I'm you you you you you you you you you you you you This morning, our invocation will be given by Renelle Novak, who is vice chair of the Denton Historical Commission and their pledges will be led by Scott Aldridge, who is assistant director of purchasing. I'm sorry. I've got a cold. I can't talk straight. Please stand. I'm sorry. I'm sorry. I can't talk straight. Please stand. I'm sorry. I'm sorry. I'm sorry. I'm sorry. I'm sorry. I'm sorry Shall we pray? Our Father, we are grateful for this beautiful day. We're grateful for this time of the year when there is so much beauty that you have created. We're grateful that we live in a free country and that we can meet in a similar together in a place like this. We pray for today's deliberations for our leaders as they make wise decisions, these things we ask in Jesus' name. So, then, our pledge is, our pledge is, to the Father. we ask in Jesus name. Amen. A pledge of allegiance to the flag of the United States of America and to the Republic for which it stands. One nation under God, indivisible with liberty and justice for all. Honor the Texas flag. I pledge allegiance to the Texas one state under God one and indivisible. Thank you very much. In consideration of people's time, I want to first go to item 3a on the agenda. 3a is a presentation and recognition of the kind of historical commission as a recipient of the Distinguished Service Award from the Texas Historical Commission for outstanding preservation work accomplished in 2009. We have beautiful a word here. Hello, Georgia? I know. Coming up to the microphone, this says the Texas Historical Commission presents this Distinguished Service Award to Denton County Historical Commission and recognition of its achievement and well-balanced preservation program. And it's signed by the chairman of the Texas Historical Commission and the executive director of the Texas Historical Commission and dated March 15th, 2010. Congratulations. Thank you. Give me your favor. Give me some applause for the commission. Thank you. If it was not for the the folks who get elected to office and are willing to devote some time to us that we can do small history with a small age and make it interesting for everybody and get awards and just generally enhance the last in and around Denton County. And I would like to thank the members of the commission and the members who helped us fund it and run it. Where's Roslyn? You guys ever need a great administrator? There she is right there. Good, Heather. Thank you very much. Thank you. Thank you. We appreciate you all being here this morning. It's fun to recognize you for all the hard work that you do. And Denton County has certainly got a lot to be proud of because of all the hard work that you do. And Denton County has certainly got a lot to be proud of because of all the hard work that you do. And we thank you very much for that. Is anyone else here to chime in? They're all shy this morning. They're not that quiet when they have meetings. Thank you very much. OK, we want to go now to item number one which is public input for items not listed on the agenda. There's any member of the public that would like to address commissioners court. We ask that you please complete a public comment form available from the aid to the court. We'd be glad to hear from you also want to remind everyone to please turn off your cell phones and pages. We have a public comment form this morning from Mr. Willie Hedsmith. Mr. Hedsmith. Good morning. I'm going to have to have a judge and commissioners. My name is Willehett. I live at six twenty three Newton. These chambers are not very friendly place for me. I feel the resentment. I experience the resentment as you, several of you enter the court, even you, commissioners. Some speak, some don't. So I know this is a negative time for many of you, as well as myself. This is the American way. I get to say it as long as I'm respectful and I'm legal. I get to say what my views are. Many of you look at that Confederate monument and ways differently than I do. You look at it as though it says something to you. That's different than what it says to me. of my race, how men were caged and treated like animals. That's what it represents to me. It reminds me of that. I've heard from some people after me coming down here several times and they've said that what about the African Americans who helped during the war to allow this to happen? Well, I thought for a moment there have always been people who have different views and I think a lot of those people who have the views that they should help the South, they were different situations going on at the time. There are, when you worked in the fields and at very difficult time, we call that a certain kind of black person. And then if you worked in the house, you would call something else as a black person. And then if you worked in the house, you would call something else as a black person. Well, it just depends on what your job was and how much you were brainwashed as I would say as to whether or not you thought what was being happened in the south was a good thing or something you wanted to support. Many of those people grew up from all their lives working as slaves. That monument doesn't represent the same thing to me. And I'm trying to find out who might have the same view as I do. And that's what we're going to bend together. This is really a distraction right here. I just want to ask you a question. One zero for computer equipment for tax collection and disbursement system contract including the transfer of $100,000 in vehicle inventory tax interest fund $400,000 from non-departmental and appropriated grant contingency and $149,250 in excess funds from non-departmental line-in-mess for tax success collector in the contingency and $149,250 in excess funds from the departmental line-in-ins for tax success collector and the amount of $649,250 will call on Donna Stewart. Ms. Stewart, and Judge and commissioners, this budget amendment is a result of a bid that was awarded a couple of weeks ago. And after that meeting, the Capitol Improvement Committee met and discussed the three funding options that were presented on page 79 in your packet. And it was an anonymous vote to suggest to the commissioners' court that we fund this project based on option number two, which is paying $100,000 from the VIT funds that are assigned to the tax assessor collector. 400,000 from grant contingency. These are excess funds that we had available due to a grant that we did not receive. So the funds are surplus. We also have excess funds in comprehensive general liability insurance, fleet liability insurance, and tax incentives. So, I'm going to agree unanimously that we should go ahead and purchase this in lieu of financing it over a two year period. So that's what's being presented today. Does save, I believe it was $57,000 in the entry. Other questions or comments from members of court? Ms. Reads. Donna, maybe this is a question for you or Mr. Malsman. We talked about this. I mentioned this last week, but what is the time frame that you're going to be calculating the agreements with the other taxing jurisdictions? And we plan on working that into a one year or phase that in over three years, I think since we're not the only entity that's really receiving benefit of that, are we going to work that into the amount that we charge for the collection? It's our office. It's our office. It's our office. It's our office. It's our office. It's our office. It's our office. It's our office. It's our office. It's our office. It's our office. It's our I spoke with the auditor about that very thing and he suggested that we use a seven-year payout. That's a depreciation period. So that's what we are building into the per parcel rate that we charge other entities. So that will be on the agenda. I would anticipate in the next couple weeks for approval of that rate, which will encompass that, along with the software maintenance that will be paying annually for this system as well. The software maintenance isn't that the same charges. Pretty similar, but it's currently in for net data in the current contract. So we're gonna substitute with the new dollars we receive with the bid. Dollar amount, it's pretty close. Currently it's in four. It's in four. bid. Dollar amount, it's pretty close. Correct? I think it's an important question. That didn't count, he's not the only one bear in the burden of that. Since that's a multi-jurisdictional benefit. Mr. Merchant. And please remind me how do we charge those taxing entities? Do we charge them a certain? We charge, I believe it's currently 73 cents per parcel. 73 cents per parcel. So will we get a reimbursement by increasing that that amount or will we have a separate agreement? It'll be all a part of that per parcel rate. It's all in one part. Okay, so what you'll bring back to us is what that parcel rate would be and you know, just to include the seven year amurization. That's correct. And Donna, we want to get that done so in this possible because the other tax amenities will begin in their budget. So I am initial review of that to be honest with you. There's been some growth in the number of parcels. There shouldn't be much impact to the individual entities for that. Are there any other questions or comments to do we have a motion for approval? Shall move. Motion by Commissioner Marchin. Chair, we'll second the motion. Here are no further questions or comments. All in favor please say aye. Aye. Aye. Opposed to the sitting. Motion does carry. Thank you. Okay. Also, on a tax issue, let's go to item 13B. 13B is approval of a waiver or denial of a waiver of the penalty and interest on the property tax accounts, and I'm not going to read them on for the 2008 tax year. You know, it's some good backup in your agenda, but the taxes, and chief deputy are both here this morning that believe that Mr. Mossman handed out everybody a section of the property tax code. And my looking at this, the way I understand it is, this property was on the under protest roll. They did receive the statements showing no taxes due, which is, really, shouldn't have been done. That's an over-praisal district problem. But there was a value change done in December, because the value was established in December through the ARB process. And that information came to the Priscilla District in the form of a supplement, which is a normal process. And the statement was mailed. Now, unfortunately, they didn't receive that statement. They did, however, receive what we refer to as the main notices. The tax office is required to send these main notices prior to July 1 when the Delinquent Council turned over to the Delinquent Tax Attorneys for a collection. So these people did receive the main notice and they did come into the office and pay on June 1, I believe it was 2009. Had this law firm that they hired, instead of pursuing the penalty and interest refund in the way that they did, had they requested the refund of the penalty and interest when they paid on June 1, they would have receded as my understanding because that was within the 180 days. But they did, as the code requires, make their request in writing, but unfortunately that was January 22, 2010, which is well outside the 180-day requirement. The section of the code that I'm referring to is probably tax code 33.011D is in David where at the beginning of that it says if a written request for waiver is not timely made in other words within the 180 days the governing body of the tax unit may not waive any penalty and interest under this section so based on that I am going to suggest that we not wait the penalty and interest. Are there questions or comments from other members of court? Steve are they in attendance today? I'm not going to know. We can see here. If there's no questions or comments or stage, did you want to add something? Good morning. Just to be clear, just to be sure everybody is aware, I talked with the attorney yesterday. He is aware it was on the agenda this morning. I talked to him this morning before court and he agreed that referencing 33.011D is the right thing to do. So with that I'm going to make a motion that we deny the request. Have they threatened any litigation or anything or what's the total amount that they're asking to wave I didn't see that in there. You have a approximate total amount that they're asking to be waived. It's multiple accounts. I'm sure we're talking several thousand dollars. Tell you from past experience, this is a question that I've heard before. And it's been denied before. Based on the same section of the property tax code, I will tell you also that should this go to litigation, the McCurry from would be handling it? Okay, I'm going to restate my motion to deny the request. Is there a second to the motion? There's a second to the motion. Is there further discussion or questions? Hearing none all in favor of the motion, please say aye. Aye. Opposed, Cine? Motion does carry. Thank you. Be the might correct that BTP, the Board of Professional Taxes and Amateurs, that's now under licensing of Reagan's to the comptroller's office. Is that licensing of regum, I correct on that. BTP is that under licensing of reg now? Yes. The BTP board of tax professional examiner does not exist any longer. It is the tax, tax professionals are now under the Texas board of licensing and regulation on one side of the state Comptroller on the other. One is education. The State Comptroller is over the educational component that VPT used to supervise. Okay. And TDRL is under the regulation of practice. Okay. Mr. Moss Just for information sake could you email of the commissioner's court what those outstanding taxes are yes, I will give us an idea of what yes I will but we're wavy or not wavy Okay, let's go to item two which is a consent agenda members other items on the consent agenda that you have questions about, or do we have a motion for approval? Motion by Commissioner Mitchell, seconded by Commissioner Marchand. All in favor, please say aye. Aye. Aye. Opposed, say name. Motion is carried. Consent agenda today consists of two A, which is approval of the order making appointments. We have two new hires in the tax office. We have a promotion in the county jail, new hire in the county jail, new hire and sheriff communications, new hire and jail load detention and a new hire and emergency services. 2B is approval of the intradipartmental transfers and 2C is approval of payroll. I'm sorry, young. Five A is approved of the bill report and I'm not going to read all that because I'll start coughing and we're going to call on James Wells. Thank you Judge. The court to approve the bills as presented. But with the three deletions from the general fund, there are all small payments that had either processing problems. We just been requested to withdraw it. Putting in with those three deletions. That's all corrections I have. Other questions from members of court? To a motion? Motion by Commissioner Mitchell, second and back Commissioner Marchant. On favor, please say aye. Opposed, sending. Motion is carried. In 5V's presentation of the 2009 didn't kind of comprehend his Evangel Financial financial report independent auditor's opinions and management letter recommendations Again, thank you judge and commissioners Each year the Commissioners court Each year the Commissioner's Court contracts with an independent accounting firm to audit the financial statements of the county that are prepared by my office. And the ultimate process and it culminates in the official, the conference of annual financial report which you all should have a copy of. If you don't have it with you, I can email you a copy to your email if you'd like. And along with the financial statement, there is also audit of all our grants. This is called a single audit and key components of any independent audit are the autotour's opinions on the financial statements. These opinions both on the financial statements as a whole and on the grant financial statements or what give credence to the numbers. And also as in conjunction with that the out independent autotour's issue a management letter each year with recommendations for improvements and processes. In this year we've also issued a statement of auditing standards 114, 114 letters, a new auditing requirement. When you'll see anything dealing with independent audits, When you'll see anything dealing with independent audits, there are a lot more Requirements placed on the autokers in these last five or six years based on Accounting problems accounting scandals accounting Fagures and auditing failures and other very large publicized entities. So what we'll do today, we have information in front of you, the actual agenda packet that starts on page 23. We want to introduce John Manning, he is a partner with Patilla Brown and Hill, he's our audit partner. He's going to present their reports and comments and I want to hit a few highlights of the financial statement too after he's finished. Thank you, James. Morning, morning, Judge, commissioners. Thank you for letting me be here. James said you should have a copy of the report and I'd like to just go over some of the highlights. If you look at page one, as James mentioned earlier, the financial statements responsibility lies with the county. That is to present quality financial statements and what our responsibility is to express an opinion as to whether those financial statements are materially correct and that's what this letter here on page one and two is stating. It's stating that the numbers behind the report accurately state the financial position of the county as of September 30th 2009. It's an unqualified opinion, four types of opinions that we can give as auditors. The unqualified opinion is the highest level of assurance that we can give. Essentially means we didn't find any bad things in the numbers when we were doing it. Yeah. See thumbs up from the judge so that she understands that that's good. If you look over on page 17 and 18, these are your fund statements and they're presented on what we refer to as a major fund basis. And you can see your general fund. There's about four or five funds that meet the major criteria to be listed individually. And then you have all of your other non-major juvenile, all those different types of funds that are grouped in your non-major governmental column. One thing that I like to point out is that you were able to add some funds to the general fund fund ballots, which in light of how things have been going, that's a very good thing to have at this day in time. And the other thing is, if you look in your 2009 permanent improvement bond project fund, you will see the proceeds of the $104 million of bonds that were issued this year, and you can see a large increase in that fund balance, which was zero last year, which is normal with the issuance of debt. The other thing I like to point out is if you look on page 23, this is the last page of the budget to actual, and I know that y'all are getting ready to head in a budget time and you can look at y'all states substantially under budget with expenditures. Came a little bit over on revenues and so you were able to, you're projected to decrease fund balance but actually increased it. So I know that y'all take a long time to do your budget process and I just wanted to point out that it looks good as of 09. Also wanted to point out on page 25, I know that in the past that the internal service fund, which is the self-funded health plan that the county administers for several years was in a negative net asset position and if you'll look there at the bottom of page 25, that's now in a more positive position. So I know that that's some things that we've, you all talked about in court and have made a decided effort to try to make better and it looks like some of those changes that you all have done have paid off from a financial statement standpoint. I'm going to skip ahead to page 50. Blue James will touch on this in a minute, but about five or six years ago, we changed the financial statements under what was GASB 34, where we now have the government-wide statements. Well, they left one piece out. If a county or a governmental entity offers post-retirement benefits other than pensions. You're going to have to accrue liability for that plan. This is the first year where we were supposed to start booking these entries. And if you look on page 50, that is the new disclosure that is required to be included in the financial statements. And you can see there on page 52 that that OPEB obligation is now being put in the government-wide statements. And you can see there on page 52 that that OPEB obligation is now being put in the government-wide statements. It's not affecting your budgeting or any of that kind of stuff, but it is required to be presented there with the government-wide statements. And it's a pretty sizable number. And I'll let James touch on what he wants to with that. But I did want you to know that that is something that's new. It's a four-page disclosure and a pretty big deal in light of some of the changes that we've done over the past few years. If you will go to the back of the audit report, page 141. As Mr. Wells mentioned earlier, County receives and spends several million dollars of federal and state funds with various grants. And the opinion letter on page 141 and 142, we're required to look at these programs for a major program basis, and this should be looked at three with the 14 compliance requirements administered by the OMB. And if you'll, what this letter says is two pages, we did not find any weaknesses in internal control over administering those grants. And we did not find any material noncompliance that would affect an opinion over compliance. So, with the amount of dollars and the requirements on those programs, that's a very good thing to have. And I know that y'all are always trying to get more grant funding and having a clean opinion on compliance is very crucial when you're going out for those things. having a clean opinion on compliance is very crucial when you're going out for those things. If you look at page 143 and 144, because the county is a local government, we're also required to do our Auditor and their government auditing standards, which makes us look at things in more detail than we were if we were looking at a private corporate entity, just because of the nature of the funding we mentioned grants. You all talked about property taxes earlier, so a lot of the funds that come in have a lot of compliance issues with them. And we did not have any internal control material weaknesses and we did not have any compliance issues under government on these standards as well. So all in all, a very good report on behalf of the county. And if you look on page 146, if you'll remember last year, there was a couple of items that we had that were findings under the requirements. And what we've done this year is we've called that a summary schedule of prior audit findings because they were from a previous fiscal period. And the county has, if you look on both of those, has corrected both of those issues. So that's what this report states is that those two things that we found in O8 were corrected. And so we appreciate the efforts of the county to make sure that got done. James mentioned earlier, we had a SAS 114 letter because the county doesn't have an audit committee. Where we do formal different things with how we present the financial statements. We have to issue this letter that has some required communications in it. It's a very standard boilerplate letter that does not have, there was no issues to document in that letter so it was very cool. But we would like to thank Mr. Wells and his staff and the court for allowing us to provide service for the county. I want to make sure that you all understand how much time goes into these reports. This will be submitted to the GFLA and the comments that they had were fixed. And there's a lot of people's time and effort in this report and Mr. Wells is office does a very good job of getting us things that we need. We're made a priority while we're there. And I think that's one of the things that leads to these statements looking like they do. So anybody has any questions? I'll be glad to answer those now, but I think James wanted to make a few comments on some things that he saw. Thank you, John. Thank you, Court. First off, I would also like to thank Taylor Brown and Hill. They're very excellent company to work with. I always want to make a point that they are hired by the commissioner's court. They're not hired by office. That they review the work of my office, but they're really your representatives. As it should be, it should not be answerable to me. Second, I'd like to say say follow up on John's comments, all the process of finalizing of the year's finances, preparing for the audit, preparing for the financial statement, takes a tremendous while to work by my staff, keeping all these grants that you'll see in under single law section, keeping those straight, staying in compliance with those, getting all the documentation, keeping all of our construction funds and our debt service funds straight and paying all our bills on time so we can actually close our books. This is a tremendous effort by all my staff. I'm very appreciative of that. I would just say, I just want to point out that these statements, you know, 140 pages, 150 pages, there's a lot of information going through. They are highly used, not by necessarily people within the county, but our bond rating agencies know this forward frontward and back potential investors. Underwriters for our bonds, like when we just did our just did the refund and saved us about $900,000. The underwriters pour over the financial statement. They want to know it backward and forth. We get lots of questions like from the underwriters attorneys on this. This statement has been sent to the GFOA but more importantly it's been sent to the SEC also. We do have to file our financial statement and supplemental information with the Securities and Exchange Commission each year because our bonds once they're sold are traded in the secondary market and we do fall under their rules. And I also point out that audit is actually an independent audit is not required by statute, by practicality because we have grants, because we have outstanding debt and we have a bond rating. They're just practicality we have to have one. John's mentioned again that we do. one. John's mentioned, again, that we do, it's about the fifth year we've done statements under GASB 34, which are more of a pool of cruel. It actually ends up with two different types of statements, which I find even I find very confusing. But page 17 and 18 are the full of cruel statements. And after actually page 14 and 15 are, and 17 and 18 are the full of Creole statements and after actually page 14 and 15 are 17 and 18 are the budget basis. We really depend on the budget basis. Highlights of the statement and our financial situation at the end of the year. Most of the major funds stayed within budget. You'll see that in the statements back about page 50 and further or 60 and further. You'll see individual funds, budget versus actual, the general fund spent about 93% of the budget. Road and bridge meant a much lower percentage as did in innocent care, an innocent care, it's been about 92. Night below 90s was very typical for that. For that, but we, I think we had maybe the, I think the jury fund actually exceeded budget because there's really not much control at the last minute, how many jurors go through. And it was only by like $200 or something. Don mentioned that the general, the general fund did increase fund balance. That's important because one, we did, that's in light of transferring $3 million to the capital improvement fund out of the general fund balance during the year, capital replacement fund. And also the general fund revenues did not reach budget this year. They were only 98%. Part of that, so we got a large number of grants during the middle of the year that we put in the budget at full amount of the grant. And those grant revenues weren't earned. That's not a negative at all. The big negative is that interest income with interest rates at about less than 1 1 1% when we were expecting about 1 1 1 1% interest income was a million dollars under budget. But so faced with that, to actually increase our general fund balance, it's quite an accomplishment. And then furthermore, the point, just to add to John's comments, that the medical insurance plan actually has nearly, almost $850,000 in reserve. This is the first time that plans had reserved in my memory. I mean it goes with many many years back. We've had to work very hard trying to fund that plan. And my final comments other than... I would be glad to ask you a question. My final comments are on the fact that we had to do the implementation of accounting standards number 45, which is recognizing the annual expense and liability for employee post retirement benefits for insurance. As you all know, an employee who can retire from the county and qualifies for a pension from TCDRS can't off to stay on our plan. And those employee, those retirees like many of us hope to be here soon, do not pay full price for the insurance. So the county standards board has issued a standards that we have to start in measuring that expense. So again, I would point that out, this requires an actuary review that the PEC commissions each year, they do their work based on assumptions on how old the workforce is, how much tenure the workforce has, what percentage will probably retire and will through 53 shows their first year computation of that. And what this shows was is that for any given year, employees based on actual computations, employees are earning about $3 million each year in future health benefits. What we also found is that the current retirees, which are only about 140 total retirees on our plan, actually cost the plan nearly a million dollars more than the premiums they paid. So, and so there, this actually now goes on the financial statement. The actual, the actuarial liability as computed is on page 53. It's rather enormous but it will have some implications for the plan in the future that only I know P E B C management will be bringing this to the board into individual counties but you know right now we have 140 employees retirees independence on the plan. But look at our payroll right now we have 250 people with over 15 years experience. In 10 years we might have 400 retirees on this plan. And the subsidy might have to be much bigger. If the plan continues to grow, again our plan, subsidized retirees about a million dollars, but the plan is a $17 million plan. I don't know if anyone really realizes that, but on page 25, you actually see that the total operating revenues for our insurance plan were 18.5 million. That's county money and employee premiums, retiree premiums, co-opor premiums. So it is a large plan. So again, we're right now retirees are not subsidized for a minus amount, but it's certainly something that we need to stay focused on and just be aware of actually during our budget each year. So with that, I think I've hit highlights I wanted to hit open any questions free through Mr. Manning on myself I'm taking care of. Oh no, I think it's a reflex well on Denton County as far as the binding agencies and keep our keep our reading up there and which is important when we start borrowing money again. I would echo that and you look at the management letter which is on page 28 from a county wide review yield one comment. It's really also a great commentary on the other offices, the fee offices in this county that are also very ably managed, they take their job very seriously and work with our office wonderfully. So we really don't have a lot of glaring bad policies and procedures. I have to work on. So the one we did find will be easily addressed. Okay. As we have our tax assessor and chief deputy here, it should be noted that this letter says the tax office has been designed with good passive and active cash controls and security in mind. Internal controls and convenience are not typically compatible. The high volume of activity in this office makes it convenient to leave the keys in the register rather than require a supervisor to keep the key on his or her person, doing so circumvent the protection that the locked drawers provide. They made one recommendation that one person be responsible for a drawer and this person maintains possession of the key to that drawer at all times. But basically there are a highly complimentary of the controls that you have in place and the job that you do They're not always here for us to pat them on the back some of that yarn Are there questions from members of court? Thank you. Appreciate it. Thank you, George. Thank you commissioner. Thank you James You're talking about the percent of the federal fund and the road bridge fund and the indigent care fund. These percentages that were not expended is that historically pretty much the way they are. Yes, they are. Yes they are. You know again, they've left you wait. Excuse me. The spending percentages fluctuate from year to year. You know a lot of it depends on their ongoing expenses like salaries and benefits but again some of that depends on how much turnover there is, how much how long it takes to fill positions. And sometimes, you know, there's some departments have bigger projects that just take more front-end planning. And generally, you know, a lot of times the money. And you'll notice, like in sometimes the road bridge had a smaller percentage spent, but they also had a large amount under contract that just shows how long the lead time to get their projects, the big projects to the start phase, it kind of reflects that. But the expanding, we would always tell the Monterey agencies that overall we spent about 93 to 95% of our budget. Very, very, very positive. That means that we don't go over the budget, which is not a good thing. We never go, never go over the budget in general fund. But also we're not budgeting an excessive amount that's, you know, again, taking resources out of the local economy just to be holding. So again, we, I think 95% of the low 90s is a very excellent amount to target at. Our revenue side, I mean cross the board was lower than usual, we really liked it. Anticipate receiving more than 100% of budget revenues. Interest earnings heard that big time? It's been awfully hard to ratchet down some of you know investment anything involving investments It's been hard to ratchet that down budget wise and keep it down because you just Don't expect and right now we don't expect the federal reserve to keep rates so low another whole year But to have we didn't expect it last year but to have so And on the plus side that is. These low rates are pretty much worked their way into our budget. And they're not, you know, the budget has been adjusted for that. So they're not going to be either. Hopefully the only way to fill is up. There is no other way to go. Okay. Thank you very much. Welcome. Thank you. I meant to take up one other matter for the tax office and that is over here on 14G. 14G is approval of the tax collection software license and maintenance agreement between Denton County, Texas and Spindle Media Incorporated in the three-party mastered positive escrow service agreement with Iron Mountain that's recommended by the evaluation committee in the tax-assessor culture of Denton County. Don, did you want, or I'm sorry, actually this is a purchasing and legal area. You've got quite a bit of discussion on this. I didn't know if members had any other questions. Other than what's in your backup. Question to approve. We have a motion for approval by Commissioner Marchant. Chair will second it. Are there questions or comments? Hearing no questions on the favor, please say aye. Aye opposed, aye. Motion to ask carried. Thank you for your time, y'all. Okay, let's go to item 6A. 6A is approval of appointing Sherry Groves Chief Administrator Commissioner Pricing 2 as the Commissioner's Court Staff appointed appointment to the vehicle assessment committee. Oste proof. That can be pushed by Commissioner Marchandt, seconded by Commissioner Mitchell. Questions? Here you go. I'm sorry to have you. On the vehicle maintenance vehicle assessment committee we have used one of our chief administrators to be a liaison also on that committee. So, precinct one, chief administrator has been on there and this time we're going to precinct two and we're just going to go down the line. Okay, no further comments? I'll in favor of the motion. Please say aye. Aye. Opposed to the name. Please say aye. Aye. Opposed to abstaining? Motion does carry. 6B is approval of award of bid for a council road project, refusing one bid number 1109 2007 to Calvert Payton Corporation for a $200 in $7,336.60. Proving. Motion by Commissioner Coleman, seconded by commissioner marchand questions You're none all in favor please say aye aye opposed singing motion does carry six C is approval to declare 11 sheriff department vehicles a surplus and dispose through the local initiative projects grant program motion by commissioner Mitchell Seconded by Commissioner Coleman. Are there questions? Any none? All in favor, please say aye. Aye. Aye. Opposite aye. Motionless carried. 6D is approval of the valuation committee's recommendation to rank Wilson and Company as the most qualified firm for engineering services for the Chisholm Road Reconstruction Project. This is RFQ 06091981. Road and bridge east. Move for approval. Motion by Commissioner Coleman, seconded by Commissioner Marchand. Are there questions? Any none? All in favor, please say aye. Aye. Opposed, Cine? Gary. Seven A is consideration and approval of a capital improvement committee recommendation for the issuance of triple 8 and triple 04 bonds and authorized Southwest Securities and Fobite and Gerarski to proceed with the debt issuance process We're calling Donna Good morning as you all know the capital improvement committee has been meeting in February and March of this year where we reviewed all of the current requests that were submitted and also accepted new requests submitted by departments. Those new requests totaled about $97 million. After we received the information, we were required to ask departments to prioritize the request. And as a result of that, the Committee unanimously recommended deferring several projects that told over $17 million out to future years. The Committee is made up of Judge Horne, Commissioner Smith. Thanks Wells, Beth Limming, Danny Brumley, Kevin Carr, Bennett Hall, Mike Tobio, Lou and myself. In the trip, a four bond election numerous road projects were approved by the voters, and this recommendation today includes issuing $44.860 million of the remaining $55.5 million left in that fund. As you all know, in November 2008, the voters approved a rather large bond package that included $310 million for red projects and $185 million for building and technology projects. We issued the first issue for that in 2009, was for $.5 million in for buildings and $57 million for road projects for a total of $104.5 million. What the committee is recommending today is that we include projects for this upcoming debt issue for the fiber optic construction, new loose field government center, Lee Walker government center renovations, juvenile probation and detention expansion, and various county and triphoid road projects. Those total $94,458,427. So the total, that the committee is recommending that the court issue, 42010, is $139,318,427. The number I just read out is a little different than that was on the big spreadsheet. We plan on having an item on either next week's agenda or the following week to discuss our overall capital improvement plan for 2010 through 2016, but we felt like it was important to go ahead and start the process to look at issuing the debt for the 2010 fiscal year. The committee also discussed the possibility of issuing debt for two years instead of just one year. However, the committee felt like we should stick with our original recommendation for FY 2010. You'll see that on page 72 of your packet has been revised as well and I gave you a hand out of that. This is a quick summary of those projects again. You'll see that all listed out. The committee also took information from our county auditor where we can issue $140 million in debt this year for a one cent increase on our county tax rate. In any other typical year, we could only issue $100 million in debt for that same penny, but because of refinancing efforts and debt that has been paid off, we're able to issue more debt for that same penny this year. So it's a great opportunity to take advantage of the economic conditions and we've seen a lot of cost saving measures implemented with recent bids that have been awarded. We also have a calendar that we requested from Southwest Securities, assuming that the court takes action today. The process would begin for them to start gathering their material and getting it ready to present to the bond rating agencies. Again, if we start the process today, we're looking at a June 8th date to authorize the issuance of the bonds and funds would be enhanced somewhere somewhere the first of July. I also prepared a spreadsheet for you that shows what that one cent tax increase might mean to the home owner in Ditton County. And you'll see that if an owner of a hundred thousand dollar house, if one cent tax increases a plot, that would amount to $0.83 per month increase. Even taking the average home value in the whole county, which is $2,370, that individual homeowner would realize a tax increase of only $1.77 per month. Again, the chart is just for comparative purposes and each individual taxpayers' taxes would depend on the specific change in their valuation this year by the appraisal district. With that, I'll be happy to answer any questions that you have. And, Jason, here as well, if you have any additional comments. Any questions? Some members of the court? Donna, this is just for review. Purpose is today just to bring it to the court. We were hoping for approval today. However, if you want some time to look over the information, we could put that back on for next week. Go on approval of this page 72. Yes. That would be approval would be to proceed with the issue on 739.318427 and bonds bonds James is probably going to want us to round that number up to the nearest $5,000 So we'd need to issue 139 million three hundred and twenty thousand dollars 139 320 Do we have any other questions or comments? I'd just like to take an opportunity to thank the Capitol and the Perlin Committee. We get into some interesting discussions here. Anytime you're talking about spending money here, spending money there, or not spending money here, or not spending money there or not spending money here is not spending money there. Everybody has their priorities understandably so and we just appreciate everybody's input on this. But it's real important to not only have a plan but to a certain degree to follow it to stay there because that not only makes for good planning, but that's what the planning rating agencies like to see too. Commissioner Eads, I'll call on you and then Commissioner Merchant, one of this things. What's the dollar amount again? Because the packet's 139.80. I heard amended it. It is a handout that I provided this morning. Okay, I'm sorry. It's 139.320, so it's rounded off to the nearest five thousand. We'll just round that up for the bond agencies to $139 million, $320,000. You'll also see just to clarify that we included the FY 2011 projects as well, so that you could see if we were to implement two years in one we would be looking at a two cent increase on the tax rate. So that's why the committee at this point is recommending the 2010 issuance. So this consideration is for 2010 which is a current year we're in, issuing those bonds. Do you project that will issue bonds next year as well all the way to 2016? Yes. The plan would be to implement and issue debt each year. Any other questions? So we should take in consideration that to service that debt per year we're looking at a maximum of one penny per... Okay, we don't know too. Well, I understand that. I think that's in the goal of the court. However, you'll see listed out here. There are going to be several other decisions that will have to be made. And as road projects develop, sometimes they can be deferred. And there were many projects that were on this list that we were able to defer. In each year the Capitol Improvement Committee and the plan is designed for adjustments so that we can and fit the calendars and the schedules of the various road projects as well. So that number can vary and there may be one year that we need to consider more than a penny. Explain to me if you would. If our amount of bonds that are out there for current projects as well as future projects have dried up, I mean, are we going to wait before we issue these bonds and put them up for sale and they are funded to start any of these projects. Tell me how that works. Do you know what I'm asking? If we run out of money what are we going to do? Yeah I mean I yeah I mean have we run out of money in 2004 as far as I know we have not run out of money. 2004 triple four funds on hand are totally exhausted. From the triple four election in any money on hand for those we've used up as far as money on hand. We still have bonds to issue and we're proposing to issue some bond. Part of this sale will be from TRIPO IV. But we don't have any TRIPO IV money on hand at all right now. We have some TRIPO VIII money on hand right now for roads. Last I saw the roads are about a triple eight roads for interlocal agreements and state projects. We hit we're down to less than 10 million on hand that is not under a contract. We have building funds on hand, but the projects are going. We also have architects and engineers hired for four or five other projects that we don't have money on hand for when it's time to contract. So that's what part of this sale is going to be. We've got the architects and engineers will be finishing up making their recommendations being ready to bend those out. And at that point, we need to have the money in hand. So we do not con go we do not enter into any contract, architect or engineers or anything. What what you're recommending here in this bond sale approximately $140 million, we won't be able to enter into any kind of contracts with them until those bonds are sold. Not exactly. You can't, I mean ordinarily, that ordinarily is a very good case, comment. As a rule, county cannot, the commissioner's court cannot approve a contract there's not funding for. It's not a legal contract. Any contract, y'all, y'all, any contract passed by the court has to be, have the revenue certified by the county auditor. And if the contract, there's no revenue and I can't certify it, it's called an unenforceable contract, whatever that is. But now, there is, in the way that bond sales work and the bond laws work, if we wanted, again, if one of these projects for construction that architects work on the nail, it was ready to be a right now, and we didn't have the money, but we had an intention, the court had an intention to issue bonds in the very near future. We can, bond attorneys can prepare and ask you guys to pass a reimbursement resolution that's good for about 90 days and we actually can make expenditures and then reimburse ourselves from that bond issue that's in the very near future. That's about 90 days. Obviously we would not do a contract for construction with no intention to issue the bonds for it. Again, that would nullify reimbursement resolution. So again, if you're really close, then you can actually, you can get a couple of months to jump on while you win the, everything's in place for the boss to be received. So you can do that. So it's kind of a yes-no question. Mostly no, slightly yes. I'm just checking it separately. The change that was made only affected one line item on this legal side spreadsheet. And that was the one line at the very bottom of page 5. five. For the Missilania's trip, await funding that number changed to 243,093. So that was the only change made on the handout that I provided to you this morning. I'm going to make a motion to approve. Let's go to another item while I give it a meeting. Miss missing something here I move for approval. Either that's good for you or bad because you waited that long. I was short six million but I found it. I'm going to ask, are you having a second thing? I'm not having a second thing. I'm having a second thing. 7A is 7. Oh, right. It is 7A. It's 7A. My heart's not suffocated. All right, around 7A, most of my commission march and seconded by commission, and the further questions are coming. Here you go. All in favor, please say aye. I'm sorry. Yeah, I keep turning it off so I don't sniffle into my microphone. 13A is approval of the appointment of William M. Coleman, Joseph L. Mitchell and Harrison Wicks to the Denton County Historical Commission. Chair, I'll move for approval. Seconded by Commissioner Mitchell. All in favor please say aye. Aye. Opposed say nay. Motion does carried. 14A is approval of the engineering service contract between Denton County Texas and bridge farmer and associates incorporated for the US 377 Improvenous Project in the amount of $680, $1,056 with funding to come from AAA, didn't county judge regional toll revenue project funds, auditor number 61, 7405, 9060. I'm Luke for approval. We have a motion by Commissioner Coleman, seconded by Commissioner Eads. Questions? Here none, all in favor, please say aye. Aye. Opposed, Cine? Motion does carry 14b is approval of interlocal cooperation agreement between Denton County Texas in the city of the colony Texas for the North colony Boulevard Improvement Project located entirely within the city of the colony Texas and Denton County Commissioner precinct two with the county green to contribute an amount which shall not exceed $500,000 of funding to come from Commissioner precinct 2, AAA North Colony Boulevard Project Funds Auditor line item 637356906. Make a motion to approve. Motion by Commissioner Merchant, seconded by Commissioner Cullen. Questions? Your none on the favor, please say aye. Aye. Oppositing. Motion is carried 14c is approval of the interlocal cooperation agreement between Denton County Texas and the city of Colony Texas for the Plano Parkway improvement project located entirely within the city of the Colony and Denton County Commissioner precinct 2 with the county green to contribute in mount which shall not exceed 260,000 dollars The funding to come from Commissioner Prissing to the Triple-A Plano Parkway Project funds Auditor line item 637-355-9060. Motion by Commissioner Marchand, seconded by Commissioner Coleman. Other questions? Any none? In favor please say aye. Aye. Oppositing. Motion is carried. 14D is approval of one contract to purchase for right away in conveyance of a general warning deed. The bed county Texas from EW Belcher and wife one to M Belcher for the Gregory Road at Buck Creek Bridge replacement project to grant authorization to proceed with closing and approval for the Dettin County Judge to sign on necessary closing documents and three direct to Denton County Auditor to issue award in the amount of purchase price. Oh boy, here we go. $3,500 plus an F, double fees, and I'm going to quit reading all these. Bobby, why don't you continue? I'm going to start calling. I'll be willing to continue the minister. Are you finished with that one? Plus any applicable fees with funding to issue one from Den County Road and Bridges commission of precinct number one contract labor bridge construction funds audited, auditors to 2, 0, dash 5, 2, 2, 0, dash 8, 5, dash 10, and any appropriate action. That's $3,500 for every spent. I'll move for approval of second. Item 14E is, I'm sorry. We have a motion and second. All in favor? Aye. Aye. Opposed? Motion carries carries item 14 E is approval of one contract for purchase of right away and Convince of a general wanted to dean County from Van tall dairy forms hink for the Gregory road and Doug Creek is that book Creek a Doug Doug Creek, Buck Creek Bridge replacement project. Number two, grant authorization to proceed with closing and approval of the Dean County Judge to sign all necessary closing documents. And three, direct the Dean County Auditor to issue one in the amount of the purchase of $4,000. Plus, any applicable fees with funding to come from Dean County Road and Bridges, Commissioner precinct-Sync 1, Contract Labor Bridge Construction Funds, Auditor's 205-220-85-10 and any appropriate action. I move for approval. We have a motion and a second in a discussion. All in favor? Aye. Opposed? Motion carries. Item 14-F is approval of one supplemental agreement, number three to the agreement for engineering services between Dan and Bob in the engineering corporation and Den Kanet, Texas for the Sluder Old Stone and Smith Road Improvement Project and the additional amount of $66,900 for a total contract price of $1,243,360, and two transfer $979,147 from DIN County Commissioner Precinct 4, Triple 8 discretionary funds to a new DIN County Commissioner Precinct 4, Triple 8, Sludo, Old Stoney, and Smith Road funds, audits to number unknown in any appropriate action. Commissioner precinct 4. Second, we have a motion and a second all in favor. Aye. Aye. Opposed, motion carries. Item. We've already done G. We've already done G, so we'll move to executive session. carries. Item ready for jeez. We've already done g so we'll move to executive session. For 15A, Texas government co551.072, deliberation regarding real property, closed meeting to deliberate, deliberate, the purchase of real property for our deliberations, in an open meeting, would have a detrimental effect on the position of the governmental body and negotiations with the third person regarding the purchase of real property for county facilities located within the city limit of then then county commission for any appropriate action also 15 B Texas government code five five 12. Deliberation regarding real property. Close meeting to deliberate the value of real property for deliberation and an open meeting would have a detrimental effect on the position of the government body. In negotiations with the third person, we go in the value of real property located in Den County, commission of precincts and on and any appropriate action. We're going into executive session under items 15A and B. There will be no formal action in court. I want to remind everybody that election day, run off election day. If you haven't voted, please go do so with that. We're adjourned. Have a great day.