Sep 20, 2022 Town of Hilton Head Finance & Administrative Committee

[00:00:01]

AND I'D

[1. Call to Order]

KRISTA, ARE WE IN COMPLIANCE WITH FOYA? YES, SIR.

WE ARE.

THANK YOU.

YES, SIR.

WE ARE.

WOULD YOU CALL THE ROLE? YES, SIR.

MR. BROWN HERE, MR. HARKINS HERE, MR. STANFORD WILL BE HERE SOON.

AND MR. LENNOX HERE ALL PRESENT.

[4. Approval of the Minutes]

KRISTA, ARE THERE ANY CHANGES, ADDITIONS OR DELETIONS IF FOR APPROVAL SECOND, ALL OTHERS IN FAVOR, PLEASE SIGNIFY BY SAYING I, I OPPOSED THE SAME.

CHRISA DO WE HAVE AN APPEARANCE BY ANY CITIZENS? UH, YES SIR.

WE DO.

WE HAD, UH, MR. SKIP, HOLAND SIGNED UP TO ADDRESS COUNCIL OR THE COMMITTEE TODAY, BUT I DO NOT SEE HIM SERVE.

SO THAT WOULD CONCLUDE APPEARANCE BY CITIZENS.

ANY OTHERS? NO, SIR.

OKAY.

THANK YOU.

[6a. Report from the Community Foundation of the Lowcountry Concerning the American Rescue Plan Act 2021 Grants -Scott Wierman, President and CEO]

THE FIRST IS A REPORT FROM THE COMMUNITY FOUNDATION OF THE LOW COUNTRY PERTAINING TO THE AMERICAN RESCUE PLAN ACT 2021 GRANTS.

MR. RIMAN.

GOOD TO SEE YOU AGAIN.

NICE TO SEE YOU ALL.

THANK YOU.

GOOD MORNING, MY, UH, COLLEAGUE, UH, DEBBIE CAHOUN AND I ARE HONORED TO BE HERE TO GIVE YOU AN UPDATE ON THE WORK OF THE, UM, THE COMMITTEE THAT HANDLED THE APA DISTRIBUTIONS.

UM, MY REMARKS ARE GONNA BE GENERAL, AND THEN DEBBIE'S GONNA HAVE MORE SPECIFICS FOR YOU ON THIS LATEST ROUND.

I BELIEVE YOU ALL HAVE RECEIVED A REPORT OF ALL THE FUNDING AND AS WELL AS THE SUMMARY OF THE ENTIRE 1 MILLION, AND IT'S NOW BEEN AWARDED, I FIRST WANT TO THANK THE COUNCIL, UM, FOR, UM, MAKING THE COMMITMENT EARLY ON TO ALLOCATE A PORTION OF THE APA FUNDS AVAILABLE TO THE TOWN, TO BE ABLE TO PUT OUT INTO THE COMMUNITY, THROUGH OUR NONPROFIT PARTNERS.

AS I MENTIONED, I THINK ON MY FIRST VISIT BEFORE THIS COMMITTEE, THIS, UM, THE TOWN OF HILTON HEAD WAS THE FIRST MUNICIPALITY IN THE STATE OF SOUTH CAROLINA TO DO SO.

AND IT HAS BEEN USED IN OTHER COMMUNITIES AROUND THE STATE TO SAY, LOOK WHAT, WHAT THEY DID AND THERE'S AN OPPORTUNITY.

SO IT'S SOMETHING I THINK YOU ALL, UH, SHOULD BE PROUD OF.

YOU RESPONDED QUICKLY AT A TIME WHEN THE NEEDS WERE GREAT, INSTEAD OF WAITING A YEAR OR TWO DOWN THE ROAD TO FIGURE OUT WHAT TO DO WITH IT.

SO THAT IS, UM, THAT IS APPRECIATED.

THE SECOND THING YOU GOES TO OUR NONPROFIT PARTNERS, BECAUSE THEY'RE THE ONES THAT ARE IN THE TRENCHES EVERY DAY, WORKING WITH PEOPLE WHO HAVE, UH, CHALLENGES AND NEED, UM, ASSISTANCE.

AND THEY HAVE RESPONDED IN TREMENDOUS WAYS, NOT ONLY THROUGH JUST THE APA FUNDS, BUT OVER THE LAST TWO AND A HALF YEARS, SINCE THE PANDEMIC HIT OUR, UM, OUR COUNTRY, MANY OF THEM HAVE HAD TO REENGINEER HOW THEY OPERATE.

AND AT A TIME WHEN THE DEMAND WAS PERHAPS THE GREATEST IN THEIR HISTORIES IN TERMS OF NEEDS, MANY OF THE ORGANIZATIONS LOST CORE VOLUNTEER BASE THAT WAS ESSENTIAL TO THE WORK AND THEY'VE HAD TO FIGURE OUT WORKAROUNDS SO THAT THE WORK COULD CON UM, COULD CONTINUE.

SO WE'RE THANKFUL FOR THAT.

AND THEN THE THIRD GROUP I'D LIKE TO THANK WAS THE COMMITTEE.

AS YOU KNOW, WE STRUCTURED THIS WITH AN ADVISORY COMMITTEE, MADE UP OF A FEW REPRESENTATIVES OF THE FOUNDATIONS BOARD, AS WELL AS SOME COMMUNITY MEMBERS.

SO SPECIFICALLY I'D LIKE TO THANK PEACHES PETERSON.

WHO'S A BOARD MEMBER OF THE FOUNDATION WHO SERVED AS CHAIR OF THIS ADVISORY COMMITTEE.

GALY MILLER, SHEILA MAHONEY, CHERRY FAREN, HERB FORD, DOUG FLETCHER.

AND OF COURSE JOHN TROYER REPRESENTING THE TOWN, THAT GROUP, UM, PUT IN A TREMENDOUS AMOUNT OF TIME AND THOUGHT, UM, IN THE PROCESS THEY REVIEWED ALL THE APPLICATIONS THAT CAME THROUGH OUR PORTAL.

THEY SCORED THOSE, UM, APPLICATIONS, AND THEN THEY MET TO DELIBERATE ABOUT WHAT WAS THE BEST, UM, DECISION ON, ON TO IMPACT THE, THE COMMUNITY.

SO, AS I MENTIONED, AS OF, UM, A WEEK OR SO AGO, THE $1 MILLION THAT, UM, HAD BEEN COMMITTED, UM, HAS NOW BEEN COMMITTED AND HAS BEEN AWARDED AND IN THE HANDS OF THE NONPROFITS, UH, DOING THE WORK, THIS HAPPENED OVER THREE GRANT, UH, GRANT CYCLES THAT STARTED EARLIER THIS YEAR AND THE MOST RECENT GRANT CYCLE, DEBBIE WILL TALK TO YOU, UH, IN A MINUTE ABOUT THAT IN ADDITION TO THE MONEY GOING OUT, WHICH IS GREAT TO HELP OUR NEIGHBORS, UM, IN, UH, IN NEED SOME OTHER GREAT THINGS HAPPENED AS A RESULT OF THIS,

[00:05:01]

SO, UH, EVERYONE LIKES A RETURN ON THE INVESTMENT AND YOU CERTAINLY, UM, SHOULD BE PLEASED WITH THAT.

THE OTHER THING THAT'S VERY EXCITING IS, UM, A NUMBER OF NEW COLLABORATIONS HAVE HAPPENED, AND DEBBIE'S GONNA TALK IN MORE DETAIL ABOUT, UM, A SESSION THAT SHE HOSTED JUST A COUPLE WEEKS AGO.

AND THERE HAVE BEEN TWO OR THREE OF THOSE NOW WHERE ALL OF THE FUNDED MEMBERS HAD THE OPPORTUNITY TO COME TOGETHER TO SHARE WHAT THEY WERE DOING.

LOOK FOR ADDITIONAL PARTNERSHIPS AND SOME EXCITING THINGS HAVE STARTED TO SPAWN OUT OF THAT.

I JUST WANNA SAY THAT THESE PUBLIC PRIVATE PARTNERSHIPS, UM, ARE A BEST PRACTICE.

AND AGAIN, THE FOUNDATION IS HONORED TO HAVE BEEN A PARTNER WITH THE TOWN ON THIS AS, AS WELL AS OTHER, UM, PARTNERSHIPS IN THE PAST, UNRELATED TO THE OPERA PROCESS.

UM, YOU MAY BE AWARE OF THE FACT THAT THE TOWN RECENTLY WAS INFORMED THAT, UM, BECAUSE OF THE PROCESS THAT THE TOWN HAD BACK IN 2020 IN PARTNERSHIP WITH THE FOUNDATION WITH THE C B D G HUD MONEY FOR COVID RELIEF, BECAUSE THAT WAS DONE EFFICIENTLY AND THE REPORTS WERE, UM, WELL DONE.

THE TOWN HAS BEEN AWARDED ADDITIONAL $102,000 FROM MONEY FROM OTHER COMMUNITIES THAT DIDN'T SPEND IT, THAT MONEY IS COMING BACK INTO THIS COMMUNITY AND WILL BE DISTRIBUTED BACK OUT TO ORGANIZATIONS.

SO THESE TYPES OF PART PUBLIC PRIVATE PARTNERSHIPS, UM, CAN, UH, SERVE OUR COMMUNITY EXTREMELY WELL.

AND WE'VE BEEN HONORED TO BE A PARTNER IN THIS.

I'M GONNA TURN IT OVER TO DEBBIE AND SHE'S GOT SOME MORE SPECIFIC INFORMATION ON THIS LATEST ROUND AND, UM, SOME ADDITIONAL INSIGHTS.

THANK YOU.

I WANNA, UM, JOIN SCOTT IN THANKING THE TOWN OF HILTON HEAD FOR CARVING OUT A PORTION OF THE AMERICAN, UM, RESCUE PLAN ACT FUNDS TO DISTRIBUTE BACK INTO, UH, NONPROFIT ORGANIZATIONS WHO ARE SERVING THE COMMUNITY MEMBERS WHO NEED IT THE MOST, UM, AS THEY FACE THE INCREASING EFFECTS OF THE A, THE AFTER EFFECTS OF COVID ARE INCREASING, UM, NEEDS AS THE AFTER EFFECT.

UH, JUST TO REMIND YOU, THIS PARTNERSHIP STARTED OCTOBER OF 2021.

UM, WE, UH, IT WAS VERY IMPORTANT TO THE COMMUNITY FOUNDATION FROM THE VERY BEGINNING THAT WE IDENTIFIED THE NONPROFITS THAT WE KNEW WOULD, UH, MEET THE CRITERIA FOR FUNDING AS OUT PROVIDING SERVICES THAT WERE OUTLINED IN THE, UM, GUIDELINES.

I EMAILED EACH OF THOSE ORGANIZATIONS, OUR COMMUNICATION STAFF ALSO POSTED INFORMATION ON SOCIAL MEDIA AND ON OUR WEBSITE.

HE, UH, OR THEY COORDINATED WITH THE COMMUNICATION STAFF FROM THE TOWN FOR PRESS RELEASES AND FOR, UM, FOR THE TOWN SOCIAL MEDIA AS WELL THROUGH THE WORK OF THE HILTON HEAD ISLAND, ARPA SLASH SL F RF COVID 19 COMMITTEE ONE, AS SCOTT SAID, 1 MILLION HAS BEEN DISTRIBUTED TO NONPROFIT AGENCIES WHO ARE SERVING THE NEEDS OF THE COMMUNITY.

FINAL REPORTS ARE DUE ON JUNE 30TH.

SO THERE'S A LOT OF WORK THAT HAS TO BE DONE WITH THAT LAST $500,000, UM, BETWEEN NOW AND THEN, UH, SINCE THOSE FINAL DECISIONS WERE MADE LAST MONTH, I DID HAVE THE PRIVILEGE OF MEETING WITH REPRESENTATIVES FROM 15 OF THE 20 ORGANIZATIONS THAT RECEIVED FUNDING.

WE BROUGHT 'EM INTO THE COMMUNITY FOUNDATION, AND WE ASKED THEM TO, UM, SHARE THEIR PROJECTS WITH EACH OTHER.

MANY OF THEM ALREADY COLLABORATE.

THEY SHARED THEIR COLLABORATIONS AND THEY SHARED ADDITIONAL OPPORTUNITIES TO COLLABORATE.

SO IT WAS A, A WONDERFUL EXPERIENCE.

WONDERFUL FOR ME TO SEE THROUGH, UM, THROUGH THIS FUND, AS YOU'LL SEE ON THE REPORT THAT YOU HAVE OVER THE LAST, UM, 11 MONTHS, 12% OF THE FUNDS WERE AWARDED TO AGENCIES THAT PROVIDE CHILDCARE OR AFTER SCHOOL TUTORING, 22% WAS AWARDED TO AGENCIES WORKING IN THE HEALTH OR MENTAL HEALTH SPACE.

22% WAS AWARDED TO AGENCIES, UM, RESPONDING TO, TO EMERGENCY HOUSING RELIEF.

44 WAS RESPONDING TO, UH, AWARDED TO AGENCIES WHO ARE RESPONDING TO, UM, FOOD AND SECURITY THAT NEED, AS YOU, I'M SURE YOU ALL KNOW IS INCREASING WITH THE, UH, RISING COST OF FOOD AND, AND INFLATION AS AN AF AFTER EFFECT OF COVID AND ALL THAT'S GOING ON IN THE WORLD TODAY, THE AGENCIES THAT I MET WITH, UH, UH, SHARED, UM, THEIR NEEDS, THEY MAY HAVE, AND OTHER OPPORTUNITIES THAT THEY HAD, UM, WE HAD, UM, MENTAL HEALTH AMERICA ASKED FOR THE FOLKS WHO WERE WORKING WITH INDIVIDUALS TO HELP IDENTIFY THOSE WHO COULD BENEFIT FROM THE SCHOLARSHIPS THAT THEY HAD RECEIVED.

UM, THERE WAS DISCUSSIONS BETWEEN THE PENN MINISTRY AT FIRST PRESBYTERIAN CHURCH AND SANDALWOOD ABOUT RESPONDING TO HOMELESS

[00:10:01]

SO IT WAS A GREAT CONVERSATION.

AND I LEARNED A LOT, THE, THE ORGANIZATIONS LEARNED A LOT.

THEY LEFT THE FOUNDATION WITH THE DIRECTORY OF ALL OF THOSE WHO ARE PROVIDING SERVICES, WHAT SERVICES THEY'RE PROVIDING AND CONTACT INFORMATION, SO THAT THEY CAN CONTINUE TO WORK TOGETHER BEFORE THE AGENCIES LEFT.

THEY REMINDED ME.

AND SO I'LL REMIND YOU THAT WE NEED TO CONSIDER THIS SUPPORT, UM, AS CRITICAL TO THE WHOLE INDIVIDUAL WHO RECEIVES IT, NOT JUST, UM, LIMITED TO THE, UH, TYPE OF SUPPORT THAT THE INDIVIDUAL RECEIVES.

FOR INSTANCE, IF INDIVIDUALS ARE RECEIVING FOOD FROM SANDALWOOD THAT FREES UP OTHER RESOURCES SO THAT THEY CAN PAY THEIR RENT, IF THEY'RE RECEIVING RENTAL ASSISTANCE, MAYBE THEY CAN AFFORD TO PAY A MEDICAL BILL OR CHILDCARE.

SO WE NEED TO REMEMBER THAT THAT ALL OF THIS IS CRUCIAL TO THE, UH, VULNERABLE POPULATION RIGHT NOW IN HILTON HEAD, WHO, WHO IS, UM, UH, HAS THE MOST NEGATIVE IMPACT BY ALL THAT'S GOING ON.

I WANNA THANK YOU AGAIN FOR ALL THAT YOU ARE DOING FOR THE COMMUNITY.

AND I WANNA THANK THE TOWN FOR CHOOSING THE COMMUNITY FOUNDATION TO PARTNER WITH THIS IN THIS EFFORT.

THANK YOU, DEBBIE AND SCOTT, WHEN WE INITIATED THIS, UH, THIS PROCESS TO DISTRIBUTE THE APA FUNDS, UH, IN LISTENING YOUR SUPPORT, UH, AND YOUR EXPERIENCE, WE REALLY DIDN'T KNOW WHAT TO EXPECT.

UH, I CAN SAY PERSONALLY, UH, I NEVER EXPECTED THIS KIND OF SUCCESS.

UH, COULDN'T BE MORE PLEASED WITH THE WAY YOU HANDLED IT AND THE LEVERAGE AND THE COLLABORATION IS A BYPRODUCT THAT WE NEED TO KEEP GOING.

THANK YOU.

UH, OPEN IT UP FOR COMMON COMMITTEE.

YOU, YOU CERTAINLY HAVE HAD A TREMENDOUS MULTIPLIER EFFECT THROUGHOUT THE COMMUNITY.

AND, UH, I THINK THAT THAT SPEAKS WELL TO YOUR COMMUNITY VISION, AND IT SPEAKS WELL TO, UH, YOUR INVOLVEMENT AS, AS PARTNERS WITH OTHER, UH, CHARITABLE ORGANIZATIONS IN THE COMMUNITY.

SO, UH, WE, WE JUST SAY, THANK YOU, YOU'RE, YOU'RE WONDERFUL STEWARDS OF, OF PUBLIC RESOURCES.

THANK YOU.

THANK YOU.

THANK YOU.

UM, I KNOW THAT WE CHOSE THE RIGHT ORGANIZATION TO PARTNER WITH THE TOWN TO MANAGE THIS PROJECT.

AND SO I SALUTE YOU FOR DOING SUCH AN OUTSTANDING JOB.

THE SPREAD OF THESE FUNDS OVER DIFFERENT NEEDS SEEMS TO MAKE SO MUCH SENSE THE WAY YOU DIVIDED THAT UP.

YOU UNDERSTAND THOSE NEEDS CERTAINLY MUCH BETTER THAN WE DO.

AND SO YOU WERE ABLE TO USE YOUR KNOWLEDGE AND, AND EXPERIENCE WITH THIS IN MAKING IT BETTER.

I NEVER ANTICIPATED THAT THERE WOULD BE THE ADDITIONAL COLLABORATION BETWEEN THESE AGENCIES AS A RESULT OF THAT AND BRINGING THEM TOGETHER IN A ROOM FOR A MEETING LIKE THAT DID NOTHING BETTER THAN PUTTING THE PEOPLE TOGETHER SO THAT THEY KNEW EACH OTHER'S FACES IF THEY DIDN'T KNOW EACH OTHER'S FACES BEFORE.

AND SO THAT'S JUST OUTSTANDING.

SO IT REALLY DOES FEEL GOOD THAT WE DID SOMETHING RIGHT IN THAT WE HIRED THE RIGHT PARTNER.

SO THANK YOU FOR THE GREAT JOB.

THANK YOU.

THANK YOU, MR. BRIAN.

YES.

THANK YOU.

UM, THANK YOU ALL FOR YOUR, UH, YOUR EFFORTS.

UH, I KIND OF DESCRIBED THIS AS COMMUNITY WELLNESS.

I MEAN, THERE ARE A LOT OF DIFFERENT PIECES TO THAT, RIGHT.

UM, AND, UM, THE, THE TOWN OF HILTON ED AS A GOVERNMENT ENTITY DOES NOT HAVE A DEPARTMENT TO FILL THOSE GAPS.

RIGHT.

UH, SO WE APPRECIATE THAT THE COMMUNITY FOUNDATION, LOW COUNTRY HAS BEEN ABLE TO PULL TOGETHER AND, AND, AND MOVE THE NEEDLE.

UM, I GOT, I GOT A COUPLE OF THOUGHT PROVOKING QUESTIONS.

OKAY, GREAT.

UH, THE FIRST ONE IS, IS THE NEED GONE? NO, NO, I CAN.

UH, THE, THE SECOND ONE IS, UH, THROUGHOUT THE CONVERSATIONS WITH THE NONPROFITS THAT ARE FILLING THOSE GAPS, HAS THERE BEEN A, UH, I GUESS A LONG TERM PLAN TO CONTINUE THAT COLLABORATION THROUGH THE COMMUNITY FOUNDATION BACK TO US SO THAT WE ARE WELL AWARE OF AS TO NUMBER ONE DIRECTION, NUMBER TWO, NEED, UM, OUR COMMUNITY QUALIFIES FOR COMMUNITY BLOCK GRANTS.

UM, AND OFTEN, UM, IN MY HUMBLE OPINION, WE'RE NOT NECESSARILY SURE HOW TO SPEND THEM.

OKAY.

AND THE FACT THAT OTHER COMMUNITIES STRUGGLE WITH THAT, BUT WE ARE NOW AN EXAMPLE SO MUCH SO THAT YOU'RE BEING AWARDED ANOTHER 102 GRAND.

I THINK THAT THAT'S AN OPPORTUNITY THAT MAYBE WE CAN SHIFT HOW WE'RE USING

[00:15:01]

OKAY.

UM, AND THERE THERE'S, UM, FROM AN ENVIRONMENTAL SOCIAL STANDPOINT, THERE'S MONEYS OUT THERE.

THERE'S JUST SO MANY DIFFERENT FUNDING SOURCES THAT COULD HELP THE CAUSE.

THEN I'M NOT SURE WE'RE LEVERAGING BECAUSE OF THIS DISCONNECT BETWEEN THE NON-PROFITS AND THE MUNICIPALITY.

SO I'M JUST CURIOUS OF YOUR THOUGHTS ON THAT.

THAT'S A, A GREAT, UH, POINT AND KNOW THAT WE FEEL THAT ONE OF THE ROLES CENTRAL ROLES, UM, THE MISSION OF THE FOUNDATION IS TO BE A CONVENER, UM, PARTICULARLY AROUND LOCAL COMMUNITY ISSUES.

AND SO, UM, WE FEEL AS THOUGH THERE'S MORE WE CAN DO TO BRING PEOPLE AROUND THIS OPPORTUNITY THROUGH THE APA FUNDING WAS A WONDERFUL EXAMPLE AND A REASON TO GET EVERYONE AROUND THE TABLE, CUZ THEY WERE ALL FOCUSED ON KIND OF A SHORT TERM ISSUE.

THERE ARE A LOT OF OTHER, UM, OPPORTUNITIES TO DO CONVENINGS AROUND ISSUES.

WE ACTUALLY ARE PARTNERING WITH THE UNITED WAY IN OCTOBER AND DOING, UM, A SESSION ON, UH, THE NEED FOR MALE MENTORING FOR YOUNG BOYS.

UM, THAT'S GONNA BE OUT AT PALMETTO ELECTRIC AND WE'VE INVITED ABOUT 55, UH, INSTITUTIONS TO BE TOGETHER TO FIND OUT WHERE PEOPLE HAVE AN IN COMMON INTEREST IN WHAT CAN WE DO FOR, FOR YOUNG BOYS AND YOUNG MEN, UH, TO HAVE MORE SUCCESSFUL OUTCOMES.

SO THE FOUNDATION IS VERY OPEN TO BEING A PARTNER AND I DON'T KNOW WHAT THE BEST AVENUE FOR US AS WE LEARN THESE THINGS TO COMMUNICATE THAT BACK TO THE TOWN, BUT KNOW THAT WE STAND READY TO BE A PARTNER.

AND, UM, WE'VE HAD A NUMBER OF NONPROFITS WHO'VE SAID, UM, WOULD YOU CONVENE AROUND A PARTICULAR ISSUE? AND WE FEEL LIKE, UM, WE HAVE THE RESOURCES TO HELP DO THAT.

SO, UM, THANK YOU FOR THAT POINT.

YEAH.

I, I, I, UH, MR CHAIR, YOU, YOU'VE DONE SUCH A GREAT JOB WITH LEADING US THROUGH THESE DISCUSSIONS AND I KNOW YOU ARE ON YOUR WAY OUT AND I'M, I'M MAKING THIS COMMENT, NOT JUST FOR, UH, FOR MY COLLEAGUES HERE, BUT FOR SENIOR STAFF, PARTICULARLY MR. TROYER, AS WE MOVE FORWARD, THE TRANSITION INTO, UH, NEW FINANCE COMMITTEE, WHATEVER THAT LOOKS LIKE.

I THINK THAT, UM, A STANDING AGENDA ITEM, MAYBE ONCE A QUARTER IS US, UH, HAVING CONVERSATIONS WITH MR. WOMEN AS TO THE DIRECTION.

OKAY.

UM, I I'VE VIEWED THIS NO DIFFERENT THAN RECREATION HILL ON HILTON HEAD.

UH, WE DON'T HAVE A RECREATION DEPARTMENT, BUT WE HAVE THE IT REC CENTER THAT IS HANDLING THAT BUSINESS FOR US.

AND YOU ARE HANDLING THE COMMUNITY WELLNESS BUSINESS FOR US AND WE NEED TO CONTINUE THE DIALOGUE.

SO WE'RE WELL ABREAST AND ABLE TO MAKE SOUND DECISION BASED ON YOUR KNOWLEDGE.

SO I JUST ASKED TO RECONTINUE THE CONVERSATION.

THANK YOU.

THANK YOU.

THAT SCOTT, DEBBIE, UH, I, I NOTICED THAT, UH, IN THE SECOND TRANCHE, THERE WERE EIGHT APPLICATIONS, SIX APPROVALS, AND TWO WERE DECLINED, RIGHT? WHERE THEY DECLINED BECAUSE THEY DIDN'T QUALIFY OR WAS IT A MATTER OF FUNDING? UM, ONE OF THE AGENCIES, UH, DID NOT QUALIFY.

LET ME GO BACK AND LOOK AT THE WHICH THE, THE SECOND ONE THAT DIDN'T RECEIVE, DEBBIE IS NOT NECESSARY WHERE I'M GOING WITH THIS IS, IS A HUNDRED, 2000 THAT IS COMING BACK IN TO THE TOWN AND WILL COME TO YOU FOR DISTRIBUTION.

IS IT YOUR INTENT TO CIRCLE BACK TO THE APPLICATIONS THAT WERE DECLINED, UH, OR, UH, HAVE NEW APPLICATIONS SUBMITTED? SO ARPA, THEY, THEY ARE, UM, THEY CAN ONLY GO TO ORGANIZATIONS WHO SERVE THE MAJORITY OF LOW TO MODERATE INCOME.

OKAY.

ONE OF THE ORGANIZATIONS, THE ONE THAT WAS DECLINED BECAUSE IT WAS NOT ELIGIBLE WAS, UM, LOW COUNTRY AUTISM FOUNDATION.

THE PROJECT WAS LOCATED IN BLUFFTON PRIMARILY.

UM, UM, AND IT DIDN'T QUITE MEET THE ARPA REQUIREMENTS.

IT WILL NOT MEET THE CD B G BECAUSE THEY, THEY SERVE AUTISTIC INDIVIDUALS REGARDLESS OF THEIR INCOME, UH, THEIR INCOME LEVELS.

SO THEY WOULDN'T QUITE MEET THAT, THAT SAME BRACKET.

SO SCOTT, PLEASE EXPRESS TO PEACHES PETERSON AND HER COMMITTEE, OUR SINCERE APPRECIATION FOR THE HARD WORK, UH, THAT THEY'D DONE.

I COULDN'T BE MORE CONFIDENT IN THE DECISIONS AND THE ALLOCATION OF THESE FUNDS.

THANK YOU.

THANK YOU.

THANK YOU ALL FOR YOUR SERVICE.

THANK YOU.

THANK YOU.

[6b. Consideration of a Resolution of the Town of Hilton Head Island Authorizing the Execution of an Agreement with Mauldin and Jenkins, LLC for Financial Audit Services for the Fiscal Years Ending June 30, 2023 through 2027]

WELCOME BACK.

THANK YOU, MR. CHAIR.

UM, YES.

UH, CURRENTLY UNDER CONTRACT IT'S GREEN FINNIE.

THEY ARE ON

[00:20:01]

UM, AS WE LOOKED AT THE END OF GREEN FINN'S TERM, WE WENT OUT TO PROPOSALS AND SOUGHT BIDS FOR, UM, THE AUDIT SERVICES TO SATISFY THE STATE LAW AND SATISFY THE TOWN CODE.

UM, THROUGH THE, UM, PROPOSAL PROCESS, WE RECEIVED, UM, APPLICATIONS.

WE REVIEWED THE APPLICATIONS THAT WAS IN, UH, REVIEWED, UH, BY A COMMITTEE OF STAFF AND OUR CHAIR, UM, WHO PARTICIPATED IN THOSE REVIEWS AND, UH, BASED ON THOSE REVIEWS, AS FAR AS THE COST AND THE, UM, NOW WE MAKE THE RECOMMENDATION THAT, UM, THIS CONTRACT BE AWARDED.

AND SO, UM, AUDITORS, THEY, THEY DON'T WORK FOR STAFF.

THEY DON'T WORK FOR TOWN MANAGE, THEY WORK FOR TOWN COUNCIL.

AND SO THIS IS TOWN COUNCIL'S CONTRACT, AND WE WOULD RECOMMEND, UH, I, I WOULD COMMENT SINCE I PARTICIPATED IN THIS COMMITTEE, UH, THAT THE SHORT LIST WAS GREEN FINNEY AND, UH, M AND L AND GREEN FINNEY'S, UM, UH, RESPONSE TO THE RFP WAS OUTSTANDING.

UH, UH, AND M AND L M AND J EXCUSE ME, WAS EVEN MORE OUTSTANDING.

AND I THINK THE PRIMARY, UH, DIFFERENCE OR DIFFERENTIATOR, UH, WAS THE LEVEL OF EXPERIENCE IN LOCAL AND MUNICIPAL GOVERNMENT THAT M AND J HAD, UH, VERSUS, UH, GREEN FINNIE.

AND THAT SAID, WE WERE SATISFIED WITH THE PERFORMANCE OF GREEN FINNIE OVER THE PAST FIVE YEARS, BUT I THINK THIS REALLY GIVES US THE OPPORTUNITY TO TAKE IT TO ANOTHER LEVEL QUESTION FOR JOHN, THE, THE SELECTION, THE RECOMMENDATION FOR THE SELECTION IS NOT BASED JUST UPON EXPENSE ON THE FEES.

NO, RATHER IT IS BASED UPON THE PROFESSIONAL QUALIFICATIONS, THE BACKGROUND OF THIS PARTICULAR FIRM AND THEIR ABILITY TO PROVIDE US WITH THE DATA THAT WE NEED TO MOVE FORWARD.

YEAH, IT WAS A PROFESSIONAL SERVICES, UH, PROPOSAL.

AND SO WE WANTED TO EMPHASIZE EXPERIENCE AND SIMILAR SIMILARLY SITUATED CLIENTS.

AND SO LOCAL GOVERNMENTS WHO WOULD HAVE, UM, YOU KNOW, SOME OF THE SAME, UM, OPERATIONS THAT WE DO.

AND SO THAT THIS KIND OF AUDIT WOULD BE THEIR EXPERTISE.

AND THAT'S PART OF WHAT WE FOUND THROUGH THE, UM, UH, EVALUATIONS WAS THAT MULDEN AND JENKINS REALLY, REALLY FOCUSES ON LOCAL GOVERNMENTS.

THANK YOU.

AND, AND SO WE WERE, WE ALSO LOOKED AT THE EXPERIENCE OF THE, THE STAFF IN THE, OF THE WHOLE FIRM AND THE STAFF WHO'S GOING TO BE ASSIGNED TO THIS AUDIT.

THAT'S GREAT QUESTION.

GOOD JOB OTHERS.

I, I WOULD JUST SAY THAT, I THINK, UH, WE'VE BEEN WELL SERVED BY THE FIRM, UH, THAT YOU MENTIONED FOR THE PAST SEVERAL YEARS.

I THINK WE SHOULD ACKNOWLEDGE, UM, OUR APPRECIATION FOR THEIR PROFESSIONALISM AND, AND PRODUCT AND, UM, MOVE FORWARD TO, UH, ACCEPT, UH, M AND J AS OUR AUDITOR AND, AND GREEN FINNEY WILL MAKE ONE MORE REPORT BACK TO TOWN COUNCIL.

AND SO WE HAVE THE OPPORTUNITY FOR THAT.

UM, COMING UP, BOB PROBABLY EARLY DECEMBER ISH HAS TO BE EARLY.

YEAH.

BEFORE I, I ASK FOR PUBLIC COMMENT, UH, I'D ASK THE COMMITTEE FOR A MOTION TO APPROVE THE RESOLUTION.

SO MOVED SECOND.

THANK YOU.

THIS IS BEEN PROPERLY MOVED AND SECONDED IN ANY COMMENT FROM THE PUBLIC ON THE PROPOSED RESOLUTION.

IF NONE, I'LL BRING IT BACK TO THE DIAZ, ANY FURTHER DISCUSSION FROM THE COMMITTEE, IF NOT, UH, ALL THOSE IN FAVOR, PLEASE SIGNIFY BY SAYING, AYE.

AYE.

AYE.

I OPPOSE THE SAYING IT IS UNANIMOUS.

CHRISA THANK YOU.

[6c. Town of Hilton Head Island Financial Update]

I NOTICED THE LIGHTS ARE ON.

I ASSUME THE BILLS ARE PAID UH, YES, MR. CHAIRMAN, THEY ARE.

AND, AND SO WE CAN, WE CAN REPORT THAT.

UM, GREAT.

UM, FIRST TWO MONTHS.

AND SO OUR, OUR FISCAL YEAR STARTS JULY 1ST AND THESE NUMBERS ARE AUGUST 31ST NUMBERS FOR THE MOST PART.

UM, AGAIN, I LIKE TO START THIS WAY THAT THE TOWN CONTINUES TO MONITOR REVENUES.

WE KIND OF STARTED THESE FINANCIAL REPORTS CAUSE WE WERE WORRIED ABOUT REVENUES AND IT KIND OF EVOLVED A LITTLE BIT INTO, UH, KIND OF A, A FRAMEWORK TO FACILITATE SOME FINANCIAL DISCUSSIONS AS WELL.

UM, BUT WE CONTINUED

[00:25:01]

BUT, UM, THE EARLY REPORT IS, UM, SO FAR SO GOOD, BUT IT'S, WE'RE JUST GETTING STARTED.

UM, AGAIN, TOWN COUNCIL HAS HAD THE FORESIGHT TO BUILD RESERVES, DIVERSIFIED REVENUE STREAMS, AND INVEST IN THE ISLAND.

AND ALL OF THOSE THINGS HAVE HELPED TO PUT US ON FIRM FINANCIAL FOOTING, UM, FOR AUGUST WE'LL MOVE ON, UM, GENERAL FUND REVENUES.

THESE ARE JUST INDIVIDUAL MONTHS, JULY.

YOU CAN SEE 20, 23 IS BETTER THAN THE LAST FOUR YEARS.

UM, AUGUST IS NOT AS GOOD AS LAST YEAR, BUT JUST NOTE THAT IN 2022 AUGUST, WE HAD ONE OFF SCHEDULE, LARGE PAYMENT FROM THE STATE FOR BUSINESS LICENSE.

AND I THINK, UM, WE WILL SEE IT LATER IN THE YEAR, THAT WAS MORE OF A TIMING DIFFERENCE THAN ANYTHING ELSE.

AND SO IT'S NOT THAT 2022 WAS SO GREAT, BUT IT WAS JUST, UH, EARLIER IN THE YEAR THAN WHAT WE WOULD USUALLY EXPECT.

AND SO IF YOU LOOK AT, UM, WITHOUT THAT ONE LARGE 20, 22 OR 2023 NUMBERS HAVE A GOOD START FOR THE YEAR, UH, YEAR TO DATE, IT'S KIND OF THE SIMILAR PICTURE, UM, JULY OR BETTER THAN THE LAST FOUR YEARS, AUGUST.

UM, NOT QUITE AS GOOD AS LAST YEAR, BUT BETTER THAN THE THREE BEFORE.

AND, UH, THAT POSITIVE ANOMALY, UM, THAT WILL OFFSET AS THE YEAR GOES FORWARD IS WHAT WE EXPECT.

UM, THIS IS JUST SHOWS A CHART OF REVENUES BY MONTH FOR THE WHOLE YEAR.

YOU CAN SEE JULY AND AUGUST IN RELATION TO SEPTEMBER, TO JUNE.

SO THERE'S A LONG WAY TO GO.

UM, IT, EVERY SINGLE MONTH IS IMPORTANT, BUT THERE'S A LOT OF, UH, EX VERY IMPORTANT MONTHS TO COME.

UM, HERE'S OUR NORMAL SAMPLE, UM, PREVIEW AND, AND IT'S A MIXED BAG IT'S REALLY, YOU CAN SEE TIF IS DOWN 17.

LOCAL LATEX IS UP 15 REAL ESTATE TRANSFER FEE IS DOWN 31.

UM, BEACH IS UP 15, UH, ELECTRIC, ELECTRIC FRANCHISE FEE IS UP ONE.

UM, ALTHOUGH ROAD USAGE FEE IS DOWN 98.

I MEAN, IT'S ALL OVER THE BOARD.

AND SO I THINK THAT'S, UH, MY EMPHASIS IS THAT THIS EARLY IN THE YEAR, UM, SMALL CHANGES SEEM LIKE REALLY BIG AND THIS WILL KIND OF SETTLE DOWN AS WE GET A LITTLE MORE HISTORY INTO THE YEAR.

AND SO, UM, HOWEVER, UM, IF YOU TAKE OUT THAT ONE, UM, LARGE PAYMENT FROM, UH, A SSC OR THE STATE BUSINESS LICENSE, THEN WE'RE WITHIN 4% OF LAST YEAR AND WE DO THINK THAT'S A TIMING DIFFERENCE.

UM, WE ARE SEEING THAT THE RATE INCREASES AFFECTING REAL ESTATE TRANSFER FEES WILL TALK A LITTLE BIT MORE ABOUT THAT COMING UP.

UM, A COUPLE OTHER THINGS THAT HAPPENED AS WELL.

IF YOU LOOK FORWARD, UM, ROAD USAGE FEE THAT WAS PAUSED BY TOWN COUNCIL, AND SO WE'RE NOT COLLECTING.

UM, AND SO IF YOU TAKE OUT JUST THOSE THREE THINGS, BUSINESS LICENSE ROAD, UM, USAGE FEE AND REAL ESTATE TRANSFER FEE, WE'RE UP.

AND SO THIS IS, THIS IS A REALLY MIX THAT WE'RE SEEING SO FAR.

AND SO I, I, I WOULD JUST SAY THAT THE BEST THING WE CAN DO IS WAIT AND SEE PROPERTY TAXES.

YOU CAN SEE THE LAST COUPLE YEARS OF 15 MILLION, 16 MILLION IN THAT YEAR TO DATE, UM, 109,000.

SO IT'S, IT'S REALLY EARLY IN THE YEAR TO GET THAT IT'S PRIMARILY TAXES ON VEHICLES UNTIL THE BILLS.

WE EXPECT THOSE TO GO OUT IN OCTOBER.

UM, HERE'S A LITTLE BIT MORE ON A REAL ESTATE TRANSFER FEE.

UM, THE BLUE IS THE 23.

GREEN IS 22 AND, UM, THE GRAY IS 21.

AND SO THE LAST COUPLE OF YEARS HAVE BEEN EXTREMELY GOOD FOR THE REAL ESTATE TRANSFER FEE.

AND WHAT WE'RE SEEING IN AUGUST IS KIND OF, UH, A LITTLE BIT MORE BACK TO NORMAL.

UM, BUT IT FEELS LESS BECAUSE THE LAST TWO YEARS WERE SO GREAT.

AND JOHN, IF YOU WILL COMMENT ON WHAT YOU HAVE BUILT INTO THE FISCAL 23 BUDGET, IS THAT THE ANOMALY OF 22 AND 21, OR IS IT A MORE REALISTIC REAL ESTATE TRANSFER? AND, AND WE'LL TALK MORE ABOUT THAT.

AND REALLY THE REAL ESTATE TRANSFER FEE, UM, IS, IS KIND OF INDEPENDENT FROM THE BUDGET BECAUSE WE, UM, DON'T COUNSEL JUST APPROVE THAT AS THEY APPROVE THE PROJECTS.

AND SO, UM, IT IT'S APPROVING, UM, APPROVED USES WITHIN THE, UM, ALLOWABLE, UM, USES OF THE REAL ESTATE TRANSFER FEE.

YEAH, I THINK IT'S APPROPRIATE TO

[00:30:01]

SO WE'LL HAVE TO WATCH THAT VERY, VERY CLOSELY.

YES, WE'LL WANNA PAY VERY CLOSE ATTENTION, UM, UH, YEAR TO DATE REAL ESTATE TRANSFER FEE.

UM, IF YOU GO BACK TO 20, 19, 20 20, THAT WAS A MORE NORMAL YEAR.

AND SO THE, THE TWO YEARS AFTER THAT WERE JUST, UH, REALLY GOOD.

AND, AND SO OUR YEAR TO DATE 2023 IS, IS SUBSTANTIALLY BETTER THAN A NORMAL YEAR.

AND IT'S JUST THAT WE'RE NOT QUITE AS GOOD AS LAST COUPLE BUSINESS LICENSES.

THIS IS NO NEW, UM, NUMBERS BECAUSE IT'S SO EARLY IN THE YEAR.

BUT I, I THINK I WANT TO JUST EMPHASIZE WITH MR. LENNOX IS THAT WE WANNA CERTAINLY PAY ATTENTION TO THE STATE AND THE STATE HAS SUCH AN INFLUENCE OVER HOW WE HAVE TO OPERATE.

AND SO BUSINESS LICENSES HAVE BEEN GOOD, AND WE HOPE THAT THAT CONTINUES.

IT IS A GOOD, UM, BAROMETER OF OUR ECONOMY ON THE ISLAND.

UM, AND, AND THERE'S A PIECE THIS JUST BREAKS OUT OUR BUSINESS LICENSES BETWEEN LOCAL AND, UH, STATE COLLECTED THROUGH A S C BUSINESS LICENSES AND, AND, AND THE MIX.

AND WE'LL, WE'LL GET BACK INTO THIS, UM, AS WE PROGRESS INTO THE YEAR.

AND I, I JUST WANTED TO KEEP THIS SLIDE IN THERE TO, UM, BE A REMINDER TO ME, TO, TO KEEP TALKING ABOUT THAT AND KEEP WATCHING IT, CUZ IT'S IMPORTANT.

UM, HERE'S OUR NUMBERS FROM LAST YEAR.

AND SO IT WAS A, A REALLY STRONG, UM, COLLECTION YEAR FOR BUSINESS LICENSES, GENERAL FUND EXPANDING.

WE, WE FLIP OVER TO THE SPENDING SIDE JULY, WE'RE A LITTLE BIT UNDER WHAT WE, UM, MIGHT EXPECT AND AUGUST IS ABOUT NORMAL.

AND SO I WOULD POINT OUT THAT OUR AUGUST SPENDING AT RIGHT AT $4 MILLION IS RIGHT AT OUR ANNUAL BUDGET ANNUAL BUDGET AT 48 MILLION.

SO YOU MULTIPLY BY 12 AND WE'RE RIGHT ON THE MONEY.

UM, THERE IS SOME SEASONALITY TO THAT.

AND SO WE'VE GOT A NUMBER OF THINGS THAT ARE PAID ONCE A YEAR, PAY QUARTERLY PAY.

AND SO, UM, IN DIFFERENT SEASONS.

AND SO WE'LL CERTAINLY WANNA KEEP A CLOSE EYE ON THAT, BUT IT'S UM, ABOUT WHERE WE WOULD EXPECT YEAR TO DATE, THE SAME THING.

UM, JULY IS NORMALLY A LITTLE BIT LOWER ON THE SPENDING SIDE AS, AS WE, UM, UH, GET THE YEAR STARTED AND THEN AUGUST IS MORE OF A NORMAL YEAR.

AND SO IF OUR YEAR TO DATE SPENDING IS 6.8 MILLION AND WE EXPECTED, UM, IT COULD BE AS MUCH AS EIGHTH.

AND I THINK WE'RE RIGHT ON TRACK AND, AND KNOW THAT JUNE BY THE TIME WE GET TO JUNE IS GONNA BE A LITTLE BIT HIGHER MONTH AS WE, UM, INCLUDE OUR ACCRUALS.

THERE'S SOME DIFFERENCES HERE THAT, UM, YOU WILL SEE THERE'S A, A LITTLE SHIFT IN PERSONNEL.

UM, YOU CAN LOOK AT, UM, FOR INSTANCE, YOU LOOK AT THE, THE LARGEST CHANGE HERE.

UM, TOWN COUNCIL WANTED TO MAKE AN ADDITIONAL EMPHASIS ON FIRE RESCUE PAY.

AND SO WE'RE SEEING THAT THAT'S, UM, BEING IMPLEMENTED AND HAS BEEN IMPLEMENTED.

AND SO THAT'S HIGHER THAN LAST YEAR.

I THINK, YOU KNOW, THAT WILL MODERATE A LITTLE BIT AS WE GET FORWARD.

UM, UH, THE SHERIFF AND BEACH SERVICES, THAT'S ALSO A, A HIGHER NUMBER, BUT THAT'S, UM, JUST BECAUSE THERE'S AN ADDITIONAL EMPHASIS ON, UM, THE BEACH AMBASSADORS AND, UM, PUTTING THOSE EFFORTS TO WORK, UM, MORE SO THIS YEAR THAN LAST YEAR, AND YOU WERE SEEING THAT, UM, BUT AT 11.4%, I THINK THIS IS EARLY.

AND I THINK IT'S GOING TO MODERATE A LITTLE BIT AS WE GO.

UM, IF WE COMPARE THIS TO BUDGET AND SAY, OKAY, HOW DOES THAT COMPARE TO BUDGET? UM, WE ARE 16.7% THROUGH THE YEAR AND WE HAVE SPENT 14% OF OUR BUDGET.

AND SO WE'RE WE'RE TRACKING, RIGHT? LIKE WE SHOULD.

THE ONLY ONE THAT IS ABOVE THAT 16.7% IS TOWN WIDE AND TOWN WIDE.

WE PAY OUR PROPERTY TAXES, UM, IN JULY, RIGHT OFF THE BAT FOR THE WHOLE YEAR.

AND SO THAT'S A HUNDRED PERCENT SPENDING IN, IN, IN A PART OF THAT TOWN WIDE.

AND SO OTHERWISE I THINK WE'RE, UH, COMFORTABLY, UH, WHERE WE WOULD EXPECT TO BE ON OUR SPENDING SIDE.

UM, JUST A REMINDER, THIS IS OLD NUMBERS, BUT LAST YEAR WE ENDED UP SPENDING 98.7% OF BUDGET ON GENERAL FUND DEBT SERVICE, 99.9 AND STORM WATER, 86%.

SO

[00:35:02]

THIS IS AGAIN, JUST SOME YEAR END NUMBERS, BUT WE ENDED UP WITH 47 MILLION.

SO MR. LENNOX WAS ASKING, UM, HOW DID WE BUDGET? AND SO WE COLLECTED AN ACTUAL AND GENERAL FUND, 47 MILLION.

WE BUDGETED 48 FOR THE NEW YEAR.

OKAY.

UM, AND THEN IN THE PAST YEAR WE PUT BACK AND THAT WAS ALWAYS MR. BROWN'S, UH, QUESTION, IS THAT OKAY? ARE WE GOING TO BE ABLE TO PUT BACK SOME MONEY INTO THE GENERAL FUND FUND BALANCE AND IT'S 3 MILLION MM-HMM , UH, DEBT SERVICE, UM, WE'RE SPENDING AT 22.5, THAT'S A LITTLE BIT AHEAD OF WHAT WE WOULD EXPECT.

BUT PART OF THAT IS IN THAT THE NUMBER ONE REASON IS, IS WE HAVE A BEACH BOND THAT'S DUE ON AUGUST THE FIRST.

AND SO, UM, WHEN WE PLANNED OUT THAT DEBT PAYMENT THAT, UM, WE JUST WANTED TO GET THE FIRST, UM, OF THE QUARTERLY, UH, BEACH FEE COLLECTIONS IN JULY.

AND WE MAY USE THOSE FUNDS TO MAKE THE DEBT PAYMENT.

MOST OF OUR PRINCIPAL PAYMENTS ARE DUE IN MARCH, APRIL AND MAY AFTER PROPERTY TAXES ARE DUE.

AND SO OUR BEACH FEE BOND PAYMENT HAS BEEN MADE FOR THE YEAR, UM, FOR THE PRINCIPLE.

BUT, UM, THE OTHER ONES WILL COME LATER IN THE YEAR.

IT'S RIGHT WHERE WE EXPECT STORM WATER.

UM, AGAIN, STORM WATER REVENUE, UM, MATCHES OUR PROPERTY ATTACKS, UM, COLLECTIONS.

AND SO IT'S, UM, LAGGING BEHIND FOR THE FIRST SIX MONTHS.

UM, AND YOU CAN SEE EXPENDITURES.

AND SO WE WOULD EXPECT THAT WE WOULD SHOW AN, A DEFICIT FOR THE FIRST SIX MONTHS AND THEN, UM, IN THE SECOND HALF OF THE YEAR TO BE A SURPLUS UNTIL THE END OF THE YEAR, UM, C I P YOU'LL SEE, UM, THIS IS JUST LOOKING BACK TO LAST YEAR, BUT I DID WANT TO PUT THIS IN HERE, UM, BECAUSE WE WILL, WE'RE EXPECTING TO MOVE FORWARD ON A, UM, BUDGET AMENDMENT.

AND THE BUDGET AMENDMENT REALLY IS, IS GOING TO FOCUS FOR OUR C I P JUST, UM, A DIFFERENT MIXTURE OF OUR, UM, WHEN, WHEN WE BUILT THE BUDGET, WE BUILT THE BUDGET WITH AN EXPECTATION OF SOME CARRY FORWARD.

AND THAT, UM, NOW THAT WE HAVE OUR ACTUAL NUMBERS IN FOR JUNE 30TH, THE MIXTURE OF PROJECTS IS JUST A LITTLE BIT DIFFERENT.

AND SO WE'LL, UM, COME BACK TO TOWN COUNCIL AND SEEK, UM, PERMISSION THROUGH OUR BUDGET ORDINANCE JUST TO, UM, RESET THOSE BACK TO THOSE ORIGINAL, UM, PROJECT AMOUNTS.

AND SO WE'RE NOT LOOKING TO CHANGE PROJECTS, BUT WE ARE LOOKING TO JUST, UM, MAKE OUR, UM, UH, ACTUALS, UM, TO BE THE SAME AS THE EXPECTED.

JOHN, THIS IS A, A GOOD SLIDE TO TALK ABOUT, UH, C I P, AND DURATION OF A PROJECT YOU'RE CARRYING, UH, 22 MILLION FORWARD.

YOU'RE PLANNING FOR 9.9, ALMOST 10 MILLION.

AND ON AVERAGE YEAR OVER YEAR, THAT 10 TO 11 TO 12 MILLION IS WHAT WE ESTIMATE IN C I P.

YES.

AND, AND SO, YES, IT'S A, IT'S A REALLY GOOD MEASURE.

AND, AND WHAT IS IN THERE FOR THIS YEAR'S CIP P IT'S 22 MILLION IN CARRY FORWARD, PLUS 23 MILLION IN NEW PROJECTS.

AND SO EVEN ON A GOOD YEAR, WE WOULD SPEND 15 MILLION, THEN WE'VE GOT A LOT IN THE QUEUE.

UH, SO IT WOULD TAKE YOU TWO OR THREE YEARS TO CATCH UP.

YES, YES.

AND SO OUR EXPECTATION IS, IS THAT THEY'RE FULL SPEED AHEAD AND, AND YOU'LL HEAR REPORTS FROM JENNIFER RAY, UM, ABOUT THE NUMBER OF DIFFERENT THINGS THAT THEY'RE DOING, BUT THEY'RE, THEY ARE FULL SPEED AHEAD AND, UH, TRYING TO DO AS MUCH OF THAT 45 MILLION IF POSSIBLE, UM, JUST TO MAKE THOSE INVESTMENTS IN THE ISLAND.

UM, BUT IT, IT, IT WILL TAKE SOME TIME.

AND SO OUR EXPECTATION IS, IS TO AT BEST, AND PROBABLY THREE YEARS TO DO ALL OF THAT, BUT IT, IT DOESN'T PRECLUDE US FROM DOING AGAIN, CAPITAL PLANNING FOR WHAT COMES BEHIND THAT, BUT JUST KNOWS THAT TO, UM, WORK THROUGH THE, UM, BACKLOG OF, UH, PROJECTS.

IT'S GONNA TAKE A LITTLE BIT OF TIME.

YES.

BUT IF WE, IF WE, I DON'T MEAN TO SAY, BUT IF WE CONTINUE TO PUT $10 MILLION A YEAR INTO NEW C I P PROJECTS, WE'LL NEVER FULLY CATCH UP.

NO, IT'S ALWAYS GOING TO BE A ROLLING THREE YEAR.

YES.

SCHEDULE.

OKAY.

TO THAT POINT, IF I MAKE THE, UM, WHEN YOU'RE LOOKING AT THE CIP, CAN YOU BREAK OUT WHAT'S WHAT, WHAT THOSE DOLLARS ARE BEING USED FOR IN TERMS OF TWO BUCKETS, ONE IMPROVING WHAT WE HAVE AND TWO

[00:40:01]

UH, YES.

IT'S.

UM, I THINK THAT WOULD BE IMPORTANT BECAUSE YOU, YOU DON'T WANT TO SIT THERE AND FEEL GOOD WHEN YOU HAVE A D ASSET THAT'S REALLY HEADING ALMOST TOWARDS TOTAL DEPRECIATION.

SEAN'S GONNA, UM, SEAN, COLIN MANAGER, UM, MS. SHARK, A VERY GOOD QUESTION.

YEAH.

THE WAY THE CIP P IS SET UP THERE IS NEW CAPITAL, UH, NEW PROJECTS FOR NEW CAPITAL AND THERE'S, UM, MAINTENANCE, UPGRADES, PARK, UPGRADES, PATHWAY UPGRADES THAT WE, UM, THAT WE, UM, HAVE SEPARATED CAN REPORT ON.

YES, MM-HMM .

SO IT'S THINGS THAT ARE MAINTAINING AND UPGRADING EXISTING FACILITIES ALONG WITH THE NEW CAPITAL EXPENSES THAT WE, UM, WILL EXECUTE WITH COUNCIL AND TOM ENERGY SUPPORT.

THERE'S MORE DETAIL ON THE C I P THAN ANY OTHER LINE ITEM WE HAVE IN THE BUDGET.

AND, UH, THE FUNDING GOES ALL THE WAY OUT FOR 10 YEARS.

MM-HMM SO IT, IT, IF YOU WANT THAT, UH, I, I THINK THERE'S PLACES TO GET THAT RIGHT NOW, JUST THINKING FOR NEW PEOPLE COMING ON BOARD THAT, AND, AND JENNIFER RAY DID A, A REALLY GOOD JOB, UM, WITH THE END TO END CAPITAL PROGRAM PROCESS WITH PLANNING, UM, DESIGN, CONSTRUCTION DRAWINGS, PERMITTING, YOU KNOW, THOSE APPROVALS, UM, AND THEN TO GET INTO WHERE WE ARE READY TO BREAK GROUND.

SO IT'S A TWO OR THREE PROCESS TO GO THROUGH THAT.

AND THAT'S WHY WE LOOK AT IT AS A PROGRAM AND NOT NECESSARILY ONE YEAR CAPITAL PLAN.

SO, OKAY.

ONE LAST QUESTION.

I'M NOT SURE IF THIS IS FOR YOU, JOHN, OR FOR JOCELYN.

UH, BUT, UH, AS YOU LOOK AT REAL ESTATE VALUES ON THE ISLAND AND SOMEONE WERE TO ASK THE QUESTION, ARE THEY HOLDING, ARE THEY, ARE THEY DROPPING OR ARE THEY INCREASING? WHAT WOULD BE YOUR, WHAT WOULD BE THE END SEE THAT YOU WOULD MOST LIKELY USE TO ANSWER THAT QUESTION? OR IS THERE MORE THAN ONE, UH, CERTAINLY LIKE REAL ESTATE TRANSFER FEE.

YOU MIGHT, THAT COULD BE A SURROGATE MEASURE.

YEAH.

THE TRANSFER FEE IS BASED ON TRANSACTIONS.

AND SO I, I DEFER TO THE EXPERT HERE.

, IN OTHER WORDS, SOMEONE FLIES IN HERE AND SAYS, THEY'RE GONNA PUT A HUNDRED THOUSAND DOLLARS INVEST IN HILTON HIT, AND THEY ASK THE QUESTION, DO, UH, CAN YOU DEMONSTRATE THAT ASSET WILL GROW IN VALUE HOLD, OR IT COULD BE PRECARIOUS AND IT MAY DECLINE.

I WOULD RATHER GET BACK TO YOU ON THAT.

NO, THAT'S FINE THAN ANSWER AND INFORMATION.

CAUSE WE'RE, WE'RE, WE'RE, WE'RE PUTTING OUT THE SIGN, WE'RE OPEN FOR BUSINESS, UH, NOT EVERY KIND OF BUSINESS, BUT WE'RE OPEN.

AND HOW CAN WE SHOW THAT OUR PORTFOLIO IS MOVING IN THIS WAY, BOLDING OR GOING DOWN, JOHN, DOES THE BEAUFORD COUNTY HAVE AN ONGOING LIVE FIGURE OF WHAT THE TOWN OF HILTON HEAD ISLAND TAX DUPLICATE IS? IF THAT, THAT WOULD ADDRESS WHAT BILL'S TALKING ABOUT IT, IT DOES.

AND I, AND THANK YOU, MR. CHAIRMAN, UH, THE COUNTY PUBLISHES, UM, THE DUPLICATE ONCE A MONTH.

AND SO WE CAN TRACK THAT THROUGH THEIR, THROUGH ONCE A MONTH.

AND I THINK THAT MIGHT BE A WAY TO DO THAT IS, IS TO LOOK TO SEE HOW, UM, AND, AND WE, WE CAN DO THAT IS THAT WE CAN COME BACK AND REPORT BACK WHAT'S ON, UM, BEAUFORD COUNTY'S, UH, TOTAL VALUE FOR THE ISLAND IN BETWEEN ASSESSMENTS.

THAT WOULD BE MEANINGFUL.

MM-HMM YEAH.

I, I WANTED TO, UM, TAKE COUNCILMAN HAWKINS START JUST A LITTLE BIT FURTHER.

UM, JOHN, UM, AND I APPRECIATE MISTAKEN THAT, UH, TAKING THAT QUESTION ON, BUT I'M GONNA THROW ANOTHER ONE AT YOU ALSO TO THINK ABOUT, UM, IT, IT JUST GOES BACK TO THIS ONGOING DISCUSSION, I THINK, UM, REPORTING ON THE REAL ESTATE TRANSFER FEE, AND EVEN THE VALUE COMPARISON COULD BE SOMEWHAT OF A LAG TO WHAT'S ON THE GROUND CURRENTLY.

AND I THINK THE AMOUNT OF LISTINGS THAT ARE OUT THERE, I MEAN, KNOCKS ON DOORS THAT THE REALTORS ARE GETTING THOSE ALL KIND OF TELL THE REAL STORY AS TO HOW WE ARE PERFORMING ON A DAILY BASIS.

RIGHT.

AND I THINK THAT'S IMPORTANT FOR US TO HAVE A MECHANISM TO, TO GATHER THAT INFORMATION AS WE START TO BUILD FUTURE BUDGETS.

UM, YOU, YOU MENTIONED NORMALCY.

I THINK WE'RE STILL TRYING TO FIGURE OUT WHAT NORMALCY IS, RIGHT.

UM, AND THE, THE, THE, NOT JUST THE TRANSFER FEE, BUT JUST THE WAY THAT REAL ESTATE AFFECTS OUR ECONOMY ON HEALTH AIR OVERALL, I THINK IT'S IMPORTANT TO UNDERSTAND WHAT'S GOING ON

[00:45:01]

SO THE MORE THAT WE CAN DO TO OFFER THAT INFORMATION HERE LIVE TO US, I THINK WE'LL BE BETTER OFF AS FAR AS MAKING DECISIONS, NOT JUST AROUND REAL ESTATE TRANSFER FEE, BUT OTHER LINE ITEMS IN OUR BUDGET ALSO BECAUSE IT'S ALL RELATED.

I, I AGREE.

YES.

COMMENT.

IF I MIGHT, I HAVE A COMMENT ALSO ABOUT C I P UM, WHEN WE WENT INTO THE PANDEMIC, UH, WE FROZE, UH, C I P EXPENDITURES BECAUSE WE DIDN'T KNOW WHAT THE PANDEMIC WAS GOING TO DO THAT RESULTED IN THE BUILD UP OF CONSIDERABLE FUNDS AVAILABLE FOR C I P, WHICH IS THE REASON THAT THE BUDGET HAS BEEN INCREASED, UH, SIGNIFICANTLY, UH, TO PROVIDE FOR THAT.

BUT THE FACT THAT WE HAVE $32 MILLION BUDGETED, WE CAN'T SPEND THAT MONEY ALL IN ONE YEAR.

THERE'S NOT ENOUGH OF US TO GO AROUND, UH, AND WE WANNA MAKE SURE THESE PROJECTS ARE DONE RIGHT? AND SO WE ARE RELYING ON JENNIFER AND YOU TO MANAGE THESE FUNDS TO SO THAT WE'RE EXPENDING THEM APPROPRIATELY.

AND I KNOW THAT WE WILL.

SO I LOOK FORWARD TO MANY OF THE SIGNIFICANT C I P PROJECTS, UH, THAT ARE ON, ON THE, THE, THE HORIZON FOR US.

I PARTICIPATED IN A PUBLIC MEETING IN PORT ROYAL RECENTLY, AND THERE WAS A CONCERN ABOUT HOW WE WERE GONNA BE ABLE TO PAY, UH, FOR THESE PARK PROJECTS.

AND THERE WAS A CONCERN ABOUT TAX INCREASES.

AND I SAID, I DON'T ANTICIPATE A TAX INCREASE RATHER WHAT THIS COUNCIL HAS DONE AND WHAT THE TOWN HAS DONE IS WE STOPPED C I P PROJECTS A FEW YEARS AGO.

SO NOW WE HAVE MONEY IN THE BANK TO SPEND THIS.

AND SO WHILE MID ISLAND TRACK, FOR EXAMPLE, WILL BE A VERY EXPENSIVE UNDERTAKING.

IT WON'T BE FUNDED THROUGH A TAX INCREASE, UH, AND THERE WAS GREAT RELIEF, UH, IN THE PUBLIC ABOUT THAT.

SO IT'S IMPORTANT THAT THIS INFORMATION GETS OUT SO THAT PEOPLE DO UNDERSTAND THAT.

UH, AND SO, YOU KNOW, SOME SORT OF REPORT FROM YOU ON THE TOWN WEBSITE CONSIDER CONCERNING THESE ISSUES COULD BE VERY BENEFICIAL IN MAKING SURE THE PUBLIC IS AWARE.

I DON'T THINK THEY SIGN INTO OUR MEETINGS LIKE THIS VERY OFTEN.

THANK YOU.

THANK YOU FOR THE COMMENTS.

AND, AND I WOULD ALSO POINT TO ON THE TOWN'S WEBSITE, JENNIFER'S GROUP PUTS A LOT OF EFFORT INTO UPDATES ON CIP P PROJECTS.

AND SO LIKE SEAN HAD ADDRESSED IS THAT YOU CAN KNOW MUCH MORE DETAIL AND, AND WHERE EACH ONE OF THE PROJECTS, UM, STANDS AS FAR AS ON THROUGH THE LIFE CYCLE OF THE PROJECT.

I WILL BREAK PROTOCOL.

JOCELYN, WOULD YOU LIKE TO ADD SOMETHING? I JUST WANTED, UH, JOCELYNN STEGER FOR THE RECORD FROM THE HILTON HEAD AREA, REALTORS JUST WANTED TO LET YOU KNOW THAT WE DO HAVE UPDATED AND VERY THOROUGH MARKET REPORTS THAT WE PUT OUT THE 15TH OF EVERY MONTH, RIGHT AROUND THE 15TH.

SOMETIMES IT'S A FEW DAYS LATER, THEY BREAK DOWN ALL TRANSACTIONS, NOT ONLY BY MUNICIPALITY IN OUR REGION, BUT BY NEIGHBORHOOD.

UM, THEY'RE VERY THOROUGH AND I OFFER YOU THOSE AS A RESOURCE, UM, EITHER BY SENDING THEM TO YOU ALL, OR IF JOHN'S INTERESTED, UM, OR YOU ALSO CAN OBTAIN 'EM ON OUR WEBSITE, UM, WITHOUT A PROBLEM, BUT THERE'S A LOT OF REALLY GOOD INFORMATION THERE THAT GIVES YOU A SNAPSHOT OF TRANSACTIONS WHERE THEY'RE HAPPENING.