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WE GOT EVERYBODY READY TO GET STARTED.
[I. CALL TO ORDER]
OKAY.IT'S ALWAYS NICE TO, UM, ALL RIGHT, LET'S GO AHEAD AND CALL THIS MEETING TO ORDER.
THIS IS THE MEETING OF THE BOARD OF SUPERVISORS, FINANCE AND AUDIT COMMITTEE MEETING FOR MAY 4TH, 2021.
FIRST OF ALL, I HAVE TO THANK EVERYBODY FOR TAKING THE TIME OUT OF THEIR SCHEDULES TO JOIN US TODAY.
THIS VERY IMPORTANT WORK FOR THE COUNTY, THE COUNTY CONTINUES TO BE ON FIRM FINANCIAL GROUND, UH, SOLID FINANCIAL GROUND.
AND, UH, BUT WE'RE IN THE PROCESS OF CONTEMPLATING SOME HISTORIC, UH, UH, THE EVENTS FOR THE COUNTY GOING FORWARD.
SO IT'S GOOD THAT WE HAVE THIS MEETING TO DISCUSS THAT AS HAVE WE GOT A LOT TO COVER TODAY IN A SHORT PERIOD OF TIME TO DO IT.
SO WE'LL TRY AND BE REASONABLY EFFICIENT IN THE WAY WE APPROACH THINGS.
[II. APPROVAL OF MINUTES FROM FEBRUARY 2, 2020 (pages 2-3)]
THE NEXT ITEM ON THE AGENDA IS THE APPROVAL OF THE MINUTES FROM FEBRUARY 2ND, 2020, THEY'VE ALL BEEN DISTRIBUTED IN ADVANCE AND FOLKS WHO'VE HAD A CHANCE TO REVIEW THEM.ARE THERE ANY ADDITIONS, DELETIONS, CORRECTIONS TO THE MINUTES? ALL RIGHT.
I'LL ENTERTAIN A MOTION, SHARON.
WE APPROVE THE MINUTES AS PRESENTED.
DO I HAVE A SECOND? DO I HAVE A SECOND ON THE APPROVAL OF THE MINUTES? IT'S BEEN SECONDED, MOVED AND SECONDED.
ALL IN FAVOR, SIGNIFY BY SAYING AYE.
ANY OPPOSED? ANY ABSTENTIONS? OKAY.
THE MINUTES ARE APPROVED FROM FEBRUARY 2ND, 2021.
[III. FY2021 3rd QUARTER RESULTS (pages 4-6)]
IS THE, UH, FISCAL YEAR 2021 THIRD QUARTER RESULTS.UH, THIS IS INFORMATION ONLY AND WE'LL REVIEW THESE, UH, RESULTS.
UH, THERE'S ONE AFTER WE'D LIKE TO WALK US THROUGH THE RESULTS.
UM, THIRD QUARTER ENDING, UM, ENDS IN MARCH.
SO WE HAVE THREE MORE MONTHS TO GO.
AND THE SCHOOL YEAR, UM, AT THE END OF MARCH, UM, TOTAL REVENUES FOR THE YEAR ARE ESTIMATED TO BE 63.2 MILLION, WHICH IS ABOUT 4 MILLION ABOVE BUDGET.
UM, AND DON'T FORGET WE HAVE ADJUSTED OUR BUDGETS.
SO THIS 21 BUDGET IS THE COVID BUDGET, BUT WE ALSO AMENDED OUR BUDGET, UM, WHEN WE DID THE BONUSES.
SO, UM, SO EVEN COMPARING TO AMENDING THAT BONUS, WE STILL PROBABLY WILL END UP ABOUT 4 MILLION ABOVE THE AMENDED BUDGET, UM, PRIMARILY DUE TO REAL ESTATE AND PERSONAL PROPERTY.
AND I THINK WE KNEW WE HAD BUDGETED, UM, VERY CONSERVATIVELY ON THOSE ANTICIPATING THE COVID YEAR.
SO, UH, EXPENDITURES PROJECTED TO BE ABOUT 2.6 BELOW BUDGET OR 57 MILLION, WHICH WOULD GIVE US AN OPERATING SURPLUS OF 6.2 MILLION.
UM, THAT JUST MEANS HOW DID YOU DO FOR THE YEAR REVENUES OVER EXPENSES? AND THEN WE, UM, SPEND OUR CASH PRIMARILY ON THE CIP DURING THE YEAR AS WELL.
AND, UM, TRANSFERS ARE PROJECTED TO BE ABOUT 7.1 MILLION AFTER TRANSFERS, TOTAL FUND BALANCE WITH DECREASE ABOUT 900,000.
SO, AND, AND THAT YOU'RE GOING TO SEE FLUCTUATIONS IN YOUR TOTAL FUND BALANCE YEAR TO YEAR, UM, DEPENDING ON YOUR OPERATING RESULTS AND HOW MUCH CASH DO YOU SPEND ON THE CIP THAT PARTICULAR YEAR POLICIES WILL
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BE WELL WITHIN TARGET THAT SERVICE EXPENDITURES ABOUT 3%, WHICH IS WELL BELOW OUR TARGET ON ASSIGNED FUND.IF YOU LOOK AT US ON FUND BALANCE AS EQUAL DOLLARS TO
AND AGAIN, THAT'S ASSUMING YOU KEPT ON ASSIGNED FUND MOUNDS DOLLAR TO DOLLAR THE SAME.
WE'LL LOOK AT THAT AT THE END OF THE YEAR, AND WE'LL DECIDE IF WE WANT TO DO THAT, OR IF WE WANT TO INCREASE THAT OR HOW WE WANT TO DEAL WITH THAT.
AND REBEL IS REVENUE STABILIZATION WILL BE ADJUSTED TO REMAIN AT 3% OF THE SUBSEQUENT USE BUDGET PER OUR POLICY.
UM, ANY QUESTIONS ON THAT MAYBE ON THOSE I DID BEFORE WE GO INTO THE RIGHT QUESTIONS OR THOUGHTS ON THE THIRD QUARTER BUDGET UPDATE? YES, SIR.
MR. SHERMAN, UM, THANK YOU FOR YOUR REPORT REGARDING THE SCHOOL'S TURN BACK.
IS THAT INCLUDED IN THAT THE FUNDS THAT YOU WERE TALKING ABOUT, OR IS IT TOO EARLY TO START TALKING ABOUT THAT AT THE POINT THAT A WEEK TWO, WE HAD THE CONVERSATION ABOUT IT.
I ALMOST PUT A NUMBER IN THERE ESTIMATING ABOUT 300,000 AND THEN, UM, MS. WHITE USUALLY FILLS ME IN A LITTLE CLOSER TO THE END OF THE YEAR AS TO WHAT THEY'RE ESTIMATING.
IT WILL BE IT'S A LITTLE TOO SOON RIGHT NOW.
YES, WE MADE OUR ESTIMATION, BUT YOU KNOW, WE INTENTIONALLY DON'T BUY LIKE BUSES AND UNTIL WE KNOW THE WORD SOLIDLY ENDING THE YEAR, SO WE'VE RELEASED SOME OF WHAT WE WOULD CONSIDER TURN BACK FOR SOME OF THOSE IN, YOU KNOW, FINAL EXPENSES.
SO CAN YOU CLARIFY, SO YOU SPENT THE MONEY.
I DON'T KNOW IF I UNDERSTOOD THAT THE TERM BACK, THAT STUFF, THE MONEY.
SO 300,000, WHAT BARBARA PUT IN IS AS A COMFORTABLE IT'S ABOUT A 1% OF OUR OPERATING BUDGET.
AND IF WE'RE A LITTLE BIT ABOVE THAT, THEN WE GO AHEAD THIS YEAR, WE ELIMINATED TWO BUSES IN OUR ROTATION CYCLE.
SO WE, WE FREED UP SOME MONEY TO, TO BUY A HUNDRED THOUSAND DOLLARS BUSES IN OTHER WORDS, UM, BECAUSE WE ARE TRYING TO, YOU KNOW, TURN BACK 300,000 APPROXIMATELY.
OTHER COMMENTS ON THE THIRD QUARTER PROJECTIONS PLAN ONE REAL QUICK ROBIN ON THE, UH, THE DEBT SERVICE.
WE SHOW THE PRINCIPAL AMOUNT OF 2.413, UH, IN THE FINAL BUDGET AS THE PRINCIPAL RETIREMENT.
UM, SO WE OVER BUDGETED WHAT OUR ACTUAL EXPENSES WOULD BE.
AND THEN THE PLAN IS TO PUT THIS MONEY INTO RESERVE FOR FUTURE DEBT SERVICE, SO THAT WE OVER BUDGET TRYING TO ACHIEVE THAT POINT WHERE WE'RE ABOUT $4 MILLION IN DEBT SERVICE PER YEAR.
UM, AND, AND THEN SET ASIDE THAT FOR FUTURE DEBT SURFACE.
SO THE PRINCIPAL AND INTEREST HERE COMES TO AROUND THREE, 2.7, 2.8.
SO WE'RE TRYING TO GET TO FOUR.
I THINK IT IS 3.8, OR I CAN'T REMEMBER EXACTLY HOW MUCH IT IS THEN, BUT WE WERE RAMPING IT UP SO THAT WE'RE AFTER FOUR.
GET IN FULL KNOWLEDGE THAT THAT NUMBER WILL BE A LITTLE BIT, MAY END UP BEING A LITTLE HIGHER DEPENDING ON THE OUTCOME HERE.
AND SO THE INTENTION WOULD BE THAT, AND I KNOW WE GO INTO RESERVES, BUT WE HAVEN'T MADE THAT PROPOSAL JUST RIGHT, RIGHT.
SEE HOW THE YEAR ENDS, BUT THAT'S GENERALLY WHAT WE'VE BEEN DOING.
UM, AND LAST YEAR WE ENDED THE YEAR WITH 2.8 MILLION ALREADY SET ASIDE FOR SCHOOL.
THAT WAS ONE QUESTION THEN THE OTHER ONE IS THE, I GUESS IT'S MORE OF A COMMENT, THE OPERATING, UH, OPERATING REVENUES AND OPERATING EXPENSES, JAMIE, UM, YOU KNOW, A SURPLUS, BUT THEN WHEN THE TRANSFERS CIP, WE ACTUALLY ENDED UP IN A DEFICIT SITUATION ALL IN CASHFLOW OF ABOUT EIGHT 70, EIGHT 80.
AND THEN RIGHT NOW IT'S COMING OUT OF FUND BALANCE, BUT AGAIN, WE WON'T TAKE THE ACTION ON THE FUND BALANCE TILL A YEAR RENT UNTIL WE FIND FOR THE ORDER.
AND THEN WE CAN BEGIN TO REVISIT WHETHER WE SHOULD SET ASIDE, YOU KNOW, DEAD RESERVES OR WRITE OR PUT ASIDE RESERVES.
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AND THEN JUST UNDER FINANCIAL POLICY COMPLIANCE, THIS IS JUST ADMINISTRATIVE WHERE WE, WE HAVE POLICY 10%, UM, YEAH.THAT THAT'S NOT NECESSARILY A TARGET.
THAT POLICY NUMBER IS REALLY A MAXIMUM, I, MAYBE WE CAN INDICATE THAT IT'S A POLICY MAXIMUM OR SOMETHING.
UM, SO IT'S NOT LIKE A TARGET THAT WE'RE TRYING TO GET TO IT'S WHEN THAT WOULD, RIGHT.
IN THE CASE OF THE FUND BALANCE, IT IS THERE WE HAVE TWO, TWO, TWO NUMBERS.
WE HAVE A TARGET NUMBER AND THEN WE HAVE A, A MAX, AS YOU SAY, SO MAYBE THAT TARGET ON A SIDE IS A MINIMUM PUT ASIDE.
SO PEOPLE WILL ACTUALLY HIT IT LIKE DIFFERENT IF WE'RE WELL UNDER, UH, ON THE DEBT SERVICE OR WELL, OVER ON THE RESERVES, IT'S NOT THAT WE'RE MISSING OUR TARGET.
SO IF WE COULD JUST PUT IT BACK TOWARDS A MINIMUM AND WE KNOW WHETHER WE'RE TRYING TO AVOID IT OR STAY AWAY FROM IT OR THAT KIND OF THING.
ANYTHING ELSE ON THE, UH, AGAIN, WE'RE GOING TO BE VERY EFFICIENT ON TIME HERE.
SO, UH, IF NOT, WE CAN CONTINUE ONTO THE NEXT ITEM ON THAT.
AND THE NEXT ITEM IS THE GENERATOR BRAND.
[IV. GENERATOR GRANT (pages 4-8)]
UM, WE CAME TO YOU COUPLE MONTHS AGO AND, AND LET YOU KNOW THAT WE WERE APPLYING FOR THIS, UM, GENERATOR RANT.AND, UM, IT'S THROUGH THE STATE, THE COMMONWEALTH EMERGENCY SHELTER UPGRADE SYSTEMS FUND.
THE PURPOSE PROVIDE MATCHING FUNDS TO VOCALITY IS TO INSTALL, MAINTAIN A REPAIR INFRASTRUCTURE RELATED TO BACKUP EMERGENCY GENERATION OR EMERGENCY SHELTERS.
SO, UM, IN OUR CURRENT COUNTY, WE ONLY HAVE THE SON OF THE HIGH SCHOOL WHO SOME HIGH SCHOOL AS A SHELTER.
SO THIS GRANT WAS APPLIED FOR, TO PROVIDE A GENERATOR FOR CENTRAL HIGH SCHOOL.
UM, THE TOTAL OF THE PROJECT SUBMITTED WAS 345,000 THE GRANT AWARD.
SO WHAT THE STATE WOULD PAY OF THAT THREE 45 IS 207,061.
AND THE LOCAL MATCH WOULD BE 138,040.
THE GENERATORS THAT WOULD INVOLVE NOT THAT I KNOW MUCH ABOUT GENERATORS, ONE LARGE GENERATOR THAT WOULD POWER THE GYM AND TWO SMALLER ONES THAT WOULD POWER THE WATER SYSTEM AND THE SEPTIC SYSTEM OUT THERE.
UM, IT WOULD TAKE A MINIMUM OF 20 TO 26 WEEKS TO COMPLETE THE, THE, UM, PROJECT MUST BE COMPLETED.
18 MONTHS FROM THE AWARD AWARD WAS APRIL 23RD.
SO SOMETIME TOWARDS THE END OF NEXT YEAR, THE PROJECT WOULD HAVE TO BE COMPLETED.
UM, I DID WANT TO MENTION THAT THE SH THERE ARE SHOWERS OUT THERE AT THE CENTRAL HIGH SCHOOL GYMNASIUM, HOWEVER, THEY HAVE NOT BEEN USED IN 30 YEARS, OR HOWEVER IT HAS BEEN SINCE, UM, CENTRAL WAS USED.
WE ARE LOOKING AT THOSE SHOWERS ARE NOT REQUIRED IN ORDER TO, UM, DEEM A BUILDING A JEW, A SHELTER THEY'RE NICE TO HAVE.
UM, BUT WE WILL LOOK AT THOSE AND HOPEFULLY WE CAN, UM, REFURBISH THOSE, UM, WITHIN THE SITE IMPROVEMENT BUDGET.
BUT, UM, THE, UM, THE GRANT WILL PAY FOR EVERYTHING EXCEPT MAINTENANCE ON THE GENERATOR AND FUEL FOR THE GENERATOR, UM, AS TO WHAT, WHAT COSTS ARE LEFT.
AND Y'ALL WOULD LIKE TO KNOW IF THERE'S A TAIL, WE, WE WOULD HAVE TO PAY REGULAR MAINTENANCE.
WE, WE DO THAT FOR ALL OUR GENERATORS, JUST TO MAKE SURE WHEN YOU GO TO TURN THEM ON THAT DAY, DID THEY ACTUALLY WORK? SO, UM, THE GRANT ITSELF WOULDN'T HAVE ANY STRINGS ATTACHED TO IT.
NO, THE GRANT, IN FACT, THEY JUST, THE IT'S DIFFERENT THAN A LOT OF GRANTS.
SO A LOT OF TIMES YOU HAVE TO SPEND THE MONEY AND, YOU KNOW, UM, NOW THEY JUST, THEY JUST, WE CERTIFY THAT WE WANT THE MONEY.
AND, UM, SO THE ACTION THAT WE WOULD ACTUALLY NEED TODAY, IF, UM, AFTER YOUR QUESTIONS IS FOR YOU TO RECOMMEND THAT THE BOARD APPROVE, UM, ACCEPT THE GRANT AND THEN APPROVE THE APPROPRIATION.
SO YOU'D BE APPROPRIATE IN THE GRANT FOR MORE REWARD AWARD, AS WELL AS THE LOCAL MATCH.
AND THAT MONEY WOULD COME FROM THE GENERAL FUND ASSIGNED FUND BALANCE, AND WE CREATE A PROJECT, UM, AND WE WOULD ACCEPT THE GRANT AND GET FACILITIES TO WORK ON.
UH, WE HAVE ONE QUOTE SO FAR WE WOULD GET ANOTHER POTE.
UM, BOTH OUR COMPANIES THAT WE ARE ON CONTRACT WITH THEM AS I READ THIS, THAT YOU'VE GOT 30 TO ASK FOR THE MONEY.
AND WE WERE NOTIFIED APRIL 23RD.
SO WE HAVE UNTIL MAY 23RD TO NOTIFY.
AND THAT'S WHY WE HAD TO KIND OF SLIP IT INTO
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THE AGENDA AT THE LAST MINUTE, BECAUSE, UM, WE ONLY FOUND OUT ABOUT IT, I BELIEVE, LAST FRIDAY OR SO.AND THEN YOU SAY IT WOULD COME OUT OF A SIGN MOUSE IS A SIGN ASSIGNED MONEY ALREADY.
AND SO WHEN I HAVE TO GET ABOUT A SIGN, CORRECT, IT WOULD COME OUT OF A SIGN WITH THE, THE AMOUNT THAT WE AS HAD ASSIGNED LAST YEAR FOR FUTURE CIP PROJECTS.
UM, QUESTIONS OR THOUGHTS ON WHAT WE'RE LOOKING AT HERE, THE GRANT FOR THE GENERATOR, FOR THE SHELTER? ANY QUESTIONS OR THOUGHTS? OKAY.
UM, YEAH, MR. YOUNG, WHEN WE WERE LOOKING AT THIS, WE WERE LOOKING AT A GRANT POTENTIALLY FOR CENTRAL AND FOR RANDOLPH, DID WE JUST APPLY FOR THE ONE OR IF WE APPLIED FOR BOTH OF THE GRANTS, THE STATE CAME BACK AND SAID, WE CAN ONLY SUBMIT FOR ONE.
AND SO WE SUBMITTED FOR CENTRAL CAUSE THAT HAD THE BEST CHANCE OF GETTING AWARDED AND THEN WITH A SHELTER THERE'S OTHER THINGS NEEDED LIKE COTS AND BLANKETS AND STUFF LIKE THAT.
WILL WE BE, IS THAT ALREADY IN PLACE OR WILL WE NEED TO ALLOCATE MORE FUNDS TO MAKE IT A USABLE SHELTER WITH THE GENERATOR STUFF? AND THAT'S A REALLY GOOD QUESTION.
AND KIMBERLY I KNOW IS ON THE PHONE AND I GUESS MIKE, I DON'T KNOW MUCH ABOUT SHELTERS AND I USUALLY DEFER TO, UM, KIMBERLY WOULD THE RED CROSS PROVIDE THOSE THINGS OR WOULD WE HAVE TO HAVE A SUPPLY OF COTS AND BLANKETS AND THINGS LIKE THAT FOR A SHELTER.
SO WE ALREADY HAVE SOME, AND WE KEEP THEM IN A TRAILER HERE IN THE COUNTY.
UM, IF THERE'S A NEED FOR MORE THAN WHAT WE HAVE, WE WOULD REQUEST THOSE FROM THE RED CROSS I EVERYONE.
AND THEN MR. PETERSON, I ALREADY ASKED HER ANY OTHER STRINGS ATTACHED EXCEPT FOR MY BUDDY TO THE WEST OF ME.
UM, IF THERE'S NO OTHER QUESTIONS JUST TO BE CLEAR, UM, THIS COMMITTEE CAN'T MAKE A DECISION, BUT IT CAN RECOMMEND, SHOULD RECOMMEND EITHER APPROVAL OR DENIAL.
AND IF YOU LOOK AT YOUR BOARD PACKET WHERE IT SAYS BOARD ACTION REQUESTED THAT'S ON PAGE FOUR, IT SAYS BOARD ACTUALLY REQUESTED THAT RE THAT THAT INDICATES TWO THINGS AMENDING THE CIP BUDGET, UH, TO ACCOMMODATE THE GRANT AND, AND THEN ALSO, UH, AND MANY OF THE CIP AS WELL.
HOWEVER, IF YOU GO TO THE NEXT PAGE FIVE IS THE SAMPLE EMOTION.
AS I, AS I UNDERSTAND IT RECOMMEND THAT WE ACCEPT THE GRANT MONEY, RECOMMEND THAT WE ADJUST THE BUDGET AND THE CIP TO REFLECT THE GRANT MONEY, AND THEN TO GO ON FURTHER INTO APPROPRIATE THOSE FUNDS, BOTH THE GRANT MONIES AND THE LOCAL MATCH.
IF WE GOT ALL THAT, THAT'S WHAT WE WOULD BE RECOMMENDING IF WE CHOOSE TO, TO THE FULL BOARD FOR, FOR ACTION.
THAT SAID, IF THERE'S NO OTHER QUESTIONS, I'LL GO AHEAD AND ENTERTAIN A MOTION TO THAT EFFECT.
UH, IT'S BEEN MOVED AND SECONDED THAT WE DO THOSE, THOSE THINGS.
AS I MENTIONED, THE, UH, EXCEPT THE GRANT MONEY, ADJUST THE BUDGET AND THE CIP, AND THEN ALSO APPROPRIATE THE GRANT MONIES AND THE, UH, LOCAL MATCH.
SO IF YOU'RE MOVING IN SECOND, ALL IN FAVOR, SIGNIFY BY SAYING AYE, AYE.
ANY OPPOSED? ANY ABSTENTIONS OKAY.
WAS UNANIMOUS THAT RECOMMENDATION.
WE WILL FORWARD TO THE FULL BOARD.
[V. REFERENDUM (pages 9-12)]
IS THE REFERENDUM, RIGHT? IT'S ALL LIKE, ARE YOU PREPARED TO, WANTS TO INCLUDE A MESSAGE REFERENDUM AS WELL? WOULD YOU LIKE TO DO THAT? THANK YOU.TODAY BEFORE YOU, UM, WE HAVE A RESOLUTION TO PETITION THE CIRCUIT COURT REQUESTING A REFERENDUM ON THE NOVEMBER BALLOT.
SO STARTING AT THE BEGINNING, WE HAVE A, UM, THE NEXT 10 YEARS OF RCIP HAS $168 MILLION IN PROJECTS THAT ARE FUNDED BY DEBT PROFFERS AND GENERAL FUND, UM, CASH.
WE ALSO HAVE 184 MILLION AND ROAD PROJECTS THAT ARE STATE AND FEDERAL FUNDS.
SO OF THOSE PROJECTS ARE FOUR LARGEST, UH, THAT PROPER OR CASH FUNDED PROJECTS ARE ELEMENTARY AND NEW CIRCUIT COURTHOUSE, UH, RENOVATIONS AND ADDITIONS TO VISHAL ELEMENTARY AND
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WEST CREEK FIRE STATION.SO HOW DO WE PAY FOR ALL THOSE PROJECTS? UM, WE ARE LOOKING AT SOME FINANCING AND, UM, WE, THE COUNTY HAS KIND OF PREPARED FOR THIS.
WELL, NOT KIND OF HAS PREPARED FOR THIS.
UM, WE HAVE PAID DOWN A LOT OF OUR DEBT.
WE'RE AT A POINT WHERE WE HAVE VERY LOW DEBT LEVEL.
UM, WE'VE EARNED TWO AAA CREDIT RATINGS.
SO WE'RE AT A POINT WHERE WE'RE READY TO CONSIDER FINANCING.
SO WHY DO YOU FINANCE PROJECTS? WHY THE LOCAL GOVERNMENTS FINANCE PROJECTS, UM, FOR THE SAME REASON, YOU DON'T WAIT UNTIL YOU SAVE ENOUGH CASH TO BUY A HOME.
YOU WANT TO SPREAD THAT COST OUT OF OUT OVER THE YEARS THAT YOU'RE ACTUALLY USING THE, UM, THE PROJECT OR CONSTRUCTION OR BUILDING OR, OR, UM, AND IT WOULD TAKE FOREVER OR A LONG TIME TO SAVE ENOUGH CASH SO THAT YOU HAD, YOU KNOW, $20 MILLION IN HAND TO START ON THE COURTHOUSE.
AND THEN YOU'D HAVE TO ASSUME YOU'RE GOING TO GET THE 20 MILLION MORE THE FOLLOWING YEAR.
SO, UM, AND WE'RE ALSO RUN A PARTICULARLY GOOD INTEREST RATE ENVIRONMENT.
SO THOSE, THOSE ARE THE DIFFERENT REASONS WHY WE ARE LOOKING AT FINANCING.
SO HOW DO WE WANT TO FINANCE THIS? WELL THERE'S DIFFERENT INSTRUMENTS MADE SPECIFICALLY FOR, UM, GOVERNMENTS.
AND, UM, THERE WAS SOMETHING CALLED GENERAL OBLIGATION BONDS.
THERE IS, UM, LEASE REVENUE BOMBS.
THERE IS PRIVATE BLANC PLACEMENT, UM, WHERE YOU BASICALLY GO TO THE BANK AND THEY MAKE YOU ALONE.
UM, AND THERE'S ALSO THE, ALL THE POOL DEBT VEHICLES, VRA UPSA, BUT THE GENERAL OBLIGATION BOND IS THE ONLY ONE THAT IS BACKED BY THE FULL FAITH AND CREDIT OF THE COUNTY.
SO BECAUSE OUR CREDIT IS VERY GOOD, IT'S THE LOWEST RISK OF ALL THOSE THEREFORE CARRIES THE LOWEST INTEREST RATE.
SO BASICALLY WE WANT TO BORROW THE MONEY IS IN AS INEXPENSIVELY A WAY AS POSSIBLE, BRINGS US TO THE REFERENCE.
SO WHAT'S A REFERENDUM THAT'S WHEN YOU BASICALLY ASK THE ELECTORATE A QUESTION FOR THEM TO MAKE THEIR DIRECT DECISION, WHY DO WE HAVE TO DO A REFERENDUM? BECAUSE THE STATE REQUIRES US TO, UM, IN ORDER TO ISSUE GENERAL OBLIGATION DEBT, IT'S SORT OF A QUIRK OF THE STATE BAR BECAUSE THEY DON'T REQUIRE CITIES TO DO IT, BUT THEY REQUIRE COUNTIES.
SO, UM, THE REFERENDUM ASK THE VOTERS IF THE COUNTY SHOULD ISSUE GENERAL OBLIGATION BONDS TO PROVIDE FUNDS SPECIFIC FOR SPECIFIC PROJECTS.
SO, SO YOU HAVE TO, YOU KNOW, BASICALLY TELL THE VOTERS WHAT YOU'RE GOING TO USE THE MONEY FOR, AND, AND YOU HAVE TO STICK TO THAT.
YOU CAN'T, UM, YOU CAN'T VARY.
UM, WHAT WE ARE ASKING TODAY IS FOR THE PASSING OF A RESOLUTION AND WHAT DOES THAT RESOLUTION DO? IT ASKS THE COURT TO PUT THESE QUESTIONS ON THE BALLOT AND YOU'LL SEE THERE'S A LOT MORE LEGAL, UM, VERBIAGE THAN WHAT I JUST SAID.
BUT, UM, THEY ASKED THEM TO SET A SPECIAL ELECTION DAY, WHICH WE SAY, PLEASE COORDINATE IT WITH THE GENERAL ELECTION DAY, BECAUSE THAT WOULD BE REALLY HANDY FOR THE, UM, UM, AND WE ASK THAT THEY, THAT YOU PUT THESE QUESTIONS ON THE BALLOT.
AND THOSE TWO QUESTIONS ASK IF THE COUNTY SHOULD ISSUE GENERAL OBLIGATION BONDS TO FUND THE SPECIFIED CAPITAL PROJECTS IN THE QUESTIONS.
THE FIRST QUESTION DEALS WITH PUBLIC SCHOOLS.
IT, UM, IT, IT BASICALLY SAYS SHELL, WE CONTRACT AND DEATH AND ISSUE GENERAL OBLIGATION BONDS IN THE MAXIMUM AMOUNT OF $60 MILLION.
AND THEN IT WAS SPECIFICALLY WHAT THAT MONEY WOULD BE SPENT ON THE CONSTRUCTION AND EQUIPPING OF A NEW ELEMENTARY SCHOOL AND IMPROVEMENTS TO MODERNIZE AND UPGRADE EXISTING MIDDLE AND HIGH SCHOOL FACILITIES AND IMPROVEMENTS TO ROADS AND EXISTING PARKING, LOTS TO IMPROVE TRAFFIC FLOW TO, AND FROM THE NEW ELEMENTARY SCHOOL AND EXISTING MIDDLE ONE HIGH SCHOOL.
THAT'S THE PUBLIC SCHOOL QUESTION.
THERE WAS A SECOND QUESTION AND THAT IS THE COUNTY PUBLIC SAFETY QUESTION.
UM, OR I SHOULD SAY COURTS SOME PUBLIC SAFETY QUESTIONS, SO STRUCTURED, VERY SIMILAR TO WHAT YOU SHOULD, THE
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COUNTY CONTRACT AND ISSUE GENERAL OBLIGATION DEBT IN THE AMOUNT OF $36 MILLION TO PROVIDE FUNDS FOR A COURTHOUSE, INCLUDING LAW ENFORCEMENT FACILITIES AND IF FIRE STATION IN THE COUNTY.SO THOSE ARE THE TWO, THOSE, THOSE QUESTIONS LINE OUT THE PRODUCT, THE LINEUP, THE PROJECTS FOR THE VOTERS, UM, AFTER THE RESOLUTION PASSES, UH, THE NEXT STEPS WOULD BE, WE WOULD GO, WELL, I WOULDN'T, BUT THE COUNTY ATTORNEY'S OFFICE WOULD GO TO THE CIRCUIT COURT JUDGE AND, UM, GET AN ORDER THAT WOULD OFFICIALLY PUT THAT QUESTION, THOSE TWO QUESTIONS ON THE BALLOT.
AND THEN THE COUNTY AND SCHOOL STAFF WOULD BEGIN WORKING ON AN EDUCATION EFFORT TO LET THE VOTERS KNOW, UM, WHAT IS COMING UP FOR THEM ON THE BALLOT, IF THE REFERENDUM PASSES.
UM, THEN AT THAT POINT WE WOULD THEN HAVE THE CITIZENS PERMISSION TO ISSUE GENERAL OBLIGATION BONDS SPECIFICALLY FOR THOSE PROJECTS.
BUT THAT WOULDN'T, WE WOULDN'T NECESSARILY GO OUT THE NEXT DAY AND DO THAT.
UM, WE WOULD WORK WITH THE COUNTY, UM, FINANCIAL ADVISOR, UM, AND STAFF.
AND WE WOULD FIGURE OUT THE TIMING, THE SIZE.
WE MAY NOT ISSUE ALL THIS DEBT AT ONE TIME.
IN FACT, WE PROBABLY INTEREST RATES WOULD BE TAKEN INTO CONSIDERATION, AND IT WOULD STILL BE BROUGHT BACK TO THE BOARD BECAUSE YOU WOULDN'T HAVE TO PASS A RESOLUTION IN ORDER TO ISSUE DEBT.
UM, AND ALL THE PROJECTS ARE REVIEWED ANNUALLY THROUGH THE CIP.
SO WE STILL GET TO LOOK, YOU KNOW, AT THOSE PROJECTS.
UM, AND, AND, YOU KNOW, YOU STILL GET AN OPPORTUNITY TO WEIGH IN ON ALL THOSE PROJECTS.
THE REFERENCE HIM JUST PASSING, JUST MERELY MEANS WE HAVE THE PERMISSION TO USE GENERAL OBLIGATION DEBT.
SO THAT WAS THE LAST I KNOW A YES.
AND SO QUESTIONS, FIRST OF ALL, THAT WAS A VERY GOOD OVERVIEW OF THE PROFILE PROCESS FROM BEGINNING TO END AND HOW WE GOT HERE.
I APPRECIATE THAT TO MAKE IT LOGICAL, BUT YOU ABSOLUTELY DID.
UM, THOUGHTS OR QUESTIONS ON THIS WHOLE PROCESS? SO AT SOME POINT THIS COMMITTEE WOULD BE ASKED TO ENTERTAIN WHETHER OR NOT WE WOULD RECOMMEND TO THE FULL BOARD, WHETHER THEY WOULD CONSIDER PASSING A RESOLUTION THAT WOULD PETITION THE COURT FOR PERMISSION TO PUT IT ON THE BALLOT, WHICH IF IT PASSES, THE CITIZENS WILL BE GIVEN US PERMISSION AND NOT A REQUIREMENT TO ISSUE DEBT AFTER WHICH WE WOULD PAY, GO BACK TO THE BOARD FOR RESOLUTION TO ACTUALLY ISSUE THE DEBT.
SO THIS IS A FAIRLY LONG INVOLVED PROCESS, BUT THIS IS REALLY THE FIRST STEP, UH, QUESTIONS OR THOUGHTS ON JUST MAYBE KIND OF WHAT'S YOUR CHAIRMAN.
SO I TRIED TO MAKE THINGS AS SIMPLISTIC AS POSSIBLE, JUST SO I CAN UNDERSTAND THEM.
AND SO IF I CAN THIS TO A HOME LOAN, THIS IS US GOING FOR PRE-APPROVAL.
IT DOESN'T MEAN WE HAVE TO SPEND THE MONEY, ALLOWS US TO GET THE BEST RATES.
IT GIVES US MORE NEGOTIATING POWER.
AND THEN WE CAN DECIDE IF WE NEED TO SPEND IT AT THAT, JUST BECAUSE I'M APPROVED FOR A HALF MILLION DOLLAR HOME DOESN'T MEAN I HAVE TO GO OUT AND BUY A HALF A MILLION DOLLAR HOME, BUT IT GETS US THAT INFORMATION.
SO THIS IS THE FIRST, THIS IS THE PRE-APPROVAL PROCESS FOR THAT.
WE'RE GETTING MOM AND DAD'S CITIZEN TO SIGN OFF ON.
THE NEGATIVE ANALOGY IS THAT BIG PART OF THIS IS SCHOOL SKILLS.
DID YOU HAVE ANYTHING TO ADD OR TAKE AWAY FROM, WHAT'S BEEN SAID SO FAR ABOUT THE RESOLUTION HARBOR HAS DONE AN EXCELLENT JOB.
YOU KNOW, WE, WE SUBMITTED, WE GOT OUR SCHOOL BOARD APPROVAL, UM, TO ASK YOU TO PUT IT ON FOR YOUR GROUP.
SO IT COMES TO US WHERE THE REQUEST AND APPROVAL FROM SCHOOL BOARD, THAT WE GO AHEAD AND RECOMMEND TO THE FULL BOARD.
NOW, THE SPILLS ARE AT YOUR MERCY PROBABLY EVENTUALLY WILL WELL, THIS MERCY OF THE CITIZENS AND WE ARE BLESSED.
SO, UM, IMPORTANT THING IS THAT THE NUMBERS ARE REAL.
UM, THEY'RE, THEY'RE FAIRLY WELL ESTIMATED THEY'RE NOT A FINANCE GUY, THINGS, UH, THEY'RE NOT OVERESTIMATED OR UNDERESTIMATED PRETTY MUCH WE'LL NOTE SCHOOLS AND THE COST.
WE'RE NOT THE RAT RACE, YOU KNOW, AT THE COURTHOUSE PROBABLY.
UM, AND THE OTHER THING IS THE LONGER WE WAIT, THE MORE EXPENSIVE IT BECOMES, UM, NOT ONLY FROM A COST STANDPOINT, CONSTRUCTION COSTS, UH, INTEREST RATES, AREN'T GOING ANY LOWER, LIKELY NOT GOING TO STAY WHERE THEY ARE.
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THE SOONER WE GET MOVING, THE LESS IT'S GOING TO COST US IN THE LONG RUN.SO YOU SAID SOMETIME IN THE NEAR FUTURE, IS THAT LIKE NEAR FUTURE IN OURS AND WE'RE GOING TO MAKE THE RECOMMENDATIONS OF WHAT IS CONSIDERED AT THIS MEETING WE'LL CONSIDER WHETHER OR NOT TO RECOMMEND APPROVAL APPROVAL IN THE FUTURE.
SO I'M VERY, VERY, YEAH, YES, YES.
DEPENDING ON HOW LENGTHY THE QUESTIONS AND ANSWERS ARE.
UM, YEAH, IF I, IF THERE'S NO OTHER QUESTIONS, THEN IF WE CAN, IF I COULD TAKE JUST A MOMENT OF EXECUTIVE PRIVILEGE HERE TO PUT THIS IN THE CONTEXT, THE BROADER CONTEXT OF GOOCHLAND COUNTY, LIKE, WHY ARE WE HERE NOW DOING THIS NOW? UM, PORTIONS OF THE SCHOOL INFRASTRUCTURE HAVE BEEN AGING AND ARE NOW CROSSING OVER THAT COSTS MORE TO MAINTAIN AND REPAIR THE WOOD GOING FORWARD.
UH, SO WE'VE GOT AGING INFRASTRUCTURE.
WE ALL KNOW THAT THE AGE OF THE THREE ELEMENTARY SCHOOLS, UH, WE, WE ALL KNOW WE'VE GOT AGING INFRASTRUCTURE.
WE'VE BEEN PAYING DOWN DEBT AS MS.
SO WE'VE PAID DOWN OUR DEBT, WE'VE GOT AGING INFRASTRUCTURE, WE'VE GOT A WINDOW OF OPPORTUNITY AND INTEREST RATE ENVIRONMENT.
AND THESE THINGS SEEM TO BE COMING TOGETHER TO SAY THIS, THIS WOULD BE INAPPROPRIATE TIME TO CONSIDER PULLING THE TRIGGER ON ADDRESSING THE AGING INFRASTRUCTURE REBORROWING DEBT, UM, IN AN INTEREST RATE ENVIRONMENT THAT'S FAVORABLE.
SO IT SEEMS LIKE THESE THINGS WERE COMING TOGETHER.
NOW WE'VE GOT A REPUTATION FOR BEING VERY FISCALLY RESPONSIBLE.
AND SO WE PUT THIS BEST RESOLUTION IN THE CONTEXT OF FISCAL RESPONSIBILITY, THE PROJECTIONS AND THE CONTEMPLATION AND THE FINANCIAL GOING FORWARD.
WE'RE NOT EXPECTING TO INCREASE THE TAX RATE AT ALL, EXPECTING TO INCREASE THE TAX RATE AT ALL.
AND WE'RE NOT EXPECTING TO DRAIN OUR RAINY DAY FUNDS OR OUR REVENUE STABILIZATION FUNDS IN OUR SIDE BALANCED.
SO WE'RE NOT DRAINING A RAINY DAY FUNDS THAT WE'RE NOT CONTEMPLATING AN INCREASE IN THE TAX RATE.
AGAIN, CONTEMPLATE, YOU NEVER KNOW WHAT'S GOING TO HAPPEN, BUT THERE'S NO PRESSING NEED TO DO EITHER ONE OF THOSE THINGS.
AND WE'RE BASICALLY, REBORROWING SOME OF THE DEBT WE'VE PAID PAID DOWN.
SO IT'S GOING TO TAKE US A LITTLE HIGHER THAN WE'VE BEEN IN THE PAST, BUT NOT MUCH IT'S THE IDEA IS THAT THIS COULD BE DONE IN A FISCALLY RESPONSIBLE MANNER WITHOUT DISTORTING AND DESTROYING THE, THE COUNTY'S FINANCIAL POSITION.
SO AGAIN, NO HISTORICAL CONTEXT THEN SUPERIMPOSE THAT ON OUR FISCAL RESPONSIBLE BEHAVIOR.
AND THIS IS CONSISTENT WITH ALL OF THAT.
SO, UM, BECAUSE I'VE SEEN A LOT OF OTHER JURISDICTIONS GET IN TROUBLE DOING THIS KIND OF THING.
UM, BUT THEY ARE NOT, WE'RE NOT IN THE ENVIABLE POSITION THAT WE ARE.
SO THAT'S JUST MY BIGGER COMMENTS.
ANY OTHER THOUGHTS OR COMMENTS ON THIS RESOLUTION? ALL RIGHT.
SO YOU'RE GOING TO HEARING NONE.
UH, AGAIN, IT'S JUST A RECOMMEND TO THE FULL BOARD, UM, THE, UH, THAT THE FULL BOARD APPROVED THE RESOLUTION THAT PETITIONS THE COURT.
SO, UH, AT THIS POINT I'LL ENTERTAIN A MOTION TO THAT EFFECT GERMANY.
WHEN WE MAKE A RECOMMENDATION TO MOVE FORWARD WITH A RESOLUTION THAT IS PRESENTED AS THE WORD OKAY, THEN RECOMMENDED APPROVAL.
UH, DO I HAVE A SECOND? THIS HAS BEEN MOVED AND SECONDED ALL IN FAVOR, SIGNIFY BY SAYING AYE.
ANY OPPOSED? ANY ABSTENTIONS THAT IS UNANIMOUS RECOMMENDATION FOR APPROVAL TO THE FULL BOARD? ALL RIGHT.
[VI. REVIEW OF FUND BALANCE CATEGORIES (pages 13-14)]
IS A REVIEW OF FUND BALANCE CATEGORIES.AND THIS IS FOUND ON PAGE 13 AND 14.
AND IN YOUR PACKET, THERE, THERE IS A COPY OF THE FUNDS MANAGEMENT POLICIES.
AND, UM, ALSO, WOULD YOU PASS THIS ALONG? THIS IS LAST YEAR'S, UH,
AND, UM, THAT SOMETIMES THE GENERAL FUND BALANCE IS JUST, UM, AND WE TALK ABOUT IT ALL THE TIME, BUT IT'S JUST, IT CAN BE A SOURCE OF CONFUSION.
AND I CAN TOTALLY UNDERSTAND THAT BECAUSE IT'S REALLY AN ACCOUNTING KIND OF PRINCIPLE, BUT IT'S VERY IMPORTANT TO OUR CREDIT RATING AND, AND, UM, OUR FINANCIAL SECURITY.
AND IT'S A MEASURE OF HOW HEALTHY WE ARE.
SO I JUST KIND OF WANTED TO GO OVER IT, UM, BRIEFLY, BUT BASICALLY WE HAVE FIVE CATEGORIES.
[00:35:01]
UM, THE ONE WE TALK ABOUT MOST OFTEN, I, WELL, YEAH, MOST OFTEN IS THE UNASSIGNED FUND BALANCE.JUST MEANING THAT, UM, IT HAS NOT BEEN IT'S AVAILABLE THERE FOR ANY PURPOSE THAT THE BOARD WANTS TO USE IT FOR ASSIGNMENT FOR AND SPEND IT ON.
SO IT'S AVAILABLE FOR ANY PURPOSE.
IT'S, UM, IT'S ALSO A MEASURE OF HOW MUCH YOU HAVE IN YOUR PIGGY BANK, SO TO SPEAK.
UM, AND, AND THAT YOU'RE AT THIS MOMENT NOT PLANNING TO USE.
SO WE ALL KNOW THAT OUR HEALTH IS DEPENDENT ON HOW MUCH MONEY WE HAVE SET ASIDE OUR FINANCIAL HEALTH FOR, UM, FOR RAINY DAYS FOR, YOU KNOW, THEY ALWAYS TELL YOU HAVE SIX MONTHS EMERGENCY MONEY OR ONE YEAR OR WHATEVER.
UM, ALL KINDS OF VARIATIONS ON THAT.
SO THAT IS SORT OF THAT IS THAT MONEY, THAT'S OUR EMERGENCY MONEY.
UM, THE NEXT CATEGORY THAT WE TALK ABOUT THE SECOND MOST PROBABLY IS A SIGN AND ASSIGNED, UM, IT'S INTENDED BY THE COUNTY FOR A SPECIFIC PURPOSE.
AND, UM, IT'S THE, THE BOARD CAN EXPRESS THE INTENT TO SIGN.
SO YOU'RE SAYING OF THAT MONEY THERE THAT YOU'D LIKE TO USE THIS MONEY.
UM, BUT YOU'RE NOT AT THAT POINT.
YOU'RE NOT, UM, COMMITTED TO IT.
YOU'RE JUST SAYING I HAVE A PLAN THAT, THAT MONEY COULD BE SET ASIDE FOR THIS.
UM, AS OPPOSED TO THE UNASSIGN, WHICH YOU REALLY DON'T HAVE A PLAN TO USE.
YOU'RE JUST SAVING THAT FOR YOUR, UM, FOR YOUR RAINY DAY FUND.
ALTHOUGH THAT'S CONFUSING BECAUSE WE DO HAVE ALSO A REVENUE STABILIZATION PATIENT AMOUNT, WHICH, UM, RISES TO THE LEVEL OF COMMITTED MEANS THAT WE CAN'T TAKE THAT MONEY IN AND OUT WITHOUT THE BOARD DECIDING TO PURPOSELY USE THAT MONEY.
AND WE SET THAT MONEY ASIDE FOR REVENUE STABILIZATION.
SO IN A YEAR THAT WHETHER IT WAS COVID OR, UH, THE Y WORLD'S ECONOMY OR WHATEVER, WE HAD A REAL, UH, DOWNFALL IN REVENUE, WE COULD USE THAT TO HELP STABILIZE AND THERE'S POLICIES SPILLED ALL AROUND HOW YOU CAN USE THAT.
I WON'T SPEND TOO MUCH TIME ON NON SPEND FULL UNRESTRICTED RESTRICTED, JUST TO SAY THAT THAT'S MONEY THAT THAT'S SORT OF YOUR, UM, YOUR NON SPENDABLE IS IT'S JUST YOUR ASSETS THAT ARE NOT CASH.
AND YOUR RESTRICTED IS MONEY YOU'VE GOTTEN IN FOR SAY A GRANT AND YOU CAN'T REALLY TOUCH IT.
SO, UM, SO HAVING SAID ALL THAT, UM, IF YOU LOOK AT LAST YEAR'S, I THINK MAYBE TRY TO READ, LET'S JUST ASSUME THAT FYI 21, WE EXEMPTED ENDED AT THE EXACT SAME PLACE.
SO TOTAL FUND BALANCE WAS 37, NINE 39, NINE 23.
SOME OF THIS ASSIGNED FUND BALANCE THAT YOU SEE WOULD ALREADY HAVE BEEN, UH, USED DURING THE COURSE OF THE YEAR.
UM, AND, UM, SO IT WOULD BE FREED UP IN A SENSE.
I KNOW I JUST SAID WE WOULD USE IT, BUT IF ALL THESE AMOUNTS SAVED THE SAME, UM, WE COULD, UM, FOR INSTANCE, WE SET ASIDE $2.3 MILLION FOR FY 21 CAPITAL PROJECTS.
WELL, WE DON'T HAVE TO DO THAT IN, IN FYI 21 FOR FY 22, WE HAVE TO SET A DIFFERENT AMOUNT ASIDE.
SO THAT SORT OF FREES THAT UP.
UM, THE SCHOOLS HAS ALREADY TURNED, YOU KNOW, WE'VE ALREADY GIVEN THEM BACK THEIR TURNED BACK MONEY.
SO IN A SENSE, IF THOSE SAME DOLLAR AMOUNTS ARE THERE, THAT FREES THAT UP, UM, THE, UM, CD SOFTWARE OF 50,000, WE ALREADY AS APPROPRIATED THAT TO THE CIP.
SO, SO EVEN IF WE'RE, WE HAVE THOSE DOLLARS ARE THE SAME, WE STILL HAVE ROOM TO ASSIGN, MAKE NEW ASSIGNMENTS.
UM, SO I THINK THAT'S WHERE SOMETIMES YOU GET CONFUSED AS TO, YOU KNOW, WHAT DO YOU MEAN WE CAN ASSIGN THIS MONEY? WE'VE ALREADY SPENT IT, YOU KNOW, BUT IT'S, IF THOSE DOLLARS STAY THE SAME, WE'VE GOTTEN NEW DOLLARS TO FILL THAT IN.
UM, SO, AND THAT IS THE PROCESS WE GO THROUGH AT THE END OF THE YEAR, WHEN WE BASICALLY SHOW YOU THIS SHEET, BUT UPDATED FOR NEXT FOR THIS YEAR
AND WE SAY, UM, THAT, WHAT, HOW DO YOU WANT TO ASSIGN THIS MONEY? AND THE BIG THING THAT'LL GO AWAY IS LIKE, FOR THIS ONE HAS 500,000 FOR THE FY 21 GENERAL FUND BUDGET.
[00:40:01]
SIGN FOR THE GENERAL FUND BUDGET FOR FY 22, BECAUSE WE HAVE BALANCED OUR BUDGET WITHOUT USING FUND BALANCE.SO, SO THAT FREES UP ANOTHER 500,000 THAT CAN BE ASSIGNED.
SO EVEN IF OUR FUND BALANCE STAYS EXACTLY THE SAME, WE STILL HAVE ROOM TO MAKE ASSIGNMENTS IN THERE.
AND, UM, I DON'T KNOW IF I'D CONVERT, FUSED YOU FURTHER OR NOT, BUT, UM, JUST, JUST TO REVIEW AND, YOU KNOW, NO ACTION NEEDS TO BE TAKEN.
AND MR. PETERSON, I WASN'T SURE IF YOU WANT US TO TALK AT ALL ABOUT THE POLICIES.
UM, FIRST, ANY QUESTIONS ON WHAT MS. ROCKER HAS COVERED SO FAR? IF NOT, I'LL SHARE SOME THOUGHTS ON THIS.
UM, WE DO HAVE TWO OF AAA'S, BUT WE DON'T HAVE A THIRD AND I'VE MADE TWO TRIPS TO NEW YORK TO GET THOSE TWO TRIPLE A'S.
AND ONE OF THE THINGS THAT THEY FOCUS ON IS WHAT I'LL CALL SHOCK ABSORBERS AND ASSISTANT SYSTEM, YOUR ABILITY TO YOUR ABILITY TO ACCOMMODATE THE UNEXPECTED AND WHAT THEY LOOK AT IS UNASSIGNED AND ASSIGNED AS ASSIGNED BY DEFINITION IS AVAILABLE FOR REASSIGNMENT.
IF SOMETHING COMES UP AND IF YOU ADD THE ASSIGNED AND UNASSIGNED TOGETHER, YOU COME UP WITH WHAT'S AVAILABLE TO BE SPENT.
SO THEY LOOK AT THE AVAILABLE RESERVES.
NOW THE CFO RECOMMENDS AT LEAST TWO MONTHS AND TWO MONTHS ON A PERCENTAGE BASIS OF THE YEAR.
IT'S ABOUT 15% MINIMUM THAT'S MINIMUM, IF YOU WANT TO RUN ANY COUNTY.
SO THAT'S, THAT'S THE LOWEST KIND OF CREDIT RATING.
SO WHEN YOU LOOK AT US, THEY LOOK AT OUR AVAILABLE RESOURCES IN RELATION TO OUR BUDGET AND AS A PERCENTAGE OF OUR BUDGET.
AND THEY SAY YOU'RE CLEARLY EXCEEDED THAT LEVEL.
AND BY, BY A FAIR AMOUNT, AND THAT IS ONE OF THE REASONS WHY WE ARE THE ONLY COUNTY IN THE COUNTRY, OUR SIZE TO BE GIVEN A AAA IS BECAUSE OF OUR RESERVES THAT WE HAVE TO PROTECT US OR BUFFET US FROM A, FROM A RAINY DAY.
AND SO THIS IS A CRITICAL PART.
SO WHEN WE TALK ABOUT A MAP, AMOUNTS MAY BECOME AVAILABLE FOR REASSIGNMENT BECAUSE THE SPECIFIC USE HAS PASSED.
UM, IF IT'S, IF IT'S DRAINED OR USED, EVEN THOUGH IT'S ASSIGNED, IT REDUCES OUR AVAILABLE.
SO THE, ONE OF THE THINGS, AGAIN, THAT THEY LOOK AT IS THE AVAILABLE.
SO IF YOU'RE SPENDING THE ASSIGN OR USING THE OTHER SIDE, THAT'S DRAINING YOUR RESERVES, THAT MEANS YOU HAVE LESS OF A SHOCK ABSORBER TO ACCOMMODATE SOMETHING THAT MIGHT COME UP.
YOU SAW THE EARTHQUAKE AND LOUISA RIGHT.
KNOCKED DOWN OR DESTROYED ONE OF THEIR SCHOOLS.
SO ALL OF A SUDDEN YOU'VE GOT 40 MILLION OR 50 MILLION THAT YOU'VE GOT TO COME UP WITH.
AND SO THOSE ARE THE KINDS OF THINGS.
SO IF I BACK UP JUST A SECOND, YOU'VE GOT THE OPERATING SIDE AND THEN THE CAPITAL SIDE AND THE OPERATING SIDE, WE BUDGET FAIRLY CONSERVATIVELY.
SO THERE'S THE FIRST PLACE WE GO.
IF THERE'S A REVENUE SHORTFALL, IS THAT CONSISTENTLY CONSERVATIVE BUDGETING, WHERE THERE'S SOME SURPLUS EACH YEAR.
AND THEY LOOKED AT OUR SURPLUS FOR THE LAST FIVE OR 10 YEARS AND SAW CONSISTENT SURPLUS.
AND THEY SAID, ARE YOU JUST CONSISTENTLY BAD AT PROJECTING YOUR REVENUES AND EXPENSES? AND WE SAID, NO, WE'RE CONSERVATIVE IN THE WAY WE APPROACH IT.
AND I SAID, GIVE ME AN EXAMPLE.
AND WE SAID, WELL, WE ASSUME THAT EVERY POSITION WILL BE FILLED ALL YEAR LONG.
AND THEN ALL OF THE SALARIES AND BONUSES WILL BE SPENT THAT WE ALL KNOW THIS ANY GIVEN MOMENT.
THERE'S SOME VACANCIES AND WE'RE OUT IN THE MARKET AND TRYING TO FILL THOSE VACANCIES.
WELL, THAT SALARY IS NOT BEING SPENT.
SO AT THE END OF THE YEAR, IF, IF WE DON'T COME IN WITH A UNSPENT AMOUNT ON OUR SALARY, THEN WE HAVEN'T BUDGETED PROPERLY.
SO THAT'S JUST AN EXAMPLE OF HOW EACH YEAR WE END.
AND IT WAS A CONSISTENT PERCENTAGE EACH YEAR AS WELL.
SO THEY TOOK AWAY FROM THAT, THAT WE DO CONSISTENTLY CONSERVATIVELY BUDGET.
SO THAT'S YOUR FIRST PLACE TO GO FOR A SHOCK ABSORBER IS, YOU KNOW, IF YOU, IF YOU FALL A LITTLE SHORT, YOU MAY END UP JUST HAVING A BALANCED BUDGET, RIGHT? SO THEY LIKED THAT IDEA.
THEN THE SECOND PLACE TO GO IS THE RESERVES.
IF THERE'S A REAL BIG SHORTFALL AND THE REVENUE STABILIZATION, THAT 3% IS THERE JUST FOR WHAT IT SAYS, A REVENUE STABILIZATION.
SO IF REVENUES DROP FAIRLY DRAMATICALLY, IT'S MEANT TO SMOOTH OUT YOUR REVENUES SO THAT YOU DON'T HAVE TO TAKE DRAMATIC ACTION.
IF IT'S A SMALLISH OPERATING TYPE PERCENTAGE, ONE OR 2% OF REVENUES, THAT'S WHAT THE 3% REVENUE STABILIZATION FORCE IS SMOOTH OUT THOSE REVENUES.
BUT IF IT'S A BIG THING, LIKE AN EARTHQUAKE AND KNOCKS A SCHOOL DOWN REVENUE STABILIZATION, THAT'S NOT GOING TO DO IT.
THAT'S WHERE THE UNASSIGNED AND AVAILABLE RESERVES ARE, ARE MEANT TO BE USED.
SO THERE'S YOUR KIND OF FIRST, SECOND, THIRD GO-TO.
AND THEN OF COURSE, THE NEXT GO-TO IS THEY LOOK AT ARE OUR TAX RATE AND SAID, YOU KNOW, YOU COULD RAISE YOUR TAX RATE BY 20%, STILL BE THE LOWEST IN THE REGION.
AND THEY SAID, WHY AREN'T YOU DOING THAT? AND WE SAID, WELL, LET'S GO BACK 10 STEPS, ONE, TWO, AND THREE, WE'VE GOT CONSERVATIVE BUDGETING.
[00:45:01]
NO NEED TO DO THAT.SO THAT'S HOW WE GOT TO THE AAA WAS ON EACH OF THOSE METRICS THAT THEY LOOKED AT BEFORE AND EXCEEDED OTHER COUNTIES OUR SIZE, AND THAT QUALIFIED US AS BEING THE ONLY COUNTY IN THE COUNTRY TO BE ABLE TO ACHIEVE THAT AAA THAT NO ONE ELSE WAS ABLE TO, ABLE TO GET TO.
SO I GIVE THAT AS ALL BACKGROUNDS, SO THAT AS WE LOOK AT THESE ASSIGNED AND UNASSIGNED, THAT THAT IS TAKEN IS TOTALITY AVAILABLE RESOURCES THAT THEY LOOK AT AS WE LOOK AT OUR TAX POLICY AND WHAT OUR RATE SHOULD BE.
THEY LOOK AT THAT RELATIVE TO THE REGION AND MEASURE OUR UNUSED DEBT CAPACITY OR TAX CAPACITY IS THAT UNUSED PARTS OF SHOCK ABSORBER AGAIN FOR THE SYSTEM.
SO THESE ARE THE THINGS THEY LOOK AT.
SO AS WE CONSIDER WHAT TO DO WITH THESE THINGS, UH, WHEN ASSIGNMENTS, YOU KNOW, ASSIGN AMOUNTS COME UP, OFTENTIMES THEY'LL BE ROLLED INTO TO ANOTHER PROJECT GOING FORWARD AS OPPOSED TO DRAINED AND SPENT OR MADE AVAILABLE FOR THE OPERATING SIDE OF THE BUDGET.
SO, ANY QUESTIONS ON ALL OF THAT? I THINK YOU DID A GOOD JOB.
IS THIS HELPFUL AT ALL, FOR PEOPLE TO UNDERSTAND WHAT BIG PICTURE WISE, WHAT WE'RE DOING HERE AND HOW WE GOT TO THE TRIPLE A AND, AND SO AGAIN, IF WE'RE GOING BACK UP FOR A THIRD TRIBE FOR THE THIRD, WE WANT TO MAKE SURE THAT WE HAVEN'T DETERIORATED OUR POSITION, AND WE STILL HAVE ALL THOSE SHOCK ABSORBERS IN THE SYSTEM.
NOW, AS OUR BUDGET GROWS, THOSE PERCENTAGES OF BUDGETS WILL NEED TO GROW AS WELL.
SO IN OTHER WORDS, WHEREVER REVENUE STABILIZATION AT 3% OF BUDGET, WHEN A BUDGET GOES UP, 6% OF THAT REVENUE AMOUNT, JUST A REVENUE STABILIZATION FUND AMOUNT NEEDS TO GO UP TO 6% TO KIND OF TRACK WITH IT.
SO IT MAINTAINS THE 3%, SAME THING WITH THE ASSIGNED AND UNASSIGNED OR MINIMUM FUND BALANCE WE HAVE AS A, AT LEAST 20% TARGET AT 25, 25% OF BUDGET IS GOING TO GO UP AS THE BUDGET GOES UP.
SO WE'LL NEED TO CONTINUE TO PUT MONEY IN THOSE RESERVES TO MAINTAIN THE SAME RELATIVE, UH, SHOTGUN, DOVER, AND ASSISTANCE, AS OPPOSED TO DRAINING THE MATERIALS.
I THINK I HAVE ADD ONE MORE THING THAT JUST THOUGHT OF, AND THAT IS THAT WHEN WE ASSIGN THOSE FUND BALANCES AND WHEN WE DO YOU USE THEM, WE WANT TO MATCH THE FACT THAT THEY'RE ONE-TIME MONEY, THAT'S OUR SAVINGS.
WE WANT TO MATCH THAT WITH OUR USES OF AT ONE TIME.
SO WE DON'T WANT TO FIND OURSELVES IN A SITUATION WHERE WE'RE OPERATING EXPENSES ARE BEING SUPPORTIVE BY FUND BALANCE, BECAUSE THOSE ARE GOING TO RECUR EVERY YEAR.
SO, UM, I THINK THAT'S WHEN YOU LOOK AT WHAT TO ASSIGN IT TO, I THINK THAT'S IMPORTANT TO LOOK AT AS WELL.
ONE TIME SOURCES MANAGEMENT USES AND RECURRING SOURCES RECURRING USES.
AND I THINK DEBBIE WAS ALLUDING TO THAT WHEN SHE SAID THAT WHEN THEY DO GET THAT TURNED BACK MONEY, THEY USE IT AS A ONE-TIME FOR ONE-TIME THINGS LIKE BUSES LET'S SEE ANY OTHER DISCUSSION OR COMMENTS ON OUR FUND BALANCE CATEGORIES OR OUR POLICIES.
YEAH, HE DID AN EXCELLENT JOB.
UH, THAT BRINGS US DOWN TO OTHER
[VII. OTHER BUSINESS]
BUSINESS.IS THERE ANY OTHER BUSINESS TO COME BEFORE THIS, UH, AUGUST COMMITTED? THE ONLY THING I WANTED TO MENTION, UM, IS THAT USUALLY WE FIND OURSELVES QUITE SHORT OF TIME TODAY AND WE DON'T, UM, THANKS TO MR. PETERSON'S.
UM, SO WE, UH, WE WERE PLANNING, UM, GOING FORWARD WOULD THAT WE WOULD MOVE THIS THE START OF THIS MEETING TO 1230.
UM, JUST TO GIVE US A LITTLE BIT MORE TIME, UM, BECAUSE USUALLY WE'RE REQUIRED, LIKE FOR INSTANCE, NEXT TIME, HOPEFULLY WE'LL HAVE THE AUDITOR HERE AND THAT USUALLY TAKES UP SOME TIME.
SO YEAH, I THINK WE HAVE FOUND OURSELVES A LITTLE BIT PRESSED FOR TIME, UH, WHEN WE'RE GOING THROUGH THE AUDITS AND, OR WE GOT THE REFERENDUM COMING UP TO MAYBE WANTING TO DISCUSS, UH, IF WE FIND THAT WE DON'T NEED THAT TIME, YOU KNOW, WE CAN ALWAYS ADJUST FIRE BACK.
UM, BUT THAT'S A CONSIDERATION IF THAT CREATES AN ISSUE FOR ANYONE, PLEASE LET US KNOW.
OTHERWISE WE, IF WE HAD AN EXTRA FIVE OR 10 BEFORE A BOARD MEETING THAT MIGHT BE HELPFUL FOR SOME OF THE BOARD MEMBERS TOO.
UM, I DON'T KNOW, BIG ITEMS ON OUR CIP, UM, OR BUILDING NEW SCHOOLS.
UM, I SAW THE COVER OF THE RTD.
UM, THE TITLE OF THE ARTICLE IS I'LL JUST READ THE FIRST SENTENCE, BUT THE TITLE IS RENOVATING SCHOOLS MAYBE POSSIBLE WITH THE USAID PACKAGE, VIRGINIA'S WAITING GUIDANCE.
UH, THE FIRST SENTENCE IS GOVERNOR RALPH NORTHAM IS AWAITING FEDERAL GUIDANCE ON WHETHER VIRGINIA CAN USE SOME OF THE ESTIMATED 6.8 BILLION THAT'S COMING TO VIRGINIA FROM THE AMERICAN RESCUE PLAN ACT.
HE'S WAITING FOR GUIDANCE TO MAKE A GENERATIONAL INVESTMENT IN RENOVATING
[00:50:01]
OR REPLACING PUBLIC SCHOOLS THAT HAVE BECOME OBSOLETE WITH AGE.SO 6.8 BILLION IS COMING TO VIRGINIA.
GOVERNOR NORTHAM IS GOING TO ALLOCATE THAT MONEY AND GIVE GUIDANCE ON HOW IT CAN BE USED BASED ON GUIDANCE FROM THE FEDERAL GOVERNMENT.
BUT IT SOUNDS LIKE A SIGNIFICANT PORTION OF 6.8 BILLION WILL BE AVAILABLE FOR BUILDING NEW SCHOOLS THAT HAVE AGED OUT.
AND I THINK WE PROBABLY HAVE THREE THAT ARE AT LEAST CONTENDERS, THAT KIND OF A SITUATION, UM, THAT MIGHT PLAY INTO HOW WE GO FORWARD WITH THIS REFERENDUM.
IT MIGHT NOT, I, I STILL THINK WE'D GO A PHONE GROUP WITH THE REFERENDUM AND NOT COUNT ON THOSE MONIES.
AND WE CAN ALWAYS CHANGE COURSE IF THE BAKERS, THIS IS JUST PERMISSION, NOT REQUIREMENT TO DO THIS.
UM, BUT THERE MAY OR MAY NOT BE SOME MONEY COMING FROM THE FEDERAL GOVERNMENT THROUGH THE STATE TO US FOR RENOVATING OR BUILDING NEW SCHOOLS.
UM, I DON'T KNOW WHAT OUR PORTION OF THAT 6.8 BILLION MIGHT BE, BUT IT'S, IT'S, IT'S OUT THERE.
WE SHOULD FOLLOW THAT, THAT ACT MONEY CLOSELY TO SEE IF WE'RE GOING TO BE ELIGIBLE FOR THAT.
UM, I'VE HEARD SIMILAR GO ON THROUGH THE ARTICLE.
IT MAKES SIMILAR COMMENTS ABOUT BROADBEAM BEING INFRASTRUCTURE AS WELL.
AND IN THE AMERICAN RESCUE PLAN ITSELF, THERE MIGHT BE MONIES FOR, FOR BROADBAND, BUT ALSO IN THIS INFRASTRUCTURE BILL THAT THEY'RE WORKING ON AS WELL, TRYING TO CUT THAT HASN'T PASSED YET IN THAT THEY'RE STILL WORKING ON A COMPROMISE IF THAT HAPPENS AND MAYBE MONEY FOR BROADBAND AS WELL.
AND I KNOW WE'VE GOT A LARGE NUMBER OF DOLLARS IN OUR CIP FOR BROADBAND AS WELL.
SO THESE ARE TWO BIG MEMBERS OF OUR CIP, WHERE THERE MAY BE FEDERAL OR STATE AID COMING OUR WAY THAT THAT MAY OR MAY NOT HELP OUT AND TAKE SOME OF THE PRESSURE OFF OF THIS.
MAYBE REDUCE THE AMOUNT WE HAVE TO BORROW OR, OR MAYBE BRING A SECOND SCHOOL FORWARD IN OUR CIP, OR WE JUST DON'T KNOW YET.
SO, BUT I JUST MENTIONED THAT LET'S FUNNEL THAT CLOSELY SO THAT WE, THERE WAS ALSO, UM, TALK OF, UM, UM, INCREASING BANK PLACEMENTS TO 30 MILLION, UM, DOING BUILD AMERICA BONDS AGAIN, WHICH, UM, WERE ACTUALLY VERY NICE UNTIL THEY SEQUESTERED THE MONEY, UM, THAT THEY S THAT THEY BASICALLY SUBSIDIZED BONDS.
AND, UM, AND THERE'S ALSO TALK OF REINSTATING THE, THEY CALL IT THE SALT DEDUCTION, THE STATE AND LOCAL TAX DEDUCTION.
AND WHAT WAS THE OTHER ONE? OH, WE CAN'T DO ADVANCED REFUNDINGS ANYMORE.
AND THEY'RE TALKING ABOUT REINSTATING THOSE.
SO THERE COULD BE SOME REALLY GOOD THINGS COMING DOWN THE ROAD FOR, UM, LOCAL GOVERNMENTS.
SO, AND I, I WOULD SAY THE, UM, THE USA AMERICAN RECORD PLAN IS PROBABLY GOING TO BE DIRECTED TOWARDS THOSE SCHOOLS THAT HAVE BEEN WAIT-LISTED ON THE LITERARY FUND MONEY.
THE STATE HAS NOT GIVEN CAPITAL MONEY FOR SCHOOLS AND A LONG TIME.
SO, UM, A LOT OF THOSE FUNDS WERE BASED ON INCOME LEVELS.
AND SO I W I DID NOT SEE THAT.
SO THANK YOU VERY MUCH FOR POINTING THAT OUT, BUT I WOULD SAY THAT AN EMPHASIS STRUCTURE PACKAGE ROLE DEFINITELY HAVE MONEY FOR SCHOOLS IN IT.
AND SO WHAT OTHER, YOU KNOW, HOW THEY'RE GOING TO ALLOCATE THAT? I WOULD SAY WE HAVE A BETTER CHANCE OF GETTING THAT FUNDING THAN WHAT'S COMING OUT OF THE USA.
OKAY, WELL, WE'LL HAVE TO WAIT AND SEE WHAT THE GUIDANCE IS ON, WHAT WE CAN USE IT FOR ARE GETTING GUIDANCE ALMOST DAILY ON DIFFERENT FUNDS THAT ARE AVAILABLE TO US.
WE ARE ACTIVELY ACTIVELY, UM, KEEPING UP WITH THAT, A LOT OF IMPLEMENT.
MAYBE, UH, AT FUTURE MEETINGS, WE GIVE A TWO MINUTE UPDATE ON WHERE THINGS STAND ON THOSE AS WE TRACK.
AND CAUSE THERE'S A LOT, A LOT OF BREAKING NEWS ON THAT AND THAT'D BE VERY HELPFUL.
SO, SO ONE OF THE THINGS IS, YOU KNOW, THE AMERICAN RESCUE PLAN, UM, HAS GIVEN US MONEY JUST LIKE THE, THE COUNTY.
AND, UM, WE HAVE NOW A COMMENT PERIOD WHERE WE HAVE TO, UM, LET PEOPLE KNOW HOW WE PLAN TO USE OUR 2.4 MILLION I'M WORKING ON GETTING ALL THAT.
UM, SO WE'RE BEGINNING THAT COMMENT.
WE HAVE A MULTI-YEAR PLAN IN PLACE AND, UM, JUST LIKE WE PRESENTED AT THE BUDGET MEETING WHERE, HOW WE'RE USING THE, WHAT WE CALL THE ANSWER TO THE DECEMBER ALLOTMENT.
AND SO NOW WE HAVE ASSESSED FOR THREE A LOT NOW.
SO WE'RE, WE'RE AGAIN, WE'VE GOT A MULTI-YEAR PLAN TO DO, PERHAPS YOU COULD SHARE WITH THAT AS WELL.
THE TWO TO TWO MATE, HOW ARE YOU GOING TO PLAN TO USE THAT? YOU COULD SHARE THAT WITH THE GROUP AS WELL.
AND ON OUR SIDE, I THINK IT'S LIKE 4 MILLION IN AMERICA.
WELL, WE HAVEN'T GOTTEN ANY OF IT.
WE HAVEN'T GOTTEN GUIDANCE ON IT YET, BUT THE TALK GUIDANCE YESTERDAY, THAT GUIDANCE ON WHAT WE HAD TO
[VIII. PUBLIC COMMENT]
DO, I WAS GOING TO OPEN UP THE CITIZEN COMMENT, BUT I THINK OUR CITIZEN, UH, WENT TO GET A GOOD SEAT BOARD MEETING.UM, ZOOM IS, IS THERE ANYBODY ON THE ZOOM THAT I WANT TO MAKE COMMENTS?
[00:55:01]
KIM WAS THE ONLY ONE.UM, THAT SAID, WE'VE GOT FIVE MINUTES LEFT.
[IX. ADJOURNMENT TO AUGUST 3, 2021]
GO AHEAD AND ADJOURN EARLY.UM, IF THERE'S NOTHING ELSE TO COME BEFORE THIS COMMITTEE, UH, I, I CALL THIS MEETING IS ADJOURNED AND WE WILL GET TOGETHER AGAIN.