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GO AHEAD AND GET, UM, THE MEETING FOR THE PARKER COUNTY COMMISSIONER'S COURT SPECIAL AGENDA STARTED.
WE DO HAVE A QUORUM, UH, WITH THE COUNTY CLERK'S OFFICE PRESENT, UH, TO CONSIDER AND DISCUSS AND TAKE ACTION.
UH, LET THE RECORD SHOW IT IS NINE O'CLOCK.
[I.A. Presentation and approval of 2023 Annual Financial Report by Weaver and Tidwell. (Brianna Fowler / Judge Deen)]
UPON THE FOLLOWING AGENDA ITEMS. ITEM ONE, APPROVAL ITEM, A PRESENTATION AND APPROVAL OF 2023 ANNUAL FINANCIAL REPORT BY WEAVER AND TIDWELL.UM, WE'RE HERE TO PRESENT THE FISCAL YEAR 2023 FINANCIAL STATEMENT AUDIT, WHICH WILL BE LED BY OUR EXTERNAL AUDITORS WEAVER.
UH, JACKIE GONZALEZ IS THE AUDIT PARTNER, UM, ON OUR ENGAGEMENT, AND SHE WILL BE PRESENTING THIS MORNING.
SHE'LL GIVE A BRIEF INTRODUCTION OF THE AUDIT TEAM AS WELL AS GO THROUGH THE AUDIT PROCESS, AUDIT RESULTS, UM, GO OVER THE FINANCIAL HIGHLIGHTS OF THE GOVERNMENTAL FUNDS, AND THEN ALSO THE BUDGET VERSUS ACTUAL RESULTS.
AND THEN WE'LL OPEN IT UP FOR ANY, UM, QUESTIONS YOU MIGHT HAVE.
IF YOU WANT TO HIT THE WHAT, GOOD MORNING.
UM, WE WILL PRESENT THE AUDIT, AS SHE MENTIONED, AND ANY QUESTIONS, YOU CAN STOP ME THROUGHOUT OR SAVE THOSE UNTIL THE END.
UM, AS SHE MENTIONED, I AM JACKIE GONZALEZ.
I SERVE AS YOUR ENGAGEMENT PARTNER.
I HAVE JUSTINE SINGLETARY WITH ME.
UM, AND WE ALSO HAVE MELISSA KIRKLAND SERVING AS OUR SENIOR IN CHARGE, UM, ON RUNNING KIND OF THE DAY TO DAY OF THE AUDIT, A LITTLE BIT ABOUT OUR AUDIT PROCESS.
SO WE CONDUCT THE AUDIT IN ACCORDANCE WITH GENERALLY ACCEPTED AUDITING STANDARDS, AS WELL AS GENERALLY ACCEPTED GOVERNMENT AUDITING STANDARDS, THE UNIFORM GUIDANCE AND THE TEXAS GRANT MANAGEMENT STANDARDS.
SO THOSE LAST TWO ARE RELATED TO THE AMOUNT OF FEDERAL AND STATE AWARDS THAT YOU RECEIVE, WHICH TRIGGER A SINGLE AUDIT.
AND SO WE'LL GET INTO THAT IN HERE IN A LITTLE BIT.
BUT WE DID PERFORM NOT ONLY THE FINANCIAL STATEMENT AUDIT, BUT ALSO A FEDERAL SINGLE AUDIT, AS WELL AS A STATE SINGLE AUDIT.
WE DO PERFORM A RISK-BASED AUDIT, AND SO THROUGHOUT OUR PLANNING PROCESS, WE GO THROUGH AND IDENTIFY WHERE RISK COULD OCCUR AND THEN REALLY FOCUS OUR PROCEDURES IN ON THOSE AREAS.
UM, SOME OF THOSE INCLUDED THE GRANT REVENUES AND EXPENDITURES, AND THEN WE DESIGN RESPONSES TO MISAPPROPRIATION OF ASSETS MANAGEMENT, OVERRIDE OF CONTROL, AND REVENUE RECOGNITION.
SO THE PROCESSES THAT WE DESIGN, UM, GO INTO LOOKING IN DEPTH AT THE CASH DISBURSEMENT, REGISTER YOUR PAYROLL REGISTER, AND WE DIDN'T HAVE ANY EXCEPTIONS TO THAT TESTING IN ANY SET OF FINANCIAL STATEMENTS.
AND SO THROUGHOUT THE COURSE OF OUR AUDIT, WE GO THROUGH AND EVALUATE THE REASONABLENESS OF THE ESTIMATES.
UM, THE MOST SIGNIFICANT OF WHICH IS THE ALLOWANCE FOR DOUBTFUL ACCOUNTS, FOR PROPERTY TAX RECEIVABLES.
WE HAD NO EXCEPTIONS IN THAT TESTING.
WE ALSO TEST YOUR INTERNAL CONTROLS OVER BOTH FINANCIAL REPORTING AND COMPLIANCE, AS WELL AS TESTING COMPLIANCE WITH THOSE MAJOR PROGRAMS. FOR THE SINGLE AUDITS THAT I MENTIONED RELATED TO THE FINANCIAL STATEMENTS, WE HAVE ISSUED AN UNMODIFIED OPINION OR A CLEAN OPINION, IF YOU WILL.
THAT'S THE HIGHEST LEVEL OF ASSURANCE THAT WE AS YOUR INDEPENDENT AUDITORS CAN PROVIDE.
AS I MENTIONED, WE TESTED INTERNAL CONTROLS OVER FINANCIAL REPORTING AND HAD NO MATERIAL WEAKNESSES OR SIGNIFICANT DEFICIENCIES THAT WERE IDENTIFIED.
NEXT, THIS IS SPECIFICALLY RELATED TO THE AMERICA AMERICAN RESCUE PLAN ACT.
UM, THAT'S THE MAJOR PROGRAM THAT WE DID TEST FOR THE FEDERAL SINGLE AUDIT.
WE HAVE ISSUED AN UNMODIFIED OPINION OVER THE COMPLIANCE FOR THAT PROGRAM.
RELATED TO THE FEDERAL AWARDS, YOU DO QUALIFY AS A LOW RISK AUDITEE, SO THAT MEANS THAT YOU HAVE NOT HAD MATERIAL WEAKNESSES OR SIGNIFICANT COMPLIANCE FINDINGS OVER YOUR FEDERAL PROGRAMS IN AT LEAST THE PREVIOUS TWO YEARS.
WE HAD NO MATERIAL WEAKNESSES, NO SIGNIFICANT DEFICIENCIES, AND NO COMPLIANCE FINDINGS WITHIN THAT PROGRAM FOR THE FEDERAL AWARDS.
SO YOU'LL SEE DOWN THERE AT THE BOTTOM, WE AUDITED THE 1 21 FUNDS OLD WEATHERFORD ROAD IMPROVEMENTS PROGRAM.
WE HAVE ISSUED AN UNMODIFIED OPINION ON COMPLIANCE RELATED TO THIS PROGRAM.
WE HAD NO MATERIAL WEAKNESSES.
WE DID HAVE, UM, SIGNIFICANT DEFICIENCIES IN COMPLIANCE FINDINGS, WHICH I WILL GO OVER NEXT.
THE FIRST ONE RELATES TO REPORTING.
SO THE REPORTS WERE NOT SUBMITTED, UM, THROUGHOUT THE FISCAL YEAR AS REQUIRED BY THE CONTRACT.
THE NEXT ONE RELATES TO CASH MANAGEMENT AND THE INTEREST EARNED ON THE AMOUNT.
CAN YOU PAUSE PAID? CAN YOU PAUSE FOR JUST A SECOND? CAN YOU CLARIFY THAT LAST STATEMENT PLEASE? ON THE REPORTS THE REPORTS WERE NOT SUBMITTED.
AND SO, UM, YOUR HONOR, CAN SHE'LL ADDRESS KIND OF THE CORRECTIVE ACTION AND WHAT HAPPENED? IT SOUNDS LIKE THEY WEREN'T
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SUB SUBMITTED AT ALL, BUT IT WAS REALLY IN THE WAY IN WHICH THAT PROGRAM OPERATES.AND SO THE WAY THAT THE REPORTS WERE SUBMITTED WERE NOT, UM, AS IT WAS OUTLINED, THANK YOU, CASH MANAGEMENT.
SO THERE WERE AMOUNTS PAID IN ADVANCE, AND THERE WAS INTEREST EARNED ON THOSE AMOUNTS.
THEY WERE JUST SUPPOSED TO BE PUT IN A SEPARATE ACCOUNT.
THEY WERE IDENTIFIED AND TRACKED, BUT THEY WERE NOT PUT IN A SEPARATE ACCOUNT.
UM, BUT I WILL LET BRIANNA GET UP AND TALK ABOUT THE CORRECTIVE ACTION AND GO INTO THAT A LITTLE DEEPER.
IF YOU GO TO PAGE 1 0 9 OF THE REPORT, UM, YOU WILL SEE THE CORRECTIVE ACTION PLAN THERE.
SO AS JACKIE MENTIONED, THIS IS THE OLD WEATHERFORD ROAD PROJECT.
UH, THIS IS ONE WHERE, UM, OUR EXTERNAL PARTY AND NICHOLS, UM, IS MANAGING THIS PROGRAM.
AND SO, UM, ALTHOUGH FORMAL WRITTEN REPORTS WERE NOT, UM, SUBMITTED DURING FISCAL YEAR 23, THE COUNTY'S DESIGNEE, ZA NICHOLS, UM, PARTICIPATED IN FREQUENT COORDINATION AND PROGRESS, UM, MONITORING MEETINGS WITH THE ENGINEER ON RECORD, THE CITY OF FORT WORTH, AS WELL AS COG.
UM, DURING THE RIGHT OF WAY ACQUISITION PHASE, THE COUNTY HELD SEVERAL MEETINGS, UM, WITH COG TO DISCUSS THE NEGOTIATION OF RIGHT OF AND EASEMENTS.
UM, CHRIS, UM, IS ALSO WORKING CLOSELY WITH COG, UM, DURING THE BID PHASE TO RESPOND TO ANY CONTRACT OR QUESTIONS.
SO ALTHOUGH THERE WASN'T WRITTEN FORMAL REPORTS, UM, THERE WERE THOSE ESTIMATES.
WE HAD ALSO DURING THIS PERIOD, UM, RECEIVED AN INCREASE IN THE FUNDING HERE BECAUSE OF, UM, CONSTRUCTION ESTIMATED TO BE MORE THAN WHAT WAS ORIGINALLY AWARDED.
UM, AND SO, UH, IN COORDINATION WITH CHRIS, UH, HE REACHED OUT TO COG BECAUSE THERE WASN'T AN ESTABLISHED REPORTING MECHANISM, A TEMPLATE OF HOW WE WERE SUPPOSED TO REPORT.
AND SO, UM, WE'VE WORKED TOGETHER AND, UM, WE'VE ESTABLISHED A MONTHLY REPORTING PROCESS GOING FORWARD.
UM, AND SO WE HAVE A ACCOUNT, UM, CHRIS HAS AN ACCOUNT SET UP WITH COG, WHICH IS THE REVENUE AND PROJECT TRACKING SYSTEM.
UM, AND SO WE WILL BE PROVIDING MYSELF AS, ALONG WITH MY ASSISTANT, WILL BE PROVIDING, UM, EXPENDITURES MONTHLY AS WELL AS THAT INTEREST ALLOCATION TO CHRIS TO THEN, UM, REPORT.
AND SO WE'LL HAVE HIM, UM, GIVE US A COPY OF THAT PRIOR TO, UM, UPLOADING ON THAT PORTAL.
SO IF I UNDERSTAND THIS CORRECTLY, COG WANTED US TO TELL THEM WHAT WE WERE DOING IN A FORMAL REPORT REGULARLY.
WELL, IT SOUNDED LIKE COG ACTUALLY WASN'T EVEN AWARE THAT WE WERE SUPPOSED TO BE REPORTING.
SO WHAT IT IS, IS OUR CONTRACT IS ACTUALLY THROUGH TDOT.
UM, SO WE'RE KIND OF THE PASS THROUGH ENTITY, UM, WORKING WITH COG.
AND SO ALTHOUGH OUR AGREEMENTS WITH TDOT, IT OUTLINES THAT, BUT WE ARE WORKING DIRECTLY WITH COG ON THIS.
SO THE REPORTING ACTUALLY GOES TO COG.
AND SO WHEN CHRIS HAD REACHED OUT TO THEM, THEY WEREN'T ACTUALLY AWARE THAT WE SH SHOULD HAVE BEEN REPORTING THIS INFORMATION.
SO THIS IS A TDOT REQUIREMENT? CORRECT.
IT'S IN THE AGREEMENT, AND THEY WEREN'T ACTUALLY AWARE THAT IT WAS IN THE AGREEMENT.
AND SO, UM, CHRIS DID PROVIDE A MEMO TO COG BASICALLY JUST CLARIFYING THE REPORTING REQUIREMENTS AS LAID OUT IN THE TDOT AGREEMENT.
UM, AND WE CAME UP WITH A, BASICALLY A RESOLUTION OF HOW TO FIX THIS.
AND SO STARTING, UM, NEXT MONTH, WE WILL REPORT, UM, JUNE INFORMATION AS, AS REQUIRED, AS LAID OUT IN THE AGREEMENT.
THIS IS JUST PASS THROUGH MONEY, WASN'T IT FOR THE PROJECT? YES, YES.
TO ASK US TO BE THE PASS THROUGH AGENCY.
AND SO THAT IS THE OTHER THING.
YOU KNOW, I'VE TALKED ABOUT, UM, HAVING A GRANT POLICY, AND THAT'S KIND OF PART OF IT, IS MAKING SURE THAT WHOEVER IS LOOKING OVER THESE, OR YOU KNOW, IF IT'S OUR OFFICE OF HAVING THESE AGREEMENTS UPFRONT, UM, BEFORE THEY EVEN KIND OF GO THROUGH THE FULL APPROVAL PHASE.
THAT WAY WE UNDERSTAND WHAT ALL THE COMPLIANCE REQUIREMENTS ARE AND CAN PLAN FOR IT, UM, AHEAD OF TIME.
BUT AGAIN, WE WERE JUST ASKED TO BE THE PASS THROUGH AGENCY.
BUT TO SPONSOR THIS, BECAUSE THE AGREEMENT IS BETWEEN T STOCK, UNDERSTAND AND PARKER COUNTY UNDERSTAND ULTIMATELY UNDERST RESPONSIBLE.
I'M, I'M JUST TELLING YOU, THAT'S HOW WE GOT IN THAT POSITION.
IT'S NOT OUR PROJECT THAT WE WERE DOING.
UM, AND SO THAT WAS, UM, ONE OF THE FINDINGS WAS WITH THE REPORTING.
AND THEN THE SECOND, AS JACKIE MENTIONED, IS WITH THE INTEREST.
UM, AND SO AGAIN, LIKE SHE SAID, WE WERE ALLOCATING IT, UM, WE HAVE IT IDENTIFIED, BUT UM, JUST AS LIKE WE HAVE BOND FUNDS THAT MONEY, BECAUSE THEN IT'S IN ADVANCE FUNDING, USUALLY ON REIMBURSEMENTS THERE'S RIGHT, YOU, YOU'VE EXPENDED YOUR FUNDS AND GETTING IT BACK.
BUT WITH ADVANCED FUNDING, UM, WHAT'S SITTING THERE IS INVESTED.
AND SO ALL THOSE PROCEEDS THEN GO BACK INTO THE PROJECT.
AND SO, UM, I HAD ACTUALLY REACHED OUT WITH CHRIS 'CAUSE I KNOW HE HAD MENTIONED, I WANT TO SAY MAYBE NOT AT THIS LAST COURT, BUT PREVIOUSLY THAT, UM, WHERE SOME OF THE BIDS ARE COMING BACK THAT WE MAY NEED TO GO BACK AND ASK FOR ADDITIONAL FUNDING.
UM, BUT BECAUSE OF THE INTEREST THAT WE'VE RECEIVED OVER THE LAST COUPLE YEARS OF HAVING THIS, THAT
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MAY BE ABLE TO REDUCE SOME OF THAT BECAUSE WE CAN USE THOSE INTEREST PROCEEDS FOR THAT.SO, UM, THAT HAS NOW BEEN, UM, TRACKED IN OUR, BASICALLY OUR INTEREST ALLOCATION TO ENSURE THAT IT GOES BACK TO THAT PROGRAM.
NEXT, WE WILL MOVE ON TO THE FINANCIAL HIGHLIGHTS.
SO HERE WE HAVE THE GOVERNMENTAL FUNDS.
SO YOU'LL SEE THE GENERAL FUND, LATERAL ROAD CAPITAL PROJECTS, UH, DEBT SERVICE.
THE ARPA IS THAT, UM, AMERICAN RESCUE PLAN ACT FUND.
SO THOSE FUNDS ARE ON THEIR OWN.
AND THEN ALL THE OTHER GOVERNMENTAL FUNDS.
SO YOU CAN SEE FOR TOTAL GOVERNMENTAL FUNDS, YOU ENDED THE YEAR AT 87.2, 7.2 MILLION IN TOTAL FUND BALANCE.
SO THAT WAS COMPRISED OF ASSETS OF 126.6 MILLION AND LIABILITIES OF 38 MILLION, AND THEN DEFERRED OUT DEFERRED INFLOWS OF 1.4.
SO YOU CAN SEE THE BULK OF THAT IS WITHIN THE GENERAL FUND.
UM, SO WITHIN THE GENERAL FUND, YOU HAD TOTAL ASSETS OF 44.4 MILLION LIABILITIES OF 4.3, AND THEN THE DEFERRED INFLOWS OF 1.2 MILLION, BRINGING THE TOTAL FUND BALANCE IN THE GENERAL FUND TO 38.8 MILLION.
IF WE LOOK IN TOTAL, UM, YOU CAN SEE TOTAL REVENUES FOR THE YEAR FOR ALL OF THOSE GOVERNMENTAL FUNDS WERE JUST OVER 110.45 MILLION VERSUS EXPENDITURES OF 114.5.
AND THEN OTHER FINANCING SOURCES AND USES OF 1.2, ALMOST 1.3 MILLION, BRINGING THE TOTAL CHANGE IN FUND BALANCE ACROSS ALL OF THOSE GOVERNMENTAL FUNDS TO A NEGATIVE 2.7.
IF WE LOOK SPECIFICALLY IN THE GENERAL FUND, YOU CAN SEE TOTAL REVENUES WERE 68.65 MILLION VERSUS EXPENDITURES OF 62 MILLION.
AND THEN OTHER FINANCING SOURCES AND USES OF JUST AT 3 MILLION, BRINGING THAT CHANGE IN FUND BALANCE WITHIN THE GENERAL FUND TO 3.6 MILLION.
HERE'S A BREAKDOWN OF THOSE FUND BALANCES.
SO FUND BALANCES COMPRISED OF NONS, SPENDABLE AND SPENDABLE FUND BALANCES.
AND THEN WITHIN THOSE YOU'LL HAVE THE RESTRICTED CATEGORIES AS WELL AS YOUR COMMITTED FUNDS AND THE REMAINING UNASSIGNED.
SO OF THAT 87.2 MILLION IN TOTAL FUND BALANCE, YOU CAN SEE OF THE 38.8 THAT'S WITHIN THE GENERAL FUND, MOST OF THAT IS UNASSIGNED.
AND SO YOU CAN SEE THAT THE REMAINING IS COMMITTED FOR SPECIAL PROGRAMS, ALMOST 1.6, AND THEN A SMALL AMOUNT RESTRICTED FOR THOSE FEDERAL AND STATE PROGRAMS. AND THEN, UM, A SMALL AMOUNT THAT IS NONS SPENDABLE, WHICH JUST MEANS IT'S CATEGORIZED AS INVENTORY OR PREPAID.
AND SO OBVIOUSLY YOU CAN'T BE EXPENDED.
AND THEN IF WE LOOK AT THE COMPOSITION OF THE REMAINING FUNDS, UM, MOST OF THAT IS RESTRICTED.
OF COURSE, YOUR WHOLE LATERAL ROAD FUND FUND BALANCE IS RESTRICTED AS WELL AS THE, UM, BOND FUNDS AND YOUR DEBT SERVICE FUNDS.
AND THAT JUST BRINGS US TO THE OTHER GOVERNMENTAL FUNDS, WHICH ARE COMPRISED MAINLY OF THE BALANCES OF YOUR FEDERAL AND STATE PROGRAMS, WHICH ARE RESTRICTED FOR THOSE USES.
NEXT WE HAVE THE GENERAL FUND BUDGET TO ACTUAL, SO THE ACTUAL AMOUNTS FOR TOTAL REVENUES IN THE GENERAL FUND, AGAIN, WE'RE AT THAT JUST OVER 68.65 MILLION, UM, VERSUS YOUR FINAL BUDGET OF 63 MILLION, WHICH BROUGHT YOU TO A POSITIVE VARIANCE OF 5.6 FOR THE YEAR NEXT ON THE EXPENDITURES.
SO YOU WILL SEE TOTAL EXPENDITURES WERE BUDGETED THERE AT 68.2 MILLION CAME IN AT JUST, UM, RIGHT AT 62 FLAT, AND THAT GAVE YOU A POSITIVE VARIANCE OF 66.2 MILLION.
AND THEN DOWN THERE YOU'LL SEE THE OTHER FINANCING SOURCES AND USES THAT WERE BUDGETED AT JUST OVER, UH, $4 MILLION AND CAME IN AT 3 MILLION.
NEXT, YOU'LL HAVE THE LATERAL ROAD FUND.
SO TOTAL REVENUES CAME IN AT THE 68, 16 0.9 MILLION VERSUS A BUDGET OF 17 MILLION.
AND SO THAT WAS SLIGHTLY, THAT VARIANCE WAS SLIGHTLY NEGATIVE AT $112,000.
NEXT ON EXPENDITURES, TOTAL EXPENDITURES WERE 26.4 MILLION BUDGETED AS THAT FINAL AMOUNT ACTUALS CAME IN AT 17.4.
AND SO YOU CAN SEE THAT VARIANCE OF $9 MILLION IN TOTAL, UM, EXPENDITURES.
SO YOUR ACTUALS WERE UNDER THE AMOUNT BUDGETED BY THAT MUCH.
THAT IS OUR PRESENTATION TODAY.
I AM HAPPY TO TAKE ANY QUESTIONS OVER THE, EITHER THE FINANCIALS OR ANY AND THE BUDGET VERSUS ACTUALS.
START ON PAGE 62, GROUP 64, CAN YOU GO TO SLIDE 18 PLEASE? 18? YES.
SO WE THOUGHT WE WERE GONNA BE AT ABOUT 26 MILLION.
I'M LOOKING AT THE VERY BOTTOM LINE, YOUR TOTAL BUDGET FUND BALANCE.
AND WE ENDED UP AT ABOUT 39 MILLION.
WHAT ARE SOME OF THE BIGGEST DRIVERS OF THAT? CAN YOU, CAN YOU WALK US THROUGH THAT,
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THAT, THAT $13 MILLION DIFFERENCE, UM, KIND OF ON A SUMMARY LEVEL.UM, SO A POSITIVE VARIANCE THERE WAS ABOUT $2.3 MILLION JUST IN PAYROLL AND BENEFIT LINES.
AND SO SOME OF THAT IS JUST UNFILLED POSITIONS, YOU KNOW, IF THERE'S ANY SORT OF VACANCIES OR IF THERE'S NEW POSITIONS ADDED.
AGAIN, IF IT TAKES A LITTLE WHILE TO FILL THEM.
UM, BRIANNA, CAN I, I, I'M SO SORRY FOR INTERRUPTING, BUT I WANTED TO ASK YOU AND BECKY, WHEN WE GET TO BUDGET THIS YEAR, CAN WE CAPTURE THAT BY DEPARTMENT AND KIND OF HIGHLIGHT THAT WHERE WE'RE LOOKING AT, WHERE WE'RE DRIVING LARGE FUND BALANCE VARIANCES BY UNFILLED POSITIONS, PLEASE.
UM, ANOTHER BIG PIECE OF THAT, UM, IS INSURANCE CHANGES.
AGAIN, SOME OF THAT, YOU KNOW, SOMEONE MAY CHANGE.
UM, YOU KNOW, WHEN WE'RE BUDGETING FOR A NEW POSITION, WE BUDGET AT, YOU KNOW, CONSERVATIVELY AT A HIGHER RATE, RIGHT? AND THAT INDIVIDUAL MAY BE, YOU KNOW, AN OPT OUT.
THEY MAY BE SINGLE, BUT AGAIN, BECAUSE WE DON'T KNOW, UM, WE HAVE TO BUDGET THAT WAY.
THEN THE NEXT YEAR, BECKY WILL GO IN AND UPDATE THAT.
SO ESPECIALLY IN THAT FIRST YEAR, WE HAVE IT.
AND WE ALSO HAVE, SOMETIMES THE FLIP SIDE OF THAT IS, YOU KNOW, MAYBE A SPOUSE LOST THEIR COVERAGE AND THEIR FAMILY WAS ON THEIR PLAN, BUT THEN THEY HAVE TO SWITCH BACK.
SO AGAIN, WE HAVE POSITIVE AND NEGATIVE VARIANCES THERE.
UM, SO THAT'S KIND OF THE, THE BIGGEST PIECE.
UM, IT'S JUST ON A SUMMARY LEVEL, IS THOSE, UM, PAYROLL LINES.
THERE WAS ABOUT $285,000, UM, IN ATTORNEY FEE AND TRIAL COSTS, AGAIN, SOMETIMES THOSE ARE VERY DIFFICULT TO PROJECT BECAUSE YOU JUST DON'T KNOW THE NUMBER OF CASES YOU'RE GONNA HAVE, OR EVEN, YOU KNOW, WE SEE AN INCREASE WITH OUR CIVIL FEES FOR CPS CASES.
AND SO, UM, THOSE CAN VARY FROM YEAR TO YEAR AS WELL AS, YOU KNOW, SOME OF OUR SAY MURDER CASES OR THINGS THAT ARE GONNA COST MORE AS WELL AS, UM, YOU KNOW, IF EXPERT WITNESSES OR INVESTIGATIVE COSTS, THOSE TYPES OF THINGS, UM, CAN VARY GREATLY FROM YEAR TO YEAR.
UM, WE HAD ABOUT SEVEN, $750,000 IN CONTRACT SERVICES THAT ROLLED OVER.
AND THEN, UM, ABOUT 227,000 IN, UM, CAP, NON CAP ITEMS AND VEHICLES, AGAIN, AS YOU RECALL, UM, JUST IN LAST YEAR, YOU KNOW, AT THE END WE USUALLY HAVE A LOT OF REQUESTING FOR FUNDS TO BE ROLLED OVER TO BE APPROPRIATED INTO THE NEXT YEAR.
UM, AND A LOT OF THAT HAS BEEN JUST WITH VEHICLES AND STUFF BECAUSE OF, YOU KNOW, KIND OF THE DISTRIBUTION, UM, PORTION, OUR MOST POSITIVE VARIANCES.
UM, WHEN WE LOOK AT THAT AS FAR AS LIKE REVENUE IS INTEREST, UM, OUR TREASURER IS DOING A EXCELLENT JOB, UM, INVESTING AND, UM, GETTING US THOSE RETURNS.
SO THAT WAS THE POSITIVE VARIANCE THERE.
UM, OUR PROPERTY TAX COLLECTIONS HAVE REMAINED STRONG.
AND SO IF WE FACTOR IN, UM, JUST OUR CURRENT YEAR ALONG WITH OUR DELINQUENT COLLECTIONS AND YOU KNOW, KIND OF THE INTERESTS AND PENALTIES THAT ARE IN THERE, IT BRINGS OUR COLLECTION RATE, YOU KNOW, AROUND A HUNDRED PERCENT.
UM, AND THEN THE OTHER, WHEN WE LOOK IN THE MISCELLANEOUS, LET'S GO HERE, IN THAT MISCELLANEOUS, WE HAVE 286,000.
UM, PART OF THAT WAS JUST, UM, INSURANCE SETTLEMENT WHEN WE HAD THE FLOOD.
AGAIN, WE DON'T BUDGET FOR THOSE THINGS, BUT IF WE HAVE, YOU KNOW, UH, INSURANCE SETTLEMENTS AND THOSE KIND OF THINGS, THEN OBVIOUSLY WE, YOU KNOW, CERTIFY THAT REVENUE AND THEN PUT INTO THE EXPENSE LINE TO REPAIR WHATEVER IT IS.
UM, SO LAST YEAR WITH THE FLOOD, THAT WAS A BIG ONE.
UM, AS WELL AS, UM, OUR CREDIT CARD TRANSACTION FEES.
SO THOSE WERE, AND THEN AGAIN, UM, OUR SALES TAX COLLECTIONS CONTINUE, UM, TO INCREASE YEAR OVER YEAR.
YOU KNOW, WE DO A LOOK BACK OF KIND OF WHAT A, THE PERCENT INCREASE IS OVER THE LAST SEVERAL YEARS AND KIND OF APPLY THAT FACTOR IN.
UM, THANKFULLY THAT'S BEEN, YOU KNOW, BETTER THAN WHAT HAS BEEN PROJECTED.
SO LOOKING AT PAGE 37, KIND OF THE THIRD PARAGRAPH DOWN UNDER UNSIGNED FUND BALANCE ON THE REPORT, IT TALKS ABOUT HOW WE HAVE A COUNTY GOAL TO MAINTAIN APPROXIMATELY 25 TO 50% OF BUDGETED EXPENDITURES AS OUR FUND BALANCE.
WE'RE NOW AT 51% FOR THE GENERAL FUND.
WE'RE AT 58% FOR THE DEBT SERVICE FUND BALANCE.
THERE WAS A LOT OF DISCUSSION LAST YEAR AROUND THE TAX RATE AND AROUND AS OUR EXPENSES.
MM-HMM,
WHAT DO WE DO WITH THE TAX RATE? BECAUSE WE WERE TRYING TO PROTECT THE FUND BALANCE BECAUSE WE HAD THE DATA THAT SAID THAT OVER TIME OUR FUND BALANCE COMPARED TO THE TOTAL EXPENDITURES AS A PERCENTAGE WAS GOING DOWN SIGNIFICANTLY.
UM, IN THE PAST COUPLE OF YEARS.
WHAT KIND OF, GIVEN THAT DISCUSSION LAST YEAR, GIVEN THAT WE'RE AT 51% THIS YEAR, GIVEN THAT OUR GOAL IS TO BE 25 TO 50%,
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IS THERE ANY ACTION RECOMMENDED BY ANYONE HERE? OR IS THAT SOMETHING WE JUST NEED TO DISCUSS LATER? ONE I NEED, I THINK WE NEED TO LOOK AT, EVEN WHEN WE SAY 25%, I MEAN, AGAIN, THAT WAS AT THIS POINT PROBABLY 14, 15 YEARS AGO, I WOULD SAY WE'RE A VERY DIFFERENT COUNTY NOW THAN WE WERE THEN.SO LIKE AT A MINIMUM, I'M NOT SURE THAT THAT'S THE BEST METRIC AT THE 25%.
UM, I THINK WHAT'S DIFFICULT AS AT THE TIME THAT WE'RE ADOPTING THE BUDGET, YOU KNOW, I DO A FUND BALANCE PROJECTION, AND IT IS THAT IT IS A PROJECTION, IT'S AN ESTIMATE, AND I ALWAYS GIVE THE SPEECH OF THIS IS BASED OFF OF, YOU KNOW, HISTORICAL DATA.
I LOOK AT LINES, I LOOK AT, YOU KNOW, EXPENSES, THE PERCENTAGES.
OBVIOUSLY WHEN I'M LOOKING AT THE PERCENTAGES, OUR BUDGETED EXPENDITURES INCREASE EACH YEAR.
SO YOU HAVE THAT AS WELL AS, UM, YOU KNOW, AT THE TIME WE'RE DOING THAT, WE'RE, IT'S, IT'S IN JULY, I'LL START THAT.
UM, WE STILL HAVE AUGUST, SEPTEMBER, AND THERE'S A LOT OF TIMES A LOT OF EXPENDITURES THAT HAPPEN THERE.
WE PAY BILLS THROUGH DECEMBER.
UM, OBVIOUSLY EVERYTHING SHOULD BE ON A PO BUT, UM, ONE BIG PIECE THAT'S NOT IS, UM, ATTORNEY'S FEES.
AND SO WE DON'T REALLY KNOW WHAT THOSE ARE GONNA BE.
SO WE KIND OF DO A BEST ESTIMATION OF WHAT IT IS.
AND THEN THE SAME THING ON THE REVENUE SIDE.
UM, SOMETIMES THE REVENUE STREAMS ARE, YOU KNOW, KIND OF LOOKING DOWN IN THOSE MONTHS.
AND WHEN YOU LOOK AT HISTORICALLY YOU THINK, OKAY, WELL WE'RE GONNA INCREASE IT.
WELL, SOME OF THOSE LINES OF NEXT YEAR ARE SHORT, WHEREAS OTHERS ARE OVER.
I THINK IN 22, I ESTIMATED THE FUND BALANCE AND I WAS WITHIN A HUNDRED THOUSAND DOLLARS.
YOU KNOW, THAT, I WOULD SAY THAT'S A RARITY.
UM, IN THIS LAST YEAR, IF WE LOOK AT 23 OF WHAT I GAVE TO THE APPRAISAL DISTRICT FOR IT, IT WAS ABOUT A $3 MILLION DIFFERENCE.
BUT YOU KNOW, I MEAN, AGAIN, YOU'RE JUST LOOKING AT HISTORICAL DATA AND GIVING YOUR BEST ESTIMATE.
AND SO SOMETIMES IT IS DIFFICULT WHEN WE'RE GOING INTO BUDGET OF, WELL, HERE'S WHAT WE SAY WE'RE GONNA USE, BUT HOW MUCH ARE WE GONNA USE, YOU KNOW, I MEAN, YOU SEE THAT JUST IN EXPENDITURES.
WE HAVE A VARIANCE OF 6.2 MILLION, SO, YOU KNOW, YOU DON'T WANT TO CUT EVERYTHING AT A POINT WHERE YOU'RE BARELY OPERATING OR IF SOMETHING DOES HAPPEN, YOU DON'T HAVE THE FUNDS.
BUT AGAIN, ARE THERE DEPARTMENTS, ARE THERE LINES WHERE THERE'S EXCESS? DO, DOES, DOES TECH GIVE ANY GUIDANCE ON THAT 25 TO 50%? IS THERE GENERAL RECOMMENDED? UM, MAYBE BY COUNTY SIZE OR I DON'T KNOW IF TECH DOES, I MEAN, I KNOW THAT'S SOMETHING THAT'S GONE AROUND LIKE ON THE LISTSERV OF, HEY, WHERE'S, WHERE'S YOUR COUNTY AT? AND I THINK IT REALLY KIND OF DEPENDS ON THE COUNTY.
UM, YOU KNOW, THERE'S SOME WHERE IT'S, OKAY, WE'RE EXPECTING TO, YOU KNOW, BUY X AMOUNT OF CAPITAL EACH YEAR, SO YOU'RE WANTING THAT OR IT'S, YOU KNOW, WE'RE NEEDING TO PURCHASE, YOU KNOW, LIKE THIS, WE, WE PURCHASED A $3 MILLION BUILDING, SO WE HAD THAT IN FUND BALANCE TO PURCHASE INSTEAD OF HAVING TO ISSUE A TAX NOTE TO DO THAT.
UM, SO I THINK SOME OF IT IS YES, IN YOUR BUDGET, IT'S A YEAR TO YEAR LOOK AND YOU'RE LOOKING AT HOW MUCH YOU'RE GONNA USE FOR FUND BALANCE THAT YEAR, BUT I THINK YOU STILL HAVE TO CONSIDER, YOU KNOW, KIND OF A FURTHER VIEW OF THAT AND, AND WHAT IT IS, YOU KNOW, THAT THE COUNTY, THE COUNTY'S PLANS LANDS.
I MEAN, I DON'T KNOW THAT IT REALLY ANSWERS THE QUESTION.
I THINK THE, THE HARD PART IS, IS THERE'S A LOT OF GRAY, UM, AND BECAUSE IT'S SUCH A MOVING TARGET, IT'S, IT'S DIFFICULT.
MM-HMM,
AND SO IT'S, YOU KNOW, ARE THERE ANY CHANGES OR ANYTHING? AND THEN THE NEXT YEAR IT'S DOWN.
UM, WE ALSO HAVE IN THE, YOU KNOW, UH, COUNTY CLERK AND DISTRICT CLERK, UM, WELL, FOR THE COURTS THERE'S BEEN CHANGE IN, UM, CIVIL FEES AND HOW SOME OF THOSE ARE ASSESSED.
AND SO USUALLY, YOU KNOW, ONCE THE LEGISLATOR LEGISLATION PASSES THOSE THINGS, IT'S EFFECTIVE OF JANUARY OF THAT NEXT YEAR.
SO WE'RE IN THE MIDDLE OF THE BUDGET AND SOMETIMES IT'S HARD TO KNOW HOW,
[00:25:01]
UM, THAT'S GONNA IMPACT OUR REVENUE STREAMS. AND SOMETIMES WE DON'T SEE THAT UNTIL, YOU KNOW, LATER ON, ONCE THOSE, UM, FEES ARE ASSESSED AND THEN PAID OVER TIME.WELL, WE APPRECIATE WHAT Y'ALL DO.
SO REALLY THE ONLY NEGATIVE, WE DIDN'T CALL IT TOO MUCH, THAT IS JUST A REPORTING ISSUE.
IS THAT, THAT'S, AND THAT'S IT, CORRECT? YES.
AND LIKE SHE MENTIONED, I MEAN, THAT WAS REALLY KIND OF A TECHNICALITY AND THE WAY THE CONTRACT IS WRITTEN, BUT YOU KNOW, ASIDE FROM THE WAY IT WAS ACTUALLY YEAH, THAT'S EASILY RESOLVED.
SOUNDS LIKE THAT WAS NOT MATERIAL IN ANY WAY.
SO YEAH, THAT WAS EASILY, I MEAN, IT, BECAUSE OF THE REPORTING REQUIREMENTS AND WHAT WE HAVE TO GO THE STATE GUIDELINES, UM, IN THAT PARTICULAR CASE, AND SO THAT'S WHY IT WAS REPORTED, BUT EASILY FIXABLE AND, AND NO COST ASSOCIATED WITH IT THAT WOULD, YOU KNOW, LEAD TO ANY QUESTION, COST OR ANYTHING LIKE THAT.
AND GIVEN OUR SITUATION IS A VERY HIGH GROWTH COUNTY, YOU KNOW, AND PASSING A RECENT TRANSPORTATION BOND AND, AND THE INTERACTION AND THE, AND THE FLOW OF FUNDING BOTH MATCHING GOVERNMENTAL FUNDS AND THEN THE, THE BOND ITSELF, UM, THERE'S JUST A SIGNIFICANT AMOUNT OF ACTIVITY IN THAT, IN THAT SEGMENT.
SO IF THAT'S IT, I MEAN THAT'S, THAT'S PRETTY EXEMPLARY TO ME.
AND WE DO, WE HAVE A GRANTS, UM, LISTING WORKSHEET WHERE WE NOTATE, YOU KNOW, WHO'S RESPONSIBLE FOR REPORTING WHAT WE DO.
AND SO WE'VE ADDED SOME OF THAT AS WELL AS A CASH MANAGEMENT PIECE INTO OUR GRANT LISTING.
AND SO THAT'S WHY I ALWAYS STRESS OF, YOU KNOW, ENSURING THAT, UM, WE GET A COPY OF ALL GRANT AGREEMENTS AT THE VERY BEGINNING.
I MEAN, ALL APPLICATIONS SHOULD GO THROUGH COURT, UM, YOU KNOW, PRIOR TO EVEN APPLYING FOR ANY SORT OF GRANTS.
AND SO, YOU KNOW, DURING THAT TIME, IF WE CAN GET A COPY OF THOSE APPLICATIONS AND, YOU KNOW, SOMETIMES YOU DON'T KNOW, RIGHT? I MEAN, EVEN LIKE, SAY SB 22, THAT WAS SOMETHING NEW.
AND SO, YOU KNOW, YOU'RE KIND OF INTO IT BEFORE YOU EVEN GET THOSE GRANT AGREEMENTS AND STUFF.
BUT, UM, FOR THE MOST PART, YOU KNOW WHAT IT IS UPFRONT ONCE YOU KNOW YOU'RE DOING THE APPLICATION AND THEN WHAT, ONCE IT'S ACCEPTED AT THAT TIME, USUALLY THE GRANT AGREEMENT SIGNED.
AND SO JUST ENSURING THAT WE HAVE A COPY OF THOSE TO, YOU KNOW, MAKE SURE THAT WE CAN FOLLOW UP WITH DEPARTMENTS OF WHOEVER'S SUPPOSED TO BE REPORTING OR WHAT'S SUPPOSED TO BE HAPPENING HERE.
SO, AND AGAIN, ESPECIALLY WITH THOSE PASS THROUGH WHEN IT'S, YOU KNOW, SOMEONE'S KIND OF ADMINISTERING THAT ON OUR BEHALF, ULTIMATELY WE ARE RESPONSIBLE FOR IT.
WE ARE THE PARTY THAT THE AGREEMENT IS WITH, AND SO WE HAVE TO ENSURE, UM, THAT WE'RE MEETING ALL THOSE COMPLIANCE REQUIREMENTS.
AND REALLY INTENT IS NOT TO DING US.
IT'S, IT'S THINGS THAT WE LOOK AT BOTH FROM A STANDPOINT OF DOING THINGS THE RIGHT WAY, BUT ALSO THINGS THAT WE CAN CONTINUE TO IMPROVE ON.
THAT'S REALLY YOUR JOB TO COME IN AND LOOK AND SEE FROM A TRANSPARENCY STANDPOINT THAT, YOU KNOW, IS THERE THINGS THAT WE CAN IMPROVE THOSE PROCESSES OR NOT TO BE, IT'S NOT A NEGATIVE, A GOOD POINT BECAUSE, YOU KNOW, THESE FUNDS, WE DON'T SEE THEM SLOWING DOWN.
I MEAN, THERE'S ALWAYS OPPORTUNITY OUT THERE TO GET GRANT FUNDS IN.
AND SO REALLY JUST KEEPING AN EYE ON THOSE TYPES OF THINGS AND BEING ABLE TO MONITOR AND MAKE SURE THAT YOU ARE FOLLOWING ALL OF THOSE COMPLIANCE REQUIREMENTS.
YEAH, JUST KIND OF LEARNING AS YOU GO THE MORE THESE FUNDS COME THROUGH.
THANK YOU FOR WHAT YOU DO, AND THANK YOU FOR THE WORK THAT YOU'VE DONE WITH THIS AND WORKING WITH BRIANNA AND YOUR TEAM.
AND, UH, IT MEANS A LOT TO US AND IT'S, IT'S, AND IT'S A COMPLIMENT TO US TOO FROM A STANDPOINT OF THE WORK THAT'S BEEN DONE INTERNALLY.
UM, WE'RE VERY HAPPY WITH THIS.
WE WANT EVEN MORE INTEREST INCOME NEXT YEAR.
IT'S KIND OF DRIVEN BY THE MARKET ON THAT ONE, BUT SHE, I'M SURE SHE'LL BRING IN DOUBLE DIGITS.
SO ANYTHING ELSE YOU, YOU WANNA PRESENT? UM, JUST TO APPROVE AND ACCEPT THE AUDIT? OKAY, THEN I'LL ASK MOTIONS ALREADY MADE.
UH, COMMISSIONER WALDEN'S AHEAD OF ME HERE.
UH, MOTIONS MADE BY COMMISSIONER WALDEN WITH A SECOND BY COMMISSIONER CONLEY.
IS THERE ANY DISCUSSION WITH THIS ITEM BEFORE WE VOTE? ALL IN FAVOR PASS FIVE.
UH, MOVE TO ITEM TWO ON ADJOURNMENT.
I WOULD ASK FOR MOTION AND A SECOND.
RECORD SHOW THAT WE'LL ADJOURN AT 9 29.