Agenda 09-03-19 Item 8-a - Minutes

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7 1 Travis Myren said, compared with the manager's recommended budget, the project total 2 that the Board of County Commissioners (BOCC) would approve, would be $23,000 less. 3 Commissioner Greene referred to the CIP list, and asked if it includes the two vans. 4 Travis Myren said yes, this is included in item #8. 5 Commissioner McKee referred to the CIP list and the delayed purchase for the library, 6 and said this is not a $750,000 reduction, but rather a delay. 7 Travis Myren said this would affect year 1, which the BOCC is approving tonight, but 8 would move out to the 2021. 9 Commissioner McKee said the $23,403 is not really a savings, as these expenses are 10 just being pushed out to a later year. 11 Travis Myren said it is a timing savings. 12 Commissioner Dorosin said it is a change from what is listed in the CIP. 13 Commissioner McKee said he just wants to be clear that this is not a savings, but a 14 delay of expenses, which offsets in year 1 the additional CIP spending. 15 Travis Myren said there is some infusion of cash from amendment#10. 16 Commissioner Price referred to the bottom figure on the green sheet, and clarified that 17 this is taking in two different amended proposals on the schools. 18 Travis Myren said those two proposals net out to zero, because the County is bringing in 19 as much tax revenue as it is spending. 20 Commissioner Dorosin said suggested starting with amendments 9 and 10 on the green 21 sheet, and whether the Board prefers the Manager's recommended 1.5 cent tax increase or the 22 4.5 cent tax increase. He said the outcome of these votes go may affect how the Board feels 23 about other amendments. 24 Bonnie Hammersley said amendment# 9 (Increase the Ad valorem tax by 4.30 cents 25 which reflects the Upfront Tax Rate for Debt Service, rather than the Phase-In of 1.50 cents 26 contained in the Manager's Recommended Budget) was option 2 of the recommended budget. 27 She said she recommended the phase in of 1.5 cent, and this second option would do an 28 upfront increasing of taxes to the amount needed throughout the debt to 2021-22, and would 29 create a debt service reserve, into which the money would go. 30 Bonnie Hammersley said amendment#10 is to create the debt service reserve fund 31 (Transfer 4.30 cents Ad Valorem tax proceeds to a Debt Service Reserve Fund) if the BOCC 32 approves amendment#9. 33 Commissioner Dorosin said the options before the Board are 1.5 cents as recommended 34 by the Manager. 35 Bonnie Hammersley said yes, this would be reviewed annually and there would be a 36 phase in of the cost needed to cover debt service. 37 Bonnie Hammersley said option 2 would be to do the 1.5-cent increase, plus pay upfront 38 the future debt service and create a debt service reserves. She said this would raise the tax 39 rate to 5.8 cents (1.5 plus 4.3). 40 Chair Rich said the 4.30 would be in the reserve fund, and be paid through 2022. 41 Bonnie Hammersley said it is a continuum that is paid up front, and is what staff 42 anticipates the need to be through 2021. She said there is not a sunset, and staff is not 43 recommending that this tax rate be stopped. She said the Board that is sitting at that time may 44 choose to stop the tax. 45 Commissioner McKee asked if the "not stopping" part could be clarified. 46 Bonnie Hammersley said the Board would increase taxes in an ongoing manner until the 47 Board changes it. 48 Commissioner McKee asked if there is a reason the 4.30 cents rate would be needed in 49 an ongoing fashion. 50 Bonnie Hammersley said the debt is twenty years, and hits a peak in 20-21.