Issuu on Google+


Mercedes Renteria District 1

Chris Presley District 2

Brandon Capetillo Mayor ProTem

Terry Sain District 4

Robert Hoskins District 5

David McCartney District 6

tonians,

proud ytown, I am a B f o y it C port: taff of the inancial Re uncil and S o F l C a e u n th n f o A essful On behalf 13 Popular nother succ 0 a 2 t r ’s o n p w re to y to ok at a y d concise lo to present B We’re happ n . a re r a tu u le c F a r o Ou ining the g you with Bridging T ce in mainta at providin n th ta e r v o e p li e im b t of utmos year and operates is y it c r u o y how us. the e placed in trust you’v jects within ro p w e n y yn growth. Ba ment of ma e d c te n n u e o d n e n c a re ork, t 2013, infrastrucpath of unp wn, hard w e w to e y th n a n Throughou e B o s e n in th w re es e as set Bayto difficult tim nderway. H ring steam e u y t ll th e a ia g g c community ts n ly c a k n je through fi omy is quic ustrial pro taff. carried us e tial and ind town’s econ v n a e h id service or s s s e re to rc s l, u n o ia s o ti rc re c e f u m o d ture, com wardship o major re dd careful ste ed budget and with n n a y it rtunity. Buil v o ti p a p c o n cre d la n a a b pulation rificing a avel the industry, po without sac ear as we tr in y is th w th s ro u g l r bstantia theme fo ry city. ady for a su specially appropriate re is n 21st Centu w s to u y e a ro n B e a p y s a is d ro To nd p uture a vibrant a ge to the F nges and ing the Brid g Baytown’s future as ncial challe a n fi s it t e m urin aytown t (IDA) road to ens t Agreemen he City of B T ic tr r. a is e D y l g ia in th and nd ustr smart grow nd our g, yet dema etter as sales tax, Ind h g in u it c ro x h e T n . a even b riving, a e growth 2013 was looks to be show positiv on and industry are th 4 1 to 0 2 e . u d n ti re e n prosp sales co s, educati nd housing ay. Busines w e th g in revenues, a d a aytown is le f Baytown planning, B t the City o n e d fi n t. o h c wn. ig m future is br ens of Bayto nity and I a u iz it m c m e o c th , le s r ib custome h an incred sible to our s o part of suc p e e b ic to v r d e u I‘m pro the best s to provide e u n ti n o c l wil Sincerely,

Fellow Bay

or

arlos, May

nC Stephen Do

2


Connecting to Baytown Cross over the scenic Fred Hartman Bridge and you’ll find Baytown. Located just 30 miles east of downtown Houston, Baytown is the third largest city in Harris County, and is easily accessible via Interstate 10, a major gateway on the city’s northern border. The city encompasses an area of 34 square miles and boasts a rich environment, as well as a strong historical and economic heritage.

The city’s strategic location has encouraged a successful and diverse blend of employment opportunities and recreational activities centered around the area’s waterways. Located in the Texas Independence Trail region, Baytown is rich in history. General Sam Houston was an early resident, and the area played a significant role in the Battle of San Jacinto in 1836. The region was also home to the Karankawa Indians; their artifacts can still be found at the Baytown Nature Center. Originally three separate towns, the City of Baytown combined Goose Creek (dating back to before 1850), and oil boom towns Pelly (established in the late 1910s), and East Baytown (early 1920s) when it incorporated in 1948. Baytown is a Home Rule City operating under the Council-Manager form of government, with a City Council composed of a Mayor (elected at large) and six single district Council members. The City Council appoints a City Manager to act as the chief administrative and executive officer of the City.

3


Our Foundation for Success The City of Baytown is proud to be an organization where character counts and service is more than a catch phrase.

Our Mission: To balance public resources and services in order to provide for the health, safety, and welfare of the community, enhance quality of life, and plan for the future. Our Vision: To be a progressive community that values quality of life, diverse economic opportunities and civic pride as we honor our past and shape our future.

• • • • • •

• • • •

Live the City’s Core Values

Leadership: show others the way Integrity: we earn and honor the trust of others Teamwork: we help each other succeed Excellence: we understand our jobs and take pride in doing them well Respect: we conduct our business with courtesy, kindness and fairness Service: we anticipate our customers’ needs and provide solutions

Get better all the time

Innovate by learning from others and evaluating how we can improve the way we provide services. Ask customers and employees how we can improve. Train employees to perform their jobs at higher levels. Develop employees within their current positions and grow leaders from within the organization.

Communicate

• Always step back when making a decision and consider who needs to be involved and who needs to be informed of what is happening, whether it’s the public or fellow employees. • Make every decision with the future in mind. • Will the decision make Baytown a better place to live, work and visit? • What impact will the decision have on Baytown in twenty years? • Will the decision have a positive impact on Baytown’s community spirit?

Give back

• Positively impact the Baytown area as public servants and as members of the community.

44


Connecting Community and Quality Each of the City’s 800 employees works toward a common goal - a vision for our community set out by the City Council outlining priority areas on which to focus our efforts. These include: citizen safety, economic and financial health, development and redevelopment and infrastructure maintenance/improvement. Building and sustaining a strong and vibrant community is always our first priority.

By the Numbers Population Elevation Avg. Temp Avg. High Avg. Low Avg. Precip. Med. Income Median Age

73,950 34 ft. 68.7o F 77.9o F 59.6o F 53.8 in. $50,107 31

Police Statistics 2012 6,806 Arrests Accident Reports 1,899 16,120 Citations Offense Reports 14,800 Calls for Service 46,175

2013 5,877 1,980 21,731 15,144 48,988

Parks & Recreation Statistics Parks 47 Developed Park Acreage 967 Undeveloped Park Acreage 117 Spraygrounds 4 Baseball/Softball Diamonds 22 Tennis Courts 4 Community Centers 1 Water parks 2 Quick Soccer Courts 2

Water & Sewer Customers 2012 22,104 Water 21,241 Sewer

2013 21,212 21,316

5


Visitors Welcome Tourism plays an important role in a community’s economic development and stability. When hotels are full, restaurants do well, and retail gets a boost. The end result is increased municipal tax revenues, which contribute to lower taxes for residents. A great way to support tourism is to personally know your city’s assets. What better way to support our local economy than to be a tourist in our own backyard? A few things Baytown has to offer are Nature tourism, Historical tourism and Cultural tourism.

Be a Tourist in Your Own Backyard! Want to spend the day in a serene environment observing nature? Visit the Eddie V. Gray Wetlands Center and the Baytown Nature Center, both on the Great Texas Birding Trail. Then take a stroll along Baytown’s Goose Creek Stream Greenbelt Trail. Want to learn more about our community’s heritage? Visit the Baytown Historical Museum, then head over to the Republic of Texas Plaza, and finish up with dinner on Texas Avenue near historic Goose Creek. And don’t forget to visit the many historical markers throughout the community, including the marker dedicated to the property once owned by General Sam Houston. Want to hear great music, see a performance or just stroll along looking at art? Get tickets for a production at the Baytown Little Theater or the Baytown Symphony Orchestra. Purchase tickets for a performance at Lee College’s Performing Arts Center or visit one of the galleries on Texas Avenue: the Baytown Art League’s Gallery or Portrait of a Warrior Memorial Art Gallery!

6


Building Bridges to the Future Baytown has embarked on a period of substantial growth. Significant expansions by local industry are underway, bringing many new faces, as well as opportunities to our community. New restaurants and retail continue to make their way into the city. To support the unprecedented growth coming to Baytown and to ensure that our community is strong for future generations, infrastructure growth, smart planning, and increased investment in public safety are strong priorities.

Communities across the country are coming back from the recession, with Baytown leading the charge. The City of Baytown has, and will continue, to make investments to support this growth in our community. On the employment front, unemployment continues to drop. Billion dollar expansion projects for local industry are bringing thousands of construction jobs and hundreds of permanent positions to our community. New companies, including Buc-ee’s are locating new facilities in Baytown as well. Retail growth is also on the rise with construction of a new WalMart and retail complex underway at I-10 and State Highway 146. As Baytown’s economy grows, so does the need for City services. In anticipation of this growth, the City expanded public safety with the building of Fire Station 7; and hired additional fire fighters and police officers. Infrastructure was not ignored. With over $2 million allotted to street maintenance every year for the past few years, the City has been addressing mobility needs across town. New sidewalks, extended thoroughfares, and the Texas Avenue Streetscape project have made Baytown easier to navigate and more attractive. Water and wastewater capabilities continue to be improved and expanded. Multiple park projects, such as the Pirates Bay expansion and a new disk golf course, improve a network of parks including Calypso Cove and Bayland Marina, that offer quality leisure opportunities to our residents. The City’s financial health is strong. Sales tax revenue is up over 10% and Industrial District Agreement revenue continues to climb. The City operates with a balanced budget and maintains strong bond ratings. What does all this mean? It means that Baytown is well prepared as we go into this growth. Careful planning and good stewardship have prepared the City and the community for a strong future. And that is something we can all be proud of.

77


Strong Financial Stability Statement of Net Position

(Accrual Basis of Accounting) 2012 2013 Current and Other Assets $ 114,559,267 $ 119,186,673 Capital Assets, Net 393,015,563 418,888,522 Total Assets 507,574,830 538,075,195 Long-Term Liabilities 211,229,410 239,269,901 Other Liabilities 20,146,158 17,990,853 Total Liabilities 231,375,568 257,260,754 Net Assets: Net investment in Capital Assets 236,572,975 245,020,692 Restricted 20,829,679 37,532,008 Unrestricted 18,796,608 (1,738,259) Total Net Position $ 276,199,262 $ 280,814,441 The Statement of Net Position presents information on all of the City's assets and liabilities, with the difference between the two presented as net assets. The statement excludes the Baytown Area Water Authority (BAWA) and the Municipal Development District (MDD).

Bond Ratings Moody’s Aa2 Stable • Ongoing development occurring within the city and industrial districts • Historically sound financial operations and healthy reserves • Sizeable tax base bolstered by industrial district values

Standard & Poor’s AA Stable • Deep and stable economy, with

access to the stable Houston metropolitan statistical area • Steady payments from a payments-in-lieu-of-taxes (PILOTs) agreement with industrial districts, which account for a significant portion of its revenue stream • Very strong financial position, coupled with very strong reserves

Glossary of Financial Terms Accrual Basis of Accounting - A method of accounting that recognizes the financial effect of transactions, events, and interfund activities when they occur, regardless of the timing of related cash flows. Capital Assets - Land, improvements to land, easements, buildings, building improvements, vehicles, machinery, equipment, works of art and historical treasures, infrastructure, and all other tangible or intangible assets that are used in operations and that have initial useful lives extending beyond a single reporting period. Current Assets - Assets which are available or can be made readily available to finance current operations or to pay current liabilities. Current assets also include those which will be used up or converted into cash within one year. Some examples are cash, temporary investments and taxes receivable which will be collected within one year. Modified Accrual Basis of Accounting - Basis of accounting to which (a) revenues are recognized in the accounting period in which they become available and measurable and (b) expenditures are recognized in the accounting period in which the fund liability is incurred, if measurable, except for unmatured interest on general long-term debt and certain similar accrued obligations, which should be recognized when due. (cont.)

8


Statement of Activities (Accrual Basis of Accounting)

General Revenues Property Taxes Sales and Hotel/Motel Taxes Franchise Taxes Industrial District Payments Investment Income Miscellaneous Total Revenues Governmental Activities General Government Public Safety Public Works Public Health Parks, Recreation & Culture Interest and Fiscal Agent Fees Total Governmental Activities Business-Type Activities Water and Sewer Sanitation Bayland Island Development Aquatics Storm Water Utility Total Business-Type Activities Total Expenses Change in Net Position

2012 $20,121,463 17,343,951 3,800,997 27,403,488 392,846 1,496,293 70,559,038

2013 $21,128,244 18,558,609 3,825,432 28,339,356 893,656 1,777,705 74,523,002

(20,284,651) (33,442,517) 5,487,020 (990,419) (8,577,213) (3,229,968) (61,037,748)

(20,372,715) (33,590,770) (3,843,566) (1,337,489) (8,274,988) (3,749,173) (71,168,701)

7,586,635 281,364 (138,659) (255,358) 707,307 8,181,289

4,723,620 (96,470) (191,751) (189,238) 780,646 5,026,807

(52,856,459) $17,702,579

(66,141,894) $8,381,108

Glossary of Financial Terms (cont.) Invested in Capital Assets, Net of Related Debt - This represents the City’s investment in its capital assets less accumulated depreciation and any outstanding debt due to the acquisition, construction, or improvement of capital assets. Long-Term Liability - A liability with a future benefit over one year, such as notes payable that mature in more than one year. Restricted Net Assets - A component of net assets calculated by reducing the carrying value of restricted assets by the amount of any related debt outstanding. Unrestricted Net Assets - Portion of net assets that is neither restricted nor invested in capital assets (net of related debt).

9


Smart Growth/Strong Communities Have you ever considered what you get for your tax dollars? City taxes paid by the average household per year with a homestead exemption are $676.42. That’s about $1.85 a day. Less than the price of a soda in a restaurant. What does the City provide for that $1.85? 24/7 Police, Fire Protection and Emergency Medical Services * Restaurant Inspections Neighborhood Protection and Animal Control Services * Maintenance of over 400 miles of paved streets * Maintenance of over 350 miles each of water and sanitary sewer lines * Over 40 Parks, including softball fields, skate parks, a bark-park and water parks * Building inspections and code enforcement * Library Services

Top Ten Taxpayers

Property Taxpayer 2013 Taxable Assessed Value $10,712,322 CenterPoint Energy Inc. 1,953,437 Sustainable Power Corp. 1,851,690 Petroleum Wholesale Inc. 1,360,310 PMD Enterprises, LLC Govinji Multiple 774,000 Business, LLC 723,160 Dicus Jimmie 705,630 Oneal Robert 576,690 Rios Pedro M & Mary E 565,410 Grohman Venture W-1 Ltd. 563,940 Dykes Norman $19,786,589 Source: Goose Creek ISD Tax Office and Chambers County Appraisal Districts.

Taxing Entities/Tax Rates

FY 2013 - Tax rates per $100 of assessed valuation Source: Harris County Appraisal District

City of Baytown $ 0.82203 Harris County 0.40021 Harris County Flood Control District 0.02809 Port of Houston Authority 0.01952 Harris County Hospital District 0.18216 Harris County Dept. of Education 0.00662 Goose Creek ISD 1.33213 Lee Junior College District 0.24100 Total $ 3.03176

Top Ten Area Employers

2013 Sales Tax Rate Breakdown State of Texas 6.250% City of Baytown 1.000% Municipal Development District 0.500% Street Maintenance 0.250% Crime Control & Prevention District 0.125% Fire Control, Prevention & EMS District 0.125% Total Sales Tax 8.250%

Employer Employees

3,785 Exxon Mobil Baytown Complex 3,012 GCCISD Houston Methodist San Jacinto Hospital 1,687 1,100 Bayer Corporation 800 JSW Steel 685 Chevron Phillips Chemical Company 600 Wal-Mart Distribution Center 325 Home Depot Distribution Center 245 TMK-IPSCO 200 Exel Logistics Source: Baytown Chamber of Commerce, City of Baytown and Lee College.

10


Recognized For Excellence The Government Finance Officers Association of the United States and Canada (GFOA) has given an Award for Outstanding Achievement in Popular Annual Financial Reporting to the City of Baytown, Texas for its Popular Annual Financial Report for the fiscal year ended September 30, 2012. The Award for Outstanding Achievement in Popular Annual Financial Reporting is a prestigious national award recognizing conformance with the highest standards for preparation of state and local government popular reports. In order to receive an Award for Outstanding Achievement in Popular Annual Financial Reporting, a government unit must publish a Popular Annual Financial Report, whose contents conform to program standards of creativity, presentation, understandability and reader appeal. An Award for Outstanding Achievement in Popular Annual Financial Reporting is valid for a period of one year only. The City of Baytown, Texas has received a Popular Award for the last two consecutive years (2011-2012). We believe our current report continues to conform to the Popular Annual Financial Reporting requirements, and we are submitting it to GFOA.

2013 Awards and Recognitions • Government Finance Officers Association (GFOA) Distinguished Budget Presentation Award for Fiscal Year 2011-12 • GFOA Certificate of Achievement for Excellence in Financial Reporting for Fiscal Year Ending 2012 • Texas Comptroller Leadership Circle Gold Member - Fourth Year Award • Keep Texas Beautiful - Health Department’s Keep Baytown Beautiful Program - Award for Sustained Excellence in the Governor’s Community Achievement Award Competition • Harris/Galveston Area Council - 2013 Parks and Natural Areas Award, Planning Process Category • Texas Recreation and Park Society - 2013 Lone Star Programming Award Class III • Texas Recreation and Park Society 2013 Outstanding Service Organization Award

11


The Popular Annual Financial Report (PAFR) is intended to summarize and simplify the statistical, economic and financial information contained in the 2013 Comprehensive Annual Financial Report (CAFR). The CAFR was prepared in conformance with generally accepted accounting principles (GAAP) and was independently audited by Belt Harris Pechacek, LLLP. The PAFR, while unaudited, provides a brief analysis of where the City’s revenues come from and where the dollars are spent as well as trends and details on the local economy. It is presented as a means of increasing public awareness about the City’s financial condition through a more user-friendly presentation. For a more detailed, GAAP basis, full disclosure review of the individual funds and component units’ financial statements, please refer to the City’s CAFR that is accessible through the City’s website: http://www.baytown.org/content/financial-transparency

For more information on the City of Baytown, visit www.baytown.org, follow us on Facebook and Twitter or Baytown Television on Comcast Channel 16. ©2014 City of Baytown Public Affairs 2401 Market Street, Baytown, TX 77520 281-420-5311 www.baytown.org


2013 pafr final low res