Mar 18, 2025 SPECIAL BOARD OF SUPERVISORS

[00:00:07]

WELL GOOD MORNING EVERYBODY. THE BOARD OF SUPERVISORS WELCOMES ALL OF YOU HERE TODAY, AND I'M LOOKING FORWARD TO SOME GREAT

[ CALL TO ORDER]

SO I AM CALLING THIS MEETING TO ORDER. AND WITH THAT, I'LL ASK THE CLERK OF THE BOARD TO TAKE ROLL CALL.

CHAIR MALLORY. HERE. VICE CHAIR COMPTON. SUPERVISOR CHECK.

HERE. APPEARING VIRTUALLY. SUPERVISOR KUKNYO.

HERE. YOU HAVE A QUORUM. THANK YOU. THANK YOU VERY MUCH.

SO OF COURSE, WE'RE ON OUR STUDY SESSION HERE TODAY.

[1. Board of Supervisors - Planning meeting for the Fiscal Year (FY) 2025/2026 budget and review of organizational priorities. ]

SO THAT IS WHAT WE ARE GOING TO MOVE FORWARD WITH.

AND I'M GOING TO MAYBE REACH OUT TO THE COUNTY MANAGER TO START OFF THIS PROCESS BECAUSE I DON'T HAVE ANY NOTES.

SO I'M TRYING TO WING THIS HERE. GOOD MORNING, CHAIR, VICE CHAIR, MEMBERS OF THE BOARD.

AND YOU'RE DOING A GREAT JOB WINGING IT CHAIR. ALL RIGHT.

THIS IS MEANT TO BE PRETTY INFORMAL. THIS IS A STUDY SESSION, SO HOPEFULLY TO HAVE SOME GREAT DISCUSSION WITH YOU ALL.

MY ONLY OPENING COMMENTS WOULD BE TO KIND OF SET THE STAGE, AND THEN I'M GOING TO TURN IT OVER TO OUR BUDGET MANAGER, ZACH WOLFE, TO WALK US THROUGH THE PRESENTATION TOLD HIM THAT'S HIS JOB TODAY.

AND MY JOB IS JUST TO JUMP IN AND ADD COLOR COMMENTARY WHERE APPROPRIATE.

SO YOU MAY RECALL THAT THE PREVIOUS BOARD BACK IN OCTOBER OF 2024.

WELL, NOW I'M MIXING UP MY DATES HERE. THE PREVIOUS BOARD WAS THE ONE THAT RECEIVED THE FIRST BUDGET RETREAT KICK OFF INFORMATION.

NOW, OBVIOUSLY, WE NOW HAVE NEW MEMBERS OF THE BOARD, AND WE THOUGHT IT IMPORTANT TO UPDATE YOU AT THIS POINT ON REFRESHED REVENUE ESTIMATES AND JUST A LITTLE BIT OF PROGRESS AS WE PROGRESS THROUGH THE BUDGET PROCESS.

SO WITH THAT, AGAIN, IT'S MEANT TO BE AN UPDATE ON WHERE WE'RE AT IN THE PROCESS.

AND WITH THAT I'LL TURN IT OVER TO ZACH. THANK YOU.

AND GOOD MORNING, BOARD MEMBERS. ZACH WOLFE, BUDGET MANAGER HERE AT YAVAPAI COUNTY.

AND AS YOU KNOW, I'M ALWAYS EAGER TO TALK BUDGET.

SO THAT'S WHAT WE'LL BE DOING TODAY. TRY TO KEEP IT AS LIGHT AS POSSIBLE.

THERE WAS SOME COMMENTS EARLIER THAT DISCUSSION ABOUT DIFFERENT OPPORTUNITIES THAT THE COUNTY.

SOMETIMES WE CAN STAY RATHER RIGID. SO IF YOU HAVE ANY QUESTIONS, WE DON'T HAVE TO STICK ENTIRELY TO WHAT'S HERE.

BUT HOPEFULLY WE'LL PROVOKE SOME QUESTIONS. AND THIS IS A GENERAL UPDATE ON WHERE WE'RE AT IN THE BUDGET PROCESS.

AND AS COUNTY MANAGER THOMPSON MENTIONED BEFOREHAND, THIS IS AN OPPORTUNITY TO FOR THE NEW BOARD, VERY EXCITED TO HAVE THIS OPPORTUNITY TO SPEAK WITH YOU ALL PRIOR TO OUR MEETING, COMING UP IN ABOUT A MONTH AND A HALF.

SO WITH THAT, MADAM CHAIR, BEFORE WE GET [INAUDIBLE], I JUST WANTED TO COMPLIMENT YOU THE OTHER NIGHT ON THAT PUBLIC MEETING WHERE THEY DID THE BUDGET WORKSHOP THEMSELVES. I WISH WE WOULD HAVE HAD GREATER ATTENDANCE AT IT.

I THINK THERE WAS ABOUT 20, 25 PEOPLE THERE, BUT IT WAS A REALLY NICE EXERCISE AND IT BRINGS HOME THE CHALLENGES THAT THAT WE FACE.

SO I JUST WANTED TO PUBLICLY THANK YOU FOR THAT.

OH THANK YOU. AND WE HAVE A SLIDE ON THAT IN THE PRESENTATION AND I'D LOVE TO WHEN WE GET TO THAT, PLEASE FEEL FREE TO OFFER ANY INSIGHT INTO THE PROCESS.

I'M REALLY EXCITED ABOUT WHAT WE'VE BEEN ABLE TO ENGAGE IN EXPANDING THE ENGAGEMENT OF STAKEHOLDERS OF STAFF AS WELL AS THE COMMUNITY, AND IT'S SOMETHING THAT COUNTY MANAGER THOMPSON IS VERY EXCITED ABOUT THE BUDGET BE MORE COLLABORATIVE.

SO THE BUDGET ISN'T SOMETHING THAT JUST SITS IN THE HALLS OF BUDGETERS AND THEN COMES OUT A COUPLE TIMES A YEAR TO SCARE EVERYONE AWAY AND THEN GOES INTO HIDING AGAIN.

[LAUGHTER] THOSE THAT LAUGH KNOW THE SCARY BUDGET MONSTER, AND SO WE'D LOVE FOR IT TO BE MORE INTERACTIVE PROCESS THROUGHOUT THE WHOLE YEAR.

AND ACTUALLY, THAT'S A GOOD STARTING POINT. THANK YOU, SUPERVISOR KUKNYO TO WELL, THE NEXT SLIDE AFTER THIS ONE.

SO TODAY WE'LL BE TALKING ABOUT THE BUDGET PROCESS AND GUIDELINES.

ECONOMIC CONDITIONS AND REVENUE UPDATE COMMUNITY AND STAFF ENGAGEMENT, WHICH HAS BEEN MENTIONED JUST PREVIOUSLY.

AND LASTLY, ORGANIZATIONAL PRIORITIES, AND AS WELL TOO, IF THERE'S ANY QUESTIONS ALONG THE WAY, PLEASE BRING THOSE UP AS WELL AS ANY THINGS THAT YOU WOULD EXPECT TO SEE IN THE BUDGET FOR THIS YEAR.

SO THE PROCESS ITSELF DON'T WANT TO BELABOR IT, BUT IT'S TO ME VERY IMPORTANT THAT WE LOOK AT THE CIRCULAR FASHION OF THE BUDGET PROCESS.

WE'RE PAST THE PREPARATION STAGE INTO THE ANALYZE AND DISCUSS MODE AND WORKING TOWARDS PROPOSED.

SO PROPOSE WILL BE WHAT WILL COME BEFORE THE BOARD IN THIS NEXT WEEK OR MONTH AND A HALF.

SEEMS LIKE A WEEK AND A HALF AWAY, BUT WE ACTUALLY HAVE A MONTH AND A HALF AWAY MOVING TOWARDS ADOPTION.

[00:05:02]

I'M REALLY EXCITED AS WE START HAVING THESE CONVERSATIONS DURING THE YEAR.

I WAS JOKING BEFORE THE STARTING WITH CHIEF DEPUTY PRIETO ABOUT THE BUDGET.

THE BUDGET IS, IS SOMEWHAT LIKE MY WIFE LIKES TO BUY EGGS.

SHE LIKES THEM FREE RANGE AND ORGANIC. AND SO WITH THAT, THE BUDGET ITSELF ISN'T JUST ENCAPSULATED IN WE ADOPTED A DOCUMENT AND THEN WE'RE DONE UNTIL NEXT YEAR. REALLY, THE DISCUSSIONS GO ON DURING THE YEAR BECAUSE WE'RE PROVIDING SERVICES.

SO IF AN ECONOMIC SHOCK COMES IN, WE MIGHT NEED TO PIVOT OR MAKE CHANGES AS WELL AS NEW OPPORTUNITIES.

AS WE'RE LOOKING AT RIGHT NOW WITH VARIOUS STUDY SESSIONS THIS WEEK AND INTO THE COMING WEEKS, WE WANT TO MAKE SURE TO CAPITALIZE ON THOSE. SO THE BUDGET ITSELF IS YOUR OPERATIONAL ROADMAP OF WHERE YOU WOULD LIKE TO SEE THE COUNTY.

AND SO VERY EXCITED ABOUT US CONTINUING TO CEMENT THIS PROCESS AND MOVE IT FORWARD HERE AT THE COUNTY.

OOPS, SORRY. GOT TOO MANY MICE RUNNING AROUND HERE THIS MORNING.

AND SO HERE'S THE UNPACKING OF EACH OF THOSE STAGES.

WE'RE RIGHT NOW AT THE VERY LAST PIECE OF THE ANALYZE AND DISCUSS THE LAST THE NEXT TIME WE HAVE A DISCUSSION WILL BE IN LATE APRIL, EARLY MAY FOR THE BUDGET STUDY SESSIONS. SO AS SOME OF YOU ALLUDED TO, I THINK YOU THOUGHT THE PACKET WAS A LITTLE LIGHT.

THERE WAS NO PRE-READING BEFORE THIS ONE. THE NEXT ONE WILL BE A LITTLE DIFFERENT.

YOU WILL GET A MUCH LARGER PACKET WITH AN OVERVIEW OF ALL THE DEPARTMENTS AT THE COUNTY AND WHAT'S BEING RECOMMENDED IN THE FY 26 BUDGET.

SO SO WE'RE VERY EXCITED ABOUT TALKING ABOUT THAT.

WE HAVE THREE DAYS SET UP FOR THAT BECAUSE THEY'LL BE VARIOUS PARTS THAT WE WANT TO CHUNK THE BUDGET INTO FOR DIFFERENT DISCUSSION POINTS, AND DURING THAT, WE'LL BE ABLE TO THEN GET INTO WHAT'S ACTUALLY CHANGING IN THE DEPARTMENT.

WHAT RESOURCES ARE WE RECOMMENDING ARE INCREASED, MIGHT BE CHANGED OR REALLOCATED, AND THEN WHAT ARE SOME OF THE EXPECTED OUTCOMES FOR THIS INVESTMENT FOR YAVAPAI COUNTY. SIMILARLY, AFTER THAT WE'LL HAVE ANOTHER TOUCH POINT.

SO AFTER MEETING WITH THE BOARD, WE EXPECT THERE WILL BE SOME RECOMMENDATIONS ON CERTAIN AREAS TO MOVE FORWARD IF THERE'S ANY FINE TUNING THAT NEEDS TO BE DONE ON JUNE 4TH, THE TIME IN BETWEEN THERE, WE'LL MAKE THOSE CHANGES, THEN BRING THEM BACK TO THE BOARD ON JUNE 4TH FOR THAT DISCUSSION TO MAKE SURE WE'RE AT A GOOD PLACE WITH THE BUDGET SO WE CAN MOVE FORWARD FOR FINAL ADOPTION ON JANUARY 25TH.

THANK YOU. YEAH, JANUARY. THAT WOULD GIVE US A LITTLE BIT OF TIME OR GOING BACK.

EITHER WAY, IT'S NOT PART OF THE PLAN. SO THANK YOU.

THAT'S WHY HE'S SITTING COPILOT. AND THEN LASTLY, AUGUST 11TH IS OUR PROPERTY TAX LEVY ADOPTION.

MANY PEOPLE ASK WHY IS THAT NOT DONE AT THE SAME TIME? WE HAVE OTHER TAXING JURISDICTIONS THAT WE NEED TO MAKE SURE THAT WE COLLECT ALL THEIR INFORMATION, AND WE ADOPT THAT THOSE TAX RATES ALL AT THE SAME TIME, HOWEVER, THAT WILL BE PROPOSED TO YOU. THE TAX RATE DISCUSSION WILL START AT THE END OF APRIL, EARLY MAY FOR THE RECOMMENDED BUDGET. BUT WE WILL HAVE THAT UNDERSTOOD AS A COUNTY WHERE WE'RE AT ON JUNE 25TH, BECAUSE OUR BUDGET WILL BE BUILT AROUND THOSE FIGURES.

WITH THAT, ARE THERE ANY QUESTIONS AT THIS STAGE.

WHEN THE OTHER MADAM CHAIR, WHEN THE OTHER ENTITIES COME, DO WE HAVE ANY WEIGH IN ON THAT? IS IT A RUBBER STAMP? DO THEY PRESENT TO US? GREAT QUESTION.

DO YOU WANT TO SPEAK ABOUT THE HISTORIC. YES, FOR THE MOST PART.

THANK YOU SUPERVISOR KUKNYO. THAT'S A HESITATE TO USE THE WORD STAMP.

BUT YES, YOU'RE ADOPTING THE RATES THAT THEY BRING FORWARD AT THAT POINT.

OKAY. THANK YOU. SO THE BUDGET GUIDELINES, THESE WERE SET UP BEFORE THE BEGINNING OF THE BUDGET FOR THE ORGANIZATION.

THESE SHOULD LOOK FAMILIAR BECAUSE WE DISCUSSED THESE PREVIOUSLY.

SO THESE DID NOT CHANGE. THESE ARE THE UNDERLYING PRINCIPLES THAT WE PUT FORTH AS AN ORGANIZATION TO ASPIRE TO AS WE'RE WORKING TOWARDS THE BUDGET THIS YEAR.

THE FIRST PART, ADOPT A BALANCED AND SUSTAINABLE GENERAL FUND BUDGET.

THIS IS A GOAL OF ALL ORGANIZATIONS. WE'RE GOING TO WE'RE GOING TO UNPACK THIS A LITTLE BIT MORE TODAY AND TALK ABOUT THIS HISTORICALLY, WHERE WE'VE BEEN AT YAVAPAI COUNTY AND HOW WE'RE MOVING TOWARDS ALIGNMENT WITH THIS AND STRENGTHENING OF OUR STRUCTURAL BALANCE AS A COUNTY.

SECONDLY, CONSERVATIVE REVENUE AND EXPENDITURE FORECASTS.

WE DON'T WANT TO OVER FORECAST REVENUE OR UNDER FORECAST EXPENDITURES AND END UP IN A POSITION WHERE THE PLAN DOESN'T APPROXIMATE WHERE WE'RE LOOKING TO MOVE FORWARD WITH. THIRDLY, MAINTAIN RESERVE LEVELS PER COUNTY POLICY.

WE WILL ALSO DISCUSS THAT TODAY. OPERATING EXPENSES FROM ACTIVE CIP PROJECTS INCLUDED IN THE OPERATING BUDGET THAT'S A MOUTHFUL.

WHAT THAT MEANS IN THERE IS WHEN WE TALK ABOUT CAPITAL IMPROVEMENT PROJECTS, MANY TIMES THE PROJECT CAN COME BEFORE THE OPERATIONS.

[00:10:03]

SO IT'S A GENERAL PRACTICE THAT OVERALL IN THE PROFESSION WE'RE TRYING TO GET BETTER ABOUT, BUT IT'S STILL ONE OF THE AREAS THAT ALL ORGANIZATIONS WORK TO ALIGN BETTER WITH.

FIFTHLY, TO EVALUATE CURRENT SERVICE DELIVERY LEVELS.

I'M VERY EXCITED TO MENTION LAST YEAR CONNIE DEKEMPER, WHO WAS THE INTERIM BUDGET MANAGER, SHE ASKED ALL DEPARTMENTS TO PUT FORTH A SET OF PERFORMANCE MEASURES.

I'M NOT SURE HOW HAPPY THEY WERE WITH THAT, BECAUSE THAT REQUIRES SOMETHING BRAND NEW FOR THEM, THOUGH THEY OPERATE WITH PERFORMANCE MEASURES UNDERLYING THEIR MANAGEMENT SIDE.

IT REALLY HELPS SHIFT THE FOCUS TO BRING THAT INFORMATION UP IN THE ORGANIZATION.

AND I'M VERY PLEASED SHE DID, BECAUSE IT HELPED US WITH THE STRONGER FOUNDATION TO UNDERSTAND WHEN DOLLARS ARE ASKED FOR FROM A DEPARTMENT.

ONE OF THE QUESTIONS WE HAVE IN THE BUDGET OFFICE IS WHAT WILL THEY BE USED FOR? HOW WILL THIS IMPACT SERVICE INCREASE OR DECREASE, AND HOW IS IT RESPONDING TO DEMAND SO THAT ONCE AGAIN, JUST HATS OFF TO FINANCE DEPARTMENT FOR INSTITUTING THAT AND US TO CONTINUE TO FOCUS ON THAT.

AND ZACH, I WOULD JUST LIKE TO SAY ON THE NOTE OF NEW CHANGES OR, YOU KNOW, HOW THINGS ARE GOING, YOU KNOW YAVAPAI COUNTY IS MOVING ONTO A DIFFERENT LOOK, A DIFFERENT WAY, BECAUSE OF THE GROWTH.

SO THE PAST, THEY HAVE DONE A GREAT JOB. WE KNOW SOME OF THEM.

SOME OF THEM WE DON'T KNOW. BUT WHAT WE DO KNOW IS WE HAVE A FANTASTIC HOME HERE IN YAVAPAI COUNTY.

AND SO FOR THAT, WE HAVE TO, AS YOU SAID PLAN FOR A FUTURE.

BE STRATEGIC ABOUT IT. AND ALSO EVEN THOUGH CHANGE IS HARD, HASN'T BEEN EASY.

I'LL BE THE FIRST ONE TO SAY THAT I WAS IN A DIFFERENT WAY AT THE COUNTY WHEN I FIRST GOT HERE, AND WE ARE MOVING INTO ANOTHER WAY, BUT OUR JOB AS EMPLOYEES OR AS ELECTED OFFICIALS IS TO BUILD THE FUTURE FOR THIS BEAUTIFUL COUNTY.

AND THAT'S WHAT WE'RE HERE TO DO, BECAUSE RIGHT NOW WE ARE THE GATEKEEPERS TO DO THE BEST JOB WE CAN FOR THE POSITIONS THAT WE HOLD TODAY.

BUT AS YOU KNOW, THERE WERE PEOPLE BEFORE US, AND THERE WILL BE PEOPLE AFTER US.

AND SO THAT IS OUR MISSION AND THE LEGACY WE LEAVE AS WE MOVE FORWARD IN THIS TIME.

SO I APPRECIATE THE CHANGES, EVEN THOUGH THEY ARE DIFFICULT ADAPTING TO THEM.

VICE CHAIR. YEAH. ZACH, WHEN YOU'RE TALKING ABOUT BUILDING IN PEOPLE, SO WE UNDERSTAND THE BUDGET IN TERMS OF FILLING THE CAPACITY OF THE BUILDINGS WE'RE GOING TO BUILD, ARE YOU GOING TO BE FORECASTING THAT AND SHARING IT WITH PEOPLE SUCH AS THE SHERIFF? SO HE KNOWS IF WE BUILD BUILDINGS SO HE CAN HAVE STAFF READY.

ARE YOU GOING TO BE COMMUNICATING WITH HIM SO HE CAN UNDERSTAND THAT AS WELL? YEAH. THANK YOU SUPERVISOR. EXCUSE ME. COMPTON, VICE CHAIR.

I'M GLAD YOU ASKED THAT QUESTION. I WANTED TO GO BACK AND EMPHASIZE THAT ALL OF THESE ARE IMPORTANT, BUT IN PARTICULAR THAT ONE.

AND THE ANSWER IS YES. WE'LL BE WORKING WITH WHATEVER OFFICE OR DEPARTMENT IS.

BUT IN MY CAREER, I'VE OFTEN SEEN THIS BEING AN AREA WHERE GOVERNING BODIES GET PERHAPS MOST FRUSTRATED SOMETIMES IN THE BUDGET PROCESS, THEY'VE AUTHORIZED A NEW CAPITAL PROJECT, AND THEN LATER STAFF WILL COME BACK AND SAY, OH, NOW WE'VE GOT THIS NEW CAPITAL PROJECT, THIS NEW BUILDING.

NOW WE NEED ADDITIONAL STAFF OR ADDITIONAL STUFF BECAUSE OF THAT, THE PRINCIPLE HERE IS YOU NEED TO RECOGNIZE AS BEST YOU CAN THE TOTAL COST OF THE PROJECT BEFORE IT GETS AUTHORIZED BY THE GOVERNING BODY.

SO YOU ALL KNOW REALLY WHAT YOU'RE WHAT YOU'RE GETTING INTO, WHAT YOU'RE AUTHORIZING IN TERMS OF TOTAL COST.

SO THAT'S WHAT WE'RE TALKING ABOUT. I JUST WANT TO MAKE SURE OTHER ELECTED OFFICIALS HAVE THE SAME AWARENESS WHEN WE'RE MOVING FORWARD. YES, ABSOLUTELY. WE'LL BE WORKING WITH THEM TO BRING FORTH THOSE TOTAL COSTS. AND THEN SECOND COMMENT IF I COULD GO BACK AND THANK YOU, CHAIR, FOR THOSE COMMENTS, WHICH I GREATLY APPRECIATE.

I ALWAYS GET A LITTLE SENSITIVE ABOUT THAT TOPIC, SO I'M GLAD YOU BROUGHT IT UP.

I JUST WANT TO STATE THAT JUST BECAUSE WE'RE CHANGING THINGS, THAT IS NOT A REFLECTION ON THE PAST.

AS YOU STATED, WE'RE IN A DIFFERENT PLACE THAN WE WERE IN THE PAST, THAT THE METHODS THAT WE UTILIZED IN THE PAST WERE GREAT.

THEY GOT US TO WHERE WE ARE TODAY. THOSE MAY NOT BE THE SAME METHODS WE NEED TO TAKE US FORWARD INTO THE FUTURE WITH A GROWING COUNTY LIKE OURS.

SO THANK YOU FOR THOSE COMMENTS. ABSOLUTELY. AND JUST AS A QUICK EXAMPLE ABOUT CHANGES FROM THE PAST TO WHERE WE ARE TODAY,

[00:15:04]

I CAN REMEMBER BACK ON THE TOWN COUNCIL WITH HARVEY SKOOG, AND WE WERE GETTING INTO THE TRANSITION OF LAW ENFORCEMENT NEEDING A LOT MORE THINGS.

AND HARVEY SAID, I CAN REMEMBER WHEN ALL WE NEEDED WAS A BADGE, ONE GUN, AND MAYBE A BILLY CLUB, AND WE WERE GOOD TO GO. WELL, YOU KNOW WHAT? THAT WAS GOOD BACK THEN, RIGHT? YOU THE SHERIFF'S HERE, YOU HAVE A MUSEUM THAT SHOWS SOME OF THOSE ITEMS. THAT'S WHAT IT WAS LIKE. WE'RE NOT THERE TODAY.

WE FIGHT DIFFERENT BATTLES. WE FIGHT WITH DIFFERENT WAYS.

AND THE MAIN JOB, THE VERY IMPORTANT JOB, I BELIEVE, OF THIS ELECTED BOARD OF EVERY ELECTED BOARD, IS THAT WE MAINTAIN GOOD SAFETY, THAT WE BRING EVERY TOOL WE CAN FOR OUR LAW ENFORCEMENT, ALL OF THEM ACROSS THIS COUNTY, BECAUSE I ALWAYS SAY WE WANT TO MAKE SURE AS THEY GO OUT AND SERVE AND PROTECT OUR COMMUNITIES, THAT WE GET THEM HOME TO THE BEST OF OUR ABILITY.

AND YOU HAVE ALL THE TOOLS AVAILABLE, YOU KNOW, THAT'S AVAILABLE THAT WE CAN AFFORD AND MOVE FORWARD.

SO WE ARE CHANGING AND THAT'S OKAY. IT'S NOT A BAD THING.

IN THE PAST IT WAS GREAT AND WE APPRECIATE ALL OF THEM.

ONE OTHER REMARK I WANT TO SAY IS THAT SUPERVISOR CHECK, I KNOW YOU'RE ONLINE, AND I DON'T WANT YOU TO FEEL THAT YOU'RE NOT PART OF THIS CONVERSATION. SO JUST JUMP IN ANY TIME THAT YOU HAVE A REMARK, OKAY? JUST WANT TO MAKE SURE I GET THAT OUT TO YOU.

OKAY. MADAM CHAIR. CHAIR MALLORY AND I WANT TO APOLOGIZE FOR NOT BEING THERE.

I DID WAKE UP ILL TODAY, SO I DIDN'T WANT TO GIVE THAT TO YOU.

BUT I AM LISTENING INTENTLY, AND I DO HAVE SOME COMMENTS I'LL SAVE FOR NOW.

THANK YOU. ALL RIGHT. THANK YOU. AND I THINK CIP IS GOING TO BE A BIG THING FOR US MOVING FORWARD.

AND IT'S A LOT LIKE THE COP CARS WE JUST BOUGHT.

YOU KNOW, WE JUST SPENT $2 MILLION ON POLICE CARS AND 20% ADDITIONAL IS GOING TO BE OUTFITTING THEM AND GETTING THEM READY.

AND I THINK IT'S GOING TO BE THE SAME THING WITH THE BUILDING. YOU BUILD IT, THEN YOU GOT TO HAVE DESKS AND YOU GOT TO HAVE COMPUTERS. YOU GOT TO HAVE PRINTERS, ALL THAT STUFF THAT GOES ALONG WITH IT. BUT ONE THING THAT YOU DIDN'T MENTION IS, DO WE FIGURE IN ONGOING MAINTENANCE AND WHAT THAT COST IS GOING FORWARD? BECAUSE ONCE YOU BUILD IT, YOU GOT TO TAKE CARE OF IT.

AND DO WE I KNOW AT YAVAPAI THEY AT COLLEGE WHEN I WAS ON THEIR BOARD THEY EVALUATED THEIR FACILITIES AND LIKE 100 WAS BRAND NEW. ZERO WAS IT FELL TO THE GROUND. DO WE EVALUATE ON THAT SAME SCALE AND WHERE DO WE KEEP OUR BUILDINGS AT? AND THAT'S PROBABLY NOT FOR THIS DISCUSSION HERE. BUT I DON'T KNOW IF WE DO THAT KIND OF THING.

AND ARE WE FIGURING IN MAINTENANCE FOR THE FUTURE AS WELL? YEAH. THANK YOU. SUPERVISOR KUKNYO I WOULD MAKE ONE QUICK COMMENT ON THAT POINT.

YOU MAY BE AWARE THAT THE COUNTY ENGAGED A CONSULTANT TO DO AN INITIAL SPACE STUDY FOR US SOMETIME LAST YEAR.

VERY PLEASED THAT EVALUATION ALSO CONTAINED A REVIEW OF THE CONDITION OF ALL OF OUR EXISTING BUILDINGS.

THE CONSULTANT REMARKED THAT IN ALL THE WORK THEY HAD DONE AROUND THE COUNTRY, THEY COULDN'T POINT TO ANOTHER COUNTY WHO HAD MAINTAINED THEIR ASSETS TO THE DEGREE THAT WE HAD. SO WHAT WE HAD, HAD BEEN MAINTAINED TO THE HIGHEST DEGREE.

WE OBVIOUSLY HAD DEFICITS IN THE AMOUNT OF SPACE THAT WE WERE KIND OF BURSTING AT THE SEAMS IN A NUMBER OF LOCATIONS.

BUT AGAIN, WHAT WE HAD, WE HAD DONE AN EXCELLENT JOB IN MAINTAINING.

BECAUSE WE WERE, YOU KNOW, WE WERE AT 86%. WELL, IF WE COULD SAVE 5 MILLION AND BE AT 75%, DO WE WANT TO SAVE THAT MONEY? I MEAN, AND THAT KIND OF REALLY FIGURES INTO MOVING FORWARD TO WHAT DEGREE.

CORRECT. YEAH, THEY'RE IN GREAT SHAPE, BUT ARE WE USING TOO MUCH MONEY TO KEEP THEM IN GREAT SHAPE? ARE WE OKAY WITH GOOD SHAPE? YEAH. YEAH. YEAH.

THANK YOU FOR THOSE COMMENTS. AND THESE ARE THE TYPE OF DISCUSSION WE'RE EXCITED ABOUT HAVING AS WE MOVE FORWARD THROUGH THE SLIDES. AND THEN THE LAST SLIDE IN HERE.

I'M SORRY. THE LAST BULLET POINT IS SEEK INNOVATION AND EFFICIENCIES.

AND I THINK WE CAN QUICKLY GLOSS OVER THIS. BUT I WOULD SAY BAKED INTO WHAT WE'RE DISCUSSING.

AND AND I BELIEVE WHAT CHAIR MALLORY MENTIONED PREVIOUSLY IS THE IDEA OF WE USED TO WORK WITH BILLY CLUBS AND BADGES, AND NOW WE'RE WORKING WITH TECHNOLOGY AND DIFFERENT INFRASTRUCTURE IN ADDITION TO THE HUMAN CAPITAL SIDE.

SO AS WE CONTINUE TO RESPOND TO THE COMMUNITY'S NEEDS AND TAKE INTO ACCOUNT NEW OPPORTUNITIES, INNOVATION IS REALLY ONE OF THE DRIVING FORCES.

I FEEL THAT WE'RE GOING TO FIND A WAY TO DELIVER SERVICES IN NEW WAYS, AND IT WILL OFFER US THE OPPORTUNITY TO ADAPT WITH THE CHANGING ENVIRONMENT WE'RE WORKING IN OR THE DEMANDS OF THE COMMUNITY, THE REQUESTS AS THEY'RE LOOKING FOR THEM TO MOVE FORWARD.

SO I'M VERY EXCITED AS THE SPIRIT OF INNOVATION CONTINUES TO TAKE TAKE FORCE HERE AT YAVAPAI COUNTY BECAUSE IT WILL GROW

[00:20:09]

I BELIEVE IT'S SOMETHING FROM THE GROUND UP OF DEPARTMENTS.

SO WE'RE REALLY EXCITED ABOUT HEARING ABOUT HOW THEY'RE DOING THINGS DIFFERENTLY IN THEIR SERVICE DELIVERY OPTIONS.

SO YAVAPAI COUNTY POPULATION OVERALL OVER THE OR A CCORDING TO THE 2022 FIGURES FROM THE CENSUS, YAVAPAI COUNTY IS JUST AT 246,000. SO WE'RE REALLY CLOSE TO THE 250,000 THRESHOLD.

SOME WOULD SAY WE'RE THERE RIGHT NOW GIVEN THE ESTIMATES ON POPULATION GROWTH.

AND HERE SHOWS AND I APOLOGIZE FOR THE SMALLER TEXT.

2011 THROUGH 2022, THE GROWTH RATE. SO JUST UNDER 2% GROWTH RATE.

IT'S 1.7 THIS LAST YEAR. AND I WANT TO MENTION UNDERLYING THIS TOO IS REALLY AN IN-MIGRATION.

AND WHAT THAT MEANS IS INDIVIDUALS ARE MOVING INTO YAVAPAI COUNTY.

SO IF YOU LOOK AT THE BIRTHS AND DEATHS COMPARED TOGETHER.

MORE BABIES ARE NOT BEING BORN HERE, UNFORTUNATELY.

IT'S ACTUALLY PROMPTED THE GROWTH IS PROMPTED BY NEW INDIVIDUALS MOVING TO YAVAPAI COUNTY AND THIS BECOMING THEIR HOME.

AND SO OVER TIME, AS WE'RE LOOKING INTO THE PROJECTIONS OF THAT, IT'S JUST SOMETHING TO TAKE INTO ACCOUNT OF THE GROWING YAVAPAI COMMUNITY.

AND THEN IN COMPARISON TO THE US POPULATION, DURING THE SAME TIME PERIOD, THEY GREW YAVAPAI COUNTY WHERE THEY GREW 16.7% FROM 2010.

THE US GREW 7.7% AND ARIZONA OVERALL GREW 14.9.

SO IT SHOWS THE STRENGTH OF THE GROWTH IN YAVAPAI COUNTY IN THIS REGION.

DO YOU TRACK THEIR AGES SO YOU MAY KNOW WHAT SERVICES THEY NEED? THE AGES? THE AGES OF THE PEOPLE THAT ARE MOVING IN HERE? DO YOU KNOW? GREAT QUESTION. I HAVEN'T GOTTEN DATA SETS TOGETHER THROUGH THE IN-MIGRATION BY AGE, AND I COULD LOOK INTO THAT, BUT IT'S THEY WOULD NEED DIFFERENT SERVICES FOR I MEAN.

CORRECT. YEAH. OVERALL, ONE OF THE DEMOGRAPHICS OF THE DATA SET I PULLED THIS FROM, I DIDN'T THEY WERE ABOUT TEN DIFFERENT AREAS IN THERE.

THE MAJORITY I THINK THE TWO DIFFERENT GROUPS, THE MAIN ONE WAS ABOVE 65.

AND SO THE 65 GROWTH RATE WAS, I BELIEVE, AROUND 50,000 PEOPLE OF THIS GROUP.

AND THEN THE SECOND, THE SECOND HIGHEST GROUP WAS THE ONE, I BELIEVE IT WAS 20.

I FORGET WHETHER THEY DO THE CUT OFFS, BUT IT WAS MID 20S. AND SO THOSE WERE THE TWO THE TWO STRONGEST GROWTH RATES OF GROUPS DURING THIS PERIOD OF TIME.

BUT YEAH WE CAN DEFINITELY PROVIDE MORE.

BUT THE TWO GROWTH THE TWO HIGHEST GROUPS BETWEEN 2010 AND 2022 THAT GREW DURING THIS TIME PERIOD WERE THE MID 20S AND THEN THE 65 AND OLDER. WE HAVE PEOPLE COMING IN TO TAKE CARE OF US.

[LAUGHTER] I DON'T KNOW, I DON'T KNOW. YEAH, YEAH THAT'S GOOD.

SO WHEN YOU TIE THAT INTO ROOFTOPS TOO. SO ARE WE.

DO WE IS OUR AVERAGE OCCUPANCY PER HOME TWO YOU KNOW, SO WHEN YOU SEE A GROWTH RATE OF 2% DOES THAT MEAN 1% MORE HOMES.

ON THE GROWTH RATE OF HOMES YOU KNOW I'LL HAVE TO LOOK INTO THE DATA ON THAT BECAUSE I HAVE STARTED TO COLLECT SOME DATA ON ON NEW BUILDINGS OR PARCEL COUNTS ACTUALLY, THAT HAS COME FORWARD. AND LET ME JUST DOUBLE CHECK, BECAUSE I ACTUALLY WAS LOOKING AT THIS AND LOOKING AT THE MEDIAN VALUED HOME JUST TO MAKE SURE I DON'T HAVE IT READILY AVAILABLE IN HERE.

I MAY HAVE CLOSED IT OUT. SORRY TO SHOCK YOU ON THAT ONE.

IT WAS NO, NO NO, IT'S ACTUALLY I HAVE IT READILY AVAILABLE.

SO THE PARCEL COUNT ACCORDING TO THE ASSESSOR'S OFFICE, GREW ON AN AVERAGE SINCE 2016 TO 2026 AT 1.8%.

AND SO THE PARCEL COUNT IS ONE OF THE THINGS I NOTICED THAT MOST PEOPLE WOULD EXPECT.

IS THOUGH OUR MEDIAN VALUED HOME DID INCREASE SIGNIFICANTLY DURING THAT TIME PERIOD, ABOUT 9% PER YEAR.

THE PARCEL COUNT IS ONLY INCREASING BY 1.8%. SO THOUGH WE'RE GETTING MORE BODIES HERE, THE QUESTION IS, IS THERE ENOUGH BUILDING IN ORDER TO TAKE CARE OF THE NEW POPULATION THAT'S COMING IN, THUS AFFORDABILITY.

AND SO I THINK THAT WILL BE ONE OF THE CURRENT CHALLENGES.

IT'S ONE OF THE CURRENT CHALLENGES, AND IT LOOKS TO BE ONE OF THE CHALLENGES MOVING FORWARD FOR THE NEXT COUPLE OF YEARS. YEAH.

GOOD QUESTION. AND THEN OVERALL TO THE UNINCORPORATED POPULATION OF YAVAPAI COUNTY IS 38%.

THIS IS A SIGNATURE YEAR FOR YAVAPAI COUNTY IN THAT PROPOSITION 479 DID PASS DURING THIS LAST ELECTION.

THAT WAS A WOOHOO MOMENT FOR ANY OF THE COUNTIES IN ARIZONA.

AND JUST A QUICK OVERVIEW OF OF THE ELR. THE ELR WAS ESTABLISHED I BELIEVE IN THE EARLY 80S, EITHER LATE 70S, EARLY 80S WITH WHAT. 79-80. OKAY, 79-80 TIME PERIOD IN WHICH THE INTENT BEHIND IT WAS TO SLOW OR TO

[00:25:03]

IT WAS TIED TO INFLATION BASED UPON WHERE A COUNTY WAS OR CITY OR COUNTY WAS AT IN THAT PERIOD OF TIME.

UNFORTUNATELY, GROWTH EITHER IN POPULATION, AS WE'RE TALKING ABOUT, YOU MAY HAVE A POPULATION THAT EXCEEDS THAT AS WELL AS THE COST FOR THE DELIVERY OF SERVICES, PUBLIC SAFETY BEING ONE OF THEM. PUBLIC SAFETY, GROWTH OR EXPENDITURES USUALLY GROW MORE THAN INFLATION ON AN ANNUAL BASIS.

AND SO OVER TIME, THIS PROMPTED THE COUNTY, YAVAPAI COUNTY, AS WELL AS OTHER COUNTIES PREVIOUS TO THIS, TO GO FORWARD TO THE VOTERS AND TO ASK TO INCREASE THAT CAP.

NOW, THE CAP, JUST FOR CLARITY, WHAT THE CAP DOES IS IT ALLOWS THE COUNTY TO NOW SPEND AT A HIGHER RATE.

IT DOESN'T NECESSARILY BRING IN ANY NEW REVENUE.

SO THAT'S THE MISNOMER. A LOT OF TIMES PEOPLE THINK, OH GREAT, THE ELR PASSED THAT MEANS WE HAVE NEW REVENUE IN THE BOOKS.

WHAT THAT MEANS IS ANY REVENUE THAT WE CAPTURED AT A HIGHER RATE THAN INFLATION BEFOREHAND, SAY WE HAD A REVENUE GROWTH. WE'LL GO OVER SOME SLIDES OF 4 OR 5, SIX OR EVEN 10% YEAR OVER YEAR PREVIOUSLY WE WOULDN'T BE ABLE TO FULLY SPEND THOSE DOLLARS IF WE WERE UNDER THAT CAP. SO WE HAD THAT CEILING THRESHOLD BEFOREHAND.

SO THE GOOD NEWS IS THAT CAP HAS BEEN TAKEN AWAY, BUT THAT STILL REQUIRES THAT WE HAVE ONGOING REVENUE IN ORDER TO SUPPORT THE EXPENDITURES WE'RE MOVING FORWARD. AND THAT'S THE STRUCTURAL BALANCE PIECE THAT WE'LL CONTINUE TO TALK ABOUT.

AND JUST TO CLARIFY, YOU SAY THE CAP HAS BEEN TAKEN AWAY, BUT IT'S STILL THERE, RIGHT? IT'S JUST THAT WE HAVE A LITTLE BIT HIGHER THAN WHAT WE DID.

I JUST. YES. BECAUSE VERY ASTUTELY MENTIONED IN THERE.

CORRECT. IT'S BEEN RAISED BY ABOUT 125 MILLION.

BUT YES, WE JUST THAT CAP IS STILL IN PLACE. THE ELR IS STILL IN EXISTENCE, BUT IT HAS BEEN RAISED.

IT HAS BEEN REBASED TO OUR CURRENT VALUES RATHER THAN FROM THE ONES THAT WERE SET IN 79, 80.

AND THE ONLY REASON I CAUGHT THAT IS BECAUSE, YOU KNOW, AS YOU ARE AS I WAS OUT THERE TRYING TO HELP THIS SITUATION THAT COMMENT WAS MADE. OH, YOU JUST WE'RE JUST GOING TO TAKE THIS ROOF TOP OFF AND YOU'RE JUST GOING TO GO CRAZY.

NO, NO, NO, NOT GOING CRAZY. SO I JUST WANTED TO KIND OF REVISIT THAT AND LET THE PUBLIC KNOW WE STILL GOT A CEILING HERE.

CORRECT? OKAY. AND THEY'RE STILL LEVY LIMITS ON PROPERTY TAXES.

THERE ARE STILL OTHER LIMITS IN PLACE. THIS IS JUST AN ADDITIONAL ONE THAT THAT DISALLOWED GOVERNMENTS TO SPEND THE AVAILABLE DOLLARS THEY HAVE.

AND IT HAS BEEN MOST GOVERNMENTS ARE FINDING, ESPECIALLY ONES THAT DO NOT USE A HIGH SECONDARY TAX RATE.

SO YOUR BONDING IS DOES NOT COUNT TOWARDS THIS.

AND SO YAVAPAI COUNTY WHICH TRADITIONALLY HASN'T USED AS MUCH BONDING IS SOMEWHAT PENALIZED.

SIMILARLY I USED TO WORK FOR MARICOPA COUNTY.

THEY HAD A CHALLENGE WITH US BECAUSE IF YOU DON'T BOND, THEN YOU PAY WITH CASH.

YOU HIT THAT RATE MORE QUICKLY. SO WITH THE SPENDING LIMIT INCREASE, THIS KEEPS US SAFE FOR ABOUT HOW LONG? TEN, 12 YEARS BEFORE WE HIT THAT CAP AGAIN. GREAT QUESTION, I KNOW.

I'LL TAKE THAT ONE. YES, THAT'S THE STAFF ESTIMATE.

AT THE TIME WHEN WE ESTABLISHED THE 7.9 FIGURE, TO ASK THE VOTERS TO APPROVE, OUR ESTIMATE WAS 10 TO 12 YEARS, BUT BONDING DOES NOT GO TOWARDS IT. CORRECT. OKAY.

AND, MADAM CHAIR, I MEAN, I WANT TO JUST SAY THE VOTERS WERE VERY KIND TO US TO GIVE US 479.

AND IT HAS TO LAST. IT HAS TO MAKE US LAST THROUGH TIME.

AND I WAS VERY REASSURED THAT MAURY AND HIS STAFF FEEL THAT SAME WAY.

IT'S NOT AN OPEN SPENDING THING. WE DIDN'T JUST GET A WHOLE BUNCH OF MONEY.

BECAUSE WE DIDN'T. YEAH, BUT WE DON'T HAVE TO TURN AWAY SOME MONEY THAT IF IT COMES IN FROM OTHER SOURCES.

CORRECT. YES I AGREE. SUPERVISOR KUKNYO. AND AS WE HAVE THAT PROJECTION MR. THOMPSON, WHEN YOU JUST SEE THE LAST 5 TO 6 YEARS AND THE WAY THIS COMMUNITY HAS GROWN.

YOU KNOW, I JUST REALLY WANT TO EMPHASIZE THAT THAT IS AN ESTIMATE.

JUST AN ESTIMATE ON HOW LONG THIS CAN LAST. AND BECAUSE I DON'T KNOW, JUST LOOKING AT ROADS, WHICH, YOU KNOW, THE COUNTY, WE DO HAVE ROADS, BUT WE'RE NOT ON THE MAIN AREAS, 69, 89, ALL OF THOSE THINGS.

SO THOSE ARE NOT OURS TO WE CAN PARTNER WITH MUNICIPALITIES OR THE STATE OR HOWEVER THAT LOOKS.

BUT WHEN YOU START TALKING ABOUT INFRASTRUCTURE, THAT IS A HUGE, A HUGE COST.

AND I WILL TELL YOU WE ARE BEHIND THE TIMES. SO JUST KIND OF PUTTING THAT OUT THERE.

THANK YOU. THE NEXT SLIDE TALKS VERY BRIEFLY ABOUT THE STATE FISCAL POSITION

[00:30:02]

WE'RE ALWAYS KEEPING AN EYE OUT ON HOW THE STATE REVENUE POSITION IS DOING.

AS WELL AS ANY NEW LEGISLATION THAT'S BEING PUT FORTH.

STATE REVENUES FOR THIS YEAR HAVE BEEN RATHER SLOW GROWING.

UNFORTUNATELY TPT THE SALES TAX HAS BEEN THE SLOWEST GROWTH MEASURE.

THE STATE HAS BEEN PICKING UP MORE DOLLARS IN THEIR INCOME TAX SIDE.

THE REASON I WOULD SAY IT'S MORE DISAPPOINTING ON THE TPT SIDE IS BECAUSE COUNTIES AS WELL AS CITIES GET A PORTION OF THE TPT.

IT'S TRANSACTION PRIVILEGE. PRIVILEGE TAX THAT IS COLLECTED AT THE STATE.

THE 5% THAT'S COLLECTED ON EVERYTHING AT THE STATE IS BUNDLED TOGETHER THROUGH THEIR FORMULARY AND THEN PASS THROUGH TO THE VARIOUS JURISDICTIONS.

AND SO JUST A REMINDER THAT THE STATE REVENUE POSITION, THEY SEEM TO BE DOING RATHER WELL RIGHT NOW, WHICH IS GOOD, BUT IT'S NOT GREAT TO THEIR PROJECTIONS.

THEY'RE ACTUALLY EXPECTING THEIR OUTYEAR PROJECTIONS TO DO STRONGER THAN THEY CURRENTLY ARE. THEY'RE LOOKING SOMEWHERE IN THE GROWTH RANGE OF 2 TO 3% FOR THIS NEXT YEAR, AND THEN ACCELERATING INTO 3 TO 4% GROWTH WITH A LOT OF THE ECONOMIC ACTIVITY, ESPECIALLY IN THE PHOENIX METRO REGION.

AND SO WE BENEFIT FROM THAT AS A COMMUNITY, ALL OF THE COMMUNITY, SURROUNDING COMMUNITIES DO BUT ONCE AGAIN, IT'S SOMETHING WE LOOK AT BECAUSE IF EXPENDITURES GET OUT OF ALIGNMENT AT THE STATE MANY TIMES, THAT CAN CREATE SOME COST PRESSURES AT THE COUNTIES.

AND THERE'S TWO BILLS UP HERE. I'VE MENTIONED JUST HOT OFF THE PRESS LAST NIGHT.

WE GOT AN UPDATE THAT THE COURT RETIREMENT CHANGES THAT WERE BEING CONSIDERED AT THE STATE LEGISLATURE THEY WERE VOTED DOWN, SO THEY DID NOT MOVE OUT OF I BELIEVE IT'S THE CAO RIGHT NOW.

I'M NOT SURE IF THEY COULD BE IF THEY COULD COME BACK TO LIFE BECAUSE IN THE LEGISLATIVE PROCESS, THERE'S A COUPLE DIFFERENT WAYS THAT THEY CAN COME THROUGH. AND THE REASON WE WERE WATCHING THIS IS THIS ANY OF THE CHANGES TO OUR RETIREMENT, DEFINED PENSION OR PENSION PLANS HAVE MULTIPLIER IMPACTS TO US AT THE COUNTY.

AND SO AS THOSE PERCENTAGES INCREASE, THAT'S THE COST FOR A POSITION.

IF IT GOES UP EACH PERCENTAGE POINT AS IT GOES UP, IT WOULD THEN BE MUCH OR IT'D BE MORE EXPENSIVE FOR US AS A COUNTY FOR THOSE POSITIONS.

SO WE ARE LOOKING AT THE CORPORATE RETIREMENT CHANGES.

AND THEN THE SECOND ONE THAT IS A NEW ONE THIS YEAR IS VOTING CENTERS.

SO THIS IS BY A PRECINCT VOTING. IT'S MORE EXPANSIVE THAN THAT.

BUT SOME INITIAL PROJECTIONS HERE, YAVAPAI COUNTY, IT WOULD BE SOMEWHERE BETWEEN POTENTIALLY 6 TO $10 MILLION OF ADDITIONAL INVESTMENT ON AN ANNUAL BASIS IF OR FOR YEARS THAT WE HAVE ELECTIONS.

IF THIS VOTE WOULD GO FORWARD, IT'S STILL BEING CONSIDERED AT THE LEGISLATURE.

AND THERE'S TWO FORMS OF IT. THERE'S ONE THAT WOULD GO THROUGH THROUGH A STANDARD VOTE OF THE LEGISLATURE, IF IT WERE NOT IF THAT WERE TO GO FORWARD, THE GOVERNOR COULD POTENTIALLY VETO THAT.

BUT THERE'S A SECONDARY ONE WHICH WOULD PUT IT BEFORE THE VOTERS.

AND IF THAT WERE TO GO FORWARD, THAT ONCE AGAIN WOULD BE A PRETTY COSTLY BILL TO US THAT THE COUNTY FOR THE RECORDER'S OFFICE AS WELL AS ELECTIONS.

SO WE'RE KEEPING AN EYE ON THAT. ADMINISTER PRECINCT VOTING.

HOW WOULD IT EVEN BE POSSIBLE? THANK YOU FOR THAT QUESTION, VICE CHAIR.

I WAS IN THE COUNTY MANAGERS MEETING IN PHOENIX LAST WEEK, AND WE TALKED ABOUT THAT.

REGARDLESS OF YOUR POSITION ON THAT BILL AND REGARDLESS OF YOUR POSITION ON THE COST OF IT I MADE THE COMMENT IN THAT MEETING, IT'S ALMOST IMPOSSIBLE, THE PROJECTION OF THE NUMBER OF ADDITIONAL LOCATIONS YOU WOULD HAVE TO FIND IN MARICOPA COUNTY OR EVEN YAVAPAI COUNTY, WHERE WOULD WE GET THE PEOPLE? I YOU KNOW, WE CAN'T WE CAN'T FIND THE NUMBER OF LOCATIONS THAT WOULD BE REQUIRED, NOR THE PEOPLE. OKAY. SO AGAIN, REGARDLESS I ALSO HAVE A COMMENT ON THAT BILL. JUST THAT THERE ARE PRECINCTS LIKE IN IN MY DISTRICT THAT DON'T HAVE A COMMERCIAL BUILDING WITHIN THEM, YOU KNOW, TO GATHER PEOPLE. SO IT'S A VERY DIFFICULT BILL.

I REALLY HOPE IT GOES DOWN. I JUST THINK THE PEOPLE HAVE GOTTEN A TASTE FOR BETTER, HONEST, MORE TRANSPARENT ELECTIONS, AND IT'S DRIVING IT FORWARD.

A LOT OF THE CHANGES HAVE BEEN GOOD, AND I'M SURE IF THE STATE PASSES THIS, THEY WILL FUND THIS MANDATE, RIGHT? YEAH. OKAY. MAYBE NOT, BUT ANYWAYS, I MEAN, ANYTHING WE CAN DO TO MAKE IT BETTER, BUT IT HAS SIGNIFICANT CHALLENGES TO PULLING IT OFF. AND, YOU KNOW WHEN YOU WE GOING OVER TO THE PART FOR THE RETIREMENT.

I KNOW THIS HAS BEEN A VERY HARD TOPIC AND, AND I, I KNOW THAT THERE'S BEEN A LOT OF STAKEHOLDERS AT THE TABLE FOR IT. SO I HOPE THAT MAYBE IN THE FUTURE, WITH WHATEVER WE'RE LEARNING FROM ALL OF THESE AND IT YOU KNOW THAT WE CAN FIGURE OUT A WAY BECAUSE IT IS AN IMPORTANT PART TO HAVE A RETIREMENT.

HOW THIS WORKS. IT'S A HARD JOB, NO DOUBT. AND I THINK ANY OF THE JOBS THAT PEOPLE DO IN REGARDS

[00:35:10]

AND I ALWAYS BELIEVE THAT THE PEOPLE THAT DO ALL THESE JOBS HAVE A GIFT OR A CALLING.

SO I HOPE THAT, YOU KNOW, SOMEHOW OR ANOTHER, THE RETIREMENT PART CAN HOPEFULLY BE REVISITED TO THE POINT THAT IT COULD BRING SATISFACTION TO BOTH SIDES OF THE TABLE AND THAT, YOU KNOW, THE MUNICIPALITIES WOULD BE ABLE TO ACCEPT AND AFFORD.

IT'S JUST THAT AS WE DEAL WITH THE PSPRS, WE ARE NOW LOSING MONEY AGAIN ON THEIR INVESTMENTS.

NOT AS BAD AS IT WAS, BUT STILL, IT'S JUST IT'S NOT THE GREATEST TYPE OF PROGRAM FOR SURE.

THANK YOU. THANK YOU CHAIR. AND IF I COULD MAKE A COMMENT ON THAT I APPRECIATE YOUR COMMENTS HERE.

I WANT TO CLARIFY THAT, YOU KNOW, AS MEMBERS OF THE COUNTY SUPERVISORS ASSOCIATION, THAT THE ASSOCIATION HAS TAKEN A POSITION ON THAT BILL.

THE POINT OF STAFF, INCLUDING IT HERE IS NOT TO WEIGH INTO THAT ONE WAY OR THE OTHER, QUITE FRANKLY, BUT OUR RESPONSIBILITY TO POINT OUT THE POTENTIAL COST TO THESE TWO ITEMS, AND THAT'S IT.

WILL THOSE FUNDS EVER PRESENT TO US? DO THEY EVER SHOW UP AND SAY, HERE'S WHAT'S GOING ON? BECAUSE, YOU KNOW, WE WATCHED PRESCOTT PUT A TAX IN AND PAY $80 MILLION PLUS DOLLARS INTO IT.

THEY PAY IT OFF AND NOW THEY'RE ALREADY UPSIDE DOWN ANOTHER MILLION DOLLARS.

YEAH. THANK YOU. SUPERVISOR KUKNYO FOR THAT COMMENT OR QUESTION AS WELL.

AND YES, THAT IS A POSSIBILITY THAT WE COULD HAVE THEM HERE TO MAKE A PRESENTATION.

THEY ARE WILLING TO DO THAT. AND I THINK WE'LL TOUCH ON THIS TOPIC LATER ON AS YOU KNOW, WE LOOK AT THE FULL FINANCIAL PICTURE AND YOU KNOW, WHAT YOU DO WITH CASH, WHAT YOU COULD DO WITH BONDING AND LOOKING AT OTHER SCENARIOS TO ADDRESS SOME OF THOSE ISSUES AS WELL.

IT'D BE NICE TO SEE ALL THE NOT JUST PSPRS, BUT ASRS AND EVEN THE STATE FUND AS WELL.

YEAH. AND THEN LASTLY AND AS COUNTY MANAGER THOMPSON MENTIONED DEFINITELY NOT TO DELVE INTO SOME OF THE CURRENT POLICIES AT THE, AT THE US LEVEL, BUT IT'S IMPORTANT TO BRING FORWARD BEFORE THE BOARD THAT ONE OF THE ONES IN OUR IN OUR FOCUS POINTS, AND I BELIEVE THE SUPERVISORS THAT WENT TO NACO, THIS IS PROBABLY PRESSED VERY STRONGLY IS PILT, SO PAYMENT IN LIEU OF TAXES, IS OF SIGNIFICANT IMPORTANCE TO ANY COUNTY THAT HAS A GOOD PERCENTAGE OF FEDERAL FOREST LAND, WHICH YAVAPAI COUNTY IS ABOUT HALF, HALF THE ACREAGE OF THE COUNTY IS FEDERAL FOREST LAND.

SO WE HAVE RECEIVED IN 2024 RECEIVED ABOUT $4.3 MILLION.

WE HAD BUDGETED THIS YEAR $4.2 MILLION TO RECEIVE THAT AUTHORIZATION HAS YET TO BE OFFERED, OR THAT HAS YET TO BE AUTHORIZED THIS YEAR. AND SO IF THAT WERE TO NOT MOVE FORWARD, UNFORTUNATELY THAT WOULD BE $4 MILLION THAT WE, WE WOULD NOT HAVE. AS WELL AS GOING INTO THE FUTURE, IF THERE'S A DECISION TO MOVE FORWARD, THIS AUTHORIZATION NOW HISTORICALLY THERE'S USUALLY LATE APPROPRIATIONS TO THIS AREA.

SO THERE'S STILL HOPES THAT IT MIGHT GO FORWARD.

BUT THIS IS ALSO A UNIQUE YEAR AT THE FEDERAL LEVEL.

SO WE'LL WAIT TO SEE WHAT IS MOVING FORWARD. RIGHT NOW, I CURRENTLY HAVE IT BUILT INTO THE FY 26 BUDGET BECAUSE WE HAVE NOT LAPSED IN RECEIVING THIS FROM THE TIME THAT I LOOK BACK FOR OUR HISTORICAL.

SO AS WE MOVE FORWARD THE BUDGET WE PRESENT IN A MONTH AND A HALF WILL WE'LL LET YOU KNOW OUR OUR FEELING AT THAT POINT IN TIME.

BUT JUST TO LET YOU KNOW, THIS IS A SIGNIFICANT PART OF OUR GENERAL FUND BUDGET, $4.3 MILLION.

AND THEN THE SECOND PIECE OF THIS IS THE INFLATION OF BUILDING MATERIALS.

NOW THIS MIGHT TEMPER OVER THIS NEXT YEAR, BUT CURRENTLY WE HAVE SEEN THIS AS TALKING TO THE DIRECTOR OF FACILITIES.

THEY'VE RECENTLY REJECTED A BID BASED UPON THE NEWER ESTIMATES OF ONE OF THEIR BUILDING PROJECTS.

SO WE EXPECT THIS IN INTO THE NEAR FUTURE THAT WE MAY SEE SOME MORE VARIABILITY IN THIS AREA.

SO THESE ARE TWO AREAS THAT WE'RE KEEPING AN EYE ON TO MAKE SURE WE'RE BUDGETING APPROPRIATELY FOR WHAT WE THINK IS GOING TO HAPPEN IN FY 26.

ANYBODY WOULD BE HAPPY TO PAY A $1.65 AN ACRE FOR THEIR TAXES.

YOU KNOW, AND I DON'T THINK PEOPLE REALIZE ONLY 17% OF ARIZONA'S PRIVATELY HELD, WHICH MEANS 17% OF THE PEOPLE HAVE TO PICK UP THE TAXES FOR THE WHOLE PLACE. AND THIS IS BIG. AND I DON'T KNOW IF THEY DO NOT PAY IT.

I DON'T KNOW WHAT THE OPTION IS FOR US. I MEAN, WE, DO WE HAVE TO RAISE OUR TAXES TO COVER THE FEDERAL GOVERNMENT NOT PAYING FOR THEIR FEDERAL LAND. WHAT'S THE OPTION IF THEY DO NOT COME THROUGH? CORRECT. AS WE'RE GOING TO TALK ABOUT IN A COUPLE SLIDES FORWARD, THIS IS THE REASON WE HAVE RESERVES.

[00:40:02]

AND SO THE RESERVES ALLOW US TO MOVE FORWARD IN YEARS THAT EXPECTED REVENUES DO NOT COME FORWARD.

THEY MAY COME FORWARD LESS THAN WE HAD EXPECTED OR WE HAVE NEW SHOCKS.

AND SO THIS WOULD BE ONE OF THE SITUATIONS IN WHICH WE WOULD UTILIZE OUR RESERVES FOR AND THEN EVALUATE THE NEXT YEAR, AS YOU'RE MENTIONING ON AN ONGOING BASIS, IF WE DO NOT RECEIVE THIS, HOW DO WE DECIDE TO ADDRESS THAT? YEAH. GREAT QUESTION, MADAM CHAIR. I ALSO WANT TO JUST TOUCH ON THE TOPIC OF US POLICIES.

I DON'T KNOW IF WE'VE DONE A SURVEY OF FEDERAL GRANTS.

YOU KNOW, I KNOW THAT THE THE FUNDING FREEZE DIDN'T GO THROUGH, BUT THAT'S A POTENTIAL IMPACT SHOULD THAT SHIFT, THAT COULD BE INTERESTING. BUT, I MEAN, THE FEDERAL LANDS ARE, IT'S A BIG DEAL, OUR PUBLIC LANDS.

I THINK SENATOR FINCHEM IS PROPOSING THAT THAT FEDERAL LANDS GO INTO THE HANDS OF STATE TRUST, THAT, I MEAN, THAT JUST COULD REALLY SIGNIFICANTLY IMPACT OUR RECREATION ECONOMIES, ESPECIALLY YOU KNOW, ALSO JUST THE PARK SERVICE STAFFING ISSUES. IF WE START TO SEE LESS PEOPLE COMING INTO THE GRAND CANYON, YOU SEE LESS PEOPLE COMING INTO SEDONA. SO I'M, I'M TROUBLED BY THE THE IMPACTS ALREADY IN OUR, OUR ECONOMIC SPHERE. I THINK THAT THE FEDERAL LEVEL OF INCOME FOR OUR COUNTY IS, I WOULD GUESS IT'S FAIRLY SIGNIFICANT, ESPECIALLY IN REGARDS TO, LIKE, OUR COUNTY HEALTH DEPARTMENT.

SO I JUST WANT TO MAKE SURE THAT WE'RE PLANNING FOR WHAT COULD BE LIKE AN EXTREME VARIANCE DEPENDING ON HOW MUCH CHANGES.

IT'S JUST A TIME OF VERY SIGNIFICANT CHANGE. I'M GLAD TO HEAR THAT OUR RESERVES ARE HEALTHY, AND I CERTAINLY WOULD WANT TO CONTINUE TO PLAN THAT WAY.

BUT I'M JUST IN PARTICULAR CONCERNED ABOUT FEDERAL LEVEL LEVEL FUNDING AND, AND IT TRICKLING DOWN AND ALSO ECONOMIC ISSUES.

SO I THINK, YOU KNOW, ONE THING TO CONSIDER AS WE PLAN AND, YOU KNOW, PLACE OUR VALUES IS, IS TO CONSIDER WHAT ASPECTS OF THE COUNTY REALLY OFFER RESILIENCY FOR RESIDENTS AS THINGS CHANGE.

AND I GUESS NOW'S AS GOOD A TIME AS ANY TO JUST BRING UP THAT WE HAD A LOT OF COMMUNITY CENTERS AND MEALS ON WHEELS APPLY FOR THE CDBG GRANT, THE COMMUNITY DEVELOPMENT BLOCK GRANTS.

AND I KNOW WE WANTED TO BRING UP THE, THE POSSIBILITY OF FUNDING THAT IN A MORE HOLISTIC AND EQUITABLE WAY THROUGH THE COUNTY. SO I'LL JUST LEAVE THAT THERE.

WE CAN PICK THAT CONVERSATION UP LATER. BUT I THINK COMMUNITY CENTERS, MEALS ON WHEELS, LIBRARIES, ALL OF THOSE REALLY HELP CREATE RESILIENCY FOR PEOPLE IN TIMES OF CHANGE.

SO THANKS. THANK YOU VERY MUCH SUPERVISOR CHECK.

AND I AGREE THIS, YOU KNOW, THIS REVENUE THAT WE HOPE TO RECEIVE IF WE DIDN'T RECEIVE IT, WHAT A DIFFERENT LOOK THAT WOULD BE.

WE ARE ALWAYS HAVING THIS SITUATION WHERE WHAT WE HAVE TODAY COULD ABSOLUTELY CHANGE BEFORE WE GO HOME AT 5:00 TODAY. AND, YOU KNOW, AND SO IT'S ALWAYS GOOD THAT WE DO KEEP AS WE TALK ABOUT THIS EVERY DAY KEEPING FORWARD, PROTECTING WHAT WE CAN HERE, KEEPING OUR COMMUNITY MOVING FORWARD.

CHAIR IF I MAY COMMENT IN RESPONSE TO SUPERVISOR CHECK'S COMMENTS, THERE ARE A NUMBER OF COMMENTS HERE.

FIRST, I WILL ASSURE YOU THAT WE ARE MONITORING ANY FEDERAL IMPACTS TO TO OUR GRANTS, NOT CURRENTLY SEEING A LOT OF IMPACT, BUT KNOW THAT THAT IS A POSSIBILITY SO WE ARE MONITORING THAT.

SECONDLY, I WOULD LET YOU KNOW THAT I'VE BEEN CONTACTED BY SENATOR KELLY'S OFFICE IN REGARD TO THE FEDERAL IMPACTS ON THE NATIONAL PARK SERVICE AND THE POTENTIAL INABILITY OF THE PARK SERVICE TO HIRE THEIR SEASONAL OR TEMPORARY I'M NOT SURE WHICHEVER THEY REFER TO THEM AS, EMPLOYEES FOR THE UPCOMING SPRING, SUMMER AND FALL SEASONS AT OUR NATIONAL PARKS HERE AND PRIMARILY GRAND CANYON.

AND THE FEAR THAT THAT'S GOING TO HAVE A DETRIMENTAL ECONOMIC IMPACT ON ALL OF US.

SO THEY ARE PLANNING ON CONVENING A NUMBER OF MUNICIPALITIES IN THE COUNTY TO HAVE A CONVERSATION ABOUT WHAT COULD THAT POTENTIAL IMPACT WOULD BE.

SO I WILL KEEP YOU INFORMED OF THAT GOING FORWARD.

AND THEN LASTLY, TO YOUR COMMENT, SUPERVISOR CHECK ABOUT THE CDBG AND FOOD PROGRAMS, I WILL LET YOU KNOW THAT STAFF ARE PLANNING A STUDY SESSION ON THAT VERY TOPIC. YOU MAY RECALL I REFERRED TO THAT DURING OUR LAST ADOPTION OF THE BUDGET WHEN WE TALKED ABOUT THE CONTRIBUTIONS AND IN

[00:45:02]

SO WE PLAN TO BRING THAT FORWARD FOR A MORE ROBUST COUNTYWIDE CONVERSATION ON THOSE FOOD PROGRAMS IN PARTICULAR.

AND, YOU KNOW, MADAM CHAIR, I THINK IT HAS TO BE SAID WHEN WE TALK ABOUT THIS STUFF, I, ON MY PERSONAL OPINION, IS IN THIS NATION, THAT BOX IS JUST GETTING SHOOK UP.

AND THERE'S IT'S IT'S REALLY A BIG THING. WE'VE TRIED TO DO THINGS SMALL AND THAT HASN'T WORKED.

WE KEEP SPENDING MORE, WE KEEP GOING IN A BIGGER DEFICIT.

SO I WELCOME THAT SHAKING UP. IT JUST DOESN'T HELP US WITH OUR PLANNING AND KNOWING WHAT IT IS GOING FORWARD.

BUT, YOU KNOW, I THINK THERE'S BEEN A LOT OF WASTE THAT'S BEEN UNCOVERED AND SPENDING THAT ISN'T RIGHT.

SO I, I JUST WANT TO KNOW WHEN IT'S GOING TO COME DOWN AND, AND MAYBE, MAYBE IT WON'T FOR YEARS, BUT IT DOESN'T HELP US PLAN MUCH GOING IN THE FUTURE.

YEAH. AND SO MOVING RIGHT INTO THE YAVAPAI COUNTY REVENUES SECTION I LIKE STARTING BY, BY MENTIONING REVENUE SETS THE SIZE OF THE BOX.

SO IT WAS INTERESTING DURING THE, THE PUBLIC ENGAGEMENT ACTIVITIES, THE GROUP GROUP OF THE CITIZENS ACADEMY CAME TOGETHER AND THEY WERE GIVING A A BUDGET TO PLAY WITH, REALLY TO STIMULATE THROUGH.

AND THEY HAD THE REVENUE SIDE AND THE EXPENDITURE SIDE, AND THEY WEREN'T SURE WHAT SIDE TO START WITH FIRST. AND ONE OF THE INDIVIDUALS IN THE GROUP ACTUALLY WAS SUPERVISOR KUKNYO GROUP MENTIONED, HEY, WHY DON'T WE START WITH THE EXPENDITURE SIDE FIRST? THAT MAKES MOST SENSE FOR ME. AND ONE OF THE THINGS I, I MENTIONED TO THEM, I SAID, YOU KNOW, WHAT PART OF THE AREAS THAT WE'LL LOOK AT AS A GOVERNMENT IS SIMILAR TO THE COMMENTS MADE PREVIOUSLY IS BECAUSE MANY OF OUR REVENUES ARE NOT GENERATED.

WE HAVE LIMITED LIMITATIONS ON SOME OF THE FACTORS BEHIND OUR REVENUES.

WE'RE CONSTANTLY MONITORING WHAT WHAT IMPACT THERE IS IN THE COMMUNITY.

MANY OF THEM, 79% ARE PROPERTY TAX AND SALES TAX, WHICH SALES TAX THE TWO GROUPS TOGETHER IS THE LARGEST PART OR COMPONENT OF THAT, THOSE ARE SET. AND SO THOSE AMOUNTS, DEPENDING ON WHAT SPENDING DOES IN THE COMMUNITY, WILL DETERMINE HOW MUCH MONEY COMES IN.

AND SO AS THOSE GROW AND CHANGE AS WELL AS WHAT'S GOING ON WITH THE PROPERTY VALUATION, THAT'S WHERE WE'LL LOOK HOW MUCH NEW DOLLARS WE MIGHT HAVE AVAILABLE TO US TO SPEND.

AND SO THE REVENUE REVENUE SIDE IS VERY IMPORTANT.

SO WE KEEP AN EYE ON IT EVERY SINGLE MONTH WHEN WE GET NEW PROJECTIONS TO SEE HOW IS THE TRAJECTORY TURNING.

AND FORTUNATELY, IT'S IMPROVED SOMEWHAT SIGNIFICANTLY FROM LAST TIME.

SO IT'S IT'S IT'S IN SPANISH YOU SAY [SPANISH] OR IT'S NOT AS BAD AS IT USED TO BE.

SO IT'S IT'S IT'S DOING A LITTLE BIT BETTER. STATE SHARE SALES TAX IS THE FIRST ONE I WANTED TO START WITH.

AND THIS GRAPH HAS OR THIS, THIS GRAPH HAS TWO COMPONENTS IN IT.

ONE, THE SOLID THE SOLID BARS WILL SHOW WHAT ARE THE TOTAL COLLECTIONS YEAR AFTER YEAR THAT YAVAPAI COUNTY HAS RECEIVED.

AND THIS IS THE TPT SHARE, AND TPT MEANS THE THIS WILL BE DRIVEN NOT JUST BY WHAT HAPPENS IN YAVAPAI COUNTY, BUT THIS IS REALLY STATEWIDE. AND SO STATEWIDE SPENDING ON THE DIFFERENT CLASSIFICATIONS.

BECAUSE MIND YOU, NOT EVERYTHING WE THAT THAT WE THAT WE BUY IS TAXED.

BUT BASED ON THOSE CLASSIFICATIONS, THIS IS THE PROPORTION THAT COMES TO YAVAPAI COUNTY.

SO THIS IS A GOOD INDICATOR OF THE STATE'S HEALTH MORE SO THAN YAVAPAI COUNTY WE'LL TALK ABOUT THAT WHEN WE TALK ABOUT EXCISE.

AND SO YOU'LL SEE IT'S STEADILY INCREASED. AND THE YELLOW LINE IS WHAT I FOCUS ON, BECAUSE THE YELLOW LINE WILL START SHOWING BACK IN 2017 WE'RE AT 4.3% AND EVERY YEAR AFTER THAT IT WOULD IT IT WOULD OR IT WOULD GET BETTER FOR ONE YEAR IT WENT DOWN SLIGHTLY BUT THEN WENT UP.

THIS IS COVID TIME 21.5%, 16.4%. SO THAT'S A GROWTH ON THE PREVIOUS YEAR.

SO THAT'S SIGNIFICANT GROWTH. THERE ARE SOME CHANGES MY UNDERSTANDING IN THE TPT CLASSIFICATION DURING THAT TIME.

BUT THEN IN 23 WENT TO 3.7 BUT THEN BACK UP IN 24 TO 5.2.

OUR FORECAST RIGHT NOW I'M FORECASTING A LITTLE BELOW WHAT WE'RE CURRENTLY AVERAGING, THE 1.8% GROWTH.

AND I'M LOOKING PRELIMINARY RIGHT NOW AT 2% GROWTH.

SO IT STILL SHOW HEALTHY GROWTH, BUT NOWHERE NEAR WHAT WE'VE EXPERIENCED IN THE LAST COUPLE OF YEARS.

AND SO WITH THAT THAT'S LESS OF A PICKUP YEAR OVER YEAR.

SO IT'S JUST SOMETHING TO MENTION THOUGH IT IS STILL IN THE POSITIVE TERRAIN AND IT STILL IS GOING UP.

WE'RE NOT RECEIVING AS MUCH AS WE HAVE PREVIOUSLY FROM THIS AREA.

AND ONCE AGAIN, IF OUR IF OUR DEMANDS AND OUR EXPENDITURES ARE MORE THAN THIS, THEN THE QUESTION IS WHERE DO WE MAKE THAT UP THROUGH.

AND SO THAT'S SOMETHING THAT WE CONTINUOUSLY WATCH.

STATE SHARE SALES TAX, THE TPT IS 32% OF THE GENERAL FUND, SO NEARLY A THIRD OF THE TPT WILL BE OUR IS CURRENTLY OUR GENERAL FUND TOTAL REVENUE. WE BRING IN THE NEXT COMPONENT, THIS IS EXCISE SALES TAX.

SO THIS IS SOLELY WHAT IS PURCHASED IN YAVAPAI COUNTY.

[00:50:01]

THE GENERAL FUND RECEIVES 40% OF THAT AND THEN CAPITAL PROJECTS 15%.

AND THEN THE QUARTER CENT SALES CENT FOR THE JAIL TAX.

SO THOSE VALUES ARE THE THE EXACT SAME TAXES APPLY TO BOTH.

SO THE THE JAIL TAX IS HALF OF WHAT WE RECEIVE IN THE HALF CENT SALES TAX.

ON THE THE HALF CENT SALES TAX YOU HAVE IT AT 45%.

WASN'T THAT ORIGINALLY AT 85% FOR ROADS WHEN IT WAS FIRST PROPOSED? AND YOU'RE USING IT IN THE GENERAL FUND NOW AS DISCRETIONARY I'M ASSUMING.

YEAH. I'D HAVE TO GO BACK AND LOOK AT THE INITIAL BUT YOU ARE GENERALLY CORRECT.

IT WAS MUCH HIGHER. OKAY. AND IN FY 25, AS A GROUP WE HAD BUDGETED $31.8 OR $31.8 MILLION. CURRENTLY WE ARE NOW SHOWING ALMOST FLAT SO THAT'S 0.6, NOT 6%. WHEN WE DID THIS PRESENTATION BACK IN NOVEMBER, WE WERE AT -6%.

SO IT'S SIGNIFICANTLY INCREASED. BUT UNFORTUNATELY WE'RE STILL SHOWING SLOW GROWTH, SO FLAT GROWTH.

IT'S IT'S IT WOULD BE NICE IF IT WAS A LITTLE BIT HIGHER BECAUSE ONCE AGAIN, WE ARE THIS REPRESENTS 8% OF THE TOTAL GENERAL FUND REVENUE THAT COMES IN, AS WELL AS A SIGNIFICANT PROPORTION OF REGIONAL AS WELL AS OUR VERY HIGH PROPORTION OF OUR CAPITAL PROJECTS.

SO AS A GROUP, WE WATCH THIS CLOSELY. AND THEN SIMILARLY IT REPRESENTS CURRENTLY 46% OF THE TOTAL JAIL DISTRICT REVENUE. SO OF THE TOTAL EXPENDITURES IN THE JAIL DISTRICT, I WANT TO SAY AROUND A LITTLE OVER $32 MILLION, IT REPRESENTS LESS THAN HALF. SO AS THE JAIL DISTRICT, WE LOOK FOR IT TO BE MORE SELF-SUFFICIENT.

OVER TIME WE'D EXPECT THE GROWTH OF THIS TO HELP PAY FOR THOSE COSTS, BECAUSE ONCE AGAIN, THERE'S INFLATIONARY PRESSURES. ON THE ON THE EXPENDITURES RELATED TO THE JAIL DISTRICT AS WELL.

YES. AND, ZACH, I'D JUST LIKE TO MAKE A POINT THAT BACK, I BELIEVE, IN 2014.

I KNOW THAT YOU WERE HERE CHRIS, AT THAT TIME, WE HAD THIS ON A BALLOT.

WE TRIED TO INCREASE THIS JAIL TAX, WOULD HAVE DONE A MUCH BETTER SERVICE TO THE WHOLE AGENCY HAD THIS TAX GONE THROUGH. BUT UNFORTUNATELY IT WAS PROCESSED WITH INFORMATION THAT WASN'T ACTUALLY ACCURATE. AND SO UNFORTUNATELY THAT TAX DID NOT MAKE IT.

AND IT WAS A VERY UNFORTUNATE SITUATION BECAUSE THE JAIL TAX, YOU WOULD GET THAT FROM ALL THE PEOPLE COMING IN AND OUT OF THE COUNTY JUST TRAVELING UP HERE FOR THE DAY, WHATEVER.

YOU KNOW IT WOULD HAVE BEEN MUCH BETTER WAY FOR US TO HANDLE OUR EXPENSES.

AND ALSO IT WOULDN'T JUST BE ON THE BACK OF THE PROPERTY OWNER, YOU KNOW, IT WOULD HAVE BEEN ACROSS THE BOARD. AND SO IT IS A REALLY UNFORTUNATE SITUATION THAT THAT HAPPENED BECAUSE WE ARE STILL PAYING THE PRICE, YOU WOULD SAY, FOR THAT THAT BAD OUTCOME.

AND I DON'T KNOW IF, IF HOW THIS WOULD EVER BE REVISITED AGAIN, BUT IT WOULD BE A MUCH BETTER WAY, A MUCH BETTER WAY TO FUND THESE AGENCIES THROUGH THE JAIL TAX.

AND SO I WOULD ALWAYS ENCOURAGE PEOPLE AS WE MOVE FORWARD WITH THINGS THAT NEED TO HAPPEN IN THIS COUNTY.

I KNOW THAT WE'RE TAX IS LIKE EVIL. I GET IT, IT'S EVIL.

BUT I'LL TELL YOU RIGHT NOW, WHAT WE'RE DEALING WITH FINANCIALLY IS PRETTY EVIL TOO.

AND SO WE NEED TO THINK ABOUT OUR CHOICES BECAUSE AGAIN, WE ARE BUILDING THE FUTURE.

WE ARE LEAVING A LEGACY. AND BECAUSE OF THAT SITUATION BACK IN 2014 THAT IS COSTING US MORE MONEY TODAY THAN IT BY FAR WOULD HAVE HAD WE JUST DONE THE RIGHT THING, DONE THE RIGHT THING.

YEAH. THANK YOU FOR THAT POINT. I DO WANT TO MENTION THAT I THINK YOU MENTIONED SOMETHING THAT'S VERY IMPORTANT, THAT THANK YOU FOR THE REMINDER OF IT. THE IN EXCISE TAX WHAT IT ALLOWS FOR IS THE DIVERSIFICATION AS YOU'RE MENTIONING.

AND SO WE'RE NOT COMPLETELY DEPENDENT ON WHAT THE STATE MOVES THROUGH TO THE TPT AS WELL AS OUR PROPERTY TAXES, BECAUSE REALLY THOSE BIG THREE TPT PROPERTY TAX AND SALES AND OUR EXCISE TAX ARE THE THREE MAJOR COMPONENTS OF REPRESENTS THREE QUARTERS OF ALL THE DOLLARS THAT WE

[00:55:05]

SO THE FULLNESS OF THE TOTAL COST FOR UTILIZING THE INFRASTRUCTURE TO COME INTO TOWN ONCE YOU'RE HERE, THE SERVICES FOR PROTECTION, FOR THE TOTALITY OF SERVICES, AS WELL AS THE HIGH QUALITY OF THE VISITS AND TO LIVE HERE.

IT'S IMPORTANT IN MY OPINION, TO CONTINUE TO DIVERSIFY OUR REVENUES AS WE MOVE FORWARD IN THAT AREA.

AND THEN THE SECOND PIECE OF ALSO JUST A STUDENT OF GOVERNMENT TAXES SOMETIMES DO GET THE GET THE SIDE OF ALL TAXES ARE BAD.

BUT IN MY OPINION THE TAXES, ESPECIALLY AT LOCAL LEVEL, THEY ALLOW WITH LOCAL CONTROL THE THE BOARD AS WELL AS THE LOCAL COMMUNITY GETS TO MAKE A DETERMINATION OF THE TYPE OF SERVICES THEY WANT TO RECEIVE AND HOW THEY WANT TO DETERMINE THOSE THOSE SERVICES ARE PAID FOR IN THE IN THE JURISDICTION.

SO I WOULD MENTION THAT A CITY THAT HAS A DIVERSE TAX BASE, THAT IS IN LINE WITH WHAT THEY CAN AFFORD AND THE AMENITIES THEY'RE LOOKING FOR THEIR COMMUNITY TO PROVIDE AND THE SERVICES TO PROVIDE IS A HEALTHIER COMMUNITY VERSUS ONE THAT SAYS, LET'S KEEP NO TAXES IN PLACE BECAUSE UNFORTUNATELY, IT WILL LEAD TO DETERIORATION OF BUILDING SERVICES AND QUALITY OVERALL.

SO I LOOK, TAXES ARE TO BENEFIT ALL OF US WHEN THEY'RE DONE IN THE RIGHT WAY.

AND THAT'S WHY WE'RE LOOKED AT AS I LOOK STEWARDS, AS YOU WERE MENTIONING BEFOREHAND, OF STANDING ON THE SHOULDERS OF THE PREVIOUS GROUPS AND MOVING FORWARD TO THE FUTURE GROWTH OF YAVAPAI COUNTY.

SO OVERALL, THIS IS AN AREA WE'LL LOOK AT BECAUSE THE JAIL TAX OR THE JAIL DISTRICT OVERALL THE REVENUE RECEIVED IS IS INSUFFICIENT TO COVER THEIR COSTS. AND WE'LL TALK ACTUALLY IN ANOTHER COUPLE SLIDES OF SOME OF THE IMPLICATIONS OF THAT FOR, FOR THE COUNTY REVENUES OVERALL. AND WHEN WE PRESENT THE BUDGET IN A MONTH AND A HALF TOO, WE'LL BE LOOKING SPECIFICALLY AT THE JAIL DISTRICT AS A WHOLE.

SO ALL THE COMPONENTS THAT MAKE UP THE STAFFING THERE, AS WELL AS THE RECOMMENDATIONS FOR THIS NEXT YEAR.

YEAH. AND ZACH, I APPRECIATE THAT ALL OF WHAT YOU ARE DOING HERE.

THE ONE THING THAT I WOULD LIKE TO SAY IS THAT WHAT WE DO HERE IS THIS IS OUR HOME.

SO WE ALL GO HOME TO OUR OWN HOUSE, AND OUR OBJECTIVE IS TO PAY OUR HOUSE PAYMENT OR OUR RENT, OUR LIGHTS, OUR WATER. THESE ARE THE NECESSITIES OF KEEPING THAT HOME THAT WE HAVE THE PLEASURE OF ENJOYING EVERY DAY.

AND OUR JOB IS WHAT GIVES THAT OPTION. SO HERE WE ARE, THIS IS OUR HOME.

AND IT'S NOT AN OPTION NOT TO HAVE SAFETY. IT'S NOT AN OPTION NOT TO HAVE A CRIMINAL JUSTICE CENTER.

IT'S NOT AN OPTION NOT TO HAVE PROBATION OR COUNTY ATTORNEY'S OFFICE.

THESE ARE REQUIREMENTS. SO THESE ARE THE BASIS OF OUR YAVAPAI COUNTY HOME.

AND WE HAVE TO PAY FOR THOSE. AND WE ALSO HAVE TO MAKE SURE THAT WE HAVE THEM.

SO WE'RE TALKING ABOUT THE NEEDS, THE BASIC NEEDS OF WHAT IT TAKES TO KEEP THIS BEAUTIFUL COUNTY MOVING FORWARD.

THANK YOU. THANK YOU. AND IN ORDER TO SPEAK TO SOME OF THE THE DIFFERENTIATION BETWEEN THE TPT, WE'RE SHOWING AT 1.8% AND RIGHT NOW THE, WAS THERE ANOTHER COMMENT? OKAY. THE TPT AND THE EXCISE OR EXCISE TAXES I JUST WANTED TO SHOW THE THREE PRIMARY THEY'RE RANKED IN OR THEY'RE PLACED IN ORDER.

SO RETAIL. LET ME USE MY MOUSE. RIGHT. SORRY.

LEFT A LITTLE REMNANT OF A FRIEND HERE. RETAIL, 47% OF TOTAL EXCISE TAXES COLLECTED ARE FROM RETAIL SALES IN THE COUNTY.

ONCE AGAIN, THIS THIS IS EXCISE SO THIS IS WHAT'S HERE IN THE COUNTY. SECONDARILY IS PRIME CONTRACTING, WHICH IS 20%. AND THIRDLY, WHICH IS REALLY SHARED BETWEEN RESTAURANT AND BARS AND REMOTE RETAIL SALES.

RIGHT NOW RESTAURANT AND BARS IS A LITTLE HIGHER PERCENTAGE AT THE HIGHER 9% OF THE TWO.

BUT IF YOU LOOK AT THE THE THREE GROUPINGS TOGETHER, RETAIL OVERALL IS ONLY AT 1% GROWTH.

SO THIS IS HALF OF THE TAXES WE BRING IN. THUS, WE'RE SEEING A MORE DAMPENED EFFECT THIS THIS YEAR.

AND THIS WOULD BE YEAR OVER YEAR GROWTH, SO WE'RE LOOKING AT SO COMPARED TO LAST YEAR.

CONTRACTING AND CONTRACTING PRIME CONTRACTING IS 7.9%.

WE SEE THIS AS WELL AS IN THE NEW CONSTRUCTION VALUES FOR THE ASSESSED VALUATION FOR THIS YEAR, I BELIEVE IT WENT DOWN 8.7% YEAR OVER YEAR. SO WE'RE STILL BUILDING NEW HOMES, BUT NOT AT THE SAME PACE THAT WE WERE LAST YEAR.

AND THEN THIRDLY, THE RESTAURANT AND BARS IS AT A -0.5%.

AND SO REMOTE RETAIL SALES FORTUNATELY, IS THAT IS AT A PLUS OVER 10%.

AND THEN THE OTHER CATEGORIES ARE AT A LESSER IMPACT FOR THE COUNTY.

AND THERE'S A VARYING KIND OF POSITIVE AND NEGATIVE FLOW FROM THEM.

BUT THESE THREE RETAIL CONTRACTING OR CONTRACTING PRIME AS WELL AS RESTAURANT AND BARS ARE GOING TO BE THE THREE MAIN ARE AND REMOTE RETAIL SALES.

THOSE FOUR WILL REALLY DETERMINE THE TRAJECTORY OF OUR TOTAL EXCISE TAXES MOVING FORWARD.

[01:00:07]

CORRECT. IN THE PREPARATION STAGE. THEN IT WOULD GO INTO THE RETAIL OR DEPENDING IF IT HITS THE RESTAURANT AND BARS OR IF IT MIGHT HIT THE RETAIL SIDE.

SO. YEAH. OKAY. VICE CHAIR ANY QUESTIONS? NO.

SUPERVISOR CHECK ANY QUESTIONS? NO. NOPE. NOT AT THIS TIME.

THANKS. OKAY, SO IT'S 10:02, FIGURE WE'LL TAKE ABOUT A TEN MINUTE BREAK, AND THEN WE'LL COME BACK BECAUSE IT LOOKS LIKE OUR NEXT TOPIC COULD BE REALLY INTERESTING. WE'RE TALKING ABOUT THE REVENUE VEHICLE LICENSE TAX.

AND OF COURSE ALL OF THAT IS ABOUT ROADS. AND THE ONES WE DON'T HAVE, THE ONES WE NEED AND THE ONES WE KEEP TRYING TO BUILD.

BUT THAT'S NOT WORKING OUT WELL EITHER. ALL RIGHT.

THANK YOU. SEE YOU IN TEN MINUTES.

LICENSE TAX OR VLT. THIS HAS BEEN ONE OF OUR STRONGER AREAS. IT'S CONTINUING FORWARD AT A 3% YEAR OVER YEAR IN FY 25.

IT REPRESENTS ABOUT 7.6% OF OUR TOTAL GENERAL FUND REVENUE.

SO IT'S NOT FAR BEHIND, ACTUALLY, WHAT WE LOOK, WHAT WE RECEIVE IN EXCISE TAX.

SO IT'S KIND OF A HIDDEN REVENUE SOURCE. BUT IT'S VERY IMPORTANT WHEN PEOPLE GO OUT AND BUY NEW VEHICLES, IT GOES UP MORE QUICKLY. IF YOU OWN A VEHICLE, YOU'RE STILL PAYING ON IT.

SO THOSE ARE SOME. SO THE SO THE TWO MAJOR DRIVERS ARE THE NUMBER OF PEOPLE IN YAVAPAI COUNTY THAT ARE DRIVING VEHICLES.

AS THOSE INCREASE, THE DOLLARS COME IN, OUR DOLLARS WE RECEIVE INCREASE AS WELL AS WHEN PEOPLE BUY NEW CARS.

SO FEEL FREE TO HELP THE COUNTY BY BUYING A NEW CAR SOMETIME SOON.

AND THEN THE OTHER SIDE OF IT IS THE HURF. SO WITHOUT GETTING INTO THE COMPLICATIONS OF THE HURF REVENUE FORMULA IT STARTS AT THE STATE AND THEN IT FLOWS DOWN THROUGH OUR GAS TAX. FOR THE MOST PART, PEOPLE KNOW HURF. WE GET $4.4 MILLION SO SIMILARLY, A HEALTHY PART THAT HELPS THE COUNTY IN, IN GENERAL SERVICES. AND WE'RE EXPECTING BOTH OF THEM TOGETHER TO BE ABOUT A 3% GROWTH RATE THIS NEXT YEAR.

IS THE STATE STAYING AWAY FROM SWEEPING THAT MORE? DON'T SAY THAT. OKAY. THERE HAVE THERE THERE HASN'T BEEN ANY MENTIONING OF IT.

AND, AND AS ALLUDED TO PREVIOUSLY, GIVEN THE HEALTHY POSITION OF THE STATE'S REVENUES AND EXPENDITURES RIGHT NOW, BARRING SOMETHING TO COME UP TO CHANGE THAT I WOULD EXPECT THAT THERE'S NO SWEEPS BEING FORECASTED.

RIGHT NOW THAT WAS DONE A NUMBER OF YEARS BACK.

THEY SOMEWHAT MADE IT WHOLE AND THEY'VE STAYED AWAY FROM THAT.

SO HOPEFULLY THEY DO NOT RETURN TO THE, USING HURF AS AN OPPORTUNITY FOR THEM TO RIGHT SIZE THEIR DPS BUDGET AS THEY PREVIOUSLY DID.

YEAH. YEAH. AND THEN THIS IS HURF OVERALL. SO EVEN THOUGH THIS MONEY COMES INTO THE HIGHWAYS USER REVENUE FUND. THIS IS NOT PART OF THIS PORTION IS NOT PART OF THE GENERAL FUND.

THIS WILL GO DIRECTLY TO WHAT WE LOOK AT ON THE ROAD SIDE.

I THOUGHT IT WAS IMPORTANT TO BRING UP BEING AS AS CHAIRWOMAN MALLORY MENTIONED THE ROADS, CONSTRUCTION FOR THE COUNTY. AND SO THIS THOUGH WE ARE EXPECTING GROWTH, IT'S NOT EXPLOSIVE GROWTH.

SO IT'S ONE OF THE CHALLENGES THAT PUBLIC WORKS LOOKS AT, OF HOW TO BALANCE THEIR ASSORTMENT OF PROJECTS TO DETERMINE HOW MANY THEY'RE GOING TO WORK ON, ON THE MAINTENANCE EFFORTS, THE EXPANSION EFFORTS IN A GROWING COUNTY.

AND DO, DOES THE STATE LOOK AT OUR GAS TAX REVENUE AND SEND THAT BACK? OR IS IT A FORMULA TO GET A PIECE OF THE PIE? IT'S DEFINITELY A FORMULA FOR THE PIECE OF THE PIE.

IT'S A I SHOULD INCLUDE IT. ONE OF THE SLIDES, IT'S A PRETTY COMPLEX FORMULA THAT THEY UTILIZE COMING FROM THE TOP.

AND AS IT ROLLS THROUGH IT'S PRIMARILY FOR THE GAS TAX.

AND SO WHEN YOU GO AND YOU PUT GASOLINE IN YOUR PUMP A PORTION OF THAT IS THEN COMING INTO HURF AND IT'S, IT'S SOMEWHAT A CONVOLUTED FORMULA TO FULLY UNDERSTAND IT, BUT THE GROWTH RATE ROGER WOULD KNOW THE NUMBERS OFF THE TOP OF HIS HEAD ON THE LAST TIME THAT THE THAT THE GAS TAX HAS CHANGED, BUT IT HAS BEEN A WHILE SINCE THAT SINCE THOSE NUMBERS HAVE CHANGED.

SO THAT'S BEEN ONE OF THE CHALLENGES IN HURF IS JUST THE SLOW GROWTH IN THE, IN THE GAS TAX IN ARIZONA OVERALL.

SO BECAUSE ASH FORK JUST GOT A GIANT TA TRUCK STOP, SO THAT WON'T NECESSARILY HELP US ANY.

CORRECT. OKAY. YEAH, THAT'S MY UNDERSTANDING THAT IT'S NOT IT'S IT'S NOT DIRECTLY FOR THE INDIVIDUAL CITIES,

[01:05:06]

THANK YOU. YEAH. I THINK THAT TAX AND OF COURSE EITHER THE VICE CHAIR OR SUPERVISOR KUKNYO ANYONE COULD HELP ME OUT, BUT I BELIEVE IT WAS IN 1990, MAYBE 1991, WAS THAT IS IT LATER THAN THAT WHEN WE RAISED THIS OR EVEN LOOKED AT IT? I WAS THINKING 93, BUT THAT MAY NOT BE RIGHT.

I THINK IT'S 91. THAT SOUNDS RIGHT TO ME. ROGER SAYS 93 TOO SO 93, 94, 93.

OKAY. WELL, THAT WAS A LONG TIME AGO, JUST SAYING.

ALL RIGHT. THANKS. THANK YOU, ROGER AND COMPANY.

WELL, AND TO PUT THAT INTO PERSPECTIVE, AND I THINK WHEN WE WENT TO SOME OF OUR CONFERENCES, THEY HAD A CHART UP THERE, AND A DOLLAR FROM BACK THEN IS WORTH $0.50 TODAY, AND ROAD CONSTRUCTION COSTS HAVE GONE UP 288%, WHICH SHOWS YOU WHY OUR ROADS ARE IN THE CONDITION THEY ARE TODAY.

EIGHT OUTS BROKE. SO NEXT WE HAVE PROPERTY TAXES.

AND SO SIMILARLY THE SOLID, THE SOLID BLUE LINES WILL SHOW THE AMOUNT OF RECEIPTS THAT YAVAPAI COUNTY HAS RECEDED SINCE THIS GOES BACK TO 2015. THE GREEN WILL SHOW THE AMOUNT THAT ACTUALLY THE SOLID GREEN WILL SHOW THE EXACT SAME AMOUNT FOR 2025, BECAUSE WE DON'T KNOW YET WHAT THAT ADOPTED TAX RATE IS GOING TO BE.

AND BASED UPON NET NET ASSESSED VALUATION SO PROPERTY TAXES ARE A BASIS OF TOTAL NET ASSESSED VALUATIONS FOR THE COUNTY MULTIPLIED AGAINST THE PROPERTY TAX RATE. AND SO AT THE IF WE WERE TO ADOPT A RATE THAT WAS THE EXACT SAME RATE THE 1.

I THINK IT'S 643 RATE. THAT WOULD BRING IN $3.6 MILLION IF IF WE ADOPTED THE TNT RATE, GET TO THAT SLIDE, IT WOULD BE $2.2 MILLION LOWER, WHICH WOULD BE $1.5 MILLION.

AND WHAT THE DIFFERENTIAL GETS INTO THE TNT I'LL BREAK IT UP A LITTLE BIT.

SO IT'S NOT JUST INSIDE BASEBALL ON WHAT TNT IS TRUTH IN TAXATION.

AND SO THE TRUTH IN TAXATION MEANS THAT IT LOOKS AT LAST YEAR'S RECEIPTS AND THEN IT SAYS WHAT YOU COLLECTED LAST YEAR WAS X.

LET'S LOOK AT YOUR NEW CONSTRUCTION ADD THAT TO IT.

AND THEY ESTABLISH A TAX RATE CALLED THE TRUTH IN TAXATION TAX RATE.

AND IF YOU WERE TO ADOPT THAT TAX RATE, IT'S CONSIDERED THAT YOU'RE NOT INCREASING THE TAXES, THE TAXES YOU'RE COLLECTING YEAR OVER YEAR. AND YAVAPAI COUNTY HAS HISTORICALLY ADOPTED THEIR TAX RATE AT THE TNT LEVEL.

IN THE NEXT SLIDE, I'LL SHOW YOU THE HISTORY OF THAT, AND IT'LL BE YAVAPAI COUNTY AND LOOKING AT OTHER TAX OR OTHER COUNTIES AS WELL, TO UNDERSTAND HOW THEY'VE ADOPTED DIFFERENT DIFFERENTIAL TAX RATES.

AND SO PART OF THAT HAS BEEN A GROWTH RATE OF ABOUT IN 2016, 1.4% INCREASE.

AND GOING ALL THE WAY UP IN 2025 OF ABOUT 2.6 AND SO IT'S NOT A LARGE PICKUP.

MIND YOU, THE TNT TAX RATE GOES UP JUST AT THE RATE OF NEW CONSTRUCTION.

SO WHATEVER THE NEW CONSTRUCTION IS IN YOUR COMMUNITY, THAT'S REALLY WHAT WILL INCREASE IT UNLESS YOU ADOPT YOUR TAX RATE ABOVE THAT.

NOW MIND YOU, ARIZONA HAS A CAP AND SO OUR CAP IS AT 5%.

AND SO THAT MEANS THAT THE ASSESSOR'S OFFICE CANNOT ASSESS PROPERTIES MORE THAN A 5% GROWTH RATE YEAR OVER YEAR, THAT'S STATUTORILY SET. BUT IF WE WERE TO CAPTURE THAT, THAT'S WHERE WE WOULD THAT WOULD BE ABOVE THE TNT RATE.

SO IF WE DON'T IF WE STAY JUST AT TNT, WHAT WE'RE SAYING IS THAT PROPERTY VALUES INCREASED BY UP TO 5%.

WE ARE NOT RECAPTURING ANY OF THAT VALUE. WE'RE SAYING YOUR PROPERTY TAX RATE, YOU'RE BEING TAXED OVERALL AT ALMOST THE EXACT SAME AMOUNT AS LAST YEAR.

AND MIND YOU, WE'RE THINKING AS A WHOLE HERE. SO WE DON'T SAY ONE BY ONE BY ONE.

WE ADOPT THE TAX RATE OVERALL. SO SOMEONE'S TAXES MIGHT GO UP A COUPLE BUCKS, SOMEONE ELSE'S MIGHT GO DOWN A COUPLE DOLLARS.

BUT IN THE WHOLE IT'S FLAT ACCOUNTING FOR NEW CONSTRUCTION.

ONE THING THAT WOULD BE NICE TO SEE ON THIS GRAPH IS A DIFFERENT COLOR FOR NEW CONSTRUCTION, AND WHAT THAT DOLLAR AMOUNT IS, BECAUSE IT ADDS ON TO TO WHERE WE'RE GOING.

AND ALSO THE REAL ESTATE MARKET AND VALUES HAVE BEEN FLAT LATELY AND THEY'RE ACTUALLY STARTING TO DECREASE.

SO I MEAN, WE COULD MAYBE SEE THAT HAPPEN AGAIN WHERE IT STARTS GOING DOWN.

BECAUSE I THINK WHEN THE PUBLIC SEES THAT, THEY SAY, YOU KNOW WHAT? YOU CAN'T RAISE MY PROPERTY VALUE UP. IT'S ACTUALLY SINKING.

AND THEY'RE CORRECT ON THAT. SO WE HAVEN'T SEEN THAT IN A WHILE SINCE 2008, SOMETHING LIKE THAT.

YEAH, IT WOULD BE $1.4 MILLION OF THE OF NEW CONSTRUCTION.

AND SO THAT WOULD BE THE THAT'S THE AMOUNT THAT'S ATTRIBUTED TO NEW CONSTRUCTION IN YAVAPAI COUNTY.

IT WAS A SLIGHT DECREASE FROM LAST YEAR OF ABOUT 8.7%.

[01:10:05]

SO THAT WOULD BE IF WE ADOPTED IT AT A TNT RATE, THAT WOULD BE $1.5 OR $4 MILLION HIGHER.

THIS SHOWS THE UPPER LIMITS OF WHAT WOULD IT BE IF IT WAS A FLAT TAX RATE.

SO AND THEN THE NEXT SLIDE WILL SHOW, SO WHAT THIS SHOWS HERE IS THIS WILL SHOW ALL THE COUNTIES IN IN ALPHABETICAL ORDER IN ARIZONA. IT WILL SHOW FISCAL YEAR STARTING IN 2021.

AND THEN IT SHOWS THE DIFFERENTIAL BETWEEN WHAT THEY ADOPT WHERE THEY ADOPTED THEIR RATE COMPARED TO THE TNT RATE.

SO IF THEY ADOPTED THEIR RATE ABOVE THE TRUTH AND TAXATION RATE, IT WOULD BE GREEN WITH THE BOLDED GREEN TEXT.

IF THEY DROPPED IT A RATE BELOW THE TNT TAXATION RATE, IT WOULD BE RED WITH THE BOLDED RED TEXT, AND IF THEY ADOPTED A RATE EQUAL TO TNT, IT WOULD BE A LINE INDICATING ZERO, MEANING NO CHANGE.

IT'D BE EXACTLY AT THE TNT RATE. SO YOU'LL SEE GREENLEE AS WELL AS YAVAPAI COUNTY, I HIGHLIGHTED THEM IN LIGHT BLUE.

THE LIGHT BLUE ISN'T SHOWING SO WELL HERE, I APOLOGIZE FOR THAT. HAVE BOTH UTILIZED THAT STRATEGY SINCE 2021 TO ADOPT AT&T RATE.

SO WHAT THAT MEANS IS THERE WAS NO INCREASE IN PROPERTY TAXES BEYOND WHAT NEW CONSTRUCTION WAS THERE FOR BOTH, ONCE AGAIN, BOTH GREENLEE AND YAVAPAI COUNTY. MOST OF THE COUNTIES DURING THIS TIME PERIOD DID ADOPT TAX RATES ABOVE THE TNT RATE.

AND PART OF THE PART OF WHAT THAT DOES FOR THE COUNTY IS WHEN THOSE DOLLARS ARE CAPTURED, THE RATE LOOKBACK PERIOD IS ONE YEAR.

SO THEY WOULD GET THEY WOULD HAVE AN INCREASE THAT YEAR PLUS THE THE FOLLOWING YEAR AS WELL, BECAUSE THEY HAVE A NEW A NEW BASE THAT THEY WOULD BASE IT ON THE FOLLOWING YEAR.

SO A COUPLE OF COUNTIES SUCH AS NAVAJO DID IT LATER IN THE CYCLE.

A COUPLE OF THE OTHER ONES, LIKE SANTA CRUZ, STARTED A LITTLE EARLIER.

THE ONLY ONES THAT DIDN'T, ONCE AGAIN, IS GREENLEE COUNTY.

LA PAZ DID HAVE A PICKUP IN 2024, AND THEN MARICOPA COUNTY, WHICH IS SOMEWHAT OF AN ANOMALY JUST GIVEN THEIR THE SIZE OF MARICOPA COUNTY, WE USUALLY LOOK AT THEM SEPARATELY OR EXCLUDE THEM THERE AND THERE AS WELL.

BUT JUST WANTED TO BRING THAT OUT THAT DUE TO THAT, THAT'S THE REASON WE SEE ALSO THE THE MUTED GROWTH IN PROPERTY TAX DOLLARS COMING IN AND THIS IS 39% OF THE GENERAL FUND SO IT'S ONE OF THE AREAS THAT WE'RE WE'RE LOOKING AT YEAR OVER YEAR.

ESPECIALLY SINCE THIS IS THE AREA THAT THE BOARD HAS SOME, CAN MAKE SOME DETERMINATION ON WHERE THEY WOULD LIKE THE PROPERTY TAX RATE PLACE THAT FOR THIS NEXT YEAR. ANY QUESTIONS ABOUT PROPERTY TAXES? I WENT I DELVED A LITTLE BIT INTO THE TNT FOR THE AVERAGE MEMBER OF THE PUBLIC.

TNT IS NOT SOMETHING I EXPECT YOU TO WAKE UP IN THE MORNING AND HAVE FOR BREAKFAST.

SO I WANTED TO MAKE SURE TO EXPLAIN THAT. OKAY.

WELL, LET'S MOVE FORWARD TO THE COUNTY RESERVE POLICY. SO WE DISCUSSED THIS A COUPLE OF TIMES TODAY.

THE IMPORTANCE OF RESERVE. JUST LIKE OUR HOME BUDGETS RESERVES ARE IMPORTANT.

IF ANY SHOCKS TO THE ECONOMY MOVE FORWARD, IF ANY SLOWDOWN IN SALES TAX COME UP AS WELL AS ANY NEW OPPORTUNITIES, THAT'S ONE OF THE THINGS THAT WE LOOK AT TOO AS A COUNTY. WE DON'T ALWAYS WANT TO BE ON THE DEFENSIVE, BUT SOMETIMES THERE ARE SOME GROWTH OPPORTUNITIES AND OR RESPONDING TO TIMELY OPPORTUNITIES OF THE COUNTY. AND SO BECAUSE OF THAT, THE COUNTY HAS ADOPTED A RESERVE POLICY THAT AT A MINIMUM, WE WE HAVE 17% TO A MAXIMUM 25% SET ASIDE OF THE GENERAL FUND BUDGETED REVENUE.

SO WE LOOK AT TOTAL REVENUES THAT WE ADOPT FOR OUR OPERATING REVENUES AND SET THAT ASIDE FOR THAT RAINY DAY SCENARIO, ANY, ANY APPLICABLE USE FOR THE GENERAL FUND.

AND SO WE HAVE $36 MILLION SET ASIDE IN THIS YEAR'S BUDGET IN FY 25 AT THE UPPER LIMITS OF THAT, SO THAT THE COUNTY IS HAS A VERY HEALTHY CAPITAL RESERVE POSITION.

IN ADDITION TO THAT, WE HAVE AN UNDESIGNATED GENERAL RESERVE OF $82 MILLION.

WHAT THAT MEANS IS IN THE YEARS, ESPECIALLY WHERE THE EXPENDITURE LIMITS WERE THERE AND WE COULDN'T SPEND AS MUCH AND YEARS AND WHERE WE, WE CAPTURED MORE REVENUE THAN EXPENDITURES, THAT FUND BALANCE HAS BUILT UP.

AND SO WE CURRENTLY HAVE $82 MILLION OF UNDESIGNATED GENERAL FUND RESERVE THAT CAN BE USED FOR UNDESIGNATED PURPOSE ACROSS THE COUNTY.

WE'LL BE DISCUSSING A LITTLE SLIDES A LITTLE BIT LATER OF HOW WE HAVE THAT BUDGETED FOR USE THIS YEAR AND HOW WE EXPECT TO UTILIZE THIS MOVING FORWARD.

AND THEN THIRDLY, JUST A REMINDER AND THE BOARD IS VERY AWARE OF OUR CONTINGENCY.

SO WE BUDGET $4 MILLION OF GENERAL FUND CONTINGENCIES THIS YEAR.

A GOOD AMOUNT OF THAT WAS SPENT, FOR EXAMPLE, IN THE VEHICLES OF THE PENT UP THE CHALLENGES WITH GETTING VEHICLES ON TIME.

WE'RE BACKLOGGED. SO THE $2 MILLION THAT WAS MENTIONED BY SUPERVISOR SUPERVISOR KUKNYO RECENTLY WE SPENT OUT OF CONTINGENCY THIS YEAR IN ORDER TO MOVE FORWARD THAT PURCHASE

[01:15:03]

AND WHERE IS THIS $118 MILLION SITTING? IS IT SITTING ANYWHERE THAT IT MAKES US MONEY WHILE IT'S SITTING THERE? CORRECT. THE MONEY DOES SIT WITH THE TREASURER.

SO THE TREASURER IS THE ONE WHO DOES THE INVESTMENTS FOR ALL THE DOLLARS THAT ARE KEPT IN THE BANK ACCOUNT FOR THE COUNTY.

AND DUE TO THE AMOUNT OF RESERVES WE DO HAVE AND ALSO THE RETURNS THAT WE RECEIVED, WE RECEIVED ABOVE EXPECTED INTEREST THIS YEAR AS WELL AS MENTIONED WITH ARPA AS WELL.

SO THIS IS THIS IS SEPARATE FROM, FROM THE ARPA DOLLARS THAT WE, THAT WE'VE BEEN HOLDING ON TO AS WELL FOR THE LAST COUPLE OF YEARS.

CORRECT. BECAUSE EVEN AT 10%, I MEAN, THAT'S $10.8 MILLION BUCKS .

[INAUDIBLE] CORRECT? WE'D HAVE TO I KNOW OUR I KNOW OUR RETURNS ARE NOT THAT HIGH, WHICH WOULD BE NICE IF THEY WERE 10%, BUT I BELIEVE THEY'RE CLOSER TO THE 5% RANGE OF STILL.

YEAH, YEAH. THANK YOU. CORRECT. YEAH. GO TO VEGAS, IT CAN BE HIGHER [LAUGHTER].

WE DON'T HAVE THAT STRATEGY EMPLOYED RIGHT NOW HOWEVER, WE WILL TAKE IT UNDER STRONG OR WE WE'LL TAKE IT UNDER CONSIDERATION.

YES. WELL, THAT'LL BE LONG AFTER I'M NOT HERE.

YEAH. [LAUGHTER] YEAH. WE'LL LET CLARK COUNTY KNOW THAT THEY MIGHT WANT TO CONSIDER THIS AND SO AND MOVING FORWARD TO THE BUDGET THIS YEAR. SO WHEN THE BUDGET WAS BUILT IN FY 25, THERE WAS A THERE WAS A RECOGNITION SO WE HAVE A KIND OF A COUPLE OF THINGS COMING TOGETHER. AND THIS IS THE REASON WHY IT'S IT'S GREAT THAT WE DO HAVE SUCH A STRONG FISCAL POSITION.

SO COMING UP TO 25 PREVIOUSLY WE'D HAVE STRONGER REVENUE POSITIONS.

INFLATION WASN'T WHERE IT WAS AT. AND SO WE HAVE A COUPLE CONVERGING FACTORS COMING IN OF THE REVENUE THAT WE TALKED ABOUT JUST PREVIOUSLY.

INFLATIONARY PRESSURES OVERALL IN THE BUDGET.

IN PREVIOUS YEARS, THE LAST TWO YEARS, THERE'S BEEN SIGNIFICANT INVESTMENTS AS WELL IN STAFF THAT THERE HAD BEEN LIMIT THERE HAD BEEN MORE LIMITED APPROACHES TO THE COMPENSATION STRUCTURE AT YAVAPAI COUNTY THAT HAD BEEN PENT UP.

AND SO THAT HAD BEEN INCREASED OVER THESE LAST COUPLE OF YEARS, WHICH ALSO WHICH ALSO CHANGED SOMETHING THAT YAVAPAI COUNTY PREVIOUSLY HAD IS REALLY LOW VACANCY RATES. SO THERE WAS CHALLENGES FILLING POSITIONS.

THE VACANCY RATES ARE MUCH HIGHER. SO WE WOULD ACTUALLY RECEIVE WE WOULD RECEIVE MORE MONEY COMING IN AT THE END OF THE YEAR BECAUSE WE WOULD BUDGET, SAY, FOR $100 MILLION POSITIONS. WE WOULD HAVE SAY $85 MILLION FILLED $ 15 MILLION WILL HIT THE BOTTOM LINE.

SO WITH THOSE YEARS THAT WE HAD HIGHER VACANCY RATES OUR NET POSITION AT THE END OF YEAR BUILT THIS LARGER FUND BALANCE.

WITH THE STAFF INVESTMENTS THAT HAS ACTUALLY SLOWED DOWN.

SO THAT'S A GOOD THING. WE'RE SEEING THE BENEFITS OF THE COMPENSATION PACKAGE MOVING FORWARD.

AND THE OTHER PIECE THAT WE'VE WE'VE HAD OVER THE LAST COUPLE OF YEARS IS AFTER THE JAIL WAS WAS FULLY OPERATIONAL, WE HAVE A JAIL THAT IN FY 25 OR THE JAIL DISTRICT OVERALL HAS A COST OF AROUND $32 MILLION.

BUT AS PREVIOUSLY MENTIONED, THE REVENUE ASSIGNED TO IT, THE EXCISE TAX COVERS ABOUT 47%.

AND SO THE BACKSTOP FOR THE DIFFERENTIAL THERE IS THE GENERAL FUND.

THE GENERAL FUND PAYS FOR STATUTORILY THERE'S A MAINTENANCE OF EFFORT THAT'S PAID.

THAT WAS IS PART OF THE REQUIREMENT OF THE GENERAL FUND PAYING A PORTION OF OF THE JAIL TAX COSTS.

BUT IN ADDITION TO THAT, THERE'S TWO MAJOR COMPONENTS, ONE ABOVE MAINTENANCE OF EFFORT PAYMENTS.

IT'S AROUND $5 MILLION A YEAR. AND THEN THE OTHER ONE IS THE IS THE JAIL TAX DEBT SERVICE RATE THAT WE PAY AS WELL AND THAT'S ABOUT $4.3 MILLION. SO THE TWO OF THOSE TOGETHER ADD ABOUT $9 MILLION $9 MILLION OF ADDITIONAL COSTS THAT THE GENERAL FUND IS PAYING IN ORDER TO MAKE SURE THAT THE JAIL DISTRICT HAS ENOUGH FUNDING TO COVER THE TOTAL EXPENDITURES THEY HAVE THERE.

AND SO WITH THAT, THE FY 25 BUDGET WAS BUILT WITH WITH IT WAS BUILT IN A POSITION IN WHICH $21 MILLION WOULD BE SPENT OUT OF THAT GENERAL FUND BALANCE.

MIND YOU, IN 24 IT WAS A SIMILAR POSITION, HIGHER RATE.

SO THE THE BRACKETS MEAN NEGATIVE. AND THIS ACTUALLY DIDN'T COME IN NEGATIVE AT ALL IT ACTUALLY CAME POSITIVE BY $3 MILLION.

YEAH. AND SO BUT THE YEARS IN WHICH WE WOULD HAVE BUDGETS THAT ARE, SAY, UN-STRUCTURALLY BALANCED, SHOWING MORE EXPENDITURES THAN REVENUE. AS I MENTIONED PREVIOUSLY, WE'RE OFFSET BY SOME OF THESE OTHER FACTORS THAT ARE CONVERGING THIS YEAR.

AND SO WITH THIS, AS WE'RE MOVING FORWARD WITH THE BUDGET, WE WOULD EXPECT THAT IT NOT TO BE $21 MILLION.

WE HAVE SOME ARPA PICK UP AS WELL. AND SO WE'RE LOOKING FOR THIS TO BE CLOSER TO $15 MILLION.

BUT THAT WOULD MEAN ABOUT A DRAWDOWN OF $15 MILLION FOR THIS YEAR.

AND THEN GOING INTO THE FUTURE. ONE OF THE THINGS THAT WE'RE LOOKING AT IS HOW DO WE HOW DO WE MOVE OFF OF THAT SO THAT WE ARE NOT WE ARE NOT DEPENDENT UPON

[01:20:07]

SO WE HAVE A COUPLE STRATEGIES WE'LL BE MOVING FORWARD WHEN WE TALK ABOUT THE BUDGET TO MOVE IT CLOSER TO AROUND $12 MILLION NEXT YEAR, AND THEN WITH THE EXPECTATION OF THE FOLLOWING YEAR, TO TO DEPEND ON THE RESERVES EVEN LESS HAND LESS SO.

AND WHY THIS IS IMPORTANT AS WELL IS BECAUSE WE START LOOKING AT CAPITAL PLANNING, THE DOLLARS THAT ARE IN RESERVE.

THE QUESTION BECOMES OF HOW DO WE WANT TO UTILIZE THOSE OVER MULTIPLE YEARS FOR EXPANSION, EXPANDING OUR FACILITIES THAT WE STARTED THE CONVERSATIONS FOR, BUT ACTUALLY PUTTING TOGETHER THE REVENUE OR THE SPENDING PLAN OF WHAT THAT LOOKS LIKE OVER MULTIPLE YEARS. AND THE OTHER PORTION WE'VE TALKED ABOUT EARLIER TODAY IS, IS THE OPERATIONAL SIDE OF KNOWING WHEN WE BUILD NEW BUILDINGS AND NEW FACILITIES, WE'LL NEED NEW OPERATING CAPACITY TO PAY FOR THOSE.

AND SO WE JUST WANTED TO BRING FORWARD TO THE BOARD THE EXPECTATION AS WE'RE MOVING FORWARD WITH THIS IS THIS IS AN AREA THAT WE, THAT WE WANT ON A YEAR OVER YEAR BASIS TO CONTINUE TO TO GET THAT NUMBER TO BE SMALLER.

BUT GIVEN THE RESERVE POSITION, THIS HAS ALLOWED US TO CONTINUE TO MOVE FORWARD WITH INVESTMENTS IN THE COUNTY WHILE REVENUES HAVE BEEN DECREASING AND WE'VE MADE INCREASED INVESTMENTS IN STAFF AND THE ORGANIZATION DURING THAT TIME.

SO YOU'RE LOOKING TO ACCOMPLISH THIS IN THREE YEARS? YES. OKAY. YEAH.

YEAH.

MIC] TEST.

YEP. GOOD.

HELLO? SUPERVISOR CHECK, CAN YOU HEAR US? I CAN AGAIN, THANK YOU FOR FIXING THAT.

THERE WE GO. YEAH. THANK YOU. SO IF I CAN REMEMBER MY THOUGHT NOW, I WAS I THINK I WAS [INAUDIBLE] WELL I WAS GOING BACK TO ADDRESS SOMETHING THE CHAIR HAD SAID ABOUT CHANGE. THIS IS ANOTHER ONE OF THOSE CHANGES AS THE ORGANIZATION MATURES AND BEGINS TO, WITH THE BOARD'S GUIDANCE, TALK ABOUT LONG RANGE PLANNING FOR THE THE COUNTY HERE.

IT APPEARS THAT HOW WE HAVE APPROACHED THE BUDGET HAS REALLY BEEN A YEAR TO YEAR ANALYSIS OF WHERE WE'RE GOING.

WHAT WE'RE SUGGESTING HERE IS WE NEED TO MOVE BEYOND THAT TO LOOK AT THE BUDGET IN A MULTIYEAR STRATEGY TO ENSURE THAT WE HAVE A STRUCTURALLY ALIGNED BUDGET, MEANING THAT WE ARE PAYING FOR ONGOING COSTS OR ONGOING COSTS WITH ONGOING REVENUE AND NOT RELYING ON ONE TIME FUNDS.

FORTUNATELY, AS ZACH HAS POINTED OUT, IT'S WORKED FOR US SO FAR.

BUT BACK TO ONE OF THOSE EARLIER SLIDES WE GOT SOME FACTORS THAT ARE CHANGING.

IT'S NOT GOING TO CONTINUE TO WORK FOR US SO WE'VE GOT TO CHANGE OUR APPROACH AND STRATEGY HERE.

AND THE NEXT ITEM, WHICH WE'VE KIND OF WOVEN INTO THE CONVERSATION A LITTLE BIT, IS THIS IDEA OF COMMUNITY COMMUNITY ENGAGEMENT.

I'LL JUST MENTION BRIEFLY KIND OF THE INTRODUCTION INTO THE SECTION AND THEN PASS IT OVER TO COUNTY MANAGER THOMPSON TO SPEAK TO THIS.

BUT COMMUNITY ENGAGEMENT IS ONE OF THE AREAS WE FIND EXTREMELY IMPORTANT AS WE GROW OUR BUDGETING STRATEGY SO THAT IN ADDITION TO THE TOUCH POINTS THAT THE SUPERVISORS HAVE WITH THE COMMUNITY, WE CAN CONTINUE TO TOUCH A BROADER SWATH OF INDIVIDUALS IN THE COMMUNITY, AS WELL AS BRINGING THE CONVERSATION THAT DEPARTMENTS ARE FINDING WITH THEIR INDIVIDUAL TOUCH POINTS.

AND SO THIS WAS A COMMUNITY ENGAGEMENT SURVEY THAT WAS DONE BY A COMPANY THAT WE PARTNERED WITH, ZEN CITY THAT PUT OUT A COMMUNITY SURVEY OF 821 SURVEYED RESIDENTS IN WHICH 60%, 66% RATED THE COUNTY AS THEY WERE SATISFIED WITH THE OVERALL QUALITY OF LIFE IN THE COUNTY.

AND THEN ON YOUR RIGHT HAND SIDE, YOU'LL SEE THE DIFFERENT DEPARTMENTS IN THERE AND RATING OF THEIR SATISFACTION SCORE.

I FIND IT INTERESTING THAT LOOKS LIKE THE LIBRARY SYSTEM IS DOING PRETTY WELL ACCORDING TO THIS CHART.

PEOPLE ARE PRETTY HAPPY ABOUT THE WAY THE LIBRARIES ARE MOVING.

[01:25:08]

BUT AS ZACK POINTED OUT, THE ORGANIZATION, THE BOARD HAS MADE SIGNIFICANT CONTRIBUTIONS EFFORTS IN ADDRESSING OUR COMPENSATION, OUR TOTAL COMPENSATION PACKAGE HERE YAVAPAI COUNTY OVER THE LAST SEVERAL YEARS NOW.

AND AS WE'RE SEEING WE'RE SEEING THE POSITIVE BENEFITS OF THAT.

BUT WE ALSO KNOW IN ORDER TO BE AN EMPLOYER OF CHOICE, YOU HAVE TO ADDRESS MORE THAN THE COMPENSATION.

YOU HAVE TO HAVE A PLACE WHERE PEOPLE REALLY WANT TO BE, WHERE THEY WANT TO CONTRIBUTE.

AND THAT'S PART OF THE WORK THAT WE'VE BEEN DOING OVER THE LAST COUPLE OF YEARS ON ADDRESSING THE CULTURE HERE IN THE ORGANIZATION.

SO WHICH LEADS BACK INTO MAKING SURE THAT OUR DIRECTORS, THE STAFF OF THE ORGANIZATION, HAVE MORE INPUT, MORE OF AN OPPORTUNITY TO CONTRIBUTE TO WHERE WE'RE GOING AS AN ORGANIZATION, PARTICULARLY WHEN IT COMES TO BUDGETS.

SO WE WANT TO CONTINUE TO HEAR FROM THEM AND WORK WITH THEM, AS WELL AS THE PUBLIC ON THIS PROCESS.

NEXT SLIDE. SO THIS SLIDE I BELIEVE YOU HAVE SEEN PREVIOUSLY, THIS IS JUST SHOWING WHAT WE'RE DOING WELL AND HOW WE'RE DOING WELL AS AN ORGANIZATION AND WHERE WHAT AREAS AND WHERE WE'VE GOT OPPORTUNITIES FOR IMPROVEMENT.

PROBABLY THE MOST SIGNIFICANT TAKEAWAY FROM THIS SLIDE IS YOU'LL SEE SALARY AND BENEFITS.

WE GARNER SOME GOOD MARKS AS WHAT WE'RE DOING WELL, BUT ALSO WHERE WE NEED TO KEEP OUR EYE.

FOLKS, SO FOLKS SEE THAT IN BOTH DIFFERENT PLACES.

SO WE NEED TO CONTINUE OUR EFFORTS TO ADDRESS THOSE AREAS.

OKAY. EXACTLY. YEAH. BRIEFLY JUST WANTED WANTED TO GIVE THE BOARD AN OVERVIEW OF OUR BUDGET ENHANCEMENTS FOR THIS NEXT YEAR. SO BUDGET ENHANCEMENTS IS A A NEW SET OF LANGUAGE WE USED TO CALL IT LAST YEAR, THE EXHIBIT THREES. AND SO THE IDEA BEHIND IT IS REALLY FOCUSING ON THIS INNOVATION PUSH IS FOR ANYTHING NEW, HOW IS IT ENHANCING SERVICE DELIVERY? SO THE FOCUS ISN'T NECESSARILY ON THE DOLLARS OR THE DOLLARS WILL ALWAYS BE PART OF IT.

BUT REALLY DEEPER DOWN, WHY ARE WE DOING THIS IN THE FIRST PLACE? HOW WILL IT BENEFIT OUR COMMUNITY AND WHAT ARE THE EXPECTED OUTCOMES? SO WE'RE NOT JUST LOOKING AT THE THE INCREASED COST BUT THE INCREASED CHANGE.

SO IF WE IF WE INVEST IN THIS BECAUSE THIS IS AN INVESTMENT STRATEGY, WE WOULD EXPECT TO SEE A CERTAIN TYPE OF CHANGE.

IF WE DON'T SEE THAT CHANGE, IT'S AN OPPORTUNITY TO KEEP THE FOCUS ON THAT AND THAT WE CAN PIVOT, BECAUSE OUR GOAL IS TO LOOK AT THE UNDERLYING PROBLEM WE'RE TRYING TO CHANGE, NOT NECESSARILY THE DOLLARS WE'RE INVESTING INTO IT.

AND SO IT KEEPS THE FOCUS ONCE AGAIN ON THE PUBLIC, REALLY EXCITED ABOUT CONTINUING TO FOCUS ON THOSE ENHANCEMENTS AND REALLY APPRECIATE ALL THE TIME AND EFFORT FROM OUR ORGANIZATION. BECAUSE WHAT THIS MEANS IS THERE WERE 217 INDIVIDUAL REQUESTS FOR ENHANCEMENTS TO THE BUDGET THIS YEAR.

THAT IS A BIG NUMBER REPRESENTING AND THIS IS BY FUND.

SO THE GENERAL FUND IS THE LION'S SHARE OF THAT.

IT'S $13.8 MILLION ON THE RECURRING AND $21.5 MILLION ON ONE TIME.

SO THAT'S JUST THE GENERAL FUND. THE JAIL DISTRICT HAD $1.2 MILLION OR 12 REQUESTS ON THE RECURRING SIDE, 80% ON ONE TIME ASKS AND THEN ALL THE OTHER FUNDS COMBINED, IT'S MORE LIMITED OF $1.2 MILLION AND THEN $2 MILLION ON ONE TIME ASKS.

SO THE TOTAL REQUEST ACROSS ALL CATEGORIES IS $39.7 MILLION.

WE ARE NOT BRINGING IN ON THE GENERAL FUND, JUST LOOKING AT SPECIFICALLY $13 MILLION MORE.

AND SO WE ARE GOING THROUGH THOSE DILIGENTLY TO DETERMINE THE PRIORITIZATION OF WHAT WE CAN AFFORD THIS NEXT YEAR, KNOWING THAT THERE IS INCREASED DEMAND AT THE ORGANIZATION, BUT UNFORTUNATELY THE REVENUE HAS NOT KEPT UP.

THIS IS PART OF THE CONVERSATION TO CONTINUE TO HAVE WITH OUR OUR OUR DECLINING INCREASES IN IN SOME OF OUR SALES TAX REVENUES.

UNFORTUNATELY, THAT HAS DAMPENED THE GROWTH. AND SO THE REALITY IS WE WON'T BE ABLE TO, TO SOLVE ALL THESE INCREASES.

AND SO IN OUR PART OF OUR DISCUSSION OF THESE, A NEW ASPECT THAT WE DID THIS YEAR IS WE HAD A DISCUSSION A BUDGET ENGAGEMENT DISCUSSION YOU HEARD REFERRED TO OUR SUPERVISOR KUKNYO TOOK PART IN THIS AT THE PUBLIC DISCUSSION.

BUT FIRST WE, WE HAD THESE REQUESTS FOR THE GENERAL FUND DISCUSSED IN GROUPS.

SO WE IN THIS ROOM WE BROKE INDIVIDUALS INTO GROUPS OF FIVE.

THEY GOT TO SEE ALL THE REQUESTS FOR ALL THE GENERAL FUND REQUESTS ACROSS THE BOARD.

I FORGET THE ONE 8 OR 113 REQUESTS THEY SAW IN THERE.

AND IN GROUPS, THEY WERE GIVEN ABOUT, DEPENDING WHAT SCENARIOS THEY CHOOSE, THEY HAD TO CHOOSE TO WHAT SALES TAX SCENARIOS CHOOSE, THEY CHOSE WHAT PROPERTY TAX SCENARIOS THEY CHOSE AND THEY WERE GIVEN CONSTRAINTS.

[01:30:05]

IT WAS A REALLY ENLIGHTENING ACTIVITY. I'LL LET FORGET WITH ALL THE TITLES.

COUNTY MANAGER THOMPSON IS GOING TO CALL YOU SUPERVISOR. SORRY. [INAUDIBLE] MANAGER THOMPSON SPEAK TO IT FROM HIS PERSPECTIVE, BUT FOR MINE, IT WAS REALLY ENLIGHTENING TO SEE SOME CROSS-DEPARTMENTAL DISCUSSION AS TO, OH, WHY? WHY ARE YOU ASKING FOR THIS? WHAT'S GOING ON IN YOUR IN YOUR, IN YOUR PART OF THE COUNTY? AND REALLY STARTING TO THINK HOLISTICALLY AS AN ORGANIZATION INSTEAD OF, AS I TOLD THEM, THINK ABOUT THE WE, NOT THE ME. AND SO THEY GOT TO WEAR A DIFFERENT HAT FOR THE DAY.

BUT ON ON THE LAST SLIDE, BECAUSE I KNOW I SEE YOU'RE MOVING ON 217, $40 MILLION BUCKS.

YEAH. HOW DOES THAT COMPARE TO LAST YEAR? WHAT WAS THAT NUMBER? WHAT WERE THOSE TWO NUMBERS LAST YEAR? OH GREAT QUESTION.

I'M GOING TO LOOK OVER TO LUCY TO SEE IF YOU HAVE YOUR MEMORY, IF NOT, DON'T WORRY [INAUDIBLE] YOU HAVE.

IT WAS ABOUT $18 MILLION OVERALL ACROSS ALL FUNDS, AND I DON'T HAVE THE NUMBER, BUT IT WAS ABOUT HALF.

IT WAS A LITTLE OVER 100. SO THE ASKS HAVE DOUBLED? YES. SIGNIFICANTLY. OKAY. YEAH.

MIC] I WILL SAY THIS. THEY'RE ALL SMILING, SO IT MUST, PEOPLE MUST HAVE GOT WHAT THEY WANTED.

THAT'S A GREAT SEGUE, CHAIR. IT WAS A FUN, FUN AFTERNOON.

IF YOU CAN USE THAT WORD ABOUT BUDGET AND NOT TO SPEAK.

OKAY. I NOT TO SPEAK FOR THE ORGANIZATION, ALL THE DIRECTORS, BUT I THINK THEY WOULD AGREE THAT IT WAS AN AFTERNOON WELL WORTH THEIR TIME.

AND I SAY THAT BECAUSE AT THE END OF THE DAY, WHEN WE DID THE WRAP UP, THE REQUEST FROM OUR DIRECTORS WAS, CAN WE DO MORE OF THIS AND DEVOTE MORE TIME TO IT NEXT YEAR? SO I BELIEVE THAT THEY SAW THIS AS VALUE. THIS WAS SOMETHING THAT I WAS REALLY EXCITED TO TO INTRODUCE THIS YEAR.

I THINK BOTH ZACH AND I HAVE PREVIOUS EXPERIENCE IN OTHER ORGANIZATIONS DOING JUST THAT, AND MY EXPERIENCE HAS BEEN POSITIVE.

WHEN YOU ASK FOLKS TO COME IN AND TAKE OFF THEIR INDIVIDUAL DIRECTOR HATS AND SAY, WE'RE HERE TODAY AS EXECUTIVES OF THIS ORGANIZATION TO MAKE COUNTY WIDE DECISIONS, YOU WILL FIND THAT PEOPLE ARE WILLING TO SHIFT SOME PRIORITIES AND SAY, NO, YOU KNOW, AFTER LISTENING TO THIS, THOSE NEEDS ARE MORE CRITICAL THAN SOME OF WHAT I'VE BEEN PUTTING FORWARD, AND I'M WILLING TO FOREGO THOSE MAYBE JUST FOR THIS YEAR BECAUSE OF HIGHER PRIORITIES.

BUT PEOPLE RISE TO THE OCCASION AND HELP MAKE THOSE TOUGH, TOUGH DECISIONS.

SO I JUST HAVE TO ASK, DID YOU GET THIS IN WRITING ABOUT WHO'S GOING TO FORGO THEIRS? AND THEN SOMEBODY'S GOING TO JUST IT WOULD JUST HELP OUR PROCESS SO MUCH I MEAN, AS WE MOVE FORWARD, YOU KNOW, IF YOU, YOU KNOW WHILE YOU'RE SMILING AND CLAPPING IN THE PICTURE.

NO, AND ACTUALLY, WE TALKED ABOUT THIS. I THINK IF YOU'D ALL LOOK WHO WE'RE LOOKING AT.

I MEAN, MAYBE THAT GIVES YOU SOME INSIGHT. I BELIEVE THAT'S THE COUNTY ATTORNEY SITTING RIGHT THERE.

[LAUGHTER] WE DID HEAR YOU WERE GETTING IN A LOT OF TROUBLE THAT DAY.

THE TIMING JUST ENDED RIGHT AT THE COUNTY ATTORNEY'S OFFICE.

SO, NO IT WAS A GREAT EXERCISE, AND WE HEARD THE DESIRE AND WE WILL PLAN TO BUILD MORE OF THAT INTO THE PROCESS GOING FORWARD.

AND AND SPEAKING A LITTLE BIT MORE ON THIS IS IT'S IT'S REALLY GETTING US ALSO TO TO SPEAK TO WHAT COUNTY MANAGER THOMPSON MENTIONED PREVIOUSLY OF EXPANDING THE TIME HORIZON. SO WHEN YOU LOOK AT A ONE YEAR BUDGET AND YOU START THEN NARROWING IT DOWN TO ONE DEPARTMENT, IT CAN ALMOST BE LIFE OR DEATH. IF I DON'T GET THIS, THEN THIS WON'T HAPPEN THEN THIS WON'T HAPPEN.

AND WE CAN VERY QUICKLY GET VERY MYOPIC ON THE ENTIRETY OF THE COUNTY.

WHAT WAS FUN ABOUT THIS ACTIVITY IS INDIVIDUALS WE'RE STILL ADVOCATING FOR THEIR OWN INDIVIDUAL WANTS AND NEEDS, BUT THEY WEREN'T THINKING AS AN INDIVIDUAL ANYMORE AND IT LOOKS SIMILAR TO THE BOARD. THE BOARD IS NOT LOOKING AT JUST ONE SET OF CONSTITUENTS.

IT IS THE ENTIRETY OF YAVAPAI COUNTY THAT WERE PRESENTING BEFORE YOU AND WE'LL BE TALKING ABOUT WHEN WE PRESENT THE BOARD OR PRESENT THE BUDGET.

AND SO WITH THIS ACTIVITY, IT GAVE AN OPPORTUNITY TO START TALKING ABOUT THE UNDERSTANDING THAT THE TOTALITY OF THE REQUESTS OF THE FOR THE GENERAL FUND REQUEST OF $30 PLUS MILLION WILL NOT BE MET THIS YEAR.

BUT WHAT SHOULD WE START CHANGING THE ARC OF IN THE ORGANIZATION? BECAUSE WHAT WHAT IT MEANS THEN IS, IS IN ORDER TO SATISFY SOME OF THOSE CHANGES, MIGHT THERE BE REALLOCATIONS AT SOME POINT.

IT'S KIND OF A SCARY WORD OF MIGHT WE CHANGE BUDGETS AT SOME POINT TO FOCUS ON DIFFERENT NEEDS, PRIORITY PRIORITIES OF THE ORGANIZATION, AND HOW DOES THE GROUP OVERALL, THE EXECUTIVE LEADERSHIP HERE AT YAVAPAI COUNTY LOOK AT THEIR INDIVIDUAL INVESTMENTS AND POSITION WITH THAT IN THAT AND START THINKING CROSS-DEPARTMENTALLY.

IT'S MUCH HIGHER LEVEL DISCUSSION OF BUDGETING AND PLANNING WHEN YOU START GETTING INTO THE ORGANIZATIONAL PLANNING AND OUT OF THE INDIVIDUAL SILOS.

[01:35:07]

SO I'M VERY EXCITED. AS ONE OF THE SLIDES WE'LL BE TALKING ABOUT SHORTLY IS THE STRATEGIC PLAN FOR THE COUNTY, WHICH THE BOARD WILL REALLY BE IMPRESSING UPON THE ORGANIZATION OF THE DIRECTION, AS YOU SEE, THIS FORWARD LOOKING PLAN FOR THE COUNTY. AND HOW DO WE AT THE ORGANIZATION LEVEL, MOVE THAT FORWARD IN A WAY THAT'S COMPREHENSIVE AND HELPS MOVE FORWARD THE COUNTY? SO I'M I'M EXCITED ABOUT IT BECAUSE I FEEL THE CHALLENGES BEFORE US REALLY WILL BE SOLVED BY US THINKING DIFFERENTLY, NOT JUST INDIVIDUALLY VYING FOR INDIVIDUAL RESOURCE ALLOCATIONS.

SO ABSOLUTELY, IF I MAY ADD TO THAT, GREAT POINTS THERE AGAIN, AS WE START TO MOVE FROM JUST LOOKING AT OUR BUDGET PROCESS AS A ONE YEAR SNAPSHOT AND START TO PROJECT OUT, THINK ABOUT A MULTI YEAR STRATEGY.

I'VE HAD CONVERSATIONS WITH AT LEAST A COUPLE, IF NOT MORE, DEPARTMENT OR ELECTED DIRECTORS WHO HAVE SAID, YOU KNOW, IF WE COULD GET TO THAT POINT RIGHT NOW, AGAIN, EVERY YEAR IS LIVE OR DIE.

IT'S EITHER IN THERE OR IT'S NOT. BUT IF WE COULD START MOVING TOWARDS THIS LONGER RANGE LOOK, MAYBE I COULD GET BY ONE MORE YEAR IF I HAD SOME ASSURANCES THAT THE NEEDS HAVE BEEN RECOGNIZED.

AND WE START TO BUILD A PLAN FOR THE FUTURE YEARS TO TO ADDRESS THOSE NEEDS.

AND THAT'S SOME DIRECTION THAT, THAT I VERY MUCH LIKE TO GO IN, WITH THE CAVEAT THAT WE KNOW THAT THOSE DECISIONS ULTIMATELY REST WITH THE BOARD ON A YEARLY BASIS. BUT IF WE CAN START TO COME UP WITH THIS INTERIM STRATEGY OF OF PLANNING MORE FOR THE FUTURE.

LOST IT AGAIN. THERE WE GO. DEPARTMENT NEEDS.

I THINK THAT PUTS US IN A MUCH HEALTHIER POSITION.

AND THEN AN IMPORTANT COMPONENT OF THIS IS OR IN MY OPINION, IMPORTANT COMPONENT OF THIS IS ALSO ON THE RESIDENCE SIDE.

SO I THINK HEALTHY ORGANIZATIONS MANY TIMES WHEN ENGAGEMENTS ARE DONE IN THIS MANNER, IT USUALLY STARTS OUTSIDE IN, YOU START WITH THE PUBLIC, SEE WHAT THE PUBLIC SAYS, SIMILAR TO THE SURVEY WE DID.

AND THEN AFTERWARDS YOU DISCUSS THAT WITH THE ORGANIZATION.

I ACTUALLY THINK IT'S MORE BENEFICIAL TO START INSIDE OUT.

AND SO WE DIDN'T NECESSARILY SAY WE'RE GOING TO WAIT TO TALK WITH THE COMMUNITY, BUT I THINK IN BUILDING UP OUR INTERNAL STRATEGY, FIRST, IT ALLOWS US TO FIGURE OUT WHAT CAN BE CHANGED, WHAT ARE THE OPTIONS, AND THEN PUTTING THAT FORWARD BEFORE THE PUBLIC I THINK IS HELPFUL TO HEAR THEIR PERSPECTIVE AS TO DOES THAT MOVE FORWARD, THEIR PRIORITIES AS WELL.

AND WE WERE VERY FORTUNATE TO HAVE SUPERVISOR KUKNYO.

THANK YOU FOR TAKING OUT SOME TIME ON YOUR I THINK IT WAS A WEDNESDAY EVENING.

IT WAS FROM 5:30, WE DID IT, IN MY OPINION, PROBABLY TOO FAST.

NEXT TIME WE'LL HAVE TO ALLOCATE MORE TIME TO IT. BUT FROM 5:30 TO 7:00 WE HAD A GROUP OF OUR OF OUR CITIZENS ACADEMY GRADUATES, PLUS A COUPLE PEOPLE THAT WERE NOT PART OF THE PROGRAM, COME TOGETHER AND DO THE SAME ACTIVITIES.

SO THEY WERE GIVEN A SET OF REVENUE CRITERIA, A SET OF EXPENDITURES, AND THEY WERE REQUIRED TO SUBMIT A BALANCED BUDGET WITHIN, THEY ONLY HAD 45 MINUTES, SO IT WAS IT WAS VERY QUICK.

BUT FROM MY PERSPECTIVE, WHAT IT HELPED MOVE FORWARD IS ONE IT EDUCATED INDIVIDUALS.

WHAT SOME OF THE DISCUSSION POINTS THE INDIVIDUAL WITH THE HAT ON KIRK, I BELIEVE HIS NAME IS REMEMBER HIM MENTIONING WOW, THIS IS MUCH MORE COMPLEX THAN I THOUGHT. I THOUGHT, YOU KNOW, I THOUGHT YOU COULD JUST COME IN HERE AND CUT THIS AND MOVE THIS AND IT'S SIMPLE, BUT NO, THERE'S A LOT OF INTERRELATED PIECES.

SIMILARLY, GARY, WHO YOU SEE THE BACK OF HIS HAIR AT THE FAR RIGHT, HE MENTIONED I WORKED IN THE PRIVATE SECTOR IN IT.

AND NOW FINDING THIS, I DIDN'T KNOW THERE WERE DOWNSTREAM EFFECTS IF WE DON'T FUND SOMETHING OR DO HOW IT IMPACTS ANOTHER DEPARTMENT.

SO I THINK IT HELPED ALLAY SOME OF THE THE FEARS OF OF WHAT WE TALKED ABOUT BEFORE, ALL TAXES ARE BAD TAXES.

INSTEAD OF SAYING THIS IS OUR COMMUNITY AND HOW DO WE WANT TO RESOURCE THE STAFF IN ORDER TO PROVIDE THIS PROVISION OF SERVICES AND THE COMPLEXITY OF IT, IT REALLY BROUGHT THAT TO BEAR ON THE GROUP. IT WAS A IT WAS A FUN DISCUSSION, AND I ASKED SUPERVISOR KUKNYO IF HE WANTED TO SHARE ANY PERSPECTIVES BECAUSE I'M CURIOUS.

YEAH, I JUST THOUGHT IT WAS INTERESTING. AND WHEN WE BROKE UP INTO OUR SMALL GROUPS AND THERE WAS FIVE OTHER PEOPLE, I THINK, AND ME AND THEY STARTED GOING THROUGH AND THEY WERE HANDING OUT RAISES TO EVERYONE.

THEY WERE GRANTING EVERY WISH THAT CAME BEFORE THEM.

AND THERE'S THIS LITTLE SLIDE ON THE TOP THAT THAT KEEPS TRACK OF YOUR DECISIONS.

AND IT'S GREEN IF YOU'RE IN A SURPLUS RED AND A DEFICIT.

THEY GOT DONE DOING ALL THAT AND IT WAS RED. SO THEN THEY WENT TO THE OTHER SIDE AND WELL, WELL, WE'LL JUST RAISE TAXES. SO THEY JACKED UP THE TAXES TO BRING THEM BACK INTO A GREEN.

AND THEY SAID, WELL, WHAT DO YOU THINK? AND I GO, I THINK YOU GUYS WON'T BE ELECTED NEXT TIME.

AND YOU KNOW, IT KIND OF BRINGS IT IN BECAUSE IT ISN'T JUST AN EASY CHOICE LIKE THAT.

WHEN YOU DO THIS, THERE'S CONSEQUENCES TO EVERYTHING.

AND NO MATTER WHAT IS WORTHY, SOMETIMES MAYBE YOU DON'T GET THAT.

[01:40:02]

AND, YOU KNOW, I MAY NEED THIS, BUT WHAT CAN I GET BY WITH IN ORDER TO GET BY WITH THE MONEY I GOT COMING IN? IT WAS IT WAS VERY INTERESTING TO WATCH AND WATCH THE PEOPLE INTERACT WITH EACH OTHER.

SOME PEOPLE WOULDN'T SAY ANYTHING, OTHER PEOPLE JUST STARTED CHECKING BOXES.

SO YEAH. AND I THINK IT TALKS ABOUT THIS BROADER PIECE TOO THAT WE'RE DISCUSSING IS IS REALLY A BUDGET.

ONE OF THE QUOTES I LIKE IS A BUDGET A BUDGET IS MORE ABOUT WORDS THAN IT IS ABOUT NUMBERS.

AND I THINK WHEN YOU'RE DOING IT WELL, BUDGETING IS ABOUT DISCUSSIONS OF WHERE YOU WANT TO GO, SETTING UP SYSTEMS TO GET THERE, BUT REALLY REGULAR TOUCH POINTS IN ORDER TO SAY, HOW WELL ARE WE MOVING? BECAUSE IT'S NOT ABOUT THE TOTAL DOLLARS AT THE END OF THE DAY, WHAT'S HAPPENING AT THE COMMUNITY LEVEL? HOW ARE DEPARTMENTS ABLE TO PROVIDE THOSE SERVICES, AND WHAT CHANGES DO WE NEED TO LOOK AT, LOOK ABOUT ON THE HORIZON? AND SO I'M, I'M IT'S BEEN REALLY FUN THIS YEAR IN THE SHORT TIME I'VE BEEN HERE TO SEE THESE NEW TOUCH POINTS THAT WE'VE BEEN ADDING TO THE ORGANIZATION AND ALSO THE CONVERSATION AS WE'RE GOING TO CONTINUE TO HAVE ON THE BUDGET.

SO AS YOU HAVE ONE OF THE AREAS THAT I'LL MENTION, WE HAVE SOMETHING CALLED A TAXPAYER RECEIPT, WHICH AFTER WE GET PAST THE RECOMMENDED BUDGET, IT'S SOMETHING I'D LOVE TO SHARE WITH THE BOARD OFFICES, BECAUSE IT'S A WAY OF YOU START ASSIGNING INDIVIDUAL DOLLARS TO THE TAX RATE AND SO THAT PEOPLE CAN SEE WHAT IS THEIR PROPORTIONAL SHARE OF A RECOMMENDED BUDGET TO SEE IF THIS IS SOMETHING THAT HELPS. AS YOU'RE OUT IN THE COMMUNITY COMMUNICATING WITH CONSTITUENTS AND RESIDENTS AS TO HOW OUR DOLLARS INVESTED AND WHY.

SO YEAH, INTERESTED IN THAT. AND I THINK ONE THING THAT AS GOVERNMENTS, WE HAVE TO UNDERSTAND TOO, IS OKAY, WE'RE ONLY RAISING IT $20 BUCKS, BUT THEN THE FIRE DISTRICT IS RAISING IT $20 BUCKS, THE SCHOOL IS RAISING IT $20 BUCKS, AND IT DOESN'T TAKE TOO LONG FOR THAT TO BE GIANT INCREASES TOGETHER.

AND I DON'T KNOW HOW YOU YOU TALK WITH OTHER FOLKS, BUT YOU GOT TO BE VERY CAREFUL BECAUSE WE ARE A LOW TAX COMMUNITY, BUT WE HAVE TO FIGHT TO STAY THAT WAY. YEAH. IT WAS ONE OF THE THINGS IN THE ACTIVITY THAT WE DID FOCUS ON.

HERE WE GO. YOU'LL SEE THIS LITTLE BOX HERE, IT SHOWED THE INDIVIDUAL THE, THE IMPACT ON THE MEDIAN VALUED HOME AT YAVAPAI COUNTY IF THAT PROPERTY TAX WAS CHANGED BECAUSE PART OF THE EDUCATION, AS YOU WERE MENTIONING, IS LETTING THEM KNOW THAT YAVAPAI COUNTY IS A PROPORTION, A SMALL PROPORTIONAL SHARE OF THE TOTAL TAX BILL. CORRECT? YEAH. AND THEY DIDN'T REALIZE THAT A LOT OF THEM DIDN'T, THEY THOUGHT THAT TAX BILL, EVERYTHING WENT TO THE COUNTY, WHICH WAS ANOTHER SURPRISING THING WHICH KIND OF SAYS, DO YOU EVEN LOOK AT YOUR TAX BILL OR YOU JUST SEE IT GOING UP? SO I MEAN, THAT WAS THAT WAS A SURPRISING REVELATION FROM THAT EXERCISE AS WELL.

YEAH, IT WAS TO ME, IT WAS THERE'S A LOT OF OPPORTUNITY, ESPECIALLY FROM THE EDUCATION SIDE, AS WE CONTINUE TO DO ACTIVITIES LIKE THIS IS I LOOK, THE FIRST STEP IS REALLY EDUCATING THE PUBLIC AS TO WHAT REVENUE SOURCES DO WE HAVE? WHAT IS WHAT, WHAT DO YOU WHAT ARE HOW MUCH DO YOU PAY IN PROPERTY TAXES? WHERE DOES IT GO AND HOW IS IT EXPECTED TO BE UTILIZED? SO THAT IS TO ME, THE PRIMARY SOURCE OF SOME OF THESE ACTIVITIES THAT WE DO WITH THE PUBLIC.

AND I'M JUST GOING TO PUT THIS OUT THERE. A LOT OF OUR POPULATION GROWTH IN THE LAST FIVE, SIX, SEVEN YEARS, THERE ARE PEOPLE THAT HAVE RETIRED OUT OF CALIFORNIA, NEW YORK, EVEN HAWAII.

THEY HAD A GREAT LIFE THERE AS LONG AS THEY WERE WORKING.

BUT THE TAXES ARE SO HIGH THAT YOU CAN'T RETIRE THERE.

SO THAT'S WHAT GENERATED THE MOVE TO WHEREVER, YOU KNOW, AREA THAT MIGHT LOOK MORE AVAILABLE FOR THEM TO LIVE THEIR RETIREMENT DAYS OUT. AND AND SO THAT'S KIND OF HOW THIS WAS DRIVEN AS WELL.

YOU KNOW, THE TAXES ARE VERY HIGH IN MANY, MANY STATES, AND IT'S GREAT WHILE YOU'RE WORKING, BUT ONCE YOU STOP, UNLESS YOU HAVE THIS EXTREMELY, WELL, WEALTHY LIFE, YOU GOT TO KIND OF MOVE ON.

I WAS JUST THINKING THE OTHER DAY, YOU KNOW, I GREW UP AT THE BEACH, LITERALLY GREW UP AT THE BEACH.

THE RENT THAT WE PAID ON OUR APARTMENT WAS LESS THAN $200.

I'D GET DONE WITH MY JOB AT 16 YEARS OLD, GET IN MY CAR, I'D DRIVE OVER TO THE BEACH AND HANG OUT FOR THE AFTERNOON.

IT DIDN'T SEEM LIKE AN IMPOSSIBLE THING, YOU KNOW.

TODAY I LOOK AT THAT AND I THINK, BOY, I'LL TELL YOU, I WAS REALLY, REALLY BLESSED BECAUSE IT TAKES ME ALL YEAR TO PLAN A VACATION FOR KIRK AND I TO GET BACK TO THAT BEACH.

YOU KNOW, SO HE COULD SURF AND DO WHAT HE WANTS TO DO WHEN, YOU KNOW, HE'D GET DONE WORKING AT EDISON AND JUST JUMP RIGHT IN THAT WATER ON HIS SURFBOARD. THOSE ARE THAT'S HOW DIFFERENT LIFE IS.

AND AND THOSE EASY THINGS THAT WE GOT TO DO, THE MONEY HAS TAKEN IT TO A LEVEL THAT WE CAN'T AFFORD IT ANYMORE.

[01:45:09]

THEY'RE TOTINO'S PIZZA COST TWICE AS MUCH NOW.

THE HOUSE INSURANCE IF IT HASN'T BEEN CANCELED HAS REALLY SKYROCKETED IN PRICE.

AND WE GOT OUR AVERAGE AGE IS 58, WE HAVE A TON OF FIXED INCOME HERE.

WHEN YOU HIT THEM, YOU REALLY START KNOCKING THEM INTO THE NEGATIVE AND TAKING THEIR LITTLE GREEN BALL TO RED.

SO I'M JUST AND SOMETIMES IT HAS TO HAPPEN. BUT I MEAN I JUST THINK WE NEED TO BE VERY CAUTIOUS WHERE IN THIS EXERCISE THE EASY THING TO DO WAS JUST WAS RAISE THAT RATE AND SLIDE THAT THING OVER TO GREEN.

BUT IT HAS HUGE IMPACTS ON ON THE PEOPLE AT YAVAPAI COUNTY.

YEAH, IT DEFINITELY DOES AND AND SO IT'S A IT'S A FINE LINE.

IT DEFINITELY TAKES MUCH INPUT FROM EVERYBODY AND A LOT OF THOUGHT PROCESS AS WE MOVE FORWARD.

AND I BELIEVE THAT, YOU KNOW, THERE IS A PLACE THERE THAT WE CAN MAKE THIS WORK.

IT'S JUST GOING TO TAKE A LOT OF SITTING AT A TABLE AND REALLY FIGURING OUT THOSE PRIORITIES AND, AND DOING WHAT WE HAVE TO DO, YOU KNOW. I WILL ALWAYS SAY THAT I GET VERY FRUSTRATED WITH ROADS.

IT'S BEEN A THING FOR ME. AND YOU KNOW THAT. SUPERVISOR KUKNYO.

SO THE 17 WAS A DEAL IN MY WORLD WHEN I FIRST GOT HERE, I WAS LIKE, WHAT IS WRONG WITH THESE PEOPLE IN THIS STATE? WHY DON'T THEY FIX THIS ROAD? IT'S LIKE SUICIDAL. SO ONE THING LED TO ANOTHER.

I WASN'T EVEN NEAR POLITICS AT THAT TIME. BUT THEN I GOT ON SIMPLE THINGS MOVED.

BUT TODAY, BECAUSE WE ALL CAME TOGETHER AND REALLY FELT IT WAS A PRIORITY, THAT THE 17 NEEDED SOME TYPE OF IMPROVEMENT. I'M NOT SAYING IT'S THE BEST, BUT WHAT I'M SAYING IT NEEDED SOMETHING.

AND SO TODAY WE STARTED THAT UP HERE IN YAVAPAI COUNTY, IT'S SIMPLE.

THE BOARD THAT YOU AND I WERE ON, SUPERVISOR BROWN WAS THERE, CHRIS BRIDGES, BUT THE THING WAS IS THAT THAT WAS REALLY HARD. AND WE STOCKED THE STATE BOARD TRANSPORTATION.

WE FOLLOWED THEM ALL OVER THE PLACE. DIDN'T MATTER WHAT CITY THEY WERE HAVING THEIR MEETING, WE WERE THERE TO TELL THEM THEY NEEDED TO DO SOMETHING ABOUT THAT ROAD.

AND SO THAT'S THE DRIVE. THAT'S THE DESIRE. THAT'S WHAT THE HEART IS GOING TO NEED AS WE MOVE THIS COUNTY FORWARD IN THE BUDGET, POSSIBLY LOOKING AT HAVING TO DO SOMETHING WITH THE TAX.

BUT HOW MUCH DO YOU DO? WHEN DO YOU DO IT? HOW DO YOU DO IT? ALL OF THOSE THINGS, IT WILL BE A DRIVING FORCE THAT WILL HAPPEN OVER A PERIOD OF TIME, BUT IT WILL HAVE TO ABSOLUTELY BE ALL OF US AT THE TABLE, EVERY SINGLE ONE OF US AND THE COMMUNITY AS WELL.

AND, YOU KNOW, THAT'S THE OTHER SIDE OF IT, THE PUBLIC DEMAND SERVICES.

I MEAN, WE PROVIDE THAT. SO WE JUST HAVE TO BE MOST EFFICIENT IN DOING THAT.

AND YOU KNOW, WHEN WE DON'T HAVE ENOUGH SHERIFF'S DEPUTIES, WE CAN'T PATROL WILLIAMSON VALLEY ROAD.

SO AND THAT'S ONE OF THE BIGGEST COMPLAINTS THEY DEMAND THAT OUT OF US.

I MEAN, WE HEAR IT FROM ROADS ALL THE TIME. THE WELL, THIS HAS POTHOLES OR THIS ISN'T WORKING.

SO WE JUST HAVE TO BE VERY CAREFUL IN HOW WE SPEND MONEY.

AND I THINK YOU GUYS ARE TAKING THAT APPROACH, TOO.

WELL, THANK YOU, SUPERVISOR. AND THAT WAS A NICE SEGUE TO THE COMMENT I WAS PREPARING TO MAKE.

WHEN YOU TALK ABOUT THE BUDGET, IT'S ALL ABOUT FINDING THAT RIGHT BALANCE AND THE THE STRUGGLE, I THINK FOR US AT TIMES IS THE CHAIR TALKED ABOUT THE FOLKS THAT ARE RELOCATING HERE FROM A HIGHER TAXING JURISDICTIONS, BUT ALSO THEY HAVE HIGHER EXPECTATION FOR SERVICES.

SO HOW DO YOU MAINTAIN THAT DESIRE FOR SERVICES WITH A LOW TAX RATE.

AS WE KNOW, SOMETIMES THOSE DON'T EQUAL EACH OTHER SO YOU HAVE TO MAKE ADJUSTMENTS.

AND YOU KNOW, WHEN YOU TALK ABOUT ROADS NOEL CAMPBELL PUSHED FOR AN INCREASE IN THE GAS TAX AND IT KILLED HIS POLITICAL CAREER.

WE ALWAYS WANT WHAT WE WANT, LIKE THOSE PEOPLE WITH THEIR SANTA CLAUS LIST.

BUT THEN PAYING FOR IT, PAYING FOR IT, THAT'S A DIFFERENT.

AND AGAIN, IT'S JUST LIKE OUR HOUSE, YOU KNOW, DO WE GET TO PUT IN A POOL THIS YEAR IN THE HOUSE OR,

[01:50:01]

IS OUR WATER ISSUES. WHAT WHAT ARE WE GOING TO DO ABOUT IN WILLIAMSON VALLEY THE WELLS ARE GOING DRY.

NOW THE WATER COMPANIES ARE GOING DRY. WHAT IS GOING TO BE THE ANSWER THERE? AND AS LONG AS AS YOU FLUSH AND THAT STUFF GOES AWAY, IT AIN'T A PROBLEM.

BUT IF ALL OF A SUDDEN THAT STOPS WORKING, IT'S GOING TO BE THE BIGGEST THING AND EVERYONE'S GOING TO TURN TO US AND SAY, YAVAPAI COUNTY, WHAT ARE YOU GOING TO DO ABOUT THIS WATER ISSUE? GREAT. I THINK WE'VE STARTED ON SOME OF THESE CONVERSATIONS, ON THE STRATEGIC PRIORITIES, BUT THIS IS KIND OF THE NATURAL EVOLUTION OF THE NEXT LEVEL LEVEL OF SLIDES.

SO THE BOARD HAS SEEN THESE AS PARTICIPANTS, WITH THE EXCEPTION OF SUPERVISOR MALLORY AND NOW SO IT'S AN OPPORTUNITY TO ALSO RESTATE HERE'S THE FIVE PRIORITIES THAT WERE ADOPTED AT THE BEGINNING OF THIS BUDGET YEAR.

THREE OF THEM ARE MOVING FORWARD THE CONTINUATION OF THE FOCUS ON THE FACILITY MASTER PLAN OR THE SPACE PLANNING AND SERVICE ASSESSMENT.

THE SECOND ONE IS, IS THE IS REALLY THE CLOSEOUT OF ARPA AT THIS POINT.

WE HAVE ABOUT A YEAR AND A HALF LEFT. EMPLOYEE COMPENSATION AND THEN TWO OTHER ONES, THE CAPITAL IMPROVEMENT, PLANNING AND INNOVATION AND EFFECTIVENESS. WHEN'S THE LAST TIME WE DID A CLASS AND COMP STUDY? IT WAS RECENTLY, WASN'T IT? WAS IT 2021 MAYBE.

I THINK IT WAS 21 BECAUSE THAT'S WHAT PREDATED SOME OF THE CHANGES THAT WERE PUT FORWARD IN THE LAST TWO YEARS IN THE COMPENSATION CHANGES.

HOW OFTEN DO YOU DO THAT? IN MY OPINION, IT DEPENDS ON YOUR STRATEGY.

IF YOU'RE PAYING ATTENTION TO IT ON A REGULAR BASIS AND MAKING APPROPRIATE ADJUSTMENTS, YOU CAN GO A LONG TIME.

IF YOU STOP DOING THAT AND FIND YOURSELF WELL BEHIND THE MARKET, THEN YOU'RE DOING THEM MORE FREQUENTLY.

SO IT JUST DEPENDS ON YOUR STRATEGY AS AN ORGANIZATION, WOULD IT COST LESS TIME? ABOUT 300. SO WHAT'S WHAT'S A CLASSIC COMP COST TO DO? OH I DON'T KNOW. UNFORTUNATELY IT WAS BEFORE I WAS HERE.

BUT YEAH. 150 I HEAR THANK YOU. AND SO THE FIRST STRATEGIC PRIORITY THAT I HAVE FOR DISCUSSION IS FACILITY MASTER PLAN, AS I SAY THAT AS FOR DISCUSSION, REALLY DIDN'T OPEN UP TOO MANY SLIDES BECAUSE TOMORROW WE HAVE A FULLY DEDICATED STUDY SESSION TO TALK ABOUT AN ASPECT OF THAT OF THE CONTINUATION OF THE GURLEY STREET PROJECTS AND SOME OF THE OTHER IMPACTS FOR THAT. SO WE'RE REALLY EXCITED TO CONTINUE THAT DISCUSSION MOVING FORWARD.

BUT SIMILARLY, I LOOK THIS REALLY IS COUPLED IN MY MIND WITH THIS IDEA OF CIP BECAUSE THESE PROJECTS AND THE DIFFERENT CATEGORIES OF PLANNING, MAINTENANCE, RENOVATION, EXPANSION AND BUILDING AND BUYING WE'RE TALKING ABOUT THE FULL LIFE CYCLE OF BUILDINGS HERE AT THE COUNTY. AND SO THE ENTIRETY AND WHAT WE'RE THINKING.

OOPS, SORRY WRONG BUTTON. WHILE WE'RE THINKING ABOUT THIS IT GOT ME THINKING ABOUT THIS RETRO VIDEO GAME AND TRIVIA TIME FOR THE BOARD.

[INAUDIBLE]. VERY CLOSE. SIM CITY. OH! DING DING DING DING DING.

OKAY, I WASN'T THE ONLY ONE PLAYING VIDEO GAMES BACK IN THE IN THE LATE 80S.

SO SIM CITY WAS A VIDEO GAME. DO YOU WANT TO KNOW? DO YOU HAVE ANY HISTORICAL. OKAY, FINE. OKAY.

I USED I USED TO HAVE A THING FOR VIDEO GAMES.

YEAH. OKAY. YEAH, WELL, I WAS BUILDING. WELL, SEE, AND THIS IS TO FIND OUT LATER THAT ONE OF THE VIDEO GAMES, PROBABLY JUST ONE, WAS EDUCATIONAL. SO SIM CITY, THE THE BASIS OF IT IS YOU WOULD JUST PUT THESE, YOU WOULD BUILD YOUR OWN CITY. YOU START WITH A FLAT AN EMPTY PARCEL LAND.

IN THIS CASE, YOU COULD CHOOSE WATER OR NOT. AND THEN YOU'D ADD RESIDENTIAL, COMMERCIAL AND INDUSTRIAL AND YOU'D BUILD, YOU'D BUILD AROUND THAT CITY. ONE OF THE THINGS THAT I FELT WAS WHAT GOT ME THINKING ABOUT THIS IS THIS IS REALLY WHAT WE'RE DOING AS A COUNTY IS WE'RE DOING IT IN A WAY, SIM COUNTY. AND SO WE DON'T HAVE THE TOOLS YET TO SIMULATE TO THIS DEGREE.

IT'D BE COOL IF SIM CITY UPDATED. BUT WE'RE WORKING THROUGH THE SAME SET OF CONSTRAINTS OF CHRIS ADAMS, WHO'S KIND OF A SCHOLAR IN PUBLIC ENGAGEMENT, TALKS ABOUT UNIQUE CONSTRAINTS.

YOU NEED TO UNDERSTAND CONSEQUENCES THE CONSTRAINTS AND CONSEQUENCES WHEN YOU'RE MOVING THINGS FORWARD IN THE CONTEXT.

AND I LOOK THE SAME THING WE'RE DOING AS A COUNTY TO UNDERSTAND WHAT ARE OUR CONSTRAINTS, EITHER VIA LAND USE, VIA DOLLARS, VIA POLITICAL CONSTRAINTS WE HAVE WHAT ARE THE CONSEQUENCES IF WE DO OR WE DON'T MOVE INTO CERTAIN AREAS? AND WHAT'S WHAT'S THE OVERALL CONTEXT OF HOW WE'RE DOING THIS SO THAT WE CAN HAVE FULLY VETTED CONVERSATIONS MOVING INTO OUR CAPITAL IMPROVEMENT PLANNING.

AND SO AS WE'RE MOVING IT FORWARD, THIS IS OUR FIRST YEAR.

AND I APOLOGIZE FOR THE IT LOOKS LIKE AP BUT IT'S CIP, CAPITAL IMPROVEMENT PLANNING.

AS WE'RE MOVING INTO IT, ONE OF THE FIRST ASPECTS IS REALLY PROVIDING THAT THE THE MONITORING PIECE TO IT.

[01:55:07]

SO BEHIND THE BUDGET THIS YEAR OUR DEPARTMENTS ARE PUTTING TOGETHER THEIR FIVE YEAR SPAN OF, HOW DO THEY EXPECT TO SPEND DOLLARS WITH WITH ROAD INVESTMENT? WHAT WE'RE LOOKING AT IN SOME OF THE BUILDING OPTIONS THAT ARE BEING CONSIDERED SO THAT WE CAN EXPAND THE TIME HORIZON AND NOT JUST LOOK AT A ONE YEAR WINDOW.

AND THEN THE OTHER PIECE OF IT IS SO THAT WE CAN HAVE THAT INTERNAL DISCUSSION, INTERNAL.

SO WE UNDERSTAND WHAT WE'RE INVESTING IN ON AN ANNUAL BASIS AS COUNTY MANAGER THOMPSON MENTIONED, WHEN WE MAKE THESE PLANS, IT'S THE EXPECTATION OF WE'RE GOING TO MOVE TOWARDS THIS NEW, SAY, BUILDING, BUT IT'S NOT THE BUILDING. ONCE AGAIN, IT'S A SOLUTION FOR PROVIDING A CERTAIN TYPE OF SERVICE TO THE COMMUNITY.

AND AS THE NEEDS CHANGE, WE CAN THEN CHANGE THAT PLAN BECAUSE WE'RE LOOKING AT IT ANNUALLY AND WE CAN UNDERSTAND TOO IF FUNDING SOURCES CHANGE, MIGHT WE NEED TO SLOW DOWN ONE PROJECT TO ACCELERATE ANOTHER ONE.

AND SO THIS IS GOING TO BE THE BACKBONE OF SOME OF OUR LONG TERM CONVERSATIONS FOR FACILITY MANAGEMENT, SPACE MANAGEMENT, AND REALLY SERVICE PROVISIONS IN THE COUNTY.

SO ONCE AGAIN, REALLY THANK YOU TO THE STAFF THAT ARE DOING THE BEHIND THE SCENES WORK SO THAT WE CAN HAVE THIS DISCUSSION AT THE BOARD WE'LL HAVE OUR FIRST ITERATION OF IT WHEN WE TALK WITH YOU IN A MONTH AND A HALF. BUT REALLY, IT WILL GROW OVER TIME IT'S SOMETHING THAT A COUNTY, AS THEY GET BETTER AT, THEY'LL HAVE A FULLER DISCUSSION, OPERATING COSTS INCLUDED IN THE BUILDING COSTS, AS WE TALKED ABOUT EARLIER TODAY. SO WE'RE AT THE WE'RE AT THE BEGINNING STAGES OF THAT LONG TERM FISCAL PLANNING.

AND IT LOOKS LIKE SUPERVISOR KUKNYO HAD A... YEAH, I JUST HAD SOMETHING TO WEIGH IN ON. I MEAN, I THINK WITH THIS AND I THINK THE ZONING STUDY THAT WE JUST DONE, I WISH WE WOULD HAVE DONE IT THREE YEARS AGO AND WE'D HAVE THAT NOW TO KIND OF THROW ALL THIS STUFF INTO.

BUT I THINK THERE'S A SPIRIT HERE NOW TO TO PLAN FOR FUTURE GROWTH, WHICH WE HAVEN'T REALLY DONE WE'VE JUST BEEN REACTING TO WHAT GROWTH HAS COME OUT THERE. SO I THINK ALL THIS STUFF TIES IN TOGETHER AND IT'S GOING TO BE A GOOD THING WHEN WE'RE DONE, IT'S JUST GOING TO... I HOPE WE HAVE ALL THE INFORMATION WE NEED WITH THIS, AND IT GOES ALONG WITH WHAT COMES OUT OF THE WHOLE ZONING STUDY AS WELL.

YEAH, AND I WOULD SAY AS IS AS WE MATURE IN THE PROCESS, THE MORE INFORMATION WE BRING TO BEAR, IT'S IT'S IT'S PART WHAT WE, WHAT THE ORGANIZATION STARTS WITH AND THE CONVERSATION WITH THE BOARD.

AND THAT GOING BACK TO THE THE EXPENSIVE EGGS THAT MY WIFE LIKES TO BUY, IT'S ORGANIC AND SOMEWHAT IN THE FREE RANGE OF WHAT WE'RE WORKING WITH IN YAVAPAI COUNTY AND IT WILL CONTINUE TO IMPROVE WITH OUR INVOLVEMENT AND THE MORE TIME WE SPEND ON OUR PLANNING TOOLS.

SO THAT'S WHY IT'S IMPORTANT TO GET STARTED OF US TO DEVELOP THAT CIP AND TO HAVE IT BEFORE THE BOARD SO WE CAN START SAYING, WHAT PROJECTS ARE WE FOCUSED ON? HOW ARE WE GOING TO PAY FOR THESE PROJECTS OVER WHAT TIME HORIZON? AND THEN IF WE INVEST IN THESE BY SAYING YES TO THIS, WHAT MIGHT WE NEED TO SAY NO TO, WHICH IS THE OTHER PART OF THE CONSTRAINTS THAT WE NEED TO KEEP A FOCUS ON? AND ARE WE PUTTING THINGS IN THE RIGHT PLACE.

AND DO WE? ARE WE LEAVING OURSELVES THE ABILITY TO ROLL WITH THE PUNCHES? AND I MEAN, I THINK A PERFECT EXAMPLE OF THAT IS IN MY DISTRICT, WHICH I THINK IS REALLY MORE MARY'S DISTRICT IS THE NORTH SIDE OF 89 A, WHICH CONSIDERS THEMSELVES PRESCOTT VALLEY, BUT THEY'RE GROWING OUT AT A RAPID FIRE RATE.

AND WE COULD HAVE HAD A COMPANY CAME IN AND WANTED TO PUT A 5,000 ACRE SOLAR FARM RIGHT IN THE PATH OF WHERE THAT GROWTH IS GOING.

SO WE LOCATE A BUILDING OUT THERE THEN THAT PROJECT COMES IN AND YOU KNOW WHAT, SOLAR PANELS DON'T NEED A LOT OF HEALTH SERVICES.

SO WE JUST GOT TO STAY FLEXIBLE ENOUGH THAT OUR PLANS CAN CHANGE IF THEY NEED TO.

AND AGAIN, I WOULD ADD THAT THAT'S ANOTHER ADVANTAGE TO HAVING A FIVE YEAR CIP.

SO YOU ESTABLISH THAT THAT LONGER RANGE PLAN BUT IT'S REVISITED EVERY YEAR FOR THOSE EXACT PURPOSES TO REEVALUATE.

WELL, WE'VE GOT A NEW PIECE OF INFORMATION NOW.

SO HOW DO WE NEED TO ADJUST THAT CIP TO ACCOUNT FOR THAT? SO IT'S A REALLY A LIVING CHANGING DOCUMENT. YEAH.

THANK YOU. SO ZACH, I JUST HAVE TO SAY THAT LIKE YOUR WIFE, I BUY EXPENSIVE EGGS.

AND IF I CAN'T AFFORD TO BUY THOSE EXPENSIVE EGGS, THEN I DON'T GET EGGS THAT WEEK.

AND DON'T PUT ALL THOSE EGGS IN ONE BASKET MARY.

I DO NOT. AND I WHEN I DO BUY THEM, THEY ARE VERY PRECIOUS BECAUSE I'M ALWAYS REMINDED I JUST PAID $16 FOR THESE EGGS. THAT WAS A DOZEN. OKAY, SERIOUSLY.

NEVER MIND. MY WIFE'S EGGS AREN'T AS EXPENSIVE AS I ONCE THOUGHT.

I WILL RETRACT MY STATEMENT. OKAY. SEE, THERE'S ALWAYS A DIFFERENT PERSPECTIVE.

YES. SO AND WHEN IT COMES TO THE PLAN, I LOVE PLANS.

I DO. MY PROBLEM WITH MY PERSONALITY IS THAT I WANT TO FINISH THE PLAN.

[02:00:08]

SO AS WE MOVE FORWARD TO FIGURE OUT HOW WE GET THESE THINGS ACCOMPLISHED SO THAT THIS TERM, FOLLOWING THE NEXT TERMS, WHATEVER THAT LOOKS LIKE AS YOU MOVE FORWARD, IT WILL GET EASIER TO CONTINUE TO KEEP YAVAPAI COUNTY MOVING. YEAH. THANK YOU. WANT TO GIVE AN UPDATE ON ARPA AS WELL, SO AT THE LAST TIME WE MET WITH THE BOARD, WE GAVE A PRETTY COMPREHENSIVE OVERVIEW OF HOW YAVAPAI COUNTY HAS INVESTED.

THE AMERICAN RESCUE PLAN DOLLARS. THE DATE FOR OBLIGATION IS ALREADY PASSED.

SO WHAT THAT MEANS IS WE'VE ALREADY IDENTIFIED THE PROJECTS THAT YAVAPAI COUNTY IS CONSIDERABLY MOVING FORWARD WITH, AND WITH THE COMPLETION DATE OF ROUGHLY ONE AND A HALF FISCAL YEARS AWAY.

AND SO THIS NEXT YEAR'S BUDGET WE'LL HAVE SOME ARPA PROJECTS IN THERE AND THEN AFTER IN THE FY 27 BUDGET, THAT WILL BE A ABOUT A HALF YEAR OF PROJECTS AS WE CLOSE THOSE OUT.

BUT JUST A REMINDER ARPA IS MOVING AWAY SO SOME OF THOSE ONE TIME PROJECTS WILL BE DONE IN ABOUT A YEAR AND A HALF.

THE THE COMPENSATION STRATEGY IN FY OR IN FY 24 REALLY, WHICH WAS THE OUTGROWTH OF THAT COMP AND CLASSIFICATION STUDY, AS WELL AS MY UNDERSTANDING THE DISCUSSION INTERNALLY AS TO WHAT WAS ONE OF THE CORE NEEDS FOR THE COUNTY, AS DEPARTMENTS ARE MANAGING THEIR RESOURCES AND ONE OF WHICH BEING STAFF.

THERE'S BEEN GOOD INVESTMENTS IN COLA MERIT AS WELL AS BENEFITS OVER THIS TIME PERIOD TO MAKE SURE THERE WAS A KIND OF A THREE PRONGED EFFORT OF NOT LEAVING ONE OF THE THREE BEHIND. AND WHAT WE KNOW RIGHT NOW IS FOR THIS NEXT YEAR, OUR BENEFITS INCREASE WERE PART OF THE YAVAPAI COMBINED TRUST.

AND SO WE'LL HAVE ABOUT A 7% INCREASE IN OUR COSTS GENERAL FUND, THAT'S ROUGHLY ABOUT $1 MILLION, JUST FOR THE BENEFIT SIDE OF IT. SO THIS IS ONE OF THE MAJOR INVESTMENTS THAT WE DO PROVIDE TO OUR EMPLOYEES.

WE DO KNOW WHAT THAT NUMBER IS RIGHT NOW, WE'RE LOOKING AT THE COLA AND MERIT.

COLA WE LOOK ON A ROLLBACK PERIOD IN ORDER TO LOOK WHAT THE INFLATION HAS BEEN FOR THE WESTERN REGION.

SO WE'RE LOOKING AT THOSE FIGURES TO SEE WHAT NUMBERS THAT WE'LL BE BRINGING BEFORE THE BOARD FOR THE THE RECOMMENDED BUDGET, SO. I APPRECIATE THAT INFORMATION. AND IT TOOK A LOT OF WORK, A LOT OF HARD WORK IN THE PREVIOUS BOARD TO GET WHERE WE ARE TODAY FOR THE EMPLOYEES, BECAUSE PRIOR TO THAT, THERE WAS A LOT OF YOU MAY HAVE SOMETHING THIS YEAR AND THEN YOU DON'T GET SOMETHING THE NEXT YEAR.

AND SO AND NOTHING AGAINST THOSE YEARS AND THOSE ELECTED OFFICIALS, THEY WERE DEALING WITH TIMES THAT I WASN'T HERE FOR.

I HAVE NO CRITICISM WHATSOEVER HERE. I'M JUST SAYING THAT I DON'T WANT TO LOSE WHERE WE'RE AT.

I DON'T WANT TO GO BACKWARDS. I DON'T WANT TO LOSE THE HARD WORK.

THE PEOPLE, THE EMPLOYEES, STAFF, ALL OF THIS IS WHAT IT'S ALL ABOUT, IS THE PEOPLE, AND THEY ARE THE VALUABLE PART OF THIS GOVERNMENT. I MEAN, YOU KNOW, THEY ARE WHAT MAKES EVERYTHING TURN.

SO I THIS IS A PRIORITY FOR SURE. WHAT PERCENTAGE OF COMPENSATION IS BENEFITS? GOOD QUESTION. LET ME SEE IF I CAN DO MY QUICK LITTLE NUMBERS.

CAN YOU BALLPARK IT? I WANT TO SAY 20%, BUT LET ME .

YEAH I GUESS AND AND THE DIFFICULTY IN GIVING THE, THE, THE CORE NUMBER IS BECAUSE WE HAVE, WE HAVE DIFFERENT DIFFERENTIAL RETIREMENT RATES I GET IT.

AND SO FOR ASRS FOR EXAMPLE ACTUALLY I SHOULD SAY THANK YOU FOR ASKING THAT QUESTION, LET'S GO TO THE NEXT SLIDE.

AND SO THIS WILL ANSWER SOME OF THAT PROPORTION.

SO THIS WILL TALK ABOUT WELL ACTUALLY THIS WILL TALK ABOUT THE TOTAL OR ABOUT OVER 90% OF THE TOTAL BENEFIT COSTS.

[02:05:06]

SO IN FY 25 IT WAS 12 POINT 12.12 IT'S GOING DOWN TO 11.86.

WHY? WHY ARE THEY GOING DOWN. IS THEIR INVESTMENTS DOING WELL? SO WHAT WE DO WHAT THEY DO IS THIS IS A BLENDED PLAN ACROSS ALL THE DIFFERENT ENTITIES THAT ARE PART OF ASRS.

AND SO ANNUALLY THEY PUT TOGETHER THEIR ACTUARIAL ANALYSIS AND DEPENDING KIND OF A FACTOR MY UNDERSTANDING BECAUSE I DON'T DO A DEEP DIVE INTO THIS, BUT THE GROWTH RATE OF THE PLAN, THE NUMBER OF INDIVIDUALS IN THERE, PLUS HOW HOW WELL THE PLAN IS DOING OVERALL IN THEIR INVESTMENTS THIS LAST YEAR, PLUS ON THE RISK ASSESSMENTS ON AN OUTYEAR BASIS, PLUS SOME OTHER PIECES THEY LOOK TO SEE, WHAT DO THEY NEED TO HAVE TO BE AT A CERTAIN RATE OVER A CERTAIN PERIOD OF TIME.

AND SO AS MORE INDIVIDUALS ENTER THE PLAN, AS WELL AS THE INCREASE IN, IN IN THE INVESTMENTS IN THERE, I THINK IT'S PRIMARILY DRIVEN BY THE INVESTMENTS THIS LAST YEAR AS WE'VE HAD A DECREASE IN THERE.

BUT ANNUALLY IT'S LOOKED AT AND DEPENDING UPON HOW THE ACTUARIAL ANALYSIS COMES OUT, IT WILL CHANGE ON AN ANNUAL BASIS.

GREAT. YEAH. AND THEN SIMILARLY THE CORP IS A SEPARATE PLAN FOR PSPRS.

AND JUST A POINT OF CLARIFICATION I WANTED TO MAKE, THE SHERIFF CORRECTED ME ON THIS AND I APPRECIATE IT SHERIFF, IS WHEN I MENTIONED BEFOREHAND ONE OF THE CORE CHANGE OR PLANS THAT THEY WERE PUTTING FORWARD FOR CHANGE AT THE LEGISLATURE THAT WAS ACTUALLY CHANGING THE DEFINED CONTRIBUTION SIDE, NOT THE DEFINED BENEFIT. I MISSPOKE AND SAID DEFINED BENEFIT SIDE.

SO THAT WOULD CHANGE THAT AT A DIFFERENT RATE.

AND BUT WHAT WE LOOK AT IS SO THIS HAS TIER ONE TWO AND THREE.

AND THIS IS THE TIER THREE WE'RE LOOKING AT. SO FOR NEW INDIVIDUALS THAT COME IN THIS IS ONE OF THE OPTIONS AVAILABLE IS THAT 5% RATE.

AND SO THESE ARE ACTUALLY GOING DOWN FOR TIER ONE AND TIER TWO INDIVIDUALS IN THOSE PLANS, TIER THREE IS FLAT AT THE SAME 5% RATE. AND SIMILARLY PSPRS I REMEMBER WHEN I WAS WHEN I USED TO WORK AT THE COUNTY A NUMBER OF YEARS BACK, WE HAD ONE PLAN, SO IT'S GOTTEN A LITTLE BIT MORE COMPLEX DEPENDING WHEN YOU COME INTO THE SYSTEM.

BUT TIERS ONE THROUGH THREE ARE GOING UP SLIGHTLY.

I BELIEVE IT'S THE NUMBER OF INDIVIDUALS IN THE PLAN PLUS THE INVESTMENT CYCLE, BECAUSE I DID TALK ABOUT THIS WITH ASRS, YAVAPAI COUNTY FOR THE LAST COUPLE OF YEARS. LAST YEAR WE DID NOT DO THIS.

THEY HAVE BEEN BUYING DOWN THE PENSION OBLIGATIONS.

BY DOING THAT THEN IT'S DEFRAYING SOME OF THE LONGER TERM COSTS THAT THE COUNTY BEARS.

SO YOU GET AHEAD OF THOSE COSTS WHEN YOU HAVE DOLLARS AVAILABLE TO PAY IT DOWN, GIVEN THE ELR LAST YEAR, THE EXPENDITURE LIMITATION, THERE WAS NOT A DECISION TO PAY THAT DOWN.

SO THAT WILL BE ONE OF THE THINGS WE'LL BE LOOKING AT SHOULD WE PAY THIS DOWN FURTHER? TO YOUR QUESTION EARLIER, SUPERVISOR KUKNYO OF THE BENEFIT COST BENEFIT OF PAYING DOWN THE PLAN STRUCTURE.

AND THEN LASTLY, THE OTHER PIECE OF THIS IS HEALTH INSURANCE, WHICH MENTIONED THE PREVIOUS SLIDE.

WE USED TO BUDGET $11,000 AN EMPLOYEE. WE'RE LOOKING TO ALMOST $12,000, JUST UNDER $12,000 AN EMPLOYEE, IN ORDER TO MAKE SURE WE'RE COVERING THE FULL COMPLEMENT OF BENEFITS WE CURRENTLY PROVIDE.

AND JUST TO TOUCH TOO ON WHAT CHAIRWOMAN MALLORY SAID IS WHEN WE TALK WITH STAFF, IT WAS ONE OF THE QUESTIONS THAT COUNTY MANAGER THOMPSON ASKED AFTER WE DID THE THE EXECUTIVE LEADERSHIP DISCUSSION ON WHAT'S THE MAIN PRIORITY FOR THE FOR THE STAFF AND THE GROUP CONSENSUS WAS COMPENSATION TO CONTINUE FORWARD WITH THE COMPENSATION PLANNING AND THE INVESTMENTS THAT HAVE BEEN DONE PREVIOUSLY.

LAST BUT CERTAINLY NOT NOT LEAST, IS THIS INNOVATION AND AND EFFECTIVENESS.

LET YOU KNOW IF YOUR STUDY THE SLIDES FROM LAST FROM LAST TIME THIS WAS PRESENTED IN NOVEMBER.

THIS USED TO SAY EFFICIENCY AND IN DISCUSSION ABOUT INNOVATION AND EFFICIENCY.

I THINK ONE OF THE, ONE OF THE, ONE OF THE POINTS TO NOTICE IS EFFICIENCY FOCUSES SOLELY ON COSTS.

IT WILL SAY, OKAY, WHAT DID WE DO LAST YEAR? IF WE DO IT CHEAPER THAT THAT'S BETTER.

AND SO IT DOESN'T HAVE THE FULLNESS OF THE VALUE SIDE OF IT WHICH I BELIEVE EFFICIENCY GETS INTO.

THE THE VALUE OF WHAT WE'RE LOOKING TO LOOK FORWARD WITH AND ALSO THE END USER AS WELL, MEANING THE RESIDENTS.

AND SO IF WE'RE EFFECTIVELY PROVIDING THEM A SERVICE, IT'S MEETING THEIR NEEDS AND EXPECTATION AT THE RIGHT COST AS WELL,

[02:10:06]

AND SO WITH THAT, IT'S AN OPPORTUNITY WITHIN STAFF AND ORGANIZATIONALLY, HOW DO WE THINK ABOUT OUR PROBLEMS DIFFERENTLY SO THAT WE CAN INVEST IN THOSE CORE STRATEGIES WE WANT TO MOVE FORWARD AS AN ORGANIZATION.

NO, IT WAS ON MY NEXT SLIDE IS WHERE IT IS. PETER DRUCKER SAYS EFFICIENCY IS DOING THINGS RIGHT, EFFECTIVENESS IS DOING THE RIGHT THING. AND SO THIS IS ONE OF THE AREAS I THINK IT'S REALLY IMPORTANT THAT WE FOCUS ON WHO AND HOW WE SERVE AND THE VALUE OF THE SERVICE.

IT ALSO TALKS ABOUT OVER TIME. THIS IS THE DISCUSSION TOO, AS WE START, THE MATURATION OF OUR BUDGET PROCESS IS DIGGING MORE INTO WHO WE'RE SERVING.

ARE WE MEETING THEIR NEEDS? HOW MIGHT WE CHANGE PROCESSES? IT TAKES TIME FOR AN ORGANIZATION TO REALLY START FOCUSING ON THIS LEVEL.

SO IT IS A THREE OR 5 TO 7 YEAR CHANGE REALISTICALLY TO START CHANGING YOUR SYSTEMS. BUT I'M EXCITED AS WE MOVE FORWARD INTO THAT, INTO UNDERSTANDING HOW DO WE READDRESS THE SERVICES WE'RE GIVING.

AND ZACK, AS YOU MENTIONED, EFFECTIVENESS BEING DOING THE RIGHT THING.

IS THAT WHAT YOU HAD SAID? PETER DRUCKER SAID, YEAH, YEAH.

OKAY. GOING WAY BACK THE JAIL TAX, THAT WOULD HAVE BEEN AN EFFECTIVENESS BECAUSE WE NEEDED TO DO THAT.

THAT WAS DOING THE RIGHT THING AT THAT TIME, NOT VOTING IT DOWN, BUT SUPPORTING THAT JAIL TAX.

SO BECAUSE WE'RE SITTING HERE NOW, BECAUSE I WAS THERE WHEN WE WERE TRYING TO GET IT PASSED AND WE'RE HERE NOW AND WE'RE STILL IN OUR FACE, WE WOULDN'T BE HAVING TO LOOK AT IT EVERY DAY.

BUT THAT'S NOT YOUR YOU WEREN'T HERE EITHER. SO THE NEXT AREA IS WE'RE REALLY NOT TALKING, WE HAVEN'T TALKED ABOUT MANY FY 26 INITIATIVES, WE'RE REALLY TALKING ABOUT THE CURRENT POSITION OF THE OF THE COUNTY AND SOME OF THE OPPORTUNITIES AVAILABLE HOLISTICALLY. WE FOUND IT IMPORTANT TO TALK ABOUT STRATEGIC PLANNING BECAUSE WE SEE THIS SIMILARLY OF THIS LONG TERM PLANNING PROCESS IS THIS WILL BE A CORNERSTONE OR THE DEVELOPMENT OF WHAT IS OUR NORTH STAR AS A COUNTY.

ESPECIALLY TO ENSURE THAT WE UNDERSTAND THE BOARD'S PERSPECTIVE, THE THE COLLECTIVE PERSPECTIVE, AS WHERE SHOULD WE HEAD AS A AS A BOARD? THERE'S MANY OR AS AS A COUNTY.

THERE'S MANY DIFFERENT OPTIONS AHEAD OF US. AND ARTICULATING THAT, BECAUSE THE ARTICULATION OF THAT WILL THEN HELP STAFF THE ORGANIZATION, MAKE SURE WE ALIGN TO THAT, AND THEN BRING THIS REGULAR DISCUSSION BACK BEFORE THE BOARD OF SUPERVISORS SO WE CAN UNDERSTAND HOW WELL ARE WE MEETING THAT OR NOT, AND HOW DO WE HOW DO WE CONTINUOUSLY KEEP THE FOCUS ON IT AND AND AND ALIGN RESOURCES ACCORDINGLY.

AND SO WE'RE VERY EXCITED ABOUT STARTING THIS THIS PROCESS.

SORRY. PUTTING YOU ON THE SPOT. IS THERE ANY OTHER THING YOU WANT TO ADD TO IT? YES THERE IS, THANK YOU. I JUST WANT TO GIVE THE BOARD AN UPDATE.

WE ARE TALKING TO THREE DIFFERENT FIRMS NOW, TRYING TO FIND A GOOD FIT TO FOLLOW THROUGH ON YOUR DIRECTION THAT YOU ARE IN, INTERESTED, ENGAGED AND ENGAGING IN SOME STRATEGIC PLANNING.

ONE OF THOSE MEETINGS OCCURRED EARLIER THIS WEEK AND WE'VE GOT TWO MORE SCHEDULED, SO WE'RE WORKING ON BRINGING THAT FORWARD TO YOU IN THE NEAR FUTURE.

THANK YOU.

AT THE CALENDAR. AND SO THIS IS JUST A REMINDER OF WHERE WE'RE AT IN THE PROCESS, BECAUSE WE'RE REALLY AT THE END OF THE PREPARED SLIDES FOR TODAY, NOT THE END OF THE DISCUSSION, BECAUSE WE HAVE A QUESTIONS PORTION. AND THERE'S A, THERE'S AN THE LAST ASPECT TO I WANT TO MAKE SURE WE, WE TALK ABOUT ANY INDIVIDUAL REQUESTS OR FOCUS FOR THIS NEXT YEAR'S BUDGET.

BUT WE WILL BE COMING BACK BEFORE THE BOARD ON APRIL 29TH, 30TH AND THE 1ST IN THE NEXT COUPLE OF WEEKS.

WE'LL GIVE YOU MORE REFINED TIMELINE OF WHAT THAT LOOKS LIKE AS WE'RE TRYING TO FIND THE BEST APPORTIONMENT OF TIME AND DISCUSSING THE BUDGET.

AND ONCE AGAIN, THAT WILL NOT BE THE ONLY DISCUSSION IF THERE'S ANY CHANGES AFTER THAT DISCUSSION, THOSE WILL COME BACK BEFORE THE BOARD ON JUNE 4TH, SO YOU'LL SEE A TENTATIVE BUDGET PUT BEFORE YOU.

AND WITH THE EXPECTATION THAT THE DISCUSSION AT THE END OF THAT TENTATIVE BUDGET, WE WILL KNOW WHAT THE BOARD'S INTEREST IS MOVING FORWARD WITH THE FY 26 BUDGET, SO THAT WE CAN HAVE A ADOPTION OF THE BUDGET ON JUNE 25TH.

AND LASTLY, THE PROPERTY TAX LEVY ADOPTION ON AUGUST 30TH, I'M SORRY, AUGUST 11TH.

AND WITH THAT WHAT QUESTIONS OR COMMENTS CAN WE SPEAK TO.

I'M GOING TO REACH OUT TO SUPERVISOR CHECK. DO YOU HAVE ANY QUESTIONS AT ALL?

[02:15:06]

I WAS PRESENT AT THE DECEMBER PRESENTATION, WHICH I THINK INCLUDED A GOOD AMOUNT OF THIS INFORMATION.

IT'S GOOD TO HAVE IT PRESENTED AGAIN. I REALLY APPRECIATE THE THOUGHTFULNESS THAT MR. WOLF'S PUT INTO TO YOU KNOW, CREATING A DIRECTION FOR US AND A WAY TO REALLY SORT OUT OUR VALUES.

I CAN'T WAIT TO GET THAT LARGER DOCUMENT AND REALLY DIG INTO THE SPECIFICS SO THAT WE CAN HAVE A REALLY ROBUST CONVERSATION AROUND EXACTLY HOW WE'RE GOING TO BUILD THE BUDGET.

SO I'M I'M LOOKING FORWARD TO THAT. AND I'M REALLY PLEASED WITH THIS PRESENTATION TODAY.

THANK YOU. THANK YOU VERY MUCH SUPERVISOR. I JUST WANTED TO MAKE SURE THAT SHE HAD HER OPPORTUNITY, SO WHOEVER HAS QUESTIONS. I DON'T HAVE ANY, I JUST ABSOLUTELY APPRECIATE ALL THE WORK.

I KNOW YOU'VE BEEN VERY BUSY FOR MONTHS, MONTHS.

AND SO I SO APPRECIATE EVERYTHING AND AND WE'RE HERE TO WORK WITH YOU AND DO THE BEST WE CAN AS A BOARD.

SO THANK YOU. THANK YOU. THE PROFESSIONAL SERVICES YOU'RE TALKING ABOUT THAT YOU'VE ALREADY MET WITH ONE FIRM THAT'S TO GIVE US A STRATEGIC PLAN AND DO HEAVY LIFTING, WE NEED TO DO AND OKAY, THAT'S THAT'S WHAT I THOUGHT.

AND YOU HAVE TWO OTHERS YOU'RE GOING TO BE LOOKING AT. HOW FAR OUT ARE THEY? OH NEXT WEEK.

NEXT WEEK. OKAY. THANK YOU. THANKS. YEAH. SO THE LAST THING THAT WE WANT TO DO BEFORE WE LET YOU ALL GET AWAY FROM HERE TODAY IS TO OPEN UP THE FLOOR TO ANY INDIVIDUAL, DISTRICT OR INDIVIDUAL SUPERVISOR PRIORITIES THAT YOU MIGHT HAVE THAT YOU WOULD LIKE US TO FACTOR INTO THE BUDGET CONVERSATIONS GOING FORWARD.

OKAY. WELL OBVIOUSLY WELL GURLEY STREET IS IN MY DISTRICT.

BUT WE'RE ALL AGREEING SPEAKING ABOUT GURLEY.

BUT SPECIFICALLY FOR ME IT'S THE FACILITY IN CONGRESS.

WE'VE ALREADY BUDGETED FOR THE ARCHITECTURAL. AND I'VE BEEN WORKING TO BRING THE WICKENBURG HOSPITAL TOGETHER WORKING WITH THE SHERIFF'S OFFICE.

IT'S JUST GETTING THAT MOVING FORWARD. I'D LIKE TO IT'S A SMALL, SMALLER PROJECT.

I'D JUST LIKE TO GET SOMETHING FINISHED. YEAH.

IS WHAT I WOULD LIKE TO DO. THANK YOU, VICE CHAIR.

AND AGAIN, WE CAN TALK MORE ABOUT THAT AT OUR STUDY SESSION ON CAPITAL TOMORROW.

OKAY. THANKS. THANK YOU ZACH. THANK YOU. THERE'S A LOT OF STUFF IN THE WORKS ALREADY RIGHT NOW, I THINK LOOKING AT WHERE WE HAVE OUR SHERIFF'S IN ASH FORK IN THE DOUBLE WIDE THAT'S FALLING APART.

AND I THINK A LOT OF TIMES WE HAVE TO TALK WITH STAFF BECAUSE I, MY THOUGHT WAS TO BUILD SOMETHING IN ASH FORK THAT MULTI AGENCIES COULD USE. BUT THEN WHEN YOU TALK WITH THE PEOPLE THAT DO THE JOB, THEY SAY THAT'S THE WRONG PLACE, PUT IT SOMEWHERE ELSE. WE ARE BEHIND IN A LOT OF THINGS AND WE'RE CATCHING UP.

SO I'M GLAD WE'RE DOING THIS. UP IN SELIGMAN COULD WE HAVE SOME KIND OF SUBSTATION THERE? AND COULD IT BE A SINGLE BUILDING THAT ALSO HELPS THE COURT? THE JP THAT'S UP THERE. AND SOME THINGS THAT YOU GOT TO GET OUT IN THE FIELD AND TALK TO THESE PEOPLE, AND THEN YOU SEE WHAT'S REALLY GOING ON. AND AND SOME OF THEM ARE SO BACKWARDS, THEY'RE ALMOST EMBARRASSING WHEN THE JURY HAS TO USE THE BATHROOM AT THE SELIGMAN COURT, THEY HAVE TO LEAVE THE BUILDING, GO OUTSIDE TO ANOTHER BUILDING JUST TO DO THEIR PERSONAL BUSINESS.

AND I THINK A LOT OF THESE FACILITIES ARE OLDER, AND THE SECURITY CONCERNS NEED TO BE ADDRESSED.

JUST TO KEEP OUR STAFF SAFE IN THE THINGS THAT THEY DO.

I WOULD LIKE TO SEE SOMETHING LIKE THAT IN IN SELIGMAN LOOKED AT MAYBE ONE BUILDING THAT HOUSES BOTH NEEDS . THEY REALLY WOULD LIKE A COMMUNITY CENTER UP THERE IN IN SELIGMAN AS WELL.

BUT MY HOPE IS THAT WE HAVE A PIECE OF DIRT THAT ALREADY HAS UTILITIES KIND OF HOOKED UP TO IT.

AND MY HOPE WOULD BE TO WORK WITH THE COMMUNITY WHERE THEY WOULD BUILD THAT CENTER.

AND, YOU KNOW, THEN YOU HAVE SKIN IN THE GAME, AND THEN YOU MAYBE TAKE MORE PRIDE IN OWNERSHIP AND MAINTAIN IT.

SOMETHING THAT I THINK WE ALL SHARE IS THAT IT'S THESE OUTLYING AREAS THAT HAVE THE BIGGEST NEED.

THE CITIES PRETTY MUCH TAKE CARE OF THEMSELVES.

WE WE GO THERE AS A SUPPORTIVE ROLE. BUT, I MEAN, MARY PROBABLY HAS PRESCOTT VALLEY PRETTY MUCH TAKEN CARE OF WHAT IT WANTS, BUT SHE CAN SUPPORT THEM. YOU KNOW, BROOKS IS PRESCOTT.

I DON'T GET A LOT OF ASK OUT OF CHINO VALLEY, YOU KNOW, BECAUSE THEY'RE PRETTY MUCH DOING THEIR OWN STUFF.

[02:20:01]

BUT I THINK WITH THE WITH I THINK THE LAW ENFORCEMENT WORKS REALLY WELL TOGETHER.

IT SEEMS LIKE OUR SHERIFF'S INTERACT WITH WITH PRESCOTT AND CHINO PD, THEY ALL WORK PRETTY WELL TOGETHER.

AND THEN THERE'S THE OUTLYING THINGS LIKE, I MEAN, WE GOT, YOU KNOW, ADULT PROBATION IN THE HOUSE.

WHAT DO THEY NEED? OUR ATTORNEY. WHAT DOES HE NEED? SO. BUT FACILITY WISE, I THINK THE ONLY THING I'M LOOKING FOR IS POSSIBLY SOMETHING BETTER FOR THE SHERIFFS AND THE COURTS IN SELIGMAN RIGHT NOW.

AND WE HAVE THE HEALTH CENTER COMING UP IN, IN ASH FORK.

AND, YOU KNOW, HOW DO YOU BALANCE THOSE TWO SMALL COMMUNITIES? WELL, YOU KNOW WHAT IF YOU NEED YOUR HEALTH SERVICES, YOU GOT TO GO THIS WAY. BUT IF YOU WANT COURT, YOU GOT TO GO THAT WAY. AND I THINK THE PEOPLE UNDERSTAND THAT THEY'RE HAPPY WITH ANYTHING THAT WE DO.

I MEAN, THE OUTLYING AREAS ARE SO GRATEFUL FOR ANYTHING WE CAN THROW INTO THEM.

SO I THINK THAT'S THAT'S REALLY ALL I HAVE NOW.

AND JUST WORKING WITH I'D LIKE FOR ALL OF US SUPERVISORS TO SHARE THE DIRT TO BLACK EQUALLY BECAUSE I THINK THERE'S NEED IN EVERYBODY'S DISTRICT FOR THAT.

I THINK I DON'T KNOW HOW HOW YOU GUYS GET IT, BUT, I MEAN, TRAFFIC IS ONE OF MY BIGGEST THINGS THAT PEOPLE BRING UP TO ME ALL THE TIME, AND A LOT OF IT IS, IS CONTROLLING WHAT EVERYONE ELSE DOES.

YOU KNOW, WE ALL WANT TO CONTROL WHAT THE OTHER GUY DRIVES. UNFORTUNATELY, WE ONLY HAVE ONE WHEEL IN OUR CAR. BUT WHAT DO YOU GUYS SEE ON THE TRAFFIC THING? WELL, FOR ME, ON THE TRAFFIC, I MEAN IN MY DISTRICT, I DEAL WITH MAINLY PRESCOTT VALLEY, BUT SOME OF MY DISTRICT DOES GO INTO THE CITY OF PRESCOTT. MOST OF THOSE ROADS ARE OWNED BY EITHER THE CITIES, THE TOWN, THE STATE. THOSE ARE ALL MAJOR ROADS THAT THEY HAVE TO MAINTAIN.

I SURELY COULD BRING TO THE BOARD AND ASK TO BE A PARTNER WITH THEM ON THINGS.

BUT THE OTHER PART, WHEN I DEAL WITH THE FOREST AREA, WELL OR EVEN DIAMOND VALLEY, I HAVE ROADS IN THERE THAT WE MAINTAIN. I HAVE ROADS IN THERE THAT ARE COUNTY ROADS, BUT THEY ARE NOT MAINTAINED BECAUSE THEY DIDN'T GET ON THIS ROAD SCHEDULE, IF YOU WILL. IN THE FOREST DEPARTMENT. WELL, THAT'S BECOME QUITE AN ISSUE.

I'VE GOT ROADS THAT ARE COUNTY. I'VE GOT ROADS THAT ARE FOREST.

I'VE GOT ROADS THAT ACTUALLY HAVE THE FOREST AND PERSONAL PROPERTY AND MAYBE THERE'S COUNTY.

I MEAN, YOU KNOW MY DISTRICT IS VERY INTERESTING TO SAY THE LEAST.

I HAVE BEEN ABLE TO DO TWO ROADS, DIRT TO BLACK.

I DON'T HAVE ANY MORE NEEDS FOR THAT, SUPERVISOR KUKNYO.

BUT I'M VERY SUPPORTIVE OF THE NEEDS IN THE OTHER DISTRICT AND WHAT IS THAT PARTICULARLY LOOK LIKE FOR THAT.

SO I HAVE A LOT OF PEOPLE I HAVE TO DEAL WITH WHEN IT COMES TO ROADS.

AND IT REALLY TAKES, LIKE AN ARMY TO COME TOGETHER TO TRY TO FIGURE OUT JUST EVEN A MILE.

SO THAT'S MY SAD STORY. SO, CHAIR, IF I MAY, THEN IN RESPONSE TO SUPERVISOR KUKNYO, IT SOUNDS LIKE A NUMBER OF YOUR ITEMS WE COULD ADDRESS TOMORROW TOO ON THE UPDATE ON THE THE FACILITIES UPDATE.

AND I WOULD REMIND YOU ONE OF THOSE ITEMS IS THE RURAL SERVICES MASTER PLAN, WHICH SHOULD GET TO ADDRESSING SOME OF THE ISSUES YOU HAVE BROUGHT FORWARD.

ON THE SECURITY ISSUE, THOUGH I WILL SHARE THAT THAT HAS BEEN BROUGHT FORWARD IN IN THE BUDGET ASK THAT, ZACH SHARED. ONE OF THEM WAS ADDRESSING SECURITY IN OUR JUSTICE COURTS AND THAT ONE'S VERY IMPORTANT TO ME SO WE WILL BE LOOKING AT I AGREE, WE HAVE SOME SIGNIFICANT CONCERNS THERE. I THINK WE NEED TO NEED TO ADDRESS.

SO I HAVE ONE MORE THING TO SAY, BUT I WANT TO LET THE OTHER SUPERVISORS CHIME IN ON ROADS IF THEY WANTED TO, IT LOOKED LIKE YOU WERE ABOUT TO. WELL, I WAS JUST GOING TO TALK ABOUT THE SAFETY AND AND I HAVE THE SAME ISSUE THAT YOU WERE DISCUSSING BUT IN YARNELL.

SO THAT'S WHAT I WAS JUST GOING TO COME IN AND SPEAK ABOUT.

BUT YOU'VE ADDRESSED IT. I HAVE THE SAME FEELINGS.

SUPERVISOR CHECK. YEAH. THANK YOU. I JUST. I APPRECIATE MAURY BRINGING UP THE RURAL SERVICES MASTER PLAN.

I THINK MY DESIRE IS JUST TO REALLY LEAVE BUDGET CAPACITY, ESPECIALLY FOR THE CAPITAL IMPROVEMENTS OPEN TO OUR PLANNING PROCESS. I THINK THAT THE VILLAGE OF OAK CREEK IN MY DISTRICT IS DEFINITELY ONE THAT LACKS SERVICES, HAS AN AGING POPULATION, AND IS UNINCORPORATED.

ALSO HAS ONE OF THE WORST TRAFFIC BACKUPS IN YAVAPAI COUNTY BETWEEN 179 THEM AND SEDONA.

SO THERE'S

[02:25:10]

BUT I THINK WHAT'S REALLY IMPORTANT AS I THINK SUPERVISOR KUKNYO POINTED OUT, IS THIS NEED TO DEVELOP PARTNERSHIPS SO THAT THE COUNTY IS NOT FULLY ON THE HOOK FOR ALL OF THE SERVICES THAT WE'RE PROVIDING, AND ALSO THAT WE REALLY TRY TO BE CONSERVATIVE.

I THINK WE HAVE TO THINK BROADLY WHEN IT COMES TO RURAL SERVICES AND THESE SMALLER COMMUNITY CENTERS.

AND, AND THE REASON BEING IS ONCE THEY'RE ESTABLISHED, NO ONE WILL WANT TO LET THEM GO.

AND SO WE HAVE TO REALLY MAKE SURE THAT WE HAVE A SUSTAINABLE CAPACITY TO KEEP THEM GOING INTO THE FUTURE SO THAT THERE'S CONSISTENCY.

AND I THINK THE MORE PARTNERSHIPS WE CAN BUILD WITH YOU KNOW NONPROFITS AND, AND MUNICIPALITIES AND AND, YOU KNOW, MEDICAL FACILITIES, HOSPITALS AND WHATNOT, I THINK THAT THAT'S REALLY THE PATH TO SUSTAINABILITY.

SO I'M SURE THAT WE CAN'T BE FULLY COMPREHENSIVE IN ALL OF OUR THINKING, BUT I THINK THE THE PLANNING SESSIONS THAT ARE UNDERWAY RIGHT NOW WILL BE VERY INFORMATIVE. AND I JUST HOPE THAT THERE'S ROOM LEFT OPEN IN THE CIP PROCESS TO ACCOMMODATE THE FINDINGS THERE.

ABSOLUTELY. AND THEN THIS IS JUST MY DESIRE. AND I TALKED ABOUT THE ROADS, BUT MY DESIRE IS TO HELP MY FELLOW SUPERVISORS TO ACHIEVE SOME OF THE GOALS THAT THEY WOULD LIKE TO ACHIEVE.

AND GURLEY WE HAVE THREE TOPICS WE WE'VE DISCUSSED.

IT DOES NEED TO GET REMODELED. I WANT TO SEE THAT GET REMODELED.

AND THEN THIS BUILDING HERE HAS DONE A GREAT JOB FOR ALL THESE YEARS LONG BEFORE I EVER SHOWED UP.

BUT WE NEED TO BUILD COMMERCE OVER HERE SO THAT THAT STARTS MOVING THESE PEOPLE OUT.

WE WE TALK ABOUT ELECTIONS. WE TALK ABOUT A LOT OF THINGS.

AND THEN AS SUPERVISOR KUKNYO, ALONG WITH THE VICE CHAIR COMPTON WORK ON THEIR PROJECTS FROM ONE END OF THE COUNTY TO THE OTHER THAT SERVICES OUR SHERIFF, IT HELPS HIM.

IT I HELPS I KNOW IT WILL HELP THE LIBRARY ALSO WITH THAT, AND OF COURSE HELP WITH MEDICAL NEEDS.

SO MY GOAL IS TO BE SUPPORTIVE AND EMPOWERING THE WHOLE COUNTY AS WE MOVE FORWARD. AND WHEN WE FINISH THIS TERM, WE WILL HAVE COMPLETED GREAT TASKS AND AND HAVE A GREAT START TO THE REST OF THIS STRATEGIC PLAN. MADAM CHAIR, YOU KNOW, ONE ONE RULE THAT I'M DOING MORE AND MORE, WHICH KIND OF SURPRISED ME HOW MUCH IT WAS, IS JUST FACILITATING AND GETTING PEOPLE TOGETHER TO DO THINGS.

YOU KNOW, THE COUNTY JUST DOESN'T HAVE TO PROVIDE IT AND PAY FOR IT ALL.

AND WE HAVE THE COMMUNITY CENTER OUT IN PAULDEN, WHICH IS THE OLD FIRE STATION.

WELL, WE GOT A PRIVATE SECTOR BUSINESS THAT'S DOING FIBER OPTIC TO SOUNDPROOF THEIR BUILDING AND COME UP WITH MONEY TO SOUNDPROOF THEIR BUILDING. AND MAYBE WE MIGHT HAVE TO PROVIDE A LITTLE LABOR TO HANG THESE PANELS.

TRYING TO GET WITH A PRIVATE GUY TO DONATE LAND FOR A PARK.

AND, YOU KNOW, THOSE ONGOING NEGOTIATIONS. AND JUST A SIMPLE THING IS ONE GUY HAD A WHOLE BUNCH OF STREET SIGNS THAT WERE ALL IN THE SHED.

WELL, WE GOT A PRIVATE GUY TO TAKE SOME TO PUT THEM UP IN AN AREA AND OUR STREETS GUY CAME IN AND TOOK THE REST.

THIS WAS MONEY OFF THE COUNTY. IT WAS JUST SITTING IN THE SHED, AND IT WAS PROBABLY THOUSANDS UPON THOUSANDS OF DOLLARS OF STREET SIGN HARDWARE.

AND WHAT I'M REALLY EXCITED ABOUT IS FACILITATING THE ECONOMIC DEVELOPMENT, THE WORKFORCE DEVELOPMENT THAT WE MIGHT HAVE BETWEEN THE COLLEGE AND OURSELVES. I MEAN, A LOT OF THESE THINGS ARE YOU KNOW, I ALWAYS SAY THIS, WE ALL CHARGE THE SAME TAXPAYER, WHY AREN'T WE WORKING TOGETHER BETTER? AND WHEN IT COMES TO WORKFORCE DEVELOPMENT, THAT'S SOMETHING THE COLLEGE DOES,

[02:30:05]

ARE WE GOING TO HAVE AN ADVOCATE FOR THE MOM AND POPS WHEN THEY GO THROUGH THIS? SO THEY CAN NAVIGATE GOVERNMENT BECAUSE THEY DON'T UNDERSTAND GOVERNMENT. AND JUST THE ROLE OF FACILITATION I NEVER THOUGHT WOULD BE THIS BIG, BUT IT'S ACTUALLY SOME OF THE MOST EXCITING THINGS THAT YOU'RE WORKING ON AND HARDEST TO PULL OFF.

WELL, I ABSOLUTELY AGREE BECAUSE, YOU KNOW ABOUT A YEAR AGO, WE HAD THAT MINE MEETING AT THE COLLEGE FOR SENATOR MINE.

I WOULD SAY THAT THAT WAS OVER 700 PEOPLE THAT SHOWED UP AT THAT EVENT THAT NIGHT.

IT WAS UNBELIEVABLE. I WOULD HAVE NEVER EXPECTED THAT, YOU KNOW, BUT THAT FACILITATING THAT MEETING CAME FROM MANY PEOPLE, CAME FROM THE COMMUNITY UP IN THE GROOM CREEK SENATOR AREA, PEOPLE THAT LIVE RIGHT AROUND THAT.

THERE WERE DIFFERENT ORGANIZATIONS, SOCIAL MEDIAS.

MY ASSISTANT, CYNTHIA, YOU KNOW, COORDINATING WITH THE STATE AND GETTING THEM UP HERE.

BUT YOU KNOW WHAT, WHEN YOU GET THAT DONE, IT IS JUST SUCH A GREAT FEELING BECAUSE, YOU SEE, THE COMMUNITY NOW KNOWS THIS IS THEIR HOME AND THEY FEEL IT.

THEY REALLY FELT THEY HAD REALLY BEEN ABLE TO DO SOMETHING.

SO BRING IN THE PEOPLE, FACILITATE THE MEETINGS AND THAT'S HOW WE GROW.

AND, YOU KNOW, YOU BRING UP A GOOD POINT. YOU KNOW THE SENATOR MINE ECOLOGICAL DISASTER THAT THEY THEY DID OUT THERE AND AND WE'RE I DON'T WANT TO SAY UNDER ATTACK BECAUSE THAT PUTS THE WRONG PART TO IT.

BUT YOU LOOK AT THE MINE THAT WAS TO GO INTO CHINO VALLEY, RIGHT IN THE MIDDLE OF A RESIDENTIAL NEIGHBORHOOD.

YOU LOOK AT THE NATURAL GAS PIPELINE, WHERE THEY WANT TO PUT A COMPRESSOR STATION RIGHT NEXT TO HOMES.

JUST LAST NIGHT, CHINO VALLEY STOPPED THE SOLAR FARM THAT WAS GOING TO GO OUT THERE, IT WAS 5,000 ACRES IN BETWEEN.

AND WE WE REALLY THE PEOPLE REALLY NEED AN ADVOCATE.

AND WHEN THE PEOPLE ALL GOT TO SPEAK LAST NIGHT AT THE CHINO VALLEY MEETING, I WAS WALKING OUT AND THE GUY WAS STANDING OUT THERE AND HE SAID, THIS IS THE WAY GOVERNMENT SHOULD WORK. YOU KNOW, AND HE JUST SAID THAT AND THAT JUST THAT KIND OF STUFF GETS ME I'M A SOFTY, TOO. YEAH, IT'S ALL ABOUT PEOPLE. YEAH. WELL, I'M GOING TO SAY WITH THAT NOTE WE HAVE CONCLUDED AND I LOOK FORWARD TO THE NEXT STEP.

THANK YOU CHAIR, VICE CHAIR, AND MEMBERS OF THE BOARD FOR YOUR TIME TODAY. IT'S GREATLY APPRECIATED. THANK YOU.

* This transcript was compiled from uncorrected Closed Captioning.