[00:00:01]
SHORT ON HANDOUTS.AND I GOT ALL THESE, YOU KNOW ME, I PRINT 'EM ALL OFF AND I GOT THAT'S OKAY.
I GOT BACKED UP AND, NO, NO, NO.
CAUSE, CAUSE YOU, YOU NEED THOSE.
WELL, I DON'T WANNA TAKE ONE FROM PEOPLE MORE IMPORTANT THAN ME.
YOU, YOU'RE THE MOST IMPORTANT PERSON IN THE HIERARCHY OF THE, THE CHART, YOU KNOW? SO, NO, I'M NOT OVER.
YOU TAKE MINE AND I'LL SHARE WITH CHRISTINA.
CAUSE BELOW YOU AS THEY'RE AT THE VERY BOTTOM.
HEY, I'M GONNA DO PUBLIC COMMENT TODAY.
[1. CALL SESSION TO ORDER]
WE CALL THE CITY COUNCIL WORK SESSION IN ORDER FOR, UH, THURSDAY, JUNE 1ST, 2023.START WITH ROLL CALL COUNCIL MEMBER THOMPSON.
PUT TOM GORDON, MEMBER MCKENZIE.
I'LL BE HERE WHEN COUNCIL MEMBER CO.
ANYBODY SIT NEXT TO YOU IN RIGHT.
[3.1. Presentation and possible acceptance of the Annual Comprehensive Financial Report for the period ended 09/30/22 from Jon Watson, CPA, Partner at Brooks & Watson CPA's (Anne LaMere)]
POSSIBLE ACCEPTANCE OF THE ANNUAL COMPREHENSIVE FINANCIAL REPORT FOR THE PERIOD ENDED SEPTEMBER 30TH, 2022 FROM JOHN WATSON, CPA, A PARTNER AT BROOKS ANDS WATSON, CPAS.SO, WITHOUT FURTHER ADO, I'LL TURN IT OVER TO JOHN WATSON, WHO IS OUR EXTERNAL AUDITOR.
UH, SO I'VE GOT A POWERPOINT TO GO OVER, UH, RELATED TO THE AUDIT.
UH, FEEL FREE IF YOU HAVE ANY QUESTIONS PERTINENT TO THE POWERPOINT, AND I'LL OPEN IT UP AT THE END AS WELL.
SO THE AUDIT, UH, IT WAS CONDUCTED CONSISTENTLY WITH US GAS.
IT'S GENERALLY ACCEPTED AUDITING STANDARDS.
ANY AUDIT OF ITS, UH, GOVERNMENT IN TEXAS SHOULD FOLLOW THAT.
UH, SET OF STANDARDS, UH, THERE'S THREE PHASE APPROACH.
THE FIRST PHASE IS THE PLANNING PHASE.
THAT'S WHERE WE LIST LOOK AT CURRENT YEAR RESULTS COMPARED TO PRIOR YEAR, COMPARED TO OUR EXPECTATIONS, ALLOWS, ALLOWS US TO FOCUS ON AREAS WE FIND MOST SUSCEPTIBLE, RISK OF ERROR OR FRAUD.
UM, AND THAT'S WHERE WE DO OUR TESTING IN THE FIELD WORK PHASE.
WE REBALANCE THIS TO UNDERLYING REPORTS AND SCHEDULES.
MAKE SAMPLE SELECTIONS AND VOUCH TO UNDERLYING EVIDENCE.
UH, BASICALLY THAT'S, THAT'S A SUBSTANTIVE TESTING IN AN AUDIT.
THE LAST PHASE IS THE CONCLUSION.
THAT'S WHERE WE, UH, GATHER ALL OUR RESULTS.
UH, PROPOSED AUDIT ADJUSTMENTS DETERMINE THE, THE, UH, REASON FOR THOSE ADJUSTMENTS AND HELP PREPARE THIS, UH, REPORT THAT YOU ALL HAVE IN FRONT OF YOU.
SO ANY US GAS AUDIT IS GONNA FOLLOW THAT.
THE REPORT ITSELF, UM, THERE ARE SEVEN SECTIONS TO IT.
THE FIRST SECTION IS THE INTRODUCTORY SECTION.
IT'S GOT A LETTER OF TRANSMITTAL FROM YOUR MANAGEMENT, DISCUSS CURRENT, YOUR INFORMATION, FORWARD-LOOKING INFORMATION, AUDIT OPINION FOLLOWS THAT.
UH, WE'LL GO OVER WHAT TYPE OF OPINION YOU RECEIVED.
THAT'S FROM US ABOUT THOSE FINANCIAL STATEMENTS AND THEIR ACCURACY.
MANAGEMENT DISCUSSION AND ANALYSIS FOLLOWS THAT, THAT, UH, SHOWS CURRENT YEAR RESULTS COMPARED PRIOR YEAR.
SOME EXPLANATION OVER YEAR, OVER YEAR CHANGES.
THERE'S TWO DIFFERENT BASIS OF ACCOUNTING.
IT'S GOVERNMENT-WIDE STATEMENTS, UH, WHICH HAVE ALL YOUR DEBT, CAPITAL ASSET ACTIVITIES, SO LONG-TERM ACTIVITY.
AND THEN FUND LEVEL, WHICH IS MORE CONSISTENT WITH HOW YOU BUDGET.
UH, MODIFIED ACCRUAL LEVEL, UH, NOTES TO THE FAN FINANCIALS, FOLLOW THAT DETAILS ABOUT THOSE RESULTS.
AND TOWARD THE BACK OF YOUR REPORT, WE'VE GOT YOUR REQUIRED SUPPLEMENTARY INFORMATION SCHEDULES, UH, SOME BUDGET TO ACTUALS.
SO YOU CAN SEE HOW YOU FARED RELATIVE TO YOUR BUDGETS.
YOU CAN SEE YOUR PENSIONS SCHEDULE.
I THINK IT'S A 70 YEAR LOOK NOW.
I'VE SEEN WHERE YOUR PENSION IS AT.
UH, AND THEN THE VERY BACK STATISTICAL SECTION.
A LOT OF TREND INFORMATION, 10 YEAR TRENDS, SEE WHERE THE CITY WAS AND IS TODAY.
SO, UM, PRETTY COMPREHENSIVE REPORT.
HENCE, UH, ANNUAL COMPREHENSIVE REPORT.
SO, UH, QUITE A BIT OF INFORMATION THERE AND MENTIONED TOWARD THE FRONT OF YOUR REPORT, THE LETTER FROM US, UH, INDEPENDENT AUDITOR, UH, REPORT.
THERE'S FOUR TYPES OF REPORTS YOU COULD RECEIVE.
UNMODIFIED IS THE BEST AT THE TOP HERE IN GREEN.
UH, MODIFIED WOULD MEAN, UH, EVERYTHING IS GOOD EXCEPT FOUR.
THERE'S SOME QUALIFYING ITEM AND THEN DISCLAIM AND ADVERSE, UH, WOULD BE THE WORST.
SO THE CITY DID RECEIVE AN UNMODIFIED OPINION.
UH, THAT IS THE HIGHEST LEVEL OF ASSURANCE THE CPA CAN PROVIDE.
UH, YOU MIGHT RECALL LAST YEAR THEY DID NOT.
THEY RECEIVED A MODIFIED OPINION.
UH, THERE WAS AN AREA RELATED TO THE EDC THAT WE WEREN'T ABLE TO GET ANY EVIDENCE OVER.
SO WE WEREN'T ABLE TO PROVIDE ANY ASSURANCE AND HAVE TO MODIFY OUR OPINION FOR THAT THIS YEAR.
UH, THE CITY WAS ABLE TO GATHER THAT EVIDENCE, UH, WHICH WAS GREAT, AND WE WERE ABLE TO, UH, DO ALL THE TESTING NECESSARY.
SO, UH, GOOD IMPROVEMENT THERE FROM OUR PERSPECTIVE.
AND, UH, APPRECIATE, UH, CHRISTINA, THE REST OF OUR TEAM, UH, REALLY, UH, GETTING US ALL THE INFORMATION.
UH, A LITTLE SHORT SHORTHANDED THIS YEAR.
UH, BUT, BUT DID A GREAT JOB OF ULTIMATELY GETTING US EVERYTHING WE NEEDED TO GET THERE.
SO THIS IS AS OF, AGAIN, SEPTEMBER 30, 22.
AND FOR THE YEAR ENDED, SAME, UH, FIRST BULLET, TOTAL ASSETS
[00:05:01]
EXCEEDED TOTAL LIABILITIES BY 204,000, SORRY, 204,693,000.UH, SECOND BULLET, THE CITY HAD AN OVERALL INCREASE IN NET POSITION DURING THE YEAR OF ABOUT 25 AND A HALF MILLION.
TODAY'S GOVERNMENTAL FUNDS REPORTED A COMBINED ENDING FUND BALANCE OF ABOUT 34.2 MILLION, WHICH WAS AN INCREASE OF ABOUT 14.7 MILLION FOR THE YEAR.
UH, LAST BULLET, AN UNASSIGNED FUND BALANCE IN THE GENERAL FUND WAS ABOUT 16.4 MILLION, WHICH IS 86% OF YOUR ANNUAL GENERAL FUND EXPENDITURES.
UH, SO THAT'S A BENCHMARK WE LOOK AT.
G F O A RECOMMENDS AT LEAST, UH, TWO MONTHS.
SO YOU'RE SITTING, UH, IN A GOOD POSITION THERE, UH, 86% OF THE YEAR.
SO A HUNDRED PERCENT BEING ONE YEAR.
UM, WE, WE USED TO SAY THREE TO SIX MONTHS.
SO YOU, YOU, YOU HAVE A HEALTHY RESERVE THERE IN THE GENERAL FUND.
UH, CITY, CITY REVENUES, THIS IS GOVERNMENTAL ACTIVITIES.
SO IT DOES NOT INCLUDE YOUR BUSINESS TYPE ACTIVITIES.
PIE CHART HERE TO GIVE YOU AN IDEA AND PICTURE OF WHERE THOSE REVENUES ARE COMING FROM.
UH, GO THROUGH THE BULLETS HERE AT THE BOTTOM.
YOUR TOTAL GOVERNMENTAL REVENUES FOR THE YEAR WERE 56,884,000.
WE'LL SEE SOME OF THOSE COMPONENTS IN THE BULLETS TO FOLLOW PROPERTY TAXES.
THEY MAKE UP 25% OF YOUR REVENUES.
UH, 14,256,000 INCREASE OVER PRIOR YEAR.
UH, 12 MILLION MILLION 479,000.
UH, THAT WAS JUST APPRAISED VALUES INCREASING, DROVE THAT INCREASE THERE.
SO A LITTLE OVER A MILLION DOLLAR PICKUP THERE.
UH, CAPITAL GRANTS AND CONTRIBUTIONS WERE 37%, AROUND 21 MILLION.
UH, 0.7 MILLION THERE CHARGES FOR SERVICES, 16%, UH, 8.8 MILLION IN PRIOR YEAR, ABOUT 6.2 MILLION.
YEAH, I GOT A LITTLE MESSED UP THERE.
UM, SO THIS IS GOVERNMENTAL ACTIVITIES.
UH, EXPENSES, UH, TOTAL GOVERNMENTAL EXPENSES FOR THE CURRENT YEAR, 33,232,000.
UH, PRIOR YEAR WAS 30,706,000.
UH, COMPONENTS HERE AT THE BOTTOM.
PUBLIC SAFETY MAKES UP 16% OF THAT.
MAKES UP 15%, CLOSE TO 5 MILLION.
AND PRIOR YEAR WAS, UH, 3.7 MILLION.
CITY ADMINISTRATION, 13%, UH, 4 MILLION, THREE 54,000 PRIOR YEAR, ABOUT 2.9 MILLION.
UH, BUSINESS AND DEVELOPER SERVICES MAKES UP 7%, UH, CLOSE TO 2.2 MILLION WITH, UH, PRIOR BEING 3.9 MILLION.
UH, LAST BULLET INTEREST IN FISCAL CHARGES.
UH, 31%, ABOUT 10.5 MILLION PRIOR TO, UH, CLOSER TO 7.8 MILLION
OKAY, SO THAT WAS A LOOK AT THE GOVERNMENT-WIDE LEVEL.
UH, FOR GOVERNMENTAL ACTIVITIES.
THIS IS, LIKE I MENTIONED, UH, THIS IS THE MORE GRANULAR LOOK FUND LEVEL.
THE LEFT COLUMN IS THE GENERAL FUND.
THAT'S WHERE THE MAJORITY OF YOUR ACTIVITY OCCURS FOR THE GOVERNMENTAL SIDE, UH, WORKING RIGHT? YOU'VE GOT SOME, UH, DEBT SERVICE FUNDS AND SPECIAL REVENUE FUNDS HERE.
UH, WHAT I'VE CIRCLED IS THE NET CHANGE IN THESE FUND BALANCES.
SO AT THE TOP, WE'VE GOT REVENUES BELOW THAT, WE'VE GOT EXPENDITURES, SOME OTHER, UH, SOURCES AND USES.
SO JUST WORKING LEFT TO RIGHT, YOUR GENERAL FUND PRODUCE A SURPLUS OF SIX AND A HALF MILLION.
THAT'S WHAT'S FLOWING INTO THAT.
UH, 80%, 86%, WHATEVER THAT FIGURE WAS OF UNASSIGNED FUND BALANCE I MENTIONED EARLIER.
SO THAT SURPLUS IS FLOWING IN THERE AND CREATING THAT RESERVE, UH, DEBT SERVICE FUND IS OPERATING AT A SURPLUS.
IT SHOULD, IT SHOULD BE BREAK EVEN OR SURPLUS.
IF IT'S OPERATING IN A DEFICIT, EVENTUALLY YOU'RE GONNA HAVE TO REFILL THAT.
SO, SO THAT'S WORKING AS EXPECTED.
CAPITAL IMPROVEMENTS FUND, IT OPERATED AT A DEFICIT THIS YEAR.
UH, THERE WAS A TRANSFER OF, UH, LAND HELD FOR INVESTMENTS, UH, OVER COTTONWOOD.
UH, THAT WAS THE RIGHT FORM OF THAT.
SO THAT'S, THAT'S WHAT THAT CHANGED THERE.
UM, RIVER CREEK, UH, SMALL DEFICIT, 565003.4 MILLION FOR THE COTTONWOOD LGC.
THERE'S BUDGET, ACTUAL SCHEDULES OF ALL YOUR SPECIAL REVENUE FUNDS, ALL YOUR, UM, BUT THIS IS YOUR GENERAL FUND, WHICH AGAIN, IS WHERE THE MAJORITY OF YOUR ACTIVITY OCCURS.
SO THE LEFT COLUMN HERE IS YOUR FINAL BUDGET.
THAT WOULD BE YOUR, YOUR BUDGET ADOPTED AND ALL AMENDMENTS THAT YOU'VE APPROVED.
OKAY? SO REVENUES AT THE TOP, IT'S EXPENDITURES BELOW THAT.
AND THEN THE NET AT THE BOTTOM, UH, CIRCLED HERE, ABOUT 719,000 IN THE MIDDLE IS ACTUAL.
AND THEN THE RIGHT IS THE VARIANCE.
SO HOW DID YOU FARE RELATIVE TO YOUR BUDGET? UH, YOU CAN SEE REVENUES YOU BUDGETED 22, UH, MILLION 444,000.
ACTUALS CAME IN HIGHER BY ABOUT 2.8 MILLION.
THAT WAS PRIMARILY SALES TAX AND, UH, PERMITS.
AND, UH, OTHER CHARGES FOR SERVICES THAT CAME IN OVER EXPENDITURES, UH, CAME IN UNDER,
[00:10:01]
SO BUDGETED 21,875,000, UH, CAME IN UNDER BY TWO POINT ABOUT 2.7 BILLION.UH, THAT WAS PRIMARILY CAPITAL OUTLAY AS WELL AS SEVERAL DEPARTMENTS.
UH, THAT CAME IN UNDER BUDGET.
SO ALL THIS FLOWED INTO POSITIVE, UH, BOTTOM RIGHT THERE WAS A, IS THERE A B IF I COULD? NO, SORRY.
UH, THAT WAS YOUR OVERALL BUDGET VARIANCE IN THE POSITIVE.
OKAY, SO THAT WAS ALL THE GOVERNMENTAL SIDE.
I JUST GOT A FEW MORE SLIDES FOR YOU.
UH, THAT WAS ALL THE GOVERNMENTAL SIDE, BUT YOU ALSO HAVE THE BUSINESS TYPE ACTIVITY SIDE.
THAT MEANS DO OPERATE LIKE A BUSINESS, UH, HENCE BUSINESS TYPE ACTIVITIES.
UH, SO WE'VE GOT THE UTILITY SYSTEM AND THE SOLID WASTE SY UH, SY UH, WASTE FUND WORKING LEFT TO RIGHT.
UH, SO THESE SHOULD BE OPERATING WITH A SURPLUS, SIMILAR TO A BUSINESS.
SHOULD BE GENERATING ENOUGH, UH, POSITIVE NET INCOME TO FUND FUTURE CAPITAL EXPENDITURES THAT WILL BE NEEDED.
THE UTILITY SYSTEM HERE, UH, HAD NET INCOME, UH, ABOUT 10.8 MILLION BEFORE TRANSFERS OUT.
UH, SO THAT'S WHAT'S CIRCLED HERE IN RED SOLID WASTE, OPERATING AT A SURPLUS OF ABOUT 390,000 AS WELL.
SO IF THESE WERE EVER OPERATING AT A DEFICIT, WE WOULD LET YOU KNOW, HEY, WE NEED TO LOOK AT SOMETHING HERE, WHETHER IT'S REVENUES OR EXPENSES.
AND WE SEE THAT FROM TIME TO TIME.
BUT THIS IS CONSISTENT WITH WHAT WE HOPE AND EXPECT.
SO I MENTIONED THERE, I THINK IT'S A SEVEN YEAR IN THE BACKER REPORT, UH, JUST CLICKED OUT THE LAST FOUR YEARS.
SO THE MOST CURRENT YEAR IS ON THE LEFT HERE.
UH, THAT'S THE ACT LAST ACTUARY DATE, WHICH, UH, ACTUARIAL EVALUATION DATE, WHICH IS DECEMBER 31ST, 21.
WE'VE, I'VE CIRCLED, UH, THE NET POSITION.
UH, TYPICALLY, UH, PENSION WILL BE IN A LIABILITY POSITION.
SO, SO THAT'S WHY I LOOK, YOU MIGHT LOOK ODD TO HAVE AN ASSET AS A NEGATIVE, BUT, UH, USUALLY IT'S, IT'S, IT'S A POSITIVE FIGURE IS HOW IT'S ALWAYS REPORTED.
SO IT BEING A NEGATIVE, WHAT THAT MEANS IS THAT YOUR ASSET, UH, IS GREATER THAN YOUR PENSION LIABILITY.
SO IN THE TOP WE'VE GOT YOUR PENSION LIABILITY, WHICH IS A PROJECTION FROM YOUR ACTUARY OF 22 MILLION, 93,000.
AND THAT'S COMPARED TO A KIND OF A MORE FINITE, UH, NUMBER, WHICH IS THE MARKET VALUE OF YOUR ASSETS, WHICH IS 24,642,000.
SO WHEN YOU NET THOSE, THAT'S WHERE YOU GET THE TWO AND A HALF MILLION NET PENSION ASSET.
LAST YEAR, IT WAS CLOSE TO 896,000, JUST CIRCLED THE KIND OF THE MAIN CONTRIBUTORS HERE.
AS YOU CAN IMAGINE THAT THESE ASSETS ARE ALL IN THE, UH, STOCK MARKET OR BONDS, ET CETERA.
SO THEY'RE, THEY'RE CHANGING WITH TIME.
AND SOME YEARS THEY'RE GONNA BE UP.
YOU CAN SEE IN 2018, IT ACTUALLY HAD A DECREASE.
UM, SO THERE'S GONNA BE A LOT OF BIG SPIKES IN THE PEAKS AND VALLEYS.
UM, BUT GENERALLY, UH, IT'S IN GREAT POSITION.
UM, AVERAGE FUNDED POSITION OF, OF A PENSION IN THE UNITED STATES, UH, IN 2021 FOR A STUDY BY N C P E R S WAS 74%.
SO YOUR PENSION EXCEPTIONALLY FUNDED.
WHERE DOES THIS IMPACT YOU? UH, THE SECOND BULLET HERE THROUGH, REALLY THROUGH THE CONTRIBUTION RATES.
SO IF YOU'RE IN A POORLY FUNDED POSITION, THE ONLY PLACE YOU CAN REALLY MAKE IT UP IS EITHER BEING MORE AGGRESSIVE WITH THE INVESTMENTS OR CONTRIBUTING MORE.
SO YOU CAN SEE THAT THAT'S WHERE YOU FILL IT IN YOUR BUDGET.
THOSE PERCENTAGES ARE BASED ON PAYROLL.
SO, UH, 11.83%, UH, IS WHAT THE CITY WAS CONTRIBUTING IN 22.
UH, OTHER THAN THAT, THERE ARE SOME COMMUNICATION LETTERS.
UH, WE CALL THEM THE FIRST ONE, COMMUNICATION WITH, UH, THOSE CHARGED GOVERNANCE.
WE CALL IT THE STATUS ONE 14 LETTER THAT HAS, UH, COMMUNICATIONS REGARDING ETHICS, INDEPENDENCE.
THERE'S NOTHING I NEED TO SHARE WITH YOU CUZ IT'S ALL TYPICAL, UH, NO ISSUES IDENTIFIED.
NO MATERIAL FRAUD OR THEFT IDENTIFIED, ANYTHING OF THAT NATURE.
UH, IF I, IF THAT WAS NOTED, I'D PUT IT IN THAT LETTER AND I'D LET YOU KNOW.
UM, SO EVERYTHING'S GOOD THERE.
UH, AUDIT ADJUSTMENTS ANYTIME YOU GET AN AUDIT.
AND I'VE SEEN PLENTY WHERE THIS WASN'T DONE.
SO I, I MENTIONED THIS, UH, THE AUDITOR SHOULD BE SHARING THOSE AUDIT ADJUSTMENTS AND THOSE ARE, THOSE ARE LISTED IN THE BACK OF THIS LETTER.
SO, UM, THAT'S WHAT'S IN THAT FIRST LETTER.
THE SECOND LETTER, UH, WE DO QUITE A BIT OF WORK LOOKING THROUGH YOUR INTERNAL CONTROLS.
WE, WE, UH, COME AND VISIT DURING THE SUMMER, UM, AND JUST FOCUS ON INTERNAL CONTROLS AND PROCESSES, SEE HOW THINGS WORK.
SO WE PICK UP QUITE A BIT, UM, UH, SUGGESTIONS AND POTENTIALLY SEE SOME WEAKNESSES THERE AS WELL AS YEAR END.
SO, UH, THAT SECOND LETTER COVERS ALL OF THOSE.
UM, BUT THAT IS EVERYTHING I WANTED TO SHARE.
AND AT THIS POINT, UH, JUST WANTED TO DIRECT IT, UH, TO WHATEVER QUESTIONS YOU ALL MIGHT HAVE.
AND, AND THANKS AGAIN FOR YOUR TIME.
QUESTIONS FROM COUNSEL AND WHO'S GONNA WALK US THROUGH THE, UH, RECOMMENDATIONS.
ARE WE GONNA WALK THROUGH THOSE LATER IN OR WAS THAT PART OF THE PLAN? BECAUSE I THINK THAT'S KINDA WHAT I FOCUSED ON, WAS YOU, THE ISSUES THAT WE'RE, WE'RE SEEING
[00:15:01]
AND THE PLANS TO PUT IN PLACE OR FIX OR WHATEVER.I JUST DIDN'T WANNA GET AHEAD OF OURSELVES.
I, I CERTAINLY CAN FROM MY PERSPECTIVE, UNLESS YOU WANTED, I, I DO HAVE YOUR RESPONSES IF YOU WANT ME TO JUST, OR IF YOU THINK YOU'RE BETTER GOT, I THINK THAT'D BE FINE.
I JUST WAS HOPING TO KIND OF POP THROUGH.
I'M MORE INTERESTED ALSO TOO, AND WE HAD A LIST OF RECOMMENDATIONS LAST YEAR.
UM, BECAUSE I KIND OF FELT LIKE SOME, SOME ARE RECURRING.
UH, SO, BUT, BUT SOME ARE ELIMINATED BECAUSE I KNOW SOMETIMES WE'VE ASKED FOR STUFF, NOT
AND THEN SO WE GET BLOWN OFF CUZ LIKE SIX MONTHS SUDDEN LIKE, HEY, WHERE ARE WE AT ON S YEAH.
AND SO IT SEEMS LIKE IF WE KEEP HAVING RECOMMENDATIONS EVERY YEAR, I WOULD THINK AT SOME POINT IF YOU'RE A FINE-TUNED MACHINE, YOU WOULD HAVE A NEW RECOMMENDATION OR IT'D BE SOMETHING REALLY SMALL.
AND THEN, UM, SO I DON'T KNOW IF IT WAS, AND THEN I'D ALMOST LIKE THE, THE REASON I WAS THINKING A SEPARATE TIME YEAH.
AND THEN WHAT'S JAMES'S PLAN TO MAKE SURE THIS IS FIXED.
CUZ LAST YEAR ISAAC HAD SOME IDEAS, BUT I DON'T KNOW THAT HE IMPLEMENTED ANY OF THEM.
UM, AND SOME DID GO, I'LL SAY THAT, I DON'T KNOW IF IT WAS ISAAC OR WHOMEVER, BUT, SO YEAH, IN THE FUTURE, PROBABLY NEXT YEAR'S AUDIT OR WHATEVER, THAT YOU HAVE A 12 RECOMMENDATIONS MM-HMM.
JUST SO WE CAN SEE IT GRAPHICALLY MM-HMM.
YEAH, THAT'D BE GREAT TO SEE THAT.
WE'LL TALK ABOUT THIS, GET IN TWO MONTHS AND THEN IF I FIND OUT LIKE 10 MONTHS FROM NOW, IT'S THE SAME THINGS, THEN I GET MAD AND FRUSTRATED CUZ I'M LIKE, WELL WHY, WHY ARE YOU DOING THIS? YEAH.
IF WE'RE NOT GONNA TAKE ANY OF THE ADVICE.
IN FACT, I, I MEAN I COULD ADD THAT IN AND RECIRCULATE IT, YOU KNOW, BUT TOMORROW'S FRIDAY, SO I CAN DO THAT IN THE MORNING.
IT MIGHT NOT BE 2:00 AM BUT IT'LL BE 8:00 AM IF YOU'LL, JOHN, I GOT A QUESTION FOR YOU.
PUT YOU ON THE HOT SEAT HERE PLEASE.
SO CHAPTER 1 0 3 SAYS THE AUDITS GOTTA BE DONE IN OUR HANDS READY FOR THE PUBLIC WITHIN 180 DAYS, RIGHT? SO AS THE AUDITOR, I WAS READING THROUGH YOUR STUFF AND MM-HMM.
SO THAT LEAD ME TO BELIEVE IT'S ALL YOU GUYS' FAULT.
THAT'S WHY WE'RE BROKE STATE LAW.
WELL, AND I'LL SAY THIS CAUSE STATE LAW IS 180 DAYS.
IT DOESN'T SAY LIKE, IF YOU HAVE, NOW I KNOW WHAT THE ISSUE IS.
BUT I'M WONDERING HOW COME THAT ISSUE ISN'T IN HERE? BECAUSE IF YOU SAY THERE'S NO ISSUES AND NO SIGNIFICANT PROBLEMS, BUT YOU'RE, YOU'RE 60 SOMETHING DAYS LATE.
ALTHOUGH WE HAVE TO HAVE, THEN I'M LIKE, IS IT THE CITY MANAGER THAT NEEDS TO ALERT TO COUNCIL BACK IN JANUARY? LIKE, HEY, MM-HMM.
UM, YEAH, WE'RE, WHEN I, WHEN THAT SAYS NO SIGNIFICANT DIFFICULTIES, UH, I, I SEE WHAT YOU'RE SAYING.
FROM OUR PERSPECTIVE, UH, IT, THAT PARTICULAR STATEMENT ISN'T BASED ON TIME, IT'S BASED ON THEY ARE WORKING WITH US TO GET ALL THE INFORMATION THAT WE NEED.
UM, BUT WITH RESPECT TO TIME, I AGREE.
I MEAN, THE GOAL WOULD BE MARCH 31ST.
THAT'S WHAT THE GOAL SAID EARLIER.
WELL, WELL I HOPE WE ALIGN OUR GOALS WITH, WITH WHAT'S REQUIRED.
BUT SO HOW DO YOU KNOW THIS? SO WE HAD A CORRUPT SITUATION THERE IN MY MIND, MY OPINION SEVERAL YEARS AGO, KNOWING THAT WE HAD A STAFFING ISSUE MM-HMM.
BUT HOW DO YOU, AS THE AUDITOR KNOW IT'S A STAFFING ISSUE AND IT'S NOT SOMEONE MAKING CHANGES IN THE BOOKS AND TRYING TO GET STUFF FIGURED OUT.
HOW DO YOU KNOW IT'S A LEGITIMATE OR IT'S JUST A BLOWOFF? BECAUSE IN MY MIND AS, AS A, AS LIKE ELECTED OFFICIAL MM-HMM.
AND SO I TRUST WHAT I HEARD THIS YEAR WAS ACCURATE.
BUT AS AN INVESTOR THAT'S USING THIS REPORT MM-HMM.
UM, I WAS PHYSICALLY HERE, SO I WAS SEEING WHAT WAS GOING ON.
UM, COULD COULD THEY BE SPENDING THEIR TIME DOING NEFARIOUS THINGS? THAT'S POSSIBLE.
UH, DO WE SHARE, I I WOULD ARGUE THAT WE ARE ABOUT AS TRANSPARENT OF A
[00:20:01]
FIRM LIKE YOU, YOU CITED ONE THING IN THIS LETTER, BUT IN THE OTHER LETTER THERE'S, UH, SEVERAL MATERIAL WEAKNESSES CITED.UH, SEVERAL SIGNIFICANT DEFICIENCIES.
I THINK IF YOU WOULD COMPARE THAT LETTER TO THE AUDITOR BEFORE US, I THINK YOU'D FIND THAT WE'RE ABOUT AS TRANSPARENT AS IT GETS.
UH, THEY DIDN'T CITE ANY MATERIAL WEAKNESSES.
BUT WE GOT GREEN LIGHTS EVERY YEAR.
BUT I MEAN, I THINK EVEN, BECAUSE I KNOW YOU, YOU'VE READ THROUGH THESE, LIKE WE'RE, THEY'RE, WE, WE HOLD NOTHING BACK.
EVERYTHING THAT WE SEE, WE, WE COMMUNICATE, UM, AS FAR AS WHEN THE OPINION IS ISSUED.
UM, SO I'M REQUIRED PROFESSIONALLY, I CAN'T ISSUE AN OPINION UNLESS YOU, UNLESS, UH, THE CITY WOULD BE COMFORTABLE WITH A DIS THOSE THOSE OTHER OPINIONS I I MENTIONED EARLIER, DISCLAIMED DIVERSE, I CAN OFFER THOSE NEARLY AT ANY TIME.
SO IF THAT, IF, BUT TYPICALLY THE CITY, MOST CITY OR ANY CITY DOESN'T WANT THAT.
SO THOSE WOULD BE IF, IF SOMEONE SAYS, I NEED YOU TO ISSUE AN AUDIT OPINION BEFORE YOU GET THE EVIDENCE THAT YOU ARE SEEKING, BEFORE YOU GET THE EVIDENCE YOU NEED TO DO YOUR JOB, WE WOULD HAVE TO ISSUE AN OPINION THAT'S, THAT'S NOT IDEAL.
THAT WOULD BE EITHER MODIFIED, MORE LIKELY WOULD BE ADVERSE OR DISAPPOINTED.
SO HOW DO WE GET TO WHERE IT'S DONE BY MARCH 30TH? LIKE LET'S SAY JAMES IS NOT PAYING ATTENTION AND YOU KNOW, IT'S COMING UP ON FEBRUARY.
I MEAN I I I GUESS I'M HOPING LIKE AT SOME POINT I DON'T KNOW THAT ANYONE ON THE COUNCIL GOT NOTIFIED THAT, HEY, WE, WE'VE GOT ISSUES.
THIS THING'S GONNA BE LATE, IT'S GONNA GO PAST THE STATUTORY DEADLINE.
AND I'M SORT OF GOING, IF WE'RE NOT MADE AWARE OF, LET'S SAY HYPOTHETICALLY THIS THING DRUG GOT DONE MONTH AND WE LOST OUR CREDIT RATING BECAUSE WE COULDN'T PROVIDE IT.
WE WOULD ALL HAVE EGG ON OUR FACE AND I'D BE SITTING THERE GOING LIKE, WHY IS NO ONE TELLING THE CITY COUNCIL? AND IF THEY'RE TRYING TO PUT THE FIRE OUT AND YOU'RE AUDITING, I WOULD THINK YOU'RE THE PERSON WHO'S GONNA SAY, LOOK, CITY COUNCIL, I DON'T KNOW IF YOU KNOW THIS OR NOT, BUT WE'RE NOT GONNA HIT THE STATE GUIDELINE BECAUSE IT'S MARCH 1ST AND NO ONE'S, NO ONE'S GIVING US OUR THINGS.
I MEAN, THAT'S WHAT I'M JUST TRYING TO FIGURE OUT IS AT SOME POINT, I DON'T WANT THE AUDITOR TO BE FRIENDS WITH ANYBODY.
I WANT THE AUDITOR JUST TO BE THE ONE THAT, YOU KNOW, LIKE, HEY.
SO IT'S, IT'S NOT NECESSARILY THE AUDITOR'S RESPONSIBILITY TO TELL Y'ALL THAT'S MY RESPONSIBILITY.
AND WE DID TELL Y'ALL THAT WE WEREN'T GONNA MAKE THE DEADLINE.
AND HERE'S AFTER I BROUGHT IT UP.
BUT AFTER I BROUGHT IT UP AND SAID, HEY, THE LAST MEETING OF MARCH I EMAILED AND I SAID, WHY IS THE AUDIT NOT ON IT'S DUE? AND THE QUESTION WAS, WELL I THINK IT'S NOT DUE TILL SUMMER.
SO, OKAY, THE ONLY REASON YOU'RE BRINGING IT UP IS BECAUSE I'M BRINGING IT UP AND I DON'T WANNA BE PAYING ATTENTION TO DEADLINES.
I WANT THE, I WANT SOMEONE OUTSIDE OF ME AND THE COUNCIL TO BE LIKE, SWEATING BULLETS GOING, WE GOT MARCH 30TH IS COMING.
SO YEAH, TELL US AFTER WE'VE ALREADY BEEN NOTIFIED YOU MISS A DEADLINE ISN'T WORKING.
SO I WAS SWEATING BULLETS AND, AND I THOUGHT I HAD NOTIFIED COUNSEL.
I MAYBE I DIDN'T OR DIDN'T NOTIFY YOU IN ENOUGH TIME, BUT I HIT THE GROUND JANUARY 17TH.
BUT WE DO HAVE REQUIREMENTS, NOT JUST STATUTORY REQUIREMENTS, NOT JUST REQUIREMENTS IN OUR CITY CHARTER, NOT JUST REQUIREMENTS IN OUR FINANCIAL POLICY, BUT VIA OUR BONDS WE'RE REQUIRED TO POST THE, THE FINANCIAL STATEMENTS ON A NATIONAL WEBSITE KNOWN AS EMMA, THE ELECTRONIC MAR, UH, MUNICIPAL MARKET ACCESS WEBSITE BY MARCH 31ST.
AND WE WERE IN CONTACT WITH JOHN AND WE WERE, WE WERE GETTING DATES AS TO WHEN WE THOUGHT WE WERE GONNA BE FINISHED.
AND WHEN WE KNEW WE COULDN'T MAKE IT BY MARCH 31ST, WE ASKED JOHN FOR A DRAFT FINANCIAL, WHICH HIS FIRM WAS ABLE TO PRESENT.
AND WE DID UPLOAD THAT TO THE WEBSITE.
IT'S NOW BEEN REPLACED WITH THE ACTUAL AUDITED FINANCIALS.
SO IDEALLY, WHEN DOES THE AUDIT PROCESS LIKE BEGIN? WHEN DO Y'ALL LIKE KIND OF START LIKE DAY ONE, KIND OF LIKE COLLECTING? SO JOHN AND I HAVE ALREADY BEGUN TO TALK ABOUT THAT.
AND INTERIM WORK IS REALLY WHAT YOU NEED TO BE DOING.
AND SO JOHN AND I WILL MEET, I MEAN NOW THAT WE HAVE THE AUDIT OUT, WE'LL MEET PROBABLY, WHAT DO YOU THINK, JOHN? IN THE MONTH OF JUNE? YEAH.
AND THEN WE WILL SET A CALENDAR AND WE'VE ALREADY TALKED ABOUT, UH, GETTING ON, ON THEIR CALENDAR FOR INTERIM WORK THAT WILL BEGIN IN THE AUGUST SEPTEMBER TIMEFRAME.
AND THEN THEY CAN'T DO WHAT, THAT'S INTERNAL CONTROL WORK, BUT THEY CAN'T REALLY DO SUBSTANTIVE AUDIT TESTING, WHICH IS THE TESTING OF THE BALANCE AND THE TRANSACTIONS UNTIL THE CITY PROVIDES A TRIAL BALANCE.
AND WE'RE NOT ABLE TO DO THAT UNTIL ABOUT MID-NOVEMBER RIGHT BEFORE THANKSGIVING.
AND THE REASON FOR THAT IS YOU HOLD OPEN YOUR BOOKS DURING THE MONTH OF OCTOBER AND YOU GATHER INFORMATION ABOUT ACCOUNTS PAYABLE, WHAT YOU'RE PAYING YOUR SUPPLIERS, YOU BOOK ENTRIES THAT YOU DON'T BOOK MONTHLY.
YOU HAVE ANNUAL ENTRIES FOR DEPRECIATION AND FOR LEASES AND FOR OTHER TYPE ITEMS THAT ARE ONCE A YEAR TYPE ENTRIES.
AND WE'LL BE BOOKING THOSE AND THEN WE'LL CLOSE OUT
[00:25:01]
MID-NOVEMBER AND THEN WE'LL SEND THAT TRIAL BALANCE TO JOHN'S TEAM AND THEN THEY CAN BEGIN THE AUDIT PROCESS.AND I'M HOPING, UM, AND, AND JOHN HASN'T COMMITTED, OR WE HAVEN'T GOTTEN IT ON THE CALENDAR, BUT I'VE MADE THE STATEMENT THAT I WOULD LIKE THE AUDIT A, A DRAFT AUDIT OUT IN LATE JANUARY OR MID, UH, I'M SORRY, UM, LATE DECEMBER OR MID UH, JANUARY.
AND THEN THAT'LL GIVE US TIME TO PROCESS THAT AND GET EVERYTHING TO COUNCIL AND FINALIZED IN THE FEBRUARY TIMEFRAME.
AND THEN HAVE EVERYTHING POSTED BY MARCH, WHICH IS THE STATUTORY REQUIREMENT.
SO WE DO HAVE A PLAN AND PART OF HIS RECOMMENDATIONS IN THE, IN THE INTERNAL CONTROL WEAKNESSES, WE DON'T CURRENTLY HAVE A ACCOUNTING STATEMENT OF POLICY OR, OR PROCESS FOR CLOSING OUR BOOKS ON AN ANNUAL BASIS.
AND I AGREE WITH JOHN THAT WE NEED THAT, AND I'VE ALREADY DISCUSSED THAT WE'RE, WE'RE GONNA PREPARE THAT PROBABLY IN THE MONTH OF JUNE.
AND THEN I'VE ASKED HIM IF I CAN SEND THAT TO HIM FOR REVIEW AND JOHN HAS GRACIOUSLY SAID YES THAT, THAT HE WOULD REVIEW THAT FOR US.
AND SO WE DO HAVE A PATH FORWARD AND NEXT YEAR, UM, I'M SURE IS GOING TO BE DIFFERENT.
SO I I GOT OPEN THE BUDGET, WE GET TOLD WHAT WE NEED TO HELP GET YOU GUYS THERE ALSO.
SO WE MISSED THE, THE DEADLINE, THE STATUTORY DEADLINE BY TWO MONTHS.
WHAT'S THE PENALTY FOR THAT? WHAT'S THE CONSEQUENCE FOR THAT? SO THE CONSEQUENCE ACTUALLY COMES IN THAT, UM, WHEN WE WERE ISSUING BONDS AND NOT HAVING A FINANCIAL STATEMENT AND I HAD TO GO BEFORE, UH, STANDARD AND PORES IN A DISCLOSURE SESSION AND A DISCLOSURE INTERVIEW, I HAD TO DISCLOSE THAT WE DIDN'T HAVE THAT FINANCIAL AND, AND JUST AS OUR MAYOR JUST MENTIONED, THEY COULD HAVE DOWNGRADED US IN THE BOND RATING.
THEY ACTUALLY WERE VERY FAVORABLE IN THEIR COMMENTS.
AND ALTHOUGH OUR BOND RATING STAYED THE SAME, THE COMMENTS WERE UPGRADED FROM BEFORE.
SO, SO IT COULD AFFECT OUR BOND RATING.
THAT ONE CONSEQUENCE ARE ANY OTHER CONSEQUENCES.
I MEAN, WHY WEREN'T THE TEXAS RANGERS DESCENDING UPON US AND THROWING YOUR I DIDN'T SEE ANYTHING IN THE STATE STATUTE SHEETS HAD IT DONE THERE.
SO I'M WONDERING COME FROM IS IF, WELL I WANTED TO KNOW LIKE HOW FREQUENTLY DO THEY, DID MOST CITIES POST A, UH, IN MARCH THERE, THE, THE TEMPORARY ONE, KINDA LIKE WHAT Y'ALL DID, THE PRELIMINARY VERSUS, I MEAN, HOW COMMON IS THAT? OR IS THIS, ARE WE ONCE AGAIN YEAH, IT COMES, COMES UP.
UM, I WOULD, YOU KNOW, NOT, YEAH, THERE'S, THERE'S, IT'S THE SAME SITUATION.
YOU KNOW, UH, FINANCE DIRECTOR, I WAS, I WAS TELLING ANNE EARLIER THIS WAS, I'VE NEVER SEEN SO MANY CFO OR FINANCE DIRECTOR POSITIONS, UH, THAT LEFT RIGHT BEFORE, UH, AUDIT SEASON.
AND THAT WAS A, THAT WAS A BIG IMPACT TO THIS CITY.
AND I HOPE THE RED FLAG TO ME WHEN THE PERSON'S LIKE, HEY, IT'S ABOUT TIME FOR ME TO MOVE ON.
UM, YOU GUYS GETTING READY TO START THE AUDIT? SO
I, I LOOK AT LIKE THIS IMPACT FEES, WE GOTTA DO THAT EVERY SEVEN YEARS OR WHATEVER.
THERE'S NO PENALTY FROM THE STATE.
ALL THESE THINGS WE'RE SUPPOSED TO DO, THERE'S REALLY NO PENALTY.
WHICH IS WHY HU REGULARLY MISSES ALL THESE DEADLINES BECAUSE YEAH, THE RANGERS ARE NEVER COMING IN.
BUT AT THE END OF THE DAY, WE'RE ARGUING ABOUT OUR CASH BALANCE.
AND THERE AT CREW, WHATEVER YOU SAID, 24% AND WE HAD 86% RESERVES.
WE SPENT ALL NOVEMBER DECEMBER ARGUING HOW MUCH CASH DO WE EVEN HAVE? WE DON'T EVEN KNOW.
UM, SO TO ME SOME OF THIS IS IMPORTANT CUZ WE ARGUE LESS WHEN YOU HAVE, CUZ THAT'S WHAT I LIKE ABOUT MATH.
UNLESS YOU'RE COOKING THE BOOKS, IT'S ALWAYS FOUR.
AND NOT TO DEVIATE FROM WHAT THAT IS, BUT I THINK BACK TO TIMELINE, WE'VE GOTTA HAVE SET DATES OF GETTING DELIVERABLES.
THERE'S, THERE'S NO, IT'S NOT MURKY AS FAR AS WHAT WE NEED.
WE SEND A PVC LIST, WHICH WE CALL PROVIDED BY CLIENT LIST.
WE SEND IT, UH, EITHER BEGINNING OF OCTOBER OR END OF SEPTEMBER.
IT'S GOT EVERYTHING WE NEED FOR YEAR END.
SO ASIDE FROM ALL THE INTERIM WORK, WHICH WE ALL, WE WE'RE GOING TO DO AND HAVE ALWAYS DONE, THIS IS EXACTLY WHAT WE NEED.
IT'S ALL THOSE THINGS YOU MIGHT THINK BANK RECONCILIATIONS FOR ALL ACCOUNTS, BANK STATEMENTS, UH, YEAR END BANK STATEMENTS, UH, VARIOUS THINGS, SCHEDULES.
SO IF WE CAN SET DATES WHERE WE GET THOSE, THEN WE MAKE OUR SELECTIONS.
AND THEN WE NEED THE SUPPORT FOR THOSE SELECTIONS.
SO THESE, EACH, EACH ONE OF THESE STEPS ARE, ARE VITAL FOR US TO, TO MAKE THE BEST USE OF OUR TIME.
BECAUSE HU IS NOT OUR ONLY AUDIT.
SO WE, WE CARVE OUT TWO WEEKS FOR PROFESSIONALS TO DO THE AUDIT.
SO WHEN WINDOWS ARE MISSED AND, AND WE'RE NOT GETTING ALL THE INFORMATION WITHIN THAT TIME, WE DON'T MAXIMIZE THAT TIME.
[00:30:01]
THEN WE MIGHT HAVE TO LOOK AT IT AGAIN IN THREE WEEKS.AND THEN IT MIGHT BE A FOLLOW UP OF, HEY, I GOT THE, I GOT 20 MORE 20% OUT OF THIS, BUT I STILL NEED, I STILL NEED THIS, THAT, AND THE OTHER.
SO IT'S THE, IT'S THIS, THIS PROCESS VERSUS HERE'S WHAT I NEED.
AND SO IT'S JUST SOMETIME CAN YOU GUYS MEET AND COME UP THE TIMELINE TO DELIVER WHAT ANN WANTS? CAN YOU SHARE THAT WITH THE COUNCIL TO WHERE, AND COMMIT TO US THAT WE ALL AGREE THIS IS A DEAL.
AND IF YOU'RE WAITING THREE WEEKS AFTER A DEADLINE AND NOT GETTING A RESPONSE, YOU'RE ALERTING THE COUNCIL.
LIKE, DON'T MEAN TO ALARM YOU GUYS, BUT I DON'T WANT TO GET CHEWED OUT NEXT JUNE OR JULY.
UM, YEAH, YOU GUYS WANTED STUFF CUZ I THINK UPDATING US IS A WHOLE LOT BETTER THAN, UM, ALRIGHT, I HAVE A COUPLE MORE QUESTIONS.
DO AMENDMENTS WHEN WE, WHEN WE DO BUDGET AMENDMENTS, DOES THAT BOTHER YOU AS AN AUDITOR? BECAUSE SOMETIMES I'VE HEARD THAT AUDITORS REALLY DON'T LIKE AMENDMENTS AND THEN WE START DEBATING DO WE WANNA DO AN AMENDMENT? BUT DOES THAT BOTHER YOU IF WE DO AN AMENDMENT OR IS IT JUST ANOTHER TRANSACTION? IT DOESN'T BOTHER ME.
UM, I, IT'S PREFERENCE ON FOR ME AS FAR AS UH, YOU KNOW, SOME, SOME DO IT.
I I THINK IT'S, I'LL SAY THE THING THAT I FIND INTERESTING JUST ON A PERSONAL LEVEL IS WHEN AMENDMENTS ARE PASSED, WELL AFTER SEE THIS SOMETIME.
THAT'D BE THE ONLY THING THAT'S, I WOULD SAY THAT'S THE ONLY CAVEAT IS WHEN WE'RE LIKE, OH YEAH, AFTER WHAT, AFTER MONEY SPENT.
WELL AFTER WAY AFTER YOUR END.
BECAUSE IT'S LIKE, HEY, LIKE AT SOME POINT LET'S BUDGET MINUTE TO CLOSE THE BOOK.
NO, BUT, YOU KNOW, AUDITING SO MANY CITIES, I I, I SEE THAT FROM TIME TO TIME AND I'M LIKE, WHAT THE HECK IS THE POINT OF MAKING A BUDGET AMENDMENT TO A FISCAL YEAR THAT'S CLOSED AND WE'RE FOUR MONTHS LATER? WOW.
IS THIS NOT A PLANNING TOOL INTO, THAT'S WHY I SAID WHY ARE WE MAKING A BUDGET AMENDMENT AFTER WE ALREADY SPENT THE MONEY? SHOULDN'T WE MADE THE BUDGET FIRST AND THEN SPENT THE MONEY TO THAT POINT? I, I WOULD AGREE WITH THAT.
GENERALLY IN, IN A COURSE LIKE IDEAL WORLD, OF COURSE THERE'S, THERE'S OPERATIONAL THINGS AND Y'ALL ONLY MEET SO MANY TIMES.
SO LOOK, I DON'T, I DON'T, I CAN'T REALLY GO MUCH FURTHER THAN THAT WITH, WITH, YOU KNOW, WITHOUT SPECIFICS.
WELL THE, THE, THE SPECIFIC WAY THAT THIS WOULD BE APPLIED IS, IS I HAVE BEEN ADVISING TO HOLD THE BUDGET AMENDMENTS THAT WE DO AS WE HAVE ACTION ITEMS THROUGHOUT THE YEAR UP UNTIL MID BUDGET YEAR.
AND THEN DO ONE AMENDMENT RATHER THAN DOING LOTS OF SMALL ONES ALONG THE WAY.
AND THAT WAS UNDER ADVICE THAT I HAD BEEN GIVEN BY PREVIOUS AUDITORS THAT WE WOULD RATHER YOU DO ONE BUDGET AMENDMENT MID-YEAR THAT COLLECTS ALL THE ACTION ITEMS INTO ONE THING RATHER THAN A BUNCH OF INDIVIDUAL BUDGET TRANSACTIONS THAT ARE CHANGING THROUGHOUT TIME.
SO, AND I CAN SEE WHY AN AUDITOR WOULD SAY THAT.
CAUSE IT SURE MAKES THE, THE BUDGET CAN BE A LITTLE PAINFUL AUDITING WHEN THERE'S A LOT OF AMENDMENTS.
UM, I'LL TELL YOU, AND HONESTLY, SOME OF THIS MIGHT SHOW IT A LITTLE BIT.
I DON'T, I DON'T EVER WANT TO DIRECT WHAT ANYBODY DOES.
I'M A SCOREKEEPER, I'M AN UMPIRE.
THEY'RE LIKE AN ANALOGY, RIGHT.
I'M JUST, I'M JUST HERE CALLING BALLS AND STRIKES.
I DON'T WANT TO BE A PART OF THE GAME.
SO, BUT YOU ARE CUZ YOU PUT SOME COACHING IN HERE.
I'M PROVIDING HEY, COACHING TO SAY IS, HEY, IT'LL MAKES YOU QUICKER IF WE ONLY HAVE THE MID-YEAR BUDGET AMENDMENT THAT MAKES IT FASTER TO GET SOME OF THE STUFF.
CUZ YOU DON'T HAVE TO GO THROUGH ALL THESE OTHER PLACES.
BUT IF, IF THERE'S A REASON FOR Y'ALL TO DO IT A DIFFERENT WAY THAT'S MORE FUNCTIONAL OR MAKES MORE SENSE, THEN I, I DON'T WANNA BE THE REASON YOU DO IT THAT WAY.
WHEN YOU, WHEN YOU, WHEN YOU DO HAD, SAVES 'EM A WEEK BECAUSE INSTEAD OF FIVE BUDGET AMENDMENTS, IT WAS ONE WE'D HAVE THE WRONG AUDIT COMPANY CUZ YOU'D SAY WAY, WAY.
THERE'S NO WAY DOESN'T, IT'S NOT THAT DRAMATIC.
UH, YEAH, WE MIGHT BE TALKING ABOUT, YOU KNOW, A COUPLE HOURS OF SOMEBODY'S TIME.
THAT'S ALL NOT A, NOT A LOT, YOU KNOW.
IT'S NOT BUT IT'S NOT JUST HIS TIME, IT'S THE CFO'S TIME.
IT'S CITY STAFF'S TIME, IT'S, IT, IT'S, IT'S ALL THOSE OTHER ONES THAT YOU'RE ADDING UP.
DON'T THE ONLY, THE ONLY POINT I IN THIS SAME I CHANGE OUTTA TIME.
UM, I DON'T KNOW IF THIS IS ACCURATE OR NOT, BUT THE UM, WE'VE GOT BRIAN AS BEING HERE SEPTEMBER 3RD, 22 AND HE WASN'T HERE.
SO I DON'T, WHEN I READ IT, IT'S AS OF SEPTEMBER 30TH, 2022.
SO THAT MAKES YOU FEEL LIKE ANYBODY ON COUNCIL ON THAT DATE SHOULD BE THERE.
AND HONESTLY I'D HAVE TO, CAUSE AGAIN I KEEP THINKING WHAT IS SOMEONE IN LIKE FLORIDA WHO WANTS TO COME OR IOWA WANTS TO COME AND LOOK AT OUR BOND AND BUY BOND, THEY START READING ALL THIS.
UM, YEAH CUZ HIS NAME'S LISTED ON THE UH, UH, OFFICIAL CONS OFFICIAL.
WE'VE GOT IT HERE ON PAGE, DOWN THIS PAGE HERE.
THEN THERE'S A MENTION AGAIN, I'M READING ALL THIS STUFF RIGHT THOMPSON, HE IS NEW AS OF THE LAST MONTH.
MOVING IN AND PUTTING THE PRIOR COUNCIL MEMBER THERE.
I MEAN IT IS UH, SEPTEMBER 30 22.
[00:35:01]
SO ON PAGE 16 YOU GUYS WE'RE GOING THROUGH ALL HOW WE'RE OVER ON ALL THIS STUFF.IT TALKS ABOUT THE PULL FUND BALANCE OF 16.4 IN CHANGE, 12,000 ROUGHLY NONS SPENDABLE.
WHAT DOES UNASSIGNED MEAN? UH, NOT RESTRICTED ESSENTIALLY.
BECAUSE LATER ON WHICH, UH, SORRY, WHICH PARAGRAPH? ON PAGE 1616 PARAGRAPH THREE.
BECAUSE THE PARAGRAPH ABOVE THAT IS LIKE, OKAY YOU'RE COMBINED FUNDS FROM 34 MILLION, IT'S AN INCREASE OF ALMOST 15 THESE PACKAGES.
AND THAT SAYS 8.7 CONSTITUTES UNASSIGNED FUND BALANCE.
THE REMAINDER IS EITHER NONS, SPENDABLE ASSIGNED OR RESTRICTED.
AND SO WE HAVE LIKE 8.2 MILLION IN UNASSIGNED FUND BALANCE AND LATER ON WE HAVE 16 MILLION IN UNASSIGNED.
THAT'S WHAT I'M TRYING TO SAY.
ONE'S TALKING ABOUT UH, COMBINED FUND BALANCE FOR ALL GOVERNMENTAL FUNDS.
YOU'LL SEE THAT IN THE FIRST SENTENCE.
WATER WASTEWATER, THAT'S ALL GOVERNMENTAL.
THAT'LL BE LIKE CAPITAL PROJECTS LGC.
SO IN THAT PARAGRAPH, RIGHT, SO THE CITY'S GOVERNMENT FUNDS REPORTED COMBINED FUND BALANCES 34 MILLION.
MM-HMM
MM-HMM
I TOOK THAT IT'S 8.2 MILLION OF THE COMBINED, BUT THE NEXT PARAGRAPH, JUST A GENERAL REVENUE UNASSIGNED IS 16 MILLION.
AND SO I WOULD'VE THOUGHT THE COMBINED WOULD BE BIGGER THAN THE, SO IT'S NOT, AND I'LL SHOW YOU WHY HERE.
I DIDN'T PRINT THE WHOLE THING OUT.
WELL I'M GONNA COME OVER AND SHOW YOU IF I CAN FIND IT QUICK ENOUGH.
WELL WHY ARE YOU DOING THAT? THIS THIS IS ONE FOR STAFF.
SO WE GET DOWN TO LOCAL ECONOMY A LITTLE TOO.
SINCE I'VE BEEN HERE, I'VE ALWAYS SAW AN OVERINFLATED POPULATION.
BUT YOU SENT OUT AN EMAIL LIKE A COUPLE WEEKS AGO THAT SAID OUR CENSUS WAS 36,655.
BUT IN HERE WE REPORT IT'S, WE DON'T SAY CENSUS, WE JUST SAY WE'RE ESTIMATOR POPULATION AT 43,470.
AND SO I LOOK AT THAT IF I'M AN INVESTOR, THEY DON'T KNOW THAT YOU SENT THE EMAIL SAYING 36, BUT I'M LIKE, SHOULDN'T THAT BE PRETTY CLOSE TO BEING LIKE WE OUGHT TO PICK A METRIC CUZ WE USED TO REPORT OUR POPULATION CENSUS 2020 THOUGH.
NO, THE CENSUS CENSUS POPULATION ESTIMATE FOR JULY 1ST, 2022, IT'S 36,655.
SO THESE BOOKS CLOSED AUGUST, SEPTEMBER TWO MONTHS LATER.
AND SO I'M THINKING WE GOTTA BE MAYBE 37, MAYBE 38.
BUT I DON'T, IT SOUNDS LIKE WE'RE USING 2023 NUMBERS WHEN WE'RE EXPLAINING 2020 TWOS.
SO REMEMBER THE US CENSUS THAT NUMBER, THE 36,000 WAS AN OUTSIDE UNITY.
INTERNALLY THE CITY DOES PROJECT WHAT WE THINK OUR POPULATION IS.
SO WHAT WE USE IS BUILDING PERMITS, HOUSING STARTS, UH, WATER BILL, UTILITY BILLS.
AND OUR ESTIMATE IS CURRENTLY LIKE AS OF THIS MONTH, RIGHT? ABOUT 45,000.
OH DO Y'ALL MEET WITH THE I S D AND GET THEIR STUDENT ENROLLMENT NUMBERS AS WELL? YES.
AND IT'S ACTUALLY ASHLEY BAILEY WHO'S INTERNAL TO THE CITY THAT DOES THAT PROJECTION INTERNAL TO THE CITY.
NOW THE US CENSUS, THEY USE DIFFERENT NUMBERS TO DETERMINE THEIR POPULATION STATISTICS.
AND IF YOU READ ARTICLES ABOUT HOW THEY DO THAT, THEY'RE NOT SURE OR I'M NOT SURE THAT THEY'RE COUNTING EVERYBODY.
BASICALLY IT'S PEOPLE WHO ARE REPORTING IN TO THE SYSTEM AND YOU HAVE SOME PEOPLE WHO DON'T REPORT IN BECAUSE THEY'RE TRANSIENT MOVING AROUND OR BECAUSE THEY DON'T WANT TO BE COUNTED BECAUSE THEY MIGHT BE UM, UH, NOT UH, ADVERSE TO THE, TO THE THIS GOVERNMENT.
AND SO THEIR STATISTICS ARE GENERALLY LOWER THAN WHAT THE CITY'S LOOKING AT IN TERMS OF WHAT WE BELIEVE OUR POPULATION TRULY IS BECAUSE OF OUR WATER UTILITY BILLINGS.
BECAUSE EVERYBODY HAS TO HAVE WATER WHETHER THEY WANNA BE COUNTED OR NOT, THEY WANT WATER.
WE ALSO KNOW WHAT OUR PERMITS ARE RUNNING.
SO I'M GLAD YOU'RE TALKING ABOUT PERMITS CUZ WE ALSO SAY THE CITY HAS CONTINUED TO FLOURISH WITH THE CITY ISSUING 3,813 BUILDING PERMITS.
THAT CAN'T BE RIGHT BECAUSE AT THE HEYDAY I THINK WE DID LIKE 2100, 2082 RESIDENTIAL BUILDING PERMITS.
NOW OBVIOUSLY WE HAVE MULTI-FAMILY, WE HAVE COMMERCIAL, BUT THERE USED TO BE A POINT IN TIME WHERE WE WERE SENDING EMAIL TO COUNCIL ABOUT ALL THESE BUILDING PERMITS AND I THINK IT WAS ISAAC AND I SAID WAIT A MINUTE, YOU'RE INCLUDING
[00:40:01]
LIKE SPRINKLER PERMITS.YOU'RE TAKING RESIDENTIAL MULTI-FAMILY COMMERCIAL AND THEN IT'S GOT LIKE SPRINKLER AND THIS AND THIS AND THIS AND YOU GO ALL LIKE SPA AND YOU GO ALL THE WAY AT THE BOTTOM AND WE WERE USING THE BOTTOM NUMBER AND I'M LIKE, BUT YOU DON'T WANNA GO OUT THERE AND TELL THE PUBLIC THAT A SPA PERMIT IS ACTUALLY A BUILDING PERMIT.
CAUSE WHEN PEOPLE SEE BUILDING PERMITS YEAH.
SO IF WE CAN DOUBLE CHECK ON THAT'S A NUMBER, A SIMPLE SECTION.
IF WE CAN CHECK ON THAT AGAIN CUZ 3,800 SO I CAN I YOU WASH WITH A LOT OF REVENUE FROM BILLING PERMIT.
WE ACTUALLY HAVE MORE IMPACT FEES.
I I DID NOT KNOW THIS WAS AN ISSUE LAST YEAR AND I CALCULATED IT THE SAME WAY I DID THIS YEAR FROM LAST YEAR.
YEAH, BECAUSE AGAIN, I LOOK AT IT, I ALWAYS LIKE, I'M ONE OF A FEW PEOPLE I READ IN AN ENTIRE INVESTOR REPORT ON A COMPANY AND I'M ALWAYS THINKING HOW ARE THEY LYING TO ME? NOT THAT WE ARE, BUT I'M ALWAYS THINKING HOW ARE THEY LYING TO ME? CUZ SO MANY OF THEM GET CAUGHT DOING THAT.
AND THEN I ALWAYS LOOK FOR THINGS AND SOME OF THIS I'M LIKE, IT'S NOT, IT'S NOT UM, IT'S NOT MATCH NU WITH LIKE SOME OF OUR REPORTING.
UM, BUT ANYWAY, WE WILL CHECK THAT.
SO THESE ARE THOSE FIGURES YOU MENTIONED.
SO WHAT HE'S SAYING IS WE DO HAVE 16 MILLION.
BUT THEN THAT 6 MILLION IN COTTONWOOD THAT WE CAN'T FIGURE OUT THE, WHICH IS ON MY HERE THE DEW TWOS AND THE DEW FROMS. RIGHT.
SO YOU'RE SAYING WE HAVE 8 MILLION IN DUE TO, WELL WE HAVE 6 MILLION NEGATIVE IN A FUND THAT SHOULDN'T BE NEGATIVE AND WE HAVE 2 MILLION IN CAPITAL, WHICH MEANS AT A 16 IN CASH WE COULD ONLY SPEND EIGHT.
I THINK THERE'S SOME, YEAH, WE FOUND OUT ABOUT THAT.
WE WERE TRYING TO SPEND MONEY AND THE OTHER, HEY, YOU DON'T HAVE THAT TO SPEND.
SO THE OTHER NEGATIVE IMPACT OF NOT HAVING YOUR FINANCIALS IS YOU CAN'T CLOSE YOUR BOOKS FOR 22.
SO YOU CAN'T GET BEGINNING BALANCES FOR 23.
SO WHEN YOU'RE LOOKING AT YOUR BALANCE SHEET, IT IS VERY DIFFICULT TO KNOW WHAT YOUR BALANCES ARE IF YOU HAVEN'T CLOSED OUT AND YOU DON'T HAVE YOUR JOURNAL INJURIES.
SO NOW THAT I HAVE THAT INFORMATION, I CAN GIVE YOU BETTER FINANCIAL INFORMATION AND WE'RE LOOKING AT PROVIDING YOU WITH A COTTONWOOD FINANCIAL JUNE THE 15TH AND THEN THAT WILL GIVE YOU INFORMATION AS TO COTTONWOODS DEBTS.
CAN YOU GIVE THAT TO THE COTTON FLOW NUMBERS? OF COURSE.
THINK'S THE SAME PEOPLE THOUGH.
WHO? WHO'S THE NURSE OF YOU? RIGHT.
YEAH, IT'S, I WAS LIKE, WHO'S THE NEW? SO ALL THE THINGS THAT YOU'RE DOING ARE GREAT, BUT ONE OF THE THINGS WE'VE STRUGGLED WITH AS A CITY IS WE HAVE A LOT OF INDIVIDUAL KNOWLEDGE THAT WALKS OUT THE DOOR AND WE DON'T END UP WITH INSTITUTIONAL KNOWLEDGE.
SO WHAT ARE, WHAT ARE WE DOING? AND THEN THIS IS, UH, MOSTLY ON YOUR PLATE REALLY.
BUT WHAT ARE WE DOING TO MAKE SURE THAT THE THINGS THAT YOU'RE DOING SURVIVE YOUR INTERIM POSITION, YOU KNOW, THAT IS HAND THREATENING TO LEAVE US ONE DAY.
THAT'S A, THAT'S A REALLY GOOD QUESTION.
WITHIN THE FINANCE ORGANIZATION, WE TRY TO KEEP OUR INFORMATION ELECTRONICALLY AND WE HAVE A FINANCE DRIVE WHERE WE STORE THE INFORMATION.
SO INTERNALLY, I THINK A LOT OF THE INFORMATION RESIDES WITH CHRISTINA AND MYSELF.
AND IF YOU LOSE BOTH OF US, I THINK YOU HAVE A PROBLEM.
WELL, WELL A COUPLE OF THINGS IN THAT REGARD ARE ONE, LIKE THE CALENDAR THAT YOU'RE PUTTING TOGETHER NOW FOR THE AUDIT PREPARATION THROUGHOUT THE, THROUGHOUT NEXT YEAR AND, AND THE, THE BUDGET CALENDAR THAT YOU'RE WORKING ON NOW FOR NEXT YEAR, THO THOSE ARE THE TYPES OF THINGS THAT, YOU KNOW, HELP IN THESE REGARDS.
AND THEN, UM, YOU KNOW, ANNE IS ALSO, UH, GRACIOUSLY, ALTHOUGH I DON'T KNOW THAT I'LL TAKE HER UP ON IT, HAS ALSO OFFERED, UH, TO COME BACK NEXT YEAR AT THE END OF THE YEAR WHEN WE ARE IN AUDIT, UH, IF WE NEED HER.
SO WHILE SHE WILL BE RETIRED AND DOING GREAT THINGS WITH HER HUSBAND, UM, SHE'S OFFERED TO COME BACK JUST TO HELP WHOEVER THE NEW FINANCE DIRECTOR IS, MAKE SURE THAT WE HAVE SOME CONTINUITY.
SO, AND TO DAN'S COMMENT INCLUDED IN THE WEAKNESSES IN THE REPORT, THERE ARE TWO COMMENTS THAT POINT TO THIS.
ONE OF 'EM SAYS THAT THE FINANCE DEPARTMENT HASN'T ALWAYS, ALWAYS RECEIVED THE INFORMATION THAT THEY NEED.
AND I WILL TELL YOU THAT I'VE STRUGGLED, AND I'VE SHARED WITH YOU SOME OF MY STRUGGLES, SOME OF IT IS SOME RECENT TRANSACTIONS LIKE THE E D C GRANT LOAN TRANSACTIONS, UH, WHICH I'VE ALREADY TOLD JOHN.
I HAVE A LIST OF THINGS THAT I NEED TO TALK TO HIM ABOUT.
THE OTHER ONE IS, UM, I, I KEEP HEARING ABOUT THE BUTLER LOAN AND I WILL SAY I STRUGGLED AND TODAY I GOT THE FINAL PIECE OF THE PUZZLE AND I WAS ABLE TO FIT IT
[00:45:01]
TOGETHER.AND BASED ON THAT PIECE OF THE PUZZLE, WE'RE ABLE TO PRESENT THE FINANCIAL REPORT TO Y'ALL JUNE THE 15TH FOR, FOR C D C.
BUT I WILL TELL YOU, IT IS TAKEN ME FIVE AND A HALF MONTHS TO GATHER THAT INFORMATION BECAUSE INTERNALLY TO THE CITY, I DON'T THINK IT EXISTED HERE.
AND SO I'M, I'M NOW VERY GRATEFUL FOR ALL THE PEOPLE THAT I'VE REACHED OUT TO.
AND I WILL SAY IT'S, IT'S LIKE A VILLAGE THAT WE HAVE HERE THAT I WAS ABLE TO REACH OUT TO PROBABLY 10 DIFFERENT PEOPLE TO GET THE INFORMATION THAT I NEEDED TO PUT THAT PUZZLE TOGETHER FOR THAT, THAT LOAN, THAT TRANSACTION, THE PERFECT GAIN, THE C, D, C, SO THAT I NOW HAVE A VISION OF WHAT THAT LIABILITY IS.
SO TO THAT POINT, ARE YOU, LIKE, HAVE YOU MADE BEST PRACTICES AS FAR AS WHAT WE SHOULD BE FOLLOWING MOVING FORWARD IN ORDER TO AVOID THINGS LIKE THIS OR TO I GUESS BE MORE EFFICIENT? WELL, I THINK THAT WE'RE MOVING IN THAT DIRECTION, BUT I HAVE TO TELL YOU, AND YOUR MAYORS MADE SEVERAL COMMENTS THAT THE FINANCE ORGANIZATION ISN'T AS ROBUST AS WHAT IT SHOULD BE.
AND I HAVE TO AGREE WITH THAT.
AND I THINK CHRISTINA WILL AGREE WITH THAT ALSO, THAT OVER THE LAST, I DON'T KNOW HOW MANY YEARS, PROBABLY, UH, MAYBE 10 YEARS YOU'VE HAD HER REVOLVING DOOR OF FINANCE DIRECTORS AND A REVOLVING DOOR OF CONTROLLERS.
SO I'VE BEEN HERE FIVE AND A HALF MONTHS AND CHRISTINA, YOU'VE BEEN HERE ABOUT TWO YEARS.
SO OVER THAT TWO YEAR PERIOD, I WILL SAY I THINK THINGS HAVE GOTTEN BETTER, BUT I WILL SAY THERE'S STILL THINGS THAT NEED TO BE CLEANED UP.
THAT FUND HAS TO BE RECONCILED AND THEN, YOU KNOW, ENTRIES MADE IN THE LEDGER TO GO MAKE THAT FUND RIGHT.
AND PUT THOSE COST WHERE THERE'S REVENUE TO OFFSET IT SO THAT YOU DON'T HAVE A NEGATIVE BALANCE JUST STICKING OUT IN THE MIDDLE OF NOWHERE.
THE C D C, UM, IS THE COTTONWOOD DEVELOPMENT CORPORATION, WHICH HAS INCURRED LIABILITIES AND HAS CURRENTLY NO ASSETS AND CURRENTLY NO REVENUE COMING IN AND NO WAY TO PAY THOSE LIABILITIES.
AND SO THE GENERAL FUND, I WOULD ASSUME IS GOING TO HAVE TO ABSORB THOSE BASED ON PRIOR COUNSELS AND DECISIONS THAT THEY HAVE MADE.
SO, UM, THE FINANCE DEPARTMENT HAS NOT ALWAYS GOTTEN THE INFORMATION THAT THEY'VE NEEDED TO BOOK THESE TRANSACTIONS, AND THE FINANCE DEPARTMENT DOES NOT HAVE A HISTORICAL FILE FOR ALL OF THESE OLD TRANSACTIONS.
SO I'M STILL DIGGING, CHRISTINA'S STILL DIGGING AND AS, AS INFORMATION BECOMES AVAILABLE, WE ARE MAKING THE BOOKS RIGHT.
WE'RE ALSO DOING RECONCILIATIONS TRYING TO GET THOSE BOOKS.
I THINK JOHN'S MADE SOME GREAT RECOMMENDATIONS AND I THINK WE ARE GONNA GET BETTER AND WE'RE GONNA PUT, UM, SOME PROCEDURES IN PLACE FOR THE ACCOUNTING ORGANIZATION THAT'LL MAKE THINGS BETTER TOO.
AND WE'RE GONNA ALSO STAFFING YES.
ALSO THAT, THAT AUDIT CALENDAR THAT YOU'RE TALKING ABOUT, THAT'S NOT GONNA BE LIKE A CALENDAR, THAT'S GONNA BE KIND OF LIKE A TEAM MINUS THAT'S LIKE, HEY, YOU KNOW, 180 DAYS OUT WE NEED TO HAVE X READY AND WE NEED TO HAVE Y READY.
IT'S GONNA BE, YOU KNOW, WORKING BACKWARDS TO THE YEAH, OKAY.
I JUST DIDN'T WANT IT TO BE LIKE, I'M NOT FAMILIAR WITH THE T MINUS, BUT THE, IT'LL BE EXACTLY WHAT YOU SAID.
THIS IS THE GOAL AND WE'LL WORK BACKWARDS.
HOW DO WE GET TO THAT GOAL? RIGHT? IT'S, IT'S A ROCKET COUNTDOWN REFERENCE.
LIKE AS OF TODAY YOU ONLY HAVE, YOU KNOW, LIKE MONTHS TO PROVIDE WHAT WE GOT TODAY.
SO WHAT ARE THOSE CHECKPOINTS THAT WE NEED TO HAVE 120 DAYS OUT, 60 DAYS OUT DEFINITELY.
I HAVE A QUESTION AS WELL WITH THE UM, EDC, UM, WITH THEIR BUDGET.
I KNOW YOU'RE KIND OF GETTING IT ALL TOGETHER AND ORGANIZING IT AND STUFF LIKE THAT.
IS THAT SOMETHING THAT'S A CITY CO THAT'S BROUGHT BEFORE THE CITY COUNCIL AND THAT IS REVIEWED AND, AND LOOKED AT AND APPROVED AND ACKNOWLEDGED? YEAH, SO, BUT THE EDC IS A, UM, A LOCAL ED ECONOMIC DEVELOPMENT CORPORATION AND IT FALLS UNDER THE PURVIEW OF THE CITY AND THEREFORE IT'S INCLUDED IN THE FINANCIALS OF THE CITY.
AND SO YOU WILL SEE IT LISTED IN THE FINANCIALS AND IN OUR BOOKS IT'S FUND 35.
ALL OF THEIR TRANSACTIONS FLOW THROUGH THIS.
I WAS JUST THINKING THAT IT WAS LIKE SOMETHING SEPARATE, BUT IT'S WITHIN OURS.
BECAUSE I WAS LIKE, I DON'T THINK WE DID THAT HERE, BUT IT'S WITHIN IT.
WHAT'S THE OTHER ONE? THE L RIVER, RIVER CREEK AND RIVER CREEK.
THERE'S SOME THANK FOR CLARIFICATION.
[00:50:01]
THEM, WE CAN, YEAH.I DON'T THINK WE'RE, THEY'RE NEEDED PLAN.
UM, I KNOW IT'S FRUSTRATING FOR YOU COMING IN, UM, YOU DON'T KNOW THIS BRIAN, BUT IN MY OPINION, SO ANNE AND CHRISTINA BOTH PRESENTED TO THE EDC ON THINGS.
CHRISTINA'S BEEN VERY UPFRONT WITH THINGS TO WHERE LIKE KNEW WE WERE GONNA BE UNTIL MIDNIGHT, BUT SHE WAS LIKE, YOU'D ASKED A QUESTION.
SHE'S LIKE, WELL, I'M GONNA TELL IT.
I I THINK YOU REMEMBER THE TIME WHEN SHE WAS LIKE, I I'LL TELL YOU YES, YOU CAN TRANSFER MONEY AROUND, NO ONE WILL EVEN KNOW HERE.
AND SO THEY'VE BOTH BEEN VERY, UM, CLOSING THE DOOR UPFRONT WITH THINGS, UM, THE PEOPLE WE HAD BEFORE, UH, I'LL JUST BE NICE AND SAY THEY WERE NOT LIKE THESE TWO AND I DON'T KNOW ABOUT THRUST PEOPLE IN THE DEPARTMENT, SO, UM, I ALWAYS SAY, UM, THANK YOU.
I KNOW I'VE PUT A LOT ON THERE, BUT I THINK AS YOU ARE EXPLAINING SOME OF THESE THINGS, LIKE WITH THIS BUTLER ALONE, THOSE ARE THINGS THAT HAPPENED.
PETER AND I WERE ON COUNCIL WHEN THAT HAPPENED, BUT WE DIDN'T KNOW IT HAPPENED.
AND SO THAT'S WHY NOW EVERY TIME SOMETHING HAPPENS I'M LIKE, WAIT A MINUTE.
YOU KNOW, WHO'S THAT NEW PERSON THERE? WHY ARE THEY NOT IN THE BUDGET? I'M ASKING ALL THESE QUESTIONS CUZ HAVEN'T BEEN THROUGH ALL THAT PENDULUM SWINGS TOO HARD ONE WAY AND I APOLOGIZE FOR THAT.
BUT WHEN WE HAVE NO ISSUES AND EVERYTHING'S CLEANED UP AND EVERYBODY'S LIKE, YOU GUYS DON'T HAVE ANY PROBLEMS, THEN PROBABLY WHEN LIKE I BACK OFF.
BUT, UH, WHEN YOU GUYS STILL BRING UP STUFF, LIKE WE JUST FIGURED OUT THE BUTLER LOAN THING.
I CAN'T, I I THINK JAMES PROBABLY HEARD ME UPSTAIRS AS I WAS, WE'RE REJOICING ALA WE FINALLY FIGURED THIS ONE OUT.
I MEAN, BEING TOLD IS ONE THING, BUT ACTUALLY, YOU KNOW, HAVE A HAVE A RECORD TO FINDING THE EVIDENCE.
AND I'D ALSO LIKE TO THANK JOHN AND HIS TEAM.
THEY REALLY DID A GREAT JOB WORKING WITH THE CITY.
UM, THEY HAD A SCHEDULE WITH OTHER CLIENTS AND THEY WERE WORKING US IN AS WE WERE HAVING STAFFING SHORTAGES AND I REALLY APPRECIATE THAT.
AND, AND IT WASN'T JOHN AND HIS TEAM THAT CAUSED THE AUDIT TO BE LATE.
IT WAS THE CITY'S FINANCE TEAM.
AND, AND ON THAT NOTE, I I WANNA SAY THAT I'VE BEEN VERY PROUD WITH THE WORK THAT I'VE SEEN COME OUT OF FINANCE, UH, PARTICULARLY UNDER YOUR LEADERSHIP.
BUT EVEN BEFORE CHRISTINA, WHENEVER YOU WERE RUNNING THIS ON YOUR OWN AND YOU WERE FUNCTIONING AS INTERIM AND YOU'RE THE ONLY ACCOUNTANT TO BE ABLE TO DO ENTRIES, UM, I'M VERY PLEASED WITH THE WORK AND I KNOW THAT IT WAS LATE.
UM, BUT THAT DOESN'T NECESSA, THAT'S JUST THE BAR THAT WE'VE, THAT WE'VE SET TO SHOW THAT WE WON'T BE THERE AGAIN.
AND UH, YEAH, SURE WE WILL BE BETTER.
MY WHOLE THING IS, IS I DON'T WANNA BURN CHRISTINA OUT.
I WANT TO HAVE THE CONVERSATION.
DECEMBER, WE GOT A FREAKING PROBLEM.
I WAS BRINGING CHRISTINA CAKE EVERY DAY TO KEEP HER HERE.
SO
THEN IT'S LIKE, WELL WE BURN CUZ WE SHOULD BE BURNING OUT IN YEAH, ABSOLUTELY.
WELL, AND THAT'S MY BIGGEST FEAR TOO, AND IT GETS TO YOUR POINT IS IF SHE WERE TO WALK AN IN TOO, BUT YOU KNOW, CHRISTINA WITH, I MEAN JUNE 1ST DOESN'T LOOK GOOD IF WITHOUT HER IT'S NOT EVEN TODAY.
YOU KNOW, AND, UH, JUST HAS A LOT OF LEVERAGE.
COULD THINK BUDGETS ARE COMING UP,
I MEAN, I KNOW, UH, THE FINANCE DEPARTMENT OVER THE LAST SEVERAL YEARS HAS NOT DELIVERED AND IT'S BEEN VERY HUMBLING FOR ME COMING HERE THE LAST COUPLE YEARS BEING IN A DEPARTMENT THAT HAS DELIVERED.
BUT I APPRECIATE, YOU KNOW, ALL OF THE PUSHING COUNCIL DOES BECAUSE IT, EVEN IF WE'RE MOVING SLOWLY, WE ARE, IT DOES HELP US GET BETTER.
APPRECIATE HOW YOU, UH, DOING IT.
A ANY OTHER ITEMS? TURN AT 6 53.