Town Council - Regular Meeting

Good evening. I'd like to call this meeting of the Pent-Up Lakeside Council to order. We do have a quorum. I would ask you to please make sure your cell phones are silenced. If you would stand and join me in the Pledge of Allegiance and remain standing for the invocation.

I pledge allegiance to the flag of the United States of America and to the republic for which it stands, one nation under God, indivisible, with liberty and justice for all,

I swear.

Our Father in heaven, we are indeed grateful as we gather together this evening in this town council meeting. We are so thankful for this beautiful community in which we live and grateful for this country and the freedoms that we enjoy here. We pray that thou would watch over and protect those who serve in our armed forces and their families. We also pray for those who our first responders and bless them. And we're grateful for the dedicated employees we have here in the town of Pine Top Lakeside. Pray that thou would watch over and protect them and their families. We also pray that thou would send moisture to our lands to reinvigorate our forests and help protect us from fire here in this area. We pray, too, that thy spirit will be with us now during this meeting as we look at important decisions affecting this, our community, and ask these blessings in the name of Jesus Christ. Amen.

Item B on our agenda tonight is call to the public. This is a business meeting of the town council, the town values and welcome public input. Please address the council as a whole and not individual council members. Do not address staff or members of the audience. Council action on items brought up in call to the public is limited by the open meeting law. Council may direct staff to study the matter and reschedule for further consideration. Items on the agenda are not heard during call to the public, and individuals are limited to three minutes. We have one request for call to the public. Before he comes up, I would just like to give a shout out to our community. This past Monday at 6 o'clock in the morning, our public works crews, vice mayor, myself, some of our other staff members, and some community volunteers joined the fishers of men to put up all the flags at Jack Barker Park. That's always a very inspirational display. And I would just like to give a shout out to all of our public works people, all the folks that I mentioned. So thank you guys very much. Yesterday morning, we had three different community groups, the Rotary Club, the Chamber of Commerce, and the town. who cleaned three miles of highway. And I saw the piles of blue bags out here. And I know our public works guys came and picked all those up along the highway and disposed of those. So I'd like to thank all those folks that came out. We spent a couple hours of our time and really made a difference in our community. So thank you, everybody.

Joe Crozier.

It takes me a couple of minutes.

That's all right. We won't deduct it from your time.

Thank you, Mayor and Council and the citizens of our great town. My subject is a little while ago, there was a fire along Billy Creek that was recognized and hit really quickly. helicopter water drops and firefighters cut line around it. My thing is that I was told that that was caused by homeless campers. And I know that there's been a lot of homeless along Billy Creek in that area. I know that my question is enforcement. As a retired fire marshal, it's right on the border of the town, the fire department, and the Forest Service. And the... Apache's sick raise forest allows people to camp for 15 days in a row, and then they must leave the property for 16 days, and they can go and camp again. Where is the enforcement? There's got to be something done. This is a potential for another terrible fire. And especially in the area that we're in, we haven't been burned. The Rodeo Chattisgai over here, the Wall of Fire over here, we've got some prime land that we need to protect. So my idea is to nail down something for enforcement other opportunities for homeless people to be safe. So, thank you.

Thank you. Joe, we appreciate your concern, and you know we really can't have a dialogue about it, but we have the chief and the incoming Pinetop Fire Chief in the audience. You can shout with them.

Thank you very much.

Thank you. Anybody else? Okay. Seeing none, we'll move on to item C, which is our consent agenda. All items listed are considered routine matters and will be acted by one motion of the council. No separate discussion of these items will be held unless a member of the council requests that. Council members may ask questions without removal of the item, and items removed are considered a normal sequence unless called out of sequence. Are there any questions or comments from the council on the consent agenda items? Seeing none, I would entertain a motion. Vice Mayor?

I move to approve the consent agenda. I second that.

Thank you. We have a motion and a second. Further discussion? All those in favor, please signify by raising your hand. Thank you, that carries unanimously. Item B on the agenda is business before the council. Public comment will be accepted at the beginning of each agenda item following the mayor's announcement of the item and staff presentation. A citizen wishing to address the council may speak one time or appearing not to exceed five minutes on each agenda item, either prior to or following council discussion. Questions from council members may be directed through the mayor to staff or members of the public at any time during Consideration of the agenda item. Our first item is D1, which is presentation, discussion, and consider accepting the town's annual financial comprehensive report, ACFR, as well as the annual expenditure limitation report, AELR, for the year ending June 30th, 2025. I believe we have Crimson on the phone. Is that right? Crimson, are you there?

Yep, I'm here. Can you hear me?

Yes, we can. Welcome. Thank you for attending. Appreciate your time tonight, and you can take it away.

Okay. Yeah, I'm happy to be with you all today. As was mentioned, my name is Crimson Singleton, and I was involved in the audit, and so I'll be presenting those audit results here to you this evening. So we were previously with a company called Hinton Burdick, but we have merged with a company called Squire. So we've been working with the town for several years now, but just wanted to bring that to your attention that now Squire just gives us a few more resources and availabilities to help serve all of our clients and those we do business with. As we're getting started. We just wanted to thank the town and staff and town staff and James Vincent group and all those who helped Helped us complete the audit It's a lot of extra work besides the day-to-day duties to get us information to complete the audit. So we appreciate all their help and then as we're going through If management or anyone has any questions or insights they'd like to add, feel free to jump in. And then you should have all received a copy of the financial statements on the annual comprehensive financial report. And in there, if you look at nothing else, there's a couple of items towards the beginning that's a letter of transmittal and management's discussion and analysis. And it's a higher level. just kind of summarized information that may be of interest to you to look at. So I just wanted to bring to attention kind of the objectives of what our financial audit is. So the objectives are to obtain a reasonable assurance about whether the financial statements as a whole are free from material misstatement. Misstatements are considered material if there's a substantial likelihood that individually or in aggregate they would influence the judgment made by a reasonable user based on the financial statements. So that's kind of our scope of what we're trying to accomplish, and we conduct our audit in accordance with auditing standards generally accepted in the United States of America, as well as Standards that are applicable to financial audits contained in government auditing standards issued by the comptroller general of the United States So in the in the act we call the act for the financial statements There's a few reports in there the the first one is and that we've referenced that those page numbers are referenced in in the act for the So that's where you'd find those. But the first one is the independent auditor's report. And our opinion is an unmodified, or in other words, a clean opinion on the financial statements. And then we're also required to issue a report on compliance on internal controls over financial reporting. And while we don't test controls as we get an understand, we are required to get an understanding of controls. And if any material weaknesses or significant deficiencies come to our attention during our audit, we list those there. And there's nothing of significance that we noted there. And I do want to point out with the James Vincent group, I know they've kind of taken a look at some of the controls and are just kind of have been tightening things up and just taking some fresh eyes and a fresh look at that. So that's a good thing. good thing to have. And then on page 103 is the state compliance report. There wasn't one item there. There were a few departments in the general fund that exceeded budgeted amounts, as well as the recreation and tourism fund that their expenditures exceeded budgets. And the details of that would be in the separate findings and recommendations letter that I believe you all got a copy of. So that was what that item there is. But as an overall town as a whole, that's the annual expenditure limitation report looks at budgeted amounts and approved expenditures as a whole. and the expenditures there were below the approved limits there. All right, so now that was kind of our results. Now we'll go into a few of the numbers and just some highlights there. And I know these are all as of June 30th, 2025. So the numbers are, Yeah, a little bit outdated. I'm sure you've been receiving more up-to-date reports, but I'll just go over what was the numbers as of June 30th. So the total net position, which is kind of the governmental term for equity, it's the assets less the liabilities. And the governmental activities was $8.5 million, and the business-type activities, it was $15,000. And then the change in net position of the governmental was 1.8 million increase, and business type activities, 15,000. And so over time, if there's increases or decreases reported here, it can be an indicator of whether the financial health of the town is improving or deteriorating. And while the change in net position did increase, a lot of that was due to capital items that were added and as we'll see when we get into the funds some of the available resources are dwindling a little bit even though here it shows that net position did increase i know this is kind of small but this is just kind of some of the some of the details on those increases so the Kind of the top part, top left there, the total expenses government-wide are almost $12.5 million. And then that was covered. And then as you move to the right, it shows how those expenses were covered with various revenue sources. So there's $650,000 in charges for services, $805,000 in operating grants and contributions, Almost $3 million in capital grants and contributions. And then down below, these are general revenues that aren't tied to a specific function. They're just general. It can be used as needed. Most of it is the city sales tax, which was $7.6 million. And then there's a few other taxes there, but the total general revenues was about 9.7 million. So that gets the change in that position of the 1.8 million. And then also kind of government-wide, these are the capital assets of the town of Pinetop Lakeside. And the last... couple of years there have been substantial capital asset activity, as I'm sure you are all aware of. The large increases in this last fiscal year, 25, was various construction projects that increased. Total additions government-wide of the capital assets was $6 million. Construction in progress increased $5 million. About 2.1 million of that was the police department building. And as the end of June, there was 6.1 million that had gone into that project that was still in construction in progress. And then 1.6 million additions in construction in progress for the Porter Mountain Road improvements. And the total ending construction in progress for that project was $2.8 million. And then also during the year there was vehicles and equipment, machinery, and those purchased for $972,000. And depreciation expense for the year was $1.1 million.

And before you continue, can I interrupt? Can you go back to that page 15 and explain what the restatement adjustment is so that the public is aware of that?

Sure. Yeah, so... In this last fiscal year, there was a new accounting standard that was required to be issued. So part of that restatement adjustment is due to that. It's related to compensated absences. There was a change in how those are recorded or valued, I guess. So previously, just what was accrued would be what the town, so say an employee had 240 hours of vacation that was accrued, and if only 200 of those hours were required to be paid out, like if they were to leave, then all of that, only the 200 hours would be accrued. But the new standard now requires that What's accrued is what would be paid out or what would be used. So the main adjustment here for the town was some sick leave where previously it wasn't paid out, but now under the new accounting standards, the sick leave would be, it's anticipated that most of it will be used or paid out. So it increased the liability for compensated absences. So that's what that adjustment is. Thank you. So it's nothing that the town is doing wrong. We had to fix anything. It was just a new accounting standard that required us to make that change.

Thank you.

Any other questions before I go on?

Go ahead, I see.

Okay, so here's the capital assets. And then this is just the capital assets of the business type activities. They had 215,000, almost 216,000 at the end of the fiscal year. And during the year, there were $47,000 in additional machinery equipment vehicles that were purchased for that fund. net of depreciation expense during the year was 17,000. So it was a total increase of almost 30,000 in capital assets for the business type activities. And then this is some highlights on the long-term debt and long-term liabilities. So the governmental activities, long-term debt, And this is just the debt part, not including compensated absence liabilities or pension liabilities. At the end of the fiscal year was $11.3 million. Overall, it decreased by a net of $487,000. There are additional notes payable and leases that were brought on, so additional debt of $625,000. The debt payments that were made during the year totaled $1.1 million during the year, so there was a net decrease of that $487,000. And then the government-wide net pension liability and OPEB or other post-employment benefit liabilities was $4.7 million at the end of the fiscal year, and that's a decrease of $287,000. and $11,000. Any questions there?

Jameson, this might be the time for me to ask my question.

Okay, yeah, go ahead.

And I'm sure the James Vincent group is not going to be happy with my question. In fiscal year 2025, there were, let me back up a little bit, we have our bond payments. and they have semi-annual interest payments and annual principal payments. I believe in these financial statements we've recorded three interest payments on each of those as well as two principal payments. That's a pretty significant swing. So in a year where we have a cash crunch, we have recorded extra payments and then also budgeted for those in the next year. So when you said we were over budget, a couple things were way over budget on those. And so I, you know, you said in our conversation yesterday, Crimson, that these are are financial statements that belong to the town. And I believe that is something pretty significant because that's employees, that's services we had to stop, that's programs we couldn't do. And so I really feel like that doesn't compare apples to apples. So I just have to say that and you can tell us your rationale for how you report that.

Okay. Yeah, I'll give a little more background or explanation. There's a debt payment that is due on a couple of bonds that the town has issued. The payment is due July 1st and there's a couple of different ways to account for that payment and the way the previous finance director recorded it was one way and the new finance director or the James Vincent group, yeah, they wanted to do it another way. Both ways are acceptable um, ways to do it. Um, but the James Vinson group really wanted to do it this other way. So as a result of that, it should, I mean, in the end, at the end of the day, the same debt payments were being made. It's just that July 1st debt payment, instead of being reported next fiscal year. And so fiscal year 26, it's reported, um, in fiscal year 25, when the, the debt payment was sent to the escrow account to make that payment on July 1st. So, I mean, it's just small timing and it's, I mean, it's within a couple of weeks difference. So, I mean, the financial statements for this year will show, yeah, a couple of extra debt payments that were made. But at the end of the day, town wide as a whole, if you're, you know, if those, it's just kind of a year end timing thing, So it's not like you're making extra payments. It's just kind of timing of when they're reported in these financial statements.

But I still feel like it has skewed the results of our financial operations because then we budgeted. So in essence, we're ahead of the game. And so that has impacted the cash that is available. I think if we looked at the BNY Mellon statements, it would show that the cash was still in the bank at the end of June You know, I voiced my concern over this, and I know that you guys have a difference of opinion, but I just wanted to bring that up because I do have some concerns over that and how it's impacted our budgeting process, our cash flow, and these financial statements.

Madam Mayor, if I may. So you bring up a couple points, which I need to correct. Ultimately, the town has always sent that payment to BNY Mellon before the end of the year. Once that money goes into the BNY Mellon account, it is no longer an available resource of the town. That money is sitting in that escrow account, but then gets paid out to the bondholders. So it's a matter of semantics. It's not affecting employees' pay. It's not affecting the financial well-being of the town. It's a simple matter of when we're recording the payment. I believe Crimson just said that as well. So it has nothing to do with diminishing the resources for the town. In fact, I make an argument that it misleads the available resources of the town in the past That debt service payment was looked at while the money was sitting in the BNY Mellon account. It was listed as unrestricted, which in fact is not true because that money is restricted once it goes to BNY Mellon for the payment to the bondholders. So I understand that this seems to be an ongoing issue that you have, but I think it's highly inappropriate at this point as it does not affect the financials. Your auditor has said it does not affect the financial health of the town, and it seems to keep coming up, and I'm really confused as to why.

Because I feel like it's in the budget again.

Because we're going to make the payment again, Madam Mayor.

I understand that.

There's no duplicate budgeting. There's no duplicate budgeting. There's no duplicate payments. I could draw a chart and show you how the money flows and show you that there's not a duplication. But you're making a statement that there's a duplication and misuse or misappropriation of town resources, and I find it highly inappropriate.

I absolutely did not suggest misuse of funds. I am suggesting that we're not reporting things on a consistent basis, and so I feel that it skews our results a little bit. So I'm going to ask Crimson to go on, and we can... You know, if she's comfortable with that, she is the auditor and her company is the auditor, but I still feel like that we're not consistent. So go ahead, Crimson.

All right. So that was the government-wide. Now we'll get into some fund highlights. So as I mentioned before, so these graphs will have some... Some fun it'll be the fund balance or the net position was just kind of the governmental term for the equity the assets minus liabilities equals the fund balance and the governmental funds. Then you utilize the modified accrual basis so when capital assets are purchased the their expense when they're purchased rather than recorded on the balance sheet when long term debt payments are made. They are also recorded as expenses instead of reducing the liability. But then the proprietary funds utilize the full accrual basis of accounting. So we know what we're looking at here. So this is the general fund. The top line there is unassigned fund balance. At the end of the fiscal year, 25. It was 602,000. And so it is a substantial decrease, about 2.6 million decrease. Revenues did increase a little bit during the year, about 555,000. There was some additional ARPA funding. some of the COVID money that was used up and recognized that year. But the main reason for the decrease was the expenditures were up due to transfers to the capital projects fund for capital projects. There was about 3.7 million that was transferred out during the year for capital projects. As a recommendation, the GFOA, which stands for Government Finance Officers Association, they recommend a minimum of two months' worth of operating expenses and fund balance. And this, based on the fiscal year 25 expenditure levels, that represents less than one month in unassigned fund balance. So I know the town's aware of it and kind of been trying to make address concerns, but that's just, yeah, it's something to continue to keep in mind to build up those reserves a little bit. Okay, this is the HEERF fund. These are funds, that are restricted for street projects. At the end of the fiscal year, there was 302,000, which is a decrease of 225,000. This fund is anticipated to, it's not unusual to fluctuate year to year as resources are saved up for bigger projects and then used as those projects come to fruition. So it has been dwindling the last few years, As of the end of the fiscal year, it was $302,000. And during the year, there was $196,000 transferred out to the Capital Project Fund for projects there. This is the Recreation and Tourism Fund. It's committed resources for recreation and tourism activity. As of the end of the fiscal year, it had $770,000. 7,000 in resources and so a small decrease but it's still within the prior year trends higher than most of the previous previous years shown there and there was about And this fund, there was about $466,000 transferred out to the capital project fund for projects there. And then this is the capital projects fund. So there was some debt that was issued back in fiscal year 22, mainly for the police department building. So that was the big spike there. Those funds have all been spent as of fiscal year 25. So the fund balance there is zero. Typically the revenue sources in this fund are transfers from other funds to cover projects and debt payments or debt issuances. So as of the end of the fiscal year, all the resources have been used up and there was a zero balance in there. So as needs arise in the capital projects funds, General fund or whatever other funds would need to transfer in resources to cover the projects going on and the debt payments in that fund. This is the solid waste fund. And so, in addition, so the so this one is the full accrual basis of accounting so as assets are purchased. they go into the assets instead of expenditures. And so that top line, the purple line, is net investment in capital assets, which was $125,000, which represents the assets in the fund less any debt that was outstanding to acquire those assets. So the overall the equity in the fund was in a positive position but it's all tied up in capital assets the unrestricted net position in the fund is a negative 109 000 so ideally you'd want that unrestricted to be zero and you'd want this fund generally you'd want funds to be self-sustaining unless the intent was to have subsidies from the other funds to help support it. Since the last few years, that orange line is the transfers in. So it was $135,000 in fiscal year 25 that was transferred in from the general fund to cover the needs of that fund to get the cash into... basically a zero position. So as cash is required in the fund, transfers were made into that fund to cover the expenses in the fund. And then this is just total government-wide cash. So that bottom line is the business type activities that the fund we were just looking at was $100. And then in All the other funds, there was 2.7 million in cash at the end of the fiscal year. So that's what the information I had to go over with you. If you have any questions, I'm happy to go over those. We appreciate the opportunity to work with the town. And yeah, as I mentioned before, I want to thank everyone who help us get the audit completed.

Thank you, Crimson. Question? Councillor Heisler.

First, I just want to make a statement that I guess to JVG's defense and to proper accounting principles, I, for one, like the fact that we are recording payments when the payments are supposed to be recorded because I very honestly felt like in the past we were playing a financial game of when we were going to record payments and when we were not going to record payments, and therefore it made it very hard for council to to track and understand where money actually was being spent and where it was being tracked at. And so I, for one, appreciate it. Crimson, I had a question. I'm going to read. Your original statement is to form and express an opinion about whether the financial statements have been prepared by management with your oversight are prevented fairly in all material respects in accordance with accounting principles generally accepted in the United States of America. And with that statement, my question was, looking at the financial statements as a whole without testing the backside of the system. In other words, what I mean is if you're not looking at check requests, if you're not looking at how money is expended, and you're just looking at the financial statements, then how can you come to the conclusion that the financial statements are correct?

So yeah, we do dig into the details. So like the cash balances, we'll pull... So that's just, I mean, on the financial statements themselves, it's everything's aggregated. But during our testing, we do dig down into the details. I mean, it's sampling. We do not test every single transaction, but we do dig down. So for example, cash will get bank statements of all your bank accounts and bank reconciliations and say, okay, if cash is 2 million, does that agree to bank reconciliations and bank statements? So it's not just the whole analytics at a whole. We do dig into the details on what makes up a lot of those numbers.

I guess that was my question or point. I mean, I understand reconciling them against the bank statements. What I'm questioning is, how do you know that the statements are accurate or that our financial policies are being followed, for example, if you're not looking at digging a little deeper, at least to some degree?

Yeah, as I mentioned, we do dig deeper. We select some invoices. So for some of the expenditures, construction projects, we'll look at an invoice and say, okay, the town reported that they spent $200,000. Does that match the invoice? So we do take some samples there to where we feel comfortable that we've looked at enough transactions or enough things that, okay, we've looked at enough that we feel comfortable that what's being reported is materially correct.

Councilor Phillips, does that answer your question?

That answered that question. I have several more. I did want to ask that you said there was one matter noted under findings and recommendations for fiscal year ending June 30th, 2025 and the I feel like the inference here at the dais was that we're over budget because we made an extra payment, but I don't see any of these funds contributing to the payment of a bond. So I think that's a little bit misleading, but I want to read this for the record and then ask a question about it. But it says expenditures over budget criteria. Arizona Revised Statute 42-17-106 states the town may not spend money or incur debt in excess of the amount stated for each purpose in the final adopted budget for the year. Condition. The following department expenditures in the general fund exceeded the approved budget. Town Council by $393, Town Manager by $41,758, financed by $15,006 and fleet maintenance by $5,284. In addition, the recreation and tourism fund exceeded the approved budget by $39,358. the town's internal controls over compliance did not prevent budget overruns in the fiscal year 2025. the town did not comply with ARS 4217-106 in the departments and funds mentioned. Recommendation, we recommend the town design and implement controls to operate within the confines of the budget by limiting expenditures to the amounts budgeted. And I guess my question for myself and members of the public is how do you get a clean, unmodified opinion from an auditor when you have five different violations of Arizona state law?

So our clean opinion there is just that the numbers presented in the financial statements are accurate. So the budgeted amounts on one of those departments or the funds, the amounts reported as expended during the year are agreed to the invoices or records that we looked at. So that part is just on the numbers themselves. And then there's additional. So it's kind of a separate thing on the state compliance. That's kind of its own. Yeah, it's different. We're expressing our opinion on the financial statements on the independent auditor's report, and then the compliance is a different matter that's brought up in the state compliance report.

So I guess the confusion for me is if the audit reports or the financial reports are in violation of state law, they can still be clean and unmodified?

Yes, yeah.

Okay.

So I can, let me see if I can, if you read the, let's see, this is on page one of the financial statements. So this is what we're expressing our opinion on for the clean or unmodified opinion. So we're just saying that the, the financial statements, meaning the numbers reported in the financial statements for each, like the government wide and each of the funds and all the notes. So basically the numbers and what's presented in the financial statements, the numbers are accurate. So yeah, that's what we were saying there is that the numbers presented are accurate within material, all material respects.

Yeah, and I guess my statement doesn't change. I guess I struggle to understand how accurate financial statements can be in violation of state law. I don't understand how those two things go together, but I'll move on. In this document somewhere, you stated management override of controls is a significant audit risk. Can you explain that?

Yes, so I believe you're referring to this communication with governance. So that's just as auditors, we're required to assess the risks of the town. As part of our risk assessment, the auditing standards basically say management override of controls, you always need to consider that as a risk. Not necessarily saying the town was doing anything wrong or that there's anything, any issues there. It's just saying that's a risk. So as you approach your audit, just keep that in mind that that's a risk to be aware of.

Okay. And then I guess the final question that I have is, and you kind of addressed this already, but we had a government funds decrease of 3.35 million and a general fund decrease of 2.62 million. And I understand that some of those monies were allocated to capital projects. But I guess from an auditing perspective, wouldn't it be reasonable to assume that with the other things that you found here showing that budgets were not properly followed and two Arizona revised statutes, then wouldn't it also be reasonable to conclude that our ending fund balances would be in a better position if they had been followed?

I'm sorry, you were cutting out a little bit there. I didn't. completely catch the question.

Sure. So I said government funds decreased by 3.35 million and the general fund decreased by 2.62 million. And with the other findings that you found that we were overspending in our budgets, wouldn't it be reasonable to conclude from an auditing perspective that our fund balance would be better if we had been following our budgets?

Uh, yeah, I guess in those, those few instances, I mean, they weren't significantly over budget there, but yes. Um, if it was in within budget on those departments and the, the recreation and tourism fund that I mentioned that, yeah, the fund balance would be slightly better.

So I, I guess, and I understand you only took a relatively, um, shallow dive into the financial statements and not necessarily the practices behind the scene, but I still, even with that particular metric, I still struggle to understand how Hinton, Burdick, or Squire gives a clean, unmodified opinion when we are, when our fund balance is spent down $5.97 million and we're not, and we are clearly in violation of Arizona revised statutes. And with that, I will-

So yeah, our clean opinion is not financial health of the town. Control findings or compliance findings, those are in the separate reports in the back where we report those. So back here, if there's any state compliance matters or internal control weaknesses, those are reported here. The clean opinion or the results up here is just saying that the numbers presented, we agree that they're accurate, they're not misstated in any material effects.

I think I understand, but I don't think most members of the general public understand. They think that we're getting an audit. And the audit is looking at all of our financials and all of our financial policies. And the indication that Squire is giving us a clean audit opinion means that the town is doing everything that it's supposed to be doing. And I think that you've cleared up for us that you look at a very narrow focus of issues. And you have also highlighted that there are some issues that need to be addressed. So thank you very much.

Yep. Councillor Phillips?

When you were explaining to Councillor Heiser that you guys kept saying you took samples, you didn't look at all the finance or you didn't look in the checkbooks, my question to you is who supplied you the samples that you based the Clean Bill of Health on? If you just looked at samples, did you just randomly ask them or was it provided to you beforehand?

So we obtained what's called basically it has every single transaction that was recorded into the town during the year and we'll drill down into different accounts. So if there's a specific expense line item, we'll kind of look through and say, we'd like to look at this transaction, you know, make our selections. A lot of times we do focus on some of the higher dollar items and then we provide our list of transactions we want backup for and then we provide that to the town and then they'd provide invoices or other supporting documentation to legitimize those transactions that we looked at.

Okay, thank you.

Any other questions or comments? Okay, I would entertain a motion then.

I move to accept the town's annual comprehensive financial report and the annual expenditure and limitation report for the year ended June 30th, 2025 as presented.

I second that.

Do you have a motion and seconds or further discussion?

What do you have as discussion? So by accepting it, are we just accepting that we've received it essentially or accepting that we, what is acceptance of it? I guess I kind of want to know that.

I believe it's that we're agreeing with it.

Okay, agreeing with... Yeah, Madam Mayor, members of council, you're simply... The audit report and the audit opinion is that of the audit firm. So council's simply accepting that they received that report from the auditor. And so that's really... I wouldn't necessarily go as far as saying you're agreeing with it, you're not disagreeing with it, you're accepting the audit report and its findings.

Okay, does that answer your question? Yes. Okay, we have a motion and a second. All those in favor, please signify by raising your hand. Any opposed? Thank you, that carries unanimously. Thank you, Crimson, we appreciate your time this afternoon.

Yep, you're welcome.

Okay. Item D2 is the presentation of the April 2026 financial report. I guess Sarah's going to present. I'm going to present tonight.

Madam Mayor, members of council, your April 2026 monthly financial report is in your packet. We'll go through our revenues first. So if you want to move to the next slide. Somebody's doing it. Okay, so looking at our revenue for year-to-date through April, we have just over $6 million of revenue collected. You can see the breakout here of TPT collections is about $4.3 million. Other taxes, we have $1.6 million, and then non-tax levy revenue is about $256,000. TPT across all funds, so this is looking at your general fund as well as your tourism, parks, things like that, is down 3.4% from previous year to date. April alone, just looking at the month of April, we're down 1.5% from last April of 2025. Looking at a couple of the big drivers, construction is down 79.6% from April of 2025. I will mention that there was a correction that was done in the April 2026 numbers for construction that's related to the tax revenues that we received back in 2024. That impact was about $135,000 of a project that was done that should not have been taxed and collected by the town. And so the state took that money in our April numbers, so our April numbers are artificially low because of that correction that's really driving that construction down year over year. Commercial rental is also down about 20% from year to date through April compared to last year at the same time. Retail sales is up about 2.8%, and then our restaurant and bars continues to stay positive at a 10.8% increase year over year.

I can do it from here.

Perfect.

Okay.

I'm looking at our general fund expenditures. You can see here our personnel obviously is our largest categories of cost. We've got about 73% of our costs related to people. We have got 20% is really related to our managerial costs with operations of about six and then training of just shy of 1%. And you can see here On the right-hand side, the different departments that make up the general fund and where they stand today, we've talked about this over the last several months, basically since the beginning of the year, just with that magistrate. It is showing red, but that is because of how we pay the Navajo County contract that's all paid in July. And so that continues to show red. However, there's no issues there. But all of our funds or all of our department expenditures are under budget at this point in time.

And so one thing to kind of add to the audit finding as well, as far as adding in controls to mitigate, you know, the risk of future. This is part of that, you know, this this monthly reporting to the council monitoring those those budget performance. And so if we do notice that we're getting to a point where we're going to meet or, you know, get on the edge of exceeding that budget, take appropriate steps. Budget transfers are something to avoid that overages in the future.

Any questions on the general fund expenditures before I move into the other funds? Next slide. This is looking at our expenditures for our other special funds. And again, same story that we've said over the last several months here as well. We're trending really well. We have streets is slightly higher and also tourism promotion, but still well under where we are, 83% of the way through the year. And we're only about 74% spent on both of those, so. doing well managing our costs on that as well. And then looking at our fund balance, general fund cash as of April is about just over $2 million. It is down from March by about that $300,000. Half of that is related to that property tax, excuse me, the sales tax correction that we saw for period 2024 related to that construction. And then we're down from April of year-to-date as well. And then our projected ending fund balance is just over $2 million at $2,050,526 for the general fund. That completes my report, but I'm happy to answer any questions the council may have.

Thank you, Sarah. Any questions for Sarah?

Okay. Thank you very much. Appreciate it.

We move on then to item D3, which is discussion and consideration of resolution number 26-1814, authorizing the Pinetop Lakeside Police Department to submit a 2026 Tohono O'odham Nation Arizona revised statute section 5-601-02 12% gaming distribution grant proposal. Chief.

evening, Mayor and Council. This evening we're seeking authorization to submit a grant through the Tohono O'odham Nation Proposition 202 gaming grant. In our proposal, we're going to request funding to purchase two fully outfitted patrol cars for the police department. And that cost associated with that would be a cost not to exceed $145,141.64. I'm happy to answer any questions. Thank you. Appreciate that.

Any questions or comments for Chief? I'll make a motion.

I move to adopt and approve Resolution No. 26-26-1814, authorizing the town of Pinetop Lakeside through the Pinetop Lakeside Police Department to submit a 2026 Tohono O'odham Nation Arizona Revised Statute 5-601-02 12% gaming distribution grant proposal, and if successful, appoint Chief of Police Dan Barnes as agent to conduct all negotiations and execute grant in aid agreement with the nation no later than November 13, 2026. I'll second that.

We have a motion and a second. Is there further discussion?

Is that a typo?

What?

Resolution number 26261814? I think it should be 261814.

1814.

It's in the resolution. It's 26-26-1814. I think it's a typo. We'll fix it.

The resolution itself is correct.

Does he have to fix it in the motion?

It's noted.

Okay.

Thank you. We have a motion to second. All those in favor, please signify by raising your hand. Thank you. That carries unanimously. Thank you very much, Chief. We'll look forward to hearing good news on that one, hopefully. uh... item d four which is discussion impossible legal action to approve the community development manager job description and establish a starting salary for the position evening mayor and council and this item i did bring to you guys at the last council meeting it was table to tonight so we have a full council here to hear uh...

My reasoning behind this title change, well, it's an addition that if the public doesn't know, every job title in the town of Pinetop Lakeside and salary has to be approved by council. This is an addition to our job titles that I'm asking for. The town currently maintains an approved community development director title, and that was vacated in January of 2026, which we did not fill at that time. We did have Frank Young, who was filling that position as an interim HE HAS SINCE MOVED ON TO PUBLIC WORKS DIRECTOR. SO WHEN I TOOK A LOOK AT OUR ORGANIZATIONAL STRUCTURE, I FOUND IT WAS A LITTLE BIT I FELT LIKE THIS IS A BETTER ROUTE TO GO. THIS TITLE I'M ASKING FOR IS COMMUNITY DEVELOPMENT MANAGER. I'M NOT GETTING RID OF THE DIRECTOR POSITION. I'M SIMPLY NOT FILLING IT. I'M ASKING TO CHANGE IT TO A MANAGER POSITION. THIS POSITION WILL SUPERVISE A SMALL TEAM INCLUDING TWO PART-TIME AND ONE FULL-TIME EMPLOYEES AND WILL WORK UNDER THE SUPERVISION OF THE PUBLIC WORKS DIRECTOR WHO HAS BEEN IN THIS POSITION AND IS VERY WELL KNOWLEDGEABLE IN THIS POSITION TO HELP AN APPLICANT BE ABLE TO GROW INTO A DIRECTOR POSITION EVENTUALLY. The creation of this position will allow for future growth. I'm very excited. This is a very practical and sustainable approach in being mindful of the budget and the organizational structure. And if you guys have any questions on this job, I would be happy to answer them.

Questions or comments from the council? I have one question for you. Actually, in our meeting two weeks ago, Councillor Heisler brought up the fact that it is within your purview to go ahead and hire a director, even though we Because we didn't approve this position, he said, well, you could just go ahead and hire a director. So you just stated you're keeping the director position. What is to prevent you from going ahead and hiring a director?

I could hire a director position. I am trying to be just fiscally responsible, bringing this in as a manager position. I have a great applicant that fits this position well. However, I would like to be able to offer this applicant a position, but be able to come in and learn how municipalities work and grow into that executive level position.

And is this not what some have been critical of in the different departments in the past year where a position was created for a person rather than a position created

for the future and for the good of the community? So is this different than that? I don't know. I guess I don't understand about who was critical of that. But I have talked to all of our staff and all of the directors. I've got buy-in on this. I've added two manager levels into the job structure. And one of those that you guys approved last week was the operations manager. This allows more growth opportunities within our organization. I think that having that opportunity for our employees made them very excited and I Wholeheartedly am excited about this.

I think this is the right way to go So correct me if I'm wrong, but last time we approved the salary range for the operations manager

We did.

And so the operations vendor was already in there, so that wasn't an additional position.

Right. So just adding another manager position so that we have that middle management that gives our employees places to grow before they go into a director position. Most of the employees we have here that are directors now have started in a lower level and moved their way up.

Thank you. Any other questions or comments?

I have a question.

Oh, yes. Thank you.

So when that person graduates to the director position, would you maintain that managerial position? No, I wouldn't.

I would not fill that one. They would just move up to a director position.

Is that something that we need to, as a council, close? Or is that just something that you do?

No, we don't close it. We leave it there.

We just don't fill it. However, it is within the manager's purview to fill both positions, technically, unless the budget doesn't allow it.

I WAS JUST GOING TO SAY THAT SHE'S SPECIFICALLY LIMITED BY THE BUDGET AND WHAT THE BUDGET ALLOWS HER TO HIRE. SO HIRING A MANAGER AND A DIRECTOR IS NOT A REASONABLE POSSIBILITY IN THE BUDGET.

WE'RE SIMPLY NOT BIG ENOUGH. YEAH. OKAY.

OTHER DISCUSSION?

ONE OTHER QUESTION.

YES, COUNCILOR PHILLIPS.

MAYOR, COULDN'T THE COUNCIL ALSO limit the filling of a director position by voting in by the council a freeze on a certain director position due to budgetary constraints?

I think the budget in and of itself.

The budget set. In this budget that we talked about earlier, I put in the amount for a director, but not for a director and a manager. So there's no way I could hire both of those. So it's either a director position or a manager position. This is going to save about $10,000.

So I don't think the council needs to take action is what I was going to say, because it is constrained by the budget, the approved budget.

Thank you.

And thank you. You're welcome. I do have a question, comment, whatever. So I mean, I think in the past, the management has, outside of the budget, hired positions. So they were acting incorrectly. I guess I'm just kind of curious, like what controls do we have to see that happen? I mean, we just have to stay alert and watch, right? I mean, is that essentially, like, let's just say you said we're gonna hire, we've got them both, we're gonna hire them. Because I think the budget's going to come. I don't know what justification you would have.

We're going to see that in the monthly report that's presented to you guys by the James Vincent group, that we're staying on budget in that particular line item for that department. You would know if I was going over budget, you would be able to ask those questions and know that we have too many positions in there.

Great.

So I will also state, though, that we had those positions added in other departments in the past, but they did not go over budget because of the way the budget was

Yeah. Ours is pretty tight this next coming year.

Anyway, I guess that was my concern, that we still continue to have both of them. Anyway, questions, comments, and a motion?

I make a motion.

Councilor Heiser?

I move to approve the community development manager job description and establish a starting salary for the position as presented by staff.

I'll second.

Thank you. We have a motion and a second for the discussion. All those in favor, please stand by by raising your hand. All those opposed? Thank you, motion carries six to one. We're gonna move on then to item D5, which is the Town Manager's Monthly Report. Christy. Good evening, Mayor and Council.

I'm gonna wait till that report pops up on the screen. There it is. This is gonna be the lighter portion of the night. This is the fun part. This is where I get to brag about our staff and what they've been doing. And always my favorite meeting. going to start with the town manager so i've completed updates to the purchasing and cash handling policies and procedures manual and i'm i've prepared a department i've actually finished preparing it a department level purchasing and fiscal responsibility training i will be scheduling meetings with every department and going over a seven page uh kind of user friendly purchasing policy for all of our employees is just so that we're encouraging all employees to be involved understanding our budget and our purchasing policies and why it's so important that we follow those right now we're doing some recruitment and staffing and all of the positions were listed into the budget so we're not going to be adding anything that's not in our budget but we're continuing to rebuild and strengthen our department operations under new leadership so we have posted the animal control officer position. We had three applicants. That position is now closed and we are actually going to start interviewing for that position. It does take about a month to onboard that position just because there's background. They work under Ado Police Services. So we're hoping that that position will be able to start with the beginning of our new fiscal year on July 1st. COMMUNITY DEVELOPMENT WAS ANOTHER BIG POSITION THAT I NEEDED TO GET FILLED, SO THANK YOU FOR APPROVING THAT POSITION TONIGHT. I'M EXCITED TO GET ANOTHER EMPLOYEE INTO THE TOWN. BUILDING OFFICIAL, I DID POST THAT THIS WEEK. I HAVE A FEW APPLICANTS ALREADY, AND I'M GOING TO, I THINK I LEFT THAT OPEN UNTIL NEXT MONTH, NOT NEXT MONDAY, THE FOLLOWING MONDAY. AND WHEN WE HAVE THOSE APPLICANTS, MOST OF THEM HAVE BEEN INTERNAL. ACTUALLY, WE ONLY POSTED THAT INTERNALLY, BECAUSE WE HAVE LOTS OF TALENT INSIDE OF THE TOWN. So as soon as that closes, we'll be interviewing those employees. That's a tongue twister. Also with this, David Halverson, our street supervisor, moved on today. This was his last day. He got a job at Unisource. We're going to really miss him. But we did post the street supervisor job internally, and we will be interviewing for that in the upcoming weeks as well. FOR REGIONAL AND COMMUNITY ENGAGEMENT, I JUST WANTED TO ENCOURAGE EVERYBODY, COFFEE WITH COUNCIL. THE NEXT ONE IS GOING TO BE HELD JUNE 9TH AT THE DEPOT COFFEE SHOP. THAT'S LOCATED ON JACKSON LANE BEHIND ARIZONA WATER, RIGHT NEXT TO LAKESIDE POST OFFICE. WE APPRECIATE MIKE LETTING US USE HIS FACILITY, BUT HE'S GETTING SO BUSY, HE ASKED IF WE COULD PAUSE for a couple months but we felt it was really important because we we do have a lot of community coming to those and asking questions so instead of pausing we're going to just move it to a different location for right now The Chamber of Commerce meeting, Meet the Candidates, was a successful event that was held here at Town Hall, and we appreciate them being so professional and running that meeting. The town recently had a meet and greet with the Sholo Pinetop Woodland Irrigation Company Board. It was a great opportunity to meet with them and understand the irrigation district, or sorry, it's an irrigation company, a little bit better, and we're looking forward to continuing our partnership with them. The finance department continued to develop and balance and working on the balancing of the 26-27 budget. They did a lot of preparation for the audit, which we heard tonight. And then we have Wendy Watson, who's sitting in the back row back there, who joins the finance department, and they're going to start training her to assist with and keep us on track and up to date. and community services. That's Priscilla. She's continued building partnerships with community organizations and local businesses. She's participated in meetings with the Rotary Club and the Chamber of Commerce. Priscilla also successfully, very successfully, coordinated the police department ribbon-cutting and building dedication event. We had a really good turnout for that, and we really appreciate all of our community partners that showed up to support our police and our police department and for all they do for the community. The library hosted a really successful May the Fourth Be With You event. It was actually really cool. I might have some pictures in here. I don't remember. But I went over and they were making lightsabers and had all kinds of fun costumes and stuff for the kids. They're always continually providing educational and recreational programs for people of all ages. And they also have assisted the town in some of our departments through some staffing shortages. And I'm happy to report that they are back to their normal hours because we're finally filling some seats. Police department, thank you for letting us do a ribbon cutting and a police dedication for you guys and letting us invade your facility. It turned out really nice. We also recognize the police officers in our department at the police week last meeting. So that was two weeks ago. And they also did hand out some awards for Officer of the Year and several other awards. We welcomed Katie Szyminski as the new Police Department Executive Secretary. And then we are continuing recruitment for the, well, we're not anymore. It's closed. We're going to be interviewing for the, I wrote this a week ago. A lot of things change in a week. But we are going to be interviewing for the Animal Control Police Services Officer. Here's a few stats for you guys for the police department. These are from March. Total incidences was 666. Calls for service, 312. Officer-initiated incidents, 354. They performed 188 traffic stops. They did 93 business and building checks. There was five accidents. Three agency assists, two crimes, one death, 12 felonies, and one incident. 43 arrests, six of those were felony, and 36 were misdemeanors. 61 citations were given out. 24 of those were personal criminal. 24 of those were, that's an even number, moving vehicle, and 13 were unclassified. Here's a picture of the police department ribbon-cutting and building dedication. we get pictures i was like sharing those with a good day work department and at least it continues the management of agendas meeting minutes election postings and public notices right now we're preparing uh... for important election related activities regarding home rule i wanted to share that we will have to public hearings in the month of june for home rule those dates will be june fourth and june eighteenth and those are going to BE HELD DURING OUR REGULAR COUNCIL MEETINGS I JUST WANTED TO REMIND EVERYBODY THAT THE HOME RULE WILL NOT BE ON THE BALLOT DURING THE PRIMARY ELECTION IT WILL BE ON THE BALLOT FOR THE GENERAL ELECTION BUT WE ARE REQUIRED BY THE STATE TO HAVE OUR PUBLIC HEARINGS SO FAR IN ADVANCE OF THAT ELECTION SO THAT'S WHY WE'RE DOING THOSE MEETINGS IN JUNE The community development department continues permanent processing inspections and development of support services. The community development department, Rudy, our code enforcement officer, removed 22 illegally posted signs throughout town. He had mailed four code compliance letters and was able to resolve two noncompliance issues. And that's actually really good because it's really hard to get compliance on some of those code enforcement issues. So we're proud of the work Rudy does there. We issued two new residential home permits, conducted numerous building inspections, and we have advertised for a building official position. Marketing and communication. So marketing is increased visitation. We have increased visitation at the Town Hall Visitor Center, I think partly due to our nice weather we have up here. We have a lot of people coming from Tucson and Phoenix. Website updates for elections and community campaigns, including election and fireways, and then prepping for home rule. our social outreach our social reach has been 390 000 visits to tourism views 73 000 town views and annie has performed six broadcasts live those are council meetings planning and zoning and the vfw flag ceremony she has sent out two talk of the towns and i just wanted to let everybody know how awesome talk of the town is and if you are not receiving talk of the town it's really easy to sign up you can go to the pine top lakeside az.gov website Click on Talk of the Town and click on to subscribe. There's really great information in there. So if you want to get the latest and greatest, go subscribe to that. Ryan in Information Technology is working on transition to one point cloud-based system and evaluating Fluent Stream phone systems. That's Frank. Frank is the new public works director. He was officially named last month. I did point that out at the last town council meeting. Frank is actually working really hard on rebuilding and strengthening department operations within the public works department over there. Streets crew has been continuing road maintenance and roadway improvements. I don't know how many of you are up at 4 o'clock in the morning, but they've been out there at 4 o'clock in the morning working on the 260. So Highway 260, we keep getting comments on how dirty our town looks. Now that is an ADOT maintained road. We spoke with ADOT. They weren't able to get here in the near future to clean our roads, so our guys went out there with the sweeper we had, and it just wasn't cutting it. I think they made it maybe a mile, and correct me if I'm wrong, Frank, they filled up an entire semi of dirt and debris, and it just wasn't working. So Ryan Church got on the phone and found a company that will come up and do the entire portion of Pinetop Lakeside, both sides of the street and the center for $2,800. They're going to be here next Tuesday. We're hoping they'll have it done in one day. They'll do it at night. But they've been out there at night, weed eating, sweeping the streets. And actually, Frank just sent me a really good picture of them doing the sidewalks today. I'm sorry I don't have it up. I'll try to put it up at the next meeting for you. Not only that, they're also working on potholes and other things that are needing to be completed with our streets to keep our streets safe for our residents. We partnered with Nav Apache Electric to resolve an electrical issue that was at Top of the Woods subdivision, and with that being completed, the guys were able to install the riprap at the bottom of the Top of the Woods project, and I'm very happy to report that the Top of the Woods project is complete. That one's been a big one. So just to put that on your radar, next week Street Sweeping is going to be a company. But if you see our guys out there working between 4 and 8 in the morning, give them a friendly hug, give them a wave, tell them thank you. Parks Department's always working hard to keep our athletic fields looking top-notch. They do a great job. We have the best grass on the mountain. Thank you, Frank and crew. They also completed emergency irrigation line repairs at Mountain Meadow over the weekend last week. And the fields went for about three days without water just because they needed the right size pipe to get, and there was nobody open on the weekend that had that size pipe. But the fields look great, and we've got water back on the field. So we appreciate them jumping on that on a weekend and getting that fixed. The fleet division obtained quotes for the upcoming street sweeping. I just mentioned that. Ryan did a really good job with that. They've successfully repaired and returned the roll-off truck to operational status, kind of. Right now they're doing some operational testing. They've had to run into a few small issues, but they are working on getting those resolved. But it does start. It does run. But there's a few little things they've got to fix on it. If you guys haven't noticed, driving around town, all of our town vehicles are now logoed. They all say for official use. That is a state statute requirement for cities and towns to have. Ryan Church led that and got all of our town vehicles decaled. The facilities division stayed really busy landscaping improvements over at the police department in time for the ribbon cutting. It looks really good. They also constructed a metal storage structure at the police department that houses the side-by-side vehicle. And we also welcomed a new facilities crew member over at Public Works. His name is Troy, and we're glad to have the extra help. There on the right is the guys doing rock over at the police department. And then in the middle, that's David and Ryan with the help of, help me with his name. Mark Sterling, thank you, from High Five Designs, teaching them how to install that decal on the building in time for our ribbon cutting. And then here's the crews working in the shop, getting all of the weed eaters and everything ready. That was in the preparation that they did for working on our roads. The collection center, this one's really exciting. So the collection center received grant funding from the recycling partnership. They purchased five new roll-off containers. I'm going to just go here so you guys can see the pictures. Five new roll-off containers, installed updated recycling and collection center signage, expanded public education efforts related to recycling, and then grant funding also paid off the remaining balance of the town's roll-off truck, which was approximately $30,000. So I don't have a picture of the collection center and some of the staff over there. This is the certificate that they got. It's probably being displayed in the hallway over at Public Works. I think they hang it on the wall the same day. They're really proud of that. The Public Works Collection Center is a great asset to the community, and I think that thank you for the job you guys did over there. It looks great. Also on the collection center, I have some updated numbers for you on the green waste to date. They've hauled 176 tons of green waste, which is 44 loads. And the total cost of that, because Eric did a really good job negotiating a price, $3,300. And we only have one week left. So far less than we paid last year. Less wear and tear on our equipment. And I don't know how that compares to the loads we had last year, but that's a lot of green waste. So we appreciate the work that they've done on that. Just to remind everybody that goes through to the end of this month. So if you have any green waste, excluding stumps, please take them by our collection center and dump them there in an effort to keep our community safe and fire-washed. I went a little bit away from employee of the month this month. There's so many employees that are doing such great things at the town. I didn't want to just recognize one. So I've talked to the directors and they've all agreed that they always have somebody that they want to nominate for something that they've done great. So this is how I'm going to do this from now on, and I just think it's going to, we have so many employees, and I want to be able to recognize all of them. So Frank Young recognized Ben Mendez, who for the outstanding job he has done maintaining landscape throughout the town. Ben is a very hard worker, takes pride in his work, and consistently maintains a positive attitude. Frank Young recognized Alana Jackson for the additional support and extra work she has provided to the Community Development Department. Her willingness to step up and assist where needed is greatly appreciated. I would also like to recognize Ryan Church for the effort and initiative he put forth in securing the street sweeper for the White Mountain Boulevard. I am incredibly thankful and proud of our employees. I continue to see the tremendous amount of work that they do every single day and the pride they take in it. I think we have a great team. And with that, I'm going to go to this next one and just give a quick staff recognition to Luis Gonzalez on the left. He's in our facilities. And Katie Siminski, the new police department executive secretary. They both recently did some continuing education and graduated from the Fire Science Academy. So if you see them, offer them a congratulations and a kudos. Some community information I just want to share real quick. Town Council meetings are held on the first and third Thursdays of each month. Planning and zoning meetings are held on the second and fourth Thursdays of each month. Agendas and public notices are available on town websites. At Town Hall, there's a kiosk out front. at the Pinetop and Lakeside post offices. The town hall remains open Monday through Friday from 8 to 5. Residents are encouraged to stop by, meet us, talk to us, ask us questions, or just simply say hi. I want to just do a quick reminder that we have two seats open for planning and zoning. That post will go in the newspaper on June 2nd. The term of those two seats will end July 27th, 2029, and employees will be interviewed by the town council on July 16th for approval. If anyone's interested, please submit applications by 11 a.m. on Friday, July 3rd, 2026 to Lisa Mears, our town clerk. Her information's down there at the bottom. If you don't have time to write that down, give us a call and we'll get it for you. just a few i'm almost done i promise a few flyers on the memorial day the vfw will be having a flag ceremony right here at town hall at our vfw um memorial right outside here and i believe it's at 11 o'clock yes yeah also town the town hall buildings or all town buildings will be closed except for the police officers will be working everybody on memorial day And then also just a reminder, if anybody's looking for something fun to do, the Sun Valley Carnival is in town. I believe this is the last weekend. And with that, I thank everybody for coming and listening to my report tonight. Does anyone have any questions?

All right. Thank you, Christy. That was a lot. Okay, we have no further business before us tonight, so this meeting is adjourned. Thank you.