[00:00:03]
ALL RIGHTY.IT IS SIX O'CLOCK, SO WE CAN START THIS SPECIAL MEETING ON APRIL 15TH, 2026.
[A.1. FY 2026-2027 Budget Public Hearing Feedback ]
WHAT WE HEARD LAST NIGHT AT OUR PUBLIC HEARINGS.I, I KNOW I MADE A, A LIST OF THINGS THAT I, I AM GUESSING EVERYONE DID.
JOHN, CAN YOU HEAR US OKAY? YES, I CAN.
UM, YES, SIR, YOU START US OFF.
WELL, UM, BEFORE WE START IN ON REVENUES, IS THERE CONSENSUS THAT WE ARE GOING TO BUILD, KEEP THE EXPENDITURES AS OUTLINED IN THE BUDGET AS STABLE? THEY'RE NOT GONNA BE, SO NOW WE'RE LOOKING FOR REVENUES TO SUPPORT THOSE EXPENDITURES.
IS THAT WHAT WE'RE I THINK SO.
I MEAN, IT, UH, WE DID PULL ALL THE ONE-TIME EXPENDITURES OUTTA THIS BUDGET.
SO, UH, YOU KNOW, UH, ASSET REPLACEMENT, THE ROOFS AND ALL THAT, WE WERE HOPING WE'D HAVE ENOUGH IN A FUND BALANCE, UM, TO WORK TOWARDS THAT TO, UH, GET THOSE NEEDS CALLED BACK UP.
BUT, UH, WHAT WE WERE AT 103, 103, UM, 9 22, 9 23.
I THINK THAT WAS, UH, I THINK YOU'VE MEMORIZED THAT CHANGE.
I, I HAVE, I HAVE NOTHING TO, UH, I HAVE NO EVIDENCE TO DISAGREE WITH THAT NUMBER BASED ON ALL DEPARTMENT HEADS AND CONSTITUTIONAL OFFICERS THAT HAVE REQUESTED THESE NUMBERS IN THIS BUDGET.
SO I, I THINK SO, IF THAT IS TRUE, UM, THE ONLY TWO THINGS THAT THIS BOARD HAS TALKED ABOUT THAT IS NOT IN OUR BUDGET, WHICH I PLAN TO BRING TO YOUR ATTENTION ON APRIL 22ND, WOULD BE CHESTER GAP.
AND THE RECOMMENDATION THERE WILL BE TO FUND CHESTER GAP, MAY AND JUNE, WHICH WILL GIVE THIS BOARD AND MEMBERS OF THE BOARD AND WRAP TIME TO SIT DOWN AND LOOK AT THEIR SUGGESTED, UM, MEMORANDUM OF UNDERSTANDING.
SO IT CAN BE A JOINT ONE, UH, THAT THEY'VE PROVIDED A DRAFT, WHICH I'VE NOT SEEN YET.
AND, AND THE, UH, SECOND THING THAT I'M GOING TO SUGGEST IS, UH, THE FUNDING OF THE AIRPORT HANGERS.
AND THAT WILL EITHER BE COMING OUTTA YOUR FUND BALANCE, OR AS YOU HEARD FROM DAVENPORT, UM, YOUR DEBT COUNSELORS, THAT YOU MIGHT BE ABLE TO PUT THAT OUT AND GET A LOAN.
AND THEN THE REVENUE THAT YOU GET FROM RENTING THOSE AIRPORT HANGERS WILL PAY THE LOAN.
BUT I HOPE TO HAVE SOME NUMBERS FOR YOU TO SHOW THAT THAT HAS ACTUAL POSSIBLE, UM, BECAUSE JOHN WAS NOT AT THE, AT THE AIRPORT COMMISSION.
I HAD THE GREAT FORTUNE OF BEING THERE ON MONDAY NIGHT.
UM, I ALSO KNOW THERE ARE 23, UH, PEOPLE ON THE LIST WAITING FOR HANGERS.
UH, AND I THINK THOSE 23 ACTUALLY HAVE PUT A DEPOSIT AND THEY'RE READY TO, TO GO.
SO I THINK, AS THEY SAY, UM, AS THEY SAY IN FIELD, EXCUSE ME, IN FIELD OF DREAMS, BUILD IT AND THEY WILL COME.
WELL, WE'RE, WE'VE PUT THE FOUNDATION IN AND IT'S ALMOST READY TO PUT THE HANGERS ON.
I DON'T WANNA STEAL THE THUNDER FROM THE AIRPORT COMMISSION AS FAR AS THE AIRPLANES THEMSELVES.
AND WE, WE HAD TALKED ABOUT THIS.
IT'S A GOOD CHANCE OF WE ARE TAXING THEM.
WE, BECAUSE THEY'D BE HOUSED HERE, WE WOULD, UH, CORRECT.
I DID CHECK THE PLANES THEMSELVES.
THAT WOULD, THAT'S, I DON'T HAVE AN AMOUNT, BUT I DID ASK THE QUESTION.
WE ARE TAXING AIRPLANES, AND THAT'S TRUE.
NO, PLANES ARE PRETTY EXPENSIVE.
BUT DOESN'T, JOHN, DOESN'T THAT REVENUE FROM PROPERTY TAX AT THE AIRPLANES GO BACK TO THE AIRPORT COMMISSION? YES, IT DOES.
IT'S ABOUT $25,000 AND THAT GOES INTO THE ENTERPRISE POINT.
THAT'S BETWEEN THAT AND THE FUEL IS WHAT HAS CAUGHT CUT DOWN THE AMOUNT OF MONEY THAT COMES OUT OF OUR BUDGET EACH YEAR FOR THAT.
IT USED TO BE QUITE A SIGNIFICANT AMOUNT OF MONEY OUT OF THE GENERAL FUND BUDGET TO, UM, TO OPERATE THAT.
SO IT'S, IT'S BEEN CUT DOWN SIGNIFICANTLY.
SO YOU COULD USE IT TO FUND ITSELF, BASICALLY.
AND AS FAR AS I, I'M ONE, I DON'T LIKE TO BORROW MONEY IF WE DON'T HAVE TO.
[00:05:01]
I KNOW WHEN I CAME ON THE BOARD, I THINK WE WERE ANYWHERE FROM 145 TO 150 MILLION WITH, OF DEBT SERVICE.AND, AND MUCH OF THAT WAS THE SCHOOLS, WHICH WE NEEDED THE SCHOOLS, AND THEY'RE NOT CHEAP.
UM, AND ALL AND SOME OTHER, THE SHERIFF'S DEPARTMENT, FIRE DEPARTMENT, IT WAS A LOT OF, UM, THINGS THAT HAD BEEN KICKED DOWN THE ROAD FOR A LONG TIME.
AND WE'VE GOTTEN THAT DOWN TO, I THINK WE'RE SOMEWHERE IN THE 90 MILLION ZONE OF.
SO IF THERE'S A WAY OF, OF FUNDING THAT WITHOUT BORROWING, I, I PREFER THAT OPTION PERSONALLY.
UM, WELL, I, I WANT TO PUT THAT ON THE TABLE TONIGHT SO WE'D HAVE TIME TO THINK ABOUT MM-HMM
UM, AS WE COME UP ON THE 22ND.
UH, SO THERE ARE TWO ITEMS THAT ARE NOT IN OUR BUDGET, UH, BUT WE'LL COME TO YOU LATER.
THE OTHER THING TOO, IS WHEN YOU TALKED ABOUT THAT STUFF, AND LIKE I SAID, DURING THAT TIME, WE PUT IN TWO NEW HIGH SCHOOLS.
WE CONVERTED THE OLD HIGH SCHOOL INTO A MIDDLE SCHOOL.
WE DID THE PUBLIC SAFETY BUILDING, PUBLIC HEALTH BUILDING, AT LEAST ONE, MAYBE TWO FIRE DEPARTMENTS.
AND I THINK, IF YOU REMEMBER WHEN THE GENTLEMAN FROM DAVENPORT WAS HERE, THE OTHER FELLOW I'M MORE, UH, FAMILIAR WITH, AND THAT'S TED COLE SEEMED LIKE HE WAS COMING HERE EVERY SIX MONTHS.
I THINK SO, BECAUSE THE BASIS POINTS DECREASED.
AND I THINK, I DIDN'T REALIZE IT WAS THAT MUCH.
I THINK HE SAID THAT IT WAS LIKE, I THOUGHT IT WAS LIKE MAYBE FIVE OR 6 MILLION WE SAVED IN DEBT SERVICE, BUT I THINK IT WAS MORE LIKE 10 OR 15.
SO, I MEAN, YOU KNOW, AND THEN FACTOR IN THE COST OF THE MONEY OVER TIME AND THE WHOLE THING.
SO WE DID MAKE SOME GOOD STRIDES.
NOW IT'S JUST A MATTER OF, UH, NEEDING TO, UM, UH, DO THE MAINTENANCE AND UPKEEP ON THOSE BUILDINGS.
NO, WE, UM, WE DEFINITELY, YOU, YOU GOTTA KEEP UP YOUR FACILITIES.
THERE'S, YOU CAN'T LET 'EM, THE, THE LONGER YOU KICK THAT DOWN THE COUNTER, THE MORE EXPENSIVE IT IS.
SO, AND I, AND I DO SEE THE BENEFIT OF THE HANGERS.
UM, THE AIRPORT IS GROWING AND THAT'S A CONTINUAL REVENUE.
SO I DON'T KNOW HOW MANY YEARS IT'LL TAKE TO, TO PAY ITSELF BACK, BUT THERE'S A RETURN ON INVESTMENT THERE.
SO, UM, THAT ONE DOES MAKE SENSE, ESPECIALLY WHEN YOU'VE GOT THAT MANY PEOPLE ALREADY LINED UP WAITING FOR THEM.
SO, SO MR. JAMESON, YOU PRESENTED US WITH AN OPTION AND WE HAVE NOT MET AS A GROUP.
YOU SENT THAT OUT, LIKE I SAID LAST NIGHT, I THINK BOARD MEMBERS GOT THAT ON SATURDAY YOU SENT OUT.
AND I'M GONNA BE HONEST, UM, THE TIMING OF THE TWO EMAILS THAT YOU SENT OUT, I'VE SCANNED OVER 'EM.
I DON'T KNOW IF ANYBODY ELSE HAS EVEN HAD A CHANCE TO GO OVER IT, BUT, UM, YEAH, I APOLOGIZE FOR THAT.
UM, THOSE WERE JUST HOPEFULLY SOME HELP FOR GUIDING SOME DISCUSSION.
UM, THEY WERE KIND OF ADDENDUMS TO THE PROPOSAL I'D LIKE TO OFFER, FIRST OFF, IF THE REST, OTHER SUPERVISORS WOULD LIKE TO GO THROUGH THEIR REFLECTIONS ON THE MEETING AND STUFF FIRST BEFORE I DI DIVE INTO THIS, UM, OKAY.
I MAY, I, I THOUGHT YOU MIGHT WANNA START OFF WITH THAT AND THEN WE COULD WORK THAT IN.
HOW, HOW DOES THE REST OF THE BOARD DO YOU WANT TALK ABOUT WHAT WE HEARD LAST NIGHT OR HEAR THAT AND THEN INCORPORATE IT WITH WHAT WE HEARD LAST NIGHT? SURE.
IT DOESN'T MATTER TO ME EITHER.
WHATEVER'S, I MEAN, I'M TELLING YOU, THEY SAY WOMEN ARE INDECISIVE.
OH,
AND THEN WE CAN INCORPORATE IT WITH WHAT WE HEARD LAST NIGHT.
'CAUSE IT WAS BROUGHT UP QUITE A LOT LAST NIGHT.
THE, SO I THINK THE, UM, IT'S, IT AGAIN, SORRY FOR RELATIVELY LATE NOTICE, I HAVE A TENDENCY TO EDIT, EDIT, EDIT, UM, BEFORE I PULL THE TRIGGER.
I'M SENDING, UM, THE BASIC CONCEPT THAT I'M TRYING TO, TO DO IS RELIEVE A SHOCK OF A, OF A, OF A 20% TENSE.
LIKE, I, I, LIKE, I WOULD LIKE TO BE ABLE TO OFFER THE COMMUNITY AND OUR BOARD AN OPTION.
SO I JUST, I WANTED TO PRESENT IT, UH, SOME ALTERNATIVE IDEAS.
UM, THE, THE REALLY, THE ESSENCE OF IT IS, I THINK IF, IF I COULD KIND OF CHARACTERIZE IT AS A FAMILY SITUATION, IT'S MORE RELATABLE.
UM, I'M GONNA USE THE TERM BRIDGE AND GAP, UM, YOU KNOW, IF I, AND I'M GONNA RELATE IT THIS WAY.
UM, AND I THINK PEOPLE WOULD RELATE TO A FAMILY SITUATION.
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THAT.UM, YOU KNOW, I, I DRIVE OLD CARS AND TRUCKS AND, UH, IF I TOTAL MY CAR, LET'S SAY A SCENARIO WHERE I TOTAL MY CAR AND MY OLD TRUCK, AND I'M, I'M NOT GONNA GET ANYTHING FROM THE INSURANCE COMPANY.
THEY'RE JUST, YOU KNOW, EVERYBODY'S EXPERIENCED THAT YOU'RE TOTALED.
YOUR, YOUR INSURANCE COMPANY SAYS THEY'LL GIVE YOU A COUPLE THOUSAND DOLLARS.
UM, SO I'M GONNA NEED A NEW CAR.
AND SO I HAVE A NEW SIGNIFICANT ITEM IN MY HOUSEHOLD BUDGET THAT I DON'T HAVE, UH, CASH TO PAY FOR.
UM, BUT I CAN LOOK AT MY SAVINGS ACCOUNT AND I, AND REALIZE, YOU KNOW, WE TRY TO KEEP A FEW MONTHS WORTH OF SAVINGS IN THERE.
AND, UM, AND I CAN LOOK IN THERE AND SAY, I HAVE SOME MONEY IN THERE.
UM, BUT I ALSO KNOW THAT MY, MY WIFE'S CAR WILL BE PAID OFF WITHIN THREE YEARS.
SO I CAN, YOU KNOW, HAVE SOME CHOICES TO MAKE.
UM, I CAN DE BASICALLY, UH, DEPLETE MY SAVINGS AND JUST, JUST TAKE A BIG LOAN, UM, BUY THE CAR.
OR I CAN SAY, WELL, YOU KNOW, WHAT I CAN DO IS ACTUALLY GET THE, THE VEHICLE THAT I NEED AND I CAN DRAW OFF OF MY SAVINGS ACCOUNT TO MAKE THOSE PAYMENTS JUST UNTIL THE TIME THAT MY WIFE'S CAR IS IS PAID OFF.
AND THAT WILL FREE UP HOUSEHOLD CASH FLOW TO BE ABLE TO THEN TAKE OVER PAY PAYING FOR THE CAR.
SO, UM, YOU KNOW, WE USE THE TERM ONE TIME MONEY.
UH, JOHN JUST LEFT, UH, ONE TIME, UH, MONEY FOR, FOR ONE TIME EXPENSES.
AND IN THIS CASE IT'S, THE IDEA IS IT'S ONE, MY SAVINGS ACCOUNT IS ONE TIME MONEY.
I CAN'T, YOU KNOW, BUY A CAR ON A FIVE YEAR LOAN AND PLAN TO PAY FOR THAT OUT OF MY SAVINGS ACCOUNT FOR THE FIVE YEARS.
BUT IF I CAN SEE A LIMITED AMOUNT OF TIME BEFORE MY WIFE'S CAR'S PAID OFF, THAT I'LL HAVE THAT CASHFLOW, I'LL BE ABLE TO LIMIT THAT, THAT I'LL ONLY BE DRAWING OUTTA MY SAVINGS ACCOUNT FOR A LIMITED TIME.
UM, AND IN THE MEANTIME, YOU KNOW, WHEN, WHEN A HOUSEHOLD IS, IS VERY TIGHT, YOU KNOW, THERE'S, IT'S, IT'S PRETTY, PRETTY COMMON.
YOU KNOW, I, I SEE, UM, PEOPLE GET A SIDE HUSTLE MAYBE THERE, I HAVE A FRIEND WHO, WHO DOES LAWNS.
UM, SO IT'S A, THERE'S AN OPPORTUNITY FOR, FOR ANYBODY WHO, WHO REALLY TRIES TYPICALLY, UM, TO GO OUT AND GET AN EXTRA JOB.
AND A LOT OF PEOPLE HAVE TO DO THAT.
UM, SO I THINK THAT PART, THE, THE INCOME PART OF THIS PLAN ON THE BRIDGE IS THAT I, I'M GOING TO TAKE AS LITTLE AS I CAN OUTTA MY SAVINGS.
I KNOW I'M GONNA HAVE TO TAKE SOME OUT, BUT I'M ALSO GONNA GO OUT AND TRY TO GET SIDE HUSTLE, GO AND GET AN EXTRA JOB TO GET SOME REVENUE TO OFFSET THAT, THAT THAT'S THE WAY I, I COULD BEST EXPLAIN THIS IN A, IN A FAMILY SITUATION.
UM, IN THE COUNTY SITUATION, UM, WE HAVE A RESERVE FUND AND WE HAVE WHAT IS EXCESS RESERVES.
UM, AND THAT IS, THOSE ARE ACCOUNTED FOR.
AND, AND BY LOOKING AT BANK STATEMENTS AND SEEING HOW MUCH CASH IS IN THERE, UM, WE HAVE A FIVE YEAR ANALYSIS, UH, FROM ATLANTIC UNION MUNICIPAL ADVISORS, UM, THAT SHOWS OVER A FIVE YEAR PERIOD, A VERY, A VERY CONSISTENT UP, DOWN, UP, DOWN AS A SAWTOOTH PATTERN WHERE THE COUNTY RECEIVES RE TAX REVENUES BECAUSE THEIR, THE REMITTANCES COME ESSENTIALLY TWICE PER YEAR.
AND THEN WE, WE, WE HAVE A NET DRAW DOWN OVER THAT TIME.
SO THE, THE, THE PARALLEL IS, AND THE PROPOSAL IS TO, YOU KNOW, IF A, IF A 10 CENT TAX INCREASE IS ONLY A, BECOMES ONLY A 5 CENT TAX INCREASE AT THE, AT THE STATED RATE OF A PENNY PER 750,000, THAT CREATES A $3.75 MILLION GAP.
UM, SO THAT NEEDS TO BE COVERED.
AND, UM, THE IDEA IS TO COVER IT OUT OF, OUT OF EXCESS RESERVES, AND AT THE SAME TIME START GETTING IN MOTION.
YOU KNOW, A BOARD THAT'S COMMITTED TO DOING SOME THINGS THAT INCREASE REVENUE.
UM, BUT THE PRINCIPLE, THE PRINCIPLE FACTORS THAT A BOND PAYMENTS, UH, BOND PAYMENT OBLIGATIONS ARE GONNA DROP, DROP BY NEARLY $3 MILLION, UH, BY 2031.
AND THAT'S, THAT CLOSES MOST OF THE GAP.
UM, SO IN THE, IN THE PROPOSAL THAT I, THAT I PULL ON THE TABLE, I GAVE AN EXAMPLE.
UM, AND IN THAT EXAMPLE, UM, I WANTED TO INCLUDE, UM, THE POSSIBILITY OF USING THOSE EXCESS RESERVES FOR, FOR, UH, THINGS SUCH AS ROOF REPLACEMENTS.
AND SO OF THE EXAMPLE THAT I CREATED, I, I, UM, I CREATED AN EXAMPLE WHICH ACTUALLY DEPLOYED ALMOST ALL OF THE $10 MILLION OF EXCESS RESERVES.
AND THAT, THAT DEFINITION OF THAT 10 MILLION ISN'T, IS A TOPIC, UH, TO GO OVER.
UM, AND, AND THE, IN FACT, IT WOULD, THE, THE COVERING OF THIS 3.7 MILLION, $3.75 MILLION GAP FROM 27 THROUGH 29
[00:15:02]
REALLY WOULD TAKE NOMINALLY ABOUT $1.7 MILLION OF THAT EXCESS RESERVES.IT'S, IT'S ONLY A PORTION OF IT.
UM, AND THERE ARE, THERE ARE INCOMES THAT OFFSET THAT, THAT ARE, UM, UH, ONE OF THEM I PUT IN WAS A, A VALLEY HEALTH, UH, AGREEMENT TO START CONTRIBUTING TO THE TAX AND OCCURS NOT TILL 2028, UM, SELLING PROPERTY IN THE COUNTY THAT'S UNUSED.
AND, UH, AND OF COURSE THE INTEREST ON ALL THIS, ALL THIS MONEY.
AND THEN FURTHER OUT IN 29 AND 30 I, I PUT SOME, UH, SOME PROJECTIONS FOR ECONOMIC DEVELOPMENT REVENUE.
AND THE IDEA BEHIND THAT IS THIS WHOLE GAP REALLY COULD BE COVERED BY EXCESS RESERVES, BUT, BUT I THINK IT'S INCUMBENT ON US TO START LOOKING AT REVENUE THAT WOULD, THAT WOULD OFFSET IT, UM, AND MAKE A COMMITMENT TO THAT.
AND, AND, YOU KNOW, IF A NOTED, A NOTED, UM, FEATURE THAT I TRIED TO EMPHASIZE IN HERE IS THAT THIS IS THE, NO, THERE'S NO, THERE'S NO COMMITMENT OF A, LIKE AN EXCESS RESERVE ALL AT ONCE.
IT'S, IT'S A VERY, UH, DRIPPED APPROACH SO THAT WHEN THE PLAN IS UNFOLDING YEAR BY YEAR, UM, THAT ADJUSTMENTS CAN BE MADE.
UM, SO IF, IF A REVENUE THAT IS, THAT IS, UH, THE BOARD IS TRYING TO ACHIEVE ISN'T ACCOMPLISHED, UM, THEN, AND THAT NEEDS TO BE RAISED BY A TAX, THEN THE BOARD WOULD BE ABLE TO ADDRESS THAT AT THAT TIME AND RAISE IT WHEN IT'S NEEDED BY THE AMOUNT THAT'S NEEDED.
UH, THE, THE CONTRAST, I BELIEVE IS, IS RAISING IT THE FULL 10 CENTS NOW AND, UH, NOT TRYING IT, OR NOT MAKING THE COMMITMENT TO PURSUE THOSE REVENUES SO THAT WE WOULD BE COLLECTING FROM THE TAXPAYER NOW 'CAUSE WE WEREN'T SURE AND DIDN'T HAVE A GUARANTEE OF WHAT WE'LL BE ABLE TO DO, UM, IN THE FUTURE.
UM, I DO WANT TO TAKE A MINUTE TO TALK ABOUT THE, THE IDEA, YOU KNOW, THE, THE BASIS FOR, UM, FOR THE EXCESS RESERVE POSITION.
UM, I, I, UH, MET WITH MRS. FI FOR SOME TIME.
I HAVE, UH, OBTAINED STATEMENTS GOING BACK.
BASICALLY THE MOST IMPORTANT STATEMENT IS, IS THE JANUARY UH, STATEMENT.
AND IF YOU HAVE, YOU'LL HAVE YOUR REPORTS.
AND, AND I, I HAD TO INCLUDE IN THE, IN THE, UH, IN THE REPORT MY HAND MARKED UP 'CAUSE I HAD DRAWN ON THESE.
BUT, BUT, UH, WHAT THESE, WHAT THESE, THIS DATA FROM ATLANTIC UNION SHOWS, UH, IS THIS, THIS BASICALLY THIS SOFT TOOTH PATTERN THAT REPEATS IN A FAIRLY NARROW RANGE.
AND WHAT I DID IS I, I TOOK MIXED MAXES INS AND, AND JUST FRANKLY READING RIGHT OFF OF THE, UH, FORM OF THE PROVIDED SLIDES RIGHT THERE, UM, FOR EXAMPLE, OUTFLOWS FROM JANUARY 1ST THROUGH LATE APRIL, AVERAGE 15 MILLION OUTFLOWS FROM LATE JUNE TO LATE JULY AVERAGE 25 MILLION.
UM, AND WE CAN SEE IN HERE BASICALLY THE BOTTOMS, THE MAXIMUM DEVIATIONS.
UM, SO THIS IS THE INFORMATION THAT I, THAT I USED.
AND, UM, IN REFERENCE TO THE, TO THE COUNTY'S POLICY, UH, THE POLICY IS, UM, SORRY.
WARREN COUNTY'S FISCAL FISCAL POLICY STATES THE UN-DESIGNATED FUND BALANCE AT THE CLOSE OF EACH FISCAL YEAR SHOULD BE AT LEAST 15% OF THE TOTAL ANNUAL OPERATING BUDGET.
UM, AND LOOKING AT THESE, UH, CASHFLOW ANALYSIS STARTS, THAT FIGURE AVERAGES BETWEEN 35 AND $44 MILLION, UH, FOR THE PAST FIVE YEARS.
SO THAT, THAT IS NOT AN ISSUE, UM, THAT THE FISCAL POLICY THAT WE HAVE ON THE BOOKS, UM, IS NOT CLOSE.
UM, SO LET'S, I THINK THAT'S, THAT'S BASICALLY IT IN A THUMBNAIL SKETCH.
UM, I HAD, UH, SORRY FOR THE LATE, LATE THING, I TRIED TO PUT SOME, SOME IDEAS OR SOME BASIS FOR DISCUSSION OUT, UM, ON THESE.
I, ONE OF THE THINGS I, I THOUGHT MIGHT BE HELPFUL IS THAT, TO USE ANOTHER ANALOGY WHEN WE'RE TALKING ABOUT THE, THE CASH FLOW OF THE, OF THE COUNTY, UM, IF WE HAVE, IF I HAVE A BASKETBALL AND I HOLD IT AT EYE LEVEL AND DROP THAT BALL AND I DROP IT FIVE TIMES, UM, IT'S GONNA ALWAYS COME UP TO ABOUT THE SAME LEVEL.
[00:20:01]
I DROP A TENNIS BALL FROM THE SAME HEIGHT, I DON'T EXPECT THE SAME RESULT.UM, IF THE, UH, SO, SO WHAT, WHEN WE LOOK AT THIS AGAIN, THIS, THIS, UM, THIS CASHFLOW ANALYSIS FROM ATLANTIC UNION MUNICIPAL ADVISORS, WE SEE, UH, REPEATABILITY AND CONSISTENCY.
SO, SO UNLESS THERE'S SOMETHING, UM, THAT IS, SAY WE KNOW THE AIR AND THE BALL IS ONLY HALF, IF THE BALL IS ONLY HALF FULL, THEN IT WON'T BOUNCE TO, TO WHAT IT HAS IN THE PAST.
UM, OR IF IT'S A DIFFERENT BALL, IF IT DOESN'T LOOK THE SAME, THINK SOMETHING LIKE THAT.
SO, SO THE, THE RELIABILITY AND THE USE OF THIS, OF THIS CASHFLOW ANALYSIS, THIS FIVE YEAR HISTORY IS THE BASIS FOR COMING UP WITH, UH, THE APPROXIMATELY $10 MILLION OF EXCESS FUNDS.
AND, AND AS I SAID IN THE REPORT, 10 TO $15 MILLION EXCESS RESERVE COULD BE, COULD BE SUPPORTED, BUT I'M NOT ADVOCATING THAT AT ALL.
UM, SO THAT THE WAY THAT, THE ONE THING I HAVEN'T MENTIONED IS THAT WHEN WE LOOK AT THIS, UH, AT THIS HISTORY, UM, THE, THE AVERAGE BEGINNING OF THE YEAR BALANCE IS AROUND $36 MILLION.
UM, JANUARY, 2026, IT WAS $42 MILLION.
UM, SO THAT BECOMES THE STARTING POINT FOR THE CYCLE.
UM, SO YOU HAVE, AND I HAVE, AND, AND, UH, OUR TREASURER SENDS OUT ALMOST EVERY MONTH WHAT THE CURRENT BALANCES ARE.
AND WE CAN SEE THEM, WE CAN SEE THEM MOVING DOWN THIS, THIS CHART OVER TIME.
UM, BUT THEY STARTED $5 MILLION HIGHER THAN, THAN THEY HAVE ON AVERAGE IN THE PAST FIVE YEARS.
UM, IN FACT HIGHER THAN THEY EVER HAVE BEEN.
UM, WHICH IS NOTED, UM, ON THE CASHFLOW ANALYSIS FROM THE, UH, A UMA.
UM, SO THE WAY THIS IS, IS ARRIVED AT, JUST TO, TO WALK THROUGH IT VERY BRIEFLY, UH, FROM THAT $42 MILLION, UH, STARTING POINT, UH, THE, THE NEXT CHART IS CALLED THE WARREN COUNTY DRAW DOWN BY CALENDAR YEAR.
UM, SO WE CAN, THEY'VE, THEY'VE PUT IN, DONE US THE FAVOR OF PUTTING THESE DASH LINES IN THERE TO SHOW US THE AVERAGES.
SO 42 MINUS 15 GETS YOU TO $27 MILLION.
UM, AND AS A BOTTOM, AND, UH, AND WITH SOME VARIABILITY THAT COULD BE SAY, UH, 21, UH, THAT AT, AT THE HIGHEST VARIABILITY THAT'S BEEN SEEN IN THE LAST FIVE YEARS, UM, THEN OVER THE UPTICK, THAT IS GENERALLY A 20 TO $23 MILLION, UH, SWING AS REVENUE COMES BACK UP.
THEN OVER THAT NEXT DRAW DOWN, IT'S LIKE 25 MILLION.
SO IF YOU TAKE 42, YOU GO DOWN, UH, 15, YOU GET TO 27, YOU GO UP 21, YOU GET TO 48 AND YOU GO DOWN 25, YOU GET TO 23, I BELIEVE, UM, WHICH IS A $23 MILLION BOTTOM.
SO IF YOU USE, IF YOU, IF YOU CONSIDERED, UH, UH, THERE'S AN, EXCUSE ME, THERE'S AN, THERE IS ONE MORE CHART AND IT'S CALLED THE SWEEP WARREN COUNTY SWEEP BALANCE, UH, AVERAGE DAILY, UH, CHANGE.
AND THE, THE ONE, THE LEFT HAND COLUMN SHOWS THE, THE MINIMUM.
AND SO IT'S IN, IN 2024, IT WAS NEVER LOWER THAN ABOUT 22 AND A HALF MILLION DOLLARS.
SO EVERYTHING THAT THAT IS, HAS, WAS PRESENTED AS CASH FLOW ANALYSIS IS CONSISTENT WITH, UM, A 10 TO $15 MILLION EXCESS RESERVE.
SO IF YOU GET TO THAT 27, UH, FIGURE THAT I JUST MENTIONED, UM, AND YOU TOOK 10 OFF IT, YOU'D BE AT $17 MILLION.
SO THAT IS A, A VERY COMFORTABLE MARGIN.
AND, UM, IT'S, IT'S NOT, WE'RE NOT GETTING A SITUATION WHERE WE'RE DOWN TO OUR LAST COUPLE MILLION THAT WOULD BE USING.
UM, AND I WOULD JUST SORT OF RECAP ALL THAT WITH THE NOTION THAT NOTHING IN, IN THIS, IN THIS CONCEPT INVOLVES TAKING ALL OF IT AND USING IT ALL AT ONCE.
IT'S, IT'S TAKING, UH, WELL THE CHART, THE, THE EXAMPLE, WHICH IS SIMPLY AN EXAMPLE SHOWS IT'S A FEW HUNDRED THOUSAND DOLLARS THE FIRST YEAR, I BELIEVE IT'S ONE, 1.2 MILLION THE SECOND YEAR.
UM, AND SO IT'S, IT'S AN ADJUSTABLE MONITORABLE SITUATION.
AND AGAIN, UM, IT'S A, IT'S AN OPPORTUNITY WHERE WE KNOW IN THREE YEARS THE OPPORTUNITY TO PAY BE PAYING LESS FOR DEBT IS 3 MILLION, ALMOST $3 MILLION THAT THIS GAP COULD CLOSE.
SO IT'S NOT ONE TIME MONEY FOR RECURRING EXPENSES, IT'S FOR A FEW YEARS, LIKE IN MY EXAMPLE, ABOUT THE CAR UNTIL MY WIFE'S CAR'S PAID OFF, THEN I'LL HAVE THE CASH FLOW TO PAY FOR IT.
UM, THAT'S, THAT'S KIND OF BEEN IN A NUTSHELL.
[00:25:01]
I APPRECIATE BEING ABLE TO GET, GET THE IDEA OUT THERE.UM, AND HOPEFULLY WE CAN HAVE SOME DISCUSSION OR ANSWER QUESTIONS OR, YOU KNOW, TALK ABOUT DIFFERENT IDEAS FROM THERE.
SIX OR SEVEN PLANNING COMMISSION.
PLANNING COMMISSION IS TONIGHT AT SEVEN.
WE CAN DELAY THEM HOWEVER THEY HAVE PUBLIC HEARINGS.
SO WE CAN, SO WE NEED TO WRAP THIS UP BY SEVEN.
UM, BUT BEFORE WE GET OUT, CAN I JUST GIVE YOU, THIS IS THE LATEST WEALTH MANAGEMENT NUMBERS AS OF THE END OF MARCH.
THIS, WHO CANNOT BE HERE TONIGHT.
UM, AND I DUNNO HOW WE MISSED THIS THING ON.
WELL, WELL WE'RE LOOKING OVER THIS BALANCE OF 30 THOU, 39, I'M SORRY.
AND THAT'S MARCH 30 AT MARCH 31ST.
AND THAT'S THE LOWEST FOR THIS PAST YEAR.
AND THAT'S EVERYTHING, OUR RESERVE AND EVERYTHING THAT'S YEAH, THAT'S OKAY.
THE SAN THE SANITARY DISTRICT SAVINGS ACCOUNT'S, NOT IN ANY OF THIS THAT, RIGHT.
SO I, WHILE BACK THIS, BECAUSE THEY NEED TO COME IN BECAUSE THEY'RE GONNA BROADCAST AS WELL.
UH, ALYSSA, UM, WAIT, MAY I? SURE.
SO, UM, WHAT I JUST DID WAS I CROSS REFERENCED THIS NUMBER WITH THE HISTORIC NUMBERS EXACTLY.
AND, UH, IT IS, UM, THREE, IT'S, IT'S, UH, THIS 30 MILLION IS THREE, $3 MILLION HIGHER, UM, THAN THE AVERAGE FOUR.
THIS SAYS APRIL, MARCH 31ST AND MY CHARGE APRIL 1ST.
SO IT IS TRACKING, UH, AT THE TOP OF, OF THE HISTORICAL, UM, UH, DATA SET JUST FOR REFERENCE.
WELL WE, THIS IS, WE CAN KEEP THIS MEETING GOING, BUT WE'LL BE DOWN IN ANOTHER ROOM AND IT WON'T BE BROADCAST.
WELL, OBVIOUSLY WE HAVEN'T GOT IT ALL FIGURED OUT YET.
SO WE'RE, WE EITHER NEED TO CONTINUE THE MEETING OR MOVE IT.
WE HAVE, WHEN COULD WE HAVE OUR, OUR NEXT, UH, MEETING? I MEAN, HOW MUCH TIME, I MEAN, IS THIS SOMETHING THAT THE 22ND.
BUT I DIDN'T KNOW IF THERE WAS ANY TIME BEFORE THAT AS FAR AS THIS MEETING HERE.
I KNOW A PUBLIC HEARING YOU CAN DO IT, BUT WITH THIS MEETING HERE, CAN WE JUST ADJOURN IT AND THEN RECONVENE AT ANOTHER DATE SINCE IT'S STILL BASICALLY THE SAME MEETING? JUST A THOUGHT SPECIAL MEETING.
YOU JUST CALL OUT A SPECIAL MEETING.
WELL, I JUST DIDN'T KNOW IF THERE WAS TIME BEFORE THE 22ND.
UM, COULD DO IT POTENTIALLY AFTER THE TOWN COUNTY LEAVE ON TOMORROW.
IS THAT ENOUGH TIME TO ADVERTISE OR LET THE PUBLIC KNOW? NO, THAT'S NOT ENOUGH TIME TO ADVERTISE.
NO, IT WOULDN'T BE 'CAUSE IT'S NOT A BOARD MEETING.
I WAS GONNA SAY, IF IT WAS ALREADY A BOARD MEETING, IT'D BE ADDED TO IT.
WHEN'S THE 22ND? TUESDAY? UH, WEDNESDAY, BECAUSE THE 21ST WAS OUR REGULAR MEETING AND THE 22ND WOULD BE WEDNESDAY BECAUSE OF THE ELECTION.
SO THIS BUSY, THIS ROOM WILL BE BUSY ON ELECTION DAY.
WELL, THIS ROOM WILL BE BUSY, BUSY.
I MEAN THE ELECTION WILL BE BACK THERE, THERE WON'T BE ANYBODY HERE IN THIS ROOM.
THERE'LL BE PEOPLE OUT FRONT AND WHATEVER.
I THOUGHT THEY DID THE, UH, ELECTION.
THEY USED THE, I THINK THEY USED THIS ROOM.
ELECTION'S OVER AT SEVEN THOUGH.
I MEAN, YOU MIGHT HAVE A LITTLE BIT OF LINE TO FINISH UP, BUT I'M FINE WITH MONDAY.
SO, UM, I GUESS WE WILL, WE'LL CALL FOR MONDAY AND TOMORROW.
SO MONDAY AT 6:00 PM YEAH, SIX WORK FOR EVERYBODY.
AND THEN I, I JUST, YOU KNOW, THIS COULD BE A BLESSING IN DISGUISE BECAUSE WE HAVE MORE READING TO DO BEFORE THAT.
I'D BE VERY HAPPY TO SIT DOWN WITH ANYBODY, UH, FOR I, I MAY REACH OUT AS MUCH TIME AS YOU WANT.
THE BIGGEST THING IS SECURING THE BOTTOM NUMBER ALL, AND EVEN IF WE CAN'T DO THE 5 CENTS, WE, MAYBE I'LL DO A PORTION OF IT.
YOU KNOW, THAT THIS IS NOT A BAD, A BAD IDEA, BUT I I DO, I WOULDN'T NEVER WANNA PULL IT ALL THE WAY DOWN TIGHT TO THE 15TH AND WE'RE NOT EVEN CLOSE.
COULD I HAVE A QUESTION? I'M HAPPY TO DO THAT.
I DIDN'T MEAN TO INTERRUPT YOU.
NO, JUST, I MEAN, I WAS UNDER THE IMPRESSION WITH THE BUDGET PRESENTED TO US, AND MAYBE THAT'S WRONG, THAT THAT DID HAVE, AND MAYBE IT'S WHAT YOU WERE TALKING ABOUT INITIALLY TOO, AS FAR AS, UH, THE
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CAPITAL IMPROVEMENTS FOR THE ROOFS AND STUFF LIKE THAT.WAS THAT OUTSIDE OF THE BUDGET? THAT'S, THAT'S OUTSIDE OF THE BUDGET.
IT'S OUT, IT'S OUTSIDE OF THE BUDGET IN THE SENSE THAT YOU PLAN TO USE EXCESS RESERVES FOR IT, CORRECT? CORRECT.
AND I ROLLED THOSE INTO THIS ANALYSIS, SO I DIDN'T, I DIDN'T, THIS ISN'T IN A VACUUM.
I PUT, UM, I PUT EVERYTHING IN HERE.
EVERYTHING THAT WAS ALREADY ON THE TABLE, I LEFT ON THERE.
BUT I GUESS WHERE I'M NOT FOLLOWING, IF, YOU KNOW, IF YOU'RE TAKING ABOUT TALKING ABOUT THE FUND BALANCE TO OFFSET THE 5 CENTS, BUT THEN WE ALREADY HAD IN THERE OUTSIDE OF THAT FOR THE FUND BALANCE TO GO TOWARDS CAPITAL IMPROVEMENT.
BUT THE, THE FUND BALANCE THAT WAS ANTICIPATED WAS ONLY $1.2 MILLION.
AND, AND THE AMOUNT THAT WOULD BE NECESSARY TO GET TO, TO FUND THIS GAP WOULD BE 1.7 APPROXIMATELY.
AND I PUT IN HERE AS A, ESSENTIALLY A SPECULATION THAT MORE WOULD BE USED FOR ROOFS.
IF YOU LOOK AT THE TABLE IN THE REPORT I GAVE YOU, IT'S JUST, IT'S JUST A SAYING THAT YOU COULD DO UP TO $8 MILLION OF, OF CAPITAL AND ROOFS.
UH, NOW HERE THE THING IS ABOUT ALL THIS IS THAT IF YOU DON'T THINK THESE EXCESS IS 10.
WE'RE RESCHEDULED FOR MONDAY, UH, MONDAY AT SIX.
YES, WE WE'RE ADJOURNED IN COUNTY STAFF, WHEREAS TOMORROW NIGHT I WOULD NOT BE ABLE TO BE THERE.