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
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April 9, 2020
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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.
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April 9, 2020
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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