[00:00:08]
YOU LOOK AT, THERE'S A DELAY COORDINATION CONNECTION TO THE BRAIN IS LIKE TECHNOLOGY.
WANT ALL SET? SET TECHNOLOGYWISE? YEP.
I'D LIKE TO CALL TO ORDER THIS MEETING OF THE BOARD OF SUPERVISORS, UCHIN COUNTY FINANCE AND AUDIT COMMITTEE MEETING FOR APRIL 4TH, 2023.
UH, THANK YOU ALL FOR ATTENDING.
UH, FIRST THING TO DO IS TO SEE IF WE HAVE A QUORUM OR NOT.
THERE ARE FIVE VOTING MEMBERS, AND WE HAVE A SIR HERE, SIR QUORUM.
SO WE, UH, AND THEN WE HAVE SOME OF TAKE NOTES FOR ME.
OKAY, SO WE HAVE A QUORUM AND WE HAVE SOME OF TO TAKE NOTES.
UH, THE FIRST ITEM ON THE AGENDA, UH, IS APPROVAL OF THE MINUTES FROM FEBRUARY 7TH, 2020 2, 22.
THE CHAIRMAN, I MAY, THE MINUTES WE, UH, IS PRESENTED WHO IS AMENDED TO 23.
IS THERE A SECOND? THE AGENDA AS THANK YOU.
IS THERE A SECOND OF THE MOTION TO APPROVE AS AMENDED? SECOND.
AND ANY EXTENSIONS FROM FOLKS THAT WERE HERE? YES.
UM, THE PRIMARY GOAL FOR TODAY'S MEETING IS TO, UM, CONSIDER AMENDMENTS, ADJUSTMENTS, MODIFICATIONS, WHAT HAVE YOU FOR THE, UH, UH, COUNTY BUDGET THAT WAS PRESENTED BY THE COUNTY ADMINISTRATOR, UH, SOMETIME AGO TO THE BOARD SUPERVISORS.
UM, THAT BUDGET PROCESS BEGINS LIKE OCTOBER, NOVEMBER TIMEFRAME OF LAST YEAR, UH, WHICH IS ALMOST SIX MONTHS AGO.
AND IT TURNS OUT THERE'S BEEN SOME WATER OVER THE DAM SINCE THE LAST SIX MONTHS, AND WE'RE GONNA HAVE UPDATED NUMBERS HERE IN A SECOND.
UM, SOME OF YOU KNOW THAT I'VE BEEN KIND OF RINGING THE BELL ON THIS, THAT, UH, PROSPERITY IS, IS COMING OUR WAY IN OSA COUNTY, AND WE SHOULD BE PREPARED FOR THAT PROSPERITY, BOTH IN TERMS OF INFRASTRUCTURE, BUT ALSO WITH THE REVENUES, AND HAVE SOME DISCUSSION AND CONSIDERATION ABOUT WHAT DO YOU DO, UM, IF YOU HAD AN EXTRA DOLLAR OR TWO, HOW WOULD YOU ALLOCATE THAT DOLLAR? AND PART OF THAT DISCUSSION OR CONSIDERATION IS WHAT WOULD THE CITIZENS WANT US TO DO? BECAUSE IT'S THEIR MONEY AND WE PROVIDE A SERVICE TO THEM IN MANAGING THE COUNTY, BUT IT IS THEIR COUNTY, IT'S THEIR TAX DOLLARS.
SO WHAT WOULD THEY WANT US TO DO WITH THAT? UM, THAT RESIDUAL, IF THERE IS ANY.
SO WITH THAT SAID, UM, THE COUNTY ADMINISTRATOR, THIS WAS, UH, PREPARED A PRESENTATION TO THE COMMITTEE, UM, TO CONSIDER JUST THAT THE INCREASED, UH, PROSPERITY, IF YOU WILL, AND THEN SOME POSSIBLE ALLOCATIONS OF THAT, UM, IN CONSIDERATIONS GOING FORWARD.
NOW, THIS CAN, THIS COMMITTEE JUST TO REMIND, CANNOT MAKE ANY DECISIONS, UH, ABOUT WHAT TO DO.
I CAN RECOMMEND TO THE OVERALL BOARD OF SUPERVISORS FOR CONSIDERATION, UH, PROPOSALS.
AND SO IF WE DEVELOP A CONSENSUS AT THIS SESSION, BRING IT FORWARD TO THE BOARD AT THEIR TWO O'CLOCK SESSION WITH A RECOMMENDATION, ONE WAY OR THE OTHER, AROUND SOME CONSENSUS OR NOT, UM, THAT THEN INFORMS THE BOARD OF SUPERVISORS AS TO WHAT THE FINANCE COMMITTEE'S THINKING WAS.
SO THAT'S THE ULTIMATE GOAL, UH, NOT TO BE AS SPREAD OVER, TO JUMP AHEAD, BUT THAT'S THE ULTIMATE GOAL.
SO, WITH THAT SAID, UM, THE AGENDA TODAY WILL BE THE PRESENTATION.
THERE'LL BE DISCUSSION AMONG THE COMMITTEE MEMBERS.
UH, WE'LL OPEN IT UP FOR DISCUSSION AMONG THE, THE CITIZENS THAT ARE HERE AS WELL, SO THAT EVERYBODY GETS A CHANCE TO FIND SOME INPUT.
SO WITH THAT SAID, UH, NO FURTHER ADO.
I'M GONNA TURN THIS OVER TO OUR COUNTY ADMINISTRATOR, MAY CARPENTER.
HE'S GONNA WALK US THROUGH THIS PRESENTATION.
UH, MEMBERS OF THE COMMITTEE AND THE CITIZENS AND STAFF.
AS YOU RECALL, BACK IN FEBRUARY, I PRESENTED TO THE BOARD A BUDGET, A BUDGET THAT WAS BALANCED, UH, STRONGLY CONSERVATIVE AT THAT POINT IN TIME.
WE WERE VERY UNSURE AND UNCERTAIN OF WHAT WAS COMING TOWARDS US IN OUR ECONOMY.
WE HAD REASON TO BELIEVE THAT, UH, CERTAINLY THE RECESSION WAS IMPENDING, UH, INTEREST RATES WERE HIGH.
SO WE TOOK A VERY, UM, VERY NUANCED CONSERVATIVE APPROACH IN DETERMINING WHAT THAT BUDGET WAS GOING TO BE.
SO I WANNA START, BUT IT'S KIND OF GOING OVER OUR PAST COUPLE YEARS IN GSON COUNTY.
AND WHERE YOU SEE IS FROM 20 20, 24, 24, THE LAST FIVE YEARS.
AND IT SHOWS WHAT THE, UM, ACTION FORECAST OF REVENUES WERE FOR EACH YEAR, HOW MUCH WAS TRANSFERRED EACH YEAR TO C I P, UH, HOW MUCH BUDGETED ACTUALLY, AND THEN WHAT WE ADDED TO OUR RESERVES EACH YEAR.
UH, SO YOU SEE IN THE LAST FIVE YEARS WITH THIS YEAR STILL BEING THE UNKNOWN,
[00:05:01]
WE'VE ADDED $20 MILLION TO RESERVES AND TRANSFERRED $34 MILLION TO OUR CIP P.SO A VERY STRONG, FUNDAMENTALLY CONSERVATIVE FOCUS ON HOW WE MANAGE OUR BUDGET AND HOW WE MANAGE OUR RESOURCES WELL, TO LOOK AT US IN A REGIONAL CONTEXT OF WHERE THAT MONEY COMES FROM, KIND OF WANNA START WITH OUR TAX RATES.
AND AS YOU SEE AT THE TAX RATES, AND THIS IS ON PPP, UH, P P R T, UM, YOU SEE THE GUGEN IS THE HIGHEST IN THE CA IN THE REGION FOR WHAT WE CHARGE FOR OUR PERSONAL PROPERTY TAXES, $3 75 CENTS PER A HUNDRED DOLLARS.
UH, LOUISE IS THE LOWEST OF $2 AND 43 CENTS.
UH, SO THAT'S WHERE THE MONEY COMES FROM IN GREAT PARK.
THE VAST MAJORITY OF THE REVENUE THAT WE BRING IN IS YOU LOOK THOUGH AT THE AVERAGE VALUES OF CARS IN THE LAST FOUR YEARS, ESPECIALLY YOU SEE IN THE LAST FOUR YEARS, THE AVERAGE VALUE OF A CAR HAS GROWN 36%.
NOW, THIS OBVIOUSLY IS STILL MID-YEAR, SO IT COULD CHANGE BY THE END, END OF THE YEAR.
BUT WHERE WE ARE WHEN WE TOOK A SNAPSHOT IS THAT SHOWS WHERE WE ARE.
AND THOUGH THERE'S SOME, UH, DECREASE, UH, THIS CURRENT YEAR, UM, OF 8.5% THE PREVIOUS YEAR IS 35, THEN 9% OVER 45%.
SO IT AVERAGES OUT TO, AGAIN, A 36% INCREASE IN THE VALUE OF THE VEHICLES THAT WERE THEN CHARGING THE HIGHEST TAX RATE IN THE REGION OF.
SO AS WE'VE NOW SEVERAL MONTHS LATER LOOKED AT IT, THERE ARE A COUPLE THINGS NOW THAT WE ARE ABLE TO DO.
WE WERE, AGAIN, VERY CONSERVATIVE IN PRESENTING A BUDGET TO THIS BOARD, WHICH IS SOMETHING I'LL ALWAYS DO.
I'VE ALWAYS MADE THAT COMMITMENT.
HOWEVER, IN EDUCATION, PUBLIC SAFETY IN OUR CIP P WE NOW REALIZE THAT THINGS ARE NOT AS STRONG.
UH, THE ECONOMICS, AT ANY RATE, ARE NOT AS STRONG AS WE FIGURED THEY WOULD BE.
AND LOOKING AT THAT NOW, WE'VE TAKEN ANOTHER LOOK AT OUR REVENUES AND TAKEN A LOOK AT OUR REVENUES.
WE HAVE JUST BEEN ABLE TO DETERMINE THAT REAL ESTATE TAXES WE BELIEVE ARE ACTUALLY COMING, GONNA COME IN ABOUT 1.3 MILLION HIGHER PERSONAL PROPERTY TAXES, ABOUT 3 MILLION HIGHER.
OUR GROWTH OF INTEREST INCOME AS INTEREST RATES STILL REMAIN HIGH FIVE 80 FOR TOTAL OF JUST SHY OF $5 MILLION OF REVENUE GROWTH FROM THE ORIGINAL BUDGET THAT WAS PRESENTED TO THE BOARD OF SUPERVISORS.
NOW, THESE ARE STILL CONSERVATIVE NUMBERS.
UM, WE, WE STILL TRY TO MAKE SURE THAT WE KNOW AND UNDERSTAND THAT NOT EVERY VEHICLE IS CAPTURED IN THIS, UH, NEW VEHICLES COMING IN.
WE'VE TRIED TO CAPTURE GROWTH THAT WE KNOW IS GOING TO COME IN AND THEN BE CONSERVATIVE ABOUT WHEN IT'LL HIT THE BOOKS.
BUT ADDITIONAL GROWTH THAT MAY HIT THE BOOKS IS NOT REPRESENTED IN THERE AS WELL.
SO, HAVING SAID ALL THAT, WE BELIEVE THAT A GROWTH OF ALMOST $5 MILLION IS STILL A, A CONSERVATIVE VIEW OF WHERE WE WOULD END THE YEAR GOING FORWARD.
SO BACK TO THE CHAIRMAN'S POINT.
WHAT WOULD THE CITIZENS WANT US TO DO WITH THIS? NOW THAT WE BELIEVE THAT WE HAVE ADDITIONAL REVENUE THAT WE DID NOT ORIGINALLY PUT INTO THE FIRST BUDGET? SEVERAL THINGS THAT KIND OF HAVE INCLUDED, WE COULD DO ONE, WE COULD TAKE THAT REVENUE AND ASSIGN IT TO CIP P AND NEEDED PROJECTS.
SECOND IS WE COULD RETURN IT ALL TO THE CITIZENS.
OR THIRD, WE COULD DO A HYBRID OF BOTH.
SOME SPENDING ON PROJECTS THAT ARE IMPORTANT TO THIS COUNTY AND THE CITIZENS.
AND ALSO TAX RELIEF RETURN TO THE CITIZENS IN FORM OF PPP, P P T R, AOS, THAT, UH, PERSONAL PROPERTY TAX RELIEF, UH, FOR THEIR PERSONAL PROPERTIES AND PERSONAL VEHICLES.
SO WHAT I'VE GOT TODAY IS A THOUGHT MAYBE WE COULD DO A LITTLE BIT OF BOTH, AND WITH SUGGESTION THAT ABOUT ANOTHER 2 MILLION OF THAT WOULD BE ALLOCATED TO ADDITIONAL COUNTY PROJECTS.
OPERATIONAL MEANS THAT WE DID NOT MEET IN THE FIRST BUDGET THOUGH IS A GOOD BUDGET.
IT DIDN'T DO EVERYTHING THAT WE WOULD'VE LIKED TO HAVE SEEN IT DONE.
AND THEN $3 MILLION ROUGHLY, AGAIN, APPROXIMATELY EVERYTHING IS ALWAYS DEPENDENT ON WHAT ACTUALLY HAPPENS.
BUT APPROXIMATELY $3 MILLION IN PERSONAL PROPERTY TAX RELIEF ON PERSONAL VEHICLES BY DOING THIS IS ACCOMPLISH THE MAIN THING.
WHO WOULD ADDRESS THE FACT THAT KUCHEN COUNTY HAS THE HIGHEST PERSONAL PROPERTY TAX RATE IN OUR REGION AND WE'VE CONTINUED TO ALLOCATE THE TAX RELIEF THE STATE OF VIRGINIA DOES PROVIDE US AS WELL.
SO BETWEEN THE STATE TAX RELIEF AND THIS TAX RELIEF, IT WOULD RESULT IN CHANGES TO WHAT THE TAX RATES ARE.
SO WHAT WOULD IT LOOK LIKE IF WE PUT ADDITIONAL MONEY INTO THE COUNTY ITSELF OPERATIONALLY ABOUT $300,000.
THIS WILL ALLOW US TO GROW SOME PARTS OF OUR OPERATIONAL BUDGET THAT HAVEN'T GROWN IN MANY, MANY YEARS, AND ABOUT ANOTHER $2 MILLION INTO CONSTRUCTION AND PROJECT PROGRESS PROJECTS THAT WE NEED TO SUPPORT ANY WITH THE FIRE STATION, THE COURTHOUSE COMING FORWARD, MAKING SURE THAT WE HAVE ADDITIONAL FUNDING AVAILABLE TO SUPPORT THOSE PROJECTS FOR TOTAL INVESTMENT OF ABOUT 2.3 MILLION INTO OUR OPERATIONAL BUDGET AND TAX RELIEF WITH A CURRENTLY 3 75.
IF WE WERE TO DROP TO $2 AND 99 CENTS, UM, PER A HUNDRED DOLLARS, THE IMPACT OF THE BUDGET WOULD BE, AGAIN, APPROXIMATELY 3 MILLION, 2.8 TO 3 MILLION IMPACT TO OUR BUDGET.
AS FAR WHERE WE STAND RIGHT NOW WITH OUR, OUR REVISED ESTIMATES, WHAT REVENUE WOULD COME IN.
SO I'M RECOMMENDING TO THE BOARD THAT
[00:10:01]
WE DO THE FOLLOWING.I'M RECOMMENDING THAT WE FUND ADDITIONAL OPERATIONAL NEEDS IN THE COUNTY.
UH, THAT WOULD BE ULTIMATELY A 5 MILLION INCREASE.
AND HERE'S WHY I WOULD SAY 5 MILLION.
I JUST SHOWED YOU WHERE 2 MILLION WOULD COME FROM.
UH, BUT ALSO WE'RE ALREADY ANTICIPATING ABOUT AN $8 MILLION SURPLUS FROM THIS YEAR'S BUDGET IN NET RESIDUAL.
SO THAT MONEY, AT LEAST 3 MILLION OF THAT WOULD BE ABLE TO GO TOWARDS CIP P PROJECTS FOR A TOTAL OF 5 MILLION THAT THIS BOARD COULD ALLOCATE IN THE NEXT THREE TO FOUR MONTHS TOWARDS CIP P PROJECTS THAT WOULD STILL LEAVE $5 MILLION FORECAST APPROXIMATELY, UH, AS RESERVES THAT THAT COULD GO TO THE RESERVES FROM THAT RESIDUAL.
SO WE COULD CONTINUE TO GROW OUR RESERVES PER THE POLICY THAT THIS BOARD HAS SET.
AND IN ORDER TO DO THAT, IT WOULD RECOMMEND THAT WE LOWER OUR PERSONAL PROPERTY TAX RATE TO $2 AND 99 CENTS PER A HUNDRED DOLLARS OF ASSESSED VALUE FOR PERSONAL VEHICLES.
AND THAT WOULD RESULT IN OUR CITIZENS SAVING ABOUT $3 MILLION A YEAR.
UH, MR. CHAIRMAN IS MY RECOMMENDATION TO THE BOARD.
UM, I MIGHT ASK YOU, I'M GONNA PROVIDE A FEW COMMENTS BEFORE WE OPEN IT UP.
MAYBE GO BACK TO, UH, SLIDE TO IN THE FIRST SLIDE, I GUESS THE, UH, FINANCIAL POSITION.
UM, AS I LOOK AT THIS, IF YOU START FROM THE LEFT HAND SIDE, WHICH IS THE ACTUAL REVENUES FOR ALL THE YEARS EXCEPT FOR FY 24, WHICH IS STILL PROJECTED, UM, YOU SEE THE GROWTH FROM 62, 66, 74, 86, FAIRLY HEALTHY GROWTH, AND THEN YOU SEE MINUS GROWTH FROM 23 TO 24, ONLY 2 MILLION.
AND, AND THAT I, I I'M UNDERSTANDING REFLECTS KIND OF OUR CONSERVATIVE APPROACH TO FORECASTING REVENUE FOR FY 24.
AND JUST SO EVERYONE KNOWS, UH, AND SO WHAT I'D LIKE TO KNOW AS WELL, WHICH IS, YOU KNOW, WHAT'S IN THERE, WHAT'S NOT, AND MAYBE PERHAPS CARL, IF YOU COULDN'T SHARE WITH THE GROUP WHAT'S, WHAT'S IN THERE, WHAT'S NOT IN THERE, SO WE CAN UNDERSTAND THE DEGREE OF CONSERVATISM OF RESPECT TO THE FY 24 PROJECTION.
SO TWO THINGS TO, TO COMMENT ON THIS.
UM, THE ADDITIONAL 5 MILLION THAT VIC HAS JUST TALKED ABOUT THAT WE'VE, UM, REVISED THE BUDGET TO INCLUDE IS INCLUDED IN THAT 88.7 MILLION.
UM, I ALSO WANNA POINT OUT 20 THROUGH 22 ARE ACTUAL FIGURES.
23 IS A PROJECTED ACTUAL REVENUE.
AND IF YOU LOOK AT THE 88.7 FOR 24, WHILE IT'S ONLY 2 MILLION, TWO AND A HALF MILLION HIGHER THAN OUR PROJECTION OF ACTUAL, IT'S, I WISH I HAD THE NUMBER, BUT IT IS MUCH MORE HIGHER.
IT'S A LOT HIGHER THAN THE FY 23 BUDGETED REVENUE.
UH, AND THAT'S WHAT IMPORTANT POINT IS THE REVENUE IS 20, 21, 22, AND EVEN 23.
OUR CONSERVATIVE BUDGETING WAS A LOT LESS THAN THAT.
AND WE CAME IN WELL ABOVE BUDGET IN EACH YEAR, WHICH WE PROBABLY WILL AGAIN FOR 24.
YOU'LL SEE THAT SAME TREND, BUT, BUT THE CONSERVATIVE BUDGET, THAT DOES INCLUDE THE ADDITIONAL 5 MILLION.
UM, AND THEN SIMILARLY, THE AMOUNT FROM TRANSFER OF THE MIDDLE, THE 8, 10, 12, 13, THOSE BUDGETS WERE PUT TOGETHER IN THOSE YEARS WITH A BALANCED BUDGET, ASSUMING THOSE TRANSFERS WOULD COME OUT OF RESERVES.
BUT THE YEAR END RESIDUAL WAS SUCH THAT WE DIDN'T HAVE TO DRAW OUT OF RESERVES.
WE COULD FUND THOSE OUT OF RESIDUAL FOR OPERATING.
SO THAT AMOUNT OF BE FOR TRANSFER IS KIND OF ON BUDGET, THE OPERATING BUDGET, IF YOU WILL, AND NOT EITHER DEBT FINANCED OR RESERVED FINANCED, BUT ON BUDGET.
AND THERE, THERE AGAIN YOU SEE THAT 8, 10, 12, 13, THE TREND AND THEN THE CONSERVATIVE BUDGETING OF DROPPING IT BACK DOWN TO NINE AS WELL.
I'M TRYING TO GET A SENSE FOR THE DEGREE OF CONSERVATISM IN THAT F FI 24 BECAUSE WE HAVE IDENTIFIED WHAT WE THINK IS ABOUT 5 MILLION OF, OF EXTRA, BUT NOT FROM PIE IN THE SKY.
WISHFUL THINKING IS MORE GROUNDED, I GUESS.
AND THEN OF COURSE, UM, THE AMOUNT OF TRANSFER, UM, WAS A PORTION OF THOSE RESIDUALS EACH YEAR AND THEN A PORTION WAS ADDED TO RESERVES.
OUR POLICY IS TO MAKE SURE THAT THE RESERVES MAINTAIN THEMSELVES AS A PERCENT OF BUDGET.
SO IF WE HAVE A HUNDRED MILLION BUDGET AND 10 MILLION RESERVE, THAT'S 10% RESERVED.
IF THE BUDGET DOUBLES FROM A HUNDRED TO 200, WE NEED TO DOUBLE RESERVES FROM 10 TO 20 JUST TO KEEP THE SAME PERCENTAGE SO THAT YOU HAVE THE SAME RELATIVE CUSHION.
AND THAT'S WHAT THESE RESERVE INCREASES HAVE ALLOWED US TO DO TO MAINTAIN THAT POLICY OF KEEPING THE RESERVES IN PROPORTION TO OUR OVERALL BUDGET AS IT GROWS.
AND WE, BUT WHAT THIS I THINK SHOWS IS THAT WE'VE BEEN ABLE TO DO ALL OF THAT KIND OF ON BUDGET WITH THE OPERATING BUDGET AND NOT RELY ON DEBT FINANCING OR, OR TAPPING IN RAIN DAY FUNDING RESERVES, BUT JUST ON BUDGET WE'VE BEEN ABLE TO ACCOMPLISH ALL
[00:15:01]
THESE THINGS.IS THAT A FAIR ASSESSMENT OF YEAH, SO THAT 34 MILLION OF C I P, THAT'S ALL FROM RESIDUAL AND NOT FROM DEBT FINANCE OR RESERVE FINANCED, THAT'S OPERATING RESIDUAL.
UM, WHICH IS A FAIRLY HEALTHY INVESTMENT IN THE COUNTY.
UM, AND THEN OF COURSE THE ADD TO RESERVE THE 20 MILLION, UM, IS THERE IN CASE WE, WE NEED IT, BUT IT'S BEEN PUT THERE FOR A REASON, WHICH IS TO MAINTAIN THE PERCENTAGE.
UM, ANY THOUGHTS OR QUESTIONS ON THE COMMITTEE ON THIS PARTICULAR CHARGE? SO CARLY'S A 2024 88 MILLION OR 88 27 IS NETTING THE 5 MILLION THAT WE'RE PROPOSING, OR THAT IS BEING YES.
SO IT, IT INCLUDES 5 MILLION, BUT IT ALSO INCLUDES THE PP T R A THAT WE'RE TAKING FROM THE 5 MILLION.
SO IT DOES NET TO 2.3 MILLION, I BELIEVE.
I I'S AN INCREASE ON WE GO FOOTNOTE.
I I JUST, IT WOULD, IT WOULD BE FAIR IF THIS EVER GETS BEYOND THIS COMMITTEE TO, YOU KNOW, FOOTNOTE THAT IT'S A GOOD POINT INSTEAD OF BOTH THE FIVE INCREASE IN THE REDUCTION IN THE, IN THE TAX RATE.
UM, THE OTHER THING THAT'S WORTH NOTING IS WE HAVE AN AWFUL LOT OF, UH, PROJECTS IN THIS COUNTY THAT ARE EITHER TURNING DIRT OR GOING VERTICAL AND ARE UNDERWAY.
UM, GENERALLY SPEAKING, I DON'T BELIEVE THERE'S ANYTHING IN HERE WHERE THE PROJECTS HAVE BEEN APPROVED BUT NOT YET STARTED IN WORDS.
THEY HAVEN'T BROKEN GROUND YET.
SORRY, WE'VE GOT THAT'S CORRECT.
WE'VE GOT A FAIR AMOUNT OF CONSTRUCTION AND DEVELOPMENT THAT'S BEEN APPROVED BUT HAS NOT BROKEN GROUND YET.
CAUSE THAT'S STILL ON THE COME, IF YOU WILL.
AND THEN FOR ONES THAT HAVE BROKEN GROUND THAT ARE PARTWAY THROUGH, WE'VE PRETTY MUCH ONLY INCLUDED THE THINGS THAT ARE DONE OR NEAR DONE NOW AND NOT THE FOLLOW ON PARTS.
SO WE TOOK A PERCENTAGE, I GUESS, OF A LOT OF THE MAJOR DEVELOPMENTS THAT ARE UNDERWAY AND ARE ABOUT TO BE COMPLETED, BUT DID NOT TAKE INTO ACCOUNT BUILDING 2, 3, 4, 5, OR WHATEVER BUILDINGS ARE ARE UNDERWAY YET.
SO THERE'S A LOT OF MOMENTUM IN THE PIPELINE BEHIND THIS, BUT IF IT'S NOT THERE TODAY, IT'S NOT IN HERE.
UM, AGAIN, BACK TO THE DEGREE OF CONSERVATISM IN MIND NUMBERS.
UM, ANY OTHER QUESTIONS ON THIS SLIDE? NO, I MEAN THIS REALLY IS A SPECIAL SAUCE AND GOOD.
SO WE'RE ABLE TO BUDGET CONSERVATIVELY AT THE YEAR END, HAVE SUFFICIENT RESOURCES TO REPLACE THE DEPRECIATION OF OUR FACILITIES AND SPEND CAP MAINTENANCE CAPITAL TO MAINTAIN OUR FACILITIES, WHICH IS THE 34 MILLION.
AND ALSO MAINTAIN, MAINTAIN OUR RESERVES AS A PERCENTAGE OF THE BUDGET SO THAT WE DON'T LOSE OUR CREDIT RATING AND WHATNOT.
AND WE'VE BEEN ABLE TO DO ALL THAT ON BUDGET FOR THE OPERATING SIDE AND NOT RELY ON DEBT FINANCING OR DRAIN RESERVES.
THAT'S KIND OF THE SPECIAL SAUCE CAUSE THE AAA.
IF YOU COULD MAYBE JUMP EVEN TO THE LAST, UH, SLIDE, THE RECOMMENDATION SLIDE.
UM, YEAH, THERE'S, FOR ME MAYBE A LITTLE BIT CONFUSING.
WE, WE STARTED OUT TALKING ABOUT THIS FIVE MINUTE REVENUE.
WHAT, WHAT DO YOU DO WITH IT? DO YOU GIVE IT BACK, YOU SPEND IT, WHAT DO YOU DO WITH IT? UM, THIS SLIDE KIND OF MAKES A JUMP FROM THAT 5 MILLION OF YOU'VE IDENTIFIED ALREADY FROM 24 AND IT MAKES A JUMP AND INCLUDES THE REPROJECTION FOR THE CURRENT FISCAL YEAR.
THERE'S ABOUT 8 MILLION OR SO WE'RE RUNNING AHEAD IN THE CURRENT FISCAL YEAR.
SO THEN YOU, IF YOU ADD THE EIGHT TO FIVE, WE REALLY HAVE 13, WHAT DO WE DO WITH THE 13? AND THE CONTEMPLATION IS OF THE 13 5 MILLION ADDITIONAL SPENDING FIVE TO RESERVES TO MAINTAIN A PERCENTAGE AND 2.8 LATER OR SO OF THAT 13 FOR, FOR TAX RATE.
SO KIND A PORTION OF IT TO TAKE US OUT OF THAT HIGHEST TAX RATE AND 35% INCREASE IN CAR VALUES AND, AND ADDRESS THAT WITH ABOUT 2.8 LESS THAN THREE.
SO FIVE, FIVE AND THREE EACH INTO 13.
UH, THIS SLIDE INTENTIONALLY DOES NOT DRILL DOWN AND SAY, WHICH PROJECTS DID THAT FIVE LANE GO TO IN THE CIP P OR WHICH RESERVES DOES THAT GET ALLOCATED TO? IT'S NOT MEANT TO DRILL DOWN.
THAT'S FOR THE BOARD OF SUPERVISORS TO FIGURE ALL THAT OUT.
THIS IS REALLY JUST A ORDER OF MAGNITUDE.
WHERE ARE WE, WHERE DO WE STAND? UM, HOW FIRM OF GROUND ARE WE STANDING ON? WHAT'S THE FUTURE LOOK LIKE? UM, AND A SUGGESTED ALLOCATION THAT MAYBE THE CITIZENS WOULD LOOK AT THIS AND GO, YES, I'D LIKE SOME ADDITIONAL SPENDING IN THE COUNTY INFRASTRUCTURE.
YES, I WANNA MAINTAIN OUR RESERVES SO WE DON'T LOSE THE AAA.
IT WOULD BE NICE IF WE RETURNED SOME OF THAT, UH, BACK TO THE CITIZENS AND GOT US BACK COMPETITIVE ON THE, ON THE PERSONAL PROPERTY.
ANY THOUGHTS OR QUESTIONS ON THIS SLIDE? I MAY NOT, I
[00:20:01]
WILL COMBINE THIS WITH LOOKING AT SLIDE THREE, I BELIEVE.AND WE'RE ALREADY THE MOST COMPETITIVE PERSON, THE LOWEST IN PERSONAL, I'M SORRY, IN, UH, REAL ESTATE TAX.
AND I JUST SAY, YOU KNOW, I, THIS IS, THAT'S, THAT'S THE ONLY DEBATE I HAVE IS I I I APPRECIATE WHERE WE'RE TRYING TO GO.
I JUST WONDER IN, IN THE WHOLE BALANCE.
I MEAN, WE CAN BE THE LOWEST COUNTY AND HAVE NEEDS, WE KNOW, NEED TO BE ADDRESSED AND EVERYBODY CAN FLOOD HERE.
AND THEN WE'RE RAISING TAXES AGAIN.
AND, AND I JUST, I I, I DON'T THINK WE'RE BEING FISCALLY RESPONSIBLE WITH OUR CONSTITUENTS, BUT AT THE SAME TIME, I, I DO WANT TO TAKE INTO ACCOUNT, I, I APPRECIATE, LET'S GIVE, LET'S GIVE SOMETHING BACK.
BUT IT'S, UH, THE, THIS COMP TABLE WOULD BE BETTER WITH THE REAL ESTATE PROPERTY TAXES ADDRESSED AS WELL.
UM, BECAUSE I DO THINK IT PUTS US IN, YOU KNOW, IT PUTS THE WHOLE SYSTEM IN, UH, IT ALLOWS THE WHOLE SYSTEM TO BE REVIEWED.
UM, SO I JUST, I I LOVE COMP TABLES.
I I APPRECIATE THAT WE'VE ADDRESSED IT AND UM, YOU KNOW, WE GOT, WE'VE GOTTA CONSIDER, OKAY, WHERE DO WE WANT TO BE AND WHAT ARE THE POTENTIAL REPERCUSSIONS OF THAT? UM, IF WE DO HAVE SIGNIFICANT GROWTH, I MEAN THAT'S, UM, PEOPLE STILL WANT TO, NOTHING IS TELLING ME PEOPLE DON'T WANT TO MOVE VALUE, WHETHER IT'S RESIDENTIAL OR WHETHER IT'S COMMERCIAL.
LIKE THAT'S, THAT'S WHERE I'M A LITTLE BIT PRESSED, SO, OKAY.
I MEAN, THE 2 99 WOULD STILL PUT US ABOVE TWO OF OUR NEIGHBORS, UH, BUT BE CERTAINLY COMPETITIVE WITH WHAT WE KNOW TODAY.
WE DON'T KNOW WHAT THEY'RE GONNA DO IN THE FUTURE, BUT LEAST RESTORE THE, YOU WERE ON, ON THE BOARD IN, UH, 21 AND 22.
MY, MY PHONE WAS BRINGING OFF THE HOOK OF 21 AND 22.
I DON'T KNOW, YOURS WAS TOO, BUT THERE WAS WHAT GROWN AT 45% THOSE TWO YEARS, OTHER THAN MAYBE THE PRICE OF EGGS,
BUT I GOT A LOT OF PHONE CALLS WITH ME.
BUDGET, JUST NOT GROWING THAT FAST.
MY HOUSE ISN'T GOING THAT FAST.
MY WAGES AREN'T GOING UP THAT FAST.
WE FEEL LIKE WE'RE BEING OVERTAXED.
AND I GOT A LOT OF THOSE PHONE CALLS IN THAT POINT IN PARTICULAR AREA.
WERE BEING A LITTLE OVERTAXED.
AND, AND THEN WE LOOKED AT THE COPS AND SAID, WELL, YEAH, WE ARE OVERTAXED A BIT CAUSE WE'RE THE HIGHEST IN THE WHOLE AREA TO BE COMPETITIVE OUT OF THAT 13, YOU SAY MAYBE 2.8 OUT OF 13, WHAT WOULD THAT DO? AND IT WOULD MAKE US COMPETITIVE AND NOT THE LOWEST, BUT OBVIOUSLY, BUT COMPETITIVE AND BEGIN TO ADDRESS SOME OF THOSE PHONE CALLS THAT WE GOT SAYING, YOU KNOW, WHAT ARE YOU DOING OVER THERE, KEVIN? UM, MAN, THE ONE HAND, WELL, ANYWAY, SO THE BEING RESPONSIVE TO THE CITIZENS, YOU KNOW, RAISING THEIR HAND AND SAYING, CAN YOU TAKE A LOOK AT THIS BECAUSE IT DOESN'T SEEM LIKE IT'S IN LINE.
UM, THAT STARTED THE THINKING OF THE BALL ROLLING AND WE REALLY DIDN'T DO MUCH, OR AT LEAST NOT AS MUCH AS THE OTHER COUNTIES DID TO ADDRESS THAT BACK IN 21 AND 22.
SO REALLY KIND OF THE LAST ONES TO GO AROUND AND TO TO, TO BRING THIS IN LINE.
COULD I, COULD I ASK ONE MORE THING? YEAH, SURE.
IT'S PROBABLY ON CARLA AND VIC, SO I APOLOGIZE.
3 75 TO 2 99 SEEMS LIKE A BIG JUMP.
25% DECREASE IS SIGNIFICANT SIGNIFICANCE.
COULD WE, IS IT POSSIBLE TO PULL TAX RATES FOR THIS COHORT AND SAY WHAT, YOU KNOW, SEE WHAT HAS HAPPENED THE LAST 10 YEARS? ONLY BECAUSE I, I, I WOULD, I'D LOVE TO DO A GIVE BACK AND SAY, HEY, 50 CENTS IS MORE THAN ANYBODY'S DONE IN THE LAST 10 YEARS, THE LAST 15 YEARS IN ONE, IN ONE MOVE.
IF, IF SOMEBODY'S DONE ANOTHER 70 CENT, 76 CENT DROP, THAT'S GREAT.
LIKE, LIKE I WOULD, I WOULD LOVE THAT DATA, BUT I, I JUST, I WORRY IT'S A LITTLE, A LITTLE MUCH AT ONE TIME AND, AND I APPRECIATE THE GIVE BACK.
THERE'S NO, NO PART OF ME THAT DOES NOT LOVE THE GIVE BACK TO TAXPAYERS.
I JUST, WE GOT A LOT GOING ON AND, AND THE GIVE BACK STICKS,
[00:25:01]
IT'S JUST THE NATURE OF THE COUPLE THINGS, I GUESS, UM, OUT THE 13 MILLION IS 2.8 SOUND LIKE TOO MUCH OUT OF 13.THAT'S KIND OF HOW WE'VE MANAGED BUDDY.
I MEAN, THERE'S KIND OF A RHETORICAL QUESTION, SO LET ME JUST MOVE ON FROM THAT FOR JUST A SECOND.
WHEN YOU, WHEN YOU MENTIONED, YOU KNOW, PEOPLE ARE MOVING HERE, UM, THERE'S NO SHORTAGE, PEOPLE WHO WANT A PIECE OF THE GROUPS OF DREAM AND THAT MAY BE TRUE.
UM, BUT I DO HEAR FROM, UH, THE SHERIFF AND THE CHIEF AND SOME OTHERS THAT TRYING TO ATTRACT AND RETAIN TOP TALENT IN GROUPS AND IS A LITTLE ROUGH, UH, IN PART AS THE AFFORDABILITY.
NOW, IF YOU'RE HIRING SOMEBODY ENTRY LEVEL, FIRST YEAR TEACHER, WHATEVER, FIREMAN, SHERIFF, UM, THAT'S GONNA LIVE AND WORK IN GOODSON, THEY'RE GONNA COMMUTE TO WORK.
NOW WE REALLY CAN'T DO A WHOLE LOT ABOUT THE PRICE OF THE HOUSING THAT'S EXCEPT BY THE MARKET CONDITIONS.
BUT THE TAX ON THEIR ABILITY TO GET TO WORK AND BACK IS SOMETHING THAT WE COULD ADDRESS.
AND FOR ALL THE EMPLOYEES THAT LIVE IN GROUPS AND, AND WORKING GROUPS IN THIS KIND OF RELIEF WOULD BE A REDUCTION OF THEIR TAX BILL OR SET ANOTHER WAY, AN INCREASE IN THEIR AFTER TAX TAKE HOME.
AND AT THE MARGIN WOULD MAKE IT A LITTLE MORE AFFORDABLE FOR THAT.
WE FOLKS IN FOLKS WITH A TIGHT BUDGET THAT ARE TRYING TO BALANCE THEIR BUDGET, IT'S A TIGHT BUDGET AND THEY'VE SEEN INFLATION, UM, ERODE THEIR, THEIR AFTER TAX INCOME.
THIS WILL BE TO SAY, OKAY, EMPLOYEES, ANOTHER REASON WHEN YOU'RE GOING THROUGH THE INTERVIEW PROCESS, WHY WOULD I MOVE YOUR GROUPS AND WHY WOULD I TAKE THIS THEN HERE INSTEAD OF SOMEWHERE ELSE? WHY WOULDN'T I GO TO PALATAN? INSTEAD, IT'S SAY PALATAN CHARGE 360 OR 2 99.
IT'S NOT AN OVERWHELMING THING, BUT IT'S JUST ONE MORE TOOL IN THE RECRUITING AND RETAINING TOOLBOX TO SAY, IF YOU'RE GONNA BE IN A COUNTY EMPLOYEE AND, AND LIVE HERE AND WORK HERE, WE WANT YOU TO BE ABLE TO GET TO WORK.
WE DON'T, WE WANNA TAKE AWAY THOSE IMPEDIMENTS TO WORK AND, UH, AND, AND TO GET A GALLON OF MILK AND SUBSISTENCE AND WHATNOT AS WELL.
SO THAT WOULD BE PART OF THE RATIONALE TO SAY, OKAY, WHY WOULD WE DO THIS? WHO WOULD BENEFIT FROM, IT'D BE ANOTHER RECRUITING AND RETENTION TOOL IF YOU, I'M SURE LOUISA USES THAT ALL THE TIME.
OTHER THOUGHTS OR COMMENTS AROUND THE GROUP ON THIS? I GUESS THE LAST COMMENT I'D MAKE IS, UM, IF YOU GO BACK TO THE LAST SLIDE, JUMPING AROUND HERE.
UM, YEAH, ONE THING I'LL JUST MENTION ON THIS LINE IS THERE MAY BE RECESSION COMING, WE DON'T KNOW.
UM, THERE MAY BE ADDITIONAL C I P PROJECTS WE'LL DO, I DON'T KNOW.
BUT IF, IF THERE'S A, A RECESSION OR JUST A FLATTENING OUT OF OUR REVENUES FROM REAL ESTATE IN THAT THE PROJECTS THAT WE KNOW COME ONLINE, BUT THE EXISTING PROPERTIES DECLINE SOMEWHAT AND YOU GET A NET NET KIND OF FLAT BUDGET, IF YOU WILL, IN THAT, IN THAT SCENARIO WHERE THERE'S A FLAT BUDGET YEAR OVER YEAR, UM, YOU WOULDN'T NEED TO PUT 5 MILLION IN RESERVES BECAUSE RESERVES IS A PERCENT OF BUDGET.
SO YOU'VE GOT EFFECTIVELY ANOTHER 5 MILLION CUSHION.
IF YOU HAD EITHER ADDITIONAL CIP P PROGRAMS FOR, OR, UM, THERE WAS A FLAT BUDGET OR EVEN A SLIGHT DECLINE IN BUDGET AND YOU HAD A BUDGET SHORTFALL, YOU WOULDN'T NEED TO PUT THOSE RESERVES IN.
SO IT'S KIND OF ANOTHER SHOCK ABSORBER OF A SYSTEM IF YOU'LL ON THE DOWNSIDE, UM, WE'RE NOT PREDICTING DOWNSIDE.
ONE OF OUR CORE VALUES IS COURAGE.
YOU TRY AND DO THE RIGHT THING FOR THE RIGHT REASONS.
AND IF WE BRAVELY GO FORWARD AND, AND PREDICT WHAT WE THINK IS CONSERVATIVE BUT REALISTIC, UM, THEN WE WOULDN'T BE ABLE TO GROW THE BUDGET.
THOSE PRICES WILL COME ON AND WE END RESERVES, BUT IF OUR CRYSTAL BALL IS TWO ROADS COLORED AND IT'S A LITTLE LESS THAN THAT, IT'S FLAT OR SLIGHTLY DOWN, THEN THAT FIVE WOULD BE AVAILABLE TO, TO HELP OUT.
DOES THAT MAKE SENSE? IN THE MEANTIME, WE'VE GOT 5 MILLION THAT WE DIDN'T HAVE IN OUR CMP AND ADDITIONAL RESOURCES TO DO ADDITIONAL PROJECTS PULLING FORWARD, UM, OR, OR SPEND ON ADDITIONAL PROJECTS THAT WE HAD IDEAS ON.
AS DECISIONS DO LIKE US TO MAINTAIN OUR FACILITIES AND AND PULL SOME PROJECTS FORWARD, WE CAN COMMITTEE MEMBERS ANY OTHER THOUGHTS OR IDEAS MAYBE GO AROUND THE ROOM.
AND
WELL COMMISSION, I'LL THROW IN THAT AGAIN.
UH, I THINK STAFF'S POSITION OBVIOUSLY IS ANY TIME YOU AFFECT TAXES EXEMPT THE POLICY DECISION.
[00:30:01]
THE NUMBERS.WE KNOW THAT THESE NUMBERS ARE ACCURATE NUMBERS, WE BELIEVE AND WE BELIEVE THAT IN PRESENTING IT, IT CAN'T BE DONE.
AND THAT, UH, NO, WE CAN'T TELL WHAT'S GONNA HAPPEN TWO TO THREE YEARS FROM NOW AND I DON'T WANNA MAKE PROMISES FOR THREE YEARS DOWN THE ROAD.
UH, CERTAINLY IN THE CONTEXT OF CURRENT BUDGET, UM, WE BELIEVE THESE NUMBERS ARE REASONABLE.
WHO SAYS YOU CAN'T HAVE IT ALONE? THANK YOUSOME
AT THIS POINT I'M GONNA OPEN UP THE DISCUSSION A LITTLE BROADER THAN JUST THE COMMITTEE AND PERHAPS GO AROUND THE ROOM TO SEE IF ANYONE ELSE WOULD LIKE TO WEIGH IN.
UM, YOU WANNA GO CLOCKWISE HERE MAYBE? AND START, UH, DO YOU HAVE ANY THOUGHTS ON THIS, KAREN, OR? OH, UM, YES, THANK YOU.
UH, I DO KNOW THAT WE ARE ALL AFFECTED BY TAXES AND WE ARE ALL AFFECTED BY WHAT TAXES DO FOR US IN OUR SERVICES.
UM, SO I'M GLAD THAT YOU ARE ADDRESSING THIS TOPIC.
I, UM, WAS THINKING SOME OF THE THINGS, SAME THINGS, UH, MR. WATERS WAS THAT WHILE THAT WAS, THAT WAS A BIG CHANGE.
UM, I LIKE YOUR APPROACH TO CONSIDERING RETENTION AND, UM, ATTRACTING OUR AMAZING COUNTY EMPLOYEES AND ALL, ALL THE BUSINESSES THAT THEY DO FOR US.
UM, AND I KNOW THAT HAVING TWO DIFFERENT TAX RATES IS WAY COMPLICATED.
UM, SO HOW DO YOU MAKE THAT AN ATTRACTION TO A, A POSSIBLE EMPLOYEE? DO YOU MAKE IT SO MAYBE IT'S NOT 2 99, MAYBE IT'S THREE SOMETHING AND SOMEHOW OUR HEROES GET, UM, SOMETHING ELSE BACK OR LESS.
UM, YOU KNOW, I DUNNO IF THAT WAS CONSIDERED, I KNOW THAT GETS VERY, VERY COMPLICATED, BUT AGAIN, IF YOU'RE, IF YOU'RE TALKING STRICTLY THIS IS AN ATTRACTION AND RETENTION, THEN ARE YOU ADDRESSING THAT? I'M DOING THAT.
UM, BUT YES, I'M DEFINITELY IN FAVOR SINCE I'M A TAXPAYER OF, OF LOOKING AT THAT.
UM, BUT AGAIN, I, I AGREE WITH MR. VADERS THAT IT IS THE NUMBER THAT YOU SAY THAT WE CAN DO THAT, BUT IT'S A GOOD CHANGE.
SO, UM, FORWARD HEARING ABOUT HOW THAT IS GOING TO WORK OUT.
WE KNOW WE HAVE A LOT OF PROJECTS TO DO, BUT WE ALSO KNOW THAT WE CAN'T HAVE A SCHOOL IS JUST BRICKS AND MORTAR WITHOUT THE TALENT IN THE BUILDING.
SO, UM, I APPRECIATE THAT YOU'RE CONSIDERING THAT IN THIS OVERALL.
UH, YES, I, I HAVE, IF YOU DON'T HAVE ANYTHING TO SAY, THAT'S FINE.
I JUST
UH, ONE, ONE QUESTION THAT DID COME UP IN THE LAST, UH, UH, MEETING WITH THE APPROVED AMENDED MINUTES, UH, THERE WAS A DISCUSSION OF EXCLUDING VEHICLES UP TO $5,000.
HAS THAT BEEN EXCISED FROM THIS? YES.
AND, AND LET ME ADDRESS THAT PART.
WHEN WE ORIGINALLY PLANNED THE BUDGET, WE WERE LOOKING AT, THIS DOES NOT TRESPASS ON MY THREE MINUTES, DOES IT? OH NO.
UM, WE HAD STARTED TRYING TO, TO LOOK AT A, AN OUTCOME THAT WOULD AFFECT EVERYBODY, BUT BUT ESPECIALLY THOSE WHO PERHAPS WERE IN A SITUATION WHERE IT WOULD IMPACT THEM MORE.
AND SO WE STARTED WITH AN ASSUMPTION OF LET'S LOOK AT DOING $5,000 ACROSS THE BOARD.
UM, AS WE DELVED INTO THAT, WE, WE CAME TO THE REALIZATION THAT THAT JUST EITHER FOR A VARIETY OF REASONS, IT WAS NOT FEASIBLE OR PRACTICAL TO DO THAT.
SO WE HAD HAD TO GO A DIFFERENT DIRECTION.
SO WE DID LOOK AT THAT, WE EXPLORED IT EXTENSIVELY.
UM, THE, UH, COMMISSIONER CAN TELL YOU HOW EXTENSIVELY THE TREASURER CAN TELL HOW EXTENSIVELY WE, WE EXPLORED THAT ONE AND, AND WE FINALLY HAD TO COME TO CONCLUSION THAT THAT WAS NOT GOING TO BE ABLE TO BE POSSIBLE SO THAT WE LOOKED AT THIS WAY.
SO, AND THAT'S POINT OF CLARIFICATION ON YES, THANK YOU.
UH, AND I HAD VISITED WITH THE COMMISSIONER AND THE, UH, TREASURER AND THEY WERE EXPRESSING SOME EXCITEMENT ABOUT THE NEW OPPORTUNITY THAT WAS GONNA GIVE FOR THEM FROM PERSPECTIVE
SO I'M GLAD THAT THAT WAS ADDRESSED.
UM, YOU KNOW, AS I'VE BEEN LOOKING AT THINGS IN, IN, I, I GUESS I'M AN ORIGINALIST OR NOT, BUT THE VIRGINIA CONSTITUTION SAYS NO OTHER, NO OTHER OR GREATER AMOUNT OF TAX OR REVENUE SHALL AT ANY TIME BE LEVY THEN MAY BE REQUIRED FOR THE NECESSARY EXPENSES OF THE GOVERNMENT OR TO PAY THE INDEBTEDNESS IN THIS CASE OF THE COMMONWEALTH.
[00:35:01]
WORD IS NECESSARY.UM, AND, AND THAT IS OPEN FOR INTERPRETATION AND WHY WE HAVE MEETINGS LIKE THIS.
UH, I, I'M ALL IN FAVOR OF DROPPING THAT TAX RATE AND I WILL EVEN GO A PENNY OR TWO LOWER AND GET BELOW AND RECO.
UM, BECAUSE IT APPEARS IF PASS IS PRO LAW, WE HAVE A CONSERVATIVE BUDGETING PROCESS THAT IS DELIVERING A SURPLUS EVERY YEAR.
IN MY CONVERSATIONS, AND I, THIS MAY BE A SURPRISE TO FOLKS, I'VE BEEN TALKING TO A LOT OF FOLKS IN THE FIFTH DISTRICT THESE LAST COUPLE OF MONTHS.
NOT A ONE IS SAID, I FEEL UNDERTAXED NOT A ONE.
UM, AND SO IS THERE AN OPPORTUNITY, AS WAS OBSERVED TO HAVE IT ALL, THAT WE CAN, UH, FLY OUR FLAG AS THE MOST EFFICIENT WELL RUN COUNTY IN THE COUNTRY BECAUSE OF FISCAL PRUDENCE AND THAT WE ARE NOT AGGREGATING OR IN CONFLICT WITH THE VIRGINIA CONSTITUTION AND THAT WE ARE NOT TAKING MORE MONEY THAN IS NECESSARY.
AND I THINK THE, UH, THE DECREASE THAT COUNTY ADMINISTRATOR HAS PRESENTED DOESN'T.
SO ME BEING ME DROPPING ANOTHER 2 CENTS, GET BELOW HENRICO AND, AND JUST, YOU KNOW, LEAVE THEM IN THE DUST BECAUSE WE'RE IN COMPETITION WITH THEM WHEN IT COMES TO ATTRACTING BUSINESS HERE.
AND TAX RATES ARE A FACTOR IN BUSINESSES MAKING DECISIONS.
BUT THE OTHER PART OF THAT ALSO HAS BEEN OBSERVED, UH, WE NEED TO KEEP STAFF AND UM, THIS MAY NOT BE THE RIGHT FORM TO SAY IT, BUT I HAVE HEARD RUMBLINGS THAT, GEE, IT'S GREAT WE'RE TAKING CARE OF PUBLIC SAFETY, BUT WE GOT OTHER EMPLOYEES HERE THAT AREN'T IN PUBLIC SAFETY, BUT THEY'RE WORKING JUST AS HARD AND THEY'VE ALSO GOT COMPETITIVE PRESSURES FROM OTHER LOCALITIES AND INFLATION IS NOT PICKING FAVORITES AND SAYING, WELL IF YOU'RE ON, UH, ROUNDS AND SERVICE, UH, ROUNDS, YOU DON'T HAVE INFLATIONARY IMPACT THAT, UH, FIRST RESPONDERS DO.
SO MY ENCOURAGEMENT AND I'M TAKING ON FAITH YOU'VE DONE THIS, IS THAT WE KNOW WE'RE COMPENSATING ALL OF OUR STAFF PROPERLY SO THAT WE DON'T INCUR THE EXPENSE OF REPLACEMENT.
I HAVE NOT A BIG COMPANY GUY, BUT I HAVE LEARNED IT HAS COST ME TIME, ENERGY, AND EFFORT TO HIRE SOMEBODY NEW WHEN I LOSE SOMEBODY WHO KNOWS WHAT THEY'RE DOING, UH, AND IDEALLY DOING IT WELL.
SO IF, IF WE'RE ABLE TO RETAIN THESE 200 PLUS EMPLOYEES, UH, THAT ARE DOING I THINK A PRETTY GOOD JOB, UH, THAT MIGHT BE ALSO SOMETHING WE FACTOR IN, WHICH WOULD MAKE ME RETHINK, DO WE WANT TO DROP IT AS THE COUNTY ADMINISTRATOR HAS SUGGESTED OR NOT? AND THAT IS, UH, THE OTHER PART WOULD BE WOULD SOMEBODY TELL ME WHAT A P P T R A MEANS? PERSONAL PROPERTY TAX.
ACRONYMS DO IN A CHALLENGE OBVIOUSLY FOR ME TOO.
WELL, I'M NOT SURE, BUT THERE YOU GO.
MR. CHAIRMAN, THANK YOU FOR THE OPPORTUNITY TO, UH, WELL THANK YOU FOR ATTENDING TODAY AND THANK YOU FOR THAT INPUT.
WE'RE ALWAYS OUT THE, UH, WE'RE ALWAYS SOLICIT AS MUCH INPUT AS WE POSSIBLY CAN CAUSE OTHERWISE WE'RE JUST GONNA GET THANK YOU.
UM, I ALSO HAD A QUESTION HE ASKED THE QUESTION TO ABOUT THE $5,000, UH, AND THAT'S GREAT.
ONE OF THE POINTS I WAS COMING ABOUT TODAY WAS, UM, I WAS HEARING THAT A LICENSE FEE WAS GONNA BE CHARGED TO PARTICULARLY THE, UM, RIVER ROAD COLLEGE AND THOSE LITTLE, THE TYPES OF BUSINESS THAT THE VENDORS WITHIN THERE, WHICH ARE JUST INDIVIDUALS, MOMS, STUFF LIKE THAT, ARE GONNA BE HIT WITH A $50 A YEAR LICENSING FEE WHERE THEY DO NOT HAVE THAT NOW.
AND I THOUGHT THAT THAT IS REALLY DETERRING SMALL BUSINESS BECAUSE THERE ARE GIRLS IN THERE MAKING JEWELRY AND STUFF LIKE THAT.
AND, AND YOU WOULD THINK TWICE ABOUT TRYING TO RENT A SMALL SPACE JUST TO PUT YOUR FORT GOODS UP AND THEN HAVING TO PAY THE FEE TO HAVE IT THERE.
AND THEN YOU'RE GONNA GET WITH HIT WITH A $50 A YEAR LICENSE FEE FOR BEING A VENDOR.
COULD, DOES IT HAVE TO BE SO HOT? COULD IT NOT BE LOWER? OKAY, YOU WANT TOUCH ON THAT OR NO, I MEAN I CAN OR I CAN JUST TALK TO HER OFFLINE.
UM, DID YOU HAVE ANY THOUGHTS ON THE PRESENTATION OR NO.
UM, I, I WORKED IN HENRICO UM, YEARS AGO AND THEY DID A BUDGET ANALYSIS BETWEEN UH, POLICE AND FIRE AND OTHER COUNTY EMPLOYEES.
AND IT IS THE ONLY TIME IN MY LIFE I EVER GOT A $5,000 INCREASE BECAUSE THE PARENT CAME IN.
AND I DON'T KNOW IF THAT MIGHT BE HELPFUL FOR YOUR EMPLOYEES
[00:40:01]
BECAUSE YOU'RE RIGHT, IT'S, I MANAGE, I'VE SUPERVISED.IT'S SO MUCH MORE INTENT TO BRING IN SOMEONE NEW.
YOU LOSE THE KNOWLEDGE, YOU LOSE THE HISTORY YOU USE THE EXPERIENCE, YOU LOSE EVERYTHING.
AND TO GIVE AN INCREASE IN, IN SALARY WOULD MEAN A GREAT DEAL, ESPECIALLY DURING THIS TIME.
DO YOU HAVE ANY COMMENT AT THIS POINT? UM, ANY OTHER THOUGHTS? UH, I JUST HAVE ONE LAST THOUGHT I'LL SHARE JOE, SORRY, I'LL GO AROUND.
UM, I'M STEPHANIE WHITE, I'M HERE FOR W WHITE.
I'M AN ASSISTANT DIRECTOR OF FINANCE FOR SCHOOLS.
AND SO, UM, PROBABLY FAMILIAR BUT NEW BASED TO SELL.
UM, I, YOU KNOW, I'M KIND OF LIKE TO UH, ECHO YOUR SENTI ABOUT WHEN MAKING A CHANGE, UH, PERMANENTLY VERSUS MAYBE A ONE TIME REBATE TO TAXPAYERS NOT KNOWING ARE WE GONNA BE ABLE TO SUSTAIN, YOU KNOW, THAT TYPE OF BUDGET SUPPLEMENT EACH YEAR, YOU KNOW, TO SEE THAT REVENUE INCREASE BECAUSE AS YOU SAID, IT DOESN'T LOOK GREAT TO YOUR TAX PAYERS IF YOU LOWER IT AND THEN EVENTUALLY, LET'S SAY THREE YEARS DOWN ROAD, WE'VE GOTTA INCREASE IT AGAIN.
UM, BUT I ALSO THINK TOO, JUST TO THE POINT OF, UH, ADDITIONAL MONEY GOING INTO YOUR OPERATIONAL BUDGET, UM, IT IS HARD TO EXPLAIN TO YOUR EMPLOYEES AND OUR BIGGEST POOL IS OF COURSE TEACHERS, WE DON'T KNOW YET THE IMPACT, BUT HECO GIVING A HUGE 8% INCREASE THIS YEAR IS GONNA HAVE, YOU KNOW, SOME OF OUR TEACHERS LEAVING BECAUSE THEY LIVE IN HEN WACO AND THEY ARE SEEING THESE HUGE INCREASES.
SO I WOULD WANT, YOU KNOW, THE BOARD TO CARE POLITICAL CENTER, YOU KNOW, INCREASES UH, TO THE SCHOOLS AS WELL SO THAT WE COULD BE COMPETITIVE, YOU KNOW, WITH OUR NEIGHBORS IN TERMS OF TEACHER SALARIES BECAUSE RETENTION THERE IS VERY DIFFICULT IN, IN OUR CURRENT ENVIRONMENT.
AND UM, YOU KNOW, OUR TEACHERS, THERE'S GONNA BE A SHORTAGE.
WE WERE VERY FORTUNATE THIS YEAR TO FILL ALL OF OUR VACANCIES, BUT UM, I DON'T THINK THAT WE'LL SEE THAT AGAIN THIS YEAR.
AND UM, SO THAT, YOU KNOW, I THINK IS SOMETHING TO CONSIDER AS WELL.
UM, BUT UH, YOU KNOW, BACK TO THE TAX RATE AND YOU KNOW, I DON'T KNOW IF, IF YOU ALL LOOKED AT SOME TYPE OF ONE TIME REBATE, WHICH I KNOW I THINK THE CITY OF RICHMOND IS DOING CURRENTLY VERSUS A, YOU KNOW, PERHAPS YOU, YOU KNOW, DO A HYBRID AND YOU LOWER THE TAX RATE SOME UM, GOING FORWARD, BUT YOU DO A ONE TIME REBATE TO YOUR TAXPAYERS THAT PUTS MONEY RIGHT INTO THEIR POCKET, YOU KNOW, STRAIGHT AWAY.
AND A COUPLE OF VERY GOOD THOUGHTS IN THERE.
I WANNA MAKE SURE, UM, WE PROBABLY WILL BEFORE THE 18TH, UM, NEED TO GET THE MOST CURRENT INFORMATION ON WHAT OUR SURROUNDING COUNTIES ARE DOING THIS SOUTH CAUSE WE WANT TO ATTRACT AND RETAINED.
AND THIS COULD BE A PIECE AT ATTRACT AND RETAINED, BUT THERE MAY BE OTHER PIECES AS WELL.
AND WHETHER IT'S TEACHERS, SHERIFF DEPUTIES, FIREMEN, WE SHOULD HAVE THE MOST UP TO DATE.
UH, CAUSE EVERYONE ELSE IS GOING THROUGH THE SAME PROCESS.
SO THE NUMBERS WE'RE LOOKING AT NOW ABOUT SURROUNDING COUNTIES, THEY'RE TAKING A LOOK AT THEIR NUMBERS TOO AND WHAT SHOULD THEY DOING WITH SHOWERS THIS.
SO THAT'S ONE PIECE OF IT IS TO MAKE SURE THEY HAVE THE MOST CURRENT INFORMATION.
THE SECOND PIECE ABOUT TEMPORARY VERSUS WHAT WE GENERALLY DO WITH BUDGETING IS IF WE HAVE A ONE-TIME SOURCE, LIKE A, A GRANT OR ONE-TIME RESOURCE OF MONEY, WE'LL LIMIT THAT SPENDING TO TIME EXPENDITURES.
SO WE DON'T GET STUCK WITH THE GRANT THAT FUNDS A POSITION, THEN THE GRANT GOES AWAY AND WE'RE STUCK WITH AN INDIVIDUAL.
AT THE SAME TIME, IF WE HAVE RECURRING REVENUES LIKE ANOTHER 5,000 VEHICLES REGISTERED IN GOA AND THEY'RE GONNA PAY THIS TAX EVERY YEAR, WE TYPICALLY HAVE DONE MORE OF A PERMANENT RECURRING ADJUSTMENT TO THE RECURRING REVENUE.
SO WE'RE TRYING TO MATCH THE TWO ONE TIME AND ONE TIME RECURRING.
THIS PERSONAL PROPERTY TAX INCREASE THAT WE'VE SEEN IS LIKELY TO BE A RECURRING SOURCE RATHER THAN, AND AND I, I AGREE TO YOU, I AGREE WITH YOU.
YOU KNOW, JUST HOPEFULLY IT IS GOING TO BE SOMETHING THAT, YOU KNOW, WE'VE SEEN THE FIVE YEAR TREND, BUT I HOPE THAT YOU CONTINUE TO SEE THAT.
I THINK THERE IS STILL SOME UNCERTAINTY EVEN THOUGH IT'S NOT QUITE AS DOOM AS EVERYBODY WAS THANKING YOU.
THANK YOU FOR ALL THOSE COMMENTS.
UM, WHEN WE SKIPPED YOU, DIDN'T WE,
[00:45:05]
SO I AGREE WITH BITS AND PEACE OF WHAT EVERYBODY HAS SAID TODAY AND AS A TAXPAYER, CAUSE I DO LIKE ONE, IT'S VERY ATTRACTIVE TO SEE A 2 99 TAX RATE.UM, I'M KIND OF WONDERING IF IT'S TOO DRASTIC.
UM, THE OTHER POINT I WOULD MAKE IS I HAVE RECENTLY GONE THROUGH A HIRING PROCESS AND MY OFFICE AND I WILL TELL YOU THE STUDY THAT WE DID A YEAR AGO IN ADJUSTING OUR SALARIES IS WELL OUTDATED.
IT IS, YOU KNOW, IT IS CHANGING EVERY DAY OUT THERE IN THE MARKET AND I HAD A TERRIBLE TERRIBLE TIME.
UM, OUT OF ALL THE APPLICANTS I HAD, I ONLY HAD TWO THAT I WOULD EVEN INTERVIEW.
UM, IT WAS JUST, IT'S, IT'S TERRIBLE AND I'M SURE HR IS HAVING THAT SAME PROBLEM ACROSS THE BOARD.
SO I GUESS THAT'S WHY I'M SAYING IT'S 2 99 2 DRASTIC.
DO WE NEED TO THINK ABOUT SOMETHING ELSE? I DON'T KNOW.
UM, AND THEN THE OTHER COMMENT I WOULD MAKE IS, AGAIN, I'M THINKING AS A TAXPAYER IS, OKAY, JUST A YEAR AGO Y'ALL ASKED ME TO APPROVE ALL THIS BOND FUNDING.
NOW YOU'RE SAYING WE HAVE ALL THIS SURPLUS AND WHILE I APPRECIATE THE DECREASE, I THINK WE NEED TO BE ABLE TO ANSWER THEIR QUESTION ABOUT WHY DID WE GO OUT AND DO ALL THIS BOND FUNDING.
AND I JUST THINK WE HAVE TO BE PREPARED TO FOR THAT COMMUNICATION PROCESS BECAUSE WE, WE DID ASK THEM TO DO THAT AND THEY WERE OVERWHELMINGLY IMPROVED AND IT WAS, IT WAS GREAT AND BUT DID WE ASK FOR TOO MUCH? OKAY, GOOD.
UM, THE FIVE 10 OR 12 OR 13 ISN'T ENOUGH TO BUILD TO SCHOOL OBVIOUSLY.
SO WE NEED TO, AND A CAPITAL PROJECT THAT'S GONNA LAST 30 YEARS SHOULD PROBABLY BE FUNDED WITH THIRD YEAR MONEY AND IT'S A LUMPY KIND OF THING ANYWAY.
BUT YOU'RE RIGHT, THE COMMUNICATION PART OF THAT MM-HMM
UM, NOW THE ANNUAL INCREASES HERE WILL BE ABLE TO, WILL ENABLE US TO BE ABLE TO FINANCE THAT MM-HMM.
AND WE DID GET A VERY ATTRACTIVE RATE ON THAT.
UM, AND UH, BUT BUT IT'S A GOOD POINT.
UM, THE IDEA IS WE WON'T GO BACK TO THE PREVIOUS TERM THAT SHOWED REVENUES AND TRANSFERS, BUT THAT 34 MILLION IF YOU REMEMBER, WHICH WAS THE TRANSFERS THAT'S CONSIDERED THAT TO BE MAINTENANCE CAPITAL SPENDING.
IF YOU DIVIDE CAPITAL SPENDING OR CIP P SPENDING IN THE KIND OF TWO BUCKETS.
ONE WOULD BE JUST TO MAINTAIN YOUR FACILITIES AND ONE WOULD BE WHAT I CALL CAPACITY EXPANSION.
THAT WOULD BE A NEW FIREHOUSE.
MM-HMM
SO WHAT YOU'VE SEEN HERE, THE 34 MILLION OF SPENDING IS REALLY KIND OF MAINTENANCE CAPEX REPLACING VEHICLES, UM, AIR CONDITIONERS, HEATING SYSTEMS, ALL OF THAT.
UM, AND SO WE'VE BEEN ABLE TO DO THAT AS WE GO ALONG.
BUT THEN WHEN IT CAME TO CAPACITY EXPANSION MILLION NEW FIREHOUSE AND DOUBLING THE SIZE OF THE SCHOOL, THAT'S REALLY WHERE YOU LOOK TO DEAD FINANCING BECAUSE IT'S A PRETTY LUMPY UM, EXPANSION.
EXPANSION AS OPPOSED TO AN OPERATING BUDGET, ANNUAL MAINTENANCE KINDA EXPANSION.
SO, AND I THINK MANY PEOPLE IN THIS ROOM UNDERSTAND THAT, BUT I DON'T THINK YOUR AVERAGE CITIZEN IS GOING TO.
SO THAT'S WHY I THINK IT MIGHT BE IMPORTANT TO BE PREPARED.
HOW MUCH CAN BE PREPARED FOR THAT UM, WAS THE ONLY THING I WAS MAKING WHILE I, I GET IT.
I DON'T THINK YOUR AVERAGE PERSON THAT'S NOT INVOLVED IN THIS ALL THE TIME WILL UNDERSTAND THAT.
DO YOU HAVE ANY QUESTIONS ON YOUR NUMBERS
I DO HAVE A QUESTION THAT PROBABLY YOU WOULD BE MOST LIKELY TO BE ABLE TO ANSWER.
UM, OVER THE PAST FIVE OR SIX YEARS, HOW MANY LARGE, I MEAN SUBSTANTIAL CIP P PROJECTS HAVE WE HAD, AND I ASKED THAT I KNOW ELEMENTARY SCHOOL WE PUT UP 15 MILLION FOR THAT, 15 TO 17 MILLION FOR THAT.
BUT THE HESITANCY IN ME JUST, AND WE'VE TALKED ABOUT THIS BEFORE, JUST KNOWS WE'VE GOT THE BOND MONEY FOR THE COURTHOUSE AND THE FIRE STATION, BUT WE KNOW THAT IT'S NOT GONNA BE ENOUGH FOR THE IDEAL BUILDING THAT WE WANT.
SO WE'VE BEEN TRYING TO PUT AWAY MONEY FOR THAT AND WE'VE DONE WELL WITH LOCAL DOLLARS AND THEN WE ALSO WILL HAVE TO MAN THE WEST CREEK FIRE
[00:50:01]
STATION, WHICH WILL BE ABOUT $2 MILLION A YEAR RECURRING.UM, AND THEN LOOKING FARTHER OUT, WE'VE GOT, YOU KNOW, IN THE NEXT FIVE OR SIX YEARS, ANOTHER FIRE STATION WHICH WILL HAVE TO BE MANNED.
YOU KNOW, JUST THAT'S THE ONLY HESITANCY IN THE BACK OF MY MIND IS WE HAVE DONE REALLY WELL AND IF IT CONTINUES THIS WAY, I FEEL GOOD.
BUT THAT WOULD BE ASSUMING THAT WE ALSO HAD LARGE CIP P COSTS COMING OUT OF THOSE, THOSE BUDGETS ALSO, YOU KNOW, IS THERE SOMETHING NEW, AN EXPENSES BUDGET IS ABOUT TO HAPPEN THAT HASN'T HAPPENED IN THE PAST WHERE WE MIGHT NEED SOME OF THIS MONEY? OKAY, SURE.
UM, THE BONDS THAT WE ISSUED TO FINANCE THE NEW SCHOOL WAS THE FIRST TIME THAT GOON COUNTY TO CAPITAL MARKETS ON A DIRECT BASIS BECAUSE WE HAD JUST GOTTEN THE AAA ACROSS THE BOARD BECAUSE PRIOR TO THAT WE WERE NOT GRAD SO WE HAD NO ACCESS TO CAPITAL.
WE HAD TO GO THROUGH VIRGINIA.
WE HAD SOME INEFFICIENCIES TO DO AN THAT TWO STEP PROCESS.
SO BEFORE THE SCHOOL, LET'S GET BEFORE SCHOOL, AFTER SCHOOL, RIGHT.
UM, BEFORE SCHOOL WE DID CASH FUND ON OUR PROJECTS MOST OF, UM, THE NEW ANIMAL SHELTER, UM, WHICH WAS A MULTIMILLION DOLLAR PROJECT, THE NEW NINE ONE ONE, THE EMERGENCY CALL CENTER, WHICH AGAIN WAS ABOUT 4 MILLION PROJECT, UM, COMPANY SIX FIREHOUSE, THE NEW FIREHOUSE OUT THERE, PRETTY MUCH CASH FUNDED ALL THOSE OUT OF TRANSFERS.
SO WE'VE BEEN ABLE TO DIGEST THE 5 MILLION, 6 MILLION, 7 MILLION PROJECT YEAH.
OUT OF THOSE TRANSFERS EACH YEAR.
UM, BUT THEN WHEN IT CAME TO A FOUR OR 50 MILLION PROJECT AND WE HAD DIRECT ACCESS AND VERY BIG, INTERESTING, IT SEEMED LIKE THE RIGHT THING TO DO TO PULL THE TRIGGER ON A 2% LOAN FOR 50 MILLION TO FUND THAT SCHOOL LONG TERM AND TURN THAT OUT.
UM, AND AND SO WHEN IT CAME TO SOMETHING LIKE THAT WHERE WE HAD THE ACCESS, WE HAD THE RATING, WE HAD THE ABILITY, WE HAD THE LOW ENVIRONMENT, THAT SEEMED THE RIGHT THING TO DO AT THE TIME.
AND IT'S RIGHT NOW MONEY, 15 MILLION OR SOMETHING, UM, WHICH WAS NICE.
UM, SO NOW A LITTLE BIT OF HISTORY AS WELL.
I'M A PERSONAL PROPERTY TAX RATE.
UH, WHEN I WAS FIRST ELECTED IT WAS 4%.
WE DID AN INCREMENTAL CUT TO 3 95 JUST TO GET RID OF THE FOUR WASN'T ENOUGH TO STAY COMPETITIVE.
SO WE VOTED AGAIN TO 3 75 AND THE WORLD HASN'T COLLAPSED AND WE, THIS HAS ALL HAPPENED AFTER WE LOWERED IT FROM FOUR TO 3 75.
UM, CUZ AGAIN, ONE OF OUR VALUES IS COURAGE.
WE DO THE RIGHT THING AND, AND WE HAVE NOT HAD ANY PRESSURE TO RAISE TAXES AGAIN.
WE, AND THE LAST THING I'LL MENTION OF THIS, UH, PERSONAL PROPERTY AS FAR AS TAX POLICY GOES FOR THE COUNTY, YOU, YOU WANT TO HAVE REASONABLY STABLE, REASONABLY STABLE TAX BASE GROWING SLIGHTLY YES, BUT REASONABLY STABLE, FAR AND AWAY THE MOST VOLATILE STREAM OF TAX REVENUE IS THIS PERSONAL PROPERTY TAX.
YOU SAW IT GO UP 45% IN TWO YEARS.
THAT IS A VERY, VERY VOLATILE SEQUENCE.
AND IS IT GONNA GO BACK DOWN OR GO UP ANOTHER 45? YOU REALLY DON'T WANT TO BUILD SALARIES FOR YOUR EMPLOYEES AROUND A TAX STREAM THAT GOES 40 OR 50% IN ONE DIRECTION OR THE OTHER.
UM, HOUSING PRICES MIGHT MOVE 3, 4, 5, BUT THEY'RE NOT MOVING 45 IN SPACE IN TWO YEARS.
SO BEING OVERRELIANT ON A HIGHLY VOLATILE TAX STREAM DOESN'T SEEM LIKE GOOD TAX POLICY.
YOU WANT TO HAVE MULTIPLE SOURCES OF TAXES, HAVE DIVERSIFIED SOURCES.
UM, AND WHEN I WAS FIRST ELECTED WE WERE HIGHLY CONCENTRATED ON CAP ONE AND ONE OR TWO OTHERS.
NOW WE ARE MUCH MORE DIVERSIFIED IN TERMS OF OUR COMMERCIAL TAX BASE CAUSE THERE'S A LOT MORE COMMERCE OUT THERE, A LOT MORE BUSINESSES.
UH, INDIVIDUALS, THERE'S A LITTLE HIGHER POPULATION, A LITTLE MORE ROOFTOPS, AGAIN, A LITTLE MORE DIVERSIFICATION IN TAX REVENUE SOURCE THERE AS WELL.
BUT THIS REVENUE STREAM OF PERSONAL PROPERTY TAX BOUNCES AROUND WAY TOO MUCH TO BUILD A STABLE BUDGET AROUND WITH SALARIES AND UH, AND PUBLIC SAFETY AND EDUCATION.
SO MIGHT LAST THAT SERIES OF WHAT TAX POLICY SHOULD BE AND COULD BE, UM, RESPECT TO DIFFERENT SOURCES OF TAXES AND DIFFERENT, ANY ADDITIONAL THOUGHTS? UH, THERE'S SOMETHING BOUNCING WELL, I DO, I I THINK WE'VE HAD AN INVERSION OF WHAT YOU WERE TALKING ABOUT EARLIER.
SO OVER THE COURSE OF THE DECADE, 12 YEARS THAT'S TOTALLY LOGICAL IS PEOPLE WORRY ABOUT TAX RATE IN SOME ENVIRONMENTS.
I THINK RIGHT NOW, IF WE'RE COMPARING APPLES TO APPLES, WHAT I HEAR YOU MENTIONED YOU WERE GETTING CALLS ABOUT TAX RATES.
WHAT I GET CALLS ABOUT ALL THE TIME IS WE'RE NOT ABLE TO KEEP UP WITH AN ABSOLUTE DOLLAR AMOUNT AND THAT'S WHAT THE
[00:55:01]
SHERIFF'S OFFICE FIRE AND RESCUE OTHER YEAH.I, I WANT TO GIVE RELIEF, BUT I ALSO WANT TO SAY, OKAY, WE'VE GOT THIS REAL, YOU KNOW, CHALLENGE RIGHT IN FRONT OF OUR FACES.
I MEAN, WE, WE COULD PROVIDE ESSENTIAL SERVICES, BE COMPETITIVE AND, AND I WILL TELL YOU, I DO THINK IT MIGHT BE A GENERATIONAL THING.
I DON'T HAVE THE PHILOSOPHY BEHIND IT.
ABSOLUTE SALARY TRUMP'S TAX RATE 50 TIMES.
I MEAN IT, IT DIDN'T JUST, MAYBE I'LL JUST SAY FOR JIM Z I CAN GUARANTEE YOU THEY'LL MOVE OVER $4,000 BEFORE THEY'LL MOVE OVER 3 75 TO 2 99.
THAT'S JUST, THAT'S JUST MY OPINION.
AND I I I WANT US TO, TO THE EXTENT OUR ADMINISTRATION FEELS GOOD WITH IT.
AND, AND THAT WAS THE QUESTION I WAS GONNA ASK EARLIER AND MAYBE I POSE IT AFTER THE FACT IS WE SHOW EVERY YEAR IT WOULD BE ONE THING IF WE SHOWED A VACILLATION, LIKE YOU'RE TALKING ABOUT EVERY YEAR WE DON'T DO THAT.
WE SAY WE'RE JUST GONNA BEAT THE THE STANDARD.
WE'RE GONNA BEAT THE STANDARD EVERY YEAR.
I WOULD, I WANT US TO MANAGE TO THAT HAVE THIS SURPLUS THAT THEN ALLOWS US TO SAY, THIS IS WHAT WE'RE ATTACKING THIS YEAR.
THIS IS WHAT WE'RE ATTACKING THIS YEAR.
THIS IS WHAT WE'RE ATTACKING THIS YEAR VERSUS 3 75 TO 2 99 THAT A HUNDRED PEOPLE MIGHT BE HAPPY WITH 25,000 PLUS OR, OR YOU KNOW, SOMEWHAT INDIFFERENT OF, AND I'M JUST A, AND AND FIRE AND RESCUE GOT 40 NEW GUYS AND POLICE DEPARTMENT GOT 20 NEW GUYS AND, AND WHATEVER IT IS, MEN AND WOMEN, SORRY GUYS, SAY GUYS.
UM, BUT I, I JUST, THAT, THAT'S WHAT I WRESTLE WITH BECAUSE I DO THINK IT'S A NEW PARADIGM AND IT IS A, IT KILLS ME WHEN I TALK TO OUR SHERIFF AND HE SAYS, WE LOST SOMEBODY TO CHESTERFIELD 3000 ABSOLUTE DOLLARS.
THAT'S 50 A PAYCHECK, ALRIGHT, 60 A PAYCHECK.
WE'RE GONNA, WE'RE GONNA LOSE PEOPLE OVER THAT.
AND I, UM, I THINK OUR CITIZENS WOULD APPRECIATE HEARING THIS IS EXACTLY WHERE IT WENT AND THIS IS THE BENEFIT YOU, THE ADDED BENEFIT YOU GOT TO IT OVER THERE, YOU KNOW, $5 IN THEIR TAX BILL IN, IN A CERTAIN TAX BILL.
IF THEY HAVE A LESS EXPENSIVE CAR, IF THEY'VE GOT A MORE EXPENSIVE PARTY, YOU PAY FOR WHAT YOU GET.
I MEAN, AND, AND I DON'T, I DON'T KNOW ANYBODY WHO'S AT THE, UH, AUDI OR MERCEDES DEALERSHIP IS SAYING, I'M NOT GONNA DO IT TODAY BECAUSE GUCCI COUNTY'S 3 75 AND EN RECCO IS, YOU KNOW, 3 24 OR WHATEVER IT IS.
I JUST, I UM, HEY, I JUST THINK IT'S, UH, IT'S, AND THEN TO JONATHAN'S POINT, SORRY, UH, TO JONATHAN'S POINT EARLIER, I DO THINK I, I BELIEVE WE'RE A CONSTITUTION OF THE COMMONWEALTH.
WE KNOW WHAT WE KNOW WE HAVE NEEDS COMING UP.
THEY'RE NOT IN THE 2024 BUDGET.
THEY'RE NOT IN THE 2025 BUDGET.
THEY'RE NOT IN THE 2026 BUDGET.
BUT WHEN WE'VE SEEN RENDERINGS, THAT'S REAL.
IT'S LIKE WATCHING A CHILD GROW LIKE WE NEED TO.
I I, IT'S HARD FOR ME TO SAY, OKAY, YOU KNOW, I AM AGAINST GIVING, I DON'T WANT TO SAY I DON'T WANT TO BE SOMEBODY WHO GETS TAGGED WITH, OKAY, HE'S NOT GIVING TAXPAYER MONEY BACK.
BUT I DON'T THINK WE'RE, I DON'T THINK WE ARE BETRAYING OUR FOREFATHERS AND THE PEOPLE WHO WROTE THE CONSTITUTION OF THE COMMONWEALTH BY SAYING, WE KNOW THESE ARE COMING DOWN THE ROAD AND WE NEED, NEED TO MAKE SOME DECISIONS THAT MIGHT BE POLITICALLY UNPOPULAR AND IN YOUR TERM FOR THAT.
SO I JUST, UH, I SO COULDN'T HAVE HAD A BETTER SEGUE FROM CARLA ON THAT POINT, BUT, UH, I DO THINK IT'S CRITICALLY IMPORTANT TO KEEP IN MIND.
I'M, I'M TEASING AT LEAST TWO PRIMARY CONCERNS FROM WHAT YOU'VE MENTIONED.
UM, ONE IS TO MAKE SURE THAT WE'RE COMPETITIVE ON THE SIDE OF THE FIRM AND THAT'S SOMETHING THAT WE'VE JUST ALREADY MENTIONED, THAT WE NEED TO TAKE A HARD LOOK AT THAT WITH THE MOST CURRENT INFORMATION, WITH WHAT OTHERS MIGHT BE DOING AS WE SIT HERE TODAY AND MAKE
[01:00:01]
SURE THAT WE'RE AT LEAST AWARE AND REMAIN COMPETITIVE BECAUSE WE TALKED ABOUT ATTRACTIVE, RETAIN, CRITICAL, AND WE LOSE EMPLOYEES.IT'S MORE EXPENSIVE THAN, THAN TO KEEP EM.
AND SO I ABSOLUTELY AGREE WITH ALL THAT.
WE SHOULD TAKE A REAL HARD LOOK AT THAT.
UM, THE SECOND PART, IT SOUNDED LIKE, UM, A LITTLE CONCERNED ABOUT YEARS FIVE THROUGH 10, THAT THIS YEAR, NEXT YEAR, THE YEAR AFTER THE NEXT, THE FORESEEABLE FUTURE, THE FUTURE'S BRIGHT.
BUT SOME CONCERN BEYOND THAT, AND WE DIDN'T TOUCH ON IT YET, BUT MAYBE I SHOULD HAVE.
THERE WAS A CIP P 25 YEAR PLAN PUT FORTH, UM, IN THIS BUDGET PROCESS, WE'LL ONLY BE ASKED TO APPROPRIATE THE CURRENT YEAR AND PERHAPS REVIEW A PLAN FOR YEAR TWO, BUT NOT APPROPRIATE ANYTHING.
BUT I'M GONNA SUGGEST THAT WE PROBABLY SHOULDN'T LOOK AT THE CURRENT CIP P BEYOND THAT SECOND OR THIRD YEAR BECAUSE IT STILL NEEDS A LITTLE BIT OF WORK.
AND WE'RE GONNA CONTINUE TO, TO DO THAT WORK GOING FORWARD AND MAKE SURE THAT THAT CIP P CAN REFLECT A LITTLE HIGHER DEGREE OF CERTAINTY, UH, A LITTLE HIGHER DEGREE OF REASONABLENESS AND PERHAPS SOME COMFORT.
THE YEARS FIVE THROUGH 10 ARE MANAGEABLE AND SHOULDN'T BE THE REASON WE TODAY DON'T DO SOMETHING BECAUSE YOU'RE FIVE OR SIX BECAUSE THOSE ARE IMPORTANT YEARS AND WE NEED TO HAVE SOME SENSE.
WE HAVE NO IDEA WHAT, SEVEN YEARS, BUT, BUT REALLY IT'S GONNA BE HAPPENING OTHER THAN THE EARTH CAN BE TURNING IN THE SAME DIRECTION.
BUT BEYOND THAT, IT'S NOT A WHOLE LOT OF CERTAIN.
SO, BUT IT DOES NEED SOME WORK.
AND I, AND I HAVE SOME IDEAS ON THAT FRONT AS WELL THAT WE CAN CERTAINLY TAKE A REAL HARD LOOK AT THAT TO MAKE SURE THAT COMFORT LEVEL IS THERE.
CUZ I THINK IT'S, IT'S JUST NOT THE NUMBERS RIGHT NOW AND WITHOUT CANCELING PROJECTS OR, YOU KNOW, BUT THERE ARE SOME THINGS THAT, THAT KIND OF SHOULD BE DONE LONGER TERM.
SO THOSE ARE THE TWO CONCERNS.
I KIND OF MAKE SURE WE'RE COMPETITIVE ACROSS THE BOARDING SALARIES, MAKE SURE THAT WE HAVE OUR FUTURE NEEDS, OUR LONGER TERM FUTURE NEEDS.
AT LEAST SOME SKETCH AROUND HOW WE MIGHT BE ABLE TO ACCOMPLISH WHAT WE KNOW IS COMING OR THINK IS COMING IN THE OUT YEARS.
BUT IN THE NEAR TERM, AGAIN, THIS BUDGET IS FAIRLY CONSERVATIVE, WHAT WE KNOW ABOUT THIS YEAR, NEXT YEAR AND THE YEAR AFTER.
UH, AND THAT'S WHEN WE NO, NO.
AND THEN WE GO BEYOND THAT GETS LESS UNCERTAIN.
BUT, BUT WE SHOULD HAVE SOME PLAN KIND OF MAKES SENSE THAT HANG TOGETHER INTERNALLY.
IS FISCAL BE CONSERVATIVE, FISCAL RESPONSIVE THAT IS COMMUNICATED WELL.
I THINK THAT'S THE THIRD POINT I'M PICKING UP FROM MR. WATERS IS JUST THAT WE DON'T ALWAYS COMMUNICATE WELL WITHOUT, YOU KNOW, OUR COMMUNITY AND HOW, HOW ARE THE TAX DOLLARS THAT ARE, YOU KNOW, IN EXCESS OF OUR BUDGET FEES.
TO YOUR POINT, I MEAN, IF YOU OWN A CAR WITH $5,000, THAT 75 CENTS PER HUNDRED DOLLARS, THAT'S NOT PUTTING FOOD ON YOUR TABLE.
THAT'S NOT PUTTING TWO TANKS OF GAS IN YOUR CAR.
YOU KNOW, FOR, IF YOU LOOK AT IT FOR A YEAR AND IF YOU KNOW PEOPLE THAT NEED IT, LIKE YOU SAID, THE PERSON BUYING THE AUDI, THAT'S NOT GONNA MAKE A BREAK.
THE PERSON BUYING THE USED TOYOTA.
THAT THAT'S THE PERSON THAT NEEDS THE, THE TAX BRACKET.
OKAY, WELL IF YOU RAISE ANOTHER GOOD POINT, HOW WE DO LITTLE TIGHTER HERE.
YOU RAISE ANOTHER VERY GOOD POINT, WHICH A LOT OF TIMES ANOTHER CRITICISM OF GOVERNMENT IS THEY TEND TO LOOK AT THE WORLD OF STATIC.
THAT IF WE CHANGE THIS RATE, IT'LL BE X DOLLARS IN THE BUDGET AND ET CETERA, ET CETERA.
WHAT I, EXCUSE ME, WHAT I HAVEN'T DONE THIS BEING JUST IN TOUCH ON SOME OF THE ANECDOTAL EVIDENCE, LIKE WHAT'S REALLY GOING ON OUT THERE IN THE WORLD ONCE WE STARTED TO CONSIDER SOMETHING LIKE THIS, I STARTED TO NOTICE AS I DROVE AROUND EAST END COUNTY, HOW MANY TEXAS PLATES THERE WERE, HOW MANY FLORIDA PLATES THERE WERE, HOW MANY TENNESSEE PLATES THERE WERE WHERE PEOPLE HAVE MULTIPLE RESIDENTS AND THEY CAN CHOOSE AND PICK WHERE THEY WANT TO REGISTER THAT AUDI, THEY'LL STILL BUY THE AUDI, BUT THEY HAVE CHOICES, RIGHT? A MORE DYNAMIC APPROACH WOULD BE TO SAY, WELL IF WE BECOME VERY COMPETITIVE, WE'RE SURROUNDING JURISDICTIONS, DOES ANYBODY SAY, WELL THEN NOW IT'S NOT WORTH THE HASSLE AND FIGURING OUT HOW TO DO IT OUT OF, OUT OF HOOPS AND LET'S GO AHEAD AND BRING THOSE VEHICLES BACK.
SO, YOU KNOW, A DYNAMIC APPROACH WOULD SAY THERE'S GONNA BE SOME OF THAT CUZ YOU'RE REDUCING THE INCENTIVE TO GO SOMEWHERE ELSE WITH YOUR VEHICLE.
UM, THAT, THAT'S KIND OF ONE PIECE.
A COUPLE OTHER ANECDOTALS I GOT A CALL FROM DURING THOSE TWO YEARS WHEN THINGS WERE SPIKING WITH, UH, MY SON LIVES AT HOME, I PICK UP ALL HIS EXPENSES.
HE HAS A JOB, THE JOB COVERS THE COST OF HIS CAR AND HE HAS TO GET BACK AND FORTH AND, AND HOPEFULLY AT SOME POINT HE'LL GET PROMOTED AND, AND PAY INCREASES AND, AND DO WELL FOR HIMSELF WITH THIS 35% INCREASE.
HE CAN NO LONGER AFFORD HIS CAR TO GET THE WORK.
[01:05:01]
CAR TO PAY THE TAX AND QUIT HIS JOB.THAT SHOULD NEVER BE THE CASE WHERE SOMEONE QUITS A JOB BECAUSE WE'VE OVERTAXED HIS VEHICLE TO GET TO.
THAT'S ANOTHER ANECDOTAL, ANOTHER ANECDOTAL PERSON WHO RELATED IT TO ME IS NOT HERE RIGHT NOW, BUT, UM, WALKING DOOR, KNOCKING, YOU KNOW, SAY HI TO CONSTITUENTS, COME TO ONE, GOT A HALF MILLION DOLLAR RV OR A MILLION DOLLAR RV IN THE DRIVEWAY ALONG WITH SEVERAL OTHER VEHICLES AND IT SAYS THAT'S IT.
45% INCREASE ON THIS TAX ON A MILLION DOLLAR VEHICLE.
YOU WANT ANOTHER 10 OR 20 GRAND IN TAXES FOR ME AND THAT'S IT.
I'M OUTTA HERE ANECDOTAL, DUNNO IF IT'S GONNA MOVE OR NOT.
YOU KNOW, SOMETIMES PEOPLE JUST BLUSTER, BUT THAT'S THE SENTIMENT THAT'S OUT THERE.
I'M UNDER CITIZENS IS YOU'RE KILLING ME HERE AND I'M GONNA MAKE DECISIONS BASED ON THAT.
IF YOU RELIEVE THAT PRESSURE IN A DYNAMIC ENVIRONMENT, DOES I TAKE SOME OF THAT PRESSURE OFF? ARE THERE INDIRECT OR KNOCKOFF BENEFITS OR COST TO DOING SOMETHING LIKE THIS? I THINK IT'S IMPORTANT THAT GOVERNMENTS GENERALLY TAKE A MORE DYNAMIC APPROACH THAN A STATIC APPROACH.
SAY X RATE VEHICLES X DOLLARS AND, AND NOT TAKE INTO ACCOUNT, YOU KNOW, THE COMPETITIVE NATURE OF THE WHOLE THING.
SO ANYWAY, THAT'S JUST MY THOUGHT DYNAMIC AND UH, UH, MARKETPLACE.
AND I DO, I DO AGREE WITH YOU THAT, UH, TIGHTER, TIGHTER YOUR BUDGET, EVERY DOLLAR MATTERS.
AND UNFORTUNATELY INFLATION IS JUST PUNISHING THOSE WITH REALLY TIGHT BUDGETS.
THE WORST CAUSE THINGS ON THE ASSET SIDE.
THE WAGES AREN'T GOING UP REALLY AS MUCH AS THE PRICE OF, AND SO ANYTHING THAT THIS COUNTY CAN DO TO HELP BRING THAT BUDGET BACK IN THE ALIGNMENT, UM, AND NOT HAVE TO SELL THE CAR, PAY THE TAX, DID THAT TRIGGER SOME MORE THINKING? AND IT DID.
UM, EXOGENOUS FACTORS ARE EXOGENOUS FACTOR CAUSE WE CANNOT HANDLE THEM.
FEDERAL GOVERNMENT'S MISHANDLING OF THEIR BUDGETS AND INFLATION OVER BUDGET OVERRUNS AND INFLATION AND ALL THAT IS NOT SOMETHING THAT NEEDS TO COME INTO THE ARGUMENT IN
WE SOLVE WHAT WE CAN SOLVE MM-HMM.
AND SO I I JUST DON'T, I WANT TO PUT THAT OUT THERE IS THE 45% INCREASE IS NOT DUE TO THE COUNTY'S FAULT THAT IS EXOGENOUS OUR TAX RATE.
SOMEBODY CAN POINT TO US AND SAY, I HATE YOU FOR THAT TAX RATE, THAT'S FINE.
WE CAN TAKE THOSE SPHERES, UH, SLINGS AND ERRORS, THAT'S TOTALLY FINE.
BUT THE, THE, THE RV GUY IS THE SITUATION WHERE I'M TRIGGERED IS MOVE IT TOCO GUESS WHAT, 45% APPRAISED VALUE INCREASE, MOVE IT TO CHESTER.
YOU, YOU BOUGHT AN ITEM THAT WHETHER IT'S IN MONTANA, CALIFORNIA, RICHMOND, OR WHEREVER, IS GOING TO HAVE GONE UP AN APPRAISED VALUE BECAUSE NOBODY, I MEAN, WHY AS A BOARD WOULD WE EVER SAY TO OUR, UH, TREASURY AND, AND THE PEOPLE WHO ARE REFLECTING THE TAXES, UH OH YEAH, JUST GO WITH YOUR OWN SYSTEM.
WE, WE ALL FUNNEL TO A COMMON SYSTEM SO THAT WE CAN SAY WE, WE'VE GOT COMMONPLACE ACROSS COUNTIES, ACROSS UM, UH, STATES AND ACROSS THE COUNTRY AND, YOU KNOW, WHO KNOWS WHAT CALIFORNIA DOES, BUT THAT'S THEIR DEAL.
UM, BUT I JUST, I'M JUST LIKE, NO, I MEAN I, IF WE TAKE THOSE ARGUMENTS, THAT'S JUST, THAT'S NOT A, THAT'S NOT REALITY.
THAT THAT IS A SITUATION THAT, YOU KNOW WHAT I FEEL FOR EVERYBODY, BUT I'M A CITIZEN IN THIS COUNTY AS WELL.
LIKE THAT, THAT THOSE, THAT'S A SITUATION WHERE WE'VE GOT COMMON GROUND WITH EVERY SINGLE CONSTITUENT ACROSS THIS COUNTY.
IT'S THE, IT'S THE TAX RATE THAT WE CAN TAKE HEAT ON IF WE, SO, YOU KNOW, IF WE WANNA HOLD IT WHERE IT IS AND WE NEED TO LEAVE THE DISCUSSION WITH THAT, IN MY OPINION IS BECAUSE IT'S THE, THE 45%.
NOBODY WANTS TO SEE THAT THAT IS NOT GUCCI COUNTY ADMINISTRATION'S FAULT AND, AND LEADERSHIP'S FAULT.
IF WE WANNA SEPARATE GOVERNMENT EMPLOYEES VERSUS ELECTED OFFICIALS.
THAT THAT IS A TOTALLY DIFFERENT ARGUMENT.
AND I'M IN, WHETHER I'M IN THE FINANCE, EVEN THOUGH I'M IN THE FINANCE SPACE, I CONSIDER MYSELF AN EDUCATOR.
WE NEED TO EDUCATE THE CITIZENS OF GLAND COUNTY THAT WE'RE MANAGING YOUR TAX DOLLARS THE BEST POSSIBLE WE CAN THAT IS NOT ON US, THAT IS
[01:10:01]
ON THIS, THIS, THIS AND THIS.AND WORK WITH US TO FIND SOLUTIONS THAT KEEP US WITH THESE SURPLUSES, KEEP UP WITH THESE GOOD THINGS THAT WE PROVIDE ON THE YEAR TO YEAR BASIS.
I JUST, I DON'T, I DON'T WANT TO GET BOGGED DOWN BY STUFF LIKE THAT THAT, THAT I, I CONSIDERED A HUNDRED PERCENT EXO.
UM, YEAH, I DON'T THINK ESTABLISHING, PLAYING ACCOMPLISHES ANYTHING IN TERMS OF, YOU KNOW, POINTING FINGERS THAT JUST, THAT'S KIND OF A WASTE OF TIME.
UH, WHEN I DO TALK TO CITIZENS, UH, I DON'T KNOW HOW MANY TIMES JUST TO COME UP WHERE THEY SAY, YOU RAISED MY CAR TAX AND I SAY NO, I LEFT TO RATE ALONE.
AND THEY SAID, WELL MY BILL'S HIGHER.
LIKE, IF I DIDN'T RAISE YOUR FEE, LIKE DON'T CARE.
YOU KNOW, IT'S ONE OF THOSE, YOU RAISE MY TAXES 45%.
I DON'T CARE WHAT YOU DEAL WITH THE RATE, UH, I HAVE TO PAY, I HAVE TO CUT A BIGGER CHECK AT THE END OF THE DAY, THE DAY I RUN MY KITCHEN TABLE.
SO THOSE THINGS JUST ARE REAL PEOPLE SITTING AROUND THE KITCHEN TABLE TRYING TO MAKE HIM SPEED AT A BUDGET.
AND IF IT'S BECAUSE WE JACKED THEIR TAX 45% ONE YEAR, THAT SHOULD MAYBE A CONCERN.
UH, THE RATE CAN STAY THE SAME MOVE AROUND.
BUT IF THAT TAX BILL IS THAT MUCH HIGHER, IT'S, IT'S REAL.
UM, ANYWAY, I HOPE EVERYBODY'S FINE.
THIS TO BE A SAFE SPACE WHERE WE CAN DISAGREE AND RAISE DIFFERENT ISSUES WITHOUT, YOU KNOW, CAUSE THIS IS WHAT MEANT TO BE AN OPEN DISCUSSION WHERE EVERYONE FEELS COMFORTABLE SHARING.
WE REALLY DO WANNA REACH CONSENSUS AROUND WHAT EVERYBODY'S THINKING.
WE ARE CLOSING IT ENOUGH TOWARD THE END.
WE DIDN'T GET ALL THE WAY AROUND THE THE TABLE QUITE YET.
WE YOU WANNA, UH, YOU GOT SOMETHING I JUST WANTED TO MAKE SURE EVERYBODY REALIZES THAT WHEN WE SAY PERSONAL VEHICLES THAT GET P P T R A.
WHEN WE TALK ABOUT P P T R A VEHICLES, WE'RE NOT TALKING ABOUT MOTOR HOMES.
WE'RE NOT TALKING ABOUT TRAILERS, BOATS, BUSINESS EQUIPMENT.
WE'RE TALKING ABOUT A VEHICLE THAT'S USED FOR 50% OR LESS.
WE'RE TALKING ABOUT YOUR PERSONAL VEHICLE AND NOTHING ELSE.
SO THE TAX RATE WOULD STILL BE THE SAME FOR THAT RV OR THAT TRAILER.
AND I JUST WANT, OR IN BUSINESS VEHICLES.
AND I JUST WANNA MAKE SURE WE UNDERSTAND THAT.
SO IS THE VEHICLE YOU DRIVE TO WORK OR GO GET A GALLON OF MILL, RIGHT? TAKE YOUR KIDS TO BASEBALL, BASKETBALL, WHEREVER.
AND THEN HOW IS THE, UM, ASSESSED VALUE OF A VEHICLE DETERMINED? I MEAN, IS THAT ACROSS THE BOARD? SO IT'S A J THE COMMISSIONER OF THE REVENUE ASSOCIATION, UM, HAS AN AGREEMENT WITH JD POWER AND UM, WE USE THE CLEAN TRADE-IN, IN GOLAND THERE'S THREE VALUES.
SO TRADE IN IS KIND OF YOUR MIDDLE VALUE LOAN IS YOUR LOWER RETAIL IS OBVIOUSLY YOU'RE HIGHER.
EACH LOCALITY AROUND US DOES A DIFFERENT VALUE.
HOWEVER, THE VALUE STILL WENT UP NO MATTER WHICH CATEGORY YOU USED.
UM, AND IT'S THE JANUARY 1ST EDITION.
SO, AND THE VALUES ARE NOT A, IT'S NOT A GLAND THING, IT'S NOT A VIRGINIA THING.
YEAH, SO WE JUST, OUR ASSOCIATION CHOSE JD POWER BECAUSE KELLY, AND WE GET A LOT OF QUESTIONS IN THE OFFICE ABOUT WHY DON'T YOU USE KELLY BLUE BOOK? KELLY BLUE BOOK IS FOR THE AVERAGE PERSON.
IT'S NOT THE DEALER'S ASSOCIATION IS WHAT USES JD POWER AND THEY MONITOR THE SALES OF THE VEHICLES AND THAT'S HOW THEY GET THE VALUES.
THANK YOU FOR THAT CLARIFICATION.
THAT WAS JUST, THANK YOU FOR THAT.
AND THIS IS SOMETHING YOU COULD ACCOMPLISH IF IT WENT THAT WAY.
DID YOU WANNA SAY DITTO OR, I'M GONNA TRY SOMETHING HERE.
IT'S PROBABLY NOT GONNA WORK, BUT DON'T TRY IT ANYWAY.
UM, LET'S SAY WE HAD 13, IT'S FIVE FOR SPENDING FIVE IN CASES OF RECESSION OF RESERVES 2.8 FOR RELIEF.
I MEAN, CURRENT YEAR KNOWING IF WE HAVE 13, I THINK THAT'S TOTALLY FAIR.
KNOWING WHAT KNOW ABOUT 24, 25, 26, I DON'T KNOW.
CAUSE 26 WAS THE YEAR WHEN IT ALL FELL APART.
OTHER THOUGHTS ABOUT THAT RATIO? FIVE.
[01:15:01]
FIVE CASES OF RECESSION RESERVES.IF THERE IS A RECESSION, THEN WE DON'T NEED TO PUT THE FIVE IN TERMS OF IF THE BUDGET FLAT OUT.
CAUSE THAT'S REALLY MEANT TO PUT THERE, UH, TO KEEP THE PERCENTAGE RESERVED.
WE HAVE FIVE MORE MILLION ON TOP OF THE OTHER FIVE, IN FACT, UM, FIVE, FIVE AND 2.8 OR THREE, WHATEVER THE ROUNDING NUMBER IS.
IS THAT THE RIGHT RATIO OR SHOULDN'T
ALWAYS SOME EXCEPTIONAL INSIGHT.
I WOULD CONCUR WITH THE CHAIR ON THAT.
WELL, THAT WAS A PROPOSAL, BUT WHERE I'M TRYING TO GET TO THIS IS WHAT DO WE BRING TO THE BORDER BOARD IN TERMS OF THE DISCUSSION? HOW DO I SUMMARIZE WHAT WE'VE SAID HERE? IS THAT RATIO ABOUT WRITING AND RATIO BE A LITTLE DIFFERENT? UM, MORE RESERVES, MORE FOR SPENDING MORE FOR RELIEF.
IS THIS, I DO THINK IT COMES BACK TO THE SALARIES AND NOT ONLY, YOU KNOW, FOR, YOU KNOW, WE'VE GOT, YOU KNOW, ON THE COUNTY SIDE, FIRE RESCUE, UM, SCHOOLS THAT WE HAVE TEACHERS, BUT TO PAM'S POINT, EVEN THESE SPECIALIZED POSITIONS WITHIN A COUNTY, UM, YOU KNOW, LET'S SAY REPLACING A TRANSPORTATION DIRECTOR, REPLACING A CAFETERIA DIRECTOR, NUTRITION SERVICES DIRECTOR, AND THERE'S SUCH SPECIALIZED FIELDS AND, UM, I MEAN I HAD TO HIRE A PAYROLL ACCOUNTANT, UM, LAST AUGUST AND, BUT THE VACANCY WAS THERE FROM MAY THROUGH AUGUST 1ST.
AND LIKE PAM HAD A VERY SLIM POOL OF, YOU KNOW, PEOPLE TO CHOOSE FROM.
AND, UM, THE, THE
SO I THINK THAT PUTTING THE, YOU KNOW, UH, RESOURCES TOWARDS RETAINING AND, YOU KNOW, RECRUITING GOOD EMPLOYEES IS SO IMPORTANT.
NOT, NOT FOR JUST, YOU KNOW, SOME OF THESE BIGGER, YOU KNOW, NEEDS.
LIKE TEACHERS AND FIREFIGHTERS AND, BUT EVEN FOR, YOU KNOW, A DEPUTY CLERK, YOU KNOW, OR, OR A DEPUTY TREASURER OR, YOU KNOW, UM, JUST BEING ABLE TO HIRE PEOPLE.
SO I, I GUESS I WOULD JUST SAY AS LONG AS BILL $5 MILLION CAN HELP CONTINUE TO, YOU KNOW, ADDRESS SALARY AND BENEFIT.
SO IN TRYING TO REACH CONSENSUS AROUND HERE, I, I THINK THE EASIEST LOW-HANGING FRUIT IS SHOULD WE TAKE A HARD LOOK AT SALARIES ACROSS THE BOARD? UH, YES.
AND MR. I WOULD SAY THAT WHEN WE PRESENTED THE BUDGET ORIGINALLY WE PROPOSED 5%, 7%, AND THEN FOR ONE 13%, KNOWING AT THAT POINT IN TIME THAT THAT WAS NOT ADEQUATE TO THE ENVIRONMENT WE WERE IN, BUT IT WAS WHAT WE FELT COMFORTABLE DOING.
SO IN ADJUSTING THINGS, THE OVERALL SALARY COMPENSATION IS SOMETHING THAT STILL IS KIND OF RESIDING THAT FEBRUARY.
SO THAT IT COULD TRANSLATE INTO SOMETHING LIKE 4, 4, 2 0.8 AND TWO WITH THAT LAST PIECE, TAKE A HARD LOOK.
I MEAN WE HAD A POSITION OPEN FROM AUGUST TILL JANUARY.
UM, VERY FEW APPLICANTS AND NOT ONLY, I MEAN IT TAKES US A GOOD YEAR TO TRAIN, RIGHT? PROBABLY OVER A YEAR.
AND I'M SURE PAM'S THE SAME WAY.
I'M STILL CRAZY, RIGHT? MY PAYROLL PERSON AND WE HAVE FOUND IN OUR OFFICE, I DON'T KNOW ABOUT ANYBODY ELSE, BUT NOT ONLY IS IT THE SURROUNDING COUNTIES, IT'S OTHER DEPARTMENTS IN THIS BUILDING THAT WE LOSE EMPLOYEES TOO.
SO I MEAN, WHILE WE CAN LOOK AT OTHER COUNTIES, WE ALSO NEED TO LOOK AT WHAT A CUSTOMER SERVICE REPRESENTATIVE IN COMMUNITY DEVELOPMENT STARTS OUT VERSUS PAM AND MY DEPUTY ONE OR, UM, CSB OR ANY, ANY OF THOSE DEPARTMENTS.
BECAUSE THE PERSON I LOST, UH, LOST FOR A FEW THOUSAND DOLLARS, UM, TO ANOTHER ORGANIZATION IN GUC.
IT WASN'T ANOTHER LOCALITY AND I LOST IT WAS CSP.
I LOST A PERSON TO COMMUNITY DEVELOPMENT MAKING EIGHT, 8,000 MORE WITH NO EXPERIENCE IN COMMUNITY DEVELOPMENT.
SO IT'S, UM, UM, WE HAVE JUST A COUPLE MORE MINUTES HERE.
WE, UM, PERIODICALLY HAVE DONE WHAT THEY CALL BENCHMARKING STUDIES AND TAKE A LOOK AT EVERY POSITION AND NOW WE'RE, HOW WE STAND UP IN THE REGION AND HOW WE COMPARE COMPETITIVE, A FAIR AMOUNT OF BENCHMARK ADJUSTMENT COMPENSATION DONE.
BUT IT'S SOMETHING THAT, IT'S ALMOST DAILY.
AND, AND WE UNDERSTAND THAT, BUT IT'S, IT'S BAD.
[01:20:01]
WHAT WE LIKE, WHAT WE'RE NOT GONNA LIKE, UM, WE DON'T HAVE THE CHECKBOOK IN RECOGNIZE.SECOND THING WE PUT ON TOP OF THAT IS THAT WE WERE THE BEST RUN COUNTIES.
AND SO WHEN THE COUNTIES IN THE REGION HAVE A POSITION TO MEET THE FILL, THEY GO, WELL WHO WON THE NCAA CHAMPIONSHIP LAST YEAR? WHO'S THE, WHO'S THE, YOU KNOW, BEST RUN, LET'S GO FISH IN THAT POND, RIGHT? SO WE'RE GONNA BE A VICTIM OF, BECAUSE EVERYONE IN THIS ROOM IS DOING AN EXCELLENT JOB AT WHAT THEY DO.
AND THE COUNTY ITSELF HAS BEEN ELEVATED TO A CERTAIN LEVEL THAT WHEN SURROUNDING COUNTIES GO, WELL WE WANNA FIND SOMEBODY GOOD.
WELL, YOU KNOW, GUCCI CAN'T MATCH OUR CHECKBOOK.
LET'S JUST GO, YOU KNOW, FISH IN THAT POND.
SO FOR BETTER OR FOR WORSE, YOU KNOW, WE'RE A VICTIM OF OWN SUCCESS ON ONE LEVEL AND WE'RE A VICTIM OF HAVING A SMALLER CHECKBOOK ON THE OTHER LEVEL.
AND IT'S JUST UNFORTUNATELY THE REALITY OF THE WAY IT IS.
AND UM, BUT THANK GOODNESS WE HAVE ALL THE PEOPLE WE DO NOW WE THE BEST TEAM IN THE COUNTRY NOW STACKING UP AGAINST.
SO, UH, SO WE CAN SET US SO FAR IS A HARD BUCKET SALARY.
IF YOU GOT THAT LOUD AND CLEAR
TEACHERS MAKE LESS THAN A MILLION NOW DON'T THEY?
SO, UM, THAT DON'T BE ABLE TO PAY.
IT'S WORTH THINKING OF LOOKING AT IT.
SO THAT'S WHAT I'M HEARING SO FAR.
WE DO HAVE TO FIGURE OUT WHAT TO DO WITH THIS.
WE THOUGHT ABOUT WE JUST GIVE IT ALL BACK OR SPEND IT ALL OR DO WHATEVER AND WE SAID NO, WE'RE BETTER MAN.
SO IF WE CAN ADDRESS SALARIES, ADDRESS THE TAX BEING THE HIGHEST RATE IN THE REGION AND THE RESERVES TO MAINTAIN OUR RESERVES, BUT WE KNOW WE HAVE SOME SPENDING NEEDS, SO LET'S DEDICATE SOME MORE MONEY TO OUR SPENDING NEEDS ABOVE BLAH BEYOND, WE'RE ALREADY DEDICATED.
AND IF WE CAN DO A LITTLE BIT OF ALL OF THAT, DOES THAT TAKE US FORWARD IN THE DIRECTION? LIKE TO GO, I'M NOT TRYING TO PUT WORDS IN PEOPLE'S MOUTHS HERE, BUT MY UNVIABLE JOBS TO TRY AND DEVELOP CONSENSUS AMONG THE TEAM HERE.
I MEAN EVEN IF WE SWITCHED THINGS AROUND IN THE BUCKET AND IT DIDN'T END UP BEING 2 99, WE COULD GO UP A LITTLE BIT AND STILL BE IN THAT THIRD, FOURTH POSITION, RIGHT? MM-HMM.
IN THE REGION, YOU KNOW, STILL BE POOR, COMPETITIVE.
FIRST MOVE, LET ME JUST, UH, PAUSE BY YOU, FINISH BY THANKING EVERYBODY FOR ATTENDING TODAY.
AND AGAIN, I CAN'T REITERATE ENOUGH THAT THIS NEEDS TO BE A SAFE SPACE CAUSE WE GOTTA AIR OUR THOUGHTS.
AND MY THING IS, THE MORE BRAVE POWER YOU PULL TOGETHER, THE BETTER A DECISION THAT ANY ONE INDIVIDUAL IN THIS ROOM CAN'T MAKE AS GOOD DECISION AS EVERYBODY IN THE ROOM.
AND THAT'S WHY VIC HAS BROUGHT FORTH THIS INFORMATION FOR US TO BAT AROUND AND CHEW ON AND, AND TOSS AROUND AND EXPLORE A LITTLE BIT TO TRY AND ARRIVE AT WHAT WOULD BE A BEST DECISION, UH, AMONG MULTIPLE FOLKS.
SO THANK YOU FOR BEING HERE, PARTICIPATING.
UM, WE ALREADY HAD THE PUBLIC COMMENT CAUSE I WENT AROUND THE ROOM.
UH, THERE'S NO OTHER BUSINESS TO COME BEFORE THIS GROUP, SO I WILL ADJOURN THIS MEETING TO OUR NEXT MEETING, WHICH IS 12:30 PM ON MAY 2ND, 2023.