HomeMy WebLinkAboutCAFR REPORT 9/30/01City of Port Arthur, Texas
Comprehensive Annual Financial Report
For the Year Ended September 30, 2001
Prepared by the Finance Department
Rebecca Underhill, CPA
Director
Deborah Echols, CPA
Assistant Finance Director
Helen Williams
Grants Accountant
Jennifer Abraham
Finance Administrative Aide
CITY OF PORT ARTHUR, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED SEPTEMBER 30, 2001
-TABLE OF CONTENTS-
EXHIBIT
INTRODUCTORY SECTION
Title Page
Table of Contents
Letter of Transmittal
Certificate of Achievement
List of City Officials
Organization Chart
FINANCIAL SECTION
Independent Auditor's Report
Combined Statements- Overview ("Liftable" General
Purpose Financial Statements)
Combined Balance Sheet ~ All Fund Types, Account Groups and Discretely
Presented Component Units
Combined Statement of Revenues, Expenditures and Changes in Fund Balances
Governmental Fund Types, Expendable Trust Funds and Discretely
Presented Component Units
Combined Statement of Revenues, Expenditures and
Changes in Fund Balance - Budget (GAAP Basis) and Actual
Budgeted Governmental Fund Types
Combined Statement of Revenues, Expenses and Changes
in Fund Equity - All Proprietary Fund Types and Discretely
Presented Component Units
Combined Statement of Cash Flows - All Proprietary Fund Types and Discretely
Presented Component Units
Notes to the Financial Statements
Supplementary Information
Combining Financial Statements
General Fund:
Balance Sheet
Statement of Revenues, Expenditures and Changes in Fund Balance
Budget (GAAP Basis and Actual)
A-1
A-2
A-3
A-4
A-5
B-I
B-2
PAGE
NUMBER
xi
xii
xiii
10
11
13
35
36
CITY OF PORT ARTHUR, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED SEPTEMBER 30, 200'1
-TABLE OF CONTENTS-
EXHIBIT
Special Revenue Funds:
Combining Balance Sheet
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Schedule of Revenues and Expenditures - Budget (GAAP Basis) and Actual for Budgeted Special Revenue Funds
Debt Service Fund:
Balance Sheet
Statement of Revenues, Expenditures and Changes In Fund Balance - Budget (GAAP Basis) and Actual
Capital Projects Funds:
Balance Sheet
Statement of Revenues, Expenditures and Changes in Fund Balance
Proprietary Funds - Enterprise Funds:
Combining Balance Sheet
Combining Statement of Revenues, Expenses and Changes in Fund Equity
Combining Statement of Cash Flows
Schedule of Revenues and Expenses Budget
and Actual (Budget Basis) - Water and Sewer Fund
Schedule of Revenues and Expenses Budget
and Actual (Budget Basis) - Solid Waste Fund
Schedule of Revenues and Expenses Budget
and Actual (Budget Basis) - Transit System Fund
Proprietary Funds - Internal Service Funds:
Combining Balance Sheet
C-1
C-2
C-3
D-1
D-2
E-1
E-2
F-1
F-2
F-3
F-4
F~5
F-6
G-1
PAGE
NUMBER
40
42
44
47
48
51
52
55
56
57
58
59
60
63
CITY OF PORT ARTHUR, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED SEPTEMBER 30, 2001
-TABLE OF CONTENTS-
EXHIBIT
Combining Statement of Revenues, Expenses and Changes in Fund Equity G-2
Combining Statement of Cash Flows G-3
Schedule of Revenues and Expenses Budget
and Actual (Budget Basis) ~ Equipment Services Fund G-4
Schedule of Revenues and Expenses Budget
and Actual (Budget Basis) - Employee Benefits Fund G-5
Schedule of Revenues and Expenses Budget
and Actual (Budget Basis) - General Liability Fund
Schedule of Revenues and Expenses Budget
and Actual (Budget Basis) - Equipment Replacement Fund
Fiduciary Funds - Trust and Agency Funds
Combining Balance Sheet H-1
Statement of Revenues, Expenditures and Changes in Fund Balance H-2
Library Expendable Trust Fund
General Fixed Assets Account Group:
Schedule of General Fixed Assets - By Source I-1
Schedule of General Fixed Assets -
By Function and Activity I-2
Schedule of Changes in General Fixed Assets -
By Function and Activity 1-3
General Long-Term Debt Account Group:
Statement of General Long-Term Debt J-1
Discretely Presented Component Units
Balance Sheet K-1
Port Arthur Economic Development Corporation Statement
of Revenues, Expenditures, and Changes in Fund Balance K-2
Pleasure Island Commission
Statement of Revenues, Expenditures, and Changes in Retained Earnings K-3
PAGE
NUMBER
64
65
66
67
68
69
73
74
77
78
79
83
87
88
89
CITY OF PORT ARTHUR, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED SEPTEMBER 30, 2001
-TABLE OF CONTENTS-
Statement of Cash Flows
STATISTICAL SECTION (unaudited)
General Governmental Expenditures by Function
General Governmental Revenues by Source
Property Tax Levies and Collections
Assessed and Estimated Actual Value of Taxable Property
Property Tax Rates - Direct and Overlapping Governments
Special Assessment Collections
Ratio of Net Long-Term Debt to Assessed Value and Net Long-Term Debt per Capita
Computation of Direct and Overlapping Debt
Computation of Debt Margin
Ratio of Annual Debt Service Expenditures for
General Bonded Debt to Total General Expenditures
Ten Major Taxpayers
Construction Permits and Values Last Ten Years
Demographic Statistics
Miscellaneous Statistical Data
EXHIBIT
K-4
Table 1
Table 2
Table 3
Table 4
Table 5
Table 6
Table 7
Table 8
Table 9
Table 10
Table 11
Table 12
Table 13
Table 14
PAGE
NUMBER
9O
92
93
95
96
97
98
99
100
101
102
103
104
105
106
January 11,2002
To the Honorable Mayor, Members of City Council and
Citizens of the City of Port Arthur, Texas
I am pleased to submit the comprehensive annual financial report (CAFR) of the City of Port Arthur,
Texas (City) for the year ended September 30, 2001. This report was prepared by the Finance
Department, in accordance with the City Charter, and in compliance with State law, to provide citizens,
investors, grantor agencies and other interested parties with reliable financial information about the
City.
Responsibility for both the accuracy of the data and the completeness and fairness of the presentation,
including all disclosures, rests with the City's administration. To the best of our knowledge and belief,
the enclosed data are accurate in all material respects, and are reported in a manner that presents fairly
the financial position and results of operations of the various funds, account groups and component
units of the City. All disclosures necessary to enable the reader to gain an understanding of the City of
Port Arthur's financial activities have been included.
The comprehensive annual financial report is presented in three sections: introductory, financial and
statistical. The introductory section, which is unaudited, includes this letter of transmittal, an
organizational chart and a list of the City's principal elected and appointed officials. The financial
section includes the general purpose financial statements, accompanying footnotes, the combining and
individual fund statements and schedules, as well as the report of the independent auditor on these
financial statements and schedules. The statistical section, which is unaudited, includes selected
financial and demographic information, in most cases presented on a multi-year basis.
The City is required to undergo an annual single audit in conformity with the provisions of the Single
Audit Act Amendments of 1996 and the U.S. Office of Management and Budget's Circular A-133,
Audits of State, Local Governments, and Non-Profit Organizations. Information related to this single
audit, including a schedule of expenditures of federal awards, the independent auditor's reports on
internal controls and compliance with applicable laws and regulations, and a schedule of findings and
questioned costs are included in a separately issued single audit report.
The financial report of the City includes all of the funds and account groups of the City of Port Arthur,
as well as all of its component units. Component units are legally separate entities for which the City is
financially accountable. The financial data of the Port Arthur Economic Development Corporation, the
Pleasure Island Commission, and the Port Arthur Municipal Nonprofit Corporation have been included
with that of the City. These organizations, although legally separate entities, are in substance, part of
the City's operations.
The City provides a full range of municipal services including police and fire protection, solid ~vaste
removal and disposal, water and sanitary sewer, the construction of streets, drainage and other
infrastructure, recreational activities, library and other cultural activities.
Governmental Structure
The City, incorporated May 30, 1898, is located in Southeastern Texas, on the Gulf Coast. Bordered by
Lake Sabine, an inland bay, the City has access to the Gulf of Mexico through Sabine Pass. Port Arthur
is spread over 87.6 squa. re miles and has a population of 57,755. The City has all the pow_ers granted to
a home rule city by Texas ]aw including: thc power to levy tax on real and personal property within its
boundaries, the right to extend its boundaries by annexation, and the power to block annexation or
incorporation in areas considered within its extra-territorial jurisdiction.
The City has operated under the council-manager form of government since March 8, 1932. Policy
making and legislative authority rests with the City Council, which consists of a mayor and an eight-
member council. Two council members, (with two year terms) and the mayor (with a three year term)
are elected at large. Six council members are elected to three-year staggered terms; two from combined
districts, and four council members from their respective districts. The City Council is responsible,
among other things, for passing ordinances, adopting the budget, appointing committees and hiring the
City's manager, attorney, and secretary. 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 the City's departments.
Local Economic Condition and Outlook
Southeast Texas is one of the principal oil refining and petro-chemical manufacturing areas in the world
and the City's economy is tightly tied to these industries. The Spindletop gusher blew in on January 10,
1901 at Gladys City in Beaumont, north of Port Arthur. This event drove the development of oil
refining in Port Arthur. For 100 years many of the country's major oil and chemical refining companies
have maintained major facilities here. The local facilities of ATOFINA, Motiva, Huntsman
Corporation, Chevron Chemical Corporation, BASF and Premcor (formerly Clark) Refining currently
represent over $2.7 billion in property value. For many years, these industries have provided a steady
employment base, and in recent years, a significant infusion of capital has spurred enormous economic
activity in Port Arthur.
ATOFINA, in joint venture with BASF, has recently completed an $850 million project, the world's
largest liquids steam cracker, at ATOF1NA's Port Arthur refinery. This project provided over 2,000
construction jobs and provided 150 permanent jobs. Shell Oil has entered into partnership with
ATOFINA and BASF to build a $200 million butadiene unit at the cracker site. This project is
expected to provide 900 construction jobs and another 65 permanent positions. Construction on this
project has begun, and with completion expected in 2003.
In 2001, Premcor, Inc. completed an $800 million plant modernization and expansion project. This
project more than doubled the facilities' daily production capacity and provided 1,000 construction
jobs, and 50 added permanent positions at the Port Arthur refinery.
vi
In 2001 other developments blossomed in Port Arthur. Two new hotels opened, and a third is in the
planning phase. Construction began at the Park Central Crossing Retail Complex. Lowe's Home
Improvement Center opened in late summer, and the Wal-Mart Super Center is expected to open in mid
2002. As a part of this complex, another major retailer is expected to build, as well as several smaller
retail stores and restaurants. Construction has begun on new facilities for an automobile dealership
near this site. As 2001 came to a close, Wal-Mart announced a second Super Center to be built in Port
Arthur in 2002.
The Port Arthur Economic Development Corporation is in the planning stage of a 300-acre business
park. The park will provide space for industrial support companies. The entire cost of this project is
expected to be $8 million and be complete within another year.
Department Focus
The goal of the Port Arthur Police Department is to continue to strengthen the bonds between the
department and the community by working together to reduce crime and the fear of crime in the City.
The department has been on the forefront of Community Policing. There are 17 neighborhood action
groups in the City. The work of these community volunteers coupled with the commitment of the City
Council and Administration, and the dedication of the employees of the Police Department, the overall
crime rate in the City continues to fall. In 2001, the Police Department made strides in modernization,
with a new dispatch center utilizing state of the art radio and computer technology. These
improvements are designed to enhance officer's safety and efficiency.
Financial Information
Management of the City is responsible for establishing and maintaining an internal control structure
designed to ensure that the assets of the City are protected from loss, theft, or misuse and to ensure that
adequate accounting data are compiled to allow for the preparation of the financial statements in
conformity with generally accepted accounting principles. The internal control structure is designed to
provide reasonable, but not absolute assurance that these objectives are being met. The concept of
reasonable assurance is that:
*The cost of a control should not exceed the benefits likely to be derived; and
*The valuation of costs and benefits requires estimates and judgments by management
This internal control structure is subject to periodic evaluation by management of the City. We believe
that the City's internal accounting controls adequately safeguard assets and provide reasonable
assurance of proper recording of financial transactions.
In addition, the City maintains extensive budgetary controls. The objective of these controls is to
ensure compliance with legal provisions embodied in the annual appropriated budget approved by City
Council. Activities of the general fund, certain special revenue funds, the enterprise funds, and internal
service funds are included in the annual appropriated budget. Project-length budgets are prepared for
the capital projects fund. The level of budgetary control (i.e. the level at which expenditures cannot
legally exceed the appropriated amount) is the department level within each fund. The City also
maintains an encumbrance accounting system as one method of maintaining budgetary control. As
demonstrated by the statements and schedules included in the financial section of this report, the City
continues to meet its responsibility for sound financial management. All dollar amounts presented in
this section of this letter are expressed in thousands.
vii
General Fund Operations
Revenues and Expenditures. The following schedules summarize the activity of the General Fund
revenues and operating transfers in for the years ended September 30, 2001 and 2000.
Amount of
Revenues and 2001 Percent 2000 Increase
Transfers In Amount of Total Amount (Decrease)
Property Taxes $ 4,896 14.8 % $ 5,869 $ (973)
Gross Receipts Taxes 3,101 9.4 2,527 574
Sales Tax 4,355 13.2 4,071 284
Industrial Payments 12,503 37.9 12,518 '(15)
Other Revenues 3,687 11.2 4,279 (592)
Transfers in 4,436 13.5 4,023 413
$ 32,978 100.0%$ 33,287 $ (309)
Total revenues (including Transfers) were nearly $300,000 less than 2000. This was due to an
increased allocation of property taxes to the debt service fund, and decreases in intergovernmental
revenue and interest.
The schedule below presents a summary of General Fund expenditures and transfers out for the years
ended September 30, 2001 and 2000:
Amount of
Expenditures and 2001 Percent 2000 Increase
Transfers Out Amount of Total Amount (Decrease)
General Government $ 7,813 24.6 % $ 6,965 $ 863
Public Safety 16,480 51.9 15,875 605
Health and welfare 524 1.7 560 (36)
Public works 5,670 17.8 5,750 (80)
Transfers out 1,293 4.0 2,611 (1,333)
$ 31,780 100.0% $ 31,761 $ 19
Overall, General Fund expenditures exceed 2000 by $19,000. This increase is due to increases in
salaries and other operating costs. These increases were offset in part by decreases in transfers to other
funds.
Fund Balances. The fund balance of the general fund increased by $1.2 million to $10.1 million. The
fund balance exceeds the Council adopted, financial policy guidelines. That policy calls for a fund
balance equal to 60 days of operations plus $1.5 million to deal with unforeseen emergencies. Based
on fiscal 2001 results, 60 days of operations would be $5.1 million setting the required balance at $6.6
million. This fund balance provides funding of the operating deficit in water and sewer operations
described below.
viii
Enterprise Fund Operations
The City's enterprise fund operations include three separate and distinct activities: a water and sewer
system, a solid waste collection and disposal system, and a transportation system.
Water andsewer operation. The water and sewer utility has been the target of many of the City's major
initiatives because of the age and condition of the system.
Operating revenues for 2001 were $11.6 million, over $800,000 less than fiscal 2000. A rainy summer
resulted in a decreased demand for water. This coupled with a decrease in industrial consumption
decreased the revenue in this fund. At the same time, operating expenditures increased $1.4 million.
Dramatic increases in the cost of electricity and chemicals impacted this fund enormously. This
combination resulted in. an operating income of $300,000. After providing for debt servic_e, the net loss
for the fund was $3.4 million, and the retained earnings ended the year with a deficit of $9.8 million.
Solid waste operations. Revenues of $ 4.9 million, were $400,000 more than 2000. This was due to
increased activity at the City landfill. Operating expenditures increased to $4.3 million, $100 thousand
more than 2000. The fund finished the year with a deficit of $3.5 million in retained earnings.
Transit operations. The transit operation will never be self supporting. This activity is subsidized by
Federal and State grants, and transfers from the General Fund. The 2001 operating revenues were
$40,000 higher than 2000, and expenses exceeded 2000 by $100,000.
Debt Administration
On October 16, 2001, the City issued Series 2001 General Obligation Refunding Bonds in the amount
of $10.55 million. These bonds refunded the outstanding bonds of the Park Central Municipal Utility
District, which was dissolved on September 30, 2001. Moody's Investors Service rated the issue "A2".
Standard and Poor's upgraded their rating to "A" from "A-". At September 30, 2001, the total general
obligation debt of the City was $ 36.64 million.
Cash Management Policies and Practices
Cash, temporarily idle during the year was invested in obligations of the U.S. Treasury and TexPool (a
local government investment pool, administered by the Texas State Comptroller of Public Accounts).
The maturities of the investments range from 30 days to 5 years. The City earned interest revenue of
$1,317,536. The City's investment policy is to minimize credit and market risks while maintaining a
competitive yield on its portfolio. All deposits are either insured by federal depository insurance or
collateralized.
Risk Management
The City maintains a limited risk retention program for worker's compensation and employee health
benefits. As part of this program, resources are transferred to the employee benefit fund and the
general liability fund to meet potential losses.
Other Information
Independent audit. State statutes and the City Charter require an annual audit by independent certified
public accountants. The firm of Gayle W. Botley and Assoc., CPAs was selected by the City Council.
In addition to meeting the requirements set forth in state statutes, the audit was also designed to meet
the requirements of the Federal Single Audit Act Amendments of 1996 and the related U.S. Office of
Management and Budget's Circular A-133. Generally accepted auditing standards and the standards set
forth in the General Accounting Office's Government Auditing Standards were used by the auditors in
conducting the engagement. The auditor's report on the general purpose financial statements and
combining and individual fund statements and schedules is included in the financial section of this
report. The auditor's reports on internal controls and compliance with applicable laws and regulations
can be found in a separately issued single audit report.
Awards. The Government Finance Officers Association of the United States and Canada (GFOA)
awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Port Arthur
for its Comprehensive Annual Financial Report for the fiscal year ended September 30, 2000. This
prestigious award is the result of achieving the highest standard of governmental accounting and
financial reporting. In order to be awarded a Certificate of Achievement, a governmental unit must
publish an easily readable and efficiently organized Comprehensive Annual Financial Report, whose
contents conform to program standards. Such reports must satisfy both generally accepted accounting
principles and applicable legal requirements. A Certificate of Achievement is valid for one year only.
We believe our current report continues to conform to Certificate of Achievement Program
requirements, and are submitting it to GFOA to determine its eligibility for another certificate.
Acknowledgments. The preparation of this report could not have been accomplished without the
efficient and dedicated services of the entire staff of the finance department, notably Deborah Echols,
Assistant Director of Finance, and my administrative aide Jennifer Abraham. The entire staff works
tirelessly to assure that the records and reports of the department are excellent, and I appreciate them
immensely. Appreciation is also expressed to all of the City departments for their cooperation and
assistance, to our audit firm for their professional assistance, and finally to the City Manager and the
City Council for their continued interest in and support of the Finance Department and its work.
Rebecca Underhill, CPA
Director of Finance
X
Certificate of
Achi~evement
for Excellence
in Financial
Reporting
Presented to
City of Port Arthur,
Texas
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
September 30, 2000
A Certificate of Achievement for Excellence in Financial
Reporting is presented by the Government Finance Officers
Association of the United States and Canada to
government units and public employee retirement
systems whose comprehensive annual financial
reports (CAFRs) achieve the highest
standards in government accounting
and financial reporting.
Director
x±
City of Port Arthur, Texas
CITY COUNCIL
OSCAR ORTIZ
CRAIG HANNAH
FELIX BARKER
TOM HENDERSON
TOM GILLAM, III
REV. RONNIE LINDEN
BOB BOWERS
ROSE M. CHAISSON
ROBERT E. ALLEN
Mayor
District 1
Mayor Pro-Tem
District 3
District 4
District 5
District 6
District 7
District 8
APPOINTED OFFICIALS
Stephen Fitzgibbons
Carolyn Dixon
Mark Sokolow
City Manager
City Secretary
City Attorney
xii
Texas
City Council
City Secretary
City Manager
CityAffomey
I
Municipal Court
General Fund AcavitJes
Enterprise Ac't[vitJes
Water Utility
Solid Waste
Transit System
Planning and
Community Development
Parks and Recreation
Police
Fublic Works
Health
Library
xiii
Gayle W. Botley Associates
Certified Public Accountants Member of AICPA
"Supporting Your Finar~ial Growth
UNQUALIFIED OPINION ON FINANCIAL STATEMENTS-
GOVERNMENTAL ENTITY
Independent Auditor's Report
To the Honorable Mayor, oscar Ortiz
and Members of the City Council
City of Port Arthur, Texas
We have audited the accompanying general-purpose financial statements and the combining and
individual fund and account group financial statements of the City of Port Arthur, Texas ("the
City"), as of and for the year ended September 30, 2001, as listed in the table of contents. These
general-purpose financial statements are the responsibility of the City's management. Our
responsibility is to express an opinion on these general-purpose 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 opinion.
In our opinion, the general-purpose financial statements referred to above present fairly, in all
material respects, the financial position of the City as of September 30, 2001, and the results of its
operations and the cash flows of its proprietary fund types and nonexpendable trust funds 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 also issued our report dated,
January 11, 2002, on our consideration of the City's internal control over financial reporting and our
tests of its compliance with certain provisions of laws, regulations, contracts and grants. That report
is an integral part of an audit performed in accordance with Government Auditing Standards and
should be read in conjunction with this report in considering the results of our audit.
The other information listed in the table of contents under the statistical section has not been audited
by us and, accordingly, we express no opinion on such information.
4749 TwOt City Hwy, Suite 280
Port Arthur, DC 77642
(409) 9624040
fax (409) 962 -0668
(800) 416-8757
City of Port Arthur Page 2
Our audit was conducted for the purpose of forming an opinion on the general-purpose financial
statements taken as a whole and on the combining and individual fund and account group financial
statements. The accompanying financial information listed as supplemental schedules in the table
of contents is presented for purposes of additional analysis and is not a required part of the general-
purpose financial statements of the City. Such information has been subjected to the auditing
procedures applied in the audit of the general-purpose, combining and individual fund and account
group financial statements and, in our opinion, is fairly presented, in all material respects, in relation
to the financial statements of each of the respective individual funds and account groups taken as a
whole.
Gayle W. Botley & Associates
Port Arthur, Texas
January ll, 2002
CITY OF PORT ARTHUR, TEXAS
COMBINED BALANCE SHEET
ALL FUND TYPES AND ACCOUNT GROUPS
AND DISCRETELY PRESENTED COMPONENT UNITS
SEPTEMBER 30, 2001
General
ASSETS AND OTHER DEBITS
Assets:
Cash $ 1,784,597
Investments 5,100,000
Due from other funds 4,008,330
Receivables
Taxes 2,409,477
Less: allowance for doubtful accounts (361,421)
Notes 179,601
Accounts 3,762,064
Less: allowance for doubtful accounts (3,340,067)
Special assessments
Federal and state grants 53,903
Due from developers
Other 49,409
inventories
Prepaid items
Fixed assets, net of
accumulated depreciation
Other debits:
Amount available in debt service fund
Amount to be provided for retirement of tong
term obligations
Total assets and other debits $
LIABILITIES, EQUITY AND OTHER CREDITS
Liabilities:
Accrued payroll $ 864,111
Accounts payable 190,210
Other liabilities 59,770
Due to other funds
Accrued landfill closure costs
Refundable deposits
Claims payable
Tax anticipation notes payable
General obligation bonds
Lease payable
Compensated absences 475,684
Deferred revenues 1,918,233
Total liabilities 3,508,008
Equity and other credits:
Contributed capital
Investment in general fixed assets
Retained earnings:
Reserved for construction
Unreserved
Fund balances:
Reserved for encumbrances 81,633
Reserved for debt service
Reserved for construction
Reserved for development projects
Unreserved
Total equity and other credits
Total liabilities, equity and other credits $ 13,645,893
See accompanying notes to financial statements.
Governmental Fund Types
Special Debt Capital
Revenue Service Projects
Proprietary
Enterprise
1,005,133 $ 436,021
400,000 500,000
$ 778,648
552,008
566,378
$ 319
4,704,681
(350,587)
269,225
910,357
2,607,391
5,691,172
(1,496,175)
34,565 274,369
102,013
339,115
77,447,245
13,645,893 $ 9,546,200 $ 936,021 $ 1,931,599 $ 82,358,058
$ 43,825 $ $ $ 286,623
82,314 9,550 184,491 213,429
78,552
1.043,550
28,956
7,037,452
4,524,887
1,962,679
697,351
325,001
1,003,387
8,314,649 9.550 184.491 9,013,357
90,356,816
3,195,745
(20,207,860)
926,471
1,747,108
10,056,252 1,231,551
10,137,885 1,231,551 926,471 1,747,108 73,344,701
$ 9,546,200 $ 936,021 $ 1,931,599 $ 82,358,058
EXHIBIT A-1
Fund Types
Intsrnal
Se~ice
Fiduciary
Fund Type
Trust and
Agency
Total
Account Groups Primary
General Government
General Long-Term (Memorandum
Fixed Assets Debt Only)
Total
Component Units Reporting
Economic Pleasure Entity
Development Island (Memorandum
Corporation Commission Only)
1,790,107
1,000,000
1,161,787
193,926
61,015
135,000
5,312,955
$ 22,500 $ $ $
5,817,325 $ 2,079,922 $ 127,246 $ 8,024,493
7,552,008 4,000,000 900,000 12,452,008
5,736,495 5,738,495
2,409,477
(361,421)
179,601
14,351,843
(5,188,829)
269,225
1,273,194
2,607,391
151,422
400,130
135,000
39,453,573 122,213,773
926,471 926,471
40,471,614 40,471,614
686
510,152
2,409,477
(361,421)
179,601
14,861,995
(5,186,829)
269,225
1,273,880
2,607,391
151,422
400,130
137,217
2,217
39,433 4,316,068 126,569,274
926,471
40,471,614
$ 9,654,790 $
22,500 $ 39,453,573 $ 41,398,085 $ 198,946,719 $ 6,120,041 $ 5,855,68~_.~_____3 $__210,922,443
$ 22,200 $
70,944
168,058
1,327,471
649,999
92,001
2,330,673
3,458 $ 4,854 $
14,595 83,310
36,640,000
204,345
4,553,740
1,216,759
750,938
138,322
5,736,495
1,962,679
697,351
1,327,471
975,000
36,640,000
204,345
6,153,768
8,955,685
2,708 7,437
3,416
1,225,071
848,843
138,322
5,736,495
1,962,679
697,351
1,327,471
975,000
36,640,000
204,345
6,163,913
8,959,101
41,398,085 64,758,813 20,761 99,017 64,878,591
654,253
6,669,864
22,500
7,324,117 22,500 39,453,573
9,654,790 $ 22,500$ 39,453,573
91,011,069 3,440,334 94,451,403
39,453,573 39,453,573 39,433 39,493,006
3,195,745 3,195,745
(13,537,996) 2,315,332 (11,221,664)
81,633
926,471
1,747,108
4,559,456
11,310,303 1,500,391
81,633
926,471
1,747,108
4,559,456
12,810,694
134,187,906 6,099,280 5,756,666 146,043,852
$ 41,398,085 $ 198,946,719
$ 6,120,041 $ 5,855,683 $ 210,922,443
CITY OF PORT ARTHUR, TEXAS
COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUND AND EXPENDABLE TRUST FUND TYPES
AND DISCRETELY PRESENTED COMPONENT UNITS
FOR THE YEAR ENDED SEPTEMBER 30, 2001
EXHIBITA-2
Special
Taxes $ 13,028,925 $
rndustdal payments 12,503,378
432,660
28,693
7.897
$ 16,864,539 $ 2,177,5~8 $
606.578
695,299
4,310
811 515,98g 238,719
478,535
12,503,378
695,299
3,g57,073
4,310
1,054,708
.478,535
Total expenditures 30,487,679 2,442~185
3,93~,114 469,250 811 36,275,385 2,417,745 38,693,130
1,952,494
16,522,237 16,522,237
(1,483,244) 811 (3,027,184) (279,359) (3,306,543)
151,059 5,829,029 5,829,029
(2,885,659) (2,885,659)
161,089 2,943,370 2,943,370
1,aO8,244
$ 1,231,551
(1,322,155) 811 (83,814) (279,359) (363,173)
3,0S9,263 21,6~9 14,149,329 6,339,206 20.488,535
1,747,108 $ 22,500 $ 14,065,515 $ 6,059,847 $ 20,125,362
CITY OF PORT ARTHUR, TEXAS
COMBINED STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES
BUDGET (GAAP BASIS) AND ACTUAL - BUDGETED GOVERNMENTAL FUND TYPES
FOR THE YEAR ENDED SEPTEMBER 30, 2001
Revenues: Taxes
Industrial payments
Licenses and permits
Fees, services and sa]es
Fines and forfeitures
Intergovernmental
Donations and gifts
Interest
Other
Total revenues
Expenditures:
General government
Public safety
Health and welfare
Public works
Debt service
Total expenditures
Excess (deficiency) of revenues over expenditures
Other financing sources (uses)
Operating transfers in
Operating transfers out
Total other financing sources (uses)
Excess (deficiency) of revenues and other financing
sources over expenditures and other financing uses
General Fund
Bud~let Actual
Variance
Favorable
(Unfavorable)
12,173,510 $ 13,028,925 $ 855,415
12,501,404 12,503,378 -1,974
253,500 351,142 97,642
387,800 535,569 147,769
666,000 641,109 (24,891)
531,000 744,411 213,411
640,000 616,587 (23,413)
220,000 121,325 (98,675)
27,373,214 28,542,446 1,169,232
8,226,377 7,813,492 412,885
16,508,342 16,479,589 28,753
554,791 524,646 30,145
6,173,145 5,669,952 503,193
31,462,655 30,487,679 974,976
(4,089,441) (1,945,233) 2,144,208
4,675,996 4,436,453 (239,543)
(1,277,900) (1,292,900) (15,000)
3,398,096 3,143,553
(691,345) 1,198,320
{254,543)
$ 1,889,655
Fund balances, beginning ofyear
Fund balances, end of year
8,939,565
$ 10,137,885
See accompanying notes to financial statements.
EXHIBIT A-3
Bud~leted Special Revenue Funds
Actual
Budget
Variance
Favorable
(Unfavorable)
80,000 71,009 (8,991)
52,000 54,190 2,190
20,038 20,038
3,000 4,310 1,310
17,600 14,533 (3,067)
Debt Service Fund
Budget
3,921,470
Actual
Variance
Favorable
(Unfavorable)
$ 3,835,614 $ (85,856)
100,000 100,500 500
152,600 164,080 11,480 4,021,470 3,936,114 (85,356)
60,353 31,947 28,406
49,500 33,843 15,657
109,853 65,790 44,063
4,455,610 4,420,211 35,399
4,455,610 4,420,211 35,399
42,747 98,290 55,543 (434,140) (484,097) (49,957)
(168,900) (161,089) 7,811
(168,900) (161,089) 7,811
(62,799) $ 63,354
376,360
313,561
$__1126,153)
700,000 700,000
700,000 700,000
265,860 215,903 $__(49,957)
710,568
$ 926,471
CITY OF PORT ARTHUR, TEXAS
COMBINED STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND EQUITY
PROPRIETARY FUND TYPES
AND DISCRETELY PRESENTED COMPONENT UNITS
FOR THE YEAR ENDED SEPTEMBER 30, 200'1
EXHIBIT A-4
Operating revenues:
Fees, services and sales
Operating expenses:
Personnel services
Other operating expenses
Depreciation
Loss on uncollectible accounts
Employees benefits
Damage claims
Total operating expenses
Operating income (loss)
Non-operating revenues (expenses)
Interest revenue
Interest expense
Payments to Park Central Municipal
Utility District
Intergovernmental
Gain on sale of assets
Total non-operating revenues (expenses)
Net income (loss) before operating transfers
Operating transfers in
Operating transfers out
Net income (loss)
Retained earnings (accumulated deficit)
beginning of year, as previously reported
Prior period adjustment, Note J
Retained earnings (accumulated deficit)
beginning of year, as restated
Retained earnings (accumulated deficit),
end of year
Contributed capital, beginning of year
Contributed capital, end of year
Fund equity end of year
Total Component Total
Primary Unit Reporting
Proprietary Fund Types Government Pleasure Entity
Internal (Memorandum Island (Memorandum
Enterprise Service only) Commission only)
$ 16,715,317 $ 9,307,512 $ 26,022,829 $ 955,093 $. 26,977,922
7,719,081 960,296 8,679,377 296,933 8,976,310
6,947,281 1,589,076 8,536,357 525,157 9,061,514
2,541,328 1,440,018 3,981,346 113,864 4,095,210
40,385 40,385 40,385
3,447,547 3,447,547 3,447,547
771,948 771,948 771,948
17,248,075 8,208,885 25,456,960 935,954 26,392,914
(532,758) 1,098,627 565,869 19,139 585,008
104,672 158,156 262,828 51,235 314,063
(17,691) (35,384) (53,075) (53,075)
(997,684) (997,684) (997,684)
1,305,861 7,200 1,313,061 1,313,061
(1,260) 34,357 33,097 33,097
393,898 164,329 558,227
(138,860) 1,262,956 1,124,096
330,000 833,500 1,163,500
(4,088,370) (18,500) (4,106,870)
51,235 609,462
70,374 1,194,470
1,163,500
(4,106,870)
(3,758,370) 815,000 (2,943,370) (2,943,370)
(3,897,230) 2,077,956 (1,819,274) 70,374 1,748,900)
(12,543,608) 4,591,908 (7,951,700) 2,241,928 5,709,772)
(571,277) (571,277) 4,030 (567,247)
(13,114,885) 4,591,908 (8,522,977) 2,245,958 8,277,019)
6,669,864 (10,342,251) 2,316,332 8,025,919)
(17,012,115)
90,356,816 654,253 91,011,069 3,313,691 94,324,760
90,356,816 654,253 91,011,069 3,440,334 94,451,403
$ 73,344,701 $ 7,324,117 $ 80,668,818 $ 5,756,666 $ 86,425,484
See accompanying notes to financial statements.
10
~iTY OF PORT ARTHUR, TF.)t~A~
COMBINFD STATEMENT OF CASH FLOW:~
PROPRIffTARY FUND TYPI:$ AND DISCRET£LY PR£$1:NTffD COMPONENT UNITS
FOR TH£ YI=AR ffNDI::D SFpTI::MffFR 30, 200~1
Enterprise
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
Cash flows from operating activities:
Net cash provided (used) by
operating activities: $
Cash flows from capital and related financing activities
Payment of tax anticipation notes
Interest paid
Capital grants
Proceeds from sale of capital assets
Payments to Park Central Municipal Utility District
Acquisition and construction of capital assets
Net cash provided (used) for capital and
related financing activities
Cash flows from investing activities:
Proceeds from the sale of investments
Interest revenue
Net cash provided (used) by investing activities .
Cash flows from noncapital and related financing activities:
Operating grants
Operating transfers in
Operating transfers out
Net cash provided (used) noncapital and
related financing activities
Net increase (decrease) in cash and
cash equivalents
Cash and cash equivalents at beginning of year
Cash end cash equivalents at end of year $
Total Component Total
Proprietar~ Fund Types Primary Unit Reporting
Government Pleasure Entity
Internal (Memorandum Island (Memorandum
Service only) Commission only)
4,025,249 $ 327,555 $ 4,352,804 $ 288,217 $ 4,641,021
(150,000) (300,000) (450,000) (450,000)
(17,691 ) (35,384) (53,075) (53,075)
308,928 308,928 308,928
2,402 88,586 90,988 .- 90,988
(997,684) (997,684) (997,684)
(1,125,308) (1,922,422) (3,047,730) (374,141) (3,421,871)
(1,979,353) (2,169,220) (4,148,573) (374,141) (4,522,714)
570,000 2,445,000 3,015,000 100,000 3,115,000
104,672 158,156 262,828 51,235 314,063
674,672 2,603,156 3,277,828 151,235 3,429,063
996,933 7,200 1,004,133 1,004,133
330,000 815,000 1,145,000 1,145,000
(4,088,370) (4,088,370) (4,088,370)
(2,761,437) 822,200 (1,939,237) (1,939,237)
(40,869) 1,583,691 1,542,822 65,311 1,608,133
41,188 206,416 247,604 61,935 309,539
319 $ 1~790~107 $ 1~790~426 $ 127~246 $ 1~917,672
RECONCILIATION OF OPERATING INCOME TO
NET CASH PROVIDED BY OPERATING ACTIVITIES
Operating income (loss)
Adjustments to reconcile operating income to net cash
provided by operating activities: Depreciation
Provision for loss on utility receivables
Changes in assets and liabilities:
Due from other funds
Accounts receivable
Other receivables
Inventories
Prepaid expenses
Accrued payroll
Accounts payable
Other liabilities
Due to other funds
Accrued landfill closure cost
Claims for injuries and damages
Refundable deposits
Deferred revenue
Compensated absences
Total adjustments
Net cash provided (used) by
operating activities
$ (532,758) $ 1,098,627 $ 565,869$ 19,139 $ 585,008
2,541,328 1,440,018 3,981,346 113,864 4,095,210
42,386 42,386 42,386
(1,071,187) (1,071,187) (1,071,187)
(124,298) (124,298) 122,760 (1,538)
106,534 (190,201) (83,667) (83,667)
(28,968) 5,745 (23,223) (23,223)
294,123 294,123 1,181 295,304
(11,010) (25,703) (36,713) 563 (36,150)
19,147 (267,399) (248,252) 69,918 (178,334)
(42,726) (42,726)
1,887,518 77,458 1,964,976 1,964,976
180,329 180,329 180,329
(1,032,287) (1,032,287) (1,032,287)
19,409 19,409 19,409
4,359 4,359
(74,368) (1,639) (76,007) (841) (76,848)
4,558,007 (771,072) 3,786,935 269,078 4,056,013
4~025~249 $ 327,555 4~352,804 $ 288~217 $ 4,641~021
See accompanying notes to financial statements.
11
CITY OF PORT ARTHUR
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2001
The accounting methods and procedures adopted by the City of Port Arthur, Texas conform to
generally accepted accounting principles as applied to governmental entities. The following notes to
the financial statements are an integral part of the City's General Purpose Financial Statements.
I. Summary of Significant Accounting Policies
A. REPORTING ENTITY:
The City of Port Arthur, Texas (City) was incorporated under the laws of the State of Texas, May 30,
1898 and has operated under a Council-Manager form of government since March 8, 1932. As
required by generally accepted accounting principles, the financial statements of the reporting entity
include those of the City of Port Arthur (the primary government) and its component units. The
component units discussed below are included in the City's reporting entity because of the
significance of their operational or financial relationships with the City.
· Discretelypresented component units
In conformity with generally accepted accounting principles, the financial statements of two of the
component units have been included in the financial reporting entity as discretely presented
component units. The component units' columns in the combined financial statements include the
financial data of the City's two component units. These units are reported in a separate column to
emphasize that they are legally separate from the City.
Port Arthur Economic Development Corporation
The Port Arthur Economic Development Corporation (EDC), an entity legally separate from
the City, is governed by a five member board of directors appointed by the City Council.
The EDC is funded by a one half cent additional sales tax dedicated to economic
development activities which was approved by voters November 7, 1995 and implemented
April 1, 1996. The budget, financial reports, and bonds of the EDC must be approved by the
City Council.
Pleasure Island Commission
The Pleasure Island Commission (Commission) was created by the City's Charter and an Act
of the State of Texas to manage, control, maintain, operate, and develop lands owned by the
City in and under Sabine Lake. The Commission is governed by a nine-member
commission appointed by the City Council. Although it is a legally separate entity, the
Commission's operations are limited solely to property owned by the City and the City
Council must approve many of the Commissions transactions, such as the issuance of bonds.
Presentation of financial statements. The financial statements of the discretely presented component
units are presented in the combined financial statements of the City. The notes to the financial
statements include disclosures pertaining to the City as the primary government and also the Port
Arthur Economic Development Corporation as a component unit. Disclosures related to the Pleasure
Island Commission are not included unless otherwise noted. The complete financial report of the
Pleasure Island Commission can be obtained directly from their administrative offices:
13
CITY OF PORT ARTHUR
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2001
Pleasure Island Commission
520 Pleasure Pier Blvd.
Port Arthur, Texas 77640
· Blended component unit
The financial statements of a third component unit is included in the financial reporting entity as
a blended component unit. This component unit is included in the operations and activities of the
City due to the fiscal dependency criteria outlined in GASB Statement 14, and all presentations
of the primary government include the blended component unit.
Port Arthur Municipal Nonprofit Corporation
The Port Arthur Municipal Nonprofit Corporation (Corporation) was created by City
Ordinance on October 5, 1999. The Corporation is presented as a blended component
unit of the City. The members of the City Council serve as the Board of the Corporation.
The mission of the Corporation is to facilitate the development of affordable housing in
the City of Port Arthur. The Corporation received funding from the City to construct
housing for low to moderate income applicants. Under the Corporation's program
guidelines, the Corporation can also provide down payment assistance through grants or
low interest loans to applicants meeting established criteria. During fiscal year 2001, the
Corporation built four homes that were sold under the program.
Presentation of financial statements. While legally separate from the City, the Port Arthur
Municipal Nonprofit Corporation is in substance a part of the City's operations, and so data from
this unit is blended with data of the primary government.
B. MEASUREMENT FOCUS, BASIS OF ACCOUNTING AND BASIS OF
PRESENTATION:
The accounts of the City are organized on the basis of funds and account groups. A fund is an
independent fiscal and accounting entity with a self-balancing set of accounts. Fund accounting
segregates funds according to their intended purpose and is used to aid management in demonstrating
compliance with finance-related legal and contractual provisions. The minimum number of funds are
maintained consistent with legal and managerial requirements. Account groups are a reporting device
to account for certain assets and liabilities of the governmental funds not recorded directly in those
funds.
Governmental funds are used to account for most of the City's general government activities.
Governmental fund types use the flow of current financial resources measurement focus and the
modified accrual basis of accounting. Under the modified accrual basis of accounting, revenues are
recognized when susceptible to accrual (i.e. when they are "measurable" and "available").
"Measurable" means that the amount of the transaction can be determined and "available" means
collectible within the current period, or soon enough thereafter to pay liabilities of the current period.
The City considers all revenues available if they are collected within 60 days after the year end.
Expenditures are recorded when the related fund liability is incurred, except for unmatured interest on
general long-term debt which is recorded when due, and certain compensated absences which are
recognized when the obligations are expected to be liquidated with expendable available financial
resources.
14
CITY OF PORT ARTHUR
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2001
Property taxes, franchise taxes, special assessments, and interest revenue are susceptible to accrual.
Other receipts become measurable and available when cash is received by the government and are
recognized at that time. Entitlements and shared revenues are recorded at the time of receipt, or
earlier, if the "susceptible to accrual criteria" are met. Expenditure driven grants are recognized as
revenue when the qualifying expenditures have been incurred and all other grant requirements have
been met.
Governmental funds include the following fund types:
The general fund is the government's primary operating fund. It accounts for all
financial resources of the City, except for those required to be accounted for in
another fund.
The special revenue funds account for revenue sources that are legally restricted to
expenditures for specific purposes (not including expenditures for major capital
projects).
The debt service fund accounts for the servicing of general long-term debt.
The capital projects fund accounts for the acquisition of fixed assets or construction
of major capital projects, not being financed by proprietary funds.
Proprietary funds are accounted for on the flow of economic resources measurement focus and use
the accrual basis of accounting. Under this method, revenues are recorded when earned and expenses
are recorded at the time liabilities are incurred. The City applies all applicable Financial Accounting
Standards Board pronouncements issued on or before November 30, 1989, unless those
pronouncements conflict with or contradict Government Accounting Standards Board
pronouncements for accounting and reporting for proprietary operations. Proprietary funds include
the following fund types:
Enterprise funds are used to account for those operations that are financed and
operated in a manner similar to private business or where the City has decided that
the determination of revenues earned, costs incurred and/or net income is necessary
for management accountability.
Internal service funds account for operations that provide services to other
departments of the City on a cost-reimbursement basis.
Fiduciary funds account for assets held by the City in a trustee capacity or agent on behalf of others.
The expendable trust fund is accounted for in essentially the same manner as the
governmental fund types, using the same measurement focus and basis of
accounting. Expendable trust funds account for assets where both the principal and
interest may be spent.
15
CITY OF PORT ARTHUR
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2001
Account groups. The general fixed asset account group is used to account for fixed assets not
accounted for in proprietary funds. The general long-term debt account group is used to account for
general long-term debt and certain other liabilities that are not specific liabilities of proprietary funds.
C. ASSETS, LIABILITIES AND EQUITY:
1. Deposits and Investments
The City's cash and cash equivalents are considered to be cash on hand, demand deposits and short-
term investments with maturities of three months or less. Statutes of the State of Texas and policies
adopted by City Council authorize the City to invest in obligations of the U.S. Treasury, securities
issued by U.S. goverament agencies, bankers acceptances, repurchase agreements, certificates of
deposit, and local government investment pools. Investments are stated at fair value in all funds,
which approximates cost.
2. Property Taxes Receivable
The City's property taxes are levied annually, October 1, on the basis of assessed values as of January
1 of that calendar year which are certified by the Jefferson County Appraisal District. Taxes are
applicable to the fiscal year in which they are levied. They become delinquent on February 1 of the
subsequent calendar year at which time the applicable property is subject to lien, and penalties and
interest are assessed.
3. Receivables
All receivables are reported at their gross value and, where appropriate, are reduced by the estimated
portion that is expected to be uncollectible.
4. Interfund receivables andpayables
Interfund receivables and payables arise from interfund transactions and are recorded by all funds
affected in the period in which transactions are executed.
5. Inventories and Prepaid Items
Inventories are valued at cost using the weighted average cost method. Payments made to vendors for
services that will benefit future accounting periods are recorded as prepaid items.
6. Fixed Assets
Fixed assets used in governmental fund types of the City are recorded in the general fixed asset
account group at cost if purchased or constructed. Donated fixed assets are recorded at their
estimated fair value at the date of donation. Assets in the general fixed asset account group are not
depreciated. Interest incurred during construction is not capitalized on general fixed assets. Public
domain assets, which are immovable and of value only to the City, are not capitalized.
Property, plant and equipment in the proprietary funds of the City are recorded at cost or, in the case
of donated assets, estimated fair value at the date of donation. Major outlays for capital assets and
improvements are capitalized in proprietary funds as projects are constructed.
Property, plant and equipment are depreciated in the proprietary funds using the straight line method
over the following estimated useful lives:
16
CITY OF PORT ARTHUR
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2001
Type of Asset Life
Buildings 20 - 55 years
Improvements 20 - 60 years
Equipment 2 - 10 years
7. Compensated Absences
The City's employees earn vacation and sick leave which may be accumulated, subject to certain
restrictions, until paid on termination. Accumulated compensated absences that are expected to be
liquidated with expendable available financial resources are reported as an expenditure and a fund
liability of the governmental fund that will pay for it. Amounts of compensated absences that are not
expected to be liquidated with expendable available financial resources are reported ia the general
long-term debt account group. No expenditure is reported for these amounts. All accumulated
compensated absences attributable to enterprise fund operations are reported as liabilities in those
funds.
8. Long-term Obligations
The City reports long-term debt of governmental funds at face value in the general long-term debt
account group. Certain other governmental fund obligations, not expected to be financed with current
available financial resources, are also reported in the general long-term debt account group. Long-
term debt and other obligations financed by proprietary funds are reported as liabilities in the
appropriate funds.
For governmental fund types, bond premiums and discounts, as well as issuance costs, are recognized
during the current accounting period. Bond proceeds are reported as another financing source net of
the applicable premium or discount. Issuance costs, even if withheld from the actual net proceeds
received, are reported as debt service expenditures. For proprietary fund types, bond premiums and
discounts, as well as the issuance costs, are deferred and amortized over the life of the bonds using
the effective interest method. Bonds payable are reported net of the applicable premium or discount.
9. Fund EquRy
The unreserved fund balances for govemmental funds represent the amount available for budgeting
future operations. The reserved fund balances for governmental funds represent the amount that have
been legally identified for specific purposes.
The proprietary funds' contributed capital represents equity acquired through capital grants and
capital contributions from developers, customers or other funds. Unreserved retained earnings
represent the net assets available for future operations or distribution.
D. OTHER
Memorandum Only - Total Columns
Total columns presented in the Combined Financial Statements are captioned "Memorandum Only"
because they do not reflect consolidated financial information and are presented only to facilitate
financial analysis. The columns do not represent financial position, results of operations, or cash
flows in the proprietary fund types in conformity with generally accepted accounting principles.
Interfund eliminations have not been made in the aggregation of this data.
17
CITY OF PORT ARTHUR
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2001
II. STEWARDSHIP~ COMPLIANCE AND ACCOUNTABILITY
A. BUDGETARY INFORMATION
Annual budgets are adopted on a basis consistent with generally accepted accounting principles
(GAAP) for the following governmental fund types: the General Fund, the Debt Service Fund, the
Library Special Fund, the Golf Course Fund, the Police Special Fund, and the Port Arthur Economic
Development Corporation. The Capital Project fund is budgeted on a project basis, rather' than annual
basis. Budgets for the Enterprise Funds and the Internal Service Funds are adopted on a basis not
consistent with generally accepted accounting principles because the budget presents capital outlays
as expenditures and there is no provision for depreciation expense.
On or before August 31 of each year the City Manager presents the City Council with a proposed
budget for the ensuing fiscal year. The Council holds public hearings and a final budget must be
prepared and adopted by September 30.
Budgets are appropriated by fund and department. The City's department heads may make transfers
of appropriations within a department with the City Manager's approval. Transfers between
departments require the approval of the City Council. The legal level of control is the department
level. The City Council made two supplementary budgetary appropriations during the year, most
notably to increase appropriations for emergency expenditures in the Water and Sewer Fund,
Worker's Compensation Fund, Finance Department and Police Department. These expenditures were
related to dramatic increases in operating costs and paid claims. The net effect of the budget
amendments were to increase the Water and Sewer Fund budget $1,085,000, General Fund budget
$226,000, General Liability Fund budget $25,000, Employee Benefit Fund budget $200,000, and the
Golf Course Fund budget $22,800.
The City uses 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. Encumbrances outstanding at year end are reported as reservations of fund balances
and do not constitute expenditures or liabilities because the commitments will be honored in the
subsequent year. Appropriations lapse at September 30.
B. BUDGET/GAAP RECONCILIATION
The following schedule reconciles the amount on the Combined Statement of Revenues,
Expenditures, and Changes in Fund Balance - Budget to Actual to the amounts on the Combined
Statement of Revenues, Expenditures, and Changes in Fund Balances.
18
CITY OF PORT ARTHUR
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2001
1Non~
Budgeted Budgeted
Special Special
Revenue Revenue
Funds Funds
Total
Revenues $ 164,080 $ 3,694,171 $ 3,858,251
Expenditures 226,879 3,808,065 4,034,944
$__(62,799) $ (113,894~) $ (1.___76,693)
C. DEFICIT FUND BALANCE/RETAINED EARNINGS
The following funds had a deficit fund balance or retained earnings as of September 30, 2001:
Fund Amount Comments
Health Grants Fund
Water and Sewer Fund
Solid Waste Fund
Transit System Fund
Equipment Services Fund
General Liability Fund
$ 82,588
9,761,521
3,469,672
3,780,922
645,912
398,983
Future billings will fund this deficit
Future billings and transfers are expected to
fund this deficit.
The City will transfer funds and billings to
offset this deficit.
The City will transfer funds to offset this
deficit as needed.
This fund was capitalized with contributions
from the General Fund.
The City has not funded costs incurred but
not reported. Internal charges and transfers
will be used to offset these costs.
D. EXCESS OF EXPENDITURES OVER APPROPRIATIONS
For the year ended September 30, 2001, expenditures exceeded appropriations in the following
departments in the General Fund:
Planning and Community Development $ 39,968
Police 61,780
This expenditure was funded through the under expenditure in the other General Fund departments.
Overall General Fund expenditures were under appropriation by $959,976.
Expenditures in these funds exceeded appropriations as follows:
Equipment Services Fund $ 41,307
19
CITY OF PORT ARTHUR
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2001
IlL DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS
A. CASH AND INVESTMENTS
Deposits with financial institutions must be collateralized in an amount equal to 100% of uninsured
deposits. The collateral must be held by the pledging financial institution's trust department. At
September 30, 2001, the City's uninsured deposits are fully collateralized by securities held by its
agent in the City's name.
Investments made by the City are summarized below. The investments that are represented, by
specific identifiable investment securities are classified as to credit risk within the following three
categories:
Category 1
Category 2
Category 3
Investments that are insured, registered, or held by the entity
or by its agent in the entity's name.
Investments that are tminsured and unregistered held by the
counterparty's trust department or agent in the entity's name.
Uninsured and unregistered investments held by the
counterpart, its trust department, or its agent, but not in the
entity's name.
Based on these three levels of risk, all of the City's investments are classified as category 1 except
investments made in Tex Pool, (a local government investment pool). Tex Pool is organized in
conformity with the Texas Public Funds Investment Act and is managed by the Texas Comptroller of
Public Accounts. Tex Pool maintains a net asset value of $1. These uncategorized investments
include ownership interests in mutual funds, in plans which are administered by outside agencies. At
year end, the City's deposits and investment balances (including the Port Arthur Economic
Development Corporation and Pleasure Island Commission) were as follows:
Deposits, cash on hand and certificates of deposit
Investments that are insured, registered or held by
the City's agent in the City's name (category 1):
U. S. Government Securities
Amounts not categorized because the securities are
not evidence of the investments:
Tex~Pool
Total Cash and Investments
Carrying
Amount at
Fair value
$ 8,924,493
1,978,336
9,573,672
$ 20,476,501
B. FIXED ASSETS
Activity in the general fixed assets account group for the City for the year ended September 30, 2001
was as follows:
2o
CITY OF PORT ARTHUR
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2001
Balance Transfers Transfers Balance
October 1, and and September
2000 Additions Dispositions 30, 2001
Land $ 2,965,258 $ $ $ 2,965,258
Buildings 15,702,613 15,702,613
Improvements 5,774,311 5,774,311
Equipment 13,547,001 236,688 (223,644) 13,560,045
Construction in Progress 453,331 998,015 1,451,346
TOTAL $ 38.442.51~4 $ 1.234.70~3 $ (223.644~ $ 39.453.57~3
A summary of proprietary fund type fixed assets for the City at September 30, 200i follows:
Land and Buildings
Improvements
Equipment
Construction in progress
Less: Accumulated Depreciation
Internal Service
Enterprise Funds Funds
$ 7,035,454 $ 878,663
45,807,574
63,983,625 12,285,280
831,964
117,658,617 13,163,943
(40,211,372) (7,850,988)
$ 77,447,245 $ 5,312,955
C. INTERFUND PAYABLES AND RECEIVABLES
The composition of the Due To/From Other Funds as of September 30, 2001, is as follows:
Payable Fund Amount
Receivable Fund
General Fund
Community Development Fund $ 628,202
Health Grants Fund 245,668
Water and Sewer Fund 3,134,460
4,008,330
396,698
169,680
566,378
168,058
993,729
1,161,787
Capital Proiects Fund
Internal Service Funds
Equipment Replacement Fund
Employee Benefits Fund
Transit Fund
Assessment Projects Fund
Equipment Services Fund
Solid Waste Fund
Total Due To/From Other Funds
$ 5,736,495
21
CITY OF PORT ARTHUR
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2001
D. LEASES
The City has entered into lease agreements as lessee for financing the acquisition of public safety
communications equipment and a central computer system upgrade. These lease agreements qualify
as capital leases for accounting purposes and have been recorded at the present value of the future
minimum lease payments as of the inception date in the General Fixed Asset Account Group.
The assets acquired through capital leases are as follows:
Asset
Radios $
Management Information System
Public Safety Radio System
Central computer upgrade
Total $
General
Fixed Assets
225,178
751,049
531,929
362,767
1,870,923
The future minimum lease payments and the net present value of these minimum lease payments as
of September 30, 2001, were as follows:
Fiscal Year IBM Motorola Total
2002 $ 86,555 $ 123,619 $ 210,174
2003 4,370 4,370
Interest (2,671) (7,528) (10,199)
Net Present Value $ 88,254 $ 116,091 $ 204,345
E. CONTRIBUTED CAPITAL
The changes in the City's contributed capital accounts for its proprietary funds were as follows:
Water and Sewer Fund
Solid Wastye Fund
Transit System Fund
Total Enterprise Funds
Contributed
Beginning from the
Balance General Fund
Ending Balance
$ 84,816,405 $ -- $ 84,816,405
1,267,572 -- 1,267,572
4,272,839 -- 4,272,839
90,356,816 -- 90,356,816
514,314 -- 514,314
139,939 -- 139,939
654,253 -- 654,253
Equipment Services Fund
Equipment Replacement Fund
Total Internal Service Funds
Totals
$ 91,011,069 $ -- $ 91,011,069
22
CITY OF PORT ARTHUR
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2001
F. LONG - TERM DEBT
General Obligation Debt. The City issues general obligation bonds and certificates of obligation to
provide funds for the acquisition and construction of major capital facilities. These instruments have
been issued for both general government and proprietary activities, but all are being repaid with
general govenunent resoumes so they are recorded in the General Long Term Debt Account Group.
General obligation debt are direct obligations and pledge the "full faith and credit" of the City. The
individual issues comprising general obligation debt are as follows
Outstanding
2000 Certificates of Obligation Series, $2,400,000, 4.7% - 5.124%
$170,000 to $275,000 annually to 2011
$ 2,230,000
1997 General Obligation Bonds Series, $15,000,000, 5.0% - 8.0%,
$25,000 to $1,125,000 annually to 2021
13,925,000
1995 General Obligation Bonds Series, $17,000,000, 5.5% - 8.5%
$350,000 to $1,025,000 annually to 2016
15,450,000
1995 Combination Tax and Certificates of Obligation, 6.0% - 8.0%
$150,000 to $450,000 annually to 2015
4,300,000
1992 Tax and Revenue Series, $1,850,000, 7.25% - 5.375%, $225,000
to $440,000 annually to 2000
400,000
1976 Unlimited Tax Bonds Series, $265,000, 5.5%, $70,000, annually
beginning in 2004 to 2007
235,000
1975 Unlimited Tax Bonds Series, $610,000, 4.125% - 8.9%, $60,000,
annually to 2003
100,000
Total General Obligation Debt
$ 36,640,000
During the year ended September 30, 2001 the following changes occurred in liabilities reported in
the General Long Term Debt Account Group:
Balance Balance
October 1, Additions Retirements September 30,
2000 2001
General obligation debt $ 38,245,000
Capital leases - Note D 392,992
Compensated absences 4,367,663
$ 43,005,655 $
- $ 1,605,000 $ 36,640,000
188,647 204,345
186,077 4,553,740
186,077 $ 1,793,647 $ 41,398,085
Annual debt service requirements to maturity for general obligation bonds follows:
23
CITY Ol~ POINT A~T~J~o
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2001
Year Ended General
September 30 Obligation
Debt
2002 $ 3,799,837
2003 3,338,031
2004 3,320,305
2005 3,303,475
2006 3,281,108
2007 3,249,245
2008 3,191,477
2009 3,172,798
2010 3,181,170
2011 3,187,888
Thereafter 25,002,553
Total 58,027,887
Interest (21,387,887)
Principal $ 36,640,000
Tax Anticipation Notes. In 1996, a $3,000,000 Tax Anticipation Note issue funded the purchase of
equipment in the Solid Waste Fund and the Capital Replacement Fund. The equipment was used to
convert the trash collection to an automated system. These obligations are reported in the Solid
Waste and Capital Replacement Funds. During the year ended September 30, 2001, the following
changes occurred in the liabilities reported for tax anticipation notes:
Enterprise Fund
Solid Waste Fund
Internal Service Fund
Capital Replacement Fund
Total $
Octoberl, Retirements September30,
2000 2001
475,001 $ 150,000 $ 325,001
949,999 300,000 649,999
1,425,000 $ 450,000 $ 975,000
Tax anticipation notes debt service requirements to maturity follows:
Year Ended Tax
September Anticipation
30 Notes
2002 $ 507,950
2003 511,250
Total 1,019,200
Interest (44,200)
Principal $ 975,000
24
CITY OF PORT ARTHUR
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2001
IV. OTHER INFORMATION
A. RISK MANAGEMENT
The City is exposed to various risks of loss related to torts; theft of, damage to and destruction of
assets; errors and omissions; and natural disasters for which the City carries commercial insurance.
The City maintains a limited risk management program for workers' compensation. Premiums are
paid into the Employee Benefit Fund and the General Liability Fund by all other funds and are
available to pay claims, claim reserves and administrative costs, and insurance premiums. These
interfund premiums are recorded as revenue in the Employee Benefit Fund and the General Liability
Fund as they are Internal Service Funds. Liabilities are reported when it is probable that a loss has
occurred and the amount of the loss can be reasonably estimated.
Estimated liability, 10/01/99
fiscal 2000 claims
fiscal 2000 claims paid
Estimated liability, 9/30/00
fiscal 2001 claims
fiscal 2001 claims paid
Estimated liability, 9/30/01
Worker's
Compensation
$ 777,252 $
1,015,508
(896,552)
896,208
702,088
(957,045)
$ 641,251 $
General
Liability Total
1,069,635 $ 1,846,887
1,174,802 2,190,310
(780,887) (1,677,439)
1,463,550 2,359,758
78,860 780,948
(856,190) (1,813,235)
686,220 $ 1,327,471
B. SEGMENT INFORMATION ON ENTERPRISE FUNDS
The City maintains three enterprise funds. The Water and Sewer Fund accounts for the provision of
drinking water and sanitary sewer services to all citizens. The Solid Waste Fund accounts for the
collection and disposal of solid waste for citizens and businesses operating within the City limits.
The Transit System Fund accounts for the operations of the City's mass transportation system.
Operating revenues $
Depreciation
Operating Income (loss)
Operating grants
Operating transfers in
Operating transfers (out)
Net income (loss)
Fixed asset additions
Net working capital
Total assets
Total equity
Water and Solid Transit
Sewer Waste Fund
Fund Fund
Total
11,592,056 $ 4,924,879 $ 198,382
2,190,151 33,440 317,737
298,051 621,257 (1,452,066)
996,933
330,000
(3,455,570) (600,400) (32,400)
(3,411,986) 3,166 (488,410)
1,108,165 12,645 4,498
(238,121) 245,739 (121,744)
79,914,511 1,421,974 1,021,573
75,054,884 (2,202,100) 491,917
$ 16,715,317
2,541,328
(532,758)
996,933
330,000
(4,088,370)
(3,897,230)
1,125,308
(114,126)
82,358,058
73,344,701
25
CITY OF PORT ARTHUR
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2001
C. CONTINGENT LIABILITIES
The City is defendant in various lawsuits arising in the ordinary course of its municipal and enterprise
activities. In the opinion of City management, the outcome of all pending litigation will not
materially affect the financial position of the City. Amounts received or receivable from grantor
agencies are subject to audit and adjustment by grantor agencies, principally the federal government.
Any disallowed claims, including amounts already collected, may constitute a liability of the
applicable funds. The amount, if any, of expenditures which may be disallowed by the grantor cannot
be determined at this time although the City expects such amounts, if any, to be immaterial.
D. DEFERRED COMPENSATION PLAN
The City offers its employees a deferred compensation plan created in accordance with Internal
Revenue Code Section 457. The plan, available to all City employees at their option, permits them to
defer a portion of their salary until future years. The deferred compensation is not available to
employees until separation, retirement, death, or unforeseeable emergency.
It is the opinion of the City's legal counsel that the City has no liability for losses under the plan but
does have the duty of due care that would be required of an ordinary prudent investor. Effective
January 1, 1997 these assets were placed in trust in compliance with federal regulation, and are no
longer property of the City, or available to the general creditors. The City does not participate in the
management of the plan assets, and as such, does not report plan activity.
E. OTHER POSTEMPLOYMENT BENEFITS
The City provides some postretirement health benefits for retirees. Each employee over age 65 pays
the City $98 per month, the cost of this benefit. Those under age 65 pay $121, half of the cost of the
health insurance. The City finances this program on a pay-as-you-go basis. As of September 30,
2001, the City had 155 retirees participating in this plan and incurred costs of $127,758 for this
benefit for the 2001 fiscal year.
F. PARK CENTRAL MUNICIPAL UTILITY DISTRICT
Park Central Municipal Utility District (the District) is a political sub-division of the State of Texas
located entirely within the boundaries of the City of Port Arthur. The District is governed by a five
member board elected by the residents of the District. The District is empowered to purchase, to
construct, to operate, and to maintain all works, improvements and facilities necessary for the supply
of water, for the collection of wastewater, and the control of storm water. The District also has the
authority to levy property taxes on property within the District's boundaries without any approval
from the City.
The District entered into a contract with the City on May 20, 1974 for a period of forty years. Under
the terms of this contract, the District is to pay for the construction and extension of water distribution
facilities and to pay a pro rata share of construction or expansion of sewage treatment facilities. The
District owns the system within its boundaries until all bonds issued to construct the system are
retired, at which time ownership of the system will vest in the City. During the term of the contract,
the City is obligated to maintain and operate the system in good working condition and to provide
26
CITY OF PORT ARTHUR
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2001
service to users within the District without discrimination. The City is required to fix rates and
charges for customers in the District equal and uniform to rates being charged to other similar users
within the City.
Under the terms of the contract the City is obligated to pay to the District twenty percent of the gross
revenues derived by the City from the operation of the system. The contract also requires the City to
pay to the District an amount equal to the ad valorem taxes collected by the City on property within
the District. Payments to the District totaled $1,377,836 in fiscal 2001. (See Note L - Subsequent
Events.)
G. EMPLOYEE RETIREMENT SYSTEMS
The City provides two pension plans for its employees, the Port Arthur Firemen's Relief and
Retirement Fund for all firefighters and the Texas Municipal Retirement System for all other
employees. The total accrued actuarial liability of the City is as follows:
FiremeWs
TMRS Relief and
Retirement
12/31/00 12/31/00
Total
Accrued actuarial liability
Actuarial value of assets
Unfunded actuarial accrued liability (UAAL)
$ 64,451,464 $ 24,374,083 $ 88,825,547
48,768,656 20,032,076 68,800,732
15,682,808 4,342,007 20,024,815
Percentage funded 75.7% 82.2%
Annual covered payroll
UAAL as a percentage of covered payroll
$ 17,412,819 $ 4,114,300 $ 21,527,119
90.1% 105.5%
Texas Municipal Retirement System (TMRS)
Plan Description. The City provides pension benefits for all of its full-time employees except for
City firefighters through a nontraditional, joint contributory, hybrid defined benefit plan in the state-
wide Texas Municipal Retirement System (TMRS), one of 745 administered by TMRS, an agent
multiple-employer public employee retirement system.
Benefits depend upon the sum of the employee's contributions to the plan, with interest, and the City-
financed monetary credits, with interest. At the date the plan began, the City granted monetary
credits for service rendered before the plan began of a theoretical amount equal to two times what
would have been contributed by the employee, with interest, prior to establishment of the plan.
Monetary credits for service since the plan began are a percent (100%, 150%, or 200%) of the
employee's accumulated contributions. In addition, the City can grant, as often as annually, another
type of monetary credit referred to as an updated service credit. This 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
contributions accumulated with interest if the current employee contribution rate and City matching
percent had always been in existence and if the employee's salary had always been the average of his
27
CITY OF PORT ARTHUR
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2001
salary in the last three years 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-
financed monetary credits with interest were used to purchase an annuity.
Members may retire at ages 60 and above with 10 or more years of service or with 25 years of service
regardless of age. The plan also provides death and disability benefits. A member is vested after 10
years, but he must leave his accumulated contributions in the plan. If a member withdraws his own
money, they are not entitled to the employer-financed monetary credits, even if he was vested. The
plan provisions are adopted by the governing body of the City, within the options available in the
state statues governing TMRS and within the actuarial constraints also in the statutes.
Contributions. The contribution rate for the employees is five percent (5%). The City matching ratio
is two to one (2:1), both as adopted by the City Council. Under the state law governing TMRS, the
City's contribution rate is annually determined by the actuary. This rate consists of the normal cost
contribution rate and the prior service contribution rate, both of which are calculated to be a level
percentage of payroll from year to year. The normal cost contribution rate finances the currently
accruing monetary credits due to the City matching percentage, which are the obligation of the City
as of an employee's retirement date, not at the time the employee's contributions are made. The
normal cost contribution rate is the actuarially determined percent of the payroll necessary to satisfy
the obligation of the City to each employee at the time his retirement becomes effective. The prior
service contribution rate amortizes the unfunded actuarial liability over the remainder of the plan's 25
year amortization period. The unit credit actuarial cost method is used for determining the City's
contribution rate. Both the employees and the City make contributions monthly. Since the City
needs to know its contribution rate in advance, for budgetary purposes, there is a one year delay
between the actuarial valuation that is the basis for the rate and the calendar year when the rate goes
into effect.
The following trend information is disclosed as required.
Year
Unfunded
Accrued Annual APL
Actuarial Value Actuarial Percentage Unfunded Covered As a Percentage
of Assets Liability (PAL) Funded AAL Payroll of Covered Payroll
1991 $
1992
1993
1994
1995
1996
1997
1998
1999
2000
28,004,004 $ 37,673,875 74.33 % $ 9,669,871 $ 15,826,684 61.10%
30,300,654 40,982,275 73.94 10,681,621 16,640,360 64.19
30,247,277 43,317,312 69.83 13,070,035 15,978,680 81.80
31,779,048 45,626,333 69.65 13,847,285 15,380,646 90.00
35,110,887 48,876,097 71.84 13,765,210 15,070,774 90.00
37,511,375 51,304,569 73.12 13,793,194 14,703,966 93.81
40,465,894 54,684,223 73.99 14,218,329 15,352,185 92.60
44,381,468 58,139,363 76.30 13,757,895 16,867,195 81.60
48,571,999 62,899,801 77.22 14,327,802 17,288,707 82.87
48,768,656 64,451,464 75.70 15,682,808 17,412,819 90.10
28
CITY OF PORT ARTHUR
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2001
Port Arthur Firemen rs Relief and Retirement Fund (Fund)
Plan Description. The fund is established pursuant to the Texas Local Fire Fighters Retirement Act
(TELFRA). TELFRA provides for a Board of Trustees to administer a single-employer defined
benefit pension plan covering all City firefighters. The plan is an independent entity for financial
reporting purposes. The Board (composed of the Mayor and the Director of Finance as ex-officio
Trustees, three firemen elected by a majority vote of firemen, and two citizens who must be appointed
unanimously by the first five trustees), is subject to administrative supervision by the State Firemen's
Pension Commissioner.
The City does not hold title to any of the Fund's assets, have right to any surpluses, or responsibility
for any deficits. The City's contribution rate is set by the City Charter to be the same as the rate
required by the TMRS. The fund issues its own stand alone financial statements, which can be
obtained from the fund's office at P.O. Box 1089, Port Arthur, Texas 77641.
The table belo~v summarizes the membership of the fund at December 31, 2000.
Retirees and beneficiaries currently receiving
benefits and terminated employees entitled to
benefits but not yet receiving them
Current Employees
Fully vested active employees
Partially vested active employees
Nonvested active employees
December 31, December 31,
2000 1999
54 53
45 44
26 25
3~3 3_(6
TOTAL 158 158
All active firefighters of the City are members of the Fund. The Fund provides service retirement,
death, disability, and withdrawal benefits. These benefits vest after 20 years of credited service.
Employees may retire at age 50 with 20 years of service. Vested termination benefits on a deferred
basis are available for firefighters who terminate employment with 20 or more years of service but
who have not attained age 50 at their date of termination. A firefighter who becomes disabled is
eligible for disability benefits for 30 months. After 30 months, the board may continue, terminate or
reduce benefits. In the event of the death ofa firefighter in active service, the firefighter's spouse will
receive a monthly benefit. Each unmarried child will also receive benefits until 18 (22 if full-time
student or for life if disabled). The sum of all benefits payable may not exceed the service retirement
benefit to which the firefighter was entitled as the date of his/her death. A firefighter at age of 53 and
with at least 20 years of service may enroll in Deferred Retirement Option Plan (DROP) which
allows the participant to receive certain amount of benefits in lump sum payments. For the plan in
effect December 31, 2000, the Fund required fire fighters to contribute 10% of pay and 12.08% was
contributed by the City.
The following trend information is disclosed as required.
29
ClTx/O]~ POINT ARTHUR
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2001
Unfunded
Accrued Annual AAL
Actuarial Value Actuarial Percentage Unfunded Covered As a Percentage
Year of Assets Liability (AAL) Funded AAL Payroll of Covered Payroll
1991 Not Calculated
1992 $ 10,247,807 $ 13,080,678 78.34 % $ 2,832,871 $ 2,968,068 95.44 %
1993 10,479,052 13,492,526 77.67 3,013,474 3, ! 41,459 95.93
1994 Not Calculated
1995 12,375,445 16,765,425 73.80 4,389,980 3,666,121 ! 19.74
1996 Not Calculated
1997 16,449,900 20,683,160 79.50 4,233,260 3,724,290 113.70
1998 Not Calculated
1999 20,032,076 24,374,083 82.20 4,342,007 4,114,300 105.50
2000 Not Calculated
The information presented in the required schedules was determined as part of the actuarial valuations
at the dates indicated. Additional principal information as of the latest actuarial valuations was as
follows:
Valuation Date
Actuarial cost method
Asset valuation method
Amortization method
Remaining amortization period
Actuarial assumptions:
Investment rate of return
Increase in payroll
Assumed retirement age
12/31/1995 12/31/1997 12/31/1999
Aggregate Entry Age
Average book 3 yr smoothed 5 yr smoothed
& market market market
Level percent open
20 years 20.2 years 20 years
8% 8% 8%
3% 4% 4%
55 53 53
H. CLOSURE AND POSTCLOSURE CARE COSTS
State and federal la~vs and regulations require that the City place a final cover on its landfill when
closed and perform certain maintenance and monitoring functions at the landfill site for thirty years
after closure. In addition to operating expenses related to current activities of the landfill, an expense
provision and related liability are being recognized based on the future closure and postclosure care
costs that will be incurred near or after the date the landfill no longer accepts waste. The recognition
of these landfill closure and postclosure care costs is based on the amount of the landfill used during
the year. The estimated liability for landfill closure and postclosure care cost has a balance of
$1,962,679 as of September 30, 2001, which is based on 33% usage (filled) of the landfill. It is
estimated that an additional $ 4,017,784 will be recognized as closure and postclosure care expenses
between the date of the balance sheet and the date the landfill is expected to be filled to capacity
(2035). The estimated total current cost of the landfill closure and postclosure care $ 5,980,463 is
based on the amount that would be paid if all equipment, facilities, and services required to close,
monitor, and maintain the landfill were acquired as of September 30, 2001. However, the actual cost
of closure and postclosure care may be higher due to inflation, changes in technology, or changes in
30
CITY OF PORT ARTHUR
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2001
landfill laws and regulations. The City was required by state and federal laws and regulations to meet
financial assurance regulations by April 9, 1997, with updates annually. The City met these
requirements and is in full compliance with the financial assurance requirements.
I. CONSTRUCTION COMMITMENTS
As of September 30, 2001, the City had the following commitments with respect to unfinished capital
projects:
Capital Proiect
Remaining
commitment
Expected date of
completion-
Sewer Rehabilitation Engineering
Waterline replacement engineering
Water tank construction and engineering
1,085,339 2002
1,032,296 2003
897,415 2002
J. PRIOR PERIOD ADJUSTMENT
An adjustment to beginning retained earnings was made in the Solid Waste Fund. The Retained
Earnings was reduced $571,277 to correct the accrued liability for accrued landfill closure cost.
K. CONTINGENCIES
The City of Port Arthur has been notified by the United States Environmental Protection Agency
(EPA) that it is a potential responsible party (PRP) with respect to environmental impacts identified at
two sites in Port Arthur, Texas. Several meetings have been held with the EPA and the other
identified PRPs, and a remedial investigation has recently commenced. The City vigorously
contested this PRP designation. The EPA has reconsidered its position with regards to one site, and
does not currently consider the City to be a PRP at this time. The second site, a former landfill
location, and is currently undergoing a remedial investigation. It is not possible at this time to
reasonably estimate the amount of the environmental remediation costs and the City's share, if any, of
these liabilities that would be material to the City's financial statements.
L. SUBSEQUENT EVENTS
On December 12, 2000, the City Council adopted Ordinance 00-72 which dissolves the Park Central
Municipal Utility District effective September 30, 2001. On that date, the assets and liabilities of the
District will be assumed by the City. At September 30, 2001 the bonded debt of the district was
$11,209,507. This debt was refunded by the City on October 16, 2001.
The City anticipates the sale of $17 million in Certificates of Obligation on February 5, 2002. These
funds will be used for major water system improvements, including new transmission mains and
waterline replacement. The City will also issue $15 million in Certificates of Obligation on that date,
thxough the Texas Water Development Board. These funds are to be used for the replacement of
sanitary sewer lines pursuant to a recently completed Sanitary Sewer Evaluation Survey.
31
GENERAL FUND
Accounts for resources traditionally associated with governments, which are
not required to be accounted for in another fund
CITY OF PORT ARTHUR, TEXAS
GENERAL FUND
BALANCE SHEET
SEPTEMBER 30, 2001
EXHIBIT 8-1
ASSETS
Cash
Investments
Due from other funds
Receivables: Taxes
Less: allowance for do,ubtful accounts
Notes
Accounts
Less: allowance for doubtful accounts
Federal and state grants
Prepaid items
Total assets
1,784,597
5,100,000
4,008,330
2,409,477
(361,421)
179,601
3,762,O64
(3,34O,O67)
53,903
49,409
13,645,893
LIABILITIES AND FUND BALANCE
Liabilities:
Accrued payroll
Accounts payable
Other liabilities
Compensated absences
Deferred revenues - property taxes
Total liabilities
Fund balance:
Reserved for:
Encumbrances
Unreserved, undesignated
Total fund balance
Total liabilities and fund balance
864,111
190,210
59,770
475,684
1,918,233
3,508,008
81,633
10,056,252
10,137,885
13,645,893
See accompanying notes to financial statements.
35
CITY OF PORT ARTHUR, TEXAS
GENERAL FUND
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
BUDGET (GAAP BASIS) AND ACTUAL
FOR THE YEAR ENDED SEPTEMBER 30, 2001
EXHIBIT B-2
Budget Actual
Revenues:
Taxes:
Property $ 4,788,310
Gross receipts 2,511,200
Sales and use 4,200,000
Other taxes 454,000
Penalties and interest 220,000
Industrial payments 12,501,404
Licenses and permits 253,500
Fees, services and sales 387,800
Fines and forfeitures 666,000
Intergovernmental 531,000
Interest 640,000
Other 220,000
Total revenues
Expenditures:
Current:
General government
Administration 1,366,981
City secretary 538,085
City attorney 314,500
Finance 1,239,330
Personnel 476,957
Planning and community development 547,902
Community services 1,259,395
Parks and recreation 1,648,460
Library 834,767
Public safety
Police 9,457,940
Fire 7,050,402
Health and welfare 554,791
Public works 6,173,145
Total expenditures
Excess of revenues over expenditures (4,089,441)
Other financing sources (uses):
Operating transfers in 4,675,996
Operating transfers out (1,277,900)
Total other financing sources (uses) 3,398,098
Excess (deficiency) of revenues and
other financing sources over
expenditures and other uses $ (691,345/
Fund balance, beginning of year
Fund balance, end of year
Variance
Favorable
(Unfavorable)
$ 4,895,872 $ 107,562
3,101,028 589,828
4,355,136 155,136
473,396 19,396
203,493 (16,507)
12,503,378 ' 1,974
351,142 97,642
535,569 147,769
641,109 (24,891)
744,411 213,411
616,587 (23,413)
121,325 (98,675)
27,373,214 28,542,446 1,169,232
1,166,808 200,173
479,663 58,422
291,983 22,517
1,163,516 75,814
453,180 23,777
587,870 (39,968)
1,223,978 35,417
1,612,583 35,877
833,911 856
9,519,720 (61,780)
6,959,869 90,533
524,646 30,145
5,669,952 503,193
31,462,655
30,487,679 974,976
(1,945,233) 2,144,208
4,436,453 (239,543)
(1,292,900) {15,000)
3,143,553 (254,543)
1,198,320
8,939,565
$ 10,137,885
$ 1,889,665
See accompanying notes to financial statements.
36
SPECIAL REVENUE FUNDS
Special Revenue Funds are used to account for resources which may be used
only for purposes specified by law or City Council. A brief description of each
fund reported as a Special Revenue Fund follows:
Health Grant Fund
Accounts for grants received from the State of Texas to provide health
care services.
Library ~pecial Fund
Accounts for revenues generated by the City's public
revenues are set aside for the library's use.
library. These
Golf Course Fund
Accounts for funds derived from the operation of the City's public golf
course. These funds are designated for improvements to the golf course.
Court Technology Fund
Accounts for funds received from a portion of municipal court fines
dedicated by State law, to technology acquisition by the court.
Community Development Fund
Accounts for revenues received through the Community Development
Block Grant program.
UDAG Grant Fund
Accounts for loans made from funds received
D__evelopment Action Grant program.
through the Urban
Police Special Fund
Accounts for assets seized by the City's police department as the result of
drug enforcement arrests. These assets are forfeited to the City to be
used to fund specific types of expenditures for the police department.
HOME Grant Fund
Accounts for grants received from the federal government,
through the State of Texas under the HOME program.
passed
Home Purchase Program
Accounts for funds set aside to provide housing for low to moderate
income families. Funding for this program is through the City's
Community Development Block Grant program.
Law Enforcement Fund
Accounts for federal funds received under the Local Law Enforcement
Block Grant.
Rental Rehabilitation Fund
Accounts.for funds received to rehabilitate qualified private residential
rental property through the Department of Housing and Urban
Development's Rental Rehabilitation grant program.
Revolving Loan Fund
Accounts for the proceeds from repayments of loans made from
Community Development Block Grant funds. These funds are restricted
to make additional loans to stimulate job development by the small
business sector of the City's economy.
Housing Programs Fund
Accounts for funds granted the City from the Port Arthur Housing
Finance Corporation. These funds are to be used to finance programs to
provide affordable housing in the City.
Assessment Projects Fund
Accounts for a special assessment levied on property owners. Current
activity in this fund is limited to payments of property owners to the
City. The project funded by these assessments was completed several
years ago using funds available in the City's fund balances.
CITY OF PORT ARTHUR, TEXAS
SPECIAL REVENUE FUNDS
COMBINING BALANCE SHEET
SEPTEMBER 30. 200'1
ASSETS
Cash
Investments
Receivables:
Accounts
Less: allowance for bad debt
Special assessments
Federal and state grants
Due from developers
Health Library Golf Court Community UDAG Police
Grant Special Coume Technology Development Grant Special
Fund Fund Fund Fund Fund Fund Fund
$ $ 106,727 $ 74,535 $ 34.987 $ $ $ 148,821
1,398.953
(263.491)
2.628,381
212.656 1,288 677.942
2.607.391
Total assets $ 212,656 $ 108,015 $ 74,535 $ 34,987 $ 1,813,404 $ 5,235,772 $ 148,821
LIABILITIES AND FUND BALANCES
Accrued payroll
Accounts payable
Other liabilities
Due to other funds
Compensated absences
Deferred revenues
Total liabilities
Fund balances:
Unreserved. undesignated
$ 27,383 $ $
1.776
Total fund balances
245,668
20,417
295,244
(82,588)
$ $
1,680
16.442 $ $
12.185
12.575 51,117
628.201
8.539
1.135.462 5.235,772
1,680 1,813,404 5,235,772 51,117
(82,588)
108.015 74,535 33.307
108.015 74,535 33.307
97,704
97,704
Totalliabilities and
~nd balances
$ 212,656 $ 108,015 $ 74.535 $ 34,987 $
1,813,404 $ 5,235,772 $ 148,821
See accompanying notes to financial statements.
40
EXHIBIT C-1
Pt. Arthur
Home Home Law Rental Revolving Housing Assessment Municipal
Grant Purchase Enforcement Rehabgltatlon Loan Programs Projects Nonprofit
Fund Fund Fund Fund Fund Fund Fund Corporation
$ 79.062 $ 23.820 $ 154.364 $ 35.817 $ 79,378
$ 243.364 $ 1,173 $ 23,085 $ 1,005.133
400,000 400,000
42.772 226.132 268,214 130.312
18.471
$ 140,305 $ 23.820 $ 154.364 $ 261.949 $ 347,592
9,917 4,704.681
(87,096) (350,587)
269,225 269,225
910,'357
2.607.391
$ 373,676 $ 183,302 $ 433.002 $ 9.546,200
$ $ $ $ $
- $
2,157
1.048
17,582 14.061 226.132 268,214
$ $ $ 43.825
171 64.345 82.314
8,043 5.769 78,552
169.681 1.043.550
28,956
130,312 9.917 7.037.452
19,739 15,109 226.132 268,214 138.526 169,681 80.031 8.314,649
120.566 8.711 154,364 35,817 79.378 235.150 13.621 352,971 1.231,551
120,566 8.711 154,364 35,817 79.378 235.150 13.621 352,971 1,231.551
$ 140,305 $ 23,820 $ 154.364 $ 261.949 $ 347,592 $ 373,676 $ 183,302 $ 433,002 $ 9,546,200
41
CITY OF PORT ARTHUR, TEXAS
SPECIAL REVENUE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
FOR THE YEAR ENDED SEPTEMBER 30, 2001
Health Library Golf Court Community UDAG
Grant Special Course Technology Development Grant
Fund Fund Fund Fund Fund Fund
Fees, services and sales $ $ - $ 71,009 $ $ - $
Fines and forfeitures 23,258
Intergovernmental 854,776 20,038 1,630,496
Donations and gifts 4,310
Interest 875 4,185 3,525 848
Program income 31,613
Total revenues 855,651 28,533 74,534 24,106 1,662,109
Expenditures:
Current:
General government
City secretary
Culture and recreation
Community development
Public safety
Health and welfare
Total expenditures
Excess (deficiency) of revenues
over expenditures
Other financing sources (uses)
Operating transfers in
Operating transfers out
Total other financing sources (uses)
Excess (deficiency) of revenues over
expenditures and other financing
sources (uses)
Fund balances, beginning of year
Fund balances, end of year
859,222
859,222
(3,571)
26,007 3,900
Police
Special
Fund
30,932
5,975
36,907
2,040
791,926
26,007 3,900 2,040 791,926
2,526 70,634 22,066 870,183
33,843
33,843
45,000
(25,000) (136,089) (915,183)
(25,000) (136,089) (870,183)
3,064
(3,571) (22,474) (65,455) 22,066
(79,017) 130,489 139,990 11,241
$ (82,588) $ 108,015 $ 74,535 $ 33,307
(1,662,109)
- $
3,064
94,640
$ 97,704
See accompanying notes to financial statements.
42
EXHIBIT C-2
Pt. Arthur
Home Home Law Rental Revolving Housing Assessment Muncipial
Grant Purchase Enforcement Rehabilitation Loan Program Projects Nonprofit
Fund Fund Fund Fund Fund Fund Fund Corporation
Total
125,987
9,379
135,366
$
147,247
5,443
$ $ $ $ $
4,340 10,607 8.303 1,046 24,251
22,901 22,280 12.796 250,344
$ 71.009
54,190
2,778,544
4,310
69,398
349,313
152,690 27,241 32.887 21.099 1,046 274.595 3,326,764
248,713
248,713
8,805
36,904 22,714
8,805 36,904 22,714
408.111
408.111
2,040
29,907
1,508,368
42,648
859,222
2,442,185
(113.347)
143,885 (9,663) 10,173 21,099
1,046 (133,516)
884,579
(471.487) (45,000)
486.487
531,487
(1,592,759)
(471.487) (45,000)
486,487 (1,061,272)
(113,347)
233,913
120,566 $
8,711
8,711 $
143,885 (481,150) (34,827) 21,099 1,046
10,479 516,967 114,205 214,051 12,575
352,971
(176,693)
1,408,244
154,364 $ 35,817 $ 79,378 $ 235,150 $ 13,621 $ 352,971 $ 1,231,551
43
CITY OF PORT ARTHUR, TEXAS
SPECIAL REVENUE FUNDS
SCHEDULE OF REVENUES AND EXPENDITURES
BUDGET (GAAP BASIS) AND ACTUAL
FOR THE YEAR ENDED SEPTEMBER 30, 2001
LIBRARY SPECIAL FUND
Revenues:
Intergovernmental
Donations and gifts
Interest
Total revenues
Expenditures:
General government
Culture and recreation
Other financing uses:
Operating transfers out
Excess (deficiency) of revenues over other
financing uses
GOLF COURSE FUND
Revenues:
Fees, services and sales
Interest
Total revenues
Expenditures:
General government
Culture and recreation
Other financing uses:
Operating transfers out
Excess (deficiency) of revenues over other
financing uses
POLICE SPECIAL FUND
Revenues:
Fines and forfeitures
Interest
Total revenues
Expenditures;
Public safety
Excess (deficiency) of revenues
over expenditures
MUNICIPAL COURT TECHNOLOGY FUND
Fines and forfeitures
Interest
Total revenues
Expenditures:
General government
Excess (deficiency) of revenues
over expenditures
Budget
Actual
$ $ 20,038 $
3,000 4,310
7,000 4,185
10,000 28,533
35,953 26,007
25,000 25,000
$ (50,953) $ (22,474) $
$ 80,000 $ 71,009 $
4,000 3,525
84,000 74,534
3,900 3,900
143,900 136,089
$ (63,800) $ (65,455) $
$ 37,000 $ 30,932 $
5,600 5,975
42,600 36,907
49,500 33,843
$ (6,go0) $ 3,064 $
$ 15,000
1,000
16,000
20,500
44
23,258
848
24,106
2,040
$ (4,500) $ 22,066 $
EXHIBIT C-3
Favorable
(Unfavorable)
20,038
1,310
(2,815)
18,533
9~946
18,533
(8,991)
(475)
(9,466)
(7, 811 )
(17,277)
(6,068)
375
(5,693)
15,657
9,964
8,258
(152)
8,106
18,460
26,566
DEBT SERVICE FUND
To account for all transactions reflecting revenue collected and expenditures
made for the payment of interest and principal on all general long-term debt,
other than that issued for and serviced by a governmental enterprise activity.
CITY OF PORT ARTHUR, TEXAS
DEBT SERVICE FUND
BALANCE SHEET
SEPTEMBER 30, 200'1
EXHIBIT D-1
ASSETS
Cash
Investments
Total assets
LIABILITIES AND FUND EQUITY
Liabilities:
Accounts payable
Total liabilities
Fund balance:
Reserved for debt service
Total liabilities and fund balance
$ 436,021
500,000
$ 936,021
$ 9,550
9,550
926,471
$ 936,021
See accompanying notes to financial statements.
47
CITY OF PORT ARTHUR, TEXAS
DEBT SERVICE FUND
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
BUDGET (GAAP BASIS) AND ACTUAL
FOR THE YEAR ENDED SEPTEMBER 30, 2001
EXHIBIT D-2
Revenues:
Taxes
Interest
Total revenues
Expenditures:
Principal retirement
Interest payments
Lease payments
Fiscal agent costs
Payments to Park Central MUD
Total expenditures
Excess (deficiency) of revenues
over expenditures
Other financing sources (uses): Operating transfers in
Total other financing sources (uses)
Excess revenues and other financing
sources over expenditures
Fund balance, beginning of year
Fund balance, end of year
Budget
$ 3,921,470
100,000
4,021,470
1,610,000
2,221,735
210,175
4,200
409,500
4,455,610
(434,140)
700,000
700,000
$ 265,860
Actual
Variance
Favorable
(Unfavorable)
3,835,614 $ (85,856)
100,500 500
3,936,114 (85,356)
1,605,000 5,000.
2,218,978 2,757
210,175
5,906 (1,706)
380,152 29,348
4,420,211 35,399
(484,097) (49,957)
700,000
700,000
215,903 $ (49,957)
710,568
926,471
See accompanying notes to financial statements.
48
CAPITAL PROJECTS FUND
Accounts for revenues restricted to the construction or acquisition of large
projects which may take more than one year to complete.
CITY OF PORT ARTHUR, TEXAS
CAPITALPROJECTSFUND
BALANCESHEET
SEPTEMBER30,2001
EXHIBIT E-'I
ASSETS
Cash
Investments
Due from other funds
Receivables:
Federal and state grants
Total assets
$ 778,648
552,008
566,378
34,565
$ 1,931,599
LIABILITIES AND FUND BALANCE
Liabilities:
Accounts payable
Total liabilities
Fund balance:
Reserved for construction
Total liabilities and fund balance
$ 184,491
184,491
1,747,108
$ 1,931,599
See accompanying notes to financial statements.
51
CITY OF PORT ARTHUR, TEXAS
CAPITAL PROJECTS FUND
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
FOR THE YEAR ENDED SEPTEMBER 30, 2001
EXHIBIT E-2
Revenues:
Intergovernmental $ 432,660
Interest 28,693
Miscellaneous 7,897
Total revenues
Expenditures:
Capital outlay
Excess (deficiency) of revenues over
expenditures
Other financing sources (uses)
Operating transfers in
Total other financing sources (uses)
Excess (deficiency) of revenues and ether financing
sources (use) over expenditures
Fund balance, beginning of year
Fund balance, end of year
469,250
1,952,494
(1,483,244)
161,089
161,089
(1,322,155)
3,069,263
$ 1,747,108
See accompanying notes to financial statements.
52
ENTERPRISE FUNDS
Enterprise Funds account for operations that are financed and operated in
a manner similar to private business enterprises where the intent is that
the cost of providing the services to the public will be financed prim. arily
through fees 'charged for those services. Enterprise Funds are also used
when it is important to consider the maintenance of capital in managing
an activity.
Water and Sewer Fund
Accounts for revenues and expenses generated by the operation of the City's
water and sewer utility.
Solid Waste Fund
Accounts for the revenues and expenses related to the collection and disposal
of solid waste by the City. These activities include the operation of the City's landfill.
Transit System Fund
Accounts for the operations of the City's bus service. This fund is heavily
subsidized by Federal and State Grants and contributions from the City's General
Fund.
CiTY OF PORT ARTHUR, TEXAS
ENTERPRISE FUNDS
COMBINING BALANCE SHEET
SEPTEMBER 30, 200t
EXHIBIT F-I
ASSETS
Current assets:
Cash
Receivables: Accounts
Less: allowance for doubtful accounts
Federal and state grants
Other
Inventories
Total current assets
Fixed assets:
Land and buildings
Improvements
Equipment
Construction in progress
Total
Less accumulated depreciation
Fixed assets, net
Total assets
LIABILITIES AND FUND EQUITY
Liabilities:
Accrued payroll
Accounts payable
Due to other funds
Accrued landfill closure costs
Refundable deposits
Tax anticipation notes
Compensated absences
Total liabilities
Fund equity:
Contributed capital
Municipality
Property owners
Governmental agencies
Total contributed capital
Retained earnings (accumulated deficit):
Reserved for construction
Unreserved
Total retained earnings (accumulated deficit)
Total fund equity (deficit)
Total liabilities and fund equity
Water Solid Transit
and Sewer Waste System
Fund Fund Fund
Total
$ $ 319 $ 319
4,228,466 1,462,706 5,691,172
(1,307,063) (189,112) (1,496,175)
274,369 274,369
47,559 54,454 102,013
299,280 39,835 339,115
3,268,242 1,328,048 314,523 4,910,813
5,902,695 1,132,759 7,035,454
45,797,775 9,799 45,807,574
59,899,239 1,239,983 2,844,403 63,983,625
831,964 831,964
112,431,673 1,239,983 3,986,961 117,658,617
(35,785,404) (1,146,057) (3,279,911) (40,211,372)
76,646,269 93,926 707,050 77,447,245
$ 79,914,511 $ 1,421,974 $ 1,021,573 $ 82,358,058
178,957 $ 74,041 $ 33,625 $ 286,623
192,946 14,539 5,944 213,429
3,134,460 993,729 396,698 4,524,887
1,962,679 1,962,679
697,351 697,351
325,001 325,001
655,913 254,085 93,389 1,003,387
4,859,627 3,624,074 529,656 9,013,357
57,610,133 1,267,572 332,061 59,209,766
50,400 50,400
27,155,872 3,940,778 31,096,650
84,816,405 1,267,572 4,272,839 90,356,816
3,195,745 3,195,745
(12,957,266) (3,469,672) (3,780,922) (20,207,860)
(9,761,521) (3,469,672) (3,780,922) (17,012,115)
75,054,884 (2,202,100) 491,917 73,344,701
$ 79,914,511 $ 1,421,974 $ 1,021,573 $ 82,358,058
See accompanying notes to financial statements
55
CiTY OF PORT ARTHUR, TEXAS
ENTERPRISE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES
IN FUND EQUITY FOR THE YEAR ENDED SEPTEMBER 30, 2001
Exhibit F-2
Operating revenues:
Fees, services and sales
Total operating revenues
Operating expenses:
Personnel services
Other operating expenses
Depreciation
Loss on uncollectible accounts
Total operating expenses
Operating income (loss)
Non-operating revenues (expenses):
Interest revenue
Interest expense
Payments to municipal utility district
Federal, state and local grants
Gain (loss) on sale of assets
Total non-operating revenues (expenses)
Net income (loss) before operating transfers
Operating transfers in
Operating transfers out
Water Solid Transit
and Sewer Waste System
Fund Fund Fund
Total
$ 11,592,056 $ 4,924,879 $ 198,382 $ 16,715,317
11,592,056 4,924,879 198,382 16,715,317
4,856,655 2,023,563 838,863 7,719,081
4,220,124 2,233,309 493,848 6,947,281
2,190,151 33,440 317,737 2,541,328
27,075 13,310 40,385
11,294,005 4,303,622 1,650,448 17,248,075
298,051 621,257 (1,452,066) (532,758)
104,672 104,672
(17,691) (17,691)
(997,684) (997,684)
308,928 996,933 1,305,861
(383) (877) (1,260)
(584,467) (17,691) 996,056 393,898
(286,416) 603,566 (456,010) (138,860)
330,000 330,000
(3,455,570) (600,400) (32,400) (4,088,370)
(3,125,570) (600,400) (32,400) (3,758,370)
Net income (loss) (3,411,986)
Retained earnings, (accumulated deficit) beginning
of year, as previously reported (6,349,535)
Prior period adjustment, Note J
Retained earnings, (accumulated deficit)
beginning of year, restated (6,349,535)
Retained earnings (accumulated deficit), end of year (9,761,521)
Contributed capital, beginning of year 84,816,405
Contributed capital, end of year 84,816,405
Fund equity (deficit), end of year $ 75,054,884
3,166 (488,410) (3,897,230)
(2,901,561) (3,292,512) (12,543,608)
(571,277) (571,277)
(3,472,838) (3,292,512) (13,114,885)
(3,469,672) (3,780,922) (17,012,115)
1,267,572 4,272,839 90,356,816
1,267,572 4,272,839 90,356,816
$ (2,202,100) $ 491,917 $ 73,344,701
See accompanying notes to financial statements.
56
CITY OF PORT ARTHUR, TEXAS
ENTERPRISE FUNDS
COMBINING STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED SEPTEMBER 30, 2001
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
Net cash provided by operating activities
Cash flows from capital and related financing activities
Payment on tax anticipation notes
Interest paid
Capital grants
Proceeds from sale of assets
Payments to municipal uffiity district
Acquisition and construction of capi!al assets
Net cash flows from capital and related financing activities
Cash flows from investing activities:
Proceeds from sale of investments
Interest revenue
Net cash flows from investing activities
Cash flows from non-capital and related financing activities
Operating grants
Operating transfers in
Operating transfers out
Net cash flows from non-capital and related financing activities
Net increase (decrease) in cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year
RECONCILIATION OF OPERATING INCOME TO NET CASH
PROVIDED BY OPERATING ACTIVITIES
Operating income (loss)
Adjustments to reconcile operating income to
net cash provided by operating activities:
Depreciation
Provision for loss on accounts receivable
Change in assets and liabilities:
Accounts receivable
Other receivables
Inventories
Accrued payroll
Accounts payable
Due to other funds
Accrued landfill closure costs
Refundable deposits
Compensated absences
Total adjustments
Net cash provided by operating activities
See accompanying notes to financial statements,
EXHIBIT F-3
Water Solid Transit
and Sewer Waste System
Fund Fund Fund
4,204,729 $ 780,736 $ (960,216)
(150,000)
(17,691)
Total
$ 4,025,249
(150,000)
(17,691)
308,928 308,928
2,402 2,402
(997,684) (997,684)
(1,108,165) (12,645) (4,498) (1,125,308)
(1,794,519) (180,336) (4,498) (1,979,353)
570,000 570,000
104,672 104,672
674,672 674,672
996,933 996,933
330,000 330,000
(3,455,570) (600,400) (32,400) (4,088,370)
(3,125,570} (600,400) 964,533 (2,761,437)
(40,688) (181) (40,669)
40,688 500 41,188
$ $ 319 $ 319
298,051 $ 621,257 $ (1,452,066/ $ (532,758)
2,190,151 33,440 317,737 2,541,328
27,075 15,311 42,386
12,524 (136,822) (124,298)
44,972 497 61,065 106,534
(24,283) (4,685) (28,968)
(13,121) (244) 2,355 (11,010)
50,811 (21,691) (9,973) 19,147
1,634,940 113,424 139,154 1,887,518
180,329 180,329
19,409 19,409
(35,800) (24,765) (13,803) (74,368)
3,906,678 159,479 491,850 4,558,007
4,204,729 $ 780,736 $ (960,216) $ 4,025,249
57
CITY OF PORT ARTHUR, TEXAS
WATER AND SEWER FUND
SCHEDULE OF REVENUES AND EXPENSES
BUDGET AND ACTUAL (BUDGET BASIS)
FOR THE YEAR ENDED SEPTEMBER 30, 2001
EXHIBIT F-4
Actual
Fees, services and sa~es $ 11,592,056 $
Total operating revenues
11,592,056
Operating expenses:
Personnel services 4,856,655
Other operating expenses 4,220,124
Depreciation 2,190,151
Loss on uncollectible accounts 27,075
Capital outlay
Total operating expenses
Net income (loss) before non-operating
revenue (expenses)
Non-Operating revenues (expenses)
and operating transfers
Interest revenue
Payments to municipal utility district
Intergovernmental
Gain on sale of assets
Operating transfem in
Operating transfers out
Total
Net Income (loss)
Adjustment Actual
to on Variance
Budgetary Budgeta~ Favorable
Basis Basis Budget (Unfavorable)
$ 11,592,056 $ 12,170,200 $ (578,144)
11,592,056 12,170,200 (578,144)
(136,314)
(2,190,151)
(27,075)
112,870
4,856,655 4,881,689 25,034
4,083,810 3,997,290 (86,520)
112,870 149,100 36,230
11,294,005 (2,240,670) 9,053,335 9,028,079 (25,256)
298,051 2,240,670 2,538,721 3,142,121 (603,400)
104,672 (104,672)
(997,684) (997,684) (1,045,265) 47,581
308,928 (308,928)
(383) 2,786 2,403 2,403
330,000 330,000 330,000
(3,455,570) (3,455,570) (3,455,570)
(3,710,037) (410,814) (4,120,851) (4,170,835) 49,984
$ (3,411,986) $
1,829,856 $ (1,582,130) $ (1,028,714) $ (553,416)
58
CITY OF PORT ARTHUR, TEXAS
SOLID WASTE FUND
SCHEDULE OF REVENUES AND EXPENSES
BUDGET AND ACTUAL (BUDGET BASIS)
FOR THE YEAR ENDED SEPTEMBER 30, 2001
EXHIBIT F-5
Actual
Adjustment Actual
to on Variance
Budgetary Budgetary Favorable
Basis Basis Budget (Unfavorable)
Operating revenues:
Fees, services and sales
$ 4,924,879 $ $ 4,924,879 $ 4,848,000' $ 76,879
Total operating revenues
Operating expenses:
Personnel services
Other operating expenses
Depreciation
Capital outlay
Loss on uncollectible accounts
Total operating expenses
Net income (loss) before non-operating
revenues (expenses)
Non-Operating revenues (expenses)
and operating transfers
Principal and interest payments
Operating transfers out
Total
4,924,879 4,924,879 4,848,000 76,879
2,023,563 2,023,563 2,159,360 135,797
2,233,309 (180,994) 2,052,315 2,018,445 (33,870)
33,440 (33,440)
12,645 12,645 110,000 97,355
13,310 (13,310)
4,303,622 (215,099) 4,088,523 4,287,805 199,282
621,257 215,099 836,356 560,195 276,161
(17,691 ) (150,000) ( 167,691 ) (167,691 )
(600,400) (600,400) (600,400)
(618,091 ) (150,000) (768,091) (768,091)
Net Income (loss)
3,166 $ 65,099 $ 68,265 $ (207,896) $ 276,161
59
TRANSIT SYSTEM FUND
SCHEDULE OF REVENUES AND EXPENSES
BUDGET AND ACTUAL (BUDGET BASIS)
FOR THE YEAR ENDED SEPTEMBER 30, 2001
Operating revenues:
Fees, services and sales
Total operating revenues
Actual
Adjustment Actual
to on Variance
Budgetary Budgetary Favorable
Basis Basis Budget (Unfavorable)
198,382 $ $ 198,382 $ 165,000 .$ 33,382
198,382 198,382 165,000 33,382
Operating expenses:
Personnel services 838,863
Other operating expenses 493,848
Depreciation 317,737
Capital outlay
Total operating expenses
Operating income (loss)
Non-Operating revenues (expenses)
and operating transfers
Federal and state grants
Gain on sale of assets
Operating transfers out
Total
Net income (loss)
838,863 883,650 44,787
493,848 408,575 (85,273)
(317,737)
4,498 4,498 308,365 303,867
1,650,448 (313,239) 1,337,209 1,600,590 263,381
(1,452,066) 313,239 (1,138,827) (1,435,590) 296,763
996,933 996,933 1,219,500
(877) 877
(32,400) (32,400) (32,400)
(222,567)
963,656 877 964,533 1,187,100 (222,567)
(488,410) $ 314,116 $ (174,294) $ (248,490) $ 74,196
60
INTERNAL SERVICE FUNDS
Internal Service Funds account for the financing of goods and services
provided, by one City department to other departments on a cost
reimbursement basis.
Equipment Services Fund
Accounts for the cost of maintaining the City's fleet of vehicles.
Employee Benefit Fund
Accounts for the costs of providing employee healthcare,
compensation, and other benefit programs to the City's employees.
worker's
General Liability Fund
Accounts for the City's risk management program. Claims arising from torts
and other statutory causes of action against the City are paid from this fund.
Equipment Replacement Fund
Accounts for the cost of replacing equipment used in the operations of the
City.
CITY OF PORT ARTHUR, TEXAS
INTERNAL SERVICE FUNDS
COMBINING BALANCE SHEET
SEPTEMBER 30, 2001
ASSETS
Current assets:
Cash
Investments
Due from other funds
Other receivables
Inventories
Prepaid expense
Equipment
Se~ices
Fund
EXHIBIT G-1
Total current assets
Fixed assets:
Buildings and improvements
Equipment
Total
Less accumulated depreciation
Fixed assets, net
Employee
Benefits
Fund
General
Liability
Fund
LIABILITIES AND FUND EQUITY
Liabilities:
Accrued payroll
Accounts payable
Due to other funds
Claims payable
Tax anticipation notes
Compensated absences
Equipment
Replacement
Fund
Total liabilities
Fund equity:
Contributed capital
Retained earnings (accumulated deficit)
Unreserved
100 $ 671,212 $ 287,551 $ 831,244 $ 1,790,107
1,000,000 1,000,000
993,729 168,058 1,161,787
193,326 600 193,926
61,015 61,015
135,000 135,000
61,115 1,993,267 287,551 1,999,902 4,341,835
878,663 878,663
262,043 12,023,237 12,285,280
1,140,706 12,023,237 13,163,943
(980,580) (6,870,408) (7,850,988)
160,126 5,152,829 5,312,955
Total fund equity (deficit)
Total liabilities and fund equity
$ 221,241 $ 1,993,267 $ 287,551 $ 7,152,731 $ 9,654,790
22,150 $ 50 $ $ $ 22,200
70,630 314 70,944
168,058 168,058
641,251 686,220 1,327,471
649,999 649,999
92,001 92,001
352,839 641,301 686,534 649,999 2,330,673
514,314 139,939 654,253
(645,912) 1,351,966 (398,983) 6,362,793 6,669,864
(131,598) 1,351,966 (398,983) 6,502,732 7,324,117
$ 221,241 $ 1,993,267 $ 287,551 $ 7,152,731 $ 9,654,790.
See accompanying notes to the financial statements.
63
CITY OF PORT ARTHUR, TEXAS
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND EQUITY
FOR THE YEAR ENDED SEPTEMBER 30, 2001
EXHIBIT G-2
Operating Revenues
Fees, services and sales $
Operating Expenses
Personnel services
Other operating expenses
Depreciation
Health and life insurance
Other employee benefits
Employee injury claims
Damage claims
Total operating expenses
Operating income (loss)
Non-operating revenues (expenses)
Interest revenue
Interest expense
Intergovernmental
Gain on disposal of assets
Non-operating revenues (expenses)
Net income (loss) before operating transfers
Operating transfers in
Operating transfers out
Net income (loss)
Retained earnings (accumulated deficit)
beginning of the year
Retained earnings (accumulated deficit)
end of the year
Contributed capital, beginning of year
Contributed capital, end of year
Fund equity (deficit), end of year
Equipment Employee General Equipment
Services Benefits Liability Replacement
Fund Fund Fund Fund Total
2,123,025 $ 5,433,542 $ 810 $ 1,750,135 $ 9,307.512
595,155
1,585,311
13.989
301,984
3,447,547
63,157
693,088
3,765
1,426,029
897.139
1,589,076
1,440.018
3.447,547
63,157
693,088'
78,860
78,860
2,194,455 4,505.776 78,860 1,429,794 8,208,885
(71,430) 927,766 (78,050) 320,341 1,098.627
66,720 13,484 77,952 158,156
(35,384) (35.384)
7.200 7,200
34,357 34.357
66,720 13,484 84,125 164,329
(71,430) 994.486 ~4,566) 404,456 1,262,956
833,500 833,500
(18,500) (18,500)
(18,500) 833.500 815,000
(89,930) 994,486 768,934 404,466 2,077.956
(555,982) 357,480 (1,167.917) 5,958,327 4.591,908
(645,912) 1,351,966 (398,983) 6,362.793 6,669,864
514,314 139,939 554,253
514,314 139,939 654,253
$ (131,598) $ 1,351.966 $ (398,983) $ 6,502,732 $ 7,324,117
See accompanying notes to the financial statements.
64
CITY OF PORT ARTHUR, TEXAS
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED SEPTEMBER 30, 2001
INCREASE (DECREASE) IN CASH
AND CASH EQUIVALENTS
Net cash provided by operating activities $
Cash flows from capital and related financing
activities:
Payment of tax anticipation notes
Interest paid
Proceeds from sale of capital assets
Acquisition and construction of capital.assets
Net cash (used) for capital and related
financing activities
Cash flows from investing activities:
Proceeds from sale of investments
Interest revenue
Net cash provided (used) by investing activities
Cash flows from non-capital and related
financing activities:
Intergovernmental
Operating transfers in
Net cash provided (used) for non-capital
and related financing activities
Net increase (decrease) in cash equivalents
Cash end cash equivalents at beginning of year
Cash and cash equivalents at end of year $
RECONCILIATION OF OPERATING INCOME
TO NET CASH PROVIDED BY OPERATING
ACTIVITIES
Operating income (loss) $
Adjustments to reconcile operating income to
net cash provided by operating activities:
Depreciation
Change in assets and liabilities:
Due from other funds
Other receivables
Inventories
Prepaid expenses
Accrued payroll
Accounts payable
Due to other funds
Claims for injuries and damages
Compensated absences
Total adjustments
Net cash provided (used) by operating activities $
See accompanying notes to financial statements.
Equipment Employee General Equipment
Services Benefits Liability Replacement
Fund Fund Fund Fund
Total
24,950 $ (257,577) $ (862,925) $ 1,423,107 $ 327,555
(6,450)
(300,000) (300,000)
(35,384) (35,384)
88,586 88,586
(1,915,972).. (1,922,422)
(6,450) (2,162,770) (2,169,220)
770,000 275,000 1,400,000 2,445,000
66,720 13,484 77,952 158,156
836,720 288,484 1,477,952 2,603,156
7,200 7,200
(18,500) 833,500 815,000
(18,500) 833,500 7,200 822,200
579,143 259,059 745,489 1,583,691
100 92,069 28,492 85,755 206,416
100 $ 671,212$ 287,551 $ 831,244$ 1,790,107
(71,430) $ 927,766 $ (78,050) $ 320,341 $ 1,098,627
13,989 1,426,029 1,440,018
(993,729) (77,458) (1,071,187)
(193,326) 3,125 (190,201)
5,745 5,745
294,123 294,123
2,166 (27,869) (25,703)
(1,339) (9,585) (7,545) (248,930) (267,399)
77,458 77,458
(254,957) (777,330) (1,032,287)
(1,639) (1,639)
96,380 (1,185,343) (784,875) 1,102,766 (771,072)
24,950 $ (257,577) $ . (862,925) $ 1,423,107 $ 327,555
65
CITY OF PORT ARTHUR, TEXAS
EQUIPMENT SERVICES FUND
SCHEDULE OF REVENUES AND EXPENSES
BUDGET AND ACTUAL (BUDGET BASIS)
FOR THE YEAR ENDED SEPTEMBER 30, 200'1
EXHIBIT G-4
Operating revenues:
Fees, services and sales $
Operating expenses:
Personnel services
Other operating expenses
Depreciation
Total operating expenses
Operating income (loss)
Non-operating revenues (expenses)
and operating transfers
Operating transfers out
Total
Net income (loss) $
Actual
2,123,025
595,155
1,585,311
13,989
2,194,455
(71,430)
(18,5oo)
(18,5oo)
(89,930)
Adjustment Actual
to on Variance
Budgetary Budgetary Favorable
Basis Basis Budget (Unfavorable)
$ 2,123,025 $ 1,955,000 $ 168,025
595,155 626,387 31,232
6,450 1,591,761 1,519,222 (72,539)
(13,989)
(7,539) 2,186,916 2,145,609 (41,307)
7,539 (63,891) (190,609) 126,718
(18,500) (18,500)
(18,500) (18,500)
7,539 $ 182,391) $ 1209,109) $ 126,718
66
CITY OF PORT ARTHUR, TEXAS
EMPLOYEE BENEFITS FUND
SCHEDULE OF REVENUES AND EXPENSES
BUDGET AND ACTUAL (BUDGET BASIS)
FOR THE YEAR ENDED SEPTEMBER 30, 2001
EXHIBIT G-5
Operating revenues:
Contributions for risk management
Operating expenses:
Health and life insurance
Employee injury claims
Other employee benefits
Total operating expenses
Operating income (loss)
Non operating revenues
Interest revenue
Total
Net income (loss)
Adjustment Actual
to on Variance
Budgetary Budgetary Favorable
Actual Basis Basis Bud~let (UnfavorableI
$ 5,433,542 $ $ 5,433,542 $ 5,199,700- $ 233,842
3,447,547 3,447,547 4,334,400 886,853
693,088 263,957 957,045 1,027,000 69,955
365,141 365,141 432,500 67,359
4,505,776 263,957 4,769,733 5,793,900
927,766 (263,957) 663,809 (594,200)
1,024,167
1,258,009
66,720 66,720 72,000 (5,280)
66,720 66,720 72,000 (5,280)
$. 994,486 $ (263,957) $ 730,529 $ (522,200) $. 1,252,729
67
CITY OF PORT ARTHUR, TEXAS
GENERAL LIABILITY FUND
SCHEDULE OF REVENUES AND EXPENSES
BUDGET AND ACTUAL (BUDGET BASIS)
FOR THE YEAR ENDED SEPTEMBER 30, 2001
EXHIBIT G-6
Actual
Adjustment
to
Budgetary
Basis
Actual
on
Budgetary
Basis
Bud~let
Variance
Favorable
(Unfavorable)
Operating revenues:
$ 810 $ $ 810 $ $ 810
Operating expenses:
Damage claims
Total operating expenses
Operating income (toss)
Non operating revenues
interest revenue
Operating transfers in
Total
Net income (loss)
78,860 777,330 856,190 858,500 2,310
78,860 777,330 856,190 858,500 2,310
(78,050) (777,330) (855,380) (858,500)
3,120
13,484
833,500
13,484 10,000
833,500 833,500
3,484
846,984 846,984 843,500 3,484
768,934 $ (777,330) $ (8,396) $ (15,000) $ 6,604
68
CITY OF PORT ARTHUR, TEXAS
EQUIPMENT REPLACEMENT FUND
SCHEDULE OF REVENUES AND EXPENSES
BUDGET AND ACTUAL (BUDGET BASIS)
FOR THE YEAR ENDED SEPTEMBER 30, 2001
EXHIBIT G-7
Operating revenues:
Fees, services and sales
Operating expenses:
Depreciation
Capital outlay
Total operating expenses
Operating income (loss)
Adjustment Actual
to on
Budgetary Budgetary
Actual Basis Basis Budget
1,750,135 $ - $ 1,750,135 $ 1,772,000
1,426,029 (1,426,029)
3,765 1,915,972 1,919,737 2,312,960
1,429,794 489,943 1,919,737 2,312,960
320,341 (489,943) (169,602) (540,960)
Non operating revenues (expenses)
Interest revenue 77,952
Principal and interest payments (35,384)
Intergovenrmental revenue 7,200
Gain on disposal of assets 34,357
Total 84,125
Netincome (loss) $ 404,466 $
77,952 60,000
(300,000) (335,384) (331,188)
7,200 7,200
54,229 88,586 50,000
(245,771) (161,646) (213,988)
(735,714.~.)$_ (331,248) $ (754,948)
Variance
Favorable
(Unfavorable)
$ (21,865)
393,223
393,223
371,358
17,952
(4,196)
38,586
52,342
$ 423,700
69
Fiduciary Funds
· Library Trust Fund
This fund is used to account for principal trust amounts received and
related interest income. This fund is administered for the benefit of the Port
Arthur Public Library.
CITY OF PORT ARTHUR, TEXAS
EXPENDABLE TRUST FUND
LIBRARY TRUST FUND
BALANCE SHEET
SEPTEMBER 30, 2001
EXHIBIT
ASSETS
Cash
Total assets
LIABILITIES AND FUND BALANCES
$ 22,500
$ 22,500
Fund Balance
Unreserved
$ 22,500
Total liabilities and fund balance
$ 22,500
See accompanying notes to financial statements.
73
CITY OF PORT ARTHUR, TEXAS
EXPENDABLE TRUST FUND
LIBRARY TRUST FUND
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
FOR THE YEAR ENDED SEPTEMBER 30, 2001
EXHIBIT H-2
Revenues: .
Interest
Total revenues
Expenditures:
Excess of revenues over expenditures
Fund balance, beginning of year
Fund balance, end of year
$ 811
811
811
21,689
$ 22,500
See accompanying notes to financial statements.
74
GENERAL FIXED ASSETS ACCOUNT GROUP
The General Fixed Assets Account Group is not a fund. It is used to account
for tangible assets of the City having a useful life of longer than one year and
a cost large enough to warrant maintaining detailed custodial records.
CITY OF PORT ARTHUR, TEXAS
SCHEDULE OF GENERAL FIXED ASSETS - BY SOURCE
SEPTEMBER 30, 2001
EXHIBIT I-1
GENERAL FIXED ASSETS:
Land
Buildings
Improvements other than buildings
Equipment
Construction in progress
Total general fixed assets
2,965,258
15,702,613.
5,774,311
13,560,045
1,451,346
39,453,573
INVESTMENT IN GENERAL FIXED ASSETS FROM:
General fund revenues
Bond issues
Capital leases
Special revenue fund revenues
Gifts
Contractual obligations
Total investment in general fixed assets
20,044,423
1,388,438
881,497
15,858,368
158,627
1,122,220
$ 39,453,573
See accompanying notes to the financial statements.
77
CiTY OF PORT ARTHUR, TEXAS
SCHEDULE OF GENERAL FIXED ASSETS - BY FUNCTION AND ACTIVITY
SEPTEMBER 30, 2001
EXHIBIT I-2
FUNCTION AND ACTIVITY
Improvements
Other Than
Land Buildings Buildings Equipment
Construction
In Progress
Total
General government:
Executive $ 2,940,258 $ 2,481,555 $ 496,988 $ 69,001 $ $ 5,987,802
Legal 54,040 54,040
Municipal court 32,929 - - 32,929
Central services 23,666 410,816 434,482
Administrative services 1,544,000 1,544,000
Total general government 2,940,258 2,481,555 520,654 2,110,786 8,053,253
Public safety:
Police 916,225 2,488,076 3,404,301
Fire 3,132,169 2,273,079 5,405,248
Inspections and electrical 166,089 323,747 489,836
Total public safety 4,214,483 5,084,902 9,299,385
Public works:
Planning and engineering 131,225 131,225
Streets and drainage 1,081,251 4,744,671 5,825,922
Total public works 1,081,251 4,875,896 5,957,147
Health and we[fare 237,311
Culture and recreation 25,000 7,688,013 5,253,657
287,934 525,245
Construction in progress
Total general fixed assets
1,200,527 14,167,197
1,451,346 1,451,346
$ 2,965,258 $ 15,702,613 $ 5,774,311 $ 13,560,045 $ 1,451,346 $ . 39,453,573
See accompanying notes to financial statements.
78
CITY OF PORT ARTHUR, TEXAS
SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS-BY FUNCTION AND ACTIVITY
FOR THE YEAR ENDED SEPTEMBER 30, 2001
EXHIBIT I-3
FUNCTION AND ACTIVITY
Balance Total Total Balance
September 30, Additions & Deletions & September 30,
2000 Transfers Transfers 2001
General government:
Executive $ 5,975,477 $ 12,325 $ $ 5,987,802
Legal 57,090 3,050 54,040
Municipal court 31,249 1,680 32,929
Central services 448,132 13,650 434,482
Administrative services 1,489,024 54,976 1,544,000
Total general government 8,000,972 68,981 16,700 8,053,253
Public safety:
Police 3,399,958 64,794 60,451 3,404,301
Fire 5,360,733 54,486 9,971 5,405,248
Inspections and electrical 497,284 1,338 8,786 489,836
Total public safety 9,257,975 120,618 79,208 9,299,385
Public works:
Planning and engineering 131,225 131,225
Streets, drainage and sanitation 5,929,228 4,450 107,756 5,825,922
Total public works 6,060,453 4,450 107,756 5,957,147
Health and welfare 545,225 19,980 525,245
Culture and recreation 14,124,558 42,639 14,167,197
Construction in progress 453,331 998,015 1,451,346
Total general fixed assets
$ 38,442,514 $ 1,234,703 $ 223,644 $ 39,453,573
See accompanying notes to the financial statements.
79
GENERAL LONG-TERM DEBT ACCOUNT GROUP
The General Long-Term Debt Account Group is not a fund. The account group
is used to account for debt, such as general obligation bonds, which are not
accounted for in thc governmental funds of the City.
CITY OF PORT ARTHUR, TEXAS
STATEMENT OF GENERAL LONG-TERM DEBT
SEPTEMBER 30, 2001
EXHIBIT J-t
AMOUNT AVAILABLE AND TO BE PROVIDED FOR THE
PAYMENT OF LONG-TERM DEBT
Amount available in debt service fund
Amount to be provided f~r retirement of long-term
debt and other long-term obligations
TOTAL AMOUNT AVAILABLE AND AMOUNTS
TO BE PROVIDED
928,471
40,471,614
41,398,085
GENERAL LONG-TERM DEBT PAYABLE
General obligation bonds
Lease payable
Compensated absences payable
TOTAL GENERAL LONG-TERM DEBT PAYABLE
36,640,000
204,345
4,553,740
41,398,085
See accompanying notes to financial statements.
83
DISCRETELY PRESENTED COMPONENT UNITS
Discretely Presented Component Units are included in the City's reporting
entity becaus~ of the significance of the operational or financial
relationships with the City.
Port Arthur Economic Development Corporation
Accounts for an additional one half cent sales tax collected and dedicated to
economic development activities.
Pleasure IsIand Commission
Accounts for income and expenses generated from commercial, industrial,
and recreational rentals received from property owned by the Cit3, on Pleasure
Island.
CITY OF PORT ARTHUR, TEXAS
DISCRETELY PRESENTED COMPONENT UNITS
BALANCE SHEETS
SEPTEMBER 30, 2001
PoN A~hur
Economic
Development
Corporation
EXHIBIT K-1
Pleasure
Island
Commission
ASSETS
Cash
Investments
Accounts receivable
Prepaid expense
Assets, net of accumulated depreciation
Total assets
2,079,922
4,000,000
686
39,433
$ 6,120,041
127,246
900,000
510,152
2,217
4,316,068
$ 5,855,683
LIABILITIES AND FUND EQUITY
Liabilities:
Accrued payroll
Accounts payable
Compensated absences
Deferred revenue
Total liabilities
Fund Equity:
Contributed capital
Investment in general fixed assets
Retained earnings:
Unreserved
Fund balances:
Reserved for development projects
Unreserved
Total fund equity
Total liabilities and fund equity
$ 3,458 $ 4,854
14,595 83,310
2,708 7,437
3,416
20,761
39,433
4,559,456
1,500,391
6,099,280
$ 6,120,041
99,017
3,440,334
2,316,332
5,756,666
$ 5,855,683
See accompanying notes to financial statements.
87
CITY OF PORT ARTHUR, TEXAS
DISCRETELY PRESENTED COMPONENT UNIT
PORT ARTHUR ECONOMIC DEVELOPMENT CORPORATION
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
FOR THE YEAR ENDED SEPTEMBER 30, 2001
EXHIBIT K-2
Bud~let Actual
Variance
Favorable
(Unfavorable)
Revenues:
Salestax $ 1,984,025 $ 2,177,568 $ 193,543
Intergovernmental 1,458 1,458
Interest 360,000 238,719 (121,281)
Total revenues 2,344,025 2,417,745 73,720
Expenditures:
Personnel services
Other operating expenditures
Total expenditures
245,241 156,358 88,883
6,646,918 2,540,746 4,106,172
6,892,159 2,697,104 4,195,055
Excess of revenues over expenditures $ (4,548,1.~.__34)
(279,359) $ 4,268,775
Fund balance, beginning of year
Fund balance, end of year
6,339,206
$ 6,059,847
See accompanying notes to financial statements.
88
CITY OF PORT ARTHUR, TEXAS
DISCRETELY PRESENTED COMPONENT UNIT
PLEASURE ISLAND COMMISSION
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND EQUITY
FOR THE YEAR ENDED SEPTEMBER 30, 200'1
EXHIBIT K-3
Operating revenues:
Fees, services and sales
Operating expenses:
Personnel services
Other operating expenses
Depreciation
Total operating expenses
Operating income
Non-operating revenues (expenditures):
Interest revenue
Total non-operating revenues (expenses)
Net income
Retained earnings, beginning of year, as previously reported
Prior period adjustment
Retained earnings, beginning of year, as restated
Retained earnings, end of year
Contributed capital, beginning of year
Contributed capital, end of year
Fund equity, end of year
$ 955,093
296,933
525,157
113,864
935,954
19,139
51,235
51,235
70,374
2,241,928
4,030
2,245,958
2,316,332
3,313,691
3,440,334
$ 5,756,666
See accompanying notes to financial statements.
89
CITY OF PORT ARTHUR, TEXAS
DISCRETELY PRESENTED COMPONENT UNIT
PLEASURE ISLAND COMMISSION
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED SEPTEMBER 30~ 2001
EXHIBIT K-4
INCREASE (DECREASE) IN CASH
AND CASH EQUIVALENTS
Net cash provided by operating activities
Cash flows from capital and related financing activities:
Purchase of fixed assets
Net cash provided from capital and related financing activities
Cash flows from investing activities:
Proceeds from sales and maturities of investments
Interest revenue
Net cash provided from investing activities
Cash flows from non-capital financing activities:
Contribution to other entities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year
RECONCILIATION OF OPERATING INCOME
TO NET CASH PROVIDED BY OPERATING ACTIVITIES
Operating income
Adjustments to reconcile operating income to
net cash provided by operating activities:
Depreciation
Change in assets and liabilities:
Accounts receivable
Prepaid insurance
Accrued payroll
Accounts payable
Other liabilities
Compensated absences
Deferred revenue
Total adjustments
Net cash provided by operating activities
288,217
(374,141)
(374,141)
100,000
51,235
151,235
65,311
61,935
127,246
19,139
113,864
122,760
1,181
563
69,918
(42,726)
(841)
4,359
269,078
288,217
See accompanying notes to financial statements.
90
GENERAL GOVERNMENTAL EXPENDITURES BY FUNCTION (1)
LAST TEN FISCAL YEARS
Health
Fiscal General Public and
Year Government Safety Welfare
1991-92 $ 4,629,780 $ 11,501,270
1992-93 6,000,902 12,956,500
1993-94 5,205,631 13,144,258
1994-95 5,660,640 13,142,690
1995-96 4,357,685 ,13,245,637
1996-97 4,889,837 13,832,521
1997-98 5,437,621 14,721,498
1998-99 6,806,730 15,333,933
1999-00 6,965,654 15,831,362
2000-01 7,813,492 16,479,589
Public
Works
$ 1,724,189 $ 11,272,022
1,386,912 6,922,140
664,625 6,507,420
704,020 6,993,460
353,133 5,659,675
393,061 6,496,602
421,218 6,078,724
470,044 5,590,978
559,536 5,750,170
524,646 5,669,952
Insurance
and
Non- Employee
Departmental Benefits
Total
$ 1,377,313 $ 851,199
570,000 1,706,844
$ 31,355,773
29,543,298
25,521,934
26,500,810
23,616,130
25,612,021
26,659,061
28,201,685
29,106,722
30,487,679
(1) Includes General Fund only
(2) Capital costs are reflected in each department.
92
CITY OF PORT ARTHUR, TEXAS
GENERAL GOVERNMENTAL REVENUES BY SOURCE (a)
LAST TEN FISCAL YEARS
Industrial
Revenue,
Property
and Gross
Fiscal Receipts Sales
Year Tax Tax
Penalties Other Licenses
& Interest Taxes & Permits
1991-92 $ 23,000,323 $ 3,283,806 $ 231,576 $ 342,698
1992-93 22,291,882 3,295,980 165,621 355,790
1993-94 22,150,164 3,450,261 107,534 320,216
1994-95 22,857,520 3,404,395 192,675 393,537
1995-96 21,956,444 3,357,109 165,211 344,886
1996-97 22,381,313 3,646,561 203,999 372,445
1997-98 22,335,502 3,666,686 185,166 450,559
1998-99 22,033,269 3,893,144 245,469 441,536
1999-00 23,492,928 4,070,848 226,246 436,860
2000-01 24,335,892 4,355,136 203,493 473,396
94,213
81,949
87,372
100 939
124 813
126 413
150 286
225 065
217 896
351 142
(a) Includes General Fund, Debt Service Fund and Tax Escrow Fund
(b) Solid Waste Fund established. In prior years Solid Waste revenue was included in General Fund.
93
TABLE 2
Fines &
Forfeitures
415,401
364,398
334,884
344,090
375,402
296,919
417,227
631,340
638,773
641,109
Interest Inter- Fees, Services
Income Governmental and Sales
408,492 $ 399,975 $ 3,712,487
302,463 301,672 557,553 (b)
140,922 652,049 132,465
371,925 1,398,648 345,260
1,112,546 829,331 295,898
1,101,317 634,400 518,566
973,122 772,720 483,351
558,979 990,632 366,649
776,678 1,563,659 402,762
717,087 744,411 535,569
Miscellaneous
Total
285,594
208,449
111,831
59,872
99,978
89,093
163,343
152,383
147,748
121,325
$ 32,174,565
27,925,757
27,487,698
29,468,861
28,661,618
29,371,026
29,597,962
29,538,468
31,974,398
32,478,560
94
CITY OF PORT ARTHUR, TEXAS
PROPERTY TAX LEVIES AND COLLECTIONS
LAST TEN FISCAL YEARS (1)
TABLE 3
Total Percent
Fiscal Levy Current Tax of Levy
Year October 1 Collections Collected
1991-92 $ 21,167,175 $ 20,605,920 97.4
1992-93 20,332,924 19,966,213 98.6
1993-94 20,157,252 ?,901,018 98.7
1994-95 19,191,096 18,899,018 98.5
1995-96 19,813,661 19,459,093 98.2
1996-97 19,983,858 19,601,882 98,1
1997-98 19,710,352 19,445,792 98.7
1998-99 20,326,414 20,029,220 98.5
1999-00 20,794,242 20,619,057 99.2
2000-01 21,225,570 20,881,671 98.4
Delinquent Outstanding
Tax Total Tax Delinquent
Collections Collections (1) Taxes
% $
381,646 $ 20,987,566 $ 2,276,358
288,343 20,254,556 2,354,726
271,555 20,172,573 2,339,405
284,961 19,183,979 2,346,522
193,964 19,653,057 2,341,270
259,522 19,861,404 2,463,724
283,356 19,729,148 2,444,928
286,417 20,315,637 2,455,705
287,997 20,907,054 2,342,893
277,315 21,158,986 2,409,477
Ratio of
Outstanding
Delinquent
Taxes to
Current
Tax Levy
10.7 %
11.6
11.6
12.2
11.8
12.3
12.4
12.1
11.3
11.4
(1) All funds
95
CITY OF PORT ARTHUR, TEXAS TABLE 4
ASSESSED AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY
LAST TEN FISCAL YEARS
Fiscal Real Propert7 Personal Property
Year Assessed Value Est Actual Value Assessed Value Est Actual Value
Total
Assessed
Value (a)
Estimated
Actual Value
1991-92 $ 1,982,407,155 $ 1,982,407,155 $ 714,196,653 $ 714,196,653 $ 2,696,603,808 $ 2,696,603,808
1992-93 2,097,121,922 2,097,121,922 514,580,240 514,580,240 2,611,702,162 2,611,702,162
1993-94 1,992,736,984 1,992,736,984 602,175,891 602,175,891 2,594,912,875 2,594,912,875
1994-95 1,985,371,639 1,985,371,639 505,719,267 505,719,267 2,491,090,906 2,491,090,906
1995-96 2,059,181,152 2,059,181,152 540,098,220 540,098,220 2,599,279,372 2,599,279,372
1996-97 2,063,407,605 2,063,407,605 535,860,568 535,860,568 2,599,268,173 2,599,268,173
1997-98 2,037,896,678 2,037,896,678 525,274,406 525,274,406 2,563,171,084 2,563,171,084
1998-99 2,130,574,099 2,130,574,099 459,699,192 459,699,192 2,590,273,291 2,590,273,291
1999-00 2,240,353,390 5,240,353,390 442,709,530 442,709,530 2,683,062,920 2,683,~62,920
2000-01 2,369,833,664 2,369,833,664 446,834,440 446,834,440 2,816,668,104 2,816,668,104
Percent
lO0 %
lO0
lO0
lO0
100
lO0
lO0
lO0
lO0
lO0
(a) The assessed value used is the certified appraised value from the Jefferson County Appraisal District
upon which the City Council establishes the tax rate.
96
CITY OF PORT ARTHUR, TEXAS
PROPERTY TAX RATES (per $100 valuation)
DIRECT AND OVERLAPPING GOVERNMENTS
LAST TEN TAX YEARS
TABLE 5
City of Port Port
Tax Port Arthur Nederland Neches
Year Arthur I.S.D. I.S.D. I.S.D.
Jeffemon Sabine Port
County Sabine Pass Arthur Jefferson
Education Pass Port Navigation County Jefferson
Dist.(l) I.S.D. Authority Dist DD #7 County
1991 $ 0.785 $0.540 $ 0.570 $ 0.480000
1992 0.775 0.540 0.540 0.480000
1993 0.775 1.420 1.450 1.400000
1994 0.775 1.489 1.450 1.370000
1995 0.775 1.489 1.430 1.544000
1996 0.775 1.489 1.470 1.667155
1997 0.775 1.489 1.470 1.667155
1998 0.775 1.489 1.510 1.734542
1999 0.775 1.500 1.540 1.703027
2000 0.775 1.500 1.540 1.684053
$ 0.7700 $ 0.410
0.8953 0.410
1.450
1.500
1.500
1.500
1.500
1.500
1.631
1.680
$ 0.119170 $ 0.054470 $ 0.159500 $ 0.309
0.076360 0.054470 '0.159500 0.3230
0.089670 0.054840 0.159500 0.3200
0.110924 0.163210 0.174400 0.3400
0.127832 0.114620 0.172100 0.3700
0.151910 0.158451 0.172102 0.3~65
0.122124 0.158451 0.172102 0.3650
0.239110 0.139785 0.172102 0.3650
0.270450 0.146490 0.170500 0.3650
0.262177 0.138556 0.170500 0.3650
(1) Created in 1991; abolished in 1993
97
CITY OF PORT ARTHUR, TEXAS
SPECIAL ASSESSMENT COLLECTIONS
LAST TEN FISCAL YEARS
Table 6
Fiscal Current Assessments Outstanding
Year Assessments Collected Assessments
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
199,732
$ 809 % 88,863
688 88,175
88,175
88,175
88,175
88,175
749 87,426
330 87,096
13,757 273,071
3,847 269,224
Ratio of
Collections to
Amount Due
0.91%
0.78
0.03
0.86
0.38
5.04
1.43
98
CITY OF PORT ARTHUR, TEXAS
RATIO OF NET LONG-TERM DEBT
TO ASSESSED VALUE AND NET LONG-TERM DEBT PER CAPITA
LAST TEN YEARS
Table 7
Less
Fiscal Gross Debt
Year Long-Term Service
Ended Population Assessed Value Debt Funds
1991-92 59,724 $ 2,696,603,808 $ 11,514,882 $
1992-93 59,724 2,611,702,162 11,460,811
1993-94 58,551 2,594,912,875 8,386,613
1994-95 58,551 2,491,090,906 28,326,945 182,473
1995-96 58,551 2,899,279,372 29,651,468 752,450
1998-97 58,551 2,599,268,173 40,206,645 952,615
1997-98 58,551 2,563,171,084 39,213,283 1,309,125
1998-99 58,551 2,590,273,291 37,765,758 1,671,022
1999-00 58,551 2,683,062,920 38,637,992 710,568
2000-01 57,755 2,816,668,104 36,844,345 926,471
Net
Long-Term
Debt
Ratio of Net
Long-Term
Debtto
Assessed
Value
Net
Long-Term
Debt
Per Capita
$ 11,514,882 0.4270 %$ 193
11,460,811 0.4388 192
8,386,613 0.3232 143
28,144,472 1.1298 481
28,899,018 1.1118 494
39,244,030 1.5098 670
37,904,158 1.4788 647
36,094,736 1.3935 616
37,927,424 1.4136 646
35,917,874 1.2752 622
(1) U.S. Department of the Treasury Census Data
99
CITY OF PORT ARTHUR, TEXAS
COMPUTATION OF DIRECT AND OVERLAPPING DEBT
SEPTEMBER 30, 2001
Table 8
Taxinq Jurisdiction
City of Port Arthur
Port Arthur Independent School District
Jefferson County
Jefferson County
Drainage District #7
Port of Port Arthur
Navigation District
Park Central MUD
Nederland Independent
School District
Port Neches Independent
School District
Sabine Pass Independent
School District
Sabine Pass Port Authority
Gross
Debt
Estimated
Percentage
Overlapping (a)
36,640,000
74,375,000
30,800,000
11,550,792
16,970,000
33,410,000
10,000,000
1,417,027
100.00 %
100.00
10.83
20.13
34.61
100.00
7.57
5.35
100.00
100.00
Estimated
Gross Debt
Overlapping
$ 36,640,000
8,054,813
10,659,880
11,550,792
1,284,629
1,787,435
10,000,000
1,417,027
Total direct and overlapping debt
$ 81,394,576
(a) As estimated by the Municipal Advisory Counci[ of Texas
lO0
CITY OF PORT ARTHUR, TEXAS
COMPUTATION OF DEBT MARGIN
SEPTEMBER 30, 200'1
Table 9
Taxable assessed value - 2000 tax roll
Debt limit - 10% of assessed value (1)
Amount of debt applicable to 8ebt limit:
Total bonded debt
Other debt
$ 36,640,000
204,345
$ 2,816,668,104
281,666,810
36,844,345
Debt margin $ 244,822,465
(1) DEBT MARGIN
There is no debt limit established by law; therefore, the limit is governed by the City's ability to levy and collect taxes
to service the debt. The Attorney General of the State of Texas will not approve more than $1.00 of the tax rate for
debt service. The City's maximum legal tax rate is $2.00 per $100 valuation; the current tax is $0.775 per $100 valuation
assessed at 100% of the market value. Ten percent (10%) of the assessed value has been applied as a "rule of thumb"
procedure.
101
CITY OF PORT ARTHUR, TEXAS
RATIO OF ANNUAL DEBT SERVICE EXPENDITURES FOR
GENERAL BONDED DEBT TO TOTAL GENERAL EXPENDITURES
LAST TEN YEARS
Table 10
Fiscal Total
Year Principal Interest Debt Service
Total
General
Expenditures
Ratio of
Debt Service
To Geneml
Expenditures
1992 $ 2,504,061 $ 868,793 $ 3,372,854
1993 3,210,202 . 475,096 3,685,298
1994 2,896,624 587,061 3,483,685
1995 2,235,484 437,205 2,672,689
1996 1,675,000 2,072,344 3,747,344
1997 1,775,000 1,579,507 3,354,507
1998 905,000 2,624,651 3,529,650
1999 1,280,000 2,300,078 3,580,078
2000 1,350,000 2,202,306 3,552,306
2001 1,605,000 2,218,978 3,823,978
32,211,418
27,266,454
25,521,934
25,844,319
23,616,130
25,612,021
26,659,061
28,201,685
29,106,722
30,487,679
10.47
13.52
13.65
10.34
15.87
13.10
13.24
12.69
12.20
12.54
102
CITY OF PORT ARTHUR, TEXAS Table 11
TEN MAJOR TAXPAYERS FOR 2000 TAX YEAR
Taxpayer
Motiva Enterprises
Chevron USA, Inc.
Huntsman Corporation
ATOFINA
Premcor
Entergy
BASF/ATOFINA
BASF
Equistar
Great Lakes Carbon
TOTAL
Type of Business
Petro-Chemical
Petro-Chemical
Petro-Chemical
Petro-Chemical
Petro-Chemical
Utility
Petro-Chemical
Petro-Chemical
Petro-Chemical
Petro-Chemical
Assessed
Value
442,358,329
299,046,412
218,031,191
236,840,401
218,181,866
150,286,030
85.050,000
79,864,029
45,004,939
25,733,120
1,800,396,317
%oftotal
24,57 %
16.61
12.11
13.15
12.12
8,35
4.72
4,44
2.50
1.43
100.00
103
CITY OF PORT ARTHUR, TEXAS
CONSTRUCTION PERMITS AND VALUE
LAST TEN FISCAL YEARS
Table 12
Commercial
Construction
Fiscal No. of
Year Units
1992 16
1993 14
1994 , 5
1995 64
1996 19
1997 15
1998 15
1999 34
2000 38
2001 41
Value
$ 4,514
1,164
4.470
6,796
6,489
2,545
7,099
7,647
17,585
18,155
Residential
Construction
No. of
Units
46
28
29
5O
43
61
217
71
99
81
Value
$ 4,561
2,705
3,905
3,596
3,848
4,733
11,848
61890
10,345
9,360
All dollar values in thousands.
104
CITY OF PORT ARTHUR, TEXAS
DEMOGRAPHIC STATISTICS
LAST TEN FISCAL YEARS
Table t3
Fiscal
Year Population (1)
Median
Income per Median
Household(l) A~le
Education School Unemployment
Level in Enrollment Rate
Years (1) (2) (3)
1992 58,551
1993 58,551
1994 58,551
1995 58,551
1996 58,551
1997 58,551
1998 58,551
1999 58,551
2000 57,755
2001 57,755
18,548 33.6 12.1 11,600 13.6 %
18,548 33.6 12.1 11,600 16.0
18,548 33.6 11.8 12,012 14.4
23,305 34.9 11.8 12,012 14.8
23,305 34.9 11.8 12,012 13.5
23,305 34.9 11.8 11,592 11.7
23,155 33.6 11.8 11,579 11.1
23,155 33.6 11.8 11,343 13.1
30,209 33.6 11.8 10,600 12.4
30,209 34.6 11.9 10,738 12.1
Sources:
(1) U. S. Department of Commerce Census Data
(2) Port Arthur independent School District only
(3) Texas Workforce Commission
105
CITY OF PORT ARTHUR, TEXAS Table
MISCELLANEOUS STATISTICAL DATA
GOVERNMENT
DATE OF INCORPORATION
Original Charter
Second Charter
Third Charter
Amended
Amended
Form of Government
Home Rule
Mayor
Council - Manager
Governmental Facilities
Fire Protection
Administration Building (Central)
Number of Stations
Number of Fire Hydrants
Number of Firefighters
Employees per 1,000 Population
ISO Rating
Police Protection
Number of Stations
Number of Officers
Employees Per 1,000 Population
Substations
Libraries
Number of Public Libraries
Number of Volumes
Circulation of Volumes
Circulation Per Capita
Library Cards in Force
Parks and Recreation
Park Acreage
Golf Course
Swimming Pools
Playgrounds
Recreation Center
Streets, Sidewalks and Storm Sewers
Paved Streets
Unpaved Streets
Alleys
Sidewalks
Storm Sewers
May 30, 1898
May 8, 1911
March 8, 1932
January 26, 1963
May 2, 1992
January 17, 1998
Incorporation to 1911
1911 to 1932
March 8, 1932
1
7
1,883
105
1.81
3
1
112
2
9
1
145,360
189,382
3.23
18,969
332.52
1
3
31
1
341.4
0.7
10
125.7
181.4
Governmental Facilities
Utilities
Municipal Sewer System
Sanitary Sewer Ma[ns
Sewer Connections
Municipal Water System
Gallons of Water Pumped into System
Gallons of Water Sold
Average Daily Production
Maximum Daily Water Production
Water Connections
Water Mains
Meters in Service
POPULATION
Consolidated and Annexed
AREA
Land
Water
TOTAL
mi.
282 mi.
23,209
4,669,098,800
2,078,150,620
12,792,052
17,019,500
24,266
371 mi.
18,839
58,551
87.6 sq. mi.
54.2 sq. mi.
141.8 sq. mi.
106