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need to call us to order. Everyone,

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welcome to the August Finance [snorts]

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Committee meeting of the Sonoma County

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Library Commission. And I see all of the

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present commissioners received the color

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memo. And we are colorcoordinated today.

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So, you could tell who the commissioners

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are. And um let's see if there's any

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public comment.

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We saw there were no comments received

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via email. And there are

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I believe no members of the public. Let

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me double check.

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Okay.

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>> There are no members of the public.

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» There are no members of the public.

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Commissioner Angbart is watching via

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Zoom.

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>> Right. Thank you. Well, let us let me

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» Right. Thank you. Well, let us let me

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call everybody to order here.

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Commissioner Goldberg

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>> here. Commissioner Polls.

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» here. Commissioner Polls.

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Did we hear from Commissioner Polls? No,

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we did not hear from her. And

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Commissioner Taylor

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>> here.

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» here.

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>> And very

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» And very

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hearty greeting to Commissioner Taylor

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and Commissioner Goldberg for attending

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the first Finance Committee meeting. We

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welcome you and are glad you're with us.

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Um, announcements. I have the same

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announcement that I had at the last

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meeting which is my status as a

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commissioner has not been confirmed. I'm

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still hanging out here a little bit

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hoping I can continue but as of now I am

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acting under the direction of the city

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to continue coming to meetings. Uh

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public appearances we don't seem to have

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anyone. Okay. Uh let's move into

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discussion item uh 4.1 finance committee

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roles and responsibilities. I wanted to

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take just a little bit of time since we

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have our actually majority of our

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members today are brand new and talk

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about what we really are supposed to be

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doing in this committee because it isn't

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always clear I think to to people what

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we do. Um

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to back up just a little bit, um this

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this new library commission started 12

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years ago in August of 2014. And at that

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point in time, prior to that, the

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commissioners were appointed by the

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Sonoma County uh supervisors. They each

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could name a commissioner and then the

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city of Santa Rosa could name somebody

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and city of Paloon can name somebody and

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that was the library commission.

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Starting in August of 2014,

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all of this all the jurisdictions got a

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representative. That was one of the

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major changes that happened when this

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JPA was redone. So, um I walked into the

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first meeting and commissioner uh Tim

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May from Pedaluma walked up to me and

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said, "Would you be on the finance

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committee?" And I said, "Sure." And then

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I'm still I've been doing it all this

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time. It was very informal. We didn't

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have any roles or responsibilities. We

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were totally winging it. And um so just

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over time this committee has uh you know

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clarified its roles. We have great

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leadership now that we didn't have then.

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We had a brand new CFO, a brand new CEO.

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Both of them were new to the system.

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They have come and gone. And we have,

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you know, such a strong management team.

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Now it's a a different day. So you're

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you're walking into a a good well-run

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um you know financial department of this

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of the commission at this point in time.

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So, just to talk a little bit about what

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we do do,

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we do um we review the reports that the

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CFO prepares for us. And one of the

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important things I know there's been

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comments by commissioners. We don't know

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how to read them. We don't understand

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them. They're complicated and all that.

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And I think all of us want to make a

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concerted effort to make sure everybody

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can understand at least some basic part

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of things so you can always, you know,

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tell where we are. And we think all the

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commissioners should be able to do that.

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and hopefully that will come up at the

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retreat and go over some of the basic um

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basic reports that we do. Um we can have

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no more than five commissioners as a

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five as 11 member body. The five was a

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as a majority and um I believe uh a

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fifth person has been named but we're

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holding back for now until the Hillsburg

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commissioner gets seated. So, at the

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next meeting, I will or will not be

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there, and the new person will

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presumably be there, and I believe it's

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Commissioner Riley, is it not? Um, so

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anyway, what we do besides review the

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reports, um, the the chair of the of the

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commission may say, you know, I really

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want you to look at something, you know,

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some financial issue that's going on or

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something. It's poorly understood by the

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commission, whatever. So the the chair

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of the commission and this happens very

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very rarely can ask us specifically to

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look at something that I can't even

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remember the last time that happened but

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that can happen based on our role and

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responsibility. the full commission

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could say, you know, we don't understand

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such and such. Let's take it back to

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finance committee and let them hash it

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over and then report to us. Or any of us

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can bring up something that we're

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concerned about that we think would be a

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helpful topic to to look into. So, we

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can also put something on the agenda and

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we'll have the opportunity to do that at

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the end of the meeting.

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Um we don't necessarily do anything with

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all the stuff that we do but if the

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commission chair or um or the the

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commission or the or us ourselves we can

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make recommendations you know if if on

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upon request and so we you know we can

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do that. Um we also look at the

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preliminary audit when the auditors go

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through everything and we kind of go

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through line by line and you know make

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all the comments and

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you know edits and so forth that we

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think are are appropriate. So, we do

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meet once a month and we have

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traditionally met the entire time I've

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been on this always on Monday

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afternoons. Recently, we changed the

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time to Monday at 2 to accommodate

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another uh uh meeting that Erica has.

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And um so you know we were going to talk

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about changing this but we thought well

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let's wait till whatever month it is

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soon that everybody's here and then

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we'll work around what what works best

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for you for everyone [clears throat]

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and in this day and age we can

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participate by teleconference. To me

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it's always great to be here in this

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room if at all possible but Kim I know

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you have you know more commuting issues.

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So uh to the extent possible we'll we'll

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meet here continue to meet here. Um so

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um the chair is supposed to be elected

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uh in August. I saw it briefly on this

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agenda and then it disappeared and

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probably because of this issue of our

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our committee structure itself isn't

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quite set. So that would probably be in

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September I'm assuming. Um so the the

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chair and I was elected I think two

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years ago and then reelected. Um, my my

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position is to work with MNA and with

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Lisa on the the the agendas. Lisa's

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great about carrying over things that

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she knows we need to talk about and then

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Mirina has her stuff and then I have my

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stuff and then we we work it out.

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Usually the agendas aren't too terribly

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long. Um, and then I'm responsible for

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leading the meeting. The vice chair

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leads the meeting when um I'm pointing

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this way. Lisa Tina is not actually the

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vice chair, but whoever's sitting here.

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Um, in my absence, the the vice chair

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would would lead the meeting.

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Um, the minutes come to the chair after

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Lisa writes them up for edits. We do

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action minutes, which used to be

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frustrating to me because it didn't have

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like all the stuff in them and I like

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detail. So, we've kind of come to a

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compromise and if there's some kind of

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meaty issue that needs a little detail,

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I added quite a bit to our minutes the

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last time because we were talking about

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the bond measure. I thought it would be

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helpful to add to the minutes some of

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the detail that we had talked about, but

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we don't do she said this and he said

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that and they approved that and stuff

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like that. So we try to keep them uh

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reasonably streamlined but at least

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informational enough that that helps um

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certainly the other commissioners to

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read it and know what it is. So anyway

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then the then the minutes go out to all

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the commissioners and then you can all

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make you know comments and um and then

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it says here that I am to the chair is

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to prepare and deliver a monthly report.

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Usually that's the minutes but it could

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be something special if there was a

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special topic. So anyway, uh way back

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when early days when I was finance

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committee chair, we had a problematic

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committee member and we've constantly

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interrupted and wouldn't you know play

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by the organizational structure. So

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anyway, we I added this got added which

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is uh finance committee members are

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appointed by the chair, committee

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members may resign at their discretion.

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Committee members may also be removed by

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the chair in consultation with the chair

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of the finance committee. the chair of

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the commission can remove people who

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aren't, you know, functioning or maybe

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attending or or whatever reason, but

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that's only happened once in 12 days

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that I know about. Okay, great. Well,

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any questions about the role and

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responsibilities? Anything that you

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would you're not clear about either one

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of you.

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>> Just to thank you and I appreciate the

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» Just to thank you and I appreciate the

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overview. It's very helpful.

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>> You may hear it again next time if I'm

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» You may hear it again next time if I'm

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still here and there's another new

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person. I just think it's important to

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know what we're doing, you know, what

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we're supposed to be doing. So great.

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Well, thank you for your attention to

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that. Um, moving on to the update on the

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bond sale and would our CFO take the

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reigns on this one? I believe

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» so.

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Um, finally the culmination of the

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search for

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um, finally the culmination for the

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search and the financing of a new

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central operations center um, took one

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of the largest milestones which was the

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sale of the the revenue bond that

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happened on Thursday the 13th. it was

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with very successful uh results. Um we

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wanted to give you an update today on uh

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more details on what happened. Um

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and first

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why don't give you the this Oh, maybe

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Bobby are you sharing your screen? Okay,

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00:10:50,320 --> 00:10:53,350
>> I am. Yeah. Uh could folks see the the

272
00:10:53,350 --> 00:10:53,360
» I am. Yeah. Uh could folks see the the

273
00:10:53,360 --> 00:10:55,040
title slide?

274
00:10:55,040 --> 00:10:58,710
>> Yes. So, Bobby from KN&N Municipal

275
00:10:58,710 --> 00:10:58,720
» Yes. So, Bobby from KN&N Municipal

276
00:10:58,720 --> 00:11:03,360
Advisors is uh here to um give us an

277
00:11:03,360 --> 00:11:05,839
overview, but we wanted to start off by

278
00:11:05,839 --> 00:11:09,440
letting you know that uh we there there

279
00:11:09,440 --> 00:11:14,000
were uh very good um for our for our

280
00:11:14,000 --> 00:11:17,120
purposes, good conditions in the market.

281
00:11:17,120 --> 00:11:19,839
There were some um economic indicators

282
00:11:19,839 --> 00:11:23,279
that came in and uh did not shake

283
00:11:23,279 --> 00:11:26,959
anything up. So, it was uh good for us

284
00:11:26,959 --> 00:11:32,320
that week. Uh but prior to um the sale,

285
00:11:32,320 --> 00:11:37,279
we were required to uh um request a

286
00:11:37,279 --> 00:11:40,000
credit rating since this is the first

287
00:11:40,000 --> 00:11:43,680
time that the library issued a bond. Of

288
00:11:43,680 --> 00:11:44,800
course, we don't have any credit

289
00:11:44,800 --> 00:11:50,640
history. And so um we presented um

290
00:11:50,640 --> 00:11:54,240
director Tibiot and I presented to a

291
00:11:54,240 --> 00:11:57,600
committee from standard and por's global

292
00:11:57,600 --> 00:12:03,360
ratings team and um and had submitted

293
00:12:03,360 --> 00:12:08,639
many documents to them. Uh they also uh

294
00:12:08,639 --> 00:12:11,440
sent us many questions in advance that

295
00:12:11,440 --> 00:12:14,560
we prepared for and KN&N helped us

296
00:12:14,560 --> 00:12:18,399
prepare a presentation of our financial

297
00:12:18,399 --> 00:12:23,200
condition profile of the uh Sonoma

298
00:12:23,200 --> 00:12:26,560
County and specifically the library

299
00:12:26,560 --> 00:12:31,040
which uh all was uh wellreceived and as

300
00:12:31,040 --> 00:12:33,680
a result standard and pores rated the

301
00:12:33,680 --> 00:12:35,440
library

302
00:12:35,440 --> 00:12:37,360
an AA plus.

303
00:12:37,360 --> 00:12:38,949
>> Is that the highest you can get? Is

304
00:12:38,949 --> 00:12:38,959
» Is that the highest you can get? Is

305
00:12:38,959 --> 00:12:41,279
there any AAA or double plus or anything

306
00:12:41,279 --> 00:12:44,710
>> there? The AAA is the highest. Um, and

307
00:12:44,710 --> 00:12:44,720
» there? The AAA is the highest. Um, and

308
00:12:44,720 --> 00:12:47,120
then there's probably a couple of others

309
00:12:47,120 --> 00:12:51,200
in between the AA plus and the AAA.

310
00:12:51,200 --> 00:12:54,870
>> Uh, double A plus is just below AAA. So,

311
00:12:54,870 --> 00:12:54,880
» Uh, double A plus is just below AAA. So,

312
00:12:54,880 --> 00:12:57,360
it's AAA and then double A+. So, this is

313
00:12:57,360 --> 00:13:01,670
a very very strong rating.

314
00:13:01,680 --> 00:13:04,720
So I I I wanted to make sure uh the

315
00:13:04,720 --> 00:13:09,600
finance committee knew that uh the one

316
00:13:09,600 --> 00:13:13,839
of the major results of it of this was

317
00:13:13,839 --> 00:13:17,040
because of uh very strong uh fiscal

318
00:13:17,040 --> 00:13:20,320
management of the organization. They

319
00:13:20,320 --> 00:13:23,519
cited uh the policies, the financial

320
00:13:23,519 --> 00:13:26,480
policies of the fund balance, uh

321
00:13:26,480 --> 00:13:31,120
proactive payment of the OPE liability,

322
00:13:31,120 --> 00:13:33,440
the pension liability,

323
00:13:33,440 --> 00:13:38,160
and um conservative budgeting. So, all

324
00:13:38,160 --> 00:13:43,920
of those items um uh influenced that

325
00:13:43,920 --> 00:13:47,920
double A+ rating. and wanted to thank uh

326
00:13:47,920 --> 00:13:52,399
KN&N for uh their assistance in uh

327
00:13:52,399 --> 00:13:57,040
preparing all of this. And the the

328
00:13:57,040 --> 00:13:59,519
rating is very important because it it

329
00:13:59,519 --> 00:14:03,440
is an an indicator to potential

330
00:14:03,440 --> 00:14:07,440
investors of how um

331
00:14:07,440 --> 00:14:11,040
creditw worthy we are um to pay back you

332
00:14:11,040 --> 00:14:14,959
know any investment. Um and so therefore

333
00:14:14,959 --> 00:14:19,199
um uh wanted to to highlight that kudos

334
00:14:19,199 --> 00:14:22,399
to the the commission, the finance

335
00:14:22,399 --> 00:14:24,880
committee that's had led many of these

336
00:14:24,880 --> 00:14:29,120
policies that contributed to this um

337
00:14:29,120 --> 00:14:31,760
this uh stable outlook for us.

338
00:14:31,760 --> 00:14:33,509
>> Um I'm going to add to that a little

339
00:14:33,509 --> 00:14:33,519
» Um I'm going to add to that a little

340
00:14:33,519 --> 00:14:35,440
bit. Um, and one of the reasons why we

341
00:14:35,440 --> 00:14:37,600
received this high rating wasn't just

342
00:14:37,600 --> 00:14:39,360
because of our financial stability, but

343
00:14:39,360 --> 00:14:42,000
all of those policies that the finance

344
00:14:42,000 --> 00:14:44,800
committee um, helped guide us through,

345
00:14:44,800 --> 00:14:46,800
including our allocation of revenue

346
00:14:46,800 --> 00:14:50,720
sources, our fund balance policy, um,

347
00:14:50,720 --> 00:14:53,040
our debt policy we passed. So, all of

348
00:14:53,040 --> 00:14:55,839
those things actually helped contribute

349
00:14:55,839 --> 00:14:59,440
to our double A+ rating. So having that

350
00:14:59,440 --> 00:15:02,480
secure policy base um was really helpful

351
00:15:02,480 --> 00:15:05,440
and it will also be helpful in years to

352
00:15:05,440 --> 00:15:06,639
come. You know we always have the

353
00:15:06,639 --> 00:15:10,160
opportunity to um refinance um in 10

354
00:15:10,160 --> 00:15:13,040
years and maintaining a solid credit

355
00:15:13,040 --> 00:15:16,560
rating will improve our ability to get

356
00:15:16,560 --> 00:15:19,279
um better interest rates in 10 years.

357
00:15:19,279 --> 00:15:21,199
So, it's a good thing as long as we can

358
00:15:21,199 --> 00:15:23,279
kind of maintain this fiscal stability

359
00:15:23,279 --> 00:15:26,959
and uh fiscal um responsibility, it will

360
00:15:26,959 --> 00:15:31,030
it just bodess well for us.

361
00:15:31,040 --> 00:15:33,120
» So, transitioning to the next slide,

362
00:15:33,120 --> 00:15:35,360
which is the summary of competitive sale

363
00:15:35,360 --> 00:15:41,440
pricing results, I will uh ask Bobby to

364
00:15:41,440 --> 00:15:44,800
um step in and go over these next few

365
00:15:44,800 --> 00:15:46,399
slides.

366
00:15:46,399 --> 00:15:48,310
>> Great. Uh thank you, Mina. And uh good

367
00:15:48,310 --> 00:15:48,320
» Great. Uh thank you, Mina. And uh good

368
00:15:48,320 --> 00:15:50,240
afternoon uh members of the finance

369
00:15:50,240 --> 00:15:52,560
committee. Uh Bobby Chung from KN&N

370
00:15:52,560 --> 00:15:56,320
public finance. Um yeah, as uh uh uh

371
00:15:56,320 --> 00:15:58,959
just mentioned uh the double A+ credit

372
00:15:58,959 --> 00:16:02,079
rating really was a strength in the uh

373
00:16:02,079 --> 00:16:05,040
marketing of this uh transaction. Um

374
00:16:05,040 --> 00:16:07,680
your bond sold via a competitive sale.

375
00:16:07,680 --> 00:16:11,360
So um the entire universe of uh broker

376
00:16:11,360 --> 00:16:14,720
dealer firms were invited uh uh to

377
00:16:14,720 --> 00:16:17,440
participate uh in this transaction and

378
00:16:17,440 --> 00:16:21,680
last Thursday uh uh we received nine

379
00:16:21,680 --> 00:16:25,360
bids from the market um with uh the

380
00:16:25,360 --> 00:16:28,240
winning bid being submitted by UBS

381
00:16:28,240 --> 00:16:31,440
Financial Services uh at a true interest

382
00:16:31,440 --> 00:16:35,920
cost of uh just about 4.04%.

383
00:16:35,920 --> 00:16:37,759
And the true interest cost is a is a

384
00:16:37,759 --> 00:16:40,079
blended borrowing rate uh for each one

385
00:16:40,079 --> 00:16:43,360
of the uh the 30 years of uh uh bond

386
00:16:43,360 --> 00:16:45,519
maturities that that were uh uh that

387
00:16:45,519 --> 00:16:49,279
were priced. Um and uh as uh as

388
00:16:49,279 --> 00:16:52,079
mentioned previously uh really the the

389
00:16:52,079 --> 00:16:55,040
the CPI and PPI figures that were

390
00:16:55,040 --> 00:16:57,920
released uh in advance of that uh sale

391
00:16:57,920 --> 00:17:00,240
date um contributed to a really strong

392
00:17:00,240 --> 00:17:03,120
tone in the market. basically uh fears

393
00:17:03,120 --> 00:17:06,400
of inflation were removed uh and it was

394
00:17:06,400 --> 00:17:09,120
um uh a really good uh strong day. And

395
00:17:09,120 --> 00:17:11,679
so as you could see uh you know the UBS

396
00:17:11,679 --> 00:17:15,439
bid uh uh came in uh significantly lower

397
00:17:15,439 --> 00:17:17,439
uh than many of the other bids uh that

398
00:17:17,439 --> 00:17:20,079
were received uh on on on the day of

399
00:17:20,079 --> 00:17:21,839
sale.

400
00:17:21,839 --> 00:17:23,679
Uh

401
00:17:23,679 --> 00:17:26,480
the next slide uh is the final sources

402
00:17:26,480 --> 00:17:30,559
and uses. Um uh total sources equals

403
00:17:30,559 --> 00:17:33,919
total uses. Here uh the transaction bar

404
00:17:33,919 --> 00:17:38,000
amount uh after factoring in um the

405
00:17:38,000 --> 00:17:40,160
actual coupons and yields received from

406
00:17:40,160 --> 00:17:44,000
UBS uh was finalized at $12.025

407
00:17:44,000 --> 00:17:47,760
million. Uh as a function of the sale,

408
00:17:47,760 --> 00:17:49,919
uh uh the library will be receiving

409
00:17:49,919 --> 00:17:52,240
about $400,000

410
00:17:52,240 --> 00:17:54,880
uh in bond premium uh from the investors

411
00:17:54,880 --> 00:17:58,320
who purchased uh uh these bonds um

412
00:17:58,320 --> 00:18:02,799
totaling uh sources of 12.447.

413
00:18:02,799 --> 00:18:06,400
Uh in terms of the uses, 12.18 million

414
00:18:06,400 --> 00:18:08,880
will go towards the uh the acquisition.

415
00:18:08,880 --> 00:18:13,280
Uh this of course uh uh um uh is in

416
00:18:13,280 --> 00:18:15,760
addition to the $600,000 that the

417
00:18:15,760 --> 00:18:18,480
library uh is um you know has already

418
00:18:18,480 --> 00:18:22,799
committed uh in cash. Uh about $220 went

419
00:18:22,799 --> 00:18:24,799
towards paying cost of issuance and that

420
00:18:24,799 --> 00:18:28,320
covered our fee uh bond and disclosure

421
00:18:28,320 --> 00:18:31,919
council, the credit rating, the trustee,

422
00:18:31,919 --> 00:18:35,600
the financial printer uh etc.

423
00:18:35,600 --> 00:18:39,039
uh the underwriter discount uh 45,000 uh

424
00:18:39,039 --> 00:18:40,640
that uh that's the amount that went to

425
00:18:40,640 --> 00:18:44,160
UBS uh for uh for winning the bid uh and

426
00:18:44,160 --> 00:18:46,480
underwriting the bonds. And this

427
00:18:46,480 --> 00:18:48,640
rounding amount is just because uh bonds

428
00:18:48,640 --> 00:18:52,160
are issued in $5,000 increments.

429
00:18:52,160 --> 00:18:54,160
Uh the transaction will close next

430
00:18:54,160 --> 00:18:58,320
Thursday on August 27th. Um this is uh

431
00:18:58,320 --> 00:19:00,320
uh the transaction has a final maturity

432
00:19:00,320 --> 00:19:03,520
of October 1, 206 and the final true

433
00:19:03,520 --> 00:19:07,039
interest cost was right around 4.04%.

434
00:19:07,039 --> 00:19:09,520
Uh this resulted in uh average annual

435
00:19:09,520 --> 00:19:14,480
payments of uh about $712,000

436
00:19:14,480 --> 00:19:18,640
uh per fiscal year and total payments of

437
00:19:18,640 --> 00:19:21,039
about uh 21.69

438
00:19:21,039 --> 00:19:24,000
million when factoring in both principal

439
00:19:24,000 --> 00:19:26,720
uh and interest.

440
00:19:26,720 --> 00:19:29,039
Uh so the next slide shows the the

441
00:19:29,039 --> 00:19:32,080
detailed uh breakout of principal and

442
00:19:32,080 --> 00:19:35,280
interest. Um we we structured this to

443
00:19:35,280 --> 00:19:37,840
generate level payments on a fiscal year

444
00:19:37,840 --> 00:19:40,720
basis for the entire term uh except for

445
00:19:40,720 --> 00:19:42,400
the current fiscal year which just has

446
00:19:42,400 --> 00:19:44,799
an interest payment uh uh due in the

447
00:19:44,799 --> 00:19:49,280
spring of uh 2027. Um but yeah, no uh

448
00:19:49,280 --> 00:19:51,840
you know this this result came in um you

449
00:19:51,840 --> 00:19:53,520
know stronger than than we were

450
00:19:53,520 --> 00:19:55,520
anticipating. Uh I think the last time I

451
00:19:55,520 --> 00:19:57,600
I spoke before your your fuller

452
00:19:57,600 --> 00:19:59,840
commission you know we were estimating

453
00:19:59,840 --> 00:20:02,640
you know 750,000 per year uh you know

454
00:20:02,640 --> 00:20:05,840
the borrowing rate uh as of that time um

455
00:20:05,840 --> 00:20:08,400
we were estimating you know like 440 450

456
00:20:08,400 --> 00:20:10,640
range and then the credit rating came in

457
00:20:10,640 --> 00:20:12,960
stronger than anticipated uh and the

458
00:20:12,960 --> 00:20:15,120
bond market conditions itself were were

459
00:20:15,120 --> 00:20:17,840
stronger uh um uh than we were

460
00:20:17,840 --> 00:20:19,280
anticipating. So I think this is a

461
00:20:19,280 --> 00:20:21,679
really good result.

462
00:20:21,679 --> 00:20:24,000
Um the next slide is uh just a couple of

463
00:20:24,000 --> 00:20:26,799
next steps through the bond closing. Uh

464
00:20:26,799 --> 00:20:31,200
so um you know as we uh as we all know

465
00:20:31,200 --> 00:20:34,720
uh the steps leading up to uh uh up to

466
00:20:34,720 --> 00:20:37,840
uh the pricing um uh have occurred

467
00:20:37,840 --> 00:20:40,720
already. Uh so we have locked in those

468
00:20:40,720 --> 00:20:43,520
interest rates. Uh and over the course

469
00:20:43,520 --> 00:20:46,159
of this week uh and through early next

470
00:20:46,159 --> 00:20:47,760
week, we'll be obtaining signatures

471
00:20:47,760 --> 00:20:50,080
necessary for closing. Uh and then next

472
00:20:50,080 --> 00:20:53,280
Thursday the 27th um uh the transaction

473
00:20:53,280 --> 00:20:56,000
will officially close where UBS will

474
00:20:56,000 --> 00:21:00,720
send money uh to our trustee uh and then

475
00:21:00,720 --> 00:21:03,840
the trustee will send uh uh a transfer

476
00:21:03,840 --> 00:21:06,559
to uh your account uh on on the day of

477
00:21:06,559 --> 00:21:09,600
closing. Uh so let me pause there see if

478
00:21:09,600 --> 00:21:11,840
there are any questions uh before we

479
00:21:11,840 --> 00:21:14,080
move on uh uh to the uh to the last

480
00:21:14,080 --> 00:21:15,760
slide.

481
00:21:15,760 --> 00:21:19,830
>> Any questions from commissioners?

482
00:21:19,830 --> 00:21:19,840
» Any questions from commissioners?

483
00:21:19,840 --> 00:21:22,799
I have something I'd like to add.

484
00:21:22,799 --> 00:21:24,230
>> Yes.

485
00:21:24,230 --> 00:21:24,240
» Yes.

486
00:21:24,240 --> 00:21:25,990
>> Um, so I know that when we were

487
00:21:25,990 --> 00:21:26,000
» Um, so I know that when we were

488
00:21:26,000 --> 00:21:28,000
contemplating this purchase, one of the

489
00:21:28,000 --> 00:21:29,440
things that we looked at was a

490
00:21:29,440 --> 00:21:33,280
comparison of our lease costs versus uh

491
00:21:33,280 --> 00:21:35,360
our debt service. And I can say with

492
00:21:35,360 --> 00:21:38,080
this new interest rate, uh, we will

493
00:21:38,080 --> 00:21:42,159
surpass our lease costs in year four.

494
00:21:42,159 --> 00:21:45,440
So, we will um we will basically be

495
00:21:45,440 --> 00:21:47,440
paying a little bit more for the next

496
00:21:47,440 --> 00:21:52,159
four years, but we will be flat payments

497
00:21:52,159 --> 00:21:54,960
essentially um after um after that. And

498
00:21:54,960 --> 00:21:57,600
so, it really is prudent that we made

499
00:21:57,600 --> 00:22:00,640
this decision.

500
00:22:00,640 --> 00:22:02,789
>> That's really great news. And I happen

501
00:22:02,789 --> 00:22:02,799
» That's really great news. And I happen

502
00:22:02,799 --> 00:22:04,640
to bring this from one of our early

503
00:22:04,640 --> 00:22:06,880
discussions and it we're trying to see

504
00:22:06,880 --> 00:22:08,640
which was a better deal. And there was

505
00:22:08,640 --> 00:22:10,799
it did show that crossover at year six.

506
00:22:10,799 --> 00:22:12,559
What I had noticed and the reason I

507
00:22:12,559 --> 00:22:13,840
brought this was, you know, we're

508
00:22:13,840 --> 00:22:18,789
talking about 764,762,000.

509
00:22:18,799 --> 00:22:20,720
Bobby mentioned a slightly lower number,

510
00:22:20,720 --> 00:22:23,280
but I mean, you know, it's 50,000 a year

511
00:22:23,280 --> 00:22:26,720
or something like that for 30 years, you

512
00:22:26,720 --> 00:22:28,400
know, at least. So, it's saves us a lot

513
00:22:28,400 --> 00:22:30,720
of money and that is due to the high

514
00:22:30,720 --> 00:22:32,799
rating, right? We take it all back to

515
00:22:32,799 --> 00:22:35,440
being a great

516
00:22:35,440 --> 00:22:38,240
greatly wellorganized functioning fiscal

517
00:22:38,240 --> 00:22:41,200
organization. So anyway, uh I like

518
00:22:41,200 --> 00:22:42,799
Bobby. I love the fact that you were

519
00:22:42,799 --> 00:22:46,080
kind of surprised.

520
00:22:46,080 --> 00:22:49,270
>> Yeah, I am too. [laughter]

521
00:22:49,270 --> 00:22:49,280
» Yeah, I am too. [laughter]

522
00:22:49,280 --> 00:22:51,270
>> You dealt with any similar kind of

523
00:22:51,270 --> 00:22:51,280
» You dealt with any similar kind of

524
00:22:51,280 --> 00:22:53,520
public institution like us that

525
00:22:53,520 --> 00:22:55,440
surprised you in such a way?

526
00:22:55,440 --> 00:22:57,029
>> Yeah. Yeah. You know, of course,

527
00:22:57,029 --> 00:22:57,039
» Yeah. Yeah. You know, of course,

528
00:22:57,039 --> 00:22:58,880
sometimes it goes the other way, right?

529
00:22:58,880 --> 00:23:03,760
Um uh there were uh um this was a very

530
00:23:03,760 --> 00:23:06,159
good uh result in the credit rating uh

531
00:23:06,159 --> 00:23:07,919
and a very good tone in the bond market.

532
00:23:07,919 --> 00:23:10,640
So, uh, you really had those two things,

533
00:23:10,640 --> 00:23:14,480
um, working for you. Um, so, yeah, it

534
00:23:14,480 --> 00:23:16,400
it's just a testament to, you know, to

535
00:23:16,400 --> 00:23:18,880
this committee's, uh, in particular, uh,

536
00:23:18,880 --> 00:23:21,200
you know, prudent, um, financial

537
00:23:21,200 --> 00:23:24,480
management. So, yeah.

538
00:23:24,480 --> 00:23:25,750
>> So, there there's a little bit of a

539
00:23:25,750 --> 00:23:25,760
» So, there there's a little bit of a

540
00:23:25,760 --> 00:23:29,200
lucky day aspect to this, too, given the

541
00:23:29,200 --> 00:23:31,360
political climate and national political

542
00:23:31,360 --> 00:23:32,640
climate. Is that what you were kind of

543
00:23:32,640 --> 00:23:34,240
pointing out in your report?

544
00:23:34,240 --> 00:23:36,710
>> A little bit. Yes. Right. Um the the

545
00:23:36,710 --> 00:23:36,720
» A little bit. Yes. Right. Um the the

546
00:23:36,720 --> 00:23:38,480
double A plus credit ratings certainly

547
00:23:38,480 --> 00:23:42,400
helped. Um but also uh we we did hit a

548
00:23:42,400 --> 00:23:44,720
particularly stable

549
00:23:44,720 --> 00:23:47,200
tone in the market. You know leading up

550
00:23:47,200 --> 00:23:49,200
to to last Thursday there was about a

551
00:23:49,200 --> 00:23:52,640
week and a half of stability. Um and uh

552
00:23:52,640 --> 00:23:56,320
uh strength in the bond market. Um so

553
00:23:56,320 --> 00:24:00,720
that uh uh that all uh came to to your

554
00:24:00,720 --> 00:24:02,559
benefit.

555
00:24:02,559 --> 00:24:05,510
>> Great. The the fates were with us. Um,

556
00:24:05,510 --> 00:24:05,520
» Great. The the fates were with us. Um,

557
00:24:05,520 --> 00:24:07,600
Bobby, my question would be, do you have

558
00:24:07,600 --> 00:24:10,240
a continuing role?

559
00:24:10,240 --> 00:24:13,350
>> We do. We do. Yeah. Um, and that's a

560
00:24:13,350 --> 00:24:13,360
» We do. We do. Yeah. Um, and that's a

561
00:24:13,360 --> 00:24:15,760
good transition actually. Uh, Mirina,

562
00:24:15,760 --> 00:24:19,600
uh, why don't, uh, MNA walk through, uh,

563
00:24:19,600 --> 00:24:21,279
this last slide and then and then I

564
00:24:21,279 --> 00:24:24,240
could talk a little bit about, um, our

565
00:24:24,240 --> 00:24:28,230
continuing role.

566
00:24:28,240 --> 00:24:31,440
So um as you know the closing is on

567
00:24:31,440 --> 00:24:33,760
August 27th

568
00:24:33,760 --> 00:24:36,320
and then at that time the trustee

569
00:24:36,320 --> 00:24:38,320
computer share will distribute the bron

570
00:24:38,320 --> 00:24:41,039
proceeds to the library as Bobby has

571
00:24:41,039 --> 00:24:44,400
mentioned. Um the library has then has

572
00:24:44,400 --> 00:24:47,279
to turn that around and wire the funds

573
00:24:47,279 --> 00:24:52,400
to um Old Republic title uh so that um

574
00:24:52,400 --> 00:24:54,640
we complete our transaction with the

575
00:24:54,640 --> 00:24:57,919
seller and that's we should be doing

576
00:24:57,919 --> 00:25:00,960
that by early the first week of um

577
00:25:00,960 --> 00:25:02,880
September.

578
00:25:02,880 --> 00:25:06,400
Um the library will be establishing a

579
00:25:06,400 --> 00:25:11,200
new um fund so that we can track these

580
00:25:11,200 --> 00:25:15,520
proceeds and payments um separately from

581
00:25:15,520 --> 00:25:18,960
all of our other funds. And our first

582
00:25:18,960 --> 00:25:24,000
payment is due on April 2027. It will be

583
00:25:24,000 --> 00:25:28,080
print um interest only at that time. But

584
00:25:28,080 --> 00:25:30,240
then our second payment which is due in

585
00:25:30,240 --> 00:25:32,400
October will include principal and

586
00:25:32,400 --> 00:25:34,880
interest and it will be the first time

587
00:25:34,880 --> 00:25:38,720
we see that 700,000 number.

588
00:25:38,720 --> 00:25:43,200
And uh in terms of uh KN&N's role, uh

589
00:25:43,200 --> 00:25:46,640
the library will be required to um

590
00:25:46,640 --> 00:25:50,559
submit reports annually to the state and

591
00:25:50,559 --> 00:25:54,320
um and uh we'll need to we will be

592
00:25:54,320 --> 00:25:56,880
receiving assistance from KN&N in

593
00:25:56,880 --> 00:25:58,559
compliance with these reporting

594
00:25:58,559 --> 00:26:01,120
requirements.

595
00:26:01,120 --> 00:26:02,880
Did you want to add anything to that,

596
00:26:02,880 --> 00:26:04,320
Bobby?

597
00:26:04,320 --> 00:26:07,110
>> Um yeah, ju just on that last point. Um

598
00:26:07,110 --> 00:26:07,120
» Um yeah, ju just on that last point. Um

599
00:26:07,120 --> 00:26:09,760
uh again since uh since these bonds once

600
00:26:09,760 --> 00:26:11,679
they close um you know they're they're

601
00:26:11,679 --> 00:26:13,840
publicly issued bonds. So the investors

602
00:26:13,840 --> 00:26:16,720
who purchase your bonds initially uh you

603
00:26:16,720 --> 00:26:18,000
know should they want to they they have

604
00:26:18,000 --> 00:26:20,080
the flexibility to to trade them in the

605
00:26:20,080 --> 00:26:22,640
secondary market. So uh it's important

606
00:26:22,640 --> 00:26:27,520
that um uh uh the information uh remains

607
00:26:27,520 --> 00:26:29,840
current for for bond holders. And so

608
00:26:29,840 --> 00:26:31,360
there's a there's a continuing

609
00:26:31,360 --> 00:26:34,799
disclosure requirement uh uh where where

610
00:26:34,799 --> 00:26:37,919
the library will uh on an annual basis

611
00:26:37,919 --> 00:26:41,440
uh basically present its uh uh its its

612
00:26:41,440 --> 00:26:44,720
annual audit uh plus um I think two of

613
00:26:44,720 --> 00:26:47,360
the tables in the preliminary um and

614
00:26:47,360 --> 00:26:49,679
final official statement uh to the

615
00:26:49,679 --> 00:26:52,080
market and and that will help uh you

616
00:26:52,080 --> 00:26:55,520
know keep investors um uh uh up to date

617
00:26:55,520 --> 00:26:58,880
on on your credit. Um

618
00:26:58,880 --> 00:27:00,880
uh yeah, the state of California through

619
00:27:00,880 --> 00:27:04,080
the treasur's office has a annual debt

620
00:27:04,080 --> 00:27:07,440
uh transparency report uh that basically

621
00:27:07,440 --> 00:27:10,799
um where where you report the spend down

622
00:27:10,799 --> 00:27:13,600
of the your bond proceeds and also the

623
00:27:13,600 --> 00:27:16,880
payown of your uh outstanding bonds. Um

624
00:27:16,880 --> 00:27:19,919
that's an annual requirement. Um and uh

625
00:27:19,919 --> 00:27:22,720
yeah, we we do not disappear uh at uh

626
00:27:22,720 --> 00:27:24,880
you know at at at time of the bond

627
00:27:24,880 --> 00:27:27,440
closing. Um, you know, we're here to to

628
00:27:27,440 --> 00:27:29,360
assist with the compliance of of these

629
00:27:29,360 --> 00:27:33,440
measures, uh, moving forward.

630
00:27:33,440 --> 00:27:35,430
>> Thank you very much. Um, commissioners,

631
00:27:35,430 --> 00:27:35,440
» Thank you very much. Um, commissioners,

632
00:27:35,440 --> 00:27:37,760
do you have any questions at this point?

633
00:27:37,760 --> 00:27:40,559
Um, I would like to ask kind of a simple

634
00:27:40,559 --> 00:27:43,919
question, but to explain to the public,

635
00:27:43,919 --> 00:27:46,000
I I was at a forens library meeting this

636
00:27:46,000 --> 00:27:48,640
morning. What is like a simple language

637
00:27:48,640 --> 00:27:50,960
that we can use to explain what we have

638
00:27:50,960 --> 00:27:55,120
just done as a library?

639
00:27:55,120 --> 00:27:56,080
you know it like

640
00:27:56,080 --> 00:28:00,310
>> well uh I I'll start off and maybe Bobby

641
00:28:00,310 --> 00:28:00,320
» well uh I I'll start off and maybe Bobby

642
00:28:00,320 --> 00:28:03,360
can elaborate. Essentially

643
00:28:03,360 --> 00:28:10,159
uh we we are promising that um

644
00:28:10,159 --> 00:28:12,960
that the library because of its strong

645
00:28:12,960 --> 00:28:16,320
property tax general fund revenues. we

646
00:28:16,320 --> 00:28:20,480
are able to afford to pay back uh a loan

647
00:28:20,480 --> 00:28:23,760
that we took from um you know a public

648
00:28:23,760 --> 00:28:26,240
sale of bonds.

649
00:28:26,240 --> 00:28:29,520
Is it something about when we have gone

650
00:28:29,520 --> 00:28:32,080
out for you know that's something about

651
00:28:32,080 --> 00:28:34,880
going out and issuing public bonds it

652
00:28:34,880 --> 00:28:36,480
gets complicated when you try to explain

653
00:28:36,480 --> 00:28:38,640
it because obviously KN&N and all the

654
00:28:38,640 --> 00:28:40,080
people that involved in this I mean we

655
00:28:40,080 --> 00:28:42,320
didn't do it but how do you how do you

656
00:28:42,320 --> 00:28:44,000
kind of explain it to the public but you

657
00:28:44,000 --> 00:28:46,480
know for the first time we are taking on

658
00:28:46,480 --> 00:28:48,880
you know debt to buy a a headquarters an

659
00:28:48,880 --> 00:28:51,919
operations building by by what me by

660
00:28:51,919 --> 00:28:53,919
what method

661
00:28:53,919 --> 00:28:56,070
>> um through a competitive bond sale. So,

662
00:28:56,070 --> 00:28:56,080
» um through a competitive bond sale. So,

663
00:28:56,080 --> 00:28:58,159
as opposed to, you know, I think when

664
00:28:58,159 --> 00:28:59,600
most people think of bonds, they think

665
00:28:59,600 --> 00:29:02,240
about those um those ballot measures,

666
00:29:02,240 --> 00:29:04,240
you know, those bonds that are actually

667
00:29:04,240 --> 00:29:07,279
pledges of additional taxes that people

668
00:29:07,279 --> 00:29:10,240
will pay. So, this is not an additional

669
00:29:10,240 --> 00:29:13,840
tax. Um they are not paying, you know,

670
00:29:13,840 --> 00:29:15,600
taxpayers will not be paying any more

671
00:29:15,600 --> 00:29:17,440
money to the library as a result of

672
00:29:17,440 --> 00:29:20,159
this. This is an investor who has looked

673
00:29:20,159 --> 00:29:23,360
at our finances, who has learned, who

674
00:29:23,360 --> 00:29:24,960
has decided that they [clears throat]

675
00:29:24,960 --> 00:29:28,960
can make money on this investment and

676
00:29:28,960 --> 00:29:33,200
they are lending us money in order to

677
00:29:33,200 --> 00:29:35,440
make money, if that makes sense. and

678
00:29:35,440 --> 00:29:37,360
they are looking at our balance sheets

679
00:29:37,360 --> 00:29:39,039
and our fiscal policies and our

680
00:29:39,039 --> 00:29:40,480
financial stability and they're

681
00:29:40,480 --> 00:29:43,520
basically they're taking a risk you know

682
00:29:43,520 --> 00:29:46,320
um that uh that we will continue to be

683
00:29:46,320 --> 00:29:50,320
fiscally stable and um and make

684
00:29:50,320 --> 00:29:52,720
financial prudent financial decisions

685
00:29:52,720 --> 00:29:55,919
but that risk is going to you know earn

686
00:29:55,919 --> 00:29:58,080
them money

687
00:29:58,080 --> 00:30:00,000
if that makes sense. Do we call it

688
00:30:00,000 --> 00:30:04,960
public bond sales? Is that right?

689
00:30:04,960 --> 00:30:05,669
>> Correct.

690
00:30:05,669 --> 00:30:05,679
» Correct.

691
00:30:05,679 --> 00:30:07,909
>> Yes, that that's that's right. Yes.

692
00:30:07,909 --> 00:30:07,919
» Yes, that that's that's right. Yes.

693
00:30:07,919 --> 00:30:09,990
>> And so I think it is important though

694
00:30:09,990 --> 00:30:10,000
» And so I think it is important though

695
00:30:10,000 --> 00:30:11,840
this point that we made earlier that

696
00:30:11,840 --> 00:30:15,600
this is not that it saves us money that

697
00:30:15,600 --> 00:30:18,159
in in within four years we'll be paying

698
00:30:18,159 --> 00:30:20,159
less by paying the interest on this than

699
00:30:20,159 --> 00:30:21,760
we would have been paying for a lease. I

700
00:30:21,760 --> 00:30:23,440
think that's part of anyway I' I'd like

701
00:30:23,440 --> 00:30:26,159
to boil it down at some point in time to

702
00:30:26,159 --> 00:30:30,960
uh you know the elevator paragraph or uh

703
00:30:30,960 --> 00:30:34,320
yes Eve

704
00:30:34,320 --> 00:30:35,440
said to people

705
00:30:35,440 --> 00:30:38,950
>> uh Eve can you please push your

706
00:30:38,950 --> 00:30:38,960
» uh Eve can you please push your

707
00:30:38,960 --> 00:30:41,269
>> this is what I have said that's short

708
00:30:41,269 --> 00:30:41,279
» this is what I have said that's short

709
00:30:41,279 --> 00:30:44,080
but it could be wrong so I want to put

710
00:30:44,080 --> 00:30:45,919
it out there and find out if I got it

711
00:30:45,919 --> 00:30:49,600
right or wrong. So, I have said um cuz

712
00:30:49,600 --> 00:30:52,320
somebody asked me I've said we have

713
00:30:52,320 --> 00:30:55,919
floated a a public bond instead of going

714
00:30:55,919 --> 00:31:00,320
to a bank for a loan and they said is

715
00:31:00,320 --> 00:31:04,159
that because with a public bond

716
00:31:04,159 --> 00:31:06,000
you are paying a lower interest rate and

717
00:31:06,000 --> 00:31:09,279
I said yes and they said are you paying

718
00:31:09,279 --> 00:31:11,679
a lower interest rate because you're a

719
00:31:11,679 --> 00:31:14,799
public institution so the investors

720
00:31:14,799 --> 00:31:17,200
don't have so somebody doesn't have to

721
00:31:17,200 --> 00:31:19,600
pay taxes on their dividends. And I

722
00:31:19,600 --> 00:31:22,480
said, I don't know, but I think so. Is

723
00:31:22,480 --> 00:31:24,399
that correct? Is that why we have a

724
00:31:24,399 --> 00:31:28,000
lower interest rate? That that's a

725
00:31:28,000 --> 00:31:31,200
that's an excellent question. Um, first

726
00:31:31,200 --> 00:31:35,360
of all, yes. The investors that have

727
00:31:35,360 --> 00:31:38,799
loaned you money do not have to pay uh

728
00:31:38,799 --> 00:31:41,279
income tax on the interest that they

729
00:31:41,279 --> 00:31:44,799
receive, federal income tax. A and if

730
00:31:44,799 --> 00:31:47,279
they live in California, uh state income

731
00:31:47,279 --> 00:31:49,440
tax as well. Um so then therefore

732
00:31:49,440 --> 00:31:51,919
they're they are willing to to loan you

733
00:31:51,919 --> 00:31:56,159
money at a uh preferential uh or lower

734
00:31:56,159 --> 00:31:58,559
interest rate versus uh a private

735
00:31:58,559 --> 00:32:03,279
company um uh you know uh selling bonds.

736
00:32:03,279 --> 00:32:05,722
Um so that that's number one. Number

737
00:32:05,722 --> 00:32:08,240
[clears throat] two, you could always go

738
00:32:08,240 --> 00:32:11,440
to a bank uh and a bank would lend you

739
00:32:11,440 --> 00:32:15,039
money at a tax exempt rate. Uh but

740
00:32:15,039 --> 00:32:17,600
accessing the public bond market as we

741
00:32:17,600 --> 00:32:20,159
did through a competitive sale um

742
00:32:20,159 --> 00:32:21,919
results

743
00:32:21,919 --> 00:32:24,399
generally in a lower interest rate than

744
00:32:24,399 --> 00:32:27,200
going directly to a bank. So, not only

745
00:32:27,200 --> 00:32:30,480
is your rate tax exempt,

746
00:32:30,480 --> 00:32:33,840
but also it's a public bond sale and

747
00:32:33,840 --> 00:32:36,799
lower than if you went to just a a a

748
00:32:36,799 --> 00:32:39,440
like a commercial bank like a Beimo or

749
00:32:39,440 --> 00:32:43,200
or or JP Morgan uh uh for a uh for a

750
00:32:43,200 --> 00:32:47,029
direct loan.

751
00:32:47,039 --> 00:32:49,360
» So, it's both.

752
00:32:49,360 --> 00:32:50,470
>> Thanks.

753
00:32:50,470 --> 00:32:50,480
» Thanks.

754
00:32:50,480 --> 00:32:52,389
>> Yeah.

755
00:32:52,389 --> 00:32:52,399
» Yeah.

756
00:32:52,399 --> 00:32:53,750
>> Great.

757
00:32:53,750 --> 00:32:53,760
» Great.

758
00:32:53,760 --> 00:32:55,120
I think we're all feeling very

759
00:32:55,120 --> 00:32:56,799
celebratory.

760
00:32:56,799 --> 00:33:00,399
I certainly am. So, um, any other

761
00:33:00,399 --> 00:33:01,840
questions? Anything else you'd like to

762
00:33:01,840 --> 00:33:06,559
say to us, Bobby, before we wrap up the

763
00:33:06,559 --> 00:33:09,269
>> No, congratulations. We were uh uh very

764
00:33:09,269 --> 00:33:09,279
» No, congratulations. We were uh uh very

765
00:33:09,279 --> 00:33:10,480
pleased with the result and we look

766
00:33:10,480 --> 00:33:12,960
forward to the to the closing uh next

767
00:33:12,960 --> 00:33:15,200
Thursday. Well, from everything I've

768
00:33:15,200 --> 00:33:17,200
heard, you've been great to work with

769
00:33:17,200 --> 00:33:19,919
and um really appreciate every all your

770
00:33:19,919 --> 00:33:22,240
efforts and clarifying everything to us

771
00:33:22,240 --> 00:33:24,320
and walking us through a brand new

772
00:33:24,320 --> 00:33:26,559
thing. So, thanks very much.

773
00:33:26,559 --> 00:33:29,029
>> Appreciate it. Thank you.

774
00:33:29,029 --> 00:33:29,039
» Appreciate it. Thank you.

775
00:33:29,039 --> 00:33:30,950
>> Bobby.

776
00:33:30,950 --> 00:33:30,960
» Bobby.

777
00:33:30,960 --> 00:33:32,870
>> All right. See you later.

778
00:33:32,870 --> 00:33:32,880
» All right. See you later.

779
00:33:32,880 --> 00:33:35,269
>> All right. Thank you.

780
00:33:35,269 --> 00:33:35,279
» All right. Thank you.

781
00:33:35,279 --> 00:33:38,310
>> Bye.

782
00:33:38,320 --> 00:33:41,120
» He's very calming, doesn't he? It feels

783
00:33:41,120 --> 00:33:42,960
like it's all under control with Bobby.

784
00:33:42,960 --> 00:33:45,360
Jo's got it. It's really good. Mirina,

785
00:33:45,360 --> 00:33:47,360
did you want to add anything or or Erica

786
00:33:47,360 --> 00:33:50,240
to our this discussion

787
00:33:50,240 --> 00:33:52,240
before we move forward?

788
00:33:52,240 --> 00:33:55,590
>> This this is a major milestone for for

789
00:33:55,590 --> 00:33:55,600
» This this is a major milestone for for

790
00:33:55,600 --> 00:33:59,760
the library. I I believe that um you

791
00:33:59,760 --> 00:34:02,080
know the the sales tax measures have

792
00:34:02,080 --> 00:34:05,440
allowed us to and have propelled us to

793
00:34:05,440 --> 00:34:09,839
this point and the library continues to

794
00:34:09,839 --> 00:34:14,639
mature in meaning that um these policies

795
00:34:14,639 --> 00:34:18,000
that are in place um

796
00:34:18,000 --> 00:34:23,599
uh are an important factor in

797
00:34:23,599 --> 00:34:26,320
establishing controls and expectations.

798
00:34:26,320 --> 00:34:29,760
ations and transparency on how we manage

799
00:34:29,760 --> 00:34:35,119
our affairs and um so the work of this

800
00:34:35,119 --> 00:34:37,040
committee has been really instrumental

801
00:34:37,040 --> 00:34:44,240
in that. Um having a full staff in um uh

802
00:34:44,240 --> 00:34:46,800
in our in our accounting working with

803
00:34:46,800 --> 00:34:50,639
the county uh partners uh have made a

804
00:34:50,639 --> 00:34:52,960
very big difference. We've had clean

805
00:34:52,960 --> 00:34:58,000
audits um and uh so I think all of that

806
00:34:58,000 --> 00:35:00,480
is um is moving us in the right

807
00:35:00,480 --> 00:35:03,119
direction. But my point is that the

808
00:35:03,119 --> 00:35:07,760
library continues to with the more

809
00:35:07,760 --> 00:35:10,880
uh revenues

810
00:35:10,880 --> 00:35:13,200
um and the greater expenditures that we

811
00:35:13,200 --> 00:35:17,440
have uh this the organization is uh

812
00:35:17,440 --> 00:35:22,160
becoming more complex and um

813
00:35:22,160 --> 00:35:26,640
and more mature and uh has been able to

814
00:35:26,640 --> 00:35:29,920
utilize the tools that are set for us in

815
00:35:29,920 --> 00:35:32,560
the joint powers. agreement

816
00:35:32,560 --> 00:35:35,599
and uh and so this is this had never

817
00:35:35,599 --> 00:35:38,240
been exercised before, but we are

818
00:35:38,240 --> 00:35:40,960
utilizing it and and it was there for a

819
00:35:40,960 --> 00:35:44,800
reason um to continue to provide very

820
00:35:44,800 --> 00:35:49,599
good services for for um our residents.

821
00:35:49,599 --> 00:35:52,560
And uh I'd like to say that working with

822
00:35:52,560 --> 00:35:55,680
uh director Tibbo is uh pretty amazing.

823
00:35:55,680 --> 00:35:58,480
she d, you know, she's jumps right in.

824
00:35:58,480 --> 00:36:02,720
Um, and uh and and and we work really

825
00:36:02,720 --> 00:36:06,720
well together and really appreciate um

826
00:36:06,720 --> 00:36:11,520
her her her uh inquisitiveness and and

827
00:36:11,520 --> 00:36:15,119
uh also vision for um for this

828
00:36:15,119 --> 00:36:17,040
organization. So, thank you.

829
00:36:17,040 --> 00:36:18,470
>> Well, I I couldn't have done it without

830
00:36:18,470 --> 00:36:18,480
» Well, I I couldn't have done it without

831
00:36:18,480 --> 00:36:20,079
Mirat.

832
00:36:20,079 --> 00:36:22,550
>> Absolutely not. and uh you know and also

833
00:36:22,550 --> 00:36:22,560
» Absolutely not. and uh you know and also

834
00:36:22,560 --> 00:36:24,880
having these adviserss you know really

835
00:36:24,880 --> 00:36:26,480
walk us through the process. It was

836
00:36:26,480 --> 00:36:28,880
enormously helpful. Um we could not have

837
00:36:28,880 --> 00:36:31,280
done it um by ourselves. It was just an

838
00:36:31,280 --> 00:36:33,599
enormous task. And of course the um

839
00:36:33,599 --> 00:36:36,000
accounting staff was also incredibly

840
00:36:36,000 --> 00:36:38,480
helpful and having them uh to support

841
00:36:38,480 --> 00:36:41,119
her. And you know we probably and poor

842
00:36:41,119 --> 00:36:43,280
Lisa you know um our last couple

843
00:36:43,280 --> 00:36:45,599
commission meeting packets have been you

844
00:36:45,599 --> 00:36:47,599
know down to the wire and I don't really

845
00:36:47,599 --> 00:36:49,760
like to operate that way. Um, but it has

846
00:36:49,760 --> 00:36:52,320
really been because this purchase and

847
00:36:52,320 --> 00:36:54,880
the bond sale has eaten up a lot of

848
00:36:54,880 --> 00:36:57,680
time. Um, but you know, I'm very I'm

849
00:36:57,680 --> 00:36:59,520
hopeful that after this we can go back

850
00:36:59,520 --> 00:37:02,320
to our our regularly scheduled

851
00:37:02,320 --> 00:37:04,640
commission packets.

852
00:37:04,640 --> 00:37:06,880
So, thank you, Lisa.

853
00:37:06,880 --> 00:37:07,750
>> Thanks.

854
00:37:07,750 --> 00:37:07,760
» Thanks.

855
00:37:07,760 --> 00:37:10,230
>> You're welcome.

856
00:37:10,230 --> 00:37:10,240
» You're welcome.

857
00:37:10,240 --> 00:37:11,750
>> Well, I'm going to allow myself a couple

858
00:37:11,750 --> 00:37:11,760
» Well, I'm going to allow myself a couple

859
00:37:11,760 --> 00:37:14,400
of minutes here because

860
00:37:14,400 --> 00:37:17,119
um I I I realize I'm really the last of

861
00:37:17,119 --> 00:37:19,280
the old guard. there's no commissioner

862
00:37:19,280 --> 00:37:22,079
has been on as long and and the

863
00:37:22,079 --> 00:37:24,000
management hasn't been on as long and so

864
00:37:24,000 --> 00:37:26,240
forth and just to give everybody just a

865
00:37:26,240 --> 00:37:28,880
dose of perspective when again you know

866
00:37:28,880 --> 00:37:31,280
I love your word mirror about this

867
00:37:31,280 --> 00:37:34,000
organization maturing is a perfect word

868
00:37:34,000 --> 00:37:36,720
and evolving and adding and you know

869
00:37:36,720 --> 00:37:39,599
building um because 12 years ago when

870
00:37:39,599 --> 00:37:42,640
the new JPA started we were operating on

871
00:37:42,640 --> 00:37:45,040
a shoestring we had only the property

872
00:37:45,040 --> 00:37:47,440
tax I believe it was 15 million it was

873
00:37:47,440 --> 00:37:48,880
something like the budget was about that

874
00:37:48,880 --> 00:37:51,440
and you know 12 years later we're at 50.

875
00:37:51,440 --> 00:37:54,400
Um it was open the library is open 40 uh

876
00:37:54,400 --> 00:37:56,960
40 hours a week 5 days a week closed

877
00:37:56,960 --> 00:38:00,400
Sunday and Monday there was just the it

878
00:38:00,400 --> 00:38:02,000
was keeping the lights on the friends

879
00:38:02,000 --> 00:38:04,320
were buying most of the books. I mean it

880
00:38:04,320 --> 00:38:07,760
was a very very desperate situation and

881
00:38:07,760 --> 00:38:10,400
right before the new JPA kicked in at

882
00:38:10,400 --> 00:38:11,920
that time again I like to point out that

883
00:38:11,920 --> 00:38:14,240
Jamie Anderson and David Dodd were

884
00:38:14,240 --> 00:38:17,359
co-inter directors. I mean everything

885
00:38:17,359 --> 00:38:22,000
was just so patched together and um so

886
00:38:22,000 --> 00:38:25,839
those brand new CFOs brand new CEO um

887
00:38:25,839 --> 00:38:27,440
the brand new commission I mean

888
00:38:27,440 --> 00:38:29,040
everything was just you know new and

889
00:38:29,040 --> 00:38:31,920
green and and shaky and you know just

890
00:38:31,920 --> 00:38:34,079
trying to to build an organization from

891
00:38:34,079 --> 00:38:36,320
whatever there was a fund balance policy

892
00:38:36,320 --> 00:38:38,640
but it wasn't very complete and we

893
00:38:38,640 --> 00:38:41,920
started working on that right away um

894
00:38:41,920 --> 00:38:45,119
the OPED I'm very proud of because I was

895
00:38:45,119 --> 00:38:47,200
part of that And we had we went out and

896
00:38:47,200 --> 00:38:49,280
got I got Darren Jenkins who was our

897
00:38:49,280 --> 00:38:51,520
city manager at the time to be on a

898
00:38:51,520 --> 00:38:53,119
subcommittee and there were two other

899
00:38:53,119 --> 00:38:55,680
pension experts who joined us and

900
00:38:55,680 --> 00:38:59,040
created this you know policy just out of

901
00:38:59,040 --> 00:39:01,920
whole cloth once we once we got the t

902
00:39:01,920 --> 00:39:03,760
first tax measure passed when we got

903
00:39:03,760 --> 00:39:05,359
measure Y passed and so then there was

904
00:39:05,359 --> 00:39:08,800
money. Um the the Kalpers thing is just

905
00:39:08,800 --> 00:39:11,119
brand new right off just we just voted

906
00:39:11,119 --> 00:39:12,960
on that as a commission and that was the

907
00:39:12,960 --> 00:39:14,880
other thing and I know Andy was really

908
00:39:14,880 --> 00:39:17,040
very essential in that something that

909
00:39:17,040 --> 00:39:20,079
there's two big unfunded liabilities and

910
00:39:20,079 --> 00:39:22,640
we taken care of both of them. I mean

911
00:39:22,640 --> 00:39:24,960
it's really astonishing. Andy is

912
00:39:24,960 --> 00:39:26,560
somebody who's pointed out not long ago

913
00:39:26,560 --> 00:39:28,240
that we don't often reflect on our

914
00:39:28,240 --> 00:39:30,720
successes enough. And part of it I think

915
00:39:30,720 --> 00:39:33,040
is uh losing the perspective and if

916
00:39:33,040 --> 00:39:35,040
anything I can bring perspective because

917
00:39:35,040 --> 00:39:37,359
you've lived through this whole thing

918
00:39:37,359 --> 00:39:40,160
and uh the the difference in having

919
00:39:40,160 --> 00:39:41,680
committed

920
00:39:41,680 --> 00:39:44,800
permanent feeling management is just

921
00:39:44,800 --> 00:39:46,480
makes all the difference in the world.

922
00:39:46,480 --> 00:39:48,800
You two are a tremendous team. you've

923
00:39:48,800 --> 00:39:51,040
just we feel solid and of course Dara

924
00:39:51,040 --> 00:39:53,760
adds her expertise you know as a as a

925
00:39:53,760 --> 00:39:56,960
assistant director and um it's just it

926
00:39:56,960 --> 00:40:00,880
feels so good to be you know so secure

927
00:40:00,880 --> 00:40:03,440
in in what we're doing and not fly by

928
00:40:03,440 --> 00:40:05,839
night like it did for a long long time.

929
00:40:05,839 --> 00:40:08,640
So I applaud everybody who uh has added

930
00:40:08,640 --> 00:40:10,640
to the maturity and the development and

931
00:40:10,640 --> 00:40:12,560
so forth and it's you know it takes a

932
00:40:12,560 --> 00:40:14,240
village and all that takes everybody and

933
00:40:14,240 --> 00:40:16,720
their own talents and skills. So um

934
00:40:16,720 --> 00:40:19,280
anyway much much much to be proud of for

935
00:40:19,280 --> 00:40:22,079
as a system and as all of us who are

936
00:40:22,079 --> 00:40:24,480
currently participating as well. So

937
00:40:24,480 --> 00:40:26,720
anyway thank you. I I had to indulge in

938
00:40:26,720 --> 00:40:29,119
a little

939
00:40:29,119 --> 00:40:32,880
reflection. So on that um so we did the

940
00:40:32,880 --> 00:40:34,720
update on the bond sale. Let's move on

941
00:40:34,720 --> 00:40:39,280
to 4.3 the 26year end on audited

942
00:40:39,280 --> 00:40:57,829
financials and back to our CFO for that.

943
00:40:57,839 --> 00:41:00,000
I want to bring up the the detail. I'd

944
00:41:00,000 --> 00:41:06,950
rather show this

945
00:41:06,960 --> 00:41:09,200
the summary.

946
00:41:09,200 --> 00:41:13,119
I don't know if you can make it bigger.

947
00:41:13,119 --> 00:41:16,870
Probably

948
00:41:16,880 --> 00:41:18,560
make it a little bigger. If the yellow

949
00:41:18,560 --> 00:41:21,920
comes off, that's fine.

950
00:41:21,920 --> 00:41:31,589
Let's see.

951
00:41:31,599 --> 00:41:33,280
Okay,

952
00:41:33,280 --> 00:41:36,079
little one.

953
00:41:36,079 --> 00:41:40,560
Um, okay. So, good afternoon. This is

954
00:41:40,560 --> 00:41:45,520
our annual unawudited year-end uh report

955
00:41:45,520 --> 00:41:48,800
that shows um financials through June

956
00:41:48,800 --> 00:41:52,079
30th, 2026. We're in August. The month

957
00:41:52,079 --> 00:41:55,040
of July is a dual period, what we call a

958
00:41:55,040 --> 00:41:57,920
dual period. We're working in the new

959
00:41:57,920 --> 00:42:02,800
fiscal year as of July 1, but uh we work

960
00:42:02,800 --> 00:42:05,359
with the county's timeline and their

961
00:42:05,359 --> 00:42:10,640
financial system. So we are um we work

962
00:42:10,640 --> 00:42:12,720
with their timeline in terms of closing

963
00:42:12,720 --> 00:42:17,040
the year end. So there are transactions

964
00:42:17,040 --> 00:42:20,319
that are happening uh for last fiscal

965
00:42:20,319 --> 00:42:22,160
year although it was closed on June

966
00:42:22,160 --> 00:42:25,359
30th. There are transactions that have

967
00:42:25,359 --> 00:42:28,079
late invoices that that are that come in

968
00:42:28,079 --> 00:42:31,520
after you know July third I mean June

969
00:42:31,520 --> 00:42:37,200
30th. um any um journals that we have to

970
00:42:37,200 --> 00:42:39,359
make, you know, moving funds from, you

971
00:42:39,359 --> 00:42:43,920
know, uh our friends donations into, you

972
00:42:43,920 --> 00:42:45,760
know, property tax or sales tax as

973
00:42:45,760 --> 00:42:48,400
reimbursements, closing up and wrapping

974
00:42:48,400 --> 00:42:52,079
up our grants. All of those LA uh year

975
00:42:52,079 --> 00:42:55,839
end um activities are taking place in

976
00:42:55,839 --> 00:42:59,200
July and they we're given about three

977
00:42:59,200 --> 00:43:03,200
weeks or so uh to close up and then the

978
00:43:03,200 --> 00:43:07,359
system is closed for June 30th and um

979
00:43:07,359 --> 00:43:10,079
and then we get we we get our financials

980
00:43:10,079 --> 00:43:13,280
that you're seeing in front of you. So,

981
00:43:13,280 --> 00:43:17,040
and staff is working very quickly and

982
00:43:17,040 --> 00:43:19,520
busily um in the month of July because

983
00:43:19,520 --> 00:43:22,160
we're working in two fiscal years.

984
00:43:22,160 --> 00:43:24,000
Um

985
00:43:24,000 --> 00:43:28,640
so, having said that, uh I wanted to um

986
00:43:28,640 --> 00:43:32,160
say that we're in a uh steady uh

987
00:43:32,160 --> 00:43:35,200
financial position. Uh so as we're going

988
00:43:35,200 --> 00:43:38,319
into strongly into this new fiscal year

989
00:43:38,319 --> 00:43:40,480
2627

990
00:43:40,480 --> 00:43:44,560
and um the f the the the

991
00:43:44,560 --> 00:43:48,319
first look at this are the budget versus

992
00:43:48,319 --> 00:43:51,119
actuals. The budget that you see in

993
00:43:51,119 --> 00:43:53,200
green in the green column is the

994
00:43:53,200 --> 00:43:56,560
adjusted budget. This is our sum summary

995
00:43:56,560 --> 00:43:59,750
page

996
00:43:59,760 --> 00:44:03,760
and uh and then you have all the

997
00:44:03,760 --> 00:44:07,760
recordings for every month of the fiscal

998
00:44:07,760 --> 00:44:09,440
year

999
00:44:09,440 --> 00:44:13,760
and uh we have as everyone know knows uh

1000
00:44:13,760 --> 00:44:19,359
we do have financials for every month um

1001
00:44:19,359 --> 00:44:21,760
and now we're looking at June and the

1002
00:44:21,760 --> 00:44:24,560
reason why we have estimated in June

1003
00:44:24,560 --> 00:44:28,400
is that we may still encounter some

1004
00:44:28,400 --> 00:44:30,400
budget adjustments

1005
00:44:30,400 --> 00:44:35,680
uh in particular uh around um revenues

1006
00:44:35,680 --> 00:44:40,560
in terms of our sales tax and in our

1007
00:44:40,560 --> 00:44:43,359
expenditures around capital.

1008
00:44:43,359 --> 00:44:47,359
So um

1009
00:44:47,359 --> 00:44:50,640
the reason why revenues are estimated

1010
00:44:50,640 --> 00:44:54,960
under sales tax is that sale we receive

1011
00:44:54,960 --> 00:44:58,480
our sales tax receipts two months after.

1012
00:44:58,480 --> 00:45:01,280
So as you can see here the July month is

1013
00:45:01,280 --> 00:45:05,839
is uh July and August are blank because

1014
00:45:05,839 --> 00:45:09,920
we don't receive um the July

1015
00:45:09,920 --> 00:45:12,480
receipts until September. So we record

1016
00:45:12,480 --> 00:45:15,760
them in September. So therefore if we

1017
00:45:15,760 --> 00:45:19,040
follow that logic uh the June the May

1018
00:45:19,040 --> 00:45:22,800
receipts are received in July and the

1019
00:45:22,800 --> 00:45:24,880
June receipts are received in August

1020
00:45:24,880 --> 00:45:28,480
that we're still waiting for. Um but we

1021
00:45:28,480 --> 00:45:32,240
do an estimate. We average the uh April

1022
00:45:32,240 --> 00:45:36,319
and May receipts and and we plug in uh a

1023
00:45:36,319 --> 00:45:41,760
figure. We do up them um update them to

1024
00:45:41,760 --> 00:45:44,160
the true receipts through budget

1025
00:45:44,160 --> 00:45:47,760
adjustments in August and um eventually

1026
00:45:47,760 --> 00:45:50,560
we do have an opportunity to ref do

1027
00:45:50,560 --> 00:45:54,000
those updates also in the system.

1028
00:45:54,000 --> 00:45:56,160
Um

1029
00:45:56,160 --> 00:46:01,680
so the actual revenues total were 49.07

1030
00:46:01,680 --> 00:46:03,200
million

1031
00:46:03,200 --> 00:46:07,040
uh which is 1.09 09 million greater than

1032
00:46:07,040 --> 00:46:09,920
the approved budget.

1033
00:46:09,920 --> 00:46:11,680
Um,

1034
00:46:11,680 --> 00:46:14,720
and under a, and I'll get into more

1035
00:46:14,720 --> 00:46:16,960
detail, but this is just the high level.

1036
00:46:16,960 --> 00:46:19,680
Under actual operating re operating

1037
00:46:19,680 --> 00:46:21,280
expenditures,

1038
00:46:21,280 --> 00:46:23,680
operating expenditures are all of their

1039
00:46:23,680 --> 00:46:26,560
expenditures, salaries, and services and

1040
00:46:26,560 --> 00:46:29,040
supplies.

1041
00:46:29,040 --> 00:46:32,160
Um, and it excludes capital.

1042
00:46:32,160 --> 00:46:34,550
>> Were you in the yellow? We're doing the

1043
00:46:34,550 --> 00:46:34,560
» Were you in the yellow? We're doing the

1044
00:46:34,560 --> 00:46:37,440
yellow or you still doing the green

1045
00:46:37,440 --> 00:46:41,430
>> the green the yellow is last year the

1046
00:46:41,430 --> 00:46:41,440
» the green the yellow is last year the

1047
00:46:41,440 --> 00:46:42,400
prior year.

1048
00:46:42,400 --> 00:46:43,910
>> Oh

1049
00:46:43,910 --> 00:46:43,920
» Oh

1050
00:46:43,920 --> 00:46:46,160
she is

1051
00:46:46,160 --> 00:46:52,069
okay.

1052
00:46:52,079 --> 00:46:53,520
» Thank you.

1053
00:46:53,520 --> 00:46:56,800
Okay. So

1054
00:46:56,800 --> 00:47:02,319
in terms of uh Yes. So actuals are um

1055
00:47:02,319 --> 00:47:06,870
what I'm looking at are

1056
00:47:06,880 --> 00:47:09,680
the unodudited actual actuals yearto

1057
00:47:09,680 --> 00:47:12,800
date plus incumbrances

1058
00:47:12,800 --> 00:47:15,440
and um can you scoot that over a little

1059
00:47:15,440 --> 00:47:20,230
bit?

1060
00:47:20,240 --> 00:47:24,720
» Okay. So we don't encumber revenues. So

1061
00:47:24,720 --> 00:47:28,480
you see blanks there. And so again our

1062
00:47:28,480 --> 00:47:31,520
total revenues is 49.07

1063
00:47:31,520 --> 00:47:36,240
million which is 1 million greater than

1064
00:47:36,240 --> 00:47:38,560
the budget which and the budget is in

1065
00:47:38,560 --> 00:47:53,589
the green.

1066
00:47:53,599 --> 00:47:56,800
Um then I have total expenditures which

1067
00:47:56,800 --> 00:48:00,640
does include our capital that is the

1068
00:48:00,640 --> 00:48:04,240
total expenditures are 50.71 million

1069
00:48:04,240 --> 00:48:07,920
which are approximately also 1.58

1070
00:48:07,920 --> 00:48:11,599
million less than the approved budget.

1071
00:48:11,599 --> 00:48:14,960
So we're spending less than we budgeted.

1072
00:48:14,960 --> 00:48:17,359
What we call a savings.

1073
00:48:17,359 --> 00:48:19,119
Oh, we have more revenues than we

1074
00:48:19,119 --> 00:48:22,079
budgeted and also we are spending less

1075
00:48:22,079 --> 00:48:24,880
than we budgeted. Yes.

1076
00:48:24,880 --> 00:48:28,640
Um then you could also now this is this

1077
00:48:28,640 --> 00:48:31,760
what I just explained was from the left

1078
00:48:31,760 --> 00:48:36,319
to the right. My next uh item is from

1079
00:48:36,319 --> 00:48:39,359
the top to the bottom. You can see that

1080
00:48:39,359 --> 00:48:44,160
our revenues were 49 million

1081
00:48:44,160 --> 00:48:47,440
with the total

1082
00:48:47,440 --> 00:48:50,960
cap with capital expenditures of 50.7

1083
00:48:50,960 --> 00:48:52,559
million

1084
00:48:52,559 --> 00:48:54,720
our revenues

1085
00:48:54,720 --> 00:48:57,520
our expenditures are greater than our

1086
00:48:57,520 --> 00:49:00,800
revenues but that has was planned for

1087
00:49:00,800 --> 00:49:04,160
and the reason is that what is bringing

1088
00:49:04,160 --> 00:49:07,680
us up above our revenue are there a

1089
00:49:07,680 --> 00:49:10,480
capital expenditures and as we know we

1090
00:49:10,480 --> 00:49:14,160
use our fund balance for for that and

1091
00:49:14,160 --> 00:49:16,000
right here what we're showing is our

1092
00:49:16,000 --> 00:49:18,160
operating revenue that comes in

1093
00:49:18,160 --> 00:49:20,640
annually.

1094
00:49:20,640 --> 00:49:20,880
Okay,

1095
00:49:20,880 --> 00:49:23,990
>> that was so that was planned for.

1096
00:49:23,990 --> 00:49:24,000
» that was so that was planned for.

1097
00:49:24,000 --> 00:49:28,950
>> And when you say fund balance

1098
00:49:28,960 --> 00:49:32,319
as opposed to unassigned fund balance,

1099
00:49:32,319 --> 00:49:34,319
are you saying that those capital

1100
00:49:34,319 --> 00:49:36,800
expenditures were already

1101
00:49:36,800 --> 00:49:39,200
put aside?

1102
00:49:39,200 --> 00:49:41,520
Nothing to do with the unassigned.

1103
00:49:41,520 --> 00:49:42,309
>> Correct.

1104
00:49:42,309 --> 00:49:42,319
» Correct.

1105
00:49:42,319 --> 00:49:43,589
>> Okay,

1106
00:49:43,589 --> 00:49:43,599
» Okay,

1107
00:49:43,599 --> 00:49:45,109
>> I'm going to interject just a quick

1108
00:49:45,109 --> 00:49:45,119
» I'm going to interject just a quick

1109
00:49:45,119 --> 00:49:47,359
point. One of the reports I wanted to

1110
00:49:47,359 --> 00:49:50,079
start off our training with was the fund

1111
00:49:50,079 --> 00:49:52,880
balance reports, but they're not

1112
00:49:52,880 --> 00:49:55,040
finalized yet, but it really helps you.

1113
00:49:55,040 --> 00:49:57,839
You can see the property tax and the

1114
00:49:57,839 --> 00:49:59,520
sales tax and you can see the money put

1115
00:49:59,520 --> 00:50:01,839
aside for all the stuff and it just it

1116
00:50:01,839 --> 00:50:03,280
really will help and we'll have that

1117
00:50:03,280 --> 00:50:05,680
next in September

1118
00:50:05,680 --> 00:50:07,440
so you can look at that. But it'll help

1119
00:50:07,440 --> 00:50:10,720
you. Yeah, responsible being on a

1120
00:50:10,720 --> 00:50:12,800
committee that I better really

1121
00:50:12,800 --> 00:50:15,119
understand things when I haven't really,

1122
00:50:15,119 --> 00:50:18,559
you know, I sort of semi okay, you know,

1123
00:50:18,559 --> 00:50:21,599
maybe find

1124
00:50:21,599 --> 00:50:22,480
this stuff now.

1125
00:50:22,480 --> 00:50:25,109
>> I'm available at any time uh you have

1126
00:50:25,109 --> 00:50:25,119
» I'm available at any time uh you have

1127
00:50:25,119 --> 00:50:27,599
any questions um if you'd like to sit

1128
00:50:27,599 --> 00:50:30,720
down and go over these reports.

1129
00:50:30,720 --> 00:50:36,000
Okay. So in terms of um

1130
00:50:36,000 --> 00:50:40,240
revenue details um I already mentioned

1131
00:50:40,240 --> 00:50:43,040
the high level just to drill down into

1132
00:50:43,040 --> 00:50:46,319
property tax. Property tax receipts were

1133
00:50:46,319 --> 00:50:48,960
a total of 30.28

1134
00:50:48,960 --> 00:50:50,480
million

1135
00:50:50,480 --> 00:50:52,800
right there.

1136
00:50:52,800 --> 00:50:57,520
um which is approximately 267 less than

1137
00:50:57,520 --> 00:51:00,880
the approved adjusted budget. Uh what

1138
00:51:00,880 --> 00:51:03,839
we're seeing and experiencing is that

1139
00:51:03,839 --> 00:51:05,839
properties are still staying on the

1140
00:51:05,839 --> 00:51:10,240
market longer and um and also affecting

1141
00:51:10,240 --> 00:51:12,480
the number of sales. People are still

1142
00:51:12,480 --> 00:51:14,800
it's just the market has slowed down a

1143
00:51:14,800 --> 00:51:16,640
little bit.

1144
00:51:16,640 --> 00:51:18,160
Um

1145
00:51:18,160 --> 00:51:20,720
the under sales tax the estimated

1146
00:51:20,720 --> 00:51:23,119
receipts are 15.61

1147
00:51:23,119 --> 00:51:28,640
million. Uh it's $34,000

1148
00:51:28,640 --> 00:51:30,480
greater than the approved but again

1149
00:51:30,480 --> 00:51:33,200
that's estimated. We will true these up

1150
00:51:33,200 --> 00:51:37,520
or update to actuals. um

1151
00:51:37,520 --> 00:51:40,720
the later this month when we receive uh

1152
00:51:40,720 --> 00:51:44,400
those those August figures.

1153
00:51:44,400 --> 00:51:46,800
Other revenue

1154
00:51:46,800 --> 00:51:48,800
receipts is a combination of revenues

1155
00:51:48,800 --> 00:51:51,119
such as interest earned on our cash

1156
00:51:51,119 --> 00:51:52,640
balances,

1157
00:51:52,640 --> 00:51:55,920
other um other jurisdictional or

1158
00:51:55,920 --> 00:51:58,240
intergovernmental sources which includes

1159
00:51:58,240 --> 00:52:00,800
grants and donations.

1160
00:52:00,800 --> 00:52:07,200
Um and that is a total of 1 3.17

1161
00:52:07,200 --> 00:52:10,480
million which is 1.32 million greater

1162
00:52:10,480 --> 00:52:13,119
than the approved budget

1163
00:52:13,119 --> 00:52:18,079
and primarily the reason is um the two

1164
00:52:18,079 --> 00:52:22,800
reasons um is the

1165
00:52:22,800 --> 00:52:26,480
we did receive um we we've done a lot of

1166
00:52:26,480 --> 00:52:28,480
work are we completed the work with at

1167
00:52:28,480 --> 00:52:30,880
HNG

1168
00:52:30,880 --> 00:52:35,359
Um, we should be are we um Sarah would

1169
00:52:35,359 --> 00:52:36,559
know. Yeah.

1170
00:52:36,559 --> 00:52:38,950
>> Yeah. I haven't had an update on that uh

1171
00:52:38,950 --> 00:52:38,960
» Yeah. I haven't had an update on that uh

1172
00:52:38,960 --> 00:52:41,200
in at least two weeks, but the last I

1173
00:52:41,200 --> 00:52:44,800
heard the HVAC was still being finished.

1174
00:52:44,800 --> 00:52:45,829
>> Okay.

1175
00:52:45,829 --> 00:52:45,839
» Okay.

1176
00:52:45,839 --> 00:52:50,480
So um the li since the library owns the

1177
00:52:50,480 --> 00:52:54,960
HNG building behind central library the

1178
00:52:54,960 --> 00:52:57,440
library applied directly to the state

1179
00:52:57,440 --> 00:52:59,920
for the building forward grant. It's a

1180
00:52:59,920 --> 00:53:03,760
capital grant. Um and in other cases

1181
00:53:03,760 --> 00:53:06,160
where we re where we worked with the

1182
00:53:06,160 --> 00:53:09,119
cities they applied the city applied

1183
00:53:09,119 --> 00:53:11,359
directly for that grant because they're

1184
00:53:11,359 --> 00:53:14,079
the owners. They own those buildings.

1185
00:53:14,079 --> 00:53:15,920
But in this case, the library owns the

1186
00:53:15,920 --> 00:53:21,359
H&G building and um and and it's a

1187
00:53:21,359 --> 00:53:24,160
reimbursement. So as the library spends

1188
00:53:24,160 --> 00:53:27,359
the funds, we can then draw down the the

1189
00:53:27,359 --> 00:53:29,839
funding from on a reimbursement basis

1190
00:53:29,839 --> 00:53:32,240
from this from the state. And so this

1191
00:53:32,240 --> 00:53:35,040
year we received $900,000

1192
00:53:35,040 --> 00:53:38,800
um from those grant funds.

1193
00:53:38,800 --> 00:53:40,800
Um,

1194
00:53:40,800 --> 00:53:44,160
and also,

1195
00:53:44,160 --> 00:53:46,559
uh, interest earned on our pulled cash

1196
00:53:46,559 --> 00:53:50,240
was $200,000 greater than anticipated as

1197
00:53:50,240 --> 00:53:53,119
well. The markets are doing well. Um,

1198
00:53:53,119 --> 00:53:55,520
and therefore, we're we're experiencing

1199
00:53:55,520 --> 00:53:59,440
that. Also, we receive PEG funds from

1200
00:53:59,440 --> 00:54:04,079
the city of Santa Rosa. Those are

1201
00:54:04,079 --> 00:54:08,800
funds that um are received because of uh

1202
00:54:08,800 --> 00:54:13,040
the city's relationship with um

1203
00:54:13,040 --> 00:54:16,000
contracts and agreements and they're

1204
00:54:16,000 --> 00:54:20,480
called right use of rights with Comcast

1205
00:54:20,480 --> 00:54:24,400
for example. Um and so you can use these

1206
00:54:24,400 --> 00:54:27,040
funds for

1207
00:54:27,040 --> 00:54:28,640
education

1208
00:54:28,640 --> 00:54:33,760
and um yeah educational reasons and the

1209
00:54:33,760 --> 00:54:37,440
city has provided some of those funds to

1210
00:54:37,440 --> 00:54:41,440
the library and the library uses them at

1211
00:54:41,440 --> 00:54:44,079
um the libraries that are located within

1212
00:54:44,079 --> 00:54:47,920
Santa City of Santa Rosa. They include

1213
00:54:47,920 --> 00:54:52,640
um studios, recording studios, cameras.

1214
00:54:52,640 --> 00:54:56,160
There's uh definitely one at Central and

1215
00:54:56,160 --> 00:54:59,920
I just saw the one at at Rinkan Valley.

1216
00:54:59,920 --> 00:55:02,480
Uh amazing resource. [snorts]

1217
00:55:02,480 --> 00:55:05,920
Um so some of those funds came in in

1218
00:55:05,920 --> 00:55:08,240
August, so we'll need to update our

1219
00:55:08,240 --> 00:55:12,400
revenues, but um uh that is recorded in

1220
00:55:12,400 --> 00:55:17,119
other revenue. Um

1221
00:55:17,119 --> 00:55:19,119
and so what's all what else is in other

1222
00:55:19,119 --> 00:55:22,400
revenue is a combination of donations

1223
00:55:22,400 --> 00:55:25,680
um you know our photo copies

1224
00:55:25,680 --> 00:55:28,800
um we do have a heavy use of photo

1225
00:55:28,800 --> 00:55:32,240
copies um here at the library and people

1226
00:55:32,240 --> 00:55:36,160
are using them because they get $5 a day

1227
00:55:36,160 --> 00:55:39,440
plus they they spend more and I if you

1228
00:55:39,440 --> 00:55:42,480
we've um the commission approved a rate

1229
00:55:42,480 --> 00:55:45,599
increase And even at that rate, it's

1230
00:55:45,599 --> 00:55:47,280
still

1231
00:55:47,280 --> 00:55:50,000
a better rate than in, you know, FedEx

1232
00:55:50,000 --> 00:55:52,799
or some Staples.

1233
00:55:52,799 --> 00:55:55,599
Um, and we also do community room

1234
00:55:55,599 --> 00:56:00,160
rentals and, uh, patrons pay the library

1235
00:56:00,160 --> 00:56:05,589
for any damaged or lost materials.

1236
00:56:05,599 --> 00:56:10,230
Any questions on revenue?

1237
00:56:10,240 --> 00:56:13,040
about the whole report just the revenue

1238
00:56:13,040 --> 00:56:15,760
piece.

1239
00:56:15,760 --> 00:56:19,109
>> I had one about the that same uh row

1240
00:56:19,109 --> 00:56:19,119
» I had one about the that same uh row

1241
00:56:19,119 --> 00:56:21,359
with the interest income for September

1242
00:56:21,359 --> 00:56:24,400
and February. It shows it as negative.

1243
00:56:24,400 --> 00:56:25,359
How does that happen?

1244
00:56:25,359 --> 00:56:28,230
>> Oh, it's a zero. It's it's zero. It's

1245
00:56:28,230 --> 00:56:28,240
» Oh, it's a zero. It's it's zero. It's

1246
00:56:28,240 --> 00:56:31,760
blank. Um interest is posted quarterly.

1247
00:56:31,760 --> 00:56:33,599
So,

1248
00:56:33,599 --> 00:56:36,319
the quarter ends at the end of

1249
00:56:36,319 --> 00:56:39,040
September, so it's posted in October.

1250
00:56:39,040 --> 00:56:43,510
>> Thank you. so on and so forth. Yeah.

1251
00:56:43,520 --> 00:56:46,799
Okay. I'll move into the expenditures

1252
00:56:46,799 --> 00:56:50,319
which is the latter half of this page.

1253
00:56:50,319 --> 00:56:54,160
And again we have the budgeted uh

1254
00:56:54,160 --> 00:56:57,599
expenditures here in the green. We have

1255
00:56:57,599 --> 00:57:02,799
our unodudited yeartoate those. So this

1256
00:57:02,799 --> 00:57:05,920
column here are actuals. what actually

1257
00:57:05,920 --> 00:57:09,520
was spent and money out the door. We

1258
00:57:09,520 --> 00:57:12,079
also have this column of encumbrances

1259
00:57:12,079 --> 00:57:16,880
which is new this year. It is a way for

1260
00:57:16,880 --> 00:57:20,799
further budget control and planning for

1261
00:57:20,799 --> 00:57:23,040
the library.

1262
00:57:23,040 --> 00:57:27,839
Um, Katherine was uh instrumental in

1263
00:57:27,839 --> 00:57:32,240
working with the county to uh

1264
00:57:32,240 --> 00:57:35,200
give us the the the authority to use the

1265
00:57:35,200 --> 00:57:37,359
encumbrance module in our financial

1266
00:57:37,359 --> 00:57:38,880
system.

1267
00:57:38,880 --> 00:57:43,520
Um so I will tell you for example here

1268
00:57:43,520 --> 00:57:46,960
um I would say

1269
00:57:46,960 --> 00:57:51,510
so we know that in

1270
00:57:51,520 --> 00:57:54,880
let's see we start with other contract

1271
00:57:54,880 --> 00:57:58,880
services we've spent 79

1272
00:57:58,880 --> 00:58:02,720
791,000 approximately actuals plus we

1273
00:58:02,720 --> 00:58:06,319
have encumbered or set aside

1274
00:58:06,319 --> 00:58:09,119
$38,000

1275
00:58:09,119 --> 00:58:11,359
for a to if when you add those two up

1276
00:58:11,359 --> 00:58:13,599
you have 830,000.

1277
00:58:13,599 --> 00:58:16,079
What does this encumbrance rep

1278
00:58:16,079 --> 00:58:17,599
represent?

1279
00:58:17,599 --> 00:58:20,720
are we may have contract. We when we

1280
00:58:20,720 --> 00:58:22,480
receive a contract and let's say the

1281
00:58:22,480 --> 00:58:25,359
contract is $100,000, but we know we're

1282
00:58:25,359 --> 00:58:28,319
only going to we plan on spending that

1283
00:58:28,319 --> 00:58:30,720
amount, but

1284
00:58:30,720 --> 00:58:33,359
out of all the contracts that we have,

1285
00:58:33,359 --> 00:58:38,720
we did not spend the full um the full

1286
00:58:38,720 --> 00:58:41,200
amount on those contracts, but we know

1287
00:58:41,200 --> 00:58:44,160
that we're on the hook for them. And the

1288
00:58:44,160 --> 00:58:48,000
encumbrance allows us to roll that those

1289
00:58:48,000 --> 00:58:50,000
funds over to the next fiscal year

1290
00:58:50,000 --> 00:58:51,920
because we know we're going to pay from

1291
00:58:51,920 --> 00:58:53,599
in those contracts.

1292
00:58:53,599 --> 00:58:55,270
>> What's an example of that? When there's

1293
00:58:55,270 --> 00:58:55,280
» What's an example of that? When there's

1294
00:58:55,280 --> 00:58:59,680
a contract, you don't use it all,

1295
00:58:59,680 --> 00:59:02,640
but then you have to use it.

1296
00:59:02,640 --> 00:59:04,309
>> So I can give an example. So for

1297
00:59:04,309 --> 00:59:04,319
» So I can give an example. So for

1298
00:59:04,319 --> 00:59:07,520
example, we have this FFN contract with

1299
00:59:07,520 --> 00:59:09,599
uh Jason Architecture for the new

1300
00:59:09,599 --> 00:59:12,319
Rosland library. So we opened that

1301
00:59:12,319 --> 00:59:15,359
contract in pre in the previous fiscal

1302
00:59:15,359 --> 00:59:18,799
year but um you know one payment was

1303
00:59:18,799 --> 00:59:21,839
made in 2526 but most of it is going to

1304
00:59:21,839 --> 00:59:25,520
be made in 2627. So we encumber the

1305
00:59:25,520 --> 00:59:28,559
total amount which is about $44,000

1306
00:59:28,559 --> 00:59:30,640
in the previous fiscal year but we only

1307
00:59:30,640 --> 00:59:33,200
spent say 12,000 that means we carry

1308
00:59:33,200 --> 00:59:35,599
over the balance into the next fiscal

1309
00:59:35,599 --> 00:59:40,789
year.

1310
00:59:40,799 --> 00:59:45,280
Um okay. So and then we have other the

1311
00:59:45,280 --> 00:59:49,440
other um large item here and I think I

1312
00:59:49,440 --> 00:59:53,760
have that uh explained. Um so for

1313
00:59:53,760 --> 00:59:55,520
example

1314
00:59:55,520 --> 00:59:59,920
uh oh

1315
00:59:59,920 --> 01:00:01,680
yeah

1316
01:00:01,680 --> 01:00:04,160
those are those are also like a

1317
01:00:04,160 --> 01:00:08,960
professional development um funds. the

1318
01:00:08,960 --> 01:00:13,599
in the labor memorandum of understanding

1319
01:00:13,599 --> 01:00:16,240
employees receive a certain amount of

1320
01:00:16,240 --> 01:00:17,599
funds for their professional

1321
01:00:17,599 --> 01:00:20,240
development. Um and if they don't use

1322
01:00:20,240 --> 01:00:23,280
them in that fis that fiscal year they

1323
01:00:23,280 --> 01:00:26,880
roll over. So they do accumulate

1324
01:00:26,880 --> 01:00:33,680
um and we budget for them and um so if

1325
01:00:33,680 --> 01:00:36,720
they're not used in this fiscal year uh

1326
01:00:36,720 --> 01:00:39,359
we h we end up with a savings. So that's

1327
01:00:39,359 --> 01:00:44,799
what's happening there. Um the

1328
01:00:44,799 --> 01:00:47,440
so yeah I'm going down here but I wanted

1329
01:00:47,440 --> 01:00:52,559
to also point out um under salaries and

1330
01:00:52,559 --> 01:00:57,599
benefits we spent a total of 32.331

1331
01:00:57,599 --> 01:01:01,599
million and that was um we did have a

1332
01:01:01,599 --> 01:01:04,480
savings of $240,000

1333
01:01:04,480 --> 01:01:11,670
there over here. Um

1334
01:01:11,680 --> 01:01:16,720
this in so the commission the all the

1335
01:01:16,720 --> 01:01:18,319
negotiations

1336
01:01:18,319 --> 01:01:22,480
did were were completed late in the

1337
01:01:22,480 --> 01:01:26,400
fiscal year and so the

1338
01:01:26,400 --> 01:01:30,640
commission adopted the newou in August

1339
01:01:30,640 --> 01:01:34,880
but it was retroactive to January. So

1340
01:01:34,880 --> 01:01:37,520
all of those costs were paid out in this

1341
01:01:37,520 --> 01:01:39,920
fiscal year. So they were recorded in

1342
01:01:39,920 --> 01:01:44,480
this fiscal year. Um and um but as you

1343
01:01:44,480 --> 01:01:48,000
can see, I think a $240,000 is a modest

1344
01:01:48,000 --> 01:01:52,960
savings. Um but it it it um we did in

1345
01:01:52,960 --> 01:01:56,319
the midyear re request an increase in

1346
01:01:56,319 --> 01:02:01,040
those costs um to reflect um those C

1347
01:02:01,040 --> 01:02:05,349
cola uh increases.

1348
01:02:05,359 --> 01:02:08,390
Okay.

1349
01:02:08,400 --> 01:02:12,470
Any questions so far?

1350
01:02:12,480 --> 01:02:14,000
I'd like to just take you back for a

1351
01:02:14,000 --> 01:02:15,680
quick thing. You're you're talking about

1352
01:02:15,680 --> 01:02:18,960
the county. Um again, the old under the

1353
01:02:18,960 --> 01:02:20,640
old arrangement the county we were

1354
01:02:20,640 --> 01:02:22,240
connect the library is connected to the

1355
01:02:22,240 --> 01:02:25,040
county. So when when Merida talks about

1356
01:02:25,040 --> 01:02:26,880
what the work the county does for us

1357
01:02:26,880 --> 01:02:30,559
now, they are like hired to do. Do we

1358
01:02:30,559 --> 01:02:33,760
call it fiscal or fiscal agent?

1359
01:02:33,760 --> 01:02:35,910
>> No, they're

1360
01:02:35,910 --> 01:02:35,920
» No, they're

1361
01:02:35,920 --> 01:02:38,319
they they're just they just provide

1362
01:02:38,319 --> 01:02:39,680
accounting services.

1363
01:02:39,680 --> 01:02:41,670
>> Accounting service. So we're paying them

1364
01:02:41,670 --> 01:02:41,680
» Accounting service. So we're paying them

1365
01:02:41,680 --> 01:02:43,119
as though we would pay, you know,

1366
01:02:43,119 --> 01:02:43,990
>> a consultant,

1367
01:02:43,990 --> 01:02:44,000
» a consultant,

1368
01:02:44,000 --> 01:02:45,109
>> somebody else,

1369
01:02:45,109 --> 01:02:45,119
» somebody else,

1370
01:02:45,119 --> 01:02:48,230
>> but but they're, you know, not working.

1371
01:02:48,230 --> 01:02:48,240
» but but they're, you know, not working.

1372
01:02:48,240 --> 01:02:50,160
We're not, you know, part of that. you

1373
01:02:50,160 --> 01:02:51,760
know, still we're separated from the

1374
01:02:51,760 --> 01:02:53,280
county and I don't know.

1375
01:02:53,280 --> 01:02:56,630
>> Yeah. So the county

1376
01:02:56,630 --> 01:02:56,640
» Yeah. So the county

1377
01:02:56,640 --> 01:03:00,160
uh in the auditor controllers treasurer

1378
01:03:00,160 --> 01:03:04,000
tax collector's office headed by uh Eric

1379
01:03:04,000 --> 01:03:09,599
Roger, they have a team that provides

1380
01:03:09,599 --> 01:03:14,160
accounting services to special districts

1381
01:03:14,160 --> 01:03:17,039
because at some point in their his in

1382
01:03:17,039 --> 01:03:19,680
the history of the county there there

1383
01:03:19,680 --> 01:03:22,160
are spe there are districts that are

1384
01:03:22,160 --> 01:03:25,039
much smaller than we are uh much more

1385
01:03:25,039 --> 01:03:29,440
focus narrow in their focus and uh you

1386
01:03:29,440 --> 01:03:34,400
know it with um the expertise within the

1387
01:03:34,400 --> 01:03:39,280
the audit auditor controllers's office

1388
01:03:39,280 --> 01:03:40,640
you have expertise but you have

1389
01:03:40,640 --> 01:03:43,520
economies of scale. So, this one team

1390
01:03:43,520 --> 01:03:47,520
that we work with, they serve several

1391
01:03:47,520 --> 01:03:53,280
special districts and um and so we they

1392
01:03:53,280 --> 01:03:56,640
they have an agreement with the library

1393
01:03:56,640 --> 01:03:59,920
and and the auditor controller office.

1394
01:03:59,920 --> 01:04:04,150
>> And uh we if we were to hire that that

1395
01:04:04,150 --> 01:04:04,160
» And uh we if we were to hire that that

1396
01:04:04,160 --> 01:04:07,680
team, it would be probably triple or

1397
01:04:07,680 --> 01:04:11,280
quadruple the cost for us. Um and they

1398
01:04:11,280 --> 01:04:14,640
are they have a lot of institutional

1399
01:04:14,640 --> 01:04:18,799
knowledge of um

1400
01:04:18,799 --> 01:04:21,680
the county policies and procedures. They

1401
01:04:21,680 --> 01:04:24,799
help us prepare for our audit

1402
01:04:24,799 --> 01:04:26,799
um and throughout the year with our

1403
01:04:26,799 --> 01:04:30,960
financials. So it is a uh quite a bit of

1404
01:04:30,960 --> 01:04:34,960
a a great investment um that is very

1405
01:04:34,960 --> 01:04:38,960
much a factor in

1406
01:04:38,960 --> 01:04:41,839
um the results of our audits and the

1407
01:04:41,839 --> 01:04:46,799
results of this AAA plus um

1408
01:04:46,799 --> 01:04:50,240
uh rating that we received.

1409
01:04:50,240 --> 01:04:53,520
So we are we are separate but we we it's

1410
01:04:53,520 --> 01:04:56,799
a it's a it's a it's a contractual uh

1411
01:04:56,799 --> 01:04:58,480
arrangement

1412
01:04:58,480 --> 01:05:00,150
>> for which we pay them. Yeah.

1413
01:05:00,150 --> 01:05:00,160
» for which we pay them. Yeah.

1414
01:05:00,160 --> 01:05:02,710
>> Yes we do.

1415
01:05:02,710 --> 01:05:02,720
» Yes we do.

1416
01:05:02,720 --> 01:05:05,990
>> Um and separately we pay the county for

1417
01:05:05,990 --> 01:05:06,000
» Um and separately we pay the county for

1418
01:05:06,000 --> 01:05:09,119
using their system. So for every invoice

1419
01:05:09,119 --> 01:05:10,799
they charge us for every invoice

1420
01:05:10,799 --> 01:05:13,920
transaction that we enter we get

1421
01:05:13,920 --> 01:05:15,920
charged.

1422
01:05:15,920 --> 01:05:19,760
Um okay so where am I?

1423
01:05:19,760 --> 01:05:21,839
Okay.

1424
01:05:21,839 --> 01:05:25,270
>> Oh yeah, I asked for questions.

1425
01:05:25,270 --> 01:05:25,280
» Oh yeah, I asked for questions.

1426
01:05:25,280 --> 01:05:29,039
Capital. Okay.

1427
01:05:29,039 --> 01:05:30,710
>> Um,

1428
01:05:30,710 --> 01:05:30,720
» Um,

1429
01:05:30,720 --> 01:05:33,920
and capital

1430
01:05:33,920 --> 01:05:37,280
the total inc uh expenditures including

1431
01:05:37,280 --> 01:05:42,549
incumbrances is 5.19

1432
01:05:42,559 --> 01:05:48,000
million. So we've spent 3.15 million. We

1433
01:05:48,000 --> 01:05:53,039
have encumbered two two million and we

1434
01:05:53,039 --> 01:05:55,599
uh for a total of

1435
01:05:55,599 --> 01:05:57,839
5.19

1436
01:05:57,839 --> 01:06:03,039
million. Uh we do exceed the that the

1437
01:06:03,039 --> 01:06:06,240
budget by 279,000

1438
01:06:06,240 --> 01:06:08,799
and this reflects this and it's driven

1439
01:06:08,799 --> 01:06:12,079
by these encumbrances.

1440
01:06:12,079 --> 01:06:17,280
uh we encumbered we did make a payment.

1441
01:06:17,280 --> 01:06:19,599
So here's another uh building forward

1442
01:06:19,599 --> 01:06:23,440
grant with the city of Ronert Park. City

1443
01:06:23,440 --> 01:06:25,680
of Roner Park applied directly to the

1444
01:06:25,680 --> 01:06:30,319
state for the grant. Um and in and we

1445
01:06:30,319 --> 01:06:32,000
have an agreement the library has an

1446
01:06:32,000 --> 01:06:36,160
agreement with them that whatever

1447
01:06:36,160 --> 01:06:38,960
the there there's a match that's owed

1448
01:06:38,960 --> 01:06:42,559
and the library and the city split it

1449
01:06:42,559 --> 01:06:45,920
5050 you know 50% the library

1450
01:06:45,920 --> 01:06:47,920
contributes to the match city

1451
01:06:47,920 --> 01:06:51,920
contributes the other 50 and we were

1452
01:06:51,920 --> 01:06:56,720
invoiced 21 our total was 419

1453
01:06:56,720 --> 01:06:58,400
19,000

1454
01:06:58,400 --> 01:07:02,319
and they invoiced us for 29,000.

1455
01:07:02,319 --> 01:07:05,680
And so we still owe another 210,000.

1456
01:07:05,680 --> 01:07:08,160
When they uh finish the work, they will

1457
01:07:08,160 --> 01:07:11,119
invoice us, but that is encumbered

1458
01:07:11,119 --> 01:07:15,119
because we know we owe it. Um and then

1459
01:07:15,119 --> 01:07:17,680
also

1460
01:07:17,680 --> 01:07:24,960
the architecture work for the for the

1461
01:07:24,960 --> 01:07:27,520
new Rosland library as director to bolt

1462
01:07:27,520 --> 01:07:30,319
mentioned um that work has not been

1463
01:07:30,319 --> 01:07:35,119
completed. So we also have about 44,000

1464
01:07:35,119 --> 01:07:38,640
that is still pending of work. And so

1465
01:07:38,640 --> 01:07:41,839
those are that's what's contributing um

1466
01:07:41,839 --> 01:07:43,440
the

1467
01:07:43,440 --> 01:07:46,880
budget versus actuals when it comes to

1468
01:07:46,880 --> 01:07:49,920
our capital.

1469
01:07:49,920 --> 01:07:52,960
The encumbrances though are reflecting a

1470
01:07:52,960 --> 01:07:56,319
lot of the work at Ricon Valley. Um the

1471
01:07:56,319 --> 01:07:59,200
work started last fiscal year. We were

1472
01:07:59,200 --> 01:08:01,760
original plan was to finish within June

1473
01:08:01,760 --> 01:08:05,119
30th but as you know uh with the grand

1474
01:08:05,119 --> 01:08:07,839
opening today the work completed in this

1475
01:08:07,839 --> 01:08:10,559
new fiscal year.

1476
01:08:10,559 --> 01:08:12,799
Okay.

1477
01:08:12,799 --> 01:08:17,520
Um all right so that is the summary you

1478
01:08:17,520 --> 01:08:21,520
do have through pages um I don't have

1479
01:08:21,520 --> 01:08:26,789
what these pages are uh

1480
01:08:26,799 --> 01:08:30,159
in the packet they're attachments five

1481
01:08:30,159 --> 01:08:34,719
through um 19

1482
01:08:34,719 --> 01:08:37,679
are greater detail

1483
01:08:37,679 --> 01:08:41,120
uh by account. So you can see how much

1484
01:08:41,120 --> 01:08:44,159
we spent on office supplies, how much

1485
01:08:44,159 --> 01:08:47,279
we've spent on janitorial,

1486
01:08:47,279 --> 01:08:50,719
so on and so forth. You have two sets,

1487
01:08:50,719 --> 01:08:52,880
one for property tax and one for sales

1488
01:08:52,880 --> 01:08:56,080
tax because they are in two separate

1489
01:08:56,080 --> 01:08:58,719
funds. And that's what I mean by funds.

1490
01:08:58,719 --> 01:09:04,159
And when I said that for the um bond

1491
01:09:04,159 --> 01:09:06,159
proceeds, we're going we're creating

1492
01:09:06,159 --> 01:09:08,960
even a another fund where we'll track

1493
01:09:08,960 --> 01:09:12,640
those. So it government

1494
01:09:12,640 --> 01:09:15,359
accounting is fund accounting and we

1495
01:09:15,359 --> 01:09:17,839
have to a lot of cases we need to

1496
01:09:17,839 --> 01:09:21,600
separate the different um sources of

1497
01:09:21,600 --> 01:09:24,880
revenues in a separate fund.

1498
01:09:24,880 --> 01:09:29,359
That's why you see the two set sets of

1499
01:09:29,359 --> 01:09:32,080
detailed spreadsheets.

1500
01:09:32,080 --> 01:09:34,960
Um

1501
01:09:34,960 --> 01:09:39,440
so we in this case we uh also report on

1502
01:09:39,440 --> 01:09:43,199
a monthly basis the cash balance as you

1503
01:09:43,199 --> 01:09:46,480
can see the cash balance as of June 30th

1504
01:09:46,480 --> 01:09:50,159
uh under property tax is 21.8 8 million

1505
01:09:50,159 --> 01:09:55,520
and sales tax is 12.3 million. And um so

1506
01:09:55,520 --> 01:09:58,000
as you can see here,

1507
01:09:58,000 --> 01:10:01,120
every organization has a cycle, a

1508
01:10:01,120 --> 01:10:06,239
revenue cycle. And for property tax,

1509
01:10:06,239 --> 01:10:10,320
the it it peaks at in December 23

1510
01:10:10,320 --> 01:10:16,320
million and then in April 25 million and

1511
01:10:16,320 --> 01:10:20,239
that co that coincides with the property

1512
01:10:20,239 --> 01:10:22,159
tax bills.

1513
01:10:22,159 --> 01:10:25,679
And then for sales tax is pretty evenly

1514
01:10:25,679 --> 01:10:27,600
distributed because we do receive a

1515
01:10:27,600 --> 01:10:31,600
monthly receipt except for July and

1516
01:10:31,600 --> 01:10:33,280
August.

1517
01:10:33,280 --> 01:10:36,560
Uh we do have what we call restricted

1518
01:10:36,560 --> 01:10:40,080
funds which are donations and bequests.

1519
01:10:40,080 --> 01:10:43,520
When when a

1520
01:10:43,520 --> 01:10:46,159
when someone leaves the library a

1521
01:10:46,159 --> 01:10:50,239
bequest, they may restrict it to a

1522
01:10:50,239 --> 01:10:53,040
specific branch.

1523
01:10:53,040 --> 01:10:56,560
Um, and donations with uh friends and

1524
01:10:56,560 --> 01:10:58,159
friends of the library or the

1525
01:10:58,159 --> 01:11:02,000
foundation, they do the same. Um, so

1526
01:11:02,000 --> 01:11:05,760
that's why we call it restricted.

1527
01:11:05,760 --> 01:11:10,880
Um, okay. So, next is our fund balance.

1528
01:11:10,880 --> 01:11:15,199
And as Chair McKenzie mentioned is that

1529
01:11:15,199 --> 01:11:19,440
um we do not have that statement in this

1530
01:11:19,440 --> 01:11:22,480
uh packet because we are still working

1531
01:11:22,480 --> 01:11:25,679
through budget adjustments, closing our

1532
01:11:25,679 --> 01:11:30,239
uh projects. So that um all of those

1533
01:11:30,239 --> 01:11:33,840
figures uh have a an effect on the fund

1534
01:11:33,840 --> 01:11:38,159
balance on reducing if we used so if

1535
01:11:38,159 --> 01:11:40,640
anything that was assigned and we reduce

1536
01:11:40,640 --> 01:11:43,840
we used it we make those adjustments so

1537
01:11:43,840 --> 01:11:47,280
that we can then have a final unassigned

1538
01:11:47,280 --> 01:11:50,159
uh figure.

1539
01:11:50,159 --> 01:11:53,520
Um if you're interested, you can go back

1540
01:11:53,520 --> 01:11:56,960
to prior months um that you've received

1541
01:11:56,960 --> 01:11:59,199
and look at that fund balance statement

1542
01:11:59,199 --> 01:12:02,159
and maybe you know you'll have some

1543
01:12:02,159 --> 01:12:06,550
questions for our next meeting.

1544
01:12:06,560 --> 01:12:13,590
Um okay.

1545
01:12:13,600 --> 01:12:15,840
Wow. Yeah.

1546
01:12:15,840 --> 01:12:18,960
The next um

1547
01:12:18,960 --> 01:12:22,320
report that you see is uh voucher

1548
01:12:22,320 --> 01:12:27,199
payments over $50,000. At some point um

1549
01:12:27,199 --> 01:12:30,000
the commission wanted to receive a

1550
01:12:30,000 --> 01:12:33,679
report of any any bill any any payment

1551
01:12:33,679 --> 01:12:36,400
that was over $50,000. So this is this

1552
01:12:36,400 --> 01:12:39,910
history.

1553
01:12:39,920 --> 01:12:43,520
Any questions so far? Okay. Not a

1554
01:12:43,520 --> 01:12:46,719
surprise. We've seen all

1555
01:12:46,719 --> 01:12:51,840
the uh the next um report is other

1556
01:12:51,840 --> 01:12:55,679
contract services. that is a an account

1557
01:12:55,679 --> 01:13:01,280
that you see on your detailed sheets and

1558
01:13:01,280 --> 01:13:03,440
um

1559
01:13:03,440 --> 01:13:07,600
and and because it includes a variety of

1560
01:13:07,600 --> 01:13:11,600
of of vendors, uh the commission had in

1561
01:13:11,600 --> 01:13:14,159
some time in its history requested to

1562
01:13:14,159 --> 01:13:18,080
see a list of vendors that are

1563
01:13:18,080 --> 01:13:21,440
recorded in this account. And so there

1564
01:13:21,440 --> 01:13:24,480
you are. Any

1565
01:13:24,480 --> 01:13:26,880
questions on this?

1566
01:13:26,880 --> 01:13:30,950
>> Well, things like this list of vendors,

1567
01:13:30,950 --> 01:13:30,960
» Well, things like this list of vendors,

1568
01:13:30,960 --> 01:13:33,440
is there a reason for us to have to know

1569
01:13:33,440 --> 01:13:37,760
this or is it more or less a team that

1570
01:13:37,760 --> 01:13:40,159
wind up being nothing we need to really

1571
01:13:40,159 --> 01:13:41,360
know?

1572
01:13:41,360 --> 01:13:43,189
>> There's a couple of reports in here. I

1573
01:13:43,189 --> 01:13:43,199
» There's a couple of reports in here. I

1574
01:13:43,199 --> 01:13:44,560
was going to go through these one by one

1575
01:13:44,560 --> 01:13:47,199
but to answer that specific question uh

1576
01:13:47,199 --> 01:13:49,679
in the in prior times when there were so

1577
01:13:49,679 --> 01:13:53,040
many so much turnover and changes in CFO

1578
01:13:53,040 --> 01:13:54,719
and this and that and the other thing

1579
01:13:54,719 --> 01:13:57,040
there were some people who had concerns

1580
01:13:57,040 --> 01:13:59,440
about certain stuff and one of them as

1581
01:13:59,440 --> 01:14:01,440
you mentioned was this voucher we want

1582
01:14:01,440 --> 01:14:03,520
to see these bigger payments so that's

1583
01:14:03,520 --> 01:14:06,000
what that report is on this this could

1584
01:14:06,000 --> 01:14:08,400
be a recommendation out of our committee

1585
01:14:08,400 --> 01:14:10,159
if we wanted to I don't know if we

1586
01:14:10,159 --> 01:14:12,400
should talk to the management see if

1587
01:14:12,400 --> 01:14:14,000
they want keep the bonus. But that

1588
01:14:14,000 --> 01:14:15,520
that's where that came from. And

1589
01:14:15,520 --> 01:14:17,360
certainly this other contract services,

1590
01:14:17,360 --> 01:14:20,239
it was a big concern about I think legal

1591
01:14:20,239 --> 01:14:22,000
services or something at the time. And

1592
01:14:22,000 --> 01:14:23,520
it's kind of well, we want to see what

1593
01:14:23,520 --> 01:14:25,440
what else you're contracting with. So

1594
01:14:25,440 --> 01:14:28,880
these were came out of some uh feelings

1595
01:14:28,880 --> 01:14:31,360
that prior commissioners had about what

1596
01:14:31,360 --> 01:14:33,360
was going on. I don't think we have

1597
01:14:33,360 --> 01:14:35,280
those same kind of concerns now. I mean,

1598
01:14:35,280 --> 01:14:38,320
you bring up a good point. So whether um

1599
01:14:38,320 --> 01:14:43,600
we want to continue to ask these be

1600
01:14:43,600 --> 01:14:46,000
prepared, you know, is something that we

1601
01:14:46,000 --> 01:14:47,440
should discuss when we're at full

1602
01:14:47,440 --> 01:14:50,239
strength and have to look at stuff. I

1603
01:14:50,239 --> 01:14:51,520
was going to kind of go through all of

1604
01:14:51,520 --> 01:14:53,280
these because from a commissioner

1605
01:14:53,280 --> 01:14:54,800
standpoint, there's certain things that

1606
01:14:54,800 --> 01:14:56,800
we should that we focus on that'll make

1607
01:14:56,800 --> 01:14:58,480
your life a little easier. I don't want

1608
01:14:58,480 --> 01:15:00,400
you to think that, you know, be

1609
01:15:00,400 --> 01:15:02,719
discouraged by this because, you know,

1610
01:15:02,719 --> 01:15:05,520
it's a lot of stuff and, you know, we

1611
01:15:05,520 --> 01:15:07,199
look at things differently on the

1612
01:15:07,199 --> 01:15:09,360
quarter and we look at things different

1613
01:15:09,360 --> 01:15:11,280
at the end of the year, but on a monthly

1614
01:15:11,280 --> 01:15:13,199
basis, we're looking at a more

1615
01:15:13,199 --> 01:15:15,440
streamlined

1616
01:15:15,440 --> 01:15:18,480
uh, you know, outlook. And I really

1617
01:15:18,480 --> 01:15:20,400
appreciate Merida's efforts to, you

1618
01:15:20,400 --> 01:15:21,840
know, walk us through this kind of

1619
01:15:21,840 --> 01:15:23,920
detail, but you're hitting deep detail

1620
01:15:23,920 --> 01:15:26,800
today that you won't necessarily have,

1621
01:15:26,800 --> 01:15:28,960
you know, every month to to look up.

1622
01:15:28,960 --> 01:15:31,270
>> Yeah. And I can um answer part of the

1623
01:15:31,270 --> 01:15:31,280
» Yeah. And I can um answer part of the

1624
01:15:31,280 --> 01:15:33,040
question. So, you know, there are

1625
01:15:33,040 --> 01:15:34,480
certain, you know, we have certain line

1626
01:15:34,480 --> 01:15:37,440
items in each of our department budgets

1627
01:15:37,440 --> 01:15:40,800
and I think we we can't provide um a

1628
01:15:40,800 --> 01:15:44,480
level of detail because some of the um

1629
01:15:44,480 --> 01:15:46,400
some of the items are kind of very broad

1630
01:15:46,400 --> 01:15:48,159
in general and so other contract

1631
01:15:48,159 --> 01:15:50,320
services that appears in all of the

1632
01:15:50,320 --> 01:15:52,960
departments and I think there was a like

1633
01:15:52,960 --> 01:15:54,560
commissioner McKenzie said that there

1634
01:15:54,560 --> 01:15:57,600
was a concern that things were being

1635
01:15:57,600 --> 01:16:00,640
kind of hidden in that uh and so this is

1636
01:16:00,640 --> 01:16:03,600
what was the result of that. So, just to

1637
01:16:03,600 --> 01:16:05,760
see and if you ever have any questions

1638
01:16:05,760 --> 01:16:08,159
about, you know, what these are for, you

1639
01:16:08,159 --> 01:16:10,320
know, we can certainly answer them. Um,

1640
01:16:10,320 --> 01:16:12,239
but it does comprise a variety of

1641
01:16:12,239 --> 01:16:13,679
different, it's mostly professional

1642
01:16:13,679 --> 01:16:16,080
services. So, you know, we hire a

1643
01:16:16,080 --> 01:16:17,760
strategic planner that goes in other

1644
01:16:17,760 --> 01:16:20,080
contract services. We hire an executive

1645
01:16:20,080 --> 01:16:21,600
coach that goes in other contract

1646
01:16:21,600 --> 01:16:24,640
services. our translation with Barbie.

1647
01:16:24,640 --> 01:16:28,239
Um some of our um our other uh you know

1648
01:16:28,239 --> 01:16:30,719
HR our fingerprinting goes in other

1649
01:16:30,719 --> 01:16:32,239
contract services. So it's kind of a

1650
01:16:32,239 --> 01:16:34,800
catchall place where these professional

1651
01:16:34,800 --> 01:16:37,199
services that we contract out for uh

1652
01:16:37,199 --> 01:16:40,550
exist.

1653
01:16:40,560 --> 01:16:42,960
» I I would like to add that it's not

1654
01:16:42,960 --> 01:16:45,760
unusual. It is a common practice in or

1655
01:16:45,760 --> 01:16:48,880
in uh reporting out in in transparency

1656
01:16:48,880 --> 01:16:50,800
and communication

1657
01:16:50,800 --> 01:16:55,199
uh with uh the governing board. So it's

1658
01:16:55,199 --> 01:16:58,880
not unusual this have this level of

1659
01:16:58,880 --> 01:17:00,239
detail.

1660
01:17:00,239 --> 01:17:01,910
>> Well, that's good to know. It's always

1661
01:17:01,910 --> 01:17:01,920
» Well, that's good to know. It's always

1662
01:17:01,920 --> 01:17:04,000
better to have it. You know, you don't

1663
01:17:04,000 --> 01:17:05,600
have to look at it, but you have it. And

1664
01:17:05,600 --> 01:17:08,400
you I appreciate your point of is it

1665
01:17:08,400 --> 01:17:10,880
extra work, but it is like set up. No,

1666
01:17:10,880 --> 01:17:12,950
>> right. I mean those are no it's it's a

1667
01:17:12,950 --> 01:17:12,960
» right. I mean those are no it's it's a

1668
01:17:12,960 --> 01:17:18,870
good practice I would say

1669
01:17:18,880 --> 01:17:20,480
okay

1670
01:17:20,480 --> 01:17:25,669
um

1671
01:17:25,679 --> 01:17:29,120
if you do you have any qu did um chair

1672
01:17:29,120 --> 01:17:30,960
McKenzie did you want to go over any

1673
01:17:30,960 --> 01:17:33,440
other specifics because I'm towards the

1674
01:17:33,440 --> 01:17:35,760
end that I was going to wrap up but if

1675
01:17:35,760 --> 01:17:37,920
you had any other questions on other

1676
01:17:37,920 --> 01:17:40,480
reports go over that I don't have any

1677
01:17:40,480 --> 01:17:42,960
more questions questions. Do any of you

1678
01:17:42,960 --> 01:17:47,920
any either excuse me

1679
01:17:47,920 --> 01:17:51,440
have any questions about um I would say

1680
01:17:51,440 --> 01:17:57,280
it's the first four pages of our

1681
01:17:57,280 --> 01:18:08,950
after that

1682
01:18:08,960 --> 01:18:12,790
Step out.

1683
01:18:12,800 --> 01:18:27,110
» We can just take a pause.

1684
01:18:27,120 --> 01:18:29,120
Unless Eve or Kimberly, you have a

1685
01:18:29,120 --> 01:18:32,080
question just about, you know, the forms

1686
01:18:32,080 --> 01:18:34,560
in general.

1687
01:18:34,560 --> 01:18:37,440
No, I you know I was looking in the

1688
01:18:37,440 --> 01:18:39,280
wrong place and I got a little lost on

1689
01:18:39,280 --> 01:18:41,280
this page, but I'm just going to look at

1690
01:18:41,280 --> 01:18:43,920
it and think about it after the meeting.

1691
01:18:43,920 --> 01:18:48,159
If I still have a question, I'll call

1692
01:18:48,159 --> 01:18:49,040
you

1693
01:18:49,040 --> 01:18:51,830
>> and it it takes time to

1694
01:18:51,830 --> 01:18:51,840
» and it it takes time to

1695
01:18:51,840 --> 01:18:54,630
>> it takes time to to get to know all

1696
01:18:54,630 --> 01:18:54,640
» it takes time to to get to know all

1697
01:18:54,640 --> 01:18:55,040
these

1698
01:18:55,040 --> 01:18:56,390
>> also.

1699
01:18:56,390 --> 01:18:56,400
» also.

1700
01:18:56,400 --> 01:19:04,950
I was following for a little while.

1701
01:19:04,960 --> 01:19:06,800
» I'm sorry. I sw something went down

1702
01:19:06,800 --> 01:19:08,320
wrong. And

1703
01:19:08,320 --> 01:19:13,270
>> anyway, where are we?

1704
01:19:13,280 --> 01:19:14,480
» We're wrapping it up.

1705
01:19:14,480 --> 01:19:17,350
>> Wrapping it up.

1706
01:19:17,350 --> 01:19:17,360
» Wrapping it up.

1707
01:19:17,360 --> 01:19:20,880
So anyway, let me go back to the top

1708
01:19:20,880 --> 01:19:24,080
page here, the summary. So you're going

1709
01:19:24,080 --> 01:19:26,640
to see that once a year. This is the

1710
01:19:26,640 --> 01:19:30,000
year in sum. Next month you'll see that

1711
01:19:30,000 --> 01:19:32,960
month's information.

1712
01:19:32,960 --> 01:19:34,640
One of the things that I found helpful

1713
01:19:34,640 --> 01:19:39,120
in the last while is the percentages.

1714
01:19:39,120 --> 01:19:42,000
A way to kind of guide to for your own

1715
01:19:42,000 --> 01:19:44,080
benefit like where we are in our

1716
01:19:44,080 --> 01:19:46,159
expenditures

1717
01:19:46,159 --> 01:19:48,320
and if it's the first month that would

1718
01:19:48,320 --> 01:19:51,440
be is it 12%.

1719
01:19:51,440 --> 01:19:54,159
No, that's not

1720
01:19:54,159 --> 01:19:55,440
112

1721
01:19:55,440 --> 01:20:00,709
>> 112.

1722
01:20:00,719 --> 01:20:05,030
» It's what?

1723
01:20:05,040 --> 01:20:06,880
» But as we go along, it's kind of an easy

1724
01:20:06,880 --> 01:20:08,719
way you can check and monitor. And

1725
01:20:08,719 --> 01:20:10,960
again, we're in just so much better

1726
01:20:10,960 --> 01:20:13,600
shape. [clears throat] It's so much more

1727
01:20:13,600 --> 01:20:16,000
clear where we are. But that'll you'll

1728
01:20:16,000 --> 01:20:17,520
see that next month.

1729
01:20:17,520 --> 01:20:20,630
>> Yeah. So then a whole in the summary

1730
01:20:20,630 --> 01:20:20,640
» Yeah. So then a whole in the summary

1731
01:20:20,640 --> 01:20:23,520
cover page. salaries and benefits. You

1732
01:20:23,520 --> 01:20:26,960
look at total effective budget, we spent

1733
01:20:26,960 --> 01:20:29,600
93 993%

1734
01:20:29,600 --> 01:20:31,679
of the budget,

1735
01:20:31,679 --> 01:20:33,590
>> which is pretty darn good budgeting.

1736
01:20:33,590 --> 01:20:33,600
» which is pretty darn good budgeting.

1737
01:20:33,600 --> 01:20:35,110
>> So on and so.

1738
01:20:35,110 --> 01:20:35,120
» So on and so.

1739
01:20:35,120 --> 01:20:36,790
>> Yeah.

1740
01:20:36,790 --> 01:20:36,800
» Yeah.

1741
01:20:36,800 --> 01:20:38,080
And again, next month you're going to

1742
01:20:38,080 --> 01:20:40,400
see one month's worth.

1743
01:20:40,400 --> 01:20:43,120
Um, but it's also September, so it's a

1744
01:20:43,120 --> 01:20:44,719
quarter. So we are going to have all

1745
01:20:44,719 --> 01:20:45,760
these reports.

1746
01:20:45,760 --> 01:20:47,669
>> September quarterly. You'll see in

1747
01:20:47,669 --> 01:20:47,679
» September quarterly. You'll see in

1748
01:20:47,679 --> 01:20:48,000
October.

1749
01:20:48,000 --> 01:20:50,390
>> Oh, okay. I'll get October.

1750
01:20:50,390 --> 01:20:50,400
» Oh, okay. I'll get October.

1751
01:20:50,400 --> 01:20:52,480
The second page, the cash balance

1752
01:20:52,480 --> 01:20:54,719
summary. The most interesting thing on

1753
01:20:54,719 --> 01:20:58,560
this to me is that uh this has all these

1754
01:20:58,560 --> 01:21:00,960
details of these individual bequests.

1755
01:21:00,960 --> 01:21:03,199
This has all been cleaned up enormously

1756
01:21:03,199 --> 01:21:07,120
by our wonderful staff who this used to

1757
01:21:07,120 --> 01:21:10,239
be a kind of big mush mish mash and this

1758
01:21:10,239 --> 01:21:13,280
has all um been identified by the

1759
01:21:13,280 --> 01:21:16,960
individual donors and so forth. Um the

1760
01:21:16,960 --> 01:21:19,520
voucher thing again what I always look

1761
01:21:19,520 --> 01:21:23,040
at is just that top month the latest one

1762
01:21:23,040 --> 01:21:24,640
you've got the whole year but you know

1763
01:21:24,640 --> 01:21:26,400
the top one is what you want to look at

1764
01:21:26,400 --> 01:21:29,040
so you don't have to spend you know a

1765
01:21:29,040 --> 01:21:31,360
lot of time on that report the contract

1766
01:21:31,360 --> 01:21:33,360
services are is you know interesting

1767
01:21:33,360 --> 01:21:35,360
again to just to keep an eye on things

1768
01:21:35,360 --> 01:21:37,520
and then you get into these details it's

1769
01:21:37,520 --> 01:21:39,679
for us to have but we don't spend a lot

1770
01:21:39,679 --> 01:21:41,199
of time in the finance committee going

1771
01:21:41,199 --> 01:21:43,120
over any of that except if anybody has

1772
01:21:43,120 --> 01:21:46,560
any questions. So anyway, I don't want

1773
01:21:46,560 --> 01:21:50,000
you to feel, you know, bogged down in in

1774
01:21:50,000 --> 01:21:53,760
reporting when we come here. Um,

1775
01:21:53,760 --> 01:21:57,199
I think that's all I was going to say

1776
01:21:57,199 --> 01:22:02,070
about that.

1777
01:22:02,080 --> 01:22:04,480
This this final uh page here, I don't

1778
01:22:04,480 --> 01:22:06,159
know what this my pages aren't numbered,

1779
01:22:06,159 --> 01:22:08,000
so I'm not sure what to call this. The

1780
01:22:08,000 --> 01:22:10,480
allocation of actual expenditures.

1781
01:22:10,480 --> 01:22:15,110
>> Yeah. So this report I like to show have

1782
01:22:15,110 --> 01:22:15,120
» Yeah. So this report I like to show have

1783
01:22:15,120 --> 01:22:16,800
a policy

1784
01:22:16,800 --> 01:22:20,709
of

1785
01:22:20,719 --> 01:22:24,080
we we have a policy

1786
01:22:24,080 --> 01:22:29,360
allocation of major revenues where um

1787
01:22:29,360 --> 01:22:34,480
it provides guidance to staff on how to

1788
01:22:34,480 --> 01:22:38,480
I primarily use it for uh formulating

1789
01:22:38,480 --> 01:22:43,280
the budget And um and so we know how

1790
01:22:43,280 --> 01:22:45,520
what percentage uh what percentage of

1791
01:22:45,520 --> 01:22:47,760
the expenditures

1792
01:22:47,760 --> 01:22:51,120
are allocated to

1793
01:22:51,120 --> 01:22:55,840
property tax and to sales tax and um and

1794
01:22:55,840 --> 01:22:58,000
so at the end of the or on a quarterly

1795
01:22:58,000 --> 01:23:00,400
basis but

1796
01:23:00,400 --> 01:23:05,360
uh here and year end um if you look at

1797
01:23:05,360 --> 01:23:08,159
the actual expenditures okay and I do

1798
01:23:08,159 --> 01:23:10,239
say does not include the incumbrance but

1799
01:23:10,239 --> 01:23:13,520
just actuals what has been out the door.

1800
01:23:13,520 --> 01:23:15,600
Um

1801
01:23:15,600 --> 01:23:18,880
we know through the

1802
01:23:18,880 --> 01:23:22,639
the policy that expenditures

1803
01:23:22,639 --> 01:23:26,480
capital expenditures are allocated 10%

1804
01:23:26,480 --> 01:23:31,199
to property tax and 90% to sales tax. So

1805
01:23:31,199 --> 01:23:34,719
basically this chart is a summary of uh

1806
01:23:34,719 --> 01:23:38,639
how much was spent in property tax, how

1807
01:23:38,639 --> 01:23:41,120
much was spent in sales tax and then

1808
01:23:41,120 --> 01:23:44,880
gives you the the split and it should

1809
01:23:44,880 --> 01:23:48,239
match the budget on how the budget was

1810
01:23:48,239 --> 01:23:51,360
adopted. Um

1811
01:23:51,360 --> 01:23:54,800
so we have uh the first two charts uh

1812
01:23:54,800 --> 01:23:57,679
show the serviceoriented divisions. Uh

1813
01:23:57,679 --> 01:24:02,400
we the policy states that um capital is

1814
01:24:02,400 --> 01:24:06,719
10% to property tax, 90% to sales tax.

1815
01:24:06,719 --> 01:24:09,840
It uh it pro gives us a range on

1816
01:24:09,840 --> 01:24:13,440
salaries, services and other charges. So

1817
01:24:13,440 --> 01:24:15,760
when the budget was adopted, the

1818
01:24:15,760 --> 01:24:19,679
percentage to property tax was 62% and

1819
01:24:19,679 --> 01:24:23,840
38% to sales tax.

1820
01:24:23,840 --> 01:24:26,320
Under administration divisions, the

1821
01:24:26,320 --> 01:24:29,920
policy is a little is more strict. Um,

1822
01:24:29,920 --> 01:24:33,440
it states that the property tax pays 90%

1823
01:24:33,440 --> 01:24:36,239
of those expenditures and sales tax pays

1824
01:24:36,239 --> 01:24:38,880
10% of those expenditures.

1825
01:24:38,880 --> 01:24:42,639
But when we add them all up, the the uh

1826
01:24:42,639 --> 01:24:44,639
all the divisions together is the LA is

1827
01:24:44,639 --> 01:24:49,600
the third col um chart. And um and then

1828
01:24:49,600 --> 01:24:52,000
I give you it essentially all blended

1829
01:24:52,000 --> 01:24:54,159
together. The property tax has picked up

1830
01:24:54,159 --> 01:25:01,189
62% of expenditures and sales tax 38%.

1831
01:25:01,199 --> 01:25:03,520
» This was a real important, you know,

1832
01:25:03,520 --> 01:25:05,920
kind of bottom line thing like in terms

1833
01:25:05,920 --> 01:25:07,840
of our funding, right? It's really nice

1834
01:25:07,840 --> 01:25:10,960
to see that 6238 because sometimes we'd

1835
01:25:10,960 --> 01:25:13,360
say two 2/3 one whatever. I mean, this

1836
01:25:13,360 --> 01:25:15,520
is a real number and I'd like to add a

1837
01:25:15,520 --> 01:25:18,480
tiny bit of background here. Before

1838
01:25:18,480 --> 01:25:20,320
Measure Y was passed, it was all

1839
01:25:20,320 --> 01:25:22,960
property tax. When Measure Y was passed,

1840
01:25:22,960 --> 01:25:25,199
it was passed with an expenditure plan.

1841
01:25:25,199 --> 01:25:27,280
So, the public was told, "This is what

1842
01:25:27,280 --> 01:25:29,199
we're going to spend your money on." And

1843
01:25:29,199 --> 01:25:34,159
it wasn't to take away uh some book

1844
01:25:34,159 --> 01:25:35,679
budget to spend it for something else

1845
01:25:35,679 --> 01:25:37,679
and then supplement it with measure Y.

1846
01:25:37,679 --> 01:25:39,199
It was supposed to be an additional

1847
01:25:39,199 --> 01:25:42,159
amount. And so for several years we went

1848
01:25:42,159 --> 01:25:44,480
through this kind of a very hazy period

1849
01:25:44,480 --> 01:25:47,600
where it really wasn't clear the

1850
01:25:47,600 --> 01:25:49,840
allocation of the pro of the measure Y

1851
01:25:49,840 --> 01:25:51,760
money and again going through several

1852
01:25:51,760 --> 01:25:55,120
CFOs was very blurry whatever and then

1853
01:25:55,120 --> 01:25:57,760
America came along and understood that

1854
01:25:57,760 --> 01:25:59,920
we really had to have a policy a written

1855
01:25:59,920 --> 01:26:01,600
policy what percent well how the heck do

1856
01:26:01,600 --> 01:26:03,600
you figure that out but she came up with

1857
01:26:03,600 --> 01:26:06,239
this rather brilliant plan of looking

1858
01:26:06,239 --> 01:26:08,800
back and seeing what it had

1859
01:26:08,800 --> 01:26:11,120
traditionally been and now it's a set

1860
01:26:11,120 --> 01:26:14,639
formula. It isn't exactly to the penny,

1861
01:26:14,639 --> 01:26:18,159
but the 9010 is is exact. And so we're

1862
01:26:18,159 --> 01:26:22,480
never going to spend more of our um the

1863
01:26:22,480 --> 01:26:24,239
measure Y money is going to be spent on

1864
01:26:24,239 --> 01:26:26,639
buildings, for example. Um and the and

1865
01:26:26,639 --> 01:26:29,199
the 10% will come from property tax, but

1866
01:26:29,199 --> 01:26:31,600
90% is going to come from measure one so

1867
01:26:31,600 --> 01:26:34,239
this is incredibly valuable tool to have

1868
01:26:34,239 --> 01:26:35,920
that is in place. what it's been three

1869
01:26:35,920 --> 01:26:37,920
or four years or so since you came up

1870
01:26:37,920 --> 01:26:42,480
with this. And um how long has it been

1871
01:26:42,480 --> 01:26:42,880
five?

1872
01:26:42,880 --> 01:26:45,270
>> It'll be five in know uh let's see I

1873
01:26:45,270 --> 01:26:45,280
» It'll be five in know uh let's see I

1874
01:26:45,280 --> 01:26:47,440
started in November of 21 and then I

1875
01:26:47,440 --> 01:26:49,040
think it was adopted in January or

1876
01:26:49,040 --> 01:26:51,920
February. So yeah up we're coming up to

1877
01:26:51,920 --> 01:26:54,960
five years. Fantastic.

1878
01:26:54,960 --> 01:26:58,070
>> I started in June 2021. So I just had my

1879
01:26:58,070 --> 01:26:58,080
» I started in June 2021. So I just had my

1880
01:26:58,080 --> 01:26:59,520
fiveyear anniversary.

1881
01:26:59,520 --> 01:27:00,229
>> Oh bra.

1882
01:27:00,229 --> 01:27:00,239
» Oh bra.

1883
01:27:00,239 --> 01:27:02,070
>> I'm vested now.

1884
01:27:02,070 --> 01:27:02,080
» I'm vested now.

1885
01:27:02,080 --> 01:27:06,550
>> Wow. Cool. That's great. So the um the

1886
01:27:06,550 --> 01:27:06,560
» Wow. Cool. That's great. So the um the

1887
01:27:06,560 --> 01:27:09,360
measure Y oversight committee the

1888
01:27:09,360 --> 01:27:11,679
citizens oversight committee is meets

1889
01:27:11,679 --> 01:27:14,080
this Thursday and so I will be

1890
01:27:14,080 --> 01:27:17,040
presenting the same information and this

1891
01:27:17,040 --> 01:27:20,080
that's where this chart is particularly

1892
01:27:20,080 --> 01:27:22,639
of interest to that committee.

1893
01:27:22,639 --> 01:27:25,510
>> Yes. And it wasn't clear and I used to

1894
01:27:25,510 --> 01:27:25,520
» Yes. And it wasn't clear and I used to

1895
01:27:25,520 --> 01:27:26,800
talk about this because I was really

1896
01:27:26,800 --> 01:27:29,199
worried the grand jury would come in and

1897
01:27:29,199 --> 01:27:31,440
do an investigation. No one could

1898
01:27:31,440 --> 01:27:33,120
understand what I was saying or would

1899
01:27:33,120 --> 01:27:34,880
listen to what I was saying about this.

1900
01:27:34,880 --> 01:27:36,320
And so it was finally, you know,

1901
01:27:36,320 --> 01:27:38,239
Meredith who really got what I was

1902
01:27:38,239 --> 01:27:41,440
talking about and and Judy Glenn on the

1903
01:27:41,440 --> 01:27:43,280
Measure Y committee used to say the same

1904
01:27:43,280 --> 01:27:44,800
thing too. Well, wait a minute. This,

1905
01:27:44,800 --> 01:27:48,480
you know, whatever. So anyway, feel

1906
01:27:48,480 --> 01:27:50,560
secure that we have a formula and it

1907
01:27:50,560 --> 01:27:53,040
really works and it's justifiable and it

1908
01:27:53,040 --> 01:27:55,360
makes sense and the expenditure measure

1909
01:27:55,360 --> 01:28:01,440
Y money is very clear now. Another

1910
01:28:01,440 --> 01:28:06,320
piece that um that this committee we

1911
01:28:06,320 --> 01:28:09,040
that staff reports to and this committee

1912
01:28:09,040 --> 01:28:12,719
are updates on policies and procedures.

1913
01:28:12,719 --> 01:28:16,790
And um

1914
01:28:16,800 --> 01:28:18,960
we we normally like to report this like

1915
01:28:18,960 --> 01:28:22,159
in February or March, but uh here's a

1916
01:28:22,159 --> 01:28:26,239
summary that you know the budget and

1917
01:28:26,239 --> 01:28:28,800
financial services team has completed

1918
01:28:28,800 --> 01:28:32,000
the following more than this but these

1919
01:28:32,000 --> 01:28:34,719
are the highlights. Uh updated the

1920
01:28:34,719 --> 01:28:38,000
grants management process. Uh supported

1921
01:28:38,000 --> 01:28:40,560
the update to the gifts and donations

1922
01:28:40,560 --> 01:28:44,480
policy. Um, we've implemented the

1923
01:28:44,480 --> 01:28:47,440
incumbrance module in EFS, which is our

1924
01:28:47,440 --> 01:28:50,400
financial system to support greater

1925
01:28:50,400 --> 01:28:52,880
budget controls. We prepared an

1926
01:28:52,880 --> 01:28:55,199
additional analysis for the additional

1927
01:28:55,199 --> 01:28:57,440
discretionary payments to pay down the

1928
01:28:57,440 --> 01:29:01,920
pension unfunded acred liability. Um, we

1929
01:29:01,920 --> 01:29:04,639
will be making our first payment uh by

1930
01:29:04,639 --> 01:29:08,159
December of this fiscal year. Uh BAPS

1931
01:29:08,159 --> 01:29:11,760
has also had a key role in uh prep

1932
01:29:11,760 --> 01:29:14,400
preparing for the financing and the

1933
01:29:14,400 --> 01:29:18,080
purchase of the uh operations

1934
01:29:18,080 --> 01:29:20,239
uh center building

1935
01:29:20,239 --> 01:29:24,639
and um in September we we uh plan to

1936
01:29:24,639 --> 01:29:27,040
share with you an update on the

1937
01:29:27,040 --> 01:29:31,120
purchasing policy. Um it's been in good

1938
01:29:31,120 --> 01:29:34,320
it's been needed to make some updates on

1939
01:29:34,320 --> 01:29:37,440
that and uh we'd like you to provide you

1940
01:29:37,440 --> 01:29:41,920
some information also on bequest. Um so

1941
01:29:41,920 --> 01:29:46,960
that that concludes my report today and

1942
01:29:46,960 --> 01:29:51,910
unless you have any more questions.

1943
01:29:51,920 --> 01:29:54,480
» So when I was uh coughing did I miss

1944
01:29:54,480 --> 01:29:58,320
Katherine's appropriation transfer? No,

1945
01:29:58,320 --> 01:29:59,920
we haven't on there yet.

1946
01:29:59,920 --> 01:30:00,870
>> Okay.

1947
01:30:00,870 --> 01:30:00,880
» Okay.

1948
01:30:00,880 --> 01:30:01,910
>> Nothing to report.

1949
01:30:01,910 --> 01:30:01,920
» Nothing to report.

1950
01:30:01,920 --> 01:30:04,390
>> I know, but it's on the agenda, so you

1951
01:30:04,390 --> 01:30:04,400
» I know, but it's on the agenda, so you

1952
01:30:04,400 --> 01:30:05,760
can report that we have nothing to

1953
01:30:05,760 --> 01:30:07,440
report.

1954
01:30:07,440 --> 01:30:10,629
>> So, that's the next item on the agenda.

1955
01:30:10,629 --> 01:30:10,639
» So, that's the next item on the agenda.

1956
01:30:10,639 --> 01:30:13,360
Um,

1957
01:30:13,360 --> 01:30:14,470
>> I thought you had jumped to the

1958
01:30:14,470 --> 01:30:14,480
» I thought you had jumped to the

1959
01:30:14,480 --> 01:30:16,000
workflow. That's why I was asking.

1960
01:30:16,000 --> 01:30:19,750
>> No, we haven't.

1961
01:30:19,760 --> 01:30:22,080
» That is correct. We had no appropriation

1962
01:30:22,080 --> 01:30:25,360
transfers this past quarter. Um to give

1963
01:30:25,360 --> 01:30:27,760
you some background, we have an

1964
01:30:27,760 --> 01:30:30,800
appropriation transfer policy and it's

1965
01:30:30,800 --> 01:30:35,199
to allow um within the director's

1966
01:30:35,199 --> 01:30:37,440
delegation authority to move within

1967
01:30:37,440 --> 01:30:42,639
budget small items. Um so say

1968
01:30:42,639 --> 01:30:44,800
um when you look at the budget, I I made

1969
01:30:44,800 --> 01:30:46,960
a budget that I was going to spend

1970
01:30:46,960 --> 01:30:50,480
10,000 in other contracts, but maybe I

1971
01:30:50,480 --> 01:30:52,320
throughout the fiscal year I end up

1972
01:30:52,320 --> 01:30:54,320
using it somewhere else. allowed to move

1973
01:30:54,320 --> 01:30:56,960
that like I said as long as it's within

1974
01:30:56,960 --> 01:30:59,360
the director's delegation of authority

1975
01:30:59,360 --> 01:31:01,920
and then we report it quarterly all of

1976
01:31:01,920 --> 01:31:03,920
those sources.

1977
01:31:03,920 --> 01:31:05,590
>> Yeah, I can give you an example of that.

1978
01:31:05,590 --> 01:31:05,600
» Yeah, I can give you an example of that.

1979
01:31:05,600 --> 01:31:07,120
Like so we have our other contract

1980
01:31:07,120 --> 01:31:10,080
services and then we have another line

1981
01:31:10,080 --> 01:31:11,760
item that's very similar to that and I

1982
01:31:11,760 --> 01:31:14,560
forget outside consulting. And so my

1983
01:31:14,560 --> 01:31:16,560
contract for the strategic plan, for

1984
01:31:16,560 --> 01:31:18,480
some reason, all of the money was

1985
01:31:18,480 --> 01:31:21,440
encumbered in other contract services

1986
01:31:21,440 --> 01:31:23,840
and it was a little over. So I took some

1987
01:31:23,840 --> 01:31:27,199
of the money from outside consulting and

1988
01:31:27,199 --> 01:31:30,480
I put that into um outside or other

1989
01:31:30,480 --> 01:31:32,639
contract services just so that you know

1990
01:31:32,639 --> 01:31:37,120
I was still staying within my budget.

1991
01:31:37,120 --> 01:31:40,560
Um so just a little bit of background on

1992
01:31:40,560 --> 01:31:43,360
that is

1993
01:31:43,360 --> 01:31:47,040
that those level of tr of of

1994
01:31:47,040 --> 01:31:49,440
transactions as small as it might be

1995
01:31:49,440 --> 01:31:52,480
$5,000 and you know from training into

1996
01:31:52,480 --> 01:31:54,639
office supplies

1997
01:31:54,639 --> 01:32:00,719
um that authority lies with the

1998
01:32:00,719 --> 01:32:02,719
governing board.

1999
01:32:02,719 --> 01:32:06,239
Uh so when we we couldn't make those

2000
01:32:06,239 --> 01:32:09,440
those those uh transfers

2001
01:32:09,440 --> 01:32:11,440
um and

2002
01:32:11,440 --> 01:32:14,480
it happens quite a bit three four times

2003
01:32:14,480 --> 01:32:18,560
in a quarter and uh and we would have to

2004
01:32:18,560 --> 01:32:20,880
come to so I would put everything on

2005
01:32:20,880 --> 01:32:24,000
hold until mid year and then have these

2006
01:32:24,000 --> 01:32:27,199
small amounts uh transferred uh at the

2007
01:32:27,199 --> 01:32:33,840
midyear report um uh point but Um

2008
01:32:33,840 --> 01:32:36,639
uh in talking to the county, the best

2009
01:32:36,639 --> 01:32:38,880
practice is well if you have a policy

2010
01:32:38,880 --> 01:32:41,520
where the governing board then delegates

2011
01:32:41,520 --> 01:32:45,040
that authority to staff the director or

2012
01:32:45,040 --> 01:32:47,840
and the CFO in this case in this in this

2013
01:32:47,840 --> 01:32:53,280
policy then it sets a a process for um

2014
01:32:53,280 --> 01:32:57,679
the library to make these routine um uh

2015
01:32:57,679 --> 01:33:00,880
transactions and uh and then for

2016
01:33:00,880 --> 01:33:03,920
transparency purposes provide this

2017
01:33:03,920 --> 01:33:06,159
committee and the commission a report of

2018
01:33:06,159 --> 01:33:08,639
how monies were moved around in the

2019
01:33:08,639 --> 01:33:11,440
budget. That policy does give us

2020
01:33:11,440 --> 01:33:14,239
restrictions. There are restrictions. So

2021
01:33:14,239 --> 01:33:17,199
we cannot we won't be able to move funds

2022
01:33:17,199 --> 01:33:21,120
from you know uh the new fund where

2023
01:33:21,120 --> 01:33:23,679
we're tracking the proceeds into

2024
01:33:23,679 --> 01:33:27,920
property tax that we will have to still

2025
01:33:27,920 --> 01:33:30,080
get authority and and the commission

2026
01:33:30,080 --> 01:33:32,159
will have to approve that.

2027
01:33:32,159 --> 01:33:34,470
>> So for our gifts and donations so we

2028
01:33:34,470 --> 01:33:34,480
» So for our gifts and donations so we

2029
01:33:34,480 --> 01:33:37,440
cannot move money out of any of our um

2030
01:33:37,440 --> 01:33:41,120
restricted funds our our bequests um I

2031
01:33:41,120 --> 01:33:42,880
cannot do that only the commission can

2032
01:33:42,880 --> 01:33:45,120
do that. So that was one of the um

2033
01:33:45,120 --> 01:33:49,510
exemptions

2034
01:33:49,520 --> 01:33:51,520
» all about transparency.

2035
01:33:51,520 --> 01:33:53,510
>> Yeah.

2036
01:33:53,510 --> 01:33:53,520
» Yeah.

2037
01:33:53,520 --> 01:33:53,910
>> Okay.

2038
01:33:53,910 --> 01:33:53,920
» Okay.

2039
01:33:53,920 --> 01:33:55,750
>> Oh, and controls.

2040
01:33:55,750 --> 01:33:55,760
» Oh, and controls.

2041
01:33:55,760 --> 01:33:56,310
>> What?

2042
01:33:56,310 --> 01:33:56,320
» What?

2043
01:33:56,320 --> 01:33:58,790
>> Controls.

2044
01:33:58,790 --> 01:33:58,800
» Controls.

2045
01:33:58,800 --> 01:34:00,470
>> Those are key.

2046
01:34:00,470 --> 01:34:00,480
» Those are key.

2047
01:34:00,480 --> 01:34:03,510
>> Okay. So, uh any questions about the

2048
01:34:03,510 --> 01:34:03,520
» Okay. So, uh any questions about the

2049
01:34:03,520 --> 01:34:06,800
appropriations, transfers,

2050
01:34:06,800 --> 01:34:10,400
um and then we have a workflow that our

2051
01:34:10,400 --> 01:34:12,639
CFO put together for us a few years ago.

2052
01:34:12,639 --> 01:34:15,040
It was so kind of help people.

2053
01:34:15,040 --> 01:34:16,390
>> The only thing I noticed when I looked

2054
01:34:16,390 --> 01:34:16,400
» The only thing I noticed when I looked

2055
01:34:16,400 --> 01:34:19,120
at this one is that we used to have uh

2056
01:34:19,120 --> 01:34:20,719
when the finance committee would see it

2057
01:34:20,719 --> 01:34:22,159
and then when the commission would see

2058
01:34:22,159 --> 01:34:24,000
it. Did you did you take the commission

2059
01:34:24,000 --> 01:34:27,840
part off that for a reason?

2060
01:34:27,840 --> 01:34:30,080
I think so. I think I received feedback

2061
01:34:30,080 --> 01:34:34,000
to simplify the chart.

2062
01:34:34,000 --> 01:34:38,800
Um but normally the fi the normally what

2063
01:34:38,800 --> 01:34:41,120
happens is the month that you see here

2064
01:34:41,120 --> 01:34:43,040
right the finance committee sees it in

2065
01:34:43,040 --> 01:34:46,000
August the commission normally sees it

2066
01:34:46,000 --> 01:34:49,280
the following month unless this finance

2067
01:34:49,280 --> 01:34:51,120
committee says no we need more work

2068
01:34:51,120 --> 01:34:53,280
bring it back to the finance committee

2069
01:34:53,280 --> 01:34:55,920
but it will not advance any item will

2070
01:34:55,920 --> 01:34:58,639
not advance unless this committee has a

2071
01:34:58,639 --> 01:35:01,920
consensus to recommend it to the full

2072
01:35:01,920 --> 01:35:04,000
commission.

2073
01:35:04,000 --> 01:35:06,239
Well, if it's not a problem, we can, you

2074
01:35:06,239 --> 01:35:10,639
know, we'll leave this new version. I

2075
01:35:10,639 --> 01:35:12,800
did want to say that I was thrilled to

2076
01:35:12,800 --> 01:35:16,880
see in February the five-year forecast.

2077
01:35:16,880 --> 01:35:18,470
>> We've been talking about that for so

2078
01:35:18,470 --> 01:35:18,480
» We've been talking about that for so

2079
01:35:18,480 --> 01:35:20,320
long and and I noticed it was referenced

2080
01:35:20,320 --> 01:35:22,639
in that AMN report that we had the

2081
01:35:22,639 --> 01:35:24,880
five-year help forecast really helped

2082
01:35:24,880 --> 01:35:25,760
with that.

2083
01:35:25,760 --> 01:35:29,669
>> Yes. though um the commi the I did

2084
01:35:29,669 --> 01:35:29,679
» Yes. though um the commi the I did

2085
01:35:29,679 --> 01:35:32,159
provide a forecast to the commission

2086
01:35:32,159 --> 01:35:37,120
over um leading up to the decision of

2087
01:35:37,120 --> 01:35:39,920
the acquisition. That was the biggest

2088
01:35:39,920 --> 01:35:41,520
impetus for that. Yeah,

2089
01:35:41,520 --> 01:35:45,910
>> we did have a a forecast prior to that,

2090
01:35:45,910 --> 01:35:45,920
» we did have a a forecast prior to that,

2091
01:35:45,920 --> 01:35:49,440
but it had not been updated and it was

2092
01:35:49,440 --> 01:35:52,960
it was just a good timing to update that

2093
01:35:52,960 --> 01:35:55,520
force cast given the the the decision

2094
01:35:55,520 --> 01:35:56,719
before the commission.

2095
01:35:56,719 --> 01:35:57,590
>> Yeah.

2096
01:35:57,590 --> 01:35:57,600
» Yeah.

2097
01:35:57,600 --> 01:36:01,750
>> Um so I do have it here to program it to

2098
01:36:01,750 --> 01:36:01,760
» Um so I do have it here to program it to

2099
01:36:01,760 --> 01:36:04,560
to update it annually.

2100
01:36:04,560 --> 01:36:06,159
And the other thing I was really happy

2101
01:36:06,159 --> 01:36:09,360
to see was the the draft policy for

2102
01:36:09,360 --> 01:36:11,199
allocation appropriation of fiscal

2103
01:36:11,199 --> 01:36:12,880
surplus.

2104
01:36:12,880 --> 01:36:15,760
So I won't go into that today, but you

2105
01:36:15,760 --> 01:36:17,760
know, in the past we wondered about what

2106
01:36:17,760 --> 01:36:21,440
the policy was when we have, you know,

2107
01:36:21,440 --> 01:36:23,600
these funds, these they're one-time

2108
01:36:23,600 --> 01:36:26,560
funds and they're the unassigned fund

2109
01:36:26,560 --> 01:36:28,800
balance funds, right? And so what do we

2110
01:36:28,800 --> 01:36:30,560
do with that money? We've never had a

2111
01:36:30,560 --> 01:36:33,840
policy about it. it's been um somewhat

2112
01:36:33,840 --> 01:36:35,199
you know kind of reactive to the

2113
01:36:35,199 --> 01:36:37,679
circumstances and what we've needed for

2114
01:36:37,679 --> 01:36:39,520
and then there you know the fixing up of

2115
01:36:39,520 --> 01:36:40,880
the different libraries and so forth

2116
01:36:40,880 --> 01:36:42,800
there hasn't been a real clear policy

2117
01:36:42,800 --> 01:36:46,239
about so anyway I'm great that you're I

2118
01:36:46,239 --> 01:36:47,920
know you have mentioned that Erica in

2119
01:36:47,920 --> 01:36:50,560
the past why why we needed a policy so

2120
01:36:50,560 --> 01:36:52,719
I'm glad that's going to be before the

2121
01:36:52,719 --> 01:36:55,679
committee in November so

2122
01:36:55,679 --> 01:36:57,840
any questions I know it's can be kind of

2123
01:36:57,840 --> 01:37:00,400
overwhelming all the the information

2124
01:37:00,400 --> 01:37:04,320
today But u I really appreciate uh MNA's

2125
01:37:04,320 --> 01:37:08,000
efforts to give you the full picture

2126
01:37:08,000 --> 01:37:10,960
which she did very well and Erica's

2127
01:37:10,960 --> 01:37:13,920
comments on the

2128
01:37:13,920 --> 01:37:17,040
a lot of the specifics any um thing that

2129
01:37:17,040 --> 01:37:20,239
you would like to know more about or

2130
01:37:20,239 --> 01:37:25,510
is it time to digest?

2131
01:37:25,520 --> 01:37:28,480
Well, my two questions I guess are ones

2132
01:37:28,480 --> 01:37:30,480
that are going to be answered later in

2133
01:37:30,480 --> 01:37:33,040
the year. I just thought also it's

2134
01:37:33,040 --> 01:37:35,920
important to for me at least to get a

2135
01:37:35,920 --> 01:37:39,520
handle on the different kinds of funds

2136
01:37:39,520 --> 01:37:44,239
once this season fund balance I kind of

2137
01:37:44,239 --> 01:37:46,000
understand that when there's a big

2138
01:37:46,000 --> 01:37:48,480
surplus take from it when you need to

2139
01:37:48,480 --> 01:37:50,400
take from it as things come up and then

2140
01:37:50,400 --> 01:37:52,320
eventually there isn't the big surplus

2141
01:37:52,320 --> 01:37:54,960
and then what happens then how do we do

2142
01:37:54,960 --> 01:37:57,840
planning for that. And then my other

2143
01:37:57,840 --> 01:37:59,920
question I guess that's it's not a

2144
01:37:59,920 --> 01:38:04,800
question exactly just a concern is so it

2145
01:38:04,800 --> 01:38:08,320
seems like costs for most things keep

2146
01:38:08,320 --> 01:38:11,920
going up whether it's for

2147
01:38:11,920 --> 01:38:15,280
FFN stuff whether it's for um labor

2148
01:38:15,280 --> 01:38:17,119
costs

2149
01:38:17,119 --> 01:38:20,000
well what happens over time since that

2150
01:38:20,000 --> 01:38:24,080
seems to be a trend if our income either

2151
01:38:24,080 --> 01:38:27,920
stays flat or goes down.

2152
01:38:27,920 --> 01:38:30,560
What happens then? Is that part of the

2153
01:38:30,560 --> 01:38:33,760
surplus that goes in there? And I I

2154
01:38:33,760 --> 01:38:35,760
don't you know long-term planning kind

2155
01:38:35,760 --> 01:38:38,719
of or not longterm midterm. How does it

2156
01:38:38,719 --> 01:38:41,119
look? What happens?

2157
01:38:41,119 --> 01:38:42,390
>> Well, that would be part of the

2158
01:38:42,390 --> 01:38:42,400
» Well, that would be part of the

2159
01:38:42,400 --> 01:38:43,760
forecast.

2160
01:38:43,760 --> 01:38:46,709
>> Yes.

2161
01:38:46,709 --> 01:38:46,719
» Yes.

2162
01:38:46,719 --> 01:38:49,109
>> You'll also see the reserves on the fun.

2163
01:38:49,109 --> 01:38:49,119
» You'll also see the reserves on the fun.

2164
01:38:49,119 --> 01:38:52,000
See the fund balance activity report.

2165
01:38:52,000 --> 01:38:53,679
See those reserves. We have in fund

2166
01:38:53,679 --> 01:38:56,239
balance policy. We have policy about re

2167
01:38:56,239 --> 01:38:57,920
rainy day funds and what's the other one

2168
01:38:57,920 --> 01:39:01,360
anyway you know there's there's a lot of

2169
01:39:01,360 --> 01:39:03,760
builtin support to those kind of

2170
01:39:03,760 --> 01:39:06,880
questions about lesser lesser income but

2171
01:39:06,880 --> 01:39:08,639
um I'm really glad that we'll have this

2172
01:39:08,639 --> 01:39:11,119
policy to plan just what we're talking

2173
01:39:11,119 --> 01:39:18,070
about that's what we got that money

2174
01:39:18,080 --> 01:39:24,159
you know policy way so um again

2175
01:39:24,159 --> 01:39:26,400
starting off um asking very good

2176
01:39:26,400 --> 01:39:28,560
questions and you know there's a pretty

2177
01:39:28,560 --> 01:39:30,800
steep learning curve about all of it I

2178
01:39:30,800 --> 01:39:35,760
found and um but you're asking

2179
01:39:35,760 --> 01:39:37,830
>> yeah and you know when we do ourou

2180
01:39:37,830 --> 01:39:37,840
» yeah and you know when we do ourou

2181
01:39:37,840 --> 01:39:41,840
negotiations we do actually look at um

2182
01:39:41,840 --> 01:39:45,040
you know our projected revenue increases

2183
01:39:45,040 --> 01:39:47,440
and what we can what we think we can

2184
01:39:47,440 --> 01:39:49,440
afford in terms of cost of living

2185
01:39:49,440 --> 01:39:52,719
adjustments. So um you know we our

2186
01:39:52,719 --> 01:39:55,119
contract ends in 2027. It feels like we

2187
01:39:55,119 --> 01:39:57,760
just finished it. Um but we will be

2188
01:39:57,760 --> 01:40:00,560
doing that analysis again you know um

2189
01:40:00,560 --> 01:40:02,880
this time next year. Um we will be

2190
01:40:02,880 --> 01:40:05,040
looking at our revenues as well as you

2191
01:40:05,040 --> 01:40:07,199
know MNA is always talking to the county

2192
01:40:07,199 --> 01:40:10,159
about their projections as well and then

2193
01:40:10,159 --> 01:40:12,719
coming up with um you know colas that we

2194
01:40:12,719 --> 01:40:15,760
think we can reasonably afford and not

2195
01:40:15,760 --> 01:40:18,320
you know not promising more than um we

2196
01:40:18,320 --> 01:40:23,270
think we can deliver.

2197
01:40:23,280 --> 01:40:25,280
But then some of our building projects,

2198
01:40:25,280 --> 01:40:28,239
you know, we've we've reduced scope um

2199
01:40:28,239 --> 01:40:30,880
so that we have stayed within budget for

2200
01:40:30,880 --> 01:40:33,199
our building project. So there we have a

2201
01:40:33,199 --> 01:40:35,280
variety of different tools we can use to

2202
01:40:35,280 --> 01:40:36,880
make sure that we're kind of staying

2203
01:40:36,880 --> 01:40:39,520
within budget. Um and that is one of

2204
01:40:39,520 --> 01:40:43,189
them.

2205
01:40:43,199 --> 01:40:45,119
Okay.

2206
01:40:45,119 --> 01:40:48,149
>> Well,

2207
01:40:48,159 --> 01:40:52,080
we're on the the workflow. So,

2208
01:40:52,080 --> 01:40:55,520
as you can see, are they Oh, yes. So,

2209
01:40:55,520 --> 01:40:57,520
like in October, you'll see capital

2210
01:40:57,520 --> 01:41:00,800
project update one. So, on a quarterly

2211
01:41:00,800 --> 01:41:04,960
basis, I provide another control and

2212
01:41:04,960 --> 01:41:08,800
report back to the committee is what is

2213
01:41:08,800 --> 01:41:13,119
the status of the capital projects? uh

2214
01:41:13,119 --> 01:41:15,760
how much what what the budget is, how

2215
01:41:15,760 --> 01:41:18,560
much was has been spent, how much work

2216
01:41:18,560 --> 01:41:21,679
um and any reports on delays that have

2217
01:41:21,679 --> 01:41:26,159
happened um are reported here. So we do

2218
01:41:26,159 --> 01:41:29,600
make modifications, you know, definitely

2219
01:41:29,600 --> 01:41:32,159
we've received much very good feedback

2220
01:41:32,159 --> 01:41:34,080
from the the finance committee. I'm

2221
01:41:34,080 --> 01:41:36,639
like, "No, we don't support an increase

2222
01:41:36,639 --> 01:41:40,159
of that much or what are you what are we

2223
01:41:40,159 --> 01:41:41,760
getting for the for this amount of

2224
01:41:41,760 --> 01:41:45,280
money?" Um, all of those really good

2225
01:41:45,280 --> 01:41:48,719
questions and uh, you know, we we it's

2226
01:41:48,719 --> 01:41:51,440
an iterative process and staff has then

2227
01:41:51,440 --> 01:41:53,600
come back with something that's more

2228
01:41:53,600 --> 01:41:56,880
palatable to the committee and uh, and

2229
01:41:56,880 --> 01:41:59,600
then, you know, recommended to the the

2230
01:41:59,600 --> 01:42:02,000
full the full commission. So, it's a

2231
01:42:02,000 --> 01:42:05,119
it's a it's a good a really good role

2232
01:42:05,119 --> 01:42:08,719
and um iterative process with with the

2233
01:42:08,719 --> 01:42:11,040
finance committee that plays in in

2234
01:42:11,040 --> 01:42:13,199
making these decisions to stay within

2235
01:42:13,199 --> 01:42:16,639
budget and uh yeah,

2236
01:42:16,639 --> 01:42:18,149
>> you really enjoy being on the finance

2237
01:42:18,149 --> 01:42:18,159
» you really enjoy being on the finance

2238
01:42:18,159 --> 01:42:22,960
committee because it's a it's just a

2239
01:42:22,960 --> 01:42:25,040
deeper dive into stuff. I hate using

2240
01:42:25,040 --> 01:42:27,040
that term, but anyway, the, you know, we

2241
01:42:27,040 --> 01:42:28,560
go to our commission meetings once a

2242
01:42:28,560 --> 01:42:30,239
month and we learn, you know, kind of

2243
01:42:30,239 --> 01:42:31,920
basic stuff, but this you really kind of

2244
01:42:31,920 --> 01:42:34,239
get into a lot of the meat and potatoes

2245
01:42:34,239 --> 01:42:36,480
and just working together in a smaller

2246
01:42:36,480 --> 01:42:38,320
group is great and working closer with

2247
01:42:38,320 --> 01:42:40,000
the staff is great and I think you'll

2248
01:42:40,000 --> 01:42:43,440
really enjoy it. And um

2249
01:42:43,440 --> 01:42:45,679
so last call for any questions before we

2250
01:42:45,679 --> 01:42:50,320
talk about uh oh, items for future. What

2251
01:42:50,320 --> 01:42:52,080
would you like to talk about at a future

2252
01:42:52,080 --> 01:42:55,750
meeting?

2253
01:42:55,760 --> 01:42:56,320
If not,

2254
01:42:56,320 --> 01:42:59,350
>> I just said mine

2255
01:42:59,350 --> 01:42:59,360
» I just said mine

2256
01:42:59,360 --> 01:43:01,199
in the next.

2257
01:43:01,199 --> 01:43:02,950
>> Okay,

2258
01:43:02,950 --> 01:43:02,960
» Okay,

2259
01:43:02,960 --> 01:43:05,270
>> we'll just follow the process then, but

2260
01:43:05,270 --> 01:43:05,280
» we'll just follow the process then, but

2261
01:43:05,280 --> 01:43:08,960
you can always add items on and the end

2262
01:43:08,960 --> 01:43:12,000
of a meeting. Um, next meeting is uh

2263
01:43:12,000 --> 01:43:14,000
we'll stay with our current schedule

2264
01:43:14,000 --> 01:43:16,960
which is would be Monday uh September

2265
01:43:16,960 --> 01:43:19,679
21st, the third Monday at 2 o'clock and

2266
01:43:19,679 --> 01:43:22,560
then see where we are or who's here and

2267
01:43:22,560 --> 01:43:27,679
make decisions about more stuff.

2268
01:43:27,679 --> 01:43:32,709
>> Thank you. So do I. Anyway, um,

2269
01:43:32,709 --> 01:43:32,719
» Thank you. So do I. Anyway, um,

2270
01:43:32,719 --> 01:43:35,040
cheers. Thank you for being here and

2271
01:43:35,040 --> 01:43:37,119
everybody all the staff and the new

2272
01:43:37,119 --> 01:43:39,199
commissioners and

2273
01:43:39,199 --> 01:43:40,159
a great meeting.

2274
01:43:40,159 --> 01:43:42,790
>> I I forgot to mention um according to my

2275
01:43:42,790 --> 01:43:42,800
» I I forgot to mention um according to my

2276
01:43:42,800 --> 01:43:48,070
calendar Monday the 21st is Yam Kapoor

2277
01:43:48,080 --> 01:43:49,040
» Yam Kapoor.

2278
01:43:49,040 --> 01:43:51,109
>> Yeah. Do we want to reschedule the

2279
01:43:51,109 --> 01:43:51,119
» Yeah. Do we want to reschedule the

2280
01:43:51,119 --> 01:43:53,119
finance committee meeting? I'm fine with

2281
01:43:53,119 --> 01:43:59,669
that if if it's a

2282
01:43:59,679 --> 01:44:01,600
» just want to make sure that we're not uh

2283
01:44:01,600 --> 01:44:04,880
violating anybody's religious freedoms.

2284
01:44:04,880 --> 01:44:07,270
>> So, we're good with that.

2285
01:44:07,270 --> 01:44:07,280
» So, we're good with that.

2286
01:44:07,280 --> 01:44:11,119
Okay, we will proceed then and uh hope

2287
01:44:11,119 --> 01:44:13,920
to see you in September.

2288
01:44:13,920 --> 01:44:16,920
Goodbye.