05/19/2025 Council Special Meeting [23:35-28:37]

It used to be that the more you gravitate, the larger share you get. Now it's based on some of those items, like non-invasive or based on population, and the municipalities that adjust their income is just within that municipality, where the Department of Revenue is still trying to determine what the AGIs are. The AGIs are. They adjust their income by municipality because they have not done that in the past. It's always been by the county. So I say that because of the complexity, there could be changes that occur in the next legislative session. So this is what I know today. It could all change. But I wanted to come and give you a heads up that if nothing changes right now in 2027, by July 1st of 2027, these units can come in and petition you move to establish, like the bond municipal. So tariffs and liabilities will be coming in to say, hey, we need you to adopt those. Or the municipalities less than 3,500 more come in and say, hey, we need you to adopt those. The cities, but for the mature, they can do it all around. They don't need your import or approval or anything like that. So that's a lot of information. I know that's probably a little bit confusing, but that was just kind of a pretty cursor heads up. Now, we did build in to your cash loans, what the point 9% would generate for county services. And I'll get to that. I have a lot of other things to get to before I get to that. But we know that before you soon can see how that works in your general fund. All right. So now, I'm going to go to page 5, and I'm going to quickly go through these pages, because these are an executive summary, and it primarily has a graph of ending cash loans. I'll get more in detail to each fund when we get to the larger cash loans. But if you have any questions, you can stop me. But I am going to go through this pretty quickly. So page number 5, this is your general fund. Your general fund has actually been very stable in financial and staff sound. Each one of these trucks has a void rail. The dotted red line is the lower end of that void rail. It is what we call a 15% cash reserve. We don't want your cash balances to go out the rail of 15%. That's the floor. The maximum is 50%, but that would be six months of cash reserves. Now, you can go above 50%, but if you do, you should be making plans of how to utilize that cash, and it's usually just for one-time capital purchases. You never want to use cash reserves for recurring costs such as salaries, wages, benefits. So you've been right in the middle there, which is great. That's what we want to see, and we're sustaining that. I wish I could show past what we're really showing from 2022, but we're right there. So actually, at the end of 2022, your cash reserves was about 4.8 million in the general fund. Roughly about 25%, or in that range. And then it actually increased in 2024 to 5.9 million. So that's fine. That's where you need to be. We are showing a bit of a downwind trend. I think one is just because we assume that you're going to spend 100% of your budget, and you may not do that. So it's starting to kind of go down a little bit. We also have the circuit blinkers work done as well. So by the end of 2027, it's possible. You can drop down the wall of the 15%, but the reason why it starts wrapping back up is because we're built in that 0.9% mental income tax. You won't have to adopt some mobile income tax, obviously, because you won't have to have to operate without it. But I think you're probably aware of that. So by the time we get to the end of 2029, you should be able to roughly 19% cash reserves. Still pretty strong, and we don't see any issues there. Pacerep or six now is the aviation fund. So this fund looks a little strange, but it's just because of the cash going up, it went down. So at the end of 2022, there was about $32,000 of cash there. It jumped up in 2024 because you all allocated more property tax to the aviation fund, which is fine. We've seen that all the time, it goes up and down. We assume in this report that you would just allocate enough property tax so that it would just maintain the cash. And we do that to make sure that all the funds or your control funds have enough property tax to operate. So we've got that maintained. It's about the 50%. So if there's any capital items, you could certainly use those receipts there. I don't see any issues with this fund at all, but that's why you see that weird because it jumps up because you increase the property tax value, and then we'll put it back down to kind of where it needs to be.