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[00:00:10]

GO? YES, SIR, WE ARE.

THANK YOU.

I CALLED TO ORDER THE TOWN OF HILTON HEAD ISLAND FINANCE AND ADMINISTRATIVE COMMITTEE OF TUESDAY, OCTOBER 18TH, 2022.

HAVE WE COMPLIED WITH FREEDOM OF INFORMATION ACT? YES, SIR.

WE HAVE.

THANK YOU.

KRISTA, PLEASE CALL THE ROLE MR. BROWN.

HERE.

MR. HARKINS? HERE.

MR. STANFORD? HERE.

MR. LENNOX? HERE.

ALL PRESENT, SIR.

THANK YOU.

WE HAVE THE MINUTES OF THE REGULAR MEETING OF A SEPTEMBER 20TH, 2022.

ARE THERE ANY RECOMMENDED CHANGES, ADDITIONS, OR DELETIONS? MOVE.

ADOPTION IS WRITTEN.

THANK YOU.

A SECOND, SECOND.

SECOND.

ALL THOSE IN FAVOR PLEASE SIGNIFY BY SAYING AYE.

AYE.

OPPOSE THE SAME MINUTES ARE APPROVED.

KRISTA, DO WE HAVE ANY APPEARANCE BY CITIZENS? YES, SIR.

WE HAVE ONE APPEAR OR ONE CITIZEN WHO SIGNED UP TO SPEAK TODAY.

AND THAT IS MR. SKIP HOLAND.

MR. HOLAND, BEFORE THE CLOCK STARTS, I'D LIKE TO PASS OUT SOME INFORMATION, IF YOU DON'T MIND.

UH, ALEX, HIS FIRST SHEET IS FOR YOU AND, UH, YOU STABBED THE WHITE COMMUNITY CENTER, BLACK COMMUNITY IN THE BACK AND THE SIGN ON YOUR FAMILY'S PROPERTY ON 2 78, YOU OUGHT BE ASHAMED OF YOURSELVES.

NOW SKIP POLAND WINDMILL HARBOR.

YOU'RE NOT IN FORER COMPLIANCE.

MR. LENOX, CAN YOU ANSWER THE FOLLOWER QUESTIONS FOR ME? SOUTH CAROLINA INVESTIGATORS AND YOUR FUTURE DEPOSITIONS AND LAWSUITS, WHY HAVE YOU ALLOWED THE CHAMBER AND ARIAN PICE AND RAY RAY DEAL TO PRESENT FRAUDULENT CHAMBER INDUSTRY PERFORMANCE METRICS IN ORDER TO HELP BILL MILES KEEP STEALING A TAX MONEY? WHY DID YOU SCHEME AND ALLOW THE DRAFTING OF THE ILLEGAL CHAMBER DMO CONTRACT WITH CROOKED TOWN LAWYERS, CURTIS COLTRANE, TERRY F CHAMBER LAWYERS, WALTER NESTER AND DAVID TIS TO KEEP ALLOWING BILL MILES TO KEEP ILLEGALLY STEALING MILLIONS OF A TAX FUNDS AS HIS SECRET SAUCE WITH NO FULL ACCOUNTING.

YOU MCCANNON HARKINS CLAIM YOU WENT TO THE CHAMBER OFFICES TO SEE THE ACCOUNTING AND RECEIPTS FOR ATAC EXPENDITURES.

IT WAS A LIE.

YOU COMMITTED CRIMINAL FRAUD.

YOU DID THIS, YOU SAID YOU DID THIS IN AN HOUR INSPECTION.

IT'S IMPOSSIBLE.

IT WOULDN'T EVEN TAKE A MO IT TAKE A MONTH.

YOU, IT, IT'S JUST OUTRAGEOUS.

MR. MR. LENNOX, IF AAC FUNDS PAY FOR THE DMO APP AND WEBSITE WITH OVER A MILLION DOLLARS TAKEN TO CANADA, HOW IS IT POSSIBLE BILL MILES CAN CLAIM HE OWNS THE DMO COMMUNICATION MEDIA PRODUCTS? WHAT HAPPENS TO THE DMO APP AND WEBSITE WHEN A NEW DMO IS HIRED UNDER PROCUREMENT? YOU DON'T REALLY THINK THIS IS GONNA CONTINUE, DO YOU? UNDER A TAX LAWS IN SOUTH CAROLINA CU CONSTITUTIONAL LAWS, YOU THINK THE DMO CONTRACT YOU SIGNED FOR FIVE YEARS BILL MILES WITH NO ACCOUNTING PROVISIONS AS ILLEGAL AND VALID FACT IS YOU KNEW IT WAS ILLEGAL AS WELL AS A CROOKED LAWYER'S FINGER AND CALL, TRAIN WHO SCHEMED.

THIS FACT IS YOU CAN'T ISSUE A TAX FUNDS TO BE ILLEGALLY USED BY BILL MILES FOR HIS $500,000 ANNUAL PAY PACKAGE.

THAT DOES NOT BENEFIT TOURISM OR THE PUBLIC GOOD REASON OR USE IT'S CONSTITUTIONALLY ILLEGAL.

THE CHAMBER AND BILL MILES CAN'T USE AID TAX FUNDS FOR PRIVATE PROFIT AND PAY NO IRS 5 0 1 DASH C6 NONPROFIT UBI TAXES FROM THEIR ADVERTISING SALES.

MR. AMES, YOU CAN'T BE THIS STUPID TO ALLOW THIS.

MR. LENNOX IS A LOST CAUSE.

I UNDERSTAND WHY HE DOES IT.

A TAX LAWS STATE A TAX FUNDS ISSUED TO A DMO MUST ONLY BE USED BY THE HIRE DMO TO PROMOTE AND MARKET THE DESTINATION ONLY.

WHERE DOES IT SAY THAT A HIGHER DMO CAN BE A HIRED NONPROFIT CHAMBER CBB AND WORSE CAN UPSELL ADVERTISING AND A DMO APP AND WEBSITE AND POCKET ALL THE PROFITS IN COMPLETE VIOLATION OF TAX CODES.

MR. LENNOX, YOU ARE A FRAUD.

THIS IS A TAX HEIST AND IT WILL END.

I LOOK FORWARD TO WATCHING THIS UNFOLD WITH THE MEDIA COVERAGE, LAWSUITS, DEPOSITIONS AND DISCOVERY, ESPECIALLY THE HANDCUFFS AND ARRESTS AND RAY DEAL IS GONNA GO TO PRISON.

THAT FELLOW RIGHT THERE, THAT CPA IS AN EMBEZZLING FRAUD.

KRISTA, DO WE HAVE ANY OTHER PERRY ALSO NOTE ANY OTHER CITIZENS? NO, SIR.

THAT CONCLUDES APPEARANCE BY CITIZENS.

THANK YOU.

WELCOME.

WE HAVE THREE NEW BUSINESS AGENDA ITEMS. THE FIRST IS THE CONSIDERATION OF A RESOLUTION OF THE TOWN OF HILTON HEAD ISLAND APPROVING THE USE OF GOOD NEIGHBOR FUNDS FROM THE AMERICAN RESCUE PLAN ACT FOR BEAUFORT COUNTY TOWARD THE TOWN'S PARTICIPATION IN THE REGIONAL HOUSING TRUST FUND.

MR. TROYER? THANK YOU MR. CHAIRMAN.

UM,

[00:05:01]

YEAH, BUFORD COUNTY IS PART OF THE, UH, STIMULUS FUNDING.

UM, THE APA FUNDING, UM, HAS DEDICATED SOME OF THE COUNTY MONEY TOWARD MUNICIPALITIES.

OUR SHARE, SHOULD WE CHOOSE TO TAKE IT, IS $500,000.

AND SO STAFF WOULD RECOMMEND THAT WE WOULD LET BEAUFORD COUNTY KNOW THAT WE WILL IN FACT TAKE OUR SHARE OF THE $500,000.

WE THOUGHT IT WOULD BE A GOOD IDEA AS OUR INITIAL, UM, INVESTMENT INTO THE REGIONAL HOUSING TRUST FUND.

WE THINK IT WOULD BE A GOOD IDEA FOR SEED MONEY FOR OUR BRAND NEW COMMUNITY DEVELOPMENT CORPORATION, BUT WE DON'T HAVE A BUDGET QUITE YET, BUT WE THINK IT WOULD BE GOOD TO DEDICATE, UM, SOME FUNDING FROM THIS TO THIS.

AND THEN THE BALANCE WOULD BE FOR WORKFORCE HOUSING.

UH, THERE'S NO BUDGET, THERE'S NO PLAN YET, BUT, UM, THAT COULD BE DEVELOPED.

BUT, UH, WE WOULD RECOMMEND TO ACCEPT THE FUNDS AND, UH, SET THESE ASIDE FOR THESE PURPOSES.

ANY QUESTIONS FROM COMMITTEE OF JOHN? WE'RE NOT IN THE BUSINESS OF TURNING DOWN $500,000, WHICH CAN SERVE THE BEST INTERESTS OF THE TOWN.

THANK YOU.

BEFORE WE OPEN IT UP, UH, FOR QUESTIONS AND COMMENTS FROM THE COMMUNITY, UH, I WOULD ENTERTAIN A MOTION, UH, TO APPROVE THE ACCEPTANCE OF FUNDS, UH, FORWARDED TO THE TOWN FROM THE COUNTY AND TO AGREE TO USE THE FUNDS AS DIRECTED FOR OTHER ARPA FUNDING TO INCLUDE THE INITIAL PART PARTICIPATION IN THE REGIONAL HOUSING TRUST FUND.

SO MOVED.

SECOND.

ANY DISCUSSION AMONG COUNSEL? YEAH.

ARE WE EXCLUDING THE LAST PART OF THE, UH, THE BUSINESS ITEM THERE? NO, I THINK THAT SHOULD BE INCLUDED AS WELL.

UH, KRISTA, THE MOTION WILL INCLUDE INITIAL PARTICIPATION IN REGIONAL HOUSING TRUST FUND AND WORKFORCE HOUSING PURPOSES.

THANK YOU.

YES, SIR.

I HAVE.

IT ALSO SPEAKS TO THE COMMUNITY DEVELOPMENT CORPORATION IN THAT HELPS INCLUDES WHAT THE STAFF WAS RECOMMENDED.

IF YOU DON'T, KRISTA, THE MOTION WILL INCLUDE THE CDC OPERATING FUNDING AND WORKFORCE HOUSING TO INCLUDE THE INITIAL FUNDING FOR THE REGIONAL HOUSING TRUST FUND.

COMMENTS FROM THE COMMUNITY.

MR. HOLAND, THANK YOU VERY MUCH.

I'M SORRY TO INTERRUPT YOU.

UM, I JUST WANNA MAKE A STATEMENT AND I WANNA MAKE SURE THAT Y'ALL UNDERSTAND THIS.

YOU'VE BEEN SUED.

I FINANCED THE LAWSUIT AGAINST YOU FOR THE $2 MILLION TO C PINES PLANTATION FOR THE DREDGING OF HARBORTOWN AND OTHER USAGE OF PUBLIC MONIES FOR PRIVATE PURPOSES BEHIND A GATED COMMUNITY THAT THE PUBLIC DOES NOT HAVE ACCESS TO.

YOU'RE GONNA LOSE THAT LAWSUIT BECAUSE THE SUPREME COURT RULED THAT YOU CAN'T USE, IT'S UNCONSTITUTIONAL TO USE PUBLIC FUNDS FOR PRIVATE PURPOSES.

IF THE PUBLIC DOES NOT HAVE ACCESS, FREE ACCESS AND USE TO ANY FACILITY, THE HOA, THE HOMEOWNERS, WHOEVER IT IS, HAS TO PAY FOR THAT.

TAXPAYERS DON'T PAY FOR THAT.

TAX FUNDS HAVE TO BE USED BY THE CHAMBER OF COMMERCE AND OTHER PEOPLE FOR THEIR, AND FUNDED BY THEIR OWN, BY THEIR OWNERS, BY THEIR MEMBERS, BY THEIR DONORS.

THAT'S NOT WHAT PUBLIC MONIES ARE FOR.

BE SURE YOU UNDERSTAND.

TO BE CLEAR, PUBLIC FUNDS CANNOT BE USED FOR PUBLIC FOR PRIVATE PURPOSES.

IT'S NOT FOR THE PUBLIC GOOD.

THE USE AND THE BENEFIT AND THE REASON.

AND THE SUPREME COURT RULED ON THAT.

AND WE HIRED ONE OF THE LEADING CONSTITUTIONAL EXPERT LAWYERS IN THE STATE IN GREENVILLE.

HE'S NOT LOCAL.

HE'S FROM GREENVILLE, AND HE'S FILED OVER A HUNDRED LAWSUITS NOW.

I JUST WANNA MAKE THAT CLEAR AND I HAVE A COMMENT ON THE NEXT ONE AS WELL.

THANK YOU VERY MUCH.

ANY OTHER PUBLIC COMMENT AS IT PERTAINS TO THIS AGENDA ITEM? IF THERE ARE NONE, I'LL BRING IT BACK TO THE DIAZ.

ANY OTHER COMMENTS FROM THE COMMITTEE? THIS WOULD BE A RECOMMENDATION TO COUNSEL TO ADOPT THIS RESOLUTION, CORRECT? YES.

THANK YOU.

TH UH, THIS IS CLEARLY A VERY WORTHWHILE CAUSE.

UH, IT'S ALREADY NEEDED AND IT'S A VERY TANGIBLE EXPRESSION OF OUR COMMITMENT TO DO SOMETHING OR WORK FOR HIS HOUSING.

CRYSTAL, PLEASE CALL THE ROLE MR. CHAIRMAN FOR A POINT OF, UH, ORDER.

COULD YOU PLEASE REPEAT WHO MADE THE INITIAL MOTION AND THE SECOND I DID NOT DOCUMENT THAT.

BILL HARKINS MADE THE MOTION.

GOT IT.

BELIEVE I SECOND DID.

PERFECT.

THANK YOU, SIR.

UH, FOR THE ROLE OF MR. BROWN SUPPORT.

MR. HARKINS? YES.

MR.

[00:10:01]

STANFORD? YES.

MR. LENNOX? YES.

MOTION.

CARRIE, SIR.

THANK YOU.

THE SECOND AGENDA ITEM UNDER NEW BUSINESS IS A PRESENTATION OF THE HILTON, THE HEAD ISLAND VISITOR AND CONVENTION BUREAU ANNUAL REPORT.

THE INDEPENDENT ACCOUNTANTS REPORT ON APPLYING AGREED UPON PROCEDURES.

TWO SEPARATE REPORTS.

MR. RAY DEAL.

THANK YOU.

RIGHT.

THIS IS WHAT WE HAVE UP HERE.

ALL.

OKAY.

FOR THE RECORD, RAY DIE CONTROLLER AT THE HILTON HEAD ISLAND, BLUFFTON SCHER OF COMMERCE.

UH, ON A PERSONAL NOTE, I CAN'T TELL YOU HOW MUCH I ENJOY COMING TO THESE MEETINGS.

THEY'RE JUST FANTASTIC, ESPECIALLY KICKS MY DAY OFF PERFECTLY.

UM, THIS DOCUMENT IS THE DMO CONTRACT THAT WAS SIGNED WITH THE TOWN IN OCTOBER OF 2020.

PAGE SIX, VERY CLEARLY, UM, HAS SPECIFIC COUNTING PROVISIONS.

IN ADDITION TO THE, UM, THE AUDIT, WHICH I JUST HANDED YOU, THERE IS SOMETHING CALLED THE, UM, AGREED UPON PROCEDURES, WHICH BASICALLY LOOKS AT THE DMO TAX DOLLARS SPEND.

UH, THE THRESHOLDS ARE, UM, A HUNDRED PERCENT OF THE ITEMS OVER $10,000, 55% OF THE ITEMS BETWEEN FIVE AND 10005% OF THE, THE ITEMS UNDER, UH, UNDER $5,000.

UM, IN THIS CASE, UH, THIS PAST YEAR, THERE WERE A TOTAL, UM, NUMBER OF JOURNAL ENTRY ITEMS OF 590 AND 130 OF THEM, UM, WERE LOOKED AT.

THAT IS 22% OF THE TOTAL TRANSACTIONS.

HOWEVER, FROM A PERS UH, PERCENTAGE OF SPEND, IT WAS 83%, 83% OF THE TOWN OF HILTON HEAD A TAX DOLLARS WERE LOOKED AT.

SO IN ADDITION TO THE, IN ADDITION TO THE OVERALL ORGANIZATIONAL, UH, AUDIT THAT WE, THAT WE, UH, THAT WAS PERFORMED BY HOLLAND, UH, BROWNLEY BARN HILL AND BRETT, WHICH IS A FIRM OUT OF SAVANNAH THAT WE'VE BEEN ONLY USING FOR TWO YEARS.

UH, SO THEY WERE BRAND NEW AUDITORS TWO YEARS AGO.

IN ADDITION TO THE OVERALL AUDIT OF THE ORGANIZATION, WE DO THE, UM, BASICALLY WHAT'S, WHAT'S A SECOND AUDIT FOR, UH, THE TENANT OF ATEX.

AND THE NET, NET OF EVERYTHING IS A COMPLETELY CLEAN AUDIT.

THERE ARE NO ADJUSTING ENTRIES.

AND, UM, IT WAS IN A PERFECTLY CLEAN AUDIT.

SO WHERE THERE HAVE BEEN ACCUSATIONS OF NO ACCOUNTING PROVISIONS AND FRAUD AND EMBEZZLEMENT, AND ALL THESE OTHER RIDICULOUS CLAIMS, I CAN TELL YOU WITH A HUNDRED PERCENT CERTAINTY AND SO CAN THE AUDITORS THAT NONE OF THAT IS TRUE.

SO I'M SUBMITTING THOSE DOCUMENTS TO YOU TODAY.

IF YOU HAVE ANY QUESTIONS, UM, PLEASE FEEL FREE TO ASK ME.

UM, KEEP IN MIND THAT YOU, YOU KNOW, YOU DO, AND JUST SO THE PUBLIC KNOWS THIS, THE TOWN OF HILTON HEAD HAS INSPECTION RIGHTS.

SO NOW THAT THE AUDIT IS OVER, IF YOU WISH TO SEE EVERY SINGLE TRANSACTION, YOU'RE MORE THAN WELCOME TO IT.

ANY QUESTIONS? KRISTA, FOR THE RECORD, UH, MR. DEAL GAVE THE COMMITTEE, UH, THE SEPTEMBER 22ND INDEPENDENT ACCOUNTANTS REPORT ON APPLYING AGREED UPON PROCEDURES, UH, AND THE AUDIT, UH, EFFECTIVE THE YEAR END JUNE 30TH, 2022.

QUESTIONS OR COMMENTS? UM, COMMITTEE.

RIGHT? WHAT, WHEN YOU SUMMARIZE ALL OF THE REVIEW, WHAT'S, WHAT IS THE LEVEL OF CONFIDENCE THAT THIS IS ACCURATE? A HUNDRED.

THANK YOU.

UH, FOR THE COMMITTEE'S BENEFIT, I I WANT TO, UH, OFFER SOME BACKGROUND, UH, TO THE, UH, AGREED UPON PROCEDURES REPORT.

AS YOU RECALL, IN NEGOTIATING THE NEW FIVE YEAR CONTRACT APPROXIMATELY TWO AND A HALF YEARS AGO, UH, WE ENGAGED, UH, A, UH, AN ACCOUNTANT WITH 30 YEARS ARTHUR ANDERSON EXPERIENCE, AND HE SERVED AS A PARTNER, AND HE WAS THE NATIONAL DIRECTOR OF ITS FORENSIC ACCOUNTING PRACTICE.

UH, AND, UH, THROUGH DISCUSSIONS WITH MR. BORGA, UH, IT WAS RECOMMENDED THAT WE DO THIS, UH, AGREED UPON PROCEDURES REPORT WHERE WE TEST, UH, CERTAIN OF THE INVOICES, AND IT WAS AGREED UPON 65% OF EVERY INVOICE OVER 10,000, 55%, 55%, UH, OVER 10,000, OH, NO, EXCUSE ME, A HUNDRED PERCENT OVER 10,000,

[00:15:01]

EXCUSE ME, A HUNDRED PERCENT OF 10 55%, YES.

BETWEEN FIVE AND 10? THAT'S CORRECT.

AND 5%, UH, UNDER 5,000? CORRECT.

AND AS, AS A RESULT OF THAT TESTING, UH, 83% OF THE ATAC FUNDING THAT WENT TO THE DMO, UH, WAS TESTED.

UH, AND A HUNDRED PERCENT OF THAT TESTING WAS FULLY COMPLIANT, UH, WITH NOT ONLY THE AGREEMENT BETWEEN THE TOWN AND THE DMO, BUT WITH THE SOUTH CAROLINA, UH, CODE.

THAT'S CORRECT.

I ASKED MR. BORGA SUBSEQUENT TO THE, UH, THIS TESTING, UH, WHAT 80, 83%, UH, MEANS.

AND HE SAYS 83% IS STATISTICALLY MEANINGFUL, SIGNIFICANT AND SHOULD GIVE THE USER I E THE TOWN, UH, A HIGH LEVEL OF CONFIDENCE.

UH, AND I THINK THAT IT DOES GREAT.

UH, I WOULD DIRECT THE COMMITTEES, UH, ATTENTION TO PAGES 13, 14, AND 15 IN THE AUDIT, WHICH SHOW THE FULL ACCOUNTING OF A TAX REVENUE AND ATEX EXPENSES, UH, AS WELL AS THE FULL REPORT UPON AGREED UPON PROCEDURES.

I HAD A COUPLE COMMENTS.

MR. JEV.

I COULD THANK YOU.

MISS DI, THANK YOU FOR BEING HERE.

WE APPRECIATE, UH, THE PARTNERSHIP WITH THE CHAMBER AND THE GOOD WORK THAT'S BEING DONE.

WE CONTINUE TO IMPROVE UPON OUR RELATIONSHIP, PARTICULARLY WITH THE, THE FIVE YEAR CONTRACT IN PLACE.

UM, THE, UH, THE LETTER HERE FROM THE FIRM, UH, DATE SEPTEMBER 22ND, 2022.

UM, IS THAT WHEN THE AUDIT WAS COMPLETED? THE AUDIT WAS DONE IN AUGUST, THE THIRD WEEK OF AUGUST.

IT WAS PRESENTED TO THE FINANCE COMMITTEE SECOND OR THIRD WEEK OF SEPTEMBER, AND THEN APPROVED BY OUR BOARD, UH, SEPTEMBER 26TH, I BELIEVE WAS THE DATE.

UM, SO THE, THE BOARD HEARD THE PRESENTATION FROM THE AUDITORS, AND ACTUALLY MR. LENNOX WAS IN THE CROWD, UH, BECAUSE HE WAS THERE, UM, FOR A D A DIFFERENT REASON.

SO HE ACTUALLY HEARD THE AUDITOR'S PRESENTATION.

OKAY.

UM, AGAIN, I APPRECIATE THE, THE PROCEDURES AND US HAVING THIS IN THE PROCESS.

UM, I JUST ASKED IT IN THE FUTURE.

WE GET THIS IN ADVANCE OF THE MEETING SO THAT WE HAVE TIME TO DIGEST IT AND THEN HAVE QUALIFIED QUESTIONS FOR YOU ALONG THE WAY.

YES, SIR.

UM, SO WE'RE NOT TAKING ANY ACTION ON THIS TODAY.

CORRECT? WE'RE JUST ACCEPTING THIS INFORMATION.

UH, I, I WILL REPORT TO COUNSEL THIS AFTERNOON THAT WE HAVE RECEIVED THE REPORTS OKAY.

AND MAKE ANY COMMENTS THAT YOU THINK IS APPROPRIATE FROM THE COMMITTEE.

OKAY.

I, I DIDN'T HAVE ENOUGH TIME ON THE DI HERE TO GO THROUGH IT.

OF COURSE.

SO I'D ASK THAT IF WE HAVE QUESTIONS.

SURE.

WE CAN INVITE MR. DEAL BACK.

WE CAN FOR DISCUSSION AT A LATER DATE.

OKAY.

THANK YOU.

AND AS I SAID BEFORE, UM, THE, THE TOWN HAS INSPECTION RIGHTS, YOU KNOW, IF YOU WISH TO COME TO THE CHAMBER, WE CAN LOOK AT EVERY SINGLE INVOICE THAT WE HAD, ALL 590 OF THEM, ALL 590 TRANSACTIONS OVER THE YEAR.

IF YOU WANNA LOOK AT EVERY SINGLE ONE, YOU'RE MORE THAN WELCOME TO IT.

AND HAS THE TOWN USED THOSE INSPECTING RIGHTS IN THE PAST? YES, THEY HAVE.

FREQUENTLY, YES.

I AGREE WITH, UH, ALEX'S COMMENT.

IT'S REALLY NOT POSSIBLE FOR US TO COMMENT ON THIS REPORT HAVING JUST RECEIVED IT.

SO, UM, WE'LL SEE IF WE HAVE QUESTIONS COMING OUT OF THE STUDY AND WE'LL INVITE YOU BACK AS NECESSARY.

THANK YOU, RAY.

SOUNDS GREAT.

THANKS.

SO NO ACTION IS BEING TAKEN.

FIRST OFF, NO, SIR.

THERE IS NO ACTION ON THIS ITEM TODAY.

NO, I HAVE A, I HAVE A COMMENT, PLEASE.

ON THAT AGENDA ITEM, I HAVE COMMENTS ON ALL AGENDA ITEMS, OR LET'S SAY MOST, FIRST OF ALL, WHAT WE, WHAT YOU JUST RECEIVED IS FRAUD.

IT'S A LIE.

AND I'M GOING TO, I'M GONNA HELP EDUCATE YOU'ALL ONCE AGAIN AT BANKER LENNOX.

YOU SHOULD UNDERSTAND THIS, AND I KNOW YOU DON'T UNDERSTAND IT, BUT YOU'RE SO CORRUPT.

YOU'RE JUST GONNA, YOU'RE GONNA KEEP DOING EXACTLY WHAT YOU'RE DOING.

A AUDIT, AN INTERNAL HIRED AUDIT UNDER GAS ACCOUNTING PRINCIPLES, GENERAL ACCEPTED ACCOUNTING STANDARDS.

WE KNOW ABOUT THAT, RIGHT? MR. LENNOX, YOU KNOW ABOUT ALL THAT KIND OF AUDITS, RIGHT? WELL, LET ME TELL YOU ABOUT THAT KIND OF AUDIT, NOT AS YOU, THAT KIND OF AUDIT, THAT THE, THAT YOU, THAT THE TOWN HIRES AND THE CHAMBER, UH, SHOWS, ALL OF US ONLY SHOWS THE NUMBERS THAT THE INSIDERS AND THE PEOPLE THAT ARE, THAT ARE DOING THESE, THESE, UH, FINANCIALS WANT US TO SEE.

THERE'S ONLY ONE WAY THAT THIS IS GONNA WORK.

AND WHAT YOU'VE GOT TODAY, AND THAT IS IF RAY DEAL AND THE TOWN AGREES TO A FORENSIC AUDIT, IF YOU DO NOT DO A FORENSIC AUDIT AND YOU DO NOT AGREE

[00:20:01]

TO A FORENSIC AUDIT, I ASSUME THAT STATE AUTHORITIES ARE GONNA MAKE YOU FORCE YOU TO DO A FORENSIC AUDIT LIKE THEY DID IN PALM BEACH, FLORIDA.

AND I HAVE THAT PALM BEACH AUDIT.

IT'S ABOUT THAT THICK.

AND SO WHEN YOU AND HARKINS, MR. LENNOX AND JOHN MCCANN GO TO THE CHAMBER OFFICES AND ASK BILL MILES AND RAY DEAL TO PUT OUT SOME RECEIPTS AND INVOICES ON THE TABLE AND INSPECTION FOR ONE HOUR, MY FORENSIC AUDITOR, WHO, WHO WHO WORKS FOR ME AND MY NONPROFIT EXPERT SAYS, IT'S IMPOSSIBLE.

THAT WOULD TAKE OVER, IT'D TAKE MONTHS TO GO TO DO A FORENSIC AUDIT AND A FORENSIC AUDIT, UNLIKE A HIRED INTERNAL AUDIT AT THE TIME, THE CHAMBER DOES, IT'S TWICE AS EXPENSIVE.

SAME WITH THE SCHOOL DISTRICT, BUT IT'S WORTH IT BECAUSE WE'RE TALKING ABOUT A LOT OF MONEY ON THE LINE.

WE'RE TALKING A LOT ABOUT A FRAUD, A LOT OF EMBEZZLEMENT.

WE'RE TALKING ABOUT LAUNDERING, WE'RE TALKING ABOUT ALL KINDS OF STUFF.

WE'RE TALKING ABOUT VIOLATIONS TO PROCUREMENT LAWS, IRS TAX LAWS, UNCONSTITUTIONAL USE OF LAWS.

SO RAY DEAL'S GONNA HAVE TO ANSWER SEVERAL THINGS.

HE'S USING THESE TAX MONIES TO TAKE OVER A MILLION DOLLARS TO CANADA TO DEVELOP AN APP AND A WEBSITE.

WELL, THE APP IS A COMPLETE FAILURE.

THAT WAS A, THAT WAS AN OVERCHARGE.

A HUNDRED THOUSAND DOLLARS OVERCHARGE.

IT SHOULD HAVE ONLY COST ABOUT 10 OR 15,000.

AND BY THE WAY, I'M IN THE BUSINESS, YOU KNOW, A TECHNOLOGY WAS MY, WAS MY COMPANY.

THAT'S HOW I RETIRED.

SO RAY DEAL'S GOTTA SHOW US HOW ALL THE ADVERTISING MONIES THAT WERE UPSOLD ON THE DMO APP AND WEBSITE, THE VIOLATIONS TO IRS, EBIT AND 5 0 1 DASH C SIX TAX CODES.

AND YOU WERE GONNA HAVE TO DO A FORENSIC AUDIT.

AND THAT'S NOT GONNA BE A FORENSIC AUDIT DONE, DONE BY ONE OF YOUR COMMITTEES, MR. LENNOX.

IT'S GONNA BE A TOTALLY INDEPENDENT AUDIT, MAYBE DONE BY THE TREASURY, BY TURK, BY OUR ARREST BY SLED.

SOMEBODY'S GONNA DO IT, BUT IT'S NOT GONNA BE YOU.

OKAY.

SO YOU GUYS THINK ABOUT THIS, AND WHEN YOU'RE, WHEN YOU'RE FINALLY GET INTO A DEPOSITION, YOU'RE ASKED QUESTIONS, BE VERY CAREFUL WHAT YOU SAY.

COMMITTEE, OUR THIRD AGENDA ITEM IS THE TOWN OF HILTON HEAD ISLAND FINANCIAL REPORT AND UPDATE FROM JOHN TRUER.

THANK YOU, MR. CHAIRMAN.

UM, YEAH, HERE'S OUR, UH, MONTHLY UPDATE FOR THE THREE MONTHS ENDING SEPTEMBER 30TH.

UM, AGAIN, THIS IS, UH, THE TOWN CONTINUES TO MONITOR REVENUES, TO CONTINUE TO CONTROL EXPENDITURES AND ADJUST WHERE WE NEED TO, UH, TO EARLY CONCLUSIONS.

THIS IS EARLY IN THE YEAR, AND SO SOME OF OUR PERCENTAGES AND DIFFERENCES SEEM GREATER THAN THEY ARE.

AND AS WE GO, UM, WE EXPECT THEM TO MODERATE.

UM, AND THEN THE OTHER TAKEAWAY IS THAT THIS IS, UM, UH, ON TRACK WITH OUR BUDGET AND ON TRACK WITH OUR EXPECTATIONS.

AND SO THIS IS RIGHT WHERE WE WOULD EXPECT TO BE.

UM, AGAIN, TOWN COUNCIL, WE ALWAYS APPRECIATE TOWN COUNCIL'S ACTIONS TO BUILD RESERVES, DIVERSIFY THE REVENUE STREAMS AND INVEST IN THE ISLAND.

ALL THREE OF THOSE THINGS HAVE, UH, SERVED THE ISLAND VERY WELL.

UM, SEPTEMBER PRELIMINARY RESULTS, AND I PUT AN ASTERISK BY HERE JUST TO, TO EMPHASIZE THAT I, I'M TRYING TO MAKE THIS AS, AS TIMELY AS I CAN.

AND, UM, WHEN YOU GET OUR SEPTEMBER, UM, RESULTS AND, AND THE, THE USUAL MONTHLY FINANCIAL STATEMENTS, THERE MIGHT BE SOME DIFFERENCES.

THERE WILL BE SOME DIFFERENCES.

UM, I PULL THIS INFORMATION AND MAKE THIS AS TIMELY AS I CAN.

AND THEN, UH, WE'RE STILL WORKING IN THE FINANCE DEPARTMENT.

THERE MIGHT BE A FEW TRANSACTIONS IN BETWEEN WHEN I MAKE THIS REPORT AND WHEN THE MONTHLY REPORT IS, BUT THERE'S GENERALLY NOT TOO MUCH.

BUT, UM, IF YOU EVER LOOK AT THIS AND SAY, WELL, HOW COME THIS IS DIFFERENT THAN THAT? CERTAINLY ASK ME.

BUT THEN KNOW THAT IT'S, UM, WE HAVE SOME LATE ENTRIES AND, UH, WE TRY TO MAKE THE MONTHLY, UM, EVEN MORE COMPLETE THAN WHAT THIS INFORMATION IS.

SO WHEN I PUT THIS TOGETHER, THIS WAS THE MOST COMPLETE AND UPTODATE INFORMATION WE HAD, BUT IT MAY NOT BE THE LAST, UH, GENERAL FUND.

UM, YOU CAN SEE IF JUST LOOKING AT SEPTEMBER, UM, WE DID BETTER THAN LAST YEAR.

UM, IF YOU LOOK AT, UM, COMPARISON, UH, TWO YEARS AGO, 2021 HAD AN ANOMALY, UM, IN SEPTEMBER, 2022.

HAD AN ANOMALY IN AUGUST.

UM, OUTSIDE OF THAT, THEN WE ARE, UM, PLEASED WITH SEPTEMBER'S RESULTS ON, ON THE COLLECTION SIDE, UM, YEAR TO DATE, UH, 2023, UM, 2022 AND 2021.

BOTH HAD, UM, POSITIVE ANOMALIES FROM, UH, STATE COLLECTIONS OF, UH, BUSINESS LICENSE, UM, REVENUES.

AND, AND SO THAT KIND OF MADE IT OUTLIER, ESPECIALLY THIS EARLY IN THE YEAR.

THEY REALLY, UH, MADE A DIFFERENCE.

BUT, UM, IF YOU COMPARE 2023 WITH, UH, THE YELLOW AND THE PURPLE, UM, AND THAT WOULD BE 20 20 20

[00:25:02]

IN 2019.

UM, STILL SIGNIFICANT GROWTH, SO WE'RE GOOD.

UM, THIS CHART EMPHASIZES WE'RE THROUGH WITH THE FIRST THREE MONTHS AND WE'VE GOT A LONG WAY TO GO.

UM, 2022 AS A RECORD YEAR.

UM, WE HOPE THAT, UM, WE KEEP UP WITH THAT.

AND SO OUR BUDGET FOR THE GENERAL FUND IS 48 6 MIL, $48.6 MILLION.

WE'RE, WE'RE COMFORTABLE WITH THOSE PROJECTIONS.

UM, AND YEAH, WE'LL HAVE TO DEFINITELY KEEP AN EYE ON IT.

YOU CAN SEE SEPTEMBER'S NUMBERS.

AND THEN, UH, THE PROJECTIONS, UH, CERTAINLY GO UP FROM HERE.

SO YOU CAN SEE DECEMBER THROUGH MARCH THE, UH, PROPERTY TAXES AND, AND THE INFLUENCE THE PROPERTY TAX COLLECTIONS HAVE.

SO, UM, UH, LOOKING BACKWARDS, JUST JUST A LITTLE FOR THE RECORD, UM, THESE ARE THE, THE, THE ONES THAT WE LIKE TO LOOK AT EACH MONTH ARE THE ONES I LIKE TO PRESENT EACH MONTH.

AND, UH, 2022 IS AN EXCEPTIONAL YEAR.

AND, AND YOU CAN LOOK AT AT OF THESE REVENUES THAT WE LOOK AT EACH MONTH TO TRY TO GET, UH, OUR FINGERS ON THE PULSE OF THE ECONOMY.

UM, ALL OF THEM, BUT WERE ALL OF THEM.

BUT ONE, WERE ONE, NUMBER ONE ALL TIME BEST.

AND THE REAL ESTATE TRANSFER FEE WAS A SECOND BEST ALL TIME.

AND SO, UM, 2022 IS AN EXCEPTIONAL YEAR, JOHN.

AND I THINK IT'S IMPORTANT TO SAY THAT BECAUSE 22 WAS EXCEPTIONAL, WE DID NOT BUILD THE 23 BUDGET BASED UPON 22.

THAT'S EXACTLY RIGHT.

NO, WE DID, WE DID NOT.

UM, AND SO WE'RE, WE'RE, WE'RE NOT EXPECTING THOSE EXCEPTIONAL RESULTS IN ORDER TO FULFILL THE BUDGET.

THAT'S, THAT'S CORRECT.

AND SO, UM, WE EXPECT, AND, AND WE DON'T HAVE A CRYSTAL BALL.

AND SO WE'RE NOT COUNTING ON EXCEPTIONAL RESULTS WHEN I THINK WE'RE COUNTING ON GOOD RESULTS.

UM, BUT WE HAD EXCEPTIONAL RESULTS, AND WE CAN TAKE A MOMENT AND PAUSE AND, UM, ENJOY THAT MOMENT.

BUT THEN THERE'S A NEW YEAR AND WE HAVE TO MAKE SURE THAT WE MAKE BUDGET.

AND SO I, WE'RE THREE MONTHS IN AND I FEEL COMFORTABLE WE'LL MAKE BUDGET MM-HMM.

.

UM, AND SO IF YOU LOOK AT EXCEPTIONAL YEAR, WE'VE HAD A A ONE TIME, UM, YOU CAN LOOK AT THE BUSINESS LICENSE COLLECTIONS.

UM, IT WAS ABOUT 1,000,004, ALMOST 1,000,005.

THAT WAS A ONE TIME PAYMENT FROM THE STATE LAST YEAR THAT MAKES THIS YEAR'S STEAM LOWER.

UM, BUT IF YOU TAKE THAT AWAY, THEN UM, WE'RE DOING FINE.

AND SO THIS IS ALL VERY EARLY.

UM, WE KNOW REAL ESTATE TRANSFER FEE WILL TALK MORE ABOUT THAT, UM, IN MORE DETAIL LATER.

UM, YEAH, I WOULD LIKE TO HAVE AN EXPLANATION ON THE, THE VARIANCE IN THE TIFF FUNDS.

IS THAT BECAUSE THE TIFF IS WINDING DOWN? NO.

UM, IT'S JUST BECAUSE, AND IF YOU LOOK AT THE NOTE THAT I'VE PUT, WE'VE ONLY COLLECTED 1% OF WHAT WE EXPECT THIS YEAR.

AND SO WHEN WE COLLECT THE OTHER 99%, I THINK WE'LL, WE'LL EXCEED LAST YEAR.

AND SO I, I, I, THE TIFF IS WORKING, IT'S WORKING VERY WELL, IT'S WORKING EXACTLY LIKE IT SHOULD, BUT BECAUSE WE'RE SO EARLY IN THE YEAR AND THE TIFF COLLECTIONS ARE TIED TO THE PROPERTY TAX COLLECTIONS, WE'LL SEE THAT IN DECEMBER THROUGH MARCH.

AND, AND THE MEANINGFUL NUMBERS ON THE TIFF WILL BE IN MARCH, BUT WE SEE, UH, IN THE PREVIOUS TWO YEARS FOR THE SAME YEAR TO DATE NUMBER, BIG VARIANCE.

AND THAT'S THE REASON FOR MY QUESTION.

YEAH.

YEAH.

AND, AND IS IT, CAN YOU EXPLAIN IT? NO, I, I, NO, I THINK WE JUST, UM, KNOW THAT IT'S, UM, WE'LL KEEP AN EYE ON THAT.

AND SO WHAT HAPPENS, THE KIND OF COLLECTIONS THAT ARE EMPHASIZED IN THIS PART OF THE YEAR ARE HOW MANY OF THEM ARE, UM, DELINQUENT.

AND SO, UM, IF THERE'S LESS DELINQUENT PROPERTY TAX COLLECTIONS, THEN OUR YEAR TO DATE UP UNTIL SEPTEMBER IS GONNA BE LESS COMPARED BECAUSE THE NEW TAX BILLS AREN'T OUT YET.

THE NEW TAX BILLS, WE EXPECT TO BE OUT SOMEWHERE AROUND NOVEMBER THE FIRST, AND THAT'S WHEN WE'LL GET THE NEW PROPERTY TAXES.

AND SO WHAT YOU'RE SEEING IS TWO PIECES OF THAT.

UM, YOU'RE SEEING THE AUTOMOBILE, THE, THE PIECE OF YOUR PROPERTY TAXES THAT GO WITH YOUR AUTOMOBILES AND, UM, DELINQUENT COLLECTIONS.

AND SO DELINQUENT COLLECTIONS ARE, ARE VERY, UM, UNPREDICTABLE.

THEY GO UP AND DOWN AND, AND IT'S, IT'S FULLY EXPECTED JUST BECAUSE IT, IT DEPENDS ON THE INDIVIDUAL PROPERTIES FOR THAT PARTICULAR YEAR.

SO WE'LL COUNT ON YOU TO BRING IT BACK TO BUDGET.

THANK YOU.

.

I, I, I DON'T HAVE ANY CONCERNS.

I LOOKED AT THE NUMBER TWO AND IT SAID, WOW, IT'S 75% DOWN, BUT WE'LL WAIT.

WE'RE ONLY 1% INTO THIS 99% TO GO,

[00:30:01]

WE'RE GONNA BE FINE.

UM, INTERESTINGLY, IF YOU LOOK AT THE H TAX, WE HAD A RECORD YEAR LAST YEAR, AND YET WE'RE 2.4% BETTER THAN LAST YEAR BEACH PRESERVATION FEE.

WE HAD A RECORD YEAR AND WE'RE STILL 2.2% BETTER THAN LAST YEAR.

UM, ELECTRIC FRANCHISE FEE WAS A LITTLE OFF LAST YEAR, AND SOME OF THAT IS WEATHER RELATED AND SOME OF THAT IS, UM, JUST USAGE RELATED AND, AND WE'RE DOING BETTER THAN LAST YEAR, BUT LAST YEAR WAS AN OFF YEAR FOR THE ELECTRIC FRANCHISE FEE.

SO, UM, YEAH.

AND, AND IF YOU LOOK AT THE PROPERTY TAXES GENERAL FUND, WE'RE DOWN 5.9%, BUT WE'VE GOT 98.5% TO GO.

AND SO THE STORY IS YET TO BE TOLD, THE VAST MAJORITY OF THE, UH, STORY IS YET TO BE TOLD.

UM, IF YOU LOOK AT COLLECTIVELY, UM, FOR ALL THESE REVENUES TOGETHER, WE'VE COLLECTED 7 MILLION OUT OF 99 MILLION LAST YEAR.

AND SO THAT'S 7%, 93% TO GO.

UM, AND, AND SO THERE'S THE MOST OF THE STORY IS YET TO BE TOLD MM-HMM.

, JOHN, AS FAR AS THE, UH, GUESS THE H TAX, UM, I GUESS ALL OF THE, THE FEES THAT ARE NECESSARILY ASSOCIATED WITH, I GUESS THE POINT OF SAILED, UM, IS THERE ANY WAY, I'M NOT ASKING YOU TO ANSWER THIS QUESTION TODAY, I'M JUST THINKING DOWN THE ROAD, IS THERE ANY WAY TO RELATE THOSE EITHER INCREASES OR DECREASES TO TRANSACTION VERSUS PRICE POINT? BECAUSE WE'RE TAKING A PERCENTAGE OF THE PRICE POINT TO THE DEVELOP THE TAX, RIGHT? SO AS WE'VE SEEN INFLATION AND WE'VE SEEN COST OF, SAY, ROOM PER NIGHT CONTINUE TO CREEP ON US, WE WOULD ASSUME THAT OF COURSE, THIS NUMBER'S GONNA CONTINUE TO GO UP.

SO IT IS HARD TO DETERMINE IF IT'S THAT WE ARE MAKING MORE TRANSACTIONS OR WE'RE JUST CHARGING MORE PER TRANSACTION.

UM, JUST FOR FUTURE THOUGHT AS WE DEVELOP REPORTS.

I THINK THAT'S IMPORTANT FOR US TO, TO UNDERSTAND.

AND I THINK IT'S A, IT'S A VERY GOOD POINT AND, AND I THINK THAT'S SOMETHING THAT WE SHOULD CONSIDER AS WE GO MOVE THROUGH THE YEAR AND CONTEMPLATE THAT AS PART OF OUR, UM, DISCUSSION OF HOW, HOW WE'RE DOING AND HOW MUCH OF THAT IS INFLATION RELATED AND HOW MUCH IS IT DUE TO ACTIVITY ON THE ISLAND.

AND THAT THE VERY KEY POINTS THERE IS DEFINITELY AN INFLATION FACTOR IN THOSE NUMBERS.

AND DURING THOSE THREE MONTHS, AVERAGE INFLATION RATES NATIONWIDE WAS, WERE OVER 8%.

SO IF YOU WANTED TO DO A QUICK CALCULATION, YOU KNOW, YOU COULD DIVIDE THAT BY 1 0 8 AND COME UP WITH A REAL INCREASE MM-HMM.

VERSUS THE INFLATED INCREASE.

OKAY.

UM, SO YEAH, IT JUST EMPHASIZES THAT WE'VE GOT A LONG WAY TO GO.

UM, PROPERTY TAXES, UM, YOU CAN, THE POINT OF THIS SLIDE IS WE'RE ONLY, UH, ONE AND A HALF PERCENT COLLECTED.

IF YOU LOOK AT THE NATURAL DISASTER FUND, IT WON'T BE ZERO THIS YEAR BECAUSE THERE'S STILL SOME DELINQUENT TAX COLLECTIONS WHEN WE DID HAVE THAT FIVE MILLS FOR THE NATURAL DISASTER.

AND SO THERE'LL BE A LITTLE BIT THIS YEAR, BUT VERY LITTLE AND, UH, NO, NO NEW PROPERTY TAXES FOR THE NATURAL DISASTER FUND.

AND SO AS THAT FIVE MILLS WENT AWAY, THEN THAT WILL DWINDLE DOWN TO ZERO, BUT NOT QUITE ZERO THIS YEAR.

WHAT IS OUR NATURAL DISASTER FUND AT THIS POINT? AROUND NUMBERS? IT'S OVER $30 MILLION.

AND SO WE'LL, WE'LL GET YOU SOME MORE DETAILED INFORMATION NEXT TIME.

UM, GOOD, THANK YOU.

BUT, UM, PROPERTY TAXES, YOU CAN KIND OF JUST SEE A CHART.

UM, HERE'S WHEN THE PROPERTY TAXES ARE EXPECTED, THE LAST, OR HERE'S WHEN THEY HAVE HAPPENED THE LAST FOUR YEARS, REAL ESTATE TRANSFER FEE.

I THINK THIS IS A GOOD, UH, POINT OF CONVERSATION.

UH, 2023 IN THE BLUE, UM, NOT QUITE AS GOOD AS THE, UM, RECORD YEAR IN 2022.

UM, IT'S COMPARABLE TO THE 2021.

UM, AND IT'S BETTER THAN 2020.

SO YOU HAVE KIND OF A MIXED BAG HERE.

AND HOW DOES THAT LOOK YEAR TO DATE? UM, AND, AND I THINK IF YOU LOOK AT SEPTEMBER ON REAL ESTATE TRANSFER FEE, THIS MIGHT BE KIND OF A, A LITTLE BIT OF WHAT WE MIGHT SEE, UM, ECONOMICALLY ON THE ISLAND IS THAT WE HAD TWO EXCEPTIONAL YEARS IN 2021 AND 2022, AND IT MIGHT BE THE 2023 IS MORE NORMAL IF YOU JUST LOOK AT THE SEPTEMBER COLUMNS, UM, 2023, IF YOU DIDN'T LOOK AT 2022 AND 2021, IT WOULD LOOK REALLY IMPRESSIVE COMPARED TO 2020.

BUT, UM, WE HAD TWO EXCEPTIONAL YEARS AND IT SEEMS

[00:35:01]

LESS.

AND SO I, I THINK WE, WE MAY SEE MORE OF THAT, BUT I, I THINK THAT'S SOMETHING THAT WE SHOULD KEEP AN EYE ON, BUT IT, IT, YOU KNOW, ARE WE GOING TO HAVE A MORE NORMAL YEAR? THAT'S WHAT I THINK AT LEAST WE'RE, WE'RE LEADING TOWARD.

UM, WE HAVE THE BALANCE ON, UH, THE REAL ESTATE TRANSFER, UM, ACCOUNT.

JOHN, IF YOU DON'T HAVE IT, MAYBE IN THE NEXT REPORT, YOU THAT'D BE IN A NEXT REPORT.

OKAY.

YEAH, , I, I DON'T HAVE THAT ONE COMMITTED TO MEMORY, BUT IT'S, UM, YEAH, I, THERE HASN'T BEEN A LOT OF USES TOWARD IT, AND SO MOST OF THE COLLECTIONS ARE GOING TOWARD THE FUND BALANCE.

UH, JUST A LITTLE BIT OF A DIFFERENT MIX IF YOU WANTED TO SEE, UM, LAST YEAR AND THIS YEAR FOR BUSINESS LICENSE REVENUES, WE DID, UM, A SHIFT ON THE RATES TO COMPLY WITH THE, UM, ONE, UH, WITH THE MODEL ORDINANCE.

AND SO THAT CHANGED OUR SHIFT JUST A LITTLE BIT.

AND, UM, PART OF IT IS JUST THE CHANGING OF ECONOMY, AND YOU CAN LOOK AT 2022, THE REAL ESTATE WENT UP SIGNIFICANTLY.

AND, UM, AND, AND IT'S REFLECTED IN THOSE, UH, BUSINESS LICENSES.

IT'S STILL EARLY, UM, ON THE LOCAL SIDE.

AND YOU CAN SEE WE'RE DOING BETTER THAN THE LAST COUPLE OF YEARS LOCALLY ON THE LOCAL BUSINESS LICENSE COLLECTIONS.

BUT IF YOU LOOK AT THE STATE COLLECTIONS, YOU HAVE AN ANOMALY IN 2022, THE BLUE IN AUGUST IN 2021 IN SEPTEMBER.

AND SO YOU TAKE AWAY THOSE ANOMALIES AND IT'S STILL EARLY, AND WE WON'T KNOW MUCH UNTIL THE, TOWARD THE END OF THE YEAR.

AND SO, UM, THAT'S A PIECE, THIS IS THE FIRST FULL YEAR OF SINGLE PROPERTY, SHORT TERM RENTAL OWNERS PAYING A BUSINESS LICENSE.

THAT'S CORRECT, YES.

AND, AND SO THAT HELPS US LOCALLY.

IT DOES.

AND DOES THAT FALL UNDER THE ACCOMMODATIONS REAL ESTATE PERCENTAGE ON PAGE 17? YES.

UM, OKAY.

THIS, UH, THIS LAW'S GONNA MAKE A LOT MORE SENSE AND ALSO NUMBER 18, UH, WHEN WE GET INTO THE HIGHER COLLECTION MONTHS, OF COURSE.

MM-HMM.

RIGHT? YEAH.

YES.

OKAY.

UM, SO I'M STILL TRYING TO GET MY HEAD WRAPPED AROUND, YOU KNOW, WHAT THIS IS GOING TO LOOK LIKE.

UM, BUT I LIKE WHAT YOU'VE DONE SO FAR, UM, WITH, YOU KNOW, GIVING US A BREAKDOWN AS FAR AS THE DIFFERENT INDUSTRIES.

UM, UM, I'M A LITTLE INTERESTED IN WHAT ALL OTHER BUSINESSES IS BECAUSE IT ACCOUNTS FOR SUCH A BIG PART OF THE, THE PIE.

AND I WAS JUST CURIOUS, ARE THOSE PERCENTAGES MAINLY A LOT LOWER THAN WHAT YOU PROVIDED US DETAILING? WELL, WE CAN DELVE INTO THAT A LITTLE BIT MORE.

AND SO, UM, THAT'S, UM, YEAH, WE, WE JUST TRIED TO BE HOPEFUL CATEGORIES AND, AND SURE.

AND THAT'S ALL MOVE, HOW MANY, HOW MANY DIFFERENT BUSINESS CLASSIFICATIONS DO YOU HAVE? EIGHT.

AND, AND SO, UM, AND, AND IT'S NOT NECESSARILY, AND SO THAT'S A PIECE OF THE, UM, MODEL BUSINESS ORDINANCES THAT THEY MADE US CHANGE, UH, A NUMBER OF BUSINESSES FROM OUR EIGHT TO THEIR EIGHT, AND ACTUALLY WE HAD MORE THAN EIGHT, AND SO WE, OUR NUMBER WAS MORE THAN THAT DOWN TO THEIR EIGHT.

AND SO WE HAVE, UH, A DIFFERENT MIX OF DIFFERENT CLASSIFICATIONS.

SO MAYBE WHEN WE GET TO THE HIGHER COLLECTION MONTHS, JOHN, IF YOU COULD DETAIL ALL EIGHT OF THEM, THAT'D BE A LOT MORE CLEAR FOR US.

OKAY, GREAT.

THANK YOU.

YEAH, WE'LL, WE'LL TALK MORE ABOUT THAT.

UM, AND SO, YEAH, UH, THE STATE COLLECTIONS AND BUSINESS LICENSE, YOU CAN SEE THAT IT'S GONNA COME AT THE END OF THE YEAR, AND SO WE CAN PLAN AND HOPE, UM, BUT WE WON'T NOW.

UM, SPENDING, UM, IF YOU LOOK AT OUR BUDGET AT $48 MILLION, YOU CAN SEE THAT, UM, JULY, AUGUST AND SEPTEMBER, ALL UNDER $4 MILLION PER MONTH.

UM, BUT KNOW THAT, UM, JUNE IS WHEN WE CONVERT BACK TO FULL ACCRUAL.

AND SO JUNE WILL JUST, WITH THE TIMING OF IT, UH, SPENDING, THE TIMING OF HOW WE CALCULATE WILL BE A MORE EXPENSIVE MONTH.

BUT, UM, IT'S RIGHT IN LINE WITH OUR EXPECTATIONS.

UM, ALSO, I, I WOULD POINT TO ON THIS SLIDE, AUGUST, IF YOU LOOK AT AUGUST 20, 22, 20 21, YOU CAN SEE THAT SPENDING IS DOWN IN AUGUST.

AND I THINK, UM, WHAT WE CAN TALK ABOUT THAT IS REALLY KIND OF A HESITATION, UM, WITH COVID, HOW FAST, HOW MUCH ARE WE GONNA IMPLEMENT? AND, AND THERE WAS A VERY PURPOSEFUL PAUSE, AND YOU CAN SEE IT IN THE NUMBERS, UM, WHICH WE'RE LATER, UM, MORE IMPLEMENTED FULLY.

AND, AND SO I THINK YOU JUST KIND OF SEE HOW DID WE START THE YEAR? WE STARTED THE

[00:40:01]

YEAR WITH THE PAUSE JUST TO MAKE SURE THAT, UM, COVID, UM, OUR RESPONSE TO COVID WAS APPROPRIATE.

AND SO THAT'S A, A LITTLE BIT OF JUST CONSERVATISM, UM, BEFORE WE GOT TOO FAR INTO THE YEAR, THOSE GENERAL FUND EXPENDITURES ARE UP AT LEAST PARTIALLY BECAUSE OF THE C I P EXPENDITURES THAT WE'RE EXPERIENCING RIGHT NOW.

YES.

MM-HMM.

GENERAL FUND.

AND SO YEAR TO DATE, WE'RE ABOVE, UM, PREVIOUS YEARS, UM, AGAIN, WE'RE AT 48 MILLION BUDGET.

AND SO IF YOU DID THAT EVENLY, THEN UM, OUR SPENDING WOULD BE $12 MILLION, UH, FOR THREE MONTHS.

AND SO WE'RE UNDER THAT.

AND SO THIS IS, WE'RE ON TRACK.

WE'RE ON TRACK FOR WHERE WE, WHERE WE SHOULD BE AT THIS TIME OF THE BUDGET YEAR.

UM, HERE'S SOME NUMBERS.

YOU CAN SEE THERE'S KIND OF A DIFFERENT MIX.

WE'VE HAD SOME MOVEMENT OF PEOPLE.

AND SO THAT KIND OF, UM, AFFECTS OUR PERCENTAGES.

UM, AND, AND I, I EXPECT, AND IT HAS ALREADY, THIS MODERATED FROM LAST MONTH AND OCTOBER WILL MODERATE MORE THAN THIS.

AND SO I DON'T EXPECT THAT 9.8 TO BE, UM, THAT HIGH LATER.

MM-HMM.

, UH, HOW ARE WE DOING TO THE BUDGET? AND SO HERE'S OUR YEAR TO DATE SPENDING OF 10.5 MILLION COMPARED TO THE 48 6 BUDGET.

AND SO WE'RE 21% THROUGH 25% OF THE YEAR.

SO, UH, COMFORTABLY WHERE WE SHOULD BE LAST YEAR.

UM, OUR NUMBERS, UH, I THINK IT'S GOOD TO, TO TO KNOW, AND TO MR. CHAIRMAN'S POINT IS THAT LAST YEAR'S COLLECTIONS FOR THE GENERAL FUND WERE 47 MILLION.

WE BUDGETED FOR THE NEW YEAR, 48 MILLION.

AND SO THAT'S NOT EXPECTING, UM, A GRAND YEAR, BUT A GOOD YEAR.

OUR MONTHLY, THIS IS THE TIME OF YEAR WHEN WE SPEND OUT OF OUR RESERVES TEMPORARILY UNTIL OUR PROPERTY TAXES COME IN.

AND SO THIS IS ABOUT WHERE WE WOULD EXPECT TO BE, UH, YEAR TO DATE.

I THINK YOU CAN, IF YOU LOOK AT SEPTEMBER, IT ALSO SHOWS, UH, I THINK IT, IT MAY BE A TREND, IT'LL BE INTERESTING TO WATCH, BUT, UM, 2022 AND 2021 AS EXCEPTIONALLY GOOD.

AND THEN 2023 IS MORE NORMAL, LIKE THE PREVIOUS TWO YEARS.

AND SO I, I, THAT'S, THAT'S MY READ ON THIS IS THAT THIS YEAR IS MORE OF A NORMAL YEAR THAN THE LAST TWO, AND THIS CHART WOULD SHOW THAT AS ALSO, UM, THIS IS JUST A LINEAR VERSION OF THE SAME THING.

UM, AND, AND SO I, I THINK IT DOES HELP THOUGH TO, UM, JUST SHOW THE GROUPINGS AND THE DIRECTIONS.

WE USE A LITTLE BIT OF OUR, UM, FUND BALANCE AT THE START OF THE YEAR, AND THAT WILL TURN AROUND AS PROPERTY TAXES ARE COLLECTED.

UM, DEBT SERVICE 25% OF THE YEAR, AND WE'VE SPENT 22 AND A HALF PERCENT OF OUR BUDGET.

AND SO EVERYTHING'S ON TRACK.

WE HAVEN'T ISSUED ANY NEW DEBT.

WE DON'T PLAN TO ISSUE ANY NEW DEBT.

UM, AND, AND SO THIS ONE IS, UM, PRETTY STRAIGHTFORWARD, JOHN.

IT'D BE USEFUL TO PERIODICALLY, MAYBE ON A QUARTERLY BASIS, LET US KNOW HOW THAT, HOW THE, THE BALANCES OF THE BOND BONDING IS FROM TIME TO TIME.

WE HAVE A SERIES OF BONDS WE'RE GETTING DOWN TO, WE'RE PAYING THEM DOWN.

HAVING SOME REPORTING ON THAT WOULD BE USEFUL.

YEAH.

THAT, UH, THAT WOULD BE GOOD.

AND, UH, I THINK IT'S REALLY ENCOURAGING HOW MUCH, IF YOU LOOK AT THE MIX OF PRINCIPLE AND INTEREST, AND WE, SO MUCH OF OUR PAYMENTS OF PRINCIPLE AND I, AND IT'S VERY ENCOURAGING FOR THE TOWN.

SO, UM, WE'LL, WE'LL INCLUDE THAT IN FUTURE REPORTS.

UM, AND, AND YOU CAN SEE HERE, UM, THE PRINCIPAL PAID THE SCHEDULE IS $16.7 MILLION.

UM, ALL PRINCIPLE THIS YEAR.

AND THEN, WE'LL, WE'LL HAVE SOME STATISTICS ON THAT.

UM, STORM WATER STILL EARLY.

UM, STORM WATER REVENUE COLLECTIONS ARE MUCH LIKE THE PROPERTY TAX COLLECTION SCHEDULE.

AND SO, UM, THIS IS JUST A SMALL PERCENTAGE OF THE YEAR.

AND SO WE EXPECT THAT WE NEEDED TO DRAW FROM THE STORM WATER RESERVES TO START THE YEAR, AND THAT'LL TURN AROUND IN JANUARY.

UM, C I P WE'VE TALKED ABOUT THESE AND, AND AGAIN, I WOULD LEAD YOU BACK TO OUR WEBSITE.

THERE'S A LOT OF GOOD INFORMATION ABOUT THE INDIVIDUAL PROJECTS AND, UM, UPDATES ON THOSE PROJECTS.

AND SO BEACH FEE, UM, HERE'S A, HERE'S ANOTHER INTERESTING STORY.

AUGUST, 2023 WAS, UM, BETTER THAN THE LAST THREE YEARS.

SEPTEMBER NOT QUITE AS GOOD AS LAST

[00:45:01]

YEAR.

AND SO WE GOT A LITTLE BIT OF MIX, BUT BETTER THAN THE TWO PREVIOUS.

AND SO IF YOU LOOK AT YEAR TO DATE, BEACH FEE, WE'RE STILL BETTER THAN THE LAST THREE YEARS.

AND SO BETTER THAN OUR RECORD YEAR LAST YEAR, BUT JUST BARELY.

AND SO IT'LL BE INTERESTING.

OCTOBER, MANY OF OUR BUSINESSES REPORT QUARTERLY, AND SO, UH, OCTOBER WILL BE, UM, A, A KEY MONTH, BUT IT'S NOT AS AHEAD OF LAST YEAR AS IT WAS LAST MONTH.

UM, HOSPITALITY A LITTLE BIT MORE.

UM, YOU KNOW, AUGUST WE BEAT THE PREVIOUS THREE YEARS.

SEPTEMBER DIDN'T QUITE BEAT LAST YEAR.

AND SO YOU'RE, YOU'RE SEEING JUST A LITTLE BIT OF SOFTENING THERE.

UM, BUT IT'S STILL BETTER THAN LAST YEAR TO DATE.

AND SO YEAR TO DATE, THE BLUE IS STILL THE HIGHEST NUMBER.

WE HOPE THAT CONTINUES.

UM, WE'LL SEE.

UM, AND, AND THIS IS GOING BACK TO MR. CHAIRMAN'S COMMENTS, IS THAT WE HAD REALLY TWO EXCEPTIONAL REVENUE YEARS, 2021 AND 2022.

AND, UH, BY ANY MEASURE, UH, THOSE ARE EXCEPTIONAL YEARS.

AND THEN IT, WE'RE JUST GONNA HAVE TO KEEP A CLOSE EYE ON 2023.

AND SO, YES, A SHOUT OUT TO OUR REVENUE SERVICES PEOPLE WHO WORK VERY CLOSELY WITH OUR BUSINESSES AND, UH, AND THE HARD WORK OF COLLECTIONS.

HERE'S OUR BUDGET.

THIS IS, YOU'VE SEEN THIS.

AND, AND SO, UM, YEAH, 2023 REVENUE WE'RE, I WOULD CONSIDER IT GOOD.

AND OPERATIONS ARE WITHIN BUDGET, CAPITAL PLAN IS MOVING FORWARD.

WE'RE REDUCING DEBT.

WE'LL GET YOU MORE STATISTICS ON THAT.

AND, UM, WE'RE WHERE WE WOULD EXPECT TO BE.

UM, LOOKING AHEAD, UM, WE'RE WORKING WITH OUR AUDITORS.

WE SHOULD HAVE OUR AUDIT REPORT HERE VERY SOON.

AND SO WE'LL HAVE THE PRINTED VERSION, UM, FOR THE OFFICIAL RECORD.

AND CERTAINLY THAT MIGHT BE, UH, AN OPPORTUNITY FOR CONVERSATIONS AS WELL, UM, WHEN WE START TALKING ABOUT THAT.

CUZ IT'S, IT'S, IT'LL GIVE THE OFFICIAL RECORD OF OUR FUND BALANCES IN EACH FUND.

AND, UM, I THINK GOOD TALKING POINTS TOO.

UH, DO WE HAVE ANY COMMENTS OR QUESTIONS? JOHN? I WOULD ASK THE SAME QUESTION I DO EVERY MONTH.

HAVE YOU NOTICED ANY UNFAVORABLE TRENDS? WELL, UH, IF WE'RE COMPARING TO LAST YEAR, THEN I SEE OUR REVENUE IS JUST TRYING A LITTLE BIT SOFTENING THERE.

BUT I WOULDN'T SAY IT IN IT'S A BAD TREND.

IT'S JUST NOT AS GREAT AS LAST YEAR WHEN, WHEN PLOTTED OVER A FIVE YEAR TREND.

IT'S CONSIST WITH TESTS.

HOW ABOUT, UH, UNFAVORABLE VARIANCE? THE BUDGET? NO, I I, WE'RE, WE'RE ON TRACK.

WE DON'T ANTICIPATE, UM, ANY BUDGETARY ISSUES FOR, UM, COUNCIL TO CONSIDER.

UM, AND SO, AND ONE THING THAT I'LL PUT IN FUTURE, UM, WE'RE WORKING REALLY HARD ON COUPLE OF THINGS.

ONE, INVESTING FULLY AND TAKING ADVANTAGE OF THIS CHANGE IN INTEREST RATES.

AND SO WE'LL HAVE, UM, ACTUAL SOME INTEREST EARNINGS.

UM, THAT'LL BE A REALLY GOOD STORY FROM THIS FISCAL YEAR.

OKAY.

COMMENTS OF THE COMMITTEE? I, I THINK JOHN, THE, UM, THE QUESTION I THINK THAT ALEX WAS, UM, PROBING AT IS, IS AN IMPORTANT ONE.

AND IF WE ASK OURSELVES THE QUESTION ARE, UM, PRICE INCREASES, MASKING VOLUME DECREASES.

MM-HMM.

, I THINK THAT'S AN IMPORTANT QUESTION.

UH, THAT'S A, A VERY REAL QUESTION AND, AND I THINK WE'LL, WE'LL DELVE INTO THAT FOR, UM, FUTURE MEETINGS, BUT IT, IT, OUR, OUR EARLY LOOK SEEMS TO INDICATE SO, CAUSE WITH, WITH PRICES GOING UP, THEN THE APPETITE FOR HEALTH HEAD MAY START TO DECREASE FROM A VOLUME STANDPOINT, RIGHT? AND WE COULD BE DILUTING OURSELVES FROM A, FROM A FINANCIAL STANDPOINT.

AND YOU CAN SEE THAT CHANGE IN INTEREST RATES OR RAISING INTEREST RATES HAS A, HAS A IMPACT ON A REAL ESTATE TRANSFER FEE TOO.

MM-HMM.

, UM, YOU'RE SEEING THAT AS WELL.

GOOD REPORT.

THANK YOU.

OKAY, JOHN, THANKS FOR, UH, BRINGING US TO THIS IN, IN ADVANCE.

UM, WE UNDERSTAND THE TOLERANCE LEVEL.

I THINK IF YOU JUST LEAD WITH THAT, WE'LL ACCEPT IT.

OKAY.

UM, THE, UH, THE ONLY THING THAT'S ON, ON SOME OF THE SLIDES, THE WATERMARK IS ACTUALLY CUTTING OFF THE WORDING.

I NOTICED THAT.

AND, AND WE'LL, WE'LL RE WE'LL RESEND THAT.

UM, AND SO I, I,

[00:50:01]

I SAW THAT IN, IN THE MATERIALS AND I'LL, I'LL, I APOLOGIZE FOR THAT AND WE'LL, WE'LL MAKE SURE THAT YOU GET CLEAN COPIES.

OTHERWISE, GOOD REPORT.

THANK YOU FOR THE DETAIL, JOHN.

I APPRECIATE THE DETAILED REPORT AND OF YOUR KNOWLEDGEABLE ANSWERS HERE.

I FEEL VERY COMFORTABLE WITH THIS.

THIS WAS A GOOD REPORT.

UH, JUST KEEP UP THE GOOD WORK.

THANK YOU.

THANK YOU.

JOHN.

I THINK WE THANK, THANK YOU ALSO FOR GETTING THIS REPORT TO US IN ADVANCE.

AND, AND, AND THERE'S A, THERE'S A LITTLE BIT OF, OF, UH, THE EARLIER I GET IT TO YOU THEN, UM, THAT IT'S A LITTLE BIT LESS TIMELY, BUT WE'LL GET IT TO YOU SO THAT YOU CAN READ IT AND HAVE, UM, SOME TIME TO DIGEST SOME OF THE MATERIALS.

YES.

JOHN, WHEN YOU CONSIDER WHAT THIS ECONOMY HAS BEEN THROUGH OVER THE PAST 10 OR 12 YEARS, WE'VE BEEN THROUGH A GREAT RECESSION.

WE'VE BEEN THROUGH BACK TO, BACK TO BACK HURRICANES.

UH, WE ARE NOW HOPEFULLY AT THE TAIL END OF A TWO AND A HALF YEAR PANDEMIC.

UH, AND NOW WE'RE INTRODUCED TO, UH, INCREASING INFLATION, RISING INTEREST RATES AND A DECREASED RATE OF GROWTH.

SO I THINK, UH, YOU'RE EXPERIENCING ALL THE BLACK SWANS THAT YOU POSSIBLY CAN, UH, AS A CHIEF FINANCIAL OFFICER FOR A HUNDRED MILLION DOLLAR, UH, ORGANIZATION.

SO TO THE EXTENT THAT YOU CAN BUDGET ACCURATELY AND STAY ON THAT BUDGET, TO THE EXTENT THAT YOU CAN TAKE THE ANOMALIES OUT OF THE REVENUE SIDE AND THE EXPENSE SIDE IN YOUR FORECASTING, UH, I THINK THIS WILL SERVE US WELL ONGOING.

SO GOOD JOB AND, AND, UH, KEEP AN EYE ON THE TRENDS.

THANK YOU, MR. CHAIRMAN.

OKAY.

ANY COMMENT FROM THE PUBLIC? WHAT WE JUST MET? WITNESS IS ANOTHER FRAUDULENT PRESENTATION, JUST LIKE THE CHAMBER.

IT'S MORE REASON TO DO A FORENSIC AUDIT WITH JOHN TROYER OVERSEEING A HUNDRED MILLION.

AND I'LL TELL YOU WHY, BECAUSE NOBODY IN THIS ROOM HAS A CLUE WHAT WE JUST SAW.

NOBODY'S SEEN THE ACCOUNTING.

NOBODY'S A CPA.

NOBODY HAS FORENSIC AUDIT BACKGROUND.

MR. LENNOX, YOU'RE JUST SO FULL OF IT.

YOU, YOU JUST, YOU JUST, IT'S UNBELIEVABLE.

REAGAN PRINCIPLE TRUST, BUT VERIFY, SHOW US THE NUMBERS.

NOTHING IS GONNA CHANGE IN THIS TOWN UNTIL WE HAVE A FORENSIC AUDIT AND AN FBI INVESTIGATION.

THAT'S HOW CRIMINAL AND HOW SERIOUS IT IS.

NEVER IN THE HISTORY OF THIS COUNTRY HAS A TOWN, A COUNTY, A CHAMBER, A SCHOOL DISTRICT EVER BEEN FORENSICALLY AUDITED, FORCED TO A FORENSIC AUDIT WHERE WASTE AND CRIMES WAS NOT DISCOVERED AND PRISON MOST OF THE TIME.

IT, IT'S JUST, IT'S JUST OUTRAGEOUS THAT YOU, PEOPLE KEEP ON BELIEVING ALL THIS STUFF AND LET THIS GUY RUN THE NUMBERS AND LET JOSH GRUBER ETHICS VIOLATOR.

MARK ORLANDO CAUGHT AT ILLEGALLY USING TAX MONIES WHILE HE WAS MANAGER IN BLUFFTON, JUST BATON PASSED TO TAKE STEVE RILEY'S PLACE.

SO THE CRIMES AND THE CRIMINAL ACTIVITY CAN CONTINUE IT.

IT'S, IT'S, IT'S, IT'S INSANE.

LET ME TELL YOU SOMETHING.

A FULL POWER TOWN MAN, A TOWN MANAGER AND A WEAK PART-TIME MAYOR DOESN'T WORK NOTHING.

PART-TIME WORKS.

IT'S GOTTA BE FULL-TIME.

YOU GOTTA BE A MAYOR, CEO, YOU'VE GOTTA STOP THE TOWN EMPLOYEES FROM ETHICS VIOLATIONS, YOU GOTTA FIRE 'EM.

BRING IN NEW HONEST PEOPLE, YOU GOTTA CLEAN HOUSE.

IT'S THE ONLY WAY WE CANNOT GO ON ANY LONGER.

I'VE BEEN WATCHING THIS FOR 40, HOWEVER, THE TOWN WAS, WAS FIRST STARTED AND IT'S JUST GOTTEN WORSE.

TOWN STEVE RILEY COULD NOT HAVE BEEN ANY MORE DISHONEST.

AND IT'S CONTINUING AND WE'VE GOTTA STOP IT.

SO WE NEED A FORENSIC AUDIT AND WE NEED A, WE NEED IT NOW.

THESE INTERNAL HIRED COOKIE CUTTER AUDITS TO HIDE NUMBERS AND ONLY SHOW US WHAT THEY WANT US TO SEE.

NO RECEIPTS, NO INVOICES, NO TRANSPARENCY, NO ACCOUNTABILITY, NO PERFORMANCE METRICS.

WE'RE JUST TOTALLY OUTTA CONTROL AND ALL OF YOU, JUST PART-TIME.

ALLEN PERRY, PERFECT EXAMPLE.

NO, I'M GONNA KEEP MY FULL-TIME JOB.

I'M GONNA LET, UH, JUST LET YOU KNOW, LET THE TOWN EMPLOYEES KEEP ON RUNNING THE SHOW.

UH, YOU KNOW, HE DOESN'T HAVE A CLUE.

HE DOESN'T CARE.

HE JUST WANTS TO BE A FIGUREHEAD.

WE NEED A FULLTIME MAYOR CEO.

PAY HIM $250,000 A YEAR VERSUS PAYING BILL MILES TO THE CHAMBER.

$500,000 A YEAR WITH THE USE OF OUR TAX MONIES.

DOES THAT NOT MAKE MORE SENSE TO Y'ALL? AND ALEX, YOU BETTER LOOK AT KIM LICHENS AND WHAT SHE'S DONE.

YOU GOT A LOT OF SOUL SEARCHING TO DO.

IS THERE ANY OTHER COMMENT TO BE MADE TO THIS COMMITTEE? MR. AMES? IT'S AMES.

[00:55:09]

THANK YOU.

IT'S MY UNDERSTANDING THAT THIS IS THE LAST FNA MEETING FOR THE YEAR.

IS THAT CORRECT? MM-HMM.

, I THINK IT'S APPROPRIATE THEN FOR ME TO APPLAUD, APPLAUD YOU AS A A COUNCIL COMMITTEE.

UM, OVER THE LAST SIX YEARS I'VE SEEN F AND A IN MANY DIFFERENT, UH, CONFIGURATIONS.

BUT I THINK WITH JOHN TROY'S ASSISTANTS BUILD YOUR, UH, INVOLVEMENT, TOM, YOUR LEADERSHIP.

WE WILL SORELY MISS THIS FNA COMMITTEE.

I THINK THE LEVEL OF INQUIRY, THE PROBING COMMENTS BY ALEX AND GLENN AS WELL HAVE MADE A SIGNIFICANT DIFFERENCE IN MY CONFIDENCE THAT THIS SHIP IS BEING RUN RESPONSIBLY.

BUT I'D ALSO LIKE TO GIVE MR. CHAIRMAN TOM SOME ADDITIONAL ADMIRATION.

PRAISE FROM MY STANDPOINT BECAUSE TEMPERAMENTALLY, YOU ARE A VERY DIFFERENT PERSON THAN I AM FORTUNATELY FOR THE TOWN FINANCES .

I THINK THAT YOUR WILLINGNESS TO DELVE INTO THE DETAILS OF THE FINANCES HAS CERTAINLY EDUCATED ME, BUT IT'S ALSO GIVEN ME A HIGH DEGREE OF CONFIDENCE THAT YOUR PROBING QUESTIONS ARE ON, ON THE MARK.

SO FOR MANY REASONS, I THINK THE TOWN OF HILTON HEAD ISLAND WILL MISS YOU.

AND I THINK I SPEAK FOR THE REST OF COUNCIL.

WE CERTAINLY APPRECIATE YOUR EFFORTS OVER THE LAST SEVERAL YEARS TO LEAD FNA.

THANK YOU VERY MUCH.

THANK YOU.

THANK YOU MR. LENN.

MR. LENN.

DAVID, MAY I INTERRUPT? JUST ONE SECOND.

WE'D ALSO LIKE TO PIGGYBACK ON THAT AND THANK YOU FOR YOUR LEADERSHIP AND GUIDANCE OVER THE LAST SEVERAL YEARS AS BOTH A TOWN COUNCIL MEMBER AND AS THE CHAIRMAN FOR THE FINANCIAL FINANCE COMMITTEE.

YOUR LEADERSHIP HAS REALLY TAUGHT US ALL A LOT AND WE REALLY APPRECIATE EVERYTHING YOU'VE DONE FOR US.

YOU'RE VERY WELCOME.

THANK YOU.

AND THANK YOU FOR THE SUPPORT, JOSH MAC, JOHN, AND, AND, UH, KRISTA.

UH, IT CERTAINLY WAS A TEAM EFFORT AND ONE I ENJOYED BEING A PART OF ANY OTHER BIT BUSINESS THAT COME BEFORE THE COMMITTEE MOVE TO ADJOURN.

SECOND, WE STAND ADJOURNED.