05/19/2025 Council Special Meeting [37:50-42:50]

So now we can really get into the leads. And this is where we get into all of these numbers. And then page 22 is your general fund. And the general fund is the only one that's going to be divided up between two pages just because there are so many lines. But I have some things highlighted that I want to bring to your attention. First, all of these cash rolls are set up the same. The top part is the operating receipts. The bottom part is the disbursements. And then if you go all the way down to the end, which on this one at the very end is we're going to show you the change in cash balance, the ending fund balance, and the operating reserves. So I've got these lines numbered. It's an index number, so I can point them out to you. So index number four, that's highlighted. It says estimated excess shortfall from Senate Bill 1. So this is the estimate that was provided to us by legislative services on what Senate Bill 1 was going to do to your county. And we've split it up among each of your control funds. So any fund that has a property tax level here that has seen this line. Again, these are very preliminary estimates. We tried to get what assumptions were used from legislative services, but they weren't willing to release that. But it should have been what was passed as far as the business personal property and the deductions and all of that. We just couldn't see the detail. So we are going to, as I said, we're building that model and we will update these projections. But anyway, let's look at this. I told you that these things were going to be phased in over a number of years. Unfortunately, legislative services only went out in 2028. So we just brought in 2028 to match 2029, but I do think 2029 is going to be more of a reduction. So what these represent, if you look at 2026, that negative 525942 that I have highlighted, that is the estimated reduction in your property tax revenue. So if you look at the very top line number two, it says general property tax. That's what we expect you will laughy in 2026, about 87791. We have the normal circuit bigger in there, about 505,000. That's what you were typically not correct, but now there's going to be an additional possibly 525,000 that you won't correct because of everything that happened with Senate 401. Now, fortunately, I think you're going to be able to absorb some of that. At least in the short term, you might absorb it in your cash reserves until you can adopt that new local income tax. I've seen shortfalls of a lot worse. So I know this is a lot, but I've seen a lot worse. So I guess we can be thankful for that. The next thing I want to show you is on line 18, the rich accounting services. So this is where I said, if you adopt 0.9%, starting in 2028, that should generate about 11.3 million dollars. We could certify shares that go into this fund is about 5.1 million and that's on line 16, 5.1 million. So we're probably working with this. Oh, well, that's doubled. Well, yes, but don't forget about that public safety that you're getting in the other fund and you're going to have to move those expenses over here. So really, really, do all that 11.3 is not like a whole bunch more. Again, you could probably come down a little bit on that rate if you wanted to, but what plans do you have that you aren't able to fund right now? That's something we also want to talk to you about because maybe about 1.6 is where you need to be, or it might be something a little bit higher, maybe you need to do 1%. Remember, you have up to 1.2%, 1.2% would generate about 15 million dollars. So yeah, so this is like discussions we'll probably need to have all the way through year 2026. Just the planning as far as where do you want to be, and you have to re-adopt every year so you can change the rate if you need to. So, overall, operating receipts are 9.25. You really focus on that number entirely than oil because when we start talking about balanced budgets, we want you to balance your disputes about 2 of these receipts. That's a balanced budget. So if I look at 2026 standing here right now, I would say for a balanced budget, you're going to have a budget of about 17.3 million. Well, that's less than what you have now. It's less than what you spent, I think, in 2024. So that's why I say you might have to a couple of years use the utilize some cash reserves to bridge the funding gap.