2002 08 22 WS MinutesMINUTES OF THE WORK SESSION
OF THE CITY COUNCIL OF THE CITY OF BAYTOWN
August 22, 2002
The City Council of the City of Baytown, Texas, met in work session on August 22, 2002,
at 5:45 p.m. in the Hullum Conference Room of Baytown City Hall, 2401 Market Street,
Baytown, Texas, with the following in attendance:
Ronnie Anderson
Coleman Godwin
Don Murray
Mercedes Renteria III
Scott Sheley
Pete C. Alfaro
Gary M. Jackson
Ignacio Ramirez, Sr.
Gary W. Smith
Absent: Calvin Mundinger
Council Member
Council Member
Council Member
Council Member
Council Member
Mayor
Interim City Manager
City Attorney
City Clerk
Council Member
The meeting was opened with a quorum present after which the following business was
conducted:
Receive presentation and discuss future budget forecast.
Gary Jackson, interim City Manager, reviewed the history of the general fund revenue
growth from 1992 through the present. The general fund revenues have grown from
$25,000,000 to $40,000,000. Industrial District Agreement payments make up 38% of the
general fund revenues, while ad valorem tax payments make up 21.5% of the revenues.
The increases in the IDA revenues are from the increase from 40% to 50% in the payment
formula and from valuation increases. The increases in the ad valorem tax revenues are
from increased appraisal values and from new construction.
The expenditures in the general fund have increased from $24,000,000 in 1992 to
$40,000,000 in 2002. In the 2002 -2003 fiscal year, the expenditures will exceed revenues.
The projection for revenues for the general fund is basically flat through 2005 -2006. A 2%
increase in ad valorem payments is projected. An increase in the IDA payments cannot be
projected because negotiations are in progress.
General fund expenditures were projected with a 1 -Y2% inflationary factor and merit
increases for employees in fiscal years 2003 -2004 through 2005 -2006.
Page 2 of 2
Minutes of the Work Session — August 22, 2002
When the revenues are compared to the expenditures, the expenditures exceed revenues in
a widening pattern.
The fund balance is scheduled to contain funding for 66 days of operations in 2002 -2003.
The preferred range is 45 to 60 days. The higher the reserves, the better the bond rating.
Unless expenditures are reduced or revenues increased the fund balance will move into
negative territory in 2004 -2005. Deficit budgeting is not permitted in Texas.
Council Member Sheley expressed a desire to reduce the working days reserve to provide
for a salary increase for city employees.
Discuss appointments.
Board of Directors, Reinvestment Zone Number One, City of Baytown.
Council Member Murray stated that he would nominate Mr. Gidley and Mr.
Strausser for reappointment to the Reinvestment Zone Number One, City of
Baytown.
Adjourn.
There being no further business, the meeting adjourned at 6:26 p.m.
i ,p?
Garg/W. Sinith
City Clerk