Loading...
2020 04 09 WS MinutesMINUTES OF THE REGULAR WORK SESSION OF THE CITY COUNCIL OF THE CITY OF BAYTOWN April 9, 2020 The City Council of the City of Baytown, Texas inet in a Regular Work Session on Thursday, April 09, 2020, at 5:53 P.M., in the Council Chamber of the Baytown City Hall, 2401 Market Street, Baytown, Texas with the following in attendance: Laura Alvarado Robert Hoskins Charles Johnson David Himsel Chris Presley Council Member Council Member Council Member Council Member Council Member Brandon Capetillo Mayor Rick Davis City Manager Karen Horner Assistant City Attorney Leticia Brysch City Clerk Keith Dougherty Sergeant at Arms Mayor Capetillo convened the April 09, 2020, City Council Regular Work Session with a quorum present at 5:53 P.M., all members were present with the exception of Council Member Betancourth who was absent. Due to the COVID 19 Disaster and CDC's recommendation regarding social distancing measures, the public was not allowed to be physically present at this meeting. However, the meeting was available to members of the public via teleconferencing. 1. DISCUSSIONS a. Discuss the potential financial implications of the COVID-19 disaster on the current FY 2019-20 budget and proposed FY 2020-21 budget of the City of Baytown and its component units. Assistant City Manager, Nick Woolery presented the agenda item and noted that staff discussed the same presentation regarding this item with the Finance Committee in a meeting held during the week prior to this meeting. He further noted that by staff and Council working together on the budget in the years prior, it prepared the City for the potential financial implications of a situation, such as the COVID-19 disaster. He stated that the 125 days of operating expenditures for the year ending 2019 exceeded the policy, but it set the City up for a situation such as the COVID 19, even if the numbers get worse than what was projected. Mayor Capetillo inquired of the range in which the number of days the City should be in to avoid having numbers too low or too high that would financially impact the budget. Mr. Woolery City Council Regular Work Session April 9, 2020 Page 2 of 3 stated that per the policy the goal was 90 days and 110 days in terms of increasing bond ratings. He stated that in the budget the number was 103, which was good position that would allow for bond ratings, unforeseen circumstances, and cash funding projects. Mr. Woolery stated with regards to revenues that sales tax, licenses and permits, charges for services, and fines and forfeitures were significantly decreased in March, April, and May, due to the current impact from the COVID 19. He stated that after May through September there were modest increases from the current level and staff was in the process of thinking through what to project for the next fiscal year (FY20-21). He noted that because sales taxes come in a couple of months afterwards, May would be the time to gauge the impact for the fiscal year. Mr. Woolery stated that sales taxes was integrated with franchise fees, therefore, as a whole indicated there was a decline of $2 million, and along with the previous mentioned categories steepened even more. He noted that the general fund budget was only off by approximately four to five hundred thousand dollars, which was stifled because of the industrial development agreements (IDA) and property taxes already received that came in over budget. Mr. Woolery stated that $1.9 million of expenditures was identified to be put on hold, such as the funds designated for the aesthetics of Texas Department of Transportation's (TxDOT) infrastructure improvements, trainings, and the public works facility renovation. He stated that based on the City's current projections, the holds would position the City to end the current fiscal year (FY 19-20) with 121 days of operating expenditures. Furthering during the presentation and with regards to sales taxes, Mr. Woolery stated that staff would continue to monitor the progress of other funds. He stated that the street maintenance was off by approximately $800,000, but there was enough fund balance to complete all of the projects budgeted for, as well as, have a good amount left after the fiscal year. He stated that there were projects in the MDD fund on hold that would be reprogrammed for next year. He further stated that the impacts to the CCPD and FCPEMSD would continue to be monitored for a more accurate analysis and noted that the two funds would possible need support from the general fund next fiscal year. Mr. Woolery stated that the Hotel/Motel fund would have the greater impact, but would be mitigated by the revenue projections received for the first six months of the year. He stated that although there were drastic cuts in the projections, the budget was only off by $200,000. He noted that there were funds on hold in the HOT funds that would have minimal impact and that the Water and Sewer fund would be in good shape mainly because more people were using more water being at home under the current circumstances. He further noted that the uncollected rate with regards to the water and sewer funds increased due to collections being delayed. Mr. Woolery stated that the aquatics funds were based on the season starting, therefore, those projections would be updated when the season's start date was determined. He noted that adjustments would be made to support the fund in the event there was no season. Council Member Hoskins inquired if the cost of running water at the water parks were currently being treated. It was noted that there was no cost to treat the water. City Council Regular Work Session April 9, 2020 Page 3 of 3 Council Member Presley inquired if there was a need that the City of Baytown may encounter that should be submitted to the Federal Government with regards to the funds allocated for municipalities and local governments. City Manager Davis stated that he requested assistant from Bryan Yeates to formulate a group that would examine the opportunities, how the City of Baytown align with such opportunities, and the process for applying for the mentioned funds. Additionally, Mr. Woolery noted that the City of Baytown would be receiving approximately $400,000 in extra CDBG money, in which the process for achieving such was already in motion. City Manager Davis noted that after speaking with other area city managers, the City of Baytown financial position was in a good place. He further stated that staff would continue to monitor the budget and be proactive moving forward with any necessary adjustments. Lastly, Mr. Woolery noted that staff would put most of their attention on one of the uses of the grant funding, which was to support low or moderate income business owners and those with employees with low or moderate incomes. b. Discuss any or all of the agenda items on the City Council Regular Meeting Agenda for April 9, 2020, which is attached below. There were no items to discuss. 2. ADJOURN With there being no further business to discuss, Mayor Capetillo adjourned the April 09, 2020, City Council Regular Work Session at 6:12 P.M. L ticia Brysch, City Cle czw� City of Baytown