HomeMy WebLinkAboutResolution No. 510RESOLUTION NO. 510
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE BAYTOWN
MUNICIPAL DEVELOPMENT DISTRICT ADOPTING A BUDGET FOR THE
ENSUING FISCAL YEAR, BEGINNING OCTOBER 1, 2026, AND ENDING
SEPTEMBER 30, 2027; AND PROVIDING FOR THE EFFECTIVE DATE
THEREOF.
BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE BAYTOWN
MUNICIPAL DEVELOPMENT DISTRICT:
Section 1: That the budget estimate of the revenues of the Baytown Municipal
Development District and the expenses of conducting the affairs thereof for the ensuing fiscal year,
beginning October 1, 2026, and ending September 30, 2027, as finally submitted to the Board of
Directors by the General Manager of said District, is hereby adopted and approved as the budget
estimate of all the current expenses, as well as the fixed charges against said District for the fiscal
year beginning October 1, 2026, and ending September 30, 2027. A copy of the budget is attached
hereto as Exhibit "A" and incorporated herein for all intents and purposes.
Section 2: This resolution shall take effect immediately from and after its passage by the
Board of Directors of the Baytown Municipal Development District.
INTRODUCED, READ, and PASSED by the affirmative vote of the Board of Directors
of the Baytown Municipal Development District this the 23rd day of July, 2026.
CHARLES JOHNSON, President
ATTEST:
ANGELA JACKSON, Secretary
APPROVED AS TO FORM:
SCOTT LEMOND, General Counsel
R:1.Ordinances and Resolutions Resolution Drafts MDD 2026-07-23 Resolution Adopt FY2026-2027 Budget.mhs.docx
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Municipal Development District
Overview
Objective:
The Baytown Municipal Development District (MDD) seeks to facilitate economic
growth and enhance the quality of life for the City of Baytown. In doing so, the
MDD may help develop and finance any permissible project as defined in
Chapter 377 of the Texas Local Government Code that benefits, strengthens and
diversifies the economic base of Baytown. The MDD jurisdiction includes the City
of Baytown and its extraterritorial jurisdiction.
Duties. -
Provide strategic direction concerning development projects and ensure
financial accountability for MDD funds.
• Promote the retention and expansion of existing businesses for a sustainable
economy that leads to primary job creation, and provide opportunity for new
business development.
• Position Baytown as an attractive destination for visitors and further cultivate
a desirable community for residents to live, work and play.
• Facilitate infrastructure projects and strategic investments that will enhance
the quality of life and sense of place needed to foster sustainable and quality
development.
The Board
On May 5, 2001, in the general election, the citizens of the City of Baytown voted
to authorize the creation of the Baytown Municipal Development District (MDD)
and the imposition of a sales and use tax at the rate of one-half of one percent
for the purpose of financing economic development and parks projects that
provide economic benefit, diversify the economic base of the community and
improve our quality of life.
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The board is comprised of the Mayor and six Council members.
• Charles Johnson, President
• Laura Alvarado, Vice President
• Sarah Graham, Director
• Jacob Powell, Director
• Mike Lester, Director
• Ken Griffith, Director
• James Franco, Director
• Angel Jackson, Secretary
On October 26, 2023, the MDD board voted to create the Baytown Economic
Development Advisory Committee to assist in the conduct of the operation of the
City government and work with City economic development staff to identify and
review opportunities that will grow and enhance the quality of life for the City of
Baytown, but not limited to, reviewing Business Improvement Grants and making
recommendations to the City Council. The committee is comprised of seven
citizen members appointed by Council.
Budget Executive Summary
The FY2026-27 Proposed Budget for the Municipal Development District (MDD)
reflects a strategic allocation of resources aimed at supporting economic
development, enhancing community amenities, and fulfilling long-term debt
obligations. Total projected revenues for FY27 are $9.95 million, while total
expenditures are budgeted at $8.96 million, resulting in revenues exceeding
expenditures by $862,390 and a projected ending working capital balance of
$3.83 million.
Revenues
Projected revenues for FY2026-27 total $9,947,727 and include sales tax
revenue of $9.98 million, which remains the primary funding source for the
district. Rebates are projected at $198,153, reflecting obligations tied to existing
agreements. Investment interest is projected at $163,777.
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Expenditures
Total proposed expenditures for FY2026-27 are $9,085,337, primarily supporting
economic development activities, debt service, and transfers. Economic
Development expenditures total $3.56 million and include the Economic
Development Department, legal services, business recruitment and retention,
EDF support, Hotel/Convention Center operations, Baytown Voice Magazine
outreach, and other services.
Non -Operating Expenses & Working Capital
Debt service totals $5.02 million and includes obligations related to the NE
Wastewater Treatment Plant, Aquatics Master Plan, Pirates Bay Waterpark
Expansion, Convention Center Series 2021C, and Hotel Series 2021A/B.
Transfers total $500,000 for project administration and overhead to the General
Fund.
The projected ending working capital balance of $3.83 million positions the MDD
to maintain financial flexibility while continuing to support long-term economic
development priorities.
CITY OF BAYTOWN
MDD- MUNICIPAL DEVELOPMENT DISTRICT FUND 3300
BUDGET SUMMARY
Actual
2024-25
Revised
Budget
2025-26
Estimated
2025-26
Proposed
2026-27
Revenues
Sales Tax
$9,172,120
$9,266,3129
$9,691,361
$9,982,102
Rebates
(166,839)
(160,000)
(171,993)
(198,153)
Investment Interest
155,187
122,055
159,007
163,777
Intergovernmental Funds
326,954
-
-
-
Miscellaneous
155,336
-
-
-
Total Revenues
9,642,758
9,228,367
9,678,375
9,947,727
Expenditures
Economic Development
Economic Development
305,197
315,245
323,669
531,916
Department
Legal Services
64,443
150,000
150,000
150,000
Development of
New/Expansion of Existing
Businesses and Industry
-
100,000
100,000
100,000
Economic Development
Foundation (EDF)
-
350,000
350,000
225,000
Hotel/Convention Center
Operations
2,410,349
2,255,000
2,255,000
2,345,000
Economic Incentive - 110
Property Group
-
21,000
21,000
-
Verdunity
130,000
ZenCity
-
-
-
10,000
Baytown Voice Magazine
80,645
70,000
70,000
70,000
Total Economic
2,860,634
3,261,245
3,269,669
3,561,916
Development
Water & Sewer Projects
Cost Share w/Developers
to Upsize Utilities
-
357,598
357,598
-
Total Water & Sewer Projects
-
357,598
357,598
-
Debt Service
NE WW Treatment Plant
(60% of 2014, 2015 &
2016 GO Refunding)
973,066
871,663
871,663
173,699
Aquatics Master Plan
Construction
397,825
386,450
386,450
397,950
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CITY OF BAYTOWN
MDD- MUNICIPAL DEVELOPMENT DISTRICT FUND 3300
BUDGET SUMMARY
Revised
Actual Budget Estimated Proposed
2024-25 2025-26 2025-26 2026-27
Pirates Bay Waterpark
Expansion
336,070
334,487
334,487
334,022
Convention Center Debt
Service - Series 2021 C *
1,870,400
1,888,400
1,888,400
2,197,900
Hotel Debt Service -
Series 2021 A/B **
1,901,725
1,901,000
1,901,000
1,919,850
Total Debt Service
5,479,086
5,381,999
5,381,999
5,023,421
Transfers
Project Administration &
Overhead - GF
300,000
550,000
550,000
500,000
MDD Trustee
300,000
-
-
-
Total Transfers
600,000
550,000
550,000
500,000
Total MDD Expenditures
8,939,720
9,550,843
9,559,266
9,085,337
Revenues Over/Under
Expenditures
703,039
(322,476)
119,109
862,390
Beginning Working Capital
2,147,163
2,850,201
2,850,201
2,969,310
Ending Working Capital
$2,850,201
$2,527,726
$2,969,310
$3,831,700
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BAYTOWN
BAYTOWN MUNICIPAL DEVELOPMENT DISTRICT
ANNUAL REQUIREMENT TO AMORTIZE BONDED DEBT
Fiscal Principal Interest Interest Total Annual
Year
02/01
02/01
08/01
Interest
Requirement
2024
1,367,285
880,129
849,788
1,729,916
3,097,202
2025
1,438,892
849,788
820,678
1,670,466
3,109,358
2026
1,862,957
820,678
779,360
1,600,038
3,462,995
2028
1,547,826
750,196
713,975
1,464,171
3,011,997
2029
1,635,697
713,975
675,651
1,389,626
3,025,323
2030
1,692,619
675,651
637,852
1,313,503
3,006,121
2031
1,374,540
637,852
605,635
1,243,487
2,618,028
2032
1,448,129
605,635
571,647
1,177,283
2,625,412
2033
1,508,384
571,647
536,167
1,107,814
2,616,198
2034
1,237,340
536,167
505,770
1,041,937
2,279,277
2035
1,238,503
505,770
475,075
980,845
2,219,348
2036
1,250,000
475,075
443,825
918,900
2,168,900
2037
1,305,000
443,825
411,200
855,025
2,160,025
2038
1,375,000
411,200
376,825
788,025
2,163,025
2039
1,440,000
376,825
340,825
717,650
2,157,650
2040
1,515,000
340,825
302,950
643,775
2,158,775
2041
1,590,000
302,950
263,200
566,150
2,156,150
2042
1,675,000
263,200
229,700
492,900
2,167,900
2043
1,735,000
229,700
195,000
424,700
2,159,700
2044
1,805,000
195,000
158,900
353,900
2,158,900
2045
1,880,000
158,900
121,300
280,200
2,160,200
2046
1,950,000
121,300
82,300
203,600
2,153,600
2047
760,000
82,300
67,100
149,400
909,400
2048
790,000
67,100
51,300
118,400
908,400
2049
820,000
51,300
34,900
86,200
906,200
2050
855,000
34,900
17,800
52,700
907,700
2051
890,000
-
17,800
17,800
907,800
$39,238,941 $11,881,248 $11,036,720 $22,917,968 $62,156,909
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BAYTOWN MUNICIPAL DEVELOPMENT DISTRICT
General
Obligation
and
2014 Refunding 2,100,283 394,496 43,424 13,740 57,164 351,072
General
Obligation
and
2015 Refunding 1,770,131 476,977 100,011 16,524 116,536 376,966
General
Obligation
and
2019 Refunding 3,595,000 1,470,000 350,000 47,950 397,950 1,120,000
General
Obligation
and
2021A Refunding 2,906,667 2,028,333 248,333 85,692 334,025 1,780,000
Combined
Limited
2021 C Sales Tax
Revenue & 30,680,000 30,200,000 510,000 1,365,650 1,875,650" 29,690,000
Third Lien
Bonds"
Total $41,052,081 $34,569,807 $1,251,769 $1,529,556 $2,781,325 $33,318,038
Notes:
* The Annual Requirement to Amortize Bonded Debt reflects only the principal and interest
payments contractually due during FY2026-27. The debt service budget is higher because it
includes advance funding for Next Fiscal Year debt obligations. The 2021C Combined Limited
Sales Tax Revenue and Third Lien Bonds have an FY2026-27 debt service requirement of
$1,875,650, while the budget includes $2,197,900 to fund the payment due October 1, 2028.
"The budget includes $1,919,850 for Hotel Debt Service Series 2021A/B.
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