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GO AHEAD AND GET STARTED.WE HAVE A SECRETARY TO TAKE NOTES.
WE HAVE IT BEING, UH, RECORDED AND, UH, THERE'LL BE MINUTES IN OUR NEXT MEETING.
SO, UH, IT'LL BE WELL DOCUMENTED AND, AND PLENTY OF TRANSPARENCY.
SO IDEALLY WE'D HAVE THIS LIVESTREAMED AS WELL.
SO THAT SAID, UH, LET ME GO AHEAD AND CALL THE, UH, THIS MEETING OF THE BOARD OF SUPERVISORS FINANCE AND AUDIT COMMITTEE MEETING FOR DECEMBER 6TH, 2022 TO ORDER.
I BELIEVE THERE ARE FIVE VOTING MEMBERS.
I THINK ONE VOTING MEMBER IS NO LONGER WITH US.
SO WE HAVE FOUR VOTING MEMBERS AND WE HAVE A QUORUM SO WE CAN CONDUCT BUSINESS, UH, ON THE AGENDA TODAY.
THERE'S GOOD NEWS AND BAD NEWS.
THERE'S ALWAYS GOOD NEWS AND BAD NEWS.
THE GOOD NEWS IS THE COUNTY IS IN THE STRONGEST FINANCIAL POSITION IT'S EVER BEEN IN, AND THAT'S THE GOOD NEWS.
THE BAD NEWS IS THERE ARE FORCES CONSPIRING AGAINST US
AND WE'LL GET INTO MORE OF THAT LATER.
UM, BUT SINCE THIS IS THE DECEMBER MEETING, THE FINAL MEETING, UM, I KNOW YOU ALL HAD A CHANCE TO TALK AMONG YOURSELVES BEFORE THE MEETING THAT WILL CONSTITUTE AS OUR CHRISTMAS PARTY FOR THIS COMMITTEE THIS YEAR.
WE ARE SUPPOSEDLY RESPONSIBLE.
SO, UH, NOW, UM, WE'LL TALK ABOUT A COUPLE OF DIFFERENT THINGS TODAY.
UH, WE'VE GOT, UM, OUR AUDITORS HERE WHO ARE GONNA PRESENT, LET'S SEE IF I'VE PRONOUNCE THAT DIFFERENTLY.
THEY'RE GONNA PRESENT OR GIVE US A PRESENT, ONE OF 'EM, TWO IN BOTH.
UM, AND, UH, WE'RE LOOKING FORWARD TO THAT.
AND, UH, WE HOPE THERE'S ONLY GOOD NEWS THERE, BUT WE'LL SEE.
UM, WE'RE ALSO GONNA, UH, WHICH, WHICH WILL, WHICH WILL BE THE AUDIT FOR OUR FY 22 ENDED JUNE 30TH OF THIS YEAR.
UM, UH, BUDGET, THE AUDIT OF THAT BUDGET.
AND THERE'S NO UPDATE AT THIS MEETING FOR OUR F Y 23, WHICH IS OUR CURRENT BUDGET BECAUSE THERE'S NO QUARTER IN THAT.
UM, THE END OF THIS MONTH WILL BE THE QUARTER IN WILL REPORT ON THAT LATER.
UH, AND THEN YOU'VE GOT THE F Y 24 BUDGET, WHICH WILL STARTS WITH WILL, UM, THE BUDGET SEASON STARTS NEXT MONTH.
SO JULY OR JANUARY THROUGH APRIL WILL BE OUR BUDGET SEASON FOR THE F Y 24 BUDGET.
SO THIS COMMITTEE WILL BE INVOLVED WITH, UH, SOME OF THE BUDGET DISCUSSIONS FOR, FOR THE COMING BUDGET.
AND THEN THE, UH, LAST ITEM WAS, UH, THERE'S SOMETHING THAT GOON THE ELEMENTARY SCHOOL, I THINK IT'S CALLED GES.
UM, AND EVIDENTLY THE SCHOOL IS FOUND OUT THAT IT'S BETTER TO GIVE THE RECEIVE.
THEY'RE ASKING US TO GIVE THEM SOME MORE MONEY.
SO
UM, AND THEY DID TIME IT WELL.
CAUSE THIS IS A SEASON OF MIRACLE.
SO WE'LL SEE IF WE CAN'T COME UP WITH A MIRACLE.
UH, I'M RUNNING OUT OF CORNY JOKES, SO WE'RE GONNA HAVE TO GET DOWN TO BUSINESS AT SOME POINT HERE.
RECORD WIDE WIDESPREAD LAUGHTER.
AND, UH, FORMALITY CHAIR, I DON'T THINK YOU OR RUN OUT OF CORN
DON'T PUT THAT IN THERE EITHER.
LET'S GET DOWN TO BUSINESS FOLKS.
UM, SERIOUSLY, FIRST UP IS THE PRESENTATION OF THE FISCAL YEAR 22 ANNUAL COMPREHENSIVE FINANCIAL REPORT BY THE COUNTY'S EXTERNAL AUDITORS.
FOR SOME OF THOSE THAT ARE, HAVE BEEN ON THIS COMMITTEE FOR A WHILE, YOU REMEMBER THAT, UH, WE HAD A SPECIAL BOARD MEETING THE END OF NOVEMBER TO APPROVE IT PRIOR TO THE END OF NOVEMBER, DUE DATE TO THE STATE OF VIRGINIA WITH A CHANGE IN STATE LAW, THEY'VE GIVEN US, UH, EXTRA TIME.
SO THIS, UH, AUDIT, UH, FINANCIAL REPORT IS NOT DUE TO THE STATE UNTIL DECEMBER 15TH.
SO THERE WAS NO NEED FOR A SPECIAL MEETING.
UM, THE ORDINARY, UH, UH, COURSE OF, OF MEETINGS WILL, WILL BE SUFFICIENT FOR US TO GET THIS IN, UH, ON TIME WITHOUT AN ASTERISK THAT SAYS WE'VE DELIVERED IT, UH, AFTER THE, THE DUE DATE.
SO WITH THAT SAID, UM, MR. GARBER, UH, FROM PB HARRIS, WOULD YOU LIKE TO WALK US THROUGH, UH, YOUR PRESENTATION? I WOULD, MR. CHAIRMAN, AT ANY TIME.
IT IS A PRESENT FOLLOW UP, YOUR
UM, YOU HAVE SEVERAL DOCUMENTS IN FRONT OF YOU.
YOU HAVE A COPY, HOT OFF, IMPRESSIVE OF YOUR ANNUAL COMPREHENSIVE FINANCIAL REPORT.
UM, I'M NOT GONNA FLIP THROUGH THIS PAGE BY PAGE.
YOU HAVE A COPY OF OUR REQUIRED AUDIT COMMUNICATIONS WITH YOU.
UM, AND AND TO THIS COMMITTEE.
AND AGAIN, I'M NOT GONNA GO THROUGH THAT, BUT I WOULD ASK YOU SPEND A LITTLE TIME JUST LOOKING THROUGH THAT DOCUMENT.
THAT PRETTY MUCH SUMMARIZES A LOT OF THE WORK WE'VE DONE.
UM, THE RESULTS OF THE AUDIT AND EVERYTHING THAT ARE IS IN THOSE TWO DOCUMENTS.
SO JUST STARTING WITH THE OVERALL AUDIT RESULTS, UM, FOR THE COUNTY OF GO, THE WEEK ISSUED AN UNMODIFIED OPINION WHEN THE FINANCIAL STATE, SO THAT'S WONDERFUL.
THAT'S THE OPINION YOU'RE LOOKING FOR.
UM, THAT MEANS WE HAD NO REASON TO MODIFY OUR OPINION AND THAT'S HOW YOU DEFINED UNMODIFIED IS WE DIDN'T MODIFY IN THE WORLD OF COUNTY.
CAUSE WE DIDN'T HAVE TO QUALIFY.
UM, WE ALSO ISSUED REPORTS, UM, FOR THE OMB COMPLIANCE UNIFORM GUIDANCE ON YOUR
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SINGLE AUDIT.I'LL TALK A LITTLE BIT MORE ABOUT THAT IN A SECOND.
UM, AND ON INTERNAL CONTROLS AND COMPLIANCE IN GENERAL.
AND BOTH OF THOSE REPORTS HAD NO FINDINGS AND NOTHING TO REPORT.
UM, AS WELL, OUR AUDIT WENT FOR THE MOST PART IS PLANNED.
UM, WE SPENT A LOT OF TIME, UM, PLANNING YOUR AUDIT BEFORE WE EVEN STEP FOOT HERE AND BEGIN THE PROCESS.
WE SPEND A LOT OF TIME AFTER WE'VE LEFT WRAPPING UP, CONCLUDING AND, AND FINISHING OUR REVIEWS.
UM, EVERYTHING WENT AS, AS SCHEDULED.
CARLA, I WERE JUST TALKING ABOUT HOPEFULLY SOME WAYS WE CAN SPEED SOME THINGS UP, MAYBE DO THINGS A LITTLE MORE TIMELY NEXT YEAR.
UM, ALWAYS LOOKING TO TRY TO IMPROVE THE PROCESS FROM PLANNING TO END AND, AND GET THINGS DONE A LITTLE QUICKER.
BUT WE ARE HERE TODAY AND WE'RE GONNA MAKE THE DEADLINE OF THE 15TH, UM, NOON TO THE NEXT PAGE.
THERE ARE, OF COURSE, THERE ARE OTHER ITEMS JUST BESIDES THIS FINANCIAL DOCUMENT THAT WE'RE REQUIRED TO DO.
AND THE AUDITOR OF PUBLIC ACCOUNTS REQUIRES US TO DO, THERE'S SOME WORK WE DO AT THE SHERIFF'S OFFICE, UM, THAT WAS COMPLETED.
UM, WE ALSO HAVE TO DO THE APA TRANSMITTAL FORM, WHICH TAKES THIS DOCUMENT AND REGURGITATES IT INTO A FORM THAT THEY WANT, UM, WITH THE SAME NUMBERS IN A DIFFERENT FORMAT THAT'S DUE BY THE 15TH.
UM, IF IT'S NOT IN, IT WILL BE BY THE 15TH.
SO WE DON'T GET THAT ASTERISK.
UM, WE DO LOTS OF VRS EXAMINATION REPORTS FOR THE COUNTY AS WELL AS THE SCHOOLS.
THOSE HAVE BEEN COMPLETED AND SUBMITTED.
UM, WE HAVE TO DO SOME LANDFILL WORK AND CERTIFICATION ON THE CLOSURE AND POST CLOSURE LIABILITIES AND THAT WILL BE COMPLETED.
UM, AND THEN THE DATA COLLECTION FORM IS A SUMMARY OF THE SINGLE AUDIT WORK THAT GOES TO THE CLEARING HOUSE.
UM, AND WE'LL HAVE, I THINK, WELL USUALLY YOU HAVE 30 DAYS TO GET THAT FINISHED, BUT THERE IS A, UH, A WAIVER OUT THERE CAUSE OF THEM GETTING GUIDANCE OUT LATE.
WE HAVE SIX MONTHS, HOWEVER, WE'RE GONNA GET THAT DONE IN 30 DAYS CAUSE WE'D LIKE TO BE DONE.
SO THOSE THINGS, SOME OF THEM ARE FINISHED.
UM, SOME OF THEM ARE STILL IN PROCESS, BUT WE'LL MEET ON THE DUE DATES OF ANXIETY.
JUST TALKING ABOUT SOME OF THE KEY JUDGMENTS AND ESTIMATES THAT WE USE IN THE FINANCIALS.
CAPITAL ASSETS UNDER THAT NEW, THAT FIRST LINE THERE THOUGH, YOU'LL SEE SOMETHING NEW CALLED RIGHT TO USE ASSETS, OTHERWISE KNOWN AS LEASES.
BUT HAVING FORBID, WE USED THE WORD LEASE THAT WE'VE ALL KNOWN FOR 30, 40 YEARS.
LET'S CALL IT SOMETHING DIFFERENT.
WE CALL IT RIGHT TO USE ASSETS.
UM, AND SO THOSE ARE AN ESTIMATE LIKE DEPRECIATION, AMORTIZATION, WE HAVE TO USE DIFFERENT INTEREST RATES, THINGS OF THAT NATURE TO CALCULATE OUR RECEIVABLE IN OUR LIABILITIES THERE.
DOUBTFUL ACCOUNTS, RETIREMENT BENEFITS, LANDFILL CLOSURE INVESTMENTS, THINGS OF THAT NATURE ARE ALL, UH, SOME, SOME TYPE OF ESTIMATE.
AND OF COURSE, AS I JUST TALKED ABOUT, WE DID IMPLEMENT GASB 87 THIS YEAR LEASES.
UM, IT REALLY DID NOT HAVE A SIGNIFICANT, TOO BIG OF AN IMPACT ON YOUR FINANCIAL STATEMENTS.
I REALLY DON'T THINK THERE, IF YOU LOOK THROUGH THE FINANCIAL STATEMENTS AND YOU STARTED THE VERY FIRST ONE CALLED THE ENTITY WIDE, YOU'LL SEE SOME NEW LINES FOR LEASE RECEIVABLE, UM, DEFERRED REVENUES AND SOME LEASE LIABILITIES IN THERE.
BUT AGAIN, NOT A SIGNIFICANT AMOUNT.
AND THAT GSB JUST FOR THOSE, UM, MAYBE UNFAMILIAR THAT GSB REQUIRES US TO CAPITALIZE OPERATING LEASES.
PREVIOUSLY, IF IT WAS A CAPITAL LEASE, WE ALREADY HAD IT ON THE BOOKS AND OUR CAPITAL ASSETS AND THE LIABILITY OPERATING LEASES WERE NOT CAPITALIZED AND PUT ON THE BALANCE SHEETS.
UM, NOW EVERY LEASE THAT'S MORE THAN 12 MONTHS LONG OR LONGER IS PUT INTO THE FINANCIAL STATEMENTS.
AND WE NO LONGER HAVE CAPITAL VERSUS OPERATING IS JUST A LEASE FOR OUR RIGHT TO USE ASSETS.
AUDIT ADJUSTMENTS AGAIN FOR THE COUNTY AND SCHOOL, WE HAD NONE, WHICH IS FANTASTIC.
UM, AND THERE WERE NO PROPOSED ADJUSTMENTS, UM, NOT MADE BY THE COUNTY OR SCHOOLS AS WELL.
SO, UM, LOOKING AT THE SINGLE AUDIT, UM, AND MR. PETERSON WILL POINT OUT IS WHEN WE TOOK THIS AUDIT OVER, UM, A FEW YEARS AGO, WE WERE NOT A LOW RISK AUDITEE, BUT WE HAVE WORKED THROUGH ALL OF THOSE PROBLEMS. WE HAVE BEEN A LOW RISK AUDITEE NOW FOR SEVERAL YEARS.
UM, WE HAD NO FINDINGS THIS YEAR AS WELL.
SO THAT SHOULD CONTINUE AT LEAST FOR ANOTHER YEAR.
AND IF YOU LOOK AT THE PROGRAMS TESTED, UM, YOU KNOW, FOR YEARS AND YEARS AND YEARS, IT WAS THE SAME ONE.
UM, WE'RE LOOKING AT SCHOOL FOOD, NUTRITION, WE'RE LOOKING AT DIFFERENT THINGS AND SOCIAL SERVICES.
WHEN NOW WITH ALL OF THE COVID MONEY AND ARPA MONEY, EVERY ONE OF THESE PROGRAMS HAD TO DO WITH ALL OF THE EXTRA FUNDS THAT WERE HANDED OUT, UM, OVER THE LAST COUPLE YEARS.
AND SO THAT REALLY TOOK UP ALL OF THE SINGLE AUDIT WORK THIS YEAR AND WE HAD NO FINDINGS WHEN WE LOOKED AT ANY OF THOSE FUNDS.
AND JUST FOR THOSE, AGAIN, THAT MAYBE NEW TO THE COMMITTEE, UM, HIGH RISK VERSUS LOW RISK.
THEY DO A MORE EXTENSIVE SAMPLING.
INSTEAD OF 10 TO 15%, THEY MIGHT DO 25, 30%.
I DON'T WANNA PUT PERCENTAGES TO IT, BUT THE IDEA IS YOU'D HAVE TO DO A DEEPER DIVE EVERY YEAR IF YOU'RE A HIGH RISK.
TAKES MORE TIME, MORE EFFORT, MORE EXPENSIVE.
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SO BEING A LOW RISK AUDIT MEANS THAT THERE'S SOME ELEMENT OF TRUST THAT WE'RE DOING THE RIGHT THINGS AND THEY DON'T HAVE TO SAMPLE QUITE AS, AS HEAVILY.WE HAVE TO LOOK AT, WE HAVE TO LOOK AT TWICE THE AMOUNT OF DOLLARS IN FEDERAL EXPENDITURE.
SO LOW RISK, WE CAN LOOK AT 20% OF THE DOLLARS AND AUDIT THOSE.
IF YOU WERE HIGH RISK, WE'D HAVE TO LOOK AT LEAST 40%, 20 TO 40.
AND IT TAKES A COUPLE YEARS TO GET OUTTA THAT BOX.
ONCE YOU'RE IN THAT PENALTY BOX.
ONCE YOU HAVE A, IT TAKES TWO YEARS IN A ROW OF CLEAN, UM, REPORTS BEFORE YOU CAN COME BACK TO A LOW RISK.
TAKES ABOUT THREE YEARS TO GET IT.
YOU SIR? UM, JUST SOME OTHER AUDITOR REQUIRED COMMUNICATION.
UM, AGAIN, WE FOLLOW THE, WHAT'S KNOWN AS THE YELLOW BOOK OR GOVERNMENT AUDITING STANDARDS TO COMPLETE OUR AUDITS.
UM, WE FOLLOW THE UNIFORM GUIDANCE THAT DEALS WITH FEDERAL DOLLARS.
UM, COUNTING POLICIES, YOU KNOW, THE ENTITY IS RESPONSIBLE FOR ADOPTING ACCOUNTING POLICIES AND PROCEDURES, THINGS THAT ARE IN PLACE.
SO AGAIN, THAT'S MANAGEMENT'S RESPONSIBILITY TO DO THAT.
WE COME IN AND LOOK AT IT, WE TEST IT.
UH, WE MAKE RECOMMENDATIONS AS WE SEE FIT.
UM, SOMETIMES THOSE RECOMMENDATIONS REQUIRE TOO MANY DOLLARS, TOO MANY PEOPLE TO DO.
UM, BUT AGAIN, SOMETIMES I SEE THINGS OFFER ANY TYPE ASSISTANCE IF NECESSARY.
UM, TURNING TO PAGE DISAGREEMENTS WITH MANAGEMENT.
THERE WERE NONE THAT WE ENCOUNTERED AT ALL WITHIN OUR AUDIT.
NO SIGNIFICANT ISSUES, UM, OR DIFFICULTIES AT ALL PERFORMING OUR PROCEDURES.
AND OF COURSE, I THINK IN THIS DOCUMENT, UM, I HAVE WRITTEN HERE A COPY OF THE ARRANGEMENT LETTER AND THE REPRESENTATION LETTER, BUT I BELIEVE WE'RE DOWN TO JUST INCLUDING A COPY OF THE REPRESENTATION LETTER IN THIS DOCUMENT.
UM, SO YOU CAN SEE WHAT MANAGEMENT REPRESENTED TO US AT THE END OF THE, JUST A FEW OTHER ITEMS TO GO OVER.
UM, WHENEVER TIME YOU SEE THAT BULLET POINT THAT SAYS, FOR ALL NEW ILLEGAL ACCIDENT ALWAYS DRAWS YOUR ATTENTION.
AND, BUT YOU NEED TO LOOK TO THE RIGHT WHERE IT SAYS, WE DID INQUIRIES, WE DID SOME OBSERVATIONS, WE DIDN'T SEE ANYTHING.
UM, DOES IT MEAN SOMETHING WASN'T THERE? BUT EVERYTHING THAT WE LOOKED AT, THINGS WE TESTED, UM, INQUIRIES THAT WERE MADE, WE DID NOT UNDISCOVER DISCOVER ANYTHING WE THOUGHT NEEDED TO BE RECORDED.
OKAY? SO, UM, AND ENFORCE INDEPENDENCE AT ALL TIMES IS MAINTAINED WITH MYSELF, OUR TEAM, ANYBODY THAT HAS TO DO WITH P MAYORS.
WE MAKE SURE THAT WE STAY COMPLETELY INDEPENDENT OF THE COUNTY OR ANY OF ITS COUNTY UNITS AS WELL TO MAKE SURE WE CAN RENDER AND UN UNMODIFIED ANNUAL AUDIT.
AND WITH THAT, UH, I DON'T HAVE ANYTHING ELSE TO HEAR ON THIS DOCUMENT.
I THINK THE TWO AREAS THAT WERE NEW THIS YEAR, ONE WERE THE LEASES THAT WE TALKED ABOUT.
UM, ANOTHER AREA THAT IT'S NOT NEW.
WELL, WE'RE ALMOST SIX MONTHS INTO THIS FISCAL YEAR.
SO SOON WE START THAT PROCESS BETTER.
SO ENJOY CHRISTMAS,
DOES THIS SCHOOLS LEASE THE BROADBAND HOCKEY PRODUCTS THAT USED TO DISTRIBUTE AT THE RIGHT.
UH, SO THOSE ARE CRITIQUES, THOSE ARE OUR HOT SPOTS.
THOSE LEAST, UH, THOSE ARE, UM, IT'S JUST WE ACTUALLY BOUGHT THE DEVICES AND THEN, UM, IT MAY FALL INTO THE SOFTWARE LEASE, RIGHT? SO THE FISCAL DEVICES ARE OWNED BY US, BUT THE SOFTWARE TO RUN THEM IS LEASED AND, BUT IT'S, AND IT'S AN ANNUAL LEASE.
I'M HOPING IT FALLS OFF THE RADAR THAT THAT'S, THAT'S WHAT, UM, CARL AND I WILL BE EXPLORING, UH, SOON IS WHAT, WHAT WE HAVE TO LOOK FOR.
AND WE'RE NOT TOTALLY CLEAR ON THAT YET.
TRYING TO SIMPLIFY YOUR LIFE BY, ONCE WE DISTRIBUTE QUAD BAND TO THE HOME THROUGHOUT THE COUNTY, YOU NEED ONE LESS LEAST TO CAPITALIZE FISHING FOR A WAY TO SIMPLIFY YOUR, WE'LL TAKE IT.
WELL, THERE'S NO OTHER QUESTIONS, UH, MIKE, APPRECIATE THAT.
IF YOU STAY THROUGH THIS BUSINESS MEETING OR THE THANK YOU QUESTION.
THAT WAS THE, UH, FIRST IT ON THE AGENDA.
WELL ACTUALLY, WE, WE MISSED THE FIRST TIME AGENDA, WHICH IS OUR LAST MEETING.
THOSE WERE DISTRIBUTED IN ADVANCE.
YOU'VE ALL HAD A CHANCE TO READ THEM WHILE ANY S DELETIONS OR CORRECTIONS TO THE MINUTES FROM OUR LAST MEETING SAYING NONE WILL ENTERTAIN A MOTION TO PROVE THE MINUTES MOVED.
DO WE HAVE A SECOND? MOVED AND SECONDED.
ALL IN FAVOR SIGNIFIED BY SAYING AYE.
ANY OPPOS MAY AND ANY EXTENSIONS? OKAY, MOTION IS PASSED, THE MINUTES ARE APPROVED.
APPROVED, THEN WE'RE BACK ON TRACK.
WE JUST WENT THROUGH THAT ALREADY.
UM, NO UPDATE ON THE CURRENT YEAR, ALTHOUGH I GUESS THE ARE STILL ON AND THE HEATING AND AIR CONDITIONING STILL WORKS.
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I GUESS OUR BILLS ARE BEING PAID.UH, I BELIEVE WE'RE STILL RUNNING SLIGHTLY AHEAD OF SCHEDULE THIS YEAR, WHICH IS GOOD NEWS THANKS TO OUR BUDGETING.
AND THEN, UH, THE NEXT YEAR'S BUDGET CYCLE HAS ALREADY BEEN SOME PRELIMINARY MEETINGS, UH, OFFICIALLY KICKS OFF, I GUESS IN JANUARY THROUGH APRIL.
AND, UH, UH, THAT'S GONNA REQUIRE SOME, SOME, SOME, UH, SOME THOUGHT THIS YEAR VERSUS PRIOR YEARS WHERE IT WAS JUST 5% DRIFT HIGHER.
UM, WE'VE GOT THREE OR FOUR OR FIVE SHIFTING UNDERLYING TRENDS.
UM, WE KNOW THAT, UH, WE'RE GOING THROUGH THE APPRAISAL THIS YEAR, WHICH WE DO ONCE A YEAR.
WE SEND OUT BILLS TWICE A YEAR.
THAT MEANS ALL OF THE PROPERTIES IN THE COUNTY.
UM, THEIR APPRAISALS ARE STALE BY 12 MONTHS AND WE KNOW WHAT HAPPENED OVER THE LAST 12 MONTHS, BUT INFLATION AND PRICES OF HOMES AND THAT KINDA THING.
SO WE DON'T KNOW EXACTLY WHERE THAT'S GONNA COME IN.
BUT THE DRIFT OVER THE PREVIOUS 12 MONTHS, UH, SEEMED TO HAVE BEEN HIGHER THE DRIFT OVER THE NEXT 12 MONTHS.
MAYBE IT'LL, SO THERE'S MAYBE A PIVOT IN THERE SOMEWHERE.
AND WE NEED TO THINK ABOUT HOW THAT MIGHT AFFECT THE AUDIT.
UM, THERE'S NEW CONSTRUCTION GOING ON, SO THAT'LL BRING IN SOME NEW CONSTRUCTION.
UM, ONES THAT TURNING, TURNING DIRT GOING VERTICAL TEND TO FINISH THEIR PROJECTS AND NOT STOP HALFWAY THROUGH.
UM, SO THERE'D BE SOME FOLLOW THROUGH ON SOME OF THE NEW CONSTRUCTION THAT'LL BRING ON SOME NEW, SOME NEW PROPERTIES AS WELL.
WE KNOW THE FUNDRAISER HAS BEEN RAISING INTEREST RATES, UH, FAIRLY DRAMATICALLY.
THAT FUNDS RATE'S GONE FROM ZERO TO NOW.
IT'S AT 4% NEXT WEEK, I THINK ON THE 14TH IS WHEN THE FED ANNOUNCES THE NEXT, UH, CHANGE.
UH, THE MARKETS ARE PRICING AT A 50 BASIS POINT OR A HALF PERCENT INCREASE FROM FOUR TO FOUR AND A HALF.
AND THE TERMINAL RATE RIGHT NOW, THEY THINK IT IS MAYBE AROUND FIVE TO FIVE A QUARTER OR SOMETHING LIKE THAT.
SO IT'LL BE A FOLLOW THROUGH THIS YEAR AND IN THE EARLY NEXT YEAR AT LEAST, THAT'S THE MARKET'S EXPECTATION.
SO WHAT THAT DOES TO MORTGAGE RATES AND THE BORROWING TO BUY A CAR OR BORROWING FOR PERSONAL LOANS OR TO START A BUSINESS, IT PUTS PRESSURE ON ALL THAT.
SO WHILE SETTING THOSE TRENDS OF FOLLOW THROUGH ON CONSTRUCTION AND REASSESSING, WE'VE GOT THE POTENTIAL AND POSSIBLE RECESSION TRIGGERED BY HIGHER INTEREST RATES AND HIGHER MORTGAGE RATES, UH, NEXT YEAR, WHICH MAY DEPRESS PRICES OF VEHICLES AND HOMES.
SO YOU'VE GOT WINDS THAT OUR BACKING OUR FACE AT THE SAME TIME.
SO, UH, IT'S GONNA REQUIRE A LITTLE MORE THOUGHT THAN PREVIOUS YEARS AND A LITTLE MORE DEBATE AND DELIBERATION IN HOW ALL THAT'S GONNA NET OUT AND SHAKE OUT AS ANYBODY'S GUESS.
UH, AS YOU KNOW, IN THIS FY 24 BUDGET, IT INCLUDES JUNE OF 24, AND THIS IS DECEMBER OF 22.
AND TRYING TO PROJECT AND LOOK INTO THE SPRING OF A YEAR FROM NOW, UH, TWO YEARS OUT IS A LITTLE, LITTLE CHALLENGING TO SAY AT LEAST.
BUT, UM, AS I SAID, THIS COUNTY DOES THE IMPOSSIBLE BEFORE LUNCH THEN.
THE OTHER THING I'LL MENTION ON THAT IS THE BOARD OF SUPERVISORS IN THE PAST HAS DEMONSTRATED, UH, THE ABILITY AND WILLINGNESS TO BE NIMBLE AND FLEXIBLE ON BUDGETING.
AND THEN WHEN 2020 PANDEMIC HIT, WE HAD ADOPTED OUR BUDGET A MONTH OR TWO LATER, WE CUT EXPENSES 8% ACROSS THE BOARD IN REACTION TO THE SHUTDOWN OF THE ECONOMY.
UM, EXCEPT FOR PUBLIC SAFETY, WE DIDN'T WANT TO ENDANGER THE CITIZENS.
BUT, UM, SO THERE, I'M NOT SUGGESTING THAT KIND OF THING, BUT WHAT WE, WHAT MA SAYING IS THAT IF WE ADOPT A BUDGET AND THEN HALFWAY THROUGH, OR IT LOOKS LIKE THINGS ARE CHANGING A LITTLE BIT, UM, EITHER FOR THE BETTER OR FOR THE WORSE, YOU KNOW, THE BOARD IS DEMONSTRATING MORE ABILITY TO ADJUST TO, UH, NEW INFORMATION AS IT COMES IN.
UM, ANY THOUGHTS OR QUESTIONS ON F Y 22 AUDIT FY 23 CURRENT OR F Y 24 NEXT, OR F Y 25 OR F Y 26? UH, ANY THOUGHTS OR QUESTIONS BY THE COMMITTEE ON ANY OF THAT? OKAY.
UH, IF YOU WANT TO KNOW WHERE INTERFACE ARE HEADED LONGER TERM, UH, THE FEDERAL RESERVE DOES PUBLISH WHAT THEY CALL DOT PLOTS.
IF YOU GOOGLE RESEARCH FEDERAL FED FEDERAL RESERVE DOT PLOTS, IT SHOWS HOW ALL THE OPEN MARKET COMMITTEE MEMBERS THAT VOTE ON SETTING INTEREST RATES WHERE THEY THINK THEY WOULD BE IF THEY HAD TO VOTE TODAY, CHANGES EVERY MEETING, CHANGES DAILY AND WEEKLY.
BUT IF THEY SAT DOWN TODAY, THEY PUBLISHED THESE DOG PLOTS.
AND WHAT YOU'LL SEE IS A FOLLOW THROUGH INCREASE THIS YEAR, SOME INCREASE EARLY NEXT YEAR, STABILIZATION THE BALANCE OF NEXT YEAR, AND THEN 24 AND 25 STARTED CUTTING RATES BACK DOWN TO ABOUT 2% BY THE END OF 25.
OUR LONG TERM PLAN CALLED FOR US ISSUING 50 MILLION THIS YEAR, TACKLING TWO OR THREE MAJOR PROJECTS, COMPLETING THOSE PROJECTS BY 24 25 WHEN RATES ARE BACKED DOWN TO 2%, BORROW THE OTHER 50 AND OFTEN GO WITH THE COURTHOUSE AND A FEW OTHER, UH, CAPITAL PROJECTS.
IT SEEMS TO BE SUPPORTED BY WHAT THE FUNDRAISER IS TELLING THE MARKETS RIGHT NOW.
I DUNNO IF ANYBODY ELSE HAS A DIFFERENT RATE ON THAT, BUT THAT'S KIND WHERE, WHERE I TAKE, UH, IF WE'RE DO SOME HOMEWORK INTO WHAT, WHERE THINGS ARE HEADED, LET THE FEDERAL GOVERNMENT TELL US WHAT THEY PLAN TO DO.
CAUSE THEY GENERALLY DO WHAT THEY HAVE TO DO.
SO, UM, ANY OTHER THOUGHTS OR COMMENTS ON THAT?
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OKAY.THE ONLY OTHER THING I WANTED TO CHAT ABOUT JUST INITIALLY AT THIS MEETING, THE NEW BUSINESS IS, UH, THE GES SCHOOL AND ANY UPDATE ON DISCUSSIONS WE'VE HAD, UM, THE GS ELEMENTARY SCHOOL, MOST FOLKS KNOW SOME DON'T.
STARTED ABOUT TWO YEARS AGO, I THINK IT WAS A SUNNY TUESDAY, AND WE STARTED TO, UH, PREPARE FOR THE EVENTUALITY THAT WE MIGHT HAVE SOME DEBT CAPACITY FROM PAYING OFF AT THE HIGH SCHOOL MIDDLE SCHOOL THAT WE COULD POSSIBLY REDRAW AND REUSE, UH, WITHOUT DESTABILIZING THE FINANCIALS AND STILL BEING FISCALLY RESPONSIBLE.
SO WE HAD TO GO SEEK THE COURT'S PERMISSION TO PUT SOMETHING ON THE BALLOT PRO REFERENDUM TO GET PERMISSION FROM THE CITIZENS AS THE FIRST STEP.
AND THAT PROCESS STARTED ABOUT TWO YEARS AGO.
IT WAS THE SPRING OF 21, I GUESS, AND WE GOT PERMISSION FROM THE JUDGE TO PUT IT ON THE BALLOT.
WE GEN WE DRAFTED REFERENDUM, WE DID A CITIZEN EDUCATION PROCESS, TOOK MOST OF THE YEAR AND BY NOVEMBER OF, NOT THIS YEAR, BUT LAST YEAR, BY NOVEMBER OF LAST YEAR, REFERENDUM, UH, WAS PUT TO THE BALLOT ASKING CITIZENS IF WE COULD SPEND JUST SHY OF A HUNDRED MILLION DOLLARS TO DO A NUMBER OF CAPITAL PROJECTS.
AND CITIZENS VOTED OVERWHELMINGLY, I THINK 85% IN FAVOR AND SAID, YES, IF YOU THINK YOU CAN DO THIS IN A FISCAL RESPONSIBLE WAY WITHOUT RAISING TAXES OR GRADING THE RAIN DAY FUND, GO FORWARD AND CONQUER.
AND SO WITH THAT PERMISSION IN HAND LAST NOVEMBER, COUPLE MONTHS LATER IN FEBRUARY, WE WENT AHEAD AND TAPPED IN CAPITAL MARKETS FOR A 50 MILLION POT ISSUE AND A LITTLE OVER 2% INTEREST.
UM, AND TIMED IT REALLY WELL BECAUSE SINCE THEN RATES HAVE DONE ENOUGH TO GO STRAIGHT UP.
UM, AND TWO PERCENTAGE OF 50 MILLION, THAT'S A MILLION A YEAR OF INTEREST IN TODAY'S ENVIRONMENT'S, PROBABLY MORE LIKE FOUR AND A HALF, MAYBE HIGHER.
UM, THAT WOULD BE TWO AND A HALF MILLION OF INTEREST.
YOU GOT 4% ON 50 BE 2 MILLION, SO A LITTLE OVER TWO, TWO AND A HALF MILLION.
THAT WOULD BE ANOTHER MILLION, MILLION AND A HALF ON, ON BUDGET OF DEBT SERVICE.
AND THAT WOULD PUT A LOT MORE PRESSURE ON OUR, ON OUR, UM, RATIOS AND, AND TAKE US UP MAYBE ABOVE OUR, OUR TARGETS.
SO BY TIMING THE MARKET IN LAST FEBRUARY, WE GOT THAT 50 MILLION IN, LOCKED IN AT A VERY LOW INTEREST RATE AND RAISE LIKE DOUBLE 10 THEN.
SO WE HAD THE COMMISSION TO SPEND A HUNDRED OR LESS.
WE ISSUED 50 ON IDEA THAT WE CAN ONLY DIGEST A COUPLE OF MAJOR PROJECTS AT ONCE.
WE DIDN'T WANT TO OVERWHELM THE COUNTY STAFF AND DO ALL THE PROJECTS AT ONCE.
SO LET'S DO, LET'S PHASE THEM IN.
AND NOW WITH THE BIDS COMING IN ON THE NEW SCHOOL, THE GES IT LOOKS LIKE SOMEWHERE BETWEEN A 30 TO 40%, UH, HIGHER COST TO DO THE SCHOOL.
SO IF YOU, WE WERE GONNA GO OUT WITH 40 AND IT TURNS OUT TO BE 55, IT'S ABOUT 40%.
SO PLUS OR MINUS 30 TO 40% INCREASE.
IF YOU DO THAT ON A FULL HUNDRED MILLION OF PROJECTS, THAT A HUNDRED MILLION IS TURNING INTO 140 MILLION.
AND THEN OF COURSE THE QUESTION BECOMES, CAN THE COUNTY AFFORD 140 MILLION? AND WE THOUGHT WE COULD AFFORD A HUNDRED AND TAKE US UP TO OUR TARGETS.
SO THAT'S A CHALLENGE THAT'S COMING IN FRONT OF US.
LIKE I SAID, WE ARE IN THE STRONGEST POSITION WE'VE EVER BEEN IN AND WE ARE NOT IMMUNE TO MARKET FORCES CUZ THERE'S MARKET FORCES THAT ARE DOING THIS, NOT US.
EVERY COUNTY THEY BUILD A SCHOOL IS ALL LOOKING AT THE SAME THINGS.
WE'RE LOOKING AT THE FED INTEREST RATE INCREASES AND IMPOSSIBLE RECESSION.
ALL THE COUNTIES ARE LOOKING AT THE SAME RECESSION, POSSIBLE DECLINE AT HOUSING PRICES, YOU KNOW, SO WE'RE NOT IMMUNE TO THOSE FORCES AND, BUT WE ARE IN PROBABLY THE BEST POSITION OF ANY COUNTY TO DEAL WITH THOSE FORCES.
UM, NOT THE LEAST OF WHICH IS WE HAVE A COOPERATIVE PROOF HERE THAT WORKS TOGETHER TO SOLVE PROBLEMS. AND I CAN'T IMAGINE TRYING TO SOLVE THESE KIND OF PROBLEMS WHEN YOU'RE NOT WORKING TOGETHER.
BUT, UH, SOME OTHER COUNTIES, COUNTIES ARE FACED WITH THAT.
SO I FEEL BLESSED TO BE IN THIS COUNTY WHEN THE FINANCIAL POSITION WE'RE IN NOW TO CONFRONT THESE, THESE CHALLENGES THAT WE HAVE COMING FORWARD.
I SHOULD HAVE LED WITH A SPOILER ALERT.
THIS COMMITTEE WILL NOT BE ASKED TO TAKE ANY ACTION OR MAKE ANY RECOMMENDATIONS SO YOU DON'T HAVE TO PAY CLOSE ATTENTION.
PART OF THAT IS THE BOARD OF SUPERVISORS MEETING THAT MEETS RIGHT AFTER THIS.
THERE'S THREE ITEMS OF FINANCIAL NATURE ON THE BOS UH, AGENDA, BUT ALL THREE ARE CON CONSENT ITEMS. UH, THEY'RE NOT HIGHLY CONTROVERSIAL AND PROBABLY DON'T NEED A RECOMMENDATION FROM THIS COMMITTEE.
SO WHILE THERE ARE FINANCIAL, THERE'S TWO BUDGET ADJUSTMENTS AND, AND THIS SET THE PUBLIC HEARING FOR THE GES IN JANUARY AND NONE OF THOSE REALLY NEED ACTION FROM THIS COMMITTEE.
UM, SO THERE ARE NO ACTIONS REQUIRED OR RECOMMENDATIONS.
SO A LOT OF THIS IS JUST COVERING GROUND AND PREPARING FOR WHAT'S COMING, UM, TO GET YOUR CREATIVE USES THINKING.
CAUSE THIS IS A SEASON OF MIRACLES WHEN YOU GET TO, TO, UH, SOMEHOW SOLVE THESE PROBLEMS IN A FISCAL RESPONSIBLE WAY, COME OUT THE OTHER SIDE, UM, AND HONOR THE CITIZENS IN THEIR INTERESTS AND DO THE BEST FOR THE COUNTY AND STILL FIGURE OUT A WAY TO GET ALL THIS DONE.
UM, THERE'S THE EMOTIONAL SIDE AND THEN THERE'S THE, THE REALITY AND THE EMOTIONAL SIDE SAYS, YOU KNOW, WE'D LOVE TO DO EVERYTHING.
UM, AND UH, THE PRACTICAL SIDE SAYS, OKAY, WELL IF THAT'S THE CASE, HOW ARE WE GONNA DO THAT? UM,
[00:25:01]
THERE ARE DISCUSSIONS ABOUT HOW TO SQUEEZE THE 15 SHORTFALL INTO ON BUDGET BECAUSE EXTERNAL SOURCES MARKET ARE CLOSED, WE REALLY CAN'T ACCESS EXTERNAL, IT BECOMES INTERNAL FOR US TO SOLVE OURSELVES.UH, IF THAT'S THE CASE, IF THAT'S THE CASE, UH, WE REALLY SCORE ALL OPTIONS.
BUT IF THAT'S THE CASE, WHERE DO WE FIND 15 MILLION IN BUDGET FIRE SHERIFF SCHOOLS, THE, WHERE DO YOU FIND 15 MILLION BETWEEN THE QUESTION? UH, BUT WE'LL THAT'S THE CHALLENGE IN FRONT OF US.
IF YOU HAVE ANY THOUGHTS OR IDEAS IN BETWEEN MEETINGS, FEEL FREE TO CONTACT ANY VOTING MEMBER OF THIS COMMITTEE AND, AND WE'LL SHARE THOUGHTS.
UH, IN THE MEANTIME, THERE ARE A SERIES OF ONGOING MEETINGS TO EITHER BRAINSTORM, BRAINSTORM OR BRAIN MISSED SOME OF THIS AND UH, AT LEAST GET SOME KIND OF ACTION GOING.
SO, UM, BUT AGAIN, THIS IS THE BRING TRUST IN THE GROUP.
UM, IF YOU HAVE IDEAS NO ONE HAS PUT OUT, BUT ALL THE BEST IDEAS.
SO, UM, ANY ANY NO IDEAS ARE HELPFUL.
LET ME PAUSE FOR JUST A SECOND.
THOUGHTS, IDEAS, IF THE SCHOOLS WANT TO GIVE AN UPDATE ON WHERE THINGS STAND OR COUNTY ADMINISTRATOR OR YOU JUST WANNA FINE WAIT AND SEE, THAT'S FINE TOO.
UH, MR. CHAIRMAN IF I MAY? YES SIR.
JUST, JUST AN UPDATE THAT CAME IN THIS MORNING AND IT AN ADDITIONAL COST COMPARISON.
SO NOTHING FANCY, BUT THERE WAS A LITTLE SCHOOL THAT WAS RECENTLY BID IN LOUD COUNTY, DIFFERENT CONSTRUCTION MARKET, BUT YOU KNOW, IT'S JUST DATA.
UH, THAT COST OF THAT MIDDLE SCHOOL BUILDING ONLY WAS
IT NEEDS TO, YES, BUILDING ONLY IS 3 32 PER SQUARE FOOT.
IT'S JUST ANOTHER, OKAY, WELL I APPRECIATE THAT.
NOW NAVAJO COUNTY THAT COST OVERRUN IS 20 MILLION.
THEY CAN JUST, YOU KNOW, CUT A CHECK.
UM, FOR A SMALLER COUNTY IN SOUTHWEST VIRGINIA, 20 MILLION IS NONSTARTER.
SO MAYBE IT'S PRICE, THE PRICE OF SQUARE FOOT, THE COST NOMINAL AND ALL THAT.
OBVIOUSLY DISPORT THE EFFECTS SMALLER COUNTIES, IT WOULD BE NICE IF THE STATE OR FEDERAL GOVERNMENT SAID WELL COULD DO SOME HELP.
BUT IS THERE ANY UPDATE ON ANY IN THE STATE OR FEDERAL GOVERNMENT CONSTRUCTION? THE ONLY UPDATE WE HAVE THAT IS PARTY THE LITERARY LOAN AS AN ALTERNATIVE FUNDING MECHANISM THAT SOME LOCALITIES HAVE USED IN THE PAST.
AND IT APPEARS THE WAY THAT WE'RE INTERPRETING THAT MEMO IS THAT THERE IS A WINDOW OF OPPORTUNITY LOCALITIES WOULD WANT TO ACCESS THOSE RESOURCES FROM DECEMBER TO FEBRUARY.
IT WOULD TAKE RESOLUTION BY THE AND A VISORS TO APPLY AND ACCESS THOSE RESOURCES.
IT LOOKS LIKE RIGHT NOW IT'S A FIXED GRADE OF 3.24%.
THAT'S THE WAY THAT WE'RE INTERPRETING RIGHT NOW.
BUT THAT IS A POTENTIAL OPPORTUNITY.
UM, AND THEN ALSO FOLLOWING THE DISCUSSION LAST TUESDAY REGARDING THE 60 DAY TIMEFRAME FOR BID PRICES, WE DID CONTACT THE APPARENT A LITTLE BIT OR SHOCKING AND ASKED THEM WHAT SORT OF IMPACT IT MAY BE IF THERE WAS A DELAY IN THE PROJECT OF AN ADDITIONAL 30 DAYS.
AND RESPONSE WE RECEIVED BACK WAS THE 30 DAY DELAY.
AND THE PROJECT WINDOW REALLY IMPACTS SOME OF THE CRITICAL PATHWAYS RELATED TO PROCUREMENT'S, NOTABLY SOME ELECTRICAL EQUIPMENT.
SO IN DELAY OF 30 DAYS WOULD POTENTIALLY IMPACT THE POTENTIAL FOR, YOU KNOW, OPENING THE SCHOOL TIME FRAME.
AND THEN WE ALSO 'EM ABOUT ANY POTENTIAL COST IMPLICATIONS OF THE DELAY AND THEY ARE EXPECTING THEIR SUBCONTRACTORS ASKING FOR AN INCREASE IN PRICE AS A RESULT OF
SO JUST SOME ADDITIONAL INTEL AS A FOLLOW UP TUESDAYS.
UM, I THINK AT ONE OF THE PRESENTATIONS TO THE BOARD YOU MENTIONED, UH, SOME OF THE THINGS THAT SCHOOLS WERE DOING TO TRY TO PREPARE FOR THIS AS WELL.
THERE WAS SOME UM, SOME OF CARRYOVER ALLOCATION.
THERE WAS, UH, AND THEN ONE OF THEM MENTIONED A POSSIBILITY GRANT IS 1.2 MILLION.
IS THAT OFF THE TABLE? IS THAT NO LONGER? UH, YEAH THE COMMONWEALTH, THE SITTING ON A SIGNIFICANT POT OF MONEY FOR CONSTRUCTION GRANTS AND IT'S, I MEAN YOUR HEALTHCARE, I THINK IT'S APPROXIMATELY FOUR 50 MILLION AND MONEY THAT THE STATE HAS.
AND SO THE STATE BOARD OF EDUCATION RIGHT NOW IS LOOKING AT RULES AND HOW YOU CAN ACCESS THAT.
AND THERE ARE DIFFERENT CRITERIA AND DIFFERENT POINT SYSTEMS. YOU GET X AMOUNT OF POINTS FOR BEING SHOVEL READY.
YOU GET X AMOUNT OF POINTS FOR YOUR COMPOSITE INDEX, GET X AMOUNT OF POINTS FOR, YOU KNOW, HOW MUCH FISCAL STRESS YOUR LOCALITY IS UNDER.
AND YOU KNOW, WE'VE RUN AN INITIAL ANALYSIS OF OUR POTENTIAL, UH, APPLICATION AND WHETHER OR NOT IT WOULD BE VIABLE.
AND OUR INITIAL ANALYSIS IS THAT WE WOULD NOT EARN ENOUGH POINTS TO BE ABLE TO QUALIFY TO BE SIGNIFICANT
[00:30:01]
IF WE WOULD QUALIFY.CUZ SOME OF THE THRESHOLDS ARE 10%, SO 10, WHICH MEAN MAYBE 50 MILLION, 5 MILLION FOR OUR LOCALITY.
SO THAT WOULD BE A GREAT OPPORTUNITY.
THAT'S ONE TIME THAT'S NO PAYBACK.
THAT WOULD BE, BUT IT DOES NOT LOOK LIKE INITIALLY WITH THE PARAMETERS AT THE BOARD OF EDUCATION IS CONSIDERING ENRICHMENT THAT WE WOULD QUALIFY.
SO WE'D HAVE TO SCREW UP OUR FINANCIALS TO QUALIFY UNFORTUNATELY.
OR, OR CAN YOU CHANGE THE QUALIFICATIONS? LIKE IS THERE PRESSURE POTENTIALLY WE COULD ADVOCATE FOR CHANGING THOSE QUALIFICATIONS? I IS MY UNDERSTANDING THAT THERE ARE MULTIPLE LOCALITIES SIMILAR TO US THAT OUR ADVOCATING FOR THOSE CHANGES, UM, IT IS NOT A DONE DEAL YET, BUT ADVOCACY MAY HAVE AN IMPACT.
SO IS THERE ANY POTENTIAL FOR PATH FORWARD TO, TO EXPLORE THAT ROUTE AND TO PARTNER WITH SOME POST THAT OR I THINK, YOU KNOW, I, SO THAT IS IS MY UNDERSTANDING THAT IS A BOARD OF EDUCATION DECISION AT THIS POINT IN TIME.
IT'S NOT A LEGISLATIVE DECISION.
LEGISLATORS GAVE THE BOARD SOME INITIAL PARAMETERS TO OPERATE UNDER AND THE BOARD IS FINALIZING SOME OF THOSE DETAILS.
SO IT WOULD BE CONVERSATIONS WITH INDIVIDUAL BOARD MEMBERS, UM, WHICH WE WOULD BE VOTING ON.
YEAH, THE OBVIOUS FRUSTRATION HERE IS IF IF YOU'RE LOOKING AT 60 MILLION FOR SCHOOL, THAT 60 IN RELATION TO OUR GENERAL FUND BUDGET IS PLUS OR MINUS A HUNDRED PERCENT.
60 MILLION SCHOOL 11 IS HALF A PERCENT RIGHT? VERSUS A HUNDRED PERCENT.
SO THERE'S, THERE'S THAT SCHOOL NOMINAL DOLLAR IN RELATION TO THE MOUNT POUND BUDGET OF THE LOCAL.
AND THERE'S GOTTA BE AN AWFUL LOT OF COUNTIES IN, IN VIRGINIA THAT HAVE A SIMILAR SIZE BUDGET TO OURS, BUT ARE JUST NOT IN A FINANCIAL POSITION TO BE ABLE TO ABSORB THIS KINDA THING.
AND, AND THE ABILITY TO ABSORB A HUNDRED PERCENT OF YOUR BUDGET IS, IS SOMETHING THAT YOU'D HOPE THE STATE BOARD ELECTED WOULD, OR THE BOARD OF EDUCATION WOULD, WOULD LOOK AT AND GO, GEEZ, THAT'S AN INSURMOUNTABLE HURDLE FOR A LOT OF SMALLER FAMILIES.
UM, SO WHAT, WHAT WAS PRESENTED IN A DRAFT FORM TO THE BOARD OF EDUCATION WAS ALMOST WORD FOR WORD FROM THE LEGISLATION THAT GOT PASSED THAT APPROVED THE FUNDING.
SO, BUT SORT OF THE SORT OF CRITERIA, YOU KNOW, LIKE WHERE YOU RANK AND THE HURDLE THAT YOU HAD TO PASS THAT THAT WAS A A, UM, THAT WAS SOMETHING PLACED ON IT.
THAT THAT WAS A PROCEDURAL WAY TO HANDLE WHAT HAPPENED LEGISLATIVELY.
SO, UH, WHAT WHAT THEY'RE TRYING TO FIND IS, IS, SO SOMEBODY BETWEEN A SIX AND A POINT I'LL SEE LCI, WHICH IS THE, WHICH IS GLAND, WE'RE AT A POINT EIGHTS OR THE, WE'RE AT THE MAX ON THE LCI.
UM, WE COULD GET 10% OF OUR PROJECT PROCEEDS ALL ALL COSTS.
SO THAT WOULD BE 5.67 MILLION WITH, WITH THE PROJECT THAT WE PRESENTED THAT THAT IS, THAT IS SIGNIFICANT TO OUR PROJECT.
IT IS SIGNIFICANT TO OUR PROJECT.
BUT WHEN YOU, WHEN WE RAN THE PARAMETERS YES, WE, WE, WE DID, WE DID FANTASTIC.
WE WERE SO WELL RUN THAT WE BARELY HIT 30 POINTS OUT OF A HUNDRED.
RAYLEY'S TALKING ABOUT IS THERE ARE PEOPLE THAT ARE BETWEEN 0.4 AND 0.6 THAT ARE NOT QUALIFYING.
SO THEY WOULD GET 20% OF THEIR, THEIR PROJECT FUNDED AND THEY'RE GOING LIKE, WE, WE'VE DEMONSTRATED A NEED JUST BY OUR LCI, SO WHY CAN'T WE PASS THAT HURDLE TO GET OVER 65 POINTS OUT OF A HUNDRED? SO I, I THINK THEY PROBABLY HAVE MORE OF A LEG TO STAND ON BECAUSE THEY'VE ALREADY DEMONSTRATED A NEED SINCE THEIR LCI IS SHOWING THAT THEY HAVE A NEED THAT LCI, I CAN CALL IT THE COMPOSITE INDEX, BUT IS THE 0.8 THAT WE ARE, THERE'S ONLY FIVE COUNTIES HAVE A 0.8.
WE ONE OF THOSE THAT ASSUMES THAT, THAT A SMALL RURAL JURISDICTION LIKE OURS SHOULD HAVE HARDLY ANY STATE SUBSIDY VERSUS ENRICO AND CHESTERFIELD LARGE WEALTHY COUNTY SHOULD HAVE A LOT MORE STATE SUBSIDY.
IT ASSUMES, IT ASSUMES THAT THAT'S RIGHT WAY TO GO AND THERE AND SO YOU'RE RIGHT, IT DOES PUT US A DISTINCT DISADVANTAGE, RIGHT, AND BUT THEN IT SHOULD, I MEAN, SO IT'S, I GET WHERE THE CALCULATIONS ARE AND ALL THAT AND THERE'S STILL OPPORTUNITIES FOR ADVOCACY.
THE GAP HASN'T GONE DOWN THE BOAT AND SO THAT WOULD BE, YOU KNOW, CERTAINLY I KNOW IT'S AN UPHILL SLOPE BECAUSE I'VE HAD CONVERSATIONS ABOUT LEGISLATORS AND SAID,
[00:35:01]
IS IT REALLY FAIR FOR, YOU KNOW, FAIR FACTS CHESTERFIELD ON YOUR MICHAEL ALL TO SEE TO RECEIVE MUCH BIGGER STATE SUBSIDIES FOR THE SCHOOLS THAN SMALL RURAL JURISDICTIONS LIKE, LIKE GROUPS AND B AND SOME OF THE OTHER SMALL RURAL JURISDICTIONS.RIGHT? AND THEY'VE SAID LIKE A PROPOSED DROP LEGISLATION AND ADVOCATE FOR IT AND THE VOTE WILL BE 90 TO FIVE AGAINST BECAUSE THE 90 WOULD HAVE TO SHARE WITH THE FIVE THAT HAVE A EIGHT LCI OR COMPOSITE INDEX.
SO LOCAL COMPOSITE INDEX IS THE LCI.
SO THAT LCI, THE 90 90 THAT HAVE LESS THAN 0.8 AND GET A GREATER SUBSIDY WOULD ALL VOTE NOT TO SHARE THEIR SUBSIDY WITH THE SMALL RURAL STRUGGLING.
SO AS A CONSEQUENCE, WE BASICALLY HAVE TO PAY FOR ALMOST ALL OF OUR SCHOOLS AND ALMOST ALL OUR CONSTRUCTION OUT OF SMALL RURAL JURISDICTION.
IT JUST SEEMS LIKE THAT'S, THERE'S SOMETHING WRONG WITH FORMULA OR SOMETHING.
I HAVE A QUESTION FOR, SO TWO POINTS I WOULD MAKE IS YOU MENTIONED SHOVEL READY, WE'VE GOT APPROPRIATE FUNDS FOR THIS PROJECT ALREADY.
WE HAVE STIPULATIONS TO TRY AND QUALIFY FOR THIS.
IS THERE, IS THERE ENOUGH TO MAKE A PLAN BECAUSE, SORRY, AND I'M GONNA DOVETAIL A SECOND POINT IN.
WE GOTTA REMEMBER WE HAVE APPROPRIATE FUNDS.
THE SHORT, THE GAP, THE SHORTFALL IS A TAIL I WANT TO KEEP ON USING THAT TERM.
IT IS SOMETHING THAT WE COULD STRUCTURE TO BE AT THE END, AT THE BACK END.
WHILE VERY CAPABLE PEOPLE ARE LOOKING FOR COMPREHENSIVE SOLUTIONS TO THIS.
IS THERE A WAY THAT PREPARING THE SITE, DOING THOSE THINGS, YOU KNOW, SHOVEL READY WAS THE TERM THAT CAUGHT MY EAR.
AND THEN SECONDLY, I JUST, I DO WANT TO BE ON THE RECORD THAT IF WE LOOK AT THIS FINANCING GAP AS A TAIL, WE HAVE TIME, WE HAVE SOUND LINES, WE HAVE SOLUTIONS TO BE FOUND.
UM, VERSE AND, AND SOLUTIONS ALSO, THAT'S ANOTHER THING.
SOLUTIONS THAT MIGHT NOT BEAR INTEREST UNTIL A DIME IS DRAWN.
THAT'S, THAT'S THE HARD, THAT'S ACTUALLY THE HARDEST PART TO ME WITH BOND FINANCING IS WE'RE BEARING INTEREST ON FUNDS THAT ARE UNSPENT RIGHT NOW.
AND, UM, MAYBE THAT'S, MAYBE, MAYBE THAT SOLUTION'S A BLESS NOT, IT'S NEVER A BLESSING TO SPEND MORE, BUT MAYBE THAT SOLUTION NOT FAIRING INTEREST FOR A TIME BEING IS, UM, GETS THAT LOWER, GETS THAT COMBINED RATE TO A SPOT WHERE WE WANT TO BE.
I MEAN I, I THINK, I THINK IF, IF WE CAN LOOK AT A BLENDED RATE STILL UNDER 3.5%, COMBINING THE VAST MAJORITY OF THE FUNDS FROM A 2% ISH BOND AND I KNOW HIGHER AMOUNT, BUT I'M SORRY, HIGHER INTEREST RATE, BUT SMALLER AMOUNT LATER BEARING OF THE INTEREST, UM, WE COULD DO THAT MATH AND STILL LOOK AT TAXPAYERS AND SAY ALL IN BLENDED RATE OF X IS, UH, IS STILL FISCALLY PRUDENT.
SO I'M JUST THROWING THAT OUT THERE.
UM, SO IS THERE ANYTHING THAT CAN BE DONE, I GUESS THAT WAS MAKING MY COMMENTS BUT ALSO ASKING THE QUESTION, IS THERE ANYTHING THAT CAN BE DONE THAT MIGHT, MIGHT WORK WITH THE SYSTEM? I'M NOT GONNA USE CERTAIN TERMS, UH, ON THE RECORD, UH, BUT WORK WITH THE SYSTEM AND THE PARAMETERS IN PLACE FOR THE COUNTY TO TRY AND EXTRACT THESE DOLLARS.
YEAH, I I GUESS, YOU KNOW, SPEAKING ON BEHALF OF THE SCHOOL DIVISION AREN'T, WE WANT TO WORK TOGETHER WITH EVERYBODY WHO'S ONLY MAKING DECISIONS ON THIS AND I TEACHER, SO I
WE WANT TO WORK TOGETHER TO FIND THE ANSWERS, WHATEVER THEY MAY BE.
AND SO CERTAINLY HAPPY TO PROVIDE ADDITIONAL INFORMATION, MAKE PHONE CALLS, YOU KNOW, DO WHATEVER MAY NEED TO HAPPEN IN ORDER TO, TO WORK TOGETHER TO SEE WHERE THIS PROJECT ULTIMATELY GOES.
THE ONLY, THE LAST BIT OF INFO I HAD TO SHARE WAS THAT THERE WAS ONE BIDDER ON THE LOUD COUNTY PROJECT.
AND SO WE'RE FORTUNATE THAT HAD FOUR BIDDERS ON OUR PROJECT.
AND SO THAT'S, THAT'S A POSITIVE THAT WE HAD A LOT OF INTEREST IN THAT IN OUR PROJECT.
I THINK ULTIMATELY DROVE PRICES AS COMPETITIVE AS THEY COULD BE IN THIS MARKET.
[00:40:01]
SO FACT THEY HAD ONE CERTAINLY MAYBE IMPACT THAT PRICE FOR THEM VERY WELL ATTEND SCHOOL.WE DID, WE DID HAVE ONE OTHER PIECE OF INTEL THAT WOULD INDICATE THAT IF WE WERE TO, UH, DECLINE THE BIDS FOR EXAMPLE AND WAIT ANOTHER YEAR AND SEEK BIDS BECAUSE REALLY AFTER THE 60 DAYS WE HAVE TO THROW OUT THE BID.
SO, UM, OH, WE HAVE BEEN TOLD THAT IF WE WERE TO DO THAT, THERE'S A LOT OF EXPENSE THAT GOES INTO CREATING A BID.
UM, AND WE HAVE THIS EXCELLENT RESPONSE AS YOU, AS YOU KNOW, THE COUNTY HAS HAD STRUGGLED WITH, UM, THE, OF THE CONTRACTORS THAT ARE BIDDING IN BLAND.
UM, WE WENT THROUGH A PREQUALIFIED PROCESS.
WE HAD EIGHT SUPER CANDIDATES.
UM, WE, WE WERE EXTREMELY PLEASED WITH THAT RESPONSE.
EIGHT PEOPLE THAT WANTED TO WORK IN AND PROVIDED THE PAPERWORK, ALL THE FINANCIALS CETERA THAT WE NEED TO.
UM, WE HAVE SIX, UM, CONTRACTORS THAT WERE, UH, ENGAGED ALL THE WAY THROUGH THE BID PROCESS.
WE HAD FIVE SHOW UP ON BID OPENING DAY, ONLY FOUR SUBMITTED.
BUT WHAT WE'VE BEEN TOLD IS THAT IF, IF WE DECIDE TO DELAY THIS PROJECT, WE WILL NOT HAVE THE SAME TYPE OF POOL AND UM, THAT THAT'S WORRISOME BECAUSE, UM, WE, WE DON'T WANT TO BE IN A POSITION LIKE, LIKE NORTH HAMPTON WHERE THEY ONLY HAD ONE BID COME THROUGH AND IT WAS EXTRAORDINARILY HIGH.
AND, AND WE, WE LOVE THE FACT THAT WE HAD SUCH GOOD COMPETITION.
WE HAD FOUR VERY GOOD QUALITY CONTRACTORS THAT BID ON A PROJECT AND UM, THE LOW BIDS JUST TOP QUALITY.
SO THAT, THAT, THAT IS OUR CONCERN IS THAT THE REPUTATION OF THE SCHOOLS ARE PERHAPS REACHING COUNTY COULD BE AFFECTED BY DELAY BECAUSE OF THE AMOUNT OF EFFORT THAT OUR CONTRACTORS HAD TO DO TO CREATE THIS BID.
UM, YES, WE'RE GONNA TO YOU NEXT.
LET ME JUST SUMMARIZE FOR A SECOND.
I'VE HEARD SO FAR NO ONE GAVE YOU.
UM, I DON'T KNOW WHY EVERYBODY'S SURPRISED THAT PEOPLE WANT TO DO BUSINESS WITH
WE, UH, WE PUT THE 50 MILLION OUT 11 DIFFERENT BANKS BID FOR THE ENTIRE ISSUE.
THERE'S A FOOD FIGHT FOR OUR BONDS CAUSE PEOPLE LOVE GOOD, I DUNNO WHY YOU SHOULD PAYMENT, BUT, SO THERE ARE SOME WHAT I CALL SOFT, QUALITATIVE EMOTIONAL THINGS, SCROLLING AROUND KIND OF EMOTIONAL COMMITMENTS AND THAT KIND, AND THEN THERE'S BLENDED INTEREST RATE.
WHAT WHAT THE INTEREST RATE BE, UM, THE QUALITATIVE AND SOFT SIDE OF THIS THING.
AND THEN THE PLANET INTEREST RATE AT SOME POINT COME BACK TO, YOU KNOW, AFFORDABILITY AND, AND OUR RATIOS AND THE PERCENT OF BUDGET THAT GOES TO DEBT SERVICE.
AND CAN WE AFFORD 140 MILLION WHEN THOUGHT WE COULD AFFORD A HUNDRED? YOU KNOW, AT SOME POINT THE AFFORDABILITY COMES INTO PLAY AS WELL.
AND THAT'S WHAT WE'RE ALL GONNA TRY AND FIGURE OUT IS HOW DO WE DO SOMETHING THAT APPEARS TO BE FISCALLY IRRESPONSIBLE BUT DO IN A FISCALLY RESPONSIBLE WAY, HOW DO WE OVERSEND EVERYBODY'S EXPECTATIONS AND DO IT IN A WAY THAT STILL FISCALLY RESPONSIBLE? THAT'S THE CHALLENGE.
AND WE'RE GONNA SOLVE THAT TOGETHER.
SO NOW THAT I'VE KIND OF SUMMARIZED, IT DOESN'T MATTER IF THE BLENDED INTEREST RATE IS THREE SEVEN, YOU KNOW, 4% IF THAT INTEREST RATE TAKES US ABOVE OUR TARGETS AND THERE'S A TRIPLE, YOU KNOW, SO THAT, THAT'S WHERE THIS COMMITTEE, THE ROLE OF THE FUNCTIONS COMMITTEE IS TO THE INTERSECTION OF THOSE THINGS.
I REALLY, REALLY WANT TO DO IT.
BOTH BOARDS AVOIDED IN FAVOR OF IT AND SUPPORTED IT ALL ALONG.
UH, THAT GOT US TO THIS PLACE.
UM, IT'S THE, IT'S THE RIGHT INTEREST RATE ENVIRONMENT IS THE RIGHT CONSTRUCTION ENVIRONMENT.
CAN WE AFFORD IT? WHAT'LL HAPPEN TO AAA? WHAT'LL HAPPEN TO ON BUDGET FOR THE OPERATING BUDGET FOR BOTH THE SCHOOLS AND FIRE RESCUE AND THE COUNTY? THIS IS THE INTERSECTION OF ALL THOSE CONCERNS.
UM, EVERYBODY COMES TO THIS MEETING WITH, WELL I DON'T HAVE ANY ROOM IN MY BUDGETS DEBATE AND THE MARKETS ARE CLOSED, WE CAN'T GO THERE.
BUT WE REALLY DEFINITELY WANT TO DO THIS PROJECT NO MATTER WHAT.
AND YOU KIND OF COME TOGETHER WITH THOSE AND WE OKAY, HOW WE NET ALL THAT OUT AND GET TO A,
[00:45:02]
A MUTUALLY, YOU KNOW, ACCEPTABLE AND AGREEABLE AND SOLUTION ON ALL THIS THAT IS THE BEST INTEREST OF THE COUNTY AND SERVES THE CITIZEN'S BEST INTEREST.THIS IS THE INTERSECTION OF ALL THOSE IDEAS.
UM, SO EVERYONE SHOULD FEEL FREE TO VOICE THEIR THOUGHTS AND OPINIONS AND IDEAS ON ALL.
UM, JUST A COUPLE THINGS AND I THINK YOU KIND OF TOUCHED ON, I APPRECIATE MR. BARTER'S THOUGHTS AND I DON'T THINK THERE'S ANY QUESTIONS THAT WE CAN FIGURE OUT HOW TO DO THIS.
THE QUESTION I, I AM STRUGGLING WITH IS, SHOULD WE FIGURE OUT HOW TO DO THIS? IT KIND OF GOES TO WHAT YOU'RE TALKING ABOUT IS THIS, IS THIS THE RIGHT PRICE TAG? RIGHT.
UM, I'LL BE HONEST, I'VE NEVER HEARD I'M DOING THAT SETTLE, BUT I'VE NEVER HEARD G HAS A PROBLEM GETTING QUALIFIED BIDDERS WONDERING FOLKS, CONSTRUCTION AND NEUROLOGY.
I THINK THAT MAYBE THERE'S STORIES THAT I'M NOT AWARE OF.
UM, YOU KNOW, WHEN WHEN I TOOK THIS JOB, Y'ALL HAD DONE SUCH A GREAT JOB THAT IT, IT LOOKED GREAT, BUT WALKING INTO AN PAST AN AMAZING BUDGET, EVERYBODY WAS GETTING THE RIGHT AMOUNT OF STAFF.
WE WERE, WE WERE FULFILLING PEOPLE'S NEEDS, NOT THE WANTS.
AND THEN LITERALLY THE WHOLE WORLD CHANGED AND WE SAT HERE WITH CRYSTAL BALLS AND WE, UM, HAD TO TRY TO THINK ABOUT, OKAY, WHERE, WHAT'S POTENTIALLY GOING TO HAPPEN? AND THAT'S WHERE WE ARE TODAY.
AND KIND OF TIRED OF THIS, UH, BE QUITE HONEST.
I LIKE JUST A LITTLE BIT OF STABILITY IN SOME AREA AND WHILE I SERVE ABOUT THE REST OF THIS TERM, BUT I REMEMBER AT THAT TIME, AND I THINK IT'S SOMETHING WORTH MENTIONING, WHILE FROM A FISCAL PERSPECTIVE, WE ARE IN EXCELLENT SHAPE.
WE'RE ALSO BASED ON WHAT WE WENT THROUGH, WE'RE IN REALLY GOOD SHAPE.
BECAUSE IF YOU LOOK AT OUR MAIN REVENUE STREAM, WHICH IS REAL ESTATE, THAT SHIELDED US FROM A LOT OF WHAT HENRICO WAS GOING THROUGH WITH SALES REVENUES DROPPING.
SO BECAUSE OF THE NATURE OF OUR, OUR OUR REVENUE STREAM, WE WERE SORT OF, WE, WE FARED VERY WELL FOR THAT.
I THINK THIS IS VERY, VERY DIFFERENT.
I THINK THIS REAL ESTATE IMPACT IS GOING TO BE HARDER THAN THEN.
I THINK WE'RE GOING TO BE SHOCKED AT HOW HARD THIS IS.
SO I'M SITTING HERE THINKING ABOUT NOT JUST THE SCHOOLS, BUT IF I'M THINKING ABOUT, I'M LOOKING AT THE STAFF THAT'S HERE THINKING, OH GOSH, LIKE SO WE COULD BE IN A POSITION WHERE OUR REVENUES ARE DOWN SIGNIFICANTLY.
NOW, AGAIN, I'M NOT, I'M, I'M A PRETTY, I'M NOT VERY RISK.
I WILL TOLERATE A LOT OF RISK.
YOU KNOW, I'M THAT KIND OF PERSON, HIGH RISK, HIGH WORK KIND GUY.
HOWEVER, WITH THE WHAT'S HAPPENING THAT THE BIG QUESTION WE HAVE OR THAT I AM WRESTLING WITH IS, IS NOW THE RIGHT TIME? AND WHEN I THINK ABOUT MATERIAL COSTS AND RIGHT NOW IT IT, THERE'S ONE CAMP THAT SAYS NO MATERIAL COSTS ARE GONNA COME DOWN.
UM, THEY'RE GONNA SLOW THIS DOWN AND WE'RE GONNA BE BUILDING A MUCH MORE EXPENSIVE SCHOOL THAN IT WOULD BE A YEAR FROM NOW.
THERE IS ANOTHER CAMP THAT SAYS THAT'S NOT GOING TO HAPPEN.
THAT MAYBE THE REAL ESTATE DOESN'T COME DOWN AS MUCH AND THAT, UM, WE WILL BE IN THAT SITUATION WHERE THE BIDS ARE HIGHER.
I ACTUALLY BELIEVE THAT WE PUT THIS OUT A YEAR FROM NOW WHEN THINGS HAVE SLOWED DOWN SO SIGNIFICANTLY, WE'RE IN A MORE BUSY, WE KNOW WHAT TO DO IT.
THERE'S ONLY THE MAN UPSTAIRS KNOWS WHICH OF THOSE IS ACTUALLY RIGHT, REAGAN, I'M NOT HIM.
UM, BUT THOSE ARE THE THINGS THAT I'M WEIGHING IN MY MIND OF, YOU KNOW, YES, EVERYTHING IS UP, COSTS ARE UP.
UM, AND, AND YOU KNOW, AT SOME POINT IS THE COUNTY GOING TO HAVE TO MAKE A DECISION? OKAY, FINE, WE'RE GOING, IF WE'RE GOING TO DO THIS SCHOOL, WHAT ARE PEOPLE WILLING TO SACRIFICE? I'M GETTING CALLS EVERY SINGLE DAY ABOUT PERSONAL PROPERTY TAXES.
I'M LOOKING AT TREASURE, I'M SURE
UM, AND THAT PEOPLE ARE ARE, ARE FRUSTRATED WITH WHAT THEY'RE PAYING THERE.
UM, NOW, SO THE QUESTION I TRY TO ASK PEOPLE WHEN I'M GETTING THESE CALLS IS, OKAY, WHAT, AND NOW I'M GETTING, NOW IT IS BECOMING MORE PUBLIC THAT WE'RE HAVING THIS CHALLENGE.
I'M GETTING CALLS AND SUPPORT, I'M GETTING CALLS.
LIKE, WHAT ARE YOU THINKING ABOUT THAT? DON'T DO THAT.
SO MY QUESTION THEN BECOMES, OKAY, WELL WHEN DO WE DO IT? OR TO THOSE THAT ARE LIKE, DO IT NOW.
LIKE OKAY, WHAT DO WE GIVE UP TO DO IT? CAUSE I DO THINK WE'RE GOING TO HAVE TO SACRIFICE SOMETHING AND IT'S GONNA BE THIS COLLECTIVE GROUP TO YOUR POINT IS WHAT ARE WE WILLING TO SACRIFICE? CAUSE THIS IS NOT GOING TO BE EASY.
DAYS OF 2000 THERE WAS SUCH A THING.
SO WE'RE GONNA HAVE TO SACRIFICE.
WE'RE ALL GONNA HAVE TO AGREE WHAT THIS SACRIFICE IS GONNA BE.
UM, IN ORDER TO MAKE THE INVESTMENTS WHERE WE DECIDED, AND THAT'S THE TRADE OFF.
THIS IS THE SACRIFICE THAT WOULD BE REQUIRED.
ARE PEOPLE WILLING TO MAKE THOSE SACRIFICES OR NOT? AND IF WE'RE THEN WE'RE, IF WE'RE WE'RE, BUT, UM, BUT I CAN TELL YOU THE HUNDRED MILLION TURNING INTO 140, THAT'S
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REALLY TWO YEARS WORTH OF GENERAL FUND BUDGET.AND THAT, THAT'S A LOT FOR ANY CANDIDATE.
IF YOU TAKE THE BUDGET AND BORROW TWO TIMES IN BUDGET, IT JUST, UH, UH, ANYWAY, YOU GET THE IDEAS.
IT'S A SCALE, IT'S A SMALL COUNTY TRYING TO FIT A BIG PROJECT.
AND IT IS JUST, WE'VE BEEN OVER THIS ALL, BOTH SAME LAW.
BUT TO YOUR POINT, I MEAN HE RAISED A GOOD POINT ABOUT THE 24 BUDGET COMING UP IN THE PANDEMIC SHUT DOWN.
WE DIDN'T HAVE A KING SUBMITTED TO SHUT DOWN.
WE DIDN'T HAVE REGIONAL MALLS THAT SHUT DOWN COMPLETELY ZERO.
AND WE DIDN'T HAVE RELIANCE ON THOSE KINDS OF EVENTS.
PUBLIC EVENT, UM, THAT WE HAD CARS AND HOUSES AND LITTLE BIT OF COMMERCIAL.
AND SO THE RESTAURANTS FIGURED OUT WAYS TO STAY OPEN AND PICK UP AND DELIVER AND STUFF INSTEAD.
BUT SO WE WERE NOT, YOU KNOW, WE WEREN'T SPARED, WE WERE IMMUNE, BUT JUST KIND A DOORING AND NOT A, YOU KNOW, A MAJOR CRISIS.
SO BY GOING FORWARD IT'S A LITTLE DIFFERENT, BUT HIGHER MORTGAGE RATES, THAT'S GONNA AFFECT ALL RESIDENTIAL AND UH, THAT'S WHERE THE BIG MONEY COMES FROM, RIGHT? SO BUDGET IMPLICATIONS FAR AS HOW MUCH INTEREST YOU COULD AFFORD, HOW MUCH DEBT YOU COULD AFFORD.
SO THE QUESTION I GET AROUND IS, OKAY, SO YOU WANT ME TO ME TO INCREASE PROPERTIES FOR THIS? DO WE DO MORE DENSE HOUSING? SO YOU'RE SAYING YOU NEED A SCHOOL.
DO WE BRING, ARE WE GET MORE HOUSING? WE'VE GOT TWO STUDIES GOING ON NOW AND I THINK THIS, WE HEAR LOUD AND CLEAR THAT THE CITIZENS ARE SAYING ABOUT THE DENSITY CONCERNS.
SO IT'S, IT'S JUST, IT'S JUST, IT'S A
YEAH, WE'VE GOT YOUR HOUSE IS BURNING FIRE RESCUE AND WE'VE GOT A BURGER IN YOUR HOUSE.
WHICH ONE'S YOUR FAVORITE CHILD? IT'S THAT KIND OF THING.
YOU JUST, YOU CAN'T ANSWER THAT QUESTION CAUSE THERE IS NO FAVORITE.
YOU, UH, YOU LOOK FOR, YOU KNOW, GAPS IN SERVICE AND PROVIDE EXCELLENT SERVICE ACROSS THE BOARD AND, UH, AND THEN TRY TO FIND THAT IN A RESPONSIBLE WAY.
STILL GOT A FEW MORE MINUTES, THOUGHTS OR COMMENTS OR ANYTHING AT THIS POINT? I MEAN, STILL PRELIMINARY, ALL IDEAS AROUND THE TABLE.
WE'RE RELYING ON THIS GROUP TO SOLVE THIS AND DECIDE HERE'S THE SACRIFICES TO WANNA MAKE A, UM, AND THEN WE'LL FIGURE OUT LATER.
NOW, I, I HAVE ASKED TO HAVE THIS COMMITTEE CONVENE AGAIN IN JANUARY.
SO ON THE AGENDA AT THE BOTTOM IT SAYS WE'RE GONNA RETURN UNTIL FEBRUARY.
UM, THERE'LL BE A JANUARY MEETING BECAUSE THE JANUARY BOARD OF SUPERVISORS MEETING THAT FOLLOWS OUR MEETING WOULD HAVE THE PUBLIC HEARING OF THE GS, UM, SITUATION.
SO I THOUGHT IT APPROPRIATE FOR THIS GROUP TO MEET AGAIN.
BY THAT TIME WE SHOULD HAVE MAYBE NARROWED DOWN SOME PRIMARY ALTERNATIVES AND TRADE OFFS AND SACRIFICES AND BE ABLE TO FOCUS OUR ATTENTION A LITTLE MORE INTENTLY ON POSSIBLE SOLUTIONS.
UM, AND THEN THIS GROUP WOULD THEN LOOK TO MAKE A RECOMMENDATION TO THE BOARD OF SUPERVISORS TO PROCEED IN A CERTAIN DIRECTION WITHOUT BITING IN.
AND THEY'LL STILL BE ABLE TO DO WHATEVER THEY WANT, BUT AT LEAST IT'LL COME OUTTA THIS GROUP WITH WE'VE TALKED ABOUT IT OURSELVES AND WE'VE COME UP WITH IDEAS AND THIS IS WHAT WE RECOMMEND.
AND THEN LET THE BOARD CONSIDER IT FROM THERE.
SO IT WILL BE A JANUARY MEETING, UH, PROBABLY SAME TIME, 1230.
UM, SINCE WE HAVE JUST A FEW MORE MINUTES, THERE'S SOME MEMBERS OF THE PUBLIC HERE, ANY MEMBERS OF THE PUBLIC LIKE TO LAY IN AND COMMENT, THOUGHTS, IDEAS, PASS THE PLATE.
YOU CAN CHIP IN MONEY FOR THE EIGHT 15 MILLION.
ANY OTHER COMMENTS OR THOUGHTS OR QUESTIONS OR ANSWERS OR ANYTHING FOR THE GOOD OF THE CAUSE? RIGHT.
LISTEN, THANK YOU ALL AGAIN FOR COMING TODAY AND I APPRECIATE ALL THE GOOD IDEAS.
UM, AND WE'LL, WE'LL FIGURE THIS OUT.
WE COME TOGETHER, WE HAVE PROBLEMS, WE TACKLE.
THIS IS A CHALLENGE AND AN OPPORTUNITY FOR US TO EXCEL AT A HIGH LEVEL.
SO BIGGER CHALLENGE, FIGURE THE OPPORTUNITY TO EXCEL.
SO, UH, LET'S LOOK AT IT THAT WAY.
THIS MEETING IS OFFICIALLY ADJOURNED.