[1. Call to Order ]
[00:00:07]
[2. FOIA Compliance:]
TODAY'S FINANCE ADMINISTRATIVE COMMITTEE MEETING ARE WE IN COMPLIANCE WITH FOR YOU? YES. THERE ARE. THANK YOU.AT A TIMELY CALL THE ROLL PLEASE. YES, SIR MR. STANFORD, YOU'RE MR. ALPERT OR MR. BROWN? YEAH. I'LL ACCOUNT FOR SIR THANK YOU.
[3. Adoption of the Agenda]
MR. AMES IS EXCUSED. NEXT WE'LL HAVE THE ADOPTION OF TODAY'S AGENDA.[4. Approval of the Minutes]
THE ADOPTION IS WRITTEN. THANK YOU ALL IN FAVOR APPROVAL OF OUR MINUTES FROM OUR REGULAR MEETING OF MAY 16TH 2023 NEW ADOPTION IS WRITTEN BACK ALL IN FAVOR NEXT WE HAVE OPINIONS BY[5. Appearance by Citizens:]
CITIZENS THERE'S ANYONE THAT SIGNED UP TO SPEAK TODAY YES SIR WE HAVE FIRST MR. SKIP HOAGLAND SKIP HOAGLAND WITH MATT HARMER ON YOUR WEBSITE IT SAYS AGAIN THE FINANCE ADMINISTRATION COMMITTEE REVIEWS AND ANALYZES THE TOWN'S BUDGETS AND FINANCIAL STATEMENTS INCLUDING BALANCE SHEET MANAGEMENT, VENDOR CONTRACTS, ACCOMMODATION TAX FUNDS AND THE TOWN'S DESIGNATED MARKETING ORGANIZATION. I'D LIKE TO SEE SOME OF THIS NONE. THIS READING IS YOUR FAULT, ALEX.COMMITTEE MONITORS THE PERFORMANCE OF THE TOWN'S DESIGNATED MARKETING ORGANIZATION WHAT HAVE YOU MONITORED? WHY DO YOU KEEP HANDING MILLIONS OF BILL MILES WHO REFUSES TO SHOW HIS AND OPERATES HIS DEMO IN COMPLETE VIOLATION OF MANY AND FEDERAL LAWS? WHY ARE ALL EIGHT TAX COMMITTEE APPOINTED AND ALL TIED TO THE CHAMBER? NOT INDEPENDENT THEY'VE NEVER SEEN ACCOUNTING AND THEY KEEP VOTING TO RECOMMEND FUNDING TO THIS CHAMBER.
YOU DETERMINE THE MANNER OF METHOD WHICH THE TOWN WILL CONDUCT AN ANNUAL PERFORMANCE REVIEW OF THE TOWN MANAGER WILL ORLANDO TROYER AND COLTRANE AGREE TO A FORENSIC AUDIT? IF NOT, WHY NOT? HOW ELSE CAN YOU DETERMINE IF EVERYTHING IS BEING RUN PROPERLY? DOES EXCESSIVE LEGAL FEES NOT CONCERN YOU AND A LEGALLY OPERATED DEMO CHAMBER WITH MILLIONS UNACCOUNTED FOR NOT BOTHER YOU? YOU CONSIDER THIS GOLD STANDARD TOWN MANAGEMENT PERFORMANCE BUILD TO MAINTAIN RELATIONSHIPS WITH LOCAL STATE, COUNTY AND FEDERAL GOVERNMENT DEPARTMENTS. HAVE YOU TALKED WITH ANY ABOUT THE MISSING MILLIONS OF EIGHT TAX AND HOSPITALITY FUNDS? HAVE YOU CALLED THE AG, THE TREASURY, THE FBI, THE IRS TO SEEK HELP? YOU NEED TO RECEIVE PERIODIC REPORTS FROM THE REPRESENTATIVES OF COUNTY, THE LEGISLATURE LEGISLATURE DELEGATION. WHERE ARE THE COPIES OF REPORTS AND WHAT DO OUR STATE REPS SAY ABOUT ALL ILLEGAL CHAMBER BEHAVIOR MISSING OF THESE MILLIONS OF DOLLARS WORK WITH REGIONAL GOVERNMENT BODY GOVERNMENTAL BODIES SUCH AS THE COUNTY ECONOMIC DEVELOPMENT CORPORATION, THE SOUTHERN LOWCOUNTRY BOARD AND LOWCOUNTRY AREA TRAFFIC COMMITTEE.
WHAT BEEN ACCOMPLISHED WITH EACH OF THESE AND CAN YOU FURNISH THESE REPORTS? I'M PARTICULARLY INTERESTED IN A TRAFFIC STUDY SATURDAY. THIS LAST SATURDAY IT TOOK ME 2 HOURS TO GET FROM I-95 TO WINDMILL HARBOR AND THEN I COULD BARELY GET INTO WINDMILL HARBOR. AS YOU KNOW, THERE'S NO LIGHT THERE.
ALEX WE HAVE MANY TOWN EMPLOYEES AND CPAS. THE CPAS WHERE I REFER TO AGAIN ARE NOT CERTIFIED PUBLIC ACCOUNTANTS. THESE EMPLOYEES ARE WHAT I CALL CAN'T PRODUCE ANYTHING. I WILL BE BIDDING THIS YEAR TO BE ONE OF TWO OF THE NEW DEMOS TO REPLACE THE ILLEGALLY OPERATED DEMO CHAMBER WE CURRENTLY HAVE IN THIS POSSESSION. I UNDERSTAND THAT THE OTHER AD AGENCY TO MEDIA IS ALSO BIDDING FOR THIS CONTRACT SO I'M GIVING YOU ALL KIND OF FAIR WARNING TO BE PREPARED FOR BECAUSE THE PRESENTATIONS ARE GOING TO BE LENGTHY, THEY'RE GOING TO BE DETAILED AND THEY'RE GOING TO SPELL OUT EVERY VIOLATION AND EVERY WAY YOU GOT TO DO IT LEGALLY.
THANK YOU AND WE'LL KNOW THEM. YES, SIR. WE HAVE MS..
LYNN GREELEY. I'M HERE. I'VE SUBMITTED A PLAY I'M JUST STATING THIS FOR THE RECORD AND I THANK YOU ALEX BUT I'VE SUBMITTED A PIECE AWAY WHICH GIVE ME THE RIGHT TO SPEAK MISS GREELEY UNTIL 2024. I'M NOT TRYING TO TAKE ADVANTAGE OF THIS. I'M JUST DOING IT BECAUSE SHE CAN'T BE HERE AND SHE WANTS ME AND SHE WILL FREE MAKE HER SPEECH. SO THIS WILL HELP YOU AND WHAT'S COMING? WHAT? WELL, SHE SHE'S IN FEAR A FEAR OF SPEAKING LITERALLY. OKAY, SO SO LOOK UP GOOGLE GOOGLE SOUTH CAROLINA ACCOMMODATION TAX AND HOSPITALITY TAX LAWS ACCORDING TO TAX LAW BOTH THE HIGHER DEMOTE AND THE TOWN OF HILTON HEAD ARE BREAKING MANY SOUTH CAROLINA AND FEDERAL LAWS.
[00:05:02]
THAT'S A FACT. 30% OF EIGHT TAX FUNDS MUST BE USED ONLY FOR A PROMOTION OF TOURISM TO DEVELOP AND INCREASE TOURIST ATTENDANCE. WELL, THEY HIRED DEMO.YOU CANNOT THEY CANNOT SELL ADVERTISING FOR PRIVATE PROFIT OR OWNED THE WEBSITE HILTON HEAD ISLAND DOT ORG VERSUS THE TOWN OWNERSHIP WHAT HAPPENS TO THIS TAX WEBSITE WHEN A NEW DEMO WAS HIRED THIS YEAR? WHY HAS POINT 5 MILLION TAKEN TO CANADA DEVELOP A WEBSITE VERSUS THIS IS EXTREME ABUSE TO LOCAL COMPANIES AND EVEN THE CHAMBER THE MANAGING DIRECTORS AND PROMOTION FUNDS IT'S A PALATAL YOUR COUNTY SHOULD SELECT ONE OR MORE ORGANIZATIONS SUCH AS THE CHAMBER VISITOR CONVENTION BUREAU REGIONAL COMMISSION WHICH HAS AN EXISTING ONGOING TOURIST PROMOTION PROGRAM. THIS IS ILLEGAL TO FUND THE NONPROFIT CHAMBER TO RUN ANY KIND BUSINESS UNDER IOWA'S 501 DESK SIX NONPROFIT TAX CODES AND IT NEEDS TO BE FIXED. THIS MUST BE HIRED AD AGENCY, A LOCAL TOURIST MEDIA OR EVEN THE LOCAL NEWSPAPER HOWEVER SETTING UP A SOUTH CAROLINA ARM'S LENGTH NON-PRO OUTFIT IS EASY BUT IT'S NOT NEEDED NOR IS IT LEGAL. THE MUNICIPALITY OR COUNTY SHOULD DISTRIBUTE THE TOURISM PROMOTION FUNDS TO ONE OR MORE ORGANIZATIONS ELECTED OR CREATED TO RECEIVE THEM AGAIN. THE TOWN COULD RUN THE DEMO IN-HOUSE JUST HIRE AN AD AGENCY TO MANAGE THESE FUNDS. THAT'S WHAT YOU SHOULD DO AND WHAT OTHERS ARE DOING BEFORE.
THE BEGINNING OF EACH FISCAL YEAR ANY ORGANIZATION RECEIVING RECEIVING EIGHT TAX FUNDS FROM MONIES OF A MR. CITY OR COUNTY SHOULD SUBMIT FOR APPROVAL A BUDGET OF PLANNED EXPENSES AT THE END OF EACH FISCAL YEAR AN ORGANIZATION RECEIVING SHALL RENDER AN ACCOUNTING OF THE EXPENDITURE YOU MISS A PENALTY OR THE COUNTY WHICH DISTRICT TO AND THEN COMPLY TO AN AID TAX FOR YOU BY CITIZEN WE'VE NEVER CEIVED AN ACCOUNTING FROM BILL MILES COUNCIL IS A TAX VIOLATION AND WORSE BILL MILES YOU OUGHT TO GO THE OPPOSITE OF HEAVEN.
HE'S NOT GOING TO GIVE IT TO YOU. EIGHT TAX FUNDS MUST BE USED TO PLEDGE AS IN NOT BE USED TO PLEDGE A SECURITY FOR BONDS OR RETIRING BONDS MANY QUESTIONS MILLIONS OF EIGHT TAX OR EXCUSE ME MANY QUESTIONS ARE MILLIONS OF HOSPITALITY TAX FUNDS USED FOR BONDS THAT HAVE DISAPPEARED UNACCOUNTED FOR AND THIS INVOLVES A BIR FORMER LAW FIRM ALSO BILL MILES AND THE CHAMBER LAWYERS AND THE BIR FOREMAN IS THE ONLY LAW FIRM THAT SITS ON THE CHAMBER BOARD. YOU NEED TO CALL THE FBI YOU GUYS NEED HELP YOU REALLY NEED SERIOUSLY YOU NEED TO GET HELP AGAIN MYSELF AND ASSUME OTHERS WILL BE BIDDING FOR THIS DEMO JOB THIS YEAR. THANK YOU. BOWMAN.
ANYONE ELSE? NO, SIR. THAT CONCLUDES APPEARANCE CITIZENS. SO CAN WE WELCOME COUNCILWOMAN BRYSON TO WORK WITH THE COUNCIL ON THE BACK OF RESPECTING LAW. WHAT A WELCOME TO JOIN US ON THE DAY OF BEING THAT YOU ARE THE ULTIMATE IN THIS COMMITTEE AND THE TEAM'S EFFORTS TO OBTAIN THESE NEW BUSINESS
[6. New Business]
OF THE DISCUSSION OF MUNICIPAL INSTALLMENT PURCHASE FEDERAL ON BEHALF OF FINANCE DIRECTOR JOHN TROY PRESENT I BELIEVE WE HAVE SIGNIFICANT MORE TO ASSIST AS WELL LET YOU INTRODUCE THEM AS YOU SEE FIT. SO THANK YOU MR. CHAIRMAN. YES.TODAY WE HAVE A PRELIMINARY DISCUSSION SO FEEL FREE TO STOP WILL ANSWER QUESTIONS ALONG THE WAY. WE ARE JUST HERE TO SHARE SOME INFORMATION AND HOPEFULLY PROVIDE A FRAMEWORK FOR A DISCUSSION AND LET MANY HAVE A DISCUSSION ABOUT THIS.
WE SHOULD HAVE FRANCHISER UP BOND COUNCIL ON ONLINE CHEESE AVAILABLE FOR QUESTIONS AND SHALL HAVE A FEW COMMENTS LATER AND THEN WE HAVE ALSO WITH US BRANT ROBERTSON OUR FINANCIAL ADVISOR AND THEY CAN TALK A LITTLE BIT LATER ABOUT THEIR ROLES HISTORICALLY FOR THE TOWN AND SOME OF THE SERVICES THAT THEY HAVE PROVIDED IN THE PAST .
COUPLE OF HIGHLIGHTS FROM THE BUDGET I THINK IT'S IMPORTANT LAST THAT MIKE I'LL TRY TO SPEAK CLOSER MR.. OKAY DEBT WE'VE BEEN IN THE LAST FOUR YEARS 1560 MILLION IN PRINCIPAL EACH YEAR THIS PAST YEAR DID PAY OFF OUR HURRICANE MATTHEW BONDS AND THAT WAS A AN OPPORTUNITY I THINK TO TED FOR THE TOWN KIND FROM LOOKING BACKWARD AND RECOVERY FROM MATTHEW TO LOOKING FORWARD AND THIS IS A GOOD MOMENT IN TIME TO TAKE AN ASSESSMENT AND TAKE
[00:10:08]
AN ASSESSMENT OF WHAT OUR FUTURE MIGHT BE. AND SO WE HAVE INCREASED OUR FINANCIAL WE DECREASED DEBT AND INCREASED ASSESSED VALUES SINCE THEN WE ARE ON TAP OUR CAPITAL PLAN LAST COUPLE OF YEARS AS PLANNED FOR A LEASE FOR FIRE TRUCKS WITH OUR SUPPLY CHAIN OUR TRUCKS HAVEN'T BEEN ABLE TO DELIVER THAT. WE HAVE SAID THAT WE WILL ISSUE A LEASE IN ORDER TO PAY FOR THOSE FIRE TRUCKS WHEN THEY ARE OVER AND SO THAT IS ANOTHER FORM OF DEBT AND THAT'S JUST WHAT THE CAPITAL PLAN HAS CALLED FOR.SO A LOT OF OUR BUDGET DEBT SERVICE FUND AND YOU'VE NOTICED ONE THING THAT I THINK THAT'S REALLY INTERESTING THE PROPERTY TAXES FOR OUR GEO WHERE OUR TERM OBLIGATION BONDS AND THE TRANSFER IN PAYING FOR THE SPECIFIC SPECIAL REVENUE BONDS SO YOU CAN SEE THE BEACH PRESERVATION FEES PAY FOR THE BEACH BONDS THE HOSPITALITY FEES PAY FOR THE HOSPITALITY TAX BONDS THE TAX INCREMENT FINANCING THOSE REVENUES PAYING FOR THE TIFF BONDS AND THE REAL ESTATE TRANSFER FEE PAYS FOR REAL TRANSFER BONDS AND SO IT'S GOOD DISTINCTION.
IT'S GOOD IT SHOWS A LITTLE BIT OF THE HISTORY OF WHAT HAS HAPPENED.
YOU CAN SEE THE NATURAL DISASTERS FUND DID PAY FOR THE NATURAL DISASTER RESPONSE OR THE HURRICANE MATTHEW BONDS AND NOW THEY'RE PAID OFF AND YOU CAN SEE THAT THERE.
SO I THINK IT'S SAYS A LOT IT SPEAKS A LOT ABOUT THE TOWN TO BE ABLE TO HAVE SUCH A DIVERSITY IN THE METHODS PAYMENT DIFFERENT DIVERSITY IN BONDS AND SO THEY ALL HAVE THEIR DIFFERENT PURPOSES ON WHERE WE SEE NO LONGER HAVING TO PAY THE BOND PREMIUM PRINCIPAL AND FOR NATIONAL DISASTER ARE FUNDS THAT HAVE GONE IN IN THE PAST STILL MOVING FORWARD TO INCREASE THE NATIONAL TRUST NATURAL DISASTER FUND? YES, WE ARE STILL AT ACTUALLY IN JUST A COUPLE OF WEEKS AGO WE STILL ARE PURSUING AND STILL COLLECTING MONEY FROM FEMA FOR HURRICANE MATTHEW. SO IT WASN'T A HUGE AMOUNT OF MONEY BUT IT WAS A LITTLE BIT AND WE ARE STILL THANK YOU, HEIDI IN MY OFFICE WHO CONTINUES TO PURSUE THAT AND HAS BEEN SUCCESSFUL IN DOING THAT ALSO NATURAL DISASTER FUNDS GETS CREDIT FOR INTEREST IT EARNS IT THAT HELPS ACCUMULATE THE BALANCES AS WELL. YES BUT THE BUDGET THAT WE HAVE APPROVED INCLUDES CONTINUED FUNDING OF THE NATURAL DISASTER FUND. WELL IT PRESERVES AND SO IT'S IT'S THERE SO IT WAS ADDITIONS WERE REIMBURSEMENTS FROM FEMA REIMBURSEMENTS FROM STATE INTEREST EARNINGS AND THE FIVE MILLS SO THE FIVE MILLS HAS EXPIRED THAT'S NOT IN AND THEY'RE STILL EARNING INTEREST AND WE STILL ARE COLLECTING FROM FEMA AND THE STATE ALTHOUGH THOSE NUMBERS HAVE DROPPED TO WHAT THEY WERE IN THE PAST.
MY QUESTION HAS TO DO WE CONTINUE TO INCREASE ALLOCATIONS TO THE NATIONAL DISASTER FUND BECAUSE WE KNOW WE'VE GOT INFLATION AND THE EXPENSES ARE GOING UP.
SO I JUST NEED TO COMFORT THAT THAT IS THERE AND IS THERE. YES.
THANK YOU. SO FUNDS IS THERE BUT YOU'RE NOT FROM CITY FUNDS ANY ADDITIONAL AMOUNTS AT THIS POINT, IS THAT CORRECT OTHER THAN JUST WE ARE THE INTEREST PAYMENTS AND COLLECTIONS FROM FEMA AND SO ON JUST THOSE BUT NO FURTHER BUDGET CAN'T? THAT'S CORRECT. THANK YOU, JOHN. I THINK IT'S IMPORTANT I THINK TO BETTER UNDERSTAND SITUATION I GET THE QUESTIONS THAT ARE COMING FROM MY COLLEAGUES HERE . WE DID ADOPT A POLICY THAT INCREASED OUR CONTRIBUTION TO GENERAL FUND TO CREATE CAPACITY IN CASE OF A NATURAL DISASTER THERE, CORRECT? THAT IS CORRECT. AND SO YES, THAT WAS A POLICY DECISION OF COUNCIL.
SO DON'T COUNCIL RAISED THE RESERVE REQUIREMENTS OR RESERVE POLICY FOR THE GENERAL FUND TO HELP? SO I THINK THAT'S I APOLOGIZE TO COUNCILMAN STAND FOR FACT OKAY. I'M THINKING NATURAL FUND BUT REALLY WHAT YOU'RE TALKING ABOUT IS THE GENERAL FUND WITH A RESERVE POLICY THAT'S AN INCREASE AND YES WE NEED TO HAVE RESERVES TO INCREASE FOR NATURAL DISASTER EXPOSURE SO BECAUSE THE POLICY IS A PERCENTAGE BASED AND SO THAT COUNCIL RAISED THE PERCENTAGE RESERVE IMPAIRMENTS AS THE BUDGET INCREASES AND THE RESERVES INCREASE PROPORTIONS. BUT AS I RECALL AND CORRECT ME
[00:15:06]
IF I'M WRONG THOSE DISCUSSIONS THROUGHOUT THE LAST YEAR AND A HALF TWO YEARS MORE THAN THAT WE HAVE BEEN VERY COGNIZANT OF THE RELATIONSHIP TO AND IT COSTS ABOVE AND BEYOND WHAT HAD SEEN IN MATH AND PLANNING FOR THAT AND LEADING A SALES AND OF CREDIT SHOULD WE NEED TO EVEN GO FURTHER CORRECT? YES, ABSOLUTELY. YES.AND THERE ALSO ONE OTHER WAY THE TOWN COUNCIL VOTED TO HELP IS THAT THEY INCREASED THE AMOUNT THAT THE TOWN SETS ASIDE OF OUR CAPACITY TO A MINIMUM OF $20 MILLION JUST IN CASE AND THAT'S HOW MUCH BORROWED TEMPORARILY AFTERMATH DUE TO HOMELESS INITIAL CLEARING OF THE ROADS AND JUST TO PULL BACK THE ISLAND SO $20 MILLION ASIDE AS GENERAL OBLIGATION DEBT JUST FOR THAT ONE PURPOSE OKAY THANK YOU THANK YOU JOHN. I HAVE ANOTHER QUESTION FROM 22 TO 23 IN THE BEACH PRESERVATION IT'S THE ONE CATEGORY WHERE YOU NOTICE THE NEW ADOPTED BUDGET.
THERE'S A SIGNIFICANT INCREASE OF MONIES I'M ASSUMING THAT'S RELATED TO THE AMOUNT OF TOURISM THAT ALSO INCREASED OVER THE LAST COUPLE OF YEARS. THE ANTICIPATION I BELIEVE WE'VE ALL BEEN A LITTLE BIT HESITANT AND CAUTIOUS AND CONSERVATIVE IN OUR THOUGHTS AS TO WHETHER OR NOT THAT WOULD CONTINUE TO GROW AT SIGNIFICANT RATE.
YOU HAVE AN EIGHT AND ALSO CONNECTED TO THAT IS TO THE ACTIVITY THAT'S DIRECTLY ASSOCIATED YOU BEACH AMBASSADORS TO TRY TO KEEP UP THE BEACH PARKS IS MORE ALLOCATING BEACH PRESERVATION FEES FOR THOSE ACTIVITIES AND IT'S MORE THAN IT HAS BEEN YES SO I THINK THAT YOU'LL A LITTLE LATER THAT WE'RE ON A CYCLE FOR RENOURISHMENT WHICH IS EXPECTED TO START NEXT YEAR AND I THINK THAT NEEDS TO ENTER INTO OUR THOUGHT PROCESS OR OUR DISCUSSION OF WHERE WE GO FROM HERE. THANK YOU.
DESPITE THIS SLIDE JUST REITERATES TO HAVE A GOOD DIVERSITY SOURCES AND EVENTS AND MOST JURISDICTIONS DON'T HAVE THIS LUXURY. IT'S AN INTERESTING THING I LIKE ABOUT IT ONE YOU'LL SEE THAT THERE'S A FOR NEW DEBT DOES NOT REQUIRED AND SO IT WAS PART OF BUDGET PROCESS BUT THERE'S BEEN NO DECISIONS SO WE ARE HERE TO TALK ABOUT IF WE WERE TO DO SOMETHING WHAT MIGHT IT LOOK LIKE AND SO WE HOPE IT'S JUST A HELPFUL DISCUSSION AND I WOULD NOW THAT THE BUDGET 12.9 MILLION ALMOST 13 MILLION INTEREST OF ONLY POINT EIGHT SO I FEEL GOOD ABOUT THIS IS GOOD POSITION AND THE TOWN IS MAKING GOOD PROGRESS TOWARD IN STRIKES AND WE'RE JUST SHOWING THE BEST THAT MAJORITY OF THE DEBT IS PRINCIPAL HERE'S SOME DETAIL OF OUR OUTSTANDING BOND ISSUES YOU GOT YOUR GENERAL OBLIGATIONS YOU'VE GOT SPECIAL REVENUES AND YOU GOT YOUR STORMWATER STORMWATER FUND IS A UTILITY AND IN PLACE THERE STORMWATER FROM THE STANDPOINT OF THESE STRONG UNFUNDED SO IF YOU WONDER WHY ALL COMES ONE BONDSMAN THAT THEY'RE IN THE DEBT SERVICE AND IT'S IN THE STORMWATER FUND SINCE A DEBT BALANCE IS THIS IS ONE I'M REALLY PROUD OF SINCE THERE WAS SOME FUNDS BORROWED IN THE WAKE OF HURRICANE MATTHEW AND SINCE THEN WE'VE REALLY GOOD PROGRESS IN REDUCING TOWNS DEBT IN ALL THREE CATEGORIES. LAST YEAR WAS THE STORM ON MAY 20 AND HERE'S WHERE COUNCILMAN STAND FIRM HAD TALKED ABOUT THE POLICY FOR THE GENERAL RESERVES IS RAISED SO YOU'LL SEE THAT YOU CAN SEE THOSE NUMBERS HAVE INCREASED OUR PROJECTED NUMBERS ARE GOING TO BE RIGHT IN LINE WITH THE COUNCIL'S POLICIES OF SOME COMMENTS FROM THE BOND AND THEY SAID PAST STRONG PERFORMANCE CONSISTENT OPERATIONS TERM TREND OF MAINTAINING STRONG THIS YEAR
[00:20:02]
YEAH IT'S VERY TO CONSIDER INFLATION CONSIDER IMPACT YOU KNOW AND YOU THIS ONCE WHAT IF IT'S ANOTHER STORM THAT NEEDS TO BE A PART OF OUR PROCESS WE DO HAVE A STRONG ECONOMY STRONG MANAGEMENT IT'S A VERY FLEXIBILITY. ONE THING THAT THEY DID POINT OUT IS THAT THEY DO NOT A BARRIER ISLAND. THEY SET IT TO BE IN TUNE WITH RESILIENCY AND THEY SPECIFICALLY SAID RESILIENCY PLAN WOULD ENHANCE THE TOWN'S PREPAREDNESS JUST IN PREPARATIONS BUT ALSO FROM THE BOND TRADERS LIKE SOMETHING THAT THEIR LOOKS AND SO OUR OUTLOOK STABLE YOU HAVE TRIPLE-A MOODY'S WE HAVE A DUMP LIKE ONE CENTER OR PERCENTAGE UP WHY ARE WE TALKING ABOUT THIS RESCUE TRUCK AND LEASE SO WE CAN EXPECT IT TO DO A TRANSACTION THERE IS TRANSACTION STILL THAT BEACH NOURISHMENT THAT'S EXPECTED NEXT YEAR IS PROBABLY GOING TO BE SOME FINANCING IF TOWN COUNCIL WANTS CONSIDER SOME REAL ESTATE TRANSFER FEES OR MORE THAT JUST WANTS CASH BACK BUT TO BE ABLE TO BONDS AND DO SOME PURCHASES. NOW THEY COULD DO THAT AND YOU KNOW ALL UP TO TOWN COUNCIL WE CONSIDER PACKAGING SOME OF THESE DIFFERENT SPIRIT IDEAS TO ONE BOND ISSUE YOU HAVE ONE SET OF CLOSING COSTS THERE, EFFICIENCY THERE.IF WE WERE TO PACKAGE THAT UP IN PROCEEDING THAT BATCH IS TO MAKE ONE BORROWING INSTEAD OF MULTIPLE BORROWINGS. IT ALL DEPENDS ON THE YOU KNOW THE TIMING THE COUNCIL LIKE TO SEE PROCEED DOWN ON THE FIRETRUCK LEASE WE'VE ALREADY BUDGETED FOR THOSE PAYMENTS.
YEAH BUT WHY DO WE NEED NEW DEBT TO COVER THOSE PAYMENTS. WE IT'S FOR THE PURCHASE PRICE FOR ONE PURCHASE BUT WE'RE RELEASING THEM SO WE'VE BUDGETED FOR THE PAYMENTS ON THE LEASE WHICH THE PURCHASE PRICE WE HAVE TO PAY. I'M MISSING SOMETHING HERE DO OFFICE FOR SURE THERE WOULD BE LEASE PROCEEDS AND THEN WE WOULD MAKE PAYMENTS ON THAT SINCE SO SORRY I'M WATCHING THE PURCHASE WE'RE GOING TO HAVE TO MAKE IT WE'RE DOING A LEASE WHEN IT WOULD BE IN LIKE A IF YOU WERE TO BUY A HOUSE WITH MORTGAGE AND YOU STILL TO MAKE YOUR MORTGAGE PAYMENTS. YEAH AND SO MY FIRST QUESTION WAS WE HAVE BUDGETED FOR THOSE PAYMENTS IN THE UPCOMING 24 BUDGET. YEAH.
YES. WHAT'S THE THE LEASE PACKAGE WHO'S UP.
WE'RE IN THE 2024 BUDGET. WHICH FUND KAPLAN THOUGH HAS OTHER ITEMS THAT ARE IN CAPITAL IMPROVEMENT FUND. IT'S SHOWN AS AN OUTLIER WITHIN THE CURRENT YEAR BUT THAT DOESN'T NECESSARILY MEAN THAT WE ARE PAYING THAT AMOUNT WITHIN THAT YEAR WILL BE SIMILAR TO US PUTTING A PORK OR SO INTO CAPITAL IMPROVEMENTS, IS THAT CORRECT? THAT'S CORRECT IN IT'S WHAT'S IN THE FIRE-RESCUE BUDGET IS THE PAYMENTS TO REPAY THAT PLACEMENT JOHN MIGHT NOT CORRECT IT RIGHT THIS IS APPRAISED AS A LEASE.
WHAT ANYTHING WE'RE EVER TALKING ABOUT HERE ALL IS SAME .
IT WILL LOOK VERY MUCH LIKE A PURCHASE AND. THE BASIC REASON FOR DOING IT AS A LEASES FOR ACCOUNTING AND TAX PURPOSES BUT OTHERWISE IT WOULD BE THE SAME AS A PURCHASE IS OUR CURRENT THAT'S CORRECT AND THE LEASE DOESN'T COUNT AGAINST THAT TOWN'S DEBT CAPACITY WHICH IS A AND SO WE CAN SET ASIDE THE INITIAL PROCESS.
ONE IS A SERVICE IT DOESN'T COUNT AGAINST THE CITY AND THEN ALSO IT'S AN ACCOUNTING AND TAX MATTER. IT'S NOT A SUBSTANTIVE BIG ISSUE AS FAR AS COUNCIL IS CONCERNED, CORRECT? RIGHT. WELL THAN IT'S BEING BROUGHT INTO THE CONVERSATION WITH REGARD TO NEED FOR A FOR BONDING AND AND THE LIKE SO IT IS AN IMPORTANT PIECE OF THE CONVERSATION FOR COUNCIL AND I AND I APPRECIATE THE QUESTION GLENN BECAUSE I TO AT THE SAME QUESTION AS TO WHY IT WAS IT WAS PACKAGED IN THERE IN THIS
[00:25:02]
WAY WHICH I COULD AND I'M NOT GOING TO NOW FOR THE INTEREST OF TIME BUT I HAVE A QUESTION ON A NUMBER OF THESE ITEMS THAT HAVE BEEN BULLETED HERE ON THE SLIDES.SO THAT'S MY COMMENT WAS DRAW YOU HOW MUCH MONEY DO WE HAVE IN THE UP IN BUDGET FOR 2020 FOR THE BOTTOM LINE 43 MILLION AND WILL WE BURN THAT 40 MILLION IN FISCAL 2024 PROBABLY NOT BE EVERY EFFORT TO DO THAT BUT THE EXPECTATION IS IS IT PROBABLY WON'T BE THE FULL 40 YOU AS TOWN CONSIDERS DIFFERENT THINGS FOR IN THE FUTURE OR TRANSPORT THAT THERE ARE THERE'S NOTHING TO PREVENT US FROM DOING THE LEASE JUST LIKE THE ORIGINAL CALL FOR PAY FOR THE FIRE RESCUE TRUCKS ALL YOU HAVE TO DO YOU DON'T TO DO ANYTHING MORE YOU COULD DO GENERAL OBLIGATION BONDS YOU COULD DO SPECIAL REVENUE BONDS WE HAVE DONE EACH BONDS BETWEEN OUR BEFORE BEACH FEES AND THAT WAS A VERY SPECIALIZED FOCUS AND ADDED IN THERE SO INSTALLMENT PURCHASE REVENUE BONDS WHICH IS ANOTHER VEHICLE OR FACILITY IN ORDER TO TAKE MIGHT BE MULTIPLE REVENUE SOURCES AND PACKAGE THOSE TOGETHER AND THE TOWN CAN DO THAT. WE'VE GOT TWO DIFFERENT PEOPLE OR YOU'RE TALKING ABOUT THAT TALK ABOUT THE DETAILS OF THAT LET ME INTRODUCE THEM I THINK I'VE GOT YEAH WE'VE GOT A BOND COME ON SCREAMING KAISER IS ONLINE WE'VE GOT OUR FINANCIAL ADVISOR AND BRING OUR TEAM WITH US TODAY AND SO LET ME JUST TAKE A MOMENT RIGHT HERE AND LET EACH INTRODUCE THEMSELVES AND TALK A LITTLE BIT ABOUT ROLE THAT HAVE PROVIDED FOR THE TOWN FOR ANYTHING.
ME YEAH I CAN JOHN AND THANK YOU ALL FOR LETTING ME APPEAR WITH YOU ALL VIRTUALLY.
MICHAEL SEASONED MY LAW PARTNER I THINK IS ALSO ON OURS WINGING MY WAY DOWN TO HILTON HEAD AND CAME TO A FULL STOP ON THE INTERSTATE 26 AND WHEN I REALIZED IT WAS LIKE ALMOST 11:00 THAT I WAS I WASN'T EVEN PAST ORANGEBURG. I WAS VERY CONCERNED THAT THAT BASED ON A COUPLE OF ACCIDENTS AT STOP TRAFFIC I WOULDN'T MAKE SO I APPRECIATE BEING ABLE TO TO VISIT WITH YOU ALL THIS WAY INSTEAD OF TRYING TO MAKE IT DOWN FOR 1:00.
I HAD THE PLEASURE OF SERVING A CHILD BOND COUNSEL NOW FOR 30 PLUS YEARS AND HILTON HEAD HAS ALWAYS BEEN A LEADER AND SORT OF IN THE FOREFRONT OF VARIOUS FINANCING TECHNIQUES AND AND SO WE'VE WORKED WITH YOU ALL FOR ALL OF THESE OF DEBTS THE LEASE, THE GENERAL OBLIGATION BONDS AND SPECIAL REVENUE BONDS. IN A MINUTE I'LL COME BACK TO TALK ABOUT THE INSOLVENT PURCHASE REVENUE BONDS. BUT BRANT, WOULD YOU LIKE TO SAY SOMETHING NOW? SURE. THANKS, RANDY.
I'M BRANT ROBERTSON, STIFEL. NICHOLAS SERVED AS THE TOWN'S FINANCIAL ADVISOR FOR 16 YEARS AND ALONG WITH FRANNY EACH OF THE BOND TRANSACTIONS AT THE TOWN IS HERETOFORE USED EITHER IN THE SPECIAL REVENUE BONDS OR GEO BONDS HAVE HELPED YOU ALL TO STRUCTURE THOSE, PRESENT THEM RATING ANALYSTS INVESTORS IN SOME INSTANCES BOND INSURERS WHERE CREDIT SUPPORT WAS NECESSARY AND THEN SEEN THOSE TWO SUCCESSFUL EXECUTION AND THEN SIMILAR TO AND I'M GOING TO KICK IT BACK TO HER IN A MINUTE INSTALLMENT PURCHASE REVENUE BONDS WHILE NOT PREVIOUSLY UTILIZED BY THE TOWN IS A STRUCTURE THAT HAS BEEN AROUND FOR I THINK PUSHING 25 YEARS AND HAS BEEN THROUGHOUT USE THROUGHOUT THE STATE BY HERE TOO FOR SCHOOL DISTRICTS BUT NOW MORE CITIES AND COUNTIES RIGHT NOW I'LL TURN IT BACK TO YOU.
THANK YOU. ARE YOU ALL ABLE TO HEAR ME? I'M GETTING FEEDBACK.
I WANT TO MAKE SURE I'M SOUNDING CLEAR YOU'RE CLEAR. YES.
OKAY, GOOD. SO THE INSTALLMENT PURCHASE REVENUE BONDS THAT WE WANTED TO TALK TO YOU ALL ABOUT, THEY ARE AN EXTENSION OR A NEW VERSION OF LEASE PURCHASE WAY BACK IN LIKE 1994 THE TOWN WAS ABLE TO DO A BEACH RENOURISHMENT THROUGH LEASE PURCHASE WHICH WAS INTERESTING BECAUSE PROJECT WAS SIGNED. YOU WERE ALSO TO THE CURRENT TOWN HALL WAS PURCHASED THROUGH A LEASE PURCHASE BUT BECAUSE OF SOME LEGISLATION IN THE 1990
[00:30:01]
BASE LEASE PURCHASES FOR CAPITAL PROJECT WENT AWAY AND YOU CAN'T DO THOSE ANYMORE YOU CAN SELL EQUIPMENT LIKE A FIRE TRUCK BUT NOT FOR BRICK THAT. MAUDE SO AN INSTALLMENT PURCHASE REVENUE BOND A NEWER FORM OF THE LEASE WHERE THE THE TOWN WOULD CREATE A NONPROFIT TO DEBT ON ITS BEHALF. THE PROJECTS WOULD FORM OF THE COLLATERAL OR FOR THE BORROWING IF THE THE TOWN CHOSE NOT APPROPRIATE THE DEBT LIST USE OF THE SERVICES AND THOSE ARE ALL THINGS THAT ARE BASICALLY THE SAME LEASE WE HAVE HAD HILTON HEAD ISLAND PUBLIC SERVICE COMMISSION CORPORATION DIDN'T EXIST AS NOW FOR ABOUT 20 PLUS YEARS AND I DON'T THINK IT'S ACTIVE NOW BUT BUT WILL THAT BE HARD TO THE REVERB SO THE REASON WANTED TO RECOMMEND Y'ALL THINK ABOUT INSTALLMENT PURCHASE REVENUE IS THAT THAT STRUCTURE WORKS WELL WHEN YOU'RE WHEN YOU'RE FINANCING A NUMBER OF DIFFERENT PROJECTS AND YOU HAVE A NUMBER OF DIFFERENT STREAMS OF REVENUE THAT YOU WANT TO USE TO FINANCE THOSE PROJECT THIS TRANSACTION IS IS ONE WHERE THERE IS THE RIGHT TO NON APPROPRIATE THAT MEANS THAT THEORETICALLY A TOWN COUNCIL DECIDES EVERY BUDGET YEAR IF THEY'RE GOING TO APPROPRIATE MONIES TO MAKE THE PAYMENTS. WE'VE NEVER HAD A NON APPROPRIATION IN SOUTH CAROLINA AND SO IT'S VERY WELL RECEIVED BY THE RATING AGENCIES AND THE MARKETPLACE AND IT'S REALLY LEVERAGING THE CREDIT THE REALLY REALLY REALLY GOOD CREDIT OF THE TOWN AND ALL THREE THESE BONDS THROUGH COMPACT THROUGH A UNDERWRITTEN TRANSACTION IT'S IT'S A FORM OF TRANSACTION IS BRANT MENTIONED THAT SCHOOL DISTRICT USED AND NOW CITIES AND COUNTIES USE IT WE'VE WORKED WITH NUMBERS OF CITIES AND COUNTIES ON PROJECTS INCLUDING PARTS OF COURTHOUSES ETC. AND WE THINK THAT WITH THE NUMBER OF PROJECTS YOU ALL MIGHT TO FUND THAT THIS PRB STRUCTURE WORK VERY WELL FOR YOU. I'M A BIG GLAD TO ANSWER ANY QUESTIONS I THIS MIGHT BE A NEW CONCEPT FOR YOU ALL AND FRANNIE I WAS GOING TO JUMP IN AND JUST ADD A COUPLE OF THINGS IF THAT'S ALL RIGHT YOU'RE YES. SO IN LOOKING AT WHAT MR. PRESENTED, YOU'VE GOT A VARIETY OF THINGS THAT YOU'RE LOOKING TO DO OVER THE LONG TERM THERE'S BEACH PRESERVATION FIRE APPARATUS, THERE'S SOME REAL ESTATE ACQUISITIONS MEAN THE WHOLE WHOLE HOST OF THINGS AND THERE'S A DIFFERENT WAYS OF APPROACHING THOSE IN THE PAST AND IN MY EXPERIENCE WITH THE TOWN THOSE THINGS HAVE BEEN THINGS THAT HAVE COME ONE AT A TIME PURCHASING ESTATE THEN MAYBE LATER ON GETTING SOME FIRE EQUIPMENT THEN MAYBE LATER ON DOING BEACH PRESERVATION. ALL OF THESE THINGS SEEM TO BE CONVERGING IN A PRETTY SHORT PERIOD OF TIME WHICH IS WHY WE'RE TALKING ABOUT INSTALLMENT PURCHASE REVENUE BUT AS A POSSIBLE FINANCING APPROACH ANOTHER FINANCING APPROACH IS USING ALL OF THIS STRUCTURES AND MR. TROYER PRESENTED THIS THAT HAVE BEEN USED IN THE PAST THESE SPECIAL OBLIGATION BONDS OF BEACH PRESERVATION BONDS, TAX INCREMENT FINANCING BONDS, STORM WATER UTILITY BONDS EACH ONE OF THOSE IS A DIRECT PLEDGE OF THE RESPECTIVE REPAYMENT SOURCES SO YOU DO A STORMWATER BOND HERE BACK FROM STORM WATER, HOSPITALITY ETC. THE UNIQUE THING ABOUT INSTALLMENT PURCHASE REVENUE BOND IS THAT THERE IS NO DIRECT PLEDGE OF ANY INDIVIDUAL REVENUE SOURCE. YOU LOOK AT THE INDIVIDUAL OR EQUIPMENT THAT ARE BEING FINANCED AND THEN YOU DRAW IN THOSE RESPECTIVE REVENUE SOURCES.SO IF YOU THINK ABOUT AS INDIVIDUAL STRANDS OF OF YARN WHAT YOU'RE DOING IS WEAVING THEM TOGETHER INTO A ROPE AND SO CONSEQUENTLY THE CREDIT STRENGTH YOU'RE BRINGING TO THE TABLE IS NOT DEPENDENT ON EACH ONE OF THOSE REVENUE STREAMS. IT'S ALL OF THEM TAKEN TOGETHER AND SO EACH ONE OF THESE INSTALLMENT PURCHASE REVENUE THAT WE'VE WORKED ON IN THE PAST FROM A CREDIT STANDPOINT THEY ARE ONE NOTCH OFF OF THE TOWN'S GEO RATING.
SO IN THE CASE OF STANDARD POOR'S, IF YOU WERE SELLING A TRIPLE-A GEO BOND, AN IP WOULD BE IN THE A-PLUS CATEGORY STRUCTURE CORRECTLY. THAT'S PRETTY IMPORTANT BECAUSE
[00:35:04]
SOME OF THE REVENUE SOURCES OF THE TOWN DON'T HAVE RATINGS ON THEM.REAL ESTATE TRANSFER FEE AND TIFF DON'T WHAT YOU'RE DOING IS YOU'RE HELPING TO ELEVATE THOSE CREDITS IN TERMS OF CREDIT STRENGTH AND CONSEQUENTLY BRING DOWN YOUR OF FUNDS WHAT IS OUR YIELD RATE COMPARED TO OUR REVENUE BOUNDARY? IT ON WHICH CREDIT STREAM YOU'RE TALKING ABOUT SO THE GEO RATING MR. TROYER INDICATED IS TRIPLE-A FROM STANDARD AND POOR'S AND DOUBLE A-PLUS FROM I'M SORRY TRIPLE AA FROM MOODY'S AND DOUBLE A-PLUS FROM STANDARD OF FITCH DON'T WANT TO BONDS DON'T HAVE A PUBLIC RATING THEY USED TO SINGLE IT BUT THEY'RE NO LONGER RATED BECAUSE THEY WENT INTO A PRIVATE PLACEMENT DIFFERENT TYPE OF SALE. SO THIS WOULD YOU SAY JUST BE RATED JUST SLIGHTLY NOTCH REGULAR REVENUE BONDS? WELL, THE IPR FEES WOULD BE ONE NOTCH OFF OF THE TOWN'S GENERAL OBLIGATION RATING DOUBLE-A. ALL RIGHT. MAYBE THEY DON'T HAVE A SCREEN IN MY MIND OR THE STRUCTURE YOU'RE PLANNING OF COMBINING THE VARIOUS REVENUE SOURCES INTO ONE REVENUE SOURCE INSTEAD OF USING A SINGLE REVENUE SOURCE PLEDGE FOR A PARTICULAR ISSUE BONDS RATING, WOULD THAT BE SLIGHTLY LOWER OR SLIGHTLY HIGHER THAN A TYPICAL REVENUE BOND RATING? THE RATING WOULD BE HIGHER THAN THE TYPICAL REVENUE BOND.
SO WHAT HAPPENS IS THAT SOMETHING AS HIGH AS ONE SPOKE OF THIS A MOMENT AGO IT IS A AN ANNUAL APPROPRIATION BY THE TOWN AND SO AN ANNUAL APPROPRIATION PLEDGE FROM A CREDIT STANDPOINT IS GOING TO BE NOTCH OFF OF YOUR UNDERLYING GEO RATING.
SO IF YOU'RE A TRIPLE-A MOODY'S, YOUR APPROPRIATE CREDIT WHICH WOULD BE AN IP WOULD BE AT A ONE AS HAVE YOU ARE PERFORMING DISCUSS THIS WITH THE BOND RATING AGENCIES AS A POSSIBILITY NOT SPECIFIC TO THE TOWN BECAUSE WE WERE WAITING FROM DIRECTION FROM FINANCE COMMITTEE AND COUNCIL BUT IN THE PAST AND I'M SURE AS HIGH AS WE CAN SPEAK TO THIS AS WELL AND OUR FIRMS HAVE WORKED TOGETHER ON PRIOR TRANSACTIONS CONSISTENTLY EVERY SINGLE IP THAT WE'VE DONE IS ONE NOTCH OFF OF THE OBLIGORS UNDERLYING GEO RATING.
SO CAN WE GUARANTEE NOW? OF COURSE NOT I GUARANTEE THAT RIGHT NOW DO I HAVE A STRONG DEGREE OF CONFIDENCE THAT WE'LL END UP AT THE SAME LEVEL WITH THE TOWN? YES. WHAT IF ANY, DO YOU SEE AS THE DOWNSIDES OF THIS APPROACH? I THINK THE BIGGEST RISK OR THE BIGGEST ELEMENT TO MANAGE IS YOUR REPAYMENT SOURCES OVER TIME. SO ONE OF THE GREATEST STRENGTHS OF AN IPR IS THE FACT THAT IN ANY GIVEN YEAR IF ONE OF YOUR REVENUE SOURCES WAS DOING EXCEPTIONALLY BETTER THAN THE OTHERS, YOU KNOW YOU JUST BLEW IT OUT WITH AGE TAX OR WITH OR WITH BEACH.
THERE'S THE POSSIBILITY THAT OKAY, WE'RE GOING TO USE A LITTLE BIT MORE FROM AGE TAX OR WHATEVER THAT OVERAGE IN COLLECTIONS THAT WE DIDN'T EXPECT BUDGETED THROUGH BEACH THAT WE CAN USE TO PAY THE IPR FEES IN THIS YEAR THAT'S A GREAT TOOL OF FLEXIBILITY.
THE DOWNSIDE OF THAT IS IS THAT IF YOU AREN'T CAREFUL AND YOU HAD A REALLY GOOD YEAR IN BEACH AND YOU DECIDED TO OVERCOMMIT AND MAYBE SOME OTHER PROJECTS RELATED TO IT AND YOU PUT YOURSELF IN A POSITION WHERE YOU WERE DEPENDENT ON IT IN THE FOLLOWING YEAR WHAT IS THE PREPAYMENT SOURCE FOR THE IPR BS IT COULD BE A LITTLE BIT OF A PICKLE BUT THEN THE UPSIDE OF THAT IS ON THE OTHER SIDE OF THE COIN IS IS THAT IT'S NOT A PLEDGE YOU COULD LOOK TO BEACH PRESERVATION FEES OR BEYOND BEACH PRESERVATION FEES. YOU COULD LOOK TO AGE TAX, YOU CAN LOOK TO BUSINESS LICENSE, YOU COULD LOOK TO TAX INCREMENT FINANCING ANY LEGALLY AVAILABLE SOURCE IS WHAT IF YOU THINK ABOUT THIS FROM AN INVESTOR'S POINT OF VIEW THERE'S A BASKET AND IN THAT BASKET IS WHAT THE TOWN PUTS THE DOLLARS THAT ARE GOING TO PAY ME MY PRINCIPAL AND INTEREST WHEN I MAKE THE INVESTMENT I'M RENTING YOU MY MONEY AND I EXPECT TO GET PAID EVERY YEAR ON TIME AND IN FULL MY PERSPECTIVE ALL THE DOLLARS ARE GREEN I DON'T CARE WHERE THEY COME FROM SO IF THEY COME FROM BEACH OR TAX BUSINESS LICENSE REAL ESTATE TRANSFER FEE DOESN'T MATTER TO ME AS LONG AS THAT BASKET'S FULL ON TIME EVERY SINGLE YEAR.
SO THE DOWNSIDE FOR ME ALL IS PERSPECTIVE IS BECOMING TOO RELIANT OR TOO DEPENDENT ON ONE OF THOSE INDIVIDUAL REVENUE STREAMS BUT BECAUSE THIS IS SOMETHING YOU'RE APPROPRIATING EVERY SINGLE YEAR YOU'RE TOUCHING IT EVERY SINGLE BUDGET CYCLE YOU'RE GOING TO GET THE HEADS UP ON. SOME MIGHT HAVE A LITTLE BIT MORE OF A TIGHT YEAR IN BEACH THAN WE THOUGHT. LET'S THINK ABOUT THAT WHEN IT COMES TO MAKING THESE
[00:40:01]
INSTALLMENT PURCHASE REVENUE BOND PAYMENTS NEXT YEAR CONSIDERING THE CURRENT INTEREST RATE MARKET, WOULD YOU BE CONSIDERING I MEAN OF A RATE THAT IS EQUIVALENT TO A FIXED FOR A PERIOD OF TIME OR WOULD THERE BE AN OPPORTUNITY FOR ADJUSTMENT? SO IN THE CURRENT RATE ENVIRONMENT RIGHT NOW LONG TERM YIELDS ARE ON THE HIGHER END THAN THEY HAVE BEEN IN THE PAST AND PEOPLE EXPECT RATES TO CONTINUE TO INCREASE.SO WHEN BONDS ARE SOLD THE PUBLIC MARKET WHAT WE'RE TENDING TO SEE HERE IS A STRUCTURE THAT PRESENTS A REFUNDING OPPORTUNITY IN THE FUTURE.
SO ASSUMING THAT THE TOWN SELLS A TRADITIONAL FIXED RATE TRANSACTION WHICH TYPICALLY CARRIES IT A TEN YEAR OPTIONAL REDEMPTION PROVISION, THERE'S EVERY REASON BELIEVE THOUGH NO GUARANTEE THAT THERE WILL BE AN OPPORTUNITY TO REFINANCE SAVINGS IN THE FUTURE AT TEN YEARS OR EARLIER. TEN YEARS IS THE COMMON CALL PROVISION.
YOU'RE NOT GOING TO GET PENALIZED BY INVESTORS BUT LIKE ANYTHING ELSE IF YOU WANT MORE FLEXIBILITY SURE YOU CAN LOOK AT THAT BUT IT COMES AT A COST. SO IN AN EIGHT YEAR CALL MAYBE MAYBE WE COULD GET THAT MARKET ARE RIGHT WITHOUT A PENALTY BUT IF THE TOWN WERE TO COME IN AND SAY WELL WHAT ABOUT FIVE YEAR CALL FOR AN INVESTOR I WOULD BE HAPPY TO DO THAT IF YOU GIVE THEM ANOTHER QUARTER POINT. IT'S REALLY JUST IT REALLY JUST DEPENDS ON WHAT THE TOWN'S ULTIMATE GOALS ARE IN TERMS OF SETTING THE TABLE FOR THE FUTURE FOR REFINANCE AND WE CAN LOOK AT THAT. THANK YOU, BRETT. IN TRADITIONAL BONDING WE BOND A REVENUE STREAM BOND AGAINST ONE REVENUE STREAM TYPICALLY HERE WE ARE BUNDLING THESE REVENUE STREAMS AND I UNDERSTAND THE ASPECT OF FLEXIBILITY BUT.
ARE WE GIVING UP THE ABILITY TO BOND AGAINST THAT REVENUE STREAM STREAM BEFORE THE BOND IS PAID OFF? IT'S A GREAT QUESTION. THE QUESTION WE'VE DONE THESE I KEEP SAYING IT WELL BUT YOU GOT WELL I'M AND REPEAT IT BACK TO MAKE SURE WE'VE DONE THIS I PRB GETTING ALL THESE PROJECTS DONE AND THEN A COUPLE OF YEARS THE ROAD WE'VE IDENTIFIED SOME WE WANT TO DO IN TAX FOR MAYBE REASONS TO DO ONE OF THESE TYPICAL SPECIAL OBLIGATION BONDS WE'VE DONE IN THE PAST AND THE ANSWER IS NO YOU'RE NOT STOPPED FROM DOING THAT BECAUSE THERE IS NO DIRECT PLEDGE OF THE REVENUES. WE CAN PLEDGE THE REVENUES IF YOU LIKE UNDER THE IPAB STRUCTURE BUT YOU DON'T HAVE TO PLEDGE THEM.
AND SO WHAT THAT MEANS IS IS THAT THE AGE TAX IN THIS EXAMPLE IS AN INTENDED PAYMENT SOURCE FOR THE IPR IS NOT PLEDGED, IT'S INTENDED SO IN THE FUTURE IF CIRCUMSTANCES WERE TO CHANGE AND THE TOWN DECIDES YOU KNOW WHAT FOR FINANCIAL OR POLICY REASONS I THINK WE WANT TO MOVE THE DIRECTION OF JUST PUTTING AGE TAX INTO JUST AGE TAX RELATED PROJECTS AND DEBT ASSOCIATED WITH THAT. ABSOLUTELY YOU CAN DO THAT NUMBERS HAVE TO WORK BUT YOU'RE NOT LOCKED DOWN FROM THE LEGAL PROVISIONS OF THE IPR BE BUT THE ANSWER TO MY QUESTION IS AND YOU GAVE IT TO PLAY IT BACK TO WE'RE NOT PLEDGING THOSE REVENUE STREAMS. BRANT OKAY AND SO THE MARKET SAYS WE TRUST YOU TO PAY YOUR BONDS. WE DON'T KNOW WHICH STREAM YOU'RE GOING TO COME FROM WE TRUST IT RIGHT RIGHT I LIKE THE FLEXIBILITY AND BY THE WAY I'M LOOKING AT FRANNY UP HERE SHE'S THAN LIFE UP ON THE SCREEN SHE MAY NOT KNOW IT FRANNY IF I GOING OFF CAMPUS AT ALL ON ANY OF THIS PLEASE FEEL FREE TO JUMP IN. BUT IN THE PAST THE ONLY TIME WHERE WE ACTUALLY PLEDGED REVENUE STREAMS ON ON STRUCTURES FOR AN IP HAVE BEEN WITH COUNTIES AND WHEN THEY HAVE A VERY LARGE INDUSTRIAL COMMERCIAL PROJECT THAT IS PRODUCING A FEE IN LIEU OF TAX STREAM, WHAT THEY DECIDE IS WE WANT TO CAPTURE THAT AND USE IT EFFECTIVELY TO TO PAY THE BONDS FROM NONTRADITIONAL REVENUES. WELL, ONE OF THE BIGGEST REASONS WHY COUNTIES DO THAT IS THAT THEY DON'T HAVE A LOT OF REVENUE SOURCES IN PROPERTY TAX WHICH THEY MIGHT HAVE AN AGE TAX. THEY DON'T HAVE A BEACH PRESERVATION FEE. I DON'T KNOW MANY THAT HAVE STORMWATER NOT REAL ESTATE TRANSFER FEE IF YOU HAVE TIFF I MEAN THAT'S MR. TROYER POINTED THAT OUT THERE'S SUCH A DIVERSITY OF REVENUE SOURCES HERE AND AGAIN THE TIMING HAS TO BE RIGHT THE TOWN HAS TO HAVE THE PROJECTS TO DO THIS. BUT IF THE TIMING IS RIGHT AND THE PROJECTS ARE READY INSTALLMENT PURCHASE REVENUE BOND IT IS A REALLY SOUND STRUCTURE FOR THE TOWN TO BE CONSIDERING GIVEN ALL OF THOSE DIFFERENT REVENUE THAT YOU HAVE ANY NUMBER OF THEM, ANY COMBINATION OF THEM IN GIVEN YEAR CAN FILL THE BASKET I WAS TALKING ABOUT THANK YOU MR. ART. THE ONLY DIFFERENCE IS FROM A TYPICAL GEO IS YOU HAVE A SEPARATE ENTITY NO PLEDGE AND THE INTEREST RATE WILL BE SLIGHTLY BETTER.
[00:45:02]
THE THE INTEREST RATE WILL NOT BE AS GOOD AS A GEO BOND BUT THE GABON WOULD BE A TRIPLE-A AND THIS IS TO MOODY'S RATING I'M SORRY BETTER THAN THE REVENUE ENDED IN A REVENUE BOND BETTER THAN OF THE TOWNS REVENUE BONDS PRESENTLY. YES YES.AND ARE THE BASIC THREE DIFFERENCES THE OTHER DIFFERENCE WOULD THROW IN THERE MS.. HEIZER REFERRED TO THIS BEFORE IS THE ACTUAL COLLATERAL THAT IS THE PROCEEDS OF THE BONDS THAT THE COLLATERAL IS BEING USED TO TO ACQUIRE OR BUILD THAT IS PART OF THE PLEDGE THAT IS THAT IS IT'S PART OF THE COLLATERAL PACKAGE.
AND SO THE BONDHOLDERS DO HAVE AN INTEREST IN THAT COLLATERAL AND THAT'S PART OF THE MOTIVATION UP AT THE TOWN WOULDN'T BUT THAT'S PART OF THE MOTIVATION FOR ENTITIES USING INSTALLMENT REVENUE BONDS EVERY YEAR TO APPROPRIATE BECAUSE IF YOU DON'T APPROPRIATE THERE'S GOING TO BE AN ISSUE AND PART OF THE UNDERLYING SECURITY THE ASSETS YOU FINANCE WITH THOSE BONDS BUT SO JUST LIKE BEFORE I HAVE QUESTIONS AND THIS IS A NEW CONCEPT TO ME AND I'M INTERESTED IN HEARING IT I'M NOT SURE HOW I FEEL ABOUT IT BROADLY SO I MAKE ANY THESE QUESTIONS IT'S BEEN AMAZING VERY TO ME AS I TAKE IN INFORMATION BUT I'LL BE DOING SOME ADDITIONAL RESEARCH AND THINKING ABOUT IT AND BRING IT BACK QUESTIONS AT ANOTHER TIME . THANK YOU. THAT AND SOME REALLY GOOD QUESTIONS FROM MY COLLEAGUES HERE SO. I THINK I'M OKAY FOR A MOMENT BUT AND IF FRANNY HAS ANYTHING ELSE THAT SHE NEEDS TO ADD WE CAN DEFINITELY LISTEN ALOUD FOR HER I THINK SOME OF THE QUESTIONS THAT WOULD FURTHER DISCUSSION WOULD BE FOR MR. TROY YOU YOU KNOW, AT THIS POINT, FRANNY, DO YOU HAVE ANYTHING ELSE THAT YOU NEED TO ADD? THANK YOU. ALSO YES.
FRANNY, CAN YOU HEAR US AGAIN? I'M SORRY. I WAS I WAS TRYING TO WORK UP A SOUND AND IT FLIPPED ME OUT. I APOLOGIZE. I JUST MISSED LAST ABOUT 2 MINUTES. OKAY. DID YOU HAVE ANYTHING ELSE YOU WANTED TO ADD TO THE CONVERSATION? ANY I'M SORRY.
COULD YOU SAY THAT AGAIN? DO YOU HAVE ANYTHING ELSE THAT YOU WANT HAD? NO. I APPRECIATE BEING THERE AND WALKING Y'ALL THROUGH THIS.
WE HAVE WORKED ON A NUMBER OF THESE TRANSACTIONS AND IT'S SOMETHING THAT WORK VERY WELL FOR HILTON HEAD DOWN HILTON HEAD ISLAND IF Y'ALL ARE INTERESTED WE CAN PUT TOGETHER FOR YOU AND THANK YOU THANK YOU AND BRANT FOR YOUR SUPPORT OF OVER THE YEARS.
MR. TROY I THINK THERE ARE PROBABLY SOME FROM FROM COUNSEL FOR YOU BUT BEFORE WE DO SO I WANT TO OPEN THE DOOR FOR THE PUBLIC TO COMMENT OR QUESTION YOU LADIES FIRST MR. HOAGLAND MR. PRINCE LADIES LADIES FIRST. I'M GOING TO HAVE MS.. PRINCE COME BEFORE YOU IF YOU DON'T MIND, I'LL GO. GO. I DON'T KNOW.
I WANT TO THANK YOU. WHAT? THE ONLY QUESTION I HAVE IS WHETHER THE FACT OUR BEACH RENOURISHMENT ATTACKS AND ATTACK AT ATTACKS REVENUE BEING SO HIGHLY LINKED TO THE SAME SOURCES OF REVENUE BASICALLY OUR TOURISM BUSINESS POSE ANY RISK TO OUR BOND RATING IF YOU CONSOLIDATE THAT IN THE IN THIS NEW INSTRUMENT RATHER THAN LOOKING AT EACH OF THOSE SOURCES INDEPENDENT THAT MAKE A DIFFERENCE GIVEN THAT ALL THREE OF THOSE BEING REVENUE SOURCES TRACK WITH THE SAME COMMUNITY METRICS I THINK IT'S A REALLY GOOD QUESTION BUT I THINK JUST OUR EXPERIENCE WITH THE DIFFERENT ONES THEY DO HAVE A LITTLE BIT DIFFERENT DYNAMIC AND THEY DON'T ALL EXACTLY TRACK TOGETHER AND SO I THINK THERE'S SUPPORT IN HAVING THE DIFFERENT TOGETHER AND I HOPE THAT ANSWERS YOUR QUESTION TOTALLY BIG TROUBLE THIS COUNCIL I DON'T WANT TO EMBARRASS YOU ALL BECAUSE I, I
[00:50:09]
WAS UP THERE WITH YOU. I'D BE IN THE SAME SITUATION. I WOULDN'T HAVE A CLUE BECAUSE I'M NOT A CPA. YOU'RE NOT A CPA. YOU'RE NOT A FORENSIC AUDITORS . WE'RE IN BIG TROUBLE. THIS COUNCIL I'M GOING TO TELL YOU I'M GOING TO GIVE YOU MY ADVICE. MY ADVICE IS YOU HIRE WE'RE TALKING ABOUT SO MUCH MONEY YOU NEED TO HIRE AN INDEPENDENT FORENSIC AUDITOR AN AUDITOR TO WORK FOR YOU WORK FOR ONLY THE COUNCIL, NOTHING DO WITH THE TOWN EMPLOYEES.YOU HAVE GOT TO DO IT OR YOU GOT TO YOU'RE GOING TO HAVE TO GET LAW ENFORCEMENT INVOLVED.
I'M TELLING YOU WHERE BIG TROUBLE THIS DEBT SERVICE FUND BUDGET REVENUES MUST BE INDEPENDENTLY BY YOUR HIRED TRUSTED PERSON SEPARATED FROM ALL THIS WHAT ARE THE LAWYERS GOING TO CHARGE YOU TO DO ALL THIS? I KNOW.
IS IT 300,000 400,000 I DON'T MISS HAS WAS PAID FROM FROM BEFORE BUT I WON'T TELL YOU ABOUT MISS HOUSER AND BERT FOREMAN. I'M CALLING FOR A FORENSIC AUDIT ON THAT LAW. THAT LAW FIRM AND MOST OF THEIR LAWYERS BECAUSE THEY ALL CONTROL THE BONDS, THEY CONTROL THE CHAMBER, THEY CONTROL THE GRC.
THEY CONTROL EIGHT TAX HOSPITALITY TAX. THERE ARE HUGE ON WHAT HAPPENS TO OUR LOCAL GOVERNMENT. MANY OF THESE PEOPLE SHOULD BE ARRESTED AS FAR AS I'M CONCERNED. AGAIN, HIRE A CPA, A FORENSIC AUDITOR MAY I'M IN THE SAME BOAT AS Y'ALL. I DON'T HAVE A CLUE ABOUT ANY OF THIS STUFF.
GOT TO SEE RECEIPTS, MATCHING INVOICES. YOU GOT TO DO A FORENSIC AUDIT . YOU HAVE NO CLUE IF YOU'VE GOT PAYOFFS, KICKBACKS WASTE, FRAUD, EMBEZZLEMENT THERE'S ONLY ONE WAY TO DISCOVER WHAT THESE PEOPLE ARE DOING AND THAT'S AUDIT THEM WITH AN FBI LEVEL AUDITOR THE IRS I'D LIKE TO KNOW FROM MR. HOYER WHERE IS IT? SHOULD WE BE SHOULD BE AN AUDIT TO THE HOSPITALITY FILE.
SHOW ME WHERE ALL THE BITS FATHER WHERE'S ALL THE THE HERE'S WHAT IT SAYS WHAT ARE THE HOSPITALITY TAX REVENUES USED FOR THE TAX GENERATES APPROXIMATELY 5 MILLION ANNUALLY THAT IS DEDICATED TO PAY THE DEBT SERVICE ON A 10 MILLION BOND FOR PUBLIC SAFETY PROJECTS AND OTHER CAPITAL IMPROVEMENT PROJECTS. IT'S ON YOUR WEBSITE.
I MEAN WE'RE HEARING ALL THESE NUMBERS BUT SHOW ME THE MONEY WHERE DOES IT ALL GO ON? HOW MUCH IS THAT BESIDES REPAID? HAS SHE EVER BEEN AUDITED HAS BEEN FOR COUNTY EVER AUDITOR FOR 30 YEARS. YOU KNOW GREENVILLE, SOUTH CAROLINA IT USED HOSPITALITY FUNDS FOR TOURISM. SO THERE'S NO STANDARDS IN SOUTH CAROLINA. IT'S JUST YOU KNOW, MR. TROYER SHOW ME THE SHOW ME THE AUDIT SHOW ME I DON'T WANT TO DO THE HOSPITALITY TAXES AND, EVERYTHING WHERE I CAN SEE THERE'S BEEN NO EMBEZZLEMENT, NO FRAUD, NO KICKBACKS NO PAYOFFS.
I'M TELLING YOU YOU'RE A BIG, BIG TROUBLE. TRUST ME, PAUL, THE FBI CALLED FOR HELP SOON. OKAY, MR. TROY, YOU OH, I'M SORRY, COUNCILMAN BRYSON.
ABSOLUTELY. THANK YOU. CHAIR BROWN PATSY BRICE INDIAN COUNCIL MEMBER HEY, FRANNIE. HEY, BRETT. GLAD TO SEE YOU HERE.
THANK YOU. I'M EXCITED ABOUT THIS NEW FINANCING OPPORTUNITY.
I APPRECIATE THE OPPORTUNITY TO BE ABLE TO BUNDLE REVENUES. SO I JUST HAVE A COUPLE QUESTIONS. ONE IS IF WE CAN BUNDLE REVENUES, CAN WE BUNDLE PROJECTS OR IS IT JUST GEARED TOWARDS FINANCING ONE TYPE OF PROJECT IN A SECOND IS WHAT REVENUES DO WE HAVE THAT ARE LEGALLY AVAILABLE FOR THIS TYPE FUNDING? WE'VE TALKED ABOUT A COUPLE OF EXAMPLES BUT I'D LIKE TO SEE THE LIST WHAT ARE AVAILABLE AND THEN THE LAST ONE RELATING TO THE RATING THIS PARTICULAR FINANCING TOOL IS BEING ONE NOTCH DOWN IS AT A QUARTER OF A POINT OR WHAT KIND DIFFERENCE IN POSSIBLE INTEREST RATES MIGHT MISS MIGHT WE SEE? THANK YOU OR WERE THE LAST ONES A TOUGH ONE SO WORKING IN REVERSE ORDER THE THE INTEREST RATE IT'S GOING TO DEPEND IS GOING TO DEPEND ON MARKET CONDITIONS IT'S GOING TO DEPEND ON WHAT OTHER DEALS ARE IN THE MARKET AT THE SAME TIME KNOW JUST THERE'S SO MANY FACTORS THAT GO INTO IT IT'S VERY HARD TO PIN DOWN WHAT ONE NOTCH MEANS FROM A GENERAL OBLIGATION BOND TRIPLE-A VERSUS GENERAL BOND.
PLUS I'M MORE THAN HAPPY TO YOU ALL PUBLICLY PRODUCED YIELD INDEXES THAT WOULD SHOW THAT BUT IT'S GOING TO BE AS OF THAT DAY'S MARKET CLOSE AND IT'S GOING TO CHANGE FROM DAY TO DAY BUT MORE THAN I DON'T HAVE IT OFF THE TOP OF MY HEAD BUT THAT'S SOMETHING WE CAN
[00:55:03]
CERTAINLY PROVIDE AS MUCH AND AS OFTEN AS YOU'D LIKE TO SEE IT AS FAR AS AS DOING MULTIPLE TYPES OF PROJECTS, THAT'S REALLY THE POINT OF DOING AN INSTALLMENT PURCHASE REVENUE BOND AT LEAST FOR THE TOWN AND I WENT BACK TO THIS BEFORE IF YOU ONLY HAD BEACH PRESERVATION PROJECTS DO IT PROBABLY MAKES MORE SENSE JUST TO GO AHEAD AND DO BEACH PRESERVATION V BOND WHICH IS WHAT YOU'VE DONE IN THE PAST. IT'S TRIED IT'S TRUE IT'S ESTABLISHED ETC. ETC. AND YOU CAN STILL THAT BUT THEN IF YOU ALSO HAVE FIRE APPARATUS AND LAND ACQUISITION THAT YOU'RE TRYING TO DO FOR A VARIETY OF PURPOSES AND FILL IN ALL THE BLANKS AS MR. TROYER INDICATED NOW, YOU'RE TALKING MULTIPLE BOND ISSUES.THERE'S A LOT OF REPEATED EFFORT TO GET THOSE TRANSACTIONS DONE.
I MEAN, FOR INSTANCE, WHEN YOU SELL BEACH PRESERVATION B BONDS OR TAX BONDS OR GEO BONDS, THEY'RE ALL RATED THOSE ARE THREE SEPARATE RATINGS THAT YOU'RE FOR IF YOU BUNDLE ALL THE PROJECTS TOGETHER AGAIN, THIS ALL HAS TO BE DONE WITHIN SOUTH CAROLINA LAW FEDERAL LAW.
I MEAN IT ALL HAS TO BE NICE AND TIGHT FROM A LEGAL PERSPECTIVE BUT BUNDLING ALL THOSE PROJECTS TOGETHER AND CONSOLIDATING THEM INTO A SINGLE PLAN OF FINANCE BRINGS SOME OF THOSE EFFICIENCIES LIKE SINGLE RATHER THAN THREE SEPARATE RATING.
SO YES, MULTIPLE YOU CAN DO A SINGLE PROJECT CITY OF COLUMBIA AND IT'S ALL THE PURCHASE REVENUE BOND $55 MILLION FOR A MUNICIPAL COMPLEX SINGLE ASSET. BUT THEN THERE'S A LOT OF OUR CLIENTS HAVE USED THEM FOR ASSETS BOTH ESSENTIAL ASSETS AND NONESSENTIAL ASSETS AND THEN I'M SORRY I FORGOT YOUR THIRD TOPIC. YEAH, OUR WEEKLY SO SO IF WE WERE IF THE TOWN WERE TO DECIDE THAT THIS IS THE COURSE THAT IT WANTED TO TAKE AND IT DID AN INSTALLMENT PURCHASE REVENUE BOND BUT IT DIDN'T DO BEACH PRESERVATION PROJECTS.
YOU COULDN'T USE BEACH PRESERVATION USE. SO I'M ANSWERING YOUR HONOR YOUR QUESTION IN REVERSE ORDER. IT DEPENDS ON WHAT PROJECTS YOUR FINANCING.
SO IF THERE ARE BEACH PRESERVATION VIEW PROJECTS, IF THERE WERE STORMWATER PROJECTS, IF THERE WERE PROJECTS THAT WERE VALID UNDER STATE LAW FOR AN TAX PURPOSE THOSE ARE ALL VIABLE REVENUE FOR PAYING BACK THE INSTALLMENT PURCHASE REVENUE BOND STRIP ONE OF THOSE OUT OF THERE THOUGH AND YOU WOULDN'T BE ABLE TO USE THAT REVENUE SOURCE AND YOU WOULDN'T WANT TO ABSOLUTELY. YEAH. ANYTHING THAT YES, ANYTHING THAT WOULD OTHERWISE BE A REVENUE BOND TYPE OF PROJECT THAT WOULD HAVE TO BE THE KIND OF PROJECT YOU'RE FINANCING WITH AN IP TO DRAW IN THE REVENUE SOURCES ARE REPAID.
THANK YOU MR. CHAIRMAN. I WOULD COMMENT HERE THAT THIS IS AN INTRODUCTION OF THIS CONCEPT AS ALL THIS IS AND I APPRECIATE THE EDUCATION THAT I HAVE RECEIVED HERE ON IT AND I'LL BE STUDYING MORE BUT NOT ABOUT TO BEGIN APPROVAL OF SUCH A THING BUT LEARNING ABOUT AS WE'RE MOVING FORWARD. THANK YOUS TO COUNCILMAN STANFORD'S POINT THAT WAS KIND OF OUR THOUGHT PROCESS IS ONE JUST TO INTRODUCE THE STRUCTURE SOMETHING THINK ABOUT IT TO COUNCILWOMAN BECKER WENT AS WELL AS YOU CAN SEE TIME TO PROCESS AND THINK ABOUT THIS IS THAT THIS IS JUST AN OPPORTUNITY TO TALK ABOUT IT THINK ABOUT IT, UNDERSTAND WHAT IT IS AND THEN WE ALSO NEED TO COUPLE THAT WITH OKAY A NATION TENDS TO THE TOWN WANT TO TAKE UP ITS OKAY WE WE CAN DO A TRADITIONAL LEASE FOR FIRE TRUCKS AND WE'RE WE'RE NOT BOUND BY THAT BUT WE WE CAN INCLUDE THEM IN IPR IP WE NEED TO DO A BEACH RENOURISHMENT BUT THAT WILL BE NEXT YEAR BUT IT MAKES SENSE TO THINK THAT THROUGH AT THIS TIME TO SAY OKAY WOULD WE DO THIS AND THERE HAS BEEN SOME TALK ABOUT POSSIBLY PROVIDING FUNDS FOR REAL ESTATE PURCHASES. OKAY. WE CAN ADD THAT TO OUR DISCUSSION AND THAT MIGHT BE ANOTHER OPPORTUNITY AND IF THERE'S A I ALSO THINK ABOUT TWO IS THAT THE REST OF OUR CHAIRMAN ASKS OKAY ON OUR CURRENT YEAR THE IP $40,000,000.32 IS NOMINALLY PROCEEDS THAT 32 MILLION IS IN CASH BUT WILL WANT TO DO AND I THINK FROM MANAGEMENT'S PERSPECTIVE ANOTHER VERY AGGRESSIVE YEAR FROM NOW AND
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OUR ABILITY TO FUND THAT FROM CASH IS GOING TO BE VERY LIMITED AND SO I THINK WE WANT TO THAT IN MIND AS WE START TALKING THROUGH THIS AND REALLY IT WAS KIND OF MY INTENT THIS IS JUNE WE COME BACK YOU HAVE SOME TIME TO PROCESS THAT. OKAY, WHAT IS THIS WHAT? HOW DO WE FEEL ABOUT THIS? WHAT QUESTIONS DO WE HAVE AND THEN WE HAVEN'T EVEN TALKED ABOUT A MUCH FOR ANYTHING AND THAT'S ANOTHER WHOLE I THINK ANOTHER WHOLE DISCUSSION WE WOULD SEPARATE THAT AND SAY OKAY WELL THIS HOW MUCH ARE WE TALKING ABOUT AND I THINK WE NEED A FULL CONVERSATION ON THAT. OKAY.WELL JOHN, WE WE THANK YOU AND WE OF COURSE APPRECIATIVE OF OUR PARTNERS HERE, BRANT AND FRANNY FOR TRYING TO GET US AS SMALL AS POSSIBLE IN A LIMITED AMOUNT OF TIME THAT WE HAD TO BE. I THINK THIS IS DEFINITELY JUST AN INTRODUCTION TO THE IDEA YOUR TIMELINE DEPICTS THAT WE'LL GET TOGETHER SOMETIME IN JULY.
I THINK THERE HAVE BEEN SOME REALLY GOOD QUESTIONS ASKED IF WE CAN COME BACK TO SORT OF A LITTLE BIT MORE ANSWERS ON SOME OF THE QUESTIONS THAT HAVE BEEN ASKED THUS FAR AN OPPORTUNITY FOR US TO NOT JUST LET IT SINK IN BUT HAVE A BETTER AS TO THE ADVANTAGES OF THIS FLEXIBILITY BASED OUR CURRENT NEEDS AND I WOULD JUST CHALLENGE ALL OF US TO GET OUT OF THE BOX OR MOMENT AS FAR AS OUR CURRENT YEAR'S BUDGET RIGHT AND AS YOU TAKE A LOOK BACK AT OUR BORROWING HISTORY, I THINK THE LAST TIME WE'VE DONE LIBRA WAS IN 2020, IS THAT CORRECT? WE DID SOME REFINANCING LAST NEW MONEY AND SO YOU KNOW FOR SOMETHING THAT I'M BUILDING SOMETHING THAT WASN'T THERE WAS THE FIRE STATION AND THAT WAS I THINK WE ISSUED IN 2019 AND SO YEAH WE'VE SINCE DONE SOME A COUPLE OF REFINANCING SO IT WAS A 2020 SO ABSOLUTELY.
THANK YOU MR. CHAIRMAN WITH A WHEN I TAKE A LOOK AT OUR STRATEGIC PLAN AND THOSE 50 PRIORITIES THAT WE HAVE IDENTIFIED OUR DECISIONS A FEW EXAMPLES THE WHOLE IDEA RESILIENCY RESILIENCY IS NOT FREE. IT'S GOING TO COST US MONEY TO GET THAT DONE. JUST THE INITIAL STUDY WE'VE IDENTIFIED THAT WE'VE GOT HUGE GAP WHEN IT COMES TO STORM WATER AS TO WE'LL BE LOOKING AT POTENTIALLY A RATE ADJUSTMENT THERE. WE LOOKED SOME REALLY PRETTY PICTURES LAST WEEK WHEN COMES TO PARK ENHANCEMENTS, RIGHT. SO WE'VE GOT A LOT OF ACTIVITY GOING ON THE COMMUNITY IS LOOKING FOR WAS TO PRODUCE ON THOSE CONCEPTUAL PLANS AND THE QUESTION BECOMES HOW DO WE GET I THINK THIS IS AN OPPORTUNITY FOR US TO TALK LOUD ABOUT A STRATEGY TO GET THERE.
SO I JUST ASK MR. TROY THAT IN JULY WE COME BACK WITH THOSE DETAILED AND POTENTIALLY, YOU KNOW, KIND OF A BEHIND THE CURTAIN SO TO SPEAK AS TO WHAT'S OUT THERE AS FAR AS THAT ARE ON THE HORIZON, THEN WE SHOULD BE CONSIDERING THE COUNCILS BEFORE US ABOUT TO GET US IN THE POSITION THAT WE ARE NOW AND I THINK IT'S INCUMBENT UPON US TO CONSIDER WHAT WE NEED TO DO FOR THE FUTURE OF OUR NIGHT. JUST ADD A LITTLE TO THAT.
IT WOULD BE HELPFUL TO SET UP ISSUES FOR JULY AND WHAT I SEE FIRST OF ALL IS THIS IS A DIFFERENT STRUCTURE THAT HAS BEEN WELL TRIED ELSEWHERE BUT HAS MANY ADVANTAGES IT DOES NOT ENCUMBER ANY PARTICULAR REVENUES OR SOURCES WHICH IS AN ADVANTAGE IT GIVES US ANNUAL FLEXIBILITY ON HOW WE'RE DEALING WITH IT. IT HAS AN INTEREST RATE IS ONLY SLIGHTLY IS SLIGHTLY BETTER THAN WE'D GET AN INDIVIDUAL REVENUE BUT I THINK IF YOU GET INTO POINTS LIKE THAT IT WOULD BE VERY HELPFUL FROM MY PERSPECTIVE ANYWAY COUNCIL MEMBERS TO UNDERSTAND THIS BECAUSE ULTIMATELY WE'RE GOING TO GET TO THE POINT WHERE THE REAL ISSUES THAT COUNCIL MEOLS NEEDS DEAL WITH IS IS THIS THE RIGHT TIME IN TERMS THE MARKET WE WANT TO TAKE ON A BIG INTEREST RATE THAT WILL BE STUCK WITH FOR TEN YEARS AND THINGS LIKE THAT ARE AS I SEE IT ARE THE SUBSTANTIVE QUESTIONS THAT COUNCIL IS GOING TO WANT TO DEAL WITH MOST OF THE REST OF OUR TECHNICAL STRUCTURAL ISSUES WHICH ALL HAVE A BENEFICIAL RESULT AND LIKE EVERY BORROWING INTEREST RATE IT'S GOING TO BE KEY AND IT'S GOING TO AFFECT THE PACE OF PROJECTS AND. SO AS COUNCIL LOOKS FORWARD TO THE TIMING PROJECTS THEN I THINK THAT WILL ENTER INTO THE CONVERSATION.
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BUT I CAN JUST ADD A THOUGHT ON THAT IN THE PAST I THINK WE CAN ALL AGREE THE REASON HILTON HEAD IS IN THE FINANCIAL POSITION IT IS IS BECAUSE CONSERVATIVE NATURE THAT WE'VE TAKEN TOWARDS PLANNING AND OUR REVENUE AND EXPENSES. I DON'T WANT TO LOSE SIGHT OF THAT AND WHILE I REALIZE THERE'S LOTS PEOPLE AND LOTS OF PROJECTS THAT ARE BEING FLOATED OUT THERE AND AROUND AND WE DO HAVE TO LIVE WITHIN OUR MEANS AND RIGHT NOW THERE ARE SOME CONCERNS WITH REGARD TO ECONOMICS ACROSS THE COUNTRY WHICH WILL INEVITABLY IMPACT US AND I DON'T WANT TO LOSE SIGHT OF THAT IMPORTANT PIECE THAT HAS GOTTEN US WHERE WE ARE BUT THE BRIGHT AND SHINING DOWN THE ROAD. SO I'LL BE WATCHING, LISTENING, LEARNING AND MAKING SURE THAT WE DON'T TAKE A STEP AT A TIME TO MR. ALFORD'S POINT THAT MAY BE THE RIGHT TIME FOR US SPENDING MONEY. SO I'D JUST LIKE TO ADD I PUT THIS TIMELINE TOGETHER TO ANSWER THE QUESTION WHAT QUIT LIKE AND THAT JUST IT'S OVER IT NEEDS TO BE A TIMING THAT ALSO IT'S COMFORTABLE AND CERTAINLY THE TIMING AND THE THE PROJECT PROJECT SIZE WE WOULD LOOK TO GUIDANCE THE COUNCIL THANK YOU BECAUSE THAT'S MR. STANFORD I'M SATISFIED I'VE LEARNED A LOT TODAY RIGHT. THANK YOU.OKAY THAT IS ALL ONE AND ONLY AGENDA ITEM FOR TODAY WITH ENOUGH TO GET READY FOR OUR 3:00. I'VE BEEN RUSHED OUT OF HERE TODAY SO THANK EVERYONE FOR THE ATTENTIVE NATURE AND THE OURSELVES ADJOURNED AT
* This transcript was compiled from uncorrected Closed Captioning.