* 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. GO AHEAD AND CALL [00:00:01] THIS MEETING TO ORDER AND, UH, FIRST ORDER BUSINESS ITEM ONE ASSISTANT COMMENTS. , DID WE, NO, SOME MEMBERS SIGNED UP, BUT THEY'LL SIGNED UP NOTHING. OKAY. ALRIGHT. OH, WE JUST CONFIRMING THERE WERE NO COMMENTS. OKAY. NO. ALRIGHT. OKAY. ALRIGHT. WE WILL GO AHEAD AND, UH, [a. Consider approving the minutes of the Baytown Redevelopment Authority and Tax Increment Reinvestment Zone Number One joint meeting held on June 15, 2023.] ITEM TWO A IN SEVEN MINUTES OF THE JUNE 15TH, 2023 MEETING. GUESS EVERYONE HAD A CHANCE TO, UH, LOOK AT THE PACKET THAT WAS SENT OUT AHEAD TIME, SO I LIVELY APPROVE. OKAY. I HAVE A MOTION BY MR. BEARD. SECOND. SECOND. ALRIGHT. ANY COMMENTS? ALRIGHT, ALL THOSE IN FAVOR? AYE. AYE. ALL THOSE OPPOSED LIKE SIGNED. OKAY. ALRIGHT. MOVING ON TO ITEM [a. Consider approving the Tax Increment Reinvestment Zone Number One Annual Report for Fiscal Year 2023.] THREE A, CONSIDER APPROVING THE TAX ZONE NUMBER ONE AND THE ANNUAL REPORT FOR FISCAL YEAR 2023. AMELIA? OH YES, REAL QUICK. UM, A REQUEST WAS MADE BY A DIRECTOR TO, UH, FOR SOME ADDITIONAL INFORMATION ON THIS ITEM, UM, UH, YESTERDAY EVENING. SO WE DID PROVIDE SOME OF THAT INFORMATION VIA EMAIL. THAT WAS THE, UH, ADOPTED, UH, BUDGET AT THE TIME, UH, WHICH IS AVAILABLE ON THE CITY'S WEBSITE AS ALWAYS. UM, AND SO THIS S BUDGET IS PART OF THE CITY'S OVERALL, UM, BUDGET. THIS IS A COMPONENT UNIT, IF YOU WILL, OF OUR MANY, MANY DIFFERENT TYPES OF SPECIAL DISTRICTS. UM, SO THAT INFORMATION WAS PROVIDED AND THEN PROVIDED HERE AT THE TABLE IS THE, THAT INFORMATION REQUESTED FOR TERRORIST EXPENDITURES FOR FY 2223. SO, WHICH IS IN, UM, THE, UH, THE FISCAL YEAR FOR WHICH THE, UM, ANNUAL RECORDING ANNUAL REPORT IS OKAY. IS TIED TOO. SO I'LL LET ABD EXPAND ON THE ANNUAL REPORT AND I APPRECIATE Y'ALL RESPONDING TO THAT AS QUICK AS YOU DID. ABSOLUTELY. ALRIGHT, ANYTIME YOU HAVE ANY, ANY DIRECTORS HAVE ANY QUESTIONS, PLEASE GIVE THE STAFF. UH, STAFF'S VERY, VERY RESPONSIVE AS YOU POINTED OUT, MIKE. APPRECIATE THAT. APPRECIATE THE, UH, GOOD ATTENTION TO THAT. ALRIGHT. OKAY, SO ON THE ANNUAL REPORT, THAT CHAPTER THREE 11 TO PROPERTY TAX CODE THAT GOVERNS TS REQUIRE AN ANNUAL REPORT TO BE PREPARED WITHIN 150 PREPARED AND FILE TO OLD PARTICIPANT 150 DAYS OF THE END OF FISCAL YEAR. AND THAT DAYS APPROACHING. UH, SO WE HAVE PREPARED THE ANNUAL REPORT, YOU KNOW, IN BASICALLY IN THE SAME STRUCTURE THAT WE DID LAST YEAR. UM, HOPEFULLY YOU'LL HAD THE CHANCE TO LOOK AT THE, THE NUMBERS AS YOU CAN SAY. UM, NUMBERS ARE CONSISTENT, YOU KNOW, PROPERTY VALUES HAS GROWN. UM, I THINK IN DETER BY ABOUT, UM, $34 MILLION BETWEEN LAST YEAR AND THEN, AND THEN THIS YEAR. SO THOSE CONTINUE TO, TO GO UP AGAINST, PARTICULARLY ON THE ORIGINAL ZONE. UH, LAST YEAR THE TOTAL PROPERTY BILL WAS ABOUT $341 MILLION. THIS YEAR IT'S ABOUT $373 MILLION. NOW, EXCUSE ME FOR INTERRUPTING. DOES THAT, DOES THAT TAKE INTO, UH, ACCOUNT THE UH, I GUESS THE CHANGES THAT WERE MADE INTO THE, UH, ST CENTER DEVELOPMENT AREA? NO, THAT IS JUST THE ORIGINAL ZONE. SO WE, WE HAVE BROKEN IT IN, IN SECTION FIVE OF THE ANNUAL REPORT. WE'VE BROKEN IT INTO THREE SECTIONS. WE HAVE THE ORIGINAL ZONE, WE HAVE THE 2020 EDITION. WE'VE SAW THREE. YES SIR. SO THAT ADDITIONAL PROPERTY IS ABOUT 45 MILLION. SO SINCE IT WAS ADDED THIS YEAR, IT DID NOT CHANGE. OKAY. SO THE CHANGE IN VALUE FOR CAPTURE VALUE IS ONLY, THERE'S NOTHING IN THERE 'CAUSE IT'S STILL A BASE BASE HERE FOR THIS YEAR. BUT THE ORIGINAL ZONE, WHICH WAS CREATED BACK IN 2 19 99, WITH THOSE CHANGE THAT HAVE HAPPENED OVER THE YEAR HAD ABOUT, UH, 33 MILLION, $32 MILLION IN PROPERTY VALUE APPRECIATION BETWEEN LAST YEAR AND THIS YEAR. SO THAT IS THE, THE MAIN CHANGE BETWEEN LAST YEAR AND THIS YEAR. THAT 2020 EDITION THAT WAS ADAPTED A FEW YEARS BACK HAD ABOUT $60,000 INP APPRECIATION. SO THE VALUE REMAINED PRETTY MUCH STABLE. AND AS YOU NOTED THAT THE, THE MOST RECENT EDITION, WHICH IS THE 2023 EDITION, IS BRINGING IN ABOUT $45 MILLION, WHICH WOULD BE AVAILABLE TO PAY INCREMENTS IN THE, IN, IN THE, IN FUTURE YEARS. SO THAT IS THE, THE MAIN COMPONENT OF THIS REPORT IS BASICALLY TRACKING THE, THE CHANGES IN PROPERTY VALUATION BETWEEN LAST YEAR AND THIS YEAR. AND WE'VE ALSO, UH, SUMMARIZED BASICALLY THAT THE FUND BALANCES, THAT'S IN SECTION TWO OF THE ANNUAL WHERE YOU WILL SEE THAT THE REVENUES THAT WERE COLLECTED, YOU KNOW, DURING THE YEAR, UM, YOU ALSO SEE THE EXPENDITURES, THE DETAILS OF WHICH ARE PROVIDED, UH, AS, AS, UH, AMELIA MENTIONED EARLIER AS AND, AND, AND FINALLY THE, UH, BASICALLY THE AMOUNTS THAT ARE NEEDED TO PAY DEBT SERVICE, UH, FOR, FOR NEXT YEAR. SO THIS IS THE, THE STRUCTURE OF THE ANNUAL REPORT AND HOPEFULLY, UM, YOU KNOW, THIS, THIS GIVES YOU KIND OF A SNAPSHOT OF WHAT HAS [00:05:01] HAPPENED DURING THE YEAR. AND THE INTENT IS TO LET ALL PARTICIPATING JURISDICTIONS KNOW THAT, YOU KNOW, THE ACTIVITIES OF DETER WERE DS, THIS IS THE PALLET OF THE VALUATION GROWTH BETWEEN THE ORIGINAL YEAR AND CURRENT YEAR. THIS IS THE REVENUE THAT WAS COLLECTED OVER THE YEAR. THESE ARE THE EXPENDITURES THAT WERE SPENT DURING THE YEAR AND THIS IS OUR END END BALANCE, THE FUND BALANCE. SO ALL OF THAT INFORMATION IS CAPTURED IN THIS ANNUAL REPORT. OKAY. ALRIGHT. WELL I KNOW FIDELIS IS, IS LOOKING TO COME TO US AT SOME FUTURE MEETING, UH, TO DISCUSS THE HERS AND, UH, THEIR INVESTMENT IN THAT PROPERTY OUT THERE AND, UH, ALL THAT. SO STEVE, DON CARLOS'S FORMER MAYOR IS WORKING WITH ALAN, UH, UH, TO, I THINK DEVELOP A PLAN, IF YOU WILL, BETTER, BETTER SENSE, BETTER WORDING TO UH, LOOK AT HOW THEY CAN MOVE FORWARD SURE. WITH THE DEVELOPMENT OF THAT AREA OUT THERE. SO I THINK WITH THE TERRA'S PARTICIPATION IN IT, SO, AND AS THEY DO, UH, AND AS WE GET MORE AND MORE INFORMATION AND MORE CONCRETE INFORMATION ABOUT WHAT THEY'RE PLANNING TO DEVELOP, WE'LL BE DOING SOME ANALYSIS AND THEN WE'LL BE ABLE TO UPDATE SOME OF THE, THE TURS ASSUMPTIONS AND NUMBERS THAT ARE IN THE, IN THE CURRENT PLAN. YES. STEVE HAD ASKED ME HERE RECENTLY ABOUT THE, UH, BASE VALUE OF IT AND I, HE SAID SOMETHING AROUND 45 MILLION. I SAID I WASN'T. YES. YEAH. I SAID I THOUGHT THAT WAS KIND OF THE BALLPARK OF IT, BUT I WASN'T QUITE SURE. SO THAT CONFIRMED WHAT I THOUGHT WHEN I SAW IT IN THERE. I BACK CONFIRM. SO I I HAD MENTIONED IT TO STEVE THE OTHER DAY AT ROTARY, SO GOOD DEAL. ALRIGHT. I HAVE A, I HAVE A COUPLE OF QUESTIONS RIGHT NOW. WE HAVE 4.5 MILLION SITTING IN THAT FUND BALANCE AS OF 9 30 23. OKAY, THAT'S CLOSE ENOUGH. SO HELP ME WITH THE CASH FLOW. THAT MONEY GETS APPRAISED, THE COUNTY CUTS THE TAXES, THAT MONEY COMES TO THE CITY AND IT'S PUT INTO AN ACCOUNT BY ITSELF OR IS IT GO IN THE BUDGET AND IT'S CART BACKED OUT? WHERE DOES THAT MONEY SIT? UH, BY LAW IT'S ACTUALLY REQUIRED TO SIT IN A TIF FUND. SO PART OF THE THE TURS PROCESS IS ONCE THE CITY CREATES A A TS THE CITY'S ALSO REQUIRED TO SET UP A SEPARATE TS FUND AND ALL THE REVENUES AND EXPENDITURES OF THE TURS WILL HAVE TO BE MADE FROM THAT ACCOUNT. SO THAT'S A SEPARATE FUND, FUND GENERATED ANY INTEREST. I, I NOTICED THERE'S NO INTEREST GENERATED ON ANY OF THE REVENUES COMING IN. I MEAN I, I DON'T HAVE THAT INFORMATION WITH ME, BUT WE CAN CERTAINLY CHECK WITH FINANCE AND IT'S POINT A HALF MILLION DOLLARS. I WOULD THINK YOU GOT FOUR AND A HALF MILLION DOLLARS JUST SITTING THERE. THAT'D BE GENERATING AIN'T, IT AIN'T GONNA BE A LOT, BUT IT'S, IT IS SOMETHING SO, WE'LL WE WILL CHECK WITH FINANCE AND, AND AND, AND GET THAT, THAT UPDATE AS PART OF THE NEXT ON SOME OF THOSE, SOME OF THOSE THINGS. I DON'T KNOW HOW THE LEGISLATURE, 'CAUSE THE LEGISLATURE'S THE ONE THAT AUTHORIZED ALL THIS, THEY WERE THE ONES THAT AUTHORIZED CITIES AND COUNTIES TO SET UP TURS BACK. YES. WAY BACK THERE. SO THERE ARE SOMETIMES THERE'S RESTRICTIONS AND STIPULATIONS ON WHAT CAN BE DONE WITH THAT MONEY. SO IT'S, THAT'S THAT'S MY QUESTION. YEAH. DOES IT HAVE THE ABILITY TO GENERATE INTEREST AND IF IT DOES EXACTLY. THAT'S A GOOD QUESTION. MY WHY ISN'T IN IT GENERATING INTEREST AND HOW MUCH INTEREST DID IT GENERATE BECAUSE IT IS TAX DOLLARS AND IT IS PART OF THE FUND. SO, I MEAN, I DON'T HAVE ANY MONEY SITTING OUT THERE, JUST SITTING IN THE BANK SOMEWHERE IS ALL, EVERYTHING I HAVE OTHER THAN MY CHECKING IS DRAWING SOME INTEREST. IT AIN'T DRAWING MUCH, BUT IT IS DRAWING SOME SO IT, IT, IT IS AND IT'S SUBJECT TO THE CITY'S, UH, INVESTMENT POLICY BECAUSE EVEN THOUGH IT'S A SEGREGATED FUND, IT'S STILL MANAGED, YOU KNOW, UNDER THE CITY'S INVESTMENT POLICY. SO THAT'S WHY WE WOULD, WE WANT TO DEFER THIS TO FINANCE DEPARTMENT. THAT'S, THAT WAS KIND OF OUR WHERE IT'S HEAD AND WHO'S MANAGING THAT MONEY IS IN THE CITY, BUT IT'S IN A SEPARATE FUND SOMEWHERE. YES. IT'S REQUIRED TO BE IN A SEPARATE FUND. IF WE COULD FIND THAT ANSWER TO THOSE QUESTIONS, I'D APPRECIATE IT. YES SIR. OKAY. PROBABLY PRIOR, BEFORE YOU REPORT TO THE COUNCIL, 'CAUSE I ASKED TWO COUNCIL MEMBERS AND THEY DIDN'T HAVE A CLUE. I DIDN'T EXPECT THEM TO, SO THEY NEVER DID . OKAY. WE HAVE A, UH, ITEM HERE FOR US TO UH, CONSIDER. YES SIR. I HEAR A MOTION TO SETTLE THIS TO APPROVE QUESTION. ALRIGHT, KYLE, A MOTION SECOND. ANY ANY OTHER QUESTIONS? YEAH, I, I, I HAVE A PROBLEM APPROVING THIS UNTIL WE GET THE, AN QUESTION ANSWERED ON THE INTEREST. OH. BECAUSE IT IS PART OF THE FUND BALANCE AND I DON'T, I DON'T WANNA SEND A REPORT OUT UNTIL WE KNOW WHAT'S HAPPENING WITH MONEY. THAT'S MY COMMENT. SO I'LL VOTE AGAINST IT. MY ONLY COMMENT IS THAT IT REALLY DOESN'T MATTER WHETHER WE, WHETHER IT'S STRONG INTEREST OR NOT, IT'S, IT'S NOT GOING TO AFFECT APPROVAL. IT AFFECTS THE NUMBER, NUMBER, GENERALLY NUMBER IS NOT, NOT CHANGE BECAUSE THIS [00:10:01] IS THE BALANCE AS OF NINE 30. THAT'S WHAT NEEDS TO BE REPORTED. SO THAT'S 20 REPORT OF, SO HOW MUCH OF THAT IS INTEREST? WELL THAT'S THE INFORMATION THAT WE'RE, SO WHAT I CAN TELL YOU IS THAT THAT BALANCE IS NOT GONNA CHANGE BECAUSE IT WAS WHAT THE, THE BALANCE WAS AS OF NINE 30 AND THEN THE REQUIREMENT IS TO REPORT WHAT IS IN THE FUND OR WAS IN THE FUND AS OF NINE 30. SO THAT INFORMATION IS NOT, WHETHER, WHETHER IT'S INTEREST, WHETHER IT'S INTEREST FAIR OR NOT. YES, THE, THE MONEY IS, IS ACCURATE. I UNDERSTAND WHAT YOU'RE SAYING, BUT THE READ THE REPORT INCORRECT. IF YOU JUST SAY THAT REVENUE GENERATED AND YOU SHOW ZERO INTEREST ON THE REPORT. AGAIN, LIKE I SAID, WE HAVEN'T, THIS IS SOMETHING THAT WE WILL HAVE TO LOOK INTO THE, THE DETAILS OF THE LEDGER AND THEN, BUT LIKE I SAID, THE THE 4,000,576 IS NOT GONNA CHANGE. OKAY. ALRIGHT. WE HAVE A MOTION AND A SECOND. ALL THOSE IN FAVOR? AYE. AYE. ALL THOSE OPPOSED LOCKS? AYE. NO. OKAY. ALRIGHT. MOVING ON TO ITEM FOUR. [a. Receive a report from the Zone Administrator.] HAVE A, UH, REPORT ADMINISTRATION. YES. UH, THANK YOU MR. CHAIRMAN. UH, JUST TO UPDATE YOU, UH, WE MAY NEED TO INQUIRE ELLE'S AVAILABILITY FOR NEXT MONTH. UH, THERE POSSIBLY MIGHT BE SOME NEW BUSINESS FOR THE, UH, BOARD TO CONSIDER, UH, IN COOPERATION WITH THE CITY, UM, ON POTENTIAL, UM, UH, I GUESS WHAT IS IT? UM, ISSUANCE OF BONDS. SO IN A LOCAL YEAH, IN A LOCAL AGREEMENT ON THAT SUBJECT. SO WE MAY BRING Y'ALL, CONVENE Y'ALL FOR THAT MEETING NEXT MONTH, SAME DATE AND TIME. SO THAT WOULD BE, UH, MARCH 5TH, TUESDAY AT 4:00 PM OKAY. SO 4:00 PM ABBY'S 4:00 PM ABBY'S OFFICE. NOT, I'LL MAKE SURE IT DOESN'T INTER DOESN'T GET MIXED UP WITH MY PARK AND REC SIR. SURE. ABBY'S OFFICE WILL REACH OUT TO EVERYBODY TO, TO COORDINATE THAT AVAILABILITY. BUT JUST TO PUT IT ON YOUR RADAR FOR NEXT MONTH. 'CAUSE WE USUALLY MEET AS NEEDED. SO IS THAT GONNA BE MARCH 5TH? YES. YES SIR. FIRST TUESDAY, MARCH 5TH. AND OTHER ITEM, AS YOU MAY BE FAMILIAR WITH, UM, LAST YEAR, AT THE END OF LAST YEAR IN DECEMBER, UM, DECEMBER, UH, 14TH AT THE REGULAR CITY COUNCIL MEETING. CITY COUNCIL DID AUTHORIZE THE CREATION OF A SECOND TOURS, UH, ZONE FOR THE CITY, UH, AND THE SOUTHERN PART OF THE CITY, UH, DOWNTOWN AREA. UM, THE MAP AND ON ALL OF THAT SHOULD BE ON OUR GIS SOFTWARE, UH, MAPPING SOFTWARE. FOR YOUR REFERENCE, UH, THE COUNCIL WILL SERVE AS THE TURS BOARD FOR AT LEAST THE FIRST YEAR OF THAT BOARD AND TO WHICH THEY WILL EITHER VEST THIS BOARD OR CREATE A SEPARATE BOARD TO OVERSEE THAT ZONE. SO FOR NOW THEY WILL ADMINISTER THAT BOARD. GOOD. AND UH, ABBY, I DON'T KNOW IF YOU HAD ANYTHING TO ADD, BUT THAT'S AN UPDATE. YEAH, THAT'S ALL WE HAVE ON THAT. ALRIGHT. OKAY. SAYING THERE'S NO FURTHER BUSINESS, ALWAYS MADE A CONCERN. * 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.