2023 10 12 WS MinutesMINUTES OF THE REGULAR WORK SESSION OF THE
CITY COUNCIL OF THE CITY OF BAYTOWN
October 12, 2023
The City Council of the City of Baytown, Texas, met in a Regular Work Session on Thursday,
October 12, 2023, at 5:33 P.M. in the Council Chamber of the Baytown City Hall at 2401 Market
Street, Baytown, Texas, with the following in attendance:
Laura Alvarado
Council Member
Sarah Graham
Council Member
Kenrick Griffith
Council Member
Heather Betancourth
Council Member
Jacob Powell
Council Member
Mike Lester
Mayor Pro Tem
Brandon Capetillo Mayor
Jason Reynolds
City Manager
Scott Lemond
City Attorney
Angela Jackson
City Clerk
John Stringer
Sergeant at Arms
Mayor Capetillo convened the October 12, 2023, City Council Regular Work Session with a
quorum present at 5:33 P.M., and with all members present.
1. CITIZEN COMMENT
Mayor Capetillo announced a citizen, Mr. David Isaac, had signed up to speak on the item.
Mr. Isaac commented over the fact that, in the near future, there would be someone sitting on the
District Four (4) seat to replace Council Member Betancourth. He hoped that person did not have
any legal matters they were going through and could present themselves to the voters of the general
public. Mr. Isaac suggested there was one such person that has not been public and was going
through legal matters. He commented over those legal issues and restated his hope that the replace-
ment of Council Member Betancourth was responsible and financially transparent as she was.
2. EXECUTIVE SESSION
a. Recess into and conduct an executive session pursuant to Section 551.071 of the Texas
Government Code to seek the advice of the City's attorneys regarding pending or
contemplated litigation involving the City of Baytown.
At 5:36 P.M., Mayor Capetillo recessed and convened in to an Executive Session pursuant to
Section 551.071 of the Texas Government Code to seek the advice of the City's attorneys regarding
pending or contemplated litigation involving the City of Baytown.
City Council Regular Work Session Minutes
October 12, 2023
Page 2 of 3
At 6:07 P.M., Mayor Capetillo reconvened the meeting and announced that, in accordance with
Section 551.102 of the Texas Government Code, no action was taken in the Executive Session.
3. DISCUSSIONS
a. Discuss the City of Baytown FY22 Budget Amendment.
Finance Director Teresa McKenzie presented and discussed over the City of Baytown's FY22
Budget Amendment. The following visual was provided as a general overview of the amendment.
FUNDING SOURCE
FY22
ADOPTED
BUDGET
PROPOSED
BUDGET
ADJUSTMENT
FY22 TOTAL
BUDGET %
ADJUSTMENT
CHANGE
=GOVERNMENTAL
FUNDS
166,804,645
(3,019,754)
163,784,891
-1.81°%
ENTERPRISE FUNDS
79,478,835
2,599,054
81,077,889
3.31%
CAPITAL IMPROVEMENT FUNDS
53,882,812
0
53,882,812
0.00%
Cu COMPONENT UNIT FUNDS 37,460,299 0 37,460,299 0.00%
SP SPECIAL REVENUE FUNDS 48,546,506 420,700 48,967,207 0.87%
TOTAL FUNDING SOURCE $385,173,097 $ 0 $ 385,173,098 0.00%
b. Receive the City of Baytown's Comprehensive Annual Financial Report and Single
Audit Report for the fiscal year ending September 30, 2022.
Finance Director Teresa McKenzie opened the item introducing Auditor Robert Belt with Belt
Harris. Mr. Belt presented the City of Baytown's Comprehensive Annual Financial Report and
Single Audit Report for the fiscal year ending September 30, 2022, to Council. Mr. Belt provided
the following visual to summarize the City's audit engagement over the last ten (10) years.
Goal
2023
2022
2011
2020
2019
2018
2017
1016
1015
2014
1013
Fnil Year l_IIII
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Financial stalenrenl issuance dale
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In 112a23
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1192021
I1,2020
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292M
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Days issued a0er ycnr end
366
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132
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123
A d'I+dj nnrnls u1( (rJl 52 26 42 35 22 17 21 15 19
u....a.....-I,... I,_III -1 1. __ 1; 2 -3 1 -5 -I
City Council Regular Work Session Minutes
October 12, 2023
Page 3 of 3
Mr. Belt commented that they did make quite a number of adjustments to get the City of Baytown's
financial statements correct, sixty-four (64) in total. He walked through each document that was
provided to the Council Members by explaining what they entailed. The documents that Mr. Belt
described to Council were as follows: an Auditor Disclosure Letter of the conclusions of the audit,
a Management Letter, Single Audit Reports, and the Annual Comprehensive Financial Report.
After the brief rundown of the documents, City Manager Jason Reynolds wished to comment over
the Management Letter. He noted it stated that the City had a material weakness for their 2022
audit with undetected misstatements. Also, the timing of their audit was an issue. Mr. Reynolds
assured Council that these would be resolved going forward. Furthermore, they had a piece that
was unresolved based off of their 2021 audit. Mr. Reynolds wished to be open with everyone on
the FY2022 budget and shared there were three (3) issues they were addressing. He expressed his
appreciation to Belt Harris for bringing those issues to light and stated that they would be corrected.
C�f171Zf1�1.7\I
With there being no further business to discuss, Mayor Capetillo adjourned the October 12,
2023, City Council Regular Work -Session at 6:16 P.M.
4,pYTlJlgra
Angela Jackson, City Clerk
City of Baytown t;