Sacramento Public Library – October 25, 2018

WILL BE DISTRIBUTED TO FIRST-

GRADERS THIS YEAR

WE ARE SORTING ABOUT 4000 TOMORROW 16,000 BOOKS WILL GO OUT TO FIRST-GRADERS THIS YEAR >> THE OTHER THING WE ARE DOING IS PARTNERING WITH THE LIBRARY ON AUCTION DAY HAVE A LOT OF ENTHUSIASTIC VOLUNTEERS WHO WILL HELP TO MAKE SURE THINGS GO SMOOTHLY AT THE DROP OFF VOTING LOCATIONS NOT THE VOTING CENTERS THERE OTHER PEOPLE FOR THAT I THINK IT IS 15 BRANCHES THAT WE ARE WORKING ON TO PROVIDE VOLUNTEERS TO HELP WITH BALLOTS JUST HELP MAKE THE PROCESS SMOOTHER ANY QUESTIONS? >> NO I WILL SAY MR. — AND I BOTH HAD A CHANCE TO FLIP SOME PANCAKES BLUEBERRY CHOCOLATE AND PLANE ONE SATURDAY MORNING YOUR FRIENDS DID A GREAT JOB >>> I WILL SHARE THAT WITH THEM THANK YOU >> MR. GARRETT A QUITE A FEW OF THEM >>> AS I SAID — I THINK YOU GOT EVERYONE WHO IS NOW ATTENDING WE WILL DO CLOSE SESSION AT THE END WE WILL GO TO THE DIRECTORS REPORT 5.0 >>> IN ADDITION TO MY WRITTEN REPORT WHICH I HOPE DELIGHTED YOU I WANTED TO BRING UP A COUPLE OF OTHER THINGS FIRST OF ALL BOATING — VOTING WE ARBELLA DROP OFF SITES BUT WE FIGURED OUT HOW TO OPEN 15 OF OUR LIBRARY — LIBRARIES THAT ARE NOT BOATERS SERVICE CENTERS FROM 7 AM UNTIL 8 PM

NO EXCUSE FOR NOT VOTING WALNUT GROVE IS A SERVICE CENTER IT IS OPEN FROM 7 AM UNTIL 8 PM ALL BRANCHES AROUND THE SYSTEM THAT ARE NOT BOATERS SERVICE CENTERS WITH THE EXCEPTION OF CORTLAND AND — ARE OPEN 7 AM UNTIL 8 PM THANKS TO STAFF WHO HAVE BEEN CREATED ABOUT THEIR SCHEDULING AS WELL AS THE FRIENDS WHO ARE HELPING US BY VOLUNTEERING ON THOSE DAYS COUPLE OTHER THINGS I WANTED TO MENTION WE NEGLECTED TO PUT THE LETTER FROM PRESIDENT ANITA SCARRY REGARDING THE 50983 YOU WILL FIND IT AT YOUR PLACE ON THE DAIS IF YOU JUST WANT — FURTHER CLARIFICATION FROM HER REMARKS OF LAST MONTH I GET I MISS THE PANCAKE BREAKFAST CAUSE I WAS DOING AN OUTREACH EVENT IN OAK PARK WHICH WAS GRATIFYING BECAUSE ALMOST EVERYBODY HAD A LIBRARY CARD THEY ALL TALKED ABOUT HOW MUCH THEY LOVE THE LIBRARY FINALLY I HAVE TWO MORE ANNOUNCEMENTS WE HAVE A VISITOR FROM FINLAND ONTO THE — SORRY I WAS SO CLOSE I SAID IT RIGHT EARLIER FROM YOU VASCO FINLAND HE IS HERE BECAUSE WE ARE A NATIONAL MODEL FOR COLLECTION TOOL CALLED COLLECTION HQ WE DO IT REALLY WELL HE IS SPENDING A MONTH WITH US WE ARE HAPPY HE IS HERE HE IS PRETTY DELIGHTFUL WE ARE ALSO PROUD TO BE NAMED AT THAT LIBRARY THAT DOES SOMETHING RIGHT ALWAYS MAKES US FEEL GOOD I ESPECIALLY WANT TO POINT OUT THAT — FINLAND ACTUALLY 5 @ú0tU1fye/[í TO DO INTERNATIONAL TRAVEL TO LEARN BEST PRACTICES FROM OTHER PLACES ISN’T THAT A GREAT IDEA? AND THEN THE FINALLY IT SEEMED LIKE A GOOD IDEA FINALLY YOU WILL REMEMBER JULY THE BOARD APPROVED A NEW JOB DESCRIPTION TO ALLOW US TO BUILD OUR NEW HR MANAGER I’M VERY HAPPY TO ANNOUNCE CHRISTOPHER TREW WHO HAS BEEN WITH THE LIBRARY SYSTEM FOR 5 1/2 YEARS IS FINISHING HIS DEGREE IN BUSINESS WITH AN EMPHASIS ON HUMAN RESOURCES HAS BEEN OFFERED AND HAS ACCEPTED THIS OPPORTUNITY DO YOU WANT TO STAND UP PLEASE? PLEASE JOIN ME IN WELCOMING CHRISTOPHER HE IS ONE OF THOSE PEOPLE WHO JUMPS AT EVERY CHANCE TO DO SOMETHING BEFORE YOU GET THE IDEA OUT OF YOUR MOUTH HE HAS FIGURED OUT A SOLUTION OFTEN USING TECHNOLOGY I KNOW WE HAVE SOME FANS OVER HERE OF CHRISTOPHER WHO KNOW HIM FROM HIS TIME AT THE ORANGEVILLE LIBRARY SUPERVISOR THANK YOU FOR COMING TO CELEBRATE THAT WAS GREAT IN THE OTHER QUESTIONS? >> GREAT BANK YOU VERY MUCH WELCOME AND CONGRATULATIONS — THANK YOU LET’S MOVE ON TO EXPLAIN ZERO INFORMATION SIX-POINT ONE MONTHLY FINANCIALS SIX-POINT TO MONTHLY TREASURES SIX-POINT THREE MONTHLY FINANCIAL AND SIX-POINT FOR MONTHLY TREASURES FOR AUGUST ANY QUESTIONS ON THOSE? I HAVE A MOTION BY MR. — A SECOND BY MR. CARPET IN THE COMMENTS ON THIS ONE? I JUST WANT TO COMMENTS PRIESTLY SEVEN POINT FOR LIBRARY DIRECTION — CONTRACT RENEWAL WE ARE HAPPY YOU WILL STILL BE WITH US THIS WAS AN EASY NEGOTIATION VERY MUCH A UNANIMOUS VOTE ON THE BOARD TO RETAIN YOU AND KEEP YOU GOING WE THINK YOU ARE DOING A GREAT JOB THANK YOU VERY MUCH I HAVE A MOTION AND A SECOND ALL THOSE IN FIG JUDGMENT IN FAVOR SIGNIFIED BY I. MOTION CARRIED UNANIMOUSLY >>> LET’S MOVE TO A .0 SUBMENTAL PUBLIC LIBRARY FUND BALANCE WORKSHOP — 8.0 >> THIS REALLY IS NOT THE THREE STOOGES I HOPE LAST MONTH FOR THOSE OF YOU WHO WERE AT THE MEETING WE BEGAN THE DISCUSSION OF THE LIBRARY SIGNIFICANT FUND BALANCE THIS IS BEEN AN ONGOING TOPIC FOR A YEAR WE REALIZED WE WERE NOT READY

W1@ç RIME TIME LAST MONTH WE WENT BACK AND THOUGHT ABOUT WHAT WE NEEDED TO PRESENT TO YOU WE DECIDED FROM OUR PERSPECTIVE IT IS EASIER TO DIGEST A WRITTEN REPORT AND THEN HAVE US DO THE POWERPOINT TO EXPLAIN IT IT IS A LONG STANDING ISSUE A LOT OF IT HAS TO DO WITH THE WAY THE JPA IS WRITTEN A LOT OF THIS HAS BEEN fVwD;2+■ FOR THE 25 YEARS WE HAVE BEEN A JPA. )i a[y BOTH UNDER THE OLD JPA AND THE NEW JPA WE ARE HOPING BETWEEN THE WRITTEN MATERIALS YOU HAVE IN YOUR PACKETS AS WELL AS THE POWERPOINT WE WILL CLARIFY THIS WE ARE NOT ASKING FOR ACTION TODAY WE ARE ASKING FOR DIRECTION WITH THAT THAT I WILL TURN IT OVER TO OUR ESTEEMED COUNSEL.>>> HELLO EVERYONE AT g-L[ WERE A NUMBER OF QUESTIONS THAT CAME UP ABOUT THE OVERALL STRUCTURE OF FINANCE — PART — FINANCIAL PROVISIONS AS WELL AS SPECIFIC QUESTIONS ABOUT HOW THOSE FUNDS CAN BE SPENDS I PROVIDED YOU WITH A MEMO LAST WEEK OUTLINING WE WANTED TO START THE PRESENTATION WITH THE HIGHLIGHTS FROM THAT TO LAY THE FOUNDATION WE WILL START WITH SECTION 11 C- 3 OF THE POWERS AGREEMENT THOSE ARE THE FIRST PRIORITY FOR FUNDING DEFINED AS ALL OPERATING COSTS FOR THE LEVEL OF SERVICE HOURS IDENTIFIED IN THEY CAN BE ADJUSTED BY THE LIBRARY BOARD THE BUDGET YOU JUST IMPROVED — APPROVED INCLUDED — THAT IS INCLUDED IN THE BASE SERVICES CALCULATION AND THEN THE JPA DEFINES OPERATING COST TO INCLUDE PERSONNEL COLLECTIONS UTILITIES JANITORIAL GROUNDS MAINTENANCE SERVICES AND INDIRECT COSTS THE NEXT SECTION — IN THE NEXT SECTION IT HAS SECTION C5 WHICH TALKS ABOUT THE CALCULATIONS FOR ANNUAL SUPPLEMENTAL FUNDING WHICH WAS ONE OF THE QUESTIONS THAT CAME UP LAST MONTH WHAT IS SUPPLEMENTAL FUNDING? UNDER THE JPA STAFF LOOKS AT THE ESTIMATED FUNDING AVAILABLE FOR THE FISCAL YEAR THEY DEDUCT FROM THAT THE DIRECT CAUSE FOR BASE SERVICES THE INDIRECT COSTS FOR BASE SERVICES AND IMPROVEMENT RESERVED THAT IS WHAT YOU ARE LEFT WITH ISN’T — ANNUAL SUBMENTAL FUNDING AMOUNT LOOKING BACK TO SOME OF HISTORICAL RECORDS THERE WAS ANNUAL SUPPLEMENTAL FUNDING DISTRIBUTED ACCORDING TO THE FORMULA IN APPENDIX B. IN 2000 EIGHT — 2008/2009 FISCAL YEAR WAS THE LAST TIME SUPPLEMENTAL FUNDING WAS ALLOCATED GIVEN THAT WE — THE LIBRARY WENT INTO RECESSION YEARS IN TERMS OF WHAT YOU CAN SPEND SUPPLEMENTAL FUNDING ON T8=) ç ‘4Hú JPA” FOR ENHANCED LIBRARY SERVICES OR CAPITAL COSTS RELATED TO FUTURE FACILITIES AND THE JOINT POWERS AGREEMENT DEFINES ENHANCED SERVICES AS ADDITIONAL HOURS THAT EXCEED BASE SERVICES OR YOU CAN SPEND IT ON COLLECTION MATERIALS INDIRECT COST CAPITAL INVESTMENT MAINTENANCE OR REPAIRS OR OTHER LIBRARY PURPOSES ANNUAL SUPPLEMENTAL FUNDING IS NOT THE SAME AS WITH THE LIBRARY STAFF READ FIRST TWO — WHICH ARE DEFINED IN THE JOINT POWERS AGREEMENT IN SECTION 12 D. THERE IS A CERTAIN FORMULA FOR CALCULATING COUNTY FUNDS SO THE PROPERTY TAX IS COLLECTED FROM COUNTY FUNDS SO THAT THEY CAN MAINTAIN THE BUILDING HISTORICALLY BEFORE THE 2007 JPA WAS ADOPTED A CERTAIN PERCENTAGE OF FUNDS WAS SPENT ON MAINTENANCE IN ORDER TO ENSURE THAT WAS ONGOING 2007 GPA HAD A FORMULA FOR CALCULATING — TO ENSURE THOSE FUNDS CONTINUE TO BE DISTRIBUTED CURRENTLY YOU GET $9.40 PER SQUARE FOOT FOR LIBRARY FACILITIES THAT ARE OWNED OR WHERE THERE IS A MAINTENANCE REQUIREMENT AND A LEASE IT’S TO — EACH JURISDICTION IS RESPONSIBLE FOR THE LIBRARY MAINTENANCE RECEIVES THOSE FUNDS THAT IS HOW IT DISPENSE THAT TAKES US TO THE SPECIFIC QUESTIONS THAT WERE ASKED AT

THE LAST MEETING SPECIFICALLY YOU ARE LOOKING AT SECTION 12 B OF THE APA — JPA FOR MY UNDERSTANDING THE QUESTIONS WERE WHAT IS CONSIDERED A FUTURE FACILITY UNDER SECTION 12 B? WHO IS RESPONSIBLE FOR INCREASED COST FOR A FUTURE FACILITY? IN LOOKING AT THIS I’M NOT GOING TO PRETEND THE JOINT POWERS AGREEMENT IS A MODEL — THERE ARE TERMS THAT ARE USED THAT ARE NOT DEFINED THAT ARE MEANT TO MEAN SIMILAR THINGS THAT LEAVES US WITH LEGAL PRINCIPLES OF HOW TO INTERPRET A CONTRACT WHERE YOU NEED TO LOOK AT THE CONTRACT AS A WHOLE AND TRY TO INTERPRET SO THAT YOU ARE CONSISTENT WITH THE OVERALL PURPOSE OF THE AGREEMENT AND YOU DON’T HAVE — FROM INTERPRETING IT YOU DON’T LEAVE OUT ANYTHING OR LEAVE IT TO BE MEANINGLESS IN LOOKING AT SECTION 12 B AND THE OVERALL STRUCTURE OF THE JPA MY OPINION WAS THAT FUTURE FACILITIES INCLUDE FACILITIES THAT ARE MOVED OR EXPANDED PICK BASED ON THE FACT THAT THE OVERALL STRUCTURE OF THE JOINT POWERS AGREEMENT REQUIRES THE NUMBER OF JURISDICTIONS TO PAY FOR CAPITAL COSTS SECTION 12 C REQUIRES JURISDICTIONS TO PAY FOR CAPITAL IMPROVEMENTS AND REPAIRS FOR EXISTING FACILITIES 12 THESE SAYS THAT JURISDICTIONS HAVE TO PAY FOR CAPITAL NEEDS OF FUTURE FACILITIES — 12 B. THERE IS NOT — BASIS TO THINK THAT FOR THE ALTERNATIVE TO HAVING A — PAY FOR CAPITAL INVESTMENTS WOULD BE TO HAVE THE LIBRARY OPERATING BUDGET PAY FOR THOSE INVESTMENTS THAT IS NOT CONSISTENT WITH ANY OF THE OTHER PROVISIONS IN THE LIBRARY AND THE JOINT POWERS AGREEMENT THERE IS NO REASON TO THINK THAT WAS INTENDED SOMEHOW IF YOU HAD A MOVED OR EXPANDED FACILITY THAT WAS SOMEHOW BE ABLE TO TAP INTO THE LIBRARY’S OPERATING BUDGET VERSUS A NEW FACILITY ENCOURAGE JURISDICTIONS TO EXPAND EXISTING FACILITIES AND NEVER CREATE A NEW FACILITY IN AN AREA UNDERSERVED AND THEN IN LOOKING AT SECTION 12 A IT DOES SEEM TO SUGGEST WHERE YOU HAVE A LEASE FACILITY THAT THE OPERATING BUDGET OF THE JPA SHOULD CONTINUE TO PAY THE EXISTING LEASE PAYMENTS EVEN IF A FACILITY IS MOVED OR EXPANDED EVEN THE BASIC NATURE OF A LEASE YOU ARE NEVER GUARANTEED TO BE IN THE SAME SPOT THE OWNER CAN DECIDE THEY WANT TO SELL THE BUILDING THEY CAN INCREASE THE RENTS AND SO IT SEEMS LOGICAL THAT THE LIBRARY WOULD COME TO YOU MAY CONTINUE TO MAKE THOSE PAYMENTS CONSISTENT WITH 12 A THAT SAYS THEY SHOULD CONTINUE TO FIND THESE FACILITY COSTS AS PART OF BASE SERVICES WITH THAT I WILL TURN IT BACK OVER TO — WHO WILL GET BACK INTO THE ISSUE OF THE FUND BALANCE >>> FROM THE NONLEGAL SIDE OF THINGS FUND BALANCE >>> HANG ON ONE SECOND DO YOU WANT TO ASK A QUESTION NOW OR WAIT? >> LET’S TAKE IT A PIECE AT A TIME IF WE CAN GO AHEAD >>>é■ó94O OF THAT WORK THAT YOU DID ON THIS I HAD A SPECIFIC QUESTION AROUND THE 11 A FUNDS UNDERSTANDING IS THAT THE 11 A FUNDS ARE NOT THE SUPPLEMENTAL FUNDING. THEY ARE INTENDED FOR LIBRARIES THAT WERE IN THE JPA WHEN IT BEGAN THE EXISTING LIBRARIES AND THE JPA AND THOSE FUNDS ARE CALCULATED AND ALLOCATED ANNUALLY TO SET ASIDE IN A TRUST SO TO SPEAK OR DISTRIBUTED INTO A TRUST OR INTO A SEPARATE FUND THAT COVERS CAPITAL MAINTENANCE AND REPAIR AND NOT CAPITAL IMPROVEMENT PICK BUT MAINTENANCE AND REFRESH OF THE LIBRARIES THAT WERE EXISTING IS THAT CORRECT? >> YES AND YES MAYBE A LITTLE BIT KNOW WHAT FUND 11 A DOES IT IS A PAYMENT THAT WE MAKE TO THE COUNTY I BELIEVE WE MAKE IT 4 TIMES A YEAR THEY BILL US AT $9.40 PER SQUARE FOOT PER FOR THE NINE BUILDINGS THAT WERE BUILT BY THE COUNTY PRE-JPA THAT INCLUDES FOR EXAMPLE THE — OAKS LIBRARY WHICH IS NOW I BELIEVE IN THE CITY LIMITS OF — OAKS THOSE FACILITIES AND IT COVERS MAJOR REPAIRS

LIKE FOR HVAC OR ROOF OR THINGS LIKE THAT WORKED AT THE COUNTY DOES ON OUR BEHALF WE HAVE A PROCESS JUST AS WE DO THE CITY OF SACRAMENTO THEY TAKE THOSE REPAIRS OUT OF THAT DIFFERENT FACILITIES OVER THE YEARS 11 A HAS PAID FOR SOME OF THOSE KINDS OF THINGS IT IS THE ANNUAL ASSESSMENT TO MAKE SURE THE BUILDINGS ARE FUNCTIONING IT ALSO PAYS FOR KIND OF ROUTINE MAINTENANCE ISSUES AND COUNTY BUILDINGS.>> IT IS NOT INCLUDED IN YOUR SUPPLEMENTAL FUNDING CALCULATIONS IN YOUR GRAPHS YOU PROVIDED.>>> IT IS PART OF THE REGULAR BUDGETING PROCESS.>> IF I CAN ADD — THE COUNTY FUND 11 A. BACK TO THE COUNTY SO WE BUDGET FOR 2019 ONE $.1 MILLION PER THAT MONEY — $1.1 MILLION THAT MONEY A SENSE OF THE COUNTY THEY DEPOSIT TO THE — WE DO NOT SET UP A TRUST OR RETAINED THE MONIES ON OUR FINANCIALS >>> IN ADDITION TO THE COUNTY >>> YOU DON’T SET ASIDE — DON’T DO THAT FOR ALL THE LIBRARIES? YOU DON’T SET THAT NT ASIDE ANNUALLY? >>> WE CALCULATE BASED ON THE FORMULA WE SEND 1.1 MILLION BACK TO THE COUNTY FINANCE AND THEN IN ADDITION TO THAT WE ALSO BUDGET $130,000 THAT WE SEND BACK TO THE CITY OF — AND $40,000 TO THE CITY OF GAULT THESE ARE INTENDED FOR BUILDING MAINTENANCE REPAIRS AND SO FORTH.>>> THANK YOU >>> GREAT JOHNNY >>> MOVING ON TO FUND BALANCE BUT AS I MENTIONED LAST TIME THE BASIC DEFINITION IS THE DIFFERENCE BETWEEN ASSETS AND LIABILITIES WE ALSO — THE FUND BALANCE AMOUNTS ADOPTED BUDGET ANNUALLY WHEN WE ADOPT THE BUDGET IN MAY AND SEPTEMBER AS WELL AS THE — BUDGET REVIEWS THE GOVERNMENT OF COUNTY STANDARDS BOARDS ISSUE STATEMENT NUMBER 54 SEVERAL YEARS BACK THE REQUIREMENT IS THAT WE SEPARATE THE FUND BALANCES INTO FIVE DIFFERENT CATEGORIES DEPENDING ON THE CONSTRAINTS AND USES OF FUNDS WE HAVE WHAT IS KNOWN AS NON- SPENDABLE THESE ARE SUCH AS PERMANENT TRUST OR THINGS OF THAT NATURE RESTRICTED FUND BALANCES ASSIGNED AND UNASSIGNED PICK MAJORITY OF THE FUND BALANCES ARE INDUSTRY RESTRICTED CALIGARI WHICH ARE RESTRICTED FOR THE COUNTY AND CITY BRANCHES THE PURPOSE OF A FUND BALANCE RESERVE POLICY IS TO MAINTAIN REASONABLE LEVEL OF RESERVES TO HELP MITIGATE CURRENT AND FUTURE FINANCIAL RISK FROM BUDGET FOR SHORTFALLS ECONOMIC DOWNTURNS ANTICIPATED EXPENDITURES FOR PAYROLL AND ACCOUNTS PAYABLE AND ALSO LONG-TERM FISCAL SUSTAINABILITY WHAT SHOULD THE LEVEL OF RESERVES BE? THIS IS A PRETTY COMMON QUESTION THERE IS REALLY NO EASY ANSWER TO THIS QUESTION AS YOU SAW ON THE SURVEY IS RANGE FROM — DEPENDING ON THE SIZE OF THE ORGANIZATION AND THE NEEDS OF THE FINANCES ALSO BASED ON A SURVEY WE SURVEYED AGENCIES WHICH ARE HIGHLIGHTED IN YELLOW ON THE SLIDE HERE >> CAN I JUST MENTION WE WANTED TO MAKE SURE YOU SAW THIS THE QUESTION CAME UP LAST MONTH IT IS ON PAGE 89 OF YOUR REPORT AND IN THE POWERPOINT.>>> IF I CAN ON THIS I THINK IT IS AN IMPORTANT POINT IN READING THROUGH A LOT OF THE NARRATIVE WHICH I APPRECIATE WHAT YOU GUYS DID THE TIMING OF YOUR CASH FLOW IS DIFFERENT THAN A LOTS OF THE FOLKS ON THIS LIST WE JUST NEED TO BE COGNIZANT OF THAT THAT IS A LOT OF THE REASON ON THE CASH RESERVE PART BECAUSE OF THE CASH FLOW NOT GETTING MONEY FOR POTENTIALLY SIX MONTHS AT A TIME I JUST WANT TO NOTE TO THAT I DON’T KNOW HOW MANY OF SURVEYED MUNICIPALITIES HAVE

THAT TYPE IT CITIES GET QUARTERLY — WHAT DO WE GET? >> ALMOST AS INDEPENDENT AS THEY ARE — WE ONLY GET –i”FçsóeÄiM.Z COMMON THING >>> THANK YOU >>> DO YOU HAVE A QUESTION? >> YES I WOULD JUST LIKE TO COMMENT ON THAT I ACTUALLY MAYBE I SHOULD WAIT YOU WERE TALKING ABOUT CASH FLOW THAT WAS ONE OF THE QUESTIONS THAT I HAD REGARDING THE DRY PERIOD FUNDING YOU’RE GOING TO GO INTO THAT? >> WHY DON’T YOU GO AHEAD.>>> MY APOLOGIES FINISH YOUR PRESENTATION AND THEN WE WILL GO TO QUESTIONS >> I WILL GO BACK TO THE NARRATIVE WE ARE TALKING SO MUCH ABOUT FACILITIES WE WANT TO GET BACK TO WHY ARE WE HERE IN THE FIRST PLACE AS WELL AS THE METHODOLOGY THAT WE USE TO GET TO THE REPORTS YOU HAVE IN FRONT OF YOU.>> GOING BACK TO THE SURVEY — 14 — RESERVE POLICY ELK GROVE 20% THEY ACTUALLY HAVE 30% BASED ON — THE CITY OF GAULT 25% RANCHO CORDOVA 20% SACRAMENTO WHICH WE I UNDERSTAND ESTABLISH OUR RESERVE POLICY FROM — 20% SUPPLEMENTAL LIBRARY ALSO 10% RESERVE — SACRAMENTO LIBRARY I BELIEVE — ONE AND FROM THE LAST MEETING WE WENT BACK AND SURVEYED THE FULL TRUE LIBRARY JPA’S IN THE STATE OF CALIFORNIA WE RECEIVED THREE RESPONSES — COUNTY LIBRARY SANTA CRUZ LIBRARY AND SONOMA COUNTY LIBRARY IF YOU LOOK AT THE SCHEDULE HERE SANTA CLARA IS PRETTY COMPARABLE TO THE SACRAMENTO LIBRARY PICK IN TERMS OF BUDGET SIZE AND REVENUE SERVICES THE TOTAL OPERATING BUDGET $52.6 MILLION COMPARED TO SACRAMENTO AT ABOUT $46.9 MILLION PRETTY COMPARABLE IN TERMS OF BUDGET SIZE BUT THE NUMBER OF BRANCHES WE SERVE WE HAVE 28 BRANCHES WITH — WHEREAS THEY HAVE 8 BRANCHES WITH TWO BOOK MOBILES WE UNDERSTAND SANTA CLARA COUNTY IS IN A MORE AFFLUENT NEIGHBORHOOD THEY NATURALLY SALES TAX IF THEY DO GET SALES TAX OR PROPERTY TAXES WILL BE COMING IN HIGHER IN TERMS OF PERCENTAGES THE TOTAL RESERVE IS — AND 11% FOR — DEFERRED MAINTENANCE ANOTHER 2% FOR — 4% FOR TECHNOLOGY 42% COMBINED WE ARE LOOKING AT A — PROPOSING 45% WHERE WHEN YOU LOOK AT THE CURRENT RESERVE IT IS CURRENTLY AT 10% THE FIRST COLUMN IN RED PICK WE ARE PROPOSING 45% ONE IS TO ADDRESS COUPLE NEEDS BY THE TIME WE RECEIVED THE FIRST PROPERTY TAX PAYMENTS WE ARE SPENDING APPROXIMATELY $12.5 MILLION IN PAYROLL AND OTHER ACCOUNTS PAYABLE NEEDS WITHOUT THE FUND BALANCES THAT MEANS WE DON’T HAVE ENOUGH MONEY TO COVER PAYROLL AND ALL THE OPERATING NEEDS WE ALSO DID ANOTHER — THE MIDDLE COLUMN IN RED 35% AT ABOUT 16 POINT — $16.4 MILLION IN RESERVE THAT WOULD MEAN TAKING AWAY THE CAPITAL ASSET AND THE FULL MAINTENANCE RESERVE WE WANTED TO GIVE THE BOARD A COUPLE OPTIONS TO LOOK AT 45% MIGHT SEEM HIGH FOR CASH FLOW NEEDS — WE FEEL THAT THAT IS A GOOD — TO SHOOT FOR THESE ARE TARGET AMOUNTS WE UNDERSTAND SOME YEARS THEY MIGHT BE HIGH PROPERTY TAX PAYMENTS IN AN ECONOMIC DOWNTURN WE WOULD HAVE THESE MONIES AVAILABLE TO CONTINUE OPERATIONS ANY QUESTIONS ON THIS SCHEDULE?

WITH THE 45% WHAT WOULD THAT MEAN FOR THE COUNTY? AT 45% THE COUNTIES RESERVE WOULD BE ABOUT $12.3 MILLION TOTAL SO 10% — CASH FLOW 25% 10% FOR CAPITAL ASSET AND MAINTENANCE ON THE CITY SIDE IT WILL BE ABOUT $8.8 MILLION A TOTAL OF $21.1 MILLION PER — AT ABOUT $21.2 MILLION WE DON’T HAVE ANY MONEY SET ASIDE FOR LIABILITIES IF WE DO ESTABLISH THESE RESERVES IT WILL BE CLOSE TO HOW MUCH WE WILL NEED IF WE NEED TO COVER FUTURE — LIABILITIES THE OTHER RESTRICTED FUND BALANCES WE HAVE $21.4 MILLION IN PROJECTED FUND BALANCES — AS OF — IN ABOUT EIGHT MONTHS -45% RESERVE OF $12.3 MILLION OTHER RESTRICTED FUND BALANCES FRIENDS DONATIONS BUT THE SHOW’S TRUST — RESTRICTED OTHER FUND BALANCES SUPPLEMENTAL FUN RESERVE WHICH WE HAVE IN THE STAFF REPORT ABOUT $385 MILLION — WHICH WE GENERATE FROM THE LEASE CELL TOWER — WE HAVE FOR EXISTING CONTRACTS THE PROJECTED FUND BALANCE MINUS THE RESERVE MINUS OTHER RESTRICTED FUND BALANCES LEAVES US AT $7.9 MILLION ON THE COUNTY SIDE WE ALSO RECOMMEND IN THE FUTURE — DISTRIBUTION AS YOU SEE IN THE STAFF REPORT THE CENTRAL DISTRIBUTION IS OFFICE SPACE LEASE AND ALSO THE DIRECT — ESSENTIAL BASED ON THE MEASUREMENTS WE WORK WITH THE REAL ESTATE TEAM ON TRYING TO FIGURE OUT iM%E OFFICE SPACE COST WOULD BE IT COMES OUT TO 21% OF THE CENTRAL — 160,000 SQUARE FEET APPROXIMATELY 34,000 IS STAFF SPACE CONFERENCE ROOMS — THE GARAGE SPACE FOR THE DELIVERY VEHICLE SO BASED ON THAT FORMULA IT COMES OUT TO ABOUT 21% OF CENTRAL THE COULD BE ALLOCATED TO OTHER FUNDS >>> SORRY TO INTERRUPT IS SAYS LEFT ONE TIME TRANSFER IT IS NOT PRIOR YEAR THIS REPRESENTS EIGHT YEARS OF DISTRIBUTION THAT WERE NOT MADE — THAT IS EXPLAINED IN THE STAFF REPORT THAT IS TO WHAT THE $3.2 MILLION REPRESENTS IT IS NOT A ONE-YEAR THING IT IS OVER A PERIOD OF 8 YEARS THAT THAT OCCURRED >> IT IS EIGHT YEARS AT $100,000 PER YEAR THAT IS HOW WE CAME UP WITH THE $3.2 MILLION THAT IS A ONE TIME TRANSFER WE ARE RECOMMENDING THAT WILL BE RECOMMENDING FUTURE BUDGET COSTS THE AUTOMATED HANDLING MACHINES TO PROVIDE EFFICIENCIES WITHIN THE LIBRARY OPERATIONS PUBLIC COPIERS THAT ARE GOING ON 10+ YEARS WILL BE RECOMMENDING TO REPLACE THOSE COPIERS — REPLACEMENTS BOOKMOBILE $500,000 I UNDERSTAND FACILITY AND MARKETING TEAMS ARE LOOKING AT COST ESTIMATES AND ALSO THE POSSIBILITY OF LOOKING AT SMALLER BUT MORE BOOK MOBILES TO BE MORE EFFICIENT MINUS AND THOSE FUTURE BUDGET COSTS WE HAVE APPROXIMATELY $3.9 MILLION IN TRUTH — FUND BALANCE WE EXPLAINED IN THE STAFF REPORT THIS IS MONIES WHERE BASED ON THE BOARDS DIRECTION AND APPROVAL WE COULD USE THIS MONEY TO COVER FUTURE IMPROVEMENTS BUILDING IMPROVEMENTS AND SO FORTH THAT WE MIGHT NEED FOR A

LIBRARY PURPOSES SIMILARLY AT 35% — FOLLOWING THE SAME CONCEPT WE HAVE APPROXIMATELY $6.7 MILLION ON THE COUNTY SIDE WE COULD POTENTIALLY LOOK AT FOUR — BUILDING IMPROVEMENTS LEASE EXPANSION AND THINGS OF THAT NATURE — ASSESS A WELL BACK TO PUT WHAT WE THOUGHT WOULD BE THE WORST CASE SCENARIO BASED ON HISTORY AND THE TREND WE SAW THE LAST 10 YEARS HERE IS A GRAPH OF THE COUNTY FUNDING SOURCES AS YOU SEE IN 2009, AT THE START OF THE RECESSION WE WERE AT ABOUT 20 POINTS $7 MILLION IN PROPERTY TAX REVENUES — 20 POINTS $7 MILLION IT HIT BUT BOTTOM #’,÷ç■çN’w: PROPERTY TAX PAYMENTS ARE GENERALLY — A YEAR OR TWO BEHIND THE TIME THE LOWEST POINT $17.2 MILLION IN REVENUES COMING OUT OF THE RECESSION WE ARE FINALLY AT ABOUT $24.9 MILLION FOR 2019 THE LOWEST POINT IS $17.2 MILLION ON THE CITY SIDE PRETTY MUCH THE SAME TREND FISCAL YEAR 2012 WE HAD OUR LOWEST POINT $11.7 MILLION IN REVENUES THAT IS THE COMBINATION OF — GENERAL FUND CONTRIBUTION AS WELL AS — YOU NOTICE IN THE RED CIRCLE LG[SURE BEAT – WITH THE GENERAL FUND COMPETITION CONTRIBUTION MEASURE X AND MEASURE BE LOOKING AT POTENTIALLY AT ABOUT $14.5 MILLION THE LOWEST POINT — IF AN ECONOMIC RECESSION WERE TO OCCUR SO MUCH OF THE GREAT RECESSION — SUMMER WHAT DOES THAT MEAN WITH THE WORST-CASE SCENARIOS? LOOKING AT REVENUES THE LOWEST POINT FOR THE COUNTY WILL BE ABOUT $17.2 MILLION PROJECTED FIVE-YEAR FORECAST SHOWS — EXPENDITURES COULD BE AS HIGH AS $33.6 MILLION THE BASIC MATH TAKING REVENUES MINUS THE EXPENDITURES WOULD GIVE US A DEFICIT OF ABOUT $16.4 MILLION ON THE COUNTY SIDE IF WE HAD A 45% RESERVE WHICH IS ABOUT $12.3 MILLION WE ARE JUGGLING WITH A $4.1 MILLION STRUCTURAL DEFICIT FOR THAT GIVEN YEAR Ñ[HREVENUES ARE GOING TO SCALE DOWN GRADUALLY PICK IT IS NOT GOING TO BE ONE JOB HOPEFULLY — DROPPED BY HAVING A SUFFICIENT RESERVE THIS WILL ALLOW — >> DOES THIS ASSUME YOU ARE AT YOUR LOWEST POINT OVER EACH OF THOSE FIVE YEARS? >> YES >> SO YOU FLATLINED AT YOUR WORST-CASE SCENARIO? >> YES EXPENDITURES AS WE KNOW THAT IS GENERALLY GOING TO GO UP REVENUE IF IT DROPS+ THE LOWEST POINT AGAIN ON THE CITY SIDE REVENUES COULD BE AS LOW AS $14.5 MILLION EXPENDITURES $25.1 MILLION GIVING US A DEFICIT OF $10.6 MILLION THE SAME CONCEPT A NET DEFICIT OF APPROXIMATELY $1.8 MILLION IF WE HAVE A 45% RESERVE IF WE WENT WITH 35% OBVIOUSLY THE NET DEFICIT WOULD BE HIGHER THAN WHAT WE ARE SHOWING HERE IN SUMMARY AGAIN WHAT CONSTITUTES A PRUDENT LEVEL OF RESERVES FOR EACH — IS DIFFERENT FROM ONE TO ANOTHER 45% THAT WILL HELP US SUSTAIN THE — ESTABLISH A CAPITAL ASSET AND MAINTENANCE RESERVE AND ALSO ESTABLISH A CASH — FOR OPERATIONS KEEP IN MIND THAT THE SECOND — CAPITAL ASSET AND CASH FLOW RESERVES THIS IS A NEW CONCEPT FOR THE LIBRARY WE HAVE ALWAYS HAD THESE FUND BALANCES IT IS JUST IT WAS NOT RESERVED NATURALLY IN GOOD ECONOMIC TIMES THESE ARE THE BEST TIMES

— RESERVES AS WE HAVE FUNDING SOURCES TO PUT INSIDE SO NEXT STEPS WE ARE LOOKING FOR INPUT FROM THE AUTHORITY BOARD HOPEFULLY COME BACK WITH A RECOMMENDATION IN THE FINAL MEETING.>>> DO YOU WANT TO ASK QUESTIONS ABOUT THE POWERPOINT OR SHOULD I HIT A COUPLE HIGHLIGHTS IN THE NARRATIVE? >> HIT YOUR HIGHLIGHTS >> SO AGAIN WE THOUGHTS HAVING THE WORDS IN FRONT OF US ACCOMPLISHES TWO THINGS THE NARRATIVE MAKES IT EASY TO UNDERSTAND FOR ME PERSONALLY IT IS A COMPLEX ISSUE THE NONFINANCIAL PERSON IS JOHNNY AND I DISCUSSED THE OTHER DAY HE HAS A DEGREE IN THE — AND ACCOUNTING I HAVE A DEGREE IN POLITICAL SCIENCE AND A LIBRARY DEGREE I’M TRYING TO MAKE SENSE OF ALL OF THIS FROM MY PERSPECTIVE FROM THE CHAIR WHERE I SIT I THINK WE WERE PRETTY CLEAR IN WHAT THE ISSUES WERE PICKED WE DID OUR BEST TO LAY THEM OUT I WANT TO MAKE — THERE IS ONE CORRECTION THAT WE NEED TO MAKE AT A COUPLE OF OTHER POINTS I WOULD LIKE TO MAKE THAT IS THAT IN ATTACHMENT C PAGE 93 THE REFERENCE FISCAL YEAR 1415 THAT SHOULD ACTUALLY BE 13/14 THAT WAS A TYPO ON OUR PART GOING BACK TO THE WRITTEN NARRATIVE ITSELF WE LOOKED — AS YOU KNOW WE LOOKED AT A NUMBER OF DIFFERENT ISSUES INCLUDING DEFERRED MAINTENANCE WHICH IS A REAL ISSUE FOR ALL OF US HAVE PUBLIC BUILDINGS THE STAFF HAVE VERY STRONG FEELINGS ABOUT HAVING FUNDS SET ASIDE THAT ALLOW US TO DO DEFERRED MAINTENANCE OVER AND ABOVE WHAT WE HAVE FOR THROUGH FUND 11 A. WE ALSO HAVE A PHILOSOPHY ABOUT DRIVE PERIOD FINANCING IF WE DON’T NEED IT WE WOULD RATHER NOT GO DOWN THAT ROAD IF POSSIBLE — DRIVE PERIOD THE OTHER ISSUES THAT THE BOARD HAS TO DECIDE IS THE JPA THIS IS WHERE OUR ATTORNEY COMES BACK INTO THE PICTURE SUPPLEMENTAL FUNDING HAS BEEN CALCULATED PER THE JPA BASED ON BUDGET NOT BASED ON ACTUAL SPIRIT AND SO THAT IS A DECISION THE BOARD HAS TO MAKE DO WE CHANGE THAT FORMULA? THAT CAN BE DONE I THINK YOU MENTIONED THROUGH THE ATTACHMENT A IN YOUR REPORT THAT BECOMES THAT FUND THAT ALLOWS THE JURISDICTIONS TO WORK WITH LIBRARY STAFF ON WHAT DO WE NEED TO DO THIS YEAR SO THERE IS MONEY AND ELK GROVE THERE IS MONEY IN CITRUS HEIGHTS WE WANT TO REFRESH THE BUILDING IS THAT HOW WE USE — WE ARE RECOMMENDING OTHER USES FOR CITRUS HEIGHTS WHERE I THINK — LET ME MAKE SURE I HAVE THE RIGHT PAGE IF YOU MOVE TO PAGE 93 WHICH IS ATTACHMENT C. THE VERY BOTTOM OF THE PAGE THERE IS A TABLE THAT TALKS ABOUT — THAT MODELS WHAT SUPPLEMENTAL FUNDING — WHAT THE FACTOR IS THAT AS PER THE JPA WE FACTOR THE FUNDS BASED ON THAT AND WHAT THE ALLOCATIONS WOULD BE FOR EACH JURISDICTION AND FINALLY IN THE LAST COLUMN WHAT IS FINALLY AVAILABLE? THERE IS A DIFFERENCE BETWEEN RESTRICTED AND UNRESTRICTED IF YOU LOOK AT THE LAST COLUMN — AVAILABLE FOR ALLOCATION TO THE VARIOUS JURISDICTIONS IS ABOUT $3.8 MILLION THAT MODELS WHAT WE INCLUDED IN THE POWERPOINT ATTACHMENT C IN AND OF ITSELF IS BELIEVED THE ANSWERS TO THE QUESTIONS WE TOOK TWO STRATEGIES THE WRITTEN REPORT THE NARRATIVE INCLUDES ANSWERS TO SOME OF THE QUESTIONS THAT DIRECTOR FROST SENT TO US THAT ARE RELEVANT TO THE DISCUSSION OF HAVING A RESERVE FUND BALANCE WHY ARE WE HERE IN THE FIRST PLACE? WHY ARE WE TALKING ABOUT THIS? THOSE QUESTIONS OF THE NARRATIVE REPORT ANY QUESTIONS WE FELT ALONG IN A SEPARATE DOCUMENT ARE ANSWERED IN ATTACHMENT C. THERE WAS A QUESTION FROM DIRECTOR BUDGET A QUESTION FROM DIRECTED PETER’S PICK AND SEVEN QUESTIONS FROM DIRECTOR FROST THAT WE ANSWEREDvq5″ñ THROUGHOU NARRATIVE AS WELL AS BY SAYING THIS IS IN THE STAFF REPORT

SO WE TRY TO LAY IT OUT AS CLEARLY AS POSSIBLE FOR YOU I HOPE IT WORK THEN WE ANSWERED HER QUESTION SPECIFICALLY IN THE REST OF THAT ATTACHMENT IT IS A LITTLE BIT COMPLICATED ACTUALLY WE MADE IT COMPLICATED TO TRY TO MAKE IT SIMPLER IF THAT MAKES SENSE.>> OKAY THANK YOU WE APPRECIATE IT I KNOW IT HAS BEEN A LOT OF WORK WHAT YOU HAVE DONE IS LAID IT OUT HE CLEARLY LET’S GO TO COMMENTS — LAID IT OUT PRETTY CLEARLY >>> TOO QUICK QUESTIONS AND MAKE COMMENTS ON YOUR RESERVE POLICY WHEN YOU WERE GOING THROUGH THE PRESENTATION THE 3.2 MILLION TRANSFER CENTER DISTRIBUTION I THINK YOU SAID IT LAST TIME I KNOW THAT — FOR MANY YEARS WERE PUTTING UP 400,000 INTO THE ANNUAL BUDGET >> YES >> SECOND IT IS A COMMON WHEN YOU SHOWED $290,000 FOR THE BOOKMOBILE I WOULD REMIND YOU YOU HAVE SEVERAL MEMBERS WHO SAID — SITS ON THE RT BOARD THEY OCCASIONALLY GET RID OF BUSES YOU MIGHT WANT TO CHECK TO SEE IF THERE ARE ANY DEALS >> I HAVE AN IDEA FOR A TECH MOBILE >>> WE CAN TALK >>> RT IS REPLACING A LOT OF BUSES ELECTRIC.>>> NOT NECESSARILY FREE BUT THEY ARE CHEAPER >> THE COST OF THE BOOKMOBILE FULLY TRICKED OUT HIS 500,000 290,000 IS THE COUNTY SHARE 210,000 IS THE CITY SHARE >>> GETTING TO THE RESERVE POLICY YOU SHOWED WHERE CITIES AND JURISDICTIONS — CITRUS HEIGHTS IS THAT 15% THREE YEARS AGO WE WERE AT 130% WE RODE A CHECK $22 MILLION FOR A NEW CITY HALL $8 MILLION CASH FOR WORLD WORK WE ARE HISTORICALLY A CITY THAT GOES ON THE HIGH SIDE OF RESERVE SPEC YOU HAVE TO REMEMBER WE GET NO PROPERTY TAXES UNTIL 2022 NOT THAT I WANT TO BRAG WE ALSO HAVE NO DEBT AND NO UNFUNDED LIABILITY WE RECENTLY SET A POLICY IN CITRUS HEIGHTS FOR OUR RESERVES BETWEEN 35-50% MINIMUM 35% MAXIMUM PERCENT 50 MYSELF BEING A BANKER I KNOW 130 WAS TOO MUCH BUT 15 SCARES ME I FEEL NAKED RIGHT NOW I WOULD JUST SAY I’M ALWAYS GOING TO AIR ON THE SIDE OF MORE VERSUS LESS WHERE WE LAND IS FINE I PERSONALLY BELIEVE 10% OF THE LIBRARIES AT NOW IS WAY TOO LOW >>> I HAD A COUPLE QUESTIONS ON THE — I GUESS FIRST I WANT TO THANK YOU FOR EVERYTHING YOU DID TO HELP CLARIFY. THERE WERE SOME QUESTIONS I STILL HAD REGARDING THE REPORT ONE QUESTION I HAD WAS REGARDING THE CENTRAL LIBRARY DISTRIBUTION. I KNOW IN YOUR STAFF REPORT YOU LAID OUT YOUR PHILOSOPHY AND WHAT I WAS LOOKING FOR WAS A BREAKDOWN OF HOW YOU CAME TO THAT $400,000 NUMBER WHAT WERE THE — AND EXCEL SPREADSHEET WHAT ARE THE COST? HOW DID YOU — YOU GAVE ME A PHILOSOPHY I WAS LOOKING FOR ACTUALU÷ DESCRIPTION OF THE BREAKDOWN OF THOSE IN SHARED SERVICES AND COSTS AND WHAT WAS THE BASIS FOR DETERMINING THAT $400,000?>> I KNOW YOU DON’T HAVE THAT TODAY I WAS WONDERING IF WE CAN GET THAT >>> I GUESS I THOUGHT IT WAS IN THE REPORT WE LITERALLY LOOKED AT THE SPACE IN THE BUILDING THAT IS USED FOR CENTRALIZED FUNCTIONS >> MAYBE IF YOU GAVE IT TO ME IN A ONCE — A ONE PAGE SPREADSHEET SO I CAN SEE A >> I ACTUALLY I WILL TELL YOU I REMEMBER WE HAD THIS CONVERSATION AND I MEANT TO DO IT PICK AND I APOLOGIZE I FORGOT >> THAT’S ALL RIGHT ON THE RESERVE POLICY — ON THIS CHART ON PAGE 93 YOU ARE SHOWING THE ALLOCATION FOR THE SUPPLEMENTAL FUNDING BY MEMBER AGENCY AND THEN YOU SUBTRACT OUT $11,000,900 I WONDER EXACTLY WHAT THAT REPRESENTS? IS THAT THE UNFUNDED LIABILITY FOR — WHAT DOES THAT REPRESENT? >> A FEW THINGS JOHNNY HAS A DETAIL AT HIS FINGERTIPS PART OF IT IS WE STILL HAVE A RETIREE HEALTH CONTRIBUTION

IT IS NO LONGER FOR — WE ELIMINATED IT FOR STAFF HIRED IN 2011 AND BEYOND IT IS STILL ON THE BOOKS FOR STAFF WHO RETIRES EARLIER THAT PART OF IT — PART OF IT IS OUR PERS OBLIGATION PART OF IT IS OUR COMPENSATED ABSENCES WHEN PEOPLE LEAVE >> DO YOU MEAN YOU’RE PERS UNFUNDED? HOW MUCH ARE YOU FUNDED LIKE 80 OR 90%? >> WE ARE AT ABOUT 80% THE $11.9 MILLION IS THE COUNTY’S PORTION OF THE UNFUNDED LIABILITY WHICH IS $6.5 MILLION OTHER BENEFITS THAT IS AT FOUR — $4.4 MILLION COMPENSATED ABSENCES AT ABOUT $1 MILLION PER THAT IS THE BREAKDOWN OF THE $11.9 BILLION UNFUNDED LIABILITIES ON THE CITY SIDE IT IS $9.3 MILLION >> I WAS LOOKING AT THAT I’M THINKING ABOUT YOUR RESERVE POLICY AND YOUR COMPARISON BETWEEN THE OTHER AGENCIES THE SUBMITTED THEIR RESERVE POLICIES CASH FLOW IS NOT ONE THAT ANY OTHER AGENCY RESERVES FOR THAT IS NUMBER ONE.>> I’VE NEVER HEARD OF ANYONE RESERVING THE FULL AMOUNT OF THEIR UNFUNDED LIABILITY AS A CONCERNED I SEE PROPERTY TAXES IS A PRETTY STABLE INCOME YOU KNOW IT WILL COME IN WHEN WE ARE LOOKING AT THIS GRAPH EVEN IN THE WORST OF TIMES THERE WAS STILL MONEY IN RESERVE AND SO I’M CURIOUS ABOUT — I THINK I QUESTION WHETHER OR NOT WE NEED TO SET ASIDE MILLIONS OF DOLLARS IN RESERVE TO COVER UNFUNDED JUST IN CASE THE LIBRARY AUTHORITY DECIDES TO CLOSE DOWN SO THAT WE CAN PAY FOR RETIREMENT. WHEN WE — THIS IS MONEY THAT IS TAKEN OUT OF SUPPLEMENTAL FUNDING THAT COULD BE PUT TO WORK IN OUR LIBRARIES THAT IS MONEY THAT APPEARS TO BE DIRECTLY SUBTRACTED FROM EACH OF THE JURISDICTIONS THAT HAVE DREAMS THAT MAY BE COULD BE MAKING THINGS HAPPEN I WANT TO MAKE THAT COMMENT AND I WANTED TO SAY — PUT IN ANOTHER COMMENTS REGARDING THE DRY PERIOD FINANCING I KNOW YOU DON’T LIKE IT — I RESPECT THAT BUT I WOULD LIKE TO SEE A CASH FLOW ANALYSIS THAT SHOWS WHAT IS YOUR CASH FLOW REQUIREMENTS? HOW MUCH WOULD THAT DRY PERIOD FINANCING COST? COST YOU MONEY TO HAVE $11.7 MILLION IN THE BANK NOT BEING USED AND EARNING INTEREST THAT MIGHT COST MORE THAN THE DRY PERIOD FINANCING AT THE SAME TIME I WANTED TO REFER BACK TO THE JPA AGREEMENT IN THE JPA AGREEMENT IT TALKS ABOUT THE FINANCE ADVISORY COMMITTEE I KNOW IN YOUR REPORT SOMEWHERE THERE IS A COMMENTS REGARDING THE FINANCE ADVISORY COMMITTEE ALSO KNOWN AS THE BUDGET ADVISORY COMMITTEE I’M TRYING TO REMEMBER — BUDGET ADVISORY COMMITTEE I THINK THEY ARE TWO DIFFERENT THINGS THE FINANCE ADVISORY COMMITTEE ACCORDING TO THE JPA AGREEMENT IS AN ADVISORY COMMITTEE THAT IS PUT TOGETHER AT THE STAFF LEVEL HAS A REPRESENTATIVE FROM EVERY SINGLE JURISDICTION AT THE STAFF LEVEL PEOPLE THAT WORK IN FINANCE AND THEY DID WORK IN 2007/2008 TO PUT TOGETHER THE RECOMMENDATIONS WHICH I READ ALL OF THEM IT LOOKS LIKE THEY HAVEN’T MET SINCE TO MY KNOWLEDGE THE COUNTY HAS STATED THEY HAVEN’T MET I WONDER — I WOULD LIKE TO SEE US BRING THE FINANCE ADVISORY COMMITTEE AND TO THIS CONVERSATION TO LOOK AT — I HAVE SEVERAL QUESTIONS AROUND IS THIS REALLY THE WAY — THE BEST WAY WE CAN DO IT IF WE LOOK MAYBE THERE IS A BETTER WAY IF SOMETHING THAT WILL SAVE US

SOME MONEY AND MAYBE THEY WILL HAVE IDEAS WE DID NOT THINK OF THE OTHER THING I LIKE ABOUT DOING IT ACCORDING TO THE JPA AGREEMENT IS THAT WE ARE ALL REPRESENTED ON THE FINANCE ADVISORY COMMITTEE THAT IS HELPING US FROM THE STAFF LEVEL WE HAVE SOMEONE FROM EVERY JURISDICTION IN THE CONVERSATION I THINK THEY WORKED HARD ON IT THEY ARE SUPPOSED TO BE MEETING — THEY HAVEN’T BEEN MEETING FOR YEARS I THINK IT WOULD NOT BE A BAD THING TO BRING THEM BACK INTO ACCORDING TO THE JPA AGREEMENT TO BRING THEM INTO THIS CONVERSATION >>> I’M GOING TO TURN IT OVER TO — SHE HELPED US WITH SOME OF THIS BUT SHE CAN CLARIFY ONE OF YOUR EARLIER QUESTIONS >> TO MY UNDERSTANDING OF THE BUDGET AUDIT COMMITTEE’S STAFF IS INVITED I KNOW CITIES — >> I’M TALKING ABOUT THE FINANCE ADVISOR THE BUDGET AUDIT COMMITTEE’S MEMBERS OF THE BOARD THOSE ARE NOT — THAT IS NOT IS WHAT IS THE BELATED IN THE JPA AGREEMENT >> I UNDERSTAND — SO WE HAD THE FINANCE — ADVISORY COMMITTEE MY UNDERSTANDING I THINK YOU WERE REFERRING — MY MEMO I SAID THE BUDGET AUDIT COMMITTEE I SAID THAT BASED ON MY UNDERSTANDING THE STAFF IS ALSO INVITED TO THE BUDGET AUDIT COMMITTEE I KNOW CITY STAFF ANTICIPATES AND AUDIT COMMITTEE MEETINGS I KNOW THE BOARD IS ALSO PARTICIPATES I THINK STAFF IS INVITED I’M SORRY IF I CREATED — I WANTED TO APOLOGIZE.>> I WISH — I WANTED TO CLARIFY THAT I THINK AT THE STAFF LEVEL WE HAVE EXPERT THEY KNOW THEIR JURISDICTION THEY KNOW THEIR NEEDS AND THEIR DREAMS THEY BRING — THEY CAN ADVISE US THEY MIGHT KNOW KNOW SOMETHING WE DON’T KNOW THEY MIGHT UNDERSTAND SOMETHING IN A WAY — WE AT THE BOARD LEVEL DON’T AS FAR AS I KNOW THIS JPA AGREEMENT HAS NOT BEEN UPDATED OR REVISED THAT IS ACCORDING TO THE CONTRACT IT IS NOT UNREASONABLE TO BRING THEM BACK INTO THIS CONVERSATION — TO START THAT BACKUP >>> THAT IS SOMETHING I WOULD LIKE TO SEE SO THAT WE CAN WORK THROUGH THE RESERVE POLICY IS IMPORTANT TO ME WHAT HAPPENS WHEN YOU ARE BASICALLY PULLING OUT ALL OF THOSE FUNDS FOR RESERVES THAT IS MONEY THAT YOU ARE TAKING AWAY THE — THAT COULD HAVE BEEN SUPPLEMENTAL FUNDING THE DIFFERENT JURISDICTIONS ACCORDING TO THE JPA AGREEMENT CAN DECIDE HOW THEY WANT TO SPEND THAT THEY CAN UPGRADE THE LIBRARY THEY CAN SAVE IT THEY CAN PUT IT TOWARD DIFFERENT THINGS THEY HAVE TO DO IT UNDER THE DIRECTION OF THE LIBRARY AUTHORITY WITH THE SUPPORT OF THE LIBRARY BOARD AND AUTHORITY IT IS NOT LIKE THEY ARE TAKING THE MONEY AND RUNNING WITH IT IT IS FOR THE BETTERMENT OF THE AUTHORITY IT DOES CLARIFY WHO GETS — IT GIVES US A BETTER IDEA OF WHAT WE HAVE TO WORK WITH SO WE KNOW WHERE WE ARE GOING AND WHAT WE HAVE TO WORK WITH BASICALLY AND I AM NOT CONVINCED THE DRY PERIOD FINANCING MIGHT SAVE US MONEY YOU ARE WORRIED ABOUT THE 7% INTEREST BUT ON A SMALL AMOUNT OF MONEY 7% MIGHT BE LESS WHAT YOU ARE LOSING BY HAVING $11.7 MILLION SITTING IN A BANK THAT COULD BE PUT TO USE IN OUR LIBRARY SYSTEM I — I BELIEVE IN A CONSERVATIVE RESERVE I’M NOT SURE 45 — I’M NOT SURE 35 OR 45% IS THE RIGHT NUMBER I WOULD LIKE TO RECEIVE SOME ADVICE ON THAT SO THAT I THINK — I DID HAVE ONE OTHER QUESTION REGARDING THE $5 MILLION A YEAR AND A HALF AGO WE STARTED THE CONVERSATION ABOUT WE HAVE ALL THIS MONEY IN THE BANK AND I REMEMBER OPENING THAT CONVERSATION. NOW WE ALLOCATED $5 MILLION TO I THINK CITRUS HEIGHTS AND RANCHO AND A COUPLE OF HER ENTITIES AND THE $3.2 MILLION TO SACRAMENTO CITY

THE QUESTION I HAVE IS WITH THOSE 11 A — DO WE TAKE THAT MONEY OUT OF 11 A FUNDS FOR THE REFURBISH OR WAS THAT — WERE THOSE FUNDS THE $5 MILLION SUBTRACTED FROM THE SUPPLEMENTAL FUNDING OR WAS IT TAKING IN OUT OF THE 11 A FUND >> 11 A REALLY ISN’T FOR FOR REFURBISHMENT I’M LOOKING AT JARED HE MANAGES OUR FACILITIES TEAM 11 A COVERS THINGS LIKE SOMEBODY PUNCHES OUT ALL THE LIGHTS IN THE PARKING LOT OF THE CARMICHAEL LIBRARY THE COUNTY COMES OUT AND FIXES IT THEY CHARGE AS THAT IS WHAT 11 A IS FOR IT IS NOT TO LAY DOWN NEW CARPET ON THE CARPET WEARS OUT IT REALLY IS — THE HVAC SYSTEM THE HVAC SYSTEM AT THE RANCHO CORDOVA LIBRARY PICK IT IS THE ROOF AT THE RANCHO CORDOVA LIBRARY IT IS THE HVAC SYSTEM AT THE ELK GROVE LIBRARY WHICH CONTINUES TO GIVE US HEARTBURN >> PRETTY SOON WE WILL BE HOLDING HANDS AND SINGING >> GOES TO THE GENERAL MAINTENANCE IT IS THE TOILETS THE HVAC ALL OF THOSE COMPONENTS IF A WINDOW BREAKS OR WE HAVE LIGHTS GO OUT THAT IS THE WHOLE FUNCTION OF THAT I CALL IT THE CORE FOR MAINTENANCE FOR THOSE BUILDINGS.>>> OKAY.>> THE COUNTY COULD GIVE YOU A DETAILED SPREADSHEET OF ALL THE EXPENDITURES UNDERFUND 11 A FROM THE LIBRARY.>> I GUESS — MIGHT BE A LITTLE BIT CONFUSED ABOUT I GUESS THOSE ARE THE EXISTING LIBRARIES THAT GET REFURBISHED BY THE AUTHORITY THAT IS NOT PART OF THE SUPPLEMENTAL FUNDING THAT IS JUST FUNDED BY THE LIBRARY AUTHORITY IS A BASE COST THAT IS SUBTRACTED OUT FOR SUPPLEMENTAL FUNDING IS CALCULATED? >> I WANT TO GO BACK — THE ISSUE IS THE JPA DESCRIBES HOW WE ARE SUPPOSED TO CALCULATE SUPPLEMENTAL FUNDING THAT IS ONE OF YOUR BIG ISSUES TO DECIDE BECAUSE IT IS BASED ON BUDGET WHAT STAFF DID TRADITIONALLY FOR THE LAST SINCE THE NEW JPA PROBABLY SINCE 2000 — 2007 BASED ON BUDGET WE DID NOT HAVE A SURPLUS IT WENT INTO THE FUNDS BALANCE THAT WAS WHAT THE –>> IT IS BASICALLY BASED ON GROSS REVENUE BECAUSE THERE IS A CALCULATION IN APPENDIX B THAT SHOWS IT IS THE PROPERTY TAX AND THE CIRCULATION IN THE SERVICE AREA POPULATION IT IS BASED — THERE IS A SPECIFIC — IT IS NOT BASED ON THE BUDGET WE MAKE IT IS BASED ON REVENUES THAT WE GET FROM PROPERTY TAXES >> JUST TO CLARIFY IN APPENDIX B IT SHOWS YOU HOW TO ALLOCATE FUNDING TO THE JURISDICTIONS IF THERE IS SUPPLEMENTAL FUNDING THAT IS NOT HOW TO CALCULATE SUPPLEMENTAL FUNDING ONCE YOU HAVE ESTABLISHED THERE IS SUPPLEMENTAL FUNDING APPENDIX B AS A FORMULA TO DISTRIBUTE ITS OF THE JURISDICTIONS UNDER THE PROVISIONS IN SECTION 11 OF THE JPA IS SAID YOU TAKE THE AMOUNT OF ANTICIPATED TAX REVENUE FROM THE COUNTY SIDE DEDUCT FROM IT THE COST FOR BASIC SERVICES DEDUCT FROM IT THE COST FOR INDIRECT COST OF THESE SERVICES AND THEN A REASONABLE RESERVE THAT LEAVES YOU WITH SUPPLEMENTAL FUNDING IT IS BASED ON AT THE BEGINNING OF THE BUDGET YOU DO THE BUDGETING PROCESS THERE IS NO PROVISION IN THE JPA TO TRUE THAT UP AT THE END OF THE BUDGET YEAR EVEN BEFORE THE JPA WAS CHANGED IN 2007 BASED ON THE BUDGET RECORDS I LOOKED AT THERE WAS A FUND BALANCE THAT WAS HELD THE MONEY — EVEN IN 2008/2009 AFTER THE FINANCE ADVISORY COMMITTEE GREETED THIS FORMULA THERE WAS THE DISCUSSION OF THE JPA ABOUT MOVING MONEY INTO THE SUPPLEMENTAL FUND — FUNDING ACCOUNTS THE FUND BALANCE LEFT AT THE END OF 2008/2009 WAS TREATED AS FUND BALANCE AND NOT AS SUPPLEMENTAL FUNDING IT WAS RETAINED IN THE FUND BALANCE

THERE ARE TWO SEPARATE POTS BUT — THE ONE DISCUSSED THE JPA AND THE FUND BALANCE IS JUST WHAT — WHERE THAT MONEY HAS ALWAYS GONE IT WASN’T BASED ON TRUED UP NUMBERS IT WAS BASED ON THE ANTICIPATED REVENUES >> SO THIS CHART THAT IS HERE THE SUPPLEMENT — YOU SAID THIS IS AVAILABLE RIGHT NOW IF THE BOARD WANTED TO ALLOW US TO USE SOME OF THIS TO EXPAND ORANGEVILLE LIBRARY THE $2.2 MILLION IS AVAILABLE HOW DID YOU — WHAT NUMBER DID YOU CALCULATE THAT ON? DID YOU BASE IT ON WHAT WAS LEFT IN THE FUND? >> THAT WAS IN RESPONSE TO YOUR QUESTION WHICH WAS IF YOU TOOK THE FUND BALANCE AND YOU DEDUCTED OUT 10% FURTHER WHAT WOULD BE LEFT THAT COULD BE CONSIDERED SUPPLEMENTAL FUNDING? THAT — RIGHT NOW THAT IS TECHNICALLY FUND BALANCE IF THE FINANCE ADVISORY COMMITTEE WANTED TO MEET AND SAY WE THINK — THE JPA DELEGATES A CERTAIN AMOUNT OF FLEXIBILITY TO THE BOARD AND TO THE FINANCE ADVISORY COMMITTEE THE FINANCE ADVISORY COMMITTEE COULD MEET AND SAY HERE IS WHAT THE MONEY THAT IS LEFT IN THE FUND BALANCE THIS AMOUNT EVEN THOUGH IT IS FUND BALANCE WE THINK IT SHOULD BE SUPPLEMENTAL FUNDING LET’S DO A TRUE UP NOW AND ALLOCATE THOSE FUNDS AS SUPPLEMENTAL FUNDING RIGHT NOW THEY ARE NOT TECHNICALLY SUPPLEMENTAL FUNDING THAT WOULD REQUIRE A MEETING AND THE BOARD’S APPROVAL >> CHANGING DIRECTION >>> I THINK HAVING EVERY JURISDICTION — I THINK HAVING — BRINGING THE FINANCE — FINAIóñY:$N+m$O■vUE+çInçTTEEEVld INTO THE CONVERSATION TO HELP ANSWER SOME OF THESE QUESTIONS AND GIVE US PERSPECTIVE WOULD BE HELPFUL FOR ME I KNOW THERE WAS I GUESS MAYBE PEOPLE DID THINGS DIFFERENT DURING THE ECONOMIC DOWNTURN I’M TRYING TO FIGURE OUT WHAT ARE THE RESOURCES THAT WE HAVE TO BE ABLE TO GET IN ORANGEVILLE LIBRARY AND MOVING FORWARD HOW CAN I UNDERSTAND THIS JPA? AND HOW IT FUNCTIONS AND NO WE ARE ALL REPRESENTED EQUALLY THAT IS REALLY WHAT I AM TRYING TO DO.>> UNDERSTOOD >>> LET ME SEE IF I CAN MAKE A SUGGESTION WE HAVE9óY+ — WE HAVE A COUPLE THINGS GOING ON YOU NEED SOME DIRECTION I THINK WHAT WE COULD DO — A GOOD POINT ABOUT THE FINANCIAL ADVISORY COMMITTEE WE REALLY HAVEN’T DONE THAT I DON’T HAVE ANY PROBLEM IF WE WANT TO CONVENE THE BUDGET COMMITTEE IF WE CAN AND I DON’T KNOW IF WE NEED TO COME BACK TO THE SPORT IF WE CAN COMBINE THE BUDGET COMMITTEE WITH THE FINANCES — FINANCE ADVISORY COMMITTEE IT IS GOOD TO HAVE ALL THE JURISDICTIONS REPRESENTED AT THE STAFF LEVEL WE CANNOT HAVE ALL THE JURISDICTIONS REPRESENTED AT THE ELECTED LEVEL WE ARE DOING — I THINK MOVING FORWARD IF WE CAN DO THAT INVITE THE FINANCE PEOPLE FROM THE JURISDICTIONS TO COME TO THAT MEETING WE NEED TO SPLIT THE MEETING AND FIGURE OUT HOW TO DO IT SOME OF THESE QUESTIONS CAN BE ANSWERED THERE >> SURE >> THE OTHER IS A POLICY QUESTION WE WILL GET TO IN A MINUTE.>> I WILL BE BRIEF A COUPLE — WANTED TO ASK ABOUT TWO DIFFERENT THINGS ONE BEING — THE POINT THAT DIRECTOR FROST WAS MAKING BECAUSE YOU HAVEN’T DONE A CALCULATION AROUND THE SUPPLEMENTAL FUNDING AMOUNT — SINCE 14 OR 15 >> IT IS 13 OR 14 >> MY POINT BEING — YOU HAVEN’T HAD DIRECTION RECOGNIZING THAT WITH THAT DIRECTION THAT IS WHAT THE BUDGET REFLECTED IT SEEMS TO ME AT A MINIMUM EACH YEAR WE COULD KNOW WHAT

THAT AMOUNT WAS FOR EITHER DRAWN OUT THE DISCUSSION OF THE BUDGET PRESENTATION IT IS IN THE FUND BALANCE THIS WAS VERY HELPFUL THAT WOULD ALLOW FOR THAT CONVERSATION TO OCCUR ANNUALLY AT LEAST TO KNOW ANY GIVEN YEAR BASED UPON PROJECTIONS AND WHERE WE ARE WITH THE CASH FLOW AND THE OTHER FUNDS IN RESERVE HOLDINGS IT WOULD GIVE — IT WOULD BE A FLAG ANY BOARD MEMBER WOULD OBVIOUSLY ASK ABOUT IT THIS IS REALLY — FOR THE YEARS IS THAT ON THIS BOARD THIS HAS BEEN HELPFUL TO KNOW WHAT IS HELD TO ACCOMMODATE WHEN THERE IS A DRY PERIOD AND MEETING OTHER OBLIGATIONS ONE SUGGESTION IS MAYBE — I WANT TO ASK ALONG THOSE LINES BUT THE AMOUNT RESERVED IN 2008/ 2009 NEVER ALLOCATED THE RISE OF THE FUND BALANCE? >> IT IS RESTRICTED FUND SMITH IT IS A SEPARATE FUND >> THE FINANCE ADVISORY COMMITTEE DID MEET THEY DEVELOP THAT FORMULA THOSE FUNDS THAT WERE ALLOCATED ARE HELD >> ARE THEY FROZEN? >> THEY ARE JUST BEING HELD >>> FOR WHAT PURPOSES? >> DETERMINED BY THE JURISDICTIONS WHO ARE THE HOLDERS.>> THE OF THE JURISDICTIONS KNOW THEY ARE AVAILABLE TO BE DRAWN ON?>> I’M SORRY >> THE MONEY IN THE SUPPLEMENTAL FUNDING BEING HELD IN TRUST I GUESS WHEN DO YOU REACH IN HOW DOES THE JURISDICTION REACH IN THERE AND ASKED FOR THOSE MONIES? >> WE CAN REACH OUT — WE ACTUALLY MET WITH ALL OF THE JURISDICTIONS IN FISCAL YEAR 1011 — LESS JUST — I WILL TELL YOU BECAUSE I DID NOT DO THE DETAIL OF THE BUDGET FULL DISCLOSURE YOU HAVE ALREADY RENEWED MY CONTRACT >>> BUT WE ARE STILL SITTING HERE >>> I WAS NOT INVOLVED WITH THE BUDGET AT THE LEVEL OF DETAIL THAT I CERTAINLY AM NOW I READ THE DOCUMENT EVERY YEAR THE NARRATIVE SAID THERE IS NO SUPPLEMENTAL FUNDING # qó THAT IS WHAT OUR BUDGET DOCUMENTS HAVE SAID EVERY SINGLE TIME WE SUBMIT THREE TIMES A YEAR WE SUBMIT BUDGET DOCUMENTS I TRUSTED THAT BELIEVE ME I HAVE LEARNED A LOT >> GOING FORWARD MAYBE THIS IS FOR THE COMMITTEE STRUCTURE TO HAVE A PROCESS THE AMOUNT OF MONEY IN RESERVE IS NOT GOING TO BUILD A NEW LIBRARY I THINK THE MONEY HELD IN TRUST BASED UPON DIRECTION AND WHERE WE WERE ECONOMIC UNCERTAINTY AND ALL OF THAT IT IS PROBABLY TIME WE HAVE THAT CONVERSATION >> THE LOGIC BEHIND THAT CALCULATION MIGHT BE A LITTLE BIT FLAWED GIVEN THE FACT THAT ABOUT 20% FOR EXAMPLE OF OUR CIRCULATION IS ELECTRONIC THESE DAYS THERE ARE WAYS TO GET AT THAT I’M GOING TO ONE YOU YOU MIGHT NOT LIKE THE ANSWER >> YOU ANSWER MY QUESTION I WAS CURIOUS COULD’VE BEEN DRAWN UPON PET IT WAS UNKNOWN I GUESS IT WASN’T HIDDEN >> EXACTLY I WANT TO SAY SOMETHING ELSE BUT THIS REALLY IS AN ISSUE OF 25 YEARS IN THE MAKING WE WILL FINISH IT BY THE TIME MY CONTRACT EXPIRES AT THE RATE WE ARE GOING HOPEFULLY A LOT SOONER WE STILL HAVE TO REMIND THE JURISDICTIONS THAT A NEW FACILITY IS THE RESPONSIBLE — RESPONSIBILITY OF THE JURISDICTION AS MUCH AS WE WANT A NEW LIBRARY IN ELK GROVE IT IS UP TO ELK GROVE IT IS UP TO SACRAMENTO COUNTY THAT SAID THERE ARE MANY THINGS WE CAN DO THAT ARE INTERIM POSSIBILITIES WE USE — AS OUR SHINING EXAMPLE >>> AGAIN — I ASK ANOTHER QUESTION ON THE UNFUNDED LONG-TERM LIABILITIES THE COUNTY PORTION SHOWS HALF OF THAT IS THAT REACHING WAY BACK INTO LONG-TERM EMPLOYEES PROJECTING FORWARD? WHY IS THE COUNTY HAVE HALF — >> BASED ON OUR COST ALLOCATION.>>> ON THIS I AM MISSTATING IT WE DO EVERYTHING BY FORMULA >> 55% — >> THE COUNTY APPROXIMATELY 60% IT IS GOING TO BE SLIGHTLY

HIGHER THAN THE CITY SIDE.>>> THE CITIES THAT ARE FALLING IN THAT CATEGORY >> THE COUNTY AND THE FIVE INCORPORATED JURISDICTIONS >>> I’M GOING INTO THIS AGAIN I SEE HERE ON THE RESERVE POLICY WE HAVE A DEFERRED MAINTENANCE I HEARD YOU TALKING ABOUT FUND 11 A. LIGHTBULB GO OUT IT APPEARS SEMANTICS TO ME IN TERMS OF DEFERRED MAINTENANCE OR MAINTENANCE WHEN YOU NEED IT LIGHTBULBS GOING OUT BEING THE EXAMPLE WOULD IT BE POSSIBLE THAT THIS DEFERRED MAINTENANCE WAS NOT PART OF IT — WAS PART OF THAT 11 A IT COULD BE REALLOCATED >> I DON’T THINK WE WANT TO GO DOWN THAT ROAD BECAUSE THE PURPOSE OF FUND 11 A IS I THINK SPECIFICALLY FOR THOSE SORT OF ROUTINE MAINTENANCE COVERED IN THE JPA PAGE THAT GOES OUT ABSOLUTELY WHERE THE MONEY RESIDES ULTIMATELY IS UP TO YOU IF YOU DECIDE THAT THE COUNTY IS A BETTER STEWARD OF THE COUNTY’S FUNDS AND THE GOALS IN 11 A THAT IS ULTIMATELY YOUR DECISION WE WILL PROBABLY DISAGREE WITH IT BECAUSE WE HAVE A LITTLE MORE FLEXIBILITY SOMETIMES THE COUNTY DOES WHEN IT COMES TO GETTING THINGS >> DEFERRED MAINTENANCE WAS PART OF — YOU HAVE LESS DEFERRED MAINTENANCE THEORETICALLY >> I DON’T THINK SO THE CARPET AT ANY GIVEN LIBRARY HAS HUNDREDS OF THOUSANDS OF PEOPLE WALKING ON IT EVERY YEAR AFTER 10 YEARS THE CARPET WILL NEED TO BE REPLACED BUT WHEN WE TALK ABOUT DEFERRED MAINTENANCE WE’RE TALKING ABOUT IS TABLE THAT IS SO SPLINTERED — SOMEBODY FILES A CLAIM BECAUSE THEY END UP WITH A CHUNK OF WOOD IN THEIR HAND SOMEBODY TRIPS BECAUSE THE CARPET IS RIPPED THAT KIND OF DEFERRED MAINTENANCE AND WE SAY DEFERRED MAINTENANCE WE MEAN THOSE ITEMS WE ARE RESPONSIBLE FOR ULTIMATELY THAT THE JURISDICTIONS LET’S PUT IT THIS WAY I BELIEVE THE CITY OF SACRAMENTO HAS ABOUT $1.8 MILLION SET ASIDE FOR DEFERRED MAINTENANCE FOR 400 BUILDINGS — >> IT MAKES US VERY MINDFUL IF YOU MAKE A DIFFERENT DECISION MIMIC I WANT TO SAY ONE LAST THING I AM SAYING THAT THIS COULD BE APPLIED TO THE NEW ROOF AND SO YOU ARE NOT DEFERRING THE NEW MOVE YOU COULD TAKE CARE OF IT NOW I UNDERSTAND — >> ACTUALLY, YOU ARE RESPONSIBLE FOR THE ROOF >> YES AND — APPARENTLY

OKAY SO I THINK WE ARE GOOD >> — >> ON THIS SIDE OF THE DAIS, YOU NEED A COUPLE OF THINGS FROM US ONE, YOU NEED DIRECTION. FIRST OF ALL, I WANT TO PROVIDE SOME DIRECTION ON WHAT MISS FOSS IS TALKING ABOUT AND SEE IF WE CAN EXPAND THE BUDGET ON THE FINANCE COMMITTEE AND INVITE THE FINANCE PEOPLE FROM ALL OF THE JURISDICTIONS I THINK THAT WILL HELP US THROUGH SOME OF THESE CONVERSATIONS >> THANK YOU >> THANKS, NO, I THINK IT IS A GOOD POINT AND WE NEED TO BRING THAT BACK AND IF IT COULD BE HELPFUL, THAT WILL BE GREAT I WILL BE FACILITATING THAT GROUP AS WELL SO GREAT FOR ME SECONDLY, I BELIEVE YOU WANT SOME DIRECTION ON THE LEVELS OF THE RESERVE >> YES >> THE TARGETS ON THE LEVELS OF RESERVE AND WHAT I HEARD A LITTLE BIT WAS OKAY, WITH SOME CONSERVATION ABOUT I WANT TO BRING THAT BACK TO THIS FINANCE AND BUDGET AUDIT COMMITTEE. THE THIRD PIECE, WHICH I THINK IS THE MORE COMPLICATED AND POTENTIALLY MORE DIFFICULT PIECE IS HOW WE CALCULATE THE SUPPLEMENTAL WE WILL DO THAT, TOO, I THINK WITH THE BUDGET COMMITTEE WE HAVE GOOD FOLKS WITH SOME EXPERIENCE HERE THEY CAN BRING BACK — WITH A CHARGE TO BRING BACK A RECOMMENDATION TO THIS BODY IF PEOPLE ARE OKAY WITH THAT DIRECTION? >> — >> ON HOW WE CALCULATE THE SUPPLEMENTAL ONE IS PROCESS AND TO OUR RECOMMENDATIONS TO COME BACK TO THE DIRECTORS >> YES >> IS THAT GOOD? DEE YES >> AS CHAIR, TWO PEOPLE SPOKE ON THE RESERVE LEVEL >> RIGHT BUT I DID NOT HEAR A CONSENSUS >> I DID NOT SAY THERE WAS ONE I SAID WE HAVE SOME DIFFERENCE HERE MY FEELING IS BECAUSE WE DID NOT A LOT OF PEOPLE, THERE IS A STAFF RECOMMENDATION IN HERE I DID NOT HEAR, OTHER THAN 1 PERSON, ANYONE DISAGREEING WITH THAT STAFF RECOMMENDATION IF PEOPLE DO, THEY NEED TO SPEAK UP OR — THE EXCEPTION ON THE REPORT THAT I PRESENT HERE — >> OKAY >> — >> THERE WE GO THE REQUEST TO SPEAK IS LET’S SEE YOU ARE PEER I AM SORRY IT WOULD NOT PUNCH IT BUT I THINK THEY HAVE FIXED IT OVER HERE TWO THE ONLY THING THAT I WOULD LIKE THE BUDGET COMMITTEE TO TAKE INTO CONSIDERATION, PARTICULARLY WHEN WE ARE LOOKING AT A 45 PERCENT RESERVE BALLASTS, YES, 10% WHEN WE HAVE QUESTIONS ABOUT CASH FLOW MAYBE EXTREMELY LOW FOR AN AGENCY LIKE THIS BUT MY CONCERN IS AFTER GOING THROUGH OUR LAST CLIP OF BARGAINING AGREEMENTS AND THE QUESTIONS ABOUT WHERE OUR LOWEST PAID MEMBERS OF STAFF ARE, I WANT TO BE CAUTIOUS ABOUT BLOCKING INTO MUCH AND NOT BEING ABLE TO FIGURE OUT A PATHWAY FOR THOSE LOWER AND — END TO GET TO A PLACE. IT MAYBE 38, IT MAY BE 42 BUT I WANT TO GIVE THAT CONSIDERATION WHEN THE COMMITTEE MEETS — FIRST ALL, WELCOME TO THE BUDGET COMMITTEE, MR. GUY >> I ALREADY AM ON THE BUDGET COMMITTEE >> THERE YOU GO IT IS A BIT OF A MISNOMER TO SAY 45% BECAUSE THE 10% OF DEFERRED MAKE — MAINTENANCE IS SLIGHTLY DIFFERENT THAN THE CASH RESERVE >> I TOTALLY UNDERSTAND >> I THINK THAT IS A VALID POINT WE SHOULD HAVE ALL OF THOSE DISCUSSIONS IF EVERYONE IS OKAY, MISS FOSS? >> I WOULD LIKE MORE INFORMATION BEFORE I SAY I AM ON BOARD WITH 4 TO 5% — 45% I WOULD LIKE TO HEAR WHAT THE FINANCE AND BUDGET COMMITTEE COMES UP WITH >> I AM BORED WITH THAT WHAT I SAID WAS THAT IS KIND OF WHAT I’M HEARING BUT THE RECOMMENDATION OF THIS BOARD WILL MAKE THE FINAL DETERMINATION >> YES, MORE INFORMATION, THANK YOU >> RIGHT >> THE QUESTIONS HAVE TO DO WITH THE ECONOMIC UNCERTAINTY RESERVE I GUESS I WOULD LIKE TO KNOW WHY 10% WAS PICKED FOR THAT AND CASH FLOW RESERVE WAS 25%? I DO NOT JUSTIFY DISTRICT DISAGREE WITH A 45% RESERVE BUT I THINK — RESERVE FOR 10% FROM MY POINT OF VIEW IS STILL LOW I COME FROM A JURISDICTION WHERE WE HOLD 25% BECAUSE WE WANT 3 MONTH OPERATING IN OUR RESERVE I DO NOT REALLY, WHEN I READ THE STAFF REPORT, I DO NOT DISAGREE WITH THE 45%, I JUST DID NOT UNDERSTAND WHY THE CASH FLOW WAS PICKED AT 25% AND THE ECONOMIC UNCERTAINTY AT 10%? >> I THINK I CAN ANSWER THAT

BECAUSE THE CASH FLOW, AND THIS WAS THE REQUEST I MADE WAS TO LOOK AT PAST RECESSIONS AND SEE WHERE WE WERE AND WHAT WAS NEEDED TO CARRY IT THROUGH >> 9<-:KñYES >> ON THE DIRECTION, WE CAN ALL COME BACK — I WANT TO COME BACK AND HAVE A DISCUSSION ABOUT OPTIONS THAT WE HAVE AND MAYBE WHAT WE COULD DO AND SAY, IF YOU DO 45% TOTAL WITH THE 3 PIECES, THIS IS WHAT IT MEANS IF YOU WANT TO DO 35% — SO WE WILL COME BACK WITH OPTIONS AND CONSEQUENCES OF THOSE OPTIONS >> I WAS NOT SURE THAT WAS THE BREAKDOWN I WOULD LIKE TO HAVE SEEN OR I DID NOT UNDERSTAND WHY THAT WRITE-DOWN WAS CHOSEN >> WE WILL GO WITH THAT MS. — MR. HERNANDEZ? >> A QUICK QUESTION, JOHNNY ON THE 45%, HOW MANY MONTHS DOES THAT KEEP US AFLOAT IF WORST CASE SCENARIO HAPPENS? >> IN A WORST-CASE SCENARIO THAT WOULD GIVE US PROBABLY ABOUT 80%, IF NOT LIKE 100% THAT WE CAN COVER THE TOTAL EXPENDITURES — >> FOR 1 YOU THAT THAT WIND MONTH? >> FOR 1 YEAR >> OH SO CURRENTLY AT 10%, WE CAN STAY AFLOAT FOR HOW LONG? TWO MONTHS? >> 10%, PROBABLY ABOUT — >> — >> THANK YOU, THAT IS ALL ANY THANK YOU >> THE 25% AND 10%, THOSE ARE NOT MAGIC NUMBERS >> WE KNOW IT IS NOT MAGIC NUMBERS WE GOT THAT BUT IF WE CAN COME BACK ON — I THINK THE DEFERRED MAINTENANCE AT 10% IS A LOGICAL NUMBER PEOPLE CAN LIVE WITH IF WE CAN LOOK AT THE RESERVE AND THE CASH FLOW, THOSE ARE THE 2 WE CAN CREATE SOME OPTIONS AROUND AS LONG AS PEOPLE KNOW WHAT THE RESULTS WILL BE IF WE DO THOSE THINGS OKAY? >> OKAY >> THANK YOU VERY MUCH I APPRECIATE THE CONVERSATION I AM SURE IT IS” — CRYSTAL- CLEAR FOR YOU GUYS NOW WE HAVE — DO WE HAVE ANY REPORTS OR QUESTIONS FOR BOARD MEMBERS? I SEE NONE ON THAT WE WILL GO TO OUR CLOSED SESSION WE WILL NOT HAVE THIS WE WILL COME BACK AND ADJOURN THE MEETING BUT WE WILL NOT HAVE ANYTHING TO REPORT OUT OF THE CLOSED SESSION WHERE IN ROOM 2, I BELIEVE, FOR THE CLOSED SESSION IF WE CAN GET EVERYBODY THERE, IT SHOULD BE RELATIVELY QUICK IS THAT CORRECT FAIRLY QUICK ON THE CLOSED SECTION? >> IT SHOULD BE FAIRLY QUICK >> THANK YOU