Board of County Commissioners - Regular Meeting

I'm here.

You may be muted on the other side. I see it says mute for the meeting. Is it muted over there? I'm not hearing anything.

There we go.

Thank you. We're good. Yeah, we just called the meeting in order, checking on the agenda. Are there any requests for changes to the agenda or proceed as?

Some move approval of the agenda.

uh i think he's adding something oh delegation the delegation of authority for the incident command should be um does that go any particular place on our agenda i think it can go to the last item on your agenda okay um but add adding it as an agenda item

I think you should add it as an agenda item because the board needs to vote on this. I'm recalling the first meeting after it's been signed. Okay.

And I support that. So with that, if it's an amendment, I'll second it.

We are adding item number six to our agenda, discussing the delegation of authority for the column fire.

Correct.

Okay. So if there's nothing else, we can call for the votes on the consent agenda, Commissioner Nair.

Uh, yes, as modified.

Uh, yes. Okay. Uh, and next we will go to citizen input. Is there anyone in the room who would like to give a public comment? Is there anyone online right now?

There are no raised hands.

Okay.

Um, Sealing done. We'll move on to commissioner announcements. I'll just mention that there has been quite a bit of fire activity these last few days. On Saturday, I went to sign the delegation of authority for the Ocala fire and the Brewer fire. And yesterday, Both Commissioner Adair and I were at the cooperator's meeting for those two, plus even an additional fire. They're doing them all at once right now for a cooperator's meeting. Any other commissioner announcements?

Oh, and there is a public, well, it's on Zoom, I believe, tonight at 7 p.m. for, yes, the Acala fire.

virtual community meeting protocol.

I was able to dial into the cooperators meeting this morning. So I heard the status, kind of the weather reports, probably the positive thing, the fact that in the next 24, 36 hours, they think they can get a handle on some things before the wind starts blowing again in a couple of days. So that was kind of the big takeaway that I had.

It actually rained.

So that's the big miracle.

Yes.

Yeah, hopefully we'll get more rain. A couple of other things I'll mention. Rooted Homes had the ribbon cutting for their antler project in Redmond on Friday. It was great to attend that and see the 18 new homes. some of which will be sold at affordable, capital A affordable prices, seven of which will be sold as workforce housing or missing middle housing prices with the benefit of support from our builder credit program for workforce housing. Anything else? Seeing none, we can go to our consent agenda item. Our consent agenda now. There's one item.

So move approval, consent.

And I will second it.

Moved and seconded. Any further discussion?

Just acknowledge this is an extension, a one-year option extension. It's great to have a partner that's providing cost-effective services for those incarcerated for their food and commissary provisions.

Good. Calling for the vote. Commissioner Naird? Yes. Commissioner Gavone?

Yes.

And Fairbanks, yes. We can proceed to our regular agenda items. uh item number two consideration of a collective bargaining agreement between deschutes county and uh uso the international union of operating engineers local 701. good afternoon commissioners for the record i'm eric croft deputy county administrator and i'll have uh three people join me if our

Director of Solid Waste of the Road Department. And then Kim Johanson is Council Representative for IUOE Local 701. This item is a collective bargaining agreement between Hitchcock County and IUOE Local 701. Local 701 represents employees in our Solid Waste and Road Departments. The collective bargaining agreement replaces or is the six This three-year contract is very similar. This is the same that was presented to the board in executive session. The main difference is we talked about a four-year contract, and ultimately we reached a tentative agreement on a three-year contract. The bargaining team included for the union, Jacob Stallings, who is general counsel for IUOE, Kim, who is joining us here, Ron Preston, who is a heavy equipment operator in our road department. And Gabriella, is it Bruce? Bruce. Bruce. Who is solid waste hazardous waste technician and recently promoted? Yes, supervisor. So she recently promoted and is joining the dark side of the management team. The county's bargaining team included Chris Doty, Jeff Merwin, CFO Robert Tintle, Susan DeJodi from HR, Dave Doyle, County Council, and myself. The main elements of the contract is I mentioned it was a three-year contract. The COLA or cost of living adjustment is 1 to 4% based on CPI. And that CPI calculation is consistent with our other contracts. We're also market-based adjustment for certain positions. There is the sunset of the county contribution towards retiree monthly insurance premium, which has been, we've been working to get that out of the contracts, but sunset it so it's employees that start employment after August of this year. The contract also implements constructive receipt for vacation sellback. The board has heard a lot about that over the last year. There is the addition of a new type of leave, bereavement leave, And the final main piece is there are now additional pieces of equipment that are eligible for intermittent skilled differential pay, and just the road department. The tentative agreement, both sides agreed to recommend to its bodies. The union ratified the tentative agreement last week, and we are here as the management bargaining from the Board of County Commissioners. Even though today is July 20th, because the way our pay period is run, if the Board approves the contract today, we will be able to implement the wage changes and July payroll. I'd like to see if Jeff or Chris have anything to add, then I'll turn it over to Kim.

Nothing to add of substance other than I appreciate the professionalism of 701, the representatives, Eric, and the rest of the team members. You know, things went fairly smoothly, all things considered. And I think we're happy to be here at the end of this and signed up for another three years.

Yeah, and I would basically ditto that. And, again, it's nice to get it done on this pay period, potentially. Again, thank you for your team and your efforts and a little bit of logistical issues on back and forth, but we got it worked out.

Yes, I appreciate the good faith bargaining on the county's part. It's a good contract for our members, and I think it'll be good for them over the next three years.

Great. Thanks for getting three years. It's not four, but three is better than two. So good job.

So staff recommends... approval of the Collective Bargaining Agreement, which is document number 2026-601. And we're happy to answer any questions. Any questions?

I'll just acknowledge, you know, thanks for the professionalism. We have a long history of, you know, represented groups working for the citizens of Deschutes County. So I want to keep that going. A lot of history here. Every couple of years, we put it on the table and say what, you know, what needs to change, what could change. And, you know, thank you very much for serving the people of Deschutes County in this partnership.

Just interesting. They said just shoot county. on the translation. So I guess we need to spell out French words, right?

Or say it slower. So I'll move approval of the document 2026-601, a collective bargaining agreement between Deschutes County and IUOE 701.

That's closer. I'll second that motion.

Good. It's been moved and seconded. Any further discussions? I would just reemphasize that I will be representing employees at Rhodes and at Solid Waste by critical services for our community. I'm really glad we were able to get to this point where we're taking care of our employees that are taking care of the community. So thank you all for your work on this.

Thank you.

Thank you, Gordon.

Thank you.

Who moved? Who said?

Commissioner DeVoe.

All right. Calling for the vote. Commissioner DeVoe.

Yes.

Commissioner DeVoe. Yes. And Chair votes yes. Thank you. Okay. item number three a work session on the proposed termination of a development agreement specific for the expansion of an existing tractor sales and service business have a machine good afternoon commissioners for the record dan de marzo associate planner with the deschutes county community development um

The item before you today is the termination of development agreement that's associated with a 1990 land use approval. It approved the expansion of commercial business on an address that's now within the city of Bend. Ultimately, in coordination with county legal, it was determined that the development agreement is now null and void because the property owner chose to annex the property into the city and achieved all the appropriate permitting through the city rather than through the county however this development agreement still encumbers the property and this is the process to terminate it after reading the step pretty straightforward um are there any questions

I agree this is straightforward. Oh, sorry. I agree it's straightforward. We can put it on a consent agenda.

I think I was reading that Papay has like 15 maybe different locations in Oregon and Washington. So anyway, at first I was thinking, oh, this is too bad, but no, they're in the city now. Thank you so much.

Yeah, absolutely. Still still built in is operating within Deschutes County, just also within the city of Bend jurisdiction. So there's no reason for us to have these kinds of restrictions or encumbrances on that property. So this work session Is there anything else we want to know about this? Dan Lewis here.

Nice to meet you, Dan. I don't know that we met in person yet.

Likewise.

no no 1990 agreement that's right yeah yeah so staff recommends you know signing the agreement we'll circle back as I said to Jeff Adam great thank you so much thank you all right thank you for being with Deschutes County thank you it's really wow all right thank you thank you I definitely don't want to be known as just shoot County

Yeah. Item number four, Treasury Report for June 2026.

Good afternoon, Commissioners. For the record, Bill Kuhn, Deschutes County Treasurer. I have to apologize for my voice today. I spent the weekend over in Grant County and John Day, and I know where all the smoke has been going east from all the fires that we have right now. It is really hazard to say over there right now.

What is the quality?

It's high. I mean, is it like 800? It's 150 plus or whatever. Okay.

Because mine is 880 in my house.

It's in the red. Yeah. But I mean, it was. It's packed in there like fog.

Yeah.

Terrible. So anyway, let me take a few minutes to provide a high level overview of current economic conditions. As I've mentioned previously, things can happen quickly. And last week, geopolitical risk is back on center stage with the announcement that the U.S. and Iran have resumed attacks, which have, again, effectively closed the Strait of Hormuz. So over the weekend, I think there were just a couple of ships that were able to make it through. And this action has essentially avoided the 60-day ceasefire that was in effect. Ongoing issues focus on Ullman control of the Strait and Iran's nuclear program, neither of which have really changed over the last several months. And there also appears to be no easy off-ramp to resolve this conflict. And there is a... not just a trickle-down effect, but the rising costs associated with the ongoing Iran conflict are continuing to have an impact on U.S. government borrowing costs. Shorter-term and long-term bond yields remain elevated with two- and three-year yields at 4.17% and 4.19% respectively. And this is up significantly over the last 30 to 45 days. 30-year mortgage rates remain elevated at roughly 6.59%, and this is driven by 10-year Treasury yields, which were 4.55% last week. Surprisingly, the latest CPI report for June showed that inflation abated, declined 0.4% for the month, which was the largest decline since 2020, largest monthly decline. and effectively decreased the annual pace to 3.5 percent. Over the month, and this was really impacted by gasoline prices, dropped substantially due to the 60-day ceasefire, which was in effect last week, but it isn't this week. Even excluding food and energy products, prices were broadly flat for the month. I can say over the last week or so, gasoline prices have spiked again, and crude oil as well. So we're likely to see a reverse of that when the July CPI report is out. With this news, the market significantly reduced its forecast of a potential rate increase during the Fed meeting, which is next week, July 28th and 29th. In congressional testimony last week, Chairman Orsh said that cooler June inflation doesn't mean that the Fed can rest easy for the remainder of the year. So they're going to be closely watching CPI inflation data and take their cues based on what the data is showing as to whether or not they're going to adjust rates. And as I've talked about previously, interest rate adjustments on the short end are really the only tool that the Fed has to regulate the economy. So they're going to be watching that data very closely. The June job report showed the U.S. economy only added 57,000 jobs in June, which was significantly below analysts' expectations of 115,000 jobs. The unemployment rate dropped slightly to 4.2%, which was actually driven by a decline in labor force participation rate. So there were fewer people out looking for work, which basically drove the unemployment John Vile- That employment rate down slightly. It's also worth noting that prior months payrolls were down or revised downward by 31,000 in April and 43,000 in May. And Commissioner Gary, you've talked about that previously that these jobs reports typically get adjusted John Vile- A month or two out after they take a little, little harder to look at the data. The June 2026 producer price index, which tracks prices that businesses are paying to one another, rose again, increasing by 1.06% month over month. And this indicates that pipeline pressure is still out there that could translate into higher CPI data as well. Over the past few months, I've been tracking the consumer sentiment index with the June index rising. 10.5%. So it actually went up, which means that consumers were feeling more comfortable about the economic data. And that was primarily due to easing gas prices for the month, though the sentiment remains historically low. So it did go up, but historically, the sentiment remains historically low. And that trend could reverse itself in July with the impact of rising fuel prices again. In June, existing home sales rose 3.2%, hitting 4.17 billion annualized units. This was despite average 30-year mortgage rates that I indicated earlier that it hit 6.56%. And housing inventory increases seasonally. And recent labor market strength are boosting demand, but inflation, oil prices, and Fed policy could hinder further sales growth throughout the summer. At a regional level, I typically provide data on various markets within Chutes County. The June Bend single-family residential market revealed a median sales price that actually declined to $728,000, which was down from $795,000 in May. I reported 201 sales for the month of June. Fifty-seven of these sales were above a million dollars, And 56 were actually cash sales, which is a little bit higher percentage than what we'd seen previously of the total sales, I should add. It is interesting that days on market for sold properties remain low at 18 days. However, inventory levels have increased to a three and a half month supply of homes currently listed. A note, Bend area single family home building permits were up, were actually down to 38 compared to 66 the prior month. Redmond statistics saw median price rose to 515,000 compared to 497 in May. Redmond area permits rose to 39 for the month compared to 24 for the prior month. And I will note that the number of sales in the Redmond area remained stable over the past few months, which correlates with a lot of the economic growth that's happening in Deschutes County is actually happening in the Redmond market. Looking at other markets within Deschutes County, Sisters had an 833,000 median sales price on 10 sales. Sunriver was jumped actually at 1.1 million on 12 sales and Lapine was at 425,000 on 13 sales. Any questions on the economic data?

Actually, I thought the permits actually, the national number was really huge last month. It was actually bigger than what they expected.

Housing permits, not sales.

I think the start was way bigger. It did spike up. Yeah, it spiked really big. Anyway, but then our unemployment in Oregon, I believe, is a percentage higher than the national average.

Yeah, yeah. Now, Oregon actually, unfortunately, is still... operating under a higher unemployment rate than the nation as a whole. Right. Yeah.

A point above.

Yeah.

But I did talk to the realtor and sisters the other day, and he said that above a million is really selling and below $600,000. But from $600 to a million, that market is not happening.

Yeah, that kind of middle market there, and I'd say $6,000 to $650,000, slightly over a million. It's pretty slow right now. And that really correlates with the number of cash buyers in the market too. So cash buyers are buying the higher end properties and paying cash, not having a mortgage. And the lower price point is actually driven by mortgage rates. So without further ado, I'll move into the June Treasurer's Report. Portfolio balance was at $328.7 million at month end, which was actually a decrease of $24 million from May and increase of $5.4 million for last year. The decrease in June was principally due to a large $12.5 million tax turnover, monthly turnover that we processed on June 2nd, and also ongoing funding needs, including funding the courthouse and operating needs for the county. Net investment earnings were $1,028,900 for the month, which was $86,000 lower than last month's earnings and $24,900 higher than a year ago. We are starting to see the impact of monthly earnings from overall reductions in our portfolio balance I will state that, well, actually, I'll talk about rates here in just a minute. All portfolio category balances are well within policy guidelines. The LGIP rate remained at 4% for the month of June, and the FIB rate in June remained at 3.65% for the month. These rates have typically been reflective of lower Fed rates and short-term investment yields. However, over the last 30 to 45 days, we've seen a tick up in short-term bond yields out to 90 days. And I wouldn't be a bit surprised if we actually didn't see maybe a take-up in the LGIP rate because of that recent spike in short-term bond rates. So again, it's something that I'm watching. Again, I feel like that LGIP rate is, we have good like a floor on that rate right now. And we might potentially see a tick up in it just because of what's happening on the shorter end of the yield curve.

So what's your opinion on the blazers then?

Excuse me?

What's your opinion on the blazers then?

Should I have an opinion?

I don't know. I just wondered.

Yeah. Yeah. No, I mean, that is interesting market conditions right now. I'll just state that.

It's our professional team, isn't it? Yeah. Biggest one.

Yeah. Overall portfolio yields did rise slightly to 3.92%, which was up from 3.88% for the prior month. And then again, I've talked a little bit about the short-term rate prognosis. We'll definitely be watching that over the next 30 to 45 days to see what might happen with our Basically, where we're housing our short-term liquidity is both within the LGIP pool and also with the third tier of our investment pool with First Interstate Bank. The average time of maturity is now 1.35 years. And I think that's it for my report. Any questions? Thank you.

If you can let us know when you get the apartment.

Yeah, and that should be, I'm glad you brought that up. Typically release it around the 20th or so of the month following quarter end. So my guess is we might even see that report later this week. And then I'll report out as soon as I have that available.

I did have one question. So on our 24-month historic investment return charts, You know, the county rate peaked a year ago. And, yeah, that was a good time for returns.

It absolutely was. Yeah. And this is where, you know, we're starting to see, like, over the last, you know, 30 days or so, we've seen yields spike. probably 40 basis points on the shorter end of the curve, which is amazing. Unfortunately, where the county is right now is that we just haven't had the investable funds to go out into the market right now. So I haven't done any investing for probably 60 days or more. But we have seen a spike on the shorter end of the yield curve, but we were able to lock in some pretty attractive yields when we went through our investing cycle late in 2025 into early 2026.

So if we, I mean, of course, if we're, if the economy isn't super strong in the next half year, which seems like a real possibility because we have, you know, we have, we have investments in some pretty good places. We, we won't, you don't think we'll see a dramatic change, decline in that. And overall yields. Yeah.

Yeah. Possibly. And again, so much of that depends on the economy. And there's a real focus at the Fed right now to keep the labor market strong, but also managing inflation at the same time. And those two are diametrically opposed to one another. And so it's a challenging time to... you know, manage the economy through the Fed's eyes. And it'll be interesting with our new Fed chairman, Chairman Warsh. You know, he has a challenging job description right now. Thank you.

But practice, you did get a million plus more interest this last year in the prior year.

Oh, yeah, absolutely.

You've done a great job. Yeah, thank you. Did you say you wanted to do a new job? You're looking for your next one?

Yes.

That was to go to the hay wrench, right? Yeah.

So now item number five, our preliminary finance report for June 2026.

Yes. Good afternoon, commissioners and commissioners online. This is the financial report as you just mentioned for June, 2026, and it is very, very preliminary. So I am very much putting that forward there. That's kind of the theme going on with this report. Cause as you know, just as a reminder to all of us, we continue to post back to expenditures really through September and the audit isn't final till November, December, the financial report comes out in December. So it takes a while before we get finally true numbers. For the next couple of months, there's a lot of activity. Then it slows down and we only post back major material transactions if they haven't already been posted. So I just say that up front that this is very preliminary and the numbers will change. But it does give us a good estimate of where we're at for June to see if we're on track. And at this point in time, we are tracking. But when we go through these reports, you will see the actual numbers. our year to date numbers are most cases still less than the projections because we still have some material transactions to post. And one of them is our payroll that posts. We get paid on July 30th, but part of that includes nine days in June still. So June 22nd through June 30th is paid on July 30th. So 30% of our wages still need to be accrued back to June numbers. So our actual numbers don't reflect nine days of payroll. As you know, payroll is one of our major expenditures for a service organization, county government. So anyway, so that's just a heads up. These are preliminary numbers. That's why we're still looking at the projections at this point. And the projections, again, aren't material difference in most cases from what we presented before. So I just wanted to highlight that. But starting on page 83 in your packet is the, again, these are the unaudited reports. Our revenue is $51.8 million or 105% of budget. This is for the general fund. And expenditures are $38.7. You'll see it's only 76% of budget at this point. Again, that number will change because we'll continue to post expenditures back to the general fund and all funds, especially that personnel. more revenue posting in the next there potentially could be a dip and it's the timing so really we do have 45 days is one of our key revenue dates after the end of the fiscal year for in governmental funds for posting the revenue into that fund so if it comes in a little bit later but it still relates to the last fiscal year there's a chance revenues could change usually revenues are are closer at this point in time it's more the expenditures but there is a possibility for both hey 84 the position control summary so this is the last report of the year for this and you will see for the month of june we were down to 7.13 as you know the last few months we've been down to seven percent vacancies in in that and that's as you recall a result of the vacant positions that were deauthorized by the various departments for the fiscal year. So we ended up the fiscal year at 8.8%. There were no net changes between last month and this month. That's the final vacancy unfilled positions for the year, which is lower than it has been. But again, that's also a result of some of those positions coming off of that. The next report on- Robert, question. Yes.

On the dashboard in the back of the page, it talks about approved FTE, and it's got a number 122.46. Yep. Is that a different number of some sort, or what is that number?

A different number than? 122.

Yeah. I mean, maybe it needs to be a thousand.

For the general fund.

Oh, okay. General fund. So that's why. Yep. Yeah. Organization-wide. Okay. I was just wondering if maybe there was a decimal place or a comma missing or something, but I got it.

Oh, yeah. That dashboard is just for the general fund.

Got it. That helps. Yep. Thank you.

So the total personnel and overtime report on page 85 in your packet. So that's the next one. And this really is the commentary of where you'll see actual personnel costs are $250 $1.8 million, and we're projecting them to even increase to $208 million, again, because we still have more payroll that needs to post across all funds. One thing I do want to point out, this year was a bit of an anomaly in payroll and personnel costs in that, as you know, we went through the pay equity study and the market study. So the pay equity study, those payments were paid out in June, on June 30th. So budget comes to the Board of County Commissioners and had a supplemental budget mid-June that projects what our total final cost will be across all funds. They look at where our expenditures will be and make sure we have enough budget authority for all those expenditures. So we made some guesstimates on what the final pay equity numbers will be, made sure we had enough budget authority for those amounts. That could be correct and that could happen. However, There could be some funds or departments where once we knew what the final calculations were in the final retro payments, maybe we didn't have enough budget authority for those. And so it's, it could happen that there could be a over expenditure on the budget authority. We don't know yet. We don't have the final cost yet, but that's what we're tracking and watching to see if that does occur occur. It will come out when we release the audited financial statements in December, the end of November, 1st of December. And it'll say you had a budget violation in this fund for this reason. Then what we have to do is we file with the state of corrective action. But in this case, it's very easy because for us, we say it was a one-time payment. The payments were made on June 30th. Obviously, once a payment is made, You don't know in advance what those final amounts will be. So there isn't time to do a budget adjustment in advance for any of that. So that's a long explanation for what may or may not happen. But I do just want to give you a heads up that if that does happen, it's not uncommon for a situation like this. But if it does, I just want you to be aware that it has the potential to happen if the estimates weren't enough when we came back with that final adjustment number. It doesn't mean funds weren't there to pay it. It just means the budget authority might not be there. That was a lot, and it's pretty technical. But if we get there, again, I just wanted the board to know that there is the potential that can happen. But we are monitoring that as well. The next page, 86, resources. Normally, I don't go over some of these pages. But as of right now, I just want to point out the very number on the bottom, total resources, 101%. What this means is compared to budget, overall, the funds are receiving what they expect on the resources, 101% overall for all funds. It varies by fund. The next page requirements, which is the expenditures. Of course, this is to date actuals is 83%. Total all funds combined, we're expecting it to be and at 92%. Again, we always hope we get 100% of our revenue. And we usually budget conservatively or meaning that we on our expenditures, we want to budget more, but spend a little bit less than that. So we don't go over that. Finally, page 89 on the total resources, total funds summary, the ending fund balance. We are projecting ending fund balance, all fund All funds combined to be 119%. Again, this is very preliminary. We're going to have actuals post for a while, but just want to give you an overview that at this point in time, it's good to see that revenues are on target, expenditures are under, and our ending fund balance is higher than what we anticipated. So those are good trends overall for those funds. Page 90, general fund. I think I already covered in general what I was going to say for this too. Again, the net ending fund balance for the general fund, it is similar to projections from last month. So that hasn't changed a lot. But again, looking at the actuals column on the general fund, you'll see the ending fund balance is $36 million, which is higher for right now, but we're projecting to end around almost $28 million. So the actual numbers now will come down as we continue to post expenditures with that. And again, you'll see that with every single fund. Juvenile Fund 030, page 92. Overall, this fund is similar to prior months, but I do want to point out if you go most of the way down the page under transfers on the far left column, you'll see transfers out. They have budgeted $3 million, but to date actuals, it's only $1,000, $1,300. So it's a difference of $3 million. What this is, and you'll see this in the Pearl and Probation Fund, is we are closing out this fund, and it's going to be combined. So DV's programs are all going to be combined into one fund now, into Fund 355, Adult Pearl and Probations. So once the final numbers are known for Juvenile Fund 030, then whatever fund balance, ending fund balance is left, we're going to transfer that out before we close the book so that this fund will go to zero. And this fund has a transfer out. When we get to Pearl Improbation Fund 355, you're going to see there's a transfer in of $3 million. We're just moving the money to combine it into one fund. And that was part of the budget that was approved, adopted by the board, approved by the budget committee as well in there. So if you wonder, why is that $3 million difference? That's what that difference is. Next page, 93, TLT fund. 160, 170 combined. This was a shocking month. I'd say shocking for us. Good news. Good news. So when we reported the June revenue, which is May activity we collect in June, it was up 21.6%, which is great news. It's good to see. That's the highest increase for the For the entire fiscal year, the next highest was the previous July, which was 11.3% increase. So double, about double that amount. So that was a good month to end the year as we have some smoke and other things going on now. So we'll see. But so that left lodging tax revenue up 4.6% from fiscal year 25. That was actuals, but up 6.3% compared to budget. So that was a good news story to end the fiscal year on for that fund. And again, the residual balance to that goes to the General Accounting Reserve after we meet our commitments and all the other transfers out that we have and pay BCO and the administrative costs there. The net always goes to that fund. We do have our $1.5 million of reserve that we have for our debt service payment, which is the average debt service payment. And because of this overage, the good thing is, like we've talked about before, we'll be able to establish that contingency policy, the contingency reserve that follows the board policy that every fund should have a contingency. We haven't had it for this fund before because it's always been transfers out. And the logic has been, well, we'll just reduce expenditures if we don't have the revenue in. But given how it really supports a lot of operating, costs, we do need that contingency in there. So when you see the next budget cycle, you'll see that in it. And we talked about that during the budget presentation as well. Okay, so that's a lot of details on those funds. Page 95, Justice Court 220. And if I skip a fund, if you have questions, just let me know. No big difference on this report, but I just want to give you a highlight that we're still monitoring and wondering about the revenue that's going to come in because of the red light traffic cameras in Redmond that's put in. And so we've been talking with justice courts and eventually we'll see the revenue start trickling in. It's not coming in yet, but we're going to be watching those trends for next fiscal year to see how it comes in. Sheriff's Office Fund 255, their projections are similar to last month. Right now, the projections are The projection is the ending fund balance, sorry. The ending fund balance is higher than the projections, which is good. But again, we're still waiting for that final pay equity number to come through. So these aren't final numbers yet. So we'll see where this fund actually lands along with all other funds. H97, the OHP and capital reserves. Currently, the actual balance is $48 million. They are projecting the end of the year at $41 million. Again, I want to comment on one line on here, transfers out. It's about three quarters of the way down on the page. If you scroll across the budget, you'll see there's a budget of $12 million transferred out. Their projection is $10 million to transfer out. I say that because, as you know, as you may recall, the capital reserve transfers money from this reserve to support operations in their funds, the breakout funds, which will get to mainly public health. But those end of year transfers haven't occurred yet. So that's why you'll see a difference between the actuals and the projections. So the next page, Health Services Fund 274. This is combined. That's where I just want to highlight. If you go down to the transfer section, the very first line, transfers in OHP mental health, budget $12 million, projection $10 million. Those are those same numbers we just saw from the reserve, just opposite. And this is a roll-up of their Fund 274. So the main transfer, if you go to page 100, which is Health Services Behavioral Health, Fund 274. So again, Health Services Behavioral Health, Fund 274, page 100. If you go to the transfers in OHP Mental Health, again, you'll see for their portion of that, which is the majority of the transfer from OHP fund goes to budget of 11.7. They're projecting 9.8. So a little less than they were projecting, but that transfer hasn't happened. Once the final payroll is posted and once more costs are, final costs are near final, then they'll do the transfers between their funds and it'll be trued up for the end of the year. Similar to page 101. That was behavioral health. This is public health.

Yes. Just acknowledging that we've got the one-time disbursement from the Central Oregon Health Council that was probably kind of backfilling that reserve and that transfer a little bit. I think it was about that much money, $1.8 or $1.9 million. So we thought we were going to have to use more reserves, and now maybe we're not going to have to use as much. But we may be structurally not settled there for future years.

Correct. And during the fiscal year 27 budget, they did mention they will be using reserves, again, to help fill some of those gaps. Other funding may fill little parts of the gap, but that is the use of that reserve. And as you know, that is funded because when they have excess revenues, they transfer it out of the fund, behavioral health fund, and put it into reserves. Then when they need it, they transfer it back in. So it's funded and then and then the use of those funds are restricted for that service as well. So on Public Health 274, page 101, David Miller- Down and transfers. So it's the same story. There's a general fund transfer. And so the general fund does provide funding for public health. That's the main one of the main transfers from the general fund. David Miller- You'll see a budget of 5.2 million zero actuals, but a projection of 5.2 so we're going to transfer what they need, but that transfer in the current fiscal year happens at the end of the year. So we're going to be transferring that funds once again, expenditures go down. And again, they also receive a transfer from the OHP mental health reserve fund of about $300,000. So, and that'll occur. Otherwise the revenues and expenditures are in line. What we've seen before, I just wanted to point out those transfers, the end of year transfers, that's where we're at. So page 104, if you can flip to adult parole and probation fund 355, the other funds are similar, so not a lot to talk about there. So this is adult parole and probation, the other side of community justice. So you'll see down in transfers, again, this is adult parole and probation fund 355, transfer in community justice juvenile line of $3 million, but there's no actual. So this, I just wanted to point out, this is where you see that other side from juvenile coming in here for combining one fund which next year you'll see a combined fund to be 55. road cip fund 465 on page 105 in fact i just want to point out the ending fund balance is 1.6 million higher than what you had seen last month but that's due to timing of projects they updated their projections on the capital outlay that was that will actually be completed by June 30th this year. And so, and those are detailed on the next page as well for an update there, but otherwise it's continuing on. In solid waste, they updated their projections. That's fund 610 on page 107. An increase of ending fund balance of a million dollars. And that's when they updated their personnel costs and their update to M&S, their materials and services expenditures as well. All the fair funds were similar to the last time, but if you have any questions, we know, and there's a lot of all these funds. But I'm going to skip to page 115, the health benefits fund. Again, this is not final, but it is near final for this. We're still posting back. But again, it's the highlight that it has. We've been very fortunate. It has been a very successful year. I'd say it's reduced claim costs, and I'd say that's successful. And with our increased charges, we were able to fully fund this fund back to the levels where it should be and needs to be. And so we are at $22.7 million right now, but as claims still come in, we'll continue to pay. And we're projecting about 6.20.6 million. And actually that number, maybe that's probably conservative. So we may end up higher than what we are. And again, that's why we also chose next year not to increase rates to departments for their departmental charges for that.

That is an amazing number, isn't it?

It is. It's a good place to be because we know it can change in a heartbeat.

In a heartbeat, exactly. That's who's hard at speaking.

Robert, I mean, we had... we did have a few years of pretty heavy claims. And so by comparison, this year is looking like it's billions less.

Yeah, the claims have been reduced. We do get monthly reports. And the Employee Benefits Advisory Committee does see those claims every year. And luckily, our revenues have been coming in higher than what our claim costs have been. And when they see claim costs, it doesn't include things like the cost of the pharmacy or the doc that we have. That's outside of claims costs. But it is part of the health benefits fund that pays for it. So when our claim costs are reduced or also because some of the plan changes like reduced prescription costs as well, moving from a name brand to a generic brand helps a lot as well. So some of those changes actually add up a lot. And for the benefit of the fund.

I just thought about it. It was so amazingly reasonable at the pharmacy. My husband has now decided he's moving his pills over there.

Yes. Yeah, that's a great thing to do.

Well, it is. So that means I have to pick them up.

That's right. Okay. Any further questions? Okay.

Thank you. No, that's great. Yeah. Thank you.

Okay. Now we've added an item for the I-1 Brewer fires. If you

like to cover that, or? Certainly, I can't, Mr. Thank you. And I want to thank certainly Dave Doyle, County Council, for reviewing and helping me with the procedures here on the fly. And again, for giving it a quick scan. I don't want to say that you approved it or not, because I've just handed it to you and Eric Croft for getting the document numbers. This all happened very quickly. So we have document number 202610. That's 0612. And this is what Commissioner Chang, serving as the board chair, signed on Saturday as we were coordinating with Ben Duda and the team on the Akawa Butte. And this also refers to the Brewer fires. So Commissioner Chang signed the delegation of authority. And just the first part of it is Ian Yocum is assigned as the incident commander for the Akawa Butte. Brewer Fire located within the legal jurisdiction of the following authority. Deschutes County, the IC, being the incident commander, will assume command of this incident at 1700 hours on July 18, 2026. And if there's any other information that commissioners or others would like to have information that spells out what that specific direction for the incident commander is, if that's helpful. So this is for board consideration to specifically to So thanks to everyone for your help and assistance with me. And this is the first time Chair Chang has been in this role. And Ben Duda, this may be the person who said that he is in this position with himself. I know he started on the first day of the Black Fire.

He started on the first day of the Black Fire.

Last year.

At the anniversary.

Yes. So this is for you. Is there anything you want to see? I'm happy to read more of it.

I'm supportive. I signed this last year for the flat fire. I guess the one question is if one of the commissioners aren't available at that time, does Bendu have the authority to do this same thing, sign on behalf of the county for future ratification? Because I think that was one of the questions that went through a text this weekend.

Uh, what we figured out was that, uh, the chair is, is authorized to sign and the county administrator isn't is authorized as an alternate. Um, I don't know if we want. If we want or need for, uh. Other commissioners to to also be authorized or not, but.

Well, I would think it would be chair, vice chair, and commissioner, the three of us, if none of us could get there, it would be Nick Lelak. But the question was, is the emergency manager have that same authority, you know, just to be able to represent at the incident to get this moving forward? And we don't need to go very far with it. It was just a question.

And we did coordinate with Ben, and he had coordinated with me on Saturday as well. And he said that if none of us were available, the emergency services manager in a pinch would be able to do it as one of the options. But certainly the first preference was the board chair.

So is this actually your cell phone number?

Does it say cell? It's my cell phone number.

Okay. All right. So do we need a motion then, just for legality?

I would do a motion to ratify the chair's signature on the document number that Nick provided.

Yes, 2026. I move we approve the chair's signature on the resolution 0612-2026 for the I'll second it.

Any further discussion?

So this is a joint incident command structural response in a in a larger overlays crossing multiple counties also. So we want to thank the group that's coming together professionalism to be able to respond to this larger fire event at the landscape scale.

Yes. Yes. Thank you. Thank you. Okay. With that, we're through our regular agenda and on to other items. Are there any other items?

I think they're having a fair meeting tonight. They just kind of review everything, make sure everything's going forward, you know, properly. Hopefully we'll get the fires all cleared out when the fair comes, right?

A couple of other things I'll report back on from last week. There was a Maiden Sisters tour on Thursday. Visit Basics. A company called Boxkill and Sisters Coffee. It was a great tour. Boxkill was pretty interesting. It was a new business. products, primarily constructed of aluminum, and building them right there in a little shop to our plant in Sisters. We also had the next managed camp meeting with the city of Redmond on Thursday. Eric primarily was reporting back to us on how we are going to, you know, how the operations of the camp are going to work, the operator who's been selected, and there will be, I believe, some discussion coming back about just covering the full costs of all of the operations in the next week or two. Yeah. All right. All right. About a week from today. Two weeks from today. Two weeks from today. Okay. With the goal of having the managed camp operating and open sometime in August. That's all I have to report back. Any additional other items?

No, I don't.

Nothing else.

They did have a great attendance at the Sisters. Sure, I guess. Sister's Coffee is a pretty big business, and Sister's, my sister's bakery, and yeah, there's still 60 employees at the bakery, so pretty amazing, because he went, you know, he went wholesale and then retail also, so it's really helped his business a lot.

Very good. Well, if there's There's nothing else for this meeting. We can adjourn the meeting.

Have a great day.

Thank you.

Happy travels.