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Event transcript
OK, so. 00:00:04
Every year around this time, we like to connect with our clients just to kind of start the new year with with. 00:00:07
What things are you looking at as far as? 00:00:15
Projects or challenges or opportunities? 00:00:19
I've got the slide show up on my screen. We're just going to kind of go with a. 00:00:22
Really casually, I really want this to be a back and forth conversation. I know right now probably one of your concerns is. 00:00:27
Proposed legislation out there, and I will talk a little more specifically about that here in a few minutes. 00:00:35
That should be a pretty big concern. 00:00:42
There's a lot of things going on out there that will directly impact revenues for local government. 00:00:45
But beyond that? 00:00:52
And again, I will talk a little bit about that, but I just want to hear from you all like what, what do you have going on this 00:00:54
year? How can we better provide services to you? What, what are some projects you're thinking of, if any? I know there was some 00:00:59
suggestion that you might want to look at. 00:01:04
Perhaps. 00:01:10
Reducing maybe your public safety local income tax. 00:01:11
So just kind of let us know what things you're looking at for this year. 00:01:16
Well, I think. 00:01:22
You've hit on the. 00:01:24
The two main things, one is proposed legislation and the other is umm. 00:01:25
Our added revenue with the. 00:01:30
Public safety. 00:01:33
That was put in. 00:01:34
We've looked at moving. 00:01:37
Around $2,000,000 out of the general fund into that. 00:01:39
We've got some proposed holdover in case, you know, we're waiting on the commissioners to make a decision on. 00:01:45
EMS service. 00:01:52
There's a possibility we may have to have money for capital. 00:01:55
If we do a county owned and operated. 00:01:58
System and if not then. 00:02:01
We'll see. 00:02:04
You know what the what the future cost is in that area, so. 00:02:05
That's that's our main areas of concern this year. We have some. 00:02:11
Some lingering. 00:02:18
Budget concerns of. 00:02:21
Departments that. 00:02:23
May need some help like Parks Department. 00:02:26
I'm sure there's other. 00:02:31
Others along the way that. 00:02:33
But that's that's the main one that I can think of that's kind of been. 00:02:36
Held off for quite a while so. 00:02:40
OK. Well that all sounds sounds good. 00:02:46
We. We would. 00:02:50
We would like to update your comprehensive financial plan, and I think that's going to cover some of these things like #1. 00:02:52
The legislative changes, we've got a long legislative session this year. It goes through the end of April. 00:03:00
Whatever comes out of that, we would like to run that through your comprehensive financial plan to see how it's going to impact 00:03:06
you as far as. 00:03:10
As the revenues go, it's also going to help you obviously with budgeting. 00:03:14
So, you know, if we can get that updated maybe towards the end of May, that will take us right in the budget season and that will 00:03:20
help us determine as far as shifting those costs from general to public safety number one, also trying to figure out how we can 00:03:26
better help the Parks Department. 00:03:32
Uh, meet their funding requirements. 00:03:39
So, and I know I did update a couple funds for you, but again we suggest that we update all of the funds so that you can get a 00:03:42
better picture of what's happening in the county. 00:03:48
So we we would like to move forward with at least starting to update that model and then we can finish it up as the legislative 00:03:56
session then comes to a close. 00:04:00
Page, are you looking for approval to do that or? 00:04:07
Your or are you just, yes, I mean Denise is we can go ahead and send you an updated agreement, an updated scope of service, OK for 00:04:10
that. 00:04:15
Yeah, yeah. Send us that and we'll. 00:04:19
We'll get that. 00:04:22
Decided. 00:04:26
At our next meeting. 00:04:28
So just and you may already know some of this, but here's some of the legislative changes that are out there right now. Senate 00:04:32
Bill One has gone through some some pretty big changes over the last two weeks, but here's what we know right now. 00:04:38
So as far as property tax relief. 00:04:45
Cynical one is limiting the levy growth quotient so that levy growth on your maximum levy each year. Right now the limit is 0% in 00:04:48
2026, so no growth in 2026. 00:04:56
1% growth in 2027. 00:05:03
2% growth in 2028. 00:05:07
And then the years. 00:05:10
After the maximum levy growth quotient is going to be based on a formula. It's a pretty complicated formula. 00:05:12
But what we could tell right now is that probably in 2029 and going forward, we'll see levy growth between 3%. 00:05:19
And four point 3%, so not very much growth. 00:05:28
For Floyd County, just your unit. This is not county wide. This is just the Floyd County unit. 00:05:32
We're looking at a loss in revenue for you of about 469,000 and 2026. 00:05:38
Almost 900,000 in 2027. 00:05:45
And then 1.2 million in 2028. 00:05:49
So we're going to have some challenging times for for budgeting coming up here in the next couple years. 00:05:53
So I have a couple questions about that. 00:06:00
Yeah, go ahead. What? 00:06:03
What? How does that help the the individual taxpayers employed county? 00:06:04
So how that how that helps is that they're not going to see much of an increase to their property tax bill. 00:06:11
Because it's not going to say we just won't go up. 00:06:19
Then they would see an increase in their tax bill. OK, it's not going to go down. So this helps it not go up. 00:06:24
I think that's what we're going to see. Yes, absolutely. Now there's also some things happening with deductions like on your, on 00:06:32
your net assessed value. So that's going to help the taxpayer as well. 00:06:38
There's some additional deductions for over 65 and some some other deductions going on there as well. So I agree with you Denise, 00:06:45
I think it's just gonna. 00:06:50
Perhaps limit the growth on your tax bill, but not necessarily reduce it. 00:06:55
Some kind of remains seen. 00:07:02
Did you have another question, follow up question on that? Yeah. 00:07:07
So. 00:07:12
Should we be thinking about putting in a go bond here? 00:07:14
Because we know our tax growth is much. 00:07:19
It's going to be much bigger. Well, it's going to be bigger than 0 for sure, right? It's going to be much bigger than that. 00:07:25
And I know we've done this before and I think that rose off this year. 00:07:32
Yeah, sure. You're ahead of me on that. In fact, I'll just go to that. This is why Jason is on is because yes, you have. 00:07:36
A series 2022 Geo Bond that's maturing at the end of this year. 00:07:45
And I think Jason was going to kind of talk a little bit about that. So Jason, this might be a good time to talk about that. 00:07:51
Engineering stuff and if you guys remembering off but the Jason's similar here and worked with Paige and. 00:07:57
That's exactly right. We didn't notice, you know, last year that. 00:08:03
Your 2022 bonds are going to be maturing. 00:08:07
This year it'll be making your last payment, so if you do nothing. 00:08:11
That tax rate that's in place right now will fall off. 00:08:15
So I think this is what you said you've done in the past is in order to kind of keep the tax rate level. 00:08:21
I think you've done this in the past, something that you may want to consider doing again. 00:08:28
This year is issuing another bond. 00:08:32
To account. 00:08:36
For that tax rate falling off. 00:08:38
And we can do that. And you probably do this in the past and a lot of communities are doing this to help fund. 00:08:40
A lot of their capital projects. 00:08:46
So if there's any capital projects that you. 00:08:48
You know that, you know you have that you're going to have here next couple of years. 00:08:51
Umm that are maybe one time expenses. We could fund it from this bond. 00:08:55
Or if there's any capital expenses that you may would have normally included in your budget? 00:09:00
For 2026, we can take that out of your budget, like your general fund or? 00:09:06
You know, Kim Fun or whatever funds. 00:09:11
And pay for those out of this bond issue and then that will free that revenue up for to help cover operating costs. 00:09:13
That might now be more difficult to cover because of the. 00:09:21
Proposed legislation. 00:09:24
Wow, we got a lot of moving pieces here. 00:09:27
Lots of moving pieces. 00:09:30
That was the intent. Before. When that was passed, I wasn't on the council yet, but it went into effect when I came on the council 00:09:32
and it was supposed to be the agreement that the council wasn't going to get funds back from the commissioners, but they reneged 00:09:37
on that deal, so it cost us. 00:09:41
500,000 over each three years, so a million and a half dollars. So I I think kind of what Matt to understand this situation 00:09:45
because understanding we lost those revenues and the intent was passing is to help us since we're losing those revenues. 00:09:53
And that it can be rolled over into capitals, but the commissioners would offset that some some way else. But they never did it. 00:10:00
They never Matt. What he means is us and them is. 00:10:05
At the usually the commissioners pay for capital. 00:10:10
So and then we pay for operating. 00:10:13
So they got the capital go Mon money. 00:10:17
And there was some. 00:10:21
Words exchanged that they that was going to be some money given back to us, but that never. 00:10:23
Did occur. 00:10:29
And because we didn't pass a resolution, yeah, I'm still in favor of looking at this and but I think our the language or the OR 00:10:30
the way it's drawn up is going to look a lot different than it did. 00:10:35
Well, I think there's so many moving parts here that we're going to need a lot of help page. 00:10:40
Lot of help, there's so many moving parts. 00:10:44
There, there really is and. 00:10:49
Something else too is there's a House Bill 1461 has to do with Rd. funding and right now the way it's written it says that. 00:10:51
Basically, you have to adopt A real tax in order to continue to get the community crossing screen. Wow. 00:10:59
Yeah. So they're trying to push it back on you to adopt as many taxes as possible. 00:11:09
But that's something that we can help you determine how much revenue that would generate if you adopt that wheel. That's again the 00:11:15
way it's written right now. It could change, but that that would be commissioners, correct? 00:11:21
I believe it is, Commissioner, you know, Jason, is that commissioners, I think. 00:11:29
It is right? I think it is, but I just have to verify that too. But. 00:11:33
But any new toxis has to go through the camp. 00:11:38
Council doesn't it for approval, no. 00:11:41
Not all depends on how the legislation was written. 00:11:44
I'll have to look at that. I can't remember if it's council. 00:11:48
It doesn't matter, but yeah, regardless. 00:11:53
The county would have. I mean, they're gonna. 00:11:57
It I don't like this legislation, I think it's ridiculous to withhold community Crossing grant funds unless you adopt this tax. 00:12:00
However, that's that's the reality of it. 00:12:07
Alyssa, this is all bad. 00:12:11
Over the past few years, we've seen more and more. 00:12:14
State legislation and rulings that are pushing. 00:12:17
More financial burden onto the local. 00:12:26
Taxing units and this just continues. I mean, it just continues. 00:12:29
Yeah, I think. 00:12:34
I think when we've heard this from I think David Barth and, you know, other, you know not. 00:12:36
Association of counties and also you know, association of seasoned towns and I know you guys have already increased your local 00:12:41
income tax. 00:12:45
The last couple years, but. 00:12:49
I think really what legislators are are telling us. 00:12:51
Is that, hey, we've given you a tool. I'm not saying I agree with what they're saying, but I think what they're telling. 00:12:55
Is that? Hey, we've given you a tool. 00:13:01
And that's local income tax. And we've given you a ceiling of, you know, 2 1/2 percent. 00:13:04
So don't come to asking for more money until you've hit that ceiling and. 00:13:09
Because we're taking all these other, you know, cuts, you know, from here and there. 00:13:15
We've given you the tool to increase your revenue by increasing your local income tax. 00:13:19
So to your point, they're forcing you. 00:13:23
Really, to get to that math, acts of 2 1/2 percent on the expenditure rate is what they're doing, yeah. 00:13:26
CS GO for sure. 00:13:32
So that's where the big things as far as legislation is concerned. There's some other things out there. We're going to keep 00:13:37
monitoring it if we find something that. 00:13:41
We feel that would be beneficial for you to know. Absolutely. We're going to put that out there for you. And we've launched 00:13:46
something today. It should have went out in an e-mail. 00:13:51
It's a legislative kind of summary on our website. 00:13:55
I think your auditor may have gotten an e-mail about it and it is just going to try to keep up to date on the legislation so. 00:14:00
Again, we're monitoring it. We'll we'll make sure we build it in and build the information into any sort of financial analysis 00:14:08
that we do. 00:14:12
The other thing I want to talk to you about capital develop. 00:14:17
Go ahead. I'm sorry. This is Matt Millies. 00:14:20
It's a pleasure to meet you. 00:14:23
Do you guys have any sense on timing on any of that legislation? Is portions of it moving faster than others or do you guys have 00:14:25
any sense from the state what's going on for timing? 00:14:31
I don't. I'm gonna say it's not gonna be over until the last day of legislative session. Senate Bill one, which is the property 00:14:38
tax relief. I think that's moving pretty quickly. I don't know that any of it's passed yet. 00:14:45
And you just never know what these things because sometimes. 00:14:52
People try to stick things in at the very end into some of these bills. 00:14:56
So I really don't know about timing other than they've got all the way up until the end of April on some of these things, but we 00:15:00
will see some sort of property tax relief. 00:15:06
I don't know that that Senate bill once is going to change much. 00:15:11
It remains to be seen, but. 00:15:16
You know, I don't think it's going to go away. I think we're going to see some sort of property tax relief and it is going to have 00:15:19
a negative impact, unfortunately. 00:15:22
On local governments, what's much, much less impact than when it started? 00:15:26
Well, actually, yeah. 00:15:32
That is very true. That is very, very true. Like I said, the last couple of weeks there's really been a lot of changes where some 00:15:34
of it's been stripped out. 00:15:38
And it is to the better, but still, you know, not not a good impact. 00:15:42
Painting everybody here. I was just reading this morning. Capital Chronicles states that Braun is prepared to veto that bill if 00:15:49
they don't pass in its original version. 00:15:53
And that's another fight. 00:15:58
And it's an original version that is another fight. And and then I did hear that as well. 00:15:59
That'll be very interesting to see what happens. 00:16:06
If he insists that there's no, that's another fight. 00:16:12
They'll have to come back in May. Yeah, come back in May and override it is another. 00:16:17
Wow, yeah, it'll be interesting to see I. 00:16:22
Politically, I think that that'd be a mistake on this part, but. 00:16:26
I just, I don't know, it'll be interesting. Very. 00:16:32
Very interesting. 00:16:35
The other thing I want to talk to you about was the Q Capital Development Fund. I did talk to your attorney about this, and she 00:16:40
was drawing up some paperwork or something. She was going to talk to the commissioner, so I don't know. 00:16:45
If that's moving forward, you have or the commissioners have until the end of May. We talked about this yesterday, yeah. 00:16:50
We had a we had a joint meeting with, we had a joint meeting with commissioners yesterday and they. 00:16:57
They're going to take it up in their next meeting. 00:17:02
I'm sure you talked to Christy. 00:17:04
That's the commissioners, Yes, again. Yeah, yeah. 00:17:06
The commissioner's attorney, do we have to approve that rate? 00:17:09
Or is this? 00:17:14
A commissioner only. 00:17:15
So the Commissioners will. 00:17:19
Of Max. But then during budget time, the council will have to approve the rate. 00:17:22
OK, that's kind of what I thought that I couldn't remember exactly how that went. 00:17:27
And this was a phased in and had to start at half. 00:17:32
And then, yeah, it was, it was a phased in, phased in, right. So this would be the last. 00:17:35
Phase and it will generate another probably about 700,000 for you. So that's good and it can be used for pretty much any capital. 00:17:41
Expenditure that you can think of. So once you've reestablished this, you'll never have to reestablish it again unless the 00:17:48
legislation changes so. 00:17:52
That'll put you in good shape there. You won't have to mess with that right anymore. 00:17:57
So those were the main things I really wanted to talk about. Again, this was just a touch base, see how you all were doing. We've 00:18:03
got a good idea of kind of what you're planning for this year. 00:18:08
We'll send you an agreement for the. 00:18:15
Covers the financial plan update. 00:18:19
And again that will lead right into budget season that should be extremely helpful for for you all and the auditor to. 00:18:21
To prepare the budget. 00:18:30
This year I have a couple more questions I know in our talks here in the county and workshops. 00:18:32
There's been some discussion about the net neutral. 00:18:40
Tax again. 00:18:46
The getting rid of the PRT. It's PRT still going to be. 00:18:48
In existence after this is all over. 00:18:53
And then putting in jail lead and the judicial Ed. 00:18:57
I don't know if that's still on the table with everybody. 00:19:00
Or if it's not. 00:19:04
I want to bring that up. 00:19:07
I was told the PR team may look very different after. 00:19:09
This session, but I haven't got an update on that. 00:19:12
So do you know anything, Paige? 00:19:15
Yeah, I recall seeing something in there, but. 00:19:18
I think it's still going to be around. I don't think that's been eliminated. The property tax replacement credit, the local income 00:19:22
tax, property tax replacement credit. 00:19:25
I know for for all of you, we were gonna. 00:19:30
Do an analysis. As soon as we get the circuit breaker information in for 2025, we're going to do an analysis to see what it would 00:19:32
look like if we eliminated that. 00:19:36
For you. 00:19:41
But as far as I know it has not been eliminated. 00:19:44
And the current proposed legislation, but we'll keep looking at it. I know it was in a. 00:19:48
Previous version might have been in Seneca one but. 00:19:54
I I don't think it's eliminated right now at this point. 00:19:59
So Paige for me. 00:20:02
There's so many moving parts here. 00:20:04
Yes, what I think I need to see, even before we put a new comprehensive plan together, is all the options. 00:20:08
And the impact of each of those options on the revenue stream? 00:20:18
To the county, but also the impact on the. 00:20:24
Our constituents. 00:20:29
And I'm talking about CDC. I'm talking about the Gond. 00:20:31
Whether we do that or whether we don't. 00:20:37
I I'm even talking about the new fire territories and the impact that that's going to have. 00:20:39
And and and I know we. 00:20:47
I keep saying we're not, we're not responsible for that, but at the end of the day, I think we do have to approve that, right? 00:20:50
Right. 00:20:58
Yes, you yes, during budget time like if they approve this new. 00:21:00
Expanded fire territory then at budget time, yes, you will approve their budget. So I'm talking about that. That's three things. 00:21:06
And then this net neutral. 00:21:10
Situation. 00:21:16
I would like to know about. 00:21:18
That as well. 00:21:20
If that even is a possibility. And maybe you can't even do a lot of these things until the session is over, I don't know. 00:21:23
And then I would like to for us to get together and talk about all those. 00:21:30
Moving parts and decide what we want to put into a. 00:21:35
A5 year plan outlook. 00:21:41
That's the way I would like to see this go down. I don't know what other people are are thinking. 00:21:44
Honestly, at this point I would even have one more request and that is. 00:21:50
Taking my last point on my e-mail to you and that is taking the. 00:21:57
Public safety tax back from 5 down to 2.5 and putting in. 00:22:02
The jail lit and the judicial it and what the impact of that is to the county and what the impact of that is to the. 00:22:07
To the taxpayers, I mean, there are. 00:22:14
At least five different moving parts here. 00:22:17
For our taxpayers and also for county revenue streams, there's more than 5 because commissioners have decisions to make 2 that. 00:22:21
We're going to have to deal with. 00:22:30
So, umm. 00:22:31
Yeah. 00:22:33
Yeah, I think we as a council need to. 00:22:36
I mean, this estimated fund balance report we got, I mean we need something much more detailed to this. And I already look at this 00:22:39
and I've. 00:22:43
Question some of these things already. I think Denise said the Community Foundation numbers are pretty low. They're half million 00:22:47
dollar, they're about half $1,000,000 short. And who knows what the stock market is going to do in the next 5 years. But I think 00:22:53
we at least keep it flat from what we know 2020. And our forecast needs to adjust some of these things because our year in balance 00:23:00
for the general fund was half $1,000,000 better than estimated. So we need to revise these budget numbers in with that. 00:23:06
Even the. 00:23:13
The jail was was less than what the estimates were. 00:23:16
I mean, riverboat funds, we need to take that in. That's a, that's an income source. 00:23:19
I think all of this needs to come together before we can start. 00:23:24
Making any decisions, especially like. 00:23:27
I thought we were supposed to be looking at something on our next council meeting. I don't see how we can do any of this. 00:23:29
Until we really have a hand on what where we're at and what where our true. 00:23:34
Estimates are going to be. That's the other question I wanted to ask you. Is there any hurry in distributing? 00:23:39
In in moving funds around, I mean. 00:23:45
There's no reason for us to move $2,000,000 out of that. 00:23:51
Out of the general fund. 00:23:55
Next month we can wait till May and do that after we get. 00:23:57
The revised budget, right? Or there's something I'm missing? 00:24:02
I don't think there should be a hurry, in fact. 00:24:06
I would slow down a little bit because we do have that pending legislation. We don't even know what it's going to be unless you're 00:24:09
running out of money in the general. I don't think there's a hurry to do that yet. 00:24:14
I think we, I agree with all of you, we need to get a good handle on your finances and it's only, you know, the end of February 00:24:20
right now we need to get. 00:24:24
You know, umm. 00:24:29
A really good handle on your cash flows, your finances, how you ended 2024. 00:24:31
We haven't really dug into that yet. 00:24:36
I think some of these things though, these options, we can start working on those individually and say, OK, here's what the fire 00:24:39
territory does to you, here's CCD phone, here's what general obligation bond will. 00:24:46
Will do for you and your constituents. Like some of these little pieces. I think we can do those individually as we wait to see 00:24:52
what happens in the legislative session. 00:24:57
So I don't think you should be in a hurry. We are helping some other counties and municipalities and we are kind of. 00:25:02
We're building the model, but we're kind of taking a slowdown approach because we need to see what comes out of the legislative 00:25:09
session because that could really. 00:25:13
Make some big changes and I don't we don't want to waste a whole bunch of time trying to finalize cash flows when. 00:25:18
There's still a bunch of moving parts. Yeah. So we, we can work on these little, we can work on these little buckets of items, you 00:25:25
know, to see how they impact individually and then we can roll those into the financial plan as we get additional information. 00:25:32
Matt, did you have something? 00:25:42
No, I was just gonna reiterate. I mean, just from my perspective, I feel like we have some fundamental. 00:25:43
Things wrong. 00:25:50
In our county finances and I really want to see us get those corrected. I understand that rushing to do that but. 00:25:51
You know some of our operating at, you know. 00:25:58
A million and a half plus. 00:26:02
Negative in our general fund, I mean. 00:26:04
We're not. We're not a million and a half. 00:26:07
Negative in our general plan. 00:26:09
Or not. Can we take a look at those on the screen page, page. Yeah, let me see if I can pull those up. We have $4 million at the 00:26:11
end of the year. I'm talking about where we came in last year, but. 00:26:18
I know that the number was the the. 00:26:25
What was projected right, but we still overspent by a million and 1/2, right. 00:26:27
No, no, we didn't. We didn't even flat, but still. 00:26:32
We didn't even spend our whole budget last year. 00:26:37
Go ahead. No. 00:26:39
No, we did not. 00:26:42
I'm pretty sure. 00:26:44
I wish the auditor. 00:26:45
We're on. 00:26:48
OK, I can. You know what I think I can pull a spreadsheet up and tell you. 00:26:49
But I'm pretty sure we did not. 00:26:54
Work like so you have a quick projection there. 00:26:58
Here's the general funds. 00:27:03
It's on 2 pages. 00:27:06
OK, so here's 2024 you actually. 00:27:09
Added to your cash reserve in 2024 by 338,000 so you didn't spend the whole budget that you had budgeted. 00:27:12
You ended with a $4 million. 00:27:20
Cash balance at a 20% cash reserve, that's pretty good. And, and, and Matt, let me explain a little bit of that. I think I can 00:27:23
explain the biggest chunk of that was in our. 00:27:28
Our health. 00:27:34
Care Fund or. 00:27:36
Our medical fund. 00:27:38
We went you SO two years ago. 00:27:40
We started self funding. 00:27:42
And it has saved us a tremendous amount of money. 00:27:45
And so the biggest piece of that, and not all of it. 00:27:49
But the biggest piece of that is, is that. 00:27:53
Matt, maybe what you're thinking is what we know what's ahead this year is the EMS funding is almost 1.4 million now that's a new 00:27:57
expense we didn't have last year's refunded. 00:28:02
Partially through the year and we funded it through other, you know, through some money out of Community Foundation and some other 00:28:08
funds we have. But this year, now it's got to come somewhere else. And maybe that's what you're thinking, right? We're just now 00:28:12
experiencing that this year. 00:28:16
And we did need to pass a tax to cover 1.4 million, but we didn't need to pass a tax for 6,000,006 and a half million. 00:28:20
I don't know why we did that, to be quite honest. 00:28:29
But umm. 00:28:32
Yeah, there's that's where we're at. 00:28:34
Well, and I guess I going back to my original point. 00:28:37
I just I feel like. 00:28:40
From all of my experiences, I want to be a little more proactive about. 00:28:42
Going at these things rather than reactive. 00:28:47
And, and I'll just tell you before I got on the council. 00:28:50
We weren't even doing five year projections, we were just going budget year to budget year. 00:28:56
And it's in the last six to eight years. 00:29:01
Six years, I'd say. 00:29:04
That about right stands that we have actually tried to be proactive and actually put plans together where we could anticipate. 00:29:06
What our expenses are? 00:29:14
Out into a five year projection. So I feel like we really have done taken some major steps forward. 00:29:16
And being proactive in the last five years. 00:29:25
And putting some new revenue streams in place, we put the judicial. 00:29:30
Stream in place to help our. 00:29:35
Who were falling short? 00:29:38
We put the jail let in place. 00:29:40
Again, because we didn't have enough money. 00:29:43
To sustain all of the expenses of running a jail. 00:29:46
And so we have been very proactive. 00:29:52
In not only projecting. 00:29:55
And but in anticipating. 00:29:58
Revenue shortfalls, but also in putting those revenue shortfalls in putting those new revenue streams in place to to shore us up. 00:30:01
So. 00:30:12
I completely agree with you. We need to continue to do that thing. 00:30:15
But let's I mean. 00:30:20
We are flat this this. 00:30:22
Ending balance does have rainy day. 00:30:25
No, this isn't a rainy day. This isn't a rainy day not included in this one. So look at the no, this is just the general look at 00:30:29
the projections going out. 00:30:33
27 shows us. 00:30:38
Spending into cash 28 and 29. But it's wrong because the there's another half, $1,000,000 each year. 00:30:40
That is not in this projection that needs to be. So it's not until we get to the end of this five year plan period where we're 00:30:49
actually eating into our cash. 00:30:54
Even with these projections now? Are these projections correct? 00:30:58
I do think we need to shore up some things. 00:31:03
But just given that. 00:31:05
We are not sure. 00:31:09
Where's the extra half a million that you just referenced? Well, the Community Foundation spend rate she's got in here at 3.5. 00:31:11
Yep, we already got a an e-mail from Linda, from Linda Speed from the Community Camp Foundation giving us the actual dollars that 00:31:18
we will receive. 00:31:24
Which are going to be 3.9. 00:31:31
I've got it in this e-mail I sent out. 00:31:34
So. 00:31:37
It's it's almost a half $1,000,000 short and that is a half $1,000,000 for each year if you hold that flat. 00:31:39
Now we don't know what the stock market is going to do. Do you want me to tell you? 00:31:46
Yeah, I'd love to know 'cause I could use that information. 00:31:49
I don't know. That one doesn't even close. The riverboat funding wasn't it that's that's over a $200,000 net. 00:31:54
Doesn't include this adjustment. We're talking for the employee benefits to healthcare. It doesn't it's the expenses are. 00:32:01
Too high right now in this forecast and so once that's revised rainy day. So it really alters this dramatically. 00:32:08
But it does that. There are some other things that I feel like need to be included in here, for instance. 00:32:14
We need to pay the interest on the new ban that we agreed to for lifetime. That needs to be in here. If it's going to come out of 00:32:21
this, I sincerely think it needs to come out of the edit fund because that's where it belongs. 00:32:26
But we need probably need to even manipulate manipulate. That's not a good. 00:32:33
Working. That's a fun word. 00:32:38
It is. 00:32:39
Some of the numbers and because there's some operating expenses in the edit fund that I think we should take and absorb back into 00:32:42
the operating expenses. 00:32:47
They were moved out at periods. 00:32:52
Over the last five years, do you have a page in the your CFP that has like all the funds listed on one page then kind of like as a 00:32:54
total? 00:32:58
In the older CF, yes. In the previous CFP I don't have a pool. 00:33:03
Yeah. 00:33:08
Yeah, we had a page where we tried to summarize all that because. 00:33:09
These funds are kind of interconnected well and even when even since I've been on the council. 00:33:13
Which is now going on 8 years. It's hard to believe but. 00:33:20
The general fund used to have nearly all the operating costs for the county in the general fund. Now those operating costs are 00:33:24
spread out amongst 3, amongst 4, at least 4. 00:33:30
Different. 00:33:37
Different funds. 00:33:40
And it's it's. 00:33:42
We can't just look at the general fund anymore, we've got to be looking at. 00:33:44
The jail lit fund, we've got to be looking at the traditional lit fund. 00:33:49
It's those those those operating expenses have been. 00:33:54
Dispersed. 00:34:00
Into other accounts. Into other funds. 00:34:01
And I don't think it's fair to just look at the general fund anymore. 00:34:05
Paige, please. 00:34:10
You know, pipe in. 00:34:11
And I completely agree. Yeah, I completely agree with that. 00:34:13
Yeah. 00:34:19
Funds gonna be short. 00:34:20
We know that's short. Yeah, it's short. And so is the edit fund an edit short? Yep. 00:34:22
So I think we have a lot of work to do here. 00:34:31
In the next few months. 00:34:34
Trying to figure out. 00:34:36
Give you some good go forward assumptions. 00:34:37
To go on and then let you produce that. 00:34:41
That. 00:34:46
Yeah, OK. 00:34:49
All right. Well, we will send over scope of service, just an updated scope of service and then we can get started on working on 00:34:54
these, the impacts of some of these revenue options that you have. 00:35:00
And I'd like to see all of them brought together so that we understand if we do. 00:35:07
You know if we do. 00:35:14
A&B This is the impact if we do A and C if we do AB and C. 00:35:16
You know. 00:35:21
Yeah, you know what I'm saying to you? 00:35:23
We may have to have you here on in in our room at some point with the big white board and just go through all that. 00:35:25
OK. 00:35:33
Sure. 00:35:34
Anybody have anything else? Any other questions? Jason, do you have any other comments? 00:35:38
I guess if you are thinking about, you know, potentially doing a bond issue. 00:35:42
You know, I guess kind of keep. 00:35:48
That in the back of your mind, as far as what? 00:35:50
Capital projects that you might want to fund. 00:35:53
And I think. 00:35:56
What might be helpful as? 00:35:58
We determined, you know, all the new legislation that's going to, you know, come. 00:36:00
Into fruition. Once you figure out that impact, if you're looking at the CCD fund, you know all these other things that you do 00:36:05
have control over. 00:36:09
You know, once we kind of get the, you know, when the dust settles and this is the impact the taxpayers. 00:36:13
Then we can look at OK, if we, if you want us to, we can look at. 00:36:18
And if you have the need to issue a bond, we can also add that on top of. 00:36:22
The overall impact. 00:36:26
If you want us to. 00:36:28
I agree And and is our do we looking at any timetables that are going to push us? 00:36:30
Are most of those towards the end of the year? 00:36:38
As far As for a bond issue, for a bond issue to get the tax rate in place for next year in 2026. 00:36:42
We have to close on the bonds by the end of the year. 00:36:51
So December 31. 00:36:54
But I mean. 00:36:56
As you know, the bond process takes, you know, 3-4 months. 00:36:57
So that's fall. 00:37:00
For local income tax, as you know, if you want to make a change there, it's by October 31st, October 31st, OK. We have a plethora 00:37:02
of capital projects, so that won't be an issue. Not an issue at all. Maybe deciding on one or yeah. 00:37:10
So and I will tell you your tax rate. 00:37:18
I looked while we were on the call and your tax rates like under a penny. 00:37:22
Just because when you issue those tax rates a few years ago, your tax base has been growing. 00:37:26
And your annual payments been roughly that 500,000 every year, so as your tax base grows. 00:37:30
That tax rate that you originally implemented a couple of years ago is probably, you know, a penny pay and a half, 2 pennies. 00:37:35
And that's it's a decrease to less than opinion because your tax base has grown. 00:37:42
So I bring that up is because tax rates or tax bases have grown so much the last 2-3 years. 00:37:45
That it's hard to. 00:37:53
Generate the same amount of bonds and keep the tax rate level because your tax rates decrease somewhat from what it was originally 00:37:57
when you did the bonds. 00:38:00
So we can talk more about that, but. 00:38:04
I just did want to bring that up that your tax rates not very much this year. 00:38:07
But that's good. I mean, for for residents, you know, we can do a calculation that says OK, because of all these changes that the 00:38:13
legislators made. 00:38:17
Homeowners might see a net decrease in tax rate next year. 00:38:21
So if you were to increase the. 00:38:25
Debt service tax rate, they may not really see the impact because of all the. 00:38:26
Which which is what I would love to be able to say. It's what I was getting at throughout this whole conversation. 00:38:30
Of having all the options and then understanding. 00:38:38
What the impacts are, yeah. 00:38:41
It yeah, if we can just say to our taxpayers, yeah, they've pushed it all down to the local level. 00:38:43
But we're keeping your tax rate flat. 00:38:50
So yeah, those you, you, you're right on a target for. 00:38:54
What I think we need to. 00:39:00
To go with a message to our constituents. 00:39:02
Yeah. 00:39:07
All right, well, I'll be looking for. 00:39:09
The e-mail. 00:39:11
And we'll get that out, OK. 00:39:12
Work on getting that approved and back to you and. 00:39:15
We'll go from there, so. 00:39:19
Everybody keeps their calendars clear for. 00:39:20
July and August. 00:39:23
Maybe. Maybe June. 00:39:25
Will be a lot to go over and say June, July, Yeah, there's gonna be a. 00:39:28
A lot of information to dice up and a lot of decisions to be made so. 00:39:34
Can we do it in my backyard? 00:39:37
All right. Thank you. 00:39:41
Thank you very much. 00:39:44
Aye, bye, bye. 00:39:46
Is everybody OK scrapping from the agenda the the movement? 00:39:56
I do think we need to appropriate the money. 00:40:01
OK. 00:40:05
I do think we need to appropriate the money that we're spending. 00:40:06
For the EMS contracts and it's going to be in the fund that it's in, I think. 00:40:11
OK. So are you talking about the public safety? 00:40:17
Yes, that we're going to scrap removing the money into it right now. Well, now we're talking about do we want to? 00:40:21
Move the EMS contract there because we know that's going to be there. 00:40:27
So. 00:40:31
And I don't want to take a vote here, but. 00:40:33
Is that the direction we're looking at is holding off on the big movement only moving the contract contractual? 00:40:37
But we're not moving that money, we're leaving it in the public safety. 00:40:42
We're just creating. 00:40:47
Are we creating a new fund for that or we is it going to stay? 00:40:50
Oh, OK, it's a new fund. OK, OK, I. 00:40:55
I guess I'm missing. 00:40:58
I had to send the revised ad. 00:41:00
I'm not sure if they'll let they'll. 00:41:03
It might be. It might make it into the advertisement or. 00:41:04
The breakdown we had before. 00:41:08
That if those numbers are going to change then. 00:41:10
As long as we have enough money to appropriate. 00:41:14
If we have to do it in April, if we have to do it in April, we'll do it in April. Just look into it and we'll. 00:41:18
But we, yeah, well, I just have the brakes on the on the big movements just yeah, I totally agree. I mean, we've got an EMS 00:41:22
contract. It's got to be paid this year. It's already being paid. It's just not appropriated. 00:41:29
And I really think it should be. 00:41:36
Yeah, it's being paid. 00:41:39
Oh, it's definitely been, yeah. 00:41:41
Sure it would fund. It's being paid out. Yeah. I don't know where you're not. 00:41:44
OK. 00:41:55
Very well. 00:41:56
All right. 00:41:59
Good meeting. 00:42:01
That's why that's right. 00:42:04
Absolutely. 00:42:05
We are done. 00:42:06
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Transcript

Event transcript
OK, so. 00:00:04
Every year around this time, we like to connect with our clients just to kind of start the new year with with. 00:00:07
What things are you looking at as far as? 00:00:15
Projects or challenges or opportunities? 00:00:19
I've got the slide show up on my screen. We're just going to kind of go with a. 00:00:22
Really casually, I really want this to be a back and forth conversation. I know right now probably one of your concerns is. 00:00:27
Proposed legislation out there, and I will talk a little more specifically about that here in a few minutes. 00:00:35
That should be a pretty big concern. 00:00:42
There's a lot of things going on out there that will directly impact revenues for local government. 00:00:45
But beyond that? 00:00:52
And again, I will talk a little bit about that, but I just want to hear from you all like what, what do you have going on this 00:00:54
year? How can we better provide services to you? What, what are some projects you're thinking of, if any? I know there was some 00:00:59
suggestion that you might want to look at. 00:01:04
Perhaps. 00:01:10
Reducing maybe your public safety local income tax. 00:01:11
So just kind of let us know what things you're looking at for this year. 00:01:16
Well, I think. 00:01:22
You've hit on the. 00:01:24
The two main things, one is proposed legislation and the other is umm. 00:01:25
Our added revenue with the. 00:01:30
Public safety. 00:01:33
That was put in. 00:01:34
We've looked at moving. 00:01:37
Around $2,000,000 out of the general fund into that. 00:01:39
We've got some proposed holdover in case, you know, we're waiting on the commissioners to make a decision on. 00:01:45
EMS service. 00:01:52
There's a possibility we may have to have money for capital. 00:01:55
If we do a county owned and operated. 00:01:58
System and if not then. 00:02:01
We'll see. 00:02:04
You know what the what the future cost is in that area, so. 00:02:05
That's that's our main areas of concern this year. We have some. 00:02:11
Some lingering. 00:02:18
Budget concerns of. 00:02:21
Departments that. 00:02:23
May need some help like Parks Department. 00:02:26
I'm sure there's other. 00:02:31
Others along the way that. 00:02:33
But that's that's the main one that I can think of that's kind of been. 00:02:36
Held off for quite a while so. 00:02:40
OK. Well that all sounds sounds good. 00:02:46
We. We would. 00:02:50
We would like to update your comprehensive financial plan, and I think that's going to cover some of these things like #1. 00:02:52
The legislative changes, we've got a long legislative session this year. It goes through the end of April. 00:03:00
Whatever comes out of that, we would like to run that through your comprehensive financial plan to see how it's going to impact 00:03:06
you as far as. 00:03:10
As the revenues go, it's also going to help you obviously with budgeting. 00:03:14
So, you know, if we can get that updated maybe towards the end of May, that will take us right in the budget season and that will 00:03:20
help us determine as far as shifting those costs from general to public safety number one, also trying to figure out how we can 00:03:26
better help the Parks Department. 00:03:32
Uh, meet their funding requirements. 00:03:39
So, and I know I did update a couple funds for you, but again we suggest that we update all of the funds so that you can get a 00:03:42
better picture of what's happening in the county. 00:03:48
So we we would like to move forward with at least starting to update that model and then we can finish it up as the legislative 00:03:56
session then comes to a close. 00:04:00
Page, are you looking for approval to do that or? 00:04:07
Your or are you just, yes, I mean Denise is we can go ahead and send you an updated agreement, an updated scope of service, OK for 00:04:10
that. 00:04:15
Yeah, yeah. Send us that and we'll. 00:04:19
We'll get that. 00:04:22
Decided. 00:04:26
At our next meeting. 00:04:28
So just and you may already know some of this, but here's some of the legislative changes that are out there right now. Senate 00:04:32
Bill One has gone through some some pretty big changes over the last two weeks, but here's what we know right now. 00:04:38
So as far as property tax relief. 00:04:45
Cynical one is limiting the levy growth quotient so that levy growth on your maximum levy each year. Right now the limit is 0% in 00:04:48
2026, so no growth in 2026. 00:04:56
1% growth in 2027. 00:05:03
2% growth in 2028. 00:05:07
And then the years. 00:05:10
After the maximum levy growth quotient is going to be based on a formula. It's a pretty complicated formula. 00:05:12
But what we could tell right now is that probably in 2029 and going forward, we'll see levy growth between 3%. 00:05:19
And four point 3%, so not very much growth. 00:05:28
For Floyd County, just your unit. This is not county wide. This is just the Floyd County unit. 00:05:32
We're looking at a loss in revenue for you of about 469,000 and 2026. 00:05:38
Almost 900,000 in 2027. 00:05:45
And then 1.2 million in 2028. 00:05:49
So we're going to have some challenging times for for budgeting coming up here in the next couple years. 00:05:53
So I have a couple questions about that. 00:06:00
Yeah, go ahead. What? 00:06:03
What? How does that help the the individual taxpayers employed county? 00:06:04
So how that how that helps is that they're not going to see much of an increase to their property tax bill. 00:06:11
Because it's not going to say we just won't go up. 00:06:19
Then they would see an increase in their tax bill. OK, it's not going to go down. So this helps it not go up. 00:06:24
I think that's what we're going to see. Yes, absolutely. Now there's also some things happening with deductions like on your, on 00:06:32
your net assessed value. So that's going to help the taxpayer as well. 00:06:38
There's some additional deductions for over 65 and some some other deductions going on there as well. So I agree with you Denise, 00:06:45
I think it's just gonna. 00:06:50
Perhaps limit the growth on your tax bill, but not necessarily reduce it. 00:06:55
Some kind of remains seen. 00:07:02
Did you have another question, follow up question on that? Yeah. 00:07:07
So. 00:07:12
Should we be thinking about putting in a go bond here? 00:07:14
Because we know our tax growth is much. 00:07:19
It's going to be much bigger. Well, it's going to be bigger than 0 for sure, right? It's going to be much bigger than that. 00:07:25
And I know we've done this before and I think that rose off this year. 00:07:32
Yeah, sure. You're ahead of me on that. In fact, I'll just go to that. This is why Jason is on is because yes, you have. 00:07:36
A series 2022 Geo Bond that's maturing at the end of this year. 00:07:45
And I think Jason was going to kind of talk a little bit about that. So Jason, this might be a good time to talk about that. 00:07:51
Engineering stuff and if you guys remembering off but the Jason's similar here and worked with Paige and. 00:07:57
That's exactly right. We didn't notice, you know, last year that. 00:08:03
Your 2022 bonds are going to be maturing. 00:08:07
This year it'll be making your last payment, so if you do nothing. 00:08:11
That tax rate that's in place right now will fall off. 00:08:15
So I think this is what you said you've done in the past is in order to kind of keep the tax rate level. 00:08:21
I think you've done this in the past, something that you may want to consider doing again. 00:08:28
This year is issuing another bond. 00:08:32
To account. 00:08:36
For that tax rate falling off. 00:08:38
And we can do that. And you probably do this in the past and a lot of communities are doing this to help fund. 00:08:40
A lot of their capital projects. 00:08:46
So if there's any capital projects that you. 00:08:48
You know that, you know you have that you're going to have here next couple of years. 00:08:51
Umm that are maybe one time expenses. We could fund it from this bond. 00:08:55
Or if there's any capital expenses that you may would have normally included in your budget? 00:09:00
For 2026, we can take that out of your budget, like your general fund or? 00:09:06
You know, Kim Fun or whatever funds. 00:09:11
And pay for those out of this bond issue and then that will free that revenue up for to help cover operating costs. 00:09:13
That might now be more difficult to cover because of the. 00:09:21
Proposed legislation. 00:09:24
Wow, we got a lot of moving pieces here. 00:09:27
Lots of moving pieces. 00:09:30
That was the intent. Before. When that was passed, I wasn't on the council yet, but it went into effect when I came on the council 00:09:32
and it was supposed to be the agreement that the council wasn't going to get funds back from the commissioners, but they reneged 00:09:37
on that deal, so it cost us. 00:09:41
500,000 over each three years, so a million and a half dollars. So I I think kind of what Matt to understand this situation 00:09:45
because understanding we lost those revenues and the intent was passing is to help us since we're losing those revenues. 00:09:53
And that it can be rolled over into capitals, but the commissioners would offset that some some way else. But they never did it. 00:10:00
They never Matt. What he means is us and them is. 00:10:05
At the usually the commissioners pay for capital. 00:10:10
So and then we pay for operating. 00:10:13
So they got the capital go Mon money. 00:10:17
And there was some. 00:10:21
Words exchanged that they that was going to be some money given back to us, but that never. 00:10:23
Did occur. 00:10:29
And because we didn't pass a resolution, yeah, I'm still in favor of looking at this and but I think our the language or the OR 00:10:30
the way it's drawn up is going to look a lot different than it did. 00:10:35
Well, I think there's so many moving parts here that we're going to need a lot of help page. 00:10:40
Lot of help, there's so many moving parts. 00:10:44
There, there really is and. 00:10:49
Something else too is there's a House Bill 1461 has to do with Rd. funding and right now the way it's written it says that. 00:10:51
Basically, you have to adopt A real tax in order to continue to get the community crossing screen. Wow. 00:10:59
Yeah. So they're trying to push it back on you to adopt as many taxes as possible. 00:11:09
But that's something that we can help you determine how much revenue that would generate if you adopt that wheel. That's again the 00:11:15
way it's written right now. It could change, but that that would be commissioners, correct? 00:11:21
I believe it is, Commissioner, you know, Jason, is that commissioners, I think. 00:11:29
It is right? I think it is, but I just have to verify that too. But. 00:11:33
But any new toxis has to go through the camp. 00:11:38
Council doesn't it for approval, no. 00:11:41
Not all depends on how the legislation was written. 00:11:44
I'll have to look at that. I can't remember if it's council. 00:11:48
It doesn't matter, but yeah, regardless. 00:11:53
The county would have. I mean, they're gonna. 00:11:57
It I don't like this legislation, I think it's ridiculous to withhold community Crossing grant funds unless you adopt this tax. 00:12:00
However, that's that's the reality of it. 00:12:07
Alyssa, this is all bad. 00:12:11
Over the past few years, we've seen more and more. 00:12:14
State legislation and rulings that are pushing. 00:12:17
More financial burden onto the local. 00:12:26
Taxing units and this just continues. I mean, it just continues. 00:12:29
Yeah, I think. 00:12:34
I think when we've heard this from I think David Barth and, you know, other, you know not. 00:12:36
Association of counties and also you know, association of seasoned towns and I know you guys have already increased your local 00:12:41
income tax. 00:12:45
The last couple years, but. 00:12:49
I think really what legislators are are telling us. 00:12:51
Is that, hey, we've given you a tool. I'm not saying I agree with what they're saying, but I think what they're telling. 00:12:55
Is that? Hey, we've given you a tool. 00:13:01
And that's local income tax. And we've given you a ceiling of, you know, 2 1/2 percent. 00:13:04
So don't come to asking for more money until you've hit that ceiling and. 00:13:09
Because we're taking all these other, you know, cuts, you know, from here and there. 00:13:15
We've given you the tool to increase your revenue by increasing your local income tax. 00:13:19
So to your point, they're forcing you. 00:13:23
Really, to get to that math, acts of 2 1/2 percent on the expenditure rate is what they're doing, yeah. 00:13:26
CS GO for sure. 00:13:32
So that's where the big things as far as legislation is concerned. There's some other things out there. We're going to keep 00:13:37
monitoring it if we find something that. 00:13:41
We feel that would be beneficial for you to know. Absolutely. We're going to put that out there for you. And we've launched 00:13:46
something today. It should have went out in an e-mail. 00:13:51
It's a legislative kind of summary on our website. 00:13:55
I think your auditor may have gotten an e-mail about it and it is just going to try to keep up to date on the legislation so. 00:14:00
Again, we're monitoring it. We'll we'll make sure we build it in and build the information into any sort of financial analysis 00:14:08
that we do. 00:14:12
The other thing I want to talk to you about capital develop. 00:14:17
Go ahead. I'm sorry. This is Matt Millies. 00:14:20
It's a pleasure to meet you. 00:14:23
Do you guys have any sense on timing on any of that legislation? Is portions of it moving faster than others or do you guys have 00:14:25
any sense from the state what's going on for timing? 00:14:31
I don't. I'm gonna say it's not gonna be over until the last day of legislative session. Senate Bill one, which is the property 00:14:38
tax relief. I think that's moving pretty quickly. I don't know that any of it's passed yet. 00:14:45
And you just never know what these things because sometimes. 00:14:52
People try to stick things in at the very end into some of these bills. 00:14:56
So I really don't know about timing other than they've got all the way up until the end of April on some of these things, but we 00:15:00
will see some sort of property tax relief. 00:15:06
I don't know that that Senate bill once is going to change much. 00:15:11
It remains to be seen, but. 00:15:16
You know, I don't think it's going to go away. I think we're going to see some sort of property tax relief and it is going to have 00:15:19
a negative impact, unfortunately. 00:15:22
On local governments, what's much, much less impact than when it started? 00:15:26
Well, actually, yeah. 00:15:32
That is very true. That is very, very true. Like I said, the last couple of weeks there's really been a lot of changes where some 00:15:34
of it's been stripped out. 00:15:38
And it is to the better, but still, you know, not not a good impact. 00:15:42
Painting everybody here. I was just reading this morning. Capital Chronicles states that Braun is prepared to veto that bill if 00:15:49
they don't pass in its original version. 00:15:53
And that's another fight. 00:15:58
And it's an original version that is another fight. And and then I did hear that as well. 00:15:59
That'll be very interesting to see what happens. 00:16:06
If he insists that there's no, that's another fight. 00:16:12
They'll have to come back in May. Yeah, come back in May and override it is another. 00:16:17
Wow, yeah, it'll be interesting to see I. 00:16:22
Politically, I think that that'd be a mistake on this part, but. 00:16:26
I just, I don't know, it'll be interesting. Very. 00:16:32
Very interesting. 00:16:35
The other thing I want to talk to you about was the Q Capital Development Fund. I did talk to your attorney about this, and she 00:16:40
was drawing up some paperwork or something. She was going to talk to the commissioner, so I don't know. 00:16:45
If that's moving forward, you have or the commissioners have until the end of May. We talked about this yesterday, yeah. 00:16:50
We had a we had a joint meeting with, we had a joint meeting with commissioners yesterday and they. 00:16:57
They're going to take it up in their next meeting. 00:17:02
I'm sure you talked to Christy. 00:17:04
That's the commissioners, Yes, again. Yeah, yeah. 00:17:06
The commissioner's attorney, do we have to approve that rate? 00:17:09
Or is this? 00:17:14
A commissioner only. 00:17:15
So the Commissioners will. 00:17:19
Of Max. But then during budget time, the council will have to approve the rate. 00:17:22
OK, that's kind of what I thought that I couldn't remember exactly how that went. 00:17:27
And this was a phased in and had to start at half. 00:17:32
And then, yeah, it was, it was a phased in, phased in, right. So this would be the last. 00:17:35
Phase and it will generate another probably about 700,000 for you. So that's good and it can be used for pretty much any capital. 00:17:41
Expenditure that you can think of. So once you've reestablished this, you'll never have to reestablish it again unless the 00:17:48
legislation changes so. 00:17:52
That'll put you in good shape there. You won't have to mess with that right anymore. 00:17:57
So those were the main things I really wanted to talk about. Again, this was just a touch base, see how you all were doing. We've 00:18:03
got a good idea of kind of what you're planning for this year. 00:18:08
We'll send you an agreement for the. 00:18:15
Covers the financial plan update. 00:18:19
And again that will lead right into budget season that should be extremely helpful for for you all and the auditor to. 00:18:21
To prepare the budget. 00:18:30
This year I have a couple more questions I know in our talks here in the county and workshops. 00:18:32
There's been some discussion about the net neutral. 00:18:40
Tax again. 00:18:46
The getting rid of the PRT. It's PRT still going to be. 00:18:48
In existence after this is all over. 00:18:53
And then putting in jail lead and the judicial Ed. 00:18:57
I don't know if that's still on the table with everybody. 00:19:00
Or if it's not. 00:19:04
I want to bring that up. 00:19:07
I was told the PR team may look very different after. 00:19:09
This session, but I haven't got an update on that. 00:19:12
So do you know anything, Paige? 00:19:15
Yeah, I recall seeing something in there, but. 00:19:18
I think it's still going to be around. I don't think that's been eliminated. The property tax replacement credit, the local income 00:19:22
tax, property tax replacement credit. 00:19:25
I know for for all of you, we were gonna. 00:19:30
Do an analysis. As soon as we get the circuit breaker information in for 2025, we're going to do an analysis to see what it would 00:19:32
look like if we eliminated that. 00:19:36
For you. 00:19:41
But as far as I know it has not been eliminated. 00:19:44
And the current proposed legislation, but we'll keep looking at it. I know it was in a. 00:19:48
Previous version might have been in Seneca one but. 00:19:54
I I don't think it's eliminated right now at this point. 00:19:59
So Paige for me. 00:20:02
There's so many moving parts here. 00:20:04
Yes, what I think I need to see, even before we put a new comprehensive plan together, is all the options. 00:20:08
And the impact of each of those options on the revenue stream? 00:20:18
To the county, but also the impact on the. 00:20:24
Our constituents. 00:20:29
And I'm talking about CDC. I'm talking about the Gond. 00:20:31
Whether we do that or whether we don't. 00:20:37
I I'm even talking about the new fire territories and the impact that that's going to have. 00:20:39
And and and I know we. 00:20:47
I keep saying we're not, we're not responsible for that, but at the end of the day, I think we do have to approve that, right? 00:20:50
Right. 00:20:58
Yes, you yes, during budget time like if they approve this new. 00:21:00
Expanded fire territory then at budget time, yes, you will approve their budget. So I'm talking about that. That's three things. 00:21:06
And then this net neutral. 00:21:10
Situation. 00:21:16
I would like to know about. 00:21:18
That as well. 00:21:20
If that even is a possibility. And maybe you can't even do a lot of these things until the session is over, I don't know. 00:21:23
And then I would like to for us to get together and talk about all those. 00:21:30
Moving parts and decide what we want to put into a. 00:21:35
A5 year plan outlook. 00:21:41
That's the way I would like to see this go down. I don't know what other people are are thinking. 00:21:44
Honestly, at this point I would even have one more request and that is. 00:21:50
Taking my last point on my e-mail to you and that is taking the. 00:21:57
Public safety tax back from 5 down to 2.5 and putting in. 00:22:02
The jail lit and the judicial it and what the impact of that is to the county and what the impact of that is to the. 00:22:07
To the taxpayers, I mean, there are. 00:22:14
At least five different moving parts here. 00:22:17
For our taxpayers and also for county revenue streams, there's more than 5 because commissioners have decisions to make 2 that. 00:22:21
We're going to have to deal with. 00:22:30
So, umm. 00:22:31
Yeah. 00:22:33
Yeah, I think we as a council need to. 00:22:36
I mean, this estimated fund balance report we got, I mean we need something much more detailed to this. And I already look at this 00:22:39
and I've. 00:22:43
Question some of these things already. I think Denise said the Community Foundation numbers are pretty low. They're half million 00:22:47
dollar, they're about half $1,000,000 short. And who knows what the stock market is going to do in the next 5 years. But I think 00:22:53
we at least keep it flat from what we know 2020. And our forecast needs to adjust some of these things because our year in balance 00:23:00
for the general fund was half $1,000,000 better than estimated. So we need to revise these budget numbers in with that. 00:23:06
Even the. 00:23:13
The jail was was less than what the estimates were. 00:23:16
I mean, riverboat funds, we need to take that in. That's a, that's an income source. 00:23:19
I think all of this needs to come together before we can start. 00:23:24
Making any decisions, especially like. 00:23:27
I thought we were supposed to be looking at something on our next council meeting. I don't see how we can do any of this. 00:23:29
Until we really have a hand on what where we're at and what where our true. 00:23:34
Estimates are going to be. That's the other question I wanted to ask you. Is there any hurry in distributing? 00:23:39
In in moving funds around, I mean. 00:23:45
There's no reason for us to move $2,000,000 out of that. 00:23:51
Out of the general fund. 00:23:55
Next month we can wait till May and do that after we get. 00:23:57
The revised budget, right? Or there's something I'm missing? 00:24:02
I don't think there should be a hurry, in fact. 00:24:06
I would slow down a little bit because we do have that pending legislation. We don't even know what it's going to be unless you're 00:24:09
running out of money in the general. I don't think there's a hurry to do that yet. 00:24:14
I think we, I agree with all of you, we need to get a good handle on your finances and it's only, you know, the end of February 00:24:20
right now we need to get. 00:24:24
You know, umm. 00:24:29
A really good handle on your cash flows, your finances, how you ended 2024. 00:24:31
We haven't really dug into that yet. 00:24:36
I think some of these things though, these options, we can start working on those individually and say, OK, here's what the fire 00:24:39
territory does to you, here's CCD phone, here's what general obligation bond will. 00:24:46
Will do for you and your constituents. Like some of these little pieces. I think we can do those individually as we wait to see 00:24:52
what happens in the legislative session. 00:24:57
So I don't think you should be in a hurry. We are helping some other counties and municipalities and we are kind of. 00:25:02
We're building the model, but we're kind of taking a slowdown approach because we need to see what comes out of the legislative 00:25:09
session because that could really. 00:25:13
Make some big changes and I don't we don't want to waste a whole bunch of time trying to finalize cash flows when. 00:25:18
There's still a bunch of moving parts. Yeah. So we, we can work on these little, we can work on these little buckets of items, you 00:25:25
know, to see how they impact individually and then we can roll those into the financial plan as we get additional information. 00:25:32
Matt, did you have something? 00:25:42
No, I was just gonna reiterate. I mean, just from my perspective, I feel like we have some fundamental. 00:25:43
Things wrong. 00:25:50
In our county finances and I really want to see us get those corrected. I understand that rushing to do that but. 00:25:51
You know some of our operating at, you know. 00:25:58
A million and a half plus. 00:26:02
Negative in our general fund, I mean. 00:26:04
We're not. We're not a million and a half. 00:26:07
Negative in our general plan. 00:26:09
Or not. Can we take a look at those on the screen page, page. Yeah, let me see if I can pull those up. We have $4 million at the 00:26:11
end of the year. I'm talking about where we came in last year, but. 00:26:18
I know that the number was the the. 00:26:25
What was projected right, but we still overspent by a million and 1/2, right. 00:26:27
No, no, we didn't. We didn't even flat, but still. 00:26:32
We didn't even spend our whole budget last year. 00:26:37
Go ahead. No. 00:26:39
No, we did not. 00:26:42
I'm pretty sure. 00:26:44
I wish the auditor. 00:26:45
We're on. 00:26:48
OK, I can. You know what I think I can pull a spreadsheet up and tell you. 00:26:49
But I'm pretty sure we did not. 00:26:54
Work like so you have a quick projection there. 00:26:58
Here's the general funds. 00:27:03
It's on 2 pages. 00:27:06
OK, so here's 2024 you actually. 00:27:09
Added to your cash reserve in 2024 by 338,000 so you didn't spend the whole budget that you had budgeted. 00:27:12
You ended with a $4 million. 00:27:20
Cash balance at a 20% cash reserve, that's pretty good. And, and, and Matt, let me explain a little bit of that. I think I can 00:27:23
explain the biggest chunk of that was in our. 00:27:28
Our health. 00:27:34
Care Fund or. 00:27:36
Our medical fund. 00:27:38
We went you SO two years ago. 00:27:40
We started self funding. 00:27:42
And it has saved us a tremendous amount of money. 00:27:45
And so the biggest piece of that, and not all of it. 00:27:49
But the biggest piece of that is, is that. 00:27:53
Matt, maybe what you're thinking is what we know what's ahead this year is the EMS funding is almost 1.4 million now that's a new 00:27:57
expense we didn't have last year's refunded. 00:28:02
Partially through the year and we funded it through other, you know, through some money out of Community Foundation and some other 00:28:08
funds we have. But this year, now it's got to come somewhere else. And maybe that's what you're thinking, right? We're just now 00:28:12
experiencing that this year. 00:28:16
And we did need to pass a tax to cover 1.4 million, but we didn't need to pass a tax for 6,000,006 and a half million. 00:28:20
I don't know why we did that, to be quite honest. 00:28:29
But umm. 00:28:32
Yeah, there's that's where we're at. 00:28:34
Well, and I guess I going back to my original point. 00:28:37
I just I feel like. 00:28:40
From all of my experiences, I want to be a little more proactive about. 00:28:42
Going at these things rather than reactive. 00:28:47
And, and I'll just tell you before I got on the council. 00:28:50
We weren't even doing five year projections, we were just going budget year to budget year. 00:28:56
And it's in the last six to eight years. 00:29:01
Six years, I'd say. 00:29:04
That about right stands that we have actually tried to be proactive and actually put plans together where we could anticipate. 00:29:06
What our expenses are? 00:29:14
Out into a five year projection. So I feel like we really have done taken some major steps forward. 00:29:16
And being proactive in the last five years. 00:29:25
And putting some new revenue streams in place, we put the judicial. 00:29:30
Stream in place to help our. 00:29:35
Who were falling short? 00:29:38
We put the jail let in place. 00:29:40
Again, because we didn't have enough money. 00:29:43
To sustain all of the expenses of running a jail. 00:29:46
And so we have been very proactive. 00:29:52
In not only projecting. 00:29:55
And but in anticipating. 00:29:58
Revenue shortfalls, but also in putting those revenue shortfalls in putting those new revenue streams in place to to shore us up. 00:30:01
So. 00:30:12
I completely agree with you. We need to continue to do that thing. 00:30:15
But let's I mean. 00:30:20
We are flat this this. 00:30:22
Ending balance does have rainy day. 00:30:25
No, this isn't a rainy day. This isn't a rainy day not included in this one. So look at the no, this is just the general look at 00:30:29
the projections going out. 00:30:33
27 shows us. 00:30:38
Spending into cash 28 and 29. But it's wrong because the there's another half, $1,000,000 each year. 00:30:40
That is not in this projection that needs to be. So it's not until we get to the end of this five year plan period where we're 00:30:49
actually eating into our cash. 00:30:54
Even with these projections now? Are these projections correct? 00:30:58
I do think we need to shore up some things. 00:31:03
But just given that. 00:31:05
We are not sure. 00:31:09
Where's the extra half a million that you just referenced? Well, the Community Foundation spend rate she's got in here at 3.5. 00:31:11
Yep, we already got a an e-mail from Linda, from Linda Speed from the Community Camp Foundation giving us the actual dollars that 00:31:18
we will receive. 00:31:24
Which are going to be 3.9. 00:31:31
I've got it in this e-mail I sent out. 00:31:34
So. 00:31:37
It's it's almost a half $1,000,000 short and that is a half $1,000,000 for each year if you hold that flat. 00:31:39
Now we don't know what the stock market is going to do. Do you want me to tell you? 00:31:46
Yeah, I'd love to know 'cause I could use that information. 00:31:49
I don't know. That one doesn't even close. The riverboat funding wasn't it that's that's over a $200,000 net. 00:31:54
Doesn't include this adjustment. We're talking for the employee benefits to healthcare. It doesn't it's the expenses are. 00:32:01
Too high right now in this forecast and so once that's revised rainy day. So it really alters this dramatically. 00:32:08
But it does that. There are some other things that I feel like need to be included in here, for instance. 00:32:14
We need to pay the interest on the new ban that we agreed to for lifetime. That needs to be in here. If it's going to come out of 00:32:21
this, I sincerely think it needs to come out of the edit fund because that's where it belongs. 00:32:26
But we need probably need to even manipulate manipulate. That's not a good. 00:32:33
Working. That's a fun word. 00:32:38
It is. 00:32:39
Some of the numbers and because there's some operating expenses in the edit fund that I think we should take and absorb back into 00:32:42
the operating expenses. 00:32:47
They were moved out at periods. 00:32:52
Over the last five years, do you have a page in the your CFP that has like all the funds listed on one page then kind of like as a 00:32:54
total? 00:32:58
In the older CF, yes. In the previous CFP I don't have a pool. 00:33:03
Yeah. 00:33:08
Yeah, we had a page where we tried to summarize all that because. 00:33:09
These funds are kind of interconnected well and even when even since I've been on the council. 00:33:13
Which is now going on 8 years. It's hard to believe but. 00:33:20
The general fund used to have nearly all the operating costs for the county in the general fund. Now those operating costs are 00:33:24
spread out amongst 3, amongst 4, at least 4. 00:33:30
Different. 00:33:37
Different funds. 00:33:40
And it's it's. 00:33:42
We can't just look at the general fund anymore, we've got to be looking at. 00:33:44
The jail lit fund, we've got to be looking at the traditional lit fund. 00:33:49
It's those those those operating expenses have been. 00:33:54
Dispersed. 00:34:00
Into other accounts. Into other funds. 00:34:01
And I don't think it's fair to just look at the general fund anymore. 00:34:05
Paige, please. 00:34:10
You know, pipe in. 00:34:11
And I completely agree. Yeah, I completely agree with that. 00:34:13
Yeah. 00:34:19
Funds gonna be short. 00:34:20
We know that's short. Yeah, it's short. And so is the edit fund an edit short? Yep. 00:34:22
So I think we have a lot of work to do here. 00:34:31
In the next few months. 00:34:34
Trying to figure out. 00:34:36
Give you some good go forward assumptions. 00:34:37
To go on and then let you produce that. 00:34:41
That. 00:34:46
Yeah, OK. 00:34:49
All right. Well, we will send over scope of service, just an updated scope of service and then we can get started on working on 00:34:54
these, the impacts of some of these revenue options that you have. 00:35:00
And I'd like to see all of them brought together so that we understand if we do. 00:35:07
You know if we do. 00:35:14
A&B This is the impact if we do A and C if we do AB and C. 00:35:16
You know. 00:35:21
Yeah, you know what I'm saying to you? 00:35:23
We may have to have you here on in in our room at some point with the big white board and just go through all that. 00:35:25
OK. 00:35:33
Sure. 00:35:34
Anybody have anything else? Any other questions? Jason, do you have any other comments? 00:35:38
I guess if you are thinking about, you know, potentially doing a bond issue. 00:35:42
You know, I guess kind of keep. 00:35:48
That in the back of your mind, as far as what? 00:35:50
Capital projects that you might want to fund. 00:35:53
And I think. 00:35:56
What might be helpful as? 00:35:58
We determined, you know, all the new legislation that's going to, you know, come. 00:36:00
Into fruition. Once you figure out that impact, if you're looking at the CCD fund, you know all these other things that you do 00:36:05
have control over. 00:36:09
You know, once we kind of get the, you know, when the dust settles and this is the impact the taxpayers. 00:36:13
Then we can look at OK, if we, if you want us to, we can look at. 00:36:18
And if you have the need to issue a bond, we can also add that on top of. 00:36:22
The overall impact. 00:36:26
If you want us to. 00:36:28
I agree And and is our do we looking at any timetables that are going to push us? 00:36:30
Are most of those towards the end of the year? 00:36:38
As far As for a bond issue, for a bond issue to get the tax rate in place for next year in 2026. 00:36:42
We have to close on the bonds by the end of the year. 00:36:51
So December 31. 00:36:54
But I mean. 00:36:56
As you know, the bond process takes, you know, 3-4 months. 00:36:57
So that's fall. 00:37:00
For local income tax, as you know, if you want to make a change there, it's by October 31st, October 31st, OK. We have a plethora 00:37:02
of capital projects, so that won't be an issue. Not an issue at all. Maybe deciding on one or yeah. 00:37:10
So and I will tell you your tax rate. 00:37:18
I looked while we were on the call and your tax rates like under a penny. 00:37:22
Just because when you issue those tax rates a few years ago, your tax base has been growing. 00:37:26
And your annual payments been roughly that 500,000 every year, so as your tax base grows. 00:37:30
That tax rate that you originally implemented a couple of years ago is probably, you know, a penny pay and a half, 2 pennies. 00:37:35
And that's it's a decrease to less than opinion because your tax base has grown. 00:37:42
So I bring that up is because tax rates or tax bases have grown so much the last 2-3 years. 00:37:45
That it's hard to. 00:37:53
Generate the same amount of bonds and keep the tax rate level because your tax rates decrease somewhat from what it was originally 00:37:57
when you did the bonds. 00:38:00
So we can talk more about that, but. 00:38:04
I just did want to bring that up that your tax rates not very much this year. 00:38:07
But that's good. I mean, for for residents, you know, we can do a calculation that says OK, because of all these changes that the 00:38:13
legislators made. 00:38:17
Homeowners might see a net decrease in tax rate next year. 00:38:21
So if you were to increase the. 00:38:25
Debt service tax rate, they may not really see the impact because of all the. 00:38:26
Which which is what I would love to be able to say. It's what I was getting at throughout this whole conversation. 00:38:30
Of having all the options and then understanding. 00:38:38
What the impacts are, yeah. 00:38:41
It yeah, if we can just say to our taxpayers, yeah, they've pushed it all down to the local level. 00:38:43
But we're keeping your tax rate flat. 00:38:50
So yeah, those you, you, you're right on a target for. 00:38:54
What I think we need to. 00:39:00
To go with a message to our constituents. 00:39:02
Yeah. 00:39:07
All right, well, I'll be looking for. 00:39:09
The e-mail. 00:39:11
And we'll get that out, OK. 00:39:12
Work on getting that approved and back to you and. 00:39:15
We'll go from there, so. 00:39:19
Everybody keeps their calendars clear for. 00:39:20
July and August. 00:39:23
Maybe. Maybe June. 00:39:25
Will be a lot to go over and say June, July, Yeah, there's gonna be a. 00:39:28
A lot of information to dice up and a lot of decisions to be made so. 00:39:34
Can we do it in my backyard? 00:39:37
All right. Thank you. 00:39:41
Thank you very much. 00:39:44
Aye, bye, bye. 00:39:46
Is everybody OK scrapping from the agenda the the movement? 00:39:56
I do think we need to appropriate the money. 00:40:01
OK. 00:40:05
I do think we need to appropriate the money that we're spending. 00:40:06
For the EMS contracts and it's going to be in the fund that it's in, I think. 00:40:11
OK. So are you talking about the public safety? 00:40:17
Yes, that we're going to scrap removing the money into it right now. Well, now we're talking about do we want to? 00:40:21
Move the EMS contract there because we know that's going to be there. 00:40:27
So. 00:40:31
And I don't want to take a vote here, but. 00:40:33
Is that the direction we're looking at is holding off on the big movement only moving the contract contractual? 00:40:37
But we're not moving that money, we're leaving it in the public safety. 00:40:42
We're just creating. 00:40:47
Are we creating a new fund for that or we is it going to stay? 00:40:50
Oh, OK, it's a new fund. OK, OK, I. 00:40:55
I guess I'm missing. 00:40:58
I had to send the revised ad. 00:41:00
I'm not sure if they'll let they'll. 00:41:03
It might be. It might make it into the advertisement or. 00:41:04
The breakdown we had before. 00:41:08
That if those numbers are going to change then. 00:41:10
As long as we have enough money to appropriate. 00:41:14
If we have to do it in April, if we have to do it in April, we'll do it in April. Just look into it and we'll. 00:41:18
But we, yeah, well, I just have the brakes on the on the big movements just yeah, I totally agree. I mean, we've got an EMS 00:41:22
contract. It's got to be paid this year. It's already being paid. It's just not appropriated. 00:41:29
And I really think it should be. 00:41:36
Yeah, it's being paid. 00:41:39
Oh, it's definitely been, yeah. 00:41:41
Sure it would fund. It's being paid out. Yeah. I don't know where you're not. 00:41:44
OK. 00:41:55
Very well. 00:41:56
All right. 00:41:59
Good meeting. 00:42:01
That's why that's right. 00:42:04
Absolutely. 00:42:05
We are done. 00:42:06