* This transcript was created by voice-to-text technology. The transcript has not been edited for errors or omissions, it is for reference only and is not the official minutes of the meeting. [00:00:19] THE MEETING TO ORDER, UM, AND ANNOUNCE THAT WE DO HAVE A QUORUM OF THIS BAYTOWN AREA WATER AUTHORITY SPECIAL MEETING. THE FIRST ITEM OF BUSINESS IS TO RECEIVE THE [a. Receive the Baytown Area Water Authority's Annual Financial Report for the fiscal year ended September 30, 2021] AUTHOR'S ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED SEPTEMBER 30TH, 2021. GOOD AFTERNOON EVERYONE. THANK YOU ALL FOR JOINING US FOR THE SPECIAL MEETING. AND BEFORE I GET STARTED, I JUST WANT TO INTRODUCE OUR NEW EMPLOYEE. SHE'S NOT SO, SO NEW, BUT SHE'S BEEN HERE OVER A MONTH OR SO. BUT MS. THERESA MCKENZIE, AND SHE'S A ADDITIONAL ASSISTANT DIRECTOR OF FINANCE AND SO THAT'S WHO SHE IS. AND THEN TODAY WE HAVE MR. SLIS. IT'S GONNA COME AND GIVE THE REPORT FOR OUR BORROWER REPORT. THANK YOU. AND WELCOME. HELLO, GOOD AFTERNOON. HELLO. OKAY, SO I WOULD LIKE TO START, THANK YOU. SAYING THANK YOU TO MR. SINA FOR ALL THE HELP AND ALL THE FINANCIAL, FINANCIAL STAFF FOR THE HELP TO FINISH THE AUDIT ON TIME. UM, WHAT YOU HAVE IN FRONT OF YOU IS THE ANNUAL UNKNOWN FINANCIAL REPORT, THE AUDIT OR DISCLOSURE LETTER AND ADJUSTMENT GENERAL ENTRIES AT THE END OF THE REPORT, UH, TOGETHER, LET'S OPEN THE REPORT IN THE, UH, FIRST PAGE, PAGE NUMBER ONE, WHICH IS THE OPINION LETTER. WE HAVE ISSUED A CLAIM OR MODIFIED OPINION THAT IS THE HIGHEST LEVEL OF ASSURANCE THAT WE CAN PROVIDE, THAT THE FINANCIAL STATEMENTS ARE FREE OF MATERIAL, MRS. STATEMENTS. I INCLUDE ALL THE REQUIRED DISCLOSURES. NOW, IF WE CAN PLEASE TURN TO PAGE 15. YOU HAVE THE STATEMENT OF NET POSITION HERE. UH, THE AUTHORITY ENDED UP AT THE END OF THE FISCAL YEAR WITH OVER 116.1 MILLIONS. UH, MOST OF THIS IS COMING FROM THE ASSETS. UH, YOU HAVE IN THE NEXT COLUMN, THE 2020 IF YOU WANT TO COMPARE IT FOR LIABILITIES. UH, THEY ENDED UP WITH OVER 51.5 MILLIONS AND THAT ENDED UP WITH A NET, TOTAL NET POSITION OF OVER 64 POINT 0.6 MILLIONS. NOW, IF YOU CAN PLEASE START TO PAGE 17, WE HAVE THE STATEMENT OF REVENUE HERE. UH, THE OPERATING REVENUES, UH, ENDED UP IN OVER 13.8 MILLIONS AT THE END OF THE FISCAL YEAR WITH EXPENDITURES OF OVER 11.1 MILLIONS. THIS, UM, AND THAT IN A NET POSITION OF OVER 64.7 MILLIONS WHEN A CHANGING NET POSITION FOR THIS YEAR OF OVER 1.2 MILLIONS. NOW, IF YOU CAN PLEASE, WHY, WHY DID THE, UM, WHY DID THE REVENUE DROP SO MUCH BETWEEN 20 AND 21? OKAY, YEAH. UH, IT SEEMS LIKE BECAUSE OF, UH, COVID AND ALL THE PEOPLE STAYING AT HOME AND ALL THAT, YOU HAVE LIKE MORE REVENUES COMING FROM, FROM THE WATER CONSUMPTION AND ALL THIS. AND BECAUSE THE PEOPLE IS BACK TO REGULAR JOBS AND NORMAL. UM, SO LESS PEOPLE AT HOME IS WHAT YOU'RE SAYING? YES. MM-HMM . OKAY. UM, PAGE 33. WE HAVE HERE, UM, THE BUDGET TO ACTUAL, UM, WE HAVE THE ORIGINAL AND FINAL, UH, BUDGET IN THE FIRST COLUMNS, AND THEN WE HAVE THE, WE HAVE THE ACTUAL NUMBERS AND THE VARIANCE. UH, AT THE LAST COLUMN, UM, THE AUTHORITY BUDGETED OVER 14.3 MILLION IN REVENUE, BUT ENDED ON GETTING JUST 13.8 MILLIONS WITH A VARIANCE OF $500,000. UH, FOR THE, UH, FOR THE EXPENDITURES, THEY BUDGETED 9.1 MILLIONS AND THEN ENDED UP WITH LESS, UH, OF WHAT THEY EXPECTED OVER 8.9 MILLIONS. AND YOU CAN SEE IN THE LAST COLUMN, UM, ALL THE VARIANTS. SO IT SEEMS LIKE THE AUTHORITY DID VERY GOOD THIS YEAR. EVEN WHEN YOU SEE LIKE LESS REVENUE THAN LAST YEAR, IT STILL HAVE A POSITIVE, UH, NET POSITION AND A VERY HEALTHY, UH, FINANCIAL STATEMENTS. SO, DO YOU HAVE ANY OTHER QUESTIONS? THE, THE, THE MAIN THING IS IT'S A CLEAN OPINION WITH NO, UH, NO COMMENTS, CORRECT? YES. EVERYTHING LOOKS PRETTY CLEAN AND EVERYTHING WAS, EVERYTHING THAT WAS PROVIDED WAS, UH, CORRECTLY DONE. SO, YEAH. MM-HMM . [00:05:01] DO YOU HAVE ANYTHING ELSE FOR US? NO, NO, NO. DOES ANYONE HAVE QUESTIONS FOR HER OR DISCUSSION? DO WE NEED A MOTION TO ACCEPT IT OR NOT? YOU'RE JUST RECEIVING THE REPORT SO WE DON'T NEED A MOTION? NO, SIR. OKAY. AND I WON'T MAKE ONE. THANK YOU SO MUCH. THANK YOU. THANK YOU MA'AM. THANK YOU. ALRIGHT, WELL, UM, THEN WE HAVE A MANAGER'S REPORT. [a. The next Baytown Area Water Authority meeting is scheduled for Wednesday, February 16, 2022 at 4:30 p.m., in the Council Chamber located at City Hall, 2401 Market Street, Baytown, Texas 77520. ] SO I DO WANNA THANK OUR PARTNERS AT BELL HARRIS BAIC AND OUR FINANCE DEPARTMENT. ANYONE IN ANY TYPE OF BUSINESS UNDERSTANDS THE WORK THAT HAS TO GO INTO AUDITS ON BOTH SIDES OF THE TABLE. SO WE APPRECIATE THE WORK THAT YOU OR YOUR STAFF HAVE DONE. GINA, THERESA, THE WORK THAT THE FINANCE DEPARTMENT DOES, WE KNOW THERE'S A LOT OF WORK THAT HAS TO GO BACK AND FORTH TO BE ABLE TO PRESENT THAT TO THE BOARD. SO THANK Y'ALL VERY MUCH. REALLY APPRECIATE THAT. THANK Y'ALL. I'M SORRY THAT WE NEEDED A SPECIAL MEETING TO RECEIVE IT, BUT WE HAD TO DO IT FOR THE TIMING, SO I REALLY APPRECIATE YOUR TIME. WE DON'T TAKE THAT LIGHTLY EITHER. HAVING SAID THAT, OUR NEXT MEETING IS SCHEDULED FOR WEDNESDAY, FEBRUARY 16TH, 4:30 PM HERE IN THE COUNCIL CHAMBER. THAT'S ALL I HAVE. ALRIGHT. THANK YOU. AS THERE'S NO FURTHER BUSINESS, I'D ENTERTAIN A MOTION TO ADJOURN. SO MOVE. SECOND. SECOND. ALL IN FAVOR? AYE. THANK YOU. * This transcript was created by voice-to-text technology. The transcript has not been edited for errors or omissions, it is for reference only and is not the official minutes of the meeting.