* This transcript was created by voice-to-text technology. The transcript has not been edited for errors or omissions, it is for reference only and is not the official minutes of the meeting. [00:00:01] OKAY, WE'RE GOING TO CALL THE MEETING THE WORK SESSION MEETING MARCH 9TH, 2021. [A. Call to Order] TO ORDER I DO MY LIGHTS ON IT'S ON AND FIRST ON THE AGENDA IS THE 2019 2020 AUDIT [B. FY 2019-2020 Audit Presentation – Michael Lupton, Robinson, Farmer, Cox Associates] PRESENTATION. MICHAEL LEFT HIM FROM ROBINSON FARMER COX ASSOCIATION. THANK YOU FOR BEING HERE TONIGHT. THANK YOU, MADAM CHAIR FOR HAVING ME OTHER MEMBERS AND WAS GOING TO TRY TO TUNE UP OUR POWERPOINT PRESENTATION HERE AND YOUR LIFE WILL GOING ON YOUR MIC. IT IS. DO I NEED TO SCOOT IT CLOSER TO ME? PROBABLY. OKAY. AND FEEL FREE IF YOU WANT TO. OKAY. OKAY. THANK YOU. THAT LITTLE DIFFICULT TO BREATHE WITH IT. YEAH, OKAY. THERE YOU GO. YOU READY TO GO? ALRIGHT. UM, ALL RIGHT, SO THANK YOU ALL FOR HAVING ME THIS EVENING. I'M GLAD TO BE HERE TO PRESENT THE, THE FYI 2020, UH, COMPREHENSIVE ANNUAL FINANCIAL REPORT AND THE AUDIT OF THAT FINANCIAL REPORT. UM, I KNOW IT'S EIGHT MONTHS AFTER THE FACT, BUT WE'RE GONNA, WE'RE GOING TO GET THROUGH IT. AND, UH, AND, UH, AND IF Y'ALL HAVE ANY QUESTIONS, PLEASE STOP ME. UM, OTHERWISE I'LL HAVE A TIME FOR Q AND A AT THE, AT THE END OF THE PRESENTATION. ALL RIGHT. SO THE, UM, REQUIRED COMMUNICATIONS WITH, WITH THE GOVERNING BODY IS THE GOVERNANCE LETTER. AND IT'S ACTUALLY A LETTER THAT IS IN YOUR, YOUR DOCUMENT THERE. UM, ONE OF THE LOOSE LETTERS IN YOUR DOCUMENT COMMUNICATION WITH THOSE CHARGED WITH GOVERNANCE, UM, ESSENTIALLY IT DETAILS, UH, OUR, UH, OUR, UH, RESPONSIBILITIES AND ALSO THE RESPONSIBILITIES OF MANAGEMENT. UM, WE WILL LOOK AT THIS LETTER, UM, ALONG WITH, UH, THE, THE AUDIT RESULTS, UH, FROM THE AUDIT, UM, INCLUDING THE OPINIONS, UH, THE REPORTS, AND ALSO VARYING FINANCIAL HIGHLIGHTS, UM, THROUGHOUT THIS PRESENTATION, STARTING WITH THE LETTER THAT I JUST STARTED TALKING ABOUT, UM, ESSENTIALLY, UH, THERE ARE, UM, THREE OR FOUR DIFFERENT SECTIONS OF THIS LETTER, UH, TO, TO, UH, BRING TO YOUR ATTENTION. UM, THE FIRST OF WHICH IS THE DETAILING OF MANAGEMENT'S RESPONSIBILITIES. UM, IT IS, IT IS MANAGEMENT. I WANT TO BE CLEAR ABOUT THIS. IT IS MANAGEMENT'S RESPONSIBILITY, UM, TO HAVE INTERNAL CONTROLS AND ALSO TO, UM, UH, TO PREPARE THE FINANCIAL STATEMENTS IN ACCORDANCE WITH GENERALLY ACCEPTED ACCOUNTING PRINCIPLES, UM, AND HAVE THAT PREPARED FOR US, FOR US TO, TO AUDIT ESSENTIALLY, UM, OUR RESPONSIBILITY AS AUDITOR'S IS TO, UM, IS TO OBVIOUSLY AUDIT THE FINANCIAL STATEMENTS AND DO THAT IN ACCORDANCE WITH GENERALLY ACCEPTED AUDITING STANDARDS, [00:05:01] AND THEN ULTIMATELY TO RENDER AN OPINION ON THOSE FINANCIAL STATEMENTS, UM, AND THAT DETAILED THOSE, WE, WE, AS PART OF THAT PROCESS, WE EXAMINE INTERNAL CONTROLS. UH, WE TEST ACCOUNT BALANCES, UH, SAMPLE DIFFERENT, YOU KNOW, TRANSACTIONS THROUGHOUT THE YEAR, UM, AND ALSO TEST COMPLIANCE AND ULTIMATELY ISSUE OUR AUDITOR OPINION, UM, AND REPORTS, DIFFICULTIES ENCOUNTERED IN PERFORMING THE AUDIT. UH, THERE WERE NONE TO REPORT, UH, NO DIFFICULTIES THAT WE ENCOUNTERED CORRECTED AND UNCORRECTED MISSTATEMENTS. WE, WE DID PROPOSE SEVERAL ADJUSTMENTS THAT WE CONSIDER TO BE MATERIAL IN NATURE. UM, AND ON THE SECOND PAGE OF THAT LETTER, UH, WE GIVE A BRIEF DESCRIPTION OF THE ITEMS THAT WE ARE, THE ADJUSTMENTS WE PROPOSE THAT WE CONSIDER TO BE MATERIAL. UM, ALL OF THE ADJUSTMENTS WERE ACCEPTED BY MANAGEMENT, UM, AND POSTED TO THE ACCOUNTING SYSTEM DISAGREEMENTS WITH MANAGEMENT. THERE WERE NONE TO REPORT. UM, IT IS OUR UNDERSTANDING AND IT WAS REPORTED TO US THAT MANAGEMENT DID NOT CONSULT WITH ANY OTHER AUDITORS, UM, OTHER MATTERS. UM, AND THIS IS A SIGNIFICANT OTHER MATTER TO DISCLOSE IS THE OMISSION OF THE EDA FINANCIAL STATEMENTS, UH, ISSUED A DISCLAIMER OF OPINION ON THE EDA FINANCIAL STATEMENTS, AS YOU ALL MAY BE AWARE, THE EDA, UM, IS A, A COMPONENT UNIT, UH, FOR PURPOSES OF FINANCIAL AFFORD AND FOR THE COUNTY. YES, SIR. YOU'RE MIGHTY, THEY'RE USING, THEY ARE USING BROWN EDWARDS LEAVE, AND IF THEY COMPLETE THE 18 AND THE 19 AND THE 20 IN A REASONABLE TIME, UH, AND THE BOARD, THEN THIS BOARD NEXT YEAR ADOPTS WITH THE BUDGET, A LINE ITEM BUDGET, SINCE WE ARE THEIR FISCAL AGENTS. AND WE PAY FROM THAT LINE ITEM BUDGET, CAN IT BE AUDITED AS PART OF OUR REGULAR COUNTY AUDIT? SO IT'S STILL GOING TO BE CONSIDERED A SEPARATE COMPONENT UNIT COMPONENT. YES. CORRECT. SEPARATE FUND. YES. AND, UM, IT WOULD BE, IT WOULD BE, WELL, IT WOULD BE ACTUALLY A SEPARATE SET OF FINANCIAL STATEMENTS SIMILAR TO HOW THE SCHOOL BOARD HAS REPORTED. UM, AND SO ESSENTIALLY YOU WOULD HAVE A SEPARATE SET OF FINANCIAL STATEMENTS FOR THE COMPONENT YOU TO EDA. UM, AND THEY WOULD HAVE THOUGH IT'S THE SAME INTERNAL CONTROL ENVIRONMENT BECAUSE THE COUNTY WOULD ACT AS ITS FISCAL AGENT, YOU WOULD HAVE A SEPARATE AUDIT FOR THE EDA. UM, AND GENERALLY SPEAKING, YOU KNOW, UH, I THINK THE DECISION AS IT RELATES TO WHETHER OR NOT A FUND A SEPARATE FINANCIAL REPORT WOULD HAVE TO BE ISSUED, UM, UH, I THINK THAT WOULD, COULD ULTIMATELY BE THE DECISION OF THE BOARD, UM, AND, YOU KNOW, IN CONJUNCTION WITH THE EDA BOARD AS WELL. UM, BECAUSE OBVIOUSLY THAT THE SCHOOL BOARD DOESN'T HAVE A SEPARATE ISSUE SEPARATELY ISSUED FINANCIAL STATEMENT. IT'S, IT'S PART OF THE COMPREHENSIVE ANNUAL FINANCIAL REPORT. UM, MY VISION OUT THERE IS THAT THERE BE THE GENERAL FUND, THE, THE SCHOOL FUND, AND THEN THERE'LL BE AN EDA FUND THAT THE BOARD CAN REVIEW AND THE PUBLIC CAN REVIEW ALL AS PART OF ONE AUDIT IS WHAT I'M TRYING TO GET AT THE COAL THERE. AND I DON'T SEE THE SANITARY DISTRICTS. RIGHT. RIGHT. UM, I GUESS WITH THE EXCEPTION OF THE FACT THAT THE SANITARY DISTRICTS WERE ONLY REPORTING IN THIS CASE, UM, UH, THE, WELL, WELL, THE, THE COUNTIES FIDUCIARY. UM, AND SO ESSENTIALLY IT'S JUST THE FACT THAT THE COUNTY IS HOLDING THE FUNDS FOR THE SANITARY DISTRICTS. WE'RE NOT NECESSARILY AUDITING THE SANITARY DISTRICTS THEMSELVES SEPARATELY. CORRECT. PART OF IT, JUST THE, YEAH, JUST THE FUNDS THAT ARE HELD HERE. RIGHT. AND EVERYTHING WITH THE EDA WOULD GO THROUGH OUR ACCOUNTING AND ON OUR LINE ITEMS, JUST AS PLANNING, FINANCE, SOCIAL SERVICES, ET CETERA, THEY WOULD ALL BE YES. AND IT WOULD BE SHOWN, LIKE I SAID, VERY SIMILAR TO HOW THE SCHOOL BOARD WOULD BE SHOWN KIND OF A SEPARATE SECTION, UM, FOR THAT SET OF FINANCIAL STATEMENTS. CORRECT. YOU'RE WELCOME. CAN I ASK YOU A QUESTION? WHAT SORT OF TESTS DO, WHAT TESTS DO THE AUDITORS APPLY TO THE FINANCIALS? DO YOU TEST VARIOUS INVOICES AGAINST THE, YOU KNOW, WHO THE SAID PAYEE OR PAY FOR IT, AND THEN YOU GO THROUGH THAT PROCESS TO VERIFY? YES. OKAY. SO, SO ESSENTIALLY WHAT WE DO IS WE, WE, WE SELECT A RANDOM SAMPLE OF DISBURSEMENTS THROUGHOUT THE YEAR AND, UH, THEY'RE ACROSS [00:10:01] ALL DEPARTMENTS. THEY'RE NOT, YOU KNOW, UM, THEY'RE NOT FOCUSED ON ANY ONE PARTICULAR DEPARTMENT ON THEY'RE ACROSS ALL DEPARTMENTS. AND WHAT WE DO IS WE HAVE THAT, THAT, THAT SAMPLE. AND WE LOOK AT ALL THE SUPPORTING DOCUMENTATION RELATED TO THOSE TRANSACTIONS. UM, AND WE USE THAT, UM, AS OUR TEST TO MAKE SURE THAT THE CONTROLS OVER THE ACCOUNTS PAYABLE PROCESS, UM, IS SUFFICIENT AND IS OPERATING CORRECTLY AND EFFECTIVELY. UM, WE ALSO TEST CONTROLS OVER CASH RECEIPTS OVER, YOU KNOW, COLLECTIONS IN THE TREASURER'S OFFICE. UM, AND WE DO THE SAME THING. IT'S A RANDOM SAMPLE. UM, USUALLY WE SELECT RANDOM DAYS THROUGHOUT THE YEAR TO SAMPLE THE CASH RECEIPTS FOR THOSE DAYS. AND WE LOOK AT THE SOURCE DOCUMENTS FOR THOSE CASH RECEIPTS, AND WE, UM, UH, TEST THOSE FOR OPERA CONTROL EFFECTIVENESS, UH, MAKING SURE THAT THE CONTROLS ARE BEING FOLLOWED, UH, THROUGH THAT PROCESS. SO THAT'S, YEAH. YOU'RE WELCOME. YOU'RE WELCOME. APPROXIMATELY HOW MANY TEST SAMPLES DO YOU COLLECT? LIKE IF YOU WERE TO LOOK AT, SAY THE TREASURER'S OFFICE, YOU SAY FOR ONE DAY, IS THAT EVERYTHING THAT WAS DONE IN ONE DAY OR IS IT GENERAL GENERALLY? SO FOR EVERY DEPARTMENT YOU LOOK AT, OR SO IT'S, THE TREASURER'S OFFICE IS, IS UNIQUE, I GUESS, IN THAT IT'S THE, IT'S THE PLACE WHERE FUNDS ARE COLLECTED. UM, YOU KNOW, AND SO OBVIOUSLY A LOT OF OUR, UH, TESTING OF TRANSACTIONS RELATED TO THE CASH RECEDING SIDE HAPPENS AT THE TREASURER'S OFFICE. UM, YOU KNOW, THE, UH, AS IT RELATES TO WHETHER OR NOT WE FOCUS ON THE DIFFERENT DEPARTMENTS, YES. THERE ARE CERTAIN TESTS THAT WE DO, YOU KNOW, IN DIFFERENT DEPARTMENTS, FOR EXAMPLE, SOCIAL SERVICES, WE DO A LOT OF COMPLIANCE TESTING AT SOCIAL SERVICES TO MAKE SURE THAT THEY'RE COMPLYING WITH STATE REGULATIONS AND IN, UH, FEDERAL REGULATIONS, IF IT COMES TO THAT. UM, AND ALSO ON THE SCHOOL SIDE, WE DO THE SAME THING. UM, BUT GENERALLY SPEAKING, YOU KNOW, THE, THE, THE TESTS THAT WE DO ON A TRANSACTIONAL LEVEL, OUR COUNTY-WIDE DEPARTMENT, YOU KNOW, ALL DEPARTMENTS ACROSS THE BOARD, UM, ARE INCLUDED IN OUR POPULATION THAT WE CAN SELECT FROM. UM, AND SO I WOULD SAY, YOU KNOW, JUST A, A ROUGH ESTIMATE OF HOW MANY, UH, YOU KNOW, INVOICES AND CHECKS WE LOOK AT IN THE YEAR WOULD PROBABLY BE AROUND 80 TO A HUNDRED, I WOULD SAY, UM, RANDOMLY SAMPLED, UM, AND ALSO FOCUSED. UM, SO A PORTION OF THAT WOULD BE RANDOMLY SAMPLED AND THEN A PORTION OF THAT WOULD ALSO BE FOCUSED ON, UH, THOSE TRANSACTIONS OVER A CERTAIN DOLLAR AMOUNT. UM, UM, AND, AND ONE MORE QUESTION, CAUSE I DON'T WANT TO STOP YOUR PRESENTATION NECESSARILY, BUT, UM, DO YOU TEST EVERY DEPARTMENT EVERY YEAR, EVERY SINGLE DAY, ALL OF THE TRANSACTIONS IN ALL OF THE DEPARTMENTS ARE PART OF A POPULATION OF OUR POPULATION THAT WE CAN CHOOSE SAMPLES FROM. SO THEY HAVE, YOU KNOW, THE PUBLIC WORKS DEPARTMENT TRANSACTION HAS AN EQUAL OPPORTUNITY TO BE AS, AS EQUAL AND OPPORTUNITY TO BE SELECTED AS A FINANCE DEPARTMENT'S TRANSACTION. UM, AND SO I, YOU KNOW, I CAN'T SAY WITH CERTAINTY THAT, UM, THAT, YOU KNOW, UH, EVERY SINGLE DEPARTMENT IS TESTED EVERY SINGLE YEAR, UM, BECAUSE THAT'S JUST THE, KIND OF HOW, HOW THE TESTING IS STRUCTURED. IT'S VERY MUCH RANDOMIZED, UM, UH, BASED ON THE CHECK SEQUENCES AND THE CHECKS THAT ARE WRITTEN IN THE YEAR. OKAY. THANK YOU. I HAVE ONE MORE QUESTION. YEAH. DO YOU, WHEN YOU DO THESE RANDOM TESTS, DO YOU CHECK TO SEE IF THEIR RESOLUTIONS AGAINST THE DISBURSEMENTS OR ANYTHING LIKE THAT FOR SIGNIFICANT DISBURSEMENTS? ABSOLUTELY. YEAH, ABSOLUTELY. WE'LL LOOK AT, UM, YOU KNOW, FOR LARGER, UH, PURCHASES, WE LOOK AT THE PROCUREMENT PROCESS, UM, AND MAKE SURE THAT APPROVALS ARE TAKING PLACE. UH, WE CERTAINLY MAKE SURE THAT APPROVALS ARE TAKING PLACE ACROSS THE BOARD. THAT'S PART OF OUR TESTING. THAT'S ONE OF THE ATTRIBUTES THAT WE TEST FOR. UM, SO YES, YOU'RE IN, YOU'RE WELCOME. YOU'RE CONSIDERED SIGNIFICANT, SIGNIFICANT IT'S, IT'S BASED ON A MONETARY LEVEL. UM, AND IT CHANGES FROM YEAR TO YEAR. UM, I DON'T HAVE THAT NUMBER, UM, ON, UH, AT THE TOP OF MY HEAD RIGHT NOW, UM, AS IT RELATES TO WHAT THE, THE MATERIAL OR SIGNIFICANT ITEM THRESHOLD WAS FOR THE COUNTY, UM, FOR 2020. UM, BUT GENERALLY IT'S AROUND 50 TO $75,000, UM, MAYBE UPWARDS OF A HUNDRED, UM, TO SOME EXTENT. SO LESSER AMOUNTS OF MONEY SAY LESS THAN A THOUSAND DOLLARS, YOU WOULDN'T NECESSARILY PULL THOSE RECEIPTS AND SO FORTH. WE, WE, THEY WOULD BE PART OF OUR, OUR RANDOM SAMPLE. UM, AND SO ALL, ALL CHECKS, ALL DISBURSEMENTS, UM, AND ALSO SEPARATELY ON THE RECEDING SIDE, UM, THEY'RE PART OF OUR TOTAL POPULATION. AND SO WE TAKE BEGINNING CHECK NUMBER, ENDING CHECK NUMBER. WE RANDOMLY GENERATE A SAMPLE TO COME UP WITH A LISTING OF [00:15:01] CHECKS THAT WE WANT TO LOOK AT THE TRANSACTION AND THE DOCUMENTATION FOR. AND SO THAT CHECK COULD BE $5. UM, BUT WE'VE RANDOMLY SELECTED THAT ONE. SO WE'RE GOING TO BE LOOKING AT THE DOCUMENTATION FOR THAT CHECK FOR $5. AND THEN THE DIFFERENCE IS THAT WE LOOK AT EVERY SINGLE ONE ABOVE THAT HIGHER THRESHOLD. THAT WOULD BE THE DIFFERENCE. SO, SO YOU GIVE A HEADS UP THAT YOU'RE COMING, I'LL BE HERE ON WEDNESDAY OF NEXT WEEK, BUT NO ONE GETS A HEADS UP OF, WELL THIS YEAR. WE THINK WE'RE GOING TO LOOK AT FIRE AND RESCUE. NO. OKAY. NO HEADS UP IN THAT WAY. OKAY. THANK YOU. YOU'RE WELCOME. OKAY. UM, SO YEAH, WE, UH, DISCUSSED THE OTHER MATTERS. THE, THE EDA, AS, AS ED HAD MENTIONED, UH, BROWN EDWARDS IS, IS AUDITING THE FYI 18 AND FYI 19 FINANCIAL STATEMENTS STILL. UM, SO THE FINANCIAL STATEMENTS OBVIOUSLY ARE NOT AVAILABLE BECAUSE THOSE PRIOR AUDITS, UM, HAVE NOT BEEN FINISHED, UH, YET. UM, SO, UH, THE FINANCIAL REPORT, UH, THE BIG DOCUMENT THAT YOU HAVE IN FRONT OF YOU CONSISTS OF FOUR SECTIONS, THE FIRST OF WHICH BEING THE INTRODUCTORY SECTION, UM, AND THE INTRODUCTORY SECTION INCLUDES THE ORGANIZATIONAL CHART AND ALSO A LETTER OF TRANSMITTAL. UM, THE LETTER OF TRANSMITTAL IS, IS WRITTEN BY ADMINISTRATION AND THE FINANCE DEPARTMENT, UM, AND IT INCLUDES A LOT OF GOOD DETAILED INFORMATION. UM, AND SO THERE ARE TWO, THERE ARE TWO VERY, UH, I GUESS, IMPORTANT PIECES OF, UH, EVERYTHING'S IMPORTANT, BUT IF YOU'RE LOOKING FOR A QUICK ANALYSIS AND SUMMARY OF WHAT TRANSPIRED IN THE YEAR, UM, I WOULD START WITH A LETTER OF TRANSMITTAL AND ALSO LOOK AT THE MD AND A, THE MANAGEMENT'S DISCUSSION AND ANALYSIS. UM, THEY'RE ALL, YOU KNOW, UM, A VERY GOOD SYNOPSIS OF THE HAPPENINGS IN THE YEAR AND PROVIDE A GOOD, UH, SUMMARIZED FORM OF THE FINANCIAL STATEMENTS THAT FOLLOW. UH, SO THE SECOND SECTION IS THE FINANCIAL SECTION INCLUDES OUR AUDITOR'S REPORT AND ALSO THE SEPARATE FINANCIAL STATEMENT EXHIBITS. UM, AFTER THAT, UM, WE HAVE THE STATISTICAL SECTION, WHICH HAS SOME TREND INFORMATION, UM, AND ALSO SOME, UH, OTHER HISTORICAL INFORMATION REPORTED, UM, IN THOSE INTO AND TABULAR FORMULA, UH, FORMAT. AND THEN FINALLY WE HAVE THE COMPLIANCE SECTION WHERE WE HAVE OUR REPORT ON INTERNAL CONTROLS AND ALSO OUR REPORT ON COMPLIANCE OVER THE UNIFORM GUIDANCE, WHICH, UH, IS THE FEDERAL AWARDS, UH, AUDIT THAT WE DO. SO FIRST AND FOREMOST, OUR, UM, OUR OPINION ON THE COUNTY FINANCIAL STATEMENTS, UM, IS THERE, IT IS AN UNMODIFIED OPINION, WHICH IS A, A CLEAN OPINION ON THE, AND THE SCHOOL BOARD FINANCIAL STATEMENTS. UM, IT IS THE, THE, THE BEST OPINION THAT WE CAN OFFER, UH, IN OUR PROFESSION. UM, AND ESSENTIALLY WHAT IT SAYS IS THAT, YOU KNOW, THAT THE FINANCIAL STATEMENTS ARE PRESENTED FAIRLY AND IN ACCORDANCE WITH, UM, GENERALLY ACCEPTED ACCOUNTING PRINCIPLES IN ALL MATERIAL RESPECTS. AND THAT WAS ON PAGES 18 THROUGH 20 IT'S OUR OPINION OF THE FINANCIAL REPORT. AND AS I MENTIONED PREVIOUSLY, WE ALSO HAVE A DISCLAIMER OF OPINION, A DISCLAIMER OF OPINION ON THE EDA FINANCIAL STATEMENTS. UM, THE FINANCIAL STATEMENTS THAT ARE AUDITED BY ANOTHER AUDITOR PREVIOUSLY WERE AUDITED BY ANOTHER AUDITOR. UM, W THEY ARE NOT, UH, PROVIDE, THEY WERE NOT PRESENTED WITH THE FINANCIAL STATEMENTS WERE OMITTED. UM, AND THEREFORE WE DISCLAIM THE OPINION ON THOSE FINANCIAL STATEMENTS THAT, UM, ARE, ARE ADMITTED FROM, FROM THE COUNTY'S COMPREHENSIVE ANNUAL FINANCIAL RULE. SO THE MANAGEMENT'S DISCUSSION AND ANALYSIS STARTS ON PAGE 20, ONE OF THE, THE FINANCIAL REPORT DOCUMENT. UM, AND AGAIN, YOU KNOW, THIS IS A VERY NICE NARRATIVE OVERVIEW OF THE FINANCIAL REPORT. UM, IT'S PREPARED BY THE COUNTY'S FINANCE DEPARTMENT, UM, AND ALSO THE COUNTY ADMINISTRATOR AND PROVIDES A NICE ANALYSIS AND SUMMARY OF THE FINANCIAL DATA PRESENTED, UH, THEREAFTER AND ALSO A COMPARISON TO THE PRIOR YEAR AS WELL. UM, SO IF YOU'RE LOOKING FOR A CONCISE, SUMMARIZED, UM, EXPLANATION OF THE HAPPENINGS IN THE FISCAL YEAR, THAT WOULD BE THE PLACE TO GO. EXHIBIT THREE IS THE FIRST, UH, FINANCIAL STATEMENT THAT I WOULD LIKE TO BRING YOUR ATTENTION TO. UM, EXHIBIT THREE IS THE BALANCE SHEET. UM, IT IS PREPARED ON THE MODIFIED ACCRUAL BASIS OF ACCOUNTING, WHICH IS THE SAME BASIS THAT THE COUNTY THAT YOU ALL DEVELOPED THE BUDGET ON. UM, SO THIS IS VERY, VERY, UH, PERTINENT TO THE BUDGETARY PROCESS, UM, UH, COMBINED ENDING FUND BALANCE FOR ALL GOVERNMENTAL FUNDS AS OF JUNE 30, [00:20:01] 2020 WAS 37.23 MILLION. UH, THE GENERAL FUND FUND BALANCE WAS A TOTAL OF 15.91 MILLION, UM, UNASSIGNED FUND BALANCE OF, UH, FOR THE GOVERNMENTAL FUNDS WAS 12.71 MILLION. YES. MA'AM. WHICH PAGE ARE YOU ON? OH, I'M SORRY. PAGE 33 33. THANK YOU. YEP. I WAS BACK IN THE WRONG PLACE. MY APOLOGIES. I WAS IN THAT OTHER SECTION. OKAY. THERE IT IS. THERE WE ARE. THANK YOU. UM, SO YEAH, I'LL JUST GO OVER THAT AGAIN, THE, THE ENDING FUND BALANCES FOR ALL GOVERNMENTAL FUNDS IS 37.23 MILLION. YOU CAN SEE THERE AT THE BOTTOM OF THE PAGE. UH, THE VER THE FAR RIGHT COLUMN IS THE TOTAL COLUMN 37.23 MILLION, UM, GENERAL FUND BALANCE, WHICH IS THE FIRST COLUMN, UM, ON THE LEFT-HAND SIDE. UM, THAT FUND BALANCE WAS A TOTAL OF 15.91 MILLION, UM, ON ASSIGNED FUND BALANCE, WHICH, UH, ALL THE UNASSIGNED WAS IN THE GENERAL FUND, UH, WAS 12.71 MILLION MILLION, EXCUSE ME, AND THEN ASSIGNED AND COMMITTED ACCOUNTED FOR APPROXIMATELY 33.1, 2 MILLION. UM, AND BOTH OF THOSE CATEGORIES ARE AVAILABLE FOR APPROPRIATION AT THE DISCRETION OF THE BOARD, UM, AND THE, THE FUND BALANCE CATEGORIES THAT YOU SEE LISTED HERE, NON SPENDABLE, RESTRICTED, COMMITTED, AND UNASSIGNED. UM, THOSE ARE REPORTED, UH, IN LINE AND, UH, WITH, UH, THE GASBY 54, UH, REPORTING OF, OF FUND BALANCE. IT'S MOVING ON TO EXHIBIT FIVE ON PAGE 35. UM, THIS FINANCIAL STATEMENT IS AGAIN, PREPARED ON THE MODIFIED ACCRUAL BASIS OF ACCOUNTING, UM, AND, UH, PRESENTS THE REVENUES AND EXPENDITURES AND OTHER FINANCING SOURCES AND USES, UH, FOR THE FISCAL YEAR. UM, AS YOU CAN SEE HERE, UH, THE, THE COMBINED FUND BALANCES DECREASED BY ABOUT 4.8, $4 MILLION IN FY 2020, UM, OF THAT THE GENERAL FUND FUND BALANCE DECREASE WAS APPROXIMATELY $3 MILLION. UM, AND THE FUND BALANCE DECREASE WAS IN LINE WITH A, WITH A BUDGETED FUND BALANCE USAGE, UM, FROM THE FYI 2020 BUDGET. UM, AND, UH, THE, THE MOST SIGNIFICANT ITEMS THAT CONTRIBUTED TO THAT WERE A SIGNIFICANT CAPITAL PROJECTS, THE EXPENDITURES FOR, UH, THE RIVERMONT FIRE STATION, A S RHODES ELEMENTARY, UM, AND ALSO, UH, A SIGNIFICANT INCREASE IN LEGAL AND OTHER PROFESSIONAL FEES, UH, DURING THE FISCAL YEAR. OKAY. SO THIS IS A CHART, UM, KIND OF SHOWING, I KNOW IT'S A LITTLE SMALL FROM OVER HERE, BUT HOPEFULLY IT'S, IT'S A LITTLE BIT MORE CLEAR TO YOU ALL. UM, THE, UH, IT'S THE CHART PRESENTING THE, THE TYPES OF FUND BALANCES FOR ALL FUNDS. UM, UH, AS YOU CAN SEE HERE, THE GREEN COLOR REPRESENTS, UM, GENERAL FUND, OR EXCUSE ME, UNASSIGNED FUND BALANCE. UM, THE PEACH OR ORANGE COLOR REPRESENTS COMMITTED FUND BALANCE. AND THEN THE DARK BLUE COLOR REPRESENTS THE RESTRICTED FUND BALANCE. AND THIS IS THE LAST FOUR YEARS. SO AS YOU CAN SEE, THE, THE RESTRICTED FUND BALANCE, UM, IN 2019 WAS A FAIRLY SIGNIFICANT, AND THAT WAS MOSTLY, UM, DUE TO, UH, BOND PROCEEDS THAT WERE HELD AND RESTRICTED FOR USAGE, UM, UH, OF CERTAIN CAPITAL PROJECTS, UM, ASMR RHODES ELEMENTARY, FOR EXAMPLE. UM, AND AS YOU CAN SEE THAT, THAT DARK BLUE COLOR, UM, VERY MUCH DEPLETED, UH, LOOKING TOWARDS 2020, UM, AND ESSENTIALLY THAT WAS THE DECREASE IN THE FUND BALANCE. THAT WAS THE USE OF THE RESTRICTED FUND BALANCE FOR PURPOSES OF THE CAPITAL PROJECTS THAT WE MENTIONED PREVIOUSLY. UM, SO I THINK THIS PROVIDES A GOOD GENERAL ASSESSMENT OF THE, THE CHANGE IN THE FUND BALANCE AND IN A, IN A, IN A GRAPHICAL FORMAT. YEAH. AND THIS IS JUST A TREND TABLE SHOWING UP YOUR GENERAL FUND EXPENDITURES, WHICH WE'VE EXCLUDED THE CAPITAL PROJECTS IN THIS CASE FOR PURPOSES OF ANALYSIS, UM, AGAINST THE FUND BALANCE. AND SO, AS YOU CAN SEE, YOU KNOW, FUND BALANCE HAS FLUCTUATED, UM, UH, FROM, FROM YEAR TO YEAR, UH, TRENDED, UH, DECREASED A LITTLE BIT AS COMPARED FROM AND THE EXPENDITURES, UM, AN INCREASE IN THE GENERAL FUND AND JUST A FEW, UH, GENERAL FUNDS STATISTICS TO POINT OUT TO YOU. UM, I THINK THESE ARE IMPORTANT FOR, UM, JUST HISTORICAL CONTEXT AND ALSO, UH, COMPLIANCE WITH INTERNAL POLICIES. UM, SO THE FUND BALANCE AS A PERCENTAGE OF, OF GENERAL FUND EXPENDITURES, UM, IT'S MY UNDERSTANDING THAT THE, THE INTERNAL POLICY IS TO MAINTAIN A 15% APPROXIMATE [00:25:01] OF, UH, RATIO THERE. AND AS YOU CAN SEE FOR THE LAST FEW YEARS, WE WERE EXCLUDING CAPITAL PROJECTS BECAUSE THE CAPITAL PROJECT EXPENDITURES CAN SKEW THE DATA A LITTLE BIT, UM, AND PRESENTING THIS INFORMATION. UM, BUT AS YOU CAN SEE HERE, THE FYI THAT, THAT PERCENTAGE AS OF JUNE 30, 2020 WAS 20.45%, UM, WHICH IS A LITTLE IT'S SMALL DECREASE FROM THE, FROM THE PRIOR YEAR, BUT STILL ABOVE YOUR, YOUR 15% POLICY. AND THEN JUST A REPRESENTATION OF THE GENERAL FUND REVENUES FOR THE CURRENT IN THE THREE PRIOR YEARS, A STEADY INCREASE FROM ONE YEAR TO THE NEXT. SO THE NEXT SECTION TO LOOK AT, UM, IS THE STATISTICAL SECTION, AND THAT STARTS ON PAGES ONE 55 AND ONE, UH, AND IT GOES THROUGH PAGE ONE 75. UM, THIS PROVIDES SOME NICE HISTORICAL TREND DATA, UM, OF, UH, DIFFERENT FINANCIAL CATEGORIES AND OTHER OPERATING INFORMATION. UM, IT LOOKS AT TREND DATA FOR EXPENDITURES, REVENUE, PROPERTY TAX ASSESSMENTS, DEBT, UM, AND ALSO SO DEMOGRAPHIC INFORMATION AND DATA FOR POPULATION AND UNEMPLOYMENT RATE, JUST A, A COUPLE OF, OF CHARTS HERE, UH, REPRESENTING THE STATISTICAL INFORMATION THAT'S REPRESENTED IN THOSE TABLES. UM, AS YOU CAN SEE THE, THE, THE TOP LINE THERE, THE DARK LINE IS THE EDUCATION EXPENDITURES. AND AS YOU CAN SEE, THE EDUCATION EXPENDITURES HAVE INCREASED, UH, FROM ONE YEAR TO THE NEXT. AND THAT'S VERY TYPICAL THAT, UH, SOMETHING THAT WE'VE DEFINITELY SEEN ACROSS THE BOARD, UM, LAST FEW YEARS, UM, UH, ULTIMATELY, YOU KNOW, THE OTHER EXPENDITURE TYPES, PUBLIC SAFETY IS THAT BLUE, UH, DEBT SERVICES, THE ORANGE COLOR UNDERNEATH THAT, UH, HEALTH AND WELFARE IS THE YELLOWISH TINTED COLOR. AND AT THE VERY BOTTOM IS GENERAL GOVERNMENT ADMINISTRATION. UM, BASICALLY ALL THOSE CATEGORIES HAVE, UH, STAYED THE SAME WITH A SLIGHT UPTICK IN GENERAL, UH, GOVERNMENT ADMINISTRATION IN 2020. AND THAT WAS MOSTLY DUE TO THE, UH, THE, THE LEGAL AND OTHER PROFESSIONAL FEES INCURRED. UM, DURING THE FISCAL YEAR, LOOKING AT THAT CHART, THE FLATTEST LINE, YOU SEE THERE IS HEALTH AND WELFARE. SO AS THE COUNTY HAS GROWN FINANCIALLY AND POPULATION GLADYS EXPENDITURES, THEN FOR THE INVENTORIES INDIVIDUAL CITIZENS. SO YOU'RE, IS THAT THE MIDDLE HILL? OKAY. THAT'S WHAT I WANTED TO CLARIFY VERY FLAT. AND IT GOES PLATINUM FOR FIVE YEARS PRIOR TO THAT AT ALL. DR. DALEY, HOW, UM, HOW DO WE COMPARE TO OUR NEIGHBORS IN THAT SENSE? HAVE WE EXAMINED HOW WE LOOK WITH OUR SURROUNDING COUNTIES WITH RESPECT TO HELP THEM WELFARE PER CAPITA WERE LOW? UM, BUT THEY HAVE ALL BEEN IN THE AREA. A NUMBER OF THEM HAVE BEEN RELATIVELY FLAT. I WAS GOING TO SAY I COMPARED SOME OF OUR SURROUNDING COUNTIES WITH RESPECT TO OTHER, UM, TOPICS, OTHER CATEGORIES. AND WE, WE SEEM TO COMPARE TO THIS TRENDS ARE THE SAME. UM, SO THAT'S WHY I'M ASKING THE QUESTION, TRIED TO FOCUS ON EDUCATION THE LAST FEW YEARS. AND, UH, THE LINE THAT SURPRISES ME IS DEBT SERVICE. HOW CAN THAT STAY FLAT FROM 2017 TO 2020? WELL, PART OF THAT IS YOUR REFUND. EVERY TIME YOU REFUND, YOU'RE GOING OUT A LITTLE BIT, BUT YOU'RE LOWERING, LOWERING WHAT'S YOUR PAYMENT OUT IN CHEER. OKAY. AND THAT'S LEVELED IT OFF THAT MUCH. WELL, YOU DIDN'T EVEN AGREE WITH THAT NUMBER SHOW. THERE WAS A LOT OF OUR, WE NOW IN THAT, UH, 2016 RANGE THEN HAD WHEN RATES WERE PROBABLY ABOUT THREE AND A HALF PERCENT OR SO, AND THEN COME BACK DOWN SOME SINCE THEN. SO WE REFUNDED RATHER THAN ANY NEW ISSUES OR A NEW FACILITY [00:30:01] SEVEN YEARS. WELL, I WOULD'VE JUST THOUGHT THAT WITH THE RIVER, MY FIRE STATION, AT LEAST THAT WOULD'VE BUMPED IT, BUT IT DOESN'T, IT WAS ENOUGH OF A REFUND. OKAY. THANK YOU. OKAY. THERE'S A CHART IN HERE THAT SHOWS THOSE NUMBERS BACK IN THE BACK. SEE THE DEBT PART BACK HERE. YES, THAT'S, THAT'S A GOOD POINT. DR. DAILY DOES HAVE GOOD HISTORICAL INFORMATION. IT'S ACTUALLY PRESENTED OVER 10 YEARS. UM, AND SO THIS GIVES, YOU KNOW, A SIX YEAR OUTLOOK, UH, THE INFORMATION THAT'S PRESENTED AND THEN IN THE STATISTICAL TABLES IS OVER 10 YEARS. SO THE NEXT, UH, GRAPH HERE, UM, IS A TREND ANALYSIS OF THE MAJOR REVENUE CATEGORIES. UM, THE, THE TOP LINE THERE IS, AS YOU WOULD SUSPECT GENERAL PROPERTY TAXES, UM, INCREASED, UH, YOU KNOW, A STEADY INCREASE, UH, SINCE THE BEGINNING OF THIS, UH, THE DATE THAT, THAT THIS CHART BEGINS WITH 2015, UM, INTERGOVERNMENTAL REVENUES IS THE LIGHTER BLUE COLOR UNDERNEATH THAT THAT'S FEDERAL AND STATE REVENUES. UM, THEY'VE MOSTLY STAYED FAIRLY FLAT FROM, UH, YOU KNOW, UH, A $10 MILLION VIEW, I GUESS. UM, UH, AND THEN THE, THE ORANGE COLOR UNDER THAT IS THE OTHER LOCAL TAXES WITH SLIGHT UPTICK FROM, FROM ONE YEAR TO THE NEXT, UH, THE, THE GREEN UNDER THAT IS CHARGES FOR SERVICES, UH, RELATIVELY STABLE AND ALSO THE, AND FINALLY THE, THE BROWN COLOR AT THE VERY BOTTOM ARE THE PERMITS PRIVILEGED FEES AND REGULATORY LICENSES AGAIN, UM, FAIRLY STABLE, UH, LOOKING AT IT FROM THIS PERSPECTIVE. OKAY. UM, SO THIS, THIS TREND INFORMATION HERE, UM, SHOWS THE REAL PROPERTY ASSESSMENTS VERSUS THE OUTSTANDING DEBT. UM, NOW THERE IS A, UH, IN THE CODE OF VIRGINIA, UH, CITIES AND TOWNS. AND SO THIS IS NOT APPLICABLE TO THE COUNTY, BUT GENERALLY SPEAKING CITIES, CITIES AND TOWNS CANNOT ISSUE DEBT. THAT IS AN EXCESS OF 10% OF THEIR REAL PROPERTY ASSESSMENTS. UM, AND SO AS YOU CAN SEE HERE, UM, IF YOU'RE USING THAT AS A, AS JUST A GENERAL TYPE OF ASSESSMENT AND, AND BENCHMARK, I, UM, YOU CAN SEE HERE THAT AS OF 2020, UM, IT WAS ABOUT TWO AND A QUARTER PERCENT. UM, AND SO YOU'RE WELL BELOW THAT RANGE, THAT AGAIN IS NOT APPLICABLE TO THIS COUNTY. UM, BUT, UH, UH, AS WELL BELOW THAT, UH, LEVEL. SO THE LAST SECTION OF THE COUNTY COMPREHENSIVE FINANCIAL REPORT IS THE COMPLIANCE SECTION, UH, STARTS ON PAGE ONE 76. UM, IT GOES THROUGH PAGE, UH, WELL, THIS, IT GOES THROUGH PAGE ONE 79, UM, ALL THE WAY ACTUALLY THROUGH THE END OF THE REPORT, WHICH IS ONE 85, I BELIEVE. UM, SO THE FIRST, UH, OPINION THAT WE HAVE IS OUR OPINION ON INTERNAL CONTROLS OVER FINANCIAL REPORTING. AND THIS IS THE ONE IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS. WE DID NOT HA NOTATE ANY SIGNIFICANT DEFICIENCIES. HOWEVER, UH, THERE WERE TWO, UH, MATERIAL WEAKNESSES THAT WE NOTED, UM, AND THEY ARE DETAILED ON PAGE ONE 84 OF THE FINANCIAL REPORT DOCUMENT. UM, THE FIRST ONE, UM, IS A MATERIAL WEAKNESS AS A RESULT OF MATERIAL AUDIT ADJUSTMENTS THAT, UH, WERE PROPOSED BY US, THE AUDITORS, UM, AND THE SECOND MATERIAL WEAKNESS WAS, UM, INADEQUATE YEAR END CONTROLS OVER CAPITAL ASSETS AND PROJECTS AND, UH, LONG-TERM OBLIGATIONS. UM, AND ESSENTIALLY WHAT WE HAVE RECOGNIZED IS THE FACT THAT THERE WAS A SIGNIFICANT AMOUNT OF TURNOVER, UM, ESPECIALLY AT THE VERY END OF THE YEAR AND GOING INTO THE PERIOD WHERE WE WERE BEGINNING OUR AUDIT. UM, WE CERTAINLY RECOGNIZE THAT FACT. AND THE FACT OF THE MATTER IS WHEN WE, YOU KNOW, CAME TO, UH, START OUR AUDIT IN OCTOBER, THERE WAS NOT A FULL-TIME FINANCE DIRECTOR IN PLACE. AND FOR THAT REASON, A LOT OF THE WORK THAT WAS PREVIOUSLY DONE BY, UM, THE FINANCE DEPARTMENT AND MOST, UM, INTEGRALLY, UH, BY A, UH, FINANCIAL CONSULTANT WHO WAS PREVIOUSLY A FINANCE DIRECTOR HERE, UM, UH, THAT WAS NOT DONE, UH, BECAUSE THAT POSITION WAS NOT IN PLACE, UH, WHEN WE CAME TO BEGIN OUR AUDIT AND THROUGHOUT MOST OF THE AUDIT PROCESS, [00:35:01] UM, NOW WHEN, WHEN, WHEN KEITH CAME ON BOARD AND ANDRE DID A GREAT JOB AS WELL IN THE, IN THE, IN THE CAPACITY THAT HE COULD, UM, BEING IN THE PART-TIME POSITION, NO, IT WAS DIFFICULT FOR HIM. AND, AND I APPRECIATE HIS, HIS EFFORTS AND HIS HELP IN THAT PROCESS. UM, WHEN KEITH CAME ON BOARD, THINGS STARTED ROLLING, UM, AND WE WERE ABLE TO GET A LOT OF THE INFORMATION THAT WAS STILL OUTSTANDING. UH, ONCE KEITH CAME ON BOARD, UM, TO GET, TO GET THE INFORMATION FOR US. UM, AND SO ESSENTIALLY THE ISSUES THAT WE HAD OVER, UH, THE MATERIAL WEAKNESSES, YOU KNOW, WE'VE HAD, UH, IN-DEPTH CONVERSATIONS WITH KEITH AND WE, WE FIRMLY BELIEVE THAT 2020 IS A ONE-OFF ISSUE THAT WILL NOT RE UH, YOU KNOW, RECUR IN THE FUTURE. UM, UH, BUT UNFORTUNATELY IT WAS, IT WAS AN ISSUE FOR FISCAL YEAR 2020. IS THAT THE FIRST TIME THAT THAT HAS BEEN A DEFICIENCY? YES, YES, IT HAS. UM, AND MOSTLY, LIKE I SAID, BECAUSE PREVIOUSLY THERE WAS A, YOU KNOW, AN INTEGRAL PIECE OF THE AUDIT PROCESS WAS HAVING, UM, THE FINANCIAL CONSULTANT IN PLACE WHO DID A LOT OF THE WORK FOR GETTING EVERYTHING PREPARED AND ALSO HAVING A FULL-TIME FINANCE DIRECTOR, UM, TO, TO GET EVERYTHING PREPARED FOR US FOR, FOR THE AUDIT, UM, EACH YEAR, UM, WHICH AGAIN, THE, THE, THOSE POSITIONS WERE, WERE NOT IN PLACE, UM, IN OCTOBER, UM, AND INTO NOVEMBER WHEN WE WERE DOING THE ACTUAL AUDIT AND THEN THE OTHER, UH, AUDIT REPORT THAT WE HAVE THE LAST AUDIT REPORT THAT WE HAVE STARTS ON PAGE ONE 78, IT'S OUR REPORT ON THE UNIFORM GUIDANCE, WHICH IS OUR FEDERAL COMPLIANCE REPORT. UM, WE SINGLE AUDITED, UH, THE FEDERAL PROGRAMS, UH, CHILD NUTRITION CLUSTER, AND ALSO THE SPECIAL EDUCATION CLUSTER. UM, AND WE HAD NO INSTANCES OF NON-COMPLIANCE TO REPORT OVER OUR AUDIT OF THOSE TWO PROGRAMS. DO YOU HAVE ANY INFORMATION AROUND BOND RATING? I DO NOT HAVE ANY INFORMATION ON YOUR BOND RATE. NO, SIR. UM, THERE, UH, IT'S MY UNDERSTANDING THAT, THAT, THAT THE BOND RATING IS STILL AS IT WAS IN PRIOR YEARS. UM, BUT I BELIEVE THAT WOULD BE A QUESTION. YES, IT IS WHAT IT IS RIGHT HERE AT THIS POINT. OUR TOTAL COUNTY DEBT IS $147,968,288. SO IF YOU LOOK UP, THERE'S ACTUALLY A NOTE THAT, UM, IS A LITTLE MORE HELPFUL THAN THAT STATISTICAL TABLE. IF YOU LOOK AT NOTE SEVEN, STARTING ON PAGE 58, THIS IS A, UM, UH, SCHEDULE AND TABLE OF THE OUTSTANDING OBLIGATION LONG-TERM OBLIGATIONS OF THE COUNTY. UM, AS YOU CAN SEE GENERAL OBLIGATION BONDS, APPROXIMATELY 44 MILLION LEAST REVENUE BONDS, 84, 8 MILLION, UM, REVENUE, BONDS, AND, AND, AND, AND THEY'RE BELOW NOTES PAYABLE, LINES OF CREDIT, UH, OR LINE OF CREDIT. AND THEN, UM, THEN, AND SOME OF THE INFORMATION THAT'S REPORTED HERE, FOR EXAMPLE, NET OPEB, LIABILITIES, AND NET PENSION LIABILITIES, UM, THOSE ARE ACTUARILY DETERMINED. UM, AND SO EACH YEAR, UM, UH, THE, THE VRS, UH, HIRES AN ACTUARY TO, UH, TO, UH, COME UP WITH THE FIGURES TO REPORT FOR THE NET PENSION LIABILITY OF EACH LOCALITY, UM, THROUGHOUT THE COMMONWEALTH WHO PARTICIPATE IN THE V IN THE VIRGINIA RETIREMENT SYSTEM, THEN THERE'S ALSO A STANDALONE PLAN THAT THE COUNTY HAS FOR RETIREE HEALTH INSURANCE, UM, WHICH IS CONSIDERED TO BE AN OTHER POST-EMPLOYMENT BENEFIT LIABILITY. UM, AND THE COUNTY CONTRACTS WITH, UH, AN EXTERNAL ACTUARY TO PROVIDE FIGURES ON, UH, ON THAT LIABILITY. WHY THE TOTAL OF THE ONE 52 OR ONE 55 THAT WAS GOING TO BE MY QUESTION, BECAUSE READING THIS, THIS IS 155 MILLION THAT'S THAT'S RIGHT. AND IT'S BECAUSE THE TABLE ON ONE 68 DOES NOT INCLUDE ANY OF THE, UH, [00:40:01] LIKE OPEB LIABILITIES OR PENSION LIABILITIES THAT I WAS MENTIONING PREVIOUSLY AND ALSO CAP COMPENSATED ABSENCES. SO THEN OUR TRUE DEBT IS 155 PLUS MILLION. YES, THAT'S ARE THE LONG-TERM OBLIGATIONS OF THE COUNTY AS OF JUNE 30, 20, 20. NOW, ONE THING I DO WANT TO BRING TO YOUR ATTENTION IS THAT, UM, YOU KNOW, OVER 5 MILLION OF THAT AMOUNT IS FOR YOUR NET PENSION AND OPEB LIABILITIES, AND THAT FLUCTUATES PRETTY SIGNIFICANTLY FROM ONE YEAR TO THE NEXT, AND IT'S VERY MUCH BASED ON MARKET CONDITIONS. UM, AND SO, AND, AND JUST TO PROVIDE YOU WITH, UM, KIND OF SOMETHING TO LOOK AT AS IT RELATES TO THAT, IF YOU LOOK IN NOTE, NOTE NINE, UM, AND LOOK ON PAGE 77, EXCUSE ME, THAT'S THE, THAT'S THE SCHOOL BOARD. I APOLOGIZE ON PAGE 71, THE VERY BOTTOM IT'S A SENSITIVITY ANALYSIS OF THE NET PENSION LIABILITY. SO FOR FISCAL YEAR 2020, THE DISCOUNT RATE THAT THE ACTUARIES USED WAS 6.75%, AND THAT PRODUCED A $4.3 MILLION NET PENSION LIABILITY. HOWEVER, IF YOU TAKE THAT PERCENTAGE, THAT DISCOUNT RATE AND YOU INCREASE IT BY ONE PERCENTAGE POINT TO 7.75, ALL OF A SUDDEN THE COUNTY HAS AN ASSET, AN ASSET OF $877,000. IF YOU DECREASE THAT PERCENTAGE POINT BY ONE PERCENTAGE POINT, UM, THE, THE LIABILITY MORE THAN DOUBLES. UM, AND SO IT REALLY IS, IT'S A VERY FINICKY NUMBER, I GUESS, UM, THAT IS SO FLUID. UM, IT'S BECAUSE IT'S SUBJECT TO MARKET CONDITIONS. UM, AND SO BECAUSE THE, YOU KNOW, THE, THE, THE VIRGINIA RETIREMENT SYSTEM, UM, INVEST IN A POT OF, UH, YOU KNOW, FUNDS ON THE STATE LEVEL AND THEY INVEST IT IN CERTAIN, UM, UH, INSTRUMENTS THAT ARE SUBJECT TO VOLATILITY AND FLUCTUATION FROM ONE YEAR TO THE NEXT IT'S. I JUST DON'T UNDERSTAND HOW WE CAN GO 1% INCREASE AND, AND DROP 4 MILLION, OR ACTUALLY 5 MILLION, BECAUSE YOU'RE, YOU'RE THE TWO NUMBERS TOGETHER WOULD BE OVER $5 MILLION IN A DIFFERENTIAL. THAT'S INTERESTING. AND SO ESSENTIALLY THE, THAT NET LIABILITY IS STRUCTURED WHERE THERE IS A TOTAL LIABILITY, WHICH IS YOUR, AND YOU CAN ACTUALLY SEE IT ON THE PAGE, RIGHT BEFORE THAT IT'S PAGE 70, UM, YOUR TOTAL PENSION LIABILITY, UH, $47.975 MILLION. AND THEN THERE'S A PLAN FIDUCIARY NET POSITION, WHICH THOSE ARE YOUR ASSETS THAT ARE IN PLACE TO COVER THE NET PENSION LIFE, OR THE, EXCUSE ME, THE TOTAL PENSION LIABILITY, BRINGING YOUR NET PENSION LIABILITY TO $4.3 MILLION. AND THAT DISCOUNT RATE BASICALLY CHANGES THAT FIDUCIARY NET POSITION, YOU KNOW, IT CHANGES YOUR NET INVESTMENT INCOME, UM, UH, BECAUSE OF HOW THE MARKET, YOU KNOW, HAS, UH, REACTED IN THE PAST YEAR. UM, AND ONE OTHER IMPORTANT THING TO NOTE, AND I HOPE IT DOESN'T CONFUSE THE MATTER MORE, BUT THE ACTUARIES DON'T GET THE INFORMATION FOR REPORTING IN REAL TIME. THE INFORMATION THAT YOU'RE SEEING HERE IS REPORTED A YEAR BEHIND. OKAY. AND SO, AS YOU CAN SEE HERE, THE BALANCES THAT ARE REPORTED ARE BALANCES AT JUNE 30, 2019, BUT THEY'RE FOR THE REPORTING PERIOD, JUNE 30, 2020. AND THAT IS STANDARD THAT STANDARD ACROSS ALL PLANS IN THE VIRGINIA RETIREMENT SYSTEM. WELL, THAT'S CLEAR AS MUD. YES, IT IS. DID YOU GO AND HELP ME FOR JUST A SECOND, BUT IF EVERYBODY WAS GOING TO RETIRE AND WE HAD NO INVESTMENT, NO RESERVE OR ANYTHING, WE WOULD OWN ALMOST 70, ALMOST $48 MILLION TO OUR EMPLOYEES. NO. AND THE ONLY REASON I SAY THAT IS BECAUSE THERE IS FIDUCIARY NET POSITION IN PLACE. THERE ARE ASSETS ON THE STATE LEVEL, CORRECT? THAT'S CORRECT. YES. IF THERE WERE NO ASSETS. YES. BECAUSE WE DO HAVE THE ASSETS IN THE AIR AND WE CONTRIBUTE, YOU SEE THE CONTRIBUTIONS BY THE EMPLOYER AND THE EMPLOYEE ARE GOING TO BE SIMILAR RATES HERE, ALONG WITH THE INCOME. WE HAVE ESTIMATED 43 SEVEN IN ASSETS AREA IN OUR ACCOUNT, IF YOU WILL. AND SO IF WE, IF IT STAYS IN THERE, OR WE WIDOW 4 MILLION, 300,000 NOW NEXT WEEK, THE MARKET, AND EVERYTHING'S GOING TO CHANGE MAYBE, YEAH. MAYBE NOW IT'S BEEN CHECKED. AND SO WHEN IT CHANGES, THAT'S GOING TO CHANGE THE NUMBER, WHAT WE KNOW, AND THAT'S WHAT THAT 1% FLEXIBILITY. IF YOU [00:45:01] WERE GOING TO HAVE TO PAY THIS AT ONE TIME, IT WOULD BE, YOU'D GO BACK TO THIS WHERE THE DAY OVER TIME USING THE, OR THE, FOR ALL ME, OR IT'S GOING TO CHANGE, AND WE'RE GOING TO CONTINUE TO CONTRIBUTE EACH YEAR. CORRECT. AND AS LONG AS WE'RE ARE KIND OF LIKE SOCIAL SECURITY MANAGER, WHERE YOUR WORKERS SUPPORT THE RETIREES, AS LONG AS YOU BALANCE THAT AND DON'T USE ANY PLACE ELSE. YOU'RE OKAY. YOU DO HAVE A BIG LIABILITY AS LONG AS EVERYBODY'S COUNTRY WORKING CONTINUES. RIGHT? SO THESE ARE FUNDED PENSIONS. DR. DAILY'S IS UNFUNDED ONES. IF YOU COULD TALK CLOSER TO YOUR MIC, THOSE THAT ARE STREAMING CAN HEAR YOU VERY WELL. I'M GETTING TEXTS THAT WE CAN'T HEAR YOU. SO, UM, YEAH, AND, AND THIS IS CERTAINLY NEW TO, UM, A LOT OF FOLKS. AND, UM, THE REASON BEING IS THAT IT WAS NOT REQUIRED TO BE REPORTED UNTIL FIVE YEARS AGO. UM, F Y 16 WAS THE FIRST YEAR THAT IT WAS REQUIRED TO BE REPORTED IN THIS WAY. UM, AND SO PRIOR TO THAT, THE LOCALITY LOCAL GOVERNMENT FINANCIAL STATEMENTS DID NOT INCLUDE, UM, YOU KNOW, THIS SIGNIFICANT OF A NOTE, DISCLOSURE AND SIGNIFICANT OF, UH, UH, UH, FINANCIAL REPORTING REQUIREMENTS, UM, ON THAT LEVEL. AND IT WASN'T CONSIDERED A TECHNICAL LIABILITY OF THE LOCAL GOVERNMENTS BEFORE THEN. UM, BUT TECHNICALLY IT SHOULD BE, AND THAT'S WHAT THE, THE GASBY DID IN THAT YEAR TO CHANGE THAT. THANK YOU. YOU'RE WELCOME. THAT'S THE PRESENTATION THAT I HAVE FOR YOU ALL. UM, I AM, I MOST CERTAINLY WELCOME YOUR QUESTIONS AND ANY OTHER COMMENTS THAT YOU HAVE? WELL, I'M HERE, I AM READING HERE UNDER, UM, YOUR FINANCIAL FINDINGS AND IT SAYS UNDER CAUSE THE COUNTY FAIL TO IDENTIFY AND RECORD ALL YEAR END ACCOUNTING ADJUSTMENTS NECESSARY TO PREPARE IN. SO WHAT ADJUSTMENTS ARE YOU TALKING ABOUT? I UNDERSTAND THAT YOU SAID, YOU THOUGHT PART OF IT WAS NOT HAVING A DIRECTOR, BUT IF WERE ADJUSTMENTS, WHAT WERE THOSE ADJUSTMENT? RIGHT. SO IF YOU LOOK AT THE VERY FIRST LETTER THAT WE WENT OVER, IT'S, THERE'S THE, THERE'S A SECOND PAGE THERE. UM, FOR CORRECTED AND UNCORRECTED MISSTATEMENTS, I HAVE LISTED HERE IN SUMMARY FORM, THE, THE ADJUSTMENTS THAT WE CONSIDER TO BE MATERIAL IN NATURE THAT WE HAD TO PROPOSE AS PART OF THE AUDIT. UM, BUT MOSTLY, UH, THE LARGEST ADJUSTMENT WE HAD TO MAKE, EXCUSE ME, WAS, UM, RELATED TO THE BOND ISSUANCE, UH, THE, THE ADVANCED REFUNDING, UM, 2019 C ADVANCED REFUNDING. UM, WE HAD TO RECORD, UM, THE TRANSACTIONS RELATED TO THAT. UM, AND ALSO RELATED TO THAT IS THE INFORMATION REPORTED IN THE SNAP ACCOUNTS. UM, THESE ARE ACCOUNTS THAT ARE, UH, THAT HOLD THE BOND PROCEEDS. UM, AND THESE, BECAUSE OF THE TURNOVER THAT WAS HAPPENING IN THE FINANCE OFFICE, UM, THESE STATEMENTS WERE NOT BEING FORWARDED TO THE TREASURER'S OFFICE AND THEREFORE THE TRANSACTIONS THAT FLOAT THROUGH THESE STATEMENTS WERE NOT BEING RECORDED. AND SO WE HAD TO PROPOSE JOURNAL ENTRIES TO RECORD THAT INFORMATION. UM, ADDITIONALLY, UH, AN ENTRY THAT, UM, IN THE PAST THE FINANCE DEPARTMENT HAD PROVIDED EVERY SINGLE YEAR WAS THE TAXES RECEIVABLE AND RELATED DEFERRED UNAVAILABLE REVENUE. UM, THAT JOURNAL ENTRY WAS NOT PROVIDED THIS YEAR FOR FY 20. AND WE HAD TO, TO PROPOSE THAT ENTRY AS WELL. AND THEN FINALLY THERE WAS AN ADDITIONAL ACCOUNTS PAYABLE THAT WAS MATERIAL THAT WE HAD TO PICK UP AS IT RELATES TO THE, UM, S ROADS, UH, CONSTRUCTION PROJECT. SO DR. DAILY, JUST FOR CLARIFICATION, THIS AUDIT DOESN'T INCLUDE THE EDA, WHICH MEANS IT DOESN'T INCLUDE THE EDA DAD EITHER DOES NOT INCLUDE EDA DEBT. IT INCLUDES THE EXPENDITURES BY THE COUNTY FOR THE EDA ON B, BUT IT DOES NOT INCLUDE THE EDA DEBT SEPARATE. SO THAT MEANS THAT THE LIABILITIES ARE HIGHER FOR THE COUNTY, BECAUSE WE'RE BASICALLY ASSUMING [00:50:01] THE RESPONSIBILITY FOR THE DEBT AT THIS POINT. THAT'S CORRECT. SO WHEN, WHEN WE DO AN AUDIT LIKE THIS, I GUESS MY, MY THOUGHT ON WHAT THIS AUDIT WAS WAS THAT YOU LOOKED AT ALL THE BOOKS AND MADE SURE THAT ALL THE COLUMNS MATCHED UP ALL THE PENNIES WERE WHERE THEY WERE SUPPOSED TO BE, AND NOT NECESSARILY WHAT YOU DO, CORRECT, OR THAT'S CERTAINLY WHAT WE DO, UH, FROM A MATERIAL VANTAGE POINT MATERIAL ASPECT, UM, UH, YOU KNOW, KIND OF WHAT I WAS EXPLAINING THE PROCESS EARLIER, THAT'S, THAT'S A VERY KIND OF, UM, A SIGNIFICANT PIECE OF OUR AUDIT, BUT VERY, UM, UH, IT'S, IT'S ONLY ONE OF THE ITEMS THAT WE DO. WE DO NUMEROUS, YOU KNOW, PROCEDURES OVER THE FINANCIAL STATEMENTS, UM, AND ESSENTIALLY, YOU KNOW, ON THE BALANCE SHEET, UM, WE, WE RECONCILE ALMOST EVERY, EVERY, UH, ACCOUNT THAT'S REPORTED ON THE BALANCE SHEET. WE RECONCILE ALL CASH ACCOUNTS. WE MAKE SURE THOSE ARE RECONCILED, LOOK AT THE BANK RECONCILIATIONS. UM, OBVIOUSLY WE PUT TOGETHER, YOU KNOW, UH, WE RECONCILE THE CAPITAL PROJECTS, THE, THE, UH, LONG-TERM OBLIGATIONS, THE DEBT SERVICE OBLIGATIONS OF THE COUNTY, UM, THE LIABILITIES, OTHER LIABILITIES, LIKE ACCOUNTS PAYABLE, UM, ON AVAILABLE REVENUE, PROPERTY TAXES. UM, WE DO A NUMBER OF DIFFERENT PROCEDURES OVER THE FINANCIAL STATEMENTS. UM, AND WE ALSO DO, UH, COMPLIANCE PROCEDURES. WE'RE REQUIRED TO DO CERTAIN PROCEDURES, UM, FOR STATE COMPLIANCE, UH, COMPLIANCE WITH THE CODE OF VIRGINIA AND ALSO FOR FEDERAL COMPLIANCE, UH, WITH, UH, AN ACCORDANCE WITH THE UNIFORM GUIDANCE. BUT AS FAR AS LOOKING AT WHAT WE BUDGETED FOR INDIVIDUAL DEPARTMENTS AND SEEING IF THEY STAYED WITHIN THEIR BUDGET, THAT'S NOT NECESSARILY WHAT YOU LOOK AT AND IF THERE WAS OVER EXPENDITURES WELL, WELL, WE CERTAINLY LOOK AT THAT IN A HOLISTIC, YOU KNOW, IN A HOLISTIC VIEW. UM, YOU KNOW, WE, WE CERTAIN CERTAINLY WILL QUESTION THE FACT THAT, YOU KNOW, HEY, THIS DEPARTMENT, UM, EXCEEDED THEIR, YOU KNOW, A LOT OF EXPENDITURES. UH, WHY IS THAT? IS THERE SOMETHING THAT, THAT HAPPENED, UM, FOR PURPOSES OF, YOU KNOW, MAKING SURE THAT THE FINANCIAL STATEMENTS ARE REPORTED IN A MATERIALLY CORRECT WAY. UM, AND WE ALSO ACTUALLY DISCLOSE THE NOTE, UM, FOR OUR FINDINGS QUOTE UNQUOTE, UM, AS IT RELATES TO THAT ANALYSIS. AND THAT IS NOTE, LET'S SEE, I BELIEVE IT'S NOTE ONE ON PAGE 47. NO, THE, THE, THE MONETARY VALUE IS NOT THERE. IT CAN BE FOUND ON SCHEDULE TWO OR EXHIBIT 12. UM, WE LIST THE DEPARTMENTS AND THE GENERAL FUND THAT WE SAW TO HAVE EXPENDITURES AND ACCESS OF APPROPRIATIONS. HMM. SO HOW DO WE OVERRUN THAT MANY DEPARTMENTS? HOW, I MEAN, WE DON'T BUDGET THAT THEN WE HAD TO BE RUNNING OVER WHEN WE, THE TOTAL BUDGET, NOT NECESSARILY THE TOTAL, NOT NECESSARILY THE TOTAL BUDGET MA'AM, BUT HE, WHAT HE'S SAYING IS THAT THESE INDIVIDUAL DEPARTMENTS OR CATEGORIES SUCH AS DEBT SERVICE INTEREST WAS HIGHER THAN WHAT WAS BUDGETED. THAT DOESN'T MEAN THAT THE, IF YOU LOOK AT THE ENTIRE BUDGET SCHEDULE TOO, YOU CAN LOOK AT SCHEDULE TWO. YOU CAN ALSO LOOK AT, UH, EXHIBIT 12, EXHIBIT 12 HAS BOTH REVENUES AND EXPENDITURES, AND THAT'S THAT'S PAGE ONE OH FIVE. THANK YOU. SO YOU CAN SEE THERE, THE LISTING OF THE DEPARTMENT CATEGORIES, UM, BY BUDGET AND ACTUAL, AND ALSO THE VARIANCE OF THE ACTUAL TO BUDGET. SO DO WE HAVE A LINE ITEM WITHOUT HAVING TO GO THROUGH AND WHERE IT SAYS, WHERE WE STARTED AND WELL TAKE THE BOARD OF SUPERVISORS? YEAH. YEP. YEP. AND IF YOU LOOK AT THAT LINE, THE ORIGINAL BUDGET WAS 237,000, [00:55:02] AND THAT WAS REVISED TO 1 MILLION, 300,000 AND THE ACTUAL EXPENDITURES WERE 2 MILLION, 400,000. SO THE DEFICIT FOR THE BOARD OF SUPERVISORS WAS 1,039,000. AND THAT'S HOW YOU READ THESE ACROSS RIGHT. UM, COME DOWN THE ELECTORAL BOARD, IT WAS THREE OH SEVEN AND IT WAS AMENDED TO THREE 14 AND THEY SPENT TWO 62. SO THE NET WAS A POSITIVE 52 BACK OVER ON THE NEXT PAGE. IF I CAN FIND IT HERE, UH, I'M LOOKING FOR THE GENERAL FUND TOTAL. SO IT'S WHAT I'M LOOKING FOR. THAT WOULD BE, UM, ON PAGE ONE OH SEVEN, BECAUSE THE EXHIBIT 12 IS JUST THE GENERAL FUND. YEP. SO YOUR TOTAL EXPENDITURES, THEIR ORIGINAL BUDGET, 79.849 MILLION AMENDED BUDGET, 86.55 AND ACTUAL EXPENDITURES WAS 84 MILLION. SO THE ENTIRE GENERAL FUND WAS 2 MILLION, 500,000 BELOW THE BUDGET, BUT THESE INDIVIDUAL DEPARTMENTS W AS INDICATED EARLIER, THEY ARE ON THE LIST, THEY WERE OLD IN CASE YOU'RE, YOU'RE WONDERING THE, THE, THE LEGAL FEES AND PROFESSIONAL FEES WERE BUDGETED IN THE BOARD OF SUPERVISORS DEPARTMENT. AND SO THAT'S THE, THE REASON FOR THE SIGNIFICANT OVERAGE THERE. AND THAT'S YOUR MOST SIGNIFICANT OVERTURE OF THE OTHERS ARE THEY'RE IMPORTANT, BUT THEY'RE SIGNIFICANTLY LESS SAY THAT AGAIN. UM, THE, THE LEGAL FEES AND THE OTHER PROFESSIONAL FEES THROUGHOUT THE YEAR WERE BUDGETED IN THE BOARD OF SUPERVISORS DEPARTMENT FOR . AND THAT'S WHY THERE WAS THIS SIGNIFICANT OVERAGE, UM, FOR THE FISCAL YEAR. SO DR. DALEY, THE DEBT SERVICE IS $953,000. UM, IT APPEARS TO HAVE BEEN ALMOST DONE LOOKING MA'AM I'M SORRY. PAGE ONE OH SEVEN. OKAY. UM, THIS IS UNDER GENERAL FUND THAT SAYS TOTAL DEBT SERVICE PRINCIPAL, UH, LET'S SEE DEBT SERVICE, AND THEN INTEREST. AND THEN TOTAL DEBT SERVICE IS AN IS $953,000 MORE THAN, THAN THE ORIGINALLY BUDGETED. YES. AND THAT'S, THAT'S IN THE EDA. NO, NO DEBT SERVICE THAT SERVICE. OKAY. SO THIS WOULD NOT BE, AND WE COULD GO BACK TO LOOK EXACTLY WHAT IT IS, BUT IT WOULD NOT BE THE DA. IT IS DEBT SERVICE THAT WE PAID IN. WE PAID A 900,000 MORE IN INTEREST THEN WAS BUDGETED THERE. WHY WOULD THAT BE? THAT'S ALMOST A MILLION DOLLARS. YES, IT IS. YOU REFINANCED IT OFF IN YOUR COMPETING INTERESTS. IT'S CALLED THE PAY DOWN. SO WHY DID YOU GOT THE BENEFIT OF A LOWER INTEREST RATE? AND THEN DAVENPORT WAS SHOWING YOU THAT YOU'RE GOING TO TURN ON THE MARKET AND SEE IF THERE'S A SAVINGS OF X FACTOR. WE MAY HAVE, WE HAVE INTEREST TO DO THE PAY DOWN ON YOU, FINANCING PRINCIPAL PAYMENTS. SO THE PRINCIPLE, IF YOU LOOK HERE, THE PRINCIPAL IN THE FUTURE WENT DOWN, BUT INTEREST HAVING PAID. SO THAT'S WHY YOUR NEGATIVE PLAN ON AN INTEREST PAYMENT WHEN BUILT A BUDGET, NOT KNOWING YOU WERE GOING TO GO, YOU DIDN'T KNOW YOU'RE GOING TO GO TO MARKET AND YOU FIND THAT THAT'S WHY THAT PURCHASED IT, BUT LONG-TERM, WE HAVE THE COST BENEFIT ANALYSIS THAT DAVENPORT DOES THAT SHOWS YOU IT'S STILL A SOUND REFINANCING. IT HITS THAT 6% NUMBER. OKAY. AND WHAT WE'VE, WHAT WE FAILED TO DO IS TO AMEND, HAVE, HAVE THE BOARD, AMEND THE BUDGET, TO SHOW THE HIGHER INTEREST PAYMENT SHORT TERM. AND THAT'S WHAT ALL OF THE THINGS IN THE FINDINGS PINE MARIE CIRCLE AROUND OUR, THAT WE HAD BONAFIDE EXPENDITURES, BUT WE DIDN'T HAVE THEM LISTED AND APPROVED ON THE BOARD APPROPRIATION. SO WE NEED TO MOVE AS WE MOVE FORWARD, WE NEED TO AMEND THAT PROCESS. THAT'S WHAT WE'RE DOING. YES MA'AM. OKAY. AND, AND I GUESS THAT'S WHAT I WAS GETTING TO IS THAT I DON'T KNOW ABOUT ANYBODY ELSE, BUT I WASN'T AWARE THAT WE HAD RAN OVER IN SO MANY CATEGORIES. AND WHEN YOU, YOU KNOW, THROUGH THE APPROPRIATIONS, IT WAS NOT MADE CLEAR THAT [01:00:01] WE HAD DONE THAT. AND THAT'S WHAT, AND I KNOW YOU PLAN ON FIXING THAT, AND THIS WON'T BE HAPPENING IN THE FUTURE, BUT, UM, YEAH, THIS IS WHAT WE'RE WORKING ON. WE'LL ADDRESS THAT FOR YOU, IS THAT PART OF THE SOFTWARE REPORTING ISSUE WHERE YOU CAN'T SEE REAL TIME, WHAT YOU'RE ACTUALLY WHAT YOUR ACTUAL BUDGET IS. SO YOU'RE KIND OF SHOOTING IN THE DARK AS TO WHERE YOU ARE. THAT'S WE SHOULD BE ABLE TO GENERATE MONTHLY REPORTS THAT COMPARE BUDGET TO ACTUAL, REGARDLESS OF THE GENERAL MANAGER, YOU'RE GOING TO HAVE TO GO TO THE MIC, JUST IN JOURNAL ENTRIES AND MADE THAT MIKE, WE CAN'T WAIT UNTIL THE FISCAL YEAR TO START RUNNING A BUDGET, ACTUAL REPORT TO GIVE YOU MONTHLY, WHICH WILL SHOW WHERE WE ARE. OKAY. AS LONG AS WE'RE RECTIFYING THE SITUATION, THEN YEAH. IF YOU LOOK AT THIS CHART THAT YOU GET EACH MONTH, THAT SHOWS YOU WHERE THE DEPARTMENT, EACH DEPARTMENT IS AND PERCENTAGE WISE AND COMPARES IT TO THE TWO PRIOR YEARS, THAT DOESN'T TELL YOU THE BUDGET PER SE, BUT IT DOES LET YOU SEE WHERE YOU ARE GOING IN THAT DEPARTMENT. AND THE NEXT STEP IN THAT IS TO HAVE A BUDGET TO ACTUAL EACH MONTH. IT SAYS IT IS THE SEVENTH MONTH. WE ARE AT 60% OF EXPENDITURES AS AN EXAMPLE. OKAY. AND JUST A SIDE NOTE AS IT RELATES TO THE 20 VARIANCES OR OVERAGES, UM, YOU KNOW, A LOT OF TIMES THESE, THESE, UH, NOT A LOT OF TIMES THESE FIGURES, THE ACTUAL FIGURES INCLUDE YEAR END ACCRUALS, UM, WHICH USUALLY DON'T GET FINALIZED UNTIL THE END OF AUGUST INTO SEPTEMBER. UM, AND SO I THINK I HATE TO HARP ON THIS ISSUE, BUT I THINK THE FACT THAT THERE WAS NO, YOU KNOW, FINANCE DIRECTOR IN PLACE OR ANYBODY IN PLACE TO BE ABLE TO PRESENT THIS TO THE BOARD AFTER A LOT OF THE ACCRUALS CAME INTO PLAY, UM, DEFINITELY DID NOT, YOU KNOW, HELP THE PICTURE, I GUESS. UM, BUT OBVIOUSLY THAT PROBABLY DOESN'T EXPLAIN THE ENTIRE $1 MILLION DISCREPANCY, UM, UH, FOR THE LEGAL FEES. BUT YEAH, JUST, JUST WANTING TO GIVE THAT SIDE NOTE, IF I MAY, MIKE AND I HAVE MET WITH DR. DELI AND WE HAVE NO ISSUES WITH HIS FINDINGS, WE THINK THEY'RE ACCURATE. WE ALSO HAVE BEEN TALKING ABOUT HOW TO IMPLEMENT AN ENCUMBRANCE SYSTEM, WHICH WILL ALSO GET US BETTER YEAR-END NUMBERS, BECAUSE IF WE HAVE AN ENCUMBRANCE SYSTEM, WE KNOW WHAT OUR LIABILITY IS OR SHOULD KNOW BY JUNE 30TH, NOT WAIT FOR PURCHASE ORDERS TO COME IN IN THAT 90 DAY WINDOW FROM JUNE 30TH OF SEPTEMBER 30TH. UM, THEREFORE WE BELIEVE BETWEEN THE MONTHLY REPORTS OF BUDGET TO ACTUAL IMPLEMENTING AND CONFERENCES AND TIMELY RECONCILIATIONS, YOU'LL HAVE A BETTER PICTURE OF A ROADMAP RIGHT NOW. YOU'RE, YOU'RE FLYING BLIND. WE'RE ALL FLYING BLIND UNTIL MARCH. SO HOPEFULLY WITH THE MONTHLY REPORTS WE GIVE YOU, WE KNOW THAT YOU'LL HAVE BETTER VISION ON YOUR DASHBOARD, ON HOW TO NAVIGATE THE END OF THE YEAR. OUR GOAL IS IF WE GO OVER, WE'RE GOING TO COME BACK WITH A TRANSFER, RIGHT? SO WE HAVE TO FIND, WE HAVE TO COME TO YOU AND SAY, LOOK, WE'RE GOING TO BE OVER IN THIS LINE. AND HERE'S WHERE WE'RE GOING TO TRANSFER THE MONEY. SO WE'RE NOT OVER WHAT MIKE MENTIONED IS THE END OF THE YEAR ACCRUALS OF WHAT WE HAVE TO WHAT'S THE VULNERABILITY. THERE MAY BE SOMETHING HE ACCRUES THAT WE DON'T TIME IN JUNE ON A CASH BASIS THAT COULD MAKE AN ACCOUNT GO OVER AND WE'LL EXPLAIN THAT TO YOU, WHY IT WENT OVER. SO THERE WILL BE THE POTENTIAL FOR SOME MINOR OVERAGES, IF YOU WILL, IN A HUNDRED MILLION DOLLAR BUDGET, THAT THE FACT THAT SOMEBODY IS 11,000 OVER IS IMPORTANT, BUT IT'S NOT NEARLY AS SIGNIFICANT AS BEING A MILLION OVER, RIGHT. AND THE MILLION OVER WILL NOT HAPPEN. THERE MAY AT THE BUTTON, WE'LL PROBABLY BE TALKING ABOUT CLOSING OUT OUR ENCUMBRANCES EARLY JUNE, AND THERE WON'T BE ANY THE LAST WEEK OF JUNE, UH, TO BE DONE THERE. AND IF YOU DIDN'T GET YOUR CAR, YOU'RE GOING TO HAVE TO WAIT A YEAR. UH, BUT THAT SHOULD HELP TO ADDRESS A LOT OF THESE. AND, UH, SOME OF THOSE ARE JUST GOING TO HAPPEN IN THAT MATTER. IF YOU LOOK THE PROPERTY TAX FOR THE ELDERLY, WE DON'T BUDGET THAT TILL THE END OF THE YEAR. SO IT SHOWS UP THAT THERE'S AN ACTUAL AND NO BUDGET. I THINK THEY'RE TRYING TO BUMP OUR HORSES UP. THEY'RE TWEAKING IT. OKAY. [01:05:10] DO YOU HAVE ANY OTHER QUESTIONS OR COMMENTS FOR ME AT THIS TIME? THANK YOU VERY FOR EXPLAINING ALL THAT YOU DID. ABSOLUTELY NO PROBLEM OF ROOKIE AT THE ONE OTHER QUESTION, MICHAEL MIGHT BE THE, I GAVE THEM A COPY OF THE FUND BALANCES FOR THE LAST 10 YEARS FROM THE AUDIT REPORT, RIGHT. AND THE LAST COUPLE OF YEARS, THE UNASSIGNED BALANCE IS DIFFERENT FROM THE ENDING YEAR BALANCE. AND, BUT IN THE EARLIER, LIKE 2011, 12, 13, ET CETERA, THEY ARE IDENTICAL. RIGHT. IF YOU COULD TALK TO THAT FOR THEM. SURE. ABSOLUTELY. SO IF WE, IF WE COULD TURN THE PAGE, UH, 33 FOR, FOR THAT DISCUSSION EXHIBIT THREE. UM, SO AS WE WERE GOING OVER PREVIOUSLY, WHEN WE TALKED ABOUT THIS EXHIBIT, THE, THE FUND BALANCES, UM, HAVE DIFFERENT CATEGORIES, UM, AND THOSE CONSIST OF, FOR, FOR WARREN COUNTY, NON SPENDABLE, RESTRICTED, COMMITTED AND UNASSIGNED, UM, BEFORE FYI IN 18 OR FYI 19, I GUESS, IS, YOU KNOW, BASED ON THE SCHEDULE THAT YOU PRESENTED TO ME, UM, ALL OF THE RESTRICTIONS, NON SPENDABLE AND COMMITTED FUND BALANCES WERE IN THE OTHER GOVERNMENTAL FLATS. UM, THERE WERE NO RESTRICTIONS, COMMITMENTS OR UNSENDABLE OR NON SPENDABLE FUND BALANCE IN THE GENERAL FUND. ALL OF IT WAS UNASSIGNED PRIOR TO F Y 18, I THINK, UM, CAUSE ALL OF THE COMMITMENTS AND RESTRICTIONS WERE IN THE SPECIAL PROJECTS FUND, THE SCHOOL BOND CONSTRUCTION FUND, UM, AND THE OTHER GOVERNMENTAL FUNDS. AND THAT'S WHY THERE IS A, THAT'S WHY THE F THE UNASSIGNED FUND BALANCE WAS THE SAME NUMBER AS THE TOTAL FUND BALANCE BACK IN 2016 IS BECAUSE THERE WERE NO OTHER COMMITMENTS OR RESTRICTIONS ON THAT FUND BALANCE IN THE GENERAL FUND THAT YEAR. SO IF, IF YOU LOOK AT THE CHART, THE RED NUMBER YOU SEE FOR 2020, THAT 3 MILLION YOU'LL NOTICE THAT YOUR ENDING BALANCE WENT UP SIGNIFICANTLY UP $5 MILLION IN 2019 BECAUSE OF THE ISSUANCE OF BONDS. AND THEN IT DROPS BACK DOWN IN 2020, BECAUSE YOU SPENT THEM OUT CONSTRUCTION OF THE FIRE STATION AND THE WORK AT THE SCHOOL. SO IT MAKES IT THOUGH, BUT THE UNASSIGNED CUT ACTUALLY IN CROUP PROVES THIS LAST YEAR, IT IMPROVES 717,000. SO YOU HAVE THAT, THAT'S, THAT'S THE POSITIVE NOTE IS THAT YOU HAVE MORE, UH, UNASSIGNED MONEY THAT YOU SHOULD NOT SPEND, YOU COULD, UM, SITTING IN YOUR RESERVE. YEP. SO THAT UNASSIGNED MONEY IS THAT, THAT, UM, WHAT IS IT, 15% OR SOMETHING THAT WE SHOULD HAVE, THAT'S NOT A RAINY DAY FUND, BUT IT IT'S A REQUIREMENT. YES. IT'S A RAINY DAY FUND, RIGHT? IT IS YOUR IT'S REQUIRED IN YOUR BOND RATING. IT'S ONE OF THE THINGS THEY GRADE, UH, FOR THE BOND RATING. BUT IF YOU CHANGE FROM THAT, THAT DOES NOT A MATTINGLY MEAN THERE'S NO PENALTY FROM THE STATE OR SOMETHING THAT YOU BROKE SOME LEGISLATION, IT'S YOUR BOND RATING THAT SUFFERS. AND IT IS, IT REALLY IS IN ITS ESSENCE, YOUR RAINY DAY, IF, UH, IF THERE WERE NO CARES ACT FUNDING, UH, LYING OVER THE BLUE RIDGE, YOU WOULD BE PAYING FOR CARES, ACT YOURSELF, AND YOU WOULD BE USING SOME OF THAT MONEY. RIGHT. AND THIS FUND, THIS UNRESTRICTED ON ASSIGNED FUND BALANCE IS DIFFERENT FROM, UM, THE SPECIAL PROJECTS FUND BALANCE, WHICH IS 19,549,691. CORRECT. IT IS DEFINITELY DIFFERENT WHERE I DIDN'T SEE THE NUMBER IN IT'S. UM, IT'S ON THE SECOND LINE. OKAY. THAT'S IT? YES. YEAH. IT'S THE SECOND LINE UNDER SPECIAL PROJECTS. AND SO CAN YOU TELL ME, UM, HOW SPECIAL PROJECTS IT IS ASSIGNED APPROPRIATED THE PAST? YEAH. I'D LIKE TO, BECAUSE I BROUGHT MY LIST [01:10:01] OF SPECIAL PROJECTS. WELL, YOU EACH HAVE A LIST OF THOSE PROJECTS AND, UM, THAT MONEY HAS BEEN PUT IN THERE IN THE PAST, BY THE VARIOUS DEPARTMENTS, ALL FOR SPECIAL PROJECTS, WHATEVER THOSE PROJECTS MAY BE. NOW, SOME OF THOSE ARE THINGS THAT YOU WANT TO SAVE MONEY FOR. I BELIEVE THERE'S MONEY IN THERE FOR BUILDING INSPECTIONS FOR A VEHICLE. AND THEY NOW HAVE ENOUGH MONEY IN THERE TO BUILD A VEHICLE. DOES PLANNING HAVE THE SAME THINGS? SO PLANNING HAS MONEY. THEY'VE BEEN SQUIRRELING AWAY THEIR MONEY EACH YEAR, PUTTING IT IN THERE. SO THAT NEXT WEEK THEY CAN COME TO THE BOARD AND ASK TO BUY A VEHICLE. THEY DON'T HAVE TO ASK YOU FOR MONEY, BUT WHAT YOU DO HAVE TO DO IS APPROPRIATED OUT OF SPECIAL PROJECTS INTO THOSE APPROPRIATIONS SO THAT YOU DON'T GET AN AUDIT FINDING ON IT AGAIN, BECAUSE IT'S ALREADY THERE. THE CASH IS THERE. IT'S IN THAT SPECIAL PROJECTS RIGHT NOW. AND IT'S BEEN PUT THERE AT THE, IN JUNE, THE DEPARTMENTS REQUEST CERTAIN AMOUNTS TO GO INTO SPECIAL PROJECTS. AND ON YOUR CHART, YOU CAN GO BACK AND YOU CAN LOOK BACK AT LEAST 10 YEARS. I HAVE NOT GONE FURTHER, BUT YOU CAN GO BACK AT LEAST 10 YEARS TO SEE HOW MONEY COMES IN THERE. AND SOME OF IT HAS SAT THERE FOR 10 YEARS AND SOME OF IT IS GOING TO COME AWAY. WE'RE GOING TO BE RECOMMENDING THAT YOU TRANSFER IT BACK TO GENERAL FUND RESERVES. THAT WAS GOING TO BE MY QUESTION THAT SOME OF THIS HAS AGED SO LONG THAT APPARENTLY THE SPECIAL PROJECT NEVER OCCURRED. AND SO DO WE? YEAH. HOW DO WE CLEAN THIS UP? WELL, WE WANTED TO GET THIS FIRST, BUT THEN ONE OF THE NEXT THINGS AS WE WORK ON THIS BUDGET, UM, IS GOING TO BE APPROPRIATING MONEY BACK INTO GENERAL FUND RESERVES FROM SPECIAL PROJECTS AND SHRINK DOWN THAT LIST. UH, EVERYBODY'S BEEN TOLD THEY SHOULD BE COMING IN WITH THEIR PROPOSAL TO USE IT, OR IT'S GOING TO DISAPPEAR. SO WHEN EACH DEPARTMENT MAKES UP THEIR BUDGET ON THAT BUDGET, THEY SHOULD HAVE A LINE ITEM THAT SAYS SPECIAL PROJECT, WHATEVER, AND THAT THEY WANT TO PUT $10. NO, THE SPECIAL PROJECT COMES. THEY HAVE A LINE ITEM BUDGET THAT THE BOARD HAS APPROVED AND THEY HAVE PERSONNEL. THEY HAVE BENEFITS, THEY HAVE EQUIPMENT, ET CETERA, UTILITIES, SO FORTH AND COME JUNE. THEY HAVE A CERTAIN AMOUNT OF MONEY LEFT IN THAT BUDGET, UH, $10. THEN THEY PROPOSE TO MOVE THAT $10 TO SPECIAL PROJECTS. AND THEN THE NEXT YEAR, WHEN YOU SEE THE LIST THERE OF SPECIAL PROJECTS, THERE'S $10 FOR THAT DEPARTMENT. AND THEY MAY HAVE RESERVED IT FOR A PROJECT. THEY HAVE, SOME OF IT IS JUST RESERVED, SO THEY HAVEN'T IN THE FUTURE BECAUSE THEY DIDN'T SPEND IT IN THERE. OKAY. SO IF THEY PUT, LET'S SAY, UM, A COMPUTER, A TRUCK, WHATEVER ONE, THEIR BUDGET LINE, AND THEN THEY COME AND SAY, WELL, I NEED TO BUY A COMPUTER OR A TRUCK. AND I'VE GOT SPECIAL PROJECTS MONEY. YES. YEAH. BUT THEN THAT HAS TO BE TRANSFERRED OUT OF SPECIAL PROJECTS TO GENERAL FUND. SO IT'S THE BOARD APPROPRIATES THE MONEY FOR THE PROJECT, BUT THEY'RE NOT TAKING IT FROM GENERAL FUND RESERVE. THEY'RE TAKING IT FROM SPECIAL PROJECT, WHICH IS OVER HERE, WHICH IS REALLY IN THE FINAL LINE, A OF GENERAL FUND RESERVE. BUT IT'S NOT CLEAR, IT'S NOT POSTED OVER THERE. IT'S IN A DIFFERENT BASKET, IT'S IN THE SAME BARN, STILL YOUR MONEY. AND I GET THAT, BUT I JUST, IT DOESN'T MAKE SENSE TO ME THEN, YOU KNOW, IF THEY, IF THEY NEED TWO VEHICLES OR WHAT TO HAVE SOMETHING, UM, IT'S, IT'S LIKE, THERE'S, I CAN SEE THE POINT OF HAVING A RAINY DAY FUND AND THAT'S BASICALLY FOR THEM BALANCE. YEAH. UM, BUT IF THEY NEED TO HAVE SOMETHING IT'S IT'S, I DON'T KNOW, IT'S IT JUST SEEMS LIKE A ROUNDABOUT WAY. WELL, THAT'S WHY WE'RE GOING TO REDUCE IT AND GET WE'LL DO ENCUMBRANCES RATHER THAN THE [01:15:01] SPECIAL PROJECTS, BECAUSE WE'RE, WE'RE WHAT WE'RE WORKING TOWARDS. WE'RE NOT THERE YET, BUT WE'RE WORKING TOWARDS THAT. WE'RE NOT MOVING MANY MORE MONEY INTO SPECIAL. RIGHT. I DIDN'T REALIZE THAT'S HOW THE MONEY GOT INTO SPECIAL PROJECTS THAT WHATEVER I HAVE LEFT AT THE END OF THE YEAR, I CAN SQUIRREL AWAY SOME OVER THERE. AND IF I BUY, IF I HAVE TWO VEHICLES IN THE, MY DEPARTMENT AND I HAVE, UH, $80,000 IN MY DEPARTMENT FOR VEHICLES, AND I GET THESE TWO VEHICLES FOR 73,000, I MAY ASK TO MOVE THE 7,000 TO SPECIAL PROJECTS SO I CAN GET IT WORK AT, TOWARDS ANOTHER VEHICLE NEXT YEAR. OKAY. SO YEAH. SO I'M REVIEWING, SO THE OVERAGES IN THE BUDGET, AND THEN MOST OF THE DEPARTMENTS HAVE SPECIAL PROJECT FUNDS THAT COULD HAVE BEEN APPLIED TO THOSE OVERAGES. AND YET THAT WASN'T DONE SO THAT THAT'S REFLECTING IN OUR AUDIT. SO THAT, BUT IT REALLY, BUT THEY REALLY DID HAVE THE MONEY. IT JUST WAS IN SPECIAL PROJECTS AND NEEDED TO BE APPROPRIATED. CORRECT. TO DO THAT. SO, YEAH. SO THIS IS JUST A PROCESS ISSUE IS A PROCESS AND US HAVING THE CORRECT FINANCIAL INFORMATION OUT TO EVERYBODY. OKAY. THEN THAT'S WHERE GETTING OFF THIS ANTIQUE DOS SYSTEM SO THAT EVERYBODY CAN SEE WHAT THEY HAVE WEAKENED, SEE WHAT THEY HAVE BETTER, UH, CORRECT. ONCE WE GET THE NEW SOFTWARE, THAT WILL BE WONDERFUL. AND, AND SOME OF IT WE'LL BE ABLE TO DO WITH THIS SOFTWARE MA'AM WITH THAT SYSTEM, WHEN YOU DO A PRINT OUT FOR US TO LOOK AT MONTHLY, THOSE, THOSE, UM, WHEN WE, WHEN WE GET SOMETHING THAT SAYS $10 WAS SPENT BY, UM, OUR, OUR BOARD UNCLASSIFIED OR NOTHING, CAN, CAN IT BE, CAN WE HAVE A SYSTEM WHERE WE KNOW WHAT THAT $10 WAS SPENT FOR, WHICH IS, I KNOW A LITTLE BIT OFF, BUT SINCE WE'RE TALKING ABOUT EXPENDITURES, I KNOW THERE'S A LOT OF UNCLASSIFIED, RIGHT. BECAUSE THERE'S, I REALIZED HOW BUSY YOU ALL ARE. AND WHEN I LOOK AT THAT AND I GO BY IT LINE BY LINE AND I SEE THE EXPENDITURES AND THERE'S UNCLASSIFIED OR NOTHING, THEN I HAVE TO BOTHER YOU TO PULL YOUR SHOE BOX OF RECEIPTS OUT. AND THEN I KNOW YOU MAY NOT MIND IT, BUT, UH, IT IS, IT'S VERY BIZARRE. IT'S TIME CONSUMING. AND TO ME, I JUST THINK THAT IT, AND I'M SURE YOU'RE, YOU'LL GET IT. I'M SURE YOU WILL. YOU'VE HAD A LOT THROWN ON YOU, BUT I THINK THERE, THE ACCOUNTABILITY THERE WOULD BE BETTER SERVED IF, UM, AND I WOULD LIKE TO GET TO THE POINT WHERE I CAN SAY BLITZ POOL MAINTENANCE OR WHOEVER'S CREDIT CARD, AND LET'S SEE WHAT THEY'RE DOING AND HAVE IT RECTIFIED SO WE CAN ALL SEE IT. SURE. NOT THAT I'M SAYING ANYBODY'S DOING ANYTHING WRONG, BUT I WANT TO TRUST AND VERIFY. YEAH. SO, SO ON THIS LIST OF SPECIAL PROJECTS, I KNOW I KEEP GOING, THERE IS $538,000 IN AN ENTERPRISE ZONE. WHAT, WHAT EXACTLY IS THAT ASSIGNED TO? DOES ANYBODY KNOW WHAT THE ENTERPRISE ZONE IS? NOT EXACTLY. OKAY. OKAY. WELL, HERE'S, THERE'S MONEY IN THIS ENTERPRISE ZONE AND MAYBE MICHAEL, YOU CAN SPEAK TO WHY WE PUT THE MONEY INTO THE ENTERPRISE ZONE WHEN WE DON'T HAVE A SPECIFIC PAYMENT TO BE MADE BECAUSE THERE'S 17 1.7 MILLION THIS YEAR, BUT WE DON'T HAVE ANY OBLIGATIONS THAT COME DUE THIS YEAR. RIGHT? YEAH. I CAN'T SPEAK DIRECTLY TOWARDS THAT, UH, DR. DAILY, BUT I DO KNOW THAT USUALLY THAT HISTORICALLY HAS BEEN SET ASIDE FOR SCHOOL CAPITAL IMPROVEMENTS. OKAY. UM, AND I'M SURE IT WAS THE REASONING OF A PREVIOUS BOARD FOR, FOR DOING THAT, BUT WITHOUT NOTATION, IT JUST SAYS ENTERPRISE FUND CHOSEN IN OUR BULL AS AN EXPENDITURE. OKAY. LIKE WE ARE GOING TO SPEND THE 1.7, RATHER THAN THAT IT WAS A RECEIPT THAT WOULD THEN GO FOR SCHOOL CONSTRUCTION OR SOMETHING. IT SHOWS UP AS AN EXPENDITURE AS IF WE ARE GOING TO PAY SOMEBODY. USUALLY AN ENTERPRISE ZONE MEANS THAT THEY GET SOME TYPE OF A TAX INCENTIVE REBATE [01:20:01] SYSTEM FOR OPERATING WITHIN THAT ZONE. UH, AND WE'VE HAD ENTERPRISE ZONES BEFORE WHERE PARTICULARLY OUT ON FIVE 22 NORTH, WHERE THERE WAS AN INCENTIVE FOR BUSINESSES TO LOCATE THERE AND WE WOULD PAY A REBATE, UH, WITH YOUR SILENT FALCO, UH, WHICH HAS BEEN ANNOUNCED, YOU DID AN AGREEMENT FOR, AND THEY RECEIVED GOVERNOR'S INCENTIVE FUNDS. AND PART OF THAT MATCH IS A REBATE WHICH WILL COME FROM AN ENTERPRISE ZONE TYPE PAYMENT AFTER IT, WHICH IS AN ESSENCE OF REBATE, A PART OF THEIR TAXES. DOES THAT HELP? VERY HELPFUL. THANK YOU. SO, UH, AT THIS POINT, ARE WE MOVING ON TO OUR BUDGET PART OR, WELL, WHEN, WHEN WE'RE DONE WITH THE AUDIT AND MICHAEL CAN GO BACK TO CHARLOTTESVILLE AND, UH, TARYN IS GOING TO TALK ABOUT A COUPLE OF BUDGET ITEMS, FORUMS, IF THERE ARE, UNLESS YOU HAVE OTHER QUESTIONS FOR THIS. WELL, I WANT THE PEOPLE TO KNOW, UM, THAT MR. MICK LIBERTY, AND YOU HAVE BEEN DIGGING IN AND LOOKING INTO A LOT OF THINGS AND TRYING TO STRAIGHTEN OUT ALL THE CONFUSION AND MISUNDERSTANDING. UM, AND I KNOW YOU'RE NOT THERE YET, BUT, UM, YOU KNOW, AND I DON'T KNOW IF YOU WANT TO SPEAK TO THAT OR NOT, BUT, UM, I KNOW THERE'S BEEN A LOT OF CONCERN SINCE THE WHOLE EDA THING CAME UP, UM, WITH FINANCES WHERE WE ARE, WHAT OUR DAD IS. AND IT LOOKS LIKE SOMEWHERE BETWEEN 147 MILLION AND 155 MILLION PLUS, WELL, THE ONE 47 IS DEBT DEBT. OTHER IS LIKE THAT. YOU HAVE BORROWED MONEY SPECIFICALLY FOR THE REMAINDER OF THE 8 MILLION THAT'S IN YOUR PENSION TITLE LIABILITY. IT'S A LIABILITY, RIGHT. UH, BUT IT'S NOT A, UH, BUILDING DEBT, THOSE KIND OF THINGS. NO, BUT IT'S NOT A DEBT DEBT, RIGHT. FOR LACK OF A BETTER TERM THAT THE DEBTORS ARE NOT GOING TO KNOCK ON THE DOOR FOR THAT THE RETIREMENT, NOT UNLESS EVERYBODY RETIRES AT THE SAME TIME AND WE DON'T PUT ANY MORE MONEY IN THERE. RIGHT. UM, SO THAT, THAT'S IMPORTANT TO ME THAT PEOPLE REALIZE THAT, UM, WE'VE HEARD THEIR CONCERNS AND WE'RE LOOKING INTO THEM AND THAT YOU'RE DOING THAT VERY DILIGENTLY. AND BETWEEN THAT, AND WHEN WE CAN GET THIS NEW SYSTEM, THINGS WILL HOPEFULLY MAKE A WHOLE LOT MORE SENSE. I BELIEVE, I BELIEVE NEXT YEAR CAN SEE A BETTER DOCUMENT. UH, YOU KNOW, YOU'LL, YOU'LL HAVE NUMBER ONE, YOU'LL UNDERSTAND IT BETTER BECAUSE OF THE TRAINING YOU GOT WITH THIS ONE. SO YOU'LL KNOW WHEN YOU GET IT, YOU'LL KNOW WHAT YOU'RE LOOKING FOR AND WHAT TO LOOK AT THERE. AND, UH, KEITH KNOWS HOW TO CLOSE OUT THE BUDGET YEAR SO THAT THESE TRANSFERS AND SO FORTH ARE MADE ANY OTHER QUESTIONS FROM ANYBODY. OTHER THAN I KNOW I'VE BEEN DOMINATING THE QUESTIONS TONIGHT, BUT ASK AWAY AND WE WILL BE LOOKING AT FUND 19 SOME MORE SPECIAL FUNDS. WELL, I, I KNOW IT WAS A CONCERN TO ME TO HEAR THAT THERE WERE ITEMS THAT WE NEEDED TO BUDGET A CERTAIN AMOUNT FOR, AND WE UNDER BUDGET THAT HISTORICALLY, UM, THE, UM, OVERTIME BUDGETS AND THINGS. SO, YOU KNOW, I KNOW WE CAN'T, WE CAN'T KEEP TRYING TO TRUE UP AT THE END OF THE YEAR ON THINGS LIKE THAT. SO THAT'S CORRECT. IN THAT SHOWS, WHEN YOU LOOK AT THE FIRE DEPARTMENT, UH, THE REPORT, AS FAR AS THE FIRE DEPARTMENT GOES, IT WASN'T, THEY WEREN'T PROVIDED THE APPROPRIATION FOR ALL OF THE OVERTIME THERE. OKAY. DOES IT LOOK LIKE THERE'S OKAY. ANY MORE QUESTIONS? SO THANK YOU AND SAFE TRIP BACK. THANK YOU VERY MUCH. AND IF YOU ALL DO HAVE ANY OTHER QUESTIONS, UH, KEITH AND DR. DALEY CERTAINLY HAVE MY CONTACT INFORMATION. SO I'M [01:25:01] AVAILABLE TO ANSWER ANY OF THOSE THAT YOU HAVE. THANK YOU. ALL RIGHT. THANK YOU. WELL, THANK YOU, MICHAEL. [C. Tourism and Wayfinding Signage Update – Taryn Logan] SO RELATED TO THE BUDGET, WE HAVE THE WAYFINDING SIGNAGE AND OUR TOURISM, AND I ASKED, UH, TAREN TO TALK ABOUT THIS A LITTLE BIT TO MAKE SURE WE'RE ON THE SAME PAGE. EVERYBODY'S ON THE SAME PAGE OVER HERE, WHAT WE ARE DOING. SO JUST A LITTLE BACKGROUND, UM, THE TOWN AND COUNTY. WELL, WHEN WE FIRST JOINED TOGETHER IN TOURISM, UM, THE COUNTY STARTED COLLECTING THE TRANSIENT OCCUPANCY TAX, THE ADDITIONAL 2%, JULY ONE, 2017. SO AT THAT POINT, THE ADDITIONAL 2% TRANSIENT LODGING TAX THAT WE STARTED COLLECTING ACCORDING TO STATE CODE HAS TO GO TO TOURISM RELATED PROJECTS. SO THE TOWN AND COUNTY, UM, FORMED THE JOINT TOURISM COMMITTEE. AND ONE OF THE, UM, GOALS AND THE VERY BEGINNING WAS TO WORK TOGETHER, TO DO, UM, A WAY FINDING SIGNAGE PROGRAM. THE, SO WE COULD HAVE A COHESIVE, UM, PROGRAM TOGETHER. THE TOWN HAD GOTTEN THE CDBG GRANT AND $104,000 OF THAT GRANT THEY RECEIVED WAS BUDGETED TOWARDS THE WAYFINDING SIGNAGE PROGRAM. SO IN 2018, DECEMBER, THE VERY END OF 2018, THE TOWN AND THE COUNTY CONTRACTOR WITH FRAZIER AND ASSOCIATES, UM, TO BEGIN THE DESIGN FOR THE SIGNAGE PROGRAM. AND THEY, UM, THEY WERE ACTUALLY A GROUP THAT HAD MORE INVOLVED IN HELPING WRITE VIA DOTS, COMMUNITY WAY, FINDING SIGNAGE MANUAL. SO, UM, THEY'RE VERY KNOWLEDGEABLE. WE WERE HAPPY TO, UM, CONTRACT WITH THEM, BUT SO THEY WERE, UM, WE WERE CONTRACTED TO DESIGN OUR WHOLE PROGRAM. SO THE WAY-FINDING SIGN PROGRAM IS TO PROMOTE TOURISM AND PROVIDE DIRECTIONAL GUIDANCE TO THESE DESTINATIONS AND A COMMUNITY. SO AS TO GET YOU THROUGHOUT THE WHOLE COMMUNITY, TO THESE DESTINATIONS AND THE DESTINATIONS ARE VERY, IT'S VERY SPECIFIC WITH THE DATA AS TO WHAT CAN BE INCLUDED ON THE, ON THE SIGNS. YEAH, WE DO HAVE SOME THROUGHOUT THE COMMUNITY. NOW THEY'VE BEEN UP ABOUT PROBABLY 20 YEARS. UM, IT WAS PRIOR TO VIETNAM HAVING A PROGRAM. SO A LOT OF THE FONT, A LOT OF THE SIZE, YOU MIGHT NOT BE ABLE TO READ THAT WELL, BUT, UM, BUT THIS WILL MEET ALL OF THE DOTS CRITERIA. SO IN 2019, WE BEGAN WORKING WITH FRAZIER AND ASSOCIATES. UM, IT WAS REALLY THROUGH THE JOINT TOURISM COMMITTEE AND THEN A SUBCOMMITTEE OF THAT COMMITTEE. UM, WE DID A LIST OF DESTINATIONS. WE DID THE SIGN DESIGN AND WE DID DEVELOPMENT OF CONSTRUCTION DOCUMENTS IN ACCORDANCE WITH THE V MANUAL. SO THEN IN 20 2020, WE SUBMITTED THE PLANS TO BE DONE FOR REVIEW. UM, COVID KIND OF PUSHED US BACK THE BEGINNING OF 2020, BUT THEN IN JUNE I WAS ABLE TO GET, UM, A VIRTUAL PRESENTATION WITH V.TO PRESENT, UM, THE PROGRAM TO THEM. THEY HAD JUST A FEW COMMENTS AND THEN FRASIER AND ASSOCIATES DID A, UM, ADDRESS THEIR COMMENTS, RESUBMITTED IT, AND THEY APPROVED OUR DESIGN PLANS AND AUGUST, 2020 S. AND SO I JUST WANTED TO SHOW YOU A LITTLE, THEY DID AN OVERVIEW MAP. UM, SO WE HAVE ALL THE SIGN LOCATIONS, UM, YOU KNOW, THEY'RE GENERALIZED, BUT WHERE THEY'RE PLANNING TO GO, THESE WERE IN THE GATEWAY SIGNS THAT, THAT WERE CHOSEN BY THE COMMITTEE. UM, THERE WERE SEVERAL DIFFERENT DESIGNS THAT WERE LOOKED AT, AND THESE WERE REPRESENTATIVES, TOWN AND COUNTY. UM, THERE WERE UPDATES GIVEN, YOU KNOW, TO THE, UM, COUNCIL ON THE BOARD. AND THIS IS, UM, THESE ARE THE GATEWAY SIGNS. SO THEY WOULD BE AT THE ENTRANCES TO THE COMMUNITY. AND THESE ARE JUST THE SPECS, BUT I MEAN, THESE, THIS JUST SHOWS YOU THE AMOUNT OF WORK THAT WENT INTO ALL THE SPECIFICATIONS FOR THE SIGNS THAT FRAZIER AND ASSOCIATES DID FOR US, THAT V DYED ENDED UP APPROVING FOR US THE TOWN. UM, THEY HAVE THEIR HISTORIC DOWNTOWN SIGNS. UM, THESE ARE THE TRAILBLAZING SIGNS. SO THESE ARE KIND OF THE MORE SPECIFIC SIGNS THAT I'M GOING TO TALK ABOUT, BECAUSE THESE ARE THE SIGNS THAT WE ARE WORKING WITH, THE TOWN THAT, THAT WE'VE BID. UM, THE TOWN HAS BID THESE SIGNS, AND THIS IS WHAT THEIR CDBG MONEY IS GOING TO. AND THIS IS, UM, OUR FUNDING THAT I'LL TALK ABOUT IN A MINUTE. SO THIS, THESE ARE THOSE SPECIFIC TRAILBLAZING SIZES. THESE ARE THE ONES WITH THE ACTUAL DESTINATIONS AND ARROWS GETTING YOU, UM, ALL THROUGHOUT THE COMMUNITY. SO THERE ARE DIFFERENT SIZES. I MEAN, DEPENDING IF YOU'RE ON THE HIGHWAY, LIKE IF YOU'RE ON THREE 40, YOU'RE GOING TO HAVE A LARGER SIGN THAN YOU ARE WHEN YOU'RE RIGHT [01:30:01] IN A DOWNTOWN FRONT ROYAL. SO THEY DID THIS SPECIFIC, UM, SIGNED DESIGN, AND THEN WE HAD TO GET APPROVAL FOR ALL OF OUR DESTINATIONS THROUGH V DOT. UM, AND YOU CAN ONLY DO CERTAIN CATEGORIES. SO WE HAVE OUR NATIONAL STATE AND LOCAL PARKS. WE HAVE OUR PAWEL PUBLIC RIVER ACCESS. UM, WE HAVE EDUCATION, OUR FAIRGROUNDS AND THE SPORTS COMPLEX. SO WE HAVE THE SKYLINE SOCCER PLAQUES, AND WE DID OUR, UM, NATURAL ATTRACTS AND ATTRACTIONS AND TRAILS. SO THE APPALACHIAN TRAIL, AND THEN, UM, SCALLON CAVERNS AND THEN DOWNTOWN, THEY HAD THE HISTORIC DOWNTOWN VISITOR CENTER, RANDOLPH MACON, AND THE RURAL SHANDA GREENWAY AND VDI HAS TO REVIEW THE TOWN SIGNS AS WELL. ALTHOUGH, I MEAN, THEY DON'T HAVE CONTROL OVER THE INSTALLATION OF THEIR SIGNS, BUT JUST TO MAKE SURE THE WHOLE, IT ALL FLOWS TOGETHER. SO, UM, YOU CAN GET OFF THE INTERSTATE, YOU KNOW, ON THE VITAL SIGNS ARE GETTING YOU TO THROUGH THE TOWN AND THEN YOU MIGHT HAVE TO GO TO A DESTINATION IN THE COUNTY, SO THEY ALL HAVE TO FLOW TOGETHER. AND THEN THESE ARE JUST SOME OF THE, UM, DESTINATION SIGNS AND THEN OUR GATEWAY LOCATIONS. UM, WE HAD FIVE AND THESE AREN'T THE FOCUS RIGHT NOW BECAUSE THESE AREN'T THE SIGNS THAT, UM, THE TOWN HAS BEEN FED, BUT EVENTUALLY THIS IS PART OF THE WHOLE WAY FINDING SIGN PROGRAM, THE GATEWAY SIGNS, WHERE THE LARGER ONES THAT ARE SHARED YOU AT THE BEGINNING WITH THE STONE BASE, THE TOWN HAD FOUR LOCATIONS. AND THEN, UM, THIS IS JUST AN EXAMPLE OF WHAT FRAZIER DID FOR US. UM, THEY, THEY DID TOURS OF THE COMMUNITY, YOU KNOW, THE PLACEMENT OF THE SIGNS EXACTLY WHERE THEY FELT THAT THAT WOULD BE, YOU KNOW, THE IDEAL PLACE FOR THEM TO GO. THEY DID AN INVENTORY OF ALL OF OUR SIGNS IN THE COMMUNITY AND WHAT ONES WHEN WOULD NEED TO BE, UM, REMOVED AND THEN REPLACED WITH THESE NEW ONES. THAT'S JUST MORE EXAMPLES MISSES SOME OF THE PRESENTATION I ACTUALLY DID FOR VEIT OUTAGE KEPT IN HERE FOR YOU ALL. UM, SO THE NEXT STEPS, THE TOWN BID THE TRAILBLAZING SIGNS, UM, IN FEBRUARY JUST LAST MONTH AND THEY ARE ON A TIGHT TIMELINE BECAUSE OF THEIR CDBG FUNDING, UM, THAT THEY NEED TO SPEND BY LATER THIS MONTH. AND, UM, SO THE LOW BID WAS 2,230, $4,400, AND THIS, THE TOWN WOULD BE RESPONSIBLE FOR 37 SIGNS. SO THERE, UM, SIGNAGE CAME BACK AT ONE 49, 500, AND THEN THE COUNTY HAD 18 SIGNS, WHICH CAME BACK AT $84,900. AND WE HAVE GO BACK TO THAT WHOLE SPECIAL PROJECTS THING. UM, WE KNEW THAT WAYFINDING WAS A PRIORITY BACK, UM, THREE YEARS, FOUR YEARS AGO WHEN WE FIRST STARTED COLLECTING THE TAX. SO EACH YEAR THE COMMITTEE WOULD, UM, WOULD LOOK AT A BUDGET OF PROPOSED BUDGET AND THAT WE WOULD ALWAYS HAVE A LINE ITEM FOR WAYFINDING. AND SO TYPICALLY THAT WAS 40,000 BECAUSE WE KNEW IT'S, IT'S AN EXPENSIVE PROGRAM. UM, AND SO WE DO HAVE THE COUNTY MONEY SET ASIDE AND, AND LIKE I SAID, THAT HAS TO GO TO TOURISM AND THIS WAS A TOURISM PROJECT THAT WAS IDENTIFIED. UM, SO THAT, THAT CAN'T GO TO INTERRUPT JUST A SECOND. THAT'S A GOOD EXAMPLE OF HOW THEY'VE USED. THE SPECIAL PROJECTS FUND IS TO PUT MONEY TOWARDS SOMETHING LIKE THE WAYFINDING SIGNAGE. AND SO THAT WAY, YOU KNOW, THREE, FOUR YEARS DOWN THE ROAD, THEN WE HAVE THE MONEY TO ACTUALLY START, START THE PROJECT AND FUND THE PROJECT. UM, WE DID THIS, JUST THE TRAILBLAZING. UM, WE JUST THOUGHT THAT WAS THE EASIEST COMPONENT OF IT TO, TO SPLIT OUT AND DO. UM, SO THE GOAL WOULD BE KAITLIN, WELL, THE TOWN DRAFTED AN MOA, UM, AND THEN KAITLIN REVIEWED IT, HAD SOME COMMENTS, SENT THEM BACK TO THE TOWN AND THEY WERE FINE WITH THOSE. UM, AND THE MOA IS BASICALLY THAT THE TOWN, THE TOWN BID THE SIGN. SO THIS IS FOR THE FABRICATION OF THE SIGNS. WE WOULD EACH BE INSTALLING OUR OWN. UM, I MET WITH YESTERDAY, THEY ARE RICHMOND APPROVED. I MET WITH RICHMOND AND OUR RESIDENCY YESTERDAY, BUT RICHMOND APPROVED OUR DESIGN PLANS, UM, ACCORDING TO THEIR MANUAL. AND NOW OUR RESIDENCY, UM, WE'LL KIND OF TAKE IT OVER. THEY'LL MEET WITH US ON SITE. WE'LL STATE THE SIGNS, IF, IF THEY DON'T THINK IT'S, IF THEY THINK IT'S GOING TO HINDER SITE DISTANCE, UM, OR THE SETBACKS FROM THE RIGHT OF WAY, THEY'LL GO OVER ALL THAT WITH US. SO, UM, WE'LL WORK HAND IN HAND WITH, BUT THE ITALIAN COUNTY WILL EACH BE INSTALLING THEIR OWN, [01:35:01] BUT TOGETHER WE WANTED TO MAKE SURE WE HAD A CONTRACTOR THAT WAS GOING TO, UM, JUST BE THE ONE CONTRACTOR. SO THE FABRICATION WILL MATCH AND IT WILL BE COHESIVE. UM, SO WE FELT GOING TOGETHER ON THIS PROJECT AND WE HAVE, SINCE THE BEGINNING WENT TOGETHER ON THIS PROJECT, SO THE MOA WILL BE COMING TO YOU ALL AT YOUR BOARD MEETING, UM, ON THE 16TH. AND I MEAN, IT'S FAIRLY SIMPLE. THE TOWN PURCHASED THEM AND THEN WE WOULD BE, UM, PAYING FOR OUR 18 SIGNS FOR THE, FOR, AND IT CANNOT EXCEED THE 85,000 OR THEY WOULD COME BACK TO US AND LET US KNOW. AND THEN, UM, ARE THERE ANY OTHER SIGNS THAT WE HAVE TO PURCHASE? WELL, THE TRAILBLAZING IS THE MAIN BULK, AND THEN WE HAVE THE GATEWAY SIGNS AS WELL. SO THE TOWN AND THE COUNTY HAD THE GATEWAY, THERE WERE FIVE IDENTIFIED ON OUR PLAN AND THOSE WERE THE ONES THAT DIDN'T WORK SO WELL. THOSE ARE THE ONES IN THE BEGINNING. UM, THESE THAT I SHOWED YOU, SO THE STONE IN THERE, THE ENTRANCE, YOU KNOW, THE ENTRANCE SIGNS, I'M NOT SURE HOW MUCH, UM, THEY WOULD COST OR WHAT, WHAT WE COULD DO AS FAR AS THE BASIS OF THEM, UM, FOR THE INSTALLATION. BUT RIGHT NOW WE JUST, THE TOWN WAS ON A TIGHT DEADLINE FOR THEIR CDBG MONEY. AND WE JUST WANTED TO GET THE EASIEST PART, WAS TO DO ALL THE TRAILBLAZING SIGNS AND BID THEM ALL AT THE SAME TIME, THE TOWN HAS DOWNTOWN PARKING SIGNS AS WELL. THEY HAD, THERE'S A WHOLE NOTHER ELEMENT TO THIS THAT THEY'LL HAVE. UM, BUT THEN, AND THEN WE BOTH WILL HAVE GATEWAY SIGNS. SO AT SOME POINT THAT WOULD BE, I WOULDN'T LIKE TO DO THAT TO FINISH OUT THE WHOLE PROGRAM. SO GO AHEAD. IS THERE GOING TO BE ANY SIGNS THAT DIRECT THEM TO MOTELS OR SO THAT CAN'T BE PART OF THE, UM, PRIVATE BUSINESSES THEY HAVE, CAN'T BE PART OF THE, IT'S NOT PART OF THE VIETNAMESE COMMUNITY WAYFINDING PROGRAM. IT HAS TO BE, THEY HAVE VERY SPECIFIC GUIDELINES AS TO WHAT THEY'LL ALLOW, UM, ON THEIR HIGHWAYS, AS FAR AS TOURIST DESTINATIONS AND THOSE WORK AT THE END OF THE CATEGORIES, THE NATIONAL AND STATE PARKS, LOCAL PARKS, UM, THEY JUST HAVE VERY SPECIFIC CATEGORIES. SO WE WEREN'T ALLOWED TO PUT ANY BREWERIES OR, UM, I WOULD THINK THAT WE WOULD NEED TO DIRECT TO SOME OF THE TRAFFIC, AT LEAST TO OUR DOWNTOWN, TO OUR, TO SOME OTHER PLACES. SO IT WILL, IT, WHEN YOU GET OFF THE INTERSTATE, IT WILL DIRECT YOU TO DOWNTOWN, BUT ON THE, ON THE SIGN, YOU'LL SEE HISTORIC DOWNTOWN. OKAY. SO YOU'RE NOT GOING TO, YOU KNOW, YOU'RE NOT GONNA TAKE THE BREWERY, RIGHT. IT'S JUST GOING TO TAKE YOU TO HISTORIC DOWNTOWN OR THE VISITOR CENTER. THAT'S GOING TO BE A DESTINATION. UM, SO THERE WERE JUST, THERE'S ONLY SPECIFIC CATEGORIES YOU CAN PUT IN ONE THE SIGNS, BUT, UM, BUT IT DOES GET YOU THERE. AND THEN WHEN YOU'RE THERE, YOU CAN SEE ALL THE BUSINESSES THAT ARE THERE, BUT IT WOULD SEEM LIKE TO ME THAT WE WOULD STILL LOVE TO COLLECT FUNDS, TO BE ABLE TO DO SOME ADDITIONAL SIGNAGE FOR THOSE TYPES OF THINGS. ONCE WE BRING PEOPLE IN, WHICH IS WHAT WE'RE DOING, WE DON'T NECESSARILY WANT TO BRING THEM IN AND THEN HAVE THEM DROP OUT AS SOON AS THEY'RE FINISHED. WELL, AND I MEAN, YOU COULD DO SOMETHING DOWN BY THE VISITOR CENTER OR BUSINESS DIRECTOR, WHICH THEY MAY, THEY HAD AT ONE TIME. UM, IT'S JUST, THEY WERE HAVING TO CHANGE IT, YOU KNOW, KIND OF OFTEN, BUT SOMETHING LIKE THAT. UM, ONE SECOND, ONCE THAT YOU GET TO THE VISITOR CENTER, YOU HAVE A, UH, UH, DOWNTOWN BUSINESS DIRECTORY OR YEAH, IT'S UNKNOWN. IT'S A DIFFERENT SUBJECT. UH, I APOLOGIZE. IT IS A DIFFERENT, DIFFERENT, SURE. I UNDERSTAND WHAT YOU'RE SAYING. THE GATEWAY SIGNS. I THEY'RE BEAUTIFUL. THEY'RE, THAT'S BEAUTIFUL. I EVEN, THE STONE LOOKS LIKE THE STONE ON THE COURTHOUSE. YEAH. SO IT TIES IT ALL TOGETHER, WHICH I THINK IS REALLY NICE. SO, SO THIS, THIS WILL BE TWO PHASES. THE 84 NINE IS JUST FOR, UM, THE SIGNS FOR CERTAIN ERA. IT DOES NOT INCLUDE THESE AT ALL. YES MA'AM. SO, AND YOU DON'T, YOU DON'T KNOW WHAT THE ESTIMATE IS ON THOSE AT THIS POINT, YOU SAID BECAUSE OF, BUT, OR THE TOWN THEN PUT THOSE IN THE BED AND, AND, YOU KNOW, WE WORKED WITH THE TOWN, UM, JUST, WE WEREN'T SURE WHAT THE PRICE WAS GOING TO COME BACK, HONESTLY. I MEAN IT, AND, AND THERE WAS A RANGE, THEY GOT NINE BEDS BACK AND IT WAS A BIG RANGE. SO, UM, NOW THAT WE KNOW, I MEAN, WE COULD WORK, YOU [01:40:01] KNOW, ON THIS NEXT, BUT IT WAS JUST, THERE WAS A TIGHT DEADLINE AND IT WAS JUST GETTING, GETTING SOMETHING DONE. RIGHT. RIGHT. I DIDN'T KNOW IF THIS WAS, UM, SOMETHING THAT WE'RE GOING TO, I MEAN, I ASSUME WE ARE GOING TO START SAVING AGAIN TOWARDS, IT WAS, I THINK IS A GREAT IDEA TO DO. UM, AND I ASSUME WHERE THE OTHERS ARE ON A, MORE OF A POLL AND SIMPLER TO GET IN THE GROUND. THIS IS GOING TO TAKE, UH, A SUMMIT FOUNDATION TO, TO MAKE THEM SET UP WHERE THEY NEED TO IN LEVEL AND SO FORTH. SO, RIGHT. WELL, THEY ARE ALL BEAUTIFUL SIGNS THAT'S FOR CERTAIN, UM, WELL IT LOOKS LIKE THE SIGN IS SEPARATE FROM THE FOUNDATION ATTACHED, BUT THAT THERE'D BE A DIFFERENT MANUFACTURER. RIGHT. THEY'LL PROBABLY BOLT DOWN TO A MEAN, WE COULD MAYBE, YOU KNOW, MAYBE OUR, OUR CREW IN THERE COULD DO LIKE TYPE THING. WE MIGHT GET, SEE WHAT THEY WOULD CHARGE US TO HAVE THE SAME COMPANY SO THAT THEY ALL MATCH AND THEN BID THE FOUNDATION OR DO THE FOUNDATION SEPARATE. BEAUTIFUL. IT LOOKS WONDERFUL. AND YOU SEE THIS IN A LOT OF COMMUNITIES, I'M SURE. YEAH. UM, WE, UM, WHEN FRAZIER AND ASSOCIATES AND THEY'VE DONE A LOT OF THEM AROUND, BUT THEY HAD EXAMPLES, UM, YOU KNOW, ALL KINDS OF STATES AND COUNTIES. AND SO, UM, THEY DO, THEY DO A VERY GOOD JOB V DOT. ACTUALLY, HE THANKED ME AGAIN YESTERDAY FOR US CONTRACTING WITH FRAZIER ASSOCIATES BECAUSE THEY KNOW THEIR MANUAL AND THEIR ROLE SO WELL. UM, THERE'S NOT, IT'S EASIER FOR THEM TO REVIEW THE WHOLE PACKAGE. SO THAT'S THE WAY FINDING UPDATE. AND THEN JUST THE GENERAL, UM, TOURISM UPDATE. I KNOW, UM, MISS OATS HAS BEEN HESITANT AT THE, THE TWO COMMITTEE MEETINGS WE'VE HAD RECENTLY. UM, AND WE'VE TALKED A LOT ABOUT THE, IN JUNE AND JULY, MAY, JUNE AND JULY, REALLY, UM, THE BOARD AND THE TOWN, AS YOU RECALL TALKED ABOUT, WE VOTE THE BOARD AND THE TOWN COUNCIL BOTH VOTED TO MOVE FORWARD WITH THE OPTION THREE A, WHICH WAS THE CONTRACTING OUT, UM, FOR THE JOINT TOURISM SERVICES. SO, UM, MS. KELLER'S AND MISS OATS BOTH PARTICIPATED IN THE INTERVIEWING OF THE FIRMS. UM, AND THEN THE JLL WAS THE FIRM THAT WAS SELECTED. SO IN THE MEANTIME, THE COUNTY IN THE TOWN, UM, AGREED ON A NEW MEMORANDUM OF UNDERSTANDING, WHICH KIND OF REPLACED THE OLD ONE FROM 2017, UM, TO MOVE THE TOURISM FORWARD JOINTLY WITH THIS CONTRACTOR. SO THERE WAS A LOT OF DISCUSSION ABOUT TRANSITIONING INTO THIS THREE B OPTION THAT WAS PRESENTED BY MISS BARNHART AND, YOU KNOW, ONE OR TWO OF THOSE MEETINGS. AND THAT WAS TO KIND OF TAKE THE COMMITTEE AND MOVE IT INTO A MORE ESTABLISHED BOARD WHERE THEY WOULD BE OVERSEEING THE CONTRACTOR. UM, I HAVE HER SLIDES AND YOU CAN'T SEE THESE, BUT PROBABLY I CAN'T BE FULL. THIS WAS THE, WHAT, WHAT WAS VOTED ON THE THREE. SO THAT WAS, UM, THE COUNTY ACTUALLY IS THE FISCAL AGENT, ACCORDING TO THE MOU. AND THEN THE CONTRACTOR REPORTS TO BOTH THE TOWN AND THE COUNTY AND THE JOINT TOURISM COMMITTEE IS REALLY ADVISORY. SO THEN WE TALKED, THERE WAS A LOT OF DISCUSSION ABOUT MORPHING INTO THIS THREE B, WHICH INCLUDED THAT BOTH THE CONTRACTOR ACTUALLY REPORTING TO THE COMMITTEE AND THEN MANAGING THE CONTRACTOR. UM, THEY TALKED A LOT ABOUT THE ROLE OF OUR WE'VE DISCUSSED A LOT ABOUT THE ROLE OF THE BOARD, THE NEW BOARD, UM, THAT IT WOULD BE MORE OF A LEADERSHIP ROLE. I REMEMBER THAT DISCUSSION. UM, SO JLL AND I THINK IT WAS DISCUSSED IN THE INTERVIEWS AS WELL, BUT THEY STARTED DOING BYLAWS BASICALLY FOR THIS NEW BOARD. AND THAT WAS NOT FORMALLY VOTED ON AT OUR MEETING. AND, AND THERE WASN'T ANY KIND OF FORMAL, YOU KNOW, WHAT WOULD THE BOARD DO AT THAT TIME? WE TALKED ABOUT MAYBE IT WAS A CHAMBER THAT CAME IN AND, YOU KNOW, THEY WERE THE FISCAL AGENT [01:45:01] OR, AND THEY WERE THE OVERSEER OF TOURISM. THERE WERE SO MANY DISCUSSIONS. I'M SURE YOU PROBABLY REMEMBER THEM, BUT, UM, SO WHAT JLL HAS BEEN WORKING ON IN HIS GIVEN TO THE COMMITTEE OR THE SET OF BYLAWS AS TO WHAT THIS BOARD WOULD DO? SO I THINK AT SOME POINT THAT'S GOING TO COME TO THE BOARD OF SUPERVISORS. UM, IT'S KIND OF BEING HASHED OUT IN THE COMMITTEE MEETINGS. UM, I DON'T KNOW IF YOU WANT TO ADD ANYTHING, BUT I JUST WANTED TO GIVE AN UP. YEAH, I THINK THAT, THAT, THERE'S JUST A COUPLE OF NUANCES THAT NEED TO BE IRONED OUT WITH THE BOARD. I THINK THE UNDERSTANDING, UM, AT LEAST MY UNDERSTANDING WAS THAT THE BOARD WOULD FUNCTION IN A DECISION-MAKING PROCESS. THEY WOULD MAKE, THEY WOULD, UH, UH, DIRECT THE FUNDS TO THE VARIOUS PROJECTS AGREED UPON BY THE BOARD. AND THEN THE COUNTY WOULD BE THE FISCAL AGENT, MEANING THE COUNTY WOULD WRITE THE CHECKS ON BEHALF OF THE BOARD. AND INSTEAD I THINK THE BOARD WANTED TO BE MORE OF ITS OWN CHECK WRITING FUNCTION, BUT GIVEN WHAT THE COUNTY HAS EXPERIENCED WITH THE EDA, I I'M NOT, I DON'T THINK THAT WOULD BE PRUDENT. I THINK IT'S BETTER IF WE JUST ALLOW THE BOARD, THEY CAN, CAN APPROPRIATE THE MONEY AND IN TO THE AREAS THAT THEY DEEM, UM, MOST IMPORTANT. AND BECAUSE THAT'S WHAT THEY'RE THERE FOR. BUT I THINK THAT FROM THE CHECK WRITING FUNCTION, IT NEEDS TO COME OUT OF THE COUNTY OFFICE TO MAKE SURE THAT EVERYTHING IS ACCOUNTED FOR IN THE WAY THAT WE'VE BEEN DOING IT. SO THE WILL ACT AS ALMOST, I MEAN, THEY'LL, THEY'LL ACT ALMOST AS A DEPARTMENT, IF YOU WILL LIVE RIGHT. DEPARTMENT OF THE, OF SUPERVISORS, SUPERVISORS, RIGHT. AND THE TOWN COUNCIL, THEY WOULD NOT BE INCORPORATED AS AN INDEPENDENT ENTITY. YEAH. BECAUSE I DON'T THINK THAT'S NECESSARY. AND I THINK THAT GETS EXPENSIVE, FRANKLY. AND I DO THINK THAT'S, I MEAN, THAT IS WHAT THEY WERE GOING TOWARDS BECAUSE THERE ARE DEEMOS THAT AREN'T INCORPORATED. AND I THINK THEY HAD A, I MEAN, THEY HAD AN, YOU KNOW, EXAMPLES OF ONES THAT HAD THEY'VE DONE. I KNOW THEY MENTIONED THAT IN OUR INTERVIEW WITH THEM, UM, THAT THAT WAS SOMETHING THAT THEY COULD HELP CONTRIBUTE TO THAT. SO I JUST WANT, YEAH, I JUST WANT TO MAKE SURE WE'RE ON THE SAME PAGE AND THEN WITH THE TOWN GOING FORWARD TOO, BECAUSE JLL IS WORKING ON THESE BYLAWS FOR THIS BOARD. SO THE BOARD IS, IS THE COMMITTEE, BUT IT, THEY, IT'S MORE OF LIKE THIS LEADERSHIP EXECUTIVE ROLE, WHICH WAS DISCUSSED IN THIS THREE B STANDING TARAN, I GUESS MAYBE I MISSED THE WHOLE, UM, BOARD WITH, WITH CHECK WRITING RESPONSIBILITY. BUT MY UNDERSTANDING WAS THAT THE BOARD WANTED DECISION-MAKING AUTHORITY BECAUSE THAT WAS WHAT WAS ABSENT FROM THE PREVIOUS COMMITTEE. THEY FUNCTION MORE IN AN ADVISORY CAPACITY AND NOT IN A DECISION-MAKING CAPACITY. AND SO I AM ALL FOR THE BOARD BEING A DECISION MAKER BECAUSE THEY ARE THE ONES WHO ARE RESEARCHING, TAKING THE DIRECTION FROM JLL AND DECIDING WHERE BEST TO PUT THE FUNDS THAT WE COLLECT. UM, BUT IN TERMS OF THE ACTUAL CHECK WRITING FUNCTION, I ASSUMED BASED ON THE FACT THAT WE HAD, THAT WE WERE ASKED TO BE THE FISCAL AGENT THAT WE, THAT WAS GOING TO REMAIN AT EITHER THE TOWN OR THE COUNTY AND THE TOWN DECIDED THE COUNTY COULD DO IT. AND SO THE COUNTY WOULD FUNCTION IN THAT WAY. SO THAT WAS MY UNDERSTANDING, ALL OF THAT. AND THAT WAS MY UNDERSTANDING AS WELL. SO, AND, AND I DON'T, AND KNEW YOU ALL WERE, DID MEET WITH MS. THOMPSON AND MR. LAUGHS, JULY SPACE. SO YOU ALL KNOW MORE THAN, YOU KNOW, THAN I DO ABOUT IT. WE MET AS A GROUP AND YOU WERE BOTH KIND OF NOMINATED FROM THIS WHOLE DISTINCTION THING. I'M NOT SURE EVER WAS DISCUSSED AT, AT LENGTH, BUT WE CERTAINLY CAN TALK ABOUT HOW TO WORK THROUGH THAT. I THINK IT'S GONNA COME UP AT THE COMMITTEE MEETING AND I THINK IT'S GOING TO COME UP, DO THE, JUST THE CURRENT COMMITTEE, WANT TO BE BOARD MEMBERS, YOU KNOW, MANAGING A CONTRACTOR. SO THEY MIGHT NOT ALL WANT TO BE. AND THAT WAS DISCUSSED AS WELL THAT SOME OF THE COMMITTEE MEMBERS PREFERRED THE ADVISORY ROLE BECAUSE HAVING, UM, THE DECISION-MAKING RESPONSIBILITY AND WANT TO BE MANAGING SOMEONE RIGHT. OR MANAGING SOMETHING. YEAH, EXACTLY. SO YES, SIR. I DID NOT ASK THEM THEY'RE ON OUR, THEY'RE ON OUR SIGNS NOW. I [01:50:01] DON'T KNOW IF THEY CONTRIBUTE IT TO, THAT WAS 20 YEARS AGO. I'M NOT SURE. UM, NO, I MEAN, THAT'S SUCH A BIG TOURISM DESTINATION OF OURS. THAT'S ALL I HAD. I WASN'T HURT THE ASS THOUGH. THAT'S RIGHT. I WANT THEM TO GO TO FAST PASSES, LIKE DISNEY SO THAT WE DIDN'T HAVE THIS BACKED UP. I THOUGHT THEY HAD TALKED ABOUT THAT AT ONE OF THE TIMES THEY PRESENTED HERE THAT, WELL, THAT WOULD BE GREAT IF WE CAN DO FAST PASSES. SO YOU HAVE A CERTAIN TIME THAT YOU CAN ENTER THEM. YEAH. THE PARK, THE YEAR AFTER THAT, ONCE YOU GET PAST THE, UM, THE GATE IN YOUR END, THOUGH, IF THE LEAD CAR IS GOING FIVE MILES AN HOUR, IT DOESN'T MATTER HOW FAST YOUR PAST IS. YOU'RE ALL BEHIND THEM. SO, UM, ALL THOSE A FEW TIMES I WOULD HAVE CROSSED, I DON'T KNOW HOW ANYBODY SAW ANYTHING. THEY WERE GOING SO FAST. YEAH, THEY DO. WHEN I'VE BEEN UP THERE TOO, YOU KNOW, ESPECIALLY LATELY DO Y'ALL HAVE ANY MORE QUESTIONS FOR ME OR, UM, UM, SO THIS WILL BE ON, UM, THE WAYFINDING, THE MOA, UM, THAT WILL BE ON YOUR AGENDA NEXT WEEK. OKAY. OKAY. THANK YOU, KAREN. ANY, YOU WANT TO BRING UP, FORTUNATELY, [D. Discussion – FY 2021-2022 Proposed Budget – Keith McLiverty/Ed Daley] ANY OTHER QUESTIONS THAT YOU COME UP WITH AFTER YOU'VE LOOKED AT THIS, THIS REALLY GIVES US OUR BASIS FOR THIS NEW BUDGET. UH, YOU ALWAYS LIKE TO HAVE THE AUDIT, SO YOU ENSURE THAT YOU HAVE THE RIGHT TREND LINES AND SO FORTH WITH IT. UM, WE WILL BE BACK, UM, PROBABLY THE END OF NEXT WEEK. WE SAID WE WILL HAVE A DRAFT BUDGET LIKE THIS FOR YOU TO LOOK AT, ALONG WITH THE REVENUES. UM, THE BIGGEST CHANGES YOU WILL SEE ARE, UM, PLACING THE ECONOMIC DEVELOPMENT AUTHORITY AS THEY HAVE A SEPARATE FUND RIGHT NOW THAT, UH, THE TREASURER PUTS MONEY IN AND WE'RE GOING TO CREATE A DEPARTMENT IN THAT FUND. SO THEIR MONEY WILL BE SEPARATED. AND THAT WILL BE A LINE ITEM APPROPRIATIONS THERE THAT YOU WILL APPROVE. AND THERE'LL BE A TRANSFER IN THE GENERAL FUND ECONOMIC DEVELOPMENT TO THIS ECONOMIC DEVELOPMENT FUND. AND THEY'LL BE WITH THAT. ALSO, THE PAYMENTS FOR PROFESSIONAL SERVICES FOR LEGAL FEES IN THAT DEPARTMENT WILL BE ITEMIZED RATHER THAN IT BEING IN THE BOARD OF SUPERVISORS. AND IT WILL BE AN APPROPRIATE AND AMOUNT. AND WHEN WE REACH THAT AMOUNT, IF WE DO, THEN WE WILL HAVE AN ADDITIONAL APPROPRIATION TO GO WITH IT. AT THAT TIME, IF WE REACH THERE, UM, YOUR DEBT SERVICE WILL BE ITS OWN FUND AND YOUR, UM, CAPITAL PROJECTS WILL BE ITS OWN FUND. AND WE'LL BE TALKING WITH SCHOOLS ABOUT THE FACT THERE'S A SCHOOL CONSTRUCTION FUND AND A CITY CONSTRUCTION FOND OR COUNTY, EXCUSE ME AGAIN, MY OLD STUFF ON THERE. UH, BUT THERE'S A S TWO S THERE'S SEVERAL FUNDS IN THERE THAT FOR SCHOOL CONSTRUCTION PROJECTS, AND WE'LL BE CONSOLIDATING ONE AND IN YOUR CAPITAL, WHICH YOU HAVE NOW, YOU'LL SEE ITEMS LIKE THE REGIONAL JAIL AND THE JUVENILE DETENTION CENTER WILL COME OUT OF CAPITAL AND GO INTO THE OPERATING EXPENDITURES WHERE THEY PROBABLY IN A DEPARTMENT NEAR THE SHERIFF, SINCE THEY'RE RELATED TO A CRIMINAL JUSTICE AND CARCERATION, UH, COST RECOVERY, WE HAVE A SEPARATE FUND. AND THEN WE HAVE AN ACCOUNT IN THE GENERAL FUND AND WE WILL BE MOVING COST RECOVERY TO THAT ACCOUNT SO THAT IT'S ALL THE MONEY COMES IN AND IS EXPENDED FROM THAT. AND YOU WILL APPROVE A BUDGET FOR COST RECOVERY, AND IT WILL BE IN THAT ONE FUND THERE. UH, WHAT ELSE? [01:55:04] YEAH, I MENTIONED THE DEBT SERVICE FUND AND THE CAPITAL. SO DR. DALEY, BY THE TIME THAT YOU PRESENT WILL THE SPECIAL FUNDS PROJECT THING BE MORE STREAMLINED BECAUSE THERE'S, THERE'S A LOT OF CON CONSOLIDATION IN THIS, UM, PROJECTS FUNDING THAT I THINK COULD BE DONE. AND THERE'S ALSO CENTRAL COMPUTER SOFTWARE. THERE'S A CENTRAL COMPUTER FUND THAT IS $289,000. YES, MA'AM, THAT'S OUR SPECIAL PROJECT. YEAH. I WAS GOING TO SAY, SAY THAT WORD, THE, FOR IT UPGRADES AND SO FORTH. AND SO, YOU KNOW, I'VE BEEN GOING THROUGH THIS AND THERE'S, UM, THERE'S STILL FUNDS. I MEAN, THERE'S JUST STILL FUNDS ALLOCATED WHAT A CSA CHILD IMMUNITY SERVICES ACT. YEAH. OKAY. THERE'S $311,000 IN THAT. YES. AND SO WANNA ADDRESS THAT OR DO YOU WANT ME TO, YOU WANT TO GO AHEAD? UM, WE'VE KEPT THAT IN THE FUND, THAT'S A RESERVE IN CASE THEIR DEPARTMENT GOES OVER. UH, WE LOOKED AT THE LAST 10 YEARS. THEY'VE NEVER NEEDED MORE THAN $4,000. SO WE'RE GOING TO BRING THAT DOWN. WE'RE PROBABLY GOING TO BRING IT DOWN TO SOMEWHERE BETWEEN 80 AND A HUNDRED THOUSAND, SO THAT THE BALANCE IS GOING TO SHIFT OVER AS WELL, BACK TO GENERAL FUND RESERVES, GENERAL FUND RESERVES, FUND RESERVES. SHE HEARS WHEN YOU SHIFT THESE, WE DON'T WANT TO SUPPLANT THE OPERATING BUDGET, RIGHT? BECAUSE IF YOU TAKE ANY OF THAT MONEY AND DON'T PUT IT IN YOUR RESERVE AND YOU USE IT TO OFFSET YOUR OPERATING BUDGET, ALL YOU'RE GOING TO HAVE TO DO IN THE NEXT NEXT YEAR IS TAX TO MAKE UP THAT DIFFERENCE. RIGHT? SO THE BALANCE HERE IS TO SHIFT IT TO, WE'RE GOING TO GET THE LONGEST ROI, THE BEST ROI. IF YOU USE IT IN YOUR OPERATING BUDGET, YOU HAVE TO RAISE TAXES THE FOLLOWING YEAR TO MAKE UP THE DIFFERENCE THERE. SO WE'RE GOING TO WANT TO MAKE SURE WE'RE GOING TO PRESENT THE PLAN TO YOU. THAT SHOWS WHAT WE'RE MOVING, WHERE AND WHY, AND THE RESERVE ACCOUNT WILL GO UP. SO IT'S, WE RUN THE RISK WITH THAT, THAT NEXT YEAR, WE SUDDENLY GET A LARGE NUMBER OF, UH, EMERGENCIES IN CSA AND OUR CASELOAD SKYROCKETS, UM, MORE THAN NORMAL. AND WE HAVE TO COME BACK TO THE BOARD TO APPROPRIATE ADDITIONAL FUNDING BEYOND, UH, WHAT THE IT'S ABOUT 1.705, I BELIEVE. IS THAT ABOUT RIGHT? SOMETHING LIKE THAT, THAT WHAT WE APPROPRIATE FOR CSI THAT'S A CSA IS PART OF THE CPM T FUNDING, CORRECT? CTMT YES, YES. RIGHT? PLANNING AND MANAGEMENT TO THAT. IT'S A RISK, IT'S A RISK WITH WHAT THAT DOES IS, UM, SAY WE GET A FAMILY THAT WOULD MOVE INTO WARREN COUNTY THAT HAS TWO OR THREE CHILDREN WITH, UM, SPECIAL NEEDS. IF THEY QUALIFY, UM, FOR FUNDING UNDER THESE PROGRAMS, THEN WE'RE WHERE IT'S A REQUIREMENT THAT WE TAKE CARE OF THAT. AND YOU NEVER KNOW THAT YOU, YOU DON'T KNOW, YOU KNOW, FROM ONE, ONE MONTH TO THE NEXT WHAT, UM, AND THOSE CAN BE SOME SUBSTANTIAL COSTS BECAUSE IF WE CAN'T PROVIDE THOSE SERVICES WITHIN COUNTY, THEN YOU HAVE TO FIND SOMEWHERE THAT WILL, AND YOU, IT GETS VERY COSTLY. IT'S VERY EXPENSIVE. AND IT WAS, UM, THE STATE TOOK 'EM 30 YEARS AGO, THEY TOOK A VARIETY OF PROJECTS THAT WERE FUNDED 80% STATE, 20% LOCAL. AND THEY COMBINE THEM FROM EDUCATION AND FROM SOCIAL SERVICES AND FROM CRIMINAL JUSTICE. AND THEY PUT THEM ALL TOGETHER IN ONE BIG POT, CREATED CSA AND FUND IT APPROXIMATELY 50 50 SO THAT THE LOCAL GOVERNMENT COULD PAY MORE. AND THEN THEY WONDER WHY PROPERTY TAXES GO UP CNN. SO IF WE'RE IN FISCAL, IF OUR FISCAL HEALTH IS GOOD, THEN I WANT TAXES TO GO DOWN. I DON'T WANT TEXAS TO GO UP. THAT'S WHAT WE'RE HERE TO DO IS FIGURE OUT A WAY TO BE MORE EFFICIENT SO WE CAN LOWER PEOPLE'S TAX LIABILITIES, NOT RAISE THEM. SO, UM, YOU KNOW, THAT'S WHY I'M SITTING HERE LOOKING AT, I MEAN, WE LIVE, WE HAVE $4.1 MILLION, APPARENTLY FROM 2010, WHEN THEY CHANGED OVER TO FIRST HALF, UH, BILLING VERSUS SECOND HALF BILLING, IT USED TO BE THAT YOU'RE, YOU'RE TALKING TEXAS, WE'RE DOING DECEMBER. THEY WENT TO THE FIRST HALF OF WHICH WAS JUNE AND THEN DECEMBER. AND WE STILL HAVE THAT IN THIS, IN THIS NOVEMBER. I'M NOT SURE THAT'S THERE MA'AM WE THINK THERE'S ABOUT 9 MILLION, ABOUT 9 MILLION AGAINST THOSE PROJECTS. AND PART OF IT IS THAT [02:00:01] 4 MILLION IS ACTUALLY GONE, BUT IT HASN'T BEEN TAKEN OFF THE BLOCKS. IT WAS COLLECTED. CAUSE IT'S THE AUDIT. IT'S THIS NUMBER THAT I HAVE HERE IS THE EXACT SAME NUMBER AS THE AUDIT NUMBER. YEAH. WELL, BY ABOUT THERE'S THE $6,000 DIFFERENCE CAUSE I COMPARED THEM. SO THIS I ASSUME IS MORE OF WHAT YOU'RE DIGGING INTO TO FIND OUT. YEAH. IT'S THE AUDIT. IF YOU LOOK ON UNDER THE, ON THE AUDIT OF SPECIAL, UNDER SPECIAL PROJECTS, THAT NUMBER IS INCLUDED BECAUSE THAT'S THE ODD NUMBER THAT'S ON THAT SHEET. AND WITH WHAT T WAS MICHAEL WAS SAYING IS THEY'RE LOOKING AT THAT SHEET. OKAY. OH, OKAY. FIND YOUR RECOMMENDATION FOR CONCILIATIONS TO BE DONE. SO WE'RE GOING TO COME BACK TO YOU WITH A HOLE. THAT'S GOING TO BE PROBABLY YEAH. CAUSE NOW I'M TOTALLY CONFUSED. WELL, LIKE YOU SAID, IT'S CLEAR AS MUD. YEAH. AND, AND THE BOTTOM LINE FOR ME IS THAT WE, WE, AND I TRUST YOU GUYS TO START ADD WATER TO THIS, TO THIN THAT MUD DOWN SO THAT WE ALL UNDERSTAND IT. AND THAT WE'VE GOT A GOOD, CLEAR PICTURE OF WHERE WE ARE AND WE CAN PRESENT A TRUE AND ACCURATE PICTURE, A PICTURE OF WHAT WE ARE, WHERE WE HAVE, YOU KNOW, FOR THE CITIZENS OF THIS COUNTY. SO THEY KNOW THAT WE'RE SPENDING THEIR MONEY WISELY AS WE CAN. UM, AND THAT, AND THAT'S MY GOAL. AND I KNOW THAT'S YOUR GOAL AS WELL. AND I APPRECIATE ALL THE WORK YOU'RE DOING, TRYING TO GET THIS STRAIGHTENED OUT AND IN THAT, UM, BECAUSE MS. MATTHEWS IS HERE AND SHE'S PART OF MY, UM, COMMITTEE LOOKING INTO, UH, THE CONCERNS WITH A POS F YOU'RE GONNA, YOU'RE WORKING ON THAT AS WELL. AND WE'LL GET TOGETHER AS SOON AS YOU'RE ABLE TO. I KNOW YOU'RE OKAY. THANK YOU. AND YOU LET ME KNOW, AND THEN WE'LL ALL GET TOGETHER AND SIT DOWN. I APPRECIATE THAT. HE WORKS ON THAT, ON LUNCH BREAK IN THE MORNING AND THE MORNING HE WORKS ON THE AUDIT AND THEN THE AFTERNOON HE WORKS ON THE BUDGET. THAT'S YOUR NEW DIET PLAN, CORRECT? IT'S LUNCH BREAK. WELL, MR. MICK LIBERTY, WE SURE ARE GLAD YOU'RE HERE. OKAY. THAT'S WHAT WE HAVE TONIGHT. MA'AM AND WE'LL BE BACK. DO YOU WANT TO SAY ANYTHING ABOUT THE ADVANCE? OH, YES. UM, I SENT OUT AN EMAIL ABOUT THE ADVANCE, UM, THAT WE WOULD LIKE TO HAVE EITHER MARCH 19TH AND 20TH, UH, WITH THE BOARD AND STAFF OR WHICH WAS IT? THE 26TH AND THE 27TH. UM, I HEARD FROM MR. MAID. OH, WELL, MRS. OATES ALREADY HAD, UM, GOTTEN HER REPLIES. SO, UM, YOU SAID EITHER WOULD WORK FOR YOU. YOU'RE TELLING ME WHERE AND I'LL BE THERE. OKAY. UH, I KNOW YOU SAID THE 19TH AND 20TH. YUP. WELL FOR YOU, I CHECKED MY CALENDAR, BOTH WORK, MR. FOX, EITHER. SO, AND I EITHER IS GOOD FOR ME. SO, UM, WHAT IS THE TOWN PREFER? THE TOWN WE WILL MEET TENTATIVELY. WE HAVEN'T SET A DEFINITE DATE, BUT APRIL THEY WANTED TO DO THEIRS TOGETHER FIRST. OKAY. SO WE'RE LOOKING AT APRIL FOR, UH, TO GET TOGETHER WITH THE TOWN, UM, WHICH I'M LOOKING FORWARD TO THAT I KNOW THE FIRST ADVANCE WE DID, UM, WITH MS. ROMLEY. IT WAS, IT WAS, I THOUGHT. AWESOME. AND SO FOR STAFF, I HOPE AS MANY PEOPLE AS WE CAN, SOCIALLY DISTANCE PROPERLY WILL JOIN US. UH, CAUSE I THINK IT WOULD, UM, BE A GOOD THING TO DO THEM PERIODICALLY. I MEAN, WE DON'T WANT TO DO THEM EVERY MONTH OF COURSE, BUT I THINK IT'S BEEN WHAT ABOUT FIVE MONTHS OR SO? IT WAS NOVEMBER. YEAH. SO, UM, SO WE WILL PLAN ON THE 19TH AND 20TH THEN IF THAT WAS SAID, THAT SOUNDS GOOD. WHAT'D YOU LIKE WE'LL DO THAT. AND UM, THE, UH, TOWN WILL BE, UH, AN EVENING EVENT, UH, TOWARDS THE MIDDLE TO THE END OF MARCH OF APRIL RATHER. AND THEY'RE GOING TO HAVE THEIR OWN, UH, GATHERING BEFORE THAT, SOMETIME IN THE NEXT MONTH. I HAVEN'T GOTTEN A DATE YET FROM MR. HICKS. WHEN I KNOW WHEN MRS. GRUMBLING IS NOT AVAILABLE [02:05:01] AND WE'LL WORK AROUND THAT SCHEDULE. AND I THINK THAT'S PROBABLY WHAT WE HAD FOR TONIGHT, UNLESS ANYBODY'S GOT ANY QUESTIONS OR COMMENTS OR THINGS THAT YOU WANT TO BRING OUT TONIGHT, ALL AGREE WE ARE DONE FOR THE NIGHT. THANK EVERYONE FOR COMING. * This transcript was created by voice-to-text technology. The transcript has not been edited for errors or omissions, it is for reference only and is not the official minutes of the meeting.