* 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. [ CITY OF BAYTOWN NOTICE OF MEETING BAYTOWN FINANCE COMMITTEE TUESDAY, MAY 30, 2023 3:30 P.M. HULLUM CONFERENCE ROOM, CITY HALL 2401 MARKET STREET, BAYTOWN, TEXAS 77520 AGENDA CALL TO ORDER AND ANNOUNCEMENT OF QUORUM ] [00:00:19] 4 0 1. WE ARE IN LEN CONFERENCE ROOM AT CITY HALL AND WE DO HAVE A QUORUM. SO WE'LL ORDER OUR BAYTOWN FINANCE, UH, FIRST ITEM ONE [a. Consider the approval of minutes of the Finance Committee Meeting held February 7, 2023.] A, SARAH, THE APPROVAL OF MINUTES OF THE FINANCE COMMITTEE MEETING OF FEBRUARY 7TH, 2023. SO I'LL A MOTION TO APPROVE THAT I THING 'CAUSE I WASN'T AT THAT ONE MEETING. YOU CAN AS LONG AS THEY LOOK, UH, YOU CAN APPROVE. YEAH. ROBERT SROS, YOU CAN APPROVE MINUTES IF YOU WANT. IS THAT RIGHT? OKAY. I MOTION YOU'RE APPROVING THAT THE MINUTES ARE CORRECT. I, NOT THAT YOU WERE THERE. OKAY. I UP BEFORE LOOKED. ALRIGHT. I MOTION APPROVE. ALRIGHT. AND I'LL SECOND THAT. SO, ALL IN FAVOR? AYE. AYE. ALL RIGHT. SO THAT, AND AUSTIN, IF YOU'D HAVE SAID NAY, I'M JUST, I DUNNO WHY YOU DO DO THE NEXT, THE NEXT MEETING, THAT'S WHAT HAPPENS. I, I'D BE MEETING WITH THAT. TRY AGAIN NEXT TIME. GOOD ENOUGH FOR ME. ALRIGHT, SO THEN WE'LL MOVE TO [a. Receive the City of Baytown's Quarterly Financial and Investment Reports for the Quarter Ending December 31, 2022.] TWO A AND RECEIVE THE QUARTERLY FINANCIAL AND INVESTMENT FOR QUARTER ENDING DECEMBER 31ST OF 22. OKAY. SO, OKAY. SO THIS IS, UM, AS I UM, DISCUSSED THAT THE LAST TIME THAT WE PRESENTED THE FINANCIAL QUARTER REPORT FOR SEPTEMBER, WE WERE TALKING ABOUT TRYING TO MAKE IT MORE GRAPHIC AND TO IMPROVE IT. AND SO, UM, THIS IS ANOTHER NEW SAMPLE OF WHAT IT WILL LOOK LIKE. SO OF COURSE WE'RE ALSO, UH, LOOKING TO GET FEEDBACK, BUT SO THAT YOU CAN SEE AT FIRST GLANCE THE GENERAL FUND BUDGET RECEIVED. SO FAR WE HAVE 83 MILLION, 83.9 MILLION AT 65%. THE REASON FOR THAT IS OUR IDAS, UM, WE HAD RECEIVED LIKE 66 MILLION OF IT AS OF DECEMBER AND LAST YEAR WE HAD ONLY RECEIVED LIKE ABOUT 56. SO IT WAS A LITTLE AT THAT TIME. THIS IS AS OF DECEMBER. AND SO FOR THE BUDGET SO FAR WE'VE ONLY SPENT 35 MILLION AND WE EXPECT OF COURSE THAT TO INCREASE AS TIME GOES ON AND WE GET CLOSER TO THE YEAR. UM, WE HAVE SOME HEALTHY FUND BALANCES AS OF DECEMBER. UH, GENERAL FUND AT 92, HOTEL AT 2.2 MILLION. WATER AND SEWER 7.6, SANITATION 1.6, STORM WATER 2.9. UM, AQUATICS IS STILL IN THE NEGATIVE, BUT UM, IT JUST, HOPEFULLY IT'LL BE BETTER THIS YEAR. UM, STREETS WE'RE AT 6.5. SO THE POINT OF THIS IS WE ALSO HAVE THE SALES TAX RECEIPTS, WHICH IS AVERAGING A LITTLE OVER 12.8%, UM, IN COMPARISON TO LAST YEAR. UM, I'M ALSO TRYING TO SHOW YOU THE UNSPENT BOND PROCEEDS THAT WE HAVE. THAT'S 73 MILLION. WHAT'S INCLUDED IN THERE IS THE BOND THAT WE WENT OUT FOR IN NOVEMBER FOR THE GENERAL FUND. WE WENT OUT FOR 25 MILLION. SO IT'S A LITTLE MORE LIKE 28,000 OR SO THAT WE'RE 58,000 OR SO THAT WE HAVEN'T SPENT SO FAR OR 48. AND SO AS FAR AS THE INVESTMENTS GO, OUR INVESTMENT EARNINGS WAS 2.3 UP UNTIL DECEMBER. AND THE BOOK VALUE OF ALL OF OUR INVESTMENTS IS 279.8. SO THIS IS THE SNAPSHOT. WHAT I ALSO ATTACHED IS THE DETAIL TRYING TO SHOW IN THE PAST, WE HAVEN'T REALLY SHOWN ALL THE OTHER FUNDS AND HOW THE REVENUE IS COMING IN AND THE EXPENDITURES ARE GOING FOR EACH ONE. UM, SO THAT'S WHAT THIS IS. AND WE'RE JUST TRYING TO SAY THAT AS OF DECEMBER, WE'RE LOOKING AT A QUARTER. IS THE REVENUE WHERE IT SHOULD BE? IS IT AT 0.25%? UM, AND SO THAT'S WHY YOU'LL SEE THE GREENS OR THE YELLOWS. IF IT'S NOT TO SAY WE ARE NOT AT THE LEVEL THAT IT WOULD BE TYPICALLY OR THAT WE WANT IT TO BE. AND IF IT'S LESS THAN, UM, I THINK I USED THE 15 TO SAY THAT IT'S IN THE, IT'S RED TO SHOW THAT WE ARE BELOW, WE ARE BEHIND ON SCHEDULE ON COLLECTING THOSE REVENUES. THE GOOD NEWS IS MAJORITY OF THE ONES THAT ARE YELLOW AND RED ARE MORE LIKE OUR, UM, CONTRIBUTION AND OUR DONATION FUNDS. SO ALL THE OTHER FUNDS LIKE OUR PROPERTY TAX, SALES TAX FUND, THE ONES THAT ARE GETTING THOSE FUNDS ARE ALL IN THE GREEN. THAT'S, AND THEN AS FOR THE EXPENDITURES, WE DID IT SORT OF IN THE OPPOSITE DIRECTION TO SHOW THAT IF WE SPENT [00:05:01] LESS THAN THAT 25%, THEN WE'RE IN A BETTER PLACE. OF COURSE WE WANT, IF WE'RE BUDGETING THE MONEY, WE WANT TO USE IT, BUT IT'S JUST KIND OF SHOWING THAT WE HAVEN'T REALLY SPENT ALL THE MONEY OR WE HAVEN'T WENT OVER ON THAT SITE. AND SO THE POINT IS, UM, ALSO THAT WE WANT FEEDBACK ON IS THIS WORKABLE OR WHAT YOU WANNA SEE OR IS THERE ANYTHING ELSE YOU WANNA ADD TO THE, UH, REPORT THAT YOU THINK WOULD BE HELPFUL OR DO YOU WANT US TO EVEN SKIM IT DOWN AND YOU DON'T NECESSARILY EVEN NEED THE DETAIL? I LIKE IT. UM, IT'S, I LIKE THE, THE GRAY, GREEN, YELLOW. UM, WE TALKED ABOUT THAT IN THE PAST. JUST BIG SNAPSHOT. I DON'T KNOW IF, UH, I DON'T KNOW IF WE'VE TOO FAR UNDERSPENT IF WE WOULD ALMOST CONSIDER THAT A RED IN SOME CASES. I DON'T, I DON'T KNOW IF WE'RE BEHIND. I MEAN IF THAT MEANS WE'RE BEHIND ON SOMETHING OR MM-HMM . I DON'T KNOW IF WE ALMOST NEED A THRESHOLD DOWN THERE WHERE IT GOES BACK TO RED IF YOU'RE TOO LOW. I I DON'T I SEE WHAT YOU'RE SAYING BECAUSE YOU COULD LOOK AT IT BOTH WAYS. WELL, YEAH, I MEAN IT'S GREAT FROM AN OVERALL BUDGET, BUT IF IT'S, WE JUST HAVE SOME PROJECTS WE CAN'T EXECUTE OR, OR SOME BID WE'VE GONE OUT FOR, IT'S JUST BEHIND SCHEDULE AND I MEAN IT'S, IT'S GREAT WE'RE SPENDING LESS MONEY BUT IT'S GOTTA HAPPEN. YES, EXACTLY. IT'S STILL GONNA HAPPEN. YEAH. UM, THERE'S SOMETHING IN THE BUDGET THAT WE'RE NOT ACHIEVING THAT WE WANTED TO CORRECT. AND PARTICULARLY ON, PARTICULARLY ON THE CAPITAL SIDE THAT WOULD MERIT THAT TYPE OF ANALYSIS. YOU EXPECT THEM ONLY TO BE SPENT WITHIN THE YEAR. CORRECT. WITHIN THE PERIOD. THE OTHER THING, IT'S FAIR TO SAY THE CONVERSE IS ALSO TRUE. SO SOME THINGS YOU LOOK AT THEM AND YOU GO, OH MY GOODNESS, WE'RE RED. UM, ON A NUMBER OF THESE LINE ITEMS. UM, THE REASON IS BECAUSE WE'RE ACTUALLY GET GETTING AHEAD ON PURPOSE AND SPENDING DOWN. SO FOR INSTANCE, THE CCPD AND, AND THOSE TYPE OF FUNDS WE'RE ACTUALLY, UM, BUYING THE STUFF THAT WE NEED EARLY RATHER THAN WAITING. SO THAT'S NOT A BAD THING. THAT'S A GOOD THING. BUT IF YOU, IF YOU TAKE THAT IT'S IN THE RED, YOU THINK THAT'S A BAD THING? THAT'S NOT NECESSARILY, YEAH. YEAH. AND I GUESS AS THE YEAR PROGRESSES, THOSE WOULD COME BACK INTO AND THEY WOULD COME BACK INTO RANGE IF WE MAKE A LOT OF PURCHASES EARLY ON AND THEN SPENDING FALLS OFF. AND ONE OF THE THINGS WHICH THE, WHICH DOESN'T HAPPEN HERE, BUT I'VE BEEN IN ORGANIZATIONS THAT ACTUALLY, UM, PROFILE THE BUDGET TO SHOW THAT, YOU KNOW, IF YOU, IF YOU INTEND TO SPEND 50% OF THE BUDGET THE FIRST THREE MONTHS, THAT'S WHAT YOU BUDGET FOR AND YOU SHOW THAT. SO WE'LL BE IN THE GRAIN. WE DON'T, WE DON'T DO OH, WE, I THINK WE'VE TALKED A LITTLE BIT ABOUT THAT BECAUSE COMING FROM, I MEAN WHEN I WAS AT EXXON AND THEIR UTILITIES DEPARTMENT, WE HAD TO DO THAT BECAUSE YOUR CHEMICAL USAGE GOES UP IN SUMMER MONTHS. SO WATER TREATMENT, THEY'RE, IT'S GONNA BE VERY WELL OR AQUATICS IS PROBABLY THE BEST EXAMPLE OF THAT. I MEAN IT IS ALL THEIR REVENUE IS THE SUMMER, RIGHT? THAT'S RIGHT. YEAH. AND I, I THINK WE'VE HAD, I THINK YOU AND I HAVE HAD THIS CONVERSATION BEFORE, DON'T KNOW IF OTHERS HAVE BEEN INVOLVED IN IT, BUT I'VE ALSO SEEN PEOPLE GAMING THE SYSTEM USING PROFILING TO MASK THE FACT THEY'RE NOT SPENDING WHEN THEY SHOULD OR THE MOVER SPEND. THEY WON'T ADMIT THAT. SO IT WAS A DOUBLE-EDGED SWORD. YEAH. WORK CODE. DO YOU HAVE ANY QUESTIONS ABOUT THIS? UM, JUST, JUST TO KIND TO GET A CLARIFICATION. SO WHEN I SEE THE WORD BUDGET, FY RE BUDGET, THAT IS WHAT WE'RE EXPECTED TO MAKE, CORRECT? THAT'S WHAT WE BUDGETED FOR THEM TO BE ABLE TO SPEND FOR THE YEAR. FOR THE YEAR. MM-HMM . OKAY. AND THEN REVENUE IS WHERE WE AT SO FAR? YES. UP TO THIS POINT, YES. ALRIGHT. AND THEN, UM, SO OKAY, SO THE POTENTIAL, SO LIKE PARTS AND RECS, LIKE, SO THEY'RE LIKE 8.5% TO, TO BUDGET. WHAT, WHAT WOULD BE LIKE SOME OF THE WHY'S TO THAT? SO THAT, THAT, THAT FUND, UH, 2 0 9, THEY TYPICALLY GET LIKE CONTRIBUTIONS WHEN THEY GO OUT FOR GRANTS AND THINGS LIKE THAT. THAT'S WHAT IT'S USED FOR. SO IT'S NOT NECESSARILY ONE OF OUR UH, REVENUE GENERATING TYPE. IT JUST DEPENDS ON WHAT THEY'RE, THAT'S HOW THEY GET EVERYBODY IS THROUGH CONTRIBUTIONS. THAT'S JUST FOR THAT FUND SO THAT THEY CAN USE FOR CERTAIN THINGS. YES. OKAY. YEAH. SO THAT'S THE RENTAL FACILITIES GO IN THAT AS WELL OR NO, THAT'S IN THEIR PARKS. THAT'S IN GENERAL FUND. THAT'S WHAT THEY'RE EXPECTING? YES. THAT'S GENERAL FUND CONTRIBUTIONS. THAT'S HOW THEY GET THEIR REVENUE. WHAT I'M HEARING, NO, NO. SO THE, THE GENERAL PARKS DEPARTMENT IS IN GENERAL FUND THAT 2 0 9 IS A SPECIAL REVENUE FUND. SO IT'S WHEN THEY GET FUNDS OUTSIDE OF WHAT OUR TYPICAL OPERATING ALL ARE. SO WHEN THAT FUND WAS SET UP, THEY SOMETIMES [00:10:01] THEY RECEIVE LIKE GRANT FUNDING, THEY GOT BABIES AND WELL, WELL BAY TOWN PROGRAM THAT IS RELATED WITH THE STATE OR FEDERAL. SO THIS, SO THIS IS, THIS IS BASICALLY A MISCELLANEOUS REVENUE SMALL PER PORTION BACK REALLY. THEY'RE JUST KIND OF GUESSING HOW MANY GRANTS DO WE WE GET THIS YEAR? THAT'S EXACTLY RIGHT. YES. JUST BASED ON A HISTORIC, THAT'S WHAT THEY WOULD, IT CAN BE JUST ONE FISCAL YEAR OR PROBABLY FISCAL YEARS AND THE PURPOSE CAN BE DONE. AND GOING BACK TO THE, THE SNAPSHOT, WHATEVER THAT FIRST PAGE MM-HMM . UM, THE AQUATICS. YES. THEIR FUND BALANCE IS THAT UM, I GUESS IS THAT THE TOTAL FUND OR JUST FOR BUDGET YEAR I GUESS. 'CAUSE WE DIDN'T, THEY KIND OF GOT A LOAN OUT OF THE GENERAL FUND. YEAH. SO THEY STILL OWN THAT LOAN , IS THAT PART OF THAT? YES, BUT THIS IS THE WORKING CAPITAL. SO THE WORKING CAPITAL NUMBER IS JUST YOUR CURRENT ASSETS. AND I'M TRYING ODD TO GET INTO IT COUNTY, BUT IT'S JUST CURRENT ASSETS MINUS CURRENT LIABILITIES. SO THAT'S WHERE THIS IS LANDING. SO IT'S NOT INCLUDING ANY OF THEIR CAPITAL COSTS OR ANYTHING LIKE THAT, WHICH WILL MAKE THIS NUMBER MUCH LARGER. SO LIKE WHEN YOU GET OUR FINAL, UM, ANNUAL REPORT FROM THE AUDITORS, THAT NUMBER, BECAUSE THEY ADD ALL THE CAPITAL ASSETS, UM, TOGETHER ALL THE AMOUNTS TOGETHER, THAT NUMBER'S A LOT LARGER. SURE. WE'RE JUST TRYING TO LOOK AT YOUR CURRENT ASSETS AND CURRENT LIABILITY. SO THE ANSWER TO THE QUESTION, IS THAT ALL THAT THE OWE? NO, NO, IT'S NOT. IT'S STILL OWE. OKAY. A COUPLE. THE OWE TWO. SO THIS IS JUST BASICALLY THIS YEAR? YES. OKAY. AND SO I GUESS THAT, I GUESS WHILE THEY'RE CLOSED THROUGH THE WINTER, DID THEY DO SOME IMPROVEMENTS ON FACILITIES? IS THAT WHY EXPENSES ARE JUST SO HIGH RIGHT NOW? SO THEY'VE SPENT, YOU'RE TALKING ABOUT THE 53, THE WELL NO, THE EXPENSES ARE 4 66. THEY PROBABLY SPENT, SO DID THEY HAVE YEAH, THEY PROBABLY SPENT SOME FUNDS. THEY DID. 'CAUSE THEY KNOW THAT THEY'RE GONNA HAVE FUNDING COMING IN, UM, ONCE IN THE SUMMER TILL NOW. YEAH. YEAH. SO BASICALLY WE HAVE THEIR, UH, PERSONNEL COST IS IN THERE. THEY'VE SPENT FOR SUPPLIES, MAINTENANCE AND UH, SERVICES. SO, SO YOU'RE RIGHT, THE, THEIR PROFILE OF SPEND ISN'T MATCHED BY THEIR REVENUE. SO THEIR SPENDING ROUGHLY IN A STRAIGHT LINE, WHEREAS THEIR REVENUE COMES IN AND THEIR PEOPLE DROPS OFF. AND THAT'S WHY AT THIS STAGE THEY LOOK LIKE THEY'RE AT A LOSS. WE'LL NOT KNOW TILL LATER ON IN THE SEASON HOW WELL THEY'RE DOING AGAINST, YOU KNOW? RIGHT. YEAH, EXACTLY. YEAH. I MEAN USUALLY IT'S LAST YEAR WAS REASONABLY HEALTHY, BUT YOU KNOW, THE TRUTH OF IT IS, AND I THINK WE ALL NEED TO RECOGNIZE THIS, THAT THE SUGGESTION THAT PIRATES BAY IS, IS A BIG MONEY EARNER STUDY IS NOT TRUE. IS IT? IS IT A GOOD FACILITY? YES. IS IT A REASON THAT SOME PEOPLE COME HERE OR SOMETHING TO STAY IN BAYTOWN RATHER GO SOMEWHERE ELSE? YES. BUT DOES IT MAKE MONEY FOR THE CITY IN ITSELF? NO. OKAY. IT LOOKS GOOD. THEY'RE EASY TO FOLLOW. HOW OFTEN WOULD LIKE PARTS BAG RELEASE LIKE THEIR P AND L TO YOU ASKING THE RIGHT QUESTION HERE? MM-HMM. SO, UM, WHEN YOU SAY THEIR P AND L, LIKE THEIR, SO IF THEY'RE OPEN, HOW OFTEN WOULD YOU GET A REPORT FROM YOUR REVENUE? UM, SO, UM, THEY DEPOSIT THEIR CASH DAILY. SO AT EVEN ANY GIVEN TIME WE COULD GO LOOK AND SEE HOW MUCH REVENUE THEY'RE GENERATING. UM, WHILE THEY'RE OPEN. ANY OTHER QUESTIONS YOU HAVE? ANY OTHER QUESTIONS? NOT YET. . LOT TO DIGEST. YEAH. SUCH JUDGES. ANYTHING ELSE ON THAT? OKAY, IT LOOK GOOD. WE'LL GO TO, OH, , WE'LL [a. Overview of the City of Baytown FY23 & FY24 Bond Issuance.] GO TO THREE A, AN OVERVIEW OF THE CITY BAY TOWN, UH, FOR 23 AND 24 BOND ISSUANCE. OKAY. SO FOR THIS ONE, [00:15:01] THE REASON WE WANTED TO BRING THIS TO YOUR ATTENTION IS BECAUSE, UM, OUR CIP PLAN HAS WENT TO THE CIP COMMITTEE, RIGHT? AND BASED ON THAT PLAN, THIS IS HOW MUCH DEBT WE WOULD NEED TO ISSUE AN FY 24. SO WHAT WE NEED TO KNOW FROM THE FINANCE COMMITTEE IS BASICALLY WE'RE TRYING TO FIGURE OUT WHAT YOUR APPETITE IS FOR DEBT BECAUSE THIS IS A LOT OF DEBT, AS YOU CAN SEE IS $127 MILLION IN TOTAL DEBT. AND THIS IS THE BREAKDOWN BASED ON THE FUNDS. SO WOULD BE A, UM, A REVENUE BOND AND WATER AND SEWER, THE WATER AND SEWER IMPACT FEES. MDD FIRST IN STORMWATER WOULD BE A COMBINED TAX AND REVENUE, UM, UH, CERTIFICATE OF OBLIGATION. AND THE REASON FOR THAT IS SO THAT WE CAN GET A BETTER RATE ON OUR, UM, BOND ISSUE EVEN THOUGH THEY HAVE OTHER FUNDING TOOLS. SO, AND THEN FOR GENERAL FUND, WE ARE PROPOSING THAT WE CAN ISSUE $15 MILLION DEBT. WE'VE ALREADY DONE 25 MILLION IN THIS YEAR FOR NEXT YEAR, WHICH GOES ALONG WITH WHY WE ARE DOING THE BUDGET AMENDMENT FOR 23 BECAUSE PUBLIC WORKS HAD TO SHIFT SOME PROJECTS AROUND TO, UH, WORK WITH THE 15 MILLION. SO THIS IS THE ANNUAL DEBT PAYMENT THAT WE WOULD BE PAYING POTENTIALLY THIS IS THE APPROXIMATE AMOUNT PER YEAR FOR THE DEBT SERVICE. AND THEN THESE ARE THE, ALL THE DEBT ISSUANCES THAT WE WOULD HAVE TO DO IN 24. THIS IS 23. WE'RE STILL, UM, HOPING THAT WE WON'T HAVE TO NECESSARILY DO, UM, ALL OF THIS IN 23, BUT WE BELIEVE WE'RE, WE ARE GONNA HAVE TO ISSUE SOMETHING FOR WATER. AND SO WE'RE LOOKING AT THAT CLOSER. UM, BUT WE'RE TRYING TO HOLD OFF AND THEN JUST DO MAJORITY OF ALL THE ISSUANCES IN 24. THIS IS, I MEAN THIS LIST IS BASED ON WHAT THE CIP COMMITTEE? YES. HOW, HOW MUCH THEY HAVE ON THEIR LIST. YES. AND JUST HOW MUCH WE HAVE IN THE, I GUESS YES. AND, AND TO BE CLEAR, SO, UM, FOR ALL OF THEM EXCEPT THE GENERAL FUND, THE FUNDING SOURCE FOR THE DEBT PAYMENT IS FROM THE REVENUES THAT ACCRUE TO THOSE FUNDS. SO FOR BAWI IT'S THE FEES THAT GENERATE SIMILARLY FOR WATER AND SERVE THE MDD. IT'S SALES TAX AS WE KNOW FOR THE, FOR THE TERRAS, IT'S THE INCREMENT THAT FLOWS TO THE TERRAS. FOR THE STORMWATER UTILITY FUND, IT'S A STORMWATER UTILITY FEE. SO NONE OF THAT, UH, WOULD BE BACK FROM, FROM PROPERTY TAX OTHER THAN TO GET A LOWER RATE. WE ISSUE THEM AS CERTIFICATES OF OBLIGATION. SO THERE'S FULL FAITH AND CREDIT OBVIOUSLY FROM THE CITY. I, I MEAN MY, MY OWN VIEW OF THAT IS, UM, WE DO IT FOR NOW, IF SALES WERE TO GO AWAY, THOSE WOULD JUST BE REVENUE BONDS. SIMPLE AS THAT. YEAH. OKAY. YEAH, I GUESS IT'S, THERE'S TIMES WHERE THE RATES ARE SIMILAR AND THEN TIME, I GUESS IT JUST DEPENDS ON THE MARKET. IT IT DOES. I MEAN, FOR INSTANCE, THE HOTEL WE ENDED UP, WE, WE CHANGED IT AND, AND DID THEM AS REVENUE BONDS AND THE DIFFERENCE WAS NEGLIGIBLE. OKAY. SO IT WOULD JUST DEPEND ON THE MARKET. RIGHT. ? I DON'T HAVE ANY REAL QUESTIONS. I MEAN, I MEAN I'VE, I'VE, YOU KNOW, I'VE COS BUT UM, I KNOW IT'S A, IT'S A, IT'S A TOOL WE USE SO FOR AS LONG AS IT'S AVAILABLE, UM, MY OWN VIEW IS IF IT WENT AWAY, WE, WE STILL HAVE TO DO THE WORK. WE STILL HAVE TO FUND IT. WE JUST FIND IT A WAY TO DOING IT DIFFERENT AVENUE. YEAH. EXPLAIN, EXPLAIN CERTIFICATE OF OBLIGATION. THAT'S THE SAME THING. YES SIR. OKAY. WHAT IS THAT AGAIN? ? IT'S, IT'S, IT'S DEBT BACKED BY PROPERTY TAX THAT IS NOT ISSUED AS A RESULT OF A PUBLIC VOTE AS OPPOSED TO GENERAL OBLIGATION DEBT, WHICH IS UM, WHICH IS A RESULT OF UH, A PUBLIC VOTE AND GEN AND GENERALLY SPEAKING HERE, THEY'VE BEEN USED FOR UM, PROJECTS THAT, YOU KNOW, IT, IT'S FOR WATER, IT'S FOR SEWER, IT'S FOR INFRASTRUCTURE, UM, ISSUES THAT THE VIEW HAS BEEN HAS BEEN TAKEN THAT IF YOU TOOK IT TO VOTE THEY WOULD GET VOTED TRAIL. WHAT'S THE POINT OF WE THINK EVERYBODY'S TIME AND SPENDING MONEY ON ELECTION. UM, SOME CITIES HAVE USED CEOS TO FUND THINGS THAT UM, [00:20:01] I THINK A LOT OF PEOPLE WOULD SAY SHOULD HAVE GONE TO A PUBLIC VOTE. UH, THERE ISN'T A HISTORY OF DOING THAT HERE AND IT'S NOT SOMETHING I THINK US AN APPETITE FOR LAB. WE HAVE A TABLE OF, MAYBE WE CAN, WE, I DON'T KNOW IF IT'S BEEN SENT TO KEN BUT WE HAVE A TABLE OF LIKE TYPES OF PROJECTS AND THEN WHAT, YOU KNOW, WHAT TYPES OF DEBT WE WOULD USE FOR EACH PROJECT, EACH TYPE OF PROJECT. WE, WE FOUND THAT MAYBE LAST YEAR. YEAH, DIFFERENT FUNDING MECHANISMS. SO IF WE COULD GET THAT SENT TO. SO THE UM, SECOND PAGE IS JUST AN OVERVIEW OF WHERE WE ARE ON DEBT. SO THESE ARE OUR OUTSTANDING DEBT AMOUNTS HERE FOR EACH GROUP. THESE ARE THE TAX SUPPORTED, THIS IS THE UTILITY SALES TAX AND THEN OUR COMPONENT UNITS, WHICH IS OURS OR FUNDS LIKE THAT. AND THEN HERE IS ANOTHER SYNOPSIS OF OUR UNSPENT BOND PROCEEDS. SO YOU ARE ALWAYS AWARE WE CAN JUST KEEP YOU UP TO DATE AND WHAT WE PLAN TO DO IS PROBABLY ALSO ADD TO OUR FINANCIAL, THE CIP SNAPSHOT OF THE PROCEEDS, UM, THAT WE PRESENTED ONE TIME BEFORE THAT LEAH CREATED. UM, AND THEN THIS WAS JACOB A REQUEST FROM YOU THAT YOU WANTED TO SEE ALL THE DEBT. UM, I BELIEVE THAT HAS BEEN ISSUED. UM, OUR FINANCIAL ADVISOR WAS ABLE TO PROVIDE AT LEAST BACK TO 2013 OF ALL THE DEBT THAT WE'VE ISSUED OVER THE YEARS. SO THAT'S WHAT THIS IS. AND SO THERE'S ONLY ONE YEAR WHERE WE DID NOT ISSUE DEBT IN 2018 SO FAR AND THEN WE'LL ADD THE OTHER YEARS 20 20, 20 20 AND 2021. WE DIDN'T DO ONE IN 21. SO THIS IS WHAT HE PROVIDED. AS FAR AS WHERE WE ARE ON THE, I'LL, I'LL SHOW THE ONLY ONE WE DID IN 21 WAS THE REFUNDING. WE DIDN'T DO ANY YOU THAT ISSUANCE I CAN UPDATE. YEAH, I APPRECIATE IT. AND THAT WHICH WILL BE UM, AT UM, COUNCIL MEMBER IS OUR, WE HAVE A UM, INVESTMENT CONSULTANT THAT DOES OUR INVESTMENTS FOR US AND THEY PROVIDE A VERY DETAILED INVESTMENT REPORT THAT UM, YOU KNOW, IF WE WENT THROUGH THE WHOLE THING IT WOULD TAKE A LONG TIME BUT, SO THEN IN ORDER TO BE IN COMPLIANCE WE STILL ARE PRESENTED. CAN WE REFUND THAT? IS THAT LIKE REFINANCING? CORRECT. IT SHOULD TAKE A, IT SHOULD TAKE, YEAH, PAY THAT EXPENSIVE DEBT. SO NOT A GOOD TIMING. , ANY QUESTIONS? NOT ALRIGHT, SO THEN [b. The City of Baytown FY23 Budget Amendment - General Fund CIPF & Water & Sewer CIPF.] THE LAST ITEM THREE B IS UH, CITY OF BAYTOWN BUDGET AMENDMENT FOR GENERAL FUNDS, CIPF AND WATER. SO THIS IS ALSO A BREAKDOWN OF WHAT'S BEEN PRESENTED TO THE CIP COMMITTEE AND IS BASICALLY AN AMENDMENT, UM, BECAUSE WE HAD TO MOVE SOME FUNDING AROUND FOR DIFFERENT PROJECTS. SO IN ORDER TO BE TRANSPARENT WE JUST WANTED YOU TO BE AWARE OF THE CHANGES THAT HAVE BEEN MADE TO THESE PROJECTS AND THE AMOUNTS. THERESA, IF I CAN YES. ADD TO THAT A LOT OF THESE WERE FY 24 PROJECT WELL PROJECTS THAT WERE SLATED FOR CONSTRUCTION IN FY 24. WE HAD DESIGN MONEY IN 23 AND UM, THAT WAS WHEN WE WERE PLANNING ON 45 MILLION IN DEBT FOR 24 SINCE WE HAD TO REDUCE THE DEBT, YOU KNOW, UM, BASED ON COUNCIL'S DIRECTIVE, WE DIDN'T WANT TO START PROJECTS THAT WE COULDN'T WE RIGHT. SO THIS AMENDMENT BASICALLY, UM, YOU KNOW, PUTS, WE'RE NOT STARTING PROJECT SO WE'RE ABLE TO REDUCE THE AMOUNT BY 24. OKAY. SO WHAT THAT WAS, YOU KNOW, WE WENT OVER THAT WITH MR. IP GATE. WE HAD, YOU KNOW, A COUPLE PROJECTS THAT THEY MIGHT TOOK. THE OTHER ONES WERE, WERE DELAYED UNTIL A LATER DATE. YOU AFFORD IT WITHOUT SUCH A HIGH LEVEL OF, OKAY SO THE MIDDLE, THIS JUST KIND OF UH, MEMORIALIZES THOSE, [00:25:04] YOU LIST THE ONES THAT WERE LEFT OFF. UM, WELL I DIDN'T, WELL UM, WELL THEY, WELL YOU TALKING ABOUT THE ONES THAT WE POSTPONED, THEY POSTPONED? NO THIS IS JUST THE CHANGE FOR 20. I WONDER IF IT WILL SHOW THAT'S THAT PROPOSED BUDGET AMENDMENT COLUMN. IS THAT WHAT IT IS? THAT YOU NEED TO MAKE IT BIGGER? THESE ARE THE CHANGES THAT ARE BEING PROPOSED MM-HMM FOR THIS AMENDMENT. OKAY. SO LIKE WE'RE NOT DOING RIGHT. SO IF WE ARE TAKING IT OFF THEN WE'RE SAYING WE'RE OFF ON THE LANE. YES. AND WE PULLED IN SOME SIDEWALK MASTER PLAN. YES. OKAY. YES. I GOTCHA. YES. OKAY. OKAY. YEAH, SO IT'S ON THERE. ALL THOSE WE WERE STARTING DESIGN ON UM, DECIDED TO WAIT, SO WE'RE DELETING THE DESIGN COSTS. OKAY. A LOT OF FACILITIES RENOVATIONS ALSO. SO THE, THE GENERAL FUND CIP, THE CHANGE IS ONLY REALLY BASED ON THE INS AND OUTS ABOUT $17,000 IS NOT A MAJOR CHANGE. IT'S JUST WE JUST WANTED TO MAKE SURE THAT FOR TRANSPARENCY YOU'RE AWARE OF THE CHANGES THEN FOR WATER AND SEWER 5 27 THE CHANGE IS ACTUALLY LESS BECAUSE WE HAD TO UM, TAKE OFF SOME OF THE PROJECTS. OUR FUND BALANCE COULDN'T HOLD ALL OF THE PROJECTS THAT WE HAD LISTED WHEN WE WORKED WITH PUBLIC WORKS TO UM, CORRECT OUR PROJECTS. UM, AND TO TIDY UP AND CLEAN UP AND MAKE SURE WE HAD THE FUNDING NECESSARY FOR EACH OF THEM. AND SO IT ENDED UP BEING UM, DEDUCT EVERY DIRECTION. THERE'S ALSO UH, ONE OF THE MAJOR PROJECTS CAME IN WAY OVER. ITS CAME IN WAY OVER. OKAY. DISTRICT WASTE WATER TREATMENT PLAN THREE AND A OKAY. IT IS, UH, CBG PROJECT. AND IS THAT LISTED ON HERE? THAT DIFFERENCE. OH SEE THAT VERY BOTTOM ONE? YEAH, THREE AND HALF. OKAY. OVERALL STILL A DECREASE WITH ADDING THAT BACK IN. THE MAJORITY OF THESE BUSINESS IS COMING FROM THE PROJECT THAT OKAY. ALRIGHT. THANK YOU FOR THAT. UNLESS ARE GOOD. I DON'T THINK THAT'S SOMETHING WE'VE ALWAYS DONE RIGHT? NO. SO WE, WE DO NOT. GOOD. THAT'S GOOD. OKAY. ANY OTHER QUESTIONS? NOPE, NOT YET. ? YEAH, RUN THROUGH THAT AND YEAH, IT ALL DIGEST AS I SLEEP AS IN THE MORNING. SEE NUMBERS A LITTLE TIME. ALRIGHT, WELL THEN WE HAVE ADDRESSED ALL THE ITEMS. THIS MEETING IS ADJOURNED. FOUR. * 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.