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Home My WebLink About2026 08 13 CC WS MINUTES OF THE WORK SESSION OF THE CITY COUNCIL OF THE CITY OF BAYTOWN August 13, 2026 The City Council of the City of Baytown,Texas, met in a Work Session on Thursday,August 13, 2026, at 4:00 P.M. in the Council Chamber of Baytown City Hall, 2401 Market Street, Baytown, Texas,with the following in attendance: Laura Alvarado Mayor Pro Tem Sarah Graham Council Member Kenrick Griffith Council Member James Franco Council Member Jacob Powell Council Member Mike Lester Council Member Charles Johnson Mayor Jason Reynolds City Manager Scott Lemond City Attorney Angela Jackson City Clerk John Stringer Sergeant at Arms Mayor Charles Johnson convened the August 13,2026 City Council Work Session with a quorum present at 4:00 P.M. All members were present. 1. CITIZEN COMMENTS Mayor Charles Johnson announced citizens signed up to speak. Ryan Scheppe, 2 E. Texas Ave, president of the Baytown Little Theatre introduced a film production known as"Mustang Martha,"coming to the Baytown area. A motion was made by Mayor Pro Tem Laura Alvarado and seconded by Council Member Jacob Powell to extend Mr. Scheppe time by one minute. The vote was as follows: Ayes: Mayor Charles Johnson,Mayor Pro Tem Laura Alvarado,Council Member Sarah Graham, Council Member Kenrick Griffith, Council Member James Franco, Council Member Jacob Powell and Council Member Mike Lester Nays: Approved City Council Work Session Minutes August 13, 2026 Page 2 of 3 Alfred Cervantes, 1809 Harvard St., Houston, introduced himself as the commissioner of the Houston Film Commissions and expressed the importance to incorporate nearby communities with film development opportunities. Matt Ballesteros, 3109 Reba Dr., Houston, is a film producer and expressed interest for film making to take place in the Baytown community and endorsed the film "Mustang Martha" with Jenny Waldo. Jenny Waldo, 803 Tyler Run, Sugar Land, introduced herself as a producer, writer, director currently working on the film "Mustang Martha". Sharing details of the filming location and funding with potential economic boost to the City of Baytown. A motion was made by Mayor Pro Tem Laura Alvarado and seconded by Council Member Jacob Powell to extend Ms. Waldo time by two minutes. The vote was as follows: Ayes: Mayor Charles Johnson,Mayor Pro Tern Laura Alvarado,Council Member Sarah Graham, Council Member Kenrick Griffith, Council Member James Franco, Council Member Jacob Powell and Council Member Mike Lester Nays: Approved 2. DISCUSSIONS a. Discuss the Cityof Baytown Fiscal Year 2026-2027 Proposed Budget. Mayor Charles Johnson announced a citizen signed up to speak. June Stansky,4601 Driftwood Dr.,expressed her recommendations and opinion regarding funding for the bus transportation services and recommendation to increase bus services provided to the residents of Baytown. City Manager Jason Reynolds provided the 26-27 fiscal year proposed budget presentation. (Exhibit A) Director of Finance Teresa McKenzie presented details regarding changes made to the budget since the previous Council meeting and requested the City Council provide their recommendations. Mr. Reynolds further discussed the adjusted tax rate to include the debt balance. City Attorney Scott Lemond, entered the meeting at 4:34 P.M., and requested to be excused from the work session meeting. Mayor Charles Johnson permitted the City Attorney to step away from the meeting. City Council Work Session Minutes August 13, 2026 Page 3 of 3 The Mayor and Council Members shared their recommendations as listed below. • Fund Balance to remain at 92 days • Current tax rate: .69803 • Debt service trend: maintain current budget/ increase tax rate/pay as you go 3. ADJOURN With there being no further business to discuss, Mayor Charles Johnson adjourned the August 13, 2026, City Council Work Session at 6:07 P.M. s °'"• • Angela kson, City cle City of Baytown v 8/18/2026 EXHIBIT "A" CITIZEN COMMENTS ' z BAYTOWN BAYTOWN CITY COUNCIL MEETING Ligust Discussion try Foundations for Success B s z 2a. Discuss budget related items for Fiscal Year 2026—2027. �°°'�•�^ °^ 9 Organizational Priorities • Fiscal Responsibility • Organizational Excellence • Building Trust = —_ Core Values • Caring • Stewardship • Innovation IRXnrS' • Innovation 3 I 8/18/2026 General Fund Discussion Bd1IUl1 S S...2 37 4 5 6 ''Fb. t t t — — 2 3 4 5 6 = 11 :t RP + Ra i+ Rt Xo Xnrls RPRa Rt Xo Xnr Fund Beginning Revenue Revenue Revenue EBpeMeE Expenses Fund --- Balance Property Acute I Transfer In I Ongoing Non-Recurring ' Balance Ending Fund Beginning Revenue Revenue Revenue Expenses Expenses Fund 110 days Property Tax Bate Rates&fees Transfers FY27 Budget $1 AN.-IueFc B2 daYa Changes )AtyOKan rats Balance Property Acute Transfer •p rin Ongoing NoncurtMtB B a adan Ending Changes • rwHe'e"ner • netn,,,Pmen, • Department • Hwn.1., Updates • Homeless Sa.F.•.-SWeen Intervention the Operations seq.r• .MHles m, Fund Beginning Balance Fp1 , Revenue Property s • Spend down from 110 days to 92 days • Revenue Changes • 1 Day of Reserve=$370,000 • Property Tax Rate • 18 Days of Reserve=$4,638,502 1 8/18/2026 Tax Rate over GF Revenue Annual Debt Service pa 0 84 ball' ....... ... 0282 OS 0/8 0/6 0/4 0 7) 0 68 0 66 I I I I I I I I I I I 0 64 i 0 62 1016 /01/ 2018 2019 2020 2021 1012 2013 2024 1025 Revenue a M&O _ ,8is a El‘11 t\ —5.-2023 2024 2024 2025 2026 2027 2023 2024 2025 2026 2027 Prop To $14 3 227 5 $17 9 $27 5 $27 7 MILD $14 3 $27 S $27 5 $27 5 $27 7 o'P S.Aes&F'do $26 2 525 7 526 9 $29 I $26 1 TOLIIRovenrre $42 4rprp 543 8.1•16 5.13 3,63 531 2poT, $44 2lool 2 8/18/2026 Debt Chart a Adjusted Tax Rate with Debt a s S 2026 2027 1&6 4141,4 ADJUSTED NNR M&O VAR Tax 0( So 6a801 SO 6 a801 M&O .40557•1.035 41976 i&5 27339 75991 Tax Rate 60.69803 $0.67967 Revenue Acute Ras Revenue Transfer In hs! • Revenue Changes • Property Taxes • Transfer In • Charges for Services • $3.48mm Odd Trust&Agency Fund • License&Permits • $1 mm Water&Sewer • Intergovernmental • $500k MDD • Fee Changes • $397k TIRZ • Planning&Development-January 1 • $350k BAWA • Health-in FY2026 • $300k HOT A 8/18/2026 5 a 5 Xo Expenses Ongoing saz Xo Expenses Ongoing — Policies Ras Policy Items Completed i Policy Items Outstanding • Policies • Shipping Containers • Data Centers(rude MI) • Secunty Plans for Events • Gas Station Policy(early toll) • Personnel • Health Permits Fees • Downtown Arts District Code Modifications(winter) • PD5 Permit Fees • Priorities Playbook(Council Retreat) •Changes in GF Budget • teak Adjustment Fees • City Dept Fees(spring budget workshop) 9 9 • Mobile Food Truck Permits • Detention/Retention Ponds(undetermined) • Homeless,nterventton • Tabb's Bay Feasibility Study(spring) • Envrsa Dashboard • School Parks&City(undetermined) • Fire Training Field • Transportation • Graffiti Abatement • Boards&Commissions Review • Bond Committee Oversight • Tabb 5 Bay as a Rental • Short Term Rentals • Solid Waste Franchise sees 5 Expenses Ongoing — Personnel hkti 5 Expenses Ongoing — Changes in FY27 Emom Xo Xo Organizational Needs •General Overhead Increase • 29 General Fund Positions • ITS Re-allocation 1 Recommended GF Position 8/18/2026 X a, 6 Expenses Non-recurring — nr Expenses Non-Recurring BA) XII r Supplementals t,„z • Transfers Out- $8,064,749 Organizational Needs • Capital Replacement-$4,259.749 • 16 items for$3.6mm in General Fund for deferred maintenance • Medical Benefits-$1.000.000 • 14 items for$1.3mm in General Fund for expanded or new • Wetlands Center-$70.000 initiatives • Fleet-$2.500,000 • Aquatics-$160,000 Recommended for Approval • Warehouse $75.000 • $4.9mm in Supplemental • 74%of requests proposed are deferred maintenance X6 General Fund Discussion nr Expenses Non-recurring h,Y� RAY -- 3 4 5 6 Supplementals Recommended for Approval• $1.4 -P + !, Rp + Ra + Rt Xo Xn r • $1.4mm-Public Safety Operations • Police Vehicles Fund Beginning Revenue Revenue Revenue Expenses ',Menses Fund • Fire Equipment Balance Property Acute Transfer In Ongoing Non-Recurring Balance Ending • Homeless Intervention 110 days Properly Tax Rote Pates&Seas Tr•,�,,,,y FYZ7 Budget Slam.-.AOn 9a days [Hoge! saver,Operations • $3.5mm-Su ortCity Operations .Posmont pp P • -Department Homeless • Replacement of vehicles and equipment Updates -Homeless Saga.-Support Dtv DP••Intervention �•ro••� m M vMnev n•f•nent g 8/18/2026 ••••••••••••••••,••••...mi... 11.111IMIKM§atill ri Water & Sewer Fund a MINN BAYTOM -..—...., ,..... .v.•..,..,,...,.,,,,-. ""5... ''''S... --—..... ...... ..... ..,....... ,..— .. . - ,. ...........— .-...., ..... ....., ....... 6----- --- --- --- • • -, 2 3 4 . - • • -- • : + RP + Ra + Rt 5- Xo '-Xnr=ti", ......w........w. MM. SAWA. /WM. S.S..80 1 ....•••••••• iitIOS) ubl.A. .101.1101 alliSMO . ... ... I Non..• 0,.7. la.1: 1.1.3. kilLOP " . 1......'.........'... Fund Beginning Revenue Revenue Revenue Expenses Expenses . Fund ........ .,-,-,...e 1.A rIN AIM= 7...l•Tr Balance Property Acute Transfer In Ongoing Non-Recurring Balance Ending .--- ,-i-- •-,io ,..", ..,... ..— •••,--i Ars", i.mioii •,ii.i. T.., 103 days Rates 8 fees Transfet 5 In-$0 '.....4 Debt Service- 107 days vow awe...121...... .11,SAMS Maar. ..•425./. Sty.Z111111 ••••••••••••••......... Yranskrs Out ,........ .«. "was /*ma. ....., . -mt. um+ mars • WBS CIP '.....:'.........u.a. la.......r... we ...am rasa. "........ •' General fund ' ........ .... ',. .'.... '.".- ..-• • fleet ,,....,..... ,.. 1............ ,,,,,.,.,.s.s.,..se,.--•-• • Warehouse _,.................. Revenue Acute T011's a Current Financial Plan MI BEI "N "" i. FY26 FY27 • Fee Changes Water Rate Increase 4.5% 4.515 • Water Rate—October 1 • Sewer Rate—October 1 Sewer Rate Increase 12.4% 12.4% Combined Rate Increase 7.8% 7.9% Includes current rate and recommended increase 2 7 2 8 • 7 8/18/2026 Customer Bill Impacts — Residential Combined : ' s s Expenses Ongoing— Personnel 71/6 Xo 00 $87.36 $96.34 580 Organizational Needs S6o s67.31 • 3 Water&Sewer Positions Requested $60.67 yd0 3 Positions Recommended for Approval ilp 58.66 s9.42 518.03 $19.61 Current Rates • 6 6 Expenses Non-recurring —nn Ex enses Non-Recurrin fium\ h„r��, Ilrp g Xnr' Supplementals • Transfers Out-$20,744,773 Organizational Needs • Debt Service-$16.219,773(annual payment) • 11 items for$1.6mm in W/S for deferred maintenance • W&S CIPF-$3.000.000 • 15 items for$1 mm in W/S for expanded or new initiatives • General Fund-$1,000,000 • Fleet-$450.000 • Warehouse-$75,000 Recommended for Approval • $2,587,100 in Supplemental • 62%of the requests are deferred maintenance Q 8/18/2026 Bn7ae.BUDGET UM.. s Water and Sewer Fund 7raivafe701911 gslw t'\\Hy, rr3oa3m. 'S x inu,I :::zv'..:0635%.:::", e.a.m.1.e ;p%1%25 i6se G'b f S 5 S 2],39e3 113/0.21 ilt 92,97/ vws�l:..w.s. X.11 11 61N„� �S,lti,23 4 5 6 .,�. ..1.� . gem R2Y].,a.. 6s1,1s.9v SUMO iale.�siS�S 43i1, .fM]ig�M.NO,A7R + Ra + Rt - Xo -Xnr� �� ,� �,v� �`•�9� ±m 7c6 ,6sW �•.�� is Opera. SIA10.17. 41.43.IN 62.146.1117 61.7401a1 Fund Beginning Revenue Revenue Revenue Expenses Expenses Fund e,4409444114e er♦ere.a Balance Property Acute Transfer In Ongoing Non-Recurring Balance Ending -.ten Oleo. 566 MS race 0IS x1 130.1d - NR•sa.i 1.OW it W31u 131:92 1,14 161'0„1 ',saw.Oa •_.,-_. 1 216 WO '218 ICI 1 Sae LOG U.4441.a7 IOOOOW SCO COO 1 DIG Ca, i.-ElrMw• .06tl 142 iSala/a 939191.e91 99.991.111 -w eleerr- •I AO a]il IS111„i 3,5."a 076355 eO4 O.0u ..�. Moye;llanp...- I,NM a-fea Oa11e1-a.919.i '1 eA S- MS,,In 1131•.11.1 1,9e1360 ShahMll-SSrq S 1_11Y i VIM 1Il i 11,fd.k'O S 11/I67.705 ;oli.reiea.ee.r.+d 11, M x3 147 eOverview BAYTOWN S • CIP Categories FY 27-31 Proposed • Ongoing Projects Capital Improvement Plan • FY27 Recommended Projects • FY27 Identified Funding Needs • FY28-31 Identified Needs el 8.A'TOWN z a 8/18/2026 40,0, • Facilities Ongoing Projects (Attachment 1) Mtn\ az • Parks and Recreation —5.' •Transportation 36 Projects in Design, Bidding or Construction CIP Categories • 7 Facilities • Drainage • 8 Transportation •Wastewater Collection • 4 Drainage Long term needs and requests of city •Wastewater Treatment • 5 Wastewater Collection departments • BAWA(Water Treatment) • 6 Wastewater Treatment 1 • 3 BAWA(Water Treatment) • -- _ •Water Distribution • 3 Water Distribution ---t•le More than 35 Projects in Planning FY27 Recommended Projects a FY 27 Anticipated Funding Needs & (Attachment 2) saz Potential Sources i,tfs FY26 GO, $111.5 M in Proposed Projects to strengthen . ,,,,•, •„[,,;,,,,, $9,399,000 essential Infrastructure and Assets °itnb"°" '" II°"` special Fund, zzv: r'' Parks,$555,000 ■Reallocated • $37.1 M in Wastewater Treatment ■..a°.,°.,;°" Reallocated, ` S- 'esv,ter Cal- •BAW4 10•h 57,487,938 ...A 5% ■Unfunded • 24.2 M in Water Distribution ■Drain: Unfunded. • $11.7 M in Transportation and Mobility i 7, ■W&WW COS 5'4,703,099 • $7.4 M in Drainage Infrastructure ■FY26GO Total FY27 CIP • $5.9 M BAWA(Water Treatment) Waetewate ■wa„"w. Funding Needs: Treatment cdiP<r�" W&WW COs, • $3.5 M in Public Facilities 33% $111,275,087 se4,130,050 • $2.7 M in Parks and Recreation 1n 8/18/2026 FY 27 Identified Funding Needs FY 28-31 Identified Needs ONI (Attachment 3) is • 10 Facilities `�' Total FY 27 Identified Needs $ 111,275,087 " General Obligation Bonds(Voter Approved 25) $ 9,399,000 • 18 Parks • 11 Transportation Special Funds Parks $ 555,000 • 9 Wastewater Collection - - --- Unfunded Identified FY 27 Needs $ 101,320,187 • 12 Wastewater Treatment Amount Anticipated for Reallocation $ 16,700,000 • 5 BAWA(Water Treatment) • 7 Funding Needed to Implement FY 2027 Projects $ 84,620,187 Water Distribution o • FY27 Other Fund Highlights BAtTOWN • s,,,.s M "S. S.. • 46 Projects • Sanitation Fund FY 27-31 CIP • FY28-31 • Multi-year Contracts Summary • More than$320 M • 72 Projects Delivering today's projects while Prioritizes water,wastewater,mobility, preparing Baytown for drainage,public facilities,and quality-of-life tomorrow's needs improvements to support Baytown's continued growth. 11