Oct 22, 2025 Board of Directors Meeting

UH, GOOD

[00:00:01]

DENNIS HERE, JUDGE HEKE.

I AM HERE.

COMMISSIONER CALVERT.

COMMISSIONER CARPENTER? YES, MA'AM.

COMMISSIONER CLAY FLORES MARCUS, MAD FOR COMMISSIONER CLAY FLORES.

THANK YOU, JUDGE.

K.

COMMISSIONER GLASSBY FOR JUDGE CO.

CLEAR DODGING JUDGE EVANS.

HERE.

COUNCILMAN GALVAN.

REPRESENTATIVE HEEN IS EXCUSED TODAY.

CHAIRMAN HAS LOCKER IS ALSO EXCUSED.

MAYOR HARRY, MAYOR CIO.

HERE.

JUDGE JONES.

HERE.

JUDGE KELLY.

HERE.

JUDGE JUDGEY.

HERE.

MS. LEWIS? HERE.

THANK YOU, JUDGE LUTZ.

COMMISSIONER MARTINEZ.

HERE.

SENATOR MENENDEZ.

SIR GONZALEZ FOR SENATOR MENENDEZ.

THANK YOU.

COMMISSIONER MOODY.

HERE.

MAYOR RILEY IS EXCUSED TODAY.

I'M PHILLIP CAMPOS FOR MAYOR RILEY.

OH, THANK YOU.

COUNCILWOMAN SPEARS HERE.

THANK YOU.

COUNCILMAN BRADLEY.

COUNCILWOMAN LEBOWSKI.

FIRST BRADLEY.

THANK YOU JUDGE LAR.

MAYOR SUAREZ.

HE DID, UH, CALL THIS MORNING TO SAY THAT HE WAS NOT AVAILABLE.

YES.

OKAY.

THANK YOU.

JUDGE TEAL.

HERE.

MR. RV.

PRESIDENT VASQUEZ.

HERE, JUDGE WHITMAN.

COMMISSIONER AKIN FOR JUDGE WHITMAN.

THANK YOU.

COUNCILMAN WHITE RO EZ FOR COUNCILMAN WHITE.

THANK YOU MAYOR DELEON.

MR. HACKMAN, SENATOR S WE HAVE A QUORUM.

I THANK YOU NATALIE.

IT WILL STAND FOR THE SANCE TO THE FLAG OF THE UNITED STATES OF AMERICA AND TO THE REPUBLIC FOR WHICH IT STANDS ONE NATION UNDER GOD, INDIVISIBLE WHEN THEY'RE THE I JUSTICE FOR ALL HONOR THE TEXAS FLAG.

I PLEDGE ALLEGIANCE TO THE TEXAS ONE STATE UNDER GOD.

ONE AN INDIVISIBLE.

THANK YOU.

I'D LIKE TO UP FIRST BEGIN BY THANKING EVERYONE FOR COMING THIS MORNING.

I KNOW EVERYONE'S VERY BUSY, BUT THANK YOU FOR YOUR TIME.

UH, EVEN TO THIS BOARD, WE HAVE A COUPLE OF NEW MEMBERS THAT I'D LIKE TO QUICKLY INTERVIEW.

I SEE ONE OF THEM AND THAT COMES ALONG IN MISTY SPEARS FROM, UH, UH, DISTRICT NINE.

YOU WANNA WELCOME ME? THANK YOU FOR COMING TO JOIN AND ALTHOUGH HE'S NOT HERE, BUT RAUL IS HERE AND THAT'S GOING TO BE COUNCILMAN MARK WHITE FROM DISTRICT 10.

THANK YOU FOR BEING HERE.

RAUL KE TELLING ME CLAP FOR AND, UH, COUNCILMAN RICK GARVAN FROM DISTRICT SIX.

I'M NOT SURE IF IT'S REPRESENTED HERE OR NOT, BUT ANYWAY, WE WANT TO WELCOME OUR NEW MEMBERS AND GLAD TO HAVE YOU ON THE BOARD AND LOOKING FORWARD TO YOUR LEADERSHIP.

AND I JUST WANNA SAY QUICKLY THAT RAUL, ALTHOUGH HE WORKS FOR COUNCILMAN WIFE, HE USED TO LIVE IN LIGHT OAK, BUT HE JUST MOVE BACK FROM LIGHT.

SO PRESIDENT, WELL WITH THAT WE'LL TAKE US TO ITEM FOUR, WHICH IS PUBLIC.

UH, COMMENTS, UH, ARE THERE ANY PUBLIC COMMENTS? THERE ARE NO PUBLIC COMMENTS TO YOUR, THANK YOU.

THANK YOU THEN.

AND THAT WILL TAKE US TO ITEM FIVE, WHICH ARE DECLARATIONS OF CONFLICT OF INTEREST.

ARE THERE ANY ITEMS THAT ANY MEMBER NEEDS TO, WHAT ADDRESSES A CONFLICT?

[6. Announcements]

THAT WILL TAKE US TO ITEM SIX, WHICH ARE ANNOUNCEMENTS.

OH, OH YES.

[00:05:01]

THESE ARE FROM OUR REGULARIZATION DETAILS AND I NOT SURE WHO THAT IS.

IS THAT CLAUDIA? THAT'S, UH, ALICIA.

ALICIA.

OH, THERE SHE IS.

OH YEAH, THAT'S RIGHT.

SHE'S A KEY MIND.

GET LATER.

I'LL GET IT LATER.

BUT ANYWAY, BEFORE YOU LEAVE A MEMBERS, YOU'RE WELCOME TO GRAB A D ON YOUR WAY OUT AND WE THANK THEM SO MUCH FOR PUTTING THOSE BAGS TOGETHER FOR US.

AND THE NOMINATIONS COMMITTEE WILL BE MEETING AFTER THIS MEETING SO YOU KNOW WHO YOU ARE AND, UH, WE LOOK FORWARD TO THAT.

ALRIGHT, ANY OTHER ANNOUNCEMENTS THAT I NEED TO MAKE? MR. ER THERE? THAT'S IT.

OKAY.

THEN YOU CAN GO TO THE TABLE.

AND

[7. Executive Director’s Monthly Report - Cliff Herberg. A. Upcoming Events: B. Staffing Updates: C. Program Status and Operational Updates: D. Organizational and General Administration Updates:]

THAT'S OKAY.

, THANK YOU.

JUST A FEW UPDATES ON THINGS THAT, UH, ARE HAPPENING LATER THIS MONTH AND INTO NOVEMBER, UH, IN OUR AGING PROGRAM.

OUR MEDICAL EN OPEN ENROLLMENT, UH, COUNSELING SESSIONS, UH, BEGAN OCTOBER 15TH AND END DECEMBER 7TH.

ACOG'S BENEFITS COUNSELING TEAM OFFERS FREE ASSISTANCE AT COMMUNITY LOCATIONS AND AT OUR ACOG OFFICE.

SO WE HAVE A LOT GOING, UH, A LOT OF, UH, MEETINGS THAT HAVE GONE ON THROUGH THE MONTH IN THE REGION AS WELL AS SEVERAL GOING FORWARD.

UH, THE DATES AND LOCATIONS FOR OPEN ENROLLMENT SESSIONS THROUGHOUT THE AREA ARE CONTAINED IN THE FLYER AND IN YOUR AGENDA, AS WELL AS, UH, ON THE ACOG WEBSITE.

OR YOU CAN CONTACT VANESSA MIRANDA AT VEEAMMIRANDA@ACOG.GOV IN OUR PUBLIC AFFAIRS AND COMMUNICATIONS.

UH, INVITATIONS TO THE ANNUAL MEETING ALONG WITH THE REGIONAL AWARDS LUNCHEON WILL BE SENT OUT NEXT WEEK, SO SAVE THE DATE FOR WEDNESDAY, DECEMBER THE 10TH AT 10:30 AM UH, WHICH OF COURSE IS OUR LAST MEETING FOR 2025 WITH A LUNCHEON IMMEDIATELY TO FOLLOW AT OUR USUAL LOCATION AT THE NORRIS CONFERENCE CENTER, UH, IN PUBLIC SAFETY, OUR, OUR REGIONAL LAW ENFORCEMENT ACADEMY JUST GRADUATED 20 CADETS, WHICH IS ONE OF OUR SMALLER CLASSES ON OCTOBER 8TH FOR THE 2025 BRAVO CLASS.

OUR NEXT CLASS IS 2026 ALPHA, WHICH BEGINS ON FEBRUARY 2ND, 2026.

AND SO FAR HAS 14 CADETS COMMITTED.

THE APPLICATION PERIOD WILL REMAIN OPEN UNTIL DECEMBER.

AND, UH, AS ALWAYS, PLEASE SPREAD THE WORD THROUGHOUT YOUR COMMUNITIES AND YOUR LOCAL POLICE DEPARTMENTS THAT, UH, WE WOULD GLAD TO HAVE CADETS.

AND, UH, IF THEY WISH TO SPONSOR ONE, IT'S A FANTASTIC WAY FOR THEM TO SELECT THE CADET AND, AND THE RECRUIT THAT THEY WANT TO HIRE.

UH, AFTER THE TRAINING, UH, FOR ANY QUESTIONS, PLEASE CONTACT OUR ACADEMY MANAGER, MIKE RITCHIE.

UH, AS MAYOR DENNIS MENTIONED, THIS MONTH IS ACOG'S WEATHERIZATION MONTH, UH, AND IT'S OUR, UH, RECOGNITION OF, OF, UH, THE WEATHERIZATION PROGRAM.

SO WE HAVE SWAG BAGS FOR YOU.

AND ALONG WITH THAT, UH, WE WANT TO ANNOUNCE THAT THE PROGRAM BEGAN WORK IN PEARSALL ON A 38 UNIT APARTMENT COMPLEX, KNOWN AS THE ATHAL APARTMENTS.

AND THEY WILL RECEIVE, UM, BECAUSE THEY ARE A DEPARTMENT USDA OWNED PROPERTY AND THE QUAL THE COMPLEX QUALIFIED FOR A HUNDRED PERCENT WEATHERIZATION UPGRADES IN THE AMOUNT OF 120,000.

AND OF COURSE, IF YOU HAVE ANY QUESTIONS ABOUT THE WEATHERIZATION PROGRAM, WE ARE ALWAYS LOOKING FOR HOUSES AND MULTI-UNIT COMPLEXES THAT, UH, ARE ELIGIBLE FOR WEATHERIZATION.

AND YOU CAN CONTACT ALICIA, WHO YOU SAW EARLIER.

UH, AND FINALLY, AS THE MAYOR MENTIONED, UH, THE NOMINATIONS COMMITTEE, ALL OF THE FORMER CHAIRS WE WILL BE MEETING, UH, AFTER THE, AFTER THE BOARD MEETING TO, UH, MAKE NOMINATIONS FOR 2026.

SO PLEASE STICK AROUND.

THAT MEETING SHOULD LAST 15 TO, WELL, 15 TO 20 MINUTES WITH A LITTLE BIT OF LUCK.

UH, AND FINALLY, I WANTED TO JUST SAY AND PARDON MY, UH, GRAVELY VOICE, RAGWEED IS GETTING THE BEST OF ME.

UH, THIS MARKS TWO YEARS THIS MONTH.

MARKS TWO YEARS IS MY POSITION AS THE EXECUTIVE DIRECTOR HERE AT ACOG.

AND SO I WANTED TO THANK YOU ALL FOR YOUR GUIDANCE AND FOR YOUR SUPPORT AND FOR YOUR CONFIDENCE IN ME.

AND WITH THAT, BE GLAD TO ANSWER ANY QUESTIONS YOU HAVE.

WELL, LET'S GIVE YOU A ANSWER.

THANK, ARE THERE ANY QUESTIONS OF THE EXECUTIVE ON HIS BOARD? ALRIGHT, THAT

[8. Consent Agenda The consent agenda consists of items considered being of a routine nature and contains items recommended for approval by the Executive Committee or by the Board Chair and the minutes from previous Board of Directors meetings. These items will be enacted in one motion, or any member of the Board may request that items be removed from the consent agenda and considered separately for purposes of discussion and voting.]

ARE THERE ANY ITEMS HERE, A THROUGH J THAT ANY MEMBER WOULD LIKE TO ASK? ANY ITEMS THAT YOU'D LIKE TO HAVE FILLED FROM THE CONSENT AGENDA? HEARING , IF THERE ARE NONE, IS THERE A MOTION PLEASE? MOTION TO OPEN APPROVAL.

WE GOT JUDGE, JUDGE

[00:10:01]

I'LL SECOND.

AND MS. LEWIS, I, ANY QUESTIONS OR DISCUSSION? ALL IN FAVOR WITH AYE.

ANY OF OPPOSED? NO OBJECTION NECESSARY.

THANK YOU VERY MUCH.

AND THAT WILL TAKE US TO, UH, YOU KNOW'S GONNA TAKE US, UH, FROM HERE TO THE EXECUTIVE COMMITTEE REPORT.

OKAY.

UH, CAN EVERYBODY HEAR ME ON TAPE WITHOUT MICROPHONE?

[9. Discussion and appropriate action on the recommendation to approve the 3rd Quarter 2025 financial report - Julio Elizondo. A. Financial Statements B. Financial Dashboard C. Financial Presentation D. Quarterly Investment Report]

ITEM NUMBER NINE IS DISCUSSION.

THE APPROPRIATE ACTION ON THE RECOMMENDATION TO APPROVE THE THIRD QUARTER OF 2025 FINANCIAL REPORT WITH YOU.

MORNING.

MORNING.

THANK YOU CHAIR DENNIS AND, UH, MEMBERS, MEMBERS OF THE BOARD.

MY NAME IS HOBYO.

I AM YOUR CHIEF FINANCIAL FINANCIAL OFFICER.

TODAY I'LL BE GIVING Y'ALL, UH, UH, THIRD QUARTER FINANCIAL STATEMENTS.

WE COVER THE FINANCIAL, THE FINANCIAL DASHBOARD, THE FINANCIAL STATEMENTS, STATEMENTS, BOTH THE BALANCE SHEET, REVENUES AND EXPENDITURES, THE ACCOUNTS WITHIN, AS WELL AS THE ADMINISTRATIVE BUDGETS.

IF YOU ALL RECALL DURING THE LAST JULY QUARTERLY UPDATE, UH, WE DID BRING A REVISED OR REVAMPED FINANCIAL DASHBOARD.

SO AT THE, HERE, HERE, THAT'S WHAT YOU, YOU SEE HERE.

UH, I DID GIVE AN EXPLANATION OF WHICH EACH ONE OF THESE METRICS REPRESENTS.

SO AT THE END OF THE THIRD QUARTER, UH, WE DID HAVE UP IN THE TOP LEFT, UH, METRIC THERE, THE PERCENTAGE EARNED AND SPENT.

WE ARE CURRENTLY AT 68% SPENT FOR THE YEAR, UH, TYPICALLY THREE QUARTERS OF THE WAY INTO THE YEAR.

YOU'D LIKE TO BE AT THAT 75% MARKER.

THERE ARE SOME REASONS FOR THOSE THAT WHICH I WILL COVER WHEN I GET TO, UH, THE PROGRAM, VARIANCE SLIDES.

BUT YOU CAN SEE IN THAT CHART RIGHT BELOW, WE ARE, UH, UNDER BUDGET IN SEVERAL PROGRAMS, PRIMARILY THE, THE PRIME, THE BIGGEST RE UM, AREAS ARE IN THE AGING.

AND AGAIN, I'LL COVER THAT EXPLANATION SHORTLY.

THE OTHER TWO METRICS THAT I DO WANT TO HIGHLIGHT IS THE CASH AND INVESTMENTS.

BOTTOM RIGHT CORNER, YOU CAN SEE WE'RE AT 11.8 AT THE END OF SEPTEMBER.

GREAT FINANCIAL POSITION TO BE IN.

WE'RE A COUPLE MILLION HIGHER THAN WE WERE LAST MONTH.

UH, THAT IS ALL DUE TO OUR, UH, AGGRESSIVE COLLECTIONS AND ACCOUNTS RECEIVABLE, WHICH IS HIGHLIGHTED ON THE BOTTOM LEFT CORNER.

THE AGED ACCOUNTS RECEIVABLE REPORT, YOU CAN SEE WE'RE HOVERING AROUND THE $7 MILLION AR MARK, WHICH IS A LITTLE LOWER THAN WHERE WE TYPICALLY SAT.

SIT.

UH, GREAT.

AGAIN, GREAT POSITION TO BE IN.

THAT, UH, BRINGS US TO OUR BALANCE SHEET.

YOU CAN SEE AT THE END OF, UH, SEPTEMBER, WE ARE $51.5 MILLION, A COUPLE MILLION HIGHER.

THAT'S PRIMARILY DUE TO THE CASH AND INVESTMENTS.

AND AT THE END OF SEPTEMBER, WE ARE AT $2.8 MILLION SURPLUS.

OUR FUND BALANCE, BOTH UNRESTRICTED AND RESTRICTED, UH, SUMMARIZED VIEW OF PROGRAMS. AT THE END OF SEPTEMBER, WE'RE AT $12.1 MILLION UNRESTRICTED AND $2.6 MILLION IN RESTRICTED.

THIS IS PRIMARILY BECAUSE OF, UH, MILITARY AND VETERANS AFFAIRS, AS I'VE KIND OF HARPED ON THEM ALL YEAR LONG.

THEY'RE DOING AMAZING AND AND EXCEEDING EXPECTATIONS.

THEY'RE CURRENTLY AT ABOUT $10.4 MILLION, UH, FUND BALANCE AT THE END OF SEPTEMBER.

CASH AND INVESTMENTS, ONE OF MY FAVORITE SLIDES, AGAIN, AS I MENTIONED EARLIER, $11.8 MILLION.

UH, GREAT POSITION TO BE IN.

THIS ALLOWS US TO, UH, INVEST PRIMARILY IN OUR INVESTMENT POOLS, WHICH WE HAVE OUR INVESTMENT SUMMARY HERE BROUGHT TO YOU BY THE PUBLIC FUNDS INVESTMENT ACT AT THE END OF THE THIRD QUARTER.

WE ARE, I'M HAPPY TO AND PLEASED TO ANNOUNCE THAT WE'VE ALREADY COLLECTED $116,000 IN INTEREST FOR THE YEAR.

UH, AGAIN, THIS IS PRIMARILY DUE TO THOSE THAT CASH THAT WE HAVE THE LIQUID CASH AND WE'RE ABLE TO INVEST IN OUR LOAN STAR AND TAX POOL ACCOUNTS.

AND WE DO HAVE OUR CDS LISTED HERE AS WELL, WHICH ARE THROUGH CHURCH, BANK AND TRUST.

AND THEY'RE CONTINUING TO GIVE US COMPETITIVE RATES.

ACCOUNTS RECEIVABLE, AT THE END OF SEPTEMBER, WE ARE AT $7.4 MILLION.

UM, THE OVER 90 IS ABOUT $1 MILLION.

I'M VERY PLEASED TO ANNOUNCE A A AS OF LAST WEEK, THE T OVER 90 HAS BEEN PAID TO US, SO THAT SHOULD BE GO AWAY FOR NEXT MONTH.

AND THEN THE O ONLY REALLY OTHER OUTSTANDING ITEM WE HAVE IS THE MAC PAYMENT, WHICH THAT IS A QUARTERLY REPORT BILLED AFTER THE FEDERAL QUARTER END.

UH, SO THAT'S NORMAL FOR THEM TO BE, UH, OVER 90 IN, IN THIS CATEGORY.

AS I MENTIONED EARLIER, WE ARE A $2.8 MILLION SURPLUS TEAM IN THE QUARTER.

AND, UH, ON THE ALAMO AGING SIDE, WE ARE CURRENTLY 518,000 BELOW BUDGET.

THIS IS DUE TO REDUCED WELLNESS SERVICES DEMAND.

UH, IF YOU RECALL EARLIER IN THE YEAR, DURING THAT JULY FLOODING, THE THIRD LARGEST CONGREGATE MEAL PROVIDER, UH, SHUT DOWN FOR A COUPLE OF WEEKS.

AND SINCE THEN THEY'RE STILL SERVING UNDER CAPACITY, UH, PROGRAM DOES ANTICIPATE HAVING SOME CARRYOVER FUNDING FOR FY 26.

THEY ARE IN THE MIDDLE OF CLOSEOUT WITH HHS RIGHT NOW, SO WE DON'T HAVE THOSE FIGURES YET.

BEAR AGING IS $1.9 MILLION BELOW BUDGET.

THIS IS DUE TO, UH, LOWER UTILIZATION OF WELLNESS SERVICE AREAS AS WELL AS MAINTENANCE DELAYS THROUGH THEIR CONTRACTOR.

TRANSPORTATION SERVICES PROGRAM IS CURRENTLY UTILIZING, UH, SOME OF THOSE FUNDS.

THEY GOT APPROVAL FROM HHS TO UTILIZE THOSE FUNDS FOR PUBLIC OUTREACH.

SO YOU WILL SEE SOME BILLBOARDS,

[00:15:01]

AND, UM, WE ARE CURRENTLY ANTICIPATING CARE RIVER FUNDS AS WELL FOR FY 26.

BUT AGAIN, VERY MUCH LIKE ALAMO, THEY ARE, UH, UH, WAITING FOR THOSE FIGURES TO COME OUT.

MILITARY AND VETERANS AFFAIRS IS CURRENTLY $427,000 BELOW BUDGET.

UH, THIS IS DUE TO THE MERE GRANT FOR THE MCMULLIN COUNTY PASS THROUGH.

THAT WAS ADDED DURING THE JULY BUDGET MODIFICATION PROCESS.

UH, THERE WAS A CHANGE IN THE RULES FROM O-L-D-C-C, WHICH, UH, ALLOWED MCMULLIN COUNTY TO SERVE AS TO SERVE AS THEIR OWN FMS. SO FOR THE REMAINDER OF THE YEAR, THERE WILL BE A VARIANCE, UH, FOR THIS PROGRAM.

IDD IS CURRENTLY SITTING IN AT $221,000 DEFICIT.

IF YOU RECALL, DURING MY JULY PRESENTATION, UH, I, I ANNOUNCED THAT THERE WAS A, UH, AN ISSUE IN THE MEDIC MEDICAID ADMINISTRATIVE CLAIMING, UH, PARTICULARLY THE TIME STUDY THAT'S DONE AT THE STATE LEVEL WITH HHS THAT RESULTED IN $112,000 DEFICIT FOR THE QUARTER AND PROGRAM IS FORECASTING A, A, A DEFICIT TO END THE YEAR.

BECAUSE OF THAT.

UH, SINCE THEN, THEY HAVE IDENTIFIED SEVERAL WAYS TO MITIGATE THIS LOSS.

THEY'VE ALREADY BEGUN IMPLEMENTING THEM, AND YOU'LL SEE IN HALEY'S PRESENTATION AND A COUPLE, UH, AGENDA ITEMS THAT THEY'RE FORECASTING A, A DEFICIT TO BEGIN THE YEAR.

BUT WE PROGRAM IS VERY HOPEFUL THAT THAT, UH, THOSE PROCESSES THAT THEY PUT IN PLACE WILL ALLOW THEM TO, UH, MITIGATE THAT DEFICIT.

WEATHERIZATION IS $363,000 BELOW BUDGET.

UH, THIS IS PRIMARILY DUE TO THE D-O-E-B-I-O GRANT, UH, MUCH LIKE CLIFF ANNOUNCED A LITTLE WHILE AGO.

THEY DO, THEY ARE WORKING ON MULTIFAMILY UNITS AND THEY HAVE SECURED ONE.

UH, SO THEY DO ANTICIPATE SPENDING EXPENDING ALL OF THOSE FUNDS BY THE END OF THE GRANT YEAR.

AND LAST BUT NOT LEAST, WE HAVE OUR ADMINISTRATIVE BUDGETS.

WE'RE CURRENTLY AT 2% UNDER BUDGET.

UH, THIS IS WHERE WE WANT TO BE AT.

HALEY, AGAIN, WILL PRESENT TO YOU OR GIVE YOU GUYS AN UPDATE ON WHERE WE ARE ANTICIPATING LANDING FOR OUR FORECAST FOR THE REMAINDER YEAR, AS WELL AS OUR FORECAST ON THE RECOVERY FOR FY 26.

AND SHE'LL GIVE AN EXPLANATION AS TO HOW WE, UH, DEVELOP THAT INDIRECT RATE WITH OUR FIXED CARRY FORWARD RATE.

THAT DOES CONCLUDE MY PRESENTATION.

I'D BE HAPPY TO ANSWER ANY QUESTIONS THAT YOU MAY HAVE.

THREE QUESTIONS FROM THE BOARD ITEM.

YOU WILL BE MOTION JUDGE STEELE, SECOND JUDGE EVANS ON SECOND.

ALL THOSE IN FAVOR STATE BY RAISING YOUR RIGHT HAND BY OPPOSED.

THANK YOU.

[10. Discussion and appropriate action on the recommendation to approve AACOG's 2026 Public Funds Investment Policy - Julio Elizondo.]

THIS MORNING IS ESPECIALLY APPROPRIATE ACTION ON THE RECOMMENDATION TO APPROVE, UH, ACO 2026 PUBLIC FUNDS INVESTMENT POLICY.

IT, THAT TOO.

THANK YOU SIR.

INVESTMENT ACT REQUIRES THAT WE BRING AN UPDATE TO OUR BOARD OF DIRECTORS, UH, OVER OUR INVESTMENT POLICY, ALL AMENDMENTS TO THE PUBLIC, TO THE INVESTMENT 2019, BUT WE ARE RECOMMENDING TWO CHANGES TO OUR POLICY.

THE FIRST CHANGE IS ON PAGE PAGE THREE OF THE ATTACHMENT, WHICH IS, UH, RECOMMENDING ADDING FOUR MORE RESOURCES TO, TO CHOOSE FROM WHEN SELECT VENDOR ON OUR, FOR OUR TRAINING.

EARLIER THIS MONTH, JOHN AND MYSELF ATTENDED OUR, OUR TRAINING FOR INVESTMENT, UM, FOR THE INVESTMENT ACT.

AND IT WAS RECOMMENDED THAT THERE ARE MULTIPLE, UH, CHOICES TO CHOOSE FROM.

SO WE ARE RECOMMENDING ADDING TML TEXAS STATE UNIVERSITY MOST, MOST OUR INVESTMENT POOL AND TECH SCHOOL AS WELL.

THE SECOND REVISION IS, IS ON PAGE NINE IS AND IS OVER SPECIAL PURPOSE FUNDS.

AC CURRENTLY HAS OVER 25 SPECIAL CORP FUNDS.

THE CURRENT POLICY WILL LIST EIGHT OF THESE WITH SEVERAL OF THOSE BEING OUTDATED.

RATHER THAN UPDATE THIS LIST DISMISS EVERY YEAR, WE ARE RECOMMENDING CHANGING THE LANGUAGE TO STATE HAS SPECIAL CORP FUNDS.

AND A GENERAL FUND STAFF RECOMMENDS THE APPROVAL, APPROVAL OF THE 25 PUBLIC FUNDS INVESTMENT POLICY, WHICH WAS LAST FOR THE BOARD BEGINNING OCTOBER OF 24.

UH, I'D BE HAPPY TO ANSWER ANY I ASK QUESTIONS IF YOU HAVE ANY AT THIS TIME.

WHAT IS, UH, TML AND AND TEXAS STATE SINCE IMA PROUD SOUTHWEST TEXAS STATE UNIVERSITY GRADUATE , WHAT, UH, WHAT IS, UH, WHAT ARE THEY OFFERING AT DML? SO IT'S THE SAME.

SO, UH, EARLIER THIS YEAR WHEN WE, JOHN AND I WERE SELECTING, UM, WE NOTICED THAT THE POLICY ONLY STATED WE HAVE THREE VENDORS TO CHOOSE FROM.

ONE OF THE ONES THAT WE WANTED WANTED TO SELECT WAS TEXAS STATE UNIVERSITY.

SO IT'S VERY MUCH LIKE THE ONE WE CURRENTLY ATTEND, ATTEND, BUT IT'S JUST AN IN PERSON EVENT RATHER THAN A VIRTUAL.

VERY GOOD DISCUSSION.

QUESTIONS FROM THE BOARD.

AND I JUST WANNA SAY TO TML, THAT'S GREAT TRAINING.

JUST RESIDENT .

IS IT FREE? ALL RIGHT, WE HAVE A MOTION TO APPROVE.

OH MY GOD.

MAKE.

THANK YOU JUDGE EVANS.

IS THERE A SECOND?

[00:20:01]

SENATOR .

THANK YOU.

ALL THOSE LABOR SIGNIFY BY REASON.

YOUR RIGHT HAND.

ANYBODY OPPOSED TO THAT? MOTION CARRIED.

THANK YOU.

THANK YOU.

THANK YOU

[11. Discussion and appropriate action on the recommendation to approve the proposed 2026 AACOG Budget - Haleigh Heins. A. 2026 Annual Budget Summaries and Spreadsheets 1. 2026 Agency Roll Up 2. 2026 Program and Titan Complex Budgets 3. 2026 Administrative Budgets (Indirect) 4. 2026 General Fund/Unrestricted Budgets]

HALEY, YOU READY FOR DISCUSSION AND APPROPRIATE ACTION ON THE RECOMMENDATION TO APPROVE THE PROPOSED 2026 ACCO BUDGET? GOOD MORNING CHAIR, CHAIR DENNIS AND MEMBERS OF THE BOARD.

MY NAME IS KATIE HINES, BUDGET ADMINISTRATOR HERE AT ACOG.

THE ITEM I'M BRINGING BEFORE YOU TODAY IS THE 2026 PROPOSED AGENCY BUDGET.

HERE'S AN OUTLINE OF WHAT WILL BE COVERED, WHICH INCLUDES THE BUDGET OVERVIEW, BUDGET BY CATEGORY, THE AGENCY ROLLUP FUND BALANCE PROJECTIONS.

BUDGET GUIDANCE IS USED TO CREATE THE BUDGET FOLLOWED BY PROGRAM, ADMINISTRATIVE GENERAL FUND, AND UNRESTRICTED BUDGETS.

ACOG'S OVERVIEW INCLUDES THE 2025 BOARD APPROVED BUDGET WITH JULY MODIFICATIONS AND AMENDMENTS THROUGH SEPTEMBER.

THIS IS IN THE AMOUNT OF 102.3 MILLION.

OUR 2026 PROPOSED BUDGET IS 95.8 MILLION.

THIS IS A DECREASE OF 6.5 MILLION AND IT'S IN THE FOLLOWING PROGRAMS FOR ALAMO AND BEAR AGING.

WE'RE DECREASING THE BUDGET BY 4.9 MILLION, AND THIS BUDGET DOES NOT INCLUDE CARRYOVER FUNDS.

IT ALSO HAS LOWER FUNDING FOR TITLE THREE AND SEVEN SERVICES IN ADDITION TO LOWER PROJECTED FUNDING FOR NUTRITION SERVICES AND STATE GENERAL REVENUE ART IS INCREASING BY 3 MILLION AND THIS IS DUE TO INCREASED CAPITAL FOR THE PURCHASE OF 34 BUSES.

OUR MILITARY AND VETERANS AFFAIRS IS DECREASING BY 1.1 MILLION, AND THIS IS DUE TO TWO MILITARY INSTALLATION RESILIENCE REVIEW GRANTS THAT WE HAVE IN 2025 THAT WILL NOT OCCUR IN 2026.

PUBLIC SAFETY IS DECREASING BY 3.7 MILLION AND THIS IS DUE TO THE COPS GRANT COMPLETION IN 2025.

WEATHERIZATION IS DECREASING BY 2.1 MILLION, AND THIS IS DUE TO THE UNCERTAINTY OF FUNDING FROM THE PROGRAM'S LIHEAP AND DOE GRANTS.

THE 2026 BUDGET WAS BUILT WITHOUT EITHER OF THESE GRANTS FOR A GENERAL FUND AND ACOG COMPLEX WE'RE INCREASING BY 2.3 MILLION.

AND THIS IS DUE TO CONSTRUCTION COSTS FOR PUBLIC SAFETIES, POTENTIAL NEW LOCATION, AND THE REPLACEMENT OF THE CHILLING AND COOLING TOWER IN THE BUILDING.

HERE'S AN OVERVIEW OF THE AGENCY ROLLUP, WHICH INCLUDES OUR PROPOSED BUDGET OF 96 MILLION WITH 297 FTES.

STARTING WITH OUR PROGRAMS, WE HAVE A PROPOSED BUDGET OF 84.3 MILLION WITH 266.09 FTES.

OUR PROGRAMS ARE FUNDED BY ALL GRANTS AND PROGRAM INCOME.

NEXT, WE HAVE OUR ADMINISTRATIVE INDIRECT, WHICH HAS A PROPOSED BUDGET OF 5.7 MILLION WITH 27.73 FTES.

AND OUR ADMIN INDIRECT IS FUNDED BY THE INDIRECT COLLECTED FROM OUR PROGRAMS. MOVING OVER TO OUR GENERAL FUND, WE HAVE A PROPOSED BUDGET OF 1.9 MILLION WITH 0.4 FTES.

OUR GENERAL FUND IS FUNDED BY MEMBERSHIP DUES, CREDIT CARD REBATES, AND EMS ADMINISTRATIVE FEES.

LAST, WE HAVE OUR ACOG COMPLEX WITH THE PROPOSED BUDGET OF 3.8 MILLION WITH 2.65 FTES, AND THIS IS FUNDED BY PROGRAM SHARE OF EXPENSES AND THIRD PARTY TENANTS.

HERE'S OUR AGENCY ROLL UP WITH PROGRAM DETAIL AND FUND BALANCES.

STARTING WITH OUR PROGRAM BUDGETS, WE HAVE A BEGINNING PROJECTED FUND BALANCE OF 15.4 MILLION.

TOTAL REVENUES OF 87.4 MILLION TOTAL EXPENDITURES AND INDIRECT OF 84.3 MILLION FOR A NET OVERALL INCREASE OF 3.1 MILLION, WHICH WILL BRING US TO OUR ENDING FUND BALANCE OF 18.5 MILLION.

FOR OUR ADMINISTRATIVE INDIRECT, WE HAVE A BEGINNING PROJECTED UNDER RECOVERY OF 151,000 WITH TOTAL EXPENDITURES OF 5.7 MILLION TOTAL RECOVERIES IN ADMIN, AND IT OF 5.5 MILLION, WHICH WILL BRING US TO OUR NET UNDER RECOVERY OF 171,000, WHICH WILL BRING US TO OUR TOTAL PROJECTED UNDER RECOVERY OF 322,000.

FOR OUR ADMINISTRATIVE BUDGETS.

ACOG OPERATES ON A FIXED CARRY FORWARD RATES ON A TWO YEAR SCHEDULE.

SO THIS PROJECTED UNDER RECOVERY WILL IMPACT THE RATES FOR 2028.

A FEW PROGRAMS BUDGETS ARE PENDING CONFIRMATION OF THEIR FUNDING, WHICH IF AWARDED, WILL INCREASE THE AMOUNT OF INDIRECT COLLECTED AND BRING DOWN THE UNDER RECOVERY THAT WE'RE PROJECTING.

FOR OUR GENERAL FUND, WE HAVE A BEGINNING PROJECTED FUND BALANCE OF 25.4 MILLION, AND THIS

[00:25:01]

WE HAVE TOTAL REVENUES OF 1 MILLION, TOTAL EXPENDITURES OF 1.9 MILLION FOR A NET OVERALL DECREASE OF 909,000, BRINGING US TO OUR ENDING FUND BALANCE OF 24.5 MILLION, WHICH AGAIN INCLUDES OUR FIXED ASSETS.

OUR ACOG COMPLEX HAS REVENUES OF 1.9 MILLION, TOTAL EXPENDITURES OF 3.8 MILLION FOR A NET OVERALL DECREASE OF 1.9 MILLION.

OVERALL, WE'RE LOOKING TO INCREASE OUR FUND BALANCE BY 159,000, LEAVING US AT ABOUT 40.8 MILLION IN OUR FUND BALANCE.

HERE ARE OUR FUND BALANCE PROJECTIONS BROKEN OUT BY PROGRAM AT THE END OF SEPTEMBER, 2025.

WE HAVE A TOTAL FUND BALANCE OF 40.3 MILLION.

FOR OUR 2025 FORECAST, WE'RE PROJECTING AN INCREASE OF 557,000, RESULTING IN A TOTAL PROJECTED FUND BALANCE OF 40.8 MILLION.

FOR OUR 2026 BUDGETS, WE ARE PROJECTING AN INCREASE IN FUND BALANCE OF 330,000, BRINGING US TO AN ENDING FUND BALANCE OF 41.2 MILLION.

OUR BUDGET GUIDANCE FOR 2026 CONSISTS OF THE FOLLOWING.

WE HAVE OUR INDIRECT RATE BUDGETED AT 15%.

THIS IS AN INCREASE OF 0.26% FROM 2025.

THIS 15% IS OUR DE MINIMIS RATE OR MATCHES THE DE MINIMIS RATE.

OUR COMMUNICATIONS IT COSTS PER FTE IS BUDGETED AT $400.

THIS IS AN INCREASE OF $30 PER FTE FROM 2025.

ACOG IS CONTINUING TO MAINTAIN THE CURRENT SECURITY POSTURE, AND IN DOING SO, WE MUST RAISE THE RATE TO ADJUST FOR INCREASED SECURITY COSTS.

COLA IS BUDGETED AT 3.5% FOR ALL EMPLOYEES.

THIS DOES EXCLUDE THE SENIOR LEADERSHIP WHO'S CURRENTLY BUDGETED AT 2.7.

THIS 2.7 IS THE ANTICIPATED COLA FROM THE SOCIAL SECURITY ADMINISTRATION.

NEXT, WE HAVE OUR MERIT INCREASES AND WE'RE PROPOSING A TIERED STRUCTURE.

ALL STAFF WOULD BE ELIGIBLE FOR A MAXIMUM OF 5%.

SENIOR DIRECTORS ARE ELIGIBLE FOR A MAX OF THREE.

THE DEPUTY EXECUTIVE DIRECTOR IS ELIGIBLE FOR 2% MAX, AND OUR EXECUTIVE DIRECTOR IS ELIGIBLE FOR 1%.

LAST, WE MA UH, WE BUDGETED OUR ALL MANAGER BONUSES AT 1%.

WHEN WE MET WITH THE EXECUTIVE COMMITTEE LAST WEEK TO DISCUSS THE BUDGET GUIDANCE, IT WAS SUGGESTED THAT WE INCREASE OUR COLA BY HALF OF THE MERIT THAT WE HAVE BUDGETED.

ON THIS SLIDE, WE REVIEWED THE HISTORICAL DATA FOR ACTUAL VERSUS BUDGETED MERIT OVER THE LAST FIVE YEARS.

THESE ARE THE RESULTS BROKEN OUT BY PROGRAM.

AT THE TOP RIGHT CORNER OF THIS SLIDE, WE HAVE OUR AVERAGE MERIT TO BUDGET RATIO, WHICH IS APPROXIMATELY 54%.

CURRENTLY, WE'VE BUDGETED 456,000 FOR MERIT, BUT HISTORICAL DATA SHOWS ONLY 54% OF THIS WILL BE PAID OUT.

MANY OF OUR PROGRAMS WILL SEE THIS AS A POSITIVE IMPACT TO THEIR BUDGET, MAINLY IDD.

NEXT, WE HAVE A COMPARISON OF OUR COLA WITH 50% OF MERIT INCLUDED ON THE LEFT, AND 30% OF MERIT INCLUDED ON THE RIGHT COLA IS DISTRIBUTED TO ALL EMPLOYEES.

WHEREAS MERIT IS ONLY PAID OUT TO TOP PERFORMERS BY MOVING 50% OF MERIT TO COLA, THIS WILL INCREASE OUR RATE TO 4.9% AND MOVING 30%, WE WILL INCREASE OUR RATE TO 4.33%.

INCREASING THIS AMOUNT WOULD ALSO HAVE A NEGATIVE IMPACT ON TOP PERFORMERS LEAVING, LEAVING A LIMITED PERCENTAGE REMAINING FOR 2026 BASED ON THE HISTORICAL AVERAGE.

A SUGGESTION WAS ALSO MADE DURING THE EXECUTIVE COMMITTEE THAT THE AGENCY COULD COVER THE ADDITIONAL COLA EXPENDITURES FOR EACH PROGRAM.

SO WE'VE PROVIDED THE CURRENT AND PROJECTED FUND BALANCE TOTALS THAT WE'RE USING TO COVER SOME PROGRAMS FOR NATURAL RESOURCES AND WEATHERIZATION.

WE'VE RECEIVED UPDATED GUIDANCE FROM DOE WHO WILL ONLY ALLOW UP TO 10% OF THE TOTAL GRANT TO COVER THE FRINGE AND INDIRECT COST, AND THE REST WILL HAVE TO COME FROM THE GENERAL FUND.

THESE ARE NOT THE, THESE ARE NOT IN THE CURRENT BUDGET, BUT WILL BE ADDED AS AMENDMENTS.

REGIONAL SERVICES HAS A NEW GRANT WITH EDA THAT REQUIRES MATCH OF 40,000 IN ADDITION TO THEIR CURRENT GRANT, WHICH REQUIRES MATCH OF 19,000.

ALAMO AND BEAR AGING ADMINISTRATIVE BUDGETS REQUIRE 25% MATCH.

LAST, WE HAVE OUR PUBLIC RELATIONS, WHICH HAS A SMALL AMOUNT TO POTENTIALLY BE COVERED BY THE GENERAL FUND, BUT THIS IS PENDING THE EXTENSION OF WEATHERIZATION.

[00:30:01]

IF THE BOARD WISHES TO PROCEED WITH REDISTRIBUTING FUNDS FROM MERIT COLA, THEN STAFF RECOMMENDS MOVING 30%, WHICH ALLOWS THE REMAINING 24% TO BE DISTRIBUTED TO TOP PERFORMERS.

PARDON MY VOICE.

SO, UM, ON THE RECOMMENDATION TO MOVE 50%, AS, AS YOU HEARD EARLIER, 54% OF THE BUDGET AMOUNT OF MONEY IS HISTORICALLY WHAT WE ACTUALLY PAY OUT IN MERIT.

AND SO WE WANTED TO LEAVE A LITTLE WIGGLE, WIGGLE ROOM TO KEEP SOME MONEY, UH, TO REWARD OUR TOP PERFORMERS, TO INCENTIVIZE THEM TO CONTINUE WITH THEIR HARD WORK YET STILL BALANCE, UH, SOME OF THAT MERIT MONEY AND GIVE IT OVER TO THE COAL.

AND, AND, UH, UH, AND YOU KNOW, I, I'VE BEEN A STRONG PROPONENT OF TRYING TO RAISE ALL OF OURS.

I THINK THIS IS IDEA AND I, AS I WAS TELLING JUDGE EVANS EARLIER THIS MORNING, UH, THAT I THINK WE WILL BE COMING BACK TO YOU NEXT JULY WITH A RESTRUCTURED MERIT AND BONUS SYSTEM.

I THINK THIS HAS SPURRED A CONVERSATION ON HOW WE NEED TO DISTRIBUTE BONUS MONEY, UH, BEYOND, UH, THE SENIOR MANAGEMENT OR THE, I SHOULDN'T SAY SENIOR MANAGEMENT, THE MANAGERS AND DIRECTORS AND SO ON UP, MANAGERS UP.

AND, UH, BECAUSE COURSE MERIT GOES TO THE BASE PAY, IT'S NOT A ONE TIME THING.

IT'S ALWAYS THERE.

AND THAT'S WHY YOU SEE THE SLIDE THAT SHOWS THE PROGRAMS THAT ARE CURRENTLY LOSING MONEY AND ARE IMPACTING THE BUDGET THIS YEAR TO $581,000, UM, WHICH IS JUST GONNA BE BORN BY THE AGENCY.

AND WE'RE FORTUNATE TO HAVE A HEALTHY FUND BALANCE NOW, BUT SHOULD OUR OTHER PROGRAMS SUFFER SIMILAR CUTS, IT BECOMES UNSUSTAINABLE.

UH, AND SO I WANTED TO TRY TO BALANCE, WE WE'RE GONNA TRY TO FIGURE OUT NEXT JULY A WAY TO BALANCE THAT DESIRE TO REWARD THE EMPLOYEES, YET STILL HAVE THE FLEXIBILITY TO, UH, RESPOND TO VARYING BUDGET CONDITIONS.

UM, ONE OF THE, CAN WE GO BACK TO THE SLIDE THAT SHOWS THE IMPACT ON THE, ON THE LOSING PROGRAMS? WHAT YOU DON'T SEE THERE IS IDD.

SO IDD IS CURRENTLY LOSING MONEY THIS YEAR IN 2025, IT LOST 310,000.

UH, IT'S PROJECTED TO LOSE 169 ON A, WE'RE REVAMPING AGAIN, TRYING NEW, NEW PROCESSES, LOOKING AT AI TO, UH, HELP STAFF, UM, DOING SOME DIFFERENT MANAGER, UH, METHOD OF TRAINING TO TRY TO RETAIN EMPLOYEES.

BUT ON AN OPTIMISTIC LEVEL, WE'RE PROJECTING $169,000 IN LOSS.

IF EVERYTHING COMES AROUND, WELL, THAT WOULD BE GREAT AND IT'S ALL ROSY AND WE WON'T LOSE.

BUT WE'RE JUST TRYING TO, UH, CHART A CONSERVATIVE COURSE.

MY POINT BEING, RIGHT NOW, IEDD IS DIPPING INTO ITS FUND BALANCE TO ABSORB THOSE LOSSES.

AFTER THIS YEAR, IT WILL BECOME, UH, AN ACOG PROGRAM PROBLEM.

I NOT PROGRAM AN ACOG ADMINISTRATIVE, UH, GENERAL FUND PROBLEM.

AND WE WILL BE ABSORBING THOSE LOSSES.

SO ASSUMING, ASSUMING THAT WE WERE ABLE TO BE LUCKY AND JUST KEEP THE LOSS AT 1 69, YOU COULD ADD THAT TO THE 5 81 THAT'S IN THE, UH, CURRENT, UH, GENERAL FUND, UH, EXPENDITURES.

AND SO I JUST WANTED YOU TO SEE AN IDEA OF HOW THESE WILL ALL IMPACT, UH, THE BUDGETS.

AND WE DON'T KNOW, FOR INSTANCE, WE DON'T KNOW WHAT, UH, FURTHER CUTS ARE COMING FROM WASHINGTON.

SO EVEN THOUGH WE HAVE A HEALTHY FUND BALANCE NOW IS JULIO POINTED OUT, WE'RE PROJECTED ROUGHLY ABOUT 12 MILLION BY THE END OF THIS YEAR, 11.8.

UM, YOU START HITTING CLOSE TO THREE QUARTERS OF A MILLION DOLLARS IN DRAIN EVERY YEAR.

WE'RE GONNA SPEND A BILLION AND A HALF IF THE BOARD APPROVES TODAY TO UPGRADE THE BUILDING INFRASTRUCTURE.

UH, WE NEED TO PROJECT ROUGHLY 800,000 OR SO FOR THE MOVE TO THE ACADEMY.

ONCE AGAIN, IF THE BOARD APPROVES THAT, WE'LL BE COMING TO YOU IN DECEMBER FOR THAT.

AND THEN THE BUILDING IS UP FOR REFINANCING.

BELIEVE IT OR NOT, OUR FIVE YEARS IS MAY OF THIS COMING YEAR, 2026.

AND IN ORDER TO MAINTAIN THE SAME PAYMENT THAT WE CURRENTLY HAVE, UH, AT UH, A FOUR 4.5% INTEREST, THE BANK HAS TOLD US THAT THEY ARE PROJECTING ABOUT A 6.5% INTEREST RATE THAT WILL TO MAINTAIN THE SAME PAYMENT SO AS NOT TO IMPACT PROGRAMS. UH, THAT WILL REQUIRE A $2 MILLION, UH, LOAN DOWN PAYMENT, ADDITIONAL PAYMENT TO THE NOTE TO REDUCE THE NOTE TO KEEP THE PAYMENT THE SAME.

AND WHICH I INTEND TO RECOMMEND TO YOU BECAUSE I LIKE THE IDEA OF PAYING OFF THE BUILDING SOONER THAN LATER ANYWAY.

UH, SO

[00:35:01]

UH, BUT THAT BEING SAID, I WANTED TO KNOW THAT 11 MILLION OR $12 MILLION FUND BALANCE GETS EATEN DOWN REAL FAST WITH THOSE EXPENDITURES.

AND JULIO, UH, WITH HIS GUIDANCE LIKES TO KEEP ROUGHLY $5 MILLION AVAILABLE FOR CASH FLOW FOR EVENTS, IS WHAT WE'RE EXPERIENCING NOW WITH THE, WITH THE GOVERNMENT SHUTDOWN WHERE WE'RE HAVING TO, UH, LOTS OF OUTFLOWS AND NO INFLOWS.

AND SO I JUST WANTED TO GIVE YOU THE OVERALL HIGH LEVEL PICTURE OF HOW, YOU KNOW, THESE PROGRAMS ARE IMPACTED BY THESE EXPENDITURES.

AND THAT'S WHAT WE, LIKE I SAY, SO I'M GONNA TRY TO ROUND IT UP OR, OR WRAP IT UP BY SAYING, UH, THE IDEA OF 30% IS TO DEFINITELY INCREASE ALL THE SALARIES, WAGES, BUT STILL LEAVE US A LITTLE WIGGLE ROOM.

UH, AND AS I SAY, WE'RE GONNA COME BACK TO AND TALK ABOUT IN THE FUTURE MAYBE MAKING SOME OF THOSE PAYMENTS BONUSES INSTEAD OF MERIT IN THE FUTURE.

SO, AND STRIKE A BALANCE THERE AS WELL TO GET BONUS TO ALL OF THE EMPLOYEES TO MAKE SURE THAT THEY ARE ALL RECOGNIZED FOR THEIR HARD WORK.

SO, SO QUESTION.

SO IDD IS A FUNCTION WE DO FOR BEXAR COUNTY AS ACOG, IT'S ONLY BEXAR COUNTY.

IT'S A POSSIBILITY THAT BE COUNTY CAN HELP WITH THE, UH, OFFSET THE DEFICIT.

I'M MINDFUL OF WHAT YOU SAID LAST WEEK ABOUT THAT, AND I WOULD LIKE TO GET YOUR GUIDANCE AND, AND MAYBE WALK UP.

YOU PROBABLY DON'T WANT MY GUIDANCE, BUT I WOULD MIND, I THINK IT'S A GOOD QUESTION.

NO, COACH BEAR COUNTY, IF WE CANNOT TURN THIS PROGRAM AROUND, AND I, I AM OF COURSE NOT THE EXPERT IN THIS, BUT IN TALKING TO THE PEOPLE IN IDD, THEY TELL ME IN VIRGINIA, I MIGHT HAVE YOU STAND UP AND ASK, BUT NOT YET.

YOU TELL ME IF I'M DOING IT WRONG.

BUT MY UNDERSTANDING IS THAT THE OTHER PROGRAMS BENEFIT BY HAVING THE MENTAL HEALTH SIDE OF THE EQUATION.

IT'S NOT JUST THE IDD SIDE.

AND THEY GET MORE MONEY THROUGH MENTAL HEALTH, WHICH HELPS BALANCE AND OFFSET THE LOSSES THAT THEY SUSTAIN IDD SIDE.

AND SO I THINK IT MAY BE TIME TO GO TO OUR PARTNERS AT THE COUNTY BECAUSE ONE OF OUR PROBLEMS IS IIDD, WE WEREN'T PAYING PEOPLE ENOUGH.

WE RA WE RAISED SALARIES, RIGHT? WE DID.

THAT'S WHY I WAS SUPPORTING THE 50% TO THE COLA TO HELP OFFSET THAT BECAUSE IF YOU GET 50% COLA TO EVERYBODY, THE PEOPLE THAT WERE GONNA GET MERIT RAISES, THEY'RE GONNA GET THE COLA ANYWAYS.

THEY'RE GONNA GET THAT.

SO THEY'RE GONNA GO UP.

AND I THINK WHEN YOU TAKE CARE OF THE PEOPLE AT, AT THE LEVEL THAT DO THE WORK, NOT NOT THAT TO PRESENT THE PROGRAMS TO THE BOARD.

I MEAN, THAT'S MY OPINION.

WELL, AND THAT'S, AND THAT'S, I, I HEAR WHAT YOU'RE SAYING AND LIKE I SAID, I LOVE THE IDEA BECAUSE I'VE, I'VE TRIED, THAT'S WHAT I'VE AIMED TO DO WHAT I'VE WANTED TO DO.

THE ONLY THING IS, IS THAT, AND ALONG THOSE LINES IS WE DO HAVE SOME OTHER STAR PERFORMERS THAT, YOU KNOW, THEY REALLY GENERATE THE WORK AND THE REVENUE AND WE'D LIKE TO HAVE SOME WIGGLE ROOM TO REWARD THEM AS WELL.

YOU LEFT OUT 30% IS SORT OF A COMPROMISE.

BUT I CLIFF CERTAINLY SHARE YOUR IDEAS.

WHAT'S THE DEFICIT FOR ID, UH, PROJECTED FOR 1 69 FOR NEXT YEAR.

THEY SPENT 310, 300 10,000 DEFICIT THIS YEAR.

ONE 69,000.

YEAH.

SO IT'S 1 69 PROJECTED GOING FORWARD.

WE WOULDN'T ADDRESS THAT IN JULY WITH THE BUDGET MOD TO SEE WHERE WE REALLY ARE.

I, I AGREE WITH JUDGE EVANS.

I THINK WE NEED TO START CONVERSATIONS, UH, WITH OUR PARTNERS ABOUT THIS.

IDD WE CAN'T KEEP, WE, THIS IS NOT SUSTAINABLE.

SO WE, WE NEED TO START CONVERSATIONS NOW BECAUSE I CAN'T, CLIFF, I THINK YOU LEFT OUT FROM THE EXECUTIVE SESSION CONVERSATION THAT WE HAD ASKED ABOUT THE COLA BECAUSE YOU SHARED THAT WE ARE STILL NOT RECOVERED POST COVID AND YOUR TEAM MEMBERS ARE STILL UNDERPAID IN COMPARISON.

WE DIDN'T SAY THAT.

YES, THANK YOU VERY MUCH.

YES.

IF YOU LOOK AT POST COVID, THERE WAS, OF COURSE YOU'LL ALL REMEMBER WHAT AN 8.91 YEAR WAS, AN 8.9, UH, PERCENT SPIKE IN THE CPI.

WELL WE AWARDED 3% AND THEN IN FUTURE YEARS THAT, I THINK IT WAS ONE YEAR AFTER THAT WAS LIKE 4.9%, WE AWARDED 3%.

SO IF YOU LOOK AT COMPARING US TO THE CPI, OUR EMPLOYEES ARE ON AVERAGE, INCLUDING THIS, CORRECT ME IF I'M WRONG, LEO, INCLUDING THE 3.5% THAT WE HAVE BUDGETED ABOUT SIX POINT A HALF PERCENT BEHIND THE CPI.

NOW THOSE THAT HAVE RECEIVED MERIT ARE A LITTLE BETTER OFF.

BUT STILL ALL OF OUR EMPLOYEES ARE BEHIND THE CPI POST COVID.

AND YOU HAVE HIGH TURNOVER.

AND WE HAVE HIGH TURNOVER.

THANK YOU.

WE HAVE HIGH TURNOVER BECAUSE OF OUR SALARY ISSUES, PARTICULARLY AN IDD JUDGE, JUDGE TE I, UH, I WANTED TO ASK, IDD GETS REIMBURSED RIGHT

[00:40:01]

IT'S 2010.

IT'S 2010.

YEAH.

SO I JUST WANT, THAT'S, THAT'S ANOTHER THING THAT, AND WE HAD A MEETING IN THIS VERY ROOM ABOUT THAT A YEAR AGO I THINK.

BUT UH, WE HAVE GOT TO GET THAT REIMBURSEMENT RATE UP AS WELL.

AND, AND SO WHO DETERMINES THE RATE? THE STATE? IT'S A STATE, RIGHT? YES, THAT'S CORRECT.

AND WE, WE TRIED EVERYTHING TO GET THE, THE, BECAUSE WE DEAL WITH THE SAME THING IN THE RURAL AREAS AS WELL.

THE IDD TAKES ON A, BUT IT'S A VERY MUCH NEEDED SERVICE AND I WANT EVERYBODY TO UNDERSTAND THAT.

AND, UH, NOT EVERYBODY'S AFFECTED BY IT.

AND SO PEOPLE DON'T SEE THE VALUE OF GETTING REIMBURSED AT $10 AND 23 CENTS AN HOUR FOR AN EMPLOYEE WHEN YOU'VE GOT 'EM, WHEN YOU'VE GOT TO KEEP THESE, KEEP THESE COMPETITIVE RATES GOING.

YEAH, JUST TELL 'EM WE'RE PART OF THE FILM INDUSTRY, THEY'LL GIVE YOU 300 MILLION.

TELL IF I MIGHT BUILD ON THAT, FOR THOSE OF YOU THAT HAVE OPPORTUNITIES TO TALK TO YOUR LEGISLATORS, IF YOU TALK TO THEM, AT LEAST MY UNDERSTANDING HAS BEEN THAT THE INFORMATION I HAVE RECEIVED IS THAT THEY BELIEVE THEY HAVE ADDRESSED THIS PROBLEM WHEN THEY MADE A SUBSTANTIAL COMMITMENT TO INCREASE MENTAL HEALTH SERVICES, BUT THEY DIDN'T, THE MENTAL HEALTH IS DIFFERENT FROM THE IDD.

AND SO THEY NEED TO DO THAT SAME THING TO IDD, BUT THEY LUMP IT ALL TOGETHER AND THEY THINK WE'VE ADDRESSED THIS PROBLEM.

THEY DON'T REALIZE THAT THERE ARE, YOU KNOW, TWO SIDES TO THAT EQUATION, TO THAT COIN.

THEY'VE ONLY ADDRESSED ONE SIDE IS MENTAL HEALTH.

WE REALLY NEED TO RAISE AWARENESS, UH, UH, WHAT HAS BEEN DESCRIBED IN ONE ARTICLE.

I READ THE CRISIS IN THE IDG COMMUNITY ACROSS THE STATE.

THE SYSTEMS ARE JUST COLLAPSING ACROSS THE STATE.

VIRGINIA COULD TALK ON IT FOR HOURS ABOUT, WE HAVE WAITING LISTS FOR SOME PROGRAMS THAT ARE 10 AND 15 YEARS LONG.

SO, AND I'M SURE THAT'S THROUGHOUT JUDGE, AS YOU MENTIONED, THE RURAL AREAS.

WELL, SO YOU GET A CHANCE TO TALK TO LEGISLATURES OUT WITH LEGISLATORS.

THAT'D BE GREAT.

COMMISSIONER MOODY.

UM, WELL I APPRECIATE LISA, YOU BRINGING THAT UP BECAUSE I I WAS NOT TRACKING ON, ON THIS AND I THINK THAT'S AN IMPORTANT ARGUMENT.

I MEAN, FOUNDATIONAL.

UM, SO HOW FAR ARE WE BEHIND OVER THE LAST FEW YEARS? I MEAN, IT WOULD BE REALLY HELPFUL TO KIND OF SEE LIKE CPI OVER THE LAST FIVE YEARS AND COST OF LIVING ADJUSTMENTS OVER THE LAST FIVE YEARS AND KIND OF SEE 6%, I'M GONNA GUESS SIX.

WE DO HAVE THAT.

WE DO HAVE THAT BUILT OUT.

UH, WE'RE CURRENTLY 6.3%.

THERE YOU GO BEHIND.

OKAY.

OVERALL, UM, WE ALL ARE THAT, THAT, UH, IS, IS VERY, YOU KNOW, POWERFUL IN THE ARGUMENT.

I WOULD JUST LIKE TO, I MEAN, BREAK APART COST OF LIVING ADJUSTMENT IN MY MIND SHOULD BE ANCHORED WITH LIKE CPI OR YOUR INFLATION MEASURE MEASURE OF CHOICE.

BUT IF WE'RE BEHIND AND WE NEED TO MAKE ADJUSTMENTS OR WE'RE NOT BENCHMARKING OR VERSUS THE REST OF THE INDUSTRY, THEN UH, THEN WE CAN MAKE THOSE CHANGES.

BUT I THINK IT'S JUST IMPORTANT FOR PEOPLE'S AWARENESS THAT THIS IS NOT A TRUE COST OF LIVING ADJUSTMENT FOR 2026.

THIS IS, WE'RE PLAYING CATCH UP.

WE HAVE OTHER FACTORS AT PLAY, UH, BECAUSE THAT CAN BE CONCERNING.

'CAUSE IF WE ARE CAUGHT UP AND WE ARE PAYING AT A BENCHMARK RATE, THEN WE DON'T WANT OUR EMPLOYEES TO EXPECT COLAS, YOU KNOW, NORTH OF 4%.

UM, SO I JUST WANTED TO, TO KIND OF SHARE THAT AS A CONCERN.

I, I ASSUME MOST OF THE COUNTY CITIES IN THE ROOM, I KNOW ARCOLA, OUR, OUR BUDGET OFFICE RECOMMENDED 2% AND ULTIMATELY ENDED UP AT 3%, PROBABLY IN THAT TWO TO 3% RANGE.

I THINK CPI WAS 2.7, WHICH WAS TIED TO, TO SOME OF THE OTHER NUMBERS THERE.

BUT BASED ON, ON THE BACKGROUND THAT I HEARD, YOU KNOW, HERE, I'M SUPPORTIVE, BUT I THINK, YOU KNOW, WE JUST NEED TO SEPARATE A TRUE COLA FROM LIKE CORRECTING PAST GAPS.

WE DON'T EVEN, NOT GOOD KEVIN.

WE DON'T EVEN CALL IT THE COAL ANYMORE.

IT'S A WAGE ADJUSTMENT.

IT IS.

MM-HMM .

UH, WE'RE NOT FOOL OURSELVES OR ANYBODY ELSE THAT WE'RE STAYING UP THE COST OF LIVING DISCUSSION.

NOT, WE'LL LET HALEY GET BACK.

SO WHAT, SO WHAT ARE WE GONNA DO? 30, 50? WHAT ARE WE GONNA DECIDE? THAT'S MY QUESTION.

SO YOUR RECOMMENDATION IS WE LEAVE 30% FOR MERIT FOR HIGH PERFORMERS AND ADJUST BY MOVING SOME OF IT INTO THE, INTO THE COLA BUCKET.

WE MOVE 30% INTO THE, WHAT WE WERE CALLING

[00:45:01]

I'M TOTALLY FINE WITH A WAGE ADJUSTMENT IF THAT'S THE TERMINOLOGY.

AND I AGREE THAT YOU DON'T WANT TO CREATE AN EXPECTATION OF COLAS THAT ARE BEYOND A REASONABLE BENCHMARK.

THAT'S WHAT WE COULD DO, UH, THE GUIDANCE.

UM, AND SO WE WERE RECOMMENDING THE 30 BECAUSE ONCE AGAIN, JUST AS JUDGE EVAN POINTS OUT, YOU KNOW, WHAT ARE WE GONNA DO? WE WANTED TO GIVE YOU WHAT WE THOUGHT WAS A GOOD IDEA, BUT THE 50% IS THERE.

IF YOU DO, IF YOU DO YOU THINK IT'S MORE IMPORTANT TO SPREAD THE 50%, UH, ACROSS EVERYONE? WE'RE CERTAINLY AMENABLE TO THAT.

BUT IN CONVERSATIONS WITH EVERYBODY, WE THINK IT IS IMPORTANT TO RECOGNIZE OUR HIGH PERFORMERS AND HAVE SOME MONEY FOR THAT.

AND SO THAT'S WHY I, I TOLD STAFF TO RECOMMEND THE 30% LEAVING US ROUGHLY 24% IF WE STICK WITH THE AVERAGE 24% OF THAT BUDGET AMOUNT TO RECOGNIZE OUR HIGH PERFORMERS.

BUT THE CHOICE IS YOURS.

SO WHAT IF YOU MOVE 50, WHAT WOULD THAT MAKE THE COLA PERCENTAGE? 4.9% AM NINE.

OKAY.

POINT FIVE.

SO, SO, SO WE'D BE, WE'D BE STILL 2% BEHIND WHERE WE OUGHT TO BE TO BE EVEN BACK.

WE STILL, WE'D STILL BE, YOU SAID 6.3, RIGHT? THIS WOULD MAKE US, THIS WOULD, THIS WOULD TAKE US TO THE TOTAL AMOUNT WOULD BE A 4.9% COAL UP INCREASE OR WAGE ADJUSTMENT INCREASE.

BUT WE'RE 6.3 VERSUS 4.33%, BUT WE'RE SIX POINT, THAT ONE STILL PUT US ABOUT 5% BEHIND THE CURVE.

OKAY.

SO THE 6.9 IS BASED OFF OF, ON TOP OF THE 3.5.

NOT WITHOUT THE 3.5.

NO, IT INCLUDES IT.

IF WE WERE TO MOVE 50% OF THE MERIT OVER TO COLA, IT WOULD RAISE THE RATE FROM 3.5% COLA TO 4.9%.

I UNDERSTAND THAT, BUT IF YOU'RE GETTING THE PARITY WITH ALL THE CPIS, WOULD YOU BE AT 3.5 PLUS 6.9? NO.

SO WE, WE CURRENTLY AT ARE THE HIGH IN 6.3 AT THE 3.5.

IF WE MOVE UP TO 4.9 THAT IT'S TAKE US TO ABOUT FIVE.

OKAY.

GOTCHA.

OKAY.

SO THAT'S, SO WE'RE NARROWING THE GAP, BUT WE'RE NOT CLOSING CLOSING THE GAP.

WE'RE NARROWING THE GAP.

SO RUN THE NUMBERS AND IF WE HAVE A, A CLEAR ISSUE WITH TURNOVER AT PRESENT, WE'RE LOOKING AT ROUGHLY FOUR YEARS TO GET BACK CAUGHT UP.

IS THAT CORRECT? ABOUT APPROXIMATELY , IT'S A SLOG TO GET CAUGHT BACK.