2024 08 13 WS Minutes MINUTES OF THE SPECIAL WORK SESSION OF THE
CITY COUNCIL OF THE CITY OF BAYTOWN
August 13, 2024
The City Council of the City of Baytown, Texas, met in a Special Work Session on Tuesday,
August 13, 2024, at 4:00 P.M. in the Fire Training Field at 7022 Bayway Drive, Baytown,Texas,
with the following in attendance:
Laura Alvarado Council Member
Kenrick Griffith Council Member
Jacob Powell Council Member
Mike Lester Council Member
Brandon Capetillo Mayor
Jason Reynolds City Manager
Scott Lemond City Attorney
Angela Jackson City Clerk
John Stringer Sergeant at Arms
Mayor Brandon Capetillo convened the August 13, 2024 City Council Work Session with a
quorum present at 4:03 P.M. All members were present with the exception of Mayor Pro Tern
Sarah Graham and Council Member James Franco.
1. CITIZEN COMMENTS
Mayor Brandon Capetillo announced no citizens signed up to speak.
2. DISCUSSIONS
a. Discuss the City of Baytown Fiscal Year 2024-25 Proposed Budget.
City Manager Jason Reynolds opened Item 2.a., for discussion regarding the City of Baytown
Fiscal Year 2024-2025 Proposed Budget, solutions for the highlighted topics as listed. (Exhibit
A):
• Capital Improvement Projects(CIP)Funding—Council accepts the overview that 2025
will be approximately$100 million in debt from multiple funds combined.
Council Member James Franco entered the City Council meeting at 4:06 P.M.
Mr. Reynolds continued the power point presentation for the listed topics. He proceeded to hand
the floor to each department director for further in-depth summaries.
Public Works and Engineering Director Frank Simoneaux provided details regarding the utility
rates and CIP requirements with the potential repair and growth required to maintain the City of
Baytown.
City Council Special Work Session Minutes
August 13,2024
Page 2 of 2
• Utility Intent to cover Baytown Area Water Authority(BAWA)with increments in the
coming years.
• Utility Rates - rate increase of 6%, raising the 2,000-gallon tier, 12,000-gallon sewer
cap.
The City Council addresses tax rate increases and reduction for a consensus to level the rates for
projected adjustments.
• Tax Rate-maintaining the $0.72 or no new revenue rate.
Mr. Reynolds introduced Finance Director Teresa McKenzie to discuss more in detail the Fee
options for credit card transactions with the City of Baytown.
Ms. McKenzie provided a detailed presentation in regards to the fee options available for consid-
eration. (Exhibit B)
• A 4%increase with credit card transactions to cover 90%of the cost.
Council Members expressed their opinions and recommendations as related to the Fiscal Year
2024-2025 Proposed Budget.
Mr. Reynolds summarized the remaining budget items as listed:
• Aquatics - funding has a positive future with necessary changes, but will show as a
deficit in Fiscal Year 2025 budget.
• Golf Course - funding will no longer come from the General Fund, only the allocated
funds for the Golf Course.
Mr. Reynolds will present findings from Council's consensus at this meeting for the next City
Council Meeting on August 22, 2024.
3. ADJOURN
With there being no further business to discuss, Mayor Brandon Capetillo adjourned the August
13, 2024, City Council Work Session at 5:32 P.M.
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EXHIBIT "A"
FY25 Utility Funds and CIP
DRAFT
Current Residential Rate Structure
Water Sewer
• Base charge = $11.15 / mo. • Base charge = $12.04 / mo.
• Up to 2,000 GAL = $2.72* • Up to 2,000 GAL = $2.98*
• 3,000 — 6,000 GAL = $6.79* • Over 2,000 GAL = $6.74*
• Over 6,000 GAL = $9.37*
Sewer billable volume=metered water
consumption
• Per 1,000 GAL
Notes:
1. Nonresidential rates are same as 3,000—6,000 GAL tier
2.Outside city has 1.5 multiplier
3. BAWA rate to city=$3.44/1,000 GAL(existing)and$3.65/1,000 GAL(FY25 Proposed)
Future variables
BAYTOWN
• Need a balance of cash & possible revenue bonds for funding &
financing projects
• Projects need to be funded to manage growth and mandated
SSO-related system improvements
• Lead Service Line Mandate
• PFAS New Limits
•
• 6% Rate Increase
BAYTOWN
• 12,000 Gallon Residential
Recommendations Sewer Cap
• Other considerations to be
discussed
CIP
•
BAYTOWN
FY25 Budget
BAYTOWN
• Only FY25 GF Debt
• Fire Station #2
• No FY25 GF Cash Transfers to CIP Projects Proposed in Budget
• Debt Issuances for other funds
FY25 Requests by Fund
Fund-CIP Categories FY25 New Funding Requests
• General Fund BA}
TOWN
• Transportation
• Facilities • $10,825,000(Debt)
• Parks
• Stormwater Fund
•
• Stormwater Drainage $10,000,000(Debt)
• BAWA Fund • $3,665,000(Debt)
• Water&Sewer Fund
• Wastewater Collection
• Wastewater Treatment • $73,049,667(Debt and Cash)
• Water Distribution
TOTAL FY25 REQUESTS • $97,539,667
Please Note:Final Recommendations from the CIP Committee are Pending
Questions & Discussion
•
BAYS
8/13/2024
BAYT�A
FY25 Transportation System CIP(GF)
BAYTOV\
S
Proposed Projects
IH-10 on and Off Ramps-TxDot Payment
Garth Rd Reconstruction from IH-10 to SH146
Neighborhood St Reconstruction of Lantern Park,Dolphin
Harbor,and Canvasback Cay
Annual Renewal of Asphalt Streets
IH-10 Intersection Improvements
Annual Signal Modernization Project
Sidewalk Master Plan Implementation
Oak Leaf St Reconstruction(grant)
1
8/13/2024
FY25 Drainage System CIP
BAYTOS{
Proposed Projects
San Jacinto Regional Detention Drainage
West Baytown Drainage Improvements
Danubina Area Drainage System Improvements
South Main&Republic Drainage Improvements
West Texas Avenue Drainage Improvements
FY25 Wastewater Collection System CIP (W&S)
Proposed Projects BAYTOW\\
Annual Sanitary Sewer Rehab Program
Annual Lift Station Rehab Program
Annual Sanitary Sewer Relocation and Oversizing Program
Trunkline Sewer Evaluation and Rehabilitation
Texas Avenue Lift Station Improvements
IH-10 Lift Station Improvements
Sjolander/Crosby/Cedar Bayou/Barkuloo Utilities
Cedar Landing Lift Station(grant)
Abbe Lift Station(grant)
Staples Lift Station(grant)
Dykes Lift Station(grant)
IH-10 Lift Station#2 Force Main and Gravity System Improvements
3
1
8/13/2024
FY25 BAWA System CIP
Nat;{14tV"
Proposed Projects
BAWA East Surface Water Plant Phase 2 Expansion
BAWA Raw Water Rehabilitation
BAWA Condition Assessment Reports and Rate Study
BAWA Backwash and Decant Pump Replacement
5
8/21/2024
EXHIBIT "B"
Recap of Current State
Number of Transactions & Fees
Recap of 2023 217,892 $424,315
Current State
2024 127,475 $643,344
(as of July 2024)
Staff Recommends
2% @ $300,554 Bps
PERCENTAGE EXAMPLES
Based on amount purchased Processing Fee 3%
Will automatically change based on amount of the
transaction • $25 registration fee • $92 water bill would
• Ensuring a fair fee relative to the transaction value would equal$0.50 equal$1.84 charge
• Flexibility to absorb fees charge
1
8/21/2024
Other Cities
4.0%
4.00 3.8%
City 3.0%
3.x1
•
2.3%
Compariso __ _
2 DO
$1.25
L00
0.00
City or Houston League CRy peer park(Permits) Posodeno Mont Belvieu
2