Transcript

0:00:25All right. Give me a second. All right, commissioners, are you ready? Yes, we are. And we are recording. Buenos. We're here for a meeting of the board of county commissioners. We are. Let's see. Today, Tuesday, September 30, 2025, and all three county commissioners are present for this business meeting. We are here in Boulder at the downtown County Courthouse at 1325. Pearl street offering a hybrid meeting this morning, so I'm going to go ahead and call to order the meeting and move to number two. Which is our business meeting and public hearing of Boulder County Housing Authority. That will be coming up. Here shortly and move us to number three, which is our business meeting. And then to item number four, which is commissioner's consent. Items move approval of the consent. Agenda second. All in favor?

0:01:19Aye. Thank you. And then I'll move us to number five. Which is confirmation of executive session topics good morning, commissioners. Natalie Springt, commissioner's deputy for the record. I'm here to confirm that the executive. Session. Topics that were noticed at the September 23, 2025, regular business meeting of the board were discussed as scheduled. So I'm happy to move us to item six since this is just. A note for the record. Thank you. And, commissioners, we have a couple of executive session requests for authorization this morning, so. I'll request a vote on each item. So for item six a, I'm here. To request authorization for the Board of County Commissioners to go into executive session on Wednesday, October 1. 2025 at 10:00 a.m. And I apologize. I believe. This is. At. Oh, no. I apologize. At 10:00 a.m. regarding. Pursuant to CRS 24, six, four, two, subsection four, a real property issues. And if we could scroll.

0:02:30Colorado Highway 42 future 42 project involving. Harney Laskota and may Hoffer farm open space properties along Colorado Highway 42 in Lewisville also open space acquisition priorities and potential open space acquisition near the intersection of Boulder Canyon Drive and four mile canyon and potential acceptance of 50 acres. Comprised of. 9255-935-5945 and 95 50 Paradise Lane, all being dedicated by the developer of the retail ridge development in Louisville, and I'd request a vote from the board. This morning. I move that we go into executive session for the purposes stated. Just a couple of clarifications. Harnie Listoka and Redtail Ridge second. I believe that was a motion in a second, a friendly amendment to the motion that was made. So it was the properties that we want to discuss. Okay. And I seconded it with my friendly amendment.

0:03:36I didn't hear that part. I just. Heard the change thing, so we have a motion in a second. All in favor? Aye. Thank you. And I just have one question, if I might. Nothing to hold up the vote. It was more of. I have received some information in regards to item two. In that six a, but not for the other ones. And so I just wanted to ask for. Staff support to make sure I can get that material. If there's anything being provided prior to the conversation. I think they were all in the same email but a bunch of different attachments. So you might like where that too was. In the body. I think there's a whole bunch of attachments to that email, okay? Thank you. I appreciate that. Hopefully I'll reread my email from the weekend and commissioners. I'm happy to resend the documents this morning. Okay, thank you. And then six b. And then, commissioners, a request on item six b. Is a request for authorization for the Board of County Commissioners to go into executive session on Wednesday. October 1, 2025, at 10:00 a.m. with County Attorney Ben Pearlman. Pursuant to CRS 24, six four two, subsection four B, for legal advice.

0:04:49Related to the Colorado Highway 42 Future 42 project. So moved. Second. All in favor? Aye. Thank you. Thank you, commissioners. And for item six, C. I. Request authorization for the board of county commissioners to go into executive session with county attorney Ben Pearlman. On Wednesday, October 1, 2025 at 10:00 a.m. pursuant to CRS 24. Six four two, subsection four e. Instructions to negotiators. And this is to discuss the topic of collective bargaining agreement with Boulder county employee union. I move that we go into executive session for the purpose stated. Second. All in favor? Aye. Thank you. Thank you, commissioners. And then for item 60, I'd request. Authorization for executive session for the board or for the board to go into executive session pursuant to CRS 24 six four two subsection four f personnel matters, which would on October 8, 2025 at nine. A m. For the annual performance evaluation of county Administrator Jana Peterson. So moved. Second. All in favor aye. Thank you, madam chair.

0:06:03If I could just say. I am scheduled to be out tomorrow. Unless I call in from the airport. Won't be present for the executive sessions in six. A, B and C. I just want to. Intend to take that for scheduling. Okay, great. Thank you. I didn't. Know if there was an ask, but coming behind that. So thank you for awareness. Great. Thank you. We'll go to item seven, which. Is public hearing of the Boulder County Housing Authority. So that means now we will be sitting altered county commissioners are present, and I will be sitting as the Boulder county housing authority board of directors. For a monthly meeting, and this is a general update. And so we'll just give staff a second. It looks like everybody's ready. There. And this is a public hearing, so we'll have some public comment potentially from here in the room and also virtually. And so I will go ahead and turn over the housing authority meeting. To our executive director.

0:07:17And a lady work through the agenda. Good morning, commissioners. Thank you for having us today. We have quite a full agenda. We do have some decision points for you to make today as well. So we can jump, right? In. If that's okay. That sounds great. Thank you. Go back. We have matters from the public. You want to do public comment now? Okay, that sounds great. So we'll do public comment. And we're looking for anybody who has. Any public comment they would like to share. Specific to this meeting on the Boulder County Housing Authority. And there is a phone number for folks to participate. That's 8335-6864 and if anybody is on the phone, you'll need to hit star nine to raise your hand and then star six to unmute yourself. It doesn't look like we have anybody. In the, in person who signed up ahead of time, but just want to make sure there's. Nobody in the room that. Wanted to speak to Boulder county housing authority issues. Do you have something on the comments? No.

0:08:25Okay. Thank you. So we'll close it in person and then go to virtual. It doesn't. Look like there's anybody that signed up. Ahead of time. But if there is anybody that wanted to join us, we'll just give 30 seconds in case somebody was wanting to get to a device and participate. And it doesn't look like we have anybody joining us in regards to the public comment. Virtually. So we'll go ahead and close that section. Of this public hearing, and then I'll turn it back to Susanna Lopez Baker for continuation. Of this board meeting. Great. Thank you. Next slide. Today. I'll do a pretty robust development update. We do have a guest as well. We'll talk through some federal updates and also some staffing changes. Quick operations update, and the majority of the meeting will be presenting our 2026 budget, so. We'll have a pretty robust presentation around our budget, and then finally we'll talk. Through some staffing analysis that the housing authority has done over the last six months. Next slide. We are excited to bring back to you the Spine Road project. You may remember that this originally came to BCHA back in 2023. The project over the last year and a half or so had some challenges with funding gaps, but thankfully. The state has stepped in and they have closed that gap. With this potential

0:10:12assistance of an slp partnership with bcha. There's also local support as well from the city of Boulder. So that's a great opportunity for us to deliver 65 units of affordable housing to the gun barrel area. As you know, we work really closely with SB Clark to do our financial analysis of these types. Of projects that is complete and was attached to the board packet. On their recommendation is that there would be a benefit from a special limited partnership with bcha. And happy to answer any questions. Luke Cannon of cobalt is also present to answer any questions. So I will open it up to you commissioners. Thank you. Commissioner Sulfman. Thanks so much. I just had a question about what you said I had. The material ahead of time and didn't have questions, but. You said that the state stepped in with a special limited partnership from BCHA, which I didn't. Understand. Sorry, that's not what I meant. The state stepped in with funding to close a gap. The only gap that remains could potentially be closed by a potential partnership with an SLP with BCHa.

0:11:17Okay, and what type of funding did the state provide? That's a great question. I'll let Luke answer that. Please introduce yourself. Hi. Good morning. Luke Cannon with cobalt company. Thank you for having me this morning. The state stepped in with 2.85 million in chaff of prop one two three funds. That's a funding source run by the Office of Economic Development and Chaffa. It was. Created roughly two years ago to help affordable projects that became financially unviable due to rising construction prices and interest rates. We had applied for these funds two years ago and were unsuccessful, but we did apply again this past spring, and we're successful. And that was the missing piece needed to fully get this. Project over the line in addition to the sport from BCHA. Thanks. Thank you for that. If you don't mind, before you leave, I just had a follow.

0:12:04Up in that one. I was thinking, and this is just. I'm not in it in. The way that you all are as experts out in the field. I was thinking that prop 123. Was. The applicants were local governments or somehow, like housing authorities, et cetera. But our private developers also. Are able to applied on their own. That is correct, yes. They have multiple sources of funds in different categories. So I think individual governments can apply for a certain source of funds, and then there's also funds available to close the pricing gap on affordable projects that have been awarded tax credits already okay, that's helpful, because I think what I hear most is from the local government side. And partners in that area, so that. Thank you for that. Additional questions. Commissioner Levy? I do. Thank you. As long as you're here. The packet included a proposal that was first brought to US June 27, 2023.

0:13:03So over two years ago, and I was wondering if the mix of affordability. It's showing 65 units with four units at 30%. AMI 50 units at 60%. AMI and eleven units at 70%. Ami. Has that changed? That has not changed. Okay, thank you. And this 65 units is still the number of affordable units? That is correct. Thank you. But something did change. I think it's now 20 years of a deed, restricted, affordable. Instead. Of 15. Our perm lender is Freddie Mac. And the terms of their agreement they needed. The affordability without the option to exit if it stands on its own out of one. One five beyond the term of their loan, and therefore the request we had made. Coming from Freddie was instead of the 15 year pushing a 20, which would be roughly.

0:13:57Six months, probably one year after. Their perm loan ends. So that was the revision that we requested in this request, based on what we have heard from Freddie Mac, okay? And that additional period of affordability. How did that, or if at all. Change your performance for this. So the affordability did not change. Our performers really didn't. Change. When you run the project out over 20 years. The option in the original Loi was after 15 years, the project was meeting a one one. Five debt service coverage ratio. Then the county could step away. Freddie said we can't have that terminated anytime before our loan term ends, and we are. Requiring you to have that at least 20 years. So that it extends just beyond the maturity date of the perm loan. Okay, so in terms of.

0:14:52It'll affect your future cash flow, but I guess because. It's nothing. Actually affects the future cash flow. The property. Will. Over time, we expect the debt service coverage ratio to increase to 115-11-1618 nothing changes. It would be based on affordable rents that are eligible to be charged at that time. Unless, obviously, the operating expenses, wherever they may be at that point in time, so nothing actually changes. With regards to the terms of the deal, it's the ability for Boulder county to exit after year 15 instead of year 20, which is the request we received from Brett. Okay, thanks. Great. Thank you. Thank you. Commissioner staff recommendation is to engage in the partnership with Colbel. So we would like to understand. If the commissioners would support our request. And just. Some logistical side. Sisana, are you needing a vote from the board on this?

0:15:59I heard just. The question just in general support. But want to be clear and understand what you need for yes, and all the April chime in if she has anything additional to add. But my understanding is, yes, we would like a vote. Today. And then April. That triggers April to create a term sheet, which will come to you again as a resolution from Boulder County Housing Authority. Thank you. And I see April just joined us. Yes, it would be in the form of a resolution. Just wanted to clarify. I would be providing a resolution. So what would be formalized in writing? And I'll just have you introduce yourself if you're sorry. I'm April. Gatesman, assistant county attorney. Thank you. So, in the packet, and I'm just trying to. Get us to where the asset we've got here in the packet that. Says request would the board like for BCHA to engage with the developer and our consultants to do the financial analysis needed to move forward with this SLP request based on the BCHA participation policy. So I'm reading that as one question, and then the second one is, will the board provide the funds necessary for this analysis if interested in pursuing so those were from. 2023, and the board did vote in favor of that. And so we have done all of that

0:17:16work. Okay, so the ask today. Is. Whether or not we can support this project. Create a term sheet and bring this to you in a resolution. Someone could simply make a motion to support the special limited partnership with Cobell and company. Yeah. I would make that motion at this time. That we do support entering into the special limited partnership. We did take that vote. Was it at that June 27 meeting? I don't recall. To authorize staff to explore and discuss and do the financial analysis, and then I think we've had some presentations. In the intervening months from our affordable from BChA on this. And we've done some work on our SLP policies criteria. On the kinds of projects we would support. And what we're really looking for when we confer this financial benefit. On the project. I. E. The value of foregone taxes. So I feel like we've kind of taken these steps as we've gone along. And we're here and all the finances have been analyzed. I'm comfortable that this is a situation in which. Our tax exempt status that would go along with the SLP is necessary in order to bring these 65 units of affordable housing to the gun bar. Area. I'm happy to second a motion. All in favor? Could I just comment?

0:19:00Sorry. Discussion. Thanks. So much. Yeah. So I really appreciate the developer for coming forward with the project. I also. Take the authority that we're granted to exempt people from taxes very, very seriously. And just evaluating the project and looking at things. Who wouldn't want to be tax exempt? There are lots of families in Boulder county that are unable to pay their taxes. There are a lot of businesses in Boulder county that are unable to pay their taxes. And so just looking at other people in similar situations. And understanding the authority we have is very serious to say that. We'll take money from the school districts. We're going to take money from the cities. We're going to take money from any of the special districts. Someone who's profiting off of the community. And so I will be voting against the motion this morning. Thank you.

0:20:26Any other discussion? And I'll just add in here. I want to really appreciate staff. With this concept of special limiting partnership and what that could mean for the Boulder county housing authority. And really looking at where we've done a lot of work over the last several years. To address the issue of economies of scale and through disposition process. You're trying to really. Make our kind of doing the lean work. Of how this housing authority. Could run. Solution to housing in the state of Colorado and nonprofit partners and all of the different finance partners that we have. If you think about all the projects that we have throughout Boulder County Housing Authority and our 900 plus to be able to even consider this particular proposal. Commissioner Lee, it looks like you have some comments. Thank you.

0:21:42There is just one thing I would like to say about this, which is that. The city of Boulder allows developers to pay fees in lieu of providing. Their inclusionary, fulfilling their inclusionary housing requirements on site. And I suspect. This project may not even need. That. This special limited partnership. If the developer had elected to pay the fees in low. It's always more expensive to actually provide this number of units. Actually on site. As part of a market rate development. I just wanted to recognize that value, that instead of just paying the fees in lieu doing market rate development across. The 100% of the acreage that we are getting. A mixed income development, and I think that's very valuable in and of itself. Thank you, commissioners. Oh, I did the second. I'm so used to thinking this direction, so motion and then. A second. All in favor? Aye. In opposition. No. Thank you all. There was a motion. And I'll turn it back to Susana Lopez Baker. Thank you. Next slide, please. Want to talk a little bit more about some development updates.

0:23:10Just a quick update on our disposition. We do have three properties remaining, two of which will close on Friday, and that effectively pays off. Our 2013 bond. So really excited about that. Our last unit. We have one unit remaining in Longmont. Willoughby Corner. I do want to talk through the different phases. We are still working on all three phases currently. Phase one did get an extension on our TCO. Till December 1. We are completing some road work. It's corrective work. And so we are working very closely with our general contractor and permits have been pulled, and that piece is moving forward. Regarding phase two. We have redid all of our rfps for our design consultants, and so I'm happy to report that that is now complete. And so we have awarded all three consultants. Will be corner phase two, which will be 128 units. So we're working through contracting, right? Now, and we look forward to bringing them to meet you all very soon. That did include a simple engineer, landscape design and an architect.

0:24:22We are also working with the IDD advisory committee currently to pursue some IDD housing funding. To include a 16 to 32 unit. Building on the property at Willoughby Corner that will be exclusive to IDD housing. So we're working through that. We have requested $2 million in construction and design cost. This will allow us to hire a design consultant as well as to include the architecture work required. To bring that project forward. We're hoping that the advisory committee supports us and they will hear. From their team on October 6. I have already presented and I have followed up with some questions. That they had as a follow up. So we are looking forward to a decision from the committee. On October 6. Thanks. It's on. A couple of questions here. Should I ask commissioner sulfur? Thank you. What idd funding are you pursuing? The mill levy funding from Boulder County. Boulder County? Correct conditioners idd funding.

0:25:23Okay. I have comments as the Boulder county commissioner, but I'm not sitting as that. Okay. Yeah. Thank you. Thanks for that. I'm curious. So the idd housing. Is that part of phase two in terms of the unit count? Correct. Okay. And. Is that contemplated to be independent living, correct. Staff support. It is not a PSH model, so it is absolutely independent living. Okay, great. Well, that's fantastic. I don't know if you were finished on phase two, but I was curious. I had a few more questions about. What's. I just don't remember. How many units are part of phase two in toto and then. What the unit mix is on that. So it's 128 units. Everything's still sort. Of up for debate. We are going to work really hard to get our pre application into DOH in December. So we have a lot of work to do these next eight weeks, but we have a team together, so that makes us really excited. So I'm not exactly sure yet. On the mix, we are trying to incorporate the IDd. Housing to be between 16 and 32 units, with a community room on the first floor. There will be an additional community room as well in the multifamily aspect, but it is a multifamily project. Okay. Thank you. Just one other question. So I was understanding the

0:26:55Board of Housing Authority Commissioners really wanting to pursue for sale options for the future phases of Willoughby. So. With these different, various competing interests. How are you balancing what share will go toward the board's? Goals versus this new idea. Good question. So phase three is where our homeownership phase. Will live, so will be corner phase three is happening simultaneously, as will be corner phase two. So. We're pursuing between 70 and 80 units, which is what the project allowed for when we presented to city council years ago, and so we're pursuing those 70 or 80 units. We do have an application into DOH for scattered site home ownership, which. Is a new program, prop one two, $3. Sure. Just focusing on Willoughby corner, though. Correct. So. That's a bulk of our application was for those houses at Willoughby Corner. Interesting. Yes. And on will be corner phase three. We do have a design build currently that just closed. And so we have not undergone our evaluation of applications yet, but we will very soon, and. We did have several entities apply for that RFP. Great. Thank you. Yeah, I think that's everything for all three phases.

0:28:12Any other questions about Willoughby? We're really working right now on this, and it's going very well. I don't have additional questions. I did want to just say to staff, From the Willoughby corner, there was an event. There about a month or so ago. I just wanted to appreciate staff. There was some follow up. Questions that I had mentioned. And folks got right back and we were able to respond back to the state. So I just wanted to appreciate that. Great. Thank you. And then just one other thing. We do have a worthy cause application in as well for will. Be corner phase two. Thank you. Let's see. Federal updates. As you know. We are looming on a federal shutdown, so I did want to address that. We do not. Anticipate any immediate funding consequences to our voucher program, which is the bulk of our HUD funding. From what we are being told by HUD, we do expect a full October Hap payment. And a partial November payment if needed. So there shouldn't be any impact unless the shutdown goes beyond 45 days. Let's see. We are working really closely right now with older county communications teams to get some information out to all of our voucher holders as well of all of our landlords. But like I said, we don't anticipate. Any disturbance in any

0:29:38payments during the month of October. Thank you. Let's see. The last thing I want to just talk about some of those pictures up. There. We are having an all staff appreciation tomorrow at Anderson Farm. So looking forward to unplugging a little bit and connecting with staff in person. There's a picture up there of a Nagal award we received for some mobile home. Park work we are doing. And just as an update, BCHA will begin to manage the Seward mobile home park in Lions beginning January 1. So we contracted out the first year. So we had some transition time. We did just. Have an appreciation event with them a week and a half ago, and it went really well. It was a nice event just to connect with residents. As you know, received a Doctor KaG award. Thank you for your attendance, Commissioner Levy. It was a really nice event, and we were able to celebrate with the city, which was also a really nice. After such a large phase one project, it was really nice to kind of celebrate together, and then finally, we want to recognize two staff who are circle of Honor award winners for Boulder county. Both Kelly Keefe has been here for 18 years, as well as Anita McHugh. So excited.

0:30:54To honor them. Thank you. If I can just share in regards to the. Seward, I just had a meeting. This morning with Mayor Rogan from the town of Lions and. She was very appreciative. So just want to share those kudos to staff in regards to the event that you had at Seward, I just felt like there was some really good synergy. And interest in connecting with BCHA as a property manager. Just over the future that's coming up. So there was just some real positive feedback that she had gotten. So I just want to make sure you all know that. Great. Thank you for sharing. And then as far as the leasing update goes, We still currently have just a few open units. I believe six total on the property. So just the leasing team is fantastic and just trying to close that out, but six units do still remain on our will be multifamily, two building purple prairie. Next slide. I also just wanted to make you aware of some interim positions that we have at BCHA. With some staff that have recently left, so two people are overseeing the development work. That's happening? Michelle Alexander, primarily overseeing a lot of the contracting. Since we're in the big contracting phase. With Willoughby corner, phase two and three. So the bulk of that is managed by

0:32:18Michelle, and then. Sean is, of course, always involved with the finance side of everything. And so that's sort of how we split up the work. And then on the interim operations directors. Kelly Keefe is overseeing all of our HUD and compliance. Teamwork always been a part of her job and shows just taking a more active role. On the leadership side of that work. And then Edna as well. Always been the manager of property. Management. So, again, taking more of a leadership role, which there's a lot of extra work. That we do. And they've both been really fantastic. So if you need anything, please do not hesitate to. Reach out. Thank you. Can I ask a question, commissioner levy? Yeah. Thank you. Susanna, could you lay out what your plans? Are. For filling these positions permanently.

0:33:04Yeah, that's a great question. And I'll get into that a little later, if that's okay. Reorg slide that we'll kind of talk through, but, yes, I'm happy to. Address some of the. Great. All right, so we are going to start shifting gears and start talking about our 2026 budget. As a reminder, we're really proud of the work that we've done at BCHA. Over the last several years, particularly with the budget. For the first time since I've worked here, we are presenting a balanced budget for 2026. And that's because the team has worked so hard on their corrective action plan. That we created several years ago. We've taken deep dives into division spending which hadn't been done before, having separate budgets for each our division. We've also been managing our cash, which is, again, something that wasn't happening for a number of years at BCHA and finally we're implementing new procedures under Sean's. Leadership, and so many things have evolved and changing and are continuing to, but only strengthening our financial position here at BCh. BCHA.

0:34:13And I want to know that the biggest difference that I see is full financial integration. Into all of our teams. It's no longer a separate division. They are fully integrated into all the work that our BCHA teams are doing. And I'm really proud of that. Let's see. I also just want to note that the HCV staff under Kelly's. Leadership has really leveraged our positioning with HUD, and we are funded at a higher level than we have ever been before, and that's really because of the balance of risk. Taking that Kelly has led as well as with real operational cost. Costs. And so really proud of that to you. But all of that, I will hand it over. To Sean. Thank you. Good morning. Lord Sean Darry, finance director for Boulder County Housing Authority. And I'm going to get into the 26 budget with some broad level assumptions here and then we'll work in just more detail. The line share of our revenue comes from rental income. And we have projected for BCHA owned units, which is historically pretty accurate. And I think it's getting better. But we are projecting. Budgeting. For a 93% occupancy rate. And that's a real focus. Like, I said.

0:35:43We are focused on increasing and improving that number, but. That's been in alignment. With last couple of years, historically. Our occupancy rates at the Litech properties are a bit higher. And it's important to point out that. They both mean different things in terms of revenue for VcHa at the Litech level. BCHA does not get rental income, we get a management fee. That's just. A real important distinction to make. That when we talk about, well, we've got all these units we should raise rents on. All of our units. In response to. The market. And. That doesn't have nearly the impact on the Lietex because we're getting that management fee. And not rental income. And the rental income. The management fee is based on gross rental income, so it does affect it. Somewhat, but you can imagine. If, on average we're getting four or 5% management fee. That the rental income. Only increased rental income really only translates into a more minimal amount in an increased management fee. So when the BCHa owned properties where we can, and this is a tremendous. Kudos to the property management team. They know our properties inside and out.

0:37:18They know where we can increase and where we can't. And so that's a long exercise. Through the budgeting season. There are some properties that simply can't sustain an increase and it's really just based on market competition, and there's other ones that we can and we do that incrementally and somewhat thoughtfully, but again, That translates into about 300 overall units. Of our 1100 plus units, that's about 300 units. Where that exercise takes place. And this year, and I think it echoes last year, that incremental increment increases based on the bedroom count. 30 for a one bedroom, 60 for 290. For three. Our budget reflects maintaining our vouchers. Could I just stop you there? I did have a question about. Go ahead. Yeah. Thank you. And I was thinking about waiting until you've gone through all the components of the slide. But there's a lot of different things that are quite different from one another on here.

0:38:20When I saw these proposed increases on rent. What I thought about is that. Our residents, our tenants. Face financial challenges. So they are residents of bull rehearing housing authority properties because. Their income doesn't allow them to rent in the market. Many of them maybe are on fixed income. Some of them may have disabilities. And not able to work, and so. Their income doesn't really go up as the market goes up. And I guess. What I was seeing in the proposal to increase the rent more for a two or three bedroom. Than for a one bedroom. Is? Yes, in market rate. Housing. You're getting more housing? Sure. You should pay more for a larger unit, but I think maybe for some of our residents, what that means is. They've got more household dependence that they're trying to support on the same amount. Of income and that they don't necessarily have more income available. To support these rent increases. I know it's really counterintuitive and it's countered away. Rents are typically set. But we're not a typical landlord. I do worry. If somebody is able to justify a three bedroom unit because of it may not be their children. It may be other household members independence that they may not necessarily. Have that extra $60 a month.

0:40:04So it does worry me to take this approach. It's such a tremendous point. Commissioner Levy and that's where. I'm so impressed by our staff as they look at units and they really do keep that in mind. And it's important to kind of level set like our properties are when we look across the portfolio over the BCHA units. We went through an analysis and we said, like, okay, so let's define affordable at 80%. Ami. And so let's just look at. Our areas and look at our prices in comparison to 80% AmI we are nowhere close to 80% AMI. I think that probably our average. Income. Level. For our residents is probably between 50 and 60% if you look at rents. And so that's part of kind of their challenge as they looking like, what can our residents potentially afford? And it's kind of like, where's the balance? How do you balance that? Yes. All of our costs are going up. How can we pass that on in some sort of way? That's not going to squeeze folks to the point of just being untenable, but. It's a balancing act. And the alternative is not to raise rents and try to make it work otherwise? But again, These only apply. To the vast minority of our overall units in the portfolio. I get that cost, go up

0:41:38and rents our source of revenue for that. But. There's that rule of thumb, and I question the validity of the rule of thumb that you shouldn't spend more than 30% of your income on rent. And the reason my question, the validity of it, is that the other. 70% has to cover all your other household needs and. If you're extremely low income. That may not be enough. And so. Do you also do the analysis on these units as to whether. The resulting rent with these rent increases. Still stays below that 30% of income. No. I would not say that that is the starting metric of having that lens through which we are looking at our rent, is that. That's the basis that we start on. Okay, so I'll just say that at the outset. I think that. With 30% being an ideal. I know that there's various opinions on that. All the way from affordable up through bankers. There's a spread there. So. No, that's definitely not the premise. Are folks only spending 30? Is that their housing burden? 30%. And having that. As the litmus test. If that would be something that would be desirable as a policy to look through that lens, that's something that we could be very open to and try to look at our operations from that perspective. Yeah, well,

0:43:26I appreciate your willingness to look at it. These are. I think what you've brought before us are the assumptions that you're. Plugging into your budget. And I don't know how my fellow commissioners feel about this, but I would be interested. In just maybe seeing some other approaches taken here. What you're showing is really. $30 a month per bedroom increase. Does it have to be 30? Could it be 15? Or 30 for the first bedroom, but 15 and ten something, because I do think. The larger the household, the greater the expenses that they have. And they don't necessarily have the income to match, so just putting that out there. I'm wondering if we could have a little discussion about that. Because what I heard was. Potential policy change, and I don't. Want the BCHA staff to walk away with unclear direction, if that's the intent and so I don't know if you're asking. For staff to do some work. Then we should talk about it and make sure the folks are in agreement or what we might be wanting to give for directive. Yeah. I don't know if it's a policy change so much as just budget modeling. Inputs change here. I did want to explore that, and I realized that there would need to be another commissioner that would support it, but. That's the conversation

0:45:06I'd like to have. Okay. What revenues are you proposing supplementing the loss from? I'm not proposing one. Commissioner Stolesman, I haven't seen how all of this plugs in to the budget. And so what I'm asking for is whether there is another approach. To these rent increases that would still allow them to meet their budget goals. Of course, no one wants to raise rent. I think that sort of goes without saying, but failure to raise rent over a period of years. Has really had really caused BCHA to be in a terrible financial position that we've been working for two years to address, and so I can't support this at this time. And just to be clear, what I'm asking for is some additional analysis. Just to be clear, I was just saying I don't support it at this time. Sure. I actually had just a general question on that when I went through the packet, so I have some questions that I had put in my notes before the presentation. And this was one of them.

0:46:13Just to understand. Sounds like we're just having some budget. Assumptions. I think it will be helpful for BCHA to understand when the board would be in agreement with the rent increase. That might be these numbers or might be something else. And so I think for me, the question would just be, when would you need to know that? And I think you may be going through this in your full presentation. Sean, just in regards to the budget. But if there is a timeline that you would need to know if. The Board Housing Authority Board has a different directive in regards to rent increase for 2026. If you could let us know that today. I think that might be helpful for everybody together that's. A great point. I will confirm with edna, but I think for these units, This population of units we're talking about, I think we usually target January 1, and we like to give.

0:47:04At least 30, preferably 60 days notice to any tenant about increases to their rent. So if we were to back into that, I would say. Over the next month. Maybe by the end of October. I'm sorry. At our next board meeting, commissioners Wuwaski to approve a rent increase. Okay. Thank you. All right. Continue if you'd like to. Like this. Feel free to jump in at any time. Thank you. Susanna? Yeah, I'm just. Wondering if. The direction is to pursue additional analysis. And I heard, yes, from Christmas leaving and know from Commissioner Staltzman. So now we're at a. Sure. Yeah, thanks. For me again, I'm looking at this as kind of budget assumptions, a lot of different pieces. This is one of those slices, so I'm happy to. What would be the October meeting? To hear those numbers that are on the screen compared to one.

0:48:09With the market to whatever degree you can with the market. It might just be our own other. Bcha properties. For me. The question around the number. What does that number really mean for the units? And if that money may need to come from somewhere else, this housing authority board might need to go to the board of county commissioners and ask for an increased subsidy, for example, or something like that. If that was a policy that we wanted to make for 2026. Is that helpful? This is some ideas for that meeting. Thank you. Yeah, I'll be happy to provide that analysis. And just state the foundation of that we're going to look at. What income levels are. In boulder county. Or in the various areas of Boulder county. And we're going to say, what does 30% of that income look like and what are our rents and where to compare those rents and kind of show you that. Our rents compared to what the real 30% income is. Right? That's what we're looking for, correct? Sorry.

0:49:17Yeah. Just to add, Sean, I think there's several different approaches. I think I would. Like to see that as well, actually, Sean, but also at a 50% because I know that that's a sort of more realistic for our state and our region in particular. I also am happy to model what a $15 or $20 increase would look like and how that impacts our budget. So I think there's several things we could talk to as staff, Sean. Pretty good. Yeah, that's fine. I'm not trying to be prescriptive. And say, I want this approach or that approach. I think I was just bringing up the 30%. As. It'd be good to know, just in terms of actual affordability for our residents as opposed to. Some hud number of what is the ami in boulder county? That's all.

0:50:04Just wanting some different approaches and different analysis. Thank you. Great. Thanks. The next assumption, I think it's a reasonable one, is that we're maintaining housing. Choice voucher spending at current levels. We haven't heard anything federally from a budgetary perspective. Contrary to that, at this point, So that is part of the budget. And I think. A couple of major events. That really do affect the long term sustainability and kind of the turnaround that we'll see in 26. Is entering into early exit from the Litech properties Josephine Commons and aspen Wall. Those properties perform very, very well. Because. They're 99.9% owned by the investor groups. BCHA does not get the benefit of that positive operating. Sustainable income on its own, on its own books. And so. We're actually in the process now of going through. The closing documentation on Josephine Commons aspirinwell is a little bit different.

0:51:24The larger investment group, so it's a little bit more difficult to herd the cats. But the budget here reflects having Aspen wallet six months. So starting July 1. Q three. That's where the budgetary effect of aspen wall is shown in the 26 budget. We expect to close Josephine commons this year. So I was pretty confident in giving twelve months full credit to Josephine Commons operations. And then finally, and you'll see. In Suzanne. We'll talk about it further. This budget includes, we kind of had to back into what does sustainability look like? For BCHa, and so we knew that we had to cut out. A certain amount across different cost categories and staffing infrastructure being one of them, and so. This budget includes that kind of. Assumption. Those assumptions in there. But it also, we were looking at it through the lens because it's all connected.

0:52:31Sustainability and feasibility. In industry benchmarks, and we've done a lot of work over the last year looking at the industry and looking where we stand. In terms of all the meaningful metrics there and unit counts and staffing levels. And so. We have kind of the internal mandate that we need to become financial. But. Hand in hand with that is that we want to move in the direction of looking. More like our. Peers. Locally, statewide, nationally, et cetera. So that's all part of this. In the next slide, if you would, Kelly. So this is a summary, and there's a detailed 26 budget in the package as well, and I'd be happy to jump into those details. As you see fit. But on this one slide. You can see our 24 and 25 and 26 numbers. And if you look at the bottom line, and that bottom line, Is a combination of operations. And then it's also a combination of what we call kind of below the line, below. The operating line. Of. Key cash components to that. On an operating basis. Even though deficits coming down and down, we've got about a $1.5 million deficit. These other cash flow events below the line have to do with outflows for mandated current portion of long term debt.

0:54:10And for the first time, I think it's significant to note that in 26 we're actually going to start and continue to budget for. Unit placement reserves we've never had. Kind of. That internal mandated. Through our operations. We put a certain amount of money per unit aside each year for the ongoing. Maintenance reserves required. It's mandated that we do that in our litech properties because it's a wise thing to do. And so we've got this discipline on the litech side of funding reserves at anywhere. From two hundred and fifty dollars to five hundred dollars a year based on the Litech and the investor agreements. Well, in 26 we want to start implementing that for BCHA owned properties. Just so. When else. So reactive in terms of where are the funds coming from? For major improvements, et cetera, et cetera. And so you see that as an outflow. In 26 to the tune of about 227,000. We've got the county inflow of the operating subsidy, which we're budgeting. Remains unchanged from last year. And then we've got this $200,000 that we get as a pass through every year, really paying BCHA back for land acquisition that was associated with Willowby, I believe. And so, for the first time, you can see in 2026, We are budgeting. To really be flat. To be operationally cash wise, financially sustainable.

0:55:53The $95,000 there. That's a positive number. That's good. I look. At that as a rounding error, but that was our goal. To get to the point where. We can be operating this way. 26 and beyond. So it's been. A nice improvement over the years. I will say. On the payroll expense. It looks like it's gone up, but it's really important. To keep in mind. And so many of these things when it comes to. Our income and expense. Are directly attributable to the acquisition of Josephine Commons and Aspen Wall. You can see on the top line, our gross potential rent is going from about $5 million. To eight plus million. Directly related to acquiring those units and having that rental income on our books. With the corresponding vacancy expense going up a little bit as well.

0:56:55So that's huge. That's $3 million in additional income. And then you can see. Down on the payroll expense. Well, it looks like it's going up. But it's important to note, too, Josephine and aspenwall, those maintenance and property management expenses. Are charged to the litex. That cost burden. Actually, in 25, we started to shift more in a reasonable way because PCHA was taken up, so much of that. But we did start to shift that to the litex. I think more reasonably. But when we require the properties, while those. Salary. Expenses are back on BcHA's books. That's an incremental increase there due to the acquisition, but in the absence. Of kind of everything that we've done, we're planning to do. And we're in the midst of doing in terms of staffing. This number historically. Really? Not historically, but in reality. This number would have been more like 8.3 million. I think through all of the work, that we've done, and Susanna will talk more about that as well. We've really kind of reduced our operating overhead when it comes to staffing in this budget. By about $1.3 million. So looks like it's going up, but it's really come down a lot. And the bottom line there, if it's not clear already, is that the economic benefit of acquiring JC and Aspen wall. Farrow ways, the additional cost

0:58:34that we see in the budget. Sean, we've got a question here. Yeah. Thank you. Before you move off this page, did you have more on this page still? Okay, thanks. Well. I was actually wondering then, what is the net benefit once we factor in those additional costs? And I also just had a wondering. Around early exit. So do we, then. Owe payments to the tax credit. Are we going to be making those tax credit payments that the investors were expecting? Or is that just part of the buyout? Don't we satisfy that obligation? Great question. It's because in this early. Exit period. They've already reaped the full benefit of their tax credit. Okay, so that period. Of. So they reap their benefit. But all investors are different. You can't come up with one determine? Well, if you've already reaped. The benefit. Then, of course, enter into the early exit. That's just not the case, everyone's. Got their different business models. I will say that in the case. They get very complex. In the case of Josephine Commons, it was really. Just like an agreed upon price, what it would cost to get out in the case.

0:59:58Of that property of $685,000. And there's a methodology to come up. With that based on equity and things like that. Aston Wall is in a totally different situation. They need to recapture a price from us. Because when they do get out of it, they've. Got capital losses, so they've got a negative equity account and they've reaped more benefit tax benefit than the original itech allowed for. And they enjoy that over the years. But when they exit, they have to pay that taxes on the differential between the extra benefit they got. Well, they want us to pay for that. That makes sense. It makes perfect sense. That. If we want to acquire the property, then we should make them whole. If you want to look. At it that way. So that's what we're kind of negotiating right now. We're trying to look at. What is that number? There's a whole lot more units associated with aspen wall. I anticipate that price is going to be something.

1:00:59In the low 1,000,001. One, two. Which is still a tremendous return on our investment. You asked the net benefit. I think you did. Or if you didn't, I'll share it. The net benefit to the bottom line. If we had full years of aspen wall. And Josephine, the net benefit to the bottom line is about $900,000. Annually. Annually. Annually. Okay. I don't question that. Those were good decisions to make. As you were talking about the increase in maintenance costs. And administrative expenses and utilities, et cetera. That's where I was just wondering. How? That's all. A debit against the additional rent. The other question I had is your vacancy loss that you show. And first of all, let me just say congratulations and getting to this. Point in the budget. I know that it took a lot of hard work. And I appreciate. That you're establishing a unit replacement reserve. That vacancy loss. Does that include. The delay in unit turns units that are not in service, or is it very much associated with those, in fact.

1:02:18But not ones. I don't mean ones that are just vacant because the tenant moves out. Because obviously that's what a vacancy is. But do we have units that are not in service because. Of? I don't know. They need to be remodeled. For whatever other reason. Yes. We're lucky to have Michelle in the room. I'm getting other input here. Yeah. Do you want to come up and address that? Just. For a second, because it's definitely something we have a laser focus on. Okay, I just. Know that that can contribute, that can kind of escalate that, and we may not count. It as a vacancy because it's just out of service. Are there any other decisions to be made this morning. Pardon me? I'm just asking a question. If there are any other. Decision. Decisions to be made this morning. I was asking some questions about checking, and I'm going to run to another meeting. Thanks. I read the packet. I've gone through the material. This is fascinating to me, but I'm. Going to move on. No, commissioner. Still, thank you so much. Today's meeting is just to present the budget and. If. There's any advisement you can give us, great. As we're going to continue. Through the budgeting process that Boulder county outlines. So the next several months. So there's time to make any changes, which

1:03:24is why we're bringing it to you so early and. Then the staffing is just an update, so there's no decision. Okay. No, thank you. For that. It's a big budget. It's a complex budget. And. I just want to excuse the interruption. Please continue, Commissioner Levy. I appreciate that. Morning, commissioners. Michelle Alexander, facilities director for BCHA. To answer your question, yes, we do have units that are in development. That's where we put them when they are undergoing some sort of rehab. That's generally for needing new cabinets. Kitchen the bathroom may need redone and then we also have them for some time for Rem. Remediation purposes. If there's a contamination of the unit, and then we are currently updating. Two AdA units at Casa, but right now, those are the only ones that are down in development.

1:04:12Are the three ones remediation, and two are for conversion to Ada. Okay. This is just a projection, your vacancy loss. But is that the kind of thing that you would project. It's unpredictable, obviously. But you would project out to include in that? Or is that what you're budgeting? For the. What are we calling it? The replacement reserve. Thanks very much, Michelle. The 93%. So I will say this about 93%. Coincidentally, that's what our vacancy was. In 24 and 25. Coincidentally, that is the industry. Standard for budgeting. It's typically looked at as conservative, right? But bankers and everyone else want to see. How does this property, how does this world function? Out of the 93% occupancy. So those two things just definitely align with BCHA. So when we look. To 26. If we had. If we had vacancies of 1%. In some properties we do like, especially in our litex or whatever. There are some places we do, then this would be. Too extreme. I'd say it might be industry standard. For the sake of conservatism.

1:05:46But maybe we budget more 96%. Right. So in the case of BCha, 93% makes sense to us historically. And we project that. That's reasonable. We'd like to do better. Litex. Those just have higher occupancy rates, so. When we were going through the budget. We could have used 93 across the board. No one would ever fault us for that. From an industry standard, but we said no. These things have stronger performance from 93%. And so we kind of had to do a little balancing there. But that's kind of the way we look at vacancies, only because. They're so sensitive. We try to be conservative. Okay. No, thanks. Appreciate it. Any more questions before I go to the other. No, not on that one thing, all right? I just want to know for the record, Commissioner Salzman left the meeting. Okay. Thank you. These next slides. Are really just visual depictions of what we just talked about.

1:06:53Line share of our revenue, obviously. Is rental. Our biggest contributors. The work we do as general partners in litex, getting management fees, rental income from all of our owned properties. And our section eight administrative fees. Largest, largest part by far of our organizational operations. The next slide. It's really just a visual. Depiction to. Kind of bring the point home. That. For the first time. We are looking at financial sustainability. Primarily an operating basis, going from the historical deficits. To breaking even. I would note that. Break even point comes after our replacement reserves, which I think is just a tremendous. Risk mitigating addition. To the pcha's operations. And it does include the general fund operating subsidy from the county, which I don't take. Any issue with that's a reflection of. Our investment. As when we are wearing our commissioner hats. Believe is important. Yes. Great point, because. That is built right into that. That's something that's been base budgeted and we've just taken that and include that. In kind of our operating revenue. The next slide. Is, and this is really kind of to focus on. The tremendous growth in the portfolio over the last ten years. And I really wanted just to focus on 25 and 26. To just illustrate the point of the power of bringing on JC and Aspen wall. You can

1:08:53see the blue in that bar. Charts across the board are BCHA owned units and. By entering into these litech acquisitions. Where almost doubling it. Not quite, but very powerful for the organization. Any questions on that? No, thank you. Okay. And this next slide speaks directly to our housing choice vouchers. You see in the right hand side? Really just wow, the last six, seven years. We've pretty much doubled the amount of. Landlord payments and assistance voucher assistance payments that. We've been receiving. Which I think is a just tremendous credit to. The way that these have to be prudently managed. It is baffling to me what goes into this balancing act. Of overspending a little bit in order to get more of a commitment. And then as politics change, reining that back in, you have to be incredibly. Forward looking. Really planning months in advance. In terms of your voucher strategy. And Kelly Keith never ceases to amaze me that she speaks this language so well and is so razor focused on getting to that balance, and that's where housing authorities fail. Is not getting to that balance. And we see it a lot. HUD has seen it over and over and over agaiN. And I think BCHa's reputation because of the way this has been managed.

1:10:45Gives us kind of great standing. When we're talking to hood. In the next slide. Is BCHA staffing analysis. If I might chan. Excuse me. In regards to the vouchers. I do want to just hear a little bit in regards to what planning may be being discussed. Et cetera, in regards to. The potential federal change in regards to voucher. Just looking at this number or this graph, it's a good reminder of. The amount of vouchers that we are able to offer in Boulder County. And to folks around the region, really, who supported the router. But are you all having conversations? Is that something that we're going to be talking about? Some point. I'd love to have that conversation prior to the. Now we're in. A situation where. The federal government has decided not to use doctors as a way to meet housing needs in the United States, America. And. We're also not federal shutdown, so just all things could happen. So I just wanted. To ask that. I'm happy to speak to that commissioner Lichman. So our voucher. Team had Matt previously probably second and third quarter of this year. But it's sort of this guessing game that. It's very difficult for us to do any rule planning when we don't know. So we have modeled.

1:12:12What does it look like if you looked at the different budgets, both the state and the house have put forward budgets that do not cut into the voucher program. Levels would remain stagnant, so we wouldn't see an increase in any vouchers. But we would be fully funded. That's great. Now, Scott Turner's budget proposed budget as well as the White House budget, very, very different. They're proposed up to 40% to the voucher program in terms of cuts. So that would effectively cut our program in half. Almost. And so we have started to look what approach would we take? How would we do that? So we're happy to bring that forward to you, but we have modeled just some ideas on what that could look like. We have also been talking about that at the executive director leadership level. Regionally and actually statewide. So a group of us meet once a month, and so we are talking to each other. We are not siloing. That includes the state. And then, of course, the local housing authority is both BHP and Laj as well as BCHA. Are now meeting quarterly again to make sure we're addressing any of those needs and the most relevant adjustment we've had to make, as you know, is ehvs the emergency. Housing vouchers, which the administration effectively ended ten years before we expected.

1:13:22And so. We've successfully made those adjustments, we are able to absorb all of those in 2026. That does result in not opening up our section eight voucher waitlist. We've been holding vouchers this year. We likely will not open it next year. To absorb all of those vouchers, and we did receive a waiver from Hud. So it's just. A lot of relief for those folks who are on that ehv voucher that they don't have to go through. A burdensome process to shift their browser to a section eight voucher. So we are absolutely being proactive and. If we know more, and we expect to know more soon. We are happy to schedule an administrative meeting where we can all talk together, board and staff. Yeah. Thank you. I think if Commissioner Lee, if you're in agreement, what I would be. Asking was to take a look at some of that modeling, and if it needs to be an administrative meeting or just the next month's board meeting.

1:14:21Just so we have a number in mind. Correct. That would be helpful to me. Thank you. And there's two things there that are really concerning. I thought Bcha is really paying attention to you. And that's, of course, the impacts to our community. And our voucher holders and the landlords. And then also, it's important to note that a third of our voucher holders live in BCHA property, so it essentially impacts us. On two levels as a housing authority. Yeah. Great. Thank you. Thanks, John. Thanks. The next slide. The BCHA staffing analysis. Susan, do you want me to speak to this? Would you want to. No, I'm happy to speak to this as well, Sean. Thank you. So much for the budget analysis. Sure. If there's no other questions, I'll sit. Down, Susannah. Yes. Okay. Thank you.

1:15:03Sure. So, commissioners, you may remember. Several months ago. We were given direction to start really analyzing what does our operations look like, especially in comparison to other housing authorities. So we have worked with a consulting agency that was able to deliver a report for us on national standards. And then we took that report and compared it to other public housing authorities that are regionally located to us and also county housing authorities like maker housing, foothills and housing catalyst. So we were able to do. A pretty in depth, deep dive into our staffing levels. And our goal is to really align staffing levels with industry standards to create some operational efficiencies but also achieve cost savings. This will require an extensive reorganization that will result in staff reduction, so we're at the early stages of that right now. We are going to work very closely with HR. Initial modeling, looks like we'll have to do about an 18% staff reduction overall now. That number might sound really high, but we have been intentionally holding open positions, vacant positions, and not refilling them with the hopes of a natural attrition approach. So. Most of the positions.

1:16:28That will be eliminated are currently unfilled positions. They are vacant positions. So we do intend on drafting a memo. Very soon and working closely with HR and legal on our approaches there. Let me see if there's anything else I really want to share. I think overall, if we were to get down. Into addressing very closely with industry standards. It's a close to $4 million savings annually to the housing authority. We don't believe that's the right approach. We will phase into that over multiple years, and then we're also balancing that with the quality of service. That we're able to deliver, and so we don't want to cut staff beyond. That that's very important to our teams and to our leadership. Specifically speaking. In the positions that you asked about earlier. Krishna Levy. We are remodeling everything.

1:17:27So currently we're hiring for a deputy director position. That will oversee operations and development and will likely result in eliminating two director positions within BCHa so this one position will replace two positions, essentially. Thank you for the update, and I've been working on that for a while. So just appreciate that. And I'm looking forward to hearing more about. The suggestions. Yeah. Thanks. I know it's always hard to take this look. And I appreciate your analysis. And really looking carefully because I think, I don't know if it was the 2025. Budget or the 2024 budget, where it really looked like the personnel costs were quite out of line. And it takes some work to figure out what that balance is. And you already alluded to this, and I just want to say it out loud, which is. There's a tipping point where if you have too few staff, then. Your units. Aren't. Our units aren't being maintained the way we want them to be maintained. Our residents aren't being served the way we want them to be served, so we really do want to maintain the standards. That we expect to provide to our residents. Absolutely.

1:18:52If there's no other questions on the staffing analysis, we can move into matters from. The board. Oh, I'm sorry. I totally forgot that because it's not a slide. We do have our monthly financials, of course. That will briefly cover. Go ahead. Thank you. Kelly Stapleton, finance manager. There's not too much. We're pretty much kind of status quo. The one thing I will note is on the Kaufman property matrix. That has shifted a little bit because. We are currently in the period where we're only paying interest, and next year we will be paying interest in principal. So if you're looking at that and thinking, wow, Kaufman Place. Really made such a great improvement over the last month. It's really just because we're kind of looking at it through. A different lens. And then next year. That principal payment will come on. And we've kind of been living in that world as it is. So the team is working on that as well as the occupation for occupancy rate. For Kaufman. Thank you. And as Susanna said, the last remaining units. For the 2013 bond group are going to be sold to pay off that loan. So probably that would be in this month. So probably like you would say. Future financials will kind of move some things around to reflect. Our properties with no debt because

1:20:16the 2013 bond group will go away. Great. Thank you. Thank you. Any additional questions? I didn't have any questions about the financials. Thanks. Okay, now, matters from the board. Thank you. Nothing from me. Just appreciate the work that you're doing every single day. Thank you. Thank you. The majority of the questions that I had just during the presentation, I just had one other note. From my prep before the presentation, and it was just in regards to in the budgeting of expenses, et cetera, on snow removal. There was a number in there somewhere, and I was just wanting. To get a reminder on if. That is, have we added more to that for a budget for 2026? Because it seems like that there's a few costs just countywide that end up going different, and so I was just thinking that from a bcha hat. What does this mean? And are we prepped? Because. It seems as though we need to be budgeting for more than less.

1:21:19Curiosity is a complex issue with NVCHA. Well, and I just want to address. We've gone from contractors to staff to some contractors, too, so just trying to have an understanding. Yes. Snow removal extraordinary. So for the portfolio, like they said, it's a little bit complicated. We have a mix. Of contractors and BCHA staff removing snow. Most of the mountains of Bcha staff the city of Long Monas, BCHA staff and then Louisville and Mafia are our subcontractors. Okay. Just state your name for the record, too. Sorry. Michelle Alexander, facilities director, BCHA. Thank you. So that makes sense. I don't have a question about. And just trying to understand if the number that you're using right now for your budget is an increase from last year or if it's the same number, or. It's actually a small decrease. From last year. Okay, so we brought in more snow removal in house from last year. Okay, so. That's how we're getting to the proposed 2020. Okay, that was really the only item that caught my attention outside of what I've already asked about. So I don't have any additional questions, but just want to appreciate the work. That you all. Are doing. We see it and we know it was a gargantius goal to try and get us.

1:22:42In a sustainable place as a BCHA, and I think we've all talked about that. A little bit that we see what you're doing. So thank you and thanks all your stuff. And so let's see what, just from the agenda. Thank you, Susanna Lopez Baker, for running that meeting today and then. So I'll move us back to board of county commissioners for the business meeting. And. We have. I was looking for that. The screen. Let me get to my own screen. We'll come back at 01:00. Commissioners. Are you ready? Yes, we are. Recording. Thank you. And we're returning to item eight on our agenda. And we're sitting. At the board of Boulder county commissioners again. And all three commissioners are here, and we are here. For a public meeting, which just means it's not a hearing we won't have. Public testimony today, but we'll have public testimony in a separate hearing on October 14. This is a public. Meeting on the 2026 recommended budget presentation.

1:23:51So this is information only, and staff is here to present. We'll start. We've got several different items. And so. It looks like I'm just looking at this. And I'll check in with staff. It looks like we'll do maybe a vote. For each of those, or they're just information only at this point, so we'll take them. Eight a, e, et cetera, through. Commissioners did have a few comments. Before we move over to staff for the presentation. So we'll start with that, and then. I'll let staff know. And turn it over to folks at that time. And I'm looking for the right document here. So just in regards to the budget presentation, so thank you, staff, for being here and for prepping. There's a lot of work. That's been going on to this. So just a couple of notes developing. The counties for Boulder county, annual budget is a process that starts in May every year and includes and involves hundreds of hours between staff, elected officials, department heads and input from Boulder county residents. The result is our goal is a balanced budget that gets adopted by the Boulder county commissioners in December. Ahead. Of the new financial year and we'll hear some of the calendar dates and we'll see a timeline so folks have that information around that at the start of 2026, the internal

1:25:12budget planning process in May, we shared the county's budget challenges with both leadership and our staff. As employees as part of our organization here at Boulder county. These challenges include, obviously. Different levels of uncertainty around federal and state funding, which continues to put pressure on an already difficult economic situation. And our challenge is also include rising inflation and uncertainty around future revenue from property taxes and sales. And use taxes, and our team has done a great job of updating us in regards to what those numbers are looking like for our region. We're also aware that the county has an ongoing structural budget deficit, which means county spending will soon outpace county revenue. Our budget guidance asked elected officials and department heads to make budget reductions by assessing programs and finding ways to reduce ongoing costs.

1:26:04Today we'll see the initial recommended budget and we will hear more about the budget process and opportunities for more input and feedback through this process. Great. And maybe I'll just pick up there with a little. Bit more about the structural deficit and how we're proposing to address this. So the structural deficit is in our general fund. We have a number of different funds for specialized purposes. And some of them have dedicated revenue sources that are specific to that purpose. Our general fund. Comes from our general advalorum property tax. And because of what we've been seeing over a number of years. We've determined that the county will need to find a total of $30 to $40. Million in savings over the next three years. And that's the 26, 27 and 28. Calendar years, which is our fiscal year. So. Generally, 70% of our general fund expense budget is dedicated to personnel. So to address that structural deficit, we're going to have to find 70% of the reduction from personnel expenses. Yesterday after four months of work with the office of Financial Management. Thank you very much and all. The county elected officials and department heads. We did announce that approximately 90 positions will be eliminated. Ahead of 2026 as we build the budget. And as the newspaper reported this morning, 60 of those positions are currently

1:27:42vacant, so that does not represent a loss of a job to an individual, however. Approximately 31 people have been notified that their job will be eliminated through this round of budget cuts. I just want to say, and I know I'm saying for all three of us, that. We're really grateful for the programs and services that these staff have delivered to Boulder county. Residents, and none of these decisions is a reflection of their performance of those employees, their teams, or their programs themselves. We don't yet have detail on what the following two years will look like, but we do know that in order to find the required savings, additional job reductions are likely. Also, we know that each of these jobs impacts a person. It's not just an FTE. Count in our personnel system, there's a person. Associated with that and possibly a family and maybe even a community that is going to feel the loss of those jobs. They're challenging times, and we recognize that these decisions impact all of us. It's not a decision that we ever want to make. And we're just grateful for the ongoing service and dedication of Boulder county staff to the Boulder county community. Thank you. As we move forward with the budget process and we look to reductions in future fiscal years. We will be guided by our

1:29:06strategic priorities, of course, which, just to reiterate our economic stability and economic security and social stability. Taking climate action and environmental stewardship and good governance. And we all know that we cannot have those priorities. Without good governance, which involves racial equity. It cannot happen without racial equity. We remain committed. To be competitive with compensation and benefits. Our county employees are providing supercritical services across. The community and. It's absolutely paramount that we provide. Competitive compensation and benefits. Our work supports thousands of people that are living in Boulder county and the work that county staff are doing truly matters to folks in the county. It really impacts people's day to day lives. We all hear about it. And we hear about it when it's going really good, and we hear about when it's not going so good.

1:29:59We want Boulder county staff delivering those services to be able to live in the community that they serve. We are negotiating with the Boulder County Employee Union and hope to be able to share the 2026 compensation package with staff soon that reflects our respect for their hard work and the dedication to the community. What already feels like a tumultuous time. We know the news of cuts and reductions. Is super difficult for both staff and the community. By putting together a plan and addressing our financial challenges. We're working to practice good governance by minimizing disruptions to staff and community members, we remain committed to working alongside Boulder count. County employees to continue to provide the best in public service. We extend our thanks to OFM the office of Financial Management for supporting this difficult but necessary process. Thanks so much, madam chair. Yes. Thank you both.

1:30:50And with that, I'm going to go ahead and turn over the presentation. To Steph, and I don't know if there's a presentation coming up on the screen. But if not, go ahead and start when you're ready. Thank you. Hello, commissioners. My name is Emily Beam. I'm the budget officer with the Office of Financial. Management. And today I will be presenting the board with the 2026 recommended budget for your consideration. Please note that this is just the first step within the budget process to establish our final 2026 budget. So the Boulder County Office of Financial Management respectfully submits the following 2026 recommended budget to the Boulder county commissioners and the residents of Boulder county for consideration, review and guidance. The recommended budget should not be viewed as a final budget document. But rather a decision making tool to facilitate financial discussion and promote understanding. The final budget will be adopted on December 9, 2025. This budget was constructed by the budget officer as directed by the board of county Commissioners and reviewed by the chief financial officer. Our total recommended expenditure budget for 2026 is $666,543,319.

1:32:12I would first like to thank all the elected officials and departments and their staff who contributed to this process. I recognize that this was an exceptionally challenging exercise this year, and I appreciate all your hard work. And collaboration throughout the process. I would also like to thank the budget team Jill, Melissa, Mitch, Heroko, and don for all their hard work completing this document. I am very grateful to work on such an amazing team with such exceptional. They are such exceptional. Public servants. So we're going to start by reviewing the 2026 budget goals. These were submitted as part of the budget instructions in May 2025. For the 2026 budget process. The main goal was to address Boulder County's structural deficit the government officers association advises that governments insure recurring revenues, meet or exceed recurring expenditures. And Boulder county acknowledges the importance of this business practice. Given the increased needs and changing federal and state funding, we aim to prioritize core services. And community commitments. Our 2026 budget will focus on allowing our expenses with available resources.

1:33:26So we started with goal one. Boulder county will cut the 2026 general fund budget by $13.2. Million over the next year, and we will be utilizing the split of 70%. Personnel and 30% operating. The board has asked all departments and elected officials to participate in the reduction. Planning. Through programmatic assessment, we will aim to review the efficiency of our operations, considering options such as attrition or other methods to manage work within constraints. The county will also seek to reduce a $3.96 million in other ongoing expense reductions and that's part of the $13.2 million overall. We will be looking at only considering one time operational budget increases for the 2026 budget process. We will review all of our facilities ownership and we will be restricting out of state travel for conferences for fiscal year 2026. All new budget requests must include language demonstrating alignment with the Boulder county strategic priorities and equity initiatives utilizing the racial equity and inclusion assessment tool and or demonstrating a clear connection to the racial equity action plan. As we continue to look at our goals, there will be no, the board will not be considering any new FTE requests as part of the 2026 budget process. This does include grant funded positions. The board does recognize that they have previously supported, they have staffing commitments associated with the alternative sensing

1:35:04facility and the jail expansion that will be considered during this process. The board will continue to strive to maintain a competitive compensation package that aligns with the current labor market for all staff. And we will conduct a formal review of all long term vacancies. We will realign our functions, reduce duplicative work, and contain expenses across the county. Additionally, we will evaluate the county's role and expenses in noncore services. To determine if their functions are provided by other entities. The budget office will be reviewing all funds to look at fund balance and our budget to actual spending and all capital requests, including computer, the capital Expenditure Fund and fleet, will be ranked countywide. With the assistance of the county administrator. So this is our starting point for our 2026 budget. Process. Next we had to look at our revenues. So you will see on this slide.

1:36:08This is a graph of the projections for 2026 property tax. Property tax revenue for fiscal year 2027 is estimated to be at $277,000,000 and this is based on the preliminary assessed values that were received from the assessor's. Office. This breaks down to a net mill levy of 23.693 mils and this does include the taber capped mill levy of. 24.64 mils. Plus a zero point 38 mils for abatements and a mill levy credit of negative 1.280. Property taxes are broken out by general use mill levees, which are allocated to individuals funds at the discretion of the board of county commissioners or the dedicated mill levees, which are allocated to specific funds and are restricted by the voter approved ballot initiatives that authorize the tax increase. This includes the developmental. Disabilities fund, the health and human services fund and the human services safety net fund. Colorado revised statute CRS 29 1301 limits the county's general use property tax increase to amount no greater than 5.5% above the previous year's property tax and CRS 29 117 limits our dedicated property tax increase to an amount no. Greater than 5.25 above the previous year's revenues. In computing the limits.

1:37:35The increased valuation for. Assessment is based on new construction, annexation or inclusion of additional land, and other exclusions are accounted for in this analysis. So when you're looking at the chart above, Our 2025 column is based on actuals. Our 2026 column is based on our preliminary assessed value and all the statutory revenue limitations that we just discussed, and then as we're looking forward at 2027 through 2030, we're using their current assumptions that reflect the known changes in assessment rates per statute and the assumed actual value growth of nine point. 58%. In reassessment years and 0.4 in non reassessment years and these percentages are based on the eight year average for the categories described above. We then had to look at our next major revenue source, which is our sales and use tax. Revenues. The Boulder county sales and use tax rate is comprised of individual voter approved county sales and use tax ballot measures adopted to support county programs. These revenues are dedicated to. Supporting the following funds the Rhode and Bridge Fund, the offender management fund, the Worthy Cause Fund, the Open Space Fund, Sustainability Fund, Wildfire Mitigation Fund, Emergency services fund affordable and attainable housing fund and trails projects in the dedicated resources fund. This graph shows the actual revenue collections for sales and use tax revenues for fiscal year 2023. 2024 and

1:39:13year to date for 2025. And as you can see based on this graph, Currently, our collections are down. Over last year, negative 1.93%. So this is something that we're very carefully monitoring. We use this data to prepare projections for our sales and use tax revenues going forward. So, based on our year to date collections, we have drafted the following projections. We are estimating that our sales and use tax collections will be down negative 1.8% for fiscal year. 2025 and we are budgeting a 0% increase to our revenues for 2026 and then conservatively going forward, in order to address our changing. Economic patterns. So in order to prepare the Boulder county for the 2026 budget process, the budget team prepared a projection for the general fund. So this is just specific to our general fund, and we're looking at a revenues versus expenditures based on our estimated revenues as well as our estimated expenses. The expenditure. But it does include our recommended budget for fiscal year 2026. As you can see, based on the graph, the county is in a structural deficit. This means that our annual expenses are higher than our annual revenues, and every year we are required to utilize our fund balance to cover these annual costs. And you can see it continues to grow upward. And this is not a sustainable

1:40:48approach for our organization. We then recalculated these numbers to reflect the guidance that we provided. In the budget instructions. So this graph reflects all recommended reductions that are included in the recommended budget. For fiscal year 2026. This also includes an additional ongoing reduction of $13.2 million. For fiscal year 2027 and 2028, and it includes that 70% to 30% split between personnel and operating for these fiscal years. And you can see as the graph crosses over the green line goes on top of the lighter green line, indicating that revenues are now outpacing. Expenditures and putting boulder count. County in a sustainable state going forward. So when we finalized our recommendation for the recommended budget, we utilize the following criteria, which is based on board direction. We only included new and new state or federal lease statutorily required projects. We did include prior year projects that were previously part of the adopted budget. So any previous commitments that we had already discussed in prior years and any requests that are revenue backed. This would include our dedicated resources fund. As a general example, We also did include any departmental reductions, so all departments and offices reductions are included in the recommended budget, which we'll see on the next slide. And our 2025 reductions are part of the base budget. So any of the elimination of vacant positions

1:42:31that we did at the quarter two budget amendment hearing. Are included in the base budget. It also includes the human services reductions in the Social Services fund for 112. As part of the base. So this is the recommended budget for 2026 based on fund. And you can see we do have our base budget, which does include all personnel costs, including wages, any increases, benefit increases and cost. Of living allowances. And the distribution across staff is still being determined. As mentioned earlier, as well as any ongoing operating budgets that are part of a departmental space. You can then see in the next column any identified reductions from the departments are identified, and then we do have increases based on. Necessary commitments in order to continue our operations for 2026. The final column does indicate our recommended budget by fund, and you'll see on the top. Line.

1:43:33Our general fund based budget is established at 266,000,000. $72,078. As noted, this is the very first step of our 2026 budget process. The next steps are next week, October 7 and 9th. You will hear from our elected offices and department heads their budget presentations. This will include any budget request for the 2026 fiscal year. On October 14, 2025, we will have a public hearing on the recommended budget, and this will allow for public comment. On November 6, we will have the budget work session where the board will provide direction on the 2026 budget process and we will utilize this guidance to prepare our final budget for adoption, which is scheduled for December 9. I want to thank the board for all their support during this budget process and let the public know that if there is additional detail on the Boulder county website, This will have our full recommended budget broken out by fund as well as any remaining decision points. For the board's consideration. And members of the public can also share comment with the board through the online form@boco.org. budget so that is available for the public to reach out. And we do encourage public participation. And that concludes the presentation. Thank you, Emily. I appreciate the presentation. Any questions from board members? Commissioner levy. Well, one comment and one question. And

1:45:19the comment is when you were back on the slide. On the projected property tax revenue, and you were noting state law. Which changed. And on the voter approved property taxes. That current law limits those to a 5.25% increase year over year? Yes, I don't know if we did this on all of those when they were approved by the voters. Because I wasn't sitting in this seat then, but I believe at least some of them. And at the time included a tabor override. Not for this new law that came into effect. We would not have to be lowering those mill levies in order to stay within that cap. And you're nodding. I just wanted to just make a note here. For the public. Really, that that law does allow us to go to the voters. And ask to retain all the revenue that is currently being that would be raised by the current mill levy on that. So what the legislature did in the special session.

1:46:28Really overrode the will of the voters on these, and so we do have that opportunity. To go back and say, hey. You said we could keep all of this. And we'd like to do that. We don't have any current plans to do. That, but that's just something to keep in mind. And then the question. I had is. On the slide. That does show. The. I think it's number nine. I'm looking at the PDF and not the. That shows what our revenues will be relative to our expenses, incorporating the three years. Of $13.2 million budget cuts in there. What? This doesn't show, and I just wondered if. You can tell us what the projected unrestricted fund balance would be out there in 2030. It is one thing to pull it up, but we haven't programmed five years of capital. Projects in either. So, I mean, it's a number, but it only has this year's. Capital project plugged in so it doesn't have all the expenditures associated with future one time expenditures. It doesn't have a lot of things that we can't project right now, but.

1:47:49I know we do have those projections, and so I was just wondering what it is. It would put our fund balance at $133,000,000. Okay, thanks. That was the only question I had. Thanks. Thank you. Thank you. First of all, thank you. Thanks for all the information, the presentation. I wondered if you could go. To the slide. Looks like number twelve. It's just the budget calendar. Sure. And you spoke to that? I. Just wanted to ask. If you could just clarify for folks who might be interested about how they could be participated in any form. Which one of these are public meetings? Will be on the advanced agenda as administrative meetings, which are also public meetings and or. There's one on here is public hearing, but I'm thinking, so I don't. Know if that's the only public hearing where people could come and give public comment. But you didn't mention also the website, so just wanted to ask that clarification. Please. Yes.

1:49:01So October 14 is a public hearing, so they are available to provide public comment. I'm going to ask Natalie, the commissioner's deputy, for guidance on the other two. Thank you. Natalie Springer, commissioner's deputy for the record. So for the October 7 and October 9 dates, as well where the commissioners will hear from department. Departments and elected offices. That will be a public meeting that will take place here in the hearing. Room, so the public's welcome to join us both, either in person or online. Okay, thank you. And someone is just for logistics. Just to planning, because we've done our budget processes differently over the last four years, so thank you for that. And we've had some conversations and obviously given guidelines, and we know staff's been working a lot over the last couple of months to get to this point, so I don't. Have additional questions at this point, and it doesn't look like there's any others. Perfect. Thank you for the presentation. And then.

1:49:58We'll go to item eight a. No, item eight b. Yes. I will now be presenting the recommended budget for Burgundy park public improvement district. And we're pulling up the slides now. Oh, this isn't it. This is the flat irons fist. The trailhead. Lovely spring. Thank you. It's so hard to move that mouse. So we're going to start with a little bit of background and details on the public. Improvement district. This district was formed by residents to collect property tax revenues to be contributed toward the expenses of paving its subdivision roads. A levee of 16.597 mills was authorized by the Boulder county residence within the district's boundaries through a ballot measure in November 2017. The district agreed to fund 70% of the initial road capital reconstruction. The remaining 30% was contributed by Boulder county and 100% of all subsequent road resurfacing costs. The initial road improvement project was completed in fiscal year 2020. In 2023, the Burgundy Park Homeowners Association. Proposed a mill levy reduction to reduce the tax burden on homeowners in response to a 44% increase in property values within the district.

1:52:15In 2024. The budget included a temporary credit of 4.347 mils to reduce the net mill levy from the voter approved 16.59 seven mils to 12.2.5 mils. The 2026 budget recommends applying this temporary mill levy credit again and remaining at the lowered rate in perpetuity or until amended. So the 2026 recommended budget does include revenues of 37,575,000 and a recommended expenditure budget of 53,619,000, which does include utilization of fund balance, which they do have available. That finalizes the presentation for the Burgundy Park Public Improvement district. Thank you, Emily. Any questions in regards to the Burgundy park. No questions. Thank you, Emily. I do just have one question. If I. May. And I'm looking at our full packet. So now I can't give you a. Great slide number, but it's the temporary mill levy reduction is the title of the slide. And it's that last bullet point.

1:53:24I just heard you say. So just when the budget I see the budget recommending the temporary mill levy credit, but then there's a second part of that says, and remaining at the lower rate in perpetuity or until. Amended. And so not necessarily for right now, but for further budget conversations, I'll just be interested. To see how. That would be coming as a decision point in the budget process. The first piece versus the second piece and or both together. So yes, and we will be looking at the full analysis of the fund. Great. Thank you. No additional questions on this one, and we'll move to item eight c. So next we will be looking at the recommended budget for the homestead public improvement district. So we'll start some with some background and details. Residents establish the district to collect property. Taxes that would help fund the cost of resurfacing county roads within this district. In November 2024, Boulder county residents approved a levy of 23.610 mils in perpetuity on properties within the district. The district committed to fund 70% of the initial road capital reconstruction, with Boulder county providing the remaining 30%. The initial road improvement work is expected to start in fiscal year. 2026. Here is a map of the current subdivision roads. So for the 2026 recommended budget, We are budgeting a revenue budget

1:55:11of $121,727 and a total recommended expenditure. Budget of 243,722. And this does utilize fund balance, which is available in the fund. And that concludes the presentation for the Homestead Public Improvement District. Thank you, Emily. Any questions or comments? On the homestead. It doesn't look like it. Thank you. So we'll go ahead and move to item 8d, which is the public meeting on the 2026 recommended budget for the Netherland eco Pass PID. Yes, I will now be presenting the 2026 recommended budget for the Netherland Eco pass public improvement district. So we'll start with some background and details. This public improvement district was approved by the voters in November 2013 and extended in November 2023. It has a similar boundary as the Netherland Library district. It's a 1.85 mil property tax, which was originally approved for 2014 through 2023. And extended for 2024 through 2033. All permanent residents of the district are eligible to receive the eco path. And new in 2024 is the district can be offered to employee Ecopass to employees within the ecopass program.

1:56:42The Boulder County Commissioners serve as the decision making body and is advised by a five member advisory committee. And the day to day operations are administered by the town of Netherlands staff. So for the 2026 recommended budget, Our revenue budget is established at 216,581 and our total expenditure budget of 337,000. Which does utilize fund balance, which is available within the fund. If you have any additional information regarding the Netherland Ecopass public improvement district advisory committee. There is a website where folks can go to get some additional information. You can also reach out to Boulder county through the mobility for all program staff through builder County. Thank you, Emily. Any commission? Any questions or comments on the Netherland? No questions, but I do have just a note on this. That I believe. There was some talk about possibly having. The revenue from the fund. Actually cover Boulder county administrative expenses, and I see this in the budget. Is being paid for with the proceeds. Because I know that question came up and I didn't remember that we actually talked about it. Yes. Hi, Melissa Hunter with Boulder County's mobility for all team. And I'll just ask you, Melissa, if you don't mind, just move the. Yeah, move that microphone a. Little bit taller for me. There you go. Thank you. Yes. So, for the boulder. County

1:58:29administrative fee. We decided to throw that in the budget this year after talking to. The advisory committee just to cover some of the administrative costs that Boulder county staff has done to facilitate and manage the budget of the Nepdac itself, as well as provide support to the town of Ned for their eco pass administration. So that's kind of. What we hope, what we plan to put. Yeah, okay. No, thanks. So that did go to the advisory commission. Okay. All right. I didn't know whether that was actually going to come to us before it got put. In the recommended budget, so thanks. Sweet. Thank you. And I just have one. Question in regards to just the curiosity around. The update that was done. Two years ago. Maybe in regards to this one, when it got extended.

1:59:24Was the question on the employee eco pass. And so it was just more of a curiosity because last year. There wasn't an update yet because it was so new. Yes, I do have an update for you. As of yesterday, we do have 481 employees in the program. And that's about 40 employers. Their employees are enrolled in the program. And then we stood that up at the end of last year. So we've been slowly growing over time, but that's where we're at now, and we're hoping. To grow to about 1000 employees over the next year. Okay, so that was my next question. You've basically doubled the current numbers for your budget proposal. Okay, that's great. That's a great update. Thank you. Thank you. It doesn't look like there's any additional questions on this item. Thank you.

2:00:12So we'll move to item. Which is as reads as item number five. Public meeting on the 2026 Sacramento budget for the El Dorado Springs Public Improvement District. Yes, thank you. I'll be presenting the El Dorado Spring Public Improvement district. Recommended budget for 2026. Starting with some background and details. In 2024, the voters approved a ballot measure that authorized the formation of the El Dorado Springs Public Improvement District to take over ownership of operations and maintenance. Of the El Dorado Spring sewage treatment plant and collection system from the existing local. Improvement district, which will be dissolved after its debt is retired in December 2025. The PID will continue to provide wastewater and sewage services. The annual operating costs are approximately $140,000, excluding capital replacements and non routine maintenance. The rates and fees will remain as currently set under the existing regulations, and no new taxes are proposed initially, but future funding measures may be considered. So for the 2026 recommended budget, Our total revenue budget is established as $138,233, with a total expenditure budget of $133,000.

2:01:39And that concludes our presentation for the El Dorado Springs Public Improvement District. Thank you, Emily. Any questions or comments? Just a comment that there'll be some public meetings later on this year to discuss the district. Thank you. Thank you. Okay, and I don't have any questions. On this item. So thank you, Emily, thanks, OFM and staff for your leadership. And, of course, everybody who's been working on this throughout the organization to get us to this initial recommended budget and appreciate the update on when the hearings are going to be taking place. At additional meetings. Ways for folks in the community to participate either online or through email, et cetera so there is not another item on our agenda today, so I'm going to go ahead and adjourn our business meeting for today. Thank you.