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OF THE BAYTOWN FINANCE COMMITTEE.[ CITY OF BAYTOWN NOTICE OF MEETING BAYTOWN FINANCE COMMITTEE THURSDAY, MARCH 7, 2024 5:00 P.M. BAYTOWN CONFERENCE ROOM, CITY HALL 2401 MARKET STREET, BAYTOWN, TEXAS 77520 AGENDA CALL TO ORDER AND ANNOUNCEMENT OF QUORUM ]
IT IS THURSDAY, MARCH 7TH, FIVE O'CLOCK.WE ARE IN THE BAYTOWN CONFERENCE ROOM AT CITY HALL AND WE DO HAVE A QUORUM.
UH, SO FIRST WE HAVE CITIZEN COMMENTS.
DO YOU HAVE ANY CITIZENS SIGNED UP TO SPEAK? SO WE WILL MOVE TO
[a. Consider the approval of minutes for the Finance Committee meeting held January 8, 2024.]
TWO A CONSIDER THE APPROVAL OF MINUTES FOR THE FINANCE COMMITTEE MEETING HELD FEBRUARY 8TH, 2024.DO I HAVE A MOTION FOR APPROVAL? MOVE TO APPROVE.
[a. Discuss the City of Baytown Investment Policy in accordance with the Public Funds Investment Act, Section 2256.005 (e).]
A.DISCUSS THE CITY OF BAYTOWN INVESTMENT POLICY IN ACCORDANCE WITH THE PUBLIC FUNDS INVESTMENT ACT SECTION 6.005.
OKAY, SO THIS IS JUST THE ANNUAL CLEANUP ITEM.
WE HAVE TO BRING IT TO COUNCIL, UM, EVERY BE APPROVED AND THERE'S A LETTER FROM OUR, UM, INVESTMENT CONSULTANT THAT HAS REVIEWED IT TO ENSURE THAT WE ARE IN FULL COMPLIANCE.
SO I HAVE ATTACHED THE LETTER, UH, HERE.
AND SO THE ONLY CHANGES ON PAGE, LET SEE, PAGE 19.
UM, THEY RECOMMENDED THAT WE REMOVE HILLTOP BECAUSE HILLTOP IS ACTUALLY ALSO OUR INVESTMENT CONSULTANT.
SO THEY REMOVED THEIR NAME AND REPLACED IT WITH DUNCAN WILLIAMS. AND THEN THEY ALSO REMOVED, UH, FTN FINANCIAL AND PUT RAYMOND JAMES AND ASSOCIATES.
AND THEN THE ONLY OTHER, WE ADDED TEXAS CLASS BECAUSE THAT'S ANOTHER, UH, UH, INVESTMENT POOL THAT WE ARE LOOKING TO POTENTIALLY, UH, PUT SOME INVESTMENT INVESTMENTS IN.
AND SO THOSE ARE THE ONLY THREE CHANGES FROM LAST YEAR.
SO WE REMOVED HILLTOP FROM BROKER DEALERS? YES, BECAUSE, BECAUSE OUR INVESTMENT, WE, BUT WE HAD, WE USED THEM INCAPACITY.
IT'S NOT AN ISSUE WITH TAKING THEM OFF.
HOW ARE THEY SELECTED? UH, HILLTOP WE WENT OUT.
HOW WERE THESE NEW ONES SELECTED? UM, THEY JUST KIND OF, WE KIND OF GO BY THEIR RECOMMENDATION ON HOW THEY DO THEIR, UM, UH, ANALYSIS OF WHO THEY THINK THEY WOULD POTENTIALLY GO WITH.
UM, BUT WE CAN GET THE FULL DETAILS OF HOW THEY SELECTED, HOW THEY ACTUALLY SELECTED THEM.
AND I'M ASSUMING IF THERE WAS EVER ANYONE ON HERE OR NOT ON HERE, WE NEEDED TO USE, WE COULD AMEND THE POLICY AT THAT TIME ANYWAY, SO.
ANY OTHER QUESTIONS? DISCUSSION? SO WE'LL BE TAKING IT TO COUNSEL FOR YOU GUYS TO APPROVE IT BECAUSE YOU HAVE TO APPROVE IT EVERY YEAR.
INVESTMENT POOLS, WHAT IS THAT EXACTLY? SO THERE ARE OTHER MUNICIPALITIES, WE PUT ALL OUR MONEY TOGETHER AND WE HAVE, THEY INVEST THE FUNDS AND IT'S A SHARED, UH, KIND OF POT.
SO WE PUT OUR MONEY IN, WE INVEST, AND THEN WE GET OUR PORTION FROM THAT POOL EXTREMELY SECURE.
SO LIKE A SWEEP ACCOUNT, A MONEY MARKET ACCOUNT OR LIKE SAY IF I FIVE, 4.5% RIGHT NOW, OR 5% RIGHT NOW, I CAN PUT IN TODAY'S MARCH 7TH, I CAN PUT IN 20 MILLION BUCKS.
IT GATHERS 5% FOR, YOU KNOW, OR WHATEVER THE APRS, UH, AMORTIZE OVER THE DAY OR OVER THE YEAR, GATHERS THAT IN.
AND IF I NEED THE MONEY, EITHER THAT SAME NIGHT ON MARCH 7TH OR THE NEXT DAY, I CAN PULL IT RIGHT BACK OUT.
IT COMES RIGHT INTO MY CASH ACCOUNT AND IT JUST GATHERS INTEREST WHAT'S SITTING THERE.
IT'S JUST A QUICK WAY TO MAKE MONEY, UM, AND EASILY MOVE THE MONEY BACK AND FORTH WITHOUT, AS WE NEED IT.
UM, WITHOUT HAVING TO STRESS ABOUT LOSING MONEY SOMEWHERE OR PUTTING IT INTO LIKE A, UH, A, A LONG TERM INVESTMENT.
OR A NON ACCOUNT OR A LONG TERM INVESTMENT WHERE IT'S OUR ACCOUNT IS NOT AS LIQUID.
AND WE DO HAVE, UH, OTHER INVESTMENTS THAT ARE NOT AS LIQUID LIQUID, BUT WE USE THEM AS OUR INVESTMENT POOLS TO REMAIN LIQUID AND SOME OF, SO WE CAN MAKE SURE WE HAVE CASH TO PAY THE BILLS.
SO WE WOULD USE THIS FOR LIKE A TWO 12 PAYMENT OR SOMETHING LIKE JUST TO HOLD IT THERE UNTIL WE, A LOT OF THE CASH SITS, RIGHT? YEAH.
A LOT OF THE CASH SITS AND THEN IT'S NOT INVESTED.
AND, BUT THEN WE ALSO HAVE WHERE OUR INVESTMENT CONSULTANT WILL SAY, HEY, YOU HAVE THIS MONEY SITTING, WE FOUND A GOOD INVESTMENT FOR YOU.
HOW MUCH YOU SAY WE TRY TO CONSIDER WHEN WE MAY NEED THE CASH BEFORE WE DO ONE OF THOSE.
BECAUSE IF WE NEED THE CASH, DEPENDING ON THE FUND, WE WANNA BE ABLE TO USE THAT MONEY TO PAY FOR THEIR INVOICES AND THINGS LIKE THAT IF WE NEED IT.
SO IT'S JUST A BALANCE OF TRYING TO MAKE SURE WE HAVE ENOUGH MONEY TO PAY FOR THINGS.
YOU REMEMBER, WE, WE SPEND ROUGHLY A MILLION DOLLARS A DAY.
AND THEN WITH ALL OF OUR FUNDS TOGETHER, IT'S I THINK THE, IN THE FINANCIAL REPORTS, LIKE 4 75 OR SOMETHING LIKE THAT, 5 33 OR WHATEVER, WHATEVER TODAY'S NUMBER WAS, I FORGET WHAT IT WAS.
UM, WHEN WE LOOKED AT IT, IT WAS LIKE 525 MILLION TODAY.
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SO, AND SPENDING ROUGHLY A MILLION DOLLARS A DAY, ALMOST ALL OF OUR MONEY COMES IN LIKE DECEMBER, JANUARY, RIGHT? IN A VERY SHORT TIMEFRAME.ALMOST ALL THE MONEY THAT WE GET IS CAPTURED WITHIN A THREE MONTH PERIOD.
SO WE'RE SITTING ON THIS LARGE SUM OF CASH FOR A VERY LONG TIME AND IT, WE ONLY ONLY PAY A MILLION DOLLARS A DAY.
AND SO WHILE THAT STUFF IS JUST SITTING THERE, IT'S TRYING TO, WE'RE TRYING TO MAXIMIZE IT IN DOZEN IN THIS SWEEP ACCOUNT.
AND WHAT ELSE IS NOT, WE CAN, UH, INVEST IT INTO OUR LADDER SYSTEM.
WELL, WE LOOK AT THE BANK EVERY DAY AND DETERMINE HOW MUCH WE NEED TO TRANSFER OUT INTO THIS ACCOUNT TO TRY TO GET INTEREST AND THEN LOOK AT ANY INVESTMENTS WITH OUR INVESTMENT CONSULTANT TO SEE IF THERE'S ANYTHING WE SHOULD BE THAT THEY BELIEVE IS A GOOD INVESTMENT FOR US.
ALRIGHT, ANY OTHER QUESTIONS ON THE INVESTMENT POLICY? SHE'S OVER THERE.
SO I SHOULD PROBABLY STAY OVER HERE.
[b. Discuss the budget amendment for Fiscal Year 2024.]
WE'LL GO TO ITEM THREE B, WHICH IS TO DISCUSS THE BUDGET AMENDMENT FOR FISCAL YEAR BUDGET AMENDMENT.SO WE'RE GONNA PULL THIS, UM, SIMPLY BECAUSE WE WOULD LIKE TO REVIEW IT SOME MORE.
UM, WE ARE FINDING THAT, UM, WE FINALLY PUBLISHED THE BOOK ONLINE.
WE FINALLY PUBLISHED IT ONLINE, BUT AS WE WERE VERIFYING THE NUMBERS AND REVIEWING, WE FOUND THAT SOME OF THEM AREN'T TYING.
SO WE WANNA MAKE SURE WE REVIEW IT AGAIN BEFORE WE REVIEW YOU GUYS TO APPROVE.
BUT WE CAN SHOW YOU AT LEAST THE HAPPY BUDGET OR AT LEAST OUR FIRST NO, THE UM, LIKE THE HOUSTON ONE, IT IS NOT GREEN.
NO, IT'S NOT LIKE THAT ONE YET.
NO, WE'RE NOT, WE'RE NOT THERE YET.
THEY'RE TRYING, THESE LADIES HAVE, UH, SO MANY PROJECTS IN THE AIR RIGHT NOW.
THIS IS, UH, THE HOUSTON THING IS, IS DID YOU HIT ON THAT'S NOT GREEN THOUGH.
SO IN THE MEANTIME, SO IT WON'T BE ON NEXT WEEK'S BUDGET.
THE MOUSE AND KEYBOARD TURN GET 84 INCH TV.
THE PROJECTOR, RIGHT? WE SEE IT.
BUT WE STILL NEED THAT WHITEBOARD.
WE DON'T HAVE COVESTRO MONEY, YOU KNOW.
OH, I DON'T, WE DON'T HAVE THAT EITHER.
THE SCHOOL DISTRICT DOES AND THEN IT GOES STRAIGHT TO THE PRINTER IF YOU WANT IT TO.
WE'LL HAVE TO TALK TO THE SCHOOL DISTRICT ABOUT THAT.
I KNOW, RIGHT? THE SCHOOL DISTRICT, ACCORDING TO THE PAPER, DOESN'T HAVE ANY MONEY LEFT OVER, SO THAT'S NO COMMENT.
I MEAN, WHILE WE'RE BRAGGING ON STUFF, FRANK, YOU WANT SHOW ME CIP THING TOO? GOV THE CP WEBPAGE OPEN.
UM, WE HAVE SOME OF THAT IN OURS.
WE'RE MAKING A LOT OF GOOD CHANGES.
OKAY, SO LET'S GO INTO THE BUDGET.
SO THIS IS OUR NEW DIGITAL BUDGET BOOKS.
AND SO WHEN YOU CLICK IN, IT'S GOT THE BRIEF INTRODUCTION PAGES.
AND THEN WE HAVE OUR LETTER FROM OUR CITY MANAGER.
YOU CAN, UM, LOOK AT THE DEPARTMENT.
IF YOU CLICK HERE, IT WILL GIVE YOU THE FUND BREAKDOWN.
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AND THEN YOU CAN SEE FURTHER BREAKDOWN HERE AND SEE THOSE PAGES.AND THEN WE ALSO HAVE THE DEPARTMENTS.
SO LIKE IF YOU LOOK AT GENERAL ADMINISTRATION, THIS IS THE ADMINISTRATION PAGE AND IT HAS ALL THE SUMMARY FOR THE REVENUES OR EXPENDITURES DEPENDING ON WHAT FUND IT IS.
AND THEN WE ALSO HAVE OUR CAPITAL IMPROVEMENT PLAN IN HERE.
SO YOU CAN SEE THE PROJECTS AND THE PERCENTAGES AND THE COST.
AND IF YOU CLICK ON A PROJECT, SO LIKE IF I CLICK THIS IS BALA AND I CLICK ON A BALA PROJECT, IT BRINGS UP THE PROJECT, IT HAS PICTURES AND THE LOCATION AND THEN DATA.
SO, AND THEN WE EVEN HAVE THE MULTI-YEAR OF OUR CIP IN HERE FROM WHAT WE PRESENTED, WHICH IS THE DATA.
AND YOU CAN DO THE SAME, LOOK AT THE INFORMATION, DO THE SAME THING, CLICK ON THE PROJECT.
WILL THIS BE SHARED IN A COUNCIL MEETING? NO, WE DON'T WANT ANYBODY TO KNOW ABOUT IT.
I DIDN'T BELIEVE YOU DIDN'T BELIEVE.
WELL, WHEN I BUT DID SOME ABOUT IT, I SAID IT SHOULD JUST BE INTERNAL, RIGHT? YEAH.
SO, BUT NO, IT'S, UH, THIS CAN, THIS CAN BE, WE CAN PUT IT OUT THERE.
THEY'RE TRYING TO FIX A FEW THINGS.
THIS HAS BEEN, YEAH, IT DOESN'T HAVE TO BE NEXT WEEK.
I MEAN, WHEN IT'S READY IT'S RUSH.
SO WITH THE AMENDMENT, THEY'RE FINDING, UM, NUMBERS THAT NEED TO MATCH ON ALL SIDES BECAUSE WE'VE TALKED ABOUT IN HERE THAT WE NEED THIS PAGE TO MATCH THIS PAGE WHEN WE'RE LOOKING AT STUFF AND EVERYBODY FEELS COMFORTABLE WHEN WE'RE LOOKING AT NUMBERS.
AND SO THEY WANNA FINE TUNE THAT BEFORE IT REALLY GOES PUBLIC.
AND, UM, BUT IT IS OUT THERE ON THE WEBPAGE WITH ALL THIS DETAIL.
UM, AND SO BASICALLY THIS WILL BE OUR NEW BOOK GOING FORWARD.
AND THEN WE'LL HAVE, WE'VE TALKED ABOUT, UH, TRANSPARENCY STARS, YOU, YOU MENTIONED OPEN CLUB BEFORE MM-HMM
IT WOULDN'T, IT WOULDN'T BE IN THE BUDGET BOOK.
THERE'LL BE A DIFFERENT LINK AND YOU WOULD HAVE ALL THE DATA AND WE WOULD UPDATE THAT DATA.
SO IT'S MORE LIVE AND ON TIME.
LIKE BASED ON, SO WE WERE PLANNING RIGHT NOW BECAUSE THE, WE DON'T COMMUNICATE TOGETHER TO UPLOAD THE DAY DATA MONTHLY.
SO AT LEAST IT WOULD BE UPDATED EVERY MONTH.
SO YOU COULD LOOK AT THE ACTUALS AND EVERYTHING LIKE THAT FOR THE TRANSPARENCY STARTS.
BUT THAT, IT'S ANOTHER SEGMENT OF THIS, BUT NOT, THIS IS JUST THE BUDGET BOOK.
AND THEN FRANK'S TEAM HAS DONE IS DOING A VERY SIMILAR THING YES.
SO THAT TAGGING ALONG WITH THE FINANCE PIECE, LIKE THIS IS FANTASTIC.
YOU CAN LOOK AT WHERE THE MONEY'S AT AND THEN LIKE EVEN GOING FURTHER TO LIKE JUST THE PROJECT PAGE, YOU CAN LOOK AT HOW FAR ALONG THEY ARE.
I THINK IT HAS LIKE COMPLETION DATES AND STUFF LIKE, OR EXPECTED COMPLETION DATES AND STUFF LIKE THAT.
SO IT'S ALL AROUND REALLY NICE FOR THE CITY TO, TO BE ABLE TO SEE ALL THESE BIG THINGS THAT ARE, ARE GOING ON.
WELL 'CAUSE I MEAN THESE ARE THE TYPES OF QUESTIONS WE GET.
MAYBE NOT SO MUCH ABOUT BUDGET, BUT I MEAN WE GET ASKED ABOUT PROJECTS AND THINGS LIKE THAT AND SO TO BE ABLE TO JUST POINT PEOPLE NEAR, UM, CUTS US OUT OF HAVING TO ANSWER THE QUESTION OVER AND OVER AGAIN.
IT KEEPS EVERYBODY ON THE SAME PAGE.
SO THAT'S OBJECTIVE TO RIGHT THERE, LIKE GREAT WORK.
YOU KNOW, MONICA HAS SOMETHING TO DO WITH THIS.
WELL IT'S BEEN A TEAM AT FIRST.
OKAY, SO THEN WE'RE NOT GONNA DISCUSS THE BUDGET AMENDMENTS? NO.
[a. Receive the City of Baytown's Quarterly Financial and Investment Reports for the Quarter Ending December 31, 2023.]
MOVE TO ITEM FOUR A.JUST TO RECEIVE THE CITY OF BAY TOWN'S QUARTERLY FINANCIAL AND INVESTMENT REPORTS FOR THE QUARTER ENDING DECEMBER 31ST, 2023.
SO WE JUST TURN TO THE SUMMARY PAGE.
I'M JUST GONNA KIND OF HIT THE HIGHLIGHTS.
UM, THIS IS FOR THE FIRST QUARTER, UH, FOR PERIOD END OF DECEMBER 31ST.
UM, OUR GENERAL FUND HAS A FUND BALANCE OF 73 MILLION.
UM, WE BROUGHT IN 82 MILLION IN REVENUE, WHICH IS AT ABOUT 61%.
OUR EXPENDITURES ARE AT 38 MILLION.
UM, AND I WANNA SAY THAT THOSE EXPENDITURES INCLUDE 5.3 MILLION IN ENCUMBRANCES, WHICH IS JUST COMMITMENTS THAT WE HAVE THAT WE NEED TO PAY OUT.
UM, WE HAVE OUR HOTEL OCUS OCCUPANCY TAX.
THE REVENUE IS 71,000, UM, WHICH IS REALLY NOT ON TARGET.
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WE ARE, UH, CURRENTLY HAVING OUR, EVERY YEAR WE HAVE OUR HOTELS AUDITED, LIKE THEY DO ABOUT EIGHT OF THEM A YEAR.SO SOME OF THEM ARE BEING AUDITED THIS YEAR, THE ONES WHO AREN'T REALLY BRINGING IN AS MUCH REVENUE.
AND SO WE SHOULD HAVE THAT AUDIT COMPLETED, UM, SHORTLY.
'CAUSE THEY STARTED IT A MONTH AGO AND WHEN, I MEAN THAT AUDIT COULD FIND WHAT DID, THEY'VE NOT BEEN PAYING THE TAXES.
LIKE ONE OF THE, ONE OF THE HOTELS THEY HAD.
UM, I DON'T, THEY HAD SOME KIND OF DISASTER.
IT WAS LIKE A FLOAT OR A FIRE AND THEY HAD LOST SOME OF THEIR DOCUMENTS.
AND SO THEY HAD EMAILED US TO FIND OUT, FIGURE OUT, OKAY, WELL HOW DO WE WANNA APPROACH, YOU KNOW, HOW MUCH THEY OWED? DO WE WANNA GO BASED OFF OF THIS CALCULATION THAT THEY HAD LAST YEAR OR SO? THEY ACTUALLY TRY TO LOOK AT ALL THE RECORDS TO DETERMINE, OKAY, WHY, YOU KNOW, AREN'T WE RECEIVING THE REVENUE WE SHOULD BE RECEIVING? OR IS IT REALLY BASED ON OCCUPANCY OR, SO THEY ARE, THEY LOOK AT THOSE, UM, HOTELS EVERY YEAR AND THEY PICK THE ONES THAT TYPICALLY WE'RE NOT RECEIVING THE MONEY OR ENOUGH MONEY, WHAT THEY PERCEIVE WE SHOULD BE RECEIVING.
UM, SO THEY'RE CURRENTLY DOING THAT NOW.
AND SO ONCE WE GET THAT FINISHED, WE CAN BRING THAT BACK TO YOU TO SAY, OKAY, WELL THIS IS WHAT THEY FOUND FROM THE EIGHTH THAT THEY LIVE AT THIS YEAR.
IS THAT AN AUDIT WEEK PAID FOR? YES.
AND IT'S NOT MUCH BECAUSE WE HAVE, WE ALSO USE THEM FOR OUR, UM, TO COLLECT THE, UM, OCCUPANCY TAX.
WE USED THEM TO SEND OUT THE LETTERS TO DEMAND THE MONEY AND TO MAKE THEM, UH, CONFIRM.
AND SO WE ARE USING THEM AS WELL FOR THAT.
SO IT CAME KIND OF MORE AS A PACKAGE BEFORE WE WERE USING THEM INDIVIDUALLY, BUT THEN WE ADDED THAT COMPONENT, I WANNA SAY TWO YEARS AGO THEY ADDED THE, UM, A USE OF THEM ACTUALLY DOING THE COLLECTION AND SENDING OUT THE DEMAND LETTERS AND STUFF LIKE THAT.
UM, SO THE, UH, THE, UH, EXPENSES FOR THE HOTEL OCCUPANCY TAX IS $839,000.
UM, 621 OF THAT IS ENCUMBRANCES.
I WILL TELL YOU THAT WE LOOKED AT THE ENCUMBRANCES FOR ONE OF THOSE AND IT WAS LIKE 484,000, WHICH WE THINK SHOULD BE RELEASED BECAUSE IT WAS FOR THE HOTEL CONVENTION CENTER AT SOME POINT.
SO I BELIEVE IT'S LIKE AN ENCUMBRANCE THAT SOMEONE DOESN'T KNOW ABOUT BECAUSE NONE OF US WERE HERE.
SO WE'RE GONNA LOOK INTO THAT.
WE, WE ASKED, UM, ABOUT IT AND NO ONE KNEW WHAT IT WAS FOR.
SO THAT ONE MAY BE RELEASED AND SO WE MAY NOT BE PAYING THAT OUT.
SO THEY'LL, THAT WOULDN'T BE IMPACTING THE NUMBER IN THE FUTURE POTENTIALLY.
UM, DOES THAT INCLUDE, UM, THE HOT FUND PROJECTS? IS IT BECAUSE THAT'S PAID FOR THE ROBINSON? UM, WELL FOR LIKE THE HOT FUNDS APPLICATION.
UM, I DON'T KNOW IF THEY SPENT IT ALREADY.
I MEAN IT WAS, IF THEY WERE EXPENSIVE QUARTER ONE, IT WOULD RIGHT.
BUT THIS IS WHERE IT WOULD SHOW HERE.
UM, THE WATER AND SEWER REVENUE IS ON TARGET.
IT'S ABOUT 14.9 MILLION AT 27% AS WELL AS THE EXPENDITURES AT 15.4 MILLION AT 28%.
UM, THE WATER SEWER INCLUDES, THE EXPENDITURES INCLUDE 2.4 MILLION IN ENCUMBRANCES AND LEAVING US WITH A FUND BALANCE OF 10.4 MILLION.
UM, SANITATION, UH, IS SHOWING A NEGATIVE WORKING CAPITAL OF 549,000.
BUT I BELIEVE PART OF THAT IS DUE TO THE FACT THAT IN THAT EXPENDITURE, UH, NUMBER, WE HAVE 5.6 MILLION OF ENCUMBRANCES.
SO ONCE THE REVENUE STARTS COMING IN TO PAY FOR, AS WE START GETTING INVOICED AND PAYING FOR, UM, THOSE INVOICES, HOPEFULLY THE REVENUE WILL BE ABLE TO COVER.
'CAUSE WE'VE ONLY BROUGHT IN ABOUT, WHAT IS IT, 1.7 MILLION AND WE STILL, WE ARE PROJECTING TO GET 4.8.
SO AT SOME POINT THROUGHOUT THE YEAR, HOPEFULLY THAT BALANCES OUT, BUT WE'LL SEE THAT IN THE NEXT QUARTER.
WE DO EXPECT A LOSS THOUGH IN THIS, WE PROBABLY, WE HAVE
UM, WE WERE PROJECTING A LOSS.
WE'RE HOPEFUL THAT IT WON'T BE, BUT WE ARE PROJECTING THAT IT'LL STILL BE A LOSS JUST BECAUSE, WHICH IS WHY WE'RE LOOKING AT CHANGING SOME OF THE THINGS WE'RE DOING FOR SANITATION.
UM, THE STORM WATER IS ALSO A NEGATIVE.
UM, IT IS PARTLY DUE FROM PRIOR YEAR AT 1.9.
UM, IT HAS $1.1 MILLION OF REVENUE AND 1.4 IN EXPENDITURES, WHICH WOULD LEAVE US WITH A WORKING CAPITAL BALANCE OF 2.3 MILLION.
UM, THE ENCUMBRANCES THAT ARE IN THIS EX THESE
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EXPENDITURES IS ONLY 194,000.UM, SO AGAIN, HOPEFULLY WITH STORMWATER, WE KNOW THAT WITH STORMWATER THAT WILL PROBABLY BE FIXED, YOU KNOW, IF WE ISSUE THE DEBT BECAUSE THIS IS THE ONE WHERE WE ISSUED, UM, WE PAID HARRIS COUNTY AND ADVANCES FOR THAT FOR THE, UH, GRANT PROJECT THAT THEY WERE WORKING ON.
SO ONCE THAT DEBT IS ISSUED THAT WE PAY BACK, YES.
SOMEONE WILL GO INTO THIS WORKING CAPITAL.
UM, AQUATICS IS ANOTHER FUND THAT HAS A NEGATIVE WORKING CAPITAL BALANCE OF, BUT IT HAS 983,000.
UM, AND SOME OF THAT IS ALSO BECAUSE OF THE PRIOR YEAR, NEGATIVE WORKING CAPITAL OF 785,000.
UM, RIGHT NOW REVENUE'S ONLY AT 116, BUT WE KNOW WHY BECAUSE IT'S NOT OPEN RIGHT NOW.
UM, AND THEN THE EXPENDITURES IS 314,000.
SO ONCE THEY OPEN REVENUE GENERATES IT SHOULD PROBABLY BE IN A BETTER SPOT.
BUT WE ARE ALSO PROJECTING THIS ONE TO POTENTIALLY BE NEGATIVE AS WE DID IN THE BUDGET.
HOW DO THEY GENERATE REVENUE WHEN THEY'RE CLOSED? WELL, UM, THEY DO THE, UM, WINTER EVENTS HOLIDAY IN THE PARK.
THEY DO THE HOLIDAY IN THE PARK.
SO IT'S THAT LITTLE PORTION OF WHATEVER THEY GENERATED AT THAT TIME, BUT IT'S STILL NOT ENOUGH.
YEAH, I MEAN IT'S PIRATES BAY, CALYPSO COVE, AND THEN THEY RUN THE WINTER.
DO WE HAVE A BREAKDOWN? I MEAN THIS MAY BE SOMETHING FOR REC PARKS AND REC, BUT DO THEY HAVE A A, A BREAKDOWN OF KIND OF HOW THAT PERFORMED VERSUS JUST THE ICE RINK IN THE PAST? I Y'ALL HAVE IT, BUT I MEAN, IT ALL OPERATES AT A LOSS.
BECAUSE IT'S, IT'S MORE OF AS, UH, AS AN AMENITY THAN IT IS ANYTHING ELSE.
IT'S, WE'RE PAYING FOR THE, WE'RE PAYING FOR THE AMENITY.
IF I REMEMBER CORRECTLY, I'D BE CURIOUS, I MEAN, I'D LIKE TO SEE A, I, I'D BE CURIOUS TO SEE A BREAKDOWN ON THAT.
HOW MUCH THE AMENITIES COSTING US AND THE UM, WAS THERE A COST TO USE THAT NEW SLICE OR WHATEVER? WE DID PAY FOR IT.
40 GRAND PER RENTAL OR SOMETHING.
PEOPLE PAID TO
SO IT'D BE INTERESTING TO SEE THE REVENUE THAT CAME IN FROM USAGE FROM GL VERSUS THE REGULAR ICE.
WHAT PERFORM WELL, YEAH, WE CAN LOOK AT IT.
YEAH, I THINK THEY CHARGE FOR THE GLYC AND THE BUTT PUTT, RIGHT? YES.
AND THEN, SO THE STREET MAINTENANCE HAS A FAVORABLE FUND BALANCE OF 6.9 MILLION REVENUE, 523,000, UM, EXPENDITURES.
UM, 2.5 MILLION LEAVING A WORKING CAPITAL 6.9.
SO, UM, THE OTHER PORTION THAT'S ON THE, UM, SNAPSHOT IS WE HAVE 56 MILLION UM, PROCEEDS AND OUR INVESTMENT VALUE RIGHT NOW IS 227.8 MILLION.
SO AS WE WERE TALKING, THE POOLS IS 170 MILLION IF YOU'RE LOOKING AT THAT.
AND THEN THE REST ARE OUR INVESTMENT, UM, PORTION.
AND THEN THE EARNINGS IS TWO POINT OR AROUND $3 MILLION, BUT MAJORITY OF IT, AS YOU CAN SEE, IS IN OUR POOLS AND SALES TAXES DROPPED OFF FROM PREVIOUS YEAR.
IT'S A LITTLE LOWER THAN A LITTLE, LIKE THAT WAS, WE KIND OF THOUGHT, TALKED ABOUT IT WAS GONNA, INFLATION WAS GONNA CATCH UP AT SOME POINT.
PEOPLE WERE JUST GONNA START SPENDING.
IT'S FUNNY THAT YOU BRING IT UP BECAUSE THERESA AND I ALWAYS CATCH HECK FOR IT BECAUSE EVERYBODY'S LIKE, NO, IT'S GONNA GO.
LIVE BY SALES TAX YOU DIE, DIE BY SALES.
I MEAN, WHEN INFL EVERYTHING COSTS MORE LIKE, I MEAN WE GET MORE ON SALES TAX, IT'S JUST A PERCENTAGE, BUT EVENTUALLY PEOPLE DECIDE TO, SO THAT'S PROBABLY WHAT'S HAPPENING NOW.
SO WE'LL SEE WHERE IT LANDS, BUT FOR NOW IT'S KIND OF LEVELING OFF, UH, MAINLY IN NOVEMBER.
BUT THE INVESTMENTS IS A BIG, IS A BIG POSITIVE HERE.
IT'S ADDITIONAL $3 MILLION THAT'S COMING IN.
IT'S ALREADY SPENT, DON'T GET ME WRONG, BUT IT'S, IT'S UH, IT'S STILL, IT'S STILL A POSITIVE.
AND THEN WE STARTED ADDING THE DEBT SNAPSHOT DUE TO REMIND OF HOW MUCH OUTSTANDING DEBT WE HAVE.
ONCE WE ISSUE THE DEBT THAT'S COMING
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UP FOR BAWA AND THE OTHER CO UM, FOR THIS YEAR, WE'LL ADD THAT TO THE LIST.AND SO, UM, AS I STATED BEFORE, THE UNSPENT BOND PROCEED ABOUT 56 MILLION AND THAT'S THE BREAKDOWN BETWEEN THE DEBT ISSU ISSUANCES THAT WE HAVE.
AND AS YOU CAN SEE, YOU KNOW, WE'RE ALWAYS TALKING ABOUT THE OLD DEBT BEING USED.
THEY'RE ASKING US NOW ARE WE GONNA USE IT, HAVE WE SPENT IT? BUT, SO WE'LL ADD THE NEW DEBT TO THIS AS WELL.
AND WE'LL JUST MAKE SURE YOU SEE THIS EVERY TIME.
AND WE ARE WORKING ON, WE ARE WORKING ON, WE ARE WORKING ON HAVING THE BREAKDOWN OF THE PROJECTS, BUT WE WANTED TO MAKE SURE THAT WE GIVE YOU ALL THE DETAIL THAT YOU NEED.
LIKE EVEN THE ENCUMBRANCES THAT ARE OUT THERE WHERE THEY'VE COMMITTED SOME OF THE MONEY.
AND THEN THAT WAY IF YOU HAVE QUESTIONS FOR PUBLIC WORKS, THEY'LL BE ABLE TO ASK THAT.
BUT IT'S JUST NOT QUITE FINISHED YET.
SO WE DON'T WANNA GIVE IT TO YOU UNTIL WE'RE SURE IT'S THE WAY WE WANT IT, BUT THEN YOU'LL BE ABLE TO ACTUALLY SEE THAT LIST THAT IS A PART OF THE UNSPENT AMOUNT WHEN WE BRING IT TO YOU.
I HAVE ONE THING TO ADD ON HERE WITH THE BOND RATING.
SO THAT WAS MY QUESTION, SO I'M GLAD.
SO, UH, THERESA AND I WERE NOTIFIED TODAY.
UM, SO YOU SEE ON HERE YOU HAVE DIFFERENT BOND RATINGS, THE AA UH, AA PLUS FOR THE, THE TOP ONE AA, UM, YEAH, THE AA UH, FOR THE SECOND CITY OF BAYTOWN AND THEN YOU HAVE TWO 3M DD ONES.
SO IT'S IMPORTANT TO NOTE THAT THE MDD, THE ACTUAL MDD CITY PORTION IS THE THIRD LIEN.
THE MDD FIRST AND SECOND LIEN, THOSE ARE SPECIFIC TO THE HOTEL.
THOSE ARE SPECIFIC TO THE HOTEL.
UM, THE THIRD LIEN IS PART OF THE HOTEL AS WELL, BUT IT'S SEPARATE AND ASIDE, RIGHT? LIKE THE, THE THIRD LIEN IS THE CITY IS RESPONSIBLE FOR THIS.
THAT'S WHY IT HAS A HIGHER RATING.
'CAUSE THE CITY'S BACKING THAT ONE.
THE FIRST AND SECOND ONE, WE WERE NOTIFIED THAT IT WILL BE DOWNGRADED, UH, PROBABLY THIS WEEK AND SO DOESN'T IMPACT A LOT EXCEPT IT'S JUST, IT DOESN'T LOOK NICE.
WHAT'S THE, I GUESS HOW'S THAT HAPPENED? WHAT'S THE DRIVER OF THAT? THE FINANCIALS OF THE HOTEL ITSELF.
ARE YOU TALKING ABOUT THE TRIPLE B AND WB? MM-HMM
IT BE LOWER THAN THAT, RIGHT? HOW LOW DO YOU THINK IT'LL BE? I DON'T KNOW.
YEAH, CONROE WAS DOWNGRADED, UH, THIS WEEK OR LESS.
YEAH, IT WAS WITHIN THE LAST SEVEN DAYS.
CONROE WAS RECENTLY DOWNGRADED AND WE'RE STILL DOING SLIGHTLY BETTER THAN US.
THEY, WE WERE NOTIFIED THAT THEY, THAT WE WILL BE IN A SIMILAR BUCKET WITH THEM.
LIKE I SAID, IT DOESN'T IMPACT A LOT.
YEAH, I WAS GONNA ASK LIKE WHAT'S THE IMPACT OF THAT? I MEAN THAT WOULD IMPACT MORE DEBT MORE BUT THE DEBT THAT'S ALREADY THERE, I MEAN THERE, IT'S THERE.
SO IT, OKAY, SO IT REALLY WOULD JUST HAVE AN, HAVE AN IMPACT ON THAT'S CORRECT.
BUT IT'S JUST, WE NEED TO LET YOU KNOW BECAUSE I MEAN IT'S JUMP ON STATUS BASICALLY.
SO, SO CREDIT NOT GREAT CREDIT WORTH WORTHINESS, BUT WE'RE NOT PLANNING TO ISSUE MORE DEBT OUT OF THERE RIGHT NOW.
SO WE'D HAVE TIME TO REVAMP IT IF WE WERE ABLE TO ISSUE DEBT OUTTA THERE OF MDD.
SO HOW, BUT HOW DOES IT, BECAUSE THE CITY BACKS THE THIRD ONE, THE CITY IS NOT BACKING THE FIRST, SO THE FIRST TWO ARE JUST MDD BACKING IT.
HOW OFTEN ARE THESE RATED? THIS IS ANNUALLY, ISN'T IT? FOR THIS ONE? WE'LL GET 'EM ANNUALLY AND TO, AND SO REALLY Y'ALL WAY TO IMPROVE IT WOULD BE THE PERFORMANCE OF THE HOTEL IMPROVE.
IT HAS NOTHING TO DO WITH LIKE REVENUE OF MDD ITSELF.
BUT BECAUSE IF YOU LOOK AT THE MDD STUFF, THAT'S ALL DEDICATED TOWARDS THE HOTEL ANYWAYS, SO.
IT'S A LITTLE CONVOLUTED BUT IT'S UM, JUST IS WHAT IT IS, JUST A NOTIFICATION FOR Y'ALL TO UNDERSTAND THAT IT IS BEING MONITORED.
UH, BUT AT THE SAME TIME IT DOESN'T REALLY IMPACT US A LOT AT THIS POINT.
OUR CONSULTANT DOES MEET WITH S AND P, UH, THEIR RATING SYSTEM, S AND P AND MOODY'S, HE DOES MEET WITH THEM, UH, I THINK QUARTERLY OR OR UPDATES.
AND SO HE WAS THE ONE THAT NOTIFIED US THAT WE'RE ALSO SETTING UP A CALL.
IT'S TRYING TO SCHEDULE A CALL WITH S AND P AND MOODY'S FOR THE NEW DEBT ISSUANCE THAT WE'RE ISSUING AS WELL.
BUT THAT'LL ALL BE CITY OF BAYTOWN.
[00:30:02]
OKAY.SO AS FAR AS THIS BUDGET BOOK, YES, THIS WILL BE THIS, I JUST WANNA CLARIFY, IT'D BE ITEMIZED, RIGHT? FOR THIS WILL BE AN ITEMIZED BUDGET PEOPLE COULD LOOK AT.
I MEAN FOR, SO THE CITIZEN, THE LATE CITIZEN COME IN, IT'S ITEMIZED FOR THEM.
DOES IT DIE DOWN? WHAT YOU MEAN? WE DON'T HAVE LINE ITEM BUDGETS RIGHT NOW.
WE SO BY DEPARTMENT IT'S, IT'S BY DEPARTMENT.
SO LIKE IF YOU LOOK AT THE BUDGET, THERE'S A LINE, IT'S TECHNICALLY A LINE ITEM.
SO I THINK WHAT YOU'RE ASKING KEN, IS WE ARE SWITCHING THIS YEAR TO ASK MORE OF A LINE ITEM.
LIKE THOSE ARE LINE ITEMS TECHNICALLY SPEAKING, RIGHT? SO IS THAT WHAT YOU ARE LOOKING FOR? BUT I THINK THAT, I BELIEVE SO THAT'S WHAT I'M ASKING.
SO THEY CAN CLICK ON IT AND OPEN IT AND LOOK AT THE LINE ITEMS. I THOUGHT YOU MEANT LIKE IT SEE RIGHT THERE IT SAYS ASSOCIATION AND DUES LIKE, UH, 49,500.
OH, DOWN FURTHER, LIKE A LINE ITEM BUDGET FOR ME IS IF YOU CLICKED ON THAT INTERNALLY, THERESA'S ASSOCIATION DUES, MY ASSOCIATION DUES, LEAH'S ASSOCIATION DUES, EVERY SINGLE ITEM THAT'S HIT THAT.
AND THOSE CUMULATIVELY MAKE UP 49,500.
AND I THINK OUR TRANSPARENCY STARS MAY HAVE THAT, THAT TRANSPARENCY PAGE MAY HAVE THAT CAPABILITY TO KEEP DRILLING DOWN INTO EVEN MORE DETAIL.
UM, BUT WE HAVEN'T, WE ARE, WE ARE STILL IN THE PROCESS OF WORKING ON THAT.
BUT YEAH, THIS DETAIL HERE, THEY COULD AT LEAST SEE THE DETAIL OF WHAT MAKES UP THE ONE LINE ITEM IN THE DEPARTMENTS.
AND IT'S ALL ON THE WEBSITE NOW.
UM, LOOKING AT THE, THE, I DUNNO WHAT THEY CALL
I KNOW RED LIGHT, GREEN LIGHT OR INDICATORS.
SO LIKE SOME OF THE, I'M LOOKING AT CCPD AND ASPIRE MSI MEAN, THEY'RE BOTH AT BELOW 10% OF REVENUE.
SO IS THAT JUST, I MEAN, IT'S COMPLETELY SALES TAX DRIVEN, RIGHT? SO THAT WAS JUST OUR BEST GUESS OF WHAT WE WOULD BRING IN AND WE'RE TAXES DOWN AS ALL OKAY.
SO IS THAT SOMETHING THAT THOSE DISTRICTS LOOK AT IN THEIR MEETINGS? I MEAN, ARE THEY, DID THEY MAKE ALL THEIR PURCHASES RIGHT AS SOON AS THE BUDGET YEAR BEGAN? OR DID THEY KIND OF, UH, I GUESS I COULD LOOK AT THE EXPENDITURES, BUT, UM, UH, LIKE THEY SPENT 30 AND 35% OF THEIR BUDGET.
SO I MEAN, AND LUCKILY THEY HAD A LITTLE FUND BALANCE TO CARRY OVER, HELPED THEM OUT.
BUT, SO THEY'VE SPENT, YOU KNOW, A LITTLE MORE THAN 25%, YOU KNOW, BUT THEY HAD A LITTLE FUN BALANCE TO CARRY THEM ANYMORE.
IT WAS NOT AS BAD, BUT YEAH, FOR NOW, IF YOU LOOK AT THE SALES TAX, IT IS DOWN FOR, UH, EVEN STREETS IS DOWN YEAH.
SO SALES TAX IS SLIGHTLY DOWN.
THERESA'S DONE A VERY GOOD JOB THIS YEAR.
WE'VE HAD KIND OF AN EDUCATION PIECE WITH THE DIRECTORS AND BECAUSE PEOPLE, THE, THE TEAM DIDN'T, THE TEAM, SOME, SOME TEAM MEMBERS KNEW, BUT NOT ALL TEAM MEMBERS KNEW, KNEW THAT LIKE, EVEN THOUGH WE APPROVED THE BUDGET ON SEPTEMBER, COME OCTOBER 1ST, THAT 400 MILLION DOESN'T JUST APPEAR ON OCTOBER 1ST.
AND, UM, THERE WERE, THERE WERE THOUGHTS IN THE ORGANIZATION THAT, HEY, OUR FUND BALANCE WAS ENOUGH THAT WE COULD JUST SPEND DOWN, UM, UNTIL OCTOBER 1ST.
WE COULD SPEND DOWN EVERYTHING THAT WE NEED AND BE OKAY.
WELL, SO THERESA WENT THROUGH LIKE EDUCATING THE, THE DEPARTMENTS LIKE, HEY, WE DON'T ACTUALLY GET OUR MONEY UNTIL LIKE DECEMBER AND JANUARY.
SO WE, WE HAVE TO BE VERY COGNIZANT ON THE SPEND BEFORE DECEMBER AND JANUARY COME AROUND.
SO I, I APPRECIATE YOU DOING THAT BECAUSE IT'S, IT HAS BEEN KIND OF A, A LITTLE MIND SHIFT.
IT THIS GOES TO YOUR QUESTION ON IS FIRE CONTROL AND, AND, UH, CCPD LOOKING AT, UH, THE, THE NUMBERS YES.
THAT THE DIRECTORS ARE NOW AWARE THAT HEY, WE, WE HAVE TO MONITOR THIS STUFF AND SPACE OUT THE SPEND OVER TIME BECAUSE IT'S NOT 25 MILLION POPPED UP IN, IN MY ACCOUNT TODAY.
AND, AND SOME PEOPLE WERE LIKE, I DID NOT KNOW THAT
SO IT WAS JUST GOOD TO LIKE PUT
[00:35:01]
IT OUT THERE.SO EDUCATIONAL CAMPAIGN ALL THROUGHOUT.
DO Y'ALL HAVE ANY OTHER QUESTIONS ON THE QUARTERLY REPORT? I THINK YOU SAID SANITATION WAS ENCUMBRANCES WERE IN THERE AS WELL.
THAT'S WHY 'CAUSE IT SHOWS LIKE, I THINK IT HAD 80% ALREADY ON EXPENSES.
IT HAVE A LARGE LIKE FIVE, SIX, 6 MILLION CONTRACT ALL OVER.
BECAUSE WE KNOW WE'RE GONNA YEAH.
PAY THAT OUT THROUGHOUT THE YEAR AND THE REVENUE SLOWLY COMES IN.
THAT'S ABOUT, NOT TO SAY THAT ALL OF THAT IS, UH, FOR THE TRASH, BUT PROBABLY MAJORITY.
ANY OTHER QUESTIONS? ANYTHING ELSE WE NEED TO DISCUSS? OKAY, WELL THEN SEEING THAT WE'VE ADDRESSED ALL POSTED AGENDA ITEMS, THIS MEETING IS ADJOURNED.