Feb 01, 2022 Finance and Audit Committee 2-1-22

[00:01:08]

DID HE, SEEDS ARE A LITTLE MORE EXPENSIVE, FREE WATER, FREE WATER.

IS IT

[I. CALL TO ORDER]

UM, THANK YOU EVERYBODY FOR TAKING THE TIME TO BE HERE TODAY.

WE'VE GOT AN INTERESTING BUSY AGENDA FOR TODAY.

FIRST OF ALL, I SEE.

WE HAVE SOMEONE TO TAKE NOTES.

WE HAVE, KATHLEEN IS REMOTELY TAKING NOTES.

OKAY, GREAT.

YEAH, WE'LL TAKE HERE.

WE HAVE A QUORUM.

WE HAVE ALL FIVE BOYS, SO WE HAVE PERFECT ATTENDANCE.

THE NEXT ITEM IS ELECTION OF OFFICERS.

I GUESS WE DO

[II. ELECTION OF OFFICERS]

AND I BELIEVE THE THREE OF US HAVE BEEN APPOINTED THIS YEAR TO THE COMMITTEE.

SO THE NEXT STEP IS TO ELECT THE OFFICERS FOR COMING HERE.

SO AT THIS POINT, I'LL OPEN UP THE FLOOR FOR NOMINATIONS, FOR CHAIRMAN OF THIS COMMITTEE CHAIR ON THE COMMITTEE.

WE MOVED INTO SECOND.

DID I SERVE ANOTHER TERM AS CHAIRMAN FOR THAT? ARE THERE ANY OTHER, ANY OTHER NOMINATIONS FROM THE FLOOR? ALL RIGHT, WE'RE GOING TO ENTERTAIN A VOTE ALL IN FAVOR, SIGNIFY BY SAYING AYE.

AYE.

ANY OPPOSED? ANY ABSTENTIONS? OKAY, SO DONE.

NOW I NEED A VICE CHAIRMAN.

UH, AT THIS POINT I'LL OPEN UP THE FLOOR TO NOMINATIONS FOR VICE CHAIRMAN.

THIS COMMITTEE SHARON I'M AN EIGHT, 10 SHARP AS VICE CHAIR NOMINATED BY SECOND.

ANY OTHER NOMINATIONS FROM THE FLOOR, SEEING NONE OF APPOINTED TO A VOTE ALL IN FAVOR, SIGNIFY BY SAYING AYE, ANY OPPOSED ANY ABSTENTIONS? WE HAVE A LEADERSHIP TEAM FOR COMING HERE.

THANK YOU FOR SERVING AS A TOUGH CAMPAIGN.

YOU CAN, I'LL TAKE DOWN THE YARD SIGNS NOW FOR MY CAMPAIGN VERY MUCH FOR THAT.

OKAY.

NEXT ITEM ON THE AGENDA IS THE APPROVAL OF MINUTES FOR THE NOVEMBER 23RD

[III. APPROVAL OF MINUTES FROM NOVEMBER 23, 2021]

UH, THEY'VE BEEN DISTRIBUTED IN ADVANCE OF WHAT'S HAD A CHANCE TO REVIEW THEM.

ARE THERE ANY ADDITIONS, DELETIONS, OR CORRECTIONS FOR A MINUTES HEARING NONE.

I'LL ENTERTAIN A MOTION TO APPROVE THE MINUTES, UH, MOVED TO BE APPROVED THE MINUTES.

SECOND, SECOND, ALL IN FAVOR, SIGNIFY BY SAYING AYE MINUTES ARE APPROVED.

THANK YOU VERY MUCH FOR THAT.

THE NEXT ITEM ON THE AGENDA IS THE SECOND

[IV. FY2022 2ND QUARTER PROJECTIONS]

UM, AND THAT'S YOU GOING TO WALK US THROUGH THE SECOND QUARTER THREE PROJECTIONS AND LET US KNOW WHY THE LIGHTS ARE STILL OUT HEATING AND AIR CONDITIONING STILL WORKS.

UH, RIGHT NOW WE'RE PROJECTING APPROXIMATELY A MILLION DOLLARS IN REVENUE A YEAR, VERY SIMILAR TO WHAT'S BEING PROJECTED IN THE FIRST QUARTER.

UM, THE REVENUES ARE RUNNING THROUGH, UM, AND, AND THE EXPENSES ARE AS WELL.

I WILL REMIND EVERYBODY ABOUT THE EXPENSES.

SO FOR FYI, 22 THINGS WERE GETTING VERY EXPENSIVE.

THE COSTS ARE GOING UP.

UM, SO I DO EXPECT TO SEE SOME SIGNIFICANT EXPENDITURE INCREASES OVER THE NEXT

[00:05:01]

UM, YOU KNOW, OF COURSE NOBODY HAS A CRYSTAL BALL.

WE WON'T KNOW UNTIL THEY COME IN, BUT WE'RE SEEING THINGS GO UP.

VEHICLES ARE GOING UP, GAS IS GOING UP WHEN WE PUT ANYTHING OUT FOR BID, IT'S GOING UP, ANY KIND OF CONSTRUCTION.

SO, UM, WHILE RIGHT NOW WE'RE LOOKING PRETTY GOOD.

I DO JUST WANT TO REALLY TAKE A HARD LOOK.

I GET TO THE THIRD QUARTER BECAUSE I THINK WE ARE GOING TO SEE SOME, SOME ROUGH RISES.

I DON'T THINK IT'S GOING TO BE A SIGNIFICANT ENOUGH THAT IT'S GOING TO CHANGE ANYTHING DRAMATICALLY, BUT I THINK SOMETHING WE NEED TO KEEP AN EYE ON.

ALSO JUST WANNA REMIND EVERYBODY WE BUDGET FOR THIS, UM, HIGHER THAN OUR DEBT PAYMENTS HAVE HISTORICALLY BEEN.

WE, WE BUILD A CUSHION IN THERE AND THAT WAY WE'RE COMFORTABLE AS THE DESK, YOU KNOW, AS THAT GOES BY YOU'RE HERE, WE HAVE A CUSHION THIS YEAR WITH THE DEBT THAT WE'RE ISSUING THAT IS GOING TO WIPE OUT OUR CUSHION.

SO WE ARE GOING TO NEED TO BE AWARE OF THAT IN THE BUDGET PROCESS, THAT WE'RE NOT GOING TO BE NECESSARILY BUDGETING A $3 MILLION CUSHION FOR OUR DEATHS, INCREASING A LITTLE OVER $3 MILLION.

SO JUST SOMETHING TO THINK OF FOR AND NOT TO INTERRUPT.

AND FOR THOSE THAT ARE FOLLOWING ALONG, IT'S ON PAGE SIX OF YOUR PACKET, UM, ACTUALLY PAGE 90, THE BOARD PACKET, BUT PAGE SIX OF YOUR FINANCE, THOUGHT IT BACK.

IT IS THE SECOND QUARTER UPDATED NUMBERS.

AND I THINK MATT, JUST TO FOLLOW ON WHAT YOU WERE JUST TALKING ABOUT, THE BOTTOM LINE SURPLUS THAT YOU SEE IN THERE, A PORTION OF THAT IS FROM THE DENTAL SERVICE LINE, WHICH SEE IF I CAN FIND THE DENTAL SERVICE LINE IT'S A UNDER, WELL, IF YOU GO INTO EXPENDITURES, YOU'VE GOT CURRENT DEBT SERVICE CATEGORIES.

YOU GO TO THAT SERVICE CATEGORY, YOU SEE A BUDGET OF 3.6, THE ACTUAL 1.5 FOR A SURPLUS TO THEN TWO DROPS DOWN TO THE BOTTOM LINE SURPLUS THAT WON'T BE THERE AGAIN NEXT YEAR, BECAUSE WE WERE HEARING THAT A LITTLE BIT LATER, THEY WERE DIVERSIONARY ADDITIONAL DEBT THAT WOULD ACTUALLY EXCEED THAT BUDGET LINE ITEM SO THAT SURPLUS WILL DISAPPEAR.

SO DON'T GET TOO COMFORTABLE WITH WHAT YOU SEE AS A BOTTOM LINE.

DOES THAT MAKE SENSE? NO, THAT IS ABSOLUTELY FINE.

UM, WE ARE MANAGING RIGHT NOW STILL A 28% OF THE SIDE FUND BALANCE.

UM, OUR TARGET IS 25.

WHAT REPORT, WHAT BRETT, RIGHT? THIS MOMENT OR 20% AGAIN, THE END OF THE YEAR, UM, YOU KNOW, SUBJECT TO CHANGE DEPENDING ON WHAT HAPPENS DURING QUARTER.

YEAH.

PERHAPS WE COULD INDICATE THAT THE 25 IS NOT NECESSARILY NOT NECESSARILY TARGETED SOPHIE DIVERGE FROM THAT IT'S AN ERROR STATE, THAT'S A TARGET MINIMUM AS OPPOSED TO A TARGET TARGET.

SO WE'RE NOT SURE WE'RE TRYING TO EXCEED FRACTURED IT, LABEL IT AS A TARGETED MINIMUM OR SOMETHING.

THAT WAY FOLKS WILL KNOW IF YOU'RE OVER.

IT'S NOT A BAD THING.

WE CAN CHANGE THAT.

THAT'S REALLY ALL I HAVE ON THIS ONE.

REVENUE REVENUE, REVENUE STABILIZATION FUND IS FULLY FUNDED AT 300% OF THE BUDGET.

AND THEN OF COURSE THE DEBT SERVICE POLICIES THAT WE SEEN THERE, UH, UH, THE POLICY OF 10%, AGAIN, AS A POLICY MAXIMUM, UH, NOT SOMETHING THAT WE'RE TARGETING, BUT A POLICY MAXIMUM.

AND THEN CURRENT ACTUAL IS DOWN THREE.

YOU COULD PERHAPS CHANGE THAT LABELING AS WELL.

I CAN DO THAT.

AND IT IS AT THREE, IT WILL, OF COURSE INCREASE, UM, WITH THE DEBT THAT WE ARE ISSUING, BUT IT WILL STILL BE BELOW.

SURE.

CAN YOU HELP ME UNDERSTAND, UM, JUST EDUCATE ME IN MY THIRD YEAR ON THIS COMMITTEE, BUT, UM, WHEN I LOOK AT THE UNASSIGNED FUND BALANCE OF 19.9 MILLION VERSUS A 42, THAT'S A LOT MORE THAN 20%.

HOW DID WE ARRIVE? SO WE WANTED TO KNOW WHAT A DOLLAR FIGURE OF LIKE, WHAT DOES THAT 3% OF EXCEEDING TARGET AND THE DOLLAR FIGURE? HOW WOULD WE CALCULATE THAT? I APOLOGIZE IS TARGETED PER POLICY, WHICH IS THAT IT IS, UM, WHAT PERCENTAGE OF IT IS IT OF THE SUBSEQUENT YEAR'S BUDGET? SO IT'S NOT 28% OF THE TOTAL ON BALANCE IS 28 TARGET.

OKAY.

SO LET'S NOT HAVE THE 42 OF THE SIGN, 19 MILLION.

IT'S NOT THAT, IT'S WHAT WE'RE ABOUT WITH THEM.

IT'S WHATEVER WE'RE BUDGETING.

SO, SO THAT'S WHY YOU DON'T REALLY KNOW THE TRUE NUMBER UNTIL YOU GET TO KNOW WHAT THE NEXT YEAR'S BUDGET AS YOUR BUDGET GROWS, OF COURSE, TO MAINTAIN THAT PERCENTAGE BECAUSE IT'S A MEASURE OF YOUR CUSHION AGAINST YOUR TOTAL EXPENDITURES.

UM, SO YOU MENTIONED THAT OUR REVENUES WERE SEEING, COMING IN ABOUT A MILLION DOLLARS TO 1.3 AND WE WERE LIKE 900, SO ALMOST HALF A MILLION DOLLARS INCREASING.

OKAY.

THAT'S, THAT'S A, THAT 1.3 IS OFF ON THE FINAL

[00:10:01]

THE LAST TWO YEARS, WE'VE DONE SOME UNUSUAL THINGS WITH THAT.

WHEN WE COVID FIRSTHAND, WE CUT REVENUE EXPECTATIONS BY 5%.

AND SO THE NEXT YEAR THAT THAT YEAR, IT ACTUALLY CAME IN CLOSE TO OUR ORIGINAL EXPECTATIONS.

AND SO THEN WE GREW THAT FOLLOWING YEAR.

SO I DID THREE OR 4% OFF OF THAT ACTUAL, AND THEN WHEN YOU COMPARE THAT TO A BIG INCREASE, A SMALLER INCREASE OFF THE ORIGINAL EXPECTATION WAS JUST THAT WE'VE CUT THE BUDGET ANTICIPATION.

SO IT LOOKED LIKE A LITTLE MORE DRAMATIC INCREASE.

SO AS 20, 20 AND 2021 RUN OFF, YOU'LL START TO GET BEHIND OR PAST SOME OF THOSE UNUSUAL CUTS AND INCREASES AND PERCENT CHANGES TO A MORE NORMAL SITUATION.

NORMAL IS GONNA LOOK LIKE, UH, QUESTIONS FROM MARYANNE, ANY QUESTIONS SO WE CAN KEEP THE LIGHTS ON FOR ANOTHER QUARTER, THIRD QUARTER, WHERE YOU SAID IT WOULD BE REFLECTIVE OF ACTUAL COSTS AND EXPENSES.

THANK YOU FOR THAT UPDATE.

IF IT IS LOWER QUESTIONS, WE'LL GO AHEAD AND MOVE TO THE NEXT ITEM ON THE AGENDA.

[V. BUDGET & APPROPRIATE $80,000 TO THE CIP FOR DISTRICT 2 LAND PURCHASE]

THERE HAVE BEEN SEVERAL APPRAISALS THAT HAVE, UM, BEEN DOUBLED ON THE LAND THAT WE'RE LOOKING AT.

AND COMBINATION OF THE ADM IS 3 25 WILL BE WHAT WE NEED.

WE BELIEVE IT'S HOPE PURCHASE THE CORNER LOT.

UM, AND THEN A LOT BEHIND IT TO DR.

BOWLES IT'S 3 25.

STILL TAKE IT NOW.

YEAH, WELL, WE HAVE A COUNTER OFFER FROM THE OWNER AND I'M WORKING WITH HIM ON IT.

GET INTO THE DETAILS SINCE IT'S A REAL ESTATE TRANSACTION, BUT SO THIS IS FOR 80 PLUS 3 25 ADDING TO THE 3 25.

WE'RE STILL LOOKING AT IT'S A TOTAL TOBACCO AND WE'VE ALREADY ACTUALLY SPENT SOME MONEY DOING THE DUE DILIGENCE.

SO WE'VE ALREADY HAD THE ENGINEERING STUDIES.

SO THAT 3 25 IS NOT ALL THERE ANYMORE.

SO THIS SHOULD GIVE US ENOUGH, VERY INTERESTED IN HAVING A FIRE STATION, DISTRICT TWO FOR QUITE SOME TIME.

UH, THERE'S ACTUALLY A TOTAL OF THREE BUDGET ITEMS THAT THIS COMMITTEE WILL BE ASKED WHETHER THEY WANT TO, OR NOT RECOMMEND TO THE BOARD OF SUPERVISORS FOR APPROVAL AND REPORT.

THIS IS THE FIRST ONE.

ARE THERE ANY ADDITIONAL QUESTIONS ON THE FIRST ONE? UM, WE CAN PROBABLY TAKE THESE AS A GROUP IF WE WANT IT TO THIS DAY ONE AT A TIME.

AND ONE THING I WOULD SAY, IF YOU DON'T WANT ME TO CHECK FOR THIS SPECIFICALLY, UM, IT'S BEEN VERY, WE'VE LOOKED AT SEVERAL DIFFERENT, UM, PARCELS, AND THIS IS THE MOST FAVORABLE FOR THE CHIEF OF THE LOCATION FOR ACCESS TO WHERE WE NEED TO GET THE MOST.

YEAH, THAT GENERAL AREA SEEMS TO BE RESTAURANT, PROBABLY NOT ANY BETTER PRICE, PROPERTY AVAILABLE, BETTER PRICE AT A PRICE.

I SAID, SIMILARLY PRICED AN INTEREST IN THIS PROPERTY.

I DO NOT EVERYTHING.

OKAY.

AND THEN THE SOURCE OF PHOTOS, UH, ASSIGNED, OKAY.

IF THERE'S ANY OTHER QUESTIONS ON THE 18TH ENTERTAIN A MOTION THAT WAS TO EITHER APPROVE OR TO RECOMMEND IT TO RECOMMEND I MADE IT THAT, UH, WE, WE, UH, APPROVED, UH,

[00:15:01]

WE'VE ALWAYS THOUGHT THAT.

ALL RIGHT.

THEN I ADMIT THAT AND SAY THAT WE HAVE APPROVED THE RECOMMENDATION OF $80,000.

OKAY.

MOVE TO RECOMMEND APPROVAL TO THE BOARD OF SUPERVISORS.

YES.

FOR THIS APPROPRIATION, IT'S BEEN MOVED IN SECOND, ALL IN FAVOR, SIGNIFY BY SAYING AYE.

YES, WE HAVE SECTIONS.

WE WILL RECOMMEND TO THE BOARD, THE APPROVAL OF HAITI, UH, NEXT ITEM, NUMBER SIX ON THE AGENDA.

SO 200,000

[VI. BUDGET & APPROPRIATE $200,000 TO THE CIP FOR BROADBAND INITIATIVES]

THIS IS ASSIGNED FOR BALANCE AS WELL.

UM, BACK IN 21, UM, USDA AWARDED A CONTRACT TO FIREFLY TO CONNECT RURAL COUNTIES TO BROADBAND, UM, VISUAL COUNTY PLEDGED $200,000 TOWARD THIS EFFORT.

THE TOTAL COST OF OUR PROJECT IS 3.6, THREE 75 MILLION OF THAT.

WE PLEDGED 200,000 TO 200 IS ASSIGNED, AND THIS IS JUST US APPROPRIATING THE 200,000.

SO, AND THIS IS ALL PART OF THE BIGGER PROJECT, BUT THIS IS JUST A PIECE OF IT JUST COME THROUGH NOW WHERE THEY WANT THEIR 200,000.

THIS WAS ALL DECIDED BEFORE WE WENT INTO THE EVEN BIGGER PROJECT.

SO THE 200,000 AS A SIGN ON BALANCE THAT WE ASSIGNED A COUPLE OF YEARS AGO TO MATCH THIS GRANT.

THE OTHER 3.4 IS A WHOLE NOTHER DEAL AND WE HAVEN'T APPROPRIATED IT YET.

AND THAT INCOME FROM ARPA MONEY, WE COULDN'T, WE LOOKED INTO IT, BUT COULD NOT USE OUR OWN MONEY FOR THIS 200 BECAUSE OF THE WHOLE SUPPLANTING ISSUE AND EVERYTHING.

SO, UM, BUT THIS IS PART OF THE WHOLE BIG PICTURE, WHICH IS FOR ME, BROUGHT BROADBAND TO WESTERN AS YOU GO.

YEAH, FIREFLY WANTS THERE.

THEY'RE MATCHING MY END.

HOPEFULLY THAT MEANS MORE PROGRESS IN THEIR CHAIR.

THERE'S BEEN SIGNIFICANT INTEREST IN DISTRICT TWO HEAVY BROADBAND, BROADBAND, UBIQUITOUS COVERAGE POSSIBLE BEFORE, UM, THOUGHTS OR QUESTIONS ON THE 200,000? I JUST CLARIFY.

CAUSE I, I THOUGHT THE TOTAL PROJECT WAS 3.4.

WE HAD ALREADY ALLOCATED 500 PREVIOUSLY LAST YEAR.

SO IT'S 3.6 SEEMS TO BE A COMPLETELY NEW NUMBER.

YOU KNOW, WE'LL HAVE TO GET PAUL TO ANSWER THOSE QUESTIONS.

SO I THINK WE'LL HAVE THAT ANSWER THOSE QUESTIONS IN THE BOARD MEETING.

UH, CAUSE IT WAS A 2.8.

YOU CAN HAVE THE 500 THAT WE ALREADY ALLOCATED BREATH.

THREE, FOUR ISH.

YEAH.

200 SET ASIDE.

SO I DON'T KNOW WHERE THE 500 NUMBER CAME FROM THAT A NUMBER I HAD, I DON'T RECALL HEARING.

UM, THE 3.4 WAS THE NUMBER HE CAME UP WITH COUPLE MONTHS AGO.

SO THIS IS, THIS IS MATCHING NUMBERS TO THE DEPARTMENT OF AGRICULTURE, RIGHT.

AND THIS IS THE GRANT.

WE DIDN'T THINK THEY WERE GOING TO GET.

THEN THEY GOT TURNED DOWN AND THEN THEY'D BE, DID IT.

AND YEAH, THEY, THEY DIDN'T GIVE HIM THE FULL GRANT, BUT THEN THEY GAVE HIM A SECOND CHANCE AND THEY GOT A SECOND CHANCE, MUCH SMALLER.

MAYBE THAT'S WHERE THE 500 CAME FROM.

AND THEN NOW IT'S ONLY 200, I DON'T KNOW.

UM, BUT DETAILS OF THE GRANTS, WE'LL FIGURE IT OUT.

I DON'T REMEMBER THE 500 NUMBER.

THE 200.

YEAH, I REMEMBER IT WAS 20.

AND THEN THERE WAS, WE HAD MAYBE FOUR, MAYBE 500,000, BUT THEN THAT BROUGHT THE TOTAL NUMBER TO 3.4.

SO I'M JUST CURIOUS WHY THIS NUMBER? NOT THAT WE'RE NOT.

WELL, THE 3.6 NUMBER IS 200 POINT.

I KNOW THAT I'D UNDERSTAND.

WE JUST KEEP FINDING $200,000 TO ADD UP.

IT'S NOT A SCRIPT.

THAT'S A VERY DETAILED BREAKDOWN.

I WANT TO HIT THE BRAKES AND I JUST WANT TO MAKE SURE YOU'RE WE DON'T, WE'RE SIGNING UP FOR ALRIGHT, DISCUSSION,

[00:20:02]

OR THEY BROUGHT ME TO THE PANTRY.

SECOND, MOVING SECOND, ALL IN FAVOR, SIGNIFY BY SAYING AYE, ANY PHONES NIGHT AND EXTENSIONS.

HE WAS UNANIMOUS IN FAVOR OF RECOMMENDING APPROVAL TO THE BOARD.

UH, LAST, UH, BUDGET APPROVAL OR APPROPRIATION ITEMS. THE LAST, THIS IS THE

[VII. BUDGET & APPROPRIATE $14,322 TO THE CIRCUIT COURT CLERK’S OFFICE FOR THE LIBRARY OF VIRGINIA GRANT]

COURT IS $14,372.

IT'S FOR RECORD PRESERVATION.

THEY GIVE US EVERY YEAR, THERE IS NO MATCH TO US AND IT ALLOWS THEM TO DIGITIZE RECORDS TO GET THEM PRESERVE THE DEEP BOOKS, GET THE BOOKS.

UM, THE DIGITAL IS DIGITIZED.

UM, IT IS A REIMBURSEMENT GRANT.

SO AS THEY PAY TO HAVE THIS SERVICE DONE, THEN WE GO BACK AND DO SOME OF THIS.

SO IT'S A PASS THROUGH.

WE DON'T KNOW.

WE JUST NEVER KNOW HOW MUCH IT'S GOING TO BE.

THEY DON'T KNOW HOW THEY ALLOCATED.

WE USUALLY JUST PASS.

IT ALL SEEMS PRETTY STRAIGHTFORWARD.

YEAH.

MISREPRESENTING OUR FRIEND TO THE WEST OF ME.

THERE'S NO STRINGS ATTACHED TO THIS BRAND NEW.

YEAH.

YES, EXACTLY.

WHAT IS, UM, BUT NO FURTHER DISCUSSION ON THE MOTION TO RECOMMEND THE BOARD FOR APPROVAL.

I WAS CHAIRING THE COURT RECOMMEND FOR APPROVAL RESOLUTION BUDGETING AND PROPERTY, BUT I THINK IN APPROPRIATING $40,320 IN GENERAL FUNDS FOR THE LIBRARY FOR A SECOND, ALL IN FAVOR, SIGNIFY BY SAYING HI, THANK YOU FOR THAT.

UH, LET'S SEE.

[VIII. MR. PETERSON TO REVIEW INTERST RATE PROJECTIONS AND THE CURRENT ECONOMY]

UM, COUPLE OF THINGS, UH, I WANTED TO BRING, UH, BEFORE THIS COMMITTEE, UH, THE FIRST ONE IS A PIECE OF REALLY GOOD NEWS.

UM, IT'S ACTUALLY A HISTORIC EVENT THIS MORNING.

UM, THE COUNTY ISSUED $1,500 DIRECTLY IN THE CAPITAL MARKETS WITHOUT ASSISTANCE FROM THE STATE OR THE VRA OR ANY CASH COLLATERAL WE NEEDED.

WE WENT DIRECTLY TO THE CAPITAL MARKETS AND HAD A VERY SUCCESSFUL SALE.

THERE WAS A TOTAL OF 11 FIRMS THAT BID ON OUR BOMBS.

THEY SUBMITTED 31 BIDS, COMPETITIVE AUCTION PROCESS AND THE 15 MILLION.

SO AT A BLENDED DEAL OF 2.2, 8%, A LITTLE OVER TWO AND A QUARTER PERCENT.

SO AGAIN, DIRECTLY IN THE CAPITAL MARKETS BEEN NO HELP FROM ANYONE ELSE BASED ON OUR AAA CREDIT RATING.

NOW THE DIFFERENCE BETWEEN HAVING THAT AAA AND NOT YOU'VE TALKED ABOUT THIS BEFORE THE TOUCH TACOMA CREEK SERVICE DISTRICT IS DONE WITH NON-RATED COUNTY WITH NO CREDIT RATING WITH ABOUT $13 MILLION OF CASH, COLLATERAL PLEDGED AND THIS KIND OF DOCUMENTATION AND THE DEAL WE JUST SAW THIS MORNING, IT LOOKS LIKE THIS.

AND IT'S OBVIOUSLY A LOT LESS, THAT GOES INTO SOMETHING WHEN YOU HAVE A CREDIT RATING, AS STRONG AS WE DO.

AND WE ARE THE SMALLEST COUNTY IN THE COUNTRY WITH A AAA ACROSS THE BOARD.

SO NO OTHER COUNTY, OUR SIZE COULD GO DIRECTLY TO THE CATHOLIC MARKETS AND GET THE KIND OF INTEREST RATE WE JUST DID.

SO AGAIN, IT'S AN HISTORIC DAY FOR GOODSON, UM, BRINGS US INTO THE, INTO THE WORLD OF, UH, UH, FINANCIALLY ATTRACTIVE INVESTMENTS FOR THE INVESTMENT COMMUNITY ON A DIRECT BASIS, WHICH IS HUGE.

SO THAT, UM, WHAT WAS THE FIRST PIECE OF WHAT I WANT TO TALK ABOUT? UM, THE SECOND PIECE IS WE'VE ALL SEEN THE BUDGET THIS YEAR.

RUNNING AHEAD OF BACK OF THE ACTUAL WAS RUNNING AHEAD OF BUDGET OR AHEAD ON REVENUES, UH, PARVEZ FROM ASSESSMENTS GOING UP, UH, REAL ESTATE ASSESSMENTS, USED CARS, WHICH IS OVER HALF OF OUR REVENUE IS TIED TO THOSE INFLATIONARY PRICE INCREASES ACROSS THE BOARD, LOOKS HARD ASSETS.

SO WE LOOK LIKE WE'RE ON TRACK THIS YEAR TO FINISH UP A FAIRLY GOOD YEAR.

SO NOW THAT WE'RE MOVING INTO

[00:25:01]

THE AFFORDABILITY OF CARS AND HOUSES IS COMING UNDER SOME PRESSURE BECAUSE OF PRICE INCREASES.

AND NOW THE FEDERAL RESERVE HAS INDICATED THEY'RE GOING TO RAISE INTEREST RATES.

INTEREST RATES IS A BIG PIECE OF THE AFFORDABILITY FOR CARS AND HOUSES BECAUSE MOST PEOPLE BORROW TO BUY.

SO IF WE CAN GAIN SOME INSIGHT INTO WHERE INTEREST RATES ARE HEADED AND WE CAN GET SOME INSIGHT INTO THE TERMS OF WHERE THE AFFORDABILITY IS GOING TO GO AND THE DEMAND FOR THOSE DAYS, AND THAT WILL DRIVE THE PRICES.

SO ONCE AGAIN, CONTINUE AT 10% GOING FORWARD, GOING UP 10% GOING DOWN, WHERE ARE THINGS HEADED? SO ANY INSIGHT WE CAN GAIN INTO THAT INTEREST RATE ENVIRONMENT, THE AFFORDABILITY WOULD GIVE US SOME INSIGHT INTO WHAT THE BUDGET REVENUE MIGHT LOOK LIKE ON PHONE.

SO WITH THAT IN MIND, I'VE PUT TOGETHER A COUPLE OF PIECES OF PAPER.

I'LL TALK YOU THROUGH HERE TO GAIN SOME INSIGHT AND I CAN DIRECT YOUR ATTENTION TO THE FIRST, UM, FIRST TO THE CHART THAT LOOKS SOMETHING LIKE THIS IT'S TOWARD THE BACK.

THE HEADLINES THAT YOU'VE ALL SEEN IN THE FEDERAL RESERVE MIGHT START RAISING INTEREST RATES.

FOR THE FIRST TIME, THE FUND RESERVE IS MADE UP OF A BOARD OF GOVERNORS.

I WAS BOARD OF GOVERNORS MEETING EVERY SIX WEEKS.

AND WHEN THEY GET TOGETHER, THEY ALL ARE ASKED TO PUT DOTS ON A PLOT MAP TO WHERE THEY THINK INTEREST RATES ARE GOING TO BE IN THE FUTURE.

SO THIS IS THE ACTUAL FED GOVERNORS THAT ARE ACTUALLY INVOLVED IN MAKING THE TRADE DECISIONS TO TELL YOU, THIS IS THEIR BEST GUESS OF WHERE THEY THINK INTEREST RATES ARE GONNA GO.

THEY COME ON A FED RATE DOT PLOT AND YOU CAN SEE IN 2021, WE'RE DOWN NEAR 0, 0 2 A QUARTER AS THE CURRENT FED FUNDS RATE, YOU CAN SEE WHERE THE DOT PLOTS ARE GOING FORWARD.

AND SO THAT TWO YEARS FROM NOW IN 2024, THEY'RE UP AROUND TWO TO TWO AND A HALF PERCENT ON THE FED FUNDS RATE THAT HAS BEEN AN ZERO FOR YEARS.

THE FED IS TELLING YOU THAT THEY'RE PLANNING TO START RAISING RATES NOW.

AND THEIR TERMINAL RATE IS AROUND TWO TO TWO AND A HALF AS, AS WHERE THEY'RE GOING TO END UP.

SO WHAT DOES THAT DO TO AFFORDABILITY? AND WHAT DOES THAT DO TO A HOUSE PER PURCHASES AND CAR PURCHASES? IF WE GO TO THE NEXT CHART THAT LOOKS SOMETHING LIKE THIS, THIS WAS THE ACTUAL FED FUNDS RATE, LOOKING BACKWARDS WITH TIME.

OKAY? THOSE OTHER, THAT LAST DOT PLOT WAS GOING FORWARD.

THIS IS GOING BACKWARD IN TIME.

AND THIS SHOWS YOU THE ACTUAL FED FUNDS EFFECTIVE RATE FOR THE LAST, I DON'T KNOW WHERE IT IS.

15, 20, 25 YEARS BACK TO 1985.

AND YOU CAN SEE DIDN'T COME OUT OF THIS CHART.

WHAT YOU'LL SEE IS YOU SEE SOME PEAKS AND WHAT THAT IS IS THE FED RESERVE STARTS RAISING RATES AND THEY RAISED, THEY RAISED, THEY RAISED AT EACH MEETING UNTIL HE HIT A PEAK.

AND WHAT THIS DOESN'T SHOW IS, UM, ABOUT SIX MONTHS AFTER EACH ONE OF THESE PIGS, THERE'S A RECESSION BECAUSE WHAT THEY DO IS THEY RAISE INTERFACE TO SLOW THE ECONOMY.

THEY DO THAT TO THE POINT WHERE THE AFFORDABILITY DRIES UP, PEOPLE STOP BUYING AND THEN IT TAKES ALL THE PRESSURE OFF INFLATION AND THINGS COME BACK TO NORMAL.

AND THEN AFTER THAT RECESSION, UH, YOU SEE THE, AS SOON AS IT PEAKS, THEY START DROPPING IT AGAIN.

LET'S, UH, STIMULATE ECONOMIC ACTIVITY AFTER THE RECESSION.

SO THEY RAISE, RAISE, RAISE RECESSION, KIND OF, KIND OF CUT.

THEY CAN SEE FROM 2010 TO 2015, THEY LEFT THE ZERO RATE.

THEY STARTED RAISING 2015, A LITTLE BIT BY 2019.

AND THINGS STARTED TO SLOW DOWN TOO MUCH.

AND THEY STARTED TO CUT INTO RECESSION.

AND THEN IN 2019, WHEN THE PANDEMIC HIT, THEY CUT IT DOWN TO ZERO.

THEY LEFT IT THERE FOR THE LAST TWO OR THREE YEARS.

NOW THEY'RE TELLING US WHEN THE FIRST TIME THEY GOT TO START RAISING, IF YOU LOOK AT THE LAST PEAK IN 2019, THAT WAS AROUND TWO TO TWO AND A HALF.

AND THAT WAS ENOUGH TO CAUSE A RECESSION.

AND NOW THE FED DEBT PLOTS ARE TELLING US, THEY'RE GOING TO RAISE IT TO TWO TO TWO AND A HALF TO TAKE THEM TWO YEARS TO GET THERE.

BUT THAT'S WHERE THEY'RE HEADING.

SO WHAT THEY'RE TELLING YOU IS THEY'RE GOING TO START OFF THAT SLUMP AGAIN, YOU KNOW, RAISE QUARTER POINT, QUARTER POINT HALF POINT HALF POINT UNTIL YOU HIT THE TWO AND A HALF.

AT LAST TIME, THEY DID THAT.

THAT WAS ENOUGH TO PUSH US INTO A RECESSION.

NOW THEY'RE NOT LOCKED INTO THOSE DOT PLOTS.

THEY DON'T HAVE TO DO IT EVERY SIX WEEKS.

THEY CAN CHANGE THEIR BOUTS AND MOVE AROUND.

SO WE'RE NOT SAYING THIS IS GUARANTEED.

THIS IS GOING TO HAPPEN.

BUT IF THEY DO WHAT THEY SAID, THEY'RE GOING TO DO AT THEIR LAST MEETING, THEY WILL BRING THEM TO A LEVEL THAT LAST TIME THEY DID THAT PROMOTES THE RECESSION, FOLLOWED BY WHICH THEY'D LOWERED RATES.

NOW, THE REASON THEY DO THIS CYCLICAL STUFF IS THEY GOT A DUAL MANDATE, LOW UNEMPLOYMENT, AND A STABLE DIAL INFLATION ERODES.

THE VALUE OF ADOPT WHEN THEY LOWER INTEREST RATES IS TO STIMULATE THE ECONOMY AND GET US TO FULL EMPLOYMENT.

IF THAT'S WHAT THEY DID

[00:30:01]

PEOPLE WERE LOSING THEIR JOBS, BUSINESSES WERE CLOSED, THEY WERE FOCUSED ON EMPLOYMENT.

SO THEY CUT RATES TO ZERO LEFT A MAYOR FOR SEVERAL YEARS.

WELL, NOW THEY'VE LEFT THE MARIJUANA ENOUGH THAT WE HAVE NEAR FULL EMPLOYMENT.

UNEMPLOYMENT'S RUNNING AROUND THREE AND A HALF PERCENT NEAR, NEAR FULL EMPLOYMENT, BUT INFLATION IS RUNNING A 7% MATTER.

THEY JUST, THIS YEAR HAVE SHIFTED GEARS AND SAID, INSTEAD OF FOCUSING ON OUT OF FLORIDA, WE'RE GOING TO SHIFT GEARS AND FOCUS ON TACKLING INFLATION AND STABILIZING THE VALUE.

THAT'S WHY THE MARKETS HAVE SOLD OFF THIS YEAR, THAT, THAT VIOLENT SHIFT FROM ONE BAD DAY TO THE OTHER.

SO THIS MAY OR MAY NOT GIVE US SOME INSIGHT INTO WHERE THE RATES ARE HEADED AND WHAT THE LIKELY OUTCOME IS.

AND THAT MIGHT WORK ITS WAY INTO OUR BUDGET PROCESS AT SOME POINT.

SO LET ME JUST PAUSE THERE FOR A SECOND AND SEE IF THERE'S ANY QUESTIONS, ANYTHING I SAID SO FAR, EVERYBODY WITH ME.

OKAY.

OKAY.

AND THE LAST PIECE OF THAT IS YES, BUT IT'LL BE MULTIPLE CHOICE.

SHORT ANSWER THAT, UH, THE LAST CHART THAT I'VE PROVIDED AS WELL IS MORTGAGE INTEREST RATES ARE NOT TAGGED OFF OF THE FED FUNDS RATE.

THE FED FUNDS RATE, THE OVERNIGHT LENDING SHORT-TERM MORTGAGES ARE PRICED OFF AT 10, 15, 20 OR SO.

THIS SHOWS YOU FROM FREDDIE MAC WHERE THE MORTGAGE RATES HAVE BEEN, INTEREST RATES HAVE BEEN, YOU CAN SAY THEY BOUGHT THEM, UH, YOU KNOW, LAST SUMMER, UH, PEOPLE BOUGHT THEM FOLKS REFINANCE AND SAVE A LOT OF MONEY.

AND SO WHERE IS THAT GOING FORWARD? AND YOU CAN SEE RECENTLY THERE'S BEEN A DRAMATIC UPTAKE IN THE MORTGAGE MARKET.

AS THEY ANTICIPATE RISES IN INTEREST RATES, THE OVERALL TRADE ENVIRONMENT GOING UP NOW, THAT'S GOING TO AFFECT AFFORDABILITY AS WELL, DAMPEN THE DEMAND FOR, FOR HOUSES AND MAYBE PUT SOME, UM, SOME CAPS ON SOME OF THIS DRAMATIC PRICE INFLATION THAT WE'VE SEEN IN THE HOUSE PRICES.

SO HERE'S WHAT MORTGAGE RATES ARE.

AND HERE'S WHERE THEY'RE HEADED.

UM, YOU KNOW, WHERE THE FED SAYS THEY'RE HEADED AND YOU KNOW, WHAT HAPPENED LAST TIME THE FED DID, BUT THEY'RE SAID THEY'RE GOING TO DO.

UM, SO I DON'T KNOW IF THIS INFORMATION IS HELPFUL OR NOT, BUT AS WE STARTED THIS BUDGET PROCESS FOR ROUGHLY 23 AND THE QUESTIONS BECOME, ARE WE GOING TO HAVE ANOTHER GROUP YEAR AND HOW MANY MORE GOOD YEARS WE'RE GOING TO HAVE, AND WHAT'S NEXT, WHAT'S COMING AROUND THE CORNER.

THIS MIGHT GIVE US SOME INSIGHT INTO WHAT'S COMING AROUND THE CORNER.

JUST KIND OF START TELLING FOR AT ALL.

OR IS THIS A WASTE OF TIME OR THERE'S 3, 4, 5 DOUBLE RATE FROM TWO AND A HALF TO $5, YOUR MORTGAGE PAYMENT, I GUESS, FOR A LOT OF FOLKS HAVE NO, NO, NO.

ONE OF THE REASONS THEY, THEY LOWER RATES TO STIMULATE THE ECONOMY IS THEY TRY TO PULL FORWARD FUTURE DEMAND.

LIKE IF IT RAINS YOU'RE AT 5% AND YOU SAY, WELL, WHEN I GET THAT NEXT PROMOTION OR TWO, I'LL BE ABLE TO AFFORD A 5% MORTGAGE AND THEY CUT IT DOWN TO 40, GO HOME.

NOW I CAN AFFORD IT THAT.

SO THEY'RE PULLING AHEAD DEMAND.

SO WHEN YOU LOWER IT FROM FIVE TO FOUR TO THREE TO TWO, YOU'RE PLAYING HEAD MORE AND MORE DEMAND, THEN YOU GO BACK UP TO THREE, FOUR OR FIVE, THAT DEMAND HAS ALREADY BEEN PULLED AHEAD.

SO THERE IS NO DEMAND THAT YOU PULLED IT INTO PRIOR YEARS.

SO THEN YOU'VE GOT VERY LITTLE RESIDUAL DEMAND AT FIVE BECAUSE YOU JUST HAD TO, SO THERE'S NO DEMAND AT FIVE BECAUSE YOU'VE PULLED IT ALL AHEAD.

SO IS THAT INTERTEMPORAL SHIFTING OF DEMAND THAT CATCHES UP WITH YOU.

ONCE RATES START GOING BACK UP AND THAT'S WHAT CAUSES A RECESSION, THEN THEY HAVE TO RESPOND TO THE APPOINTMENT THAT FOLLOWS THEM AND CUT RATES AGAIN, 18% INTEREST RATES IN 82.

OKAY.

NEGATIVE AMORTIZATION.

SO THE BIGGER PICTURE TOO, WE JUST PRINT THAT 50 MILLION, WHICH WAS ABOUT HALF OF THE REFERENDUM AND HALF IS GOING TO BE A FEW YEARS OUT IN THE FUTURE.

IF YOU LOOK AT FED FUNDS RATE AND HOW IT TENDS TO DO A CYCLE, WE'RE IN THAT LIFECYCLE CYCLE NOW MAYBE TWO OR THREE, FOUR YEARS NOW, WE'RE BACK DOWN TO THE DOWN POT CYCLE RECESSION WITH LOWER RATES, TRYING TO STAY BY DEMAND.

THEY GO PRINT THE OTHER HALF MORE FAVORABLE ENVIRONMENT, BUT THE FIRST HALF WE WANTED TO GET BEFORE THAT SPIKE KEEPS GOING SO WELL, IT'S HER QUESTIONS ON ANY OF THIS WAS ANYBODY.

UM, SO I THINK, I THINK THERE WAS THIS CALLS AND I WERE CALLING UP FOR THIS GROUP COMPLEXITY IN THIS AND THAT.

NOT ONLY DO WE HAVE THIS, BUT I APPRECIATE STAFF, UM, HUMORING ME AND ALL MY QUESTIONS ABOUT ARE WATCHING THESE BILLS ARE WATCHING WHAT'S HAPPENING IN, IN, IN ENRICHMENT WITH THE TAX RATES, SALES TAX, GROCERY TAXES.

SO, UM, I THINK YOU'RE GOING TO HEAR TODAY FROM MR. DRUM RIGHTS, LEGISLATIVE AGENDA.

THIS BOARD HAS BEEN WORKING VERY HARD TO ENSURE THAT WE ARE SUPPORTING OUR ADMINISTRATION WHILE LIKE SENDING CLEAR MESSAGE THAT OUR TAX DOLLARS ARE OUR TAX DOLLARS.

WE SHOULD BE ABLE TO MAKE THE DECISION, BUT I APPRECIATE STAFF'S WILLINGNESS AT PER REQUEST TO CONTINUE AND TRY TO FIGURE OUT AND

[00:35:01]

SO I APPRECIATE THAT SOME OF THESE BILLS, I KNOW THEY'RE TENDED TO CUT TAXES AND THOSE PROBLEMS THE GOVERNMENT MADE, BUT AT THE SAME TIME, THEY'RE TAKING AWAY LOCAL CONTROL, WHICH IS ALSO A KIND OF A CONSERVATIVE PRINCIPLE.

SO I THINK IT'S JUST BALANCING THOSE THINGS OUT.

WE NEED TO FIGHT FOR, IT'S ADDED THAT COMPLEXITY WITH ONE OF THE THINGS WE HAVEN'T TALKED ABOUT IS THE INCREASE IN WAGES IN THIS STUDY THIS YEAR THAT WE'VE ASKED THEM FOR AN ENVIRONMENT AND LOOK AT, OKAY, CAN YOU USE YOUR, YOU MUST HAVE A LOT OF CRYSTAL BALLS AS YOU GUYS ARE USING TO FIGURE OUT, OKAY, THAT'S GONNA, YOU KNOW, AS WE HAVE THESE REQUESTS FOR POSITIONS, OKAY, WELL, THESE POSITIONS ARE GOING TO CALL THEM, YOU KNOW, THEY'RE GOING TO CONSTABLE, WE JUST DON'T KNOW HOW MUCH MORE, BUT TRYING TO ANTICIPATE THAT AS MUCH AS POSSIBLE WITH ALL THESE OTHER VARIABLES AND COME UP WITH A BALANCED BUDGET THAT HELPS US GROW AND GIVES US OUR CITIZENS AND SERVICES THAT NEED, YEAH, WE HAD A BRUSH WITH PEOPLE TAX, I GUESS, UPDATE THE COMMITTEE.

THEY, NEW ADMINISTRATION WAS GOING ELIMINATE THAT PEOPLE TAX THAT WOULD HAVE TAKEN A COUPLE MILLION OUT OF OUR BOTTOM LINE THERE, THE BILL WAS SET ON THE TABLE YESTERDAY.

SO IT'S BASICALLY THE DUDE THAT WAS GOING TO TAKE 1.2 MILLION.

I'VE BEEN AT 1.3 HITS THAT HAVE GONE THROUGH.

SO STAY TUNED.

I KNOW, I KNOW THEY'RE TRYING TO REIGN IN SOME OF THE RUNAWAY SPENDING IN SOME OF THE COUNTIES, BUT WHEN YOU CAST, IT REMINDS ME OF WHAT WE WENT THROUGH, THE FIGHT IN THE PROPER BILL, THE PROPER BILL WAS BROUGHT IN TO HELP CITIZENS IN LOCALITIES THAT WERE CHARGING ASTRONOMICAL ROSTERS.

WE WERE NOT, BUT WE CAN KIND OF GET SWEPT UP IN IT.

AND IT IMPACTS US MORE BECAUSE WE'RE SMALLER.

WE HAVE LESS ROOM TO, UH, MONITOR, SPEND TWO WAYS TO PULL FROM PROJECTS.

SO WHERE DOES THE SALES TAX MONEY THAT BILL WHERE'S THAT BILL STANDS, YOU KNOW? YEAH.

THEY REWRITE.

IT IS, I THINK IT'LL PROBABLY PASS SOME FORM OF, WE WILL PROBABLY PASS, CAUSE THAT WAS GOING TO TAKE A LOT OF MONEY THAT GOES TO THE SCHOOL.

THEY'LL TAKE 600,000.

UM, EVEN IF IT MAKE IT WHOLE, I THINK THE KIDS, IF THEY MAKE IT, THEY'RE GOOD, THEY'RE GOING TO MAKE US WHOLE FOR THE NEXT TWO YEARS AT THAT PART OF THE ALSO PASSES BECAUSE THE WHOLE BULLET LIKELY WON'T HAPPEN.

THEN THE LCI, THE LCI WILL KICK IN.

SO WE'LL ONLY GET 20% OF THAT WHOLE UNFUNDED MANDATE OR WITHDRAWAL.

YEAH.

RIGHT NOW WE GET A CLEAR, SORRY, FIND MY WHOLE HARMLESS.

UM, WE'RE GETTING A CLEAR 200,000 THAT DOESN'T REQUIRE A LOCAL MATCH JUST TO MAKE US WHOLE THIS YEAR.

SO IT'S NOT, IT DOESN'T AFFECT THE WHOLE YEAR.

RIGHT.

UM, BUT NEXT YEAR IT'S A BIGGER IMPACT.

RIGHT.

UM, BUT YES, IF THEY COULD CHANGE THE FORMULA.

SO INSTEAD OF ONE AND A QUARTER PERCENT OF THE TAXES GOES TO THE SCHOOL, THEY COULD CHANGE IT TO 1.5 OR SOMETHING LIKE THAT.

SO WE'RE STILL GETTING SALES TAX FREE AND CLEAR.

THAT WOULD BE WONDERFUL.

BUT, UM, AS SOON AS THEY START PUTTING IT IN THOSE STATE FORMULAS THAT WE ONLY GET 20%.

SO WE DON'T HAVE ANY BILLS THAT RESULTED GROUPS IN THE COUNTY GETTING MORE REVENUE.

SO HIS BILLS ARE ALL, HOW MUCH ARE THEY GOING TO TAKE OUT OF OUR BOTTOM LINE OR TOP LINE OR WHATEVER.

UM, AS LONG AS WE HAVE THE TREASURY GOOD RATE, UH, HOW OUR COLLECTION IS RUNNING, ARE WE RUNNING? UM, THEY'LL RUN IN STAPLE.

I MEAN, FOR THE 20, 21 TAX YEAR WHERE LIKE 98%, WE STILL, WHICH IS USUALLY WHAT WE ARE ABOUT THIS TIME, BOOTS ON CARS OR ANYTHING LIKE THAT.

NO, NO.

I'M VERY FORTUNATE WITH TAXPAYER'S ENGAGE LENDING THE MOST PART.

NOW WE SPEND MOST OF OUR TIME WITH THE OTHER 2%, BUT THAT'S ANOTHER STORY FOR ANOTHER DAY.

WELL, THANK YOU FOR YOUR EFFORTS ON THAT.

I'M SURE THE CITIZENS APPRECIATE YOUR EFFORTS TO TRY AND WORK WITH THEM.

UH, SHERIFF, UH, THANK YOU FOR JOINING US AS WELL.

AS LONG AS YOU'RE HERE, WE'RE TOUCHING ON SOME OF THE BUDGET STUFF WITHOUT GIVING AWAY THE TRADE SECRETS HERE.

I KNOW YOU USE A LOT OF THINGS THAT COST MONEY, AND MAYBE YOU'RE SEEING SOME OF THAT PRICING INCREASES THAT YOU CAN SHARE WITH US ON EITHER THE GASOLINE AND FUEL FOR RIDING AROUND IN CARS, THE PRICE OF REPLACEMENT VEHICLES, AMMUNITION, OR THINGS OUT THERE YOU'RE SEEING

[00:40:01]

WE WERE RECOMMENDED OR THE, UH, Y'ALL END UP SEEING IT AGAIN, CMV TO INCREASE IT.

EVERY FOUR OR EIGHT BARS YOU SEE OUT 85% OF IS WHAT ARE THE OKAY.

FIRE PRICE OF THE VEHICLES, WHICH IS A BIG NUMBER.

AND THEN THE FUEL THAT'S UP 50% OF THAT.

AND THEN AMY'S IN THE BELLY AND ALL THAT.

I'M SORRY, I'M SAYING THE AMMUNITION, UH, DELL DOING IMPRESSIVE.

WELL OVER A YEAR AGO, SUPPLY CHAIN.

YEAH.

WE'VE ORDERED THAT ORDER RECENTLY AND WE'RE HOPING TO GET IT IN A YEAR AND A HALF AND PRICING ON THAT.

IS THAT PRESSING, DRIFTING UP OR SUGGESTED OF THE SUPPLY CHAIN? THE AVAILABILITY WHERE PRICES ARE NOT AS EMBEDDED, IF YOU ARE, I GO OR THREE TOPS, YOU KNOW, WE GET A LITTLE BIT OF A DEAL, BUT IT'S STILL, IT'S STILL RIGHT.

OKAY.

ALL RIGHT.

WE'RE TRYING TO KEEP US UP TO SPEED UP CHILDREN GOING INTO BUDGET SEASON.

WE'LL HEAR FROM YOU MORE IN DETAILS THAT HERE WE HAD A LITTLE BIT OF THE BIG PICTURE.

WHAT YOU'RE SEEING IN TERMS OF THE DRIFTING PRICES.

WE ARE SEEING THAT CONSTRUCTION COST FOR A NEW SCHOOL THAT KIND OF BIGGER COMING DOWN.

LET'S PUT IT DOWN.

MAYBE THESE INTEREST RATE INCREASES WILL DAMPEN SOME OF THAT BIGGEST SUPPLY CHAIN AT SOME POINT WILL FREE UP CAUSE MORE SUPPLY.

YOU KNOW, YOU WANT THE SAME DEMAND, MORE SUPPLY PRICES BACK THEN.

SO WE'LL SEE THE CONSTRUCTION MARKET.

SO THOSE ARE, UM, WE'LL, WE'LL PUT OUT TO BID THE SUMMER PROJECT FOR PARKING.

SO WE'LL SEE, FEEL FOR THAT.

AND YOU GUYS ARE PUTTING OUT A SIMILAR ONE FOR YOUR ROAD, WHICH IS, HAS A LOT OF THE CONSTRUCTION PERIOD.

IS THIS LESS CERTAIN, I MEAN, YOU KNOW, TWO YEARS OUT OR WHATEVER, BUT WE'RE GOING TO, WE'RE GOING TO BE SEEING SOME REAL, REAL NUMBERS COMING IN, YOU KNOW, IN THE NEXT MONTH OR SO TO GIVE US A REAL FEEL FOR HOW MUCH WE'RE GOING TO GET HIT.

OKAY.

YOU KNOW, WE DON'T GET INTO MARKET TIMING, LIKE WHEN, TO EXACTLY THE RIGHT TIME TO TRY AND CATCH THIS WEATHER.

CAUSE I CLEARLY THINGS WERE STARTING TO SETTLE BACK DOWN AND YOU KNOW, IF THERE'S SOME TIME TO WIGGLE IT OUT, BUT YOU REALLY DON'T WANT TO GET INTO MARKET TIMING KNOW LET'S, LET'S TAKE CHANCES, BUT WE'LL HAVE MORE INFORMATION.

IT SOUNDS LIKE IN THE NEXT UPDATE MEETING REAL WORLD EXAMPLE OF PUTTING SOMETHING OUT TO BID AND SEE WHAT THE PRICES IT SAYS, COME IN TIME.

I THINK YOURS IS COMING IN SOONER THAN MINE FOR YOUR ROUTE.

YEAH.

AS YOURS IS OUT MINE ISN'T OUT YET.

IS THERE ANY OTHER,

[IX. OTHER BUSINESS]

OBVIOUSLY IT AFFECTS, YOU KNOW, VEHICLES.

WE HAVE THE ABILITY TO BUY IN STORE, LIKE WHAT IS OUR, WE HAVE ANY, WELL, WE HAVE A COMMUNITY'S OPTIONS, COMMODITIES OPTIONS TRADING WE DON'T REALLY HAVE THE STORAGE CAPACITY TO STORE MASSIVE AMOUNTS OF FUEL.

WE, WE GET REGULAR DELIVERIES TO THE, YOU KNOW, TO THE DIFFERENT TANKS THAT WE HAVE FOR THE STATIONS AND THAT KIND OF THING.

BUT THEY'RE, THEY'RE NOT EXCESSIVELY LARGE.

IN OTHER WORDS THAT WE CAN'T JUST BANK A BUNCH OF DEALS IF WE DON'T REALLY HAVE ANY WORK.

UM, WE DO HAVE A CONTRACT THAT DOES THE COOPERATIVE CONTRACTORS ON TRACK THAT WE WORK WITH THAT DOES LIMIT THE PRICE OF THE FUEL.

UM, WE'RE NOT PAYING RETAIL RATES, BUT AS RATES RISE, SO PATCHING FROM THAT.

AND THEN I REMEMBER WHEN THE PIPELINE WAS HACKED, GET HELP, GET A LITTLE AREA OF, ARE WE GONNA GET OUR DELIVERIES? SO SHE SINCE CHANGED COMPETENCE.

YEAH.

SO THE COMPANY THAT WE HAD, THEY WERE NOT GUARANTEEING US, BUT CORALS IS, UM, THAT WILL, I GUESS MY QUESTION IS, SHOULD WE MAYBE INVEST SOME TIME AND STUDYING, SHOULD WE INCREASE OUR ABILITY TO STORE MORE? YEAH.

THAT'S NOT AS MUCH A FINANCING ISSUE, BUT YOU'RE IMPORTANT SMALL DECK.

AND I THINK WE'RE LOOKING AT BUILDING A NEW FIRE STATIONS AND I'M NOT SURE HOW MANY REFUELING LOCATIONS WE HAVE IN THE COUNTY.

I KNOW WE'VE GOT A LARGE ONE AND COMPANY FIVE.

UM, BUT IF

[00:45:01]

SO MAYBE IF YOU STAND UP, YOU BUILD THE WEST CREEK.

UH, MAYBE WE HAD FILLING STATIONS IN THERE ON THAT BECAUSE I WOULD IMAGINE I HAVEN'T INVENTED, THERE'S PROBABLY SOME EMERGENCY FUNDS AS WELL, BUT JUST TO GET STORAGE THAT HAVE I DON'T AND WE HAVEN'T, I GUESS CAPRICIOUSLY HAVE A POLICY AROUND IT.

YEAH.

MAYBE DURING THE BUDGET SEASON, WE SHOULD VISIT THAT WITH BOTH THE SHERIFF AND THE CHIEF FIRE CHIEF, BECAUSE THE AMBULANCES ARE MAKING BOTH IN THE SCHOOLS, YOUR MAINTENANCE PROMOTION OF SOME CAPACITY.

BUT ANYWAY, UH, UM, BUT WE USE THE CENTER HERE AND THEN WE HAVE TWO SMALL FUEL TANKS AT RANDOLPH AND BIRD.

OKAY.

YOU KNOW, AS, AS WE THINK ABOUT THIS AND DEVELOP THIS MORE LATER, THE MORE VEHICLES WE HAD WERE ANY VEHICLES EVER HERE.

RIGHT, RIGHT.

I'M SORRY.

I'M SORRY.

WE'RE HANDING VEHICLES EVERY YEAR FOR THE SHERIFF'S DEPARTMENT FOR THE FIRE RESCUE RANTING VEHICLES EVERY YEAR.

IF WE'RE NOT ADDING STORAGE CAPACITY, RIGHT.

WE'RE SHOWING NAME, THE NUMBER OF DAYS SUPPLY WE HAVE GIVEN ME A MORE VEHICLES BURNING MORE FUEL, AND WE SHOULD AT LEAST KEEP PACE.

IF NOT EXPAND YOU CONTRACTING IT'S ALL MONETARY.

SO ONCE IT FALLS BELOW A CERTAIN LEVEL, THEY COME, YEAH.

I'M SAYING IN BATHROOM, IF THEY CAN'T COME, OUR NUMBER OF DAYS, SUPPLY IS SHRINKING WITH THE SAME TANK BECAUSE WE'VE GOT MORE DIFFERENT BIRDS.

SO I'D LIKE TO KEEP AT LEAST THE SAME, BUT THEY STILL HAVE TO REFILL AT A CERTAIN LEVEL.

THAT'S MY CONCERN RIGHT THERE A LITTLE SOONER.

WELL, I THINK WE'LL DO IT.

WE'LL TAKE A LOOK AT IT.

CAUSE WE DO HAVE FUELING A COMPANY SIX ALSO FOLKS OUT THERE CAN, CAN USE COMPANY SIX OR A YEAR.

OKAY.

WE WILL MAKE SURE ONE POINT WE HAVE PLANNED ON PUTTING FUELING STATIONS, UH, THE, UH, THE EMERGENCY CENTER IN WEST CREEK AND THAT KIND OF FELL THROUGH, UM, AT ONE POINT WE'RE PLANNING ON PROBABLY LIKE FOUR AMBULANCES AND SO ON.

AND THEN THEY STARTED PROVIDING THEIR OWN AMBULANCE SERVICE TO CARRY FORWARD TO OTHER LOCATIONS.

SO WE PULLED THAT OUT BUT LESS TEMPORARY AND I UNDERSTAND JUST SO I THOUGHT, WELL, I UNDERSTAND THAT WE HAVE PEOPLE THAT WILL FILL OUT, BUT IF THEY HAVE GAS, I'M ALSO THINKING MORE ABOUT THE PIPELINES BEING THROWN TO SHUT DOWN.

THEY MAY NOT HAVE GAS TO BRING US.

SO THE MORE ACID WE HAVE THE BETTER OFF WE DO PROTECT OUR CITIZENS.

RIGHT.

OKAY.

ANYWAY, WE'LL TALK ABOUT THAT LATER.

OTHER, UH, OTHER BUSINESS TO COME BEFORE THIS GROUP.

WELL, I GUESS PUBLIC COMMENT,

[X. PUBLIC COMMENT]

I'M GOING TO GO AHEAD AND ADJOURN THIS MEETING UNTIL 12:30 PM.

[XI. ADJOURNMENT TO 12:30 PM MAY 3, 2022]

THANK YOU FOR ATTENDING.