05/19/2025 Council Special Meeting [28:37-33:41]

Patient number seven is the health fund. So here you have a lot of cash reserves and that's fine. And it looks like you've started to reduce the ready allocation, which is what we would recommend. You probably need to keep that ready down until the cash reserves fall down to a good level, around 50% or less. And that's what we've assumed in this report. We're also assuming that you will allow this fund to utilize its cash until you can get down to 25%, 20% to 25%. So that's why it looks like it's been down now. I will say this that probably by maybe 2030, you might have to allocate some more cash over there. I mean, not cash. You'll have to allocate more property tax lobby over there. But this is during budget season, the auditor's office, and when you are able to allocate the lobby as you see fit. And that's why we see a lot of times on health and reassessment in particular. We'll see the lobby going up and down. This is not unusual. But I think here, you know, we should allocate that lobby to general until we need it back in the health fund. And the health fund has plenty of reserves, even to cover the minimum requirement for health first in the end. So no issues here, but that's why you're seeing that downward decline. Let's do the assumptions we made on the report. The next fund, page 8, is Motor Vehicle Highway. So this fund is not funded with property tax. It is only funded with gas tax, which is the Motor Vehicle Highway State Distributions. It's been very healthy and stable and constant. In fact, it's a little bit above the 50% cash reserves. So you probably have a little bit there to do some runtime capital projects, if you needed to. At the end of 2024, we had $1.7 million in that fund. So it's still pretty good. Don't see any issues there. And this fund will not be impacted by Senate 401 changes, luckily. Page number 9 has the reassessment fund. Again, kind of a rear up and down is because of the shifting of laffies. The cash balances really are too high in this fund right now. So we've assumed, like, the other fund that you're going to utilize some of that cash, and then it'll just level off. So that's why the decline. And again, it's because you're shifting property tax laffies. Some rivers, it builds it, some rivers, it does it. That's fine. We've just made the assumption that we're going to set the property tax laffies at a rate that will have you above the 15% cash reserves. Page number 10 is your civil defense or a budget civil management fund. Cash balances are really high in that fund as well. And you do that. You have a property tax laffie on this fund, but you took it off, which we would have recommended. Take it off until you get those reserves down. When I say take it off, you're basically shifting it to general where you need the cash the most. So not an issue here. It's not like this department can't be funded. It's just sitting on too much cash right now. We're doing what you need to do and took it in 2025. You took the lovely completely off of it. And you can always put it back. Like that's not, it's not a problem. Next page is the Civil Red and Street. Page 11. So this one is funded only by the gas acts. So you don't have to worry about property tax implications here. It's been nice and healthy instead. You don't get a whole lot of money in here every year, but you're using it just like you should be for the poor materials and things of that nature. So it's fine. Page number 12 is your local income tax public safety fund. And this, you know, in 2027, you see that the fund balance goes to completely zero. Because it will expire at the end of 2027. We have assumed that whatever remaining balance you have in this fund will be transferred to the general fund. I think there's 400 and some thousand. We'll see that on the cash flow when we get to bear. So you can continue to spend out on this fund until it's depleted or let that transfer that we've assumed in this report. But you are going to have to transfer all of those expenses that you're paying right now from public safety over to your general fund. Because you won't have any more revenue coming into this fund. Page 13 is your riverboat fund. You get about $150,000 of receipts into this fund anyway. We have it going up because we just based future budgets on what you're budgeting in 2025. But I see where sometimes we'll have a larger budget than other years. So this could fluctuate. We can use this fund for anything for the county.