* 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. [00:00:05] GOOD MORNING. GOOD MORNING. THANK Y'ALL ALL FOR COMING. I WANNA GO AHEAD AND OPEN THE MEETING FOR THE, THIS MONDAY, JUNE 30TH, 2025, AND THE RECORD SHORT IS 9 0 2. UH, TO [I.A. Request Commissioners Comi consideration and approval to apply for the 2025 Help America Vote Act disbursement from the Texas Secretary of State. (Cricket! Miller/ Judge Deen)] MOVE TO THE AGENDA ITEM, DISCUSS AGENDA ITEMS AND DISCUSS, ACT UPON THE FOLLOWING AGENDA ITEMS UNDER ITEM ONE, ITEM A, REQUEST COMMISSIONER'S, COURT CONSIDERATION AND APPROVAL TO APPLY FOR THE 2025 HELP AMERICA VOTE ACT DISBURSEMENT FROM THE TEXAS SECRETARY OF STATE CRICKET IF YOU WOULD COME UP. THANK YOU VERY MUCH FOR LETTING ME TALK TODAY. UM, THIS IS A GRANT THAT THE STATE HAS PUT OUT AND THEY JUST LET US KNOW LIKE TWO WEEKS AGO. UM, IT'S THE 2025 HAVA ELECTION SECURITY GRANT. THERE'S $10 MILLION FOR THE STATE OF TEXAS. UM, EVERY COUNTY CAN APPLY. UH, COUNTIES ARE GUARANTEED A CERTAIN AMOUNT PER REGISTERED VOTERS, SO OUR AMOUNT IS 52,000. THERE'S A 20% MATCH, WHICH WOULD BE 10,400. UM, YOU ONLY CAN USE THIS ON CERTAIN THINGS. SO THERE WAS A LITTLE BIT OF A DECERTIFICATION OF SOME EQUIPMENT OF THE POLL BOOKS AND STUFF. THANK GOODNESS THAT WAS NOT OURS, SO WE DON'T HAVE TO WORRY ABOUT THAT. UM, SOME OF 'EM HAVE TO DO THE 2026. YOU HAVE TO HAVE A PAPER AUDIT TRAIL, WHICH SOME OF 'EM ARE HAVING TO DO THAT. WE DON'T HAVE THAT PROBLEM. UH, SECURITY CAMERAS, WE ALREADY HAVE THAT. SO THE ONLY THING WE COULD REALLY DO WAS EPO BOOKS. SO THE POLL BOOKS THAT Y'ALL HELPED WE PURCHASE LAST YEAR, IT RETRO ALL THE WAY BACK TO JANUARY 1ST, 2024. SO WE CAN ASK FOR REIMBURSEMENT FOR THAT FUNDS THAT WE ALREADY SPENT. SO IF Y'ALL WOULD SIGN THIS, THEN WE CAN DO THAT. THIS WAS DUE TO THE I APPLE NOT NO LONGER DOING THE IOS UPDATES ON THE SOFTWARE THAT, I MEAN, ON THE IPADS THAT WE HAD. SO WE HAD TO PURCHASE NEW OTHER NEWER IPADS. UM, THIS ALL GOES BACK TO NOV, UH, JANUARY 1ST, 2024. THE AMOUNT THAT WE WOULD ACTUALLY GET REIMBURSED WOULD BE $31,355. SO WE WOULDN'T HAVE TO PUT UP A MATCH OR ANYTHING BECAUSE WE'VE ALREADY PAID FOR THIS ITEM. OKAY. WE HAVE A MOTION BY COMMISSIONER HILL AND A SECOND BY COMMISSIONER HALL. ANY OTHER DISCUSSION WITH THIS ITEM BEFORE WE VOTE? I DO HAVE ONE QUICK THING. UH, CRICKET AND IT, IT PERTAINS TO THIS, ALTHOUGH IT'S A BIT MORE INDIRECT. UM, I JUST WANTED TO MENTION TO YOU, YOU DON'T HAVE TO DO ANYTHING ABOUT THIS RIGHT NOW, BUT, UH, THERE ARE, THERE'S NOT A SMALL NUMBER OF FOLKS IN THE COMMUNITY WHO ARE ASKING COMMISSIONER'S COURT TO CONTINUE TO BE AS VIGILANT AS POSSIBLE ON OUR ELECTIONS. UH, IT'S MY UNDERSTANDING THAT RECENTLY COLLIN COUNTY VOTED TO MOVE AWAY FROM THE ELECTRONIC ELECTION EQUIPMENT TO MARKED PAPER BALLOTS. I'M, I'M SURE THAT THERE'S FOLKS WHO WILL ASK US TO CONTINUE TO LOOK AT THOSE OPTIONS DURING BUDGET SEASON. UM, SO I WOULD ASK THAT YOU JUST, UH, CONTINUE TO KEEP THAT AS A NUMBER THAT WE KNOW WHAT THE COST WOULD BE IF WE WERE TO MOVE TO SOMETHING LIKE THAT. I, I THINK THAT WOULD PROBABLY MAKE MR. BARATO HAPPY AND IT MIGHT EVEN MAKE MR. HEISER HAPPY. WELL, UH, CAN I GIVE A LITTLE HISTORY ON THAT? SURE. OKAY. SO THERE'S AN EXECUTIVE ORDER FROM THE PRESIDENT, AND ANY MACHINE THAT USES A BARCODE CANNOT BE, THAT'S WHAT THEY'RE WANTING TO GET RID OF. AND COLLIN COUNTY USES A MACHINE THAT USES A BARCODE AND IT'S FROM E, S AND S. WE USE HEART MACHINES. WE HAVE A QR CODE, BUT THAT HAS NOTHING TO TIE TO THAT BALLOT OR TO THE VOTER. THAT QR CODE IS TELLING A PRECINCT NUMBER AND A BALLOT STOP. IT HAS NOTHING TO DO WITH THESE OTHERS. TIE THE VOTES OF THAT BALLOT TO THAT BARCODE. WE DO NOT HAVE THAT. THAT'S HELPFUL INFORMATION. THANK YOU. I'M, WE ALSO STILL HAVE THE, THE PAPER BALLOT. SURE. AND OUR SCANNER READS THE WORDS ON THE BALLOT. THEY DON'T READ A BARCODE, SO IF IT'S TOM JEAN, THERE IT IS. GONNA READ THAT WORD. YEAH. SO THERE ARE DIFFERENCES. UM, THE SEVERAL COUNTIES ARE DOING THIS. UH, WILLIAMSON COUNTY ALSO IS PURCHASING, UM, BUT ALL HEART COUNTIES ARE GOOD TO GO AS FAR AS I KNOW. I APPRECIATE YOU POINTING THAT OUT. UM, I WOULD JUST ASK THAT YOU CONTINUE TO KEEP THE NUMBER HANDY OF WHAT THE OTHER OPTION WOULD LOOK LIKE. YES. FROM A COST PERSPECTIVE. YEP. I, I, YES SIR. APPRECIATE IT. OKAY. WE HAVE A MOTION A SECOND. IS THERE ANY OTHER DISCUSSION ON THIS ITEM BEFORE WE VOTE? ALL IN FAVOR. MOTION CARRIES FOR OUT. THANK YOU, . MOVE TO ITEM [I.B. Presentation and approval of2024 Annual Financial Report by Weaver and Tidwell. (Brianna Fowler/ Judge Deen)] B ON THE PRESENTATION APPROVAL OF 2024 ANNUAL FINANCIAL REPORT BY WEAVER AND TIDWELL. BRIANNA, IF YOU WOULD, GOOD MORNING. SORRY. YOU GOT, WE ARE HERE TO PRESENT THE FY UH, 2024 FINANCIAL STATEMENT AUDIT, WHICH WILL BE LED BY OUR EXTERNAL AUDITORS. WEAVER. UH, JACKIE GONZALEZ, WHO IS THE PARTNER ON THIS ENGAGEMENT WILL [00:05:01] BE PRESENTING THIS MORNING. UH, SHE'LL INTRODUCE THE AUDIT TEAM, GO THROUGH THE AUDIT PROCESS THAT WAS USED, UM, TO COMPLETE THE AUDIT, GO OVER THE AUDIT RESULTS, UM, GO OVER THE FINANCIAL HIGHLIGHTS OF THE GOVERNMENTAL FUNDS, WHICH INCLUDES THE, UH, BUDGET VERSUS ACTUAL RESULTS, AND THEN OPEN UP FOR ANY QUESTIONS. BUT AS ALWAYS, IF YOU HAVE QUESTIONS ALONG THE WAY, PLEASE ASK THEM. OKAY. YOU GO AHEAD. STATE YOUR NAME PLEASE. GOOD MORNING. I'M JACKIE GONZALEZ AND I'LL PRESENT THE AUDIT TODAY. THANK YOU SO MUCH FOR HAVING US HERE THIS MORNING. SORRY. YOU SHOULD BE READY NOW. OKAY, GREAT. AS I SAID, I'M JACKIE GONZALEZ. I SERVE AS YOUR ENGAGEMENT PARTNER, AND I ALSO HAVE WITH ME THIS MORNING JUSTINE SINGLETARY. SHE IS THE SENIOR MANAGER ON YOUR ENGAGEMENT. IN ADDITION TO THE TWO OF US, WE ALSO HAD BRETT CAROL SERVING AS THE SENIOR ASSOCIATE, AS WELL AS OTHER ASSOCIATES, UM, WITHIN THE FIRM, HELPING TO ASSIST THROUGHOUT THE AUDIT PROCESS. WE DO PERFORM OUR AUDIT IN ACCORDANCE WITH GENERALLY ACCEPTED AUDITING STANDARDS, AS WELL AS GENERALLY ACCEPTED GOVERNMENT AUDITING STANDARDS GIVEN THE AMOUNT OF FEDERAL FUNDING THAT YOU RECEIVE. AND THEN WE ALSO PERFORM A SINGLE AUDIT IN ACCORDANCE WITH THE UNIFORM GUIDANCE AS WELL AS THE STATE SINGLE AUDIT. IN ACCORDANCE WITH THE TEXAS GRANT MANAGEMENT STANDARDS, WE DO PERFORM A RISK BASED AUDIT. SO THROUGHOUT THE COURSE OF OUR PLANNING, UM, WE IDENTIFY THOSE AREAS THAT MAY PRESENT, UM, PARTICULAR RISKS TO THE COUNTY. THOSE INCLUDED THE GRANT REVENUES AND EXPENDITURES, AND THAT JUST MEANS WE SPEND, UM, A SIGN A SIGNIFICANT AMOUNT OF TIME ON THOSE DURING THE TESTING OF OUR AUDIT PROCEDURES. AS PART OF THAT PLANNING PROCESS, WE ALSO IDENTIFY SIGNIFICANT AND FRAUD RISKS. NOT THAT WE BELIEVE ANY FRAUD HAS OCCURRED OR ANYTHING LIKE THAT. UM, IT'S PART OF THE AUDIT PROCESS AND WHAT THE STANDARDS REQUIRE US TO DO. SO WE DESIGNED RESPONSES TO THOSE RISKS, WHICH INCLUDED THE RISKS OF MATERIAL MISAPPROPRIATION, OF ASSETS MANAGEMENT, OVERRIDE OF CONTROLS, AND REVENUE RECOGNITION. UM, OUR, ALL OF OUR TESTS WERE AS EXPECTED. UM, AND THOSE RESPONSES THAT WE DESIGNED ALL CAME BACK WITH, UM, POSITIVE TEST RESULTS. SO NO EXCEPTIONS THERE. IN ANY SET OF FINANCIAL STATEMENTS, WE DO HAVE ESTIMATES. AND SO THROUGHOUT THE COURSE OF OUR AUDIT, WE REVIEW THOSE ESTIMATES. UM, THE MOST SIGNIFICANT, UM, OF WHICH IN YOUR FINANCIAL STATEMENTS WAS THE ALLOWANCE FOR DOUBTFUL ACCOUNTS FOR PROPERTY TAX RECEIVABLES. AND THOSE ESTIMATES WERE AS EXPECTED THROUGHOUT THE COURSE OF OUR AUDIT, WE TEST INTERNAL CONTROLS OVER FINANCIAL REPORTING AS WELL AS OVER COMPLIANCE WITH YOUR FEDERAL AND STATE GRANTS. UM, AND WE ALSO TEST COMPLIANCE WITH THOSE MAJOR PROGRAM REQUIREMENTS FOR THE GRANTS. ON THIS NEXT SLIDE, YOU'LL SEE THAT WE DID, UM, ISSUE AN UNMODIFIED OR CLEAN OPINION. WE HAVE NO MATERIAL WEAKNESSES AND NO SIGNIFICANT DEFICIENCIES IN INTERNAL CONTROLS AS A RESULT OF THAT TESTING THAT WE PERFORMED. AS I MENTIONED, WE PERFORM A SINGLE AUDIT OVER YOUR FEDERAL GRANTS. UM, SO WE HAVE ISSUED AN UNMODIFIED OR CLEAN OPINION ON THOSE GRANTS. YOU DO QUALIFY AS A LOW RISK AUDITEE, WHICH MEANS THAT YOU COULD NOT HAVE HAD FINDINGS OR MATERIAL WEAKNESSES IN AT LEAST THE PREVIOUS TWO YEARS. UM, YOU HAD NO MATERIAL WEAKNESSES, NO SIGNIFICANT DEFICIENCIES, AND NO FINDINGS OVER THE FEDERAL GRANT. YOU CAN SEE DOWN THERE IN THE BOTTOM RIGHT THAT WE AUDITED THE AMERICAN RESCUE PLAN ACT. AS I MENTIONED, ALSO, WE ALSO, UM, AUDIT THE STATE AWARDS, AND WE ALSO HAVE A CLEAN OPINION OR UNMODIFIED OPINION OVER THOSE STATE AWARDS. YOU CAN SEE DOWN THERE ON THE BOTTOM RIGHT, WE AUDITED TWO MAJOR PROGRAMS FOR THE STATE, WHICH WERE THE RURAL LAW ENFORCEMENT SALARY ASSISTANCE PROGRAM, AS WELL AS THE TEXAS NATURAL GAS VEHICLE GRANT PROGRAM. SO WE HAD NO MATERIAL WEAKNESSES, NO SIGNIFICANT DEFICIENCIES, AND NO FINDINGS OVER EITHER OF THOSE GRANTS. MOVING ON TO THE FINANCIAL HIGHLIGHTS, I'M HERE AS FOR ALL OF THE GOVERNMENTAL FUNDS, AS YOU CAN SEE, YOU ENDED THE YEAR WITH TOTAL ASSETS OF 215 THOU $215 MILLION, TOTAL LIABILITIES OF 35.5, UM, DEFERRED INFLOWS OF 1.6 MILLION, WHICH BROUGHT YOU TO A TOTAL FUND BALANCE OF JUST OVER 178 MILLION. SO IF WE LOOK IN THE GENERAL FUND, WHICH IS IN THAT FIRST COLUMN THERE, YOU CAN SEE THAT TOTAL ASSETS OF THE 215 MILLION WERE JUST OVER 50 MILLION IN THAT GENERAL FUND, UM, LIABILITIES, JUST ABOUT 3.7 DEFERRED INFLOWS OF 1.4, WHICH BROUGHT THE FUND BALANCE IN THE GENERAL FUND TO JUST OVER $45 MILLION. WHEN WE LOOK AT THE REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE, YOU CAN SEE FOR THE TOTAL GOVERNMENTAL FUNDS, YOU HAD TOTAL REVENUES OF JUST OVER 130 MILLION WITH TOTAL EXPENDITURES OF 121.4 MILLION, AND THEN OTHER FINANCING SOURCES AND USES OF 82.2 MILLION, WHICH BROUGHT THE CHANGE IN FUND BALANCE TO 90.9 MILLION. AGAIN, IF WE LOOK AT THAT GENERAL FUND JUST BROKEN OUT SEPARATELY, YOU CAN SEE THAT TOTAL REVENUES IN THE GENERAL FUND WERE ALMOST 79.5 MILLION. [00:10:01] UM, 73.8 IN TOTAL EXPENDITURES, AND THEN 596,000 IN OTHER FINANCING SOURCES IN USES, WHICH BROUGHT US TO, WELL, 6.2 MILLION IN THAT CHANGE IN FUND BALANCE IN THE GENERAL FUND. SO HERE'S A BREAKDOWN FURTHER OF THOSE FUND BALANCES FOR EACH OF THE FUNDS. UM, SO WE BREAK THOSE DOWN INTO EITHER NONS, SPENDABLE, OR SPENDABLE. AND THEN WITHIN THE SPENDABLE CATEGORIES, YOU HAVE EITHER A RESTRICTED, COMMITTED OR UNASSIGNED. AND SO OF THE 178 MILLION, YOU CAN SEE THAT, UM, THAT BOTTOM LINE UNASSIGNED, THERE'S OVER 43.2 THERE, AND THEN THE LARGEST COMPONENT IS A HUNDRED AND OVER A HUNDRED MILLION IN CAPITAL PROJECTS, RESTRICTED AMOUNTS. AND THEN AGAIN, IF WE LOOK AT THAT GENERAL FUND, YOU CAN SEE OF THE 45 MILLION, UH, 43.2 IS UNASSIGNED. NEXT, MOVING FORWARD TO YOUR GENERAL FUND BUDGET TO ACTUAL, YOU CAN SEE YOU ENDED WITH TOTAL REVENUES BUDGETED AT 74 MILLION. ACTUALS CAME IN AT 79.5, AND THAT LED YOU TO A POSITIVE VARIANCE OF ALMOST 5.3 MILLION. WHEN WE LOOK AT THE EXPENDITURES HERE, YOU CAN SEE THAT YOU ENDED THE YEAR WITH TOTAL EXPENDITURES OF 73.8, UM, WITH A BUDGETED AMOUNT OF 80.34, WHICH AGAIN LED YOU TO A POSITIVE VARIANCE OF ALMOST $6.5 MILLION. HERE'S THE LATERAL ROAD FUND BUDGET TO ACTUAL, SO YOU CAN SEE THAT THE ACTUAL AMOUNT LANDED AT 20.7 MILLION AGAINST THOSE FINAL BUDGETED AMOUNTS OF 19.5. SO AGAIN, A POSITIVE VARIANCE OF 1.2 MILLION. HERE ARE THE EXPENDITURES, WHICH LANDED, UM, ACTUAL AMOUNTS AT 16.3 MILLION AGAINST YOUR BUDGETED OF 28.6 FOR A POSITIVE VARIANCE OF 12.3 MILLION. HAPPY TO TAKE ANY QUESTIONS. AGAIN, I WANNA THANK YOU FOR ALLOWING US TO SERVE AS YOUR AUDITORS AND, UM, AS YOU CAN SEE HERE FROM THESE RESULTS, VERY POSITIVE RESULTS, UM, ABLE TO COMPLETE ON TIME. AND, YOU KNOW, WE'VE DONE THE AUDIT FOR SEVERAL YEARS, AND I THINK EACH YEAR WE CONTINUE TO SEE IMPROVEMENTS IN PROCESSES AND JUST TIMING AND EVERYTHING THAT GOES ALONG WITH OUR, UM, PERFORMING THE AUDIT. SO THANK YOU VERY MUCH. CONGRATULATIONS ON ANOTHER SUCCESSFUL AUDIT. UM, JUST A QUICK QUESTION. I SHOULD KNOW THIS ACTUALLY. HOW, HOW MANY YEARS CONSECUTIVE HAVE YOU DONE THE AUDIT PROCESS? OH, I SHOULD KNOW THIS OFF THE TOP OF MY HEAD TOO. I THINK WE'RE IN 2014, A LONG TIME. SO, I MEAN, AND I HAVE A POINT TO THIS. DURING THAT TIME, I MEAN, YOU'VE OBVIOUSLY KNOW US VERY WELL, SO THE CONTINUATION, WE GOT A NEW AUDITOR SIX, SEVEN YEARS AGO. UM, IS THERE A PROGRESSION OR CONTINUOUS, OBVIOUSLY I, I HAVE THE ANSWER ALREADY KNOW THIS, BUT, UM, THERE'S A CONTINUATION OF CONTINUING TO IMPROVE THE PROCESS. SO, AND WE'RE ON THAT TRACK. IS THAT COMMON OR IS THAT SOMETHING THAT, UM, IS THERE ANYTHING MORE? WHAT CAN WE DO OR, BECAUSE THE QUESTIONS THAT WERE ASKED TO ME DURING THE INTERVIEW THAT WE HAD, UH, WERE VERY, VERY STRAIGHTFORWARD, YOU KNOW, ABOUT SOME OF THE CONCERNS, OR I JUST KIND OF.IN THE I'S AND I, I, I PROBABLY TALKED MORE THAN I SHOULD HAVE BECAUSE IT'S, IT'S, I'M PROUD TO SAY THAT WE'VE EVOLVED MUCH MORE SO TO THE POINT NOW THERE'S CHECKS AND BALANCES IN THERE THAT THERE'S NO ISSUES AT ALL. IN FACT, THOSE WE'VE BECOME STRENGTHS AND LIKE IT AND, AND SOME OTHER AREAS THAT, THAT HAVE STRENGTHENED OUR FINANCIAL POSITION. THAT, UM, I, I GUESS WHAT I'M SAYING IS OVER THAT PERIOD OF TIME THAT Y'ALL HAVE DONE THIS, THERE HAS BEEN A DRASTIC CONTINUATION OF IMPROVEMENT. CORRECT? YES. AND YOU KNOW, IN BOTH THE AUDIT INDUSTRY AND JUST IN, AS YOU KNOW, IN GOVERNMENT, THE SCRUTINY HAS BECOME MORE AND MORE, THERE'S MORE AND MORE GRANTS OUT THERE. THE REQUIREMENTS ON THOSE ARE JUST, YOU KNOW, HARDER AND HARDER TO COMPLY WITH. AND THE DOCUMENTATION REQUIRED IS SO MUCH MORE. AND SO TO BE ABLE TO CONTINUE TO HAVE NO FINDINGS, BOTH IN YOUR INTERNAL CONTROLS AND COMPLIANCE, JUST SPEAKS TO THAT CONTINUAL PROGRESS. 'CAUSE YOU ARE ALWAYS HAVING TO STAY ON TOP OF THOSE CHANGES AND MAKING SURE THAT YOU HAVE THOSE PROCESSES IN PLACE TO RESPOND. AND THEN WHEN WE COME ASKING, BE ABLE TO PROVIDE THAT DOCUMENTATION ALONG THE WAY. SO EACH YEAR WE DO, UM, CONTINUE TO SEE IMPROVEMENT AND THEN OF COURSE, WE'RE INVOLVED THROUGHOUT THE YEAR. SO ANY QUESTIONS THAT COME UP, YOU KNOW, WE REALLY APPRECIATE THE OPPORTUNITY TO HAVE THOSE DISCUSSIONS EARLY ON SO THERE'S NO SURPRISES ONCE WE GET TO AUDIT TIME. WELL, AGAIN, IT'S A TESTAMENT TO OUR, OUR AUDITOR AND, UH, HER STAFF AND, UH, THE TEAMS THAT WORK WITH HER AND, AND THROUGHOUT THE COUNTY. WE APPRECIATE WHAT YOU'RE DOING HERE. WE APPRECIATE THIS VERY MUCH. IS THERE ANY COMMENTS, ANYBODY, QUESTIONS THAT WE WOULD LIKE TO ASK HER? UH, WE ALREADY HAVE A MOTION BY COMMISSIONER WALDEN. AND DO WE HAVE A SECOND? I I DO HAVE ONE QUICK SECOND [00:15:01] MADE BY COMMISSIONER HILL. COMMISSIONER. SO IF I'M READING, SORRY, MY, MY NOTEBOOK'S FALLING APART. I GOTTA, IF I'M READING THIS RIGHT, OUR FUND BALANCE AT THE END OF THE YEAR, UM, IS 54% OF OUR ANNUAL EXPENDITURES WHEN WE HAVE A TARGET OF 25 TO 50%. IS THAT ACCURATE? I BELIEVE THAT. AND BRIANNA, DO YOU RECALL, UM, ABOUT WHERE HAS THAT PERCENTAGE FLOATED OVER THE PAST FEW YEARS? UH, I BELIEVE LAST YEAR IT WAS CLOSE. IT WAS ABOUT THE SAME IN THE 50% MARK. OKAY. AND THE YEAR BEFORE, I WOULD HAVE TO LOOK. I KNOW DEFINITELY LAST YEAR, BUT I THINK IT WAS CLOSE. UM, OBVIOUSLY THAT NUMBER CHANGES AS OUR EXPENDITURES INCREASE. UM, WE HAVE HAD A, UH, POSITIVE INCREASE IN FUND BALANCE OVER THE LAST SEVERAL YEARS AS WELL AS INCREASING THOSE EXPENSES. SO I THINK IT'S BEEN PRETTY, UM, CONSISTENT THERE, OR AT LEAST THE LAST COUPLE OF YEARS. AND SO I HAVE, UM, PUT TOGETHER IF YOU GUYS WANT ANY OF THAT, IF YOU HAVE QUESTIONS RELATED TO THE POSITIVE VARIANCES, UM, BOTH ON THE REVENUE SIDE AND THEN OF COURSE ON THE EXPENDITURE SIDE. UM, AND EVEN IN LOOKING AT SOME OF THOSE, UM, AREAS WHERE WE HAD THOSE POSITIVE VARIANCES, WHEN I COMPARED IT TO LAST YEAR, IT WAS PRETTY, UM, SIMILAR WITH SOME OF EITHER THE DEPARTMENTS OR EXPENDITURE TYPE. SURE. I THINK, I THINK WHAT STANDS OUT TO ME IS THE FIRST YEAR THAT I CAME ON, I WAS, UH, I WAS PRETTY CONCERNED THAT OUR FUND BALANCE WAS ABOUT TO SHRINK QUICKLY. 'CAUSE I FELT LIKE THERE WERE SOME HEADWINDS AGAINST IT. UH, WE DID NOT USE THE NO NEW REVENUE RATE THAT YEAR OR LAST YEAR. UM, OUR FUND BALANCE, I THINK BECAUSE OF THAT HAS NOT SHRUNK NEARLY AS MUCH AS IT WAS PROJECTED TO. CORRECT. I DO THINK THIS IS A YEAR WHERE, GIVEN THAT IT CAME IN AT 54% AGAIN, AND OUR STATED POSITION IS TO BE AT 25 TO 50 AND WE'RE CONSISTENTLY AT THE HIGHEST END OR SLIGHTLY ABOVE THAT, I'D SUGGEST TO THE COURT THAT THIS IS PROBABLY A YEAR WHERE WE MIGHT, UH, WE MIGHT TAKE A SLIGHTLY DIFFERENT APPROACH AND, AND JUST KEEP THAT IN MIND THAT MAYBE WE CAN BE A LITTLE BIT MORE AGGRESSIVE WITH PULLING FROM FUND BALANCE SINCE IT IS REMAINING HIGHER THAN OUR STATED TOP END. WELL, THAT'S MY ONLY COMMENT AND IT'S A GOOD COMMENT. I THINK THAT, UM, LOOKING AT THE BUDGET AND AS WE GO INTO THAT SEASON, IT OBVIOUSLY GIVES US THAT OPTION. BUT ALSO JUST ON THE FLIP SIDE OF THAT, WHAT DOES THAT REALLY TRANSLATE TO? IS THAT IF WE'RE CONTINUING TO COME IN ABOVE THAT, ARE WE EXPENDING, ARE WE UTILIZING THE BUDGET AS IT'S SUBMITTED IN PRESENTING A BALANCED BUDGET? AND ARE WE OVER, OVER, UM, FORECASTING? ARE WE OVER SUBMITTING SOMETHING THAT WE'RE NO LONGER NOT SPENDING THE FUNDS FOR? AND THAT'S WHAT THEY'RE INTENDED TO BE. SO THAT'S SOMETHING TO KEEP IN MIND AS WELL. YES, AND I THINK ON BOTH SIDES, I MEAN, THERE'S POSITIVE VARIANCES BOTH ON THE REVENUE SIDE AND EXPENDITURE SIDE, WHICH IS A GOOD THING, BUT ALSO IT MAKES IT DIFFICULT WHEN YOU ARE PASSING A BUDGET. UM, YOU KNOW, LOOKING AT THE AMOUNT THAT IS PROJECTED TO PULL FROM FUND BALANCE AND THEN ACTUAL RESULTS OF THAT. UM, YOU KNOW, IN, IN JUST LOOKING AT THE EXPENDITURES KIND OF FROM AN OVERALL PERSPECTIVE, I MEAN, THE BIGGEST PART OF OUR POSITIVE VARIANCE IS OUR IN IN OUR SALARY AND BENEFITS, WHICH WE'VE TALKED ABOUT THAT. SOME OF THAT IS JUST, UM, YOU KNOW, INSURANCE CHANGES OR IF YOU HAVE, UM, UNFILLED POSITIONS, THOSE BECOME POSITIVE VARIANCES THROUGHOUT THE YEAR OR IF YOU HAVE DEPARTMENTS THAT AREN'T PAID, UM, AT, YOU KNOW, THE BUDGETED AMOUNT. UM, SO IT, IT DID DECREASE FROM LAST YEAR WHEN I LOOKED AT IT, BUT IT WAS STILL ABOUT 1.6 MILLION OF A POSITIVE VARIANCE. UM, OF COURSE OUR PROGRAM CONTINGENCIES, UM, THAT WAS ABOUT 1.4. AND SO GOING INTO IT, WE ALWAYS KNOW, YOU KNOW, WHAT PART OF IT, WHEN WE'RE SAYING WE'RE, UM, YOU KNOW, USING FUND BALANCE, WHAT PART OF THAT ARE WE SHOWING THAT IS A, IS A CONTINGENCY FOR, UM, UNEXPECTED THINGS OR OPPORTUNITIES THAT MAY ARISE THROUGHOUT THE FISCAL YEAR? UM, IN THIS PARTICULAR, FOR FISCAL YEAR 24, WE DID HAVE ABOUT 1.3 ROLLOVER, WHICH WAS RELATED TO, UM, SPECIAL PROJECTS. SO WE KNOW THAT WE WILL REALIZE, UM, THAT DECREASE, IT'S JUST ROLLING OVER INTO LIKE THIS FISCAL YEAR, WHICH WAS, UM, THE ELECTIONS BUILDING, UH, REMODEL FROM WHAT WAS PURCHASED AS WELL AS THE IMPLEMENTATION OF THE NEW SOFTWARE. UM, WE DID HAVE A ALMOST 946,000, UM, FOR TRANSFERS TO JUVENILE PROBATION. THAT INCLUDES BOTH, UM, JUST REGULAR JUVENILE PROBATION AS WELL AS J-J-A-E-P, WHICH [00:20:01] AGAIN, THAT WAS THE, UM, FIRST YEAR OF THAT, UM, FOR FISCAL YEAR 24, JUST KIND OF GETTING THAT OFF THE GROUND. UM, SOME OF THE OTHER LARGER IS JUST CONTRACT SERVICES, OUR INMATE HEALTHCARE, WHICH, UM, INMATE HEALTHCARE CAN VARY FROM YEAR TO YEAR. THERE'S BEEN YEARS THAT WE'VE HAD TO COME BACK AND ASK THE COURT TO PULL FROM CONTINGENCY TO COVER THAT. UM, LAST YEAR WE HAD A POSITIVE VARIANCE, WHICH IS, WHICH IS GOOD. I KNOW THERE'S BEEN SOME, UM, YOU KNOW, WORKING WITH, UH, HOSPITAL DISTRICT IN DIFFERENT THINGS TO HOPEFULLY, YOU KNOW, KEEP THOSE, UM, COSTS UNDER CONTROL. UM, TWO UNDER AND 23,000 ROLLED OVER FROM, OR WERE NOT UTILIZED FOR CAP, NON CAP REQUESTS. UM, EQUIPMENT, AUTO REPAIR, MAINTENANCE FUEL TIRES, THAT WAS ABOUT 170,000. UM, 196,000 WERE IN TRIAL COSTS, COMPETENCY EVALUATION AND ATTORNEY'S FEES. THERE WAS ACTUALLY A REALLY SMALL AMOUNT THIS YEAR IN ATTORNEY'S FEES. SOME OF THAT'S MORE IN THE TRIAL COSTS. AGAIN, THOSE VARY FROM YEAR TO YEAR JUST DEPENDING ON THE TYPE OF, UM, CASES. UM, SPECIFICALLY IN THE DISTRICT COURT THAT, UM, THEY HAVE WITH EXPERT WITNESS, INVESTIGATIVE, THAT SORT OF THING. UM, AND THEN THE NEXT AREA WAS ABOUT ALMOST A HUNDRED THOUSAND IN TRAINING. SO ALL OF THOSE ARE ABOUT 6.7, UM, YOU KNOW, POSITIVE VARIANCE. AND WHEN WE LOOK AT THE REVENUE SIDE, UM, A BIG PORTION OF IT WAS OUR INTEREST. UM, WE DID LAST YEAR WAS THE FIRST YEAR THAT WE ACTUALLY MARKED A FAIR VALUE, JUST MEANING OUR COSTS, UM, AND FAIR VALUE PREVIOUSLY. UM, WE'RE NOT VERY FAR APART, BUT IN THE LAST TWO YEARS, YOU KNOW, UH, WE'VE SEEN A BIG, WHICH IS A GREAT THING, UM, POSITIVE VARIANCE THERE. AND SO WE HAD ABOUT OVERALL 2.7 MILLION, UM, FOR A FAIR VALUE ADJUSTMENT. UM, SO WE HAVEN'T REALIZED THOSE INTEREST EARNINGS, BUT FROM WHERE IT IS, IF WE SOLD THOSE INVESTMENTS TODAY, THAT'S WHAT IT'D BE WITH A MILLION DOLLARS OF THAT GOING TO THE GENERAL FUND. AND, AND THAT WAS THANKS ENTIRELY TO YOU AND NOT AT ALL TO BECKY, RIGHT? , SHE'S OUR TREASURER IS DOING AN AWESOME, AWESOME JOB. OH, IT THANKS TO BECKY MCCULLOUGH. . SHE IS DOING A FANTASTIC JOB THERE. I DID DO SOMETHING. I HAD A QUICK QUESTION. WELL DONE, BECKY. YES, YES, BECKY, THANK YOU. CAN YOU EXPLAIN A LITTLE BIT THE IMPACT OF THE ARPA FUNDS ON OUR BUDGET LAST YEAR? BECAUSE I WANT TO KEEP THAT IN MIND. 'CAUSE A LOT OF US I KNOW IN MY PRECINCT, WE APPLIED THOSE TO HELP ON THE OPERATION SIDE. YES. SO I DON'T WANT TO HAVE TWO, I DON'T WANT TO GET OVERCONFIDENT SURE. AND UNDERSTAND THE WEIGHT OF THAT SINCE WE'RE NOT GONNA HAVE THAT SAME RIGHT. YOU KNOW, BENEFIT THIS YEAR. SO YOU CAN SEE HERE OH, OH YEAH, YEAH. I THINK IT WAS ON THERE. I THINK OTHER WAY. OKAY. YEAH. OKAY. SO A LARGE PORTION, UM, YOU COULD SEE ARPA EXPENDITURES ABOUT 9.5. AGAIN, PART OF THAT WAS, UM, THE LOST REVENUE COMPONENT, WHICH WAS USED BY, UH, THE PRECINCTS. BUT THEN OF COURSE WE ALSO HAD THE MOTOROLA PROJECT AS WELL AS SOME OF THOSE, UM, BENEFICIARY AGREEMENTS. UH, WE'RE GONNA GO TO HERE WHERE YOU SEE A VERY LARGE POSITIVE VARIANCE IN EXPENDITURES. AND SO, UM, A PORTION OF THAT, DID WE DO IT FOR 24? YES. UM, A PORTION OF THAT WAS WE HAD TO HAVE FUNDS OBLIGATED BY THE END OF DECEMBER OF THIS LAST YEAR. AND SO THEY'RE, WHY YOU'RE SEEING SOME OF THAT POSITIVE VARIANCE IS WE USED, UM, PAYROLL COSTS, UM, TO GO AHEAD AND HAVE THOSE, UM, ARPA EXPENDITURES, UM, COMPLETED FOR THAT TIME PERIOD. NOT EVERY PRECINCT DID IT, BUT THAT IS A LARGE, UM, COMPONENT OF THAT. SO IF YOU GO AND YOU LOOK AT YOUR INDIVIDUAL PRECINCTS, WHAT BUDGETED AND ACTUALS WERE, A LOT OF THAT POSITIVE VARIANCE IS, IS UH, THE PAYROLL EXPENDITURES THAT WE MOVED TO ARPA FUNDS. SO WE COULD, UM, GO AHEAD WITH THAT. AND THEN YOU HAVE ADDITIONAL FUNDS SENDING YOUR PRECINCT BUDGETS FOR OTHER PROJECTS. I DON'T HAVE THE, IS WORTH MENTIONING? YES, YES, ABSOLUTELY. BECAUSE I DON'T WANT A FALSE, YOU KNOW, THAT SOME THE FALSE SENSE OF SECURITY YEAH. AND EVERYTHING. AND SOMETIMES AT THE END OF THE YEAR, JUST AS WE SEE IN THE GENERAL FUND, UM, DEPENDING ON IF THERE'S BEEN BIG CAPITAL EXPENDITURES, YOU KNOW, FOR EQUIPMENT AND STUFF LIKE THAT, IF IT HASN'T COME IN, UM, UNTIL, YOU KNOW, AFTER WHEN WE'RE HAVING TO ROLL THOSE FUNDS, SOMETIMES YOU'LL SEE A LITTLE BIT OF THAT. BUT PARTICULARLY THIS YEAR THAT'S RELATED TO THOSE ARPA FUNDS. THANK YOU. EXCELLENT POINT. ANY, ANY OTHER, UH, ANY OTHER COMMENTS OR QUESTIONS, I'D JUST SAY WELL DONE BRIANNA. THANK YOU. WELL DONE BECKY. WELL DONE TO YOUR STAFF AND YOUR [00:25:01] TEAM. THANK YOU TO Y'ALL. APPRECIATE Y'ALL'S GUIDANCE AND ASSISTANCE AS WE KIND OF NAVIGATE GOING FORWARD AND TRY TO FIGURE OUT WHAT'S BEST FOR THE COUNTY AND HOW WE STEWARD OTHER PEOPLE'S MONEY TO THE BEST OF OUR ABILITY. ABSOLUTELY. I AGREE. YEAH. AND A VERY SPECIAL THANK YOU ALSO TO WEAVER AND YOUR LONGSTANDING RELATIONSHIP WITH THE COUNTY AND YOUR, THE KNOWLEDGE OF US. AND THAT REALLY DOES HELP IN AS FAR AS YEAR OUT, YEAR OVER YEAR AND LOOKING AT HOW WE'RE PROGRESSING AND CONTINUING TO GET BETTER. 'CAUSE THERE'S ALWAYS ROOM TO CONTINUE TO GET BETTER. THANK YOU AGAIN. UM, ANYTHING ELSE? OKAY, WE HAVE A MOTION. SECOND. UH, ANY OTHER DISCUSSION? ALL IN FAVOR. MOTION CARRIES FOR OF THANK YOU VERY MUCH. THANK YOU. MOVE TO ITEM TWO ON ADJOURNMENT. I'D ASK FOR A MOTION. MOTION MADE BY MR. HA, SAME BY COMMISSIONER HOLT. ALL IN FAVOR. RECORDS SHOW THAT WE'LL ADJOURN AT 9 28. * 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.