* This transcript was created by voice-to-text technology. The transcript has not been edited for errors or omissions, it is for reference only and is not the official minutes of the meeting. [00:00:05] IT IS KIND OF LIKE MEETING IN A CHURCH. SO IF THAT'S THE CASE, JUDY, AND THIS, THIS IS OUR CHOIR, AND WE ARE VERY GOOD CHOIR. WELL ALL. SHE MAY GIVE YOU A CHANCE TO PERFORM. YEAH. AL PLAYS PIANO. I KNOW THAT'S RIGHT. HE DOES. WE HAVE A PIANO. SEE PIANO. SO WE'RE JUST ALL SET. CONGREGATION IS A LITTLE SPARSE, BUT AND THEY DON'T LIKE TO SIT. YEAH. BUT THEY, THEY LOOK LIKE A TRUE BAPTIST CROWD. PASS THE PLATE GONNA BE KIND. NOT UP. THEY AIN'T GONNA HAVE MUCH IN THERE. NO, THAT'S RIGHT. ALRIGHT, WE'LL, UH, STAND AND JC WOULD YOU GIVE THE INDICATION, FATHER, COME. THANK YOU. WE THAT THIS COUNTY FATHER, WE ACTUALLY LOOK DOWN THE FAMILY THAT WAS IN THE TORNADO. LOOK DOWN ON THE, THAT I BE WITH THEM AND WE ACTUALLY, THEY MAY HAVE A BACK HOME. ALL THIS SON ALLEGIANCE TO FLAG THE UNITED STATES OF AMERICA, THE REPUBLIC FOR WHICH IT STANDS FOR THE NATION. HONOR GOD, INDIVISIBLE, WITH LIBERTY AND JUSTICE. FOR ALL HONOR. HONOR THE TEXAS FLAG ALLEGIANCE TO BE TEXAS, ONE STATE AND INDIVISIBLE. A BETTER I LIKE PLACE. WE'LL JUST TAKE OVER ALL. WE HAVE ANYBODY HERE THAT WISH WISHES TO, UH, ADDRESS THE COURT. I BELIEVE WE DO HAVE, UH, JIMMY WHITLEY, I BELIEVE. YES. I'M, UH, CR WHO WISHES TO, UH, TALK TO US ABOUT THE SIGNAGE INSTALLED ON LER ROAD, STITZEL ROAD, MISS COUNTY ROAD 2 63, LIKE ADDRESS C GLAD TO HAVE YOU. WHERE DO I STAY? ? WELL, IT IS RIGHT UP THERE. PRETTY GOOD. YOU CAN BE THE MUSIC DIRECTOR. HE LOOKS LIKE JOHNNY CASH. , UH, BROUGHT A COUPLE THINGS UP. I DIDN'T BRING QUITE ENOUGH. I'LL WE, UH, THE, THE SUBJECT I'VE GOT IS NOT ON TODAY'S AGENDA, BUT YOU AGREED TO LET US JUST GO AHEAD AND SPEAK ABOUT IT. MY, UH, LIKE TO VOICE MY CONCERN WITH THE COMMERCIAL TRAFFIC ON VILLE ROAD, UH, DEGRADING THE ROAD CONDITIONS AND, UH, CAUSING SAFETY ISSUES. UM, THE TX TRUCKS, UH, THEY WERE, I COUNTED SIX IN ONE ONE MORNING WHILE I WAS THERE ON SATURDAY MORNING. SINCE THEN, MR. CLARK HAS ASKED HIM TO NOT USE THAT ROGUE AS A SHORTCUT BETWEEN TWO, UH, 1 48 AND 1 75. AND, AND THAT'S KIND OF, I HAVEN'T SEEN ANY SINCE THEN. AND THERE'S A NUMBER OF ROCK HAULERS AND, AND THINGS LIKE THAT COMING UP AND DOWN THERE. SO I'D LIKE TO REQUEST THAT, UM, THAT THEY PUT, UH, A, A WEIGHT LIMIT OR SOME NO TREE TRUCK THROUGH TRUCK SIGNS OR, OR, UH, ANYTHING LIKE THAT THAT WOULD, UH, PREVENT, UH, THE HEAVY TRAFFIC FROM COMING DOWN THERE. UH, IF YOU CAN LOOK AT THE PICTURES THAT I'VE DROPPED, UH, UH, YOU CAN SEE THAT THE SURFACE ON THIS ROAD IS LESS THAN A YEAR OLD. AND, UH, THE PATCH WORK ON IT ALREADY IS, IS, IS PHENOMENAL FOR, FOR SURFACE, NOT THAT OLD. AND I, I BELIEVE IT'S BECAUSE OF THE, UM, SUBSTRATE AND, UH, THE THICKNESS OF THE ROAD AND THINGS LIKE THAT. BUT THEY, THEY JUST CAN'T HANDLE THOSE WEIGHTS. AND THERE'S THREE ROADS WHERE THEY, THEY TEND TO CONGREGATE TO GO OUT THROUGH TO 1 75 IS A STITZEL AND, UH, BUD STORY COMING BACK. AND, UH, FREIGHT SHAFT, DEPENDING ON WHICH WAY THEY CUT THROUGH, UH, ON 1 48, THEY NARROWED DOWN SOME OF THE BRIDGES TO ONE LANE SO THAT THEY COULD, UH, REPAIR 'EM AND WORK ON. AND I GUESS THEY DECIDED THIS IS A QUICKER WAY TO GET THROUGH. UM, I'D LIKE A SUGGESTION OF THE SIGNAGE FOR THE WAY, OR, OR HOWEVER, AND, AND BE ON ALL THREE OF THOSE ROADS TO, UH, TO MAKE SURE THAT THEY DIDN'T TURN IN FROM ANY, ANY DIRECTION. AND, UH, THAT'S WHAT I'VE BEEN, UH, COMMUNICATING WITH MR. UH CLARK ABOUT. AND WHILE I WAS HERE, I WAS GONNA THROW OUT ANOTHER THING ABOUT THE, THE SPEED LIMIT THAT MAYBE PERHAPS GETTING IT REDUCED A LITTLE BIT BECAUSE, UH, I THINK [00:05:01] THE PEOPLE ON THEIR WAY TO THE, UH, RACETRACKS, UH, THINK THEY'RE ALREADY ON THE RACETRACK OR SOMETHING. SOMETIMES THEY'RE GOING DOWN THERE REALLY, REALLY QUICK. SO WHATEVER, WHATEVER COULD BE DONE FOR THAT. AND I APPRECIATE IT. THANK YOU VERY MUCH. THANK YOU. THANK YOU. AND, UH, WELL WE'RE, WE'RE WORKING ON A, UH, OUR ATTORNEY IS WORKING ON AN OVERALL POLICY FOR THE COUNTY WHERE MAYBE SOME OF THESE ISSUES WILL BE, UH, ADDRESSED AND WE HOPE TO DO SOMETHING ON THAT FAIRLY SOON. NOT ONLY IN YOUR AREA, BUT FOR THE COUNTYWIDE AS WELL. SO WE'RE, UH, THERE'S A PROBLEM. OKAY. SO WE'LL TRY TO, TRY TO GET, GET MOVING ON THAT. I APPRECIATE IT. ALRIGHT. THANK YOU FOR BEING HERE. TAKE YOUR TIME. GOOD PRESENTATION. ALRIGHT. I WOULD LIKE YOUR INDULGENCE. OUR DA HAS, UH, UH, SOME WORK GOING ON AT THE DA'S OFFICE THAT HE'S ASKED TO BE MOVED UP ON. AND SO I'D LIKE TO MOVE ITEMS 13, 14, AND 15, UH, TO THE, UH, FRONT OF THE AGENDA SO MY CAN GET BACK AND TAKE CARE OF CRIME FIGHTING IN CAMAN COUNTY. ITEM 13 IS TO DISCUSS AND ACT ON PROCLAIMING THE WEEK OF MAY THE 16TH THROUGH MAY THE 20TH AS NATIONAL POLICE WEEK IN COFFEE COUNTY. UH, JUDGE, THAT IS, UH, ONE OF THE THREE REASONS THAT I'M HERE TODAY. THE, UH, UH, WE'RE ASKING FOR, UH, CONSIDERATION OF, UH, PROCLAMATION OF, UH, NATIONAL POLICE WEEK WILL BE, UM, MAY THE 16TH THROUGH THE 20TH, UH, 2011. OKAY. I BELIEVE YOU HAVE THE PROCLAMATION THERE FOR. ANYBODY HAVE ANY QUESTIONS ABOUT THAT? NO. I'LL ENTERTAIN A MOTION FOR YOU APPROVE. SECOND COMMISSIONER UNION SECONDS. COMMISSIONER CLARK MAKES THAT MOTION. ANY DISCUSSION? ALL IN FAVOR SAY AYE. AYE. THOSE POSTS. ALRIGHT. ITEM 14 IS TO DISCUSS AND ACT ON PROCLAIMING THE DAY OF MAY THE 19TH AS PEACE OFFICER'S MEMORIAL DAY IN KAMAN COUNTY. UH, UH, YES, JUDGE, THAT'S THE, UH, THE SECOND MATTER THAT I'M HERE ON. I'M ASKING THE COMMISSIONERS TO PROCLAIM, UH, PEACE OFFICER MEMORIAL DAY. UH, NEXT, UM, I BELIEVE IT'S THURSDAY, MAY THE 19TH, 2011. OKAY. ANYBODY HAVE ANY QUESTIONS ABOUT THAT OR ANY COMMENT? COMMISSIONER UH, JACKSON MAKES UP MOTION COMMISSIONER, UH, ROUTING SECOND MOTION. ANY OTHER DISCUSSION? ALL IN FAVOR SAY AYE. AYE. THOSE POSTS? ALRIGHT. ITEM 15 IS TO DISCUSS AND ACT ON CLAIMING THE DAY OF MAY THE 20TH AS LAW ENFORCEMENT APPRECIATION DAY IN KAUFMAN COUNTY. UH, JUDGE, THAT IS THE THIRD MATTER THAT I'M HERE ON, UH, UH, AGAIN ASKING THE COMMISSIONERS TO, UH, EXCUSE ME, TO, UH, UH, DECLARE, UH, MAY THE 20TH, 2011 AS, UH, LAW ENFORCEMENT APPRECIATION DAY. THAT MEAN WE'RE GONNA HAVE A, LIKE A BIG LUNCH OR STEAK DINNER OR SOMETHING THAT DAY, OR, UM, NEARLY, NEARLY. OKAY. IT ALWAYS HEIGHTENS, UH, MY CURIOSITY IS THERE IS GONNA BE A FISH FRY SOMEWHERE OR ANOTHER, SO, OH, YOU KNOW WHERE THAT IS? OKAY. ALRIGHT. WE HAVE A MOTION TO ACCEPT. COMMISSIONER DEN MAKES THAT MOTION. UH, COMMISSIONER CLARK SECONDS. ANY OTHER DISCUSSION? ALL IN FAVOR SAY AYE. AYE. AYE. I'D LIKE TO THANK MICHAEL, BRING THIS CHARGE. WE WE'RE GLAD TO DO THIS. ABSOLUTELY. AND THANK YOU VERY MUCH. YEAH. APPRECIATE IT. MAKING IT PUBLIC. THANK YOU. GOOD, GOOD WAY TO RECOGNIZE THE FOLKS THAT, UH, TAKE CARE OF US AND, UH, THEY, WE, WE EVEN HAVE A REPRESENTATIVE, UH, AMONGST US HERE. YES, WE DO. GOOD, THANK YOU VERY MUCH. THANK YOU. ALRIGHT, ANY, ANY OTHER QUESTIONS BEFORE THE DA GETS OUTTA THE WAY? ALRIGHT, UH, I DO HAVE AN UPDATE ON COLLECTION, OR I THINK YOU HAVE A COPY OF THE UPDATE ON COLLECTIONS OF FINES AND FEES FROM THE CONTRACT THAT IS NOW OPERATIONAL WITH LINEBARGER, NOT KELO. I THINK YOU'VE BEEN KNOWN A LONG TIME, LINEBARGER GRAHAM, WHATEVER THE FULL NAME IS. AND THIS IS THE, UH, COLLECTION FOR THE MONTH OF APRIL, AND IT SHOULD BE BEHIND ITEM NUMBER ONE IN YOUR AGENDA PACKAGE. SO WE COLLECTED A LITTLE OVER ABOUT 36, A LITTLE OVER $36,000 DURING THE FIRST MONTH. NOW THIS IS IN ADDITION TO THE REGULAR COLLECTIONS THAT ARE GOING ON IN THE COMMISSIONER'S COURT. SO FOR THAT FIRST MONTH, YOU CAN SEE THE, THE DIFFERENT PRECINCTS. OBVIOUSLY PRECINCT THREE IS, I MEAN, THEY HAD A VERY GOOD MONTH. AND, UH, COMMISSIONER, UH, I SAY COMMISSION PRECINCT THREE, PRECINCT ONE, PRECINCT TWO ARE RUNNING PRETTY [00:10:01] CLOSE. AND THEN PRECINCT FOUR, UH, A LITTLE BEHIND, BUT THEY HAD A SMALLER AMOUNT TO COLLECT TO BEGIN WITH, IF YOU REMEMBER CORRECTLY. BUT I JUST THOUGHT YOU MIGHT SEE WHAT OUR FIRST FULL MONTH OF COLLECTIONS IS. YEAH, THAT GOOD. AND, UH, I'M NOT SURE WHETHER JEFF IS HERE THIS MORNING OR NOT. HE, UH, I'D SAID SOMETHING TO HIM ABOUT IT AND HE WAS, I THINK I TRY TO BE HERE, BUT, UH, THE, THE PROCESS IS CONTINUING. AND SO THAT'S, THAT'S, UH, A GOOD BIT OF WORKFORCE. WHY, WHY IS THE PRECINCT THREE SO MUCH GREATER? THEY WERE SO, THEY WERE SO FAR BEHIND TO BEGIN WITH. NO, I THINK THAT THEY DO PRECINCT THREE BECAUSE OF THE INTERSTATE AND US USAID, THEY, THEY DO ISSUE A LOT OF, A LOT OF TICKETS AND, UH, AND I'M SURE THEY HAD SOME THAT HAD NOT BEEN COLLECTED. I THINK PRECINCT TWO WILL SOON PROBABLY, AND, AND RAY YOU MAY WANT TO SPEAK TO THAT, BUT I THINK THEY WILL, THEIR, THEIR PROCESS IS THEIRS WAS ABOUT TWO OR THREE WEEKS BEHIND BECAUSE OF, UH, THE DELAY OF THE LETTER GOING OUT. AND I DO BELIEVE THAT THEIRS WILL PROBABLY COME UP QUITE A BIT TOO. IS THAT YOUR UNDERSTANDING? THE REASON I HAVE, I'VE SEEN IN THE PAST PRECINCT, YES. I JUST WONDER, AND I THINK THAT'S A GOOD QUESTION, BUT I DO THINK IT'S BECAUSE THEY ISSUE A LOT OF, A LOT OF TICKETS OVER THERE. THEY DO A LOT OF TICKETS AND THEN THERE WAS, UH, SOME ISSUES, UH, SUPPOSEDLY THAT, UH, THE HIGHWAY PATROLS WOULD PREFERRED TO DO THEIR TICKETS AND PRECINCT THREE AS OPPOSED TO SOME OTHER PRECINCT BECAUSE THE SERVICE THEY WERE GETTING OVER THERE AND SO LOT TICKETS OVER THERE. SO THEREFORE THERE WILL BE PROBABLY MORE COLLECTIONS FROM THREE BECAUSE THERE WAS MORE ACTUAL BUSINESS GOING THAT WAY. AND MAN, MIKE HAS DONE A GREAT JOB OVER COLLECTING, BUT THEY HAD, THEY HAD MORE TO COLLECT. IT'S NOT THAT WE'RE BEHIND THAT PART, IT'S HAD THAT MUCH MORE BUSINESS. RIGHT. I MEAN'S NO REFLECTION ON THEM BEING BEHIND ON COLLECTING THEIR TICKETS. IT'S JUST INDICATION HOW MANY MORE TICKETS WERE WRITTEN OVER THAT. YEAH. BECAUSE OF HIGHWAY INTERSTATE 20. SO THAT'S GOOD NEWS. THAT'S, I MEAN, THAT'S 35,000 MORE THAN WE HAD. THAT'S EXACTLY WHAT I WAS GONNA SAY. THAT'S 36,000. IF WE DIDN'T HAVE THAT'S RIGHT. AND WE WOULDN'T HAVE IT. WE HADN'T THIS. THAT'S EXACTLY RIGHT. AND IN THAT VEIN, LET ME GIVE YOU ANOTHER BIT OF ANNOUNCEMENT. AND I THINK I'VE MENTIONED TO YOU INDIVIDUALLY, UH, THAT, UH, THE COLLECTIONS DEPARTMENT, WHICH HAS BEEN A SELF-STANDING DEPARTMENT, UH, THAT, UH, JUDGE WILEY HAD BEEN OVERSEEING, UH, UH, OUR COUNTY CLERK HAD COME FORWARD AND, UH, VOLUNTEERED TO TAKE BACK OVER THE COLLECTIONS OF, OF THE, UH, COLLECTION OF, OF THAT OFFICE. AND SO IN THE PROCESS OF DOING THAT, AND THAT IS A WORK THAT IS VERY MUCH IN PROGRESS RIGHT NOW. UH, BY LAW SHE, UH, SHOULD COLLECT THE COUNTY COURT CASES ANYWAY, BUT SHE HAS AGREED TO, UM, ACCEPT, UH, JUST TO INHERIT THAT OFFICE AND, UH, THAT IS GOING ON THIS WEEKEND. AND SO, UH, THAT WILL BE, UH, WE BY LAW, WE HAVE TO HAVE A COLLECTIONS DEPARTMENT, BUT IT DOES NOT HAVE TO BE A STANDALONE DEPARTMENT. SO, UH, IT'LL BE, UH, CONSUMED BY HER OFFICE AND IT WILL ELIMINATE THREE POSITIONS, UH, THAT FARM. WERE COUNTY EMPLOYEES. AND SO THAT WILL ULTIMATELY WIND UP SAVING US SOMEWHERE AROUND $150,000, MAYBE, MAYBE A LITTLE MORE THAN THAT, BUT THAT, THAT WILL HELP OUR BUDGET FOR THE REMAINDER OF THIS YEAR PLUS ELIMINATING THOSE POSITIONS. YEAH, THAT'S GREAT. THERE'S A, UH, IN THAT, THERE'S A HOUSE BILL COMING FOR DEBATE FOR BOTH TOMORROW. I DON'T KNOW THE NUMBER OF IT THAT'S GOING TO POSSIBLY RELIEVE A LOT OF REQUIREMENTS ON HAVE COLLECTION. OH, REALLY? I'VE NOT HEARD THAT. UH, THEY'RE GONNA MAKE IT, UH, DISCRETIONARY MANDATORY. YES. SO THAT COULD, COULD BE THAT OUR COLLECTION DEPARTMENT NOT BE OUTSIDE OF LAW FIRMS, BUT WE'LL KEEP AN EYE ON THAT AND SEE HOW THAT, HOW THAT TURNED OUT DOWN THERE. BUT IT'S DUE FOR A VOTE TOMORROW. THIS WAS ONE OF THOSE UNFUNDED MANDATES THAT CAME ALONG SEVERAL YEARS AGO. AND SO ANYWAY, I APPRECIATE LAURA DOING THAT AND WE'RE LOOKING FORWARD TO, TO ELIMINATING THOSE POSITIONS AND SAVING THAT, UH, THAT MONEY. UH, THE OTHER ITEM I HAD, I THINK I HAD SENT ALL OF YOU, DID YOU GET A COPY OF OUR PRELIMINARY VALUES FROM CHRIS PEACE, THE APPRAISAL DISTRICT? I THINK WE SENT YOU A COPY OF THAT. I DON'T HAVE IT ON THE AGENDA BECAUSE IT'S JUST, IT'S A WORK IN PROGRESS, BUT I TALKED TO CHRIS FRIDAY AFTERNOON AND WE DO, UH, WE, UH, UH, OUR VALUES ARE UP ABOUT, UH, [00:15:01] 1% FROM WHERE THEY WERE LAST YEAR, BUT WE'VE STILL GOT SEVERAL OF THE COMMERCIAL VALUES. IF YOU READ HIS COVER LETTER, YOU'LL NOTICE THAT WE HAVE SEVERAL, AND I THINK THERE'S ABOUT 75 INDUSTRIAL AND COMMERCIAL VA VALUES THAT ARE, THAT ARE STILL, UH, A WORK IN PROGRESS. AND THOSE, UH, UH, WHAT THEY'VE DONE ON THOSE, THEY'VE JUST PUT THE 2010 VALUE IN THE PRELIMINARY ROLE. AND THEN AFTER THE HEARINGS WERE HELD ON THESE, UH, UH, UH, 75 INDUSTRIAL AND COMMERCIAL PROPERTIES THAT WILL FINALLY WIND UP WITH A, WITH A FINAL VALUE THAT, SO JUST WANTED INFORMATION. WELL, AND I BELIEVE, UH, ANOTHER ANNOUNCEMENT I HAD IS, IS THAT, AND WE WILL SERVE TO POST THIS, OBVIOUSLY OUR NEXT COMMISSIONER COURT WILL BE ON MONDAY, MAY THE 23RD, UH, AT NINE 30 WE WILL BE BACK IN OUR REGULAR MEETING LOCATION, UH, FOR THAT MEETING. BUT THAT AFTERNOON WE WILL HAVE A REDISTRICTING WORKSHOP AT 2:30 PM IN THE SHERIFF'S DEPARTMENT TRAINING ROOM WHERE WE MET LAST TIME, WHERE WE HAVE THE EQUIPMENT TO DO THAT, THE INTERACTIVE, UH, UH, CAPABILITIES WITH THE LAW FIRM THAT IS ASSISTING US ON THAT. AND SO YOU MIGHT WANNA GO AHEAD AND PUT THAT DOWN. IT'D BE AT TWO 30, MONDAY, MAY THE 23RD AT THE SHERIFF'S DEPARTMENT. AND JACK, I BELIEVE YOU HAD SOMETHING YOU WANTED TO RAISE, JACK, THAT YOU WANTED TO SHARE WITH AS WELL. YOU KNOW, I JUST WANT TO GIVE YOU A COPY OF THE, UH, FACTS I SENT THE TAG LAST WEEK, UH, REGARDING HV ISSUE AT THE COURTHOUSE. NOT GOOD. THANK YOU. THIS IS IN REGARDS TO THE AIR CONDITIONING UNIT AT, ON TOP OF THE COURTHOUSE. THAT'S ONLY WORKING PARCEL. THEN WE'RE HOPING THAT OUR INSURANCE, AND I THINK HE'S STILL PRETTY, FEEL PRETTY GOOD THAT OUR COVER THE COST OF, UH, REPLACING THAT. ALRIGHT, THE NEXT ITEM IS THE CONSENT AGENDA. YOU HAVE COPIES OF THAT, UH, MINUTES. THE, UH, APPROVAL OF, UH, OUR DISSERTATION OF DAVID R ADAM FROM THE, UH, THE SHERIFF'S DEPARTMENT. ITEM C IS TO DISCUSS, UH, OR ACT ON THE RESALE OF, UH, LOT ONE 10 BREEZY HILL EDITION IN PRECINCT THREE. ALSO, UH, UH, LOTS. THE ITEM NUMBER D IS LOTS, UH, RESALE OF LOTS, TWO AND THREE, LOT 39, TERRELL ORIGINAL AND PRECINCT THREE. AND THEN ITEM FOUR IS, UH, DISCUSS AND ACT ON APPROVING REQUEST FOR CENTRALS TO INSTALL BURIED COMMUNICATIONS. DROP ALONG AND UNDER THE RIGHT OF WAY COUNTY ROAD 40 57, COUNTY PRECINCT NUMBER FOUR, APPROVE ALL. COMMISSIONER CLARK, UH, MAKES THAT MOTION. COMMISSIONER ROBIN, I FORGOT YOUR NAME. UH, SECOND THAT MOTION. ANY OTHER DISCUSSION? ALL IN FAVOR SAY AYE. AYE. OPPOSED? OPPOSED. AHEAD. WATCH. ALL RIGHTY. ITEM NUMBER THREE IS, UH, HAL JONES TO PRESENT THE, UH, AUDITOR'S REPORT FOR APRIL, 2011. THANK YOU, GENTLEMEN. I HAVE IT RIGHT HERE WITH YOUR PERMISSION. I'LL JUST GIVE IT TO OKAY. PUT THAT IN OUR OFFICE AND IF ANYBODY, UH, UH, NEEDS TO SEE IT, FEEL FREE TO COME BY AND, AND YOU'RE WELCOME TO REVIEW IT THERE. ALL RIGHT, JOHNNY CON COUNTRYMAN TO PRESENT THE TREASURER'S REPORT. UH, DID WE VOTE ON YOUR REPORT OR JUST, UH, PARDON? USUALLY I DIDN'T. UH, YOU. ALRIGHT. WE NEED A MOTION TO ACCEPT, UH, HOUSED REPORT. I MOVE THAT. MR. MANNING. MR. JACKSON, SECONDS. ALL IN FAVOR SAY AYE. A A. THOSE OPPOSED? ALRIGHT. [00:21:23] ANYBODY HAVE ANY, WE NEED TO APPROVE THIS AS WELL. ANYBODY HAVE ANY QUESTIONS? EVEN THOUGH JOHNNY'S NOT HERE, WE HAVE THE REPRESENTATIVE FROM HIS OFFICE. ANYBODY HAVE ANY QUESTIONS? I BELIEVE WE HAVE THE QUARTERLY REPORT AS WELL AS THE, UH, MONTHLY REPORT. OKAY. COMMISSIONER ROBIN MOVED. WILL YOU ACCEPT THE REPORT? UH, THE MONTHLY REPORT. MR. JACKSON SECONDS. ANY OTHER DISCUSSIONS? ALL IN FAVOR SAY AYE. A AYE. UH, THOSE OPPOSED? ITEM NUMBER, UH, SIX IS THE, UH, TO PRESENT AND ACCEPT THE TREASURER'S INVESTMENT REPORT FOR THE QUARTER ENDING MARCH 3RD. FIRST 2010. MOVE. ACCEPT THAT QUARTER REPORT. SECOND CLARK MAKES THE MOTION. COMMISSIONER MANNING SECONDS. ANY OTHER DISCUSSIONS? ALL IN FAVOR SAY AYE. AYE. VOTE OPPOSED? ITEM NUMBER SEVEN IS TO DISCUSS AND ACT ON AWARDING BILL 11 DASH OH FOUR SIX. WE JUST DID, DID WE, I THINK WE VOTED ON BOTH OF THEM, DIDN'T WE? THERE'S THREE OF THEM. YEAH. THERE'S A MONTHLY REPORT, A QUARTER REPORT AND OKAY. I'M SORRY. WE SKIPPED FIVE. WE SKIP FIVE PLACE I THINK PUT OR, SO IT KIND OF COMPLICATED WITH ALL THREE? YEAH, THERE AT ONE TIME. ALRIGHT, HOW ABOUT ITEM FIVE? DO WE HAVE A MOTION TO ACCEPT? I'LL MAKE THAT MOTION. COMMISSIONER ROWDEN MAKES THE MOTION. MR. JACKSON. SECOND. ALL IN FAVOR? A OVER OPPOSED? ALRIGHT, NOW ITEM SEVEN. SORRY ABOUT THAT GENTLEMEN. WE HAVE ONE BID, UH, FROM TXI IN OF PER TON. AND ALTHOUGH WE ONLY HAD ONE BID, UH, I'D LIKE TO POINT OUT THAT WE, WE INVESTIGATED AARY WRITING IN THE STATE OF TEXAS CONTRACT AND WE RECEIVED BETTER PRICE THAN THE STATE MATERIAL. SO I WOULD RECOMMENDATION TO AWARD THAT TO ANYBODY HAVE ANY QUESTIONS? I'D LIKE THAT MOTION. MR. MANNING MOVES TO APPROVE. DO WE HAVE A SECOND? MR. CLARK? UH, SECONDS. ANY OTHER DISCUSSIONS? ALL IN FAVOR SAY AYE. AYE. THOSE POSTS I SIGN. ITEM NUMBER EIGHT IS A PLAN, A CAMAN COUNTY IMPLEMENTATION PLAN FOR LOCALLY ENFORCED MOTOR VEHICLE. I, UH, IDLING LIMITATION RULE. AND, UH, THIS IS, UH, PART OF A GRANT THAT WE'RE TRYING TO RECEIVE FROM THE COUNCIL OF GOVERNMENTS THAT THE SHERIFF'S OFFICE IS PUTTING FORWARD. BUT FOR US TO BE ABLE TO MOVE WITH THAT GRANT, THE APPLICATION, WE HAVE TO, UH, UH, ACCEPT THIS, UH, IMPLEMENTATION PLAN AND I THINK IT'S, UH, ENGINE. AND YOU SAY THIS WAS ONE THAT WE'VE HAD IN THE PAST OR THAT WE MAYBE SHOULD HAVE APPROVED EARLIER. WE [00:25:02] . OKAY. NOW WE'RE READY TO READY TO MAKE YEAH, WE WERE, WE WERE REQUIRED THERE TO ENTER INTO A MEMORANDUM OF UNDERSTANDING WITH TWO CQ BACK IN OH EIGHT, I BELIEVE TO DO THIS BECAUSE IT'S NOT JUST RANCH FOR SHERIFF'S OFFICE. A LOT OF OUR GRANTS WILL BE CONT ON WHETHER WE'RE DOING THIS OR NOT. PLUS, IT'S A GOOD IDEA. YEAH, IT IS A GOOD IDEA. IT'S GONNA BE KIND OF A PAIN TO ENFORCE. OH YEAH. BUT IT'S A GOOD IDEA THAT WE NEED TO REMOVE COMMISSIONS OR DID WE HAVE A MOTION TO APPROVE? COMMISSIONER DEN MAKES THAT MOTION. WE HAVE A SECOND. SECOND, MR. MANNING SECONDS. ALL IN FAVOR SAY AYE. AYE. THOSE OPPOSED? ALL RIGHTY. ITEM NUMBER NINE IS TO DISCUSS, ACT AND REVIEW DANEN BAUM ENGINEERING CONTRACT FOR SERVICES WITH ROCK SOLID STONE QUARRY TO BE DEVELOPED AND PROCEED WITH A REVIEW AND FINAL APPROVAL OF ANY PLANS BY KAUFMAN COUNTY OR A DESIGNATED REPRESENTATIVE. YEAH, JUDGE, THAT'S FOUR. AND UH, I THINK JUST ASKING FOR PERMISSION GO AHEAD AND, UM, MR. PAN SEEM, HE DON'T SEEM TO HAVE A PROBLEM DOING IT, BUT THEY NEED OPPOSITION TO GO AHEAD AND EVERYTHING IS WE WOULD, EVERYTHING. I THINK ANYBODY YOU HAVE SOMEBODY REPRESENTATIVE FROM DAN? YES, SIR. I DUNNO IF YOU WANNA SPEAK ON IT. UH, BASICALLY, UH, YEAH, COMMISSIONER SAID IS ABSOLUTELY CORRECT. UM, WHAT WE'RE, WHAT WE'RE WANTING TO DO IS BE ABLE TO, WE, WE DISCUSSED WITH, UH, MR. PAN COOK AND UH, AND UH, BASICALLY HE WANTED TO BRING HIS SURVEYOR ON BOARD INSTEAD OF USING THE ONE THAT WE HAD PROPOSED. AND WE DIDN'T HAVE A PROBLEM WITH THAT. AND THEN THERE WERE SOME, UH, COMMENTS GIVEN BY THE COUNTY ATTORNEY, UH, THAT, UH, BASICALLY GIVES THE COUNTY THE, UH, I GUESS THE FINAL SAY IN IN WHAT HAPPENS OUT THERE, THE FINAL BUY OFF ON, ON ALL OF THE, UM, THE DESIGN THAT HAPPENS OUT THERE. UH, BUT WHAT WE WANT TO DO IS, IS MAKE SURE THAT MOVING FORWARD, UM, THAT THE, UM, REPRESENTATIVE OF THE COUNTY, THE ATTORNEY, UH, BE ABLE TO, IF, IF THERE IS SOMETHING THAT COMES BACK FROM MR. PAN COOK'S ATTORNEY, HAVE, HAVE, UH, THE AUTHORITY TO, UH, TO ACCEPT WHATEVER COMES BACK FROM THAT. THAT'S, THAT, THAT'S THE MAIN THING THAT WE WERE WANTING TO DO. SO THAT WE DON'T HAVE TO COME BACK TO COMMISSIONER'S COURT AGAIN. YOU KNOW, WAIT FOR THE NEXT COMMISSIONER'S COURT SO WE CAN GET THIS PROCESS UP AND MOVING. I THINK THEY JUST ASKING. YEAH. AND THEY HAD INCLUDED, AL HAD INCLUDED THE LANGUAGE THAT WE HAD SUGGESTED ABOUT HAVING APPROVAL ON THE FRONT END AS WELL ON PRODUCT. AND SO, SO THAT MONEY IS NOT SPENT BY ANY, WE'RE CLEAR ON WHAT'S BEING DONE BEFORE IT'S DONE SO FAR AS IF, IF, IF THIS IS SIGNED, THIS IS GREAT. I MEAN THIS COMPLIES WITH WHAT WE'VE REQUESTED AND IF THERE'S SOME ADDITION TO IT, THEN I'LL CERTAINLY LET THE COURT KNOW, BUT YEAH, I DON'T, I DON'T ANTICIPATE THE PAN WOULD'VE PROBLEM. I I CANNOT IMAGINE YOU WOULD WANNA SPEND MONEY AND IT NOT BE APPROVED AND NOT COMMISSION. I WE HAVE A MOTION. COMMISSIONER JACKSON? WE HAVE A SECOND, SECOND. COMMISSIONER MANNING SECOND. ANY OTHER DISCUSSIONS? I'D BE GLAD IF THE COMMISSIONER JACKSON CAN GET THAT POINT INSIDE ME TOO. ONGOING LONG, LONG TIME. I'LL SAY I ALSO, OKAY, ALL IN FAVOR SAY AYE. AYE. THOSE OPPOSED? ALRIGHT, WELL THANK YOU FOR EVERYBODY'S HARD WORKING, TRYING TO FINALLY GET THAT ROAD ISSUE CLOSED. ALRIGHTY. UH, THIS ITEM 10 IS TO DISCUSS AND ACT ON APPROVING RESOLUTION OF RE-DESIGNATION OF SEGMENT OF A SEGMENT OF STATE HIGHWAY 34 IN ADDITION OF THE RELOCATION OF STATE HIGHWAY 34 TO THE STATE HIGHWAY SYSTEM. UH, RAY YOU WANT TO YEAH, THIS IS BASICALLY JUST, UH, IT'S A, IT'S A TEXT DO REQUEST AND IT'S, UH, OH, IT'S PRETTY MUCH A STANDARD RESOLUTION WE HAVE TO SUPPORT [00:30:01] TO GET THIS, GET THIS ROAD BUILT. THEY'RE BUILDING A ROAD AS WE SPEAK, BUT, UH, WE DIDN'T DO THIS RESOLUTION BEFORE THAT. UH, WE'VE GOT THE EXACT SAME RESOLUTION GOING TO THE CITY OF LL I BELIEVE THAT THEIR NEXT MEETING, I'LL MAKE A MOTION, APPROVE THIS RESOLUTION. COMMISSIONER CLARK MAKES A MOTION. COMMISSIONER JACKSON SECONDS. ANY OTHER DISCUSSIONS FROM ANYBODY? UH, IT IS THIS A PART OUT THERE BY ? NO, NO. THIS IS RIGHT IN CAROL. THIS IS THE BRIDGE GOING UP. I WONDER BECAUSE I'VE NEVER HEARD ANYTHING ABOUT, OKAY, THAT'S, NO, NO QUESTION. THIS IS A, THE BRIDGE TERRELL 34 BRIDGE. YEAH. BASICALLY NO QUESTIONS. ONLY IN FAVOR SAY AYE. AYE. BOTH OPPOSED? ALRIGHT. MOTION CARRIES. ALL RIGHT. ITEM NUMBER 11 IS TO DISCUSS AND ACT ON APPRO THE RESOLUTION IN SUPPORT OF THE REPLACEMENT OF OFF SYSTEM BRIDGES, LOADED ON COUNTY ROADS 4 60 40 68, 2 83 40 17, 3 10, 1 20 AND 1 0 9 BY THE TEXAS DEPARTMENT OF TRANSPORTATION AND AGREEING TO PROVIDE THE LOCAL FUNDING MATCH IN KIND OF 4.2%. AGAIN, THIS IS MORE OF A, UH, CLEANUP. UH, WE, WE'VE ALREADY PASSED RESOLUTION REAL SIMILAR TO THIS. I THINK IT ADDED ONE MORE COUNTY BRIDGE TO THIS RESOLUTION. UH, AND THEN I THINK MAYBE THE LAST ONE, EVEN THE PAPERWORK MIGHT HAVE SAID THAT WE HAD THAT MATCH OF 10%, WHICH IT SHOULD HAVE SAID 4.2 IS WHERE COMING INTO THAT DISADVANTAGED COUNTY STATUS. AND, UH, IT'S IN KIND MATCH SO THAT, SO ALL THAT MONEY THAT WE SPEND IS GONNA BE, YOU KNOW, ON THE BRIDGE. I THINK APPRECI REPLACE THE FIRST BRIDGE. IT'S BASICALLY COVER OUR BATS OF ALL FIVE OF THESE BRIDGE. YEAH, IT'S A GOOD, IT'S A GOOD, GOOD DEAL FOR US. AND ON CONDITION, UH, THIS, WE RECEIVED A NOTICE FROM T DOT TWO WEEKS AGO, CLOSED 40 68 AND IT IS CLOSED BECAUSE OF, UH, BROKEN TIMBERS UNDERNEATH. AND UH, WE'VE BEEN IN TOUCH WITH THEM AND, UH, WE'RE READY TO GET STARTED JUST SOON AS THIS WE GET THE APPROVAL FROM DOCK, WE HAVE TO DO THIS RESOLUTION AND THAT'LL ALLOW THEM TO START GETTING THE PROCESS AND WHAT THE BEDS ON IT. RIGHT, BUT DOES IT HAVE TO BE JUST THAT WE HAVE LISTED HERE, RIGHT? YES. I JUST GOT FOUR. IT'S NOT ON. I WOULD LIKE THAT MOTION. I A MOTION. MOTION. COMMISSIONER ME. WE HAVE A SECOND. SECOND. MR. JACKSON. SECOND. ALL IN FAVOR SAY AYE. AYE. THOSE OPPOSED. NEXT ITEM, ITEM 12 IS TO DISCUSS AND ACT ON APPOINTED TERRY THOMAS, HARRY WILT TAYLOR GOLD, GOLDMAN, JOHN LO AND ERNEST OWENS TO THE CALKIN COUNTY EMERGENCY SERVICES DISTRICT, UH, NUMBER TWO BOARD OF DIRECTORS AND SETTING THEIR TERMS OF OFFICE. AND YOU HAVE THE HANDOUT ON THAT. I MET WITH, UH, THE ESD. THIS IS THE SECOND TIME I'VE MET WITH HIM. UH, WE HAD ONE MEMBER OF RETIRE AND REPLACED HIM WITH ERNEST OWENS. UH, THE, UH, TERM TERMS ARE, UH, WRITTEN ON YOUR ACCOMPANYING DOCUMENT AND I WOULD MAKE THE MOTION TO ACCEPT THESE GENTLEMEN. OKAY. CAN YOU PULL ONE FOR A THREE YEAR TERM? HOW ABOUT ONE YEAR, TWO YEAR TERMS? IS THAT CORRECT? PLEASE? TWO YEAR AND THREE YEAR INITIALLY IF THEY HAVE, IF THEY'VE ALL BEEN EXPIRED THEN IT'S UH, 3, 3 3 YEARS AND TWO AT TWO YEARS. AND THAT JUST FITS THAT AS LONG AS YOU GOT A STAGGERED OF TWO AND THREE. YES, WE HAVE TWO FOR THREE YEARS. TWO FOR TWO YEARS, AND ONE FOR ONE YEAR. 'CAUSE HARRY'S GONNA RETIRE AFTER HIS OTHER TWO YEARS UP. AS LONG AS THEY'RE STAGGERED. IT, IT'S, IT'S GOOD. OKAY. ARE THEY ANY OF THEM HERE TODAY? UH, NO SIR. HAVE ANY OF THEM APPROACHED YOU ABOUT THE COUNTY GIVING THEM AN OFFICE? NO. OKAY. NO, THEY'RE, THEY'RE, UH, THEY MADE IT THE MAYBANK FIRE DEPARTMENT. OKAY. BECAUSE IT'S PRETTY CENTRALLY LOCATED FOR ALL THESE GUYS. YEAH. AND, UH, MAYBANK FIRE DEPARTMENT LET'S A MEET UP THERE. THAT OTHER THING MAY BE ON THE AGENDA NEXT TIME. OKAY. THANK YOU. ALRIGHT, IF YOU, I MOVE TO ACCEPT THESE GENTLEMEN. MR. MANNING MAKES THAT MOTION. DO WE HAVE A [00:35:01] SECOND? SECOND, MR. ROWDEN, ANY OTHER DISCUSSION? ALL IN FAVOR SAY AYE. AYE. OPPOSED? APPRECIATE EVERYBODY'S WORKING, WORKING WITH ESDS, GETTING THEM UP WHERE THEY NEED TO BE. THESE GUYS, THESE GUYS ARE REALLY DEDICATED AND THEY DO A FINE JOB. THEY'RE, THEY DO A GOOD JOB THAT FOR NO, ALL VOLUNTEER. ALRIGHTY, ITEM NUMBER 16 IS TO HEAR FROM CHRISTINA UNA TO RECEIVE AN UPDATE ON THE TEXAS COUNTY AND DISTRICT RETIREMENT SYSTEM REGARDING PLAN FUNDING FOR KAMAN COUNTY. IS CHRISTINA HERE? I DON'T SEE, SHE SAID THAT SHE PROBABLY WOULDN'T BE HERE ABOUT 10 15. OKAY, WELL, WE'LL JUST MOVE FORWARD. WE'LL COME BACK TO THAT ONE AND GO AHEAD AND MOVE TO ITEM 17 TO DISCUSS AND ACT ON NINE ITEM. THIS IS IMPORTANT CLOSE LINE ON THE TRANSFERS OF JP ONE, MOVE $25 FROM BONDS TO OFFICE SUPPLIES JP TWO TO MOVE $200 FROM MILEAGE MILL AND LODGING TO OFFICE SUPPLIES. TAX ASSESSOR COLLECTOR MOVE $3,000 FROM COMPUTER AID TO OFFICE SUPPLIES, MAINTENANCE AND OPERATIONS. MOVE 1000 FROM POSTAGE METER RENTAL TO LAWN CARE PUBLIC WORKS. MOVE 1000 FROM LEASE PAYMENTS TO MILEAGE MILL AND LOING SHERIFF'S DEPARTMENT MOVED $200 FROM PARTS OF REPAIRS TO AN AMMUNITION. UH, HIGHWAY PATROL MOVED $300 FROM COMPUTER COST TO, UH, OFFICE SUPPLIES. SHERIFF ASSET FORFEITURE FUND MOVED 10,000 FROM MISCELLANEOUS TO NEW EQUIPMENT. THAT'S THE MONEY THAT HE, HE HAS THAT WE JUST KIND OF MAKE SURE IT GOES TO PROPER THINGS. AND THAT'S ALL OUR, OUR JOB IS. IT'S NOT TECHNICALLY COUNTY MONEY AND AN ALL STAR LIBRARIES GRANT. WE MOVED $435 FROM BOOKS TO TRAINING EDUCATION. ADDITIONALLY, WE HAVE A FEW BUDGET AMENDMENTS, ONE OF WHICH, UH, COMMISSIONER MANNING AND MY OFFICE WORKED OUT THIS MORNING, UH, IN, IN THE, UH, PRECINCT FOUR CONVENIENCE STATION. UH, WHEN THE, WHEN THE BUDGET WAS PREPARED AND, AND, UH, I GUESS ON THE PREVIOUS COMMISSIONER PROBABLY DIDN'T HAVE ENOUGH MONEY PUT INTO THE, UH, GARBAGE PICKUP LINE AND HE'S BAT OUT FUNDS IN IT. UH, I WOULD SAY COMMISSIONER MADDY HAS TAKEN RECENT STEPS TO DECREASE THESE COSTS AFFORD. SO WHAT WE'RE PROPOSING, UH, IS MOVING $5,000 FROM HIS ROAD BRIDGE PRECINCT EXTRA HELP INTO PRECINCT FOUR CONVENIENCE STATIONS REGARDING PICKUP, DESIGNATING THE FACT THAT THESE ARE NOT TAX MON, UH, YOU CANNOT MOVE ROAD BRIDGE TAX MONEY IN THE GENERAL FUND, BUT THAT'S ABOUT 60% OF ROAD BRIDGE FUNDING IS IS TAX MONEY. SO WE'RE DESIGNATING THE FACT THAT THIS IS NOT, UH, DESIGNATED TAX FUNDS FOR ADDITIONAL, UH, REVENUE FUNDS MOVING TO ROAD BRIDGE FORWARD INTO REGARD THE PICK UP LINE FOR, FOR THE STATION. ADDITIONALLY, WE'RE PROPOSING A BUDGET AMENDMENT TO SEPARATE, UH, THE COURTHOUSE SECURITY FUND BECAUSE 25% OF WHAT JPS COLLECT FOR A SECURITY FUND TO JP. SO WE'VE GONE BACK AND, AND SEGREGATED THOSE, THOSE AMOUNTS. WE'VE ALWAYS JUST KEPT IT IN ONE FUND. SO WE'RE MAKING, WE'RE PROPOSING A BUDGET AMENDMENT, WHICH DOESN'T INCREASE ANYTHING. IT JUST SETS UP THE JP SECURITY FUNDS. JUVENILE PROBATION WE'RE CERTIFYING ADDITIONAL REVENUES FROM THE STATE, $7,347 AND BUDGETING THAT FOR PLACEMENT SERVICES. AND THEN IN THE ELECTIONS AREA, CERTIFYING A NEW GRANT FROM FROM SOUTH AMERICA VOTE ACT 56,149 AND BUDGETING THAT FOR VOTING EQUIPMENT AND BALANCE AND SUPPLIES. OKAY, GREG, I'VE GOT A QUESTION ON, UH, TOMMY'S CONVENIENCE STATION DOWN THERE. COMMISSIONER MANNING STATION. I THINK IT'S GREAT THAT YOU WANT TAKE YOUR MONEY OUTTA THE ROAD AND BRIDGE TO PAY FOR THAT. I DON'T THINK THAT'S A ROTARY BRICK RESPONSIBILITY. NO, IT'S NOT. I MEAN, IT'S GREAT THAT YOU WANT BUT I IT SHOULD COME OUT OF ANOTHER, ANOTHER SOURCE I WOULD BELIEVE AS OPPOSED TO PENALIZING YOU FOR THAT. I MEAN, IT'S GREAT THAT YOU WANT TO PAY FOR THAT. IF YOU WANT TO, THAT'S FINE WITH ME, BUT I'M WANT SAY THAT THAT'S YOUR CHOICE. I MEAN, IT SHOULD COME OUT. I DON'T WANT, I DON'T WANNA HURT YOU ROT BRIDGE ON ON THAT, WHAT I'M SAYING. I UNDERSTAND. IT'S, UH, THAT'S A DEAL WHERE, UH, I'VE, I'VE CUT EVERYTHING [00:40:01] I CAN CUT DOWN THERE AND, UH, OUR, UP UNTIL THE COUNTY CLEANUP GOT BE ABOUT 25 DAYS OUT, WE WERE, WE HAD JUST ABOUT DOUBLED OUR INCOME ON THE ECO STATION. IT GETS CLOSE TO COUNTY CLEANUP. THAT THING JUST DIED OUT. I'M TALKING ABOUT WE HADN'T HAD A CUSTOMER, WELL HAD TWO PAYING CUSTOMERS ALL LAST WEEK. SO, AND THIS IS, UH, LEFT IN THERE BY THE, THAT LINE ITEM WAS IN THERE BY THE PREVIOUS COMMISSIONER FOR $5,000. AND I'M NOT GOING TO NEED ANY EXTRA HELP. IF THERE'S ANY EXTRA HELP NEEDED, I'M GONNA BE THE EXTRA HELP. SO, UH, THAT'S ABOUT THE ONLY PLACE WE COULD MOVE IT FROM. SO, UH, AND BEING AS WE'VE, UH, UH, WE'VE LIQUIDATED SOME OLDER EQUIPMENT DURING THE SALE LAST WEEK, AND I BELIEVE THAT THAT'LL MAKE UP FOR IT, UH, GOING BACK INTO THE GROVE BRIDGE FUND AND, UH, I, I DON'T FEEL AN $4 AN HOUR, THAT'S WHAT IT IS. IT'S $4 AN HOUR . BUT, UH, ANYWAY, I DON'T BELIEVE IT'S PENALIZED ME. I I GOTTA KEEP THAT ECO STATION RUNNING UNTIL THAT THING STRAIGHTENS OUT AND WE GET, WE'VE GOT OUR NEW BIDS IN ON THE CONTAINERS AND, UH, THEY'LL BE DELIVERED THE WEEK AFTER THE CLEANUP SO WE CAN GET, MAXIMIZE OUR DOLLAR OUT, THE ONES THAT'S GONNA BE SITTING THERE, UH, THAT WE GOT LAST WEEK. WE'LL FILL ALL THOSE UP AND GET RID OF THEM AND THEN WE'LL GET THE NEW PROBABLY WHEN YOU HAVE A WHOLE YEAR OF THAT NEW MONEY COMING IN. AND THAT'LL, THAT'LL PROBABLY WORK IT OUT. HOPEFULLY, HOPEFULLY. BUT, UH, ALL I CAN DO IS JUST HIT AS HARD AS I CAN. THAT'S, THAT'S THE ONLY PLACE GET THE MONEY, MAKE SURE WEREN'T AS TIGHT AS OUR BUDGETS ARE, WE'RE NOT PENALIZING YOU BECAUSE THAT SHOULD BE SOMETHING THAT SHOULDN'T BE SHARED COUNTYWIDE, NOT JUST PRECINCT FOUR ROAD BRIDGE, BUT THAT'S YOUR CALL. YEAH. YEAH. WELL, I APPRECIATE YOUR INPUT. I'LL CERTAINLY TAKE THAT INTO CONSIDERATION NEXT TIME. I, HOPEFULLY I WON'T HAVE TO MOVE ANYMORE. WE CAN MOVE SOME OF THE PRECINCT TOO. , ANY OTHER COMMENTS ABOUT THE LINE ITEM TRANSFERS? YOU GOT ANYTHING ELSE? NO, SIR. THAT'S IT. OKAY. WE, WE HAVE A MOTION TO APPROVE THE, UH, REQUEST FOR THE LINE ITEM DEFENSE. SO MR. MANNY MAKES THAT MOTION. WE HAVE A SECOND. COMMISSIONER ROU SECOND. IT'S ALL IN FAVOR, SAY AYE. AYE. ALL RIGHTY. AND CHRISTINA? YES. ARE YOU HERE? I'M, YOU'D LIKE TO COME UP AND, UH, I, I GOT SOME INFORMATION AND I THINK ALL OF YOU DID IT WELL ON THE RETIREMENT PROGRAM THAT WE CONTRIBUTE FOR OUR EMPLOYEES AS WELL AS OUR EMPLOYEES CONTRIBUTE TOWARDS. AND SO, UH, I CALLED, UH, CHRISTINE, I MEAN RIGHT. PACKET OF INFORMATION HERE AND IT'S JUST, IT'S MORE THAN JUST THE PRESENTATION THAT I PUT TOGETHER FOR YOU, FOR Y'ALL TO HAVE. OKAY. AT THE VERY LEAST. SO, AND I HAVE EXTRAS. I DON'T KNOW IF ANYBODY ELSE NEEDS THEM OR WANTS THEM, BUT THEY'RE THERE. I'M GONNA HAND THEM OUT. SURE. GO. WHAT I'M GONNA COVER WITH Y'ALL IS, I DON'T KNOW HOW IT LOOKS IN Y'ALL'S COURT BOOK, BUT I MAY I STANDING DOWN HERE FOR OUR BODIES. SURE. SO YOU, BUT I PUT TOGETHER A BIG, UM, YEAH, THAT BIG PACKET AND IT'S IN COLOR IN HERE. IT MIGHT MAKE IT EASIER TO SEE. THANKS. AND THANKS FOR DRIVING UP THIS MORNING ALL THE WAY FROM AUSTIN. NOT, NOT A PROBLEM, NOT A PROBLEM AT ALL. OKAY, SO Y'ALL JUST LET ME KNOW WHEN Y'ALL ARE READY. EVERYBODY READY? HARD TO START. SO, OKAY, I'LL START ON, UM, THE, THE FIRST PAGE AFTER THAT, THAT'S TITLED WHO WE ARE. JUST A BRIEF, UM, OVERVIEW OF WHO TEXAS AND COUNTY DISTRICT RETIREMENT IS. WE WERE ESTABLISHED IN 1967 BY TEXAS LEGISLATURE, AND WE, IN DOING SO, WE WERE CREATED TO ADMINISTER RETIREMENT, DISABILITY AND SURVIVOR BENEFITS FOR COUNTIES AND DISTRICTS THROUGHOUT TEXAS. WE CURRENTLY HAVE 624 INDEPENDENT EMPLOYER PLANS THAT WE ADMINISTER EVERY COUNTY AND TEXAS PARTICIPATES WITH US EXCEPT FOR TWO. THE ONLY TWO THAT DO NOT ARE BOARD AND MOTLEY UP IN THE PANHANDLE. THEN WE HAVE ALL SORTS OF DISTRICTS. I'M GONNA GO VISIT WITH THE APPRAISED DISTRICT, UM, AROUND THE CORNER AFTER THIS. WE ALSO HAVE HOSPITAL DISTRICTS, NAVIGATION DISTRICT, UTILITY DISTRICT, SO ON AND SO FORTH. EACH PLAN IS INDEPENDENT OF EACH OTHER. UM, AND CONTROLS HAS THE ABILITY TO CONTROL ITS OWN MANAGEMENT LEVELS. UM, AND THOSE CAN BE ADJUSTED ANNUALLY BY YOUR COURT. FINALLY, UM, AS I MENTIONED, [00:45:01] EACH PLAN IS FUNDED INDEPENDENTLY BY EMPLOYER DEPOSITS, EMPLOYEE DEPOSITS, AND, UM, BY THE INVESTMENTS WE DO NOT RECEIVE ANY STATE FUNDING. SO THAT'S PRETTY KEY. SO MOVING ON TO THAT SECOND PAGE, T-C-E-R-S IS A SAVINGS BASED PLAN. THIS IS JUST KIND OF A REAL SIMPLISTIC VIEW OF HOW THE PLAN WORKS. SO THIS IS A HYPOTHETICAL EXAMPLE OF JOE. JOE IS A, AN EMPLOYEE OF LUVO COUNTY. HE, EVERY PAY PERIOD, HE'S CONTRIBUTING ANYWHERE FROM FOUR TO 7% OF PAY INTO T-C-D-R-S. ANNUALLY, HIS T-C-D-R-S ACCOUNT IS GONNA GROW ABOUT 7% INTEREST, AND THAT'S GUARANTEED BY STATE STATUTE. AT THE SAME TIME, WHILE JOE IS SAVING FOR HIS RETIREMENT, BLUE BONNET COUNTY AND YOUR CASE, KAUFMAN COUNTY IS SAVING FOR HIS RETIREMENT AS WELL. UM, AND WITH THAT ANNUALLY DETERMINED REQUIRED RATE THAT Y'ALL ARE SENDING IN ON AN ANNUAL BASIS, UM, THAT ANNUALLY DETERMINED RATE IS DETERMINED BY, BY BENEFIT SELECTIONS THAT YOU MAKE AND ALSO BY ACTUARIAL ASSUMPTIONS. THE FIVE MAIN ACTUARIAL ASSUMPTIONS WE LOOK AT ON AN ANNUAL BASIS ARE THE BIGGEST ONE RETURN ON INVESTMENTS. WE LOOK AT PAYROLL GROWTH TERMINATIONS, EXPECTED RETIREMENTS AND MORTALITY, AND OUR BENCHMARK IS, IS 8%. SO THAT'S WHAT WE LIKE OUR PORTFOLIO TO RETURN YEAR AFTER YEAR. SO ON THOSE YEARS WHERE WE DO HIT THAT 8%, IT'S REAL EASY FOR US TO CREDIT EMPLOYEE ACCOUNTS WITH 7% AND YOUR EMPLOYER ACCOUNT WITH 9% EARNINGS ON YEARS SUCH AS 2008, WHERE WE FELL BELOW THAT 8% RETURN WHERE WE ACTUALLY HAD NEGATIVE PERFORMANCE. WELL, EMPLOYEES ARE STILL GUARANTEED THAT 7% INTEREST, BUT WHO MAKES UP FOR THE SHORTFALL? IT'S THE RATE, THE RATE GOES UP SYSTEM WIDE FOR ALL EMPLOYERS TO MAKE UP FOR THE SHORTFALL. BUT WHAT HAPPENS WHEN WE HAVE BETTER THAN 8% RETURNS AS WE HAVE THE PAST TWO YEARS IN 2009, WE HAD A RETURN OF 26.7%. WE REBOUNDED REALLY WELL AFTER 2008, AND AGAIN AFTER 2010, WE HAD A RETURN OF 12.8. SO BOTH YEARS WERE ABOVE THE 8%. SO THE T-C-B-R-S BOARD DECIDED THAT IT WAS BEST TO PUSH THROUGH MORE THAN 9% IN, UH, EARNINGS TO EMPLOYERS TO HELP MITIGATE THAT 2008 INVESTMENT LOSSES THAT ARE STILL IN THE PIPELINE. SO, UM, IT'S JUST ALLEVIATING SOME OF THE RATE PRESSURE EMPLOYEES STILL GOT THAT FLAT 7% OF THE EMPLOYER ACCOUNTS WERE GETTING MORE BECAUSE Y'ALL ARE THE ONES THAT ARE BEARING ALL THE INVESTMENT RISKS. SO THAT'S WHY Y'ALL GET THE EXTRA, WELL, IT WAS LOST IN THOUSAND SEVEN. IN 2008, IT WAS, IT WAS NEGATIVE 29%, NEGATIVE 29. AND THEN FINALLY AT RETIREMENT, WHEN JOE'S READY TO RETIRE, WE'RE GONNA LOOK AT WHAT HIS ACCOUNT BALANCE WAS. WE'RE GONNA FACTOR IN THE EMPLOYER MATCH. THAT IS $2 FOR EVERY $1 THAT JOE HAS. WE'LL LOOK AT, UM, WHAT HIS AGE IS, THE OPTION HE CHOOSES AND HE WILL RECEIVE A BENEFIT FOR LIFE. OKAY, THE NEXT SLIDE, FIVE SIMPLE STEPS. THAT'S JUST A VERBAL, UM, MESSAGE OF THE ILLUSTRATION I JUST WENT OVER SO THAT IT'S A, IT'S A TAKEAWAY BASICALLY. SO NEXT I'LL GO OVER PLAN DESIGN. AND I KNOW JUDGE WOOD, WE WERE TALKING A LITTLE BIT ON THE, WHEN I TALKED TO YOU ON THE PHONE ABOUT YOU SAYING, UH, OR THINKING THAT WE'RE LIKE TRS. AND SO THIS SLIDE REALLY IN, UM, ILLUSTRATES HOW WE'RE KIND OF A HYBRID OF DEFINED BENEFIT PLANS AND DEFINED CONTRIBUTION PLANS. SO T-C-D-R-S SITS SOMEWHERE IN THE MIDDLE. WE'RE LIKE DEFINED, UM, TRADITIONAL DEFINED BENEFIT PLANS LIKE TRS AND ERS AND THE FACT THAT THE EMPLOYER IS BEARING ALL OF THE INVESTMENT RISK AND WE DO PROVIDE A LIFETIME BENEFIT, UM, FOR RETIREES. WE'RE DIFFERENT IN THE FACT OF HOW THAT BENEFIT'S CALCULATED IN THE TRADITIONAL DEFINED BENEFIT PLAN. A PERSON'S BENEFIT IS CALCULATED ON THEIR HIGHEST THREE YEARS OF SERVICE, THE LENGTH OF THEIR CAREER AND A MULTIPLIER IS USED. SO YOU'VE PROBABLY HEARD A LOT IN THE MEDIA LATELY ABOUT BENEFIT SPIKING WHERE PEOPLE WILL MOVE INTO A HIGHER PAYING JOB TOWARDS THE END OF THEIR CAREER OR WORK A LOT OF OVERTIME TO SPIKE THAT BENEFIT. WELL, THAT MAKES COST HARD TO CONTROL FOR EMPLOYERS BECAUSE THEY WEREN'T PLANNING FOR THAT THROUGHOUT THAT EMPLOYEE'S CAREER. YOU CAN'T DO THAT IN THE T-C-D-R-S PLAN BECAUSE IT'S BASED ON WHAT THAT PERSON'S FINAL ACCOUNT BALANCE IS. SO IF SOMEBODY MOVES INTO A HIGHER PAYING JOB TOWARDS THE END OF THEIR CAREER, WELL THAT'S GREAT, BUT THEIR BENEFIT'S NOT GONNA BE ANY BIGGER BECAUSE IT'S JUST CASH BALANCE. IT'S JUST BASED ON WHAT THEIR BENEFIT IS AT THE END OF, AT THE END OF THEIR CAREER. UM, HOW ARE WE DIFFERENT THAN A 401K PLAN? WELL, THERE ARE THREE MAIN DIFFERENCES. THE FIRST IS THAT MEMBERS IN 4 0 1 KS TYPICALLY HAVE TO GET MORE CONSERVATIVE AS THEY AGE TO MAKE SURE THAT THEY DON'T LOSE THEIR INVESTMENTS OR THEIR SAVINGS. AND T-C-D-R-S WHO DO NOT HAVE TO GET MORE CONSERVATIVE IN INVESTMENTS AS A SINGLE INDIVIDUAL AGES BECAUSE WE HAVE OVER 220,000 MEMBERS. SO WE'RE POOLING THAT EXPERIENCE SO WE DON'T HAVE TO GIVE MORE CONSERVATIVE WITH ONE WHEN ONE PERSON AGES SECOND PROFESSIONAL INVESTMENT MANAGEMENT THAT T-C-D-R-S HAD TENDS TO OUTPERFORM THAT OF INDIVIDUAL INVESTMENT CHOICES MADE. PERIOD. YOU GOT THAT PART ABOUT DAY 4K UNDERSTAND. AND THEN LAST, [00:50:01] UM, IN A 401K, UM, EMPLOYEES TYPICALLY TEND TO OVERSAY TO ENSURE THAT THEY DON'T OUTLIVE THEIR SAVINGS BECAUSE YOUR RETIREMENT'S ONLY AS GOOD AS THOSE INVESTMENT CHOICES AND TCRS MEMBERS ARE GUARANTEED A BENEFIT FOR LIFE. OKAY, SO MOVING ON. UM, THIS IS PROBABLY, I THINK THE ONE THAT, UM, THE NEXT SLIDE, THE HOW BENEFITS ARE FUNDED. THAT'S THE ONE THAT EMPLOYERS, UM, KIND OF DO A A WOW WHEN THEY LOOK AT IT BECAUSE WHAT IT'S SHOWING IS, IS THAT OF THE CHECKS GOING OUT THE DOOR AT T-C-D-R-S TO THOSE RETIREES, 78% OF THOSE FUNDS COME FROM INVESTMENTS, WHICH MEANS THAT ONLY 12 CENTS OF EVERY DOLLAR IS FROM EMPLOYER DEPOSITS AND 10 CENTS OF EVERY DOLLAR IS FROM EMPLOYEE DEPOSITS. SO IT REALLY DOES SHOW THE POWER OF INVESTMENT EARNINGS AND, UM, AND WHAT OUR PORTFOLIO MEANS TO THE SYSTEM. SO WE ARE VERY HAPPY THAT WE HAVE REBOUNDED, UM, QUITE WELL SINCE 2008, BUT WE ARE STILL NOT QUITE, UM, OUT OF THE WATER FROM FROM IT. WE STILL DO HAVE LOSSES IN THE PIPELINE, BUT WE'RE HEADED THERE. OKAY. AND THEN THE NEXT SLIDE, ESTIMATED PERFORMANCE. THIS JUST SHOWS YOU THE 25 YEAR HISTORY OF THE T-C-D-R-S UM, PERFORMANCE. AND AS YOU CAN SEE, WE HAVE HIT OUR 8% INVESTMENT RETURN BENCHMARK AT THE 20 AND 25 YEAR MARK, UM, FOR EACH MEMBER OF THE SYSTEM WHERE OUR INVESTMENT HORIZON IS AT LEAST 30 YEARS OR MORE. SO THAT'S SHOWING US THAT WE ARE HITTING, WE'RE NOT OVERESTIMATING THAT 8% ASSUMPTION BECAUSE WE ARE HITTING IT LONG TERM AND WE AREN'T SHORT TERM INVESTORS. THESE PEOPLE THAT RETIRE WITH US ARE MEMBERS OF THE SYSTEM FOR A LONG TIME. ON AVERAGE, THEY'RE WORKING 17 YEARS AT WHATEVER COUNTY OR DISTRICT THEY'RE WORKING AT, AND THEN THEY'RE LIVING ANOTHER 20 YEARS IN RETIREMENT. SO THAT'S ABOUT, YOU KNOW, 30 TO 40 YEAR TIME SPAN THAT WE HAVE TO INVEST FOR THOSE PEOPLE. AND, UM, OUR INVESTMENT, LONG-TERM INVESTMENT HISTORY IS SHOWING THAT WE'RE HITTING THAT, THAT 8% BENCHMARK. SO, UM, WE, WE FEEL THERE'S NO REASON TO ADJUST IT SINCE WE ARE HITTING IT. OKAY, LOCAL CONTROL, NOT A ONE SIZE FITS ALL PLAN, IT'S JUST, YOU KNOW, UM, SINCE 2008, WE HAVE HAD A LOT OF EMPLOYERS THAT HAVE EXPERIENCED, UM, A LOT OF, OF STRAIN ON THEIR BUDGETS AND, AND WHAT THEY CAN AFFORD. AND THAT'S WHAT'S GREAT ABOUT THE T-C-D-R-S PLAN IS THAT IT ISN'T ONE SIZE FITS ALL. UM, BENEFIT LEVELS CAN BE ADJUSTED ON AN ANNUAL BASIS TO PROVIDE IMMEDIATE BUDGET RELIEF, UM, FOR ANY OF THE EMPLOYERS THAT WE SERVE. IF, UM, IF THAT IS A ROUTE THAT YOUR COURT DOES NEED TO TAKE, YOU DO HAVE THAT FLEXIBILITY. SO NOW I'M GONNA GO OVER THE NEXT FEW SLIDES. I'M JUST GONNA REMIND YOU OF THOSE THINGS THAT YOU DO HAVE THE ABILITY TO ALTER THIS PLAN. THE FIRST BEING YOUR EMPLOYEE DEPOSIT RATE. RIGHT NOW, YOUR EMPLOYEES ARE CONTRIBUTING 7% FROM THEIR PAY TO THEIR T-C-D-R-S BENEFIT. UM, IF IN THE FUTURE YOU DECIDE THAT NEEDS TO BE LOWERED, THAT CAN BE LOWERED TO EITHER, UM, FOUR OR FIVE OR 6%. YOU CAN'T ADJUST THAT ANNUALLY. SECOND, THE NEXT SLIDE, EMPLOYER MATCHING IS ANOTHER THING, UM, THAT YOU HAVE CONTROL OVER. THE MINIMUM EMPLOYER MATCH IS A HUNDRED PERCENT OR DOLLAR PER DOLLAR ALL THE WAY UP TO TWO, 250% FOR $2 AND 50 CENTS FOR EVERY DOLLAR THE EMPLOYEE HAS IN THEIR ACCOUNT AT THE END OF THEIR CAREER. Y'ALL ARE CURRENTLY AT 200%, WHICH IS THE SYSTEM WIDE AVERAGE. UM, THAT'S WHAT MOST EMPLOYERS DO HAVE, UM, N-T-C-R-S. BUT AGAIN, IF YOU NEEDED TO, YOU COULD ADJUST THAT UP OR DOWN IN 5% INTERVALS, UM, FROM YEAR TO YEAR TO, TO AFFECT THE RATE. THE NEXT SLIDE, VESTING AND RETIREMENT ELIGIBILITY. NOW CURRENTLY HAVE AN EIGHT YEAR VEST WITH ELIGIBILITY REQUIREMENTS OF THE RULE OF 75 AND 30 YEARS ANY AGE. SO EIGHT YEARS. THAT'S JUST THE MINIMUM AMOUNT OF TIME A PERSON HAS TO WORK FOR THE COUNTY TO EARN THE RIGHT TO RETIRE. BUT JUST BECAUSE SOMEBODY'S BEEN HERE FOR EIGHT YEARS, THAT DOESN'T MEAN THAT THAT PERSON COULD QUIT, TAKE THEIR MONEY, TAKE THE KAUFMAN COUNTY MATCH AND AND MOVE ON. THEY HAVE TO WAIT TILL THEIR RETIREMENT AGE ELIGIBLE TO, TO HAVE TO BE ENTITLED TO THAT MATCH. SO THAT COULD HAPPEN THROUGH THE RULE OF 75, WHICH WOULD BE, FOR INSTANCE, IF SOMEBODY STARTED WORKING HERE AT AGE 25, THEY WORKED HERE FOR 25 YEARS, THEY'RE NOW AGE 50 AT THEIR AGE, 50 YEARS OF 25 YEARS OF SERVICE THAT EQUALS 75. OR IF THEY'VE WORKED HERE FOR 30 YEARS, REGARDLESS OF THEIR AGE, THEY COULD RETIRE UNDER THAT RULE AS WELL. UM, BUT A LOT OF PEOPLE THINK, YOU KNOW, IT'S NOT LIKE A 401K WHERE, YOU KNOW, IF THEY VEST THE MATCH IS THEIRS, THEY HAVE TO MEET THAT RETIREMENT AGE. IF FOR WHATEVER REASON THEY LEAVE AND THEY WITHDRAW THEIR THEIR ACCOUNT, THEY FORFEIT THE RIGHT TO THAT MATCH, WHICH MEANS THAT THE COUNTY'S NO LONGER SAVING FOR A BENEFIT FOR THEM. OKAY? SO THAT'S JUST A REMINDER. THESE CAN BE ADJUSTED. UM, IT IS IMPORTANT TO KNOW THAT ONCE YOU'RE AT A LOWER ELIGIBILITY REQUIREMENT, YOU CAN, IT CAN NEVER BE RAISED BACK UP BY THIS COURT OR BY FUTURE COURTS. SO Y'ALL COULD NEVER INCREASE [00:55:01] Y'ALL'S RULE FROM THE RULE OF 75 TO THE RULE OF 80. Y'ALL COULD HOWEVER, DECREASE FROM AN EIGHT YEAR VEST TO A FIVE YEAR VEST IF YOU WANTED, BUT IT WOULD BE A PERMANENT CHANGE. SO THAT'S THE ONE THING TO REMEMBER WITH ELIGIBILITY RULES IS THAT LOWERING THEM IS PERMANENT. OKAY, THE NEXT PAGE, ANOTHER THING THAT Y'ALL HAVE THE OPTION OF DOING FROM YEAR TO YEAR IS TO GRANT YOUR RETIREES THE COST OF LIVING ADJUSTMENT. THERE ARE TWO TYPES TO PICK FROM A FLAT RATE COLA AND A CPI. SO CONSUMER PRICE INDEX BASED COLA FOR 2012, THE FLAT RATE COLA WAS CAPPED AT 2% AND THAT IS BECAUSE CPI INFLATION FROM DECEMBER, 2009 TO DECEMBER, 2010 WAS 1.5%. SO THE T-C-D-R-S BOARD ALWAYS ROUNDS UP AND THEY CAPPED IT AT 2%. UM, AND OF COURSE, CPI BASED IS WHERE YOU'RE REPLACING A PERCENTAGE ANYWHERE FROM 10 TO A HUNDRED PERCENT OF CUMULATIVE LOST BUYING POWER OF YOUR RETIREES. OF COURSE, THOSE COLAS, THOSE COLAS AREN'T CHEAP. THEY DO ADD ANY ONE OF THEM WILL ADD 15 YEARS OF UNFUNDED LIABILITY TO THE RATE. UM, AND Y'ALL'S LAST ADOPTED COLA WAS A 3% BLACK COLA BACK IN 2009. SO THAT'S A LITTLE BIT OF HISTORY. OKAY. UM, ANOTHER PLAN PROVISION THAT YOU HAVE IS YOUR GROUP TERM LIFE COVERAGE. THIS RATE IS IN ADDITION TO YOUR REQUIRED RATE. AND SO THAT IS, Y'ALL ARE CURRENTLY PROVIDING THAT TO YOUR CURRENT EMPLOYEES AND RETIREES AND IT'S JUST A TERM LIFE INSURANCE POLICY. I'M NOT SURE IF THEY'LL OFFER ANOTHER ONE, BUT IT CAN BE A STANDALONE OR IN ADDITION TO WHATEVER ELSE YOU OFFER. BUT BASICALLY, IF AN EMPLOYEE WERE TO PASS AWAY WHILE ACTIVELY EMPLOYED, THEIR BENEFICIARY WOULD RECEIVE A ONETIME PAYMENT OF ONE TIMES THAT EMPLOYEE'S ANNUAL SALARY. UM, IN ADDITION TO THEIR RETIREMENT SAVINGS THAT WERE BUILT UP FOR RETIREES. WHEN SOMEBODY RETIRES FROM KAUFMAN COUNTY AND THAT RETIREE PASSES AWAY, THEIR BENEFICIARY RECEIVES A A ONETIME LUMP SUM PAYMENT OF 5,000. UM, THE RATE FROM LAST YEAR TO THIS YEAR DID NOT CHANGE. IT STAYED THE SAME AND IT IS 0.33% OF PAYROLL FOR THIS BENEFIT. NOW MOVING ON TO THE PENSION FUNDING WHERE YOU SEE THOSE TWO CIRCLES. UM, THIS IS JUST A REMINDER THAT EMPLOYEE ACCOUNTS AND YOUR EMPLOYER ACCOUNT THAT IS REPRESENTED BY YOUR CONTRIBUTION RATE ARE KEPT SEPARATE. THE MONIES ARE SEPARATE. EMPLOYEE'S ACCOUNTS ALWAYS CONSIST OF THEIR 7% PAYROLL DEDUCTION, AS WELL AS THAT 7% INTEREST THEY EARN ON AN ANNUAL BASIS. KAUFMAN COUNTY'S EMPLOYER ACCOUNT WILL CONSIST OF FOR 2012, THAT 8.9% OF PAYROLL THAT YOU WERE SENDING IN, AS WELL AS ANY ADDITIONAL EARNINGS THAT T-C-D-R-S IS ABLE TO PASS THROUGH TO YOU. SO HOPEFULLY AT THE VERY LEAST IT WOULD BE 9% IF WE HIT THAT 8% BENCHMARK. IF WE HAVE ANOTHER UP YEAR, THEN MORE THAN LIKELY THE BOARD'S GONNA PASS THROUGH MORE TO HELP MITIGATE MORE OF THAT 2008 INVESTMENT LOSS THAT WE STILL HAVE IN THE PIPELINE. OKAY? UM, AND THEN AGAIN, THE ONLY THREE WAYS THAT EMPLOYEE HAS ACCESS TO YOUR BOTTOM CIRCLE OF MONEY THAT YOU'RE SETTING ASIDE FOR THEM IS THROUGH ONE OF THOSE THREE WAYS, RETIREMENT, DISABILITY, OR SURVIVOR BENEFITS. SO NOW I'VE GOT COMPONENTS FROM THE NEXT SLIDE. COMPONENTS OF YOUR MONTHLY RATE. YOUR MONTHLY RATE IS BROKEN DOWN INTO YOUR NORMAL COST AND YOUR UNFUNDED ACTUARIAL APPROVED LIABILITY COST. UM, AND YOU CAN SEE YOUR NORMAL COST RATE IS 6.78 AND YOUR UAAL IS 2.16 FOR THE COMBINED TOTAL FOR 2012 OF 8.94%. SO THE NORMAL COST RATE IN A WORLD WHERE NOTHING EVER CHANGED, THE NORMAL COST WOULD BE ENOUGH TO FUND THESE RETIREMENT PLANS. BUT THE WORLD IS CHANGING. AND BY THAT I MEAN ACTUARIAL LOSSES AND GAINS ARE GONNA OCCUR. AND WHEN THEY DO THOSE LOSSES AND GAINS ARE REFLECTED IN THAT UAAL RATE AS WELL AS BENEFIT CHANGES. THOSE CAN BE ALTERED WHENEVER A COLA IS ADOPTED. THAT'S SOMETHING THAT WASN'T SAVED FOR IN ADVANCE. SO COLA COSTS GET FACTORED INTO THE UAL RATE AS WELL. SO THAT'S WHY THERE'S TWO, ALWAYS TWO COMPONENTS OF A RATE. THERE'S THE NORMAL COST AND THEN THERE'S UM, THE COST FOR WHAT WASN'T PLANNED FOR, WHICH IS INVESTMENT LOSSES, KOHL RATES, MAYBE GOING RETROACTIVE ON, ON A EMPLOYER MATCH THAT WOULD, THAT WOULD AFFECT THE UAAL AS WELL. OKAY. IT IS IMPORTANT TO KNOW THOUGH THAT THAT EIGHT, WHAT WHAT'S GREAT ABOUT THE T CDRS PLAN IS THAT THAT 8.9%, 4% THAT YOU'RE SENDING IN IS DOING TWO THINGS. ONE, IT'S SAVING FOR ALL OF YOUR CURRENT EMPLOYEES HERE AT THE COUNTY. IT'S PRE SAVING, IT'S ADVANCED FUNDING THEIR BENEFIT DOWN THE ROAD. THE SECOND THING IT'S DOING IS THAT IT IS AMORTIZING YOUR UAAL OVER A 20 YEAR CLOSED PERIOD. SO WE'RE NOT ONE OF THOSE CALIFORNIAS OR ILLINOIS OR ANY OF THOSE OTHER SYSTEMS THAT WE HEAR ABOUT IN THE NEWS WE'RE UNFUNDED LIABILITIES OR OUT OF CONTROL. AND IN THE TRILLIONS AND IT'S UNCONTROLLABLE, WE REQUIRE THAT ALL 624 [01:00:01] OF OUR EMPLOYERS PAY THEIR REQUIRED RATE. IT'S NOT A CHOICE. UM, THEY HAVE TO PAY THE FULL AMOUNT AND WHAT THAT'S DOING, IT'S ENSURING THAT THEIR UAAL IS PAID DOWN TO ZERO IN A 20 YEAR PERIOD. SO IT'S A CLOSED 20 YEAR PERIOD, WHICH IS NICE. CHRISTINA, UHHUH, , JUST A QUESTION AS AS EMPLOYEES LEAVE THE COUNTY MM-HMM . AND THE POSITION IS NOT REFILLED MM-HMM . DOES THAT AFFECT THE UAAL RATE? UM, IT, IT DOES, IT AFFECTS, UH, BECAUSE IT'S A DECREASE IN, IN PAYROLL, RIGHT? SO IF, IF WE'RE NOT HAVING MORE EMPLOYEES COME IN AND FILLING THERE, THERE'S NO PAYROLL GROWTH. AND THAT'S ONE OF THE ASSUMPTIONS THEY'RE ASSUMING ABOUT A 4% PAYROLL GROWTH A YEAR. SO WHEN PAYROLL IS FLAT, UM, IT DOES AFFECT, IT DOES AFFECT THE RATE IN A NEGATIVE SENSE. IN A NEGATIVE SENSE, YES. NO, NO. PAYROLL GROWTH AFFECTS THE RATE IN A NEGATIVE SENSE. WHAT ABOUT THE MONIES THAT HAVE BEEN CONTRIBUTED, UH, WHEN THEY WERE AN EMPLOYEE? THAT'S GREAT THAT ONE OF TWO THINGS WILL HAPPEN. SO WHEN YOUR EMPLOYEES LEAVE, THEY'VE GOT A CHOICE. DO THEY LEAVE THEIR MONEY IN OR DO THEY TAKE IT OUT? IF THEY TAKE IT OUT AND WITHDRAWAL, THAT USUALLY RESULTS IN A RATE DECREASE FOR YOU BECAUSE YOU'RE NO LONGER SAVING FOR THEM. BUT FROM YEAR TO YEAR WE EVALUATED, THEY LEFT IT IN. WELL, THERE'S A CHANCE THAT DOWN THE ROAD THEY COULD DRAW BENEFIT FROM YOU. THEY COULD GO WORK FOR DALLAS COUNTY OR COLLIN COUNTY, ANY, ANY NEIGHBORING COUNTY, THE DISTRICT THAT PARTICIPATES WITH THIS PROPORTIONATELY AND THEY CAN EARN THEIR TIME THAT WAY, COME BACK LATER AND DRAW A BENEFIT. SO IT DOESN'T INCREASE YOUR RATE. IT JUST KIND OF KEEPS IT THE SAME. THE ONLY THING THAT'LL DECREASE IT IS THOSE EMPLOYEES THAT REFUND BECAUSE THAT MEANS WE'RE NO LONGER SAVING FOR THAT. IS THERE A PERCENTAGE THAT YOU LOOK AT THAT NORMALLY DO THE REFUND? DOES IT VARY BY COUNTY? I GUESS IT IT DOES VARY. IT DOES DEFINITELY VARY BY COUNTY AND IT REALLY, UM, WHEN WE LOOK AT ACTUARIAL TABLES, IT'S BROKEN DOWN INTO AGE GROUPS. SO THERE'S A HIGHER PROBABILITY THAT PEOPLE WITH, YOU KNOW, IN THE 25 TO 30 YEAR RANGE ARE GONNA WITHDRAW THAN PEOPLE WHO ARE IN THE 45 TO 50-YEAR-OLD RANGE. SO THE PROBABILITY DIFFERS, UM, BY, BY H AND BY LENGTH OF SERVICE WHETHER THEY'RE GONNA WITHDRAW OR NOT. WHAT ABOUT THE MONEY THAT THE COUNTY CONTRIBUTES TOWARDS THAT PLAN? UM, YOU MEAN YOUR ANNUAL RATE? WELL, THAT'S PLAN EXPERIENCE. WE LOOK AT THAT FROM YEAR TO YEAR. SO IF YOU HAD A SIGNIFICANT NUMBER OF PEOPLE QUIT AND TAKE THEIR MONEY, THEN YOU'RE PROBABLY GONNA, UM, REALIZE A RATE DECREASE THE, THE NEXT YEAR. UM, IF THOSE EMPLOYEES LEFT AND AND LEFT THEIR MONEY IN, THEY DIDN'T DO ANYTHING WITH IT, UM, YOU WOULDN'T NECESSARILY SEE A RATE INCREASE, BUT YOU'D PROBABLY SEE IT STAY THE SAME. YEAH. I GUESS WHAT I'M TRYING TO GET IN, IN MY MIND IS WE'RE, WE'RE IN A, IN A COUNTY THAT IS WE'RE REDUCING PERSONNEL OKAY. THROUGH ATTRITION RIGHT NOW AT BELIEVE. SO WHAT WE'RE TRYING, WHAT I'M TRYING TO UNDERSTAND IS HOW WILL THAT AFFECT OUR OVERALL RETIREMENT PLAN? AND, AND YOU KNOW, I DON'T KNOW WHAT THAT NUMBER WILL WIND UP BEING. IT'S ALREADY AROUND 25, APPROXIMATELY 25 SINCE THE FIRST OF THE YEAR. YEAH. AND I CAN ALREADY PROBABLY SEE IT IF THAT, IF THAT'S BEEN HAPPENING BECAUSE, AND THAT'S PROBABLY A GOOD, IF YOU WANNA FLIP THE PAGE, I'M GONNA SHOW YOU WHERE, WHERE TO LOOK FOR THIS. THESE ARE, THIS IS WHAT'S IN YOUR PLAN ASSESSMENT THAT WE MAIL YOU EVERY YEAR AND IT'S YOUR REASONS FOR RATE CHANGE. SO THIS IS TELLING YOU WHAT'S HAPPENING TO MAKE YOUR RATE GO UP AND DOWN. UM, THESE ARE THE ACTUARIAL ASSUMPTIONS THAT WE LOOK AT. AND IF YOU LOOK AT THIS PAST YEAR, THE LAST COLUMN 2011 AND 2012, IF YOU LOOK AT THAT BOTTOM RED NUMBER THAT UNDER WHERE IT SAYS DEMOGRAPHIC SLASH OTHER CHANGES AND YOU SEE 0.23%, SO YOUR RATE WENT UP 0.23% BECAUSE OF DEMOGRAPHIC CHANGES. AND FROM WHAT YOU'RE TELLING ME, TO ME THAT MEANS THAT THERE WAS NO PAYROLL GROWTH. AND SO THAT DID CAUSE YOUR RATE TO GO UP IN THAT AREA. UM, BECAUSE THE ACTUARIES ARE ASSUMING THAT PAYROLL IS GROWING EITHER BY ADDING MORE EMPLOYEES OR BY RAISES OF 4%. AND THAT'S JUST THE AVERAGE. THEY HAVE TO HAVE ONE. THEY, THEY CAN'T LOOK AT THAT ON AN INDIVIDUAL BASIS FOR, FOR EACH COUNTY THAT THEY SET IT AS A WHOLE FOR SYSTEMWIDE AND SYSTEMWIDE THAT IS UM, WAS WHAT THE AVERAGE IS. EVERY FOUR YEARS THEY DO AN EXPERIENCE STUDY TO LOOK AND SEE IF THEY NEED TO READJUST THOSE RATES UP OR DOWN. UM, BUT RIGHT NOW TO ME IT LOOKS LIKE, UM, THE LACK OF PAYROLL GROWTH IS ACCOUNTING FOR THAT 0.23% BASIS WAS INCREASED TO THE RATE. WELL, WE ALSO HAD A DECREASE IN THE NUMBER OF DAYS WE WORKED. WE HAD LIKE 12 FURLOUGH DAYS. OH, OKAY. AND THAT WAS A 4.4%. I LEAVE REDUCTION IN SALARIES, SO OKAY. A LOT OF PEOPLE. SO THAT PROBABLY, BUT THAT'S THE PAYROLL ASSUMPTION RIGHT THERE. YEAH. BECAUSE UM, WHEN WE LOOK THE DEMOGRAPHIC AND OTHER CHANGES IT TAKES INTO ACCOUNT, A LOT OF THINGS TAKES INTO ACCOUNT, UM, PAYROLL GROWTH OR LACK THEREOF. IT TAKES INTO [01:05:01] ACCOUNT TERMINATIONS AND IF PEOPLE TERMINATED WHAT THOSE PEOPLE DO, IT TAKES INTO ACCOUNT RETIREMENTS AS WELL. IF Y'ALL HAD RETIREMENTS ANYTIME THERE'S A SIGNIFICANT NUMBER OF RETIREMENTS IN THE COUNTY THAT'S GONNA CAUSE IN ANY GIVEN YEAR, THAT'S GONNA CAUSE THE RATE TO GO UP AS WELL BECAUSE PEOPLE ARE DRAWING THAT, THAT BENEFIT ALREADY. THE ONLY OTHER AREA Y'ALL HAD NEGATIVE PERFORMANCE THIS PAST YEAR TO CAUSE A RATE INCREASE WITHIN YOU'LL, YOU CAN SEE INVESTMENT PERFORMANCE. AND JUST TO GIVE YOU AN IDEA, ALL THE RED NUMBERS CAUSE YOUR RATE TO GO UP THE GREEN NUMBERS, EVEN THOUGH THERE'S A NEGATIVE SIGN OUT IN FRONT, THAT ACTUALLY IS POSITIVE PLAN EXPERIENCE. IT LOWERS YOUR RATE. UM, UM, PRETTY MUCH ALL EMPLOYERS, ESPECIALLY THE ONES THAT I'VE GONE OUT AND VISITED THUS FAR HAVE HAD NEGATIVE PLAN EXPERIENCE IN THE INVESTMENT RETURN, WHICH IS CRAZY BECAUSE PEOPLE ARE CALLING US AND THEY'RE LIKE, BUT WE HAVE 12, WE HAD 12.8% RETURN. WHY DO WE HAVE NEGATIVE PLAN EXPERIENCE AND INVESTMENTS WHEN THE YEAR BEFORE YOU HAD POSITIVE PLAN EXPERIENCE AND INVESTMENTS? WELL, LAST YEAR'S RETURN WAS A LOT BIGGER THAN THIS YEAR. IT WAS 26.7 VERSUS 12.8 THIS YEAR. WELL, THE LOSSES FROM 2008 ARE, ARE SPREAD OUT. THEY'RE SMOOTHED OVER 10 YEARS. SO YOU'RE REALIZING A 10TH OF THE PERCENT OF THAT LOSS FOR THE NEXT 10 YEARS UNTIL THE MARKET'S ABLE TO REBOUND COMPLETELY. AND WE CAN, WE CAN WIPE 'EM OUT COMPLETELY, BUT WE'RE STILL NOT TO THAT POINT. SO WE, IT JUST HAPPENS THAT THE LOSSES THAT WERE IN THE PIPELINE WERE GREATER THAN THAT EXCESS OF THAT 12.8% THAT WE WERE ABLE TO PASS THROUGH. SO IT DOESN'T TAKE A FULL 10 YEARS TO SMOOTH THOSE OUT THEN HOPEFULLY NOT. IT, IT'S GIVING THE MARKETS TIME TO RECOVER. HOPEFULLY IT WILL NOT. UM, AND JUST TO LET YOU KNOW, THIS YEAR WE PASSED THROUGH, UM, 18% EARNINGS TO EMPLOYERS INSTEAD OF NINE. BUT UH, UNFORTUNATELY EVEN WITH 18% EARNINGS TO YOUR ACCOUNT, IT STILL WASN'T ENOUGH, UM, FOR THE LOSSES THAT WE HAD TO PASS THROUGH THIS YEAR. AND SO YOU'VE GOT A LITTLE BIT OF A RATE INCREASE THERE FROM INVESTMENT RETURNS. DID Y'ALL HAVE ANY MONEY IN BARNEY MADOFF OR ANY OF THOSE FOLKS LIKE THAT? NO. AND ACTUALLY IF YOU IN THAT LITTLE BROWN SERVING TEXANS, THAT'LL TELL YOU WHERE, UM, UH, IT SHOWS YOU A SNAPSHOT OF OUR DIVERSIFIED PORTFOLIO. BUT ACTUALLY THE, YOU'D HAVE TO VISIT THE WEBSITE TO ACTUALLY LOOK AT WHAT COMPANIES ARE WITHIN, YOU KNOW, THE EQUITIES AND THE, THE REAL ESTATE, UM, INVESTMENT TRUST AND UM, BUT I'M PRETTY SURE THAT THEY ARE NOT, WE ARE UNDER SO MUCH SCRUTINY RIGHT NOW, PENSION PLANS AS A WHOLE THAT THAT THEY ARE NOT INVESTED IN ANY, ANYTHING LIKE THAT. I THINK SOME RETIREMENT SYSTEMS ACTUALLY WERE FOR US. OH, PROBABLY. YEAH. YEAH. I'M I'M PRETTY SURE THEY WERE. YEAH. BUT, UH, WE'RE, THOSE ARE REVIEWED EVERY YEAR IN MARCH TO DETERMINE IF THE BOARD WANTS TO MAKE ANY SEPARATE ALLEGATIONS. BUT, UM, SO LET'S, OKAY, HERE'S THIS, THIS NEXT SLIDE WILL PROBABLY BE OF INTEREST TO YOU. IT'S A PROJECTION OF WHERE YOUR RATE IS GOING OVER THE NEXT WELL, 25 YEARS. UM, THE IMPORTANT THING TO REMEMBER IS THAT THIS CHART IS GONNA CHANGE FROM YEAR TO YEAR. SO IT'S REALLY MORE IMPORTANT TO LOOK AT THE TRENDS AS OPPOSED TO THE SPECIFIC NUMBERS. UM, YOU'RE SEEING THAT RATE INCREASE INCREMENTALLY THROUGH 2019 BECAUSE OF THE INVESTMENT LOSSES IN THE PIPELINE. AND THIS ASSUMPTION OR THIS PROJECTION RIGHT HERE IS ASSUMING THAT T-C-D-R-S HITS 8% EVERY SINGLE YEAR FROM HERE ON OUT, IF WE DON'T HIT 8%, THAT LINE IS GONNA BE HIGHER. IF WE HIT BETTER THAN 8% AS WE HAVE DONE FOR THE PAST TWO YEARS, WELL THEN YOU'RE GONNA SEE THAT LINE FLATTEN MORE. AND SO YOU'RE NOT GONNA SEE A SIGNIFICANT OF A RATE INCREASE. UM, IF, IF WE CONTINUE TO HAVE GAINS IN EXCESS OF 8%, EIGHT, 8%, YOU THEN SEE THAT LINE FLATTEN OUT FOR ANOTHER 10 MORE YEARS. THAT'S BECAUSE WE INCREASED THE AMORTIZATION PERIOD IN WHICH THOSE INVESTMENT LOSSES ARE PAID OFF. SO WE SMOOTH 'EM FOR 10 YEARS AND THEN IT STAYS AT THAT RATE AND THEN IT STAYS THAT WAY FOR ANOTHER 10 YEARS, UM, FOR EMPLOYERS TO PAY OFF THAT INVESTMENT PIECE ALONE. UM, AND THAT'S JUST RATE RELIEF SO THAT WE DON'T HAVE BIG SWINGS AND RATES FROM YEAR TO YEAR. WE'RE TRYING TO KEEP THEM AS STABLE AS POSSIBLE. AND THEN OF COURSE YOU SEE THAT BIG RATE DROP OFF, THAT'S BECAUSE THAT REPRESENTS THAT 20 YEAR AMORTIZATION WHERE THE LOSSES ARE PAID OFF. SO THE RATE DROPS DOWN SIGNIFICANTLY. HOPEFULLY WE'RE GONNA HAVE MORE POSITIVE YEARS AND THE PROJECTION THAT YOU'RE SEEING HERE IS NOT GONNA CLIMB AS STEEPLY AS WE ARE PROJECTING. AND I CAN RUN THESE FROM YEAR TO YEAR, WHICH IS GREAT BECAUSE IT TAKES EACH YEAR'S INVESTMENT GAINS AND LOSSES INTO ACCOUNT AND, AND IT ADJUSTS, UM, THE FORECAST. OKAY. ALRIGHT. YOU CAN BETTER FUND FUNDER PLAN. UM, THIS IS JUST AN OPTION. UM, IF YOU WANTED TO ELECT A HIGHER ELECTED RATE ABOVE WHAT WE REQUIRE OR SEND IN A LUMP SUM CONTRIBUTION, THAT'S JUST PAYING DOWN YOUR UNFUNDED LIABILITIES FASTER. YOU'RE [01:10:01] PAYING THEM DOWN ANYWAY BY PAYING YOUR REQUIRED RATE. SOME EMPLOYERS WANT TO PAY THEM DOWN FASTER, THEY WANT TO DECREASE THAT UNFUNDED LIABILITY. THAT'S WHAT THOSE EXTRA PAYMENTS DO. SO THAT'S ALWAYS AN OPTION AS WELL. AND THAT TAKES US TO THE END. I'M JUST ENDING WITH AN INVITE, UM, TO OUR ANNUAL CONFERENCE. THAT'S GONNA BE ON JUNE 27TH THROUGH 29TH. SO MOST CERTAINLY, IF ANY OF YOU NEED EXTRA, UM, CREDIT HOURS, YOU CAN EARN UP TO 15 HOURS BY ATTENDING THE CONFERENCE AND BASICALLY JUST GET A WHOLE LOT MORE INFORMATION OF THE KIND OF STUFF THAT I'VE JUST GONE OVER. UM, BUT FROM OUTSIDE SPEAKERS, YOU GET AN OUTSIDE PERSPECTIVE. UM, TRENDS IN RETIREMENT, WHAT'S GOING ON WITH PENSION PLANS. MARK OMAN, WHO IS OUR OUTSIDE ACTUATE MILLIMAN, HE SPEAKS TO THE CROWD AND SO ON AND SO FORTH. BUT THAT'S IT. I'D BE HAPPY TO ANSWER ANY QUESTIONS THAT I DIDN'T COVER IN THE PRESENTATION. GREAT, GREAT PRESENTATION. YEAH, I THINK HE'S ANSWERED EVERYTHING. I YEAH, IT, IT'S GOOD INFORMATION TO HAVE. WELL I KNOW, I MEAN I'VE BEEN GOING OUT SINCE JANUARY AND VISITING AND THERE'S JUST SO MUCH EVEN WITHIN PEOPLE THAT PARTICIPATE WITH US, SO MUCH SKEPTICISM ABOUT PENSION PLANS AS A WHOLE, THAT WE'RE REALLY JUST TRYING TO GET OUT THERE AND LET PEOPLE KNOW THAT WE, WE RUN IT DIFFERENTLY THAN, THAN THE ONES THAT YOU'RE HEARING ABOUT IN THE NEWS AS FAR AS CONTROLLING LIABILITIES. SO INVESTMENT PORTFOLIO MUST BE REALLY GOOD TO RETURN THOSE RATES BECAUSE I'M SITTING HERE THINKING, IF I GIVE YOU MY LIFE SAVINGS OF $300, CAN I GET 18%? AND THAT'S JUST YOUR EMPLOYER ACCOUNT. THAT'S, THAT'S, THAT'S WHAT'S NICE. YOU'RE, YOU'RE BEARING THE RISK. SO Y'ALL, OF COURSE YOUR EMPLOYER ACCOUNT THOUGH IS GOING TO FUND THOSE BENEFITS FOR YOUR EMPLOYEES. SO IT'S REALLY, YOU KNOW, FOR THE BENEFIT OF YOUR EMPLOYEES. BUT THAT'S WHERE THE EXTRA EARNINGS GO BECAUSE Y'ALL ARE BEARING THE INVESTMENT RISK. YEAH. SO I APPRECIATE YOU COMING AND TELLING US. WELL, THANK YOU FOR HAVING ME OUT AND THE DECISION ON WHAT WE DO AS FAR AS WHAT, WHAT, UH, YOU KNOW, HOW WE FUND OUR PROGRAM. IT DOESN'T HAVE TO BE MADE UNTIL, UH, DECEMBER 15TH. YEAH. YOU'VE GOT GO DECEMBER 15TH TO MAINTAIN IT OR MAKE ANY CHANGES. OKAY. OF COURSE THAT DECISION WOULD AFFECT OUR BUDGET, SO WE ABSOLUTELY, OBVIOUSLY BUDGET. I GUESS WE WOULD, WE SHOULD KNOW WHAT THOSE COSTS COULD BE, WOULD BE PRIOR TO THE DOING BUDGET. IF WE WANNA, IF YOU WANNA MAKE ANY SORT OF CHANGES, I CAN GIVE YOU PROJECTIONS LIKE WHAT I JUST GAVE YOU BASED ON CHANGES BY EITHER DECREASING BENEFIT LEVELS OR INCREASING THEM. UM, AND I CAN TELL YOU IF MAKING ANY CHANGES, RAISING OR LOWERING BENEFITS, I CAN TELL YOU WHAT THE COST, WHAT THE LOWERED COST WOULD BE. SO YOU JUST HAVE TO EMAIL ME OR CALL ME. I CAN RUN THAT FOR YOU. WHAT ARE, WHAT ARE THE DISCUSSIONS YOU'RE HAVING WITH OTHER COUNTIES AND OTHER DISTRICTS FOR THAT MATTER? UM, INDICATING IS ANYBODY MAKING ANY CHANGES LY NO, WE HAD MORE PEOPLE MAKING CHANGES LAST YEAR. UM, I DON'T KNOW IF Y'ALL CAUGHT WIND OF, OF COLLIN COUNTY. THEY WERE PRETTY, THEY WERE IN THE NEWS A LOT AND THEY DID DECREASE THEIRS THAT THEY HAD A PRETTY SIGNIFICANT, WELL THEY WERE AT THE TOP OF 250. YEAH. AND THEY LOWERED IT DOWN TO 200 TO MAKE IT IN LINE WITH, WITH THE SYSTEM WIDE AVERAGE. UM, THAT WAS PRETTY MUCH THE MOST SIGNIFICANT. EVERYBODY ELSE IS, IS KIND OF, OR IN THIS AREA IS HOLDING TIGHT. DALLAS COUNTY HASN'T MADE ANY CHANGES. TART COUNTY HASN'T MADE ANY CHANGES. UM, HARRIS COUNTY, ONE OF OUR LARGEST OTHER, THEY DIDN'T, UM, CHANGE THEIR EMPLOYER MATCH, BUT THEY DID LOWER THEIR EMPLOYEE DEPOSIT RATE FROM 7% TO 6% SO THAT, THAT DID LOWER THEIR RATE. UM, I THINK THEY KIND OF HAD THE MENTALITY OF, WELL, WE'RE PUTTING MORE MONEY, WE'RE WE'RE SENDING THEM HOME WITH MORE MONEY SO THAT THEIR EMPLOYEES AREN'T GONNA GET AS KIND OF DISGRUNTLED HAD, MAYBE THEY DECREASED THE MANAGEMENT WORK. I DON'T THINK THEY HAD ANY BACKLASH FROM THE EMPLOYEES BECAUSE THEY WEREN'T GIVING RAISES, BUT SO, UM, THEY JUST DECREASED THE AMOUNT OF MONEY THAT WAS COMING OUT OF THEIR POCKET TO GO TOWARDS RETIREMENT. SO, UM, BUT WE REALLY HAVEN'T SEEN SIGNIFICANT, SIGNIFICANT SWINGS IN PEOPLE ADJUSTING THEIR BENEFIT LEVELS. SO OUR PLAN IN KAMAN COUNTY IS PRETTY AVERAGE, PRETTY NORMAL AS ABSOLUTELY NORMAL 7%, 200% MATCH. YOUR ELIGIBILITY RULES ARE RIGHT ON THE AVERAGE EIGHT YEAR VEST RULE IS 75, 30 YEARS IN THE AGE THAT IT'S ALL THE AVERAGE. SO YOU'RE NOT DOING ANYTHING EXCESSIVE. UM, IN THE LEAST. UM, YOU'RE, YOU'RE ON AVERAGE WITH, WITH WHAT OF THE OTHER 623 PLANS ARE DOING. SO, AND YOUR RATE IS ACTUALLY PRETTY RIGHT NOW. THE AVERAGE RATE SYSTEM WIDE IS UH, 10.99%. OH REALLY? OH YEAH. IT'S SIGNIFICANTLY HIGHER THAN, THAN WHAT Y'ALL HAVE HERE. SO, UM, THAT AND EVEN WHAT YOUR RATES PROJECTED TO GO TO IS BELOW SYSTEM Y. WE'RE PROJECTING WHEN ALL LOSSES ARE PASSED THROUGH, I THINK WE'RE PROJECTING NOW AFTER 2008, WE'VE PROJECTED THEM AVERAGE SYSTEM WIDE TO GO UP TO ABOUT 16% SINCE GAINS IN 2009 AND 2010. WE'RE NOW ESTIMATING THEM SYSTEM WIDE TO GO UP TO 12%. SO IN TWO YEARS WE'VE MANAGED TO DECREASE THAT BY 4% AND Y'ALL ARE SITTING BELOW THAT. I THINK YOURS WAS RIGHT AT ABOUT 10. IF, IF WE DON'T HAVE ANY MORE EXCESS GAINS, THAT'S [01:15:01] WHERE WE'RE EXPECTING YOUR RATE TO GO. THAT'S GOOD. GOOD. ANYBODY HAVE ANY QUESTIONS CHRISTINE? I HAVE ONE. THE UH, YES. THE RATE CHANGE WOULD BE AFFECTED JANUARY ONE. THAT IS CORRECT? YES. Y'ALL ARE AT 8.46 UNTIL JANUARY 1ST, 2012. SO IT'S A CALENDAR YEAR. YES. MM-HMM . THAT'LL AFFECT US A LITTLE BIT IN OUR BUDGET OBJECTIONS. ALRIGHT. THANK YOU VERY MUCH FOR COMING UP. THANK YOU BRIAN. GOOD TO APPRECIATE IT. HEAR DIFFERENCE IN THE RETIREMENT. I'M GONNA GO OVER TO THE CAD NOW AND GIVE HIM THE SAME SPEECH. SO , THANK YOU VERY MUCH. THANK YOU. CHRISTINA. CALL ME OR EMAIL ME WITH ANY, ANY QUESTIONS. OKAY. I'M SURE WE'LL HAVE SOME PROBABLY. OKAY. THANK YOU. ALRIGHTYY. IT'S 10 49 45. 10 45. Y'ALL WANT TAKE A QUICK BREAK AND THEN COME BACK AND ADD ON THE PAYMENT? LET'S DO THAT. TAKE ABOUT 10 MINUTES BREAK. LET'S DISCUSS, LET'S SEE, DISCUSS AND ACT ON PLAN FOR PAYMENT. MY, I DO HAVE ONE LITTLE PROBLEM WITH MY IN AND OH I, YOU KNOW, MY W FOUR WHEN I FILLED THAT OUT, I JUST, NOT NECESSARILY, SO I ABOUT $78 TAKEN OUT. THAT FIRST PART I MUST HAVE WHEN I DID MY TAXES. I MUST, THIS MIGHT BE THE LAST BILL WE, AND I HATE HAVING, I HAVE A CPA. YEAH. DON'T, DID YOU LOSE TWO OF OH, I FEEL SORRY FOR THEM. I DON'T, WELL I DON'T KNOW 'CAUSE I'VE NEVER TALKED TO THEM. I, AND I JUST CAN'T IMAGINE WHAT THEY'RE GOING DO. YOU SENT ME WE PAYMENTS OPPOSED TO MUST BE, I WONDER HOW MANY BOOKS. BOOKS ARE MESS UP. GOT TWO TRUCKS WITH MATT. THE FIRST ONE WE DID BUT DON'T GOT 18 MONTH COME ACROSS. BUT THEN I ACTUALLY BOUGHT TWO INTERNATIONAL FOR 78,000. WELL THAT TAKE YOUR $78, IT WOULD TAKE ALL OF YOUR $78. YEAH. PLUS MORE. 78 PERFECT. AND 1515 FIXED. BUT THE LETTER, THE NEW LETTER, THEY OWE THIS AMOUNT. YOU GOTTA MAKE PAPER. OH AND THEN YOU GOTTA SELL IT BACK TO US. LOOK AT IT BEFORE PAID ANYTHING. YEAH, THAT'S RIGHT. THIS IS I THINK MONEY. MONEY. YEAH, IT BUT IT DOESN'T SAY WHETHER SHE OWES IT OR, AND TALKING ABOUT IT ON THE NEWS. WON'T THAT BE OVER WITH SOME DAYS WHEN WE WERE MARRIED AND THINK THAT WAS 2004. THAT'S THAT'S SEVEN YEARS. SHE JUST GOT, DID YOU FIND BUT IN ONE MONTH'S TIME THEY HAD 270 SOMETHING DOLLARS AND INTEREST, BUT HE'S NOT HAVING PENALTIES ON. SO ANYWAY, HER HUSBAND WENT DOWN, WENT DOWN AND TO KEEP IT. OH YEAH. CHURCH [01:20:06] EX-HUSBAND. SURE. I THINK THAT'S WRONG TO DON'T IS IT 60, YOU KNOW OR IS IT 48? IT'S PROBABLY 48 FOR PERSONAL RECORDS. KEEP THREE YEARS PAST FOR BUSINESS IT'S SEVEN YEARS SEEMED LIKE A GOOD IDEA AT THE TIME. SHE HAS NO RECORDS, NO NOTHING TO SHOW ANYTHING. I DON'T THINK SO. BUT THEY DON'T SAY ON THERE THAT IT'S MONEY OWE. THE ONLY STATEMENT WAS IF THIS IS MONEY OWE YOU PAID 300, YOU RECEIVE A CHECK IN FOUR TO SIX WEEKS. IF THIS MONEY IS OWED DIDN'T MAKE, PLEASE MAKE YOUR PAYMENT. SAID WELL SIX WEEKS AND SEE IF WE MAKE SURE WE BROUGHT IT BACK HOME. NO, YOU WERE THERE WEREN'T. YEAH, WE WERE THERE. SHE GOT BID AGAINST DAVE GOT THE 300 AND I FIVE. STOP THAT. YOU'LL BACK ANOTHER ONE. IT FITS IT BOTH WAYS AND THEN THAT WAY THEY DON'T HAVE TO SAY THAT THIS IS YOU OWE MONEY BECAUSE WE DAVID AND IT'S ON THE NEWS TO HELP WITH THAT SHERIFF. THEY WERE TALKING ABOUT ONE THREE TOLD WANT HELP OUT. BUT YOU KNOW, THERE, THIS IS A 7-YEAR-OLD DEAL. THAT GUY WAS PRETTY INTERESTING. BUT IT JUST SEEMED LIKE A HISTORY LESSON, DIDN'T IT? YEAH, YEAH. AFTER ABOUT 45 MINUTES , HE WAS DEFINITELY PUTTING THE TWO GENTLEMEN AT MY TABLE. SITTING, SITTING THERE SOUND ASLEEP. WHAT WAS IT? WHAT WAS IT? WHO WENT TO UH, YEAH, I MEAN I ENJOYED SOME OF IT, BUT UH, AFTER ABOUT FOUR FIVE, I WAS JUST ABOUT, HE DIDN'T SAY ANYTHING BUT WASN'T I, HE NOBODY KNOWS THE LAW. HE JUST WENT ON AND ON AND ON AND ON. WENT IN. HE STARTED WAY BACK WHEN THE, THAT CONSTITUTION WAS MADE. WENT EVERY 10 YEARS. WHO DID WHAT AND WHERE WAS THAT? SHE LIKED IT. SO SHE, IT'S VERY BEAUTIFUL. IT WAS WORTH, I, I DIDN'T KNOW ANYTHING ABOUT IT. BUT WHEN, WHEN WAS IT? UH, UM, WE HAD TO GO TO A TALENT SHOW AT ONE OF THE SCHOOL SO WE WOULDN'T HAVE KNOWN. AND IT HAD TOO MUCH TALENT. IT WENT ON FOREVER. . IT HAD LOTS OF TALENT. IT WAS KIDS AND THE MAJORITY OF THE KIDS WERE REALLY GOOD. YEAH, WE WERE INVITED. HE'LL SAY, DID YOU? NO, I WAS JUST A LITTLE PART OF IT. 3 0 5. JUST A LITTLE. I GOT NO THOUGHT THEY STOPPED. GREAT. THE INTEREST TO ME. YOU COULD TALK TO A SENATOR OF THAT MAYOR AGREEMENT THAT WE DID. SAID YOU DO SUBDIVISION CITY. DO I HAVE AN BOARD? MY, YOU KNOW, THAT'S WHAT THIS IS. I NEVER KNOW WHAT I HAVE. WHAT I DON'T HAVE WHAT I SAID I HAVE AN EM BOARD IN MY THING. I DID. ALRIGHT. WE HAVE A MOTION TO ADJOURN. WE JUST KEEP THAT MONEY GOING. IT'S UP TO YOU. WE CHARGE PAY THE BILLS. WE HAVE A MOTION TO JERRY. I'LL MAKE THAT MOTION. ALL RIGHT. I THEY SECOND. ANY OTHER DISCUSSION? ALL IN FAVOR SAY AYE. A. THOSE OPPOSED? ALRIGHT, NOW WE HAVE A MOTION TO APPROVE. SO MR. MANNING, MR. ALL IN FAVOR SAY AYE. A. THOSE OPPOSED. GOOD DEAL. THANK YOU GUYS. NEXT TIME WE'LL MEET AT THE BACK DOWN IT'LL BE BACK. [01:25:13] OKAY. BLESS YOU. * This transcript was created by voice-to-text technology. The transcript has not been edited for errors or omissions, it is for reference only and is not the official minutes of the meeting.