[I. CALL TO ORDER]
[00:00:04]
ALL RIGHT, I'LL GO AHEAD AND CALL THIS MEETING TO ORDER.
THIS IS THE BOARD OF SUPERVISORS, FINANCE AND AUDIT COMMITTEE MEETING FOR MAY 3RD, 2022.
I'D LIKE TO THANK EVERYBODY FOR COMING.
I SEE A LOT OF FAMILIAR FACES AROUND THE TABLE.
IS THERE ANYONE HERE FOR THE FIRST TIME? WE NEED TO INTRODUCE ADULTS TO SEE ANYBODY EVERYBODY'S FROM THERE.
WE'LL JUST CHARGE RIGHT IN THERE.
UM, FIRST ITEM OF BUSINESS MINUTES FROM FEBRUARY 1ST, 2022,
[II. APPROVAL OF MINUTES FROM FEBRUARY 01, 2022 (pg 2-3)]
THEY'VE BEEN DISTRIBUTED IN ADVANCE WHEN PAGES TWO AND THREE.AT THIS TIME, I'LL ASK IF THERE'S ANY ADDITIONS, DELETIONS, CORRECTIONS ON THE MINUTES, SEEING NONE.
I'LL ENTERTAIN A MOTION TO APPROVE THE MINUTES.
WE HAVE A SECOND TO MOVE TO THE SECOND, ALL IN FAVOR, SIGNIFY BY SAYING AYE.
ANY OPPOSED? ANY ABSTENTIONS? OKAY, SO YOU NOTICE I HAVE A REQUEST ON THE AGENDA TO MOVE ITEM FOR ITEM FOR FREE AND THEN PROCEED FROM THERE.
SO IF POSSIBLE, I'D LIKE TO DO THE AUDITS OR CONTRACT REVIEW.
IS THERE ANY OBJECTION? WE HAVE A CONSENSUS AROUND THAT MAY SEE.
YOU WANT TO GO AHEAD AND YEAH.
SO WHAT I WANTED TO BRING UP AS TWO DIFFERENT ITEMS, ONE, UM,
[IV. AUDITOR CONTRACT REVIEW]
A LOT OF TRANSITION THIS YEAR AND SOME EMPTY SEATS RIGHT NOW.UM, I DID DISCUSS WITH OUR AUDITORS OF THEM DOING SOME, UM, SOME WORK THAT THEY HAVEN'T DONE FOR US IN THE PAST IN TERMS OF PUTTING STUFF AND A REPORT TOGETHER.
UM, AND OF COURSE THEY, THEY ARE LIMITED WHAT THEY CAN DO BECAUSE THEY'RE THE AUDITORS.
SO THEY CAN'T DO THINGS LIKE THAT, BUT THEY SAID THEY WOULD BE WILLING TO HELP US OUT, UM, TO DO SOME EXTRA STATEMENTS.
UM, WITHIN THE ANNUAL REPORT, THEY WOULD LIKE US TO DO THE FUNDS STATEMENTS, WHAT WE CALL THE FUND STATEMENTS, BUT THEN THEY COULD DO SOME OF THE GOVERNMENT WIDE STATEMENTS FOR US.
AND THAT WOULD BE, AND THAT'S STUFF THAT'S NORMALLY DONE WITHIN THE FINANCE DEPARTMENT, BUT BECAUSE WE'VE BEEN MOANING A LITTLE SHORT, UM, RECENTLY, UM, SO I, I WOULD LIKE, YOU JUST YOU'RE OKAY TO DO THAT.
THEY WOULD PROVIDE YOU SOME EXTRA SERVICES THAT, UM, A CHARGE OF COURSE, UM, THEIR BASE IS $165 AN HOUR FOR EXTRA SERVICES.
UM, WHICH SOUNDS HIGH, BUT THAT'S WHAT IT TAKES TO GET PEOPLE NOWADAYS.
THEY'VE HAD A LOT OF, UM, TURNOVER IN THEIR COMPANY AS WELL.
SO THAT'S NOT LIKE A REASONABLE PLAN TO PUT TOGETHER TO JUST HELP OUT EXTRA HANDS KIND OF THING.
UM, ANY IDEA HOW MANY HOURS JUST APPOINTMENT BALLPARK? UM, MAYBE, GOSH, IT'S HARD TO SAY, BUT MAYBE TEXTURE HOURS, 10 TO 20, SO 10 HOURS, 170 UNDER DISCUSSION AROUND THERE.
I WOULD LIKE TO ADD, WE DO HAVE A, WE HAVE A 25, 8 CANDIDA FOR FINANCE DIRECTOR.
WE'LL BE ANNOUNCING THAT SHORTLY.
THE NEW PERSON WILL START ON YOU.
ONE IS THE PLAN, SO, AND THAT'LL HELP AS WELL.
SO, YOU KNOW, THIS IS NOT A, THIS IS WHAT WE NEED ON.
SO IF WE NEED THEM GRAY, NOT GREAT.
I'M LOOKING FORWARD TO MOVE ON.
UM, I HAVE ONE CONCERN I'D LIKE TO EXPRESS.
UM, IN THE PAST 10, 15, 20 YEARS AGO, THERE WERE SOME SMALL COUNTIES THAT DID NOT HAVE INTERNAL STAFF AND THEY ACTUALLY OUTSOURCED THE CLOSING OF THEIR FOLKS TO THEIR AUDITORS.
THEY WERE ASKED TO OPEN UP THEIR OWN WORK AND GATSBY HAS SINCE PASSED A PRONOUNCEMENT.
AND THAT'S WHY I SAID THEY, THEY, THERE ARE CERTAIN THINGS THEY CAN'T DO.
LIKE THEY CAN'T DO THE JOURNAL ENTRIES BECAUSE WE THAT'S, YOU KNOW, THEY, THEY AUDIT AND THEY LIKE, THEY WOULD LIKE US, LIKE I SAID, TO DO THE BASIC, WHAT THEY CALL THE BASIC FINANCIAL STATEMENTS.
AND THEN THEY WILL DO LIKE COMBINING STATEMENTS AND GOVERNMENT WIDE SIEMENS, WHERE BASICALLY YOU'RE JUST TAKING
[00:05:01]
THE NUMBERS THAT WERE ALREADY PRODUCED AND PUTTING THEM IN DOVER.I GUESS WHAT I'M ASKING US TO MAKE SURE THAT WE RUN THIS TO GROUND, CHECK IT WITH GATSBY, CHECK WITH LEGAL, WHOEVER YOU NEED TO CHECK WITH TO MAKE SURE THAT WHATEVER WORK THEY DO, IF THEY'RE GOING TO GO AHEAD AND APPLY THAT WORK, THAT IS OKAY AND LEGAL AND PROPER FOR THEM TO DO WORK.
AND THEY DON'T WORK BECAUSE THERE'S OBVIOUSLY A CONFLICT OF VETERANS THERE.
SO IF WE COULD JUST VERIFY ALL OF THAT, I HAVE NO PROBLEM WITH THE DOLLAR AMOUNTS.
WE'RE TALKING ABOUT THE FACT OF GETTING SOME HELP BECAUSE WE'RE SHORT STAFFED.
I HAVE NO PROBLEM WITH THE ISSUES.
I JUST WANT TO MAKE SURE INBOUND WHEN WE DO THIS, THAT'S ALL.
SO WE CAN RUN THAT TO GROUND THAT I THINK WE'RE IN GOOD SHAPE.
DOES THAT MAKE SENSE? YEAH, NO, THAT'S FINE.
DEBBIE CAN, OR KATHLEEN CAN SPEAK TO THE BACK.
THEY WOULDN'T DO ANY OF THE CROSS ANY LINES.
SO I HAVE FULL FAITH IN THEM, BUT WE WILL CHECK IT OUT TRUST, BUT VERIFY EACH BEST THAT THEY'RE GOING TO DO THE RIGHT THING.
CAUSE IT'S JUST NOT SURE THAT WE KNOW WHY THEY'RE ON SOLID GROUND.
AND THE OTHER THING I JUST WANTED TO MENTION IS THIS IS THE FIFTH YEAR OF THEIR AUDIT AND IT WAS A FIVE-YEAR CONTRACT.
SO, UM, WE WILL HAVE TO GO BACK OUT IN THE FALL, UM, ASSUMING THAT EVERYBODY'S IN THEIR SEATS AND THERE'S PEOPLE IN PLACE TO, TO DO THAT.
SO THIS IS FIFTH YEAR ALREADY.
AND I THINK MIDWAY THROUGH, WE ASKED FOR A CHANGE, SO DIFFERENT SET OF EYEBALLS, SO STUFF THE SAME, WELL, WE'LL BE GOING OUT AND WE'LL PUT YOU PUTTING OUT AN RFP.
SO WE'LL BE LOOKING AT ALL A LOT OF DIFFERENT FIRMS. MY EXPERT POINT IS WE HAVEN'T HAD THE SAME TEAM FOR THE LAST FIVE YEARS.
THERE'S BEEN A NEW TEAM, NEW SET OF EYES, RIGHT.
THIS COULD BE A TOTALLY DIFFERENT COMPANY.
SO, UM, ANYWAY, JUST TO LET YOU KNOW, THAT'S COMING UP, UM, AND THEN LET'S SEE, OKAY, NOW WE CAN PROCEED TO THE THIRD QUARTER
[III. FY2022 3RD QUARTER PROJECTIONS (pg 4)]
AT THE TOUGH NEWS OUT OF THE WAY, THE LAST TIME, UH, AND THIRD QUARTERS IN YOUR PACKET, UM, OUT PRESENTED AGAIN AT THE BOARD MEETING, UM, AND THERE WAS REALLY NOTHING.UM, SO YOU SAY OTHER THAN THINGS ARE GOING WELL, UM, REVENUES OVER BUDGET EXPENSES UNDER BUDGET, WE NEED AN OPERATING SURPLUS OF ALMOST 7 MILLION.
UM, AND THEN AFTER TRANSFERS, UM, LEAVES THE FUND BALANCE, UM, RELATIVELY FLAT AND THEN AT 41.5 MILLION, WHICH IS NOT A BAD NUMBER TO BE FLAT AT.
UM, AND THEN, UM, BELOW THAT YOU SEE THE POLICY, UM, GUIDELINES FOR FUND BALANCE AND, UM, THE DEBT SERVICE EXPENDITURES WERE WAY UNDER THERE ON THE SIGN FUND BALANCE.
AND, UM, THIS ALMOST LEADS IN THE SHOE, OUR NEXT DISCUSSION.
SO I, I WANT TO PASS OUT THIS AND I'M SORRY, I DON'T HAVE ENOUGH FOR EVERYBODY, BUT, UM, SHE CAN DO WITH WORK MAGIC WITH THOSE COPIES.
SO, SO ON THE VERY LAST COLUMN OF THIS, UM, EXHIBIT THAT I'M PASSING OUT IS WHAT I JUST PRESENTED TO YOU THE ESTIMATE OF THIS YEAR, UM, RESULTS.
[V. FUND BALANCE]
UM, REVENUES MINUS EXPENDITURES GIVES YOU YOUR OPERATING SURPLUS AND THEN TRANSFERS IN AND OUT, UM, GIVES YOU YOUR CHANGE IN FUND BALANCE.AND THEN OF COURSE YOU TAKE WHATEVER YOU HAVE AT THE BEGINNING AND EITHER ADD OR SUBTRACT FROM THAT TO GET YOUR ENDING FUND BALANCE.
AND THEN BELOW THAT, I GAVE A LITTLE HISTORY OF, OF HOW WE DIVIDED UP ALL THE DIFFERENT, UM, BY BALANCES.
AND THE REASON I WANTED TO DO THIS IS CAUSE I KNOW WE'RE GOING TO NEXT DISCUSS SOME OF OUR POLICIES.
SO, UM, I WANTED TO SHOW WHAT WE'VE DONE HISTORICALLY AND, AND HOW IT'S, UM, WORKED GIVEN OUR POLICIES ALSO WANTED TO POINT OUT THAT BECAUSE OUR POLICIES ARE BASED ON A PERCENTAGE FOR FUND BALANCE ARE BASED ON A PERCENTAGE OF THE SUBSEQUENT YEARS BUDGET.
WHEN YOU HAVE A BIG BUMP IN BUDGET, A BIG GROWTH IN
[00:10:01]
BUDGET, LIKE WHEN YOU HAVE FOR THEUM, BUT THE BIG INCREASE IS IN THE UNASSIGNED FUND BALANCE.
WE GO FROM
SO I'M JUST USING ROUND NUMBERS, 21.9 MILLION.
SO THAT IS, UH, IS A HUGE INCREASE IN OUR UNASSIGNED FUND BALANCE DICTATED AGAIN BY OUR POLICY BECAUSE, UM, THAT WOULD PUT US AT ABOUT 27%, UM, ON ASSIGNED FUND BALANCE.
AND, UM, OUR MINIMUM IS 20% AND OUR TARGET IS 25%.
SO AS IN KEEPING WITH THE GROWTH OF THE BUDGET, YOU ALSO HAVE TO GROW THAT, THAT FUND BALANCE NUMBER.
SO, UM, WHAT I, UM, I'M GONNA HAVE AN EXTRA, SO BASED ON THIS YEAR'S PROJECTIONS AND WHAT WE'VE ALWAYS DONE IN THE PAST, UM, WHAT WE'VE BEEN ABLE TO DO IS BOND A LOT OF RCIP WITH CASH AND YOU CAN SEE ANYWHERE FROM SIX TO SEVEN AND A HALF, UM, MILLION DOLLARS IN, IN SPENDING ON THE CIP.
THAT'S BASICALLY BEEN DONE OUT OF OUR OPERATING SURPLUS WHILE AT THE SAME TIME BUILDING UP OUR FUND BALANCE.
SO, UM, THAT'S THE TRANSFERS, THE TRANSFERS OUT IS MOSTLY CIP, BUT, UM, IT'S OFFICE OF CHILDREN'S SERVICES AS WELL, BUT THAT'S USUALLY SIX OR $700,000 A YEAR, SO IT'S MOSTLY CIP.
UM, SO, UM, WE CAN GO AHEAD AND TALK ABOUT THE DIFFERENT POLICIES THAT WE ALREADY
[ii. FINANCE POLICIES (pg 6-16)]
HAVE THAT EXISTS CURRENTLY AND SEE IF WE FEEL LIKE THERE'S ANY CHANGES NEEDED TO THAT.UM, WHAT I'M TRYING TO SHARE WITH THIS IS THAT FROM MY POINT OF VIEW, THINGS ARE WORKING PRETTY WELL IN TERMS OF, UM, POLICIES, UM, YOU'RE, YOU KNOW, KEEPING WITHIN THE POLICIES AND BUILDING UP OUR FUND BALANCE.
AND, UM, SO I KNOW THERE'S GOING TO BE DISCUSSION AROUND IT, SO, SURE.
WELL, FIRST OF ALL, THANK YOU VERY MUCH FOR THAT.
BARBARA HAS A GREAT DAY THEN, AND THIS WAS VERY, VERY HELPFUL TO LEAD THIS DISCUSSION.
THIS WILL BE A LITTLE DIFFICULT TO DO THIS.
UM, SO IF I COULD JUST RECAP, UM, BARBARA MENTIONED THINGS ARE WORKING PRETTY WELL.
THAT'S PROBABLY AN UNDERSTATEMENT THEY'RE WORKING VERY WELL AND THERE ARE MANY AGENCIES WOULD AGREE WITH THAT.
AND A LOT OF IT IS THANKS TO BARBARA AND HER TEAM.
UM, SO IF YOU, IF YOU LOOK AT WHERE WE ARE NOW, WE HAVE A BALANCED BUDGET EVERY YEAR ON THE OPERATING SIDE AND BEEN GENERATING SMALL SURPLUSES EACH YEAR, WHICH IS HELPFUL AS WELL.
OUR DEBT IS VERY MANAGEABLE AT THIS POINT.
UM, AND OUR RESERVES ARE ADEQUATE CALFEE.
SO WE'RE IN A GOOD, VERY GOOD POSITION RIGHT NOW.
SO THEN THE QUESTION BECOMES, HOW DO WE AT LEAST MAINTAIN THAT POSITION GOING FORWARD? IF WE'RE IN A GOOD PLACE NOW, HOW DO WE STAY THERE AND NOT BACKSLIDE? SO THERE'S A CONCEPT OF DEPRECIATION.
AND I DON'T KNOW, MOST OF YOU PROBABLY KNOW WHAT DEPRECIATION IS AND BE APPRECIATED IN THE PRIVATE SECTOR.
IT'S WHAT THEY CALL A NON-CASH TAX SHIELD, BECAUSE YOU CAN EXPENSIVE, BUT I'VE SPENDING ANY MONEY AND IT SAVES YOU ON TAXES AND THE PUBLIC SECTOR.
YOU'RE NOT A TAX PAYING ENTITY.
SO TO APPRECIATE US, IT'S NOT AS IMPORTANT FROM A TAX STANDPOINT, BUT IT IS JUST AS IMPORTANT FROM A MAINTENANCE OF YOUR PHYSICAL PLANT AND YOUR ASSETS AND YOUR BRICK AND MORTAR, BECAUSE YOU DO LIQUIDATE EFFECTIVELY A PORTION OF YOUR FIXED ASSETS EVERY YEAR TO DELIVER THE SERVICES WE'RE DELIVERING.
SO EVERY YEAR THE KIDS GO TO SCHOOL, THE SCHOOL AGES, EVERY YEAR, YOU DRIVE SHERIFF, DEPUTY VEHICLES AROUND THAT VEHICLE NOW IS OLDER.
SO YOU'RE EFFECTIVELY LIQUIDATING YOUR ASSETS.
SO IN ORDER TO STAY WHERE YOU ARE, YOU NEED TO MAINTAIN OR REPLACE THAT DEPRECIATION.
NOW EACH YEAR, AND THAT'S CALLED CAPITAL SPENDING IN OUR CASES OF CIP OR INVESTMENT PLAN PROGRAM TO REINVEST AT LEAST THE AMOUNT THAT YOU'VE LIQUIDATED OR USE TO DELIVER SERVICES.
SO THAT PUTS YOU ON A SUSTAINABLE FOOTING
[00:15:01]
TO WHERE YOU CAN DELIVER THOSE SERVICES INDEFINITELY.SO THEN THE QUESTION BECOMES, HOW DO YOU FUND THAT DEPRECIATION EXPENSE AND THAT DEPRECIATION EXPENSE REINVESTMENT IS OUR CIP.
SO THEN THE QUESTION BECOMES, HOW DO YOU FUND THAT ANNUAL RECURRING APPRECIATION AMOUNT OF YOUR CIP? HOW DO YOU PAY FOR THAT SINCE IT'S NOT IN OUR OPERATING BUDGET, RIGHT? IT'S OUTSIDE OF OPERATING BUDGET.
SO IF YOU SIMPLY RUN A BALANCED OPERATING BUDGET AT THE END OF THE YEAR WITH ZERO CASH, THEN HOW DO YOU, HOW DO YOU REPLACE YOUR ASSETS? SO THAT'S THE QUESTION.
AND THERE'S AN ARGUMENT THAT COULD BE SAID THAT THAT ANNUAL DEPRECIATION EXPENSE SHOULD BE ON BUDGET SINCE YOU NEED TO REPLACE IT EVERY YEAR OR ELSE YOU'RE LIQUIDATING THE COUNTIES OVER TIME.
SO THERE'S SOME ARGUMENT THAT SAYS IT SHOULD BE IN YOUR OPERATING BUDGET JUST TO MAINTAIN.
AND I'M TALKING ABOUT THE ANNUAL OPERATING DEPRECIATION, NOT TELLING YOUR NEW SCHOOL OR, OR THAT'S JUST THE ANNUAL MAINTENANCE TO DELIVER SERVICES.
SO THERE'S AT LEAST THREE OR FOUR WAYS TO FUND IT.
AND ONE WAY IS YOU RAISE TAXES TO PAY FOR IT EACH YEAR.
AND THAT'S NOT A SUSTAINABLE MODEL BECAUSE YOU CAN'T RAISE TAXES FOREVER.
ANOTHER WAY IS TO USE RESERVES TO FUND IT.
THAT'S NOT A SUSTAINABLE MODEL BECAUSE YOU EVENTUALLY RUN OUT OF RESERVES.
SO WHAT THAT IS A SUSTAINABLE WAY TO REPLACE THE AMOUNT OF ASSETS THAT YOU'VE USED TO DELIVER SERVICES DURING THAT YEAR AND WHAT WE HAVE DONE.
AND BARBARA SAID THINGS THAT DIDN'T WORK AND THEY HAVE WE'VE RUN ENOUGH OF A BUDGET SURPLUS EACH YEAR TO FUND THAT ANNUAL RECURRENT PORTION OF OUR CIP, WHICH IS THE DEPRECIATION AMOUNT, WHICH TENDS TO RUN AROUND FIVE, SIX, $7 MILLION A YEAR.
NOW, WHEN YOU'RE BUMPING INTO A SCHOOL AND IT'S A NEW SCHOOL IS GOING TO COST US ABOUT WHAT 19 MILLION OR SOMETHING LIKE THAT.
SO WHEN YOU'RE WEIGHING SOMETHING LIKE THAT, YOU KNOW, THAT'S A, THAT'S AN EXTRAORDINARY ITEM.
THAT'S NOT AN ANNUAL RECURRING ITEM, SO THOSE NEED TO BE FUNDED DIFFERENTLY.
AND THAT'S WHERE THAT FUNDING COMES IN.
AND WE'VE DONE THAT DEPTH FUNDING FOR THE NEW SCHOOL, BUT FOR THE ANNUAL RECURRING STUFF, HOW DO YOU FIND THAT? AND WE DON'T HAVE A POLICY AROUND THIS.
AGAIN, IF I BACK UP, HOW DO WE STAY, WHERE WE ARE IT'S TO PUT IN PLACE POLICIES THAT ALLOW US TO SUSTAIN WHERE WE ARE AND NOT DETERIORATE WHERE YOU ARE.
AND IF WE DRAIN THE RESERVES, THAT'S A DETERIORATION.
IF WE INCREASED DEBT TO PAY FOR CIP, THAT'S DURATION, THESE THINGS ARE UNSUSTAINABLE.
YOU CAN DO IT FOR A YEAR OR TWO, YOU GET A RECESSION OR A BAD YEAR.
THAT'S WHAT THEY'RE THERE FOR, BUT YOU CAN'T DO IT FOREVER.
SO, SO HOW THEN DO WE GET THIS COUNTY, WHICH IS IN A GREAT PLACE, ON A SUSTAINABLE PATH GOING FORWARD TO MAKE SURE THAT WE REPLACE ALL REVIEWS IN ANY GIVEN YEAR.
AND THAT BARBARA HAS KIND OF THE TIP FOR THIS DISCUSSION.
AND WE DON'T HAVE A POLICY AROUND THAT TO MAKE SURE THAT HAPPENS.
IF YOU LOOK AT THIS EFFECTIVELY, WE HAVE BEEN RUNNING ENOUGH OF A BUDGET SURPLUS BECAUSE OF OUR CONSERVATIVE BUDGETING, CONSERVATIVE BUDGETING HAS ALLOWED US TO GENERATE JUST ENOUGH SURPLUS TO BE ABLE TO FUND THAT APPRECIATION EXPENSE AND MAINTAIN THE COUNTY'S ASSETS.
THAT'S BEEN WORKING VERY WELL, BUT THERE'S NO POLICY AROUND THAT.
SO A NEW ADMINISTRATION COULD TAKE A LOOK AT THIS AND GO, WELL, IF I BALANCE MY ANNUAL BUDGET, I'M FINE.
WELL THEN YOU'RE JUST GOING TO DIG YOURSELF A HOLE.
SO WITH THAT SAID, UH, I'M TRYING TO OPEN IT UP FOR DISCUSSION AROUND THIS.
LIKE, WHAT IS THE RIGHT WAY TO DO THIS? SHOULD WE REVISIT OUR POLICIES OR NOT? OR IT'S WORKING THE WAY IT IS NOW, BUT WE DON'T HAVE POLICIES AROUND IT.
SO ARE WE OKAY JUST LEAVING THE POLICIES ALONE AND PURSUING CONSERVATIVE, BUDGETING AND HOPING IN AN AVERAGE YEAR, OR GENERALLY WILL HAVE GENERATE ENOUGH TO REPLACE THE COUNTY'S ASSETS OVER TIME? OR IS IT SOMETHING THAT WE WANT TO FORMALIZE IN SOME FASHION WE COULD FORMALIZE A NUMBER OF DIFFERENT WAYS.
ONE WOULD BE AN ACTUAL POLICY WITH THE RESTRICTION AND AN A NOTIONAL AMOUNT OR A DOLLAR AMOUNT.
ANOTHER WAY IS TO JUST SAY, GENERALLY SPEAKING, THIS IS THE WAY WE OUGHT TO CONDUCT OURSELVES.
IT'S LESS OF A HARD AND FAST KNOW LINE.
IT'S MORE OF A, JUST A PHILOSOPHICAL KIND OF GUIDANCE.
SO ANYWAY, I'LL OPEN IT UP FOR DISCUSSION THAT'S IS EVERYBODY STILL WITH ME? HAVE I LOST ANYBODY ON THIS? I THINK GENERALLY IF WE, IF WE CHANGED THE POLICY, SOMEONE ELSE CAN CHANGE IT AGAIN.
UM, I WOULD PERSONALLY PREFER TO SEE US PUT IN A RECOMMENDATION.
THIS IS HOW IT OPERATED, AND THIS IS HOW WE SHOULD OPERATE.
UM, BECAUSE AGAIN, IT CAN BE CHANGED SIMPLE.
UH, SO TO ME, ENTROPY PREFERENTIAL TO PUT IT AS A RECOMMENDED POLICY.
[00:20:01]
OKAY.THE RECOMMENDED, CONTINUED CONSERVATIVE BUDGETING, WHICH MAY IN FACT, THE EXPECTATION WOULD BE THAT WE DEAL WITH THEM TO REPLACE THE ASSETS, SPELL IT OUT AS TO WHAT THE RECOMMENDATION IS AND HOW WE ACHIEVED THAT.
I'M NOT SURE HOW YOU COULD DO IT ANY DIFFERENT.
WE DO IT TODAY BECAUSE WE LOOK AT WHEN WE'RE PREPARING THE BUDGET, WE'RE LOOKING AT THE PROJECTS FROM THE CIP AND THERE ARE, AND WE'D GO THROUGH IT.
AND WE TRY TO FIGURE OUT BASED ON OUR EXPECTATIONS, WHAT'S GOING TO BE THERE AT THE END OF THE YEAR.
AND SO WE PLAN OUR PROJECTS BASED ON THOSE DOLLARS.
IF WE DON'T USE THOSE ASSUMPTIONS OR ESTIMATES, THEN WE ALMOST CAN PLAN THE PROJECTS FOR THE NEXT CIP.
AND WE MAY HAVE TO WAIT UNTIL AFTER THE BUTTERS, BUT AT THE END OF THE YEAR, BEFORE WE CAN SAY THIS PROJECT CAN COUPLE, THIS ONE CAN GO.
SO WE WOULDN'T BE ABLE TO REALLY PLAN AHEAD AND SAY WHAT PROJECTS WE'RE PLANNING AND DOING, UH, IN THE NEXT YEAR.
UM, I MEAN, THERE MAY BE OTHER WAYS OF, UH, YOU KNOW, NOW WE'LL SAY FROM, FROM RESERVES, MAYBE WE HAVE A DEDICATED BUCKET WHERE WE PUT DOLLARS IN US, AS WE KNOW THEY'RE GOING TO BE, UM, EXCESS OR SURPLUS STOCK PUTTING THEM IN AND, AND THEN BALANCE THE PROJECT BASED ON THAT.
I MEAN, I THINK THE WAY IT WORKS NOW IS IF AT THE END OF THE YEAR, WE DON'T HAVE ENOUGH MONEY TO DO THOSE PROJECTS.
I MEAN, THAT'S KIND OF, IF AT THE END OF THE WEEK, WE ESTIMATE WHAT WE'RE GOING TO DO IN THE CIP WITH SAID THE HEALTHCARE AS COMING FROM RESERVES.
AND IF AT THE END OF THE YEAR, THERE'S NOT ENOUGH RESERVES.
WE THEN HAVE TO DISCUSS WHETHER WE TAKE IT OUT OF A ASSIGNED BALANCE OR ON A SIGN BOX.
SO I THINK THE PROCESS STILL WORKS NO MATTER WHAT, BUT IT JUST MAY LOOK A LITTLE DIFFERENT ON THE, ON THE DOCUMENTS, ON THE EARLY FORECASTS OR FOR THE BUDGET THAT THE ADMINISTRATOR PRESENT TO YOU, YOU KNOW, SEPARATE POINT FROM RESERVES.
UM, BUT AGAIN, IT'S THE PROJECTS THAT ARE OVER THE NEXT YEAR IN THE CIP.
SO WE'VE DONE A GOOD JOB OF CREATING A CIP AT 25 YEARS.
WE PRETTY MUCH, WE, IT'S NOT, LIKE WE SAY, OKAY, NEXT YEAR BUDGET.
WE LOOK AT IT, WE WORK WITH SCHOOLS, WE WORK OLDER PEOPLE, ALL THE DEPARTMENTS THAT HAVE, BUT PROJECTS COMING.
AND IN MANY CASES WE SAY CAN DO THAT BECAUSE WE'RE NOT EXPECTING THAT KIND OF SURPLUS AT THE END OF THE YEAR.
SO, UM, I THINK THAT'S WHY IT WORKS.
UM, YEAH, AND TO DOVETAIL, BUT NOT A MEDIUM POST SUGGESTED IS THE FINANCIAL CONDITION OF THE COUNTY IS ONLY AS GOOD AS THE COUNTY LEADERSHIP AND THEY CAN CHANGE POLICIES.
THEY CAN TRAIN RESERVES, THEY CAN DO WHATEVER.
SO IT REALLY FALLS ON THE CITIZENS TO ELECT FISCALLY RESPONSIBLE AND FOCUSED ABOUT THE SHOW.
AND THEY'VE DONE THAT AND THAT'S WHY IT'S BEEN WORKING.
AND THAT'S THE ONLY REAL WAY TO PRESERVE THE COUNTY IS TO HAVE THE RIGHT LEADERSHIP.
BUT I HEAR THAT SOME POLICIES AREN'T REALLY GOING TO DO THAT, BUT LET ME, LET ME GO A FINER POINT ON THIS, JUST BECAUSE WHY DID THIS COME UP? WHEN I WENT UP TO SEE THE RATING AGENCIES, THEY HAVE A THING CALLED AVAILABLE RESERVES AND RESERVES THAT ARE AVAILABLE ARE ONES THAT YOU COULD USE IN CASE SOMETHING HAPPENS.
TORNADO LEWIS, THE ROOF OFF EARTHQUAKE, LIKE YOUR MINERAL KNOCKS DOWN TO SCHOOL, SOMETHING HAPPENED, WHAT DO YOU HAVE FOR AVAILABLE RESOURCES? WHAT CAN YOU GO TO? AND THEY DEFINE A FALLIBLE AS UNASSIGNED, WHICH DOESN'T, ISN'T ASSIGNED TO ANYTHING AND YOU'RE ASSIGNED, WHICH IS AVAILABLE FOR REASSIGNMENT.
SO IT HASN'T BEEN COMMITTED OR RESTRICTED.
IT ISN'T ILLIQUID, IT'S LIQUID AND YOU'RE MARKED IT, BUT YOU CAN CHANGE THE EARMARK.
NOW ON THE ONE HAND ARE ASSIGNED, ARE ASSIGNED FOR PROJECTS, BUT THAT MONEY IS AVAILABLE FOR YOUR ASSIGNMENT.
IF WE PERFORMED ALL THOSE PROJECTS, DID ALL HAVE CIP DRAIN THOSE RESERVES FOR WHAT THEY'RE INTENDED FOR.
WE THEN HAVE DIMINISHED OUR AVAILABLE, BUT YOU KNOW, IN OUR CASE, ALMOST HALF OF OUR RESERVES, IF WE DRAIN HALF OUR RESERVES, OUR CREDIT RATING WOULD BE QUESTIONED.
FIRST OF ALL, BECAUSE OF THE TREND OF DRAINING RESERVES AND OVERSPENDING.
BUT SECOND, BECAUSE OF THE AMOUNT THAT'S AVAILABLE IN CASE THERE'S A PROBLEM.
SO WHILE WE EARMARK THINGS FOR SPECIFIC PROJECTS, WHICH WE KNOW WE NEED TO DO, AND WE SET THE MONEY ASIDE, WHICH IS A GOOD THING, FISCALLY, IF WE ACTUALLY WENT AND FOLLOWED THROUGH AND DID ALL THOSE PROJECTS
[00:25:02]
OR AVAILABLE RESERVES, WE WOULD BE DIMINISHED DRAMATICALLY.SO WHILE RIGHT NOW WE ONLY HAVE A POLICY THAT RESTRICTS ARE UNASSIGNED.
AND WE HAVE A POLICY AROUND OUR REVENUE STABILIZATION FUND, WHICH IS 3%.
SO WE ONLY HAVE POLICIES AROUND THOSE TWO.
WE HAVE NO POLICY AROUND OUR TOTAL RESERVES, WHICH WOULD BE THE AVAILABLE RESERVES.
SO WE HAVE NO, WE NEED TO HAVE AT LEAST THIS MUCH AVAILABLE RIGHT NOW, WE HAVE THIS MUCH AVAILABLE, BUT THERE'S NO ASSURANCE THAT THAT MUCH WILL BE AVAILABLE IN THE FUTURE.
ESPECIALLY IF WE IMPLEMENT THE CIP PROGRAMS AND DO THOSE PROJECTS.
SO THAT'S THE KIND OF FINER POINT OF WHY THIS COMES UP.
UM, AND YOU CAN ARGUE IT BOTH WAYS.
LIKE MONEY'S BEEN SET ASIDE FOR THESE PROJECTS.
WE GOT TO DO THE PROJECTS, THAT'S DO THE PROJECT, BUT FROM A TRIPLE A OR A CREDIT RATING STANDPOINT THAT YOU WROTE YOUR, YOUR AVAILABLE RESERVES AND DEVELOPMENT RESOURCES.
SO THERE'S NO, THERE'S NO, YES OR NO, OR RIGHT ALONG HERE.
THAT'S WHY WE'RE HAVING THIS DEBATE AT THIS FORUM TO SAY, OKAY, WHAT, WHAT DO WE AS A COUNTY? HOW DID WE WANT TO APPROACH THIS? DO WE WANT TO BUILD A FENCE AROUND OUR TOTAL RESERVES? WE'RE JUST LEAVING ON THE OTHER SIDE AND THEN JUST DO THE RIGHT THING, UH, AS TIME GOES ON.
SO THERE MAY NOT BE A NEED TO CHANGE ANYTHING, BUT AT LEAST OF TO HIGHLIGHT THIS AND BRING THIS TO THE FLOOR.
SO THE FOLKS ARE AT LEAST AWARE OF WHERE WE ARE, HOW WE GOT THERE, WHETHER IT'S SUSTAINABLE OR NOT, AND WHAT WE WOULD NEED TO DO TO, TO MAKE IT SUSTAINABLE OVER THE PHONE.
I MEAN, THINGS LIKE, AND ANOTHER JUST EXAMPLES, BUT THINGS LIKE TORNADOES, HURRICANES INSURANCE COVERS THAT EARTHQUAKE.
I HOPE THAT WE HAVE PERFECT COVERAGE GIVEN OUR LOCATION.
ALL THOSE KINDS OF THINGS SHOULD BE COVERED.
YOU'D HAVE 10% DEDUCTIBLES ON HER.
YOU COULD HAVE TO COME UP WITH 5 MILLION OR 5.3 MILLION.
BUT, UH, I LOOKING AT THE OTHER THINGS THAT, THAT COULD AFFECT US, THERE COULD BE, UH, YOU KNOW, IT COULD BE A, A SERIOUS REDUCTION IN REVENUES.
UH, IT COULD BE A, YOU KNOW, A COMPLETE CRASH OR REAL ESTATE VALUES DROPPED BY HALF.
THAT'S A SUBSTANTIAL PART OF OUR REVENUE.
UM, I CAN SEE THAT DROPPING FIVE, 6% AS IT DID IN OH EIGHT.
HOW ABOUT OPERATING ISSUES GOING FORWARD AND A SEPARATE DISCUSSION, BUT YOU'RE RIGHT.
YOU MIGHT HAVE TRIED TO ENVISION WHAT COULD GO WRONG.
UM, YOU KNOW, I GUESS THERE WAS A TRAIN CARLOAD, FULL OIL DUMPED IN THE RIVER, UPSTREAM FROM US.
THERE WAS SOME CONCERN THAT LIKE CORRINE TRAIN ACCIDENT, CLOUDED WITH DAMAGE.
IT'S HARD TO ENVISION THE BLACK SWAN EVENT, BECAUSE IF YOU GET A VISION OF IT, THEN YOU TAKE STEPS AND YOU WOULDN'T BE PRESERVED BECAUSE YOU KNOW, WHAT'S COMING, THIS IS REALLY KIND OF, YOU KNOW, PUT YOUR INTERESTS START CRYING.
SO I LOOKED AT, AT THE END OF THE DAY, AND MAYBE WE JUST DO NOTHING TO TELL THE CITIZENS, MAKE SURE YOUR ELECTRIC PEOPLE TO PUBLIC OFFICE, YOU KNOW, AND MAYBE AS SIMPLE AS THAT.
BUT, BUT AGAIN, I JUST WANTED TO HIGHLIGHT THIS WE'RE AT A GREAT PLACE RIGHT NOW, CONCERNS.
HOW DO YOU STAY THERE? I MEAN, ACHIEVING A TRIPLE LADDER WAS WE CLIMBED THE MOUNTAIN AND THEN HOW DO YOU DO SOMERSAULTS BACK DOWN THE MOUNTAIN? AND, UH, AND THAT'S EASY TO DO.
IT'S VERY EASY TO DO PEOPLE SEE MONEY SITTING THERE AND SPEND IT.
BUT I JUST LOOK AND SAY, IF WE DO A POLICY IT'S JUST EASY TO CHANGE IT AND SAY, WELL, THAT'S WHAT THE POLICY IS.
WE CAN CHANGE IT TO DO THIS AND DO IT ANYWAY.
SO I JUST DON'T WANT YOU TO ROLLING OVER YOUR HEART, RIGHT? DO YOU HAVE A RECOMMENDATION AT THIS POINT NOW I REALLY WANTED TO HAVE A DISCUSSION AND THEN COMING OUT OF THIS, IF THERE WAS A CONSENSUS AROUND SOMETHING, DRAFT LANGUAGE FOR OUR NEXT MEETING KIND OF THING, BUT NO DECISION TO BE MADE TODAY.
UM, AND THIS ISN'T GOING TO CHANGE TOMORROW OR NEXT MONTH, THIS IS SOMETHING THAT'S MORE LONG TERM, HEY, CREATE A 10 OR 20 YEAR SUSTAINABLE WAY TO KEEP THE AAA PRO SERVICES.
AND NOT BECAUSE IF YOU SIMPLY RUN A BALANCED BUDGET AND OPERATING SIDE, NO OPERATING SURPLUS, YOU'RE GOING TO HAVE TO FUND THOSE EXPENSES BY ONE OF THOSE TWO OR THREE OTHER WAYS DRAIN THE RESERVES, RAISE TAXES.
UM, UM, SO, SO AGAIN, I DON'T HAVE NO DECISION TODAY.
DON'T HAVE A DECISION TO MAKE THAT RECOMMENDATION WAS FINALLY THE DISCUSSION, SEE WHERE IT TAKES THIS COMMITTEE BECAUSE IT NEEDS TO GO ON OR BY IT SAY GREAT ONCE THE YEAR AND WE CLOSE, WE CAN, WE CAN SEE WHERE THE, WHERE THE SURPLUSES
[00:30:01]
AND THEN SEE IF THERE'S ANY, ANY OTHER WAY OF CAPTURING THAT WE COULD HIGHLIGHT IT IN THE, IN THE BUDGET EARLY ON.I THINK, YOU KNOW, AND LIKE I SAID, THE CHANGES OF SEATS, SO GET SOME NEW NEW PEOPLE IN HERE AND, AND SEE WHAT THEY THINK, YOU KNOW, BASED ON THEIR EXPERIENCE, UM, IN OTHER COUNTIES AND OTHER LOCALITIES THAT YOU DON'T REALLY SEE A LOT OF.
I MEAN, OUR POLICIES ARE, UM, PRETTY MUCH WRITTEN LIKE OTHER POLICIES AND THAT USUALLY REVENUE STABILIZATION PHONES ARE SET UP, UM, ASSIGNED THERE'S A POLICY AROUND THAT, BUT THERE'S REALLY NOT USUALLY A POLICY AROUND THE SIGN BECAUSE IT'S THE SIGNS FOR SPECIAL PROJECTS.
SO YOU DON'T REALLY SEE, UM, I CAN LOOK AND SEE IF THERE'S ANYTHING AROUND AVAILABLE FUNDAMENTALS, IF ANYBODY WRITES, YOU KNOW, POLICIES AROUND THAT.
SO, UM, SO YEAH, I THINK, I THINK IT JUST KEEP DISCUSSING THIS TOPIC, YOU KNOW, BE AWARE OF IT AND KEEP DISCUSSING IT.
UM, ONE THING WE COULD DO BARBARA IS FOR OUR NEXT MEETING, MAYBE DRAFT SOME VERY SIMPLE LANGUAGE AROUND THAT RECOMMENDATION, THE HIGHLIGHT, AS OPPOSED TO A POLICY TO SAY THAT YOU'RE NOT MANDATING, YOU KNOW, AVAILABLE RESERVES OR NURSING POLICIES, BUT JUST SAYING, YEAH, AS AN UNWRITTEN, IT HAS ALWAYS BEEN AN UNWRITTEN POLICY THAT THIS IS HOW IT HAPPENED, BUT IT ALSO GIVES US THE FLEXIBILITY.
IF SOMETHING DOES HAPPEN THAT WE DID HAVE TO DIP IT.
SHORT TERM, IF WE HAD OUR POLICY, WE COULDN'T BUILD IT.
WE'D HAVE TO TURN AROUND AND GO TO CHANGE TO DO THAT.
SO I THINK IF WE, JUST TO MY WAY OF THINKING, IF WE SPELL IT OUT IN GREAT DETAIL, WHAT WE DO, I WOULD, WE'VE OPERATED.
WHY WOULD WE BACKWARD THAT WAY? I THINK THAT PEOPLE CAN LOOK AT IT.
IT'S MORE OF A PROCEDURE THAT A POLICY STATEMENT, SOMETHING LIKE THAT.
AT LEAST, AT LEAST IT PROVIDES SOME INFORMATION TO FUTURE FOLKS TO SAY, OKAY, A BALANCED BUDGET.
WHAT ABOUT THE DEPRECIATION? BECAUSE IF YOU, IF YOU SIMPLY BORROW FOR EVERYTHING ON THE CIB, EVERYTHING WE'RE ALREADY BORROWING FOR SCHOOLS AND FIRING, YOU KNOW, STATIONS, THAT'S INCREASING OUR DEBT.
IF WE THEN BORROW AN ADDITIONAL FIVE TO 7 MILLION EVERY YEAR TO FUND THE ANNUAL, YOU CAN SEE WHERE THAT TAKES YOU.
YOU JUST KEEP ADDING TO YOUR DEBT.
IF YOU DRAIN YOUR RESERVES, SAME THING, TAKING FIVE MADE OUT THIS YEAR, FIVE NEXT YEAR, YOU SEE WHERE THAT TAKES YOU.
SO I THINK IT'S WORTH AT LEAST HIGHLIGHTING THE CURRENT FUTURE LEADERSHIP THAT THIS IS WHY IT'S BEEN WORKING SO WELL.
THIS IS WHY IT'S DIFFERENT FROM OTHER ACCOUNTANTS, BECAUSE WE'VE BEEN HANDLING, THEY'VE BEEN BEHAVING THIS WAY AND OUR PROCEDURES HAVE BEEN THIS WAY AND THAT'S TAKEN US TO A GOOD PLACE.
AND I HOPE THAT YOU'VE STAYED A GOOD PLACE.
AND IN YEARS PAST, YOU KNOW, WE'VE TAKEN SOME FROM SURPLUS WHO SAID, LET'S LOOK AT THE SMALLER CIP ITEMS OVER THE NEXT FIVE YEARS, UH, WITH WHAT WE'VE GOT.
COULD WE NOT SOME OF THOSE OFF NOW, WHICH TAKES THEM OUT OF THE CIP AND ALLOWS OTHER THINGS TO FALL CLOSER.
AND THAT KEEPS THAT BALL ROLLING.
SO WE DON'T END UP WITH THREE YEARS WHERE WE HAVE NO CIP EXPENDITURES, BUT WE'VE GOT REVENUE THAT HAS TO BE PUT SOMEPLACE.
I MEAN, NO, YOU KNOW WHAT I MEAN? THAT'S A GOOD POINT.
UH, PROBABLY PREDATED SOME OF THE FOLKS, THE BANK TAX COMMITTEE AROUND FOR THAT WHEN YOU'RE ALL OF A SUDDEN THAT BANK TAX WENT FROM 800,005 MILLION.
AND WE SAID, MOST OF IT MAY NOT STAY THERE, SO LET'S NOT, BUT WE CAN KNOCK OUT SOME CIP WITH THAT.
AND OF COURSE THE NEXT YEAR WENT BACK DOWN TO A HUNDRED.
SO WE DIDN'T HIRE PEOPLE AROUND THAT.
WE SAID, OKAY, BUT LET'S KNOCK OUT SOME OF THAT.
AND THEN SAME THING WITH SOME OF THE STIMULUS MONEY AND THAT KIND OF THING.
WHAT DO YOU DO WITH IT? YOU'RE NOT GONNA HAVE SOME THAT CRP.
SO THAT CHANCE YOU DON'T GET A SURPLUS, AT LEAST YOU'VE NOT TAKEN CARE OF SOME OF THAT.
AND WE'VE DONE THAT IN THE PAST AND IT'S WORKED OUT REALLY WELL.
SO, UM, SO WE'RE AT A VERY GOOD PLACE.
AS I MENTIONED, I'VE JUST, IT WAS QUARTERS OVER ON THE CAR SIDE OF THE BUILDING DONE EARLY.
UM, ANY OTHER COMMENTS ON THIS ONE? OTHERWISE WE'RE STILL GOING ALONG HERE A LITTLE BIT.
UM, IT'S JUST SOMETHING THAT GOES UNNOTICED SOMETIMES IN THE PUBLIC SECTOR AND YOU DO NEED TO REPLACE THE ASSETS AS YOU GO RUSH, YOU DIMINISH YOUR ABILITY TO DELIVER THE SERVICES.
[00:35:01]
OKAY.AGAIN, THIS WAS VERY HELPFUL BARBARA FOR THAT DISCUSSION.
UM, LET'S SEE, WHERE ARE WE ON THE AGENDA? UM, OTHER BUSINESS, I DID
[VI. OTHER BUSINESS]
FORGET TO MENTION EARLIER THAT IN TERMS OF THE AUDIT YEAR, WE HAVE STARTED ALREADY THE APPLEBEE'S DATA.YOUR SCHOOLS ARE BEING AUDITED THIS WEEK, RIGHT? AND THEN WE ARE DONE IN TWO WEEKS.
UM, THE AUDIT HAS DONE TWO PHASE SPRAYING WHERE THEY TRY TO GET SOME THINGS OUT OF THE WAY, AND THEN THEY COME BACK AT THE END OF SEPTEMBER AND FINISH UP.
SO, SO THAT IS UNDERWAY AND WE WILL HAVE A VERY HIGH AUDIT REQUIREMENTS BECAUSE OF BOMBERS.
WE WILL HAVE A VERY HIGH AUDIT COMPONENT BECAUSE OF ALL OF OUR STATEMENTS, FEDERAL THE FEDERAL MONEY.
CAN YOU USE FEDERAL MONEY FOR THAT ON IT? YEAH.
THEY'RE NOT CHANGING THE AUDIT DOLLAR.
IT'S JUST THAT, UM, WE, WE WILL BE AUDITED ON ALL OF OUR STIMULUS IN THE PAST, A LOT OF COMPLIANCE, A LOT OF GRANTS WITH DIFFERENT RULES.
SO, UH, WE'LL JUST, WE'LL JUST MAKE SURE THAT WE ARE HANDLING EACH GRANT, CORRECT ME IF I'M WRONG, BUT WE'VE BEEN IN REASONABLY CONSTANT CONTACT WITH THE WATER IS TO MAKE SURE THAT AS WE WENT, THINGS ARE AS THEY SHOULDN'T BE.
SO HOPEFULLY IT'S COMPLEX, BUT HOPEFULLY RIGHT.
AND I'M IN CONSTANT COMPLIANCE WITH VIRGINIA DEPARTMENT OF EDUCATION TO MAKE SURE THAT THEY AGREE WITH HOW WE'RE USING THE MONEY.
UM, SO, YOU KNOW, WE, I ALWAYS HAVE THAT EMAIL SAYING, YES, THIS IS APPROVED.
AND SO WE WE'VE DONE OUR BEST TO SAVE.
NOW I HAVE A QUESTION FOR PAM.
DID THE REAL ESTATE AND PERSONAL PROPERTY BILLS GO OUT.
HAVE YOU HEARD BACK ANY FEEDBACK YET? WELL, I DON'T THINK YOU NEED THE MORIN HAND SMELL THAT FRIDAY.
UM, AND HOW LONG GONNA TAKE THAT? STOP US IN THE PAST.
SO WE'VE BEEN EXPECTING THOSE TO START RINGING ANY MINUTE, BUT THEY HAVEN'T HAD TODAY.
HOWEVER, AS SOON AS WE POST THE BILLS TO THE SYSTEM THEY'RE ONLINE.
SO ANYBODY THAT IS GOING AND LOOKING ONLINE AND JENNIFER TELLS ME, YES, THEY ARE GETTING A LOT OF CALLS ABOUT THE ASSESSMENTS ABOUT PERSONAL PROPERTY.
IT WAS PERSONAL PROPERTY THAT WE GOT CALLS ON.
UM, AND WE HAD A CALL YESTERDAY, GOT HUNG UP ON, THEY'RE GETTING PRETTY NASTY.
SO, UM, I'M SURE JENNIFER, OUR GOING TO HAVE A HARD ROAD AHEAD BECAUSE WE, WE SIMPLY, MY OFFICE CAN'T DO ANYTHING ABOUT IT.
WE JUST HAVE TO REFER THEM TO HER OFFICE.
UM, WHEN YOU SAY PERSONAL PROPERTY, YOU'RE TALKING AND I'M ASKING BECAUSE THAT'S ALL AN ARTICLE IN THE PAPER ABOUT TESTIFYING WHERE ARE THEY? THEY'RE GETTING A LOT OF COMPLAINTS BECAUSE SOME PEOPLE'S CAR VALUES HAVE GONE UP 50%.
UM, SO WE'RE, WE'RE HER, AS FAR AS WE KNOW WHAT'S COMING, UM, JUST DON'T HAVE ANYTHING OF SUBSTANCE TO SHARE AT THIS POINT, THE BILLS THAT WENT OUT RIGHT UNDER THE OLD TAX RATE TAX RATE, I CAN FIGHT ABOUT THAT ON IT.
UM, NO, THEY'RE, THEY'RE NOT, THEY'RE NOT EVEN MENTIONING THAT THEY'RE, THEY'RE JUST COMPLAINING ABOUT THEY ASSESSED BY YOU.
THE ONE THAT HUNG UP ON ME YESTERDAY AT 2 50, 1 OF $20,000 WHEN I DID AND WENT UP A LOT.
UM, SO, UH, I DID TALK TO JENNIFER ABOUT HOW WE'RE GOING TO HANDLE APPEALS.
CAUSE I SUSPECT WE'RE GOING TO HAVE MORE PILLS THIS TIME THAN WE'VE EVER HAD IN THE PAST.
UM, SO, UM, AND THEY ONLY ONES THAT ARE GOING TO CALL MY OFFICE ANY TROUBLE ONCE IN A WHILE, THEY'LL WRITE FOR THE DUE DATE, YOU KNOW, WHAT DO WE DO ABOUT DELINQUENCIES AT THAT POINT? YOU HAVE TO BE IN SO MUCH TIME.
UM, BUT, UM, THEY USUALLY, UM, SETTLE APPEAL, MS. SHE PRETTY MUCH SAID THAT UNLESS THE CAR IS, YOU KNOW, NOT OFFERABLE OR HAS SOMETHING WRONG WITH HER OR WHATEVER, SHE GOES WITH THE NADH GUY AND THAT'S, YOU KNOW WHAT IT IS.
[00:40:01]
WOULD HAVE TO SHOW THAT THERE WAS SOMETHING THAT DEVALUED THEM.UM, AND MOST OF THEM, THEY JUST DON'T WANT THE VALUE.
SHE SAID PRETTY FAST, UNLESS THE REASON I WAS JUST CURIOUS, CAUSE I SAW THAT ARTICLE.
WELL, YOU CAN LOOK AT ONLINE IN INFLATION IS INSIDIOUS.
AND IF YOU KNOW WHERE TO REGRESSIVE TAXES AND FIGHTS HARDER ON THOSE LIMITED MEANS AND THE MIDDLE CLASS AND IT'S, IT'S TERRIBLE.
WHAT IT DOES TO FOLKS ARE ON THE MARGIN AND, AND INFLATION BY DEFINITION, JUST TOO MUCH MONEY CHASING TOO FEW GOODS, TOO, TOO MUCH MONEY.
BUT THE FEDERAL RESERVE DOES AND THEIR BALANCE SHEET GOES UP TO 9 TRILLION PRINTED, 9 TRILLION KNOWLEDGE WITH THE MONEY.
THAT'S WHY THERE'S TOO MUCH MONEY OUT THERE.
THAT'S WHY THESE PRICES OF HOUSES AND CARS AND EVERYTHING ARE GOING.
SO IF YOU WANT TO SLOW THAT DOWN OR STOP THAT THERE'S GOING TO BE LESS MONEY CHASING MORE GOODS RATHER THAN TOO MUCH MONEY CHASING TOO FEW BEYOND OUR CONTROL A LITTLE BIT, BUT IT IS INSIDIOUS AND IT IS TERRIBLE.
AND IT'S REGRESSIVE FRAME THAT WILL WEAKEN ABOUT IT FOR MOST PEOPLE, THEIR HOUSES, THEIR LOCKERS INVESTMENT AND THEIR LARGEST IS GOING UP TREMENDOUSLY IN VALUE.
AND THAT'S THE TOUGH THING THAT SMALL MONITORS, BECAUSE THERE'S A CASHFLOW DIFFERENTIAL, YOU HAD A LOT OF ASSETS, BUT IT DOESN'T COME WITH THE CASH TO PAY THE TAXES.
SO ANYWAY, NOT, NOT A WHOLE LOT.
WE CAN DO ABOUT THE INFLATIONARY ENVIRONMENT, THE PRINTING OF MONEY OR JUST THE MARKET DETERMINES THOSE THINGS JUST VERY LITTLE WE CAN DO ABOUT THAT.
AND MAYBE, MAYBE PART OF THE MESSAGE.
I MEAN, WHEN PEOPLE COME AND THEY WILL LOWER THE RATE 20 CENTS, I'M NOT SURE WHAT ELSE, WHAT ELSE ARE YOU GONNA SAY? AND IN SOME OTHER COUNTIES ARE EITHER LOWERING THEIR REAL ESTATE RATE OR PROVIDING REMAINS.
HUSAM COUNTY TO SEND CHECKS OUT TO PEOPLE WE'RE BORROWING 50 MILLION POUNDS AND WE'RE BASICALLY BORROWING.
WE DON'T HAVE EXTRA AS INDICATED BY THE AMOUNT WE HAD TO BORROW.
WE DON'T HAVE ENOUGH RESOURCES TO DELIVER AS NEW SCHOOLS AND DO FIREHOUSES.
SO TO SEND OUT CHECKS WHILE YOU'RE BORROWING, DOESN'T SEEM LIKE A GOOD FISCAL RESPONSE.
AND THE OTHER THING IS, YOU KNOW, WAKE ME WHEN THEY GET TO 53 CENTS WHEN THEY GET DOWN.
AND I THINK THAT THE SUPERVISORS WON'T HEAR ABOUT THE ASSESSMENTS ON REAL ESTATE THAT I SUSPECT, WHERE ARE YOU GOING TO GET THEM? AS QUESTIONS FIRST IS PERSONAL PROPERTY.
CAUSE PEOPLE ARE USED TO THOSE CARS GOING DOWN AND THEY DON'T UNDERSTAND THE MARKET AND HOW ALL THAT WORKS AND, AND, AND WHY THEIR CORE VALUES ARE UP.
BECAUSE MAN, THEY'RE ONLY CONCERNED WITH THEIR SITUATION.
THEY'RE NOT LOOKING AT THE BIGGER PICTURE.
SO I SUSPECT YOU'RE GOING TO GET MORE QUESTIONS THAT HAVE ARE ABOUT PERSONAL PROPERTY.
AND MY SENSE OF THAT IS USED CARS.
WON'T COST MORE THAN NEW CARS FOREVER.
AND I KNOW A LOT OF FOLKS THAT HAVE TAKEN IN THEIR ONE OR TWO YEAR OLD CAR WITH A BUNCH OF MILES ON IT AND GOTTEN ALL THEIR MONEY BACK AND BULLET INTO A NEW CAR AND STICKER FLAT.
AND SO YOU CAN ACTUALLY TRAIN IN ONE OR TWO YEAR OLD, ONE FOR A BRAND NEW ONE.
AND THOSE THAT RELATIVE PRICING, ISN'T GOING TO STAY THERE FOREVER.
THIS IS A CAUTIONARY TALE FOR US IN THE FINANCE COMMITTEE AND THE BOARD, WHICH IS DON'T ASSUME ABUSED CARS COST MORE THAN NEW CARS.
ONCE THE NEW CARS HIT THE LOT, BUT HE WAS WILL HE LESS VALUABLE THAN THE RED CARS RIGHT NOW? IT'S A SUPPLY AND DEMAND THING.
SO OUR BUDGET SHOULDN'T BE BUILT ABOUT A 40% INCREASE EVERY YEAR AT USED CAR PRICES.
UM, IT IS, THIS IS ALL LIKELY, IT WILL BE A TEMPORARY PHENOMENON ONCE A NEW CAR CATCHES UP.
SO NOW THERE'S THIS 10 PAGE REVIEWS CAR TO A NEW ONE FOR THEM WITHOUT, WITHOUT, UH, TERMING OUT OF POCKET FOR A BUNCH OF MORE MONEY.
BUT ANYWAY, THAT'S WHAT PERSONAL DECISIONS FOR PEOPLE TO MAKE THEIR PERSONAL CIRCUMSTANCES.
BUT TREES DON'T GROW THIS GUY AND THIS WON'T LAST FOREVER, BUT IT IS WITH HIS DAD.
I DON'T KNOW HOW YOU GUYS KEEP A SMILE ON YOUR FACE, BUT JUST KEEP IT BECAUSE THEN PEOPLE ARE HURT OR THAT.
AND I, AND I DO HAVE SOME PROGRAMS IN THE OFFICE TODAY.
LIKE YOU PAY PLANS AND STUFF LIKE THAT.
SO WE TRY THE BEST WE CAN TO HELP PEOPLE.
[00:45:01]
YOU KNOW, WHAT DOES IT HELP TO HAVE A SIGN EXPLAINING? PRICES ARE PROBABLY UP.UM, UM, WE HAVE OTHER SIGNS IN THE PAST AND THE OFFICE AND THEY DON'T READ THEM.
IT SAYS A MOST PEOPLE EXPECT, YOU KNOW, THEY USED TO ALWAYS SAY, WELL, AS SOON AS YOU DRIVE THE CAR OFF THE LOT, IT'S $500 LESS AND NOW IT'S DIFFERENT.
SO I KNOW PEOPLE ARE PAYING ATTENTION, BUT THAT BRIEFING.
SO, BUT WITH THE REAL ESTATE, THEY GOT THEIR ASSESSMENT IN THE MAIL.
SO THEY KNOW WHAT'S UP WITH CARS.
YOU JUST GET THE PROPERTY TAX BILL, YOU KNOW, MOST PEOPLE DON'T PAY AS MUCH ATTENTION REAL ESTATE IT'S ESCROWED IN THEIR MORTGAGE.
THE ONLY TIME THEY THINK ABOUT IT IS WHEN THEY GET THE LETTER SAYING ESCROW SHORT, WHAT'S GOING ON $30 A MONTH, RIGHT? YES.
IT WAS PERSONAL THINGS YOU SEE IN THE NEWSPAPERS.
THESE DAYS, CITIZENS ARE HURTING BECAUSE THEIR TAXES ARE UP BECAUSE INFLATION IS KILLING THEM.
WE NEED TO PROVIDE SOME RELIEF, LET'S PRINT SOME MORE MONEY AND SEND SOME MORE MONEY DOWN AND YOU THINK, WELL, IT DOESN'T TAKE THAT.
IT'S COMMON SENSE, RIGHT? IF YOU'VE GOT A PROBLEM THAT YOU CREATED, DON'T MAKE IT WORSE.
POUR GASOLINE ON THE FIRE POLITICIANS.
BARBARA, ARE THERE BUSINESS, UH, I'D LIKE TO ASK FOR, UM, JUST A DISCUSSION CLARIFICATION ON HOW WE'RE COMMUNICATING OUR BOND MONEY.
UM, BARBARA AND I WERE VERY CAREFUL AND OUR BOND LITERATURE THAT WE STATED $60 MILLION FOR SCHOOL PROJECTS, NO INDIVIDUAL DOLLAR HOUSE PER SE.
SO THEY'RE A LITTLE BIT BEFORE WE DID NOT WANT TO, WE DIDN'T WANT TO BE IN A SITUATION WHERE WE ARE NOW WHERE WE SAID $30 MILLION FOR IT'S AN ART CREW CIP, FOR SURE.
AND WE SAID $39 MILLION FOR, UM, THE GOOCHLAND ELEMENTARY SCHOOL, UM, FOR SOME MILLION DOLLARS FOR THE MIDDLE SCHOOL.
UM, AND THEN SOME ANTICIPATED AMOUNT FOR THE HIGH SCHOOL RENOVATING INNOVATIONS.
UM, SO WE WE'VE BEEN TALKING A LOT ABOUT THE CITIZENS APPROVING, UM, IN THE BOND REFERENDUM ONLY $39 MILLION FOR THE SCHOOL, BUT THAT WAS NEVER IN ANY OF OUR LITERATURE.
SO I, I JUST, I JUST WANT TO MAKE SURE, BECAUSE YOU KNOW, YOU DON'T WANT TO HAVE THE SAME THING HAPPEN IN YOUR, IN YOUR PUBLIC SAFETY PROJECTS WHERE YOU'RE, YOU'RE TRYING TO BUILD A COURTHOUSE AND TRYING TO BUILD A FIRE STATION.
AND, YOU KNOW, YOU DIDN'T, YOU DIDN'T WANT TO BE ATTACHED TO A DOLLAR AMOUNT THERE EITHER BECAUSE YOU JUST DON'T KNOW HOW THOSE PROJECTS ARE GONNA PLAY OUT.
SO, UM, I, THE, THE PROCESS, I BELIEVE THE PROCESS THAT YOU'RE GOING THROUGH NOW, UH, UM, DETERMINING DO WE APPROPRIATE MORE MONEY? DO WE SAY THE SCHOOLS CAN, CAN SPEND MORE MONEY ON THIS PROJECT THROUGH A WORD SUPERVISORS ACTION IS APPROPRIATE, BUT I DON'T, I DON'T KNOW THAT WE NEED TO MIX IN THE FACT THAT THE CITIZENS VOTED ON A, UH, A BOND AMOUNT THAT WAS JUST $60 MILLION FOR SCHOOLS.
AND SO WE ALREADY KNOW THAT OUR MIDDLE SCHOOL PROJECT IS COMING IN UNDER BUDGET.
WE ALL KNOW THAT OR THE ELEMENTARY SCHOOL PROJECT IS COMING IN OVER BUDGET.
AND SO WE'RE GOING TO BE USING DIFFERENT AMOUNTS OF THAT $16 MILLION BOND MONEY TO PAY FOR THOSE PROJECTS AS, AS THE BOARD OF SUPERVISORS ALLOWS US TO REAPPROPRIATE.
SO I, I JUST, I JUST WANT TO MAKE SURE THAT WE'RE ALL AGREEING ABOUT WHAT WE DID DURING THE BOND REFERENDUM PROCESS AND NOT,
[00:50:01]
NOT CONFUSED THE TWO, UM, MAY, MAYBE I'M MISTAKEN, BUT I THINK WE'RE, WE'RE, WE'RE MIXING, MIXING WHAT'S HAPPENING.I THINK WHEN WE WERE PRESENTING AND WE WERE GOING DOOR TO DOOR, UM, WE WERE TALKING ABOUT 60 MILLION FOR THIS CLOSE 36 MILLION FROM THE COUNTY PROJECTS, PUBLIC SAFETY PROJECTS.
BUT WE DID TALK ABOUT THE PROJECTS THAT WERE INCLUDED IN 60 MILLION INCLUDED THE NEW ELEMENTARY SCHOOL, GYM ADDITION, A MODIFICATION TO THE HIGH SCHOOL, THE ROAD WORK.
SO, YOU KNOW, I THINK THAT KIND OF THREW PEOPLE MIGHT'VE MIGHT'VE STARTED DIVIDING UP THE DOLLARS BY THE PROJECTS, BUT, BUT I AGREE.
I MEAN, I THINK IT WOULD TRY TO MAKE IT CLEAR THAT IT WAS 60 MILLION FOR THE SCHOOLS AND IT COULD BE USED FOR SCHOOL PROJECTS.
AND THEN WE GIVE THEM AN EXAMPLE TYPE PROJECTS.
BUT WE, WE NEVER ATTACHED A DOLLAR AMOUNT.
AND SO THAT, THAT'S WHERE I'M LIKE, UM, YOU KNOW, I JUST, I JUST WANT TO MAKE SURE, BECAUSE EVEN IN THE BUDGET, THE $39 MILLION, IT'S NOT ALL ABOUT WAS, WAS BOND FUNDED AND SAME WITH THE HIGH SCHOOL PROJECT.
THERE'S A LOT OF IT THAT'S CASH FUNDED.
SO, UM, YOU KNOW, THE, THE CIP IS SHOWING A MIX OF FUNDING FOR THESE PROJECTS.
UM, WE ALL KNOW THAT THE BONDS WERE TO ONLY COVER 60 MILLION AND, AND HOWEVER WE CAN BEST UTILIZE THAT $60 MILLION FOR THE THREE TYPES OF PROJECTS IS, YOU KNOW, WHAT, WHAT WE'RE TRYING TO DO.
I UNDERSTAND THAT YOU DIDN'T WANT TO LOCK HERSELF INTO A SPECIFIC DOLLAR MASSIVE PROJECT.
AND SO THE SYSTEMS I'M SAYING HERE'S A BLOCK OF MONEY JUST FOR THE SAKE OF DISCUSSION AND TRY TO TAKE THIS AWAY FROM GUZMAN COUNTY AND AWAY FROM SCHOOL.
IT WAS JUST SAYING I HAD FIVE PROJECTS, 10 MILLION, EIGHT 50 MILLION, RIGHT.
SO I GO TO MY FRIEND WOULD SAY, 50 MILLION BACK IDENTIFIED 10, 10, 10, 10, 10, BUT JUST 50 BANKS.
THEY APPROVED 50 MILLION TOWARD WHATEVER GROUP OF PROJECTS.
AND THEN I BORROW AND SPEND THE 50% ON THE FIRST PROBLEM THAT HAPPENED ON THE OTHER FOUR YEAR ON THE THEORY THAT I COULD SPEND ALL OF IT ON THE FIRST PROJECT.
AND IF THOSE OTHER FOUR PROJECTS ARE CANCELED, THAT'S ONE THING.
IF IT'S GOING TO BE ANOTHER 50, ANOTHER 50, ANOTHER 50, ANOTHER 50, THAT REALLY DOESN'T HOLD TRUE TO THE ORIGINAL REQUEST, WHICH WAS, HERE'S A BLOCK OF MONEY.
IF IT TURNS OUT THAT IT'S 12 AND EIGHT AND 12 AND EIGHT IS 50 THAT'S ONE THING OF IT TURNS OUT I'M A SPEC 50 HABIT PROJECT THAT WAS SUPPOSED TO COST 10.
WHAT DO I DO WITH THOSE OTHER PROJECTS? I GUESS IF THEY GO AWAY, THAT'S ONE THING IT'S JUST, WE'LL FIGURE THAT OUT LATER AND GO SPEND ANOTHER 50 OUT OF X.
I'M JUST TRYING TO, AGAIN, BACK OFF DEEPER FLIES AND NOT TALKING ABOUT GES OR ANYTHING, BUT JUST CONCEPTUALLY, WHAT ARE WE DOING HERE? RIGHT.
THERE'S NO DOUBT THAT WE'RE GOING TO BE ABLE TO FIND THE THREE DIFFERENT PROJECTS WITH THE BOND FUNDS.
CAN WE GET EVERYTHING WANTED ON THE THIRD PROJECT? POSSIBLY.
UM, SO JUST LIKE, WE MAY NOT GET EVERYTHING WE SAID WE WANTED NEW GES PROJECT.
UM, I, I GUESS I'M, I JUST, I JUST WANT TO BE CAREFUL THAT WE, WE DID NOT COMMUNICATE DOLLARS IN THE BOND ROUTE FOR SPECIFIC PROJECTS.
WE DID SAY ALL IN BIG PICTURE HERE IS HAVE A BLOCK GRANT OR BLACK OR MONEY DO THE BEST WE CAN WITH IT.
AND WE DIDN'T GO PROJECT BY PROJECT.
BUT IF THAT 60 IS GOING TO ULTIMATELY COST 120, THAT'S A DIFFERENT DISCUSSION THAN WE SHOULD HAVE HAD.
SO I HEAR YOU THAT WE'RE NOT TIED DOWN SPECIFIC DOLLARS BY PROJECT.
WHAT THE CITIZENS SAID WAS YOU GUYS WERE ASKING FOR A CERTAIN AMOUNT OF MONEY AND OFF WE GO, THE QUESTION OF, SHOULD WE PAY 30 MILLION FOR A SCHOOL OR 80 MILLION FOR A SCHOOL? THAT'S A DIFFERENT QUESTION, BUT, BUT THE BIG PICTURE OF WHAT IS THERE WAS A CHUNK OF MONEY THAT SAYS IT'S OKAY, THAT THAT LEVEL OF INVESTMENT IN OUR PUBLIC EDUCATION SEEMS TO MAKE SENSE.
AND THEY GO OVERWHELMINGLY IN FAVOR AND IT DIDN'T GO PROJECT BY PROJECT.
SO ANYWAY, I JUST WANT TO BE TRUE.
WHAT ACCEPTS CONCEPT IS WHAT WE WANT.
THIS IS WHAT KIND OF AUTHORITY THEY DID GIVE US AND, UH, IN THEIR LIVES.
[00:55:01]
SO I THINK WHAT I'M SAYING, RIGHT, BUT THE, THE 16 MILLION, HOWEVER, ALL THE COSTS FOR THE THREE PROJECTS.SO THERE WAS OTHER FUNDING IN THERE.
AND SO WE, THAT, THAT WAS THAT'S A CIP DISCUSSION WAS NOT PART OF THE BOND AND IT'LL CONTINUE CONTINUING BEING PART OF THE CIP DISCUSSION.
I WAS JUST LOOKING AT THE WORDING OF THE PROPOSED BONDS ARE EXPECTED TO FUND THE FOLLOWING PROJECTS AND THEN THEY LIST THEM.
AND THEN IT SAYS THE SCHOOL BOARD MAY IN THE FUTURE ALTER THESE SPECIFIC PLANS.
SO YOU DON'T KNOW WHERE, WHEN THE PROJECTS ARE DESCRIBED AS THEIR AMOUNT OF TIME TO WRITE EXAMPLES, SO TO SPEAK OF HOW WE INTENDED TO USE THE, AND BARBARA.
AND I KNOW WE WERE VERY CAREFUL WHEN WE WORDED THE BOND REFERENDUM, THAT THEY WERE BROAD ENOUGH, THAT IT COULD ENCOMPASS WHATEVER PROJECTS, HOW THOSE PROJECTS MIGHT CHANGE AS, AS, UM, AS, AS THEY CAME TO FRUITION.
SO, UM, LIKE I SAID, WE, WE, YOU KNOW, WE KNEW THAT THERE WERE ROAD IMPROVEMENTS ON, ON BOTH THE GDS AND THE MIDDLE SCHOOL PARKING LOT PROJECTS.
AND SO, YOU KNOW, IT WAS VERY BROAD THAT WE WOULD BE DOING ROAD IMPROVEMENTS ON BULLDOG WAY.
SO, UM, AND THAT'S, THAT'S THE LEGAL LANGUAGE THAT WE, WE CANNOT, WE CANNOT NOW GO OUT AND USE IF WE WERE IN A DIFFERENT SITUATION.
AND, UM, THE BONDS, UM, OUR PROJECTS CAME IN UNDER BUDGET.
WE COULD NOW GO OUT AND DO SOMETHING AT RANDOLPH ELEMENTARY SCHOOL.
SO WE ARE TIED BY THE LINGUAL LANG LEGAL LANGUAGE.
AND LIKE I SAID, WE, WE MADE SURE THAT WE WORDED IT AS BROADLY AS WE COULD, SO THAT IF THOSE PROJECTS CHANGED OR THEY CAME IN UNDER BUDGET, THAT WE WOULD, WE COULD USE IT STILL IN, IN, IN THE PASSION THAT WE ASKED THE CITIZENS.
I THINK THERE WAS THE APPROPRIATE AMOUNT OF FLEXIBILITY TO DO THE RIGHT THING.
AND I GUESS WE'RE GONNA HAVE SOME FOLLOW ON DISCUSSIONS BETWEEN OUR BOARDS ON THAT.
IS THAT SUPPOSED TO BE A PLAN OR WHATEVER? I, I DON'T KNOW.
I, I JUST, I JUST HAVE SEEN SEVERAL COMMUNICATIONS NOW WHERE, WHERE IT'S, YOU KNOW, IT'S REFERRING TO THE BOND REFERENDUM, UM, STATING A DORM OUT FOR OUR PROJECT, BUT THAT WAS NEVER WHAT WAS DONE DURING THE BOND REFERENDUM.
UM, BUT JUST TOTALLY, I THINK WE JUST HAVE TO BE CAREFUL ABOUT HOW WE WORD IT BECAUSE YOU GUYS ARE DEFINITELY IN CHARGE OF HOW, HOW MUCH FUNDING THIS PROJECT.
THAT'S THAT IS YOUR, UH, SUPPORT A SUPERVISOR'S DECISION.
UM, SO YOU HAVE, YOU HAVE LOTS OF POWER, G S A HAS BEEN DEPRECIATED OVER THE LAST 60 OR 70 YEARS.
I'M NOT SURE THAT YOU'VE PLACED IN APPRECIATION ABOUT I'M LIKE, I DON'T THINK WE, EVEN, WE, THE, YOU ARE SETTING ASIDE A DOLLAR AMOUNT FOR THE DEPRECIATION.
WELL, DARN THAT SPILL WAS SO CHEAP WHEN THEY, THEY MADE IT.
MAYBE, MAYBE THAT'S NOT A GOOD, GOOD WAY TO SET ASIDE MONEY FOR 60 YEARS.
UM, BUT TO GET THE CONCEPTS ARE STILL BATTLING, UM, AND OTHER BUSINESSES, I'M GONNA TOUCH ON A COUPLE OF THINGS REAL QUICK HERE, AND THEN WE'LL SEE, WE'LL OPEN UP CITIZENS' COMMENT IN A MINUTE.
I MEAN, WE'RE, IT'S KIND OF LIKE, YOU KNOW, A LOT OF THIS DISCUSSION HAS BEEN INTERMINABLE.
DO SOME, SOME COUNTY TAXES GIVE SOME COUNTY REVENUES GOES IN COUNTY BUDGET GOES BECAUSE THE COUNTY OPERATES IN ITS BROADER ENVIRONMENT.
UM, THE STATE AND FEDERAL ENVIRONMENT AND THINGS THAT THEY DO DO AFFECT US.
AS WE TALKED ABOUT THE INFLATION AND TOO MUCH PRINTING MONEY AFFECTS GOOCHLAND COUNTY AND OUR REAL ESTATE VALUES MIGHT HAVE BEEN.
UM, SO PRETTY THE PERISCOPE UP ON THE SUBMARINE THAT LOOKING AROUND WHAT'S OUT THERE TODAY, THE FEDERAL RESERVE BOARD IS MEETING AND TOMORROW THEY'LL ANNOUNCE, UM, THEIR INTEREST RATE POLICY.
THE MARKETS RIGHT NOW ARE APPRENTICING AND A HALF PERCENT VOTE.
SO RIGHT NOW THE FED FUNDS RATE A QUARTER PERCENT PRICING, A RAISE FROM A QUARTER TO THREE QUARTERS WITH 8% INFLATION.
SO THEY HAVE SOME LONDA MO AND THEY'RE A LITTLE BEHIND THE CURVE.
[01:00:01]
AT WHICH THEY DO THAT IS GOING TO HAVE IMPLICATIONS AND RIPPLE EFFECTS THAT, THAT GIVES SOME CAPITAL.ONE OF THOSE AFFECTS IS 30 YEAR MORTGAGE RATES THAT HAS NOW GONE FROM ABOUT TWO AND A HALF PERCENT TO 5.1, 5.2% SO FAR.
SO THE 30 YEAR MORTGAGE RATE HAS DOUBLED.
WHAT THAT MEANS IS PROBABLY LESS CASH OUT REFI IS GOING ON, WHERE PEOPLE ARE TAPPING THEIR EQUITY AND REFINANCING, YOU KNOW, BECAUSE THEY DON'T REFINANCE NOT, YOU SHOULD DO THAT, BUT YOU CAN LOWER YOUR RATE PLUS OF CASH AND STUFF, SAME PAYMENT.
WELL, IF YOU REFINANCE NOW YOUR PAYMENT, YOUR INTEREST IS GOING TO DOUBLE.
SO THE TREATING YOUR HOME EQUITY AS AN ATM OR THE CASH SOURCES PROBABLY GOING AWAY ONCE THAT IS A DOUBLE, THE OTHER THING IS, UH, PROBABLY TAKES OUT THE TRADE-OFF WHERE FOLKS ARE SAYING, I'VE GOT MY STARTER HOME.
NOW I WANT TO MOVE UP A LITTLE BIT BECAUSE A LOT OF FOLKS WANT EVEN BE ABLE TO BUY THEIR SAME HOME BACK THAT THERE'S SIGNIFICANT INCREASE IN MORTGAGE PAYMENT.
UH, SO THAT'S GOING TO KIND OF SHUT DOWN THE TRADE UP A LITTLE BIT.
AND OF COURSE, ENTRY LEVEL, SAME THING AFFORDABILITY IS DROPPING.
SO ALL THIS IS GOING TO HAVE AN IMPACT ON HOUSTON COUNTY GOING FORWARD.
WE JUST PASSED OUR BUDGET FOR THE COMING YEAR.
THAT WAS DONE SINCE OUR LAST MEETING, I GUESS.
SO WE PASSED OUR BUDGET AND WE DIDN'T ASSUME A WHOLE LOT OF CHANGE FROM THE CURRENT TRAJECTORY.
WE JUST, BUT THERE MAY OR MAY NOT BE A CHANGE IN TRAJECTORY GOING FORWARD.
SO THIS BODY, YOU HAVE TO PAY ATTENTION OVER THE NEXT TWO OR THREE OR FOUR QUARTERS TO SEE WHAT THE RIPPLE EFFECTS ARE, AND THEN KNOCK OFF EFFECTS OF THESE KINDS OF POLICIES ON.
UM, SO THE, THE INTEREST RATES GOING UP, THE MORTGAGE RATE, GOING UP, UH, CAR PRICES GOING UP, ALL OF THIS IS GOING TO TEND TO SLOW THINGS DOWN A BIT AND TAP THE BRAKES.
THE LAST THING ON THAT MORTGAGE RATES GOING UP IS SOME PORTION OF THE COUNTRY AND SOME PORTION OF OUR COUNTY, YOU KNOW, BORROW ON A FLOATING RATE BASIS.
AND WHEN THAT FLOATING RATE FLOATS, IT'S PROBABLY NOT GOING TO FLOAT DOWN, BUT IT'S PROBABLY GOING TO FLOAT UP AND AGAIN, NOT TO PUT SOME PRESSURE ON FOLKS BEING ABLE TO PAY THEIR TAX BILLS AND THEIR MORTGAGES GENERALLY.
AND SO THIS IS ALL ALREADY DONE.
THESE INTEREST RATES ARE GOING UP TODAY.
THE MORTGAGE RATE IS ALREADY UP.
SO THIS ISN'T LOOKING FORWARD THROUGH IT, CRYSTAL BALL, THIS IS WHAT'S HAPPENING AROUND US.
AND YES, IT WILL HAVE EFFECTS ON, YES, WE DO PAY ATTENTION TO GOING FORWARD.
SO NOTHING TO DO TODAY, BUT JUST A BIT OF A HEADS UP ON THAT.
UM, THE SECOND THING THAT'S HAPPENED OTHER THAN ADOPTING OUR BUDGET FOR THE COMING YEAR, UH, SINCE OUR LAST MEETING WAS WE ISSUED THAT THE GEO BONDS AND TALKED ABOUT GENERAL OBLIGATION BONDS.
THOSE WERE ISSUED AT 2.2% KNOW, 11 BANKS.
YOU KNOW, WE'RE IN A FOOD FIGHT TO BUY.
THEY ALL WANT TO BUY THE ENTIRE DEAL, UH, IN TALKING TO OUR OUTSIDE ADVISOR.
UM, THAT'S NOT THE CASE ANYMORE.
WHEN PEOPLE TRY TO BORROW VERY FEW BUYERS SHOW UP BECAUSE THEY KNOW IF INTEREST RATES ARE GOING TO GO UP, THE BOND PRICES ARE GOING TO DROP.
SO THE BID OR THE PEOPLE WANTING TO BUY BONDS OUT THERE HAS KIND OF PRETTY MUCH DRIED UP.
SO WE WERE ABLE TO SNEAK OUT WHEN MARKETS WERE HOT, LOW INTEREST RATES.
IF WE HAD TO GO OUT TODAY, THAT 2.2 AND IN ALL LIKELIHOOD, AT LEAST 3.2, AND MAYBE AS HIGH AS 3.5, THAT 1% DIFFERENTIAL ON A 50 MILLION IS 500,000 A YEAR.
OVER 20 YEARS, THAT'S ABOUT $10 BILLION.
SO LAST GOING OUT IN FEBRUARY, INSTEAD OF TODAY, WE SIT IN THE COUNTY ABOUT 10 DAYS OR SOMETHING.
I KNOW WE'RE QUICKER FOR NICKELS AND DIMES, BUT 10 MINUTES, A DECENT AMOUNT OF MONEY THAT I'VE SAVED.
SO YOU GUYS DID A GREAT JOB OF RECOMMENDING APPROVAL TO THE BOARD OF SUPERVISORS THAT WE GO AHEAD WITH THAT ISSUING THE BONDS THEN IN THAT WAY.
UM, SO THOSE ARE BASICALLY THREE OF THE THINGS THAT HAVE HAPPENED SINCE OUR LAST MEETING.
YOU SHOULD BOBS AND DEFEND AGAINST MEETING TODAY.
I THINK IT WOULD HAVE TWO O'CLOCK OR SO IF, UH, THEY MAY GO 75 AND MAY GO, PROBABLY NOT GONNA GO 25, 30 TO 50 OR 75, AND THE MARKETS ARE SAYING, THEY'RE GOING TO GO ANOTHER 50 OR 75 OR THE NEXT MEETING OF JUNE, THEY MEET ABOUT EVERY SIX WEEKS OR SO.
TH THE BIG THING IS WHEN THEY ANNOUNCED TOMORROW AND THEY GIVE YOU THE MINUTES OF THEIR MEETING, EVERY ONE OF THE VOTING MEMBERS ON THE FOMC, THE FEDERAL OPEN MARKET COMMITTEE, EVERYONE THAT DOES A DOT PLOT AND SAYS, HERE'S WHAT I THINK THEY'RE GOING TO BE TODAY, TOMORROW THE NEXT DAY.
AND BY YEAR END, RIGHT NOW, THEIR LATEST DOT PLOT SHOWS THAT GOING TO 3% BY YEAR END, SOMEWHERE BETWEEN 2 75 AND THREE RIGHT NOW THEY'RE IN A QUARTER.
SO THEY RAISE THE FED FUNDS RATES FROM A QUARTER TO THREE.
THERE'S A COUPLE OF IMPLICATIONS FOR THIS COMMITTEE TO CONSIDER.
ONE IS OUR RESERVES WILL START BEING A FOUNTAIN OF CASH FOR THIS.
CAUSE THEY'LL START ACTUALLY EARNING SOMETHING RATHER THAN 0.1.
IT MAY EARN ONE OR 2% INSTEAD OF ZERO.
UM, OUR RESERVES THAT ARE IN THE LOCAL GOVERNMENT POOL OR WHATEVER THAT BOOK WE GOT BEFORE MAY START GENERATING SOME.
SO INSTEAD OF BEING A COST OF FUNDS, BY SITTING THERE DOING NOTHING, A SOURCE OF PERFORMANCE, UM, THE OTHER THING IS THAT 50 MILLION THAT WE'RE PAYING INTEREST.
[01:05:01]
IF, IF WE'RE PAYING 2.2 AND THAT IS AWAITING CONSTRUCTION IN A POOL, AND IT'S A SEPARATE ACCOUNT, IF THAT STARTS EARNING MORE THAN 2.2, WE HAVE TO DISCORD THE EXCESS BECAUSE IT'S A POSITIVE ARBITRAGE.WE KNOW THAT THE BORROWED TAX-FREE AND INVEST TAXABLE AND ARBITRAGE THE DIFFERENCE.
SO WE'D HAVE TO DISCORD THAT, BUT THAT'S NOT HERE YET, BUT THAT MAY COME IF IT DOES COME TO THAT, WE HAVE TO GIVE AWAY THE EXCESS, BUT NOT ALL OF IT.
SO WE'D BE ABLE TO HAVE A FREE CARRY ON THAT MONEY UNTIL WE DIDN'T DO IT.
IF SHORT-TERM RATES GO ABOVE OUR LONG TERM RATE THAT WE JUST BORROWED OUT, WHICH IS UNHEARD OF, I'VE NEVER HAPPENED.
I MEAN, THIS COMMITTEE IS REALLY GOOD, BUT WE'RE ALSO A LITTLE LUCKY ON SOME OF THIS STUFF.
UH, BUT IT'S ONE UPDATE EVERYBODY ON THAT AS WELL.
SO THOSE ARE THE ONLY TIME MINUTES I HAD OTHER BUSINESS TO COME BEFORE THIS GROUP, BEFORE WE GO TO THE PUBLIC,
[VII. PUBLIC COMMENT]
NOT PUBLIC MEMBERS OF THE PUBLIC THAT ARE HERE WITH JANICE LIKES TO GO LAST, BUT NOT ALWAYS, NOT ALWAYS.I ALWAYS READ THE ROOM TO SEE IF YOU GUYS ARE GOING TO GET BLESSED OUT.
AND I LIKE TO COME IN AND SAY, THANK YOU.
YOU COULD HAVE MORE THAN THREE MINUTES TO SAY THAT YOU DON'T NEED IT.
UM, I REALLY JUST MAY SOMETHING MORE ABOUT ME THAN YOU FOLKS, BUT I REALLY ENJOY SEEING THE SAUSAGE MADE.
AND, UH, TH THIS CAN ACTUALLY SAVE THREE MINUTES AT TWO O'CLOCK RIGHT.
WHEN WE HAVE TO SAY THANK YOU AGAIN, BUT, UM, YEAH, WHAT YOU GUYS ARE DOING, IT'S IMPRESSIVE.
SO TAKE THAT REPORT IT'S WORTH, UM, TH THE DISCUSSION ON AVAILABLE RESERVES COMMITTED I'M COMMITTED.
UM, THIS IS JUST ME HAVING A POLICY IN PLACE APPEALS TO ME BECAUSE IT SHOWS, THOUGHT WENT INTO IT.
AND IF THERE'S GOING TO BE DEVIATION, FIRE HAS TO GO INTO JUSTIFYING WHY THAT'S DEVIATED.
I'VE SAT THROUGH ENOUGH MEETINGS WHERE I'VE SEEN THE ORDINANCE CHANGED, OFTENTIMES TO BE IN COMPLIANCE WITH STATE LAW, BUT SOMETIMES BECAUSE CHANGING THE ORDINANCE IS A BETTER SOLUTION, BUT THAT REQUIRES THOUGHT AND CONTEMPLATION.
SO IF, IF THIS MEMBER OF THE CITIZEN'S JURY WOULD SOMEWHAT ADVOCATE THAT THERE BE A MANAGEMENT BY OBJECTIVE POLICY IN PLACE IN MY LITTLE NOTES WAS THE MBO IS MAINTAINED.
AAA RATING, AAA RATING IS INFLUENCED BY AVAILABLE RESERVES.
LET'S DEFINE WHAT THAT BOGEY IS AND HAVE A POLICY IN PLACE TO MAKE SURE THAT THAT BOGEY IS MATTE.
AND THEN IF A FUTURE BOARD WERE TO CHOOSE TO DEVIATE FROM THAT POLICY, THEN THERE WOULD HAVE TO BE NOT JUST BECAUSE, BUT THIS IS THE REASON FOR DEVIATION FROM THAT POLICY.
SO I UNDERSTAND A POLICY IS NOT AN ORDINANCE, BUT I SEE ORDINANCE IS BEING CHANGED IN, IN YES, A POLICY CAN BE CHANGED, BUT THIS AGAIN IS MY PERSPECTIVE THAT WOULD TAKE SOME THOUGHT AND RATIONALE, AND NOT JUST, WELL, YOU KNOW, 10%, 9% IN A, NOT A BIG, BIG DEAL.
AND THEN ALSO I APPRECIATED THE COMMENTS ON THE SCHOOL BOND.
I BARRACKS IN WORK, THE POLLS, I'VE ENCOURAGED PEOPLE TO CONSIDER VOTING YES.
AND, AND, UH, YES, 60 MILLION WAS WHAT WAS FOR THE SCHOOLS.
AND, UM, IT CAME BACK A LITTLE BIT IN A PERSONALIZED, AND THIS, WHEN OUR OLDEST SON WAS GOING OFF TO COLLEGE, WE DID THE 5 29 PLAN.
AND WE HAD A BUCKET OF MONEY THERE SAYS, HERE'S WHAT YOU GOT FOR COLLEGE.
AND THAT PRETTY MUCH DIRECTED HIM TOWARDS VIRGINIA SCHOOLS.
HE CHOSE TO GO TO AN OUT-OF-STATE PRIVATE SCHOOL AND THE DELTA WAS NOT SOMETHING WE WERE GOING TO MAKE UP.
HE HAD HIS OWN CAR, IF YOU WILL BAKE SALE.
UH, HE GOT SCHOLARSHIP MONEY FROM THAT SCHOOL TO MAKE UP.
THE DIFFERENCE IN, IN THE, OUR DIFFERENCE THEN WAS MAYBE 800 BUCKS A YEAR.
SO IF WE SAID THE ELEMENTARY SCHOOL WAS GOING TO BE AX AND IT'S GOING TO BE X PLUS, BUT WE DON'T EXCEED THAT $60 MILLION CAP AGAIN IS ONE MEMBER OF THE PUBLIC.
I NEVER REALLY REALIZED WHY AN EXTRA GYM WAS NECESSARY BECAUSE I WENT TO A VERY SMALL LITTLE SCHOOL.
WE USE THE CAFETERIA FOR GYM, FOR WRESTLING, FOR ALL KINDS OF THINGS.
SO IF YOU HAD TO MAKE CHANGES IN WHAT THAT 60 MILLION WENT TO, AS LONG AS WE DON'T EXCEED THAT 60 MILLION, THIS VOTER WOULD FEEL LIKE THE DEAL WAS CAP.
UH, AND THAT'S JUST, IT'S NOT EVEN THREE MINUTES, BUT ON THE STOP ANYWAY.
UM, THANK YOU FOR THOSE COMMENTS, UH, ON THE FIRST GUY, MAN, UH, FENCING OFF, UH,
[01:10:01]
AND AVAILABLE ABOUT, UH, IF YOU DREW DOWN ON YOUR SIDE, YOU NEED TO INCREASE THE OTHER SIDE TO OFFSET IT.SO IF YOU HAVE A TOTAL AVAILABLE, WE HAVE A POLICY AT REVENUE STABILIZATION WHERE IT DOESN'T MEAN YOU CAN'T TOUCH IT.
IF THERE'S A RECESSION OR DIP IN THE REVENUES, YOU CAN TOUCH, IT COULD BE ALSO IN OUR POLICY THAT IF YOU TOUCH IT, THIS IS HOW YOU MUST RESTORE IT OVER THE THREE-YEAR PERIOD, EQUAL AGREEMENTS, THAT KIND OF THING.
SO IT'S NOT THAT IT'S, THE POLICY IS HARD AND FAST.
IT'S IF YOU DO, YOU JUST NEED TO HAVE A THOUGHTFUL PROCESS OF WHY YOU'RE ACCESSING IT AND IN A THOUGHTFUL PROCESS ABOUT HOW YOU RESTORATIVE GET IT BACK TO WHERE IT SHOULD BE.
SO IT'S NOT THAT IT'S HANDS OFF AND YOU CAN'T TOUCH IT UNDER ANY CIRCUMSTANCES.
IT'S JUST, YOU KNOW, MAKE SURE YOU JUSTIFY, I UNDERSTAND MISS HORLOCKER ALREADY WHAT'S QUALITY TIME INTO THE BUDGET, BUT IF THERE WERE A LINE ITEM IN THERE THAT INCORPORATED ANNUAL CIP EXPENSES, BECAUSE THEY'RE REAL, THEY'RE ABSOLUTELY REAL.
UH, AND, AND TO NOT HAVE THEM IN THE OPERATING BUDGET IS A LITTLE DISINGENUOUS.
I MEAN, BECAUSE IT REALLY IS GOING TO BE A COST THERE.
SO WHAT THAT MIGHT DO TO YOUR WORKLOAD, I'M NOT, I'M JUST SPEAKING AS THE PERSON THAT DOESN'T HAVE TO DO IT PERSON.
SO JOSH, WE'VE HAD SOME PRELIMINARY DISCUSSIONS ABOUT THE NET EFFECT WOULD BE TO MAKE ROOM FOR IT.
YOU DON'T NEED TO EXCHANGE OR COMPROMISE ON SOME OF YOUR CONSERVATIVE NEWNESS IN YOUR BUDGETING, BECAUSE THAT'S WHAT YOURS, THE SURPLUS.
SO YOU'RE CONCERNED WITH THE REVENUE FORECAST AND IT GENERALLY COMES WITH MONDAYS.
YOU MAY END UP HAVING TO TAKE YOUR REVENUE FORECAST UP A LITTLE BIT TO MAKE ROOM FOR IT BECAUSE THE BIG MOVE FORWARD WITHOUT COMPROMISING YOUR CONSERVATIVE, ISN'T YOUR BUDGET.
THEN YOU TALK ABOUT CUTTING SERVICES OR RAISING TAXES, DOING SOMETHING AND MAKE ROOM FOR IT.
BUT THE CUTTING SERVICES PARTIES, YOU DON'T SPEND AS MUCH SOMEWHERE ELSE.
I MEAN, NOT LIKE HE FEELS MY ELECTRIC BILL KNOW MY CIP EXPENSES, MY CX NETS, YOU KNOW, IT'S A REAL EXPENSE.
AND THAT EFFECTIVELY IS THE WAY WE'VE MET OUR CONSERVATIVE BUDGETING.
AND IT'S SIMPLY BALANCED BECAUSE I WENT FOR THE RADIO.
I SAID, WHAT IF REVENUES FALL SHORT? I SAID, WELL, IF OUR REVENUES FALL SHORT OR BUDGET COMES ALL THE WAY DOWN TO BALANCED BECAUSE WE'VE BEEN RUNNING SURPLUSES EVERY YEAR AS OUR FIRST TERRIBLE THING THAT MIGHT HAPPEN, WE MIGHT HAVE A BALANCED BUDGET, BUT YOU'D HAVE TO DEFER THE TAP BACKS.
AND THAT'S, THAT'S ALWAYS AN OPTION TO BE ABLE TO SAY, OKAY, THE CONSERVATIVE BUDGET DIDN'T WORK.
AS THE MARKETS TURNED AGAINST US, MORTGAGE RATES WENT UP AND THEN IT JUST CAME DOWN.
AND THAT TOOK ALL OF THE CONSERVATIVE TO OFFSET THAT GOOD NEWS IS WHERE A BALANCED BUDGET WOULD HAVE TO FIRE PEOPLE.
BUT BAD NEWS IS WE CAN'T DO AS MANY PROJECTS THIS YEAR.
WE HAVE TO DEFER SOME OF THAT.
SO THAT, THAT'S KIND OF THE WAY WE'VE BEEN DOING IT, CORRECT ME IF I'M WRONG.
SO YES, WE'VE HAD SOME PRELIMINARY DISCUSSIONS RIGHT NOW.
WE COULD PROBABLY CONTINUE TO HAVE DISCUSSIONS AROUND THAT WHAT'S THE RIGHT WAY TO DO THIS BECAUSE THERE IS NO RIGHT OR WRONG.
IT'S JUST THE WAY GROUPS AND WANTS TO DO IT.
AND SO TO THAT, THOSE KINDS OF DISCUSSIONS, UM, THAT'S THAT SENSE OF NOTHING.
UM, OTHER FOLKS SAID, KIMBERLY, DO YOU HAVE ANY PEARLS OF WISDOM YOU'D LIKE TO SHARE WITH THE GROUP RIGHT THERE.
WE DO APPRECIATE YOUR ATTENDANCE AT THESE MEETINGS.
UH, ANYTHING ELSE? ALL RIGHT, WELL SEEING NONE, I'M GOING TO GO AHEAD AND ADJOURN THIS MEETING
[VIII. ADJOURNMENT TO 12:30 PM AUGUST 2, 2022]
UNTIL OUR NEXT MEETING, UH, WHICH IS AT 12:30 PM ON AUGUST 2ND, 2022 TO THANK EVERYBODY FOR ATTENDING.AND IT'S BEEN A GREAT DISCUSSION AND WE'RE CONTINUING GOING FORWARD.
HE ANSWERED THAT ABOUT 15 MINUTES TILL OUR NEXT MEETING.