[00:00:09]
[I.CALL TO ORDER]
STARTED.ALRIGHT, LET'S CALL THIS MEETING TO ORDER.
THIS MEETING IS THE, UH, BRUISING COUNTY BOARD OF SUPERVISORS, FINANCE AND AUDIT COMMITTEE MEETING NOVEMBER 23RD, 1230 PM ISH.
UH, WE'LL CALL THAT BEING AN ORDER.
FIRST ITEM ON THE AGENDA IS, UH, THE APPROVAL
[II.APPROVAL OF MINUTES FROM AUGUST 3, 2021 (PAGE 2-3)]
OF THE MINUTES FROM AUGUST 3RD, 2021 PAGES, TWO AND THREE OF YOUR PACKET.ARE THERE ANY ADDITIONS, DELETIONS, OR CORRECTIONS FOR THE MINUTES HEARING NONE.
I'LL ENTERTAIN A MOTION TO APPROVE THE MINUTES.
SECOND IT'S BEEN MOVED AND SECONDED ALL IN FAVOR, PLEASE SIGNIFY BY SAYING AYE.
OPPOSED ANY ABSTENTIONS FROM PEOPLE WITH MY EXECUTIVE? WE DO HAVE A FORUM.
WE HAVE ALL THE VOTING MEMBERS HERE.
SO THAT WAS UNANIMOUS VOTE IN FAVOR OF APPROVING THE MINUTES, THE NEXT ITEM ON THE AGENDA.
THIS IS WHAT WE'VE ALL BEEN WAITING FOR
[III.PRESENTATION OF THE FISCAL YEAR 2021 ANNUAL COMPREHENSIVE FINANCIAL REPORT BY THE COUNTY’S EXTERNAL AUDITORS, PBMARES]
FOR THE LAST 12 MONTHS.ANTICIPATION, UM, IS A PRESENTATION OF THE FISCAL YEAR OF 2021 ANNUAL COMPREHENSIVE FINANCIAL REPORT.
AND I CAN DO LIKE TO TAKE IT AWAY AND WALK US.
HAPPY TO APPRECIATE NOT EVERYBODY HAS THAT SET OF THE FINANCIALS.
WE HAVE SOME MORE BACK HERE IN THE BOX.
THESE ARE HOT OFF THE PRESS AS OF LAST NIGHT OR THIS MORNING.
I THINK, I THINK WE GET THESE BOUNDED AND PUT TOGETHER LAST EVENING.
SO, UM, WE DO HAVE THOSE FOR ANYBODY WHO WANTS TO FLIP THROUGH THE FINANCIALS.
I AM NOT GOING TO FLIP THROUGH THIS 175 PAGE DOCUMENT, UNLESS YOU WANT TO GO ALL THE WAY TO TWO O'CLOCK, BUT I AM GOING TO START AND GO THROUGH THIS HANDOUT.
EVERYBODY SAYS RESULTS OF THE AUDIT.
IF I HAVE EXTRAS HERE, IF YOU DO NOT HAVE ONE, I HAVE ONE OF THOSE AS WELL.
AND WE'LL PAGE ONE AND THE ENGAGEMENT TEAM THAT'LL HAVE ANY CHANGE AND FROM INFORMATION.
SO I THINK, I THINK LAST YEAR WE, WE DID THIS PRESENTATION THIS WAY AS WELL.
THERE'S JUST A BRIEF OVERVIEW HERE TO START OUT ABOUT PB MAYORS, BECAUSE NOT EVERYBODY KNOWS WHO WE ARE.
UM, THIS IS KIND OF THE PRESENTATION THAT WE'VE BEEN DOING FOR ALL OF OUR LOCAL GOVERNMENTS AND SOME OF OUR FOR-PROFIT ENTITIES AS WELL, BECAUSE NOT EVERYBODY ON THE BOARD KNOWS WHO PB MARES IS, EVEN THOUGH WE WOULD LIKE TO THINK YOU DO.
SO, JUST A BRIEF OVERVIEW OF WHO WE ARE.
OTHER ITEMS, OTHER SERVICES THAT WE RENDERED, UM, OTHER SERVICES WE PROVIDE THROUGH OTHER CLIENTS, MAYBE SOMEDAY YOU'D BE INTERESTED IN PB MAYOR'S CARES IS AS WE CONTINUE TO BE IN A SOCIETY THAT WANTS TO KNOW WHAT WE DO, AND WE DON'T JUST COME OUT AND AUDIT AND SEND YOU A BIG BILL.
WE VOLUNTEER AND DO THINGS LIKE THAT.
AND WE CLOSE OUR OFFICES DOWN ALL AROUND THE FIRM ON CERTAIN DAYS, GO OUT AND SPEND THE DAY VOLUNTEERING AND THINGS LIKE THAT.
AND PEOPLE ARE INTERESTED IN THAT.
SO THERE'S JUST A LITTLE VERBAL NET FOLLOWING THAT AS THE STATE AND LOCAL GOVERNMENT NICHE TEAM JUST TALKS A LITTLE BIT ABOUT OUR PUBLIC EXPERIENCE IN THE PUBLIC SECTOR, AUDIT EXPERIENCE.
YOU HAVE MY RESUME ON PAGE TWO, BETSY'S WRETCHED RESUME AS WELL.
AND THEN TOP OF PAGE THREE, ANDREA'S RESUME.
UH, THE THREE OF US HAVE BEEN ON THIS ENGAGEMENT SINCE THEY WON.
UM, I KNOW WE'VE HAD OTHERS UNDERNEATH ANDREA THAT HAVE COME THROUGH.
WE'VE HAD DIFFERENT STAFF AND SO FORTH, BUT YOU'VE HAD THE SAME THREE CORE INDIVIDUALS TO RUN THE AUDIT, UM, WHICH WE THINK IS, HAS CERTAINLY HELPED WITH EFFICIENCIES, KNOWING WHO TO GO TO, WHO TO ASK AND HOW TO GUIDE THE TEAM.
SO, UM, AND THIS JUST A LITTLE BIT MORE ABOUT US THAN JUST THAT WE SHOW UP HERE AND DO YOUR AUDIT A COUPLE OF WEEKS OUT OF THE YEAR.
UM, THEY'RE ON STAGE THREE, THEN THE OVERVIEW OF THE ANNUAL COMPREHENSIVE FINANCIAL REPORT OF, IF YOU HAVEN'T NOTICED THE WORDS ARE MOVED A LITTLE BIT, IT USED TO BE THE COMPREHENSIVE ANNUAL FINANCIAL REPORT.
UM, THEY HAVE DETERMINED THAT WE'RE SWITCHING THOSE WORDS AROUND, SO WE'RE NOT, UM, UPSETTING THOSE WHO THE WORD CAFFER HAS A NEGATIVE CONNOTATION IN ANOTHER COUNTRY.
THAT IS AN INSULT TO SAY THE WORD CATHOLIC.
SO WE ARE NOW THE ACT FOR WHICH I CAN'T GET USED TO SAYING.
SO I JUST SAY THE ANNUAL COMPREHENSIVE FINANCIAL.
SO THAT IS, THAT IS THE REASON FOR THE CHANGE.
[00:05:01]
INTO JUST DISCUSSING OUR AUDIT REPORT, UM, TO TALK AUDITOR'S RESPONSIBILITY, WE FOLLOWED THE YELLOW BOOK STANDARDS.WE FOLLOW WHAT THE AUDITOR OF PUBLIC ACCOUNTS PUTS OUT FOR US, UM, ABOUT AUTHORITIES, UH, COUNTIES, TOWNS, CITIES, UM, OUR OPINION RIGHT THERE IN THE MIDDLE OF THE PAGE THREES, WHAT YOU REALLY WANT TO LOAD NOTE, YOU GOT A CLEAN OPINION ON YOUR FINANCIAL STATEMENTS ONCE AGAIN, SO UNMODIFIED OR CLEAN OPINION.
UH, THEN WE JUST TALK ABOUT SOME OF THE OTHER SECTIONS IN THE ACT FOR THE STATISTICAL SECTION, THE INTRODUCTORY SECTION.
WE CERTAINLY READ THROUGH THEM, WE CHECK THEM, WE COMPARE THE NUMBERS, BUT WE DON'T ACTUALLY AUDIT THOSE, THOSE SECTIONS WITH THE FINANCIAL STATEMENTS ON PAGE FOUR AND, AND, AND REALLY PAGE FOUR AND FIVE.
UM, JUST TALK ABOUT THE FINANCIAL STATEMENTS A LITTLE BIT THEMSELVES, YOUR STATEMENT OF NET POSITION, UH, YOUR STATEMENT OF ACTIVITIES, WHERE YOUR REVENUE COMES FROM.
THERE'S A NICE LITTLE PIE CHART THERE ON PAGE FOUR WITH SOME ROUNDED, UM, AND PERCENTAGES IS OF COURSE YOU CAN SEE GENERAL PROPERTY TAXES MAKE UP 66% OF OUR REVENUES.
SO, UM, WITHOUT HAVING TO SIT DOWN AND DO THE MATH YOURSELF, THAT'S ALWAYS LIKES TO HAVE A PICTURE.
UM, AND I THINK WE ALL KNOW WHERE OUR MAIN DOLLARS COME FROM, BUT, UM, AGAIN, IT HELPS WITH THAT, MAYBE JUST ADDING THE PERCENTAGES, THINGS OF THAT NATURE, LOOKING ON PAGE FIVE, THIS TOP CHART AS YOUR GOVERNMENTAL ACTIVITIES, YOUR EXPENSES.
SO YOU CAN SEE THERE THAT THE LARGEST EXPENSE THAT, THAT WE HAVE IS 42% OF THE EXPENSES THAT THE COUNTY HAS IS FOR EDUCATION.
AND THEN SEVERAL OF THE OTHER LARGER ONES, PUBLIC WORKS, PUBLIC SAFETY, UM, IS 25% AS WELL.
SO LET'S SEE WHERE WE'RE SPENDING THE MAJORITY OF OUR FUNDS.
THEN THERE'S JUST A, A QUICK ONE THERE FOR THE SCHOOL BOARD, UM, CHARGES FOR SERVICES.
OBVIOUSLY WE DIDN'T GET ONE FOR EXPENSES BECAUSE IT'S ALMOST A HUNDRED PERCENT STUDENTS IN EDUCATION, THINGS OF THAT NATURE OR CAFETERIA BUS SERVICES, BUT ALL OF IT GOES INTO THE EDUCATION OF THE STUDENTS MOVING ON TO PAGE SIX, A THIRD OF THE WAY DOWN FROM THE TOP WHERE IT SAYS COMPLIANCE AGAIN, THERE ARE THERE OTHER REPORTS IN YOUR ACT FOR THAT WE HAVE ONE IS ON INTERNAL CONTROL AND COMPLIANCE.
THE SECOND ONE IS ON YOUR FEDERAL DOLLARS THAT YOU SPENT, BOTH OF THOSE REPORTS HAVE NO FINDINGS.
SO NOTHING ROSE TO THE LEVEL THAT WE THOUGHT WE NEEDED TO INCLUDE THERE.
SO THOSE REPORTS ARE ALSO WHAT I'VE CONSIDERED CLEAN, CLEAN REPORTS WITHIN COMPLIANCE AND INTERNAL CONTROL, OTHER OTHER SERVICES AND DELIVERABLES.
WE'RE NOT JUST AUDIT THIS DOCUMENT RIGHT HERE.
UM, WHAT WE'RE, WE'RE ASKED TO LOOK AT THE VIRGINIA RETIREMENT SYSTEM TO MAKE SURE THE INFORMATION THAT'S BEING FED TO THE STATE LEVEL TO CALCULATE FOR THE ACTUARIES IS ACCURATE.
WE HAVE TO DO, UH, WE DO THE COMPARATIVE COST REPORT, WHICH WE'RE STILL FINISHING.
THAT ALSO GOES TO THE STATE OF VIRGINIA AND THE AUDITOR OF PUBLIC ACCOUNTS.
UM, WE HAVE A REPORT ON THE LANDFILL SHERIFF'S INTERNAL CONTROLS, WHICH HAS FINISHED, UM, IN THE DATA COLLECTION FORM.
AGAIN, IT HAS TO DO WITH YOUR FEDERAL DOLLARS AND WE'LL FINISH THAT UP AFTER THE REPORT HAS BEEN FINALIZED AFTER IT'S BEEN APPROVED AND THEN MOVING INTO OUR REQUIRED COMMUNICATIONS THAT WE HAVE FOR YOU ALL AND OUR RESPONSIBILITIES.
AS FAR AS THE AUDIT, AGAIN, WE FOLLOW THE L AND D OFFICER OFFICE OF MANAGEMENT BUDGET AUDIT, AUDRA PUBLIC ACCOUNTS IN THE YELLOW BOOK FORMAT.
SO ALL THOSE DOSE DIFFERENT DOCUMENTS GUIDE US IN WHAT WE'RE SUPPOSED TO DO IN THE AUDITS.
UM, MOVING TO PAGE SEVEN, COUNTING POLICIES, NOTHING NEW THERE TO REPORT.
UM, THE SECOND HEADING ADOPTION OF CHANGE OF ACCOUNTING POLICIES.
SO WE DID IMPLEMENT AND ADOPT TWO NEW GASBY STATEMENTS THIS YEAR.
UH, NOT GASPING 90 HAD NO IMPACT ON YOUR FINANCIAL STATEMENTS.
WE HAD TO DO SOME ASSESSMENTS IF WE HAD ANY EQUITY, INTERESTS AND THINGS OF THAT NATURE, WHICH WE DON'T.
AND THEN YOU CAN SEE GATSBY 98, WHICH IS THE CHANGE OF THE WORDING FOR THE ANNUAL COMPREHENSIVE FINANCIAL.
AND WE ACTUALLY IMPLEMENTED THAT ONE EARLY.
THE STATEMENT ITSELF WAS JUST OFFICIALLY RELEASED LAST WEEK WE DID BEFORE, BUT WE KNEW IT WAS COMING.
SO THAT'S ONE OF THOSE THAT, YES, WE'RE GOING TO GO AHEAD AND IMPLEMENT EARLY, WILL MAKE EVERYBODY HAPPY.
SO WE'VE DONE THAT, UH, EXCUSE ME, SIGNIFICANT OR UNUSUAL TRANSACTIONS, NOTHING TO REPORT THERE.
UM, OBVIOUSLY WE, WE DO HAVE COVID MONEY AND THE THINGS WE GOT FROM THE FEDERAL GOVERNMENT, UM, WHICH, WHICH IS UNUSUAL IN THAT SENSE.
UM, BUT NOTHING WE REALLY NEEDED TO SPELL OUT HERE, CAUSE WE KNOW YOU'RE VERY AWARE OF THOSE DOLLARS AND HOW WE'RE USING THOSE, THOSE FUNDS.
THEY WERE PART OF OUR SINGLE AUDIT THIS YEAR.
THE MAJORITY OF OUR SINGLE AUDIT WORK WAS SPENT WHEN CARE'S ACTING CODING TYPE TRANSACTION.
SO AUDIT ADJUSTMENTS, THERE WERE NO MATERIAL AUDIT ADJUSTMENTS THAT WE THOUGHT WE NEEDED TO BRING TO YOUR ATTENTION.
THERE WERE NO UNCORRECTED MISSTATEMENTS.
THE PAGE ARE NO DISAGREEMENTS.
UM, REALLY NO SIGNIFICANT ISSUES THAT, THAT
[00:10:01]
WE HAD DISCUSSED WITH MANAGEMENT HAD TO COME TO A RESOLUTION.I'M SAT IN THE NORMAL REALM OF OUR AUDIT PROCEDURES.
UM, AND WE DID NOT HAVE ANY DIFFICULTIES ON THE FORM IN THE AUDIT.
UM, I BELIEVE WE WERE ON SITE FOR ALMOST ALL OF IT THIS YEAR, UM, WHICH WAS NICE.
IT ALWAYS MAKES THINGS GO EASIER WHEN WE CAN BE ON SITE.
I KNOW IT'S EASIER FOR THE STAFF THAN TO HAVE TO SCAN A WHOLE LOT OF STUFF AND DO THAT FOR US OR GRANT US ACCESS TO THE SYSTEM.
UM, SO WE DIDN'T DO THAT FOR ALL OF OUR CLIENTS.
WE STILL HAVE SEVERAL THAT, THAT DIDN'T WANT US ON SITE, BUT WE WEREN'T HERE SO EXTREMELY WELL.
UM, JUST QUICKLY FINISHING UP.
SO INDEPENDENCE AGAIN, IT'S I CAN'T DO ANY OF THIS.
I SHOULDN'T BE DOING ANY OF THIS IF I'M NOT INDEPENDENT.
UM, IT RENDERS THIS USELESS IF I'M NOT, UM, YOU'VE GOT TO FIND SOMEONE ELSE.
UH, THERE'S NOTHING TO MY KNOWLEDGE, THAT WOULD KEEP US FROM BEING INDEPENDENT TO COUNTY AND DOING THE WORK WE NEED TO DO.
UM, I'M GONNA KIND OF SKIP THE CLOSING CAUSE I WANT TO, I WANT TO GO TO THE NEXT PAGE FOR EXHIBIT A AND THEN AFTER EXHIBIT DAY, I'LL CLOSE.
BUT, UM, AS I'VE GONE OVER WITH YOU EACH YEAR, THERE ARE SOME ESTIMATES IN THE FINANCIAL STATEMENTS, UH, CAPITAL ASSETS AND THE LIVES OF THOSE CAPITAL ASSETS AND HOW MUCH DEPRECIATION OR AMORTIZATION WE SHOULD TAKE.
UM, WHILE WE FOLLOW INDUSTRY STANDARDS, IT'S STILL A GUESS.
SO SOME THINGS MAY NOT LAST AS LONG AS OTHERS, UM, ALLOWANCE FOR DOUBTFUL ACCOUNTS.
WE'D LIKE TO THINK ALL OF OUR RECEIVABLES ARE COLLECTIBLE, BUT WE KNOW THAT IT'S NOT ALWAYS THE CASE.
AND THEN PENSION LIABILITIES, OPEB, YOU KNOW, ALL OF THOSE SUPPLEMENTARY, UM, THINGS THAT WE HAVE AFTER WE'VE RETIRED, ACTUARIES DETERMINED AS MOUNTS AND NOT US.
UH, LASTLY, ON THIS PAGE, I SHOULD SAY, THERE, THERE ARE ACTUALLY DIFFERENT WAYS TO DETERMINE MARKET VALUE FOR INVESTMENTS.
UM, USUALLY THEY'RE VERY, VERY SMALL DIFFERENCES DEPENDING ON HOW YOU VALUE THOSE INVESTMENTS, BUT IT IS STILL AN ESTIMATE.
UM, AND SO WE'VE, WE POINT THAT OUT AND THEN LONG-TERM LIABILITIES.
WHEN WE'RE LOOKING AT LANDFILL CLOSURE AND POST CLOSURE COSTS, WE ALWAYS KNOW THAT THAT'S GOING TO BE AN ESTIMATE THAT, UH, EVEN THOUGH WE'VE GOT OUR CLOSURE GOING IN OUR 30 YEAR CAP AND ALL THAT WONDERFUL STUFF, UM, THEY CAN ALWAYS COME BACK TO CHANGE THOSE RULES AND HAVE MORE COSTS DOWN THE ROAD JUST TO WALK TO THE LANDFILL.
AND THEN FOLLOWING THAT IS OUR MANAGEMENT LETTER.
UM, AND IN THIS YEAR, THE ONLY ITEMS IN THE MANAGEMENT LETTER ARE NEW GASBY PRONOUNCEMENTS THAT ARE UPCOMING, THAT HAVE BEEN ISSUED, BUT WE HAVE NOT ADOPTED YET.
PROBABLY THE MOST SIGNIFICANT ONE WILL BE THE FIRST ONE UNDER GASBY 87, THAT DEALS WITH LEASES, WHICH WE'VE KNOWN AS COMING FOR QUITE SOME TIME.
AND THAT LEASES THAT'LL FORCE US TO CAPITALIZE OPERATING OF RELEASE FOR THE MOST PART.
YES, THERE MAY BE SOME SMALL ONES THAT, THAT WE DON'T.
UM, THERE COULD BE SOME LEASES THAT ARE LESS THAN A YEAR THAT WE WON'T HAVE TO CAPITALIZE, BUT FOR THE MOST PART, IF ANYTHING'S LONGER THAN A YEAR TO BE CAPITALIZED, THEY ALREADY HAVE WELL FASBI IS DOING THE SAME THING.
THEY IMPLEMENT DECEMBER 22, THE SAME THING, ALL LEASES.
SO THEY'RE THERE ANYBODY'S FISCAL YEAR AFTER THIS, DECEMBER 31ST WILL BE CAPITALIZED AND GOVERNMENT ASHLEY'S USUALLY PICKS UP AFTER FAST SPEED MAKES CHANGE.
SO THIS, I THINK MAYBE CAME ABOUT AT THE SAME TIME, BUT A LITTLE AFTER PRESENTATION.
UM, SO I, AND THEN BEHIND THAT, THE LAST THING EXHIBIT C IS JUST COPIES OF OUR ARRANGEMENT LETTER COPIES OF THE REPRESENTATION LETTER THAT WE ACQUIRE, UM, TO FINISH UP OUR AUDIT AND YOU CAN SEE THAT REPRESENTATION LETTER IS DATED NOVEMBER 16TH.
SO WE JUST FINISHED THEN A WEEK WE'LL FINALIZE ANY AUDIT.
SO SLIDING INTO THE, SO THIS IS DUE TO THE STATE BY THE RIVER.
YEAH, THEY, THEY THEY'VE EXTENDED THE DATE TO DECEMBER.
WHAT I THINK IT'S GOING TO BE DECEMBER 15TH FROM HERE ON OUT, UNLESS THEY CHANGE IT BACK.
SO IT'S DECEMBER 15TH AS WELL AS THE SYSTEM.
SO IF THEY OFFICIALLY CHANGE IT GOING FORWARD, WE MAY OR MAY NOT HAVE TO HAVE SPECIAL, RIGHT.
PROBABLY WON'T HAVE TO HAPPEN AT THIS TIME ANYMORE.
SO THE PLAN IS TO GET THIS TO THE STATE, GO TO THE ORIGINAL GUIDELINES BEFORE THE 15TH OF DECEMBER, DOESN'T MATTER, IT'S ALL UP TO YOU ALL.
UM, SO THE TWO ITEMS THAT ARE DUE ARE THIS REPORT AND THEN THE, WHAT WE CALL A COST REPORT THAT GOES TO THE API, WHICH WE JUST, I JUST GOT THAT AND JUST GOT BACK THIS MORNING TO START OUR BEDTIME.
BUT OUR GOAL WAS TO STILL HAVE IT DONE, JUST
[00:15:01]
GET THEM DONE AND GET IT DONE AGAIN TODAY.IT WILL, IT WILL NOT BE CONSIDERED LATE, RIGHT? MAYBE NEW TO THE COMMITTEE.
UM, THESE ACARS IS THAT THE FINANCIAL REPORT, THAT'S WHERE HE'S DUE TO STATE BY NOVEMBER 30TH.
UM, AND THAT LEFT US WITH THE BEGINNING OF NOVEMBER BOARD MEETING OR AT THE BEGINNING OF THE DECEMBER BOARD MEETING.
AND THE SAME BEGINNING OF DECEMBER BOARD MEETING WAS AFTER THE FACT IN WHICH I GUESS A LOT OF COUNTIES WOULD WAIT UNTIL THEIR NEXT BOARD MEETING.
WE DIDN'T WANT TO BE ONE OF THOSE THAT GETS AN ASTERISK OR WHATNOT.
AND THEN WE ASKED OTHERS, WHAT CAN YOU GET DONE IN OCTOBER? AND THEY SAID, WELL, NOT REALLY.
SO WE SAID, IF YOU CAN'T GET IT DONE BEFORE THE NOVEMBER BOARD MEETING AND THE DECEMBER IS TOO LATE, THAT NEED TO CALL THE SPECIAL TO AVOID THE ASTROS OF THE TARGET'S SMITTY PLATE BY THE SAMSUNG, IF THEY EXTENDED THIS YEAR BECAUSE OF THE PANDEMIC AND THEN GOING FORWARD SIDE, THAT'S A GOOD IDEA FOR THE AUDITORS AND EVERYBODY ELSE, ALL THE OTHER COUNTIES, IT MAKES SENSE TO DO IT MID DECEMBER.
SO IF THAT'S THE CASE GOING FORWARD, WE MAY OR MAY NOT NEED THIS NEW MEDIUM STILL AVOID THE ASTERISK.
WE'LL JUST HAVE TO LOOK AT THAT EACH YEAR.
WELL, AND I THINK IT USED TO BE MOST, MOST LOCALITIES.
YOU GOT YOUR COST REPORT IN BY NOVEMBER 30, BUT WE COULD STILL PRESENT THIS IN DECEMBER AND THEN SUBMIT IT AFTERWARDS.
AND THEN THEY STARTED GOING, WELL, YOU DON'T HAVE THIS TO US BY NOVEMBER 30.
NOW WE'RE GOING TO CONSIDER YOU LATE.
AND IF YOU DON'T DO THAT, WE NEED YOUR CHIEF EXECUTIVE OFFICER TO WRITE A LETTER STATING WHY YOU'RE LATE.
AND IT JUST KIND OF KEPT PILING ON AND PILING ON.
SO WE SAID, YOU KNOW WHAT, WE'RE JUST GOING TO GET DONE.
WE'RE JUST GOING TO GET IT DONE AND GET IT DOWN.
HE HAS ALL DAY AND HE'S BROKEN.
FIRST OF ALL, LET ME JUST SAY THANK YOU FOR THIS.
UH, WE DID A FANTASTIC WORK AND UM, YOU MENTIONED THAT YOU GUYS GO ABOVE AND BEYOND TO HELP OUT THE ONSITE.
I HOPE OUR FOLKS DID OVERWHELM ME WITH QUESTIONS THIS YEAR, BUT THE BOARD HAS BEEN ENCOURAGING OUR FINANCIAL STAFF TO MAKE SURE THAT EVERY STEP OF THE WAY WE COMPLY WITH THESE BRANCH PROGRAMS SHIFTING RESTRICTIONS, AND WE MUST PUSH, ENCOURAGE THEM TO MAKE SURE WE WERE.
AND THEN OF COURSE, THEY LOOK TO YOU FOR SOME OF THAT GUIDANCE.
INTERPRETATION IS BEING ASSURED BY THE GUIDANCE THROUGH THIS.
SO I HOPE THEY DIDN'T OVERWHELM YOUR OFFICE, BUT IF THEY WEREN'T ASKING THEM, SOMEONE ELSE WAS, AND WE NEEDED TO ANSWER EVERY MONTH.
SO NOT A PROBLEM, NOT AN ISSUE.
AND I KNOW OUR FOLKS APPRECIATE IT.
FEEL FREE TO GIVE YOU A CALL AND BOUNCE IDEAS.
WELL, IT MAKES THE AUDIT PROCESS GO A LOT SMOOTHER WHEN YOU ASK QUESTIONS THROUGHOUT THE YEAR, VERSUS WHEN WE SHOW UP THE WEEK OF, AND THEN THERE'S EITHER A LIST OF QUESTIONS OR A LIST OF FINDINGS, BUT WE'D PREFER NOT TO HAVE EITHER.
WHEN WE SHOW UP TO DO THE AUDIT WORK AGAIN, A LOT OF COUNTIES WITH A HOTTER SHOP THEY GOT, WHEN YOU GUYS SHOW UP, THERE'S OUR FRIENDS THAT CAN HELP TEACHERS BETTER.
WHEN WE DO, WHEN WE GO TO CITIZENS AND SAY, WE'RE FROM THE GOVERNMENT, WE'RE HERE TO HELP THEY GO, OH, BUT WE DO GENUINELY TRY TO HELP.
SAME THING HERE WITH YOU, YOU AS A PARTNER IN THIS PROCESS TO HELP US LEARN AND GET BETTER, HELP US ALWAYS WALK ALONG THE SIDE.
APPRECIATE YOU PICK UP THE PHONE WHEN WE CALL THAT SAID THAT QUESTION BEFORE ORDERING ON THE AUDIT.
THANKS SO MUCH FOR YOUR PRESENTATION.
UM, WHEN WE KICK THIS OFF, I ASKED THE QUESTION, UH, CLARIFYING, YOU KNOW, WHEN, WHEN YOU GO THROUGH AN AUDIT, WE TEST AGAINST THE CONTROLS THAT WE HAVE AND WHEN YOU CAN SHOW THAT THOSE CONTROLS ARE FUNCTIONING APPROPRIATELY, AND THAT, UM, ONE OF THE THINGS THAT YOU DO IS ALSO HELP IDENTIFY IF THERE ARE GAPS IN THE CONTROLS THAT WE HAVE.
SO I'M ASSUMING BY WHAT I'M SEEING, THAT THE ANSWER FOR THIS IS FAVORABLE, BUT, BUT YOU FOUND NO.
SO WHILE OUR CONTROLS ARE WORKING AND YOU'RE WORKING, BUT YOU ALSO FOUND THAT OUR CONTROLS ARE ADEQUATE FOR OUR PROCESSES.
I WILL SAY THAT OUR AUDITING, THE ANSWER TO THAT QUESTION IS YES.
UM, WE, WE, WE DO A RISK-BASED ASSESSMENT OF WHICH ACCOUNTS, WHICH BALANCES, WHICH TYPES OF TRANSACTIONS ON THE TEST.
SO, UH, WE DON'T NECESSARILY IDENTIFY EVERY CONTROL YOU HAVE IN FINANCIAL PROCESS AS A SIGNIFICANT CONTROL.
SO WE DON'T TEST THEM ALL, BUT ANYTHING THAT MAKES US GET NUMBERS TO THIS DOCUMENT TO MAKE SURE THAT WE'RE COMFORTABLE, THAT THIS IS MATERIALLY, CORRECT.
[00:20:01]
MAYBE ISN'T COMPLETELY ADEQUATE, BUT WE HAVE SOME OTHER CONTROLS ON THE BACK END.UM, WE, WE WILL CONSIDER THOSE THINGS AS WELL AND TO MAKE SURE THAT, OKAY, YES, WE'RE STILL COMFORTABLE WITH THIS NUMBER.
UM, IF THERE WAS AN ERROR, IT WOULD BE CAUGHT IN A SHORT AMOUNT OF TIME.
THANK YOU SO MUCH AGAIN, WE'VE BEEN SOME SOCIAL SERVICES FOLKS HERE AND, UH, SIGMA, YOU HAVE SOME OTHER COMMITMENTS TO GET OFF.
JUST ADDRESS ANY ISSUES ON THAT SIDE FIRST.
AND IF YOU NEED TO MOVE ON IN THE PAST, THERE'S BEEN SOME ISSUES ON THAT SIDE, BUT THIS TIME WE HAVEN'T HAD ANY FOR SEVERAL YEARS NOW, TWO OR THREE YEARS.
THANK YOU GUYS FOR DOING THAT AND WORKING THROUGH, I JUST HAD SOME CHALLENGES.
THAT'S JUST FANTASTIC TO HEAR THAT.
THEN WE CAN PUT THAT IN THE DISTANT PAST NOW YEARS AGO.
UM, BUT DID YOU HAVE ANY QUESTIONS OR WHEN YOU'RE HERE? UM, ANOTHER AREA THAT'S COME UP IN THE PAST IS CYBERSECURITY.
UH, I THINK YOU MENTIONED THE APACHE, DOES THAT KIND OF THING.
DID YOU SEE ANY ISSUES, CONCERNS ON CYBER FROM NO.
UM, NONE THAT, NONE THAT FLOAT, OBVIOUSLY IF WE HAD ANY ISSUES, THEY WOULD HAVE BEEN THEIR BUYER.
SO THEY WOULD, THEY WOULD BE SPELLED OUT HERE AT BARBARA.
I DON'T KNOW IF ANYBODY POINTED ANYTHING OUT TO YOU ALL, EVEN ANY MINOR THINGS THAT MAYBE WE JUST COMMUNICATED VERBALLY THAT I CAN'T THINK OF ANY, IT'S ALWAYS POSSIBLE THAT THERE WERE SOME THINGS THAT, YOU KNOW, MAYBE LOOK AT THIS OR SOMETHING LIKE THAT, BUT NOTHING THAT WAS A QUESTION OF MINE.
ALSO, YOU INDICATE THAT YOU DO CYBER SECURITY SERVICES.
WHAT IS THE EXTENT OF THOSE SERVICES? WELL, SO OUR, OUR CYBER SECURITY TEAM, UM, WE HAVE SPECIALISTS WITHIN THE FIRM CAN DO THEIR OWN AUDIT, THEIR OWN DOCUMENTATION.
I MEAN, ELLEN CONSULTING WITH, WITH ANY OF OUR CLIENTS WHEN WE ASK THEM TO COME IN FOR THE COUNTY.
UM, IT IS USUALLY JUST TO LOOK AT CONTROLS ON THE FINANCIAL PROCESSES.
SO THEY'RE, THEY'RE LOOKING AT PHYSICAL CONTROLS, THEY'RE LOOKING AT ACCESS CONTROLS, THEY'RE LOOKING AT TO MAKE SURE YOU KNOW, INFORMATION IN AND INFORMATION OUT IS THE SAME AND, AND IS, AND IS ACCURATE IF THERE'S PROBLEMS IN BETWEEN.
UM, OUTSIDE OF THAT, THEY'RE NOT, THEY'RE NOT DOING THINGS LIKE PENETRATION TESTING OR, OR ANYTHING THAT IS OUTSIDE THE REALM ON THE FINANCIAL AUDITS THAT WE CAN DO THOSE TYPES OF THINGS, BUT THAT WOULD JUST BE VERY DIFFERENT.
YOU DO PROVIDE, BUT EVERYTHING FROM CYBER STANDPOINT EVERY YEAR.
EVERYTHING THAT WE'VE LOOKED AT.
JUST ANOTHER QUICK QUESTION ON THE, UH, RETIREMENT, THE RETIREMENT PLAN.
CONSTANTLY HERE, THE STATUS BEHIND, UM, WE ARE NOT FOR OUR CONTRIBUTION OR ARE, ARE WE BEHIND? AND THEN SO, OH, YOU'RE GOING TO LOOK A LITTLE BACK IN, THEY'LL LET YOU FINISH IT OFF.
BUT, UM, AS YOU KNOW, FOR THE STATE DETERMINES THE BENEFITS AND THEN THEY DETERMINE THE CONTRIBUTION AND THERE'S SOME MATCHING AND SOME CONTRIBUTIONS THAT THEY SEEK TO MINIMIZE AS A CONSEQUENCE, THERE HAD BEEN A FAIRLY SIZABLE UNDERFUNDING AT THE STATE LEVEL AND THE VRS, THE VARIOUS DIFFERENT PENSIONS AND EVEN THE OPEN AND, AND THAT USED TO RESIDE THE BLOG, RIGHT.
THAT USED TO RESIDE AT THE STATE LEVEL SINCE THEY DETERMINED THE PLAN.
AND IT DETERMINED THE FUNDING, ANY SHORTFALL IS THEIRS.
AND THEN JUST A COUPLE OF YEARS AGO, YES, THEY DECIDED, WELL, THOSE OBLIGATIONS ARE BEING INCURRED BY TEACHERS AND STAFF OUT IN THE COUNTIES.
SO LET'S CARVE IT UP PRO RATA, SEND THAT DOWN.
AND SO WE ENDED UP WITH, ON OUR BALANCE SHEET RUNNER STATEMENT, THE CAPITALIZED VALUE OF OUR PRO RATA SHARE OF THAT UNDERFUNDING.
IT WAS KIND OF DICTATED FROM ABOVE AND IN SOME RESPECTS, IT'S NOT EXACTLY FAIR IF WE'RE NOT THE ONES LEGISLATIVE THAT SHORTFALL THAT IT SHOULD SHOW UP ON OUR BOOKS, BUT THAT'S JUST THE WAY IT WORKS.
AND NOW A HUNDRED PERCENT ON THAT.
[00:25:01]
PRETTY GOOD, PRETTY GOOD MATERIALLY, CORRECT MATERIALLY, CORRECT? NO, YOU'RE FINE.I'M TRYING TO POINT FINGERS IN ANY WAY HERE.
AND THEN A PERSON VRS, UH, PORTFOLIO HAS DONE VERY WELL IN THE LAST YEAR OR TWO, ALONG WITH THE MARKETS CLOSED.
MY QUESTION TO YOU, AND I'M JUST GOING TO BE CLOSING IN UNDER FUNDING AT THE STATE LEVEL IS OUR PRO RATA SHARE OF THAT UNDERFUNDING COLLAPSING AS WELL, OVERALL 1 0 9.
AND THAT'S WHY I WANT TO TAKE THEM.
SO IF YOU'VE GOT YOUR READERS ON AND YOU CAN SEE THESE TINY NUMBERS PAGES 1 0 9, 1 10 AND ONE 11, UM, AND, AND, AND THE ACT FOR, AND OUR FINANCIAL REPORT.
SO IF WE'RE A PAGES 1 0 9 1 10, 1 11, SO YOU HAVE THREE DIFFERENT VIRGINIA RETIREMENT SYSTEM, THE PENSION PLANS IN THE COUNTY, AND ON PAGE ONE, PAGE 1 0 9 AMG, YOU LOOK TO THE FAR RIGHT.
THAT'S OUR MOST RECENT COLUMN IS 2020.
SO THE FIRST THING I'LL POINT OUT IS THIS IS ALWAYS A YEAR BEHIND.
SO THIS IS JUNE 30 OF LAST OF LAST YEAR BECAUSE IT TAKES THEM AND PLAY INTO THIS AS IT TAKES A YEAR, 15 MONTHS JUST TO DO THE CALCULATIONS IN THE AUDIT.
SO WE'RE ALWAYS A YEAR BEHIND THE INFORMATION.
I'M JUST GOING TO DROP DOWN TO THE VERY BOTTOM OF IT.
UM, THE LAST DOUBLE UNDERLINE SHOWS, THIS IS JUST FOR THE COUNTY SIDE.
OUR PENSION LIABILITY IS 4 MILLION, $360,000.
IT'S THE LAST DOUBLE UNDERLINE IN THE RIGHT COLUMN.
SO ABOUT 4.3 LATE ADD THAT IS THE COUNTY'S PORTION OF THIS LIABILITY, AND THAT ISN'T DONE AT A LARGE POOL BASIS.
THE COUNTY'S OWN PLANT IS JUST THEIR LIABILITY.
SO THIS, THIS ONE ISN'T DONE IN A GREAT BIG POOL.
THIS IS BECAUSE COUNTY RIGHT NEXT DOOR COULD BE MUCH DIFFERENT THAN YOUR OWN SO THAT WHEN YOU LOOK AT THEIR PERCENTAGE, THE VERY NEXT PERCENTAGE IS, UM, PLANNED FIDUCIARY NET POSITION AS A PERCENTAGE OF OUR TOTAL LIABILITY.
SO YOU'RE AT ALMOST 90% FUNDED.
SO YOUR PLAN HAS A TOTAL LIABILITY OF 36 MILLION OF 41 MILLION.
YOU HAVE $36 MILLION, APPROXIMATELY ALMOST 37, SAY YOU'VE ALMOST 90% FUNDED YOUR PLANS FOR THE COUNTY.
TO ME, THAT'S FULL, IN MY OPINION, THAT'S FULLY FUNDED.
THERE'S SO MANY EBBS AND FLOWS.
AND IF YOU LOOK THAT YOU LOOK AT THE PRIOR YEARS WHEN WE WERE 96% A YEAR BEFORE WE WERE 98% THE YEAR BEFORE, WHY, YOU KNOW, SOMEBODY GOES, WHY DID IT DROP? BECAUSE THIS WAS DONE AT JUNE 30TH, 2020, THE VALUE OF THE ASSETS.
AND REMEMBER MARCH OF 2020 WHEN THE MARKET DROPPED ABOUT 30%.
SO TO STILL ONLY BE HERE AT THAT JUNE 30 NUMBER AFTER THE MARKET TUMBLED, UM, IT'S NOT BAD, ACTUALLY.
AND THEY'LL SMOOTH THAT, AND IT'S NEVER JUST A CUTOFF ON TOWN.
SO THEN WE HAVE THESE BIG PEAKS AND VALLEYS, AND YOU'RE TRYING TO PUT TOGETHER A BUDGET AND THE ANNUAL BUDGET.
YOU DON'T HAVE $2 MILLION OF CONTRIBUTION THIS YEAR AND THEN $1 MILLION NEXT YEAR, AND THEN 3 MILLION THE YEAR AFTER THEY KIND OF KEEP IT SMOOTH FOR YOU.
SO TO ANSWER YOUR QUESTION, I THINK YOU'RE FAIRLY WELL-FUNDED OKAY FOR THE COUNTY.
IF YOU FLIP THE PAGE PAGE ONE 10 IS A VERY SMALL AMOUNT WITHIN THE SCHOOL BOARD.
THIS PLAN FOR THE NON-PROFESSIONAL POLICE, JUST LIKE THE COUNTIES.
UM, I'M NOT GOING TO COVER IT BECAUSE THEY ONLY HAVE A $297,000 LIABILITY.
AGAIN, IF YOU LOOK AT THE 2020 COLUMN, GO DOWN TO THE VERY LAST DOUBLE UNDERLINE, $297,833.
SO THE NON-PROFESSIONAL PIECE IS FUNDED AT 93.6% TO GREAT SHAPE.
WHEN YOU LOOK AT PAGE ONE 11, THIS IS WHERE WE WERE JUST DISCUSSING AT THE STATE LEVEL.
THE SCHOOL BOARD TEACHERS ARE ALL IN THE SAME PLAN THROUGHOUT THE STATE.
IT'S CALLED A COST SHARING PLAN VERSUS THE SAME EMPLOYER PLANS.
THIS ONE, WE SHARE THIS HUGE LIABILITY WITH FAIRFAX COUNTY, LOUDON COUNTY, CITY OF RICHMOND, ANYBODY WHO PARTICIPATES IN THE TEACHER'S VRS POOL, YOUR PIECE OF THE LIABILITY IS BASED ON YOUR PAYROLL.
SO WHEN YOU SAY, WELL, WHY AREN'T WE FUNDING FAIRFAX COUNTY? YOU'RE NOT BECAUSE THEIR PAYROLL IS SO MUCH ENORMOUSLY MORE THAN YOURS.
THE LARGEST PIECE OF THE LIABILITY GETS ALLOCATED TO THEM, SAME FOR LOUD AND IN STAFFORD AND SO ON.
SO THAT LOOKS AT YOUR PERCENTAGE OF PAYROLL COMPARED TO THE TOTAL PAYROLL FOR THE TEACHERS, PULLING THE STATE AND SAYS, HERE'S YOUR PORTION.
AND THIS PORTION OF THE LIABILITY FOR YOU ALL IS YOUR LARGEST ONE IS $27 MILLION.
[00:30:01]
ISN'T AS WELL-FUNDED AS, AS YOU WERE NOTING.UM, IF YOU LOOK AT THE LAST PERCENTAGE THERE AT 71.4, 7%.
SO WHILE IT'S NOT AS HIGH AS 90 71 ON ITS OWN, I LIKE TO BE A LITTLE HIGHER COMPARATIVE AROUND THE NATION COMPARED TO OTHER STATES COMPARED TO OTHER POOLS, 71 AND A HALF PERCENT.
AND IT FLUCTUATES MORE BECAUSE OF CONTRIBUTIONS, WHETHER THE STATE MAKES CONTRIBUTIONS INTO THE LANE OR NOT, OR JUST REQUIRES YOU ALL TO BE CHIPPING AWAY AT THAT WAY.
AND I'VE BEEN ASKED ON THIS ONE, WHEN YOU LOOK AT THIS 27 MILLION GO, WELL, CAN WE JUST ISSUE SOME DEBT, SOME BONDS AND JUST PAY THIS 27 MILLION OFF? THE ANSWER IS NO, BECAUSE THE VERY NEXT YEAR, THEY'RE JUST GONNA LOOK AT YOUR TOTAL PAYROLL AGAIN, COMPARED TO THE TOTAL LIABILITY AND BOOM, YOU'VE JUST GOT, YOU'VE GOT $27 MILLION LIABILITY NEXT YEAR AS WELL.
SO EVERYBODY HAS TO FIX THE NOTICE, EVERYONE.
ON THIS PIECE, THIS IS A COMBINED EFFORT FOR ALL SCHOOL LOCALITIES SCHOOL BOARDS, AS WELL AS THE STATE IN THE CONTRIBUTIONS TO THIS STATEWIDE PLAN.
SO IF WE MADE A CONTRIBUTION TO TRY AND GET RID OF THIS AND IT JUST, IT WOULD JUST HELP OTHERS AND YOU AMINE PEACE.
IT WOULD HELP, BUT VERY INCREMENTAL.
PROGRAMS ARE DETERMINED BY THEM, BUT THEY'RE OURS.
PART OF IT IS OUR SPECIFIC POOL.
AND PART OF IT IS IN GENERAL, NOT MUCH WE TO DO IT A LITTLE BIT FULL OF FUN.
YOUR SHORTFALL SITS ON OUR BOX AND YOU, AND YOU DO PAY IN WHATEVER THEY ASK.
IF YOU EACH YEAR, HERE'S YOUR PERCENT, YOU KNOW, YOU CALCULATE AND WE MAKE THOSE MONTHLY PAYMENTS.
IF WE SET THE 27 20 7 MILLION, AND IF WE DON'T SEND IT OUT TO SHARE THAT DOESN'T CHANGE OUR LIVES, IF WE DON'T BUILD IT, IT SHOULDN'T EVEN ASK THAT.
YES, IT'S CERTAINLY A STRATEGY.
IT'S ONE, ANYBODY THAT I WOULD RECOMMEND, MAYBE THAT'S HIGH ON OUR BOOKS AND OTHER, NO, WE'RE FISCALLY RESPONSIBLE HERE.
THAT'S WHERE WE ASK THE QUESTION.
CAN WE ACTUALLY PAY ON TOP OF YOUR FULL? THAT WILL BE THAT ONE.
YOU WOULD NOT BE ABLE TO JUST WRITE A CHECK.
IF WE HAD A HUGE SURPLUS OR ISSUE DEBT AND PAY IT.
THE OTHER TWO, YOU ACTUALLY COULD, IF YOU WANTED TO, BUT AGAIN, I CONSIDER YOU ALMOST FULLY FUNDED.
YOU COULD DO WHAT YOU'D LIKE, BUT I WOULDN'T WRITE TO YOUR POINT.
THE LAST 12 TO 24 MONTHS, REALLY HASN'T TAKEN A LITTLE JAIL AGAIN.
IT'S THEY SMOOTH, THEY SMOOTH THE VALUE OF THE ASSETS OVER A THREE YEAR PERIOD OR ABOUT A YEAR.
I THINK IT'S A THREE-YEAR PERIOD THAT THEY SMOOTHED THAT.
SO EVEN THE RECOVERY THAT WE'LL HAVE THIS PAST JUNE 30TH, 2021, YOU WON'T GET FULL CREDIT FOR THAT RECOVERY BECAUSE IT STILL GET SMOOTHED OUT CRAWL.
SO, SO JUNE 30, 2020S NUMBER IS GOING TO BE IMPACTFUL FOR THREE YEARS IN THEIR CALCULATION.
SO MAYBE SOME SMOOTH CYBER TIMING PROCESS.
WHAT ELSE WE GOT GOING ON HERE? UM, INTERNAL, YOU ASKED THE QUESTION, IS THERE ANYTHING ELSE WE SHOULD BE DOING INTERNALLY, EXTERNALLY? I THINK YOU TOUCHED ON SOME OF THE THINGS COMING AROUND THE CORNER, THINGS THAT ARE HEADED OUR WAY.
AND I THINK WE'RE, WE'RE AT LEAST AWARE OF WHAT'S WHAT'S OUT THERE OPEN.
IT'S NOT GOING TO BE MOVED UP ONTO THAT CAPITALIZE AND PUT ON THE BALANCE SHEET THE WAY IT IS.
SO OPEN ALREADY UP THERE, VRS IS UP THERE, UP THERE.
NATIONS ARE GOING TO BE UP THERE, THERE.
WHAT ELSE DO THEY WANT US TO PUT? I GUESS THE ONE THAT I ALWAYS ASKED HER ABOUT, I GUESS SO FAR, I HAVEN'T HEARD ANYTHING ABOUT IT IS THAT CAPITALIZING ON INCENTIVES WHERE COMPANY OR THE STATE GIVES AWAY MONEY, DO THEY HAVE TO SHOW THAT? SO FOR INSTANCE, IF YOU A BIG TAXES FOR 10 YEARS, FOR $15 MILLION, YOU PUT DOWN IN YOUR BOOKS AND AMORTIZE THAT OVER TIME, BECAUSE IT'S AN OBLIGATION, A FUTURE
[00:35:01]
OBLIGATION DOLLARS THAT YOU'VE GIVEN AWAY FOR RIGHT NOW.THEY'RE, THEY'RE, THEY'RE, I THEY'RE REALLY DESPERATE IF THAT'S ONE THAT THEY START TO LOOK AT.
SO THERE'S, THERE'S NOTHING OUT THERE I'VE EVER HEARD, EVEN A RUMBLING OF, OF CONSIDERATION FOR THAT.
SO THIS IS NOT, NOT MENTIONING, LET'S NOT ASK THEM.
LET'S NOT ASK THEM IF THEY'RE CONSIDERING, UH, NOT AFRAID TO BREAK IT UP.
IF WE DON'T MAKE EXTENSIVE USE OF THAT, WE DO DISCLOSE THAT IN THE FINANCIALS, THERE IS A, UM, NEAR THE BACK OF THE FOOTNOTES THAT WE DISCLOSE ANY TYPES OF INCENTIVES THAT WE HAVE.
WE DON'T, I DON'T THINK WE MENTIONED NAMES OR ANYTHING, BUT WE DO MENTION THAT THERE ARE INCENTIVES THAT WE HAVE, THAT WE HAVE, SO THAT DOES GET DISCLOSED, BUT IT DOES NOT HIT THE BELL.
SO THEY HAVE THOUGHT ABOUT IT AND DISCLOSURE IS THE ONLY PLACE THAT THEY'RE CONCERNED ABOUT IT.
UM, ANYTHING ELSE? ANYTHING ELSE? SO, YEAH, I JUST SCRAPED JUST TO SEE WHAT YOU GUYS ARE QUALIFIED TO TAKE AN OPINION, I'VE HAD TO MAKE AN UNMODIFIED OPINION.
SO THIS IS INDEED GOOD NEWS, AND IT'S NOT JUST WHERE WE ARE TODAY.
IT'S NOT JUST OBSESSING ABOUT WHAT WE'VE DONE, I GUESS, AS YOU KNOW, THE COUNTY'S GOT A LONG WAY.
UM, AND THIS IS A GREAT PLACE TO BE FOR YOUR REFERENCE.
THE OTHER QUESTION IS SOMETIMES CITIZENS IS HOW OFTEN DO YOU EITHER CHANGE AUDITORS OR CHANGE THE LEAD, OR, UM, YOU MENTIONED THE SAFETY BENEFITS FOR NOW.
I THINK WE'VE CHANGED A NEW SET OF EYEBALLS.
THERE'S A LEAD ON THIS AT SOME POINT IN YOUR PAST.
WE HAVE, WE, WE HAVE REALLY UNDERNEATH ANDREA, ANDREA IS HERE AS A MANAGER, BUT REALLY THE IN-CHARGE AND THE STAFF ROTATE THROUGH.
WE DON'T, WE TRY NOT TO HAVE NEW TEAMS EVERY YEAR, BUT WE DO ROTATE THEM THROUGH.
WE ROTATE WHICH SECTIONS THEY WORK ON.
AS THEY GAIN EXPERIENCE, WE START THEM IN THE AREAS THAT, THAT WE THINK ARE A LITTLE BIT EASIER.
AND THEN WE MOVED THEM TO SOME OF THE WORK PAPER SECTIONS THAT WE THINK ARE A LITTLE MORE DIFFICULT AND MORE CHALLENGING.
SO THEY GET THE CHANCE TO SWITCH AROUND AS WELL.
IT WOULD BE VERY RARE THAT THE SAME PERSON WOULD DO THE SAME PROCEDURES BACK TO BACK YEARS.
IT'S ALWAYS HELPFUL TO MAKE SURE YOU'RE NOT MISSING ANYTHING.
ANY OTHER, AND THERE'S ONE MORE YEAR LEFT ON THE CURRENT CONTRACT.
ANY OTHER QUESTIONS, COMMENTS, CONGRATULATIONS AT THE HOLIDAYS.
I THINK HE'LL BE AT THE TWO O'CLOCK MEETING AS WELL.
SO, SO IT COMES OUT BETWEEN NOW AND THEN JUST HAS BEEN ADDED BACK TO ASK ME THERE WON'T BE A MATERIAL CHANGE IN OUR FINANCIAL POSITION.
NOT ONE THAT'S GONNA SHOW UP IN THIS DOCUMENT.
THAT BRINGS ME TO ANOTHER ONE REAL QUICK.
UM, AS YOU YOU'RE LOOKING AT ISSUING HERE, UM, IS THERE ANYTHING THAT TEAM NEEDS TO BE AWARE OF AS GO DOWN THAT ROAD YOU MAY HAVE SEEN, OR THE MESSAGE FROM OTHER PEOPLE GOING THROUGH THAT PROCESS THAT WE SHOULD DO? NO, I WAS, I WAS, I WAS ACTUALLY JUST LOOKING AT YOUR GENERAL FUND, YOUR FUND BALANCE.
THEY'RE COMPARING IT JUST QUICKLY BACK TO YOUR ACTUAL EXPENDITURES.
UM, AND I DON'T REMEMBER IF YOU HAVE AN OFFICIAL DEBT SERVICE DEBT, WELL, A FUND BALANCE POLICY OF HOW MUCH PERCENT LIKE COMPARED TO EXPENDITURES AND WHAT THAT NUMBER IS.
THE BOND RATING AGENCIES ARE GONNA LOOK AT THAT THEY DO.
AND I THINK YOU HAVE A VERY STRONG FUND BALANCE IN YOUR GENERAL FUND, AS WELL AS YOUR CAPITAL PROJECTS FUND IS A VERY STRONG FUND BALANCE.
THE UNASSIGNED PORTION, AGAIN, VERY FAVORABLE PERCENTAGE WISE.
WHEN I LOOK AT IT COMPARED TO TOTAL EXPENDITURES, THE THINGS THAT YOU SHOULD PROBABLY THINK ABOUT, AND, AND ONE OF THE AREAS THAT THEY ALSO LOOK AT IS, IS YOUR MANAGEMENT TEAM AND HOW EXPERIENCED THEY ARE AND THEIR SETS AND SUCCESSION PLANNING, WHAT WE'VE GOT IN LINE THERE.
AND WITH THE GREAT RESIGNATION, THE BIGGEST THING EVERYBODY HAS IS HOW ARE YOU DEALING WITH EMPTY HOLES AND EMPTY SLOTS THAT YOU CAN FEEL HAVING AN ANSWER READY FOR THAT OR A PLAN IS, WOULD BE KEEPING, OKAY, GOOD.
CAN WE DO JUST, UH, GO IN FRONT OF ALL THREE OF THE AGENCIES, WHAT OUR PLANS ARE,
[00:40:01]
SO THEY CAN BE A SURPRISE TO THEM AND THEY DO GIVE US THE AAA ACROSS THE BOARD.ANYTHING ELSE? SCHOOL, SOCIAL SERVICES, CITIZENS, PUBLIC COMMENTS, ANYTHING.
WE HAVE PUBLIC COMMENT LATER, BUT IF THEY HAVE A SECTION FOR THAT, OKAY, WELL, IF THERE IS NOTHING ELSE, WE DO HAVE A FEW MORE ITEMS, SO WE APPRECIATE EVERYTHING YOU'VE DONE AND ALL THE HELP YOU GIVE US ALONG THE WAY, IT'S KIND OF A TEAM EFFORT.
UM, SO I UNDERSTAND WHY IS THAT AN INVITATION PUBLIC COMMENT OR MY SPECIAL WAIT UNTIL LATER.
YOU WANT TO LIST? YEAH, IT DIDN'T MISS AN OPPORTUNITY.
AND, UH, ANYTHING, WHAT WAS IT A QUESTION FOR MR. GARVER? WELL, I'M NOT SURE WHO WOULD ANSWER IT.
AND I'M NOT SURE THERE'S NO PAGE NUMBER ON IT, BUT SOMEBODY ON BEHALF OF THE COUNTY SIGNS, YOUR MAY 12TH LETTER IN SEPTEMBER, AND THEY MUST BE A PHYSICIAN BECAUSE I COULD NOT DECIPHER WHO SIGNED THAT.
WELL, THAT'S ONE IT'S JUST TO SIGN IT BECAUSE IT WAS ADDRESSED TO MR. YAN, BUT I DON'T THINK HE WAS HERE IN SEPTEMBER TO SIGN THAT.
SO JUST IT'S AND THAT'S JUST BECAUSE MY MIND LOOKS LIKE THAT, BUT IT'S NOT THAT.
AND THEN THE OTHER WAS, ARE THERE OPPORTUNITIES WITH THE, UH, UH, 25 YEAR PLAN? THE COUNTY HAS ON CAPITAL PRODUCTS, ASSETS.
WE HAVE BEEN ADJUSTING SALARIES, UNDERSTANDABLY.
SO, WHICH IS GOING TO FLOW BACK INTO THE RETIREMENT.
AND I WANT TO SAY THE ACRONYM PROPERTIES KEEP OFF BEBOP OR WHATEVER IT IS.
IS THERE A FORECASTING OPPORTUNITY FOR THAT? AND I'M SOMEWHAT PROVINCIAL ON THIS BECAUSE MONICA AND SWOLLEN WATER CONSERVATION DISTRICT HAS FULLY FUNDED ITS RETIREMENT OBLIGATIONS FROM UNUSED LEAVE AND SICK LEAVE.
BUT THIS IS ALL EDUCATIONAL TO ME THAT WE MIGHT ALSO BE CALLING THE HOOK FOR SOMETHING DOWN THERE WITH VRS THAT WE, OUR EMPLOYEES PARTICIPATE IN THAT.
AND WE HAVE NO INDICATION ON OUR BALANCE SHEET THAT WE MIGHT BE RESPONSIBLE FOR SOMETHING YOU'RE A STATE EMPLOYEES.
WE PARTICIPATE IN VRS, BUT WE'RE AN INDEPENDENT POLITICAL SOUTH DIVISION.
YOU SAID IT SORT OF WATER DISTRICT.
SO YOU'RE, YOU'RE ALREADY CALCULATED IN THE STATE'S NUMBER FOR VRS.
SO THE STATE HAS THEIR OWN NUMBER FOR THEIR OWN STATE EMPLOYEES AND SORT OF WATER CONSERVATION TRICKS.
I'M PRETTY SURE ARE CONSIDERED FOR THAT CALCULATION STATE EMPLOYEES.
SO YOU'RE IN THE CAP, YOU'RE IN THE NUMBER THAT THE STATE REPORTS IS THERE, THEIR LINES.
PRETTY NEAT TO START THAT AGAIN.
UM, BUT YOUR POINT IS, IS A GOOD ONE.
AS FAR AS, AS WE LOOK AT THE FACT THAT WE CAN'T FIND PEOPLE, WE CAN'T HIRE PEOPLE AND WE ARE PAYING MORE, THAT ABSOLUTELY WILL GO STRAIGHT INTO THE ACTUARY'S CALCULATIONS.
AND IT'S JUST GOING TO MAKE THE FUTURE PAY OUT MORE AND IT'S GOING TO INCREASE OUR LIABILITY.
AS WE HAVE TO PAY MORE TO FILL THE SAME POSITION, IT WILL BE PART OF THE ACTUARIES NUMBERS.
CAUSE THEY BASE THIS OFF OF PAYROLL AND PROJECTIONS OF PAYROLL AND WHAT THE CHANGES WILL BE.
AND WHEN THERE'S A SHIFT LIKE THAT, IT'LL START CHANGING THAT LIABILITY CALCULATION.
THE SHIP OF STATE HAS BEEN WELL, CAPTAIN THE LAST, I'LL SAY 10 YEARS.
UH, AND UM, I HAVE NOTHING BUT APPRECIATION AND ADMIRATION FOR WHAT HAS BEEN ACCOMPLISHED, BUT YOU KNOW, WHAT'D YOU DO FOR ME TODAY TYPE OF THING, YOU KNOW, THAT'S GREAT THAT YOU WERE THE BATTING CHAMPION THREE SEASONS AGO.
WHAT ABOUT THIS SEASON? SO I'M JUST KIND OF RADAR HERE AND I'M DONE.
I'M NOT AN EXTROVERT AND I DON'T DON'T PLAY ONE ON TV, BUT YOU DID MENTION THAT IF THERE IS WAGE INFLATION, THAT THAT WILL INCREASE THE BENEFITS AND THEN I'LL INCREASE THE POTENTIAL QUALITY.
AT SAME TIME THAT INFLATION IS TRENDING OR MINUS AN INTEREST RATES, WOULD YOU USE FOR THE DISCOUNT RATE? THE DISCOUNT GOES TO PRESENT VALUE.
AND THE MARKET CONTINUES TO HAVE NEW HIGHS THAT ARE COMPLETELY UNEXPLAINABLE.
SO THE MARKET KEEPS UP WITH INTRODUCING YOUR SALARY INCREASES THIS YEAR.
SO A LOT OF MOVING PARTS THAT GIVES HER ALL CONNECTED, STAY TUNED.
[00:45:01]
THAT RUN ALL THOSE NUMBERS TO YOUR POINT, THE STATE DOES RUN THOSE PROJECTIONS, THE DISCOUNT RATE THAT THEY PRESENT VALUE THE FUTURE LIABILITIES THAT, AND THEN ALSO THE GROWTH IN SALARIES.I GUESS MY LAST OBSERVATION, WHAT WOULD TRIGGER THE STATE COMING TO GOOCHLAND FOR, TO MONICA AND SAY CODY UP GUYS? I MEAN, WE DO IT EVERY YEAR.
WELL, I MEAN, BUT IF THEY JUST SAID WE, WE ABSOLUTELY WANT A HUNDRED PERCENT FUND THIS COME UP WITH 27 MILLION BUCKS, WHAT WOULD TRIGGER THE STATE BEING ABLE TO DO? I DON'T KNOW.
I THINK IF THE ONLY THING THAT WOULD TRIGGER THEM TO DO THAT AS IF NONE OF THEM WANT TO GET REELECTED.
WE'RE SAYING THAT THEY'RE ALL LOOKING FOR A REASON TO NOT GET REELECTED.
BUT I DON'T THINK THERE'S ANYTHING THAT WOULD CAUSE THINGS THAT THEY COULD, BUT IT COULD BE ONE OF THE WORST OR WHATEVER.
WELL, LIKE I SAID, IN FACT, YOU MUST LOOK AT OURS COMPARED TO IT FOR THAT THINK WE'RE REALLY GREAT SHAPE IN A VACUUM.
YOU HAVE TO DECIDE AT 77%, IS THAT GOOD ENOUGH OR NOT? IT'S NOT FANTASTIC, BUT IT'S NOT BAD.
AND IN FACT, THE TESTIMONY THAT, BUT VIRGINIA IS STILL HAS ITS AAA CREDIT RATING.
IF THIS WAS MATERIAL ENOUGH, TO CALL THAT INTO QUESTION THAT THAT'S WHERE THEY MIGHT WANT TO SAY, OKAY, WHEN YOU WERE ON WATCH FOR A WHILE.
AND THAT WAS BECAUSE OF, THEY RATED THE RAINY DAY FUND REVENUE STABILIZATION.
BUT ANYWAY, BUT IF IT GOT TO THAT POINT, THEY'D PROBABLY PUT THEM ON WATCH AND SAY, YOU NEED TO DO A LITTLE MORE FUNDING, BUT THEY HAVEN'T YET.
AND THEN SAME THING WITH US, WE JUST GOT THREE TRIPLE A'S.
SO THEY'RE LOOKING AT THAT 27 MILLION.
THAT'S NOT AN ISSUE FOR, I DON'T THINK ANY OF IT WOULD IMPACT THEM WHEN YOU'RE LOOKING AT THE VRS.
CAUSE AGAIN, THE STATE'S FUNDING TO STATES CLASSIFICATION IN THE BOND RATING AGENCIES, THEY'RE LOOKING AT WHAT THE STATE'S LIABILITY IS, NOT WHAT ANY OF THE LOCALITIES THEY'RE LOOKING AT, WHAT DISTINCTIONS IN THEIR STATE PLAN.
THANK YOU FOR THAT, TO THAT QUESTION, JUST AS A MATTER OF INTEREST, THEY'RE CONCERNED PART OF THE STATE PLAN.
HOW ABOUT OUR CONSTITUTIONAL OFFICERS, UH, COMMONWEALTH ATTORNEY OFFICE TO SHERIFF'S OFFICE, PART OF OUR PORTABLE APARTMENTS PLAN.
THEY ALSO CONSIDERED PART OF THE STATE AS THEY ARE.
THEY ARE STRICTLY COUNTING, UH, THIS LETTER A BIT IT'S CALLED THE ENGAGEMENT OR ARRANGEMENT LETTER AND SORT OF THEIR CONTRACT TO SAY THAT YOU WILL DO THESE THINGS.
UH, IT WAS SIGNED BY A PURCHASING DIRECTOR.
SHE HAS THE AUTHORITY TO DO THAT.
AND I THINK THE REASON FOR THE DATE IS IT WAS JUST AN OVERSIGHT.
WE DIDN'T HAVE THIS LETTER SIGNED IN THE SPRING.
SO WE CAME TO DO THE AUDIT AND THE LAST WE DIDN'T HAVE IT SIGNED YET.
THE LETTER IS DATED MAY 12TH, SO RIGHT.
WHICH IS WHEN THE LETTER ENGAGEMENT LETTERS COME OUT.
BUT THEN WE HAVE TO READ THEM AND FIND THEM AND SEND THEM BACK.
THAT'S WHY OTHER THOUGHTS OR QUESTIONS OR HOW MANY DAYS DO WE START? WE ALREADY HAVE, IT JUST THERE'S AN ELECTION EVERY YEAR.
IT SEEMS LIKE WE'RE LOOKING AT LEAST YEAH.
ALWAYS MICHAEL, EVERY NOVEMBER DELIVERY DAY, MICHAEL BEAM FROM HARRISON BURTON COMING TO BRIDGEWATER, GRANT JUICE.
WELL I'M ONE DUDE, BRIDGEWATER FAIR.
I WANT YOU TO ASK ME TO DO THAT TOO MUCH STUFF HAS COME AND GONE SINCE THEN.
I HAVE AT BRIDGEWATER, WE HAVE SOME, WE HAVE SEVERAL, BUT MY MENTOR MISSILE DEAN WAS A BRIDGEWATER GRADUATE.
SO WITH HIM, BOB HOUSTON STILL TEACH HIM WHEN YOU WERE THERE.
MR. STEVE SAYS, DID YOU GET YOUR ANSWER? THAT'S YOUR FIRST THREE MINUTES, TWO AND A HALF MINUTES LEFT.
BACK TO THE, UH, THE AGENDA WAS THAT IN THREE AND OUR AGENDA, THE, UH,
[00:50:01]
EXTERNAL AUDITORS, UH, NEXT ITEM ON THE AGENDA IS THE 20 FISCAL YEAR, 2022 FIRST QUARTER PROJECTIONS.[IV.FY2022 1ST QUARTER PROJECTIONS (PAGE 4-5)]
AND THAT CAN BE FOUND ON PAGES FOUR AND FIVE OF YOUR PACKET.AND FOR THE FIRST QUARTER PROJECTIONS OF THE FIRST QUARTER PROJECTIONS RIGHT NOW, THIS IS AS AWFUL PROJECTING AT THE END OF THE FIRST QUARTER, 40 END OF THE FISCAL YEAR.
UH, WHAT OVER TWO REVENUES OF 2.3, THAT IS BUILDING PERMITS FOR FULL PROPERTY TAX.
AND WE'RE LOOKING AT TRENDS THAT ARE GOING UP IN ALL OF THOSE.
AS WE ALL DISCUSSED OR HAVE KNOWN THE USED CAR VALUES ARE CONTINUING UP, UM, WHICH IS DRIVING OUR PERSONAL PROPERTY TAX AND OUR BUILDING IS MOVING QUITE ALONG.
AND THAT'S WHAT DRIVING OUR BUILDING PERMITS.
UM, SAME THING WITH, UH, REAL ESTATE ASSESSMENTS.
THIS IS WHAT WE'RE ANTICIPATING HERE, EXPENDITURES REPORTING, RUNNING PRETTY TRUE TO FORM.
UM, YOU KNOW, IT'S A LITTLE EARLY TO REALLY KNOW IF THE DEPARTMENTS ARE GOING TO EXPEND THE MAJORITY OF THEIR MONEY.
WE'RE LOOKING AT WHERE THEY'RE AT RIGHT NOW VERSUS WHERE THEY WERE LAST YEAR AND EVERYBODY'S RUNNING PRETTY CLOSE.
SO IF WE WERE TO TAKE THE, UH, OVERTIP REVENUE AND THE UNDER AND EXPENDITURES, AND THEN ADD OUR TRANSFERS, WE'RE LOOKING AT END OF THE YEAR, HAVING A SURPLUS OF ABOUT $907,000.
NOW KEEP IN MIND, THIS IS JUST THE FIRST QUARTER.
UM, WE HAVE SEEN INFLATION TOOK OFF THE SONG.
SO EXPENSES COULD ACTUALLY RUN HIGHER THAN THEY HAVE HISTORICALLY OVER THE LAST COUPLE OF YEARS.
SO THIS IS WHERE WE'RE AT RIGHT NOW.
UH, THAT WOULD BE A PROJECTED AND BIG FUN BALANCE.
AND WE ENDED FYI 21 WITH 41,380,894.
ALL OF OUR RATIOS ARE STILL GOOD.
UM, OUR DEBT SERVICE RUNS ABOUT 3%.
WE HAVE OBVIOUSLY A FAVORABLE RATIO OF 7% TO REACH OUR 10 AND WE'RE MAINTAINING OUR REVENUE STABILIZATION 3% AND OUR TARGET IS 25% OR 28 RIGHT NOW.
LET'S JUST TAKE THAT THING ABOUT THE 17.
SO THERE'S NO DECISIONS THERE.
UM, ARE THERE ANY QUESTIONS THERE? YOU'RE SAYING THAT WE ARE OVER BUDGET BY 2.3 MILLION AS, OR YOU PROJECTED YOUR HANDS PRETENDED TO BE OVER BY, AS A PRELIMINARY, YOU KNOW, AFTER THE FIRST QUARTER, BUT AT FIRST QUARTER, CERTAIN THINGS ARE OBVIOUS PERSONAL PROPERTY IS ONE OF THEM.
AND, UM, BUILDING INSPECTIONS IS ANOTHER THAT IT'S PRETTY CLEAR THAT THE BUILDING INSPECTION, THIS IS GOING LIKE GANGBUSTERS DOWN THERE.
SO IF YOU JUST EXTRAPOLATE TO THE END OF THE YEAR, THOSE TWO, FOR SURE, JUST ON THE THIRD COLUMN FROM THE LEFT AT THE TOP, IT SAYS YEAR AND PROJECTED.
SO THIS IS THE YEAR AND THE FIRST QUARTER, UH, I DID JUST TRYING TO FIGURE IT OUT.
SO WE HAVE THE ADAPTED BUDGET AND THE FINAL BUDGET WHEN WE DO THINGS LIKE ALLOCATE FUNDS, FOR EXAMPLE, TO DO THE STUDY FOR THE WATER.
WHERE DOES THAT VARIANCE SHOW UP? SO ADOPTED VERSUS FINAL BUDGET, YOUR FINAL BUDGET INCORPORATES ANY AMENDMENTS THAT WERE TAKEN INTO EFFECT.
SO HOW MANY KNOW THROUGHOUT THE, OKAY, SO WE WOULD TO KNOW IF THIS IS ALWAYS INTERESTING, YOU'RE ALWAYS, YOU'RE ALWAYS CHANGING YOUR BUTTONS.
SO YOU'RE ALWAYS MEETING YOUR BUDGET BECAUSE YOU KEEP ADDING TO IT.
SO IF WE LOOKED AT, SO THE ADAPTED IS THE IN APRIL, WHATEVER IT IS, RIGHT.
WE SAID ANYTHING AFTER THAT, ANY CHANGES SHOWS UP IN THE FINAL, CORRECT? YES.
AND THEN THAT'S WHAT WE COMPARE IT TO OUR VARIANCES COMPARED TO THE FINAL BUDGET.
SO A COUPLE OF THINGS HERE, ONE IS WE'RE IN COMPLIANCE WITH ALL OF OUR POLICIES.
WE MEET HER AND SEE THE MEN ROOMS ACROSS THE BOARD.
UM, THE, THE REVENUE PROJECTION, THE SECOND HALF OF FYI AT 22, WHICH IS STARTS JANUARY.
AND THOSE RECEIPTS WILL COME INTO JUNE DURING FYI 22.
THAT'S YET TO BE DETERMINED YET BECAUSE THAT ASSESSMENTS HAVEN'T BEEN
[00:55:01]
DONE UNTIL DRAWN OUT.SO WE DON'T REALLY HAVE CERTAINTY RESPECT TO THAT COMING JUNE.
SO WE KNOW WE'LL BE A MUCH MORE POSITIVE NUMBER, BUT THIS DOESN'T, THIS DOESN'T REFLECT THE NEW ASSESSMENTS.
I DON'T BELIEVE RIGHT NOW BECAUSE THEY'RE NOT OFFICIAL.
WE HAVE A SET OF STILL IN THE BUDGET AS THE BUDGET AND NOT FOR JOE, BUT WHAT THE ACTUAL AMOUNT OF JUDY IS GOING TO BE FOR.
SO THAT'S WHAT PROBABLY CHANGE IN INCREASE AS WE GET A MORE DEFINITE NUMBER I TALKED TO YOU, WHEN DID YOU HEAR THAT? WE'RE TRYING TO, YOU KNOW, ASSUMING AN INCREASED, THERE'S AN ASSUMPTION THAT THEY'LL TAKE YOU, I GUESS THAT'S MY POINT.
THE SECOND THING IS, AND THIS IS SOMETHING I THINK I'D LIKE TO HAVE A DISCUSSION WITH THIS GROUP.
MAYBE NOT AT THIS MEETING, BUT IN FUTURE MEETINGS, WHICH IS THE REVENUES AND EXPENDITURES SHOWN OR THE ANNUAL RECURRING, THAT'S CALLED A STRUCTURAL STRUCTURAL BUDGET, STRUCTURAL REVENUES AND STRUCTURAL EXPENSES TO MATCH THE ANNUAL RECURRING, ALL THAT STUFF BADGES.
AND THEN WHERE IT SAYS OTHER, OTHER YOU'VE GOT CAPITAL PLAN, WHICH IS THE, UH, WATER TERM MORE THAN A YEAR CAPITAL EXPENDITURES.
AND MY CONTENTION IS THAT A CERTAIN AMOUNT OF CIP IS WHAT I'LL CALL A RECURRING AND NON-RECURRING EXPENSE.
IN OTHER WORDS, WE BUY A BUNCH THIS YEAR.
WE'RE NOT GOING TO HAVE TO REPLACE THAT BUS FOR EIGHT YEARS.
THAT'S A CAPITAL EXPENDITURE, BUT THEN NEXT YEAR WE HAVE TO BUY ANOTHER BUS.
WE DON'T HAVE TO REPLACE THAT ONE FOR ANOTHER YEAR.
SO THAT'S A CAPITAL, BUT THERE'S A RECURRING BASIS OF ONE TIME EXPENDITURES THAT IN THE THREE TO FIVE TO $6 MILLION RANGE.
AND WE DON'T TREAT IT AS OPERATING OR STRUCTURAL BECAUSE IT'S HIGH AS LONG-TERM ASSETS OR YOU'RE FACING LONG TERM ASSETS EVERY YEAR.
AND SO HOW DO WE VIEW THAT? DOES THAT AN ANNUAL OPERATING EXPENSE BECAUSE IT'S THERE EVERY YEAR OR IS IT A CAPITAL EXPENSE BECAUSE WHAT WE'RE BUYING AS A MULTI-YEAR LIFE TOO.
SO IT'S A PHILOSOPHICAL QUESTION, BUT YOU CAN SEE IN THIS ONE, THE TRANSFER OF THE CAPITAL BUDGET, YOU'RE TALKING ABOUT FIVE OR 6 MILLION.
WELL, THAT HAPPENS EVERY YEAR AND YET IT'S NOT UP IN OUR OPERATING BUDGET.
SO I'D LIKE TO HAVE THAT DISCUSSION AND A PHILOSOPHICAL ONE AT SOME POINT AS TO WHAT'S THE RIGHT WAY TO REFLECT THAT WHAT'S THE RIGHT WAY TO TAKE THAT INTO ACCOUNT.
UM, CERTAINLY HER REPRESENTS SOMETHING DIFFERENT BECAUSE SALARIES ARE NOT DEFERRABLE YEAR AFTER YEAR WAITING TO BUY THAT BUS FOR A YEAR.
SO THERE'S A DIFFERENT CHARACTERISTIC TO IT.
I GET THAT, BUT IT JUST SEEMS LIKE IT'S THERE ALL THE TIME.
SO IT'S A SOFTER NUMBER THAT CAN BE DEFERRED, BUT IT'S, BUT IT'S THERE ALL THE TIME.
AND SO HOW DO WE PLAN FOR THAT? AND IF WE DON'T HAVE ANY FUNDS AVAILABLE FOR THOSE RECURRING TABLO NUMBERS, WE HAVE TO EITHER BORROW OR DIP INTO OUR RESERVES.
THAT'S THAT'S $5 MILLION EVERY YEAR.
IF WE DON'T HAVE THE TREAT IT AS AN ANNUAL UNCOVERED BY OUR ANNUAL STRUCTURAL SIMILAR.
SO IF YOU DON'T COVER IT, THEN YOU'RE JUST GOING TO SNOKE NOW, AND IT'S GOING TO CROWD OUT SOME OF YOUR SCHOOLS OR FIREHOUSES WITH THE VOLT PHONE.
WON'T BE YOUR PROJECTS FOR YOUR CREDIT OUT OF YOUR CIP, BECAUSE YOUR SNOW COMIC FIGHT BUDDY, OF A, OF A SMALLER STUFF.
AND THEN YOU DON'T HAVE THE MONEY FOR THE BIGGER STUFF.
SO I WANT TO HAVE THAT KIND OF PHILOSOPHICAL DISCUSSION.
AT SOME POINT, WE DON'T REALLY HAVE A LOT OF TIME NOW, BUT I WOULD ENCOURAGE EVERYBODY TO THINK ABOUT THAT.
WHAT'S THE RIGHT WAY TO REFLECT THIS.
WHAT'S THE RIGHT WAY TO PLAN FOR IT.
UH, WHAT'S THE RECOMMENDED TREATMENT.
UM, WE'VE HAD THE GOOD FORTUNE OF HAVING THAT FIVE OR SIX EACH YEAR FROM CASHFLOW AND WE'VE NOT SNOWPLOWED OR BORROWED THOSE 5 MILLION A YEAR.
SO WE HAD THE LUXURY OF BEING ABLE TO COVER THAT, BUT THEN WENT, MOST JURISDICTIONS, DON'T HAVE THAT LECTURE, THEY'RE RUNNING A DRUM TYPE BUDGET OF IT OR STRUCTURAL SIDE, AND THEY'RE JUST NOT IN THE LEFTOVER.
AND THAT'S HOW THEY GET PAINTED INTO A CORNER.
I DON'T WANT US TO GET PAINTED THAT SAME PORT.
I WANT TO RETAIN OUR FLEXIBILITY.
AND SO, SO THESE SO-CALLED ANTICIPATED SURPLUSES THAT COVER OUR ANNUAL RECURRING CIC REALLY JUST MEANS WE HAVE A BREAK EVEN BUDGET, EVEN THOUGH WE'RE SHOWING A SURPLUS.
DOES THAT MAKE SENSE? AND WE CAN TALK ABOUT THAT.
MAYBE WE PUT THAT DOWN AS A FEBRUARY TOPIC.
WE OUGHT TO FIND A WAY SOMEHOW WHAT'D YOU DO GET, FOR SOME REASON IT'S NOT REQUIRED, THEN IT'S JUST A GENERAL OVERALL SURPLUS YEAH.
LIKE PUTTING FIVE SHERIFFS PEOPLES ENDING, OPERATING BUDGET, THREE SCHOOL BUSES IN THE OPERATING BUDGET.
BUT HERE JUST BECAUSE OF WHAT, YOU KNOW, YOUR TURNOVER IS AVERAGE DOLLAR AMOUNT NOW.
TYPICALLY IT'S JUST TO MAKE IT EASIER TO REPORT THIS RIGHT NOW.
UM, IF WE NEED TO GO TO BED, IT WILL
[01:00:01]
WORK FOR SOME THINGS AND NOT FOR OTHERS.SO WHAT WE DO TO COMPENSATE IS WE ACTUALLY FUND OUR, WE HAVE A PLAN CIP, WE FUND PART OF IT WITH OPERATING REVENUES SO THAT WE CAN COVER WHAT WE THINK ARE THOSE MOST COMMON RECURRING THINGS.
UM, SOME THINGS ARE BEST LEFT IN THE CIP BECAUSE THEY DON'T BELONG TO ANY ONE DEPARTMENT, YOU KNOW, FACILITIES, SITE IMPROVEMENTS THAT COULD BE A SITE IMPROVEMENT AT THE CONVENIENCE CENTER, OR IT COULD BE A, YOU KNOW, A PARK OR WHATEVER.
SO, SO, BUT WE CAN DISCUSS THAT AND WE CAN, WE CAN MAYBE DO A COMBINATION OF THINGS, SHIFT MORE OPERATING REVENUES TO THE CIP AND SHIFTS A FEW THINGS TO THE, TO THE OPERATING BUDGETS.
I DON'T HAVE ANY PRECONCEIVED NOTIONS.
UM, AND THERE ARE THINGS I CAN DO STORE TO FIREHOUSE THAT JUST BELONG IN A CIP LUMPY AND DEAL WITH IT.
BUT FOR THE STUFF THAT JUST EVERY YEAR IT COMES UP, UH, RIGHT.
AND I CAN SHOW YOU QUITE A BIT OF THAT MONEY DOES ACTUALLY GO TO ONE, ONE TIME KINDS OF THINGS, JUST SMALLER PROJECTS THAT, YOU KNOW, WHETHER IT BE TIPPED ON THE IT'S PROBABLY CALLED RECURRENT.
BUT WE CAN DEFINITELY LOOK AT THAT.
I THINK THAT'D BE A GOOD FEBRUARY TOPIC.
UNLESS WE THINK OF ANYMORE BEFORE THAT, BUT, UM, OKAY.
ANYTHING ELSE ON THE BUDGET ITSELF YOU SEEM TO BE IN GOOD SHAPE AND HE'S REALLY ANY COMMENTS ON THE BUDGET OR WE'RE JUST THANKFUL FOR YOUR CONTINUED SUPPORT.
I'M NOT CUTTING ANY KIND OF INFORMATION OMEGAS.
THERE'S NO OTHER QUESTIONS FOR THE PEOPLE.
[V.FY2022 BUDGET AMENDMENT AND APPROPRIATION (PAGE 6-8)]
IS A REQUEST FOR APPROPRIATION OF FUNDS.UM, PART OF THOSE FUNDS WOULD BE THE FAIRGROUNDS ROAD, ROUNDABOUT AND STUFF TO, TO OUR PORTION OF THE PROJECT, UM, REQUIRES, UH, ANOTHER INPUT OF $831,000.
AND WE ARE FORTUNATE TO HAVE PROPER MONEY.
UM, BOTH, SOME COMMERCIAL PROFFERS THAT WERE MADE YEARS AGO AND SOME RESIDENTIAL ROAD PROFFERS THAT WE COULD, UM, FUND THAT WITH.
UM, AND THEN OVER ON THE GENERAL FUND SIDE, WE'RE GOING TO HAVE A FEW COSTS OF REDISTRICTING.
UM, AND THEN ALSO THERE'S SOME, UM, ADMINISTRATIVE STAFF EDUCATION NEEDS THAT WE'VE, UM, IDENTIFIED.
UM, WE, UM, WE WILL HAVE SOME COSTS WITH THE FINANCIAL ADVISOR, UH, FOR THE BOND ISSUANCE.
UM, WE WILL, UM, HAVE, UH, PERHAPS SOME, UM, PROJECT MANAGEMENT, UM, COSTS IF WE, UM, START SOME OF OUR PROJECTS EARLY, WHICH WE'LL DISCUSS IN A MINUTE.
UM, AND, UM, ALSO WE BY IDENTIFICATION IDENTIFIED SOME LEADERSHIP CLASSES THAT, UM, WE FEEL WOULD BE, AND THAT MONEY COMES FROM, UH, MONEY THAT WE ASSIGNED EARLIER TO ASSIGNED FUND BALANCE.
I DIDN'T FEEL FILL IN THIS SOURCE OF FUNDS SHOULD SAY ASSIGNED FOR THAT BALANCE, WHICH WE HAD ASSIGNED, UM, SEVERAL MONTHS AGO TO MY LITTLE CHART.
OH, WHEN YOUR MOM POINTED IT OUT, SO THIS, UM, WOULD REQUIRE, WELL, IT WILL REQUIRE A BOAT IN THE GENERAL MEETING AND USUALLY MAKE A RECOMMENDATION TO THE LARGER COMPANY.
SO JUST TO BE CLEAR THE, UH, THE ASSIGNED ONE BALANCE, UH, THAT MOVING THAT OVER FROM THE SIDE TO THE CATEGORY, UH, DOESN'T INCREASE THE MONDAY.
IF MY QUESTION MORE GENERALLY, OR ANY OF THESE INCREASE IN THE ANNUAL BUDGET OF THEY'RE BOTH, ARE THEY BOTH ON THE BUDGET? WE'RE AMENDING THE BUDGET TO ADD YES.
ANOTHER SOURCES OF REVENUES, ANOTHER SORT OF ANOTHER EXPENSE APPROPRIATE, CORRECT.
WE'RE AMENDING THE BUDGET AND APPROPRIATING.
AND JUST FOR, I MEAN, I THINK WE'VE BEEN DOING THIS THE
[01:05:01]
LAST COUPLE OF MONTHS, BUT I DON'T THINK WE EVER TALKED ABOUT IT.THE COUNTY ATTORNEY'S OFFICE SUGGESTED THAT WE DO ALL BUDGET APPROPRIATIONS IN THE FORM OF A RESOLUTION.
UM, AND SHE JUST MAKES IT UNIFORM.
AND IN SOME WAYS IT MAKES IT EASIER FOR, FOR YOU ALL TO SAY THE EMOTION IS THAT WE PASS THIS RESOLUTION AND WE, SO WE'VE TRIED TO INCORPORATE EVERY BUDGET APPROPRIATION INTO A RESOLUTION FORMAT, UM, SINCE THE BEGINNING OF THE FISCAL YEAR.
SO JUST FOR UNIFORMITY PURPOSES YES.
AND HOW IS THAT GONNA BE HANDLED? NO, IT'LL JUST, IT'S PART OF THE CONSENT AGENDA.
SO IT WON'T BE CONSIDERED QUESTIONS FOR BARBARA.
WHAT YOU JUST PRESENTED THE APPROPRIATIONS AT 8 31 WITH JAMES CIP, GENERAL QUESTIONS.
I'LL ENTERTAIN A MOTION TO RECOMMEND THE BOARD OF SUPERVISORS RESOLUTION SECOND, ALL IN FAVOR, SIGNIFY BY SAYING AYE.
DO WE NEED TO STATE THAT THE MEETING SINCE IT'S PART OF THE CONSENT CHAPTER? PROBABLY NOT.
I MEAN, I CAN PROBABLY JUST COVER IT.
I GO THROUGH THE CONSENT AGENDA AND THEN YOU GOT VOTED.
THE CONSENT AGENDA MOTION WAS MADE HERE DURING THE CONSENT AGENDA.
IF YOU GO THROUGH IT, YOU MAY OR MAY NOT HAVE MENTIONED THAT IT COMES TO THE BOARD WHEN WE HAD THIS MEETING, THE APPROPRIATION, UM, ON THE AGENDA IS OTHER VISITS, ANY OTHER BUSINESS TO COME BEFORE THIS GROUP BOND ISSUE BRIEFLY? I JUST WANTED TO MENTION THAT YES, TOGETHER WE YESTERDAY WE GOT TOGETHER WITH OUR TEAM, WHICH INCLUDES A FINANCIAL ADVISOR, THE BOND COUNSEL, UM, AND ADMINISTRATION.
AND, UM, THAT IS, AND WE DISCUSSED A SCHEDULE, THE SCHEDULE, UM, WHAT IT INVOLVES IS BRINGING FORWARD TO YOU, UM, A RESOLUTION TO AGREE TO ISSUE DEBT, UM, GENERAL OBLIGATION DEBT IT IN IT INVOLVES, UM, PREPARING A LOT OF INFORMATION.
UM, THE OFFICIAL STATEMENT FOR, UM, THE BOND RATING AGENCIES, BECAUSE EVEN THOUGH WE'VE GOT OUR AAA RATINGS, THOSE WERE WHAT THEY CALLED INDICATIVE RATINGS, AND THAT W THEY WEREN'T READING THE BOND ISSUE ITSELF.
THEY WERE READING US IN OUR, OUR ABILITY TO PAY DEBT.
AND SO NOW THAT WE'RE GOING TO ISSUE, WE ACTUALLY HAVE TO SAY TO THEM, HEY, HERE'S THIS DEBT THAT WE'D LIKE TO ISSUE, AND HERE'S EVERYTHING YOU EVER WANTED TO KNOW ABOUT US.
AND THEN, UM, AND, UM, AND HOW WILL YOU RATE THIS PIECE OF DEBT? AND THEN WE WILL TAKE THAT DEBT TO THE MARKET AT THE BEGINNING OF FEBRUARY.
UM, WE ARE TRYING TO MOVE, NOT IN A HURRY PACE, BUT WE'RE TRYING TO TAKE ADVANTAGE OF THE CURRENT INTEREST RATE ENVIRONMENT.
INTEREST RATES ARE GOING OUT SLOWLY, BUT THEY ARE GOING UP.
UM, AND FINANCIAL ADVISOR IS GUESSING, UH, FORECASTING THAT PROBABLY WE COULD, UM, GET AN INTEREST RATE OF 2% OF PFM.
AND, UM, THE GENTLEMAN THAT WE WORK WITH IS CALLED, UM, KEVIN RODDY.
IT'S CALLED HIS NAME, UM, PFM.
BUT, UM, A LARGE FINANCIAL ADVISOR GROUP.
YOU'VE BEEN WORKING WITH KEVIN SINCE LIKE 2012 BY MOBLEY THEN.
UM, SO, UM, THAT'S ONE OF THOSE SERVICES THAT YOU DON'T HAVE TO, TO DO AN RFP FOR.
SO, UM, AND THERE ARE A LOT OF, AND NOT, I'M NOT TRYING TO SELL YOU ON PFM, BUT THERE I'VE BEEN AROUND ENOUGH TO KNOW THAT THERE ARE, THERE ARE GOOD FINANCIAL ADVISORS AND THERE ARE NOT SO GOOD.
UH, AND I KNOW, I SEE YOU GUYS WHISPERING OVER HERE, AND SO I KNOW WHAT YOU'RE TALKING ABOUT, BUT, UH, BUT ANYWAY, UM, SO,
[01:10:01]
UM, MR. PETERSON IS GOING TO BE INVOLVED IN, UM, IN DECEMBER, WE'RE GOING TO TALK ABOUT THE STRUCTURE OF IT.LIKE, HOW DO WE WANT, WHAT, WHAT TERMS DO WE WANT ON THAT DEBT? UM, YOU KNOW, WHAT YOU WOULD LIKE THE TIME, UM, DO WE WANT PRINCIPAL ONLY PAYMENTS FOR THE FIRST COUPLE OF YEARS AND, YOU KNOW, THINGS LIKE THAT AND WORK THAT OUT TO SEE HOW BEST THE DEBT SERVICE WILL SERVE THE COUNTY.
AND, UM, SO, UM, IT'S A PRETTY EXCITING BECAUSE THAT, YOU KNOW, THE PITCH AND THE REFERENDUM ARE EXCITING, BUT THIS IS REALLY WHAT WE WERE, WE WERE GOING FOR.
SO, UM, WE'RE PLANNING ON 41, UP TO $41 MILLION FOR SCHOOLS AND UP TO 9 MILLION, FOUR OR 8 MILLION FOR YOU'VE BEEN AROUND LONG ENOUGH TO CORRECT MY NUMBERS, UH, FOR PUBLIC SAFETY PROJECTS.
SO, UM, THAT, UM, THAT, THAT PROCESS IS ROLLING.
SO WE'LL HOPEFULLY HAVE MORE NEWS FOR YOU AT THE DECEMBER OF TWO BY TWOS.
UM, AND ANY QUESTIONS ALONG THE WAY.
IT'S, UM, IT'S EXCITING TIME PREPARE FOR SO MEETINGS IN DECEMBER.
SO A REFERENDUM GAVE US UP TO ALMOST A HUNDRED MILLION DOLLARS.
THIS WOULD BE HALF THAT TO DO A LITTLE BIT MORE THAN HALF TO YOUR SUMMER PROJECTS AND CONTEMPT THEM ALL AT ONCE.
BUT INTEREST RATES ARE INCREASING AND GOATS AND CAN CLIMB THE HIGHEST MOUNTAIN.
BUT IF YOU'VE GOT TO CLIMB THE HIMALAYAS OR MOUNT EVEREST, YOU HIRE A SHIRT ALSO PFM, NOT SURE WE'RE GOING TO CLIMB A MOUNTAIN IF THEY'RE GOING TO GUIDE US THROUGH IT.
UM, THERE WILL, WHEN RICHARD MENTIONED THAT WE GOT A RATING, THAT'S INDICATIVE, IT'S A COUNTY RATING.
UH, WHEN YOU GO, WHEN YOU ISSUE A PARTICULAR BOND, THEY'RE GOING TO THE BOTTOM, THEY'RE GOING TO DO A COUPLE OF THINGS.
IS IT DISTRICT I TCSD, IS THERE A COLLATERAL PACKAGE BEHIND, IT WAS A GENERAL OBLIGATION BONDS.
SO WHAT STANDS BEHIND THE REPAYMENT IS ONE THING TO LOOK AT.
THE OTHER THING TO LOOK AT IS WHAT'S THE PRIORITY OF THE CLAIM.
IF YOU'RE SHORT MONEY, YOU HAVE TO SET PRIORITIES WHO GETS IT FIRST, WHO GETS A SECOND.
SO IS THIS A SENIOR OBLIGATION, A JUNIOR OBLIGATION SUBORDINATED JUNIOR SPORT? WHAT DOES IT STAND BEHIND IN TERMS OF PRIORITY? IN CASE IT'S NOT ENOUGH TO GO AROUND.
SO THEY'LL LOOK AT THIS AND THEY'LL GO WITH GENERAL OBLIGATION.
THAT'S YOUR CHEAPEST SOURCE OF FUNDING.
THAT'S YOUR BEST RATE? AND THEY'LL LOOK AT THE PRIORITY.
PAYMENT IS NUMBER ONE IN THE BOOKS.
SO FULL FAITH AND CREDIT, FULL FAITH AND CREDIT.
SO WE SHOULD BE ABLE TO QUALIFY FOR WHO IS THE DAY THEY MOVE.
SO YOU SAID THEY WILL LOOK AT THIS.
WHEN THE RATING AGENCIES ATTACH THEIR RADIANCE TO THE BOND ITSELF.
SO THE THREE RATING AGENCIES, THE TRIPLE TRIP WHERE YOU HAVE NOW, I WANT TO SAY IT DOES NOT APPLY TO THE BONDS.
I JUST DIDN'T KNOW WHO THE NAME.
SO WE ACTUALLY HAVE TO START OVER NOW WITH THE PODS.
AND CERTAINLY WITH THE TRIPLE TRIPLE PILL, IT WILL BE A LITTLE EASIER FOR THEM TO RATE THIS BOND.
SINCE IT IS GENERAL OBLIGATION, FOUR 50 CREDIT, WE'RE NOT HIDING ANYTHING IT'S THAT EVERYBODY'S BEHIND THEM.
SO IT SHOULD GET THE SAME RATING AS THEY GIVE US.
GENERALLY, IF THIS FIVE, WE WERE ISSUING WAS $500 OR WHATEVER, EVEN THOUGH THEY GAVE US A TRIPLE.
IF YOU LOAD OVERLOADED, THEN IT MIGHT GET RID OF DIFFERENTLY THAN WHAT THEY THOUGHT.
BUT IN OUR CASE, WE'RE STAYING WITHIN OUR POLICIES.
WE'VE DISCLOSED WHAT THIS WILL DO TO OUR FINANCIALS.
AND THEY DO ALL THAT BEFORE THEY GIVE US THE TRIP.
SO WE'RE ASSUMING THAT THERE'S NO CHANGES THAT SHOULD FOLLOW.
I DON'T THINK THERE'S ANY PROBLEM AT ALL.
BEING ABLE TO FULFILL THEM IMMEDIATELY.
WE PUT IT OUT THERE AND PEOPLE TO BUY IT.
NO, IN FACT, AND WE'LL TALK ABOUT THIS MORE, BUT THERE'S THIS WAY THAT THEY'VE BEEN ISSUING DEBT RECENTLY, A COMPETITIVE BIDDING, BUT IT'S NOT JUST A COMPETITIVE BID, YOU ACTUALLY AUCTION IT.
AND SO, UM, YOU KNOW, WE'LL TALK ABOUT THAT MORE WHETHER WE DO IT, BUT YOU KNOW, YOU HAVE THIS AUCTION AND THEN IF SOMEONE, SOMEONE HAS A CHANCE TO BE OUTBID AND THEN COME BACK IN A BIT AGAIN, YOU KNOW, SO IT OPENED UP LIKE, OH YEAH, RIGHT.
AND MUNICIPAL SALES ARE JUST, AREN'T DOING REALLY WELL.
SO, AND AS TAX RATES GO UP, IF THEY DO GO UP AFTER TAX RETURN WOULD GO UP RELATIVE TO THIS.
[01:15:01]
OF YIELD.ONE OF THE, UH, ONE OF THE, I KNOW THAT HERE ARE THE MONKEYS.
THEY COULD THROW IT A GEARS IS IF THEY LIFT THE SALT CAP DEDUCTION.
BECAUSE RIGHT NOW WITH SALT CAP DEDUCTION, A LOT OF HIGH NET WORTH FOLKS IN CALIFORNIA IN NEW YORK ARE LOOKING AT, I CAN'T DEDUCT MY, MY LOCAL TAXES.
I'M IN A HIGHER TAX BRACKET NOW.
SO I NEED TO FIND SOME MUNICIPAL BOND TAX FREESTYLE.
IF THEY SAY YOU CAN DUCT ALL YOUR NEW HEART TO CALIFORNIA TAXES, THEY MAY BE ABLE TO SHELTER ALL OF THEIR INCOME AND NOT HAVE TO WORRY ABOUT.
SO THAT LITTLE THING GOING THE OTHER WAY, BUT MY GUESS IS IF THEY DO SOMETHING WITH SALT, IT WILL BE INCREMENTAL BECAUSE IT'S A TAX BREAK FOR BETTER.
I DON'T KNOW HOW MUCH THEY'RE GONNA WANT TO DO TAX RATES.
SO IF THEY LEAVE, IF THEY LEAVE THE CAP WHERE IT IS, AND THEN THEY RAISED THE OTHER RATES, THEN IT BECOMES MORE ATTRACTIVE TO ANY OF THESE TAX RATES WHERE THEY ARE, BUT THEY LEFT THE CONSULTANT.
THAT ACTUALLY GOES THE OTHER WAY.
BUT YOU CAN TELL ME WHERE THEY'RE GOING AND I'LL TELL YOU, I DON'T MIND IF WE JUST LIKE TO GET THIS LUNCH WHERE WE KNOW WHAT THE RULES ARE, AND AT LEAST GET HAPPENS DOWN THE ROAD.
NOW, AS WE ALL KNOW, THE REFERENDUM APPROVAL IS GOOD FOR EIGHT YEARS.
SO IT'S USE IT OR LOSE IT IN EIGHT YEARS.
SO IF WE DO HAVE THEM GET A COUPLE OF MAJOR PROJECTS UNDER OUR BELT, WE STILL HAVE, YOU KNOW, A WINDOW THERE AND AFRAID TO GO HIGHER.
THE LOWER RATE RATES GO LOWER.
AT LEAST WE DIDN'T DO IT ALL BY ITSELF, BUT IT'S A LOT OF NOTICE THINGS, AVERAGE OUT A DROPDOWN QUESTIONS IN FIVE TO SEVEN ON REFERENDUM TIMING.
WE'RE GONNA MEET DECEMBER A COUPLE OF TIMES.
SO IF IT ALL GOES, ACCORDING TO PLAN, THE BOARD OF SUPERVISORS WOULD BE LOOKING AT THE RESOLUTION IN JANUARY, THE JANUARY, JANUARY MEETING.
AND THEN THE RESOLUTION WOULD BE TO APPROVE UP TO THIS.
AND THEN WE'D COME BACK AFTER AND SAY, THIS IS WHAT THE ACTUAL WAS JUST STARTED PAST THE END DATE NOTICE.
UM, OKAY, WE'RE RUNNING OUT OF TIME.
[VI.OTHER BUSINESSVII.PUBLIC COMMENT]
ANY OTHER BUSINESS TO COME BEFORE THIS BODY.UM, BUT IF NOT, THIS WOULD BE THE THREE MINUTE DRILL CITIZEN THAT MIGHT WANT TO MAKE THEM REMEMBER LOCKED IN.
SOIL IS DEFINITELY ASSOCIATED WITH REPRESENTATIVE INTO WHAT HE TALKS ABOUT.
I MEAN, AND I'M NOT BEING CRITICAL.
I'M OBSERVING OTHER CITIZENS IN THE COUNTY.
YOU JUST DON'T SEEM TO BE AS ENGAGED THAT I WOULD LIKE THEM TO BE, BECAUSE WHAT YOU'RE DOING IS SO IMPORTANT AND, UH, YOU KNOW, CONSIDER THE SOURCE.
I MEAN, I REALLY DO APPRECIATE WHAT YOU GUYS DO BECAUSE, UH, IT IS NOT AN ACCIDENT.
THAT GOOCHLAND IS A GREAT PLACE TO BE.
AS I TELL PEOPLE, I LIVE IN GOODSON CAUSE I WANT TO NOT CAUSE I HAVE TO.
UM, AND SO ALL Y'ALL STAFF, EVERYBODY, EVEN THE, I T AUDIO VISUAL GUYS, IT JUST AMAZES ME, UM, THE MAGIC, IF I CAN USE THAT, THAT TAKES PLACE, BUT IT'S HARD WORK.
WELL, THANKS IF YOU'RE A COUPLE MINUTES, YOU CAN KEEP GOING.
I WOULDN'T REALLY HAVE ENOUGH.
I AM SERIOUS BECAUSE I REALLY DO APPRECIATE WHAT YOU GUYS DO.
AS YOU KNOW, IT'S A TEAM EVENT WHERE ALL OF US TOGETHER NOW, EVERYBODY YOU'VE MENTIONED EVERY CITIZEN OUT THERE OUT OF ALL MEETINGS.
AND I TAKE THE CALL, YOU KNOW, A LACK OF ENGAGEMENT.
I, I VIEW THAT AS, UH, AN INCREASE IN TRUST IN IDIOTS, UM, BECAUSE THEY TRUST US THIS ROOM BEFORE.
I MEAN, PUBLIC HEARINGS IS WHEN PEOPLE THERE'S A BURN TO THE SADDLE, THEY SHOW UP, BUT WHEN THINGS ARE GOING OKAY, IT'S LIKE, I DON'T NEED TO.
AND, AND UH, BUT AT THE SAME TIME, I'VE LEARNED THINGS HERE TODAY THAT HAVE BEEN HELPFUL, UM, FOR ME.
UM, AND SO AGAIN, JUST THANK YOU GUYS.
IT AIN'T FOR THE BIG BUCKS, THE GLORY AND THE, THE 2:00 AM PHONE CALLS THAT YOU GUYS DO THIS.
I MEAN, THERE'S WATER IN THE DITCH IN FRONT OF MY HOUSE.
THAT'S WHY WE PUT A DITCH THERE.
THAT'S WHAT WE'RE THINKING ABOUT.
INSTALLING AN APPLAUSE BUTTON.
[VIII.ADJOURNMENT TO 12:30 PM FEBRUARY 1, 2022]
FEBRUARY 1ST AS 12:30 PM AND 2022.