[0:06] need to call us to order. Everyone,

[0:10] welcome to the August Finance [snorts]

[0:12] Committee meeting of the Sonoma County

[0:15] Library Commission. And I see all of the

[0:17] present commissioners received the color

[0:20] memo. And we are colorcoordinated today.

[0:24] So, you could tell who the commissioners

[0:25] are. And um let's see if there's any

[0:29] public comment.

[0:32] We saw there were no comments received

[0:35] via email. And there are

[0:38] I believe no members of the public. Let

[0:40] me double check.

[0:43] Okay.

[0:44] >> There are no members of the public.

[0:45] » There are no members of the public.

[0:45] Commissioner Angbart is watching via

[0:49] Zoom.

[0:49] >> Right. Thank you. Well, let us let me

[0:52] » Right. Thank you. Well, let us let me

[0:52] call everybody to order here.

[0:53] Commissioner Goldberg

[0:55] >> here. Commissioner Polls.

[0:57] » here. Commissioner Polls.

[0:58] Did we hear from Commissioner Polls? No,

[1:00] we did not hear from her. And

[1:01] Commissioner Taylor

[1:03] >> here.

[1:05] » here.

[1:05] >> And very

[1:08] » And very

[1:08] hearty greeting to Commissioner Taylor

[1:10] and Commissioner Goldberg for attending

[1:13] the first Finance Committee meeting. We

[1:15] welcome you and are glad you're with us.

[1:17] Um, announcements. I have the same

[1:20] announcement that I had at the last

[1:22] meeting which is my status as a

[1:24] commissioner has not been confirmed. I'm

[1:27] still hanging out here a little bit

[1:30] hoping I can continue but as of now I am

[1:34] acting under the direction of the city

[1:37] to continue coming to meetings. Uh

[1:40] public appearances we don't seem to have

[1:43] anyone. Okay. Uh let's move into

[1:46] discussion item uh 4.1 finance committee

[1:49] roles and responsibilities. I wanted to

[1:51] take just a little bit of time since we

[1:53] have our actually majority of our

[1:55] members today are brand new and talk

[1:59] about what we really are supposed to be

[2:00] doing in this committee because it isn't

[2:02] always clear I think to to people what

[2:04] we do. Um

[2:07] to back up just a little bit, um this

[2:10] this new library commission started 12

[2:13] years ago in August of 2014. And at that

[2:16] point in time, prior to that, the

[2:19] commissioners were appointed by the

[2:21] Sonoma County uh supervisors. They each

[2:24] could name a commissioner and then the

[2:26] city of Santa Rosa could name somebody

[2:28] and city of Paloon can name somebody and

[2:30] that was the library commission.

[2:31] Starting in August of 2014,

[2:34] all of this all the jurisdictions got a

[2:36] representative. That was one of the

[2:37] major changes that happened when this

[2:39] JPA was redone. So, um I walked into the

[2:43] first meeting and commissioner uh Tim

[2:46] May from Pedaluma walked up to me and

[2:49] said, "Would you be on the finance

[2:50] committee?" And I said, "Sure." And then

[2:51] I'm still I've been doing it all this

[2:53] time. It was very informal. We didn't

[2:56] have any roles or responsibilities. We

[2:58] were totally winging it. And um so just

[3:01] over time this committee has uh you know

[3:04] clarified its roles. We have great

[3:07] leadership now that we didn't have then.

[3:09] We had a brand new CFO, a brand new CEO.

[3:14] Both of them were new to the system.

[3:15] They have come and gone. And we have,

[3:18] you know, such a strong management team.

[3:20] Now it's a a different day. So you're

[3:22] you're walking into a a good well-run

[3:26] um you know financial department of this

[3:29] of the commission at this point in time.

[3:32] So, just to talk a little bit about what

[3:34] we do do,

[3:35] we do um we review the reports that the

[3:39] CFO prepares for us. And one of the

[3:42] important things I know there's been

[3:43] comments by commissioners. We don't know

[3:45] how to read them. We don't understand

[3:47] them. They're complicated and all that.

[3:48] And I think all of us want to make a

[3:50] concerted effort to make sure everybody

[3:52] can understand at least some basic part

[3:55] of things so you can always, you know,

[3:57] tell where we are. And we think all the

[3:59] commissioners should be able to do that.

[4:00] and hopefully that will come up at the

[4:02] retreat and go over some of the basic um

[4:05] basic reports that we do. Um we can have

[4:08] no more than five commissioners as a

[4:10] five as 11 member body. The five was a

[4:13] as a majority and um I believe uh a

[4:17] fifth person has been named but we're

[4:19] holding back for now until the Hillsburg

[4:22] commissioner gets seated. So, at the

[4:25] next meeting, I will or will not be

[4:26] there, and the new person will

[4:30] presumably be there, and I believe it's

[4:32] Commissioner Riley, is it not? Um, so

[4:35] anyway, what we do besides review the

[4:37] reports, um, the the chair of the of the

[4:40] commission may say, you know, I really

[4:42] want you to look at something, you know,

[4:44] some financial issue that's going on or

[4:48] something. It's poorly understood by the

[4:50] commission, whatever. So the the chair

[4:52] of the commission and this happens very

[4:54] very rarely can ask us specifically to

[4:56] look at something that I can't even

[4:58] remember the last time that happened but

[4:59] that can happen based on our role and

[5:01] responsibility. the full commission

[5:03] could say, you know, we don't understand

[5:05] such and such. Let's take it back to

[5:08] finance committee and let them hash it

[5:09] over and then report to us. Or any of us

[5:13] can bring up something that we're

[5:14] concerned about that we think would be a

[5:16] helpful topic to to look into. So, we

[5:19] can also put something on the agenda and

[5:21] we'll have the opportunity to do that at

[5:22] the end of the meeting.

[5:24] Um we don't necessarily do anything with

[5:26] all the stuff that we do but if the

[5:28] commission chair or um or the the

[5:33] commission or the or us ourselves we can

[5:35] make recommendations you know if if on

[5:38] upon request and so we you know we can

[5:40] do that. Um we also look at the

[5:42] preliminary audit when the auditors go

[5:44] through everything and we kind of go

[5:46] through line by line and you know make

[5:49] all the comments and

[5:52] you know edits and so forth that we

[5:54] think are are appropriate. So, we do

[5:57] meet once a month and we have

[5:59] traditionally met the entire time I've

[6:01] been on this always on Monday

[6:02] afternoons. Recently, we changed the

[6:04] time to Monday at 2 to accommodate

[6:07] another uh uh meeting that Erica has.

[6:11] And um so you know we were going to talk

[6:14] about changing this but we thought well

[6:16] let's wait till whatever month it is

[6:18] soon that everybody's here and then

[6:20] we'll work around what what works best

[6:22] for you for everyone [clears throat]

[6:26] and in this day and age we can

[6:28] participate by teleconference. To me

[6:30] it's always great to be here in this

[6:32] room if at all possible but Kim I know

[6:34] you have you know more commuting issues.

[6:36] So uh to the extent possible we'll we'll

[6:38] meet here continue to meet here. Um so

[6:42] um the chair is supposed to be elected

[6:46] uh in August. I saw it briefly on this

[6:48] agenda and then it disappeared and

[6:50] probably because of this issue of our

[6:52] our committee structure itself isn't

[6:54] quite set. So that would probably be in

[6:57] September I'm assuming. Um so the the

[7:01] chair and I was elected I think two

[7:03] years ago and then reelected. Um, my my

[7:07] position is to work with MNA and with

[7:10] Lisa on the the the agendas. Lisa's

[7:13] great about carrying over things that

[7:16] she knows we need to talk about and then

[7:17] Mirina has her stuff and then I have my

[7:19] stuff and then we we work it out.

[7:21] Usually the agendas aren't too terribly

[7:23] long. Um, and then I'm responsible for

[7:27] leading the meeting. The vice chair

[7:28] leads the meeting when um I'm pointing

[7:32] this way. Lisa Tina is not actually the

[7:34] vice chair, but whoever's sitting here.

[7:36] Um, in my absence, the the vice chair

[7:39] would would lead the meeting.

[7:41] Um, the minutes come to the chair after

[7:45] Lisa writes them up for edits. We do

[7:49] action minutes, which used to be

[7:51] frustrating to me because it didn't have

[7:53] like all the stuff in them and I like

[7:54] detail. So, we've kind of come to a

[7:57] compromise and if there's some kind of

[8:00] meaty issue that needs a little detail,

[8:02] I added quite a bit to our minutes the

[8:05] last time because we were talking about

[8:06] the bond measure. I thought it would be

[8:08] helpful to add to the minutes some of

[8:10] the detail that we had talked about, but

[8:13] we don't do she said this and he said

[8:15] that and they approved that and stuff

[8:16] like that. So we try to keep them uh

[8:18] reasonably streamlined but at least

[8:20] informational enough that that helps um

[8:23] certainly the other commissioners to

[8:24] read it and know what it is. So anyway

[8:28] then the then the minutes go out to all

[8:30] the commissioners and then you can all

[8:32] make you know comments and um and then

[8:36] it says here that I am to the chair is

[8:38] to prepare and deliver a monthly report.

[8:40] Usually that's the minutes but it could

[8:43] be something special if there was a

[8:45] special topic. So anyway, uh way back

[8:47] when early days when I was finance

[8:50] committee chair, we had a problematic

[8:53] committee member and we've constantly

[8:56] interrupted and wouldn't you know play

[8:59] by the organizational structure. So

[9:01] anyway, we I added this got added which

[9:04] is uh finance committee members are

[9:06] appointed by the chair, committee

[9:07] members may resign at their discretion.

[9:10] Committee members may also be removed by

[9:12] the chair in consultation with the chair

[9:14] of the finance committee. the chair of

[9:16] the commission can remove people who

[9:17] aren't, you know, functioning or maybe

[9:19] attending or or whatever reason, but

[9:22] that's only happened once in 12 days

[9:24] that I know about. Okay, great. Well,

[9:26] any questions about the role and

[9:27] responsibilities? Anything that you

[9:29] would you're not clear about either one

[9:32] of you.

[9:34] >> Just to thank you and I appreciate the

[9:35] » Just to thank you and I appreciate the

[9:35] overview. It's very helpful.

[9:37] >> You may hear it again next time if I'm

[9:39] » You may hear it again next time if I'm

[9:39] still here and there's another new

[9:40] person. I just think it's important to

[9:42] know what we're doing, you know, what

[9:43] we're supposed to be doing. So great.

[9:45] Well, thank you for your attention to

[9:46] that. Um, moving on to the update on the

[9:49] bond sale and would our CFO take the

[9:53] reigns on this one? I believe

[10:00] » so.

[10:03] Um, finally the culmination of the

[10:07] search for

[10:10] um, finally the culmination for the

[10:13] search and the financing of a new

[10:17] central operations center um, took one

[10:21] of the largest milestones which was the

[10:24] sale of the the revenue bond that

[10:27] happened on Thursday the 13th. it was

[10:31] with very successful uh results. Um we

[10:34] wanted to give you an update today on uh

[10:39] more details on what happened. Um

[10:43] and first

[10:45] why don't give you the this Oh, maybe

[10:48] Bobby are you sharing your screen? Okay,

[10:50] >> I am. Yeah. Uh could folks see the the

[10:53] » I am. Yeah. Uh could folks see the the

[10:53] title slide?

[10:55] >> Yes. So, Bobby from KN&N Municipal

[10:58] » Yes. So, Bobby from KN&N Municipal

[10:58] Advisors is uh here to um give us an

[11:03] overview, but we wanted to start off by

[11:05] letting you know that uh we there there

[11:09] were uh very good um for our for our

[11:14] purposes, good conditions in the market.

[11:17] There were some um economic indicators

[11:19] that came in and uh did not shake

[11:23] anything up. So, it was uh good for us

[11:26] that week. Uh but prior to um the sale,

[11:32] we were required to uh um request a

[11:37] credit rating since this is the first

[11:40] time that the library issued a bond. Of

[11:43] course, we don't have any credit

[11:44] history. And so um we presented um

[11:50] director Tibiot and I presented to a

[11:54] committee from standard and por's global

[11:57] ratings team and um and had submitted

[12:03] many documents to them. Uh they also uh

[12:08] sent us many questions in advance that

[12:11] we prepared for and KN&N helped us

[12:14] prepare a presentation of our financial

[12:18] condition profile of the uh Sonoma

[12:23] County and specifically the library

[12:26] which uh all was uh wellreceived and as

[12:31] a result standard and pores rated the

[12:33] library

[12:35] an AA plus.

[12:37] >> Is that the highest you can get? Is

[12:38] » Is that the highest you can get? Is

[12:38] there any AAA or double plus or anything

[12:41] >> there? The AAA is the highest. Um, and

[12:44] » there? The AAA is the highest. Um, and

[12:44] then there's probably a couple of others

[12:47] in between the AA plus and the AAA.

[12:51] >> Uh, double A plus is just below AAA. So,

[12:54] » Uh, double A plus is just below AAA. So,

[12:54] it's AAA and then double A+. So, this is

[12:57] a very very strong rating.

[13:01] So I I I wanted to make sure uh the

[13:04] finance committee knew that uh the one

[13:09] of the major results of it of this was

[13:13] because of uh very strong uh fiscal

[13:17] management of the organization. They

[13:20] cited uh the policies, the financial

[13:23] policies of the fund balance, uh

[13:26] proactive payment of the OPE liability,

[13:31] the pension liability,

[13:33] and um conservative budgeting. So, all

[13:38] of those items um uh influenced that

[13:43] double A+ rating. and wanted to thank uh

[13:47] KN&N for uh their assistance in uh

[13:52] preparing all of this. And the the

[13:57] rating is very important because it it

[13:59] is an an indicator to potential

[14:03] investors of how um

[14:07] creditw worthy we are um to pay back you

[14:11] know any investment. Um and so therefore

[14:14] um uh wanted to to highlight that kudos

[14:19] to the the commission, the finance

[14:22] committee that's had led many of these

[14:24] policies that contributed to this um

[14:29] this uh stable outlook for us.

[14:31] >> Um I'm going to add to that a little

[14:33] » Um I'm going to add to that a little

[14:33] bit. Um, and one of the reasons why we

[14:35] received this high rating wasn't just

[14:37] because of our financial stability, but

[14:39] all of those policies that the finance

[14:42] committee um, helped guide us through,

[14:44] including our allocation of revenue

[14:46] sources, our fund balance policy, um,

[14:50] our debt policy we passed. So, all of

[14:53] those things actually helped contribute

[14:55] to our double A+ rating. So having that

[14:59] secure policy base um was really helpful

[15:02] and it will also be helpful in years to

[15:05] come. You know we always have the

[15:06] opportunity to um refinance um in 10

[15:10] years and maintaining a solid credit

[15:13] rating will improve our ability to get

[15:16] um better interest rates in 10 years.

[15:19] So, it's a good thing as long as we can

[15:21] kind of maintain this fiscal stability

[15:23] and uh fiscal um responsibility, it will

[15:26] it just bodess well for us.

[15:31] » So, transitioning to the next slide,

[15:33] which is the summary of competitive sale

[15:35] pricing results, I will uh ask Bobby to

[15:41] um step in and go over these next few

[15:44] slides.

[15:46] >> Great. Uh thank you, Mina. And uh good

[15:48] » Great. Uh thank you, Mina. And uh good

[15:48] afternoon uh members of the finance

[15:50] committee. Uh Bobby Chung from KN&N

[15:52] public finance. Um yeah, as uh uh uh

[15:56] just mentioned uh the double A+ credit

[15:58] rating really was a strength in the uh

[16:02] marketing of this uh transaction. Um

[16:05] your bond sold via a competitive sale.

[16:07] So um the entire universe of uh broker

[16:11] dealer firms were invited uh uh to

[16:14] participate uh in this transaction and

[16:17] last Thursday uh uh we received nine

[16:21] bids from the market um with uh the

[16:25] winning bid being submitted by UBS

[16:28] Financial Services uh at a true interest

[16:31] cost of uh just about 4.04%.

[16:35] And the true interest cost is a is a

[16:37] blended borrowing rate uh for each one

[16:40] of the uh the 30 years of uh uh bond

[16:43] maturities that that were uh uh that

[16:45] were priced. Um and uh as uh as

[16:49] mentioned previously uh really the the

[16:52] the CPI and PPI figures that were

[16:55] released uh in advance of that uh sale

[16:57] date um contributed to a really strong

[17:00] tone in the market. basically uh fears

[17:03] of inflation were removed uh and it was

[17:06] um uh a really good uh strong day. And

[17:09] so as you could see uh you know the UBS

[17:11] bid uh uh came in uh significantly lower

[17:15] uh than many of the other bids uh that

[17:17] were received uh on on on the day of

[17:20] sale.

[17:21] Uh

[17:23] the next slide uh is the final sources

[17:26] and uses. Um uh total sources equals

[17:30] total uses. Here uh the transaction bar

[17:33] amount uh after factoring in um the

[17:38] actual coupons and yields received from

[17:40] UBS uh was finalized at $12.025

[17:44] million. Uh as a function of the sale,

[17:47] uh uh the library will be receiving

[17:49] about $400,000

[17:52] uh in bond premium uh from the investors

[17:54] who purchased uh uh these bonds um

[17:58] totaling uh sources of 12.447.

[18:02] Uh in terms of the uses, 12.18 million

[18:06] will go towards the uh the acquisition.

[18:08] Uh this of course uh uh um uh is in

[18:13] addition to the $600,000 that the

[18:15] library uh is um you know has already

[18:18] committed uh in cash. Uh about $220 went

[18:22] towards paying cost of issuance and that

[18:24] covered our fee uh bond and disclosure

[18:28] council, the credit rating, the trustee,

[18:31] the financial printer uh etc.

[18:35] uh the underwriter discount uh 45,000 uh

[18:39] that uh that's the amount that went to

[18:40] UBS uh for uh for winning the bid uh and

[18:44] underwriting the bonds. And this

[18:46] rounding amount is just because uh bonds

[18:48] are issued in $5,000 increments.

[18:52] Uh the transaction will close next

[18:54] Thursday on August 27th. Um this is uh

[18:58] uh the transaction has a final maturity

[19:00] of October 1, 206 and the final true

[19:03] interest cost was right around 4.04%.

[19:07] Uh this resulted in uh average annual

[19:09] payments of uh about $712,000

[19:14] uh per fiscal year and total payments of

[19:18] about uh 21.69

[19:21] million when factoring in both principal

[19:24] uh and interest.

[19:26] Uh so the next slide shows the the

[19:29] detailed uh breakout of principal and

[19:32] interest. Um we we structured this to

[19:35] generate level payments on a fiscal year

[19:37] basis for the entire term uh except for

[19:40] the current fiscal year which just has

[19:42] an interest payment uh uh due in the

[19:44] spring of uh 2027. Um but yeah, no uh

[19:49] you know this this result came in um you

[19:51] know stronger than than we were

[19:53] anticipating. Uh I think the last time I

[19:55] I spoke before your your fuller

[19:57] commission you know we were estimating

[19:59] you know 750,000 per year uh you know

[20:02] the borrowing rate uh as of that time um

[20:05] we were estimating you know like 440 450

[20:08] range and then the credit rating came in

[20:10] stronger than anticipated uh and the

[20:12] bond market conditions itself were were

[20:15] stronger uh um uh than we were

[20:17] anticipating. So I think this is a

[20:19] really good result.

[20:21] Um the next slide is uh just a couple of

[20:24] next steps through the bond closing. Uh

[20:26] so um you know as we uh as we all know

[20:31] uh the steps leading up to uh uh up to

[20:34] uh the pricing um uh have occurred

[20:37] already. Uh so we have locked in those

[20:40] interest rates. Uh and over the course

[20:43] of this week uh and through early next

[20:46] week, we'll be obtaining signatures

[20:47] necessary for closing. Uh and then next

[20:50] Thursday the 27th um uh the transaction

[20:53] will officially close where UBS will

[20:56] send money uh to our trustee uh and then

[21:00] the trustee will send uh uh a transfer

[21:03] to uh your account uh on on the day of

[21:06] closing. Uh so let me pause there see if

[21:09] there are any questions uh before we

[21:11] move on uh uh to the uh to the last

[21:14] slide.

[21:15] >> Any questions from commissioners?

[21:19] » Any questions from commissioners?

[21:19] I have something I'd like to add.

[21:22] >> Yes.

[21:24] » Yes.

[21:24] >> Um, so I know that when we were

[21:25] » Um, so I know that when we were

[21:26] contemplating this purchase, one of the

[21:28] things that we looked at was a

[21:29] comparison of our lease costs versus uh

[21:33] our debt service. And I can say with

[21:35] this new interest rate, uh, we will

[21:38] surpass our lease costs in year four.

[21:42] So, we will um we will basically be

[21:45] paying a little bit more for the next

[21:47] four years, but we will be flat payments

[21:52] essentially um after um after that. And

[21:54] so, it really is prudent that we made

[21:57] this decision.

[22:00] >> That's really great news. And I happen

[22:02] » That's really great news. And I happen

[22:02] to bring this from one of our early

[22:04] discussions and it we're trying to see

[22:06] which was a better deal. And there was

[22:08] it did show that crossover at year six.

[22:10] What I had noticed and the reason I

[22:12] brought this was, you know, we're

[22:13] talking about 764,762,000.

[22:18] Bobby mentioned a slightly lower number,

[22:20] but I mean, you know, it's 50,000 a year

[22:23] or something like that for 30 years, you

[22:26] know, at least. So, it's saves us a lot

[22:28] of money and that is due to the high

[22:30] rating, right? We take it all back to

[22:32] being a great

[22:35] greatly wellorganized functioning fiscal

[22:38] organization. So anyway, uh I like

[22:41] Bobby. I love the fact that you were

[22:42] kind of surprised.

[22:46] >> Yeah, I am too. [laughter]

[22:49] » Yeah, I am too. [laughter]

[22:49] >> You dealt with any similar kind of

[22:51] » You dealt with any similar kind of

[22:51] public institution like us that

[22:53] surprised you in such a way?

[22:55] >> Yeah. Yeah. You know, of course,

[22:57] » Yeah. Yeah. You know, of course,

[22:57] sometimes it goes the other way, right?

[22:58] Um uh there were uh um this was a very

[23:03] good uh result in the credit rating uh

[23:06] and a very good tone in the bond market.

[23:07] So, uh, you really had those two things,

[23:10] um, working for you. Um, so, yeah, it

[23:14] it's just a testament to, you know, to

[23:16] this committee's, uh, in particular, uh,

[23:18] you know, prudent, um, financial

[23:21] management. So, yeah.

[23:24] >> So, there there's a little bit of a

[23:25] » So, there there's a little bit of a

[23:25] lucky day aspect to this, too, given the

[23:29] political climate and national political

[23:31] climate. Is that what you were kind of

[23:32] pointing out in your report?

[23:34] >> A little bit. Yes. Right. Um the the

[23:36] » A little bit. Yes. Right. Um the the

[23:36] double A plus credit ratings certainly

[23:38] helped. Um but also uh we we did hit a

[23:42] particularly stable

[23:44] tone in the market. You know leading up

[23:47] to to last Thursday there was about a

[23:49] week and a half of stability. Um and uh

[23:52] uh strength in the bond market. Um so

[23:56] that uh uh that all uh came to to your

[24:00] benefit.

[24:02] >> Great. The the fates were with us. Um,

[24:05] » Great. The the fates were with us. Um,

[24:05] Bobby, my question would be, do you have

[24:07] a continuing role?

[24:10] >> We do. We do. Yeah. Um, and that's a

[24:13] » We do. We do. Yeah. Um, and that's a

[24:13] good transition actually. Uh, Mirina,

[24:15] uh, why don't, uh, MNA walk through, uh,

[24:19] this last slide and then and then I

[24:21] could talk a little bit about, um, our

[24:24] continuing role.

[24:28] So um as you know the closing is on

[24:31] August 27th

[24:33] and then at that time the trustee

[24:36] computer share will distribute the bron

[24:38] proceeds to the library as Bobby has

[24:41] mentioned. Um the library has then has

[24:44] to turn that around and wire the funds

[24:47] to um Old Republic title uh so that um

[24:52] we complete our transaction with the

[24:54] seller and that's we should be doing

[24:57] that by early the first week of um

[25:00] September.

[25:02] Um the library will be establishing a

[25:06] new um fund so that we can track these

[25:11] proceeds and payments um separately from

[25:15] all of our other funds. And our first

[25:18] payment is due on April 2027. It will be

[25:24] print um interest only at that time. But

[25:28] then our second payment which is due in

[25:30] October will include principal and

[25:32] interest and it will be the first time

[25:34] we see that 700,000 number.

[25:38] And uh in terms of uh KN&N's role, uh

[25:43] the library will be required to um

[25:46] submit reports annually to the state and

[25:50] um and uh we'll need to we will be

[25:54] receiving assistance from KN&N in

[25:56] compliance with these reporting

[25:58] requirements.

[26:01] Did you want to add anything to that,

[26:02] Bobby?

[26:04] >> Um yeah, ju just on that last point. Um

[26:07] » Um yeah, ju just on that last point. Um

[26:07] uh again since uh since these bonds once

[26:09] they close um you know they're they're

[26:11] publicly issued bonds. So the investors

[26:13] who purchase your bonds initially uh you

[26:16] know should they want to they they have

[26:18] the flexibility to to trade them in the

[26:20] secondary market. So uh it's important

[26:22] that um uh uh the information uh remains

[26:27] current for for bond holders. And so

[26:29] there's a there's a continuing

[26:31] disclosure requirement uh uh where where

[26:34] the library will uh on an annual basis

[26:37] uh basically present its uh uh its its

[26:41] annual audit uh plus um I think two of

[26:44] the tables in the preliminary um and

[26:47] final official statement uh to the

[26:49] market and and that will help uh you

[26:52] know keep investors um uh uh up to date

[26:55] on on your credit. Um

[26:58] uh yeah, the state of California through

[27:00] the treasur's office has a annual debt

[27:04] uh transparency report uh that basically

[27:07] um where where you report the spend down

[27:10] of the your bond proceeds and also the

[27:13] payown of your uh outstanding bonds. Um

[27:16] that's an annual requirement. Um and uh

[27:19] yeah, we we do not disappear uh at uh

[27:22] you know at at at time of the bond

[27:24] closing. Um, you know, we're here to to

[27:27] assist with the compliance of of these

[27:29] measures, uh, moving forward.

[27:33] >> Thank you very much. Um, commissioners,

[27:35] » Thank you very much. Um, commissioners,

[27:35] do you have any questions at this point?

[27:37] Um, I would like to ask kind of a simple

[27:40] question, but to explain to the public,

[27:43] I I was at a forens library meeting this

[27:46] morning. What is like a simple language

[27:48] that we can use to explain what we have

[27:50] just done as a library?

[27:55] you know it like

[27:56] >> well uh I I'll start off and maybe Bobby

[28:00] » well uh I I'll start off and maybe Bobby

[28:00] can elaborate. Essentially

[28:03] uh we we are promising that um

[28:10] that the library because of its strong

[28:12] property tax general fund revenues. we

[28:16] are able to afford to pay back uh a loan

[28:20] that we took from um you know a public

[28:23] sale of bonds.

[28:26] Is it something about when we have gone

[28:29] out for you know that's something about

[28:32] going out and issuing public bonds it

[28:34] gets complicated when you try to explain

[28:36] it because obviously KN&N and all the

[28:38] people that involved in this I mean we

[28:40] didn't do it but how do you how do you

[28:42] kind of explain it to the public but you

[28:44] know for the first time we are taking on

[28:46] you know debt to buy a a headquarters an

[28:48] operations building by by what me by

[28:51] what method

[28:53] >> um through a competitive bond sale. So,

[28:56] » um through a competitive bond sale. So,

[28:56] as opposed to, you know, I think when

[28:58] most people think of bonds, they think

[28:59] about those um those ballot measures,

[29:02] you know, those bonds that are actually

[29:04] pledges of additional taxes that people

[29:07] will pay. So, this is not an additional

[29:10] tax. Um they are not paying, you know,

[29:13] taxpayers will not be paying any more

[29:15] money to the library as a result of

[29:17] this. This is an investor who has looked

[29:20] at our finances, who has learned, who

[29:23] has decided that they [clears throat]

[29:24] can make money on this investment and

[29:28] they are lending us money in order to

[29:33] make money, if that makes sense. and

[29:35] they are looking at our balance sheets

[29:37] and our fiscal policies and our

[29:39] financial stability and they're

[29:40] basically they're taking a risk you know

[29:43] um that uh that we will continue to be

[29:46] fiscally stable and um and make

[29:50] financial prudent financial decisions

[29:52] but that risk is going to you know earn

[29:55] them money

[29:58] if that makes sense. Do we call it

[30:00] public bond sales? Is that right?

[30:04] >> Correct.

[30:05] » Correct.

[30:05] >> Yes, that that's that's right. Yes.

[30:07] » Yes, that that's that's right. Yes.

[30:07] >> And so I think it is important though

[30:09] » And so I think it is important though

[30:10] this point that we made earlier that

[30:11] this is not that it saves us money that

[30:15] in in within four years we'll be paying

[30:18] less by paying the interest on this than

[30:20] we would have been paying for a lease. I

[30:21] think that's part of anyway I' I'd like

[30:23] to boil it down at some point in time to

[30:26] uh you know the elevator paragraph or uh

[30:30] yes Eve

[30:34] said to people

[30:35] >> uh Eve can you please push your

[30:38] » uh Eve can you please push your

[30:38] >> this is what I have said that's short

[30:41] » this is what I have said that's short

[30:41] but it could be wrong so I want to put

[30:44] it out there and find out if I got it

[30:45] right or wrong. So, I have said um cuz

[30:49] somebody asked me I've said we have

[30:52] floated a a public bond instead of going

[30:55] to a bank for a loan and they said is

[31:00] that because with a public bond

[31:04] you are paying a lower interest rate and

[31:06] I said yes and they said are you paying

[31:09] a lower interest rate because you're a

[31:11] public institution so the investors

[31:14] don't have so somebody doesn't have to

[31:17] pay taxes on their dividends. And I

[31:19] said, I don't know, but I think so. Is

[31:22] that correct? Is that why we have a

[31:24] lower interest rate? That that's a

[31:28] that's an excellent question. Um, first

[31:31] of all, yes. The investors that have

[31:35] loaned you money do not have to pay uh

[31:38] income tax on the interest that they

[31:41] receive, federal income tax. A and if

[31:44] they live in California, uh state income

[31:47] tax as well. Um so then therefore

[31:49] they're they are willing to to loan you

[31:51] money at a uh preferential uh or lower

[31:56] interest rate versus uh a private

[31:58] company um uh you know uh selling bonds.

[32:03] Um so that that's number one. Number

[32:05] [clears throat] two, you could always go

[32:08] to a bank uh and a bank would lend you

[32:11] money at a tax exempt rate. Uh but

[32:15] accessing the public bond market as we

[32:17] did through a competitive sale um

[32:20] results

[32:21] generally in a lower interest rate than

[32:24] going directly to a bank. So, not only

[32:27] is your rate tax exempt,

[32:30] but also it's a public bond sale and

[32:33] lower than if you went to just a a a

[32:36] like a commercial bank like a Beimo or

[32:39] or or JP Morgan uh uh for a uh for a

[32:43] direct loan.

[32:47] » So, it's both.

[32:49] >> Thanks.

[32:50] » Thanks.

[32:50] >> Yeah.

[32:52] » Yeah.

[32:52] >> Great.

[32:53] » Great.

[32:53] I think we're all feeling very

[32:55] celebratory.

[32:56] I certainly am. So, um, any other

[33:00] questions? Anything else you'd like to

[33:01] say to us, Bobby, before we wrap up the

[33:06] >> No, congratulations. We were uh uh very

[33:09] » No, congratulations. We were uh uh very

[33:09] pleased with the result and we look

[33:10] forward to the to the closing uh next

[33:12] Thursday. Well, from everything I've

[33:15] heard, you've been great to work with

[33:17] and um really appreciate every all your

[33:19] efforts and clarifying everything to us

[33:22] and walking us through a brand new

[33:24] thing. So, thanks very much.

[33:26] >> Appreciate it. Thank you.

[33:29] » Appreciate it. Thank you.

[33:29] >> Bobby.

[33:30] » Bobby.

[33:30] >> All right. See you later.

[33:32] » All right. See you later.

[33:32] >> All right. Thank you.

[33:35] » All right. Thank you.

[33:35] >> Bye.

[33:38] » He's very calming, doesn't he? It feels

[33:41] like it's all under control with Bobby.

[33:42] Jo's got it. It's really good. Mirina,

[33:45] did you want to add anything or or Erica

[33:47] to our this discussion

[33:50] before we move forward?

[33:52] >> This this is a major milestone for for

[33:55] » This this is a major milestone for for

[33:55] the library. I I believe that um you

[33:59] know the the sales tax measures have

[34:02] allowed us to and have propelled us to

[34:05] this point and the library continues to

[34:09] mature in meaning that um these policies

[34:14] that are in place um

[34:18] uh are an important factor in

[34:23] establishing controls and expectations.

[34:26] ations and transparency on how we manage

[34:29] our affairs and um so the work of this

[34:35] committee has been really instrumental

[34:37] in that. Um having a full staff in um uh

[34:44] in our in our accounting working with

[34:46] the county uh partners uh have made a

[34:50] very big difference. We've had clean

[34:52] audits um and uh so I think all of that

[34:58] is um is moving us in the right

[35:00] direction. But my point is that the

[35:03] library continues to with the more

[35:07] uh revenues

[35:10] um and the greater expenditures that we

[35:13] have uh this the organization is uh

[35:17] becoming more complex and um

[35:22] and more mature and uh has been able to

[35:26] utilize the tools that are set for us in

[35:29] the joint powers. agreement

[35:32] and uh and so this is this had never

[35:35] been exercised before, but we are

[35:38] utilizing it and and it was there for a

[35:40] reason um to continue to provide very

[35:44] good services for for um our residents.

[35:49] And uh I'd like to say that working with

[35:52] uh director Tibbo is uh pretty amazing.

[35:55] she d, you know, she's jumps right in.

[35:58] Um, and uh and and and we work really

[36:02] well together and really appreciate um

[36:06] her her her uh inquisitiveness and and

[36:11] uh also vision for um for this

[36:15] organization. So, thank you.

[36:17] >> Well, I I couldn't have done it without

[36:18] » Well, I I couldn't have done it without

[36:18] Mirat.

[36:20] >> Absolutely not. and uh you know and also

[36:22] » Absolutely not. and uh you know and also

[36:22] having these adviserss you know really

[36:24] walk us through the process. It was

[36:26] enormously helpful. Um we could not have

[36:28] done it um by ourselves. It was just an

[36:31] enormous task. And of course the um

[36:33] accounting staff was also incredibly

[36:36] helpful and having them uh to support

[36:38] her. And you know we probably and poor

[36:41] Lisa you know um our last couple

[36:43] commission meeting packets have been you

[36:45] know down to the wire and I don't really

[36:47] like to operate that way. Um, but it has

[36:49] really been because this purchase and

[36:52] the bond sale has eaten up a lot of

[36:54] time. Um, but you know, I'm very I'm

[36:57] hopeful that after this we can go back

[36:59] to our our regularly scheduled

[37:02] commission packets.

[37:04] So, thank you, Lisa.

[37:06] >> Thanks.

[37:07] » Thanks.

[37:07] >> You're welcome.

[37:10] » You're welcome.

[37:10] >> Well, I'm going to allow myself a couple

[37:11] » Well, I'm going to allow myself a couple

[37:11] of minutes here because

[37:14] um I I I realize I'm really the last of

[37:17] the old guard. there's no commissioner

[37:19] has been on as long and and the

[37:22] management hasn't been on as long and so

[37:24] forth and just to give everybody just a

[37:26] dose of perspective when again you know

[37:28] I love your word mirror about this

[37:31] organization maturing is a perfect word

[37:34] and evolving and adding and you know

[37:36] building um because 12 years ago when

[37:39] the new JPA started we were operating on

[37:42] a shoestring we had only the property

[37:45] tax I believe it was 15 million it was

[37:47] something like the budget was about that

[37:48] and you know 12 years later we're at 50.

[37:51] Um it was open the library is open 40 uh

[37:54] 40 hours a week 5 days a week closed

[37:56] Sunday and Monday there was just the it

[38:00] was keeping the lights on the friends

[38:02] were buying most of the books. I mean it

[38:04] was a very very desperate situation and

[38:07] right before the new JPA kicked in at

[38:10] that time again I like to point out that

[38:11] Jamie Anderson and David Dodd were

[38:14] co-inter directors. I mean everything

[38:17] was just so patched together and um so

[38:22] those brand new CFOs brand new CEO um

[38:25] the brand new commission I mean

[38:27] everything was just you know new and

[38:29] green and and shaky and you know just

[38:31] trying to to build an organization from

[38:34] whatever there was a fund balance policy

[38:36] but it wasn't very complete and we

[38:38] started working on that right away um

[38:41] the OPED I'm very proud of because I was

[38:45] part of that And we had we went out and

[38:47] got I got Darren Jenkins who was our

[38:49] city manager at the time to be on a

[38:51] subcommittee and there were two other

[38:53] pension experts who joined us and

[38:55] created this you know policy just out of

[38:59] whole cloth once we once we got the t

[39:01] first tax measure passed when we got

[39:03] measure Y passed and so then there was

[39:05] money. Um the the Kalpers thing is just

[39:08] brand new right off just we just voted

[39:11] on that as a commission and that was the

[39:12] other thing and I know Andy was really

[39:14] very essential in that something that

[39:17] there's two big unfunded liabilities and

[39:20] we taken care of both of them. I mean

[39:22] it's really astonishing. Andy is

[39:24] somebody who's pointed out not long ago

[39:26] that we don't often reflect on our

[39:28] successes enough. And part of it I think

[39:30] is uh losing the perspective and if

[39:33] anything I can bring perspective because

[39:35] you've lived through this whole thing

[39:37] and uh the the difference in having

[39:40] committed

[39:41] permanent feeling management is just

[39:44] makes all the difference in the world.

[39:46] You two are a tremendous team. you've

[39:48] just we feel solid and of course Dara

[39:51] adds her expertise you know as a as a

[39:53] assistant director and um it's just it

[39:56] feels so good to be you know so secure

[40:00] in in what we're doing and not fly by

[40:03] night like it did for a long long time.

[40:05] So I applaud everybody who uh has added

[40:08] to the maturity and the development and

[40:10] so forth and it's you know it takes a

[40:12] village and all that takes everybody and

[40:14] their own talents and skills. So um

[40:16] anyway much much much to be proud of for

[40:19] as a system and as all of us who are

[40:22] currently participating as well. So

[40:24] anyway thank you. I I had to indulge in

[40:26] a little

[40:29] reflection. So on that um so we did the

[40:32] update on the bond sale. Let's move on

[40:34] to 4.3 the 26year end on audited

[40:39] financials and back to our CFO for that.

[40:57] I want to bring up the the detail. I'd

[41:00] rather show this

[41:06] the summary.

[41:09] I don't know if you can make it bigger.

[41:13] Probably

[41:16] make it a little bigger. If the yellow

[41:18] comes off, that's fine.

[41:21] Let's see.

[41:31] Okay,

[41:33] little one.

[41:36] Um, okay. So, good afternoon. This is

[41:40] our annual unawudited year-end uh report

[41:45] that shows um financials through June

[41:48] 30th, 2026. We're in August. The month

[41:52] of July is a dual period, what we call a

[41:55] dual period. We're working in the new

[41:57] fiscal year as of July 1, but uh we work

[42:02] with the county's timeline and their

[42:05] financial system. So we are um we work

[42:10] with their timeline in terms of closing

[42:12] the year end. So there are transactions

[42:17] that are happening uh for last fiscal

[42:20] year although it was closed on June

[42:22] 30th. There are transactions that have

[42:25] late invoices that that are that come in

[42:28] after you know July third I mean June

[42:31] 30th. um any um journals that we have to

[42:37] make, you know, moving funds from, you

[42:39] know, uh our friends donations into, you

[42:43] know, property tax or sales tax as

[42:45] reimbursements, closing up and wrapping

[42:48] up our grants. All of those LA uh year

[42:52] end um activities are taking place in

[42:55] July and they we're given about three

[42:59] weeks or so uh to close up and then the

[43:03] system is closed for June 30th and um

[43:07] and then we get we we get our financials

[43:10] that you're seeing in front of you. So,

[43:13] and staff is working very quickly and

[43:17] busily um in the month of July because

[43:19] we're working in two fiscal years.

[43:22] Um

[43:24] so, having said that, uh I wanted to um

[43:28] say that we're in a uh steady uh

[43:32] financial position. Uh so as we're going

[43:35] into strongly into this new fiscal year

[43:38] 2627

[43:40] and um the f the the the

[43:44] first look at this are the budget versus

[43:48] actuals. The budget that you see in

[43:51] green in the green column is the

[43:53] adjusted budget. This is our sum summary

[43:56] page

[43:59] and uh and then you have all the

[44:03] recordings for every month of the fiscal

[44:07] year

[44:09] and uh we have as everyone know knows uh

[44:13] we do have financials for every month um

[44:19] and now we're looking at June and the

[44:21] reason why we have estimated in June

[44:24] is that we may still encounter some

[44:28] budget adjustments

[44:30] uh in particular uh around um revenues

[44:35] in terms of our sales tax and in our

[44:40] expenditures around capital.

[44:43] So um

[44:47] the reason why revenues are estimated

[44:50] under sales tax is that sale we receive

[44:54] our sales tax receipts two months after.

[44:58] So as you can see here the July month is

[45:01] is uh July and August are blank because

[45:05] we don't receive um the July

[45:09] receipts until September. So we record

[45:12] them in September. So therefore if we

[45:15] follow that logic uh the June the May

[45:19] receipts are received in July and the

[45:22] June receipts are received in August

[45:24] that we're still waiting for. Um but we

[45:28] do an estimate. We average the uh April

[45:32] and May receipts and and we plug in uh a

[45:36] figure. We do up them um update them to

[45:41] the true receipts through budget

[45:44] adjustments in August and um eventually

[45:47] we do have an opportunity to ref do

[45:50] those updates also in the system.

[45:54] Um

[45:56] so the actual revenues total were 49.07

[46:01] million

[46:03] uh which is 1.09 09 million greater than

[46:07] the approved budget.

[46:09] Um,

[46:11] and under a, and I'll get into more

[46:14] detail, but this is just the high level.

[46:16] Under actual operating re operating

[46:19] expenditures,

[46:21] operating expenditures are all of their

[46:23] expenditures, salaries, and services and

[46:26] supplies.

[46:29] Um, and it excludes capital.

[46:32] >> Were you in the yellow? We're doing the

[46:34] » Were you in the yellow? We're doing the

[46:34] yellow or you still doing the green

[46:37] >> the green the yellow is last year the

[46:41] » the green the yellow is last year the

[46:41] prior year.

[46:42] >> Oh

[46:43] » Oh

[46:43] she is

[46:46] okay.

[46:52] » Thank you.

[46:53] Okay. So

[46:56] in terms of uh Yes. So actuals are um

[47:02] what I'm looking at are

[47:06] the unodudited actual actuals yearto

[47:09] date plus incumbrances

[47:12] and um can you scoot that over a little

[47:15] bit?

[47:20] » Okay. So we don't encumber revenues. So

[47:24] you see blanks there. And so again our

[47:28] total revenues is 49.07

[47:31] million which is 1 million greater than

[47:36] the budget which and the budget is in

[47:38] the green.

[47:53] Um then I have total expenditures which

[47:56] does include our capital that is the

[48:00] total expenditures are 50.71 million

[48:04] which are approximately also 1.58

[48:07] million less than the approved budget.

[48:11] So we're spending less than we budgeted.

[48:14] What we call a savings.

[48:17] Oh, we have more revenues than we

[48:19] budgeted and also we are spending less

[48:22] than we budgeted. Yes.

[48:24] Um then you could also now this is this

[48:28] what I just explained was from the left

[48:31] to the right. My next uh item is from

[48:36] the top to the bottom. You can see that

[48:39] our revenues were 49 million

[48:44] with the total

[48:47] cap with capital expenditures of 50.7

[48:50] million

[48:52] our revenues

[48:54] our expenditures are greater than our

[48:57] revenues but that has was planned for

[49:00] and the reason is that what is bringing

[49:04] us up above our revenue are there a

[49:07] capital expenditures and as we know we

[49:10] use our fund balance for for that and

[49:14] right here what we're showing is our

[49:16] operating revenue that comes in

[49:18] annually.

[49:20] Okay,

[49:20] >> that was so that was planned for.

[49:23] » that was so that was planned for.

[49:24] >> And when you say fund balance

[49:28] as opposed to unassigned fund balance,

[49:32] are you saying that those capital

[49:34] expenditures were already

[49:36] put aside?

[49:39] Nothing to do with the unassigned.

[49:41] >> Correct.

[49:42] » Correct.

[49:42] >> Okay,

[49:43] » Okay,

[49:43] >> I'm going to interject just a quick

[49:45] » I'm going to interject just a quick

[49:45] point. One of the reports I wanted to

[49:47] start off our training with was the fund

[49:50] balance reports, but they're not

[49:52] finalized yet, but it really helps you.

[49:55] You can see the property tax and the

[49:57] sales tax and you can see the money put

[49:59] aside for all the stuff and it just it

[50:01] really will help and we'll have that

[50:03] next in September

[50:05] so you can look at that. But it'll help

[50:07] you. Yeah, responsible being on a

[50:10] committee that I better really

[50:12] understand things when I haven't really,

[50:15] you know, I sort of semi okay, you know,

[50:18] maybe find

[50:21] this stuff now.

[50:22] >> I'm available at any time uh you have

[50:25] » I'm available at any time uh you have

[50:25] any questions um if you'd like to sit

[50:27] down and go over these reports.

[50:30] Okay. So in terms of um

[50:36] revenue details um I already mentioned

[50:40] the high level just to drill down into

[50:43] property tax. Property tax receipts were

[50:46] a total of 30.28

[50:48] million

[50:50] right there.

[50:52] um which is approximately 267 less than

[50:57] the approved adjusted budget. Uh what

[51:00] we're seeing and experiencing is that

[51:03] properties are still staying on the

[51:05] market longer and um and also affecting

[51:10] the number of sales. People are still

[51:12] it's just the market has slowed down a

[51:14] little bit.

[51:16] Um

[51:18] the under sales tax the estimated

[51:20] receipts are 15.61

[51:23] million. Uh it's $34,000

[51:28] greater than the approved but again

[51:30] that's estimated. We will true these up

[51:33] or update to actuals. um

[51:37] the later this month when we receive uh

[51:40] those those August figures.

[51:44] Other revenue

[51:46] receipts is a combination of revenues

[51:48] such as interest earned on our cash

[51:51] balances,

[51:52] other um other jurisdictional or

[51:55] intergovernmental sources which includes

[51:58] grants and donations.

[52:00] Um and that is a total of 1 3.17

[52:07] million which is 1.32 million greater

[52:10] than the approved budget

[52:13] and primarily the reason is um the two

[52:18] reasons um is the

[52:22] we did receive um we we've done a lot of

[52:26] work are we completed the work with at

[52:28] HNG

[52:30] Um, we should be are we um Sarah would

[52:35] know. Yeah.

[52:36] >> Yeah. I haven't had an update on that uh

[52:38] » Yeah. I haven't had an update on that uh

[52:38] in at least two weeks, but the last I

[52:41] heard the HVAC was still being finished.

[52:44] >> Okay.

[52:45] » Okay.

[52:45] So um the li since the library owns the

[52:50] HNG building behind central library the

[52:54] library applied directly to the state

[52:57] for the building forward grant. It's a

[52:59] capital grant. Um and in other cases

[53:03] where we re where we worked with the

[53:06] cities they applied the city applied

[53:09] directly for that grant because they're

[53:11] the owners. They own those buildings.

[53:14] But in this case, the library owns the

[53:15] H&G building and um and and it's a

[53:21] reimbursement. So as the library spends

[53:24] the funds, we can then draw down the the

[53:27] funding from on a reimbursement basis

[53:29] from this from the state. And so this

[53:32] year we received $900,000

[53:35] um from those grant funds.

[53:38] Um,

[53:40] and also,

[53:44] uh, interest earned on our pulled cash

[53:46] was $200,000 greater than anticipated as

[53:50] well. The markets are doing well. Um,

[53:53] and therefore, we're we're experiencing

[53:55] that. Also, we receive PEG funds from

[53:59] the city of Santa Rosa. Those are

[54:04] funds that um are received because of uh

[54:08] the city's relationship with um

[54:13] contracts and agreements and they're

[54:16] called right use of rights with Comcast

[54:20] for example. Um and so you can use these

[54:24] funds for

[54:27] education

[54:28] and um yeah educational reasons and the

[54:33] city has provided some of those funds to

[54:37] the library and the library uses them at

[54:41] um the libraries that are located within

[54:44] Santa City of Santa Rosa. They include

[54:47] um studios, recording studios, cameras.

[54:52] There's uh definitely one at Central and

[54:56] I just saw the one at at Rinkan Valley.

[54:59] Uh amazing resource. [snorts]

[55:02] Um so some of those funds came in in

[55:05] August, so we'll need to update our

[55:08] revenues, but um uh that is recorded in

[55:12] other revenue. Um

[55:17] and so what's all what else is in other

[55:19] revenue is a combination of donations

[55:22] um you know our photo copies

[55:25] um we do have a heavy use of photo

[55:28] copies um here at the library and people

[55:32] are using them because they get $5 a day

[55:36] plus they they spend more and I if you

[55:39] we've um the commission approved a rate

[55:42] increase And even at that rate, it's

[55:45] still

[55:47] a better rate than in, you know, FedEx

[55:50] or some Staples.

[55:52] Um, and we also do community room

[55:55] rentals and, uh, patrons pay the library

[56:00] for any damaged or lost materials.

[56:05] Any questions on revenue?

[56:10] about the whole report just the revenue

[56:13] piece.

[56:15] >> I had one about the that same uh row

[56:19] » I had one about the that same uh row

[56:19] with the interest income for September

[56:21] and February. It shows it as negative.

[56:24] How does that happen?

[56:25] >> Oh, it's a zero. It's it's zero. It's

[56:28] » Oh, it's a zero. It's it's zero. It's

[56:28] blank. Um interest is posted quarterly.

[56:31] So,

[56:33] the quarter ends at the end of

[56:36] September, so it's posted in October.

[56:39] >> Thank you. so on and so forth. Yeah.

[56:43] Okay. I'll move into the expenditures

[56:46] which is the latter half of this page.

[56:50] And again we have the budgeted uh

[56:54] expenditures here in the green. We have

[56:57] our unodudited yeartoate those. So this

[57:02] column here are actuals. what actually

[57:05] was spent and money out the door. We

[57:09] also have this column of encumbrances

[57:12] which is new this year. It is a way for

[57:16] further budget control and planning for

[57:20] the library.

[57:23] Um, Katherine was uh instrumental in

[57:27] working with the county to uh

[57:32] give us the the the authority to use the

[57:35] encumbrance module in our financial

[57:37] system.

[57:38] Um so I will tell you for example here

[57:43] um I would say

[57:46] so we know that in

[57:51] let's see we start with other contract

[57:54] services we've spent 79

[57:58] 791,000 approximately actuals plus we

[58:02] have encumbered or set aside

[58:06] $38,000

[58:09] for a to if when you add those two up

[58:11] you have 830,000.

[58:13] What does this encumbrance rep

[58:16] represent?

[58:17] are we may have contract. We when we

[58:20] receive a contract and let's say the

[58:22] contract is $100,000, but we know we're

[58:25] only going to we plan on spending that

[58:28] amount, but

[58:30] out of all the contracts that we have,

[58:33] we did not spend the full um the full

[58:38] amount on those contracts, but we know

[58:41] that we're on the hook for them. And the

[58:44] encumbrance allows us to roll that those

[58:48] funds over to the next fiscal year

[58:50] because we know we're going to pay from

[58:51] in those contracts.

[58:53] >> What's an example of that? When there's

[58:55] » What's an example of that? When there's

[58:55] a contract, you don't use it all,

[58:59] but then you have to use it.

[59:02] >> So I can give an example. So for

[59:04] » So I can give an example. So for

[59:04] example, we have this FFN contract with

[59:07] uh Jason Architecture for the new

[59:09] Rosland library. So we opened that

[59:12] contract in pre in the previous fiscal

[59:15] year but um you know one payment was

[59:18] made in 2526 but most of it is going to

[59:21] be made in 2627. So we encumber the

[59:25] total amount which is about $44,000

[59:28] in the previous fiscal year but we only

[59:30] spent say 12,000 that means we carry

[59:33] over the balance into the next fiscal

[59:35] year.

[59:40] Um okay. So and then we have other the

[59:45] other um large item here and I think I

[59:49] have that uh explained. Um so for

[59:53] example

[59:55] uh oh

[59:59] yeah

[1:00:01] those are those are also like a

[1:00:04] professional development um funds. the

[1:00:08] in the labor memorandum of understanding

[1:00:13] employees receive a certain amount of

[1:00:16] funds for their professional

[1:00:17] development. Um and if they don't use

[1:00:20] them in that fis that fiscal year they

[1:00:23] roll over. So they do accumulate

[1:00:26] um and we budget for them and um so if

[1:00:33] they're not used in this fiscal year uh

[1:00:36] we h we end up with a savings. So that's

[1:00:39] what's happening there. Um the

[1:00:44] so yeah I'm going down here but I wanted

[1:00:47] to also point out um under salaries and

[1:00:52] benefits we spent a total of 32.331

[1:00:57] million and that was um we did have a

[1:01:01] savings of $240,000

[1:01:04] there over here. Um

[1:01:11] this in so the commission the all the

[1:01:16] negotiations

[1:01:18] did were were completed late in the

[1:01:22] fiscal year and so the

[1:01:26] commission adopted the newou in August

[1:01:30] but it was retroactive to January. So

[1:01:34] all of those costs were paid out in this

[1:01:37] fiscal year. So they were recorded in

[1:01:39] this fiscal year. Um and um but as you

[1:01:44] can see, I think a $240,000 is a modest

[1:01:48] savings. Um but it it it um we did in

[1:01:52] the midyear re request an increase in

[1:01:56] those costs um to reflect um those C

[1:02:01] cola uh increases.

[1:02:05] Okay.

[1:02:08] Any questions so far?

[1:02:12] I'd like to just take you back for a

[1:02:14] quick thing. You're you're talking about

[1:02:15] the county. Um again, the old under the

[1:02:18] old arrangement the county we were

[1:02:20] connect the library is connected to the

[1:02:22] county. So when when Merida talks about

[1:02:25] what the work the county does for us

[1:02:26] now, they are like hired to do. Do we

[1:02:30] call it fiscal or fiscal agent?

[1:02:33] >> No, they're

[1:02:35] » No, they're

[1:02:35] they they're just they just provide

[1:02:38] accounting services.

[1:02:39] >> Accounting service. So we're paying them

[1:02:41] » Accounting service. So we're paying them

[1:02:41] as though we would pay, you know,

[1:02:43] >> a consultant,

[1:02:43] » a consultant,

[1:02:44] >> somebody else,

[1:02:45] » somebody else,

[1:02:45] >> but but they're, you know, not working.

[1:02:48] » but but they're, you know, not working.

[1:02:48] We're not, you know, part of that. you

[1:02:50] know, still we're separated from the

[1:02:51] county and I don't know.

[1:02:53] >> Yeah. So the county

[1:02:56] » Yeah. So the county

[1:02:56] uh in the auditor controllers treasurer

[1:03:00] tax collector's office headed by uh Eric

[1:03:04] Roger, they have a team that provides

[1:03:09] accounting services to special districts

[1:03:14] because at some point in their his in

[1:03:17] the history of the county there there

[1:03:19] are spe there are districts that are

[1:03:22] much smaller than we are uh much more

[1:03:25] focus narrow in their focus and uh you

[1:03:29] know it with um the expertise within the

[1:03:34] the audit auditor controllers's office

[1:03:39] you have expertise but you have

[1:03:40] economies of scale. So, this one team

[1:03:43] that we work with, they serve several

[1:03:47] special districts and um and so we they

[1:03:53] they have an agreement with the library

[1:03:56] and and the auditor controller office.

[1:03:59] >> And uh we if we were to hire that that

[1:04:04] » And uh we if we were to hire that that

[1:04:04] team, it would be probably triple or

[1:04:07] quadruple the cost for us. Um and they

[1:04:11] are they have a lot of institutional

[1:04:14] knowledge of um

[1:04:18] the county policies and procedures. They

[1:04:21] help us prepare for our audit

[1:04:24] um and throughout the year with our

[1:04:26] financials. So it is a uh quite a bit of

[1:04:30] a a great investment um that is very

[1:04:34] much a factor in

[1:04:38] um the results of our audits and the

[1:04:41] results of this AAA plus um

[1:04:46] uh rating that we received.

[1:04:50] So we are we are separate but we we it's

[1:04:53] a it's a it's a it's a contractual uh

[1:04:56] arrangement

[1:04:58] >> for which we pay them. Yeah.

[1:05:00] » for which we pay them. Yeah.

[1:05:00] >> Yes we do.

[1:05:02] » Yes we do.

[1:05:02] >> Um and separately we pay the county for

[1:05:05] » Um and separately we pay the county for

[1:05:06] using their system. So for every invoice

[1:05:09] they charge us for every invoice

[1:05:10] transaction that we enter we get

[1:05:13] charged.

[1:05:15] Um okay so where am I?

[1:05:19] Okay.

[1:05:21] >> Oh yeah, I asked for questions.

[1:05:25] » Oh yeah, I asked for questions.

[1:05:25] Capital. Okay.

[1:05:29] >> Um,

[1:05:30] » Um,

[1:05:30] and capital

[1:05:33] the total inc uh expenditures including

[1:05:37] incumbrances is 5.19

[1:05:42] million. So we've spent 3.15 million. We

[1:05:48] have encumbered two two million and we

[1:05:53] uh for a total of

[1:05:55] 5.19

[1:05:57] million. Uh we do exceed the that the

[1:06:03] budget by 279,000

[1:06:06] and this reflects this and it's driven

[1:06:08] by these encumbrances.

[1:06:12] uh we encumbered we did make a payment.

[1:06:17] So here's another uh building forward

[1:06:19] grant with the city of Ronert Park. City

[1:06:23] of Roner Park applied directly to the

[1:06:25] state for the grant. Um and in and we

[1:06:30] have an agreement the library has an

[1:06:32] agreement with them that whatever

[1:06:36] the there there's a match that's owed

[1:06:38] and the library and the city split it

[1:06:42] 5050 you know 50% the library

[1:06:45] contributes to the match city

[1:06:47] contributes the other 50 and we were

[1:06:51] invoiced 21 our total was 419

[1:06:56] 19,000

[1:06:58] and they invoiced us for 29,000.

[1:07:02] And so we still owe another 210,000.

[1:07:05] When they uh finish the work, they will

[1:07:08] invoice us, but that is encumbered

[1:07:11] because we know we owe it. Um and then

[1:07:15] also

[1:07:17] the architecture work for the for the

[1:07:24] new Rosland library as director to bolt

[1:07:27] mentioned um that work has not been

[1:07:30] completed. So we also have about 44,000

[1:07:35] that is still pending of work. And so

[1:07:38] those are that's what's contributing um

[1:07:41] the

[1:07:43] budget versus actuals when it comes to

[1:07:46] our capital.

[1:07:49] The encumbrances though are reflecting a

[1:07:52] lot of the work at Ricon Valley. Um the

[1:07:56] work started last fiscal year. We were

[1:07:59] original plan was to finish within June

[1:08:01] 30th but as you know uh with the grand

[1:08:05] opening today the work completed in this

[1:08:07] new fiscal year.

[1:08:10] Okay.

[1:08:12] Um all right so that is the summary you

[1:08:17] do have through pages um I don't have

[1:08:21] what these pages are uh

[1:08:26] in the packet they're attachments five

[1:08:30] through um 19

[1:08:34] are greater detail

[1:08:37] uh by account. So you can see how much

[1:08:41] we spent on office supplies, how much

[1:08:44] we've spent on janitorial,

[1:08:47] so on and so forth. You have two sets,

[1:08:50] one for property tax and one for sales

[1:08:52] tax because they are in two separate

[1:08:56] funds. And that's what I mean by funds.

[1:08:58] And when I said that for the um bond

[1:09:04] proceeds, we're going we're creating

[1:09:06] even a another fund where we'll track

[1:09:08] those. So it government

[1:09:12] accounting is fund accounting and we

[1:09:15] have to a lot of cases we need to

[1:09:17] separate the different um sources of

[1:09:21] revenues in a separate fund.

[1:09:24] That's why you see the two set sets of

[1:09:29] detailed spreadsheets.

[1:09:32] Um

[1:09:34] so we in this case we uh also report on

[1:09:39] a monthly basis the cash balance as you

[1:09:43] can see the cash balance as of June 30th

[1:09:46] uh under property tax is 21.8 8 million

[1:09:50] and sales tax is 12.3 million. And um so

[1:09:55] as you can see here,

[1:09:58] every organization has a cycle, a

[1:10:01] revenue cycle. And for property tax,

[1:10:06] the it it peaks at in December 23

[1:10:10] million and then in April 25 million and

[1:10:16] that co that coincides with the property

[1:10:20] tax bills.

[1:10:22] And then for sales tax is pretty evenly

[1:10:25] distributed because we do receive a

[1:10:27] monthly receipt except for July and

[1:10:31] August.

[1:10:33] Uh we do have what we call restricted

[1:10:36] funds which are donations and bequests.

[1:10:40] When when a

[1:10:43] when someone leaves the library a

[1:10:46] bequest, they may restrict it to a

[1:10:50] specific branch.

[1:10:53] Um, and donations with uh friends and

[1:10:56] friends of the library or the

[1:10:58] foundation, they do the same. Um, so

[1:11:02] that's why we call it restricted.

[1:11:05] Um, okay. So, next is our fund balance.

[1:11:10] And as Chair McKenzie mentioned is that

[1:11:15] um we do not have that statement in this

[1:11:19] uh packet because we are still working

[1:11:22] through budget adjustments, closing our

[1:11:25] uh projects. So that um all of those

[1:11:30] figures uh have a an effect on the fund

[1:11:33] balance on reducing if we used so if

[1:11:38] anything that was assigned and we reduce

[1:11:40] we used it we make those adjustments so

[1:11:43] that we can then have a final unassigned

[1:11:47] uh figure.

[1:11:50] Um if you're interested, you can go back

[1:11:53] to prior months um that you've received

[1:11:56] and look at that fund balance statement

[1:11:59] and maybe you know you'll have some

[1:12:02] questions for our next meeting.

[1:12:06] Um okay.

[1:12:13] Wow. Yeah.

[1:12:15] The next um

[1:12:18] report that you see is uh voucher

[1:12:22] payments over $50,000. At some point um

[1:12:27] the commission wanted to receive a

[1:12:30] report of any any bill any any payment

[1:12:33] that was over $50,000. So this is this

[1:12:36] history.

[1:12:39] Any questions so far? Okay. Not a

[1:12:43] surprise. We've seen all

[1:12:46] the uh the next um report is other

[1:12:51] contract services. that is a an account

[1:12:55] that you see on your detailed sheets and

[1:13:01] um

[1:13:03] and and because it includes a variety of

[1:13:07] of of vendors, uh the commission had in

[1:13:11] some time in its history requested to

[1:13:14] see a list of vendors that are

[1:13:18] recorded in this account. And so there

[1:13:21] you are. Any

[1:13:24] questions on this?

[1:13:26] >> Well, things like this list of vendors,

[1:13:30] » Well, things like this list of vendors,

[1:13:30] is there a reason for us to have to know

[1:13:33] this or is it more or less a team that

[1:13:37] wind up being nothing we need to really

[1:13:40] know?

[1:13:41] >> There's a couple of reports in here. I

[1:13:43] » There's a couple of reports in here. I

[1:13:43] was going to go through these one by one

[1:13:44] but to answer that specific question uh

[1:13:47] in the in prior times when there were so

[1:13:49] many so much turnover and changes in CFO

[1:13:53] and this and that and the other thing

[1:13:54] there were some people who had concerns

[1:13:57] about certain stuff and one of them as

[1:13:59] you mentioned was this voucher we want

[1:14:01] to see these bigger payments so that's

[1:14:03] what that report is on this this could

[1:14:06] be a recommendation out of our committee

[1:14:08] if we wanted to I don't know if we

[1:14:10] should talk to the management see if

[1:14:12] they want keep the bonus. But that

[1:14:14] that's where that came from. And

[1:14:15] certainly this other contract services,

[1:14:17] it was a big concern about I think legal

[1:14:20] services or something at the time. And

[1:14:22] it's kind of well, we want to see what

[1:14:23] what else you're contracting with. So

[1:14:25] these were came out of some uh feelings

[1:14:28] that prior commissioners had about what

[1:14:31] was going on. I don't think we have

[1:14:33] those same kind of concerns now. I mean,

[1:14:35] you bring up a good point. So whether um

[1:14:38] we want to continue to ask these be

[1:14:43] prepared, you know, is something that we

[1:14:46] should discuss when we're at full

[1:14:47] strength and have to look at stuff. I

[1:14:50] was going to kind of go through all of

[1:14:51] these because from a commissioner

[1:14:53] standpoint, there's certain things that

[1:14:54] we should that we focus on that'll make

[1:14:56] your life a little easier. I don't want

[1:14:58] you to think that, you know, be

[1:15:00] discouraged by this because, you know,

[1:15:02] it's a lot of stuff and, you know, we

[1:15:05] look at things differently on the

[1:15:07] quarter and we look at things different

[1:15:09] at the end of the year, but on a monthly

[1:15:11] basis, we're looking at a more

[1:15:13] streamlined

[1:15:15] uh, you know, outlook. And I really

[1:15:18] appreciate Merida's efforts to, you

[1:15:20] know, walk us through this kind of

[1:15:21] detail, but you're hitting deep detail

[1:15:23] today that you won't necessarily have,

[1:15:26] you know, every month to to look up.

[1:15:28] >> Yeah. And I can um answer part of the

[1:15:31] » Yeah. And I can um answer part of the

[1:15:31] question. So, you know, there are

[1:15:33] certain, you know, we have certain line

[1:15:34] items in each of our department budgets

[1:15:37] and I think we we can't provide um a

[1:15:40] level of detail because some of the um

[1:15:44] some of the items are kind of very broad

[1:15:46] in general and so other contract

[1:15:48] services that appears in all of the

[1:15:50] departments and I think there was a like

[1:15:52] commissioner McKenzie said that there

[1:15:54] was a concern that things were being

[1:15:57] kind of hidden in that uh and so this is

[1:16:00] what was the result of that. So, just to

[1:16:03] see and if you ever have any questions

[1:16:05] about, you know, what these are for, you

[1:16:08] know, we can certainly answer them. Um,

[1:16:10] but it does comprise a variety of

[1:16:12] different, it's mostly professional

[1:16:13] services. So, you know, we hire a

[1:16:16] strategic planner that goes in other

[1:16:17] contract services. We hire an executive

[1:16:20] coach that goes in other contract

[1:16:21] services. our translation with Barbie.

[1:16:24] Um some of our um our other uh you know

[1:16:28] HR our fingerprinting goes in other

[1:16:30] contract services. So it's kind of a

[1:16:32] catchall place where these professional

[1:16:34] services that we contract out for uh

[1:16:37] exist.

[1:16:40] » I I would like to add that it's not

[1:16:42] unusual. It is a common practice in or

[1:16:45] in uh reporting out in in transparency

[1:16:48] and communication

[1:16:50] uh with uh the governing board. So it's

[1:16:55] not unusual this have this level of

[1:16:58] detail.

[1:17:00] >> Well, that's good to know. It's always

[1:17:01] » Well, that's good to know. It's always

[1:17:01] better to have it. You know, you don't

[1:17:04] have to look at it, but you have it. And

[1:17:05] you I appreciate your point of is it

[1:17:08] extra work, but it is like set up. No,

[1:17:10] >> right. I mean those are no it's it's a

[1:17:12] » right. I mean those are no it's it's a

[1:17:12] good practice I would say

[1:17:18] okay

[1:17:20] um

[1:17:25] if you do you have any qu did um chair

[1:17:29] McKenzie did you want to go over any

[1:17:30] other specifics because I'm towards the

[1:17:33] end that I was going to wrap up but if

[1:17:35] you had any other questions on other

[1:17:37] reports go over that I don't have any

[1:17:40] more questions questions. Do any of you

[1:17:42] any either excuse me

[1:17:47] have any questions about um I would say

[1:17:51] it's the first four pages of our

[1:17:57] after that

[1:18:08] Step out.

[1:18:12] » We can just take a pause.

[1:18:27] Unless Eve or Kimberly, you have a

[1:18:29] question just about, you know, the forms

[1:18:32] in general.

[1:18:34] No, I you know I was looking in the

[1:18:37] wrong place and I got a little lost on

[1:18:39] this page, but I'm just going to look at

[1:18:41] it and think about it after the meeting.

[1:18:43] If I still have a question, I'll call

[1:18:48] you

[1:18:49] >> and it it takes time to

[1:18:51] » and it it takes time to

[1:18:51] >> it takes time to to get to know all

[1:18:54] » it takes time to to get to know all

[1:18:54] these

[1:18:55] >> also.

[1:18:56] » also.

[1:18:56] I was following for a little while.

[1:19:04] » I'm sorry. I sw something went down

[1:19:06] wrong. And

[1:19:08] >> anyway, where are we?

[1:19:13] » We're wrapping it up.

[1:19:14] >> Wrapping it up.

[1:19:17] » Wrapping it up.

[1:19:17] So anyway, let me go back to the top

[1:19:20] page here, the summary. So you're going

[1:19:24] to see that once a year. This is the

[1:19:26] year in sum. Next month you'll see that

[1:19:30] month's information.

[1:19:32] One of the things that I found helpful

[1:19:34] in the last while is the percentages.

[1:19:39] A way to kind of guide to for your own

[1:19:42] benefit like where we are in our

[1:19:44] expenditures

[1:19:46] and if it's the first month that would

[1:19:48] be is it 12%.

[1:19:51] No, that's not

[1:19:54] 112

[1:19:55] >> 112.

[1:20:00] » It's what?

[1:20:05] » But as we go along, it's kind of an easy

[1:20:06] way you can check and monitor. And

[1:20:08] again, we're in just so much better

[1:20:10] shape. [clears throat] It's so much more

[1:20:13] clear where we are. But that'll you'll

[1:20:16] see that next month.

[1:20:17] >> Yeah. So then a whole in the summary

[1:20:20] » Yeah. So then a whole in the summary

[1:20:20] cover page. salaries and benefits. You

[1:20:23] look at total effective budget, we spent

[1:20:26] 93 993%

[1:20:29] of the budget,

[1:20:31] >> which is pretty darn good budgeting.

[1:20:33] » which is pretty darn good budgeting.

[1:20:33] >> So on and so.

[1:20:35] » So on and so.

[1:20:35] >> Yeah.

[1:20:36] » Yeah.

[1:20:36] And again, next month you're going to

[1:20:38] see one month's worth.

[1:20:40] Um, but it's also September, so it's a

[1:20:43] quarter. So we are going to have all

[1:20:44] these reports.

[1:20:45] >> September quarterly. You'll see in

[1:20:47] » September quarterly. You'll see in

[1:20:47] October.

[1:20:48] >> Oh, okay. I'll get October.

[1:20:50] » Oh, okay. I'll get October.

[1:20:50] The second page, the cash balance

[1:20:52] summary. The most interesting thing on

[1:20:54] this to me is that uh this has all these

[1:20:58] details of these individual bequests.

[1:21:00] This has all been cleaned up enormously

[1:21:03] by our wonderful staff who this used to

[1:21:07] be a kind of big mush mish mash and this

[1:21:10] has all um been identified by the

[1:21:13] individual donors and so forth. Um the

[1:21:16] voucher thing again what I always look

[1:21:19] at is just that top month the latest one

[1:21:23] you've got the whole year but you know

[1:21:24] the top one is what you want to look at

[1:21:26] so you don't have to spend you know a

[1:21:29] lot of time on that report the contract

[1:21:31] services are is you know interesting

[1:21:33] again to just to keep an eye on things

[1:21:35] and then you get into these details it's

[1:21:37] for us to have but we don't spend a lot

[1:21:39] of time in the finance committee going

[1:21:41] over any of that except if anybody has

[1:21:43] any questions. So anyway, I don't want

[1:21:46] you to feel, you know, bogged down in in

[1:21:50] reporting when we come here. Um,

[1:21:53] I think that's all I was going to say

[1:21:57] about that.

[1:22:02] This this final uh page here, I don't

[1:22:04] know what this my pages aren't numbered,

[1:22:06] so I'm not sure what to call this. The

[1:22:08] allocation of actual expenditures.

[1:22:10] >> Yeah. So this report I like to show have

[1:22:15] » Yeah. So this report I like to show have

[1:22:15] a policy

[1:22:16] of

[1:22:20] we we have a policy

[1:22:24] allocation of major revenues where um

[1:22:29] it provides guidance to staff on how to

[1:22:34] I primarily use it for uh formulating

[1:22:38] the budget And um and so we know how

[1:22:43] what percentage uh what percentage of

[1:22:45] the expenditures

[1:22:47] are allocated to

[1:22:51] property tax and to sales tax and um and

[1:22:55] so at the end of the or on a quarterly

[1:22:58] basis but

[1:23:00] uh here and year end um if you look at

[1:23:05] the actual expenditures okay and I do

[1:23:08] say does not include the incumbrance but

[1:23:10] just actuals what has been out the door.

[1:23:13] Um

[1:23:15] we know through the

[1:23:18] the policy that expenditures

[1:23:22] capital expenditures are allocated 10%

[1:23:26] to property tax and 90% to sales tax. So

[1:23:31] basically this chart is a summary of uh

[1:23:34] how much was spent in property tax, how

[1:23:38] much was spent in sales tax and then

[1:23:41] gives you the the split and it should

[1:23:44] match the budget on how the budget was

[1:23:48] adopted. Um

[1:23:51] so we have uh the first two charts uh

[1:23:54] show the serviceoriented divisions. Uh

[1:23:57] we the policy states that um capital is

[1:24:02] 10% to property tax, 90% to sales tax.

[1:24:06] It uh it pro gives us a range on

[1:24:09] salaries, services and other charges. So

[1:24:13] when the budget was adopted, the

[1:24:15] percentage to property tax was 62% and

[1:24:19] 38% to sales tax.

[1:24:23] Under administration divisions, the

[1:24:26] policy is a little is more strict. Um,

[1:24:29] it states that the property tax pays 90%

[1:24:33] of those expenditures and sales tax pays

[1:24:36] 10% of those expenditures.

[1:24:38] But when we add them all up, the the uh

[1:24:42] all the divisions together is the LA is

[1:24:44] the third col um chart. And um and then

[1:24:49] I give you it essentially all blended

[1:24:52] together. The property tax has picked up

[1:24:54] 62% of expenditures and sales tax 38%.

[1:25:01] » This was a real important, you know,

[1:25:03] kind of bottom line thing like in terms

[1:25:05] of our funding, right? It's really nice

[1:25:07] to see that 6238 because sometimes we'd

[1:25:10] say two 2/3 one whatever. I mean, this

[1:25:13] is a real number and I'd like to add a

[1:25:15] tiny bit of background here. Before

[1:25:18] Measure Y was passed, it was all

[1:25:20] property tax. When Measure Y was passed,

[1:25:22] it was passed with an expenditure plan.

[1:25:25] So, the public was told, "This is what

[1:25:27] we're going to spend your money on." And

[1:25:29] it wasn't to take away uh some book

[1:25:34] budget to spend it for something else

[1:25:35] and then supplement it with measure Y.

[1:25:37] It was supposed to be an additional

[1:25:39] amount. And so for several years we went

[1:25:42] through this kind of a very hazy period

[1:25:44] where it really wasn't clear the

[1:25:47] allocation of the pro of the measure Y

[1:25:49] money and again going through several

[1:25:51] CFOs was very blurry whatever and then

[1:25:55] America came along and understood that

[1:25:57] we really had to have a policy a written

[1:25:59] policy what percent well how the heck do

[1:26:01] you figure that out but she came up with

[1:26:03] this rather brilliant plan of looking

[1:26:06] back and seeing what it had

[1:26:08] traditionally been and now it's a set

[1:26:11] formula. It isn't exactly to the penny,

[1:26:14] but the 9010 is is exact. And so we're

[1:26:18] never going to spend more of our um the

[1:26:22] measure Y money is going to be spent on

[1:26:24] buildings, for example. Um and the and

[1:26:26] the 10% will come from property tax, but

[1:26:29] 90% is going to come from measure one so

[1:26:31] this is incredibly valuable tool to have

[1:26:34] that is in place. what it's been three

[1:26:35] or four years or so since you came up

[1:26:37] with this. And um how long has it been

[1:26:42] five?

[1:26:42] >> It'll be five in know uh let's see I

[1:26:45] » It'll be five in know uh let's see I

[1:26:45] started in November of 21 and then I

[1:26:47] think it was adopted in January or

[1:26:49] February. So yeah up we're coming up to

[1:26:51] five years. Fantastic.

[1:26:54] >> I started in June 2021. So I just had my

[1:26:58] » I started in June 2021. So I just had my

[1:26:58] fiveyear anniversary.

[1:26:59] >> Oh bra.

[1:27:00] » Oh bra.

[1:27:00] >> I'm vested now.

[1:27:02] » I'm vested now.

[1:27:02] >> Wow. Cool. That's great. So the um the

[1:27:06] » Wow. Cool. That's great. So the um the

[1:27:06] measure Y oversight committee the

[1:27:09] citizens oversight committee is meets

[1:27:11] this Thursday and so I will be

[1:27:14] presenting the same information and this

[1:27:17] that's where this chart is particularly

[1:27:20] of interest to that committee.

[1:27:22] >> Yes. And it wasn't clear and I used to

[1:27:25] » Yes. And it wasn't clear and I used to

[1:27:25] talk about this because I was really

[1:27:26] worried the grand jury would come in and

[1:27:29] do an investigation. No one could

[1:27:31] understand what I was saying or would

[1:27:33] listen to what I was saying about this.

[1:27:34] And so it was finally, you know,

[1:27:36] Meredith who really got what I was

[1:27:38] talking about and and Judy Glenn on the

[1:27:41] Measure Y committee used to say the same

[1:27:43] thing too. Well, wait a minute. This,

[1:27:44] you know, whatever. So anyway, feel

[1:27:48] secure that we have a formula and it

[1:27:50] really works and it's justifiable and it

[1:27:53] makes sense and the expenditure measure

[1:27:55] Y money is very clear now. Another

[1:28:01] piece that um that this committee we

[1:28:06] that staff reports to and this committee

[1:28:09] are updates on policies and procedures.

[1:28:12] And um

[1:28:16] we we normally like to report this like

[1:28:18] in February or March, but uh here's a

[1:28:22] summary that you know the budget and

[1:28:26] financial services team has completed

[1:28:28] the following more than this but these

[1:28:32] are the highlights. Uh updated the

[1:28:34] grants management process. Uh supported

[1:28:38] the update to the gifts and donations

[1:28:40] policy. Um, we've implemented the

[1:28:44] incumbrance module in EFS, which is our

[1:28:47] financial system to support greater

[1:28:50] budget controls. We prepared an

[1:28:52] additional analysis for the additional

[1:28:55] discretionary payments to pay down the

[1:28:57] pension unfunded acred liability. Um, we

[1:29:01] will be making our first payment uh by

[1:29:04] December of this fiscal year. Uh BAPS

[1:29:08] has also had a key role in uh prep

[1:29:11] preparing for the financing and the

[1:29:14] purchase of the uh operations

[1:29:18] uh center building

[1:29:20] and um in September we we uh plan to

[1:29:24] share with you an update on the

[1:29:27] purchasing policy. Um it's been in good

[1:29:31] it's been needed to make some updates on

[1:29:34] that and uh we'd like you to provide you

[1:29:37] some information also on bequest. Um so

[1:29:41] that that concludes my report today and

[1:29:46] unless you have any more questions.

[1:29:51] » So when I was uh coughing did I miss

[1:29:54] Katherine's appropriation transfer? No,

[1:29:58] we haven't on there yet.

[1:29:59] >> Okay.

[1:30:00] » Okay.

[1:30:00] >> Nothing to report.

[1:30:01] » Nothing to report.

[1:30:01] >> I know, but it's on the agenda, so you

[1:30:04] » I know, but it's on the agenda, so you

[1:30:04] can report that we have nothing to

[1:30:05] report.

[1:30:07] >> So, that's the next item on the agenda.

[1:30:10] » So, that's the next item on the agenda.

[1:30:10] Um,

[1:30:13] >> I thought you had jumped to the

[1:30:14] » I thought you had jumped to the

[1:30:14] workflow. That's why I was asking.

[1:30:16] >> No, we haven't.

[1:30:19] » That is correct. We had no appropriation

[1:30:22] transfers this past quarter. Um to give

[1:30:25] you some background, we have an

[1:30:27] appropriation transfer policy and it's

[1:30:30] to allow um within the director's

[1:30:35] delegation authority to move within

[1:30:37] budget small items. Um so say

[1:30:42] um when you look at the budget, I I made

[1:30:44] a budget that I was going to spend

[1:30:46] 10,000 in other contracts, but maybe I

[1:30:50] throughout the fiscal year I end up

[1:30:52] using it somewhere else. allowed to move

[1:30:54] that like I said as long as it's within

[1:30:56] the director's delegation of authority

[1:30:59] and then we report it quarterly all of

[1:31:01] those sources.

[1:31:03] >> Yeah, I can give you an example of that.

[1:31:05] » Yeah, I can give you an example of that.

[1:31:05] Like so we have our other contract

[1:31:07] services and then we have another line

[1:31:10] item that's very similar to that and I

[1:31:11] forget outside consulting. And so my

[1:31:14] contract for the strategic plan, for

[1:31:16] some reason, all of the money was

[1:31:18] encumbered in other contract services

[1:31:21] and it was a little over. So I took some

[1:31:23] of the money from outside consulting and

[1:31:27] I put that into um outside or other

[1:31:30] contract services just so that you know

[1:31:32] I was still staying within my budget.

[1:31:37] Um so just a little bit of background on

[1:31:40] that is

[1:31:43] that those level of tr of of

[1:31:47] transactions as small as it might be

[1:31:49] $5,000 and you know from training into

[1:31:52] office supplies

[1:31:54] um that authority lies with the

[1:32:00] governing board.

[1:32:02] Uh so when we we couldn't make those

[1:32:06] those those uh transfers

[1:32:09] um and

[1:32:11] it happens quite a bit three four times

[1:32:14] in a quarter and uh and we would have to

[1:32:18] come to so I would put everything on

[1:32:20] hold until mid year and then have these

[1:32:24] small amounts uh transferred uh at the

[1:32:27] midyear report um uh point but Um

[1:32:33] uh in talking to the county, the best

[1:32:36] practice is well if you have a policy

[1:32:38] where the governing board then delegates

[1:32:41] that authority to staff the director or

[1:32:45] and the CFO in this case in this in this

[1:32:47] policy then it sets a a process for um

[1:32:53] the library to make these routine um uh

[1:32:57] transactions and uh and then for

[1:33:00] transparency purposes provide this

[1:33:03] committee and the commission a report of

[1:33:06] how monies were moved around in the

[1:33:08] budget. That policy does give us

[1:33:11] restrictions. There are restrictions. So

[1:33:14] we cannot we won't be able to move funds

[1:33:17] from you know uh the new fund where

[1:33:21] we're tracking the proceeds into

[1:33:23] property tax that we will have to still

[1:33:27] get authority and and the commission

[1:33:30] will have to approve that.

[1:33:32] >> So for our gifts and donations so we

[1:33:34] » So for our gifts and donations so we

[1:33:34] cannot move money out of any of our um

[1:33:37] restricted funds our our bequests um I

[1:33:41] cannot do that only the commission can

[1:33:42] do that. So that was one of the um

[1:33:45] exemptions

[1:33:49] » all about transparency.

[1:33:51] >> Yeah.

[1:33:53] » Yeah.

[1:33:53] >> Okay.

[1:33:53] » Okay.

[1:33:53] >> Oh, and controls.

[1:33:55] » Oh, and controls.

[1:33:55] >> What?

[1:33:56] » What?

[1:33:56] >> Controls.

[1:33:58] » Controls.

[1:33:58] >> Those are key.

[1:34:00] » Those are key.

[1:34:00] >> Okay. So, uh any questions about the

[1:34:03] » Okay. So, uh any questions about the

[1:34:03] appropriations, transfers,

[1:34:06] um and then we have a workflow that our

[1:34:10] CFO put together for us a few years ago.

[1:34:12] It was so kind of help people.

[1:34:15] >> The only thing I noticed when I looked

[1:34:16] » The only thing I noticed when I looked

[1:34:16] at this one is that we used to have uh

[1:34:19] when the finance committee would see it

[1:34:20] and then when the commission would see

[1:34:22] it. Did you did you take the commission

[1:34:24] part off that for a reason?

[1:34:27] I think so. I think I received feedback

[1:34:30] to simplify the chart.

[1:34:34] Um but normally the fi the normally what

[1:34:38] happens is the month that you see here

[1:34:41] right the finance committee sees it in

[1:34:43] August the commission normally sees it

[1:34:46] the following month unless this finance

[1:34:49] committee says no we need more work

[1:34:51] bring it back to the finance committee

[1:34:53] but it will not advance any item will

[1:34:55] not advance unless this committee has a

[1:34:58] consensus to recommend it to the full

[1:35:01] commission.

[1:35:04] Well, if it's not a problem, we can, you

[1:35:06] know, we'll leave this new version. I

[1:35:10] did want to say that I was thrilled to

[1:35:12] see in February the five-year forecast.

[1:35:16] >> We've been talking about that for so

[1:35:18] » We've been talking about that for so

[1:35:18] long and and I noticed it was referenced

[1:35:20] in that AMN report that we had the

[1:35:22] five-year help forecast really helped

[1:35:24] with that.

[1:35:25] >> Yes. though um the commi the I did

[1:35:29] » Yes. though um the commi the I did

[1:35:29] provide a forecast to the commission

[1:35:32] over um leading up to the decision of

[1:35:37] the acquisition. That was the biggest

[1:35:39] impetus for that. Yeah,

[1:35:41] >> we did have a a forecast prior to that,

[1:35:45] » we did have a a forecast prior to that,

[1:35:45] but it had not been updated and it was

[1:35:49] it was just a good timing to update that

[1:35:52] force cast given the the the decision

[1:35:55] before the commission.

[1:35:56] >> Yeah.

[1:35:57] » Yeah.

[1:35:57] >> Um so I do have it here to program it to

[1:36:01] » Um so I do have it here to program it to

[1:36:01] to update it annually.

[1:36:04] And the other thing I was really happy

[1:36:06] to see was the the draft policy for

[1:36:09] allocation appropriation of fiscal

[1:36:11] surplus.

[1:36:12] So I won't go into that today, but you

[1:36:15] know, in the past we wondered about what

[1:36:17] the policy was when we have, you know,

[1:36:21] these funds, these they're one-time

[1:36:23] funds and they're the unassigned fund

[1:36:26] balance funds, right? And so what do we

[1:36:28] do with that money? We've never had a

[1:36:30] policy about it. it's been um somewhat

[1:36:33] you know kind of reactive to the

[1:36:35] circumstances and what we've needed for

[1:36:37] and then there you know the fixing up of

[1:36:39] the different libraries and so forth

[1:36:40] there hasn't been a real clear policy

[1:36:42] about so anyway I'm great that you're I

[1:36:46] know you have mentioned that Erica in

[1:36:47] the past why why we needed a policy so

[1:36:50] I'm glad that's going to be before the

[1:36:52] committee in November so

[1:36:55] any questions I know it's can be kind of

[1:36:57] overwhelming all the the information

[1:37:00] today But u I really appreciate uh MNA's

[1:37:04] efforts to give you the full picture

[1:37:08] which she did very well and Erica's

[1:37:10] comments on the

[1:37:13] a lot of the specifics any um thing that

[1:37:17] you would like to know more about or

[1:37:20] is it time to digest?

[1:37:25] Well, my two questions I guess are ones

[1:37:28] that are going to be answered later in

[1:37:30] the year. I just thought also it's

[1:37:33] important to for me at least to get a

[1:37:35] handle on the different kinds of funds

[1:37:39] once this season fund balance I kind of

[1:37:44] understand that when there's a big

[1:37:46] surplus take from it when you need to

[1:37:48] take from it as things come up and then

[1:37:50] eventually there isn't the big surplus

[1:37:52] and then what happens then how do we do

[1:37:54] planning for that. And then my other

[1:37:57] question I guess that's it's not a

[1:37:59] question exactly just a concern is so it

[1:38:04] seems like costs for most things keep

[1:38:08] going up whether it's for

[1:38:11] FFN stuff whether it's for um labor

[1:38:15] costs

[1:38:17] well what happens over time since that

[1:38:20] seems to be a trend if our income either

[1:38:24] stays flat or goes down.

[1:38:27] What happens then? Is that part of the

[1:38:30] surplus that goes in there? And I I

[1:38:33] don't you know long-term planning kind

[1:38:35] of or not longterm midterm. How does it

[1:38:38] look? What happens?

[1:38:41] >> Well, that would be part of the

[1:38:42] » Well, that would be part of the

[1:38:42] forecast.

[1:38:43] >> Yes.

[1:38:46] » Yes.

[1:38:46] >> You'll also see the reserves on the fun.

[1:38:49] » You'll also see the reserves on the fun.

[1:38:49] See the fund balance activity report.

[1:38:52] See those reserves. We have in fund

[1:38:53] balance policy. We have policy about re

[1:38:56] rainy day funds and what's the other one

[1:38:57] anyway you know there's there's a lot of

[1:39:01] builtin support to those kind of

[1:39:03] questions about lesser lesser income but

[1:39:06] um I'm really glad that we'll have this

[1:39:08] policy to plan just what we're talking

[1:39:11] about that's what we got that money

[1:39:18] you know policy way so um again

[1:39:24] starting off um asking very good

[1:39:26] questions and you know there's a pretty

[1:39:28] steep learning curve about all of it I

[1:39:30] found and um but you're asking

[1:39:35] >> yeah and you know when we do ourou

[1:39:37] » yeah and you know when we do ourou

[1:39:37] negotiations we do actually look at um

[1:39:41] you know our projected revenue increases

[1:39:45] and what we can what we think we can

[1:39:47] afford in terms of cost of living

[1:39:49] adjustments. So um you know we our

[1:39:52] contract ends in 2027. It feels like we

[1:39:55] just finished it. Um but we will be

[1:39:57] doing that analysis again you know um

[1:40:00] this time next year. Um we will be

[1:40:02] looking at our revenues as well as you

[1:40:05] know MNA is always talking to the county

[1:40:07] about their projections as well and then

[1:40:10] coming up with um you know colas that we

[1:40:12] think we can reasonably afford and not

[1:40:15] you know not promising more than um we

[1:40:18] think we can deliver.

[1:40:23] But then some of our building projects,

[1:40:25] you know, we've we've reduced scope um

[1:40:28] so that we have stayed within budget for

[1:40:30] our building project. So there we have a

[1:40:33] variety of different tools we can use to

[1:40:35] make sure that we're kind of staying

[1:40:36] within budget. Um and that is one of

[1:40:39] them.

[1:40:43] Okay.

[1:40:45] >> Well,

[1:40:48] we're on the the workflow. So,

[1:40:52] as you can see, are they Oh, yes. So,

[1:40:55] like in October, you'll see capital

[1:40:57] project update one. So, on a quarterly

[1:41:00] basis, I provide another control and

[1:41:04] report back to the committee is what is

[1:41:08] the status of the capital projects? uh

[1:41:13] how much what what the budget is, how

[1:41:15] much was has been spent, how much work

[1:41:18] um and any reports on delays that have

[1:41:21] happened um are reported here. So we do

[1:41:26] make modifications, you know, definitely

[1:41:29] we've received much very good feedback

[1:41:32] from the the finance committee. I'm

[1:41:34] like, "No, we don't support an increase

[1:41:36] of that much or what are you what are we

[1:41:40] getting for the for this amount of

[1:41:41] money?" Um, all of those really good

[1:41:45] questions and uh, you know, we we it's

[1:41:48] an iterative process and staff has then

[1:41:51] come back with something that's more

[1:41:53] palatable to the committee and uh, and

[1:41:56] then, you know, recommended to the the

[1:41:59] full the full commission. So, it's a

[1:42:02] it's a it's a good a really good role

[1:42:05] and um iterative process with with the

[1:42:08] finance committee that plays in in

[1:42:11] making these decisions to stay within

[1:42:13] budget and uh yeah,

[1:42:16] >> you really enjoy being on the finance

[1:42:18] » you really enjoy being on the finance

[1:42:18] committee because it's a it's just a

[1:42:22] deeper dive into stuff. I hate using

[1:42:25] that term, but anyway, the, you know, we

[1:42:27] go to our commission meetings once a

[1:42:28] month and we learn, you know, kind of

[1:42:30] basic stuff, but this you really kind of

[1:42:31] get into a lot of the meat and potatoes

[1:42:34] and just working together in a smaller

[1:42:36] group is great and working closer with

[1:42:38] the staff is great and I think you'll

[1:42:40] really enjoy it. And um

[1:42:43] so last call for any questions before we

[1:42:45] talk about uh oh, items for future. What

[1:42:50] would you like to talk about at a future

[1:42:52] meeting?

[1:42:55] If not,

[1:42:56] >> I just said mine

[1:42:59] » I just said mine

[1:42:59] in the next.

[1:43:01] >> Okay,

[1:43:02] » Okay,

[1:43:02] >> we'll just follow the process then, but

[1:43:05] » we'll just follow the process then, but

[1:43:05] you can always add items on and the end

[1:43:08] of a meeting. Um, next meeting is uh

[1:43:12] we'll stay with our current schedule

[1:43:14] which is would be Monday uh September

[1:43:16] 21st, the third Monday at 2 o'clock and

[1:43:19] then see where we are or who's here and

[1:43:22] make decisions about more stuff.

[1:43:27] >> Thank you. So do I. Anyway, um,

[1:43:32] » Thank you. So do I. Anyway, um,

[1:43:32] cheers. Thank you for being here and

[1:43:35] everybody all the staff and the new

[1:43:37] commissioners and

[1:43:39] a great meeting.

[1:43:40] >> I I forgot to mention um according to my

[1:43:42] » I I forgot to mention um according to my

[1:43:42] calendar Monday the 21st is Yam Kapoor

[1:43:48] » Yam Kapoor.

[1:43:49] >> Yeah. Do we want to reschedule the

[1:43:51] » Yeah. Do we want to reschedule the

[1:43:51] finance committee meeting? I'm fine with

[1:43:53] that if if it's a

[1:43:59] » just want to make sure that we're not uh

[1:44:01] violating anybody's religious freedoms.

[1:44:04] >> So, we're good with that.

[1:44:07] » So, we're good with that.

[1:44:07] Okay, we will proceed then and uh hope

[1:44:11] to see you in September.

[1:44:13] Goodbye.

Finance Committee - 17 Aug 2026

Transcript