activities:
Water Services 6,339,238 6,256,424 6,477,962 6,844,635
Sewer Services 1,913,284 1,895,709 1,819,756 1,894,415
Airport 149,472 142,765 157,186 122,548
Bay Forest Golf Course 1,284,729 1,222,819 1,242,613 1,285,121
Sylvan Beach Convention Center 212,947 194,314 211,682 214,552
Total business -type expenses 9,899,670 9,712,031 9,909,199 10,361,271
Total primary government expenses $ 39,554,497 $ 40,117,689 $ 39,321,748 $ 41,191,236
Program Revenues
Governmental activities:
Charges for services:
General government $ 660,955 $ 528,296 $ 670,332 $ 1,002,267
Public safety 1,689,780 1,441,662 1,498,310 1,333,005
Public works 1,481,061 106,026 24,242 -
Health and sanitation 830,991 463,629 1,429,617 1,770,611
Culture and recreation 657,784 1,157,449 460,796 429,971
Operating grants and contributions 480,037 576,262 2,639,934 1,031,408
Capital grants and contributions - - - -
Total governmental activities program revenues 5,800,608 4,273,324 6,723,231 5,567,262
Business -type activities:
Charges for services
Water services 4,157,556 4,155,589 4,500,140 5,438,932
Sewer services 2,493,284 2,493,134 2,591,406 2,842,495
Airport 30,001 32,728 32,728 35,624
Golf course 943,493 1,022,103 965,983 955,867
Sylvan beach convention center 161,355 180,642 163,859 162,508
Capital grants and contributions - - - -
Total business -type program revenues 7,785,689 7,884,196 8,254,116 9,435,426
Total primary government program revenues $ 13,586,297 $ 12,157,520 $ 14,977,347 $ 15,002,688
136
Fiscal Year
2007 2008 2009 2010
$ 8,410,865 $ 10,056,369 $ 11,442,946 $ 11,497,476
12,153,324 16,267,453 15,495,372 17,108,837
3,668,425 4,348,281 8,095,274 4,601,382
2,487,531 2,465,327 2,378,808 2,521,222
3,120,183 4,004,206 4,222,945 6,483,006
1,352,747 1,694,638 1,527,041 1,556,740
31,193,075 38,836,274 43,162,386 43,768,663
6,548,382 6,630,986 4,832,857 5,721,303
2,086,651 2,247,031 2,603,424 2,674,456
123,904 155,970 183,186 181,040
1,310,589 1,361,970 1,436,792 1,485,097
218,053 225,353 25,649 -
10,287,579 10,621,310 9,081,908 10,061,896
$ 41,480,654 $ 49,457,584 $ 52,244,294 $ 53,830,559
$ 2,006,607 $ 2,724,739 $ 3,060,864 $ 3,116,325
435,128 591,101 1,681,028 1,593,247
- - 4,610 1,066,936
1,856,013 1,888,934 1,848,717 1,842,135
418,143 417,836 447,719 660,780
991,679 4,647,718 5,165,295 1,004,047
- 234,630 1,259,614 -
5,707,570 10,504,958 13,467,847 9,283,470
4,789,854 6,132,716 4,520,092 3,849,661
2,763,715 3,670,202 3,362,791 3,307,484
42,359 64,639 53,325 53,216
911,371 1,031,822 1,067,105 1,002,234
189,290 161,342 2,479 -
1,060,948 2,337,630 1,785,653 860,304
9,757,537 13,398,351 10,791,445 9,072,899
$ 15,465,107 $ 23,903,309 $ 24,259,292 $ 18,356,369
137
City of La Porte, Texas
Changes in Net Assets
Last Eight Fiscal Years
(accrual basis of accounting)
(unaudited)
Fiscal Year
2003 2004 2005 2006
Net (expense) /revenue
Governmental activities: $ (23,854,219) $ (26,132,334) $ (22,689,318) $ (25,262,703)
Business -type activities: (2,113,981) (1,827,835) (1,655,083) (925,845)
Total primary government net expense $ (25,968,200) $ (27,960,169) $ (24,344,401) $ (26,188,548)
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
Property taxes, levied for debt service 2,070,120 1,922,117 1,623,095 1,661,801
Industrial payments 7,276,821 6,896,112 6,991,926 7,659,591
Franchise taxes 1,682,849 1,718,875 1,885,801 1,986,698
Sales tax 3,037,574 3,263,459 3,459,979 4,067,767
Unrestricted investment earnings 542,254 376,359 720,137 1,874,828
Grants not specified for specific program - - - 75,189
Miscellaneous 704,886 495,102 753,595 1,137,928
Gain /(loss) on sale /retirement of capital assets (260,545) - 103,594 -
Transfers (253,629) 684,697 381,625 (3,910,056)
Total governmental activities 23,598,216 24,496,143 26,112,351 25,089,062
Business -type activities
Unrestricted investment earnings 121,174 88,602 165,162 300,099
Miscellaneous 889,298 874,146 827,183 694,507
Gain /(loss) on sale /retirement of capital assets - (5,784) - (16,083)
Transfers 253,629 (684,697) (381,625) 3,910,056
Total business -type activities 1,264,101 272,267 610,720 4,888,579
Total primary government $ 24,862,317 $ 24,768,410 $ 26,723,071 $ 29,977,640
Change in Net Assets
Governmental activities $ (256,003) $ (1,636,191) $ 3,423,033 $ (173,642)
Business -type activities (849,880) (1,555,568) (1,044,363) 3,962,734
Total primary government $ (1,105,883) $ (3,191,759) $ 2,378,670 $ 3,789,091
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.
138
Fiscal Year
2007 2008 2009 2010
$ (25,485,505) $ (28,331,316) $ (29,694,539) $ (34,485,193)
(530,042) 2,777,041 1,709,537 (988,997)
$ (26,015,547) $ (25,554,275) $ (27,985,002) $ (35,474,190)
$ 11,246,050 $ 11,802,564 $ 14,389,535 $ 15,182,382
1,819,554 1,880,095 2,001,702 2,560,023
8,188, 891 7,958,522 10, 554, 872 10, 732, 488
2,003,691 2,165,343 2,160,425 2,170,699
5,735,725 5,803,077 5,787,406 5,913,679
2,386,980 1,782,572 687,567 293,943
- - 2,000 -
89,400 115,351 90,599 164,237
75,612 (3,532,936) (778,855) (1,000,432)
31,545,903 27,974,588 34,895,251 36,017,019
342,566 199,060 72,814 39,078
(75,612) 3,532,936 778,855 1,000,432
266,954 3,731,996 851,669 1,039,510
$ 31,812,856 $ 31,706,583 $ 35,746,919 $ 37,056,529
$ 6,060,398 $ (356,728) $ 5,200,712 $ 1,531,826
(263,088) 6,509,037 2,561,206 50,513
$ 5,797,310 $ 6,152,307 $ 7,761,918 $ 1,582,339
139
City of La Porte, Texas
Governmental Activities Tax Revenues By Source
Last Eight Fiscal Years
(accrual basis of accounting)
(unaudited)
Fiscal Property Industrial Franchise Public Service
Year Taxes Payments Taxes Taxes Total
2003 $10,868,006 $ 7,276,821 $ 1,682,849 $ 3,037,574 $22,865,250
2004 11,061,539 6,896,112 1,718,875 3,263,459 22,939,985
2005 11, 815, 694 6,991,926 1,885,801 3,459, 979 24,153,400
2006 12,197,117 7,659,591 1,986,698 4,067,767 25,911,173
2007 13,065,604 8,188,891 2,003,691 5,735,725 28,993,911
2008 13,682,659 7,958,522 2,165,343 5,803,077 29,609,601
2009 16,391,237 10,554,872 2,160,425 5,787,406 34,893,940
2010 17,742,405 10,732,488 2,170,699 5,913,679 36,559,271
Note: The City of La Porte first applied GASB Statement 34 in fiscal year 2003;
therefore government -wide financial information for years prior to fiscal year
2003 is not available.
140
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141
City of La Porte, Texas
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
(unaudited)
2001 2002 2003 2004 2005
General fund
Reserved $ 58,827 $ 74,843 $ 209,191 $ 440,926 $ 209,191
Unreserved 7,608,591 7,053,076 6,632,833 7,009,028 8,972,133
Total general fund $ 7,667,418 $ 7,127,919 $ 6,842,024 $ 7,449,954 $ 9,181,324
All other governmental funds
Reserved $ 1,303,068 $ 1,589,610 $ 7,462,916 $ 1,584,497 $ 2,061,426
Unreserved /U n d es ig n ated
Unreserved, reported in:
Special revenue funds 3,307,882 3,850,787 3,770,935 1,005,159 4,255,634
Capital projects funds 11,765,217 13,778,877 5,067,980 9,287,535 16,488,090
Total all other governmental funds $ 16,376,167 $ 19,219,274 $ 16,301,831 $ 11,877,191 $ 22,805,150
142
Fiscal Year
2006 2007 2008 2009 2010
$ 144,775 $ 169,708 $ 360,727 $ 198,665 $ 254,636
10,970, 885 13,687,895 13, 587,254 13, 395, 364 11, 849, 853
$ 11,115,660 $ 13,857,603 $ 13,947,981 $ 13,594,029 $ 12,104,489
$ 2,266,406 $ 2,670,858 $ 3,021,882 $ 2,761,058 $ 4,420,190
5,100,995 7,501,313 6,325,089 3,517,187 3,688,288
18,813,872 18,660,427 19,933,451 17,943,808 20,330,852
$ 26,181,273 $ 28,832,598 $ 29,280,422 $ 24,222,053 $ 28,439,330
143
City of La Porte, Texas
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
(unaudited)
2001 2002 2003 2004
Revenues
Taxes $ 22,406,291 $ 23,300,851 $ 22,922,669 $ 22,948,635
Donations - - - -
Harris County Joint Ventures - - - -
Licenses and permits 262,010 238,535 199,970 320,405
Fines and forfeits 561,547 614,534 847,250 554,559
Charges and services 2,923,504 2,129,487 2,275,333 2,947,340
Intergovernmental 673,105 385,722 480,037 576,262
Interest 1,626,693 748,798 481,822 325,418
Miscellaneous 119,228 143,668 125,020 32,605
Total revenues $ 28,572,378 $ 27,561,595 $ 27,332,101 $ 27,705,224
Expenditures
General Government 5,232,112 5,294,977 5,542,520 7,971,284
Public Safety 9,364,320 10,165,683 10,477,080 10,414,544
Public Works 2,487,825 2,422,522 2,556,011 2,361,192
Health and Sanitation 2,278,761 1,764,906 1,823,462 1,758,964
Culture and Recreation 3,058,199 3,297,865 3,475,888 3,245,144
Debt Service
Principal 1,775,000 1,685,000 1,590, 000 1,490,000
Interest 729,932 634,535 795,199 699,834
Capital Outlay 3,032,461 4,077,477 2,771,651 3,259,141
Total expenditures 27,958,610 29,342,965 29,031,811 31,200,103
Excess of revenues
over (under) expenditures 613,768 (1,781,370) (1,699,710) (3,494,879)
Other financing sources (uses)
Issuance of debt - 5,400,000 - -
Premium on bond - - - -
Payment to Escrow Agent 1,974,671 1,870,191 1,919,871 3,469,026
Transfers in (1,849,671) (3,185,214) (3,423,500) (3,790,857)
Transfers out - - - -
Proceeds from sale of assets - - - -
Total other financing
sources (uses) 125,000 4,084,977 (1,503,629) (321,831)
Net change in fund balances $ 738,768 $ 2,303,607 $ (3,203,339) $ (3,816,710)
Debt service as a percentage
of noncapital expenditures 10.0% 9.2% 9.1% 7.8%
144
Fiscal Year
2005 2006 2007 2008 2009 2010
$ 24,045,940 $ 25,687,864 $ 28,919,159 $ 30,059,710 $ 34,929,693 $36,681,503
30,000 - 30,000 - - -
1,751,555 - - - - -
531,091 683,284 919,923 559,803 641,614 476,478
678,205 848,232 1,243,694 1,726,433 1,832,570 1,802,785
3,233,453 3,887,570 3,966,801 3,958,189 4,469,922 6,083,767
1,112,687 1,174,381 716,103 4,755,080 4,868,313 988,532
630,683 1,709,163 2,117,375 1,883,095 610,270 262,993
183,658 163,380 77,056 90,409 105,221 125,142
$ 32,197,272 $ 34,153,874 $ 37,990,111 $ 43,032,719 $ 47,457,603 $46,421,200
6,848,838 7,236,765 7,696,436 8,418,445 9,869,159 9,787,606
10,532,857 11,071,829 11,769,003 15,609,623 13,858,540 14,611,737
2,430,322 2,360,073 2,407,428 2,908,970 6,663,539 2,818,921
1,808,313 1,813,812 1,972,823 2,478,846 2,087,069 2,232,848
3,067,815 3,010,725 3,103,466 3,470,123 3,817,253 5,048,448
1,330,000 1,195,000 1,235,000 1,655,000 1,695,000 1,755,000
1,030,430 1,374,314 1,582,287 1,757,889 1,572,212 1,587,566
8,566,314 6,550,309 10,012,947 6,351,166 15,556,898 10,843,496
35,614,889 34,612,827 39,779,390 42,650,062 55,119,670 48,685,622
(3,417,617) (458,953) (1,789,279) 382,657 (7,662,067) (2,264,422)
16,586,900 6,965,000 8,075,000 - - 10,560,000
- 191,055 37,572 - - 224,008
3,222,196 6,055,874 4,196,574 7,625,287 14,231,895 (4,409,763)
(3,774,399) (7,532,602) (5,147,853) (7,501,259) (12,118,702) 9,158,123
42,250 90,083 21,253 31,518 136,559 (10,545,233)
- - - - - 5,024
16,076,947 5,769,410 7,182,546 155,546 2,249,752 4,992,159
$ 12,659,330 $ 5,310,457 $ 5,393,267 $ 538,203 $ (5,412,315) $ 2,727,737
8.7% 9.2% 9.5% 9.4% 8.3% 8.8%
145
City of La Porte, Texas
Assessed Value and Estimated Actual Value of Taxable Property
Last Ten Fiscal Years
(unaudited)
Fiscal
Year Estimated Market Value Less: Total Taxable
Ended Real Personal Tax Exempt Assessed
September 30 Property Property Property Value
2001 1,346,611,820 295,183,470 219,056,080 1,422,739,210
2002 1,461,368,400 295,213,550 251,950,970 1,504,630,980
2003 1,498,049,850 270,257,240 255,642,570 1,512,664,520
2004 1,546,560,410 279,687,470 265,840,970 1,560,406,910
2005 1,601,433,200 311,721,280 278,265,540 1,634,888,940
2006 1, 777, 351, 563 325, 549, 640 407, 734, 605 1,695,166,598
2007 1,861,821,075 350,191,031 419,779,423 1,792,232,683
2008 2,007,113,146 372,331,715 428,955,092 1,950,489,769
2009 2,237,095,319 469,916,389 502,091,647 2,204,920,061
2010 2,261,907,760 582,963,159 514,944,192 2,329,926,727
Source: City of La Porte records and the Harris County Appraisal District
146
Total Assessed
Direct Total Value as a
Tax Taxable Percentage of
Rate Value Actual Value
0.71 1,422,739,210 100.00%
0.71 1,504,630,980 100.00%
0.71 1,512,664,520 100.00%
0.71 1,560,406,910 100.00%
0.71 1,634,888,940 100.00%
0.71 1,695,166,598 100.00%
0.71 1,792,232,683 100.00%
0.71 1,950,489,769 100.00%
0.71 2, 204, 920, 061 100.00%
0.71 2, 329, 926, 727 100.00%
147
City of La Porte, Texas
Property Tax Rates
Direct and Overlapping Governments
(Per $100 of Assessed Value)
Last Ten Fiscal Years
(Unaudited)
City of La Porte 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 Educat 2
2001 0.570 0.140 0.710 0.047600 0.38390 0.01830 0.006300
2002 0.570 0.140 0.710 0.047600 0.38390 0.01830 0.006300
2003 0.575 0.135 0.710 0.041740 0.38810 0.01990 0.006300
2004 0.575 0.135 0.710 0.033180 0.39990 0.01670 0.006300
2005 0.611 0.099 0.710 0.033220 0.39986 0.01474 0.006290
2006 0.611 0.099 0.710 0.032410 0.40239 0.01302 0.006290
2007 0.612 0.098 0.710 0.031060 0.39239 0.01437 0.005853
2008 0.619 0.091 0.710 0.030860 0.38923 0.01773 0.005840
2009 0.619 0.091 0.710 0.029220 0.39224 0.01636 0.006050
2010 0.619 0.091 0.710 0.029230 0.38805 0.02054 0.006581
Source: 1 City of La Porte records
2 Office of Harris County
3 Office of La Porte Independence School District
° Office of San Jacinto Jr. College District
148
Overlapping Rates
San Jacinto
Hospital La Porte Jr. College
District 2 I.S.D. 3 District ° Total
0.19020 1.630 0.130700 3.11700
0.19020 1.630 0.130700 3.11700
0.19020 1.680 0.130700 3.16694
0.19020 1.734 0.139100 3.22938
0.19216 1.734 0.145365 3.23564
0.19216 1.635 0.145365 3.13664
0.19216 1.305 0.145365 2.79620
0.19216 1.325 0.163411 2.83423
0.19216 1.325 0.170800 2.84183
0.19216 1.325 0.176277 2.84784
149
City of La Porte, Texas
Principal Property Tax Payers
Current Year and Nine Years Ago
(Unaudited)
2010 2001
Percentage Percentage
of Total City of Total City
Taxable Taxable Taxable Taxable
Assessed Assessed Assessed Assessed
Taxpayer Value Value Taxpayer Value Value
Conoco Phillips Co. $ 63,702,828 2.89% Conoco Inc $ 47,187,810 3.53%
Oxy Vinyls LP 49,177,149 2.23% PPG Industries 44,908,720 3.36%
Equistar Chemicals LP 48,220,926 2.19% Equistar Chemicals, LP 44,664,700 3.34%
Granite Underwood Dist Ctr LP 46,366,214 2.10% Houston Light & Power 43,570,950 3.26%
Wilson Supply 44,964,903 2.04% Solvay Polymers Corp. 37,068,510 2.77%
Underwood Distribution Ctr 38,895,000 1.76% Occidental Electrochemical 31,648,750 2.37%
Ineos USA LLC 38,042,280 1.73% Fina Oil & Chem. Co. 25,156,220 1.88%
Dow Chemical 28,930,683 1.31% Dow Chemicals 20,688,570 1.55%
PPG Industries Inc. 26,768,472 1.21% Oxy Vinyls LP 19,890,480 1.49%
Total Petrochemicals 24,500,733 1.11% Dupont Dow Elastomers 11,860,110 0.89%
$ 409,569,188 18.58% $ 326,644,820 24.43%
Source: City of La Porte Tax Department
150
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
2001 10,026,496 9,780,571 97.55% 218,014 9,998,585 99.72%
2002 10,786,185 10,463,515 97.01% 308,219 10,771,734 99.87%
2003 10,826,184 10,491,257 96.91% 304,547 10,795,804 99.72%
2004 11,178,351 10,829,202 96.88% 300,527 11,129,729 99.57%
2005 11,669,473 11,334,572 97.13% 271,368 11,605,940 99.46%
2006 12,080,351 11,755,121 97.31% 265,023 12,020,144 99.50%
2007 12,703,850 12,418,873 97.76% 234,079 12,652,952 99.60%
2008 13,857,467 13,476,872 97.25% 236,325 13,713,197 98.96%
2009 15,654,937 15,377,149 98.23% 196,930 15,574,079 99.48%
2010 16,542,483 16,309,818 98.59% - 16,309,818 98.59%
Source: City of La Porte Tax Department
151
City of La Porte, Texas
Ratio of Outstanding Debt by Type
Last Ten Fiscal Years
(unaudited)
Governmental Activities
General Certificates
Fiscal Obligation of Other
Year Bonds Obligation Obligations
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
2009 10,870,000 22,445,000 4,320,000
2010 11,665,000 26,350,000 4,050,000
Source: Details regarding the City's outstanding debt can be
found in the notes to the financial statements.
See Demographic and Economic Statistics for personal
income and population data.
152
Business -Type Activities
General
Water and Obligation Total Percentage
Sewer Revenue Refunding Other Primary of Personal Per
Bonds Bonds Obligations Government Income Capita
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
- - 6,442,500 44,077,500 N/A 1,241
- - 5,660,000 47,725,000 N/A 1,298
153
City of La Porte, Texas
Ratio of General Bonded Debt Outstanding
Last Ten Fiscal Years
(unaudited)
General Bonded Debt Outstanding
Percentage of
General Certificates Less: Amounts Actual Taxable
Fiscal Obligation of Available in Debt Value of Per
Year Bonds Obligation Service Fund Total Property 1 Capita 2
2001 12,595,000 - 1,303,068 11,291,932 0.79% 349
2002 16,310,000 - 1,589,610 14,720,390 0.98% 447
2003 12,170,000 2,550,000 1,797,213 12,922,787 0.85% 382
2004 10,830,000 2,400,000 1,584,497 11,645,503 0.75% 345
2005 17,325,000 11,050,000 1,704,531 26,670,469 1.63% 772
2006 17,740,000 16,405,000 1,813,887 32,331,113 1.91% 928
2007 16,930,000 24,055,000 1,925,756 39,059,244 2.18% 1,105
2008 16,065,000 23,265,000 1,999,842 37,330,158 1.91% 1,051
2009 15,190,000 22,445,000 2,151,483 35,483,517 1.61% 965
2010 15,715,000 26,350,000 3,117,688 38,947,312 1.67% 1,152
Note: Details regarding the City's outstanding debt can be found in the
notes to the financial statements.
Per Capita provided from the 2010 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.
154
City of La Porte, Texas
Direct and Overlapping Governmental Activities Debt
As of September 30, 2010
(unaudited)
Estimated
Estimated Share of
Debt Percentage Overlapping
Governmental Unit Outstanding Applicable Debt
Debt repaid with property taxes
Harris County $ 2,160,291,628 0.82% $ 17,714,391
Harris County Department of Education 8,160,000 0.82% 66,912
Harris County Flood Control District 102,539,024 0.82% 840,820
Harris County Toll Road - Toll Road Bonds (a) - 0.82% -
La Porte ISD 228,325,000 39.10% 89,275,075
Port of Houston Authority 763,619,397 0.82% 6,261,679
San Jacinto Jr. College District 268,105,000 5.95% 15,952,248
Subtotal, overlapping debt $ 3,531,040,049 $ 130,111,125
City of La Porte direct debt 43,640,000 100% $ 43,640,000
Total direct and overlapping debt $ 173,751,125
(a) Harris County Toll Road debt is considered self- supporting.
Source: Texas Municipal Reports
Percentages are based on total property values.
155
City of La Porte, Texas
Legal Debt Margin Information
Last Ten Fiscal Years
(unaudited)
Fiscal Year
2001 2002 2003 2004 2005
Debt limit $ 35,568,480 $ 37,615,775 $ 37,816,613 $ 39,010,173 $ 40,872,224
Total net debt applicable to limit 11,291,932 14,720,390 10,372,787 9,245,503 15,620,369
Legal debt margin $ 24,276,548 $ 22,895,385 $ 27,443,826 $ 29,764,670 $ 25,251,855
Total net debt applicable to the limit
as a percentage of debt limit
Note: The City has no general obligation legal debt limit other than a ceiling on the tax rate as specified by the State of Texas.
The precribed maximum is $2.50 per $100 of the appraised value
156
Fiscal Year
2006 2007 2008 2009 2010
$ 42,379,165 $ 44,805,817 $ 48,762,244 $ 55,123,000 $ 58,248,168
15,926,113 18,855,756 18,064,842 15,190,000 18,832,688
$ 26,453,052 $ 25,950,061 $ 30,697,402 $ 39,933,000 $ 39,415,480
Legal Debt Margin Calculation for Fiscal Year 2009
Assessed value $ 2,329,926,727
Add back: exempt property $ 514,944,192
Total assessed value $ 2,844,870,919
Debt limit (2.5% of total assessed value) 58,248,168
Debt applicable to limit:
General obligation bonds $ 15,715,000
Less: Amount set aside for repayment of
general obligation debt 3,117,688
Total net debt applicable to limit 18,832,688
Legal debt margin $ 39,415,480
157
City of La Porte, Texas
Pledged- Revenue Coverage
Last Ten Fiscal Years
(unaudited)
Water and Sewer System Revenue Bonds
Utility Less: Net
Fiscal Service Operating Available Debt Service Times
Year Charges 1 Expenses 2 Revenue Principal Interest Coverage
2001 6,094,735 4,347,508 1,747,227 660,000 168,781 2.11
2002 5,988,595 4,814,158 1,174,437 625,000 132,418 1.55
2003 5,837,448 5,025,158 812,290 580,000 115,948 1.17
2004 5,836,221 5,125,635 710,586 580,000 71,293 1.09
2005 6,193,451 5,259,943 933,508 565,000 43,161 1.53
2006 7,438,016 5,389,783 2,048,233 270,000 111,712 5.37
2007 6,722,774 5,681,548 1,041,226 262,500 106,828 2.82
2008 8,916,777 5,653,497 3,263,280 387,500 91,605 6.81
2009 7,920,114 5,743,725 2,176,389 387,500 76,350 4.69
2010 7,822,294 6,514,343 1,307,951 525,000 215,458 1.77
Note:
1. Includes interest income.
2. Excludes depreciation.
158
City of La Porte, Texas
Demographic and Economic Statistics
Last Ten Calendar Years
(Unaudited)
Personal Per
Income Capita
(thousands Personal Median School Unemployment
Year Population of dollars) Income Age Enrollment Rate
2000 31,880 675,155 21,178 33 7,645 4.2%
2001 32,356 N/A N/A N/A 7,772 5.3%
2002 32,910 N/A N/A N/A 7,732 6.2%
2003 33,789 N/A N/A N/A 7,648 6.6%
2004 33,712 N/A N/A N/A 7,629 5.7%
2005 34,538 N/A N/A N/A 7,808 5.3%
2006 34,825 N/A N/A N/A 7,786 4.7%
2007 35,362 N/A N/A N/A 7,889 4.4%
2008 35,518 N/A N/A N/A 7,940 5.2%
2009 36,779 N/A N/A N/A 7,830 9.4%
2010 33,800 N/A N/A 33 7,781 8.2%
Sources:
Estimated population provided by the 2010 Census
Personal income, per capita personal income is currently unavailable
Median age provided by the 2010 Census
School enrollment provided by LPISD.
Unemployment rates provided from the Bureau of Labor Statistics.
159
City of La Porte, Texas
Principal Employers
Current Year and Twelve Years Ago
(unaudited)
2010* 1998 **
Percentage Percentage
of Total City of Total City
Employer Employees Rank Employment Employer Employees Rank Employment
La Porte ISD 1,154 1 4.20% Solvay Polymer 1,100 1 N/A
Rockwood Service Corp. 700 2 2.55% San Jacinto College 1,003 2 N/A
Longview Inspection Corp. 664 3 2.41% La Porte ISD 987 3 N/A
Quest Tru TEC 636 4 2.31% E.I. Dupont 870 4 N/A
Oxy Vinyls, LP 530 5 1.93% Millenium (formerly Quantum) 736 5 N/A
City of La Porte 380 6 1.38% Akzo Nobel 500 6 N/A
lneos 350 7 1.27% Hickham Industries 270 7 N/A
Equistar Chemicals, LP 334 8 1.21% Dow Chemical 250 8 N/A
Sulzer Hickham 330 9 1.20% Fine Oil & Chemical 225 9 N/A
Air Liquide 170 10 0.62% Geon Company 180 10 N/A
Total 5,248 19.08% 6,121
Source:
* City Economic Development Office
**City of La Porte Official Statement, Series 1998 General Obligation Bonds
Employment data for 2001 was not available, so the data from 1998 was used as a comparison.
Total employment figures for 1998 were not available, so therefore the percentage of total city employment could not be calculated.
160
... ....... ...............................
City of La Porte, Texas
Full -Time Equivalent City Government Employees by Function /Program
Last Six Fiscal Years
(unaudited)
Fiscal Year
Function /Program 2005 2006 2007 2008 2009 2010
General Government 76 76 80 79 78 79
Public Safety 135 138 147 142 143 144
Public Works 32 32 32 32 32 32
Health & Sanitation 22 21 21 22 22 22
Culture and recreation 47 45 44 45 45 46
Water Services 26 27 25 25 25 25
Sewer Services 20 20 20 20 20 20
Golf Course 13 13 12 12 12 12
Sylvan Beach Convention Ctr. 3 3 4 4 4 0
Source:
City Budget Office
Note: Data not available for fiscal years prior to 2005.
161
City of La Porte, Texas
Operating Indicators by Function /Program
Last Ten Fiscal Years
(unaudited)
Fiscal Year
2001 2002 2003 2004 2005
Function /Program
Police
Physical arrests 2,114 2,193 2,271 2,000 2,330
Tickets processed 9,489 9,298 9,605 6,593 6,877
Fire
Number of calls answered 584 610 976 1,343 1,747
Inspections N/A N/A N/A 500 500
Highways and streets
Street resurfacing (linear feet) 42,000 26,200 27,800 33,800 22,975
Potholes repaired 232 271 413 524 531
Sanitation
Cu. Yds. Garbage collected 28,025 28,655 28,243 29,675 30,022
Cu. Yds. Trash collected 48,049 52,796 50,111 54,875 49,140
Culture and recreation
Fitness center admissions 68,668 73,764 76,311 84,353 81,868
Water
Number of water meters 10,699 10,957 10,987 11,189 11,391
Average daily water consumption (million gallons) 4.1 3.1 4.0 3.8 4.1
Water mains breaks 505 491 440 299 437
Wastewater
Average daily sewer treatment 3.9 3.4 3.9 4.0 3.5
(thousands of gallons)
Golf Course
Number of Paid Rounds Played 43,063 42,540 38,594 38,901 34,961
Source: City Departments
Notes: N/A - Data not available
162
Fiscal Year
2006 2007 2008 2009 2010
2,465 2,489 2,642 2,737 2,538
8,212 9,652 15,352 16,098 16,603
2,028 1,603 1,799 1,409 1,559
N/A 600 320 600 690
27,835 22,100 19,887 23,559 38,365
321 1,260 996 1,012 1,236
30,795 29,279 29,282 29,894 29,642
49,140 52,250 48,136 78,900 48,368
70,558 62,828 62,245 53,401 78,118
11,592 11,743 11,913 11,968 12,015
3.9 3.8 4.0 4.0 3.9
483 467 455 498 417
2.8 3.9 3.2 2.8 3.7
32,731 32,433 35,839 36,009 31,271
163
City of La Porte, Texas
Capital Asset Statistics by Function /Program
Last Ten Fiscal Years
(unaudited)
Fiscal Year
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Function /Program
Public Safety
Police Station 1 1 1 1 1 1 1 1 1 1
Police Officers 71 71 72 72 72 73 74 74 74 75
Reserve Officers 3 5 5 5 5 5 6 2 1 2
Fire Stations 4 4 4 4 4 4 4 4 4 4
Sanitation
Collection trucks 13 13 14 14 14 14 14 14 14 14
Highways and streets
Streets (miles) 160 164 164 164 211 217 211 295 126 126
Streetlights 2,072 2,109 1,533 1,665 2,192 1,803 1,804 2,400 2,387 2,387
Traffic signals 3 3 3 3 3 3 3 3 7 5
Culture and recreation
Parks acreage 462 463 463 463 337 339 347 347 356 356
Parks 18 18 19 19 21 21 22 22 21 21
Swimming pools 6 6 6 6 6 6 6 6 6 5
Recreation Centers 1 1 1 1 1 1 1 1 1 4
Senior Center 1 1 1 1 1 1 1 1 1 1
Water and Sewer
Water Mains (miles) 229 231 231 231 165 168 176 178 180 180
Fire Hydrants 1,800 1,800 1,800 1,800 1,800 1,800 1,076 1,161 1,168 1,179
Sanitary Sewers (miles) 185 186 187 187 187 187 189 189 191 191
Storm Sewers (miles) 88 88 89 89 89 92 92 92 92 95
Source: City Departments
164
4
CITY OF LA PORTE
TRAVEL EXPENSE FORM
EMPLOYEE NAME: Louis Rigby DEPARTURE DATE:
TIME:
DEPARTMENT: RETURN DATE:
TIME:
DIVISION: •
Purpose /Destination of Travel: February Mileage Reimbursement
A. TRANSPORTATION Check if item was prepaid /P -Card, list amount and deduct at the bottom of the page.
1 Air Travel ❑
2 Gasoline (For City Auto Only) ❑
3 Taxi ❑ 0.00
4 Car Rental ❑
Totals
5 Mileage (For Private Auto Only) 157.52 0.510 80.34
(To and From Airport) Miles Total
6 Parking @ = 0.00
Days Rate Total
B. LODGING (All Hotel charges require an itemized bill)
@ = 0.00
Days Rate Total
Check here if lodging was prepaid /P -Card, list amount and deduct at the bottom of page.
C. MEALS (MONEY RECEIVED AT PER DIEM RATE DOES NOT REQUIRE RECEIPTS)
(Did not receive any funds prior) Amount Received on Request 0.00
NOTE: Meals should not be charged on P -Cards
D. REGISTRATION
0.00
Total
Check here if registration was prepaid /P -Card, list amount and deduct at the bottom of page.
E. OTHERS Phone Calls
(Personal phone calls are limited to $5.00 per day)
All others - Must itemize and attach receipts Total
0.00 0.00
Total
Gross Total: 80.34
Less amount charged to City P -Card 0.00
Less amount prepaid items 0.00
Less amount of Cash Advance 0.00
Balance due Employee if (Credit) (30.34)
Balance due City of La Porte if Debit
THIS REPRESENTS THE TRUE AND ACTUAL TRAVEL EXPENSES OF THE AFO ° E E TIONED
TRAVEL EXPENSE FORM. • "`
Em Signature is required to complete this Form �/
EMPLOYEE SIGNATURE •
DATE: 17- Mar -11
Revised 01/09 Mileage Rate DIRECTOR SIGNATURE
MILEAGE REPORT FOR EMPLOYEE: Louis Rigby
DATE PURPOSE OF MILEAGE TOTAL MILEAGE
1 2/3/20111 (City Hall 1 1 5.66 1
2/4/20111 'City Hall 1 1 5.66
2/4/20111 1HYC New Member Reception 1 1 3.8
2/8/20111 (LPISD School Board Proclamation 1 6.14
2/8/20111 'Alliance Transportation Committee Mtg 1 1 8.26 1
1 2/10/20111 'City Hall - Grant Documents 1 1 5.66
1 2/11/20111 'Jennie Riley Center - Soul Food Cookoff 1 ( 9.18 1
1 2/14/20111 'City Hall - Mike Shanahan 1 1 5.66
1 2/14/20111 'LPISD - Chinese Student Luncheon 1 1 6.14
1 2/14/20111 [City Hall - Bob Mitchell BAHEP 1 1 5.66
1 2/14/20111 (City Hall - City Council 1 1 5.66 1
12/16/20111 'Baytran Luncheon - Cullen's 1 1 20
1 2/17/20111 'Police Recognition Ceremony 1 1 10.16
1 2/17/20111 'City Hall - Golf Tournament Mtg 1 1 5.66 1
1 2/21/20111 'City Hall 1 ' 5.66
1 2/23/20111 'City Hall - Grant Documents 1 1 5.66 1
1 2/24/20111 'Deer Park State of the City 1 ' 26.34 1
1 2/25/20111 (Barbour's Cut Chamber Casino Night 1 1 10 1
1 2/28/20111 'City Hall - City Council 1 ' 5.66
TOTAL MILEAGE I 157.52
2011 Mileage Rate = .51 per mile
Page 1 of 1
AMOUNT DUE TO EMPLOYEE: 80.34
Form is available on cw share-drive /Forms /Finance /Forms /Travel
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