County Commission - Regular Meeting

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Good morning, everyone. I'd like to call our first committee to order. Committee number two, Public Works. Madam Parliamentarian, would you please read our first item?

Yes, ma'am. Good morning. Item 1 is a resolution approving a contract and the issuance of an emergency purchase order to G&J Contractors LLC totaling $173,920 for the restoration of the air conditioning handling unit and the necessary replacement parts located at the Walter L. Bailey Jr. Criminal Justice Center, 201 Poplar Avenue, Memphis, Tennessee, 38103. This item requires the appropriation and expenditure of FY2026 general funds in an amount not to exceed $173,920. Sponsored by Commissioner McWright.

Thank you. This item has been moved by Commissioner Wright, seconded by myself. If you would give your name and title, you have the floor.

Anthony Wright, Shelby County Engineering. On behalf of Sports Services, this was a weather-related failure of a piece of HVAC equipment during the winter, and it was a mission-critical error, and they affected an emergency repair. The department recommends approval and thanks you for your consideration and sponsorship.

All right. Seeing no commissioners in the queue, let's bring this item to a vote, please. If all commissioners have voted, let's tally the votes.

We have aye votes from Commissioners Mills and Wright. We have two aye votes.

Thank you. That item will come to us Monday with a favorable recommendation. Madam Parliamentarian, would you please read item number two?

Item 2 is a resolution approving the agreement between Shelby County and Oaklawn Estates LLC to secure the public improvements to Oaklawn Estates Plan Development Area 1, Phase 2, PD 04-315CC and authorizing the recording of the plat when bonding procedures have been fulfilled. This item does not require expenditure of county operating funds. Sponsored by Commissioner David C. Bradford, Jr.

Thank you. That item has been moved by Commissioner Wright and seconded by myself. If you would give your name and title, you have the floor, sir.

Yes, ma'am. Good morning. My name is Ahmad Dematy, senior engineer with Roads and Bridges Engineering. This development is for Oakland State PD Phase 2. We request for a public improvement contract with Shelby County. The developer will build public improvements for this phase, including urban roads and stone drainage. Sanitizer for this phase is going to be maintained by the City of Memphis. There is no The developer paid for all the work, and then they also paid the top surface request approval. Thank you.

Thank you. Seeing no commissioners in the queue, let's bring this item to a vote.

We have aye votes from Commissioners Wright and Mills.

We have two aye votes. Thank you. That item will come to us Monday with a favorable recommendation. Madam Parliamentarian, would you please read item number three?

Item three is a resolution approving the agreement between Shelby County and Oklahoma State's LLC to secure the public improvements to Oklahoma State's Plan Development Area A, Phase 3, PD 04-315CC, and authorizing the recording of the plat when bonding procedures have been fulfilled. This item does not require expenditure of county operating funds. Sponsored by Commissioner David C. Bradford, Jr.

Thank you. This item has been moved by Commissioner Wright, seconded by myself. Name and title again. You have the floor, sir.

Yes, ma'am. Good morning again. My name is Ahmad Namati of Sheva County Road and Bridges Engineering. We request for approval of this contract with the Sheva County Government and Oakland State LLC. Sanitary sewer will be provided by City of Memphis. All the work will be inspected by engineering's office. The developer pay for this work and no county general funds are required. The developer will place the surface asphalt. Also, I neglected to say I have with me Mr. Josh Whitehead in case if any question arises. Thank you.

Okay, thank you. And just to make sure the previous one was phase two and this is phase three, the next phase. Yes, ma'am. Okay, all right. Thank you very much. Seeing no commissioners in the queue, let's bring this item to a vote, please.

We have aye votes from Commissioners Wright and Mills. We have two aye votes.

Thank you. That item will come to us Monday with a favorable recommendation, and that concludes the committee number two, Public Works. Our next committee, Land Use Planning, Transportation and Codes, will begin in about four minutes at 845. It is 8.45. I'd like to call to order Committee No. 5, Land Use Planning, Transportation, and Codes. Madam Parliamentarian, would you please read our first item?

Item 1 is an ordinance first reading. Ordinance amending the Memphis and Shelby County Unified Development Code as adopted by Shelby County on August 9, 2010, to approve a zoning district change pursuant to Chapter 9.5 for property in unincorporated Shelby County, located at the south of the intersection of Houston Levee Road and North Pixel Road, being case number Z2026-003CO, sponsored by Commissioner David C. Bradford, Jr. This item was deferred in June 10, 2026, committee meeting.

Thank you. This item has been moved by Commissioner Sugarman and seconded by Commissioner Wright. Director Ragsdale, name and title, you have the floor, please.

Thank you, Commissioner Mills. Brett Ragsdale with DPD. We have talked to the applicant, and I believe they have talked with you, Commissioner Mills, and they have agreed to convert this case from a rezoning to a planned development. And so if the commission agrees with that this morning, then we would remand that back to the Land Use Control Board and convert that to a PD, and then it would go through that process again and then come before this body as a planned development.

I am very glad to hear that. I will move to refer this back to the Land Use Control Board meeting, and we will see it in August. They'll go to the August land use?

That's correct, yes. We can get on the agenda for the August meeting since it's being remanded.

Okay. And we do have one commissioner in the queue, Commissioner Sugarman.

Thank you. And I have a question real quickly. Whose district is this?

This is Commissioner Miller's district.

Okay, thank you. And also, what is the reasoning for going through changing from zoning, I'm just curious, zoning district to planned development? What's the difference?

Yes. So a rezoning, a straight rezoning does not allow you to condition it. And so plan developments do allow you to condition it. So I think that's the idea. With the straight rezoning, it would just be a new zoning district and anything in that district would be allowed. With the plan development, you can make conditions that restrict certain things.

Thank you so much.

Okay, with no objection, we will... Vice Chair Mills, is there any action to be taken as it pertains to our agenda in terms of, I think I heard them say that you would like it to appear on an August, this item, or will it be a new item when it comes? How are we disposing of this?

I think, does it need to be withdrawn? Withdrawn. I don't know what our language is. Right.

So I think we might withdraw it and then it come back as a new item unless you want because we have to take some action for it to reappear on this agenda.

Correct. Yes, sir. So it would be remanded if the committee were to vote on it today to remand it back to Land Use Control Board, then it would go to the Land Use Control Board and be heard there and then it would come back as a new item.

So she did take the action to remand it back. Yes. Second. But as it pertains to our agenda, I feel like we...

Okay. It looks like someone here might know. He's got his hand up. We'd recognize you. Thank you.

Thank you. Dedrick Brittnam. I represent the applicant in this case. What we'd like to do is to have this case go to the Land Use Control Board in August And then from the Land Use Control Board, it would come back to this committee the Wednesday before the 24th of August. And I believe that is the 20th of August for committee. And then it would be heard at the full county commission on the 24th of August. That would be the last county commission meeting of your term.

So we have a committee meeting on August 19th. That's fine. It could be referred to that committee? No.

Yes. So the process would be if Commissioner Mills, I believe, made the motion. I think I heard a second. If it was agreed to today by the committee to remand it back to the Land Use Control Board, then it would go back to the August Land Use Control Board meeting. I believe it's August 13th. And then it would, if it is approved or denied, whatever the Land Use Control Board action is, it would come back then to the full commission with that Land Use Control Board recommendation.

Okay, so I guess we'll just leave it at that. I'll take you at your word. I haven't seen that happen that way before, but okay.

Yes.

That works. Because it'll be a different item. It won't appear as this item.

That's correct. It will be a PD number.

Okay, so we need to withdraw the rezoning resolution?

No, remand it back. Oh, just remand it.

Okay, we're remanding it back to the Land Use Control Board meeting. We'll see it at the last meeting in August.

And I second it.

Okay. And it's been seconded by Commissioner Sugarman. No objection? Seeing none, so moved. Thank you. Commentary inquiry, please.

Commissioner Brooks, you're recognized. Madam Parliamentarian, help me with the word remand.

That's a good one. Let me look that up. But I think we can look to Director Ragsdale while I look that word up.

Yes, remand means to send it back to the following step or the previous step. And so the Land Use Control Board did act on this. And so it's before you with their recommendation. And this remands it back so it sends it back to them to hear it as a plan development.

Okay, I got all that part. I'm just trying to align remand with a similar word in our rules. So would that be similar to refer?

It would be not really because this refer would be moving it forward. I would say remand is moving it a step backward. So the Landings Control Board acted on it, and then it comes to you for final action.

Okay. And in this case, it's going back. I'm just trying to understand remand since we don't have it in our rules. Oh, yes. Okay, thanks. Yes.

Okay, thank you. Remand generally means to send something back for further action. Okay. Okay. With no objection this is going to go back to the land use control board and just for the record It was not recommended by staff as it is now and it failed at the land use control board So we're going to try for a PUD. I think they're wanting to do So that's what's being remanded.

Okay.

I just conferred with our County Attorney our

Deputy County Attorney, and she agrees, aligned with me, that we have to do something with our agenda. And so what would be appropriate, because that's not really within our purview, so it's being remanded back. But as it pertains to our agenda, we can't just kill or disappear an item. So it would need to be deferred maybe to the committee meeting on the 19th, and then it could be substituted with a new item. Does that work? Okay. That sounds fine. Can we get a motion to defer this item as it appears today? So the action taken internally is that it's going to be remanded back to the Land Use Control Board for further action. We need a commissioner to make a motion to defer this item to Wednesday, October 19th, and then it can be, excuse me, August 19th, and then it can be substituted with the updated item.

Okay.

Yes, ma'am.

I will move to do just that. Second.

Okay.

Okay. Seeing no objection, okay. That item has been moved to August 19th. All right. Madam Parliamentarian, would you please read item number two?

Yes, ma'am. Item 2 is an ordinance first reading. Joint ordinance to amend the Memphis and Shelby County Unified Development Code adopted by the City of Memphis on August 10, 2010 and by Shelby County on August 9, 2010 to establish a procedure for replacing the zoning map being ZTA 2026-002 sponsored by Commissioner David C. Bradford, Jr.

Okay, this item has been moved by Commissioner Sugarman, seconded by Commissioner Wright. Name and title, Director Ragsdale. You have the floor.

Thank you, Madam Chair. Brett Ragsdale with DPD. We are getting a presentation pulled up here. This is a zoning text amendment, and it is related to the presentations we've been giving you on the zoning map and the zoning code update. It is not those items. I know that we're still working with the community on those items to bring before you later. We did discuss this at a previous meeting. This is simply a zoning text a minute to set the process for the replacement of the zoning map. So we're doing an entire replacement of the entire zoning map for Memphis and unincorporated Shelby County. There's currently not a process in place for what public notice would be for that. So what this ZTA does is sets that process. And Mr. Wardrop will go through a brief presentation that gives more detail of that.

Okay, are we ready for the presentation? Looks like we're getting the presentation set up over there.

All right. Good morning, Commissioners Nichols, Water Division of Planning and Development. This is going to be a brief presentation just kind of giving you an idea of what this joint city-county ordinance is before you. Next slide, please. So as we've kind of explained and, you know, been talking about over these years, past several presentations we've been giving to both you and your counterparts at the city. A zoning code has two halves, really, the code text and the code map, right? And we're in the process of updating both of those. We've been conducting public engagement now for almost three years on that. What we're talking about today is an amendment to our current code, so not the new code, the current code, that will clarify the process for replacing that map, as Director Ragsdale said. Next slide, please. we've been clear throughout this process that that's our intent, is to repeal and replace the entirety of the zoning map. City Council passed a resolution in 2023 asking us to do so. It's been more than 70 years since we last did that. And the map has over the... over the course of 70 years, as it obviously would, grown kind of out of alignment with both city and countywide goals. So the other thing to be aware of is that our code text that we're working on and our map that we're doing public engagement on, they were kind of written together and kind of thought of together. And neither one of them can do their job without the other. That being said, in our current code, we have something called a comprehensive rezoning. That does not address replacing the entire map. It's really intended for a much smaller scope. We did one on Lamar Avenue several years ago, for example. It's explicitly limited in that code text for planning districts or planning areas, i.e., not taking the whole map and replacing it wholesale. So what this text amendment will do is clarify the process for what replacing that entire map looks like. Just make sure that both elected bodies are on the same page, that the community has an understanding, that stakeholders of all kinds have kind of an understanding of what exactly is required to replace the entire zoning map, particularly as it relates to public notice. Next slide. So here's what that process would look like if adopted as written. There would be an initiation by resolution by one or both of the elected bodies. At that point after we had that initiation, staff would publish this recommended map and we would mail notice to all property owners within Memphis and unincorporated Shelby County. And that notice would tell you, you are currently zoned X, staff is recommending you be zoned Y. At that point, there will be a language control board public hearing, and it would then move forward to the elected bodies, like any other rezoning. Next slide, please. So to be 100% clear, this amendment would require DPD to mail notice to every property owner within Memphis and unincorporated Shelby County. And it would also not only tell you about your property, but direct you where online you can go and review the map of the entire county. So it kind of does double duty in that regard. Next slide. So just to wrap up, our current UDC doesn't really give you any guidance on what you have to do to replace the entire zoning map. What this will do is make sure everybody that has to have the same understanding has the same understanding of what is required to do so. And of course, approval of this text amendment will allow us to keep doing our work towards affordable, sustainable development. So with that, I'm available for your questions.

Thank you. We have Commissioner Sugarman, you're recognized.

Thank you so much. And so where are we in the process?

Brett Ragsdale, DPD. So with this, we are going to take a little more time in the process. So I know we were trying to bring it forward to the Language Control Board the past few months. And with this decision to actually mail notice to every property owner, that's going to take us a little time, which is okay. You know, we're using that time to continue working, you know, with constituents and looking at some of the comments. And so this will take, you know, we're working on trying to get that procured right now and see what it, you know, because it's a pretty big endeavor to mail notice to every single property owner, but we're working on that now. So... you know, we're, we're hopeful to maybe get this to the September lanes control board, but you know, again, we're, we're going to just take the time that we, that we need to get this in place, get the mail notice out and get the final drafts available.

And how detailed is this going to be? Because as you know, in my district, there's certain items they don't want. And also there's concerns about all the data, but, um, companies are popping up all over. And so does it also address environmental issues as well, as far as zoning goes?

So this particular ZTA is regarding the map. The zoning text does deal with uses. And one of the things that we do, we try to make sure that zoning does what zoning is supposed to do. And it deals with the uses that are in a particular district. And then, you know, as far as environmental concerns, the agencies that deal with that, you know, health department and those agencies deal with those type of issues. But we deal with whether an industrial use is compatible with an adjacent type of use in the zoning aspect of it. So we are looking at some of the uses, gas stations, car washes, and we will be limiting where they currently can go, where they're allowed. We are looking to limit that and really get that more tailored to what we're wanting to see and things that you've talked about in your district as well.

Okay, and then also, are you working with the health department? Because I know when Dr. Taylor was here, she stated that the environmental zoning orders have not been updated since the 1950s.

We are talking with the health department and working with them on what they can do on their side, yes.

Okay. And then the next thing, as you know, we have an election going on. I'm running for reelection. And so I have not had an opportunity to get with my constituents about coming, you know, we talked about this before, coming into the district and having a town hall meeting. In fact, I probably won't have one until after the election, August 6th. Would that be too late then to have, it will not?

No, it would not. We can do that.

All right. Thank you.

Okay. Thank you, Commissioner Sugarman. Commissioner Brooks.

Good morning, Mr. Ragsdale. Just a couple of questions so that I can understand. This update, so this update, is it limited to current uses or will you include changes?

So the what's before you today update is a very limited scope, and all it does is say that we are going to mail notice to every single property owner in Memphis and Shelby County. So that's what's before you today. As far as the zoning code, that will be coming later. Yes, that does deal with specific uses, and it's the entire zoning text, so it will deal with what uses are allowed in what district.

Okay, so then I'll be clear. and will not give out misinformation. What you're doing now, you're going to mail, and I just congratulate you on mailing out notices to all of the citizens, but you're mailing out notices regarding an update to an existing map. Correct. Okay. So why are we doing this mail-out? I just don't understand the motivation and what this map is going to show that we don't know.

So with the zoning text update that we're doing, the zoning code, We're also replacing the entire map, the zoning map of Memphis and Shelby County. So some districts will not be changing. Some areas will essentially be staying the same. Some will be changing from a district of lower intensity to potentially higher, but mostly from higher intensity to lower. And so this notice sends a notice to every single property owner that says we are changing the map for one thing, just so that they know that we're doing this. and it will have their property and what we are currently proposing, so what it's zoned currently and what it's proposed, some will just be, sorry. Or proposed changes. Correct.

Okay, so let me ask you this. Have we had public meetings on these proposed changes that refer specifically to this map? Now, public meetings outside of city council and county commission in the various communities.

Yes, Commissioner Brooks, we have for almost three years. Most of it was in the comprehensive plan, the Memphis 3.0, and we've had public engagement for almost three years now on that, and we're continuing to do that in smaller groups as we move forward.

So there is a public expectation regarding this map, right? Correct. Okay. All right. Thank you.

Thank you, Commissioner Brooks. Thank you, Director Ragsdale and your team. Good job. Great. Thank you. With the community. With seeing no other commissioners in the queue, let's bring this item to a vote, please.

We have aye votes from Commissioners Caswell, Sugarman, Mills, Wright, and Brooks.

We have five aye votes. Thank you. That item will come to us Monday with a favorable recommendation. Madam Parliamentarian, would you please read item number three?

Item 3 is a resolution pursuant to Chapter 9.6 of the Unified Development Code of the County of Shelby and the City of Memphis, Tennessee, granting a planned development for land located at 0 Humphrey Road, approximately 500 feet from the Humphrey and North Houston Levee Road intersection, known as Case Number PD-2026-003, sponsored by Commissioner Davidson Bradford, Jr.

Thank you. This item has been moved by Commissioner Sugarman and seconded by myself. Director Agostino, you have the floor.

Thank you, Madam Chair. Brett Ragsdale with DPD. The applicant on this case actually informed us that they were not going to be able to make committee meeting today, and they asked if it could be deferred until actually September because they didn't think they could make the meetings in August. So you may defer it to an August meeting, and we can confirm with them, but we just found this out yesterday. So I would leave it up to the commission if you would want to just... There's a night, and then we have 23rd in September.

Okay. Madam Parliamentarian, would you just say the dates that you stated that we could move it to, and I'll move to do so.

Yes, ma'am. We have committee dates currently. We have Wednesday, September 9th, and we have Wednesday, September 23rd.

Do you have a preference, Director X, still?

I would recommend from our conversations, it was just a brief email, but the 23rd is probably the safest. And then if they are not available then, then we could decide to defer it further if that would be okay with the body.

I have information. Commissioner Sugarman? Thank you. And so which commissioner's district is this in?

This is in Commissioner Bradford's. And it's right on the line with Commissioner Mills, I believe.

Okay. Yes.

Thank you. Yes.

September 23rd sounds good. I move. Second.

All right. August 23rd.

Oh, I thought you said September.

Were we saying September? Oh, I apologize. Yes. Okay. Yes.

September 23rd? Yes. Moved by myself, seconded by Commissioner Sugarman. No objection. All right. Commissioner will see this September 23rd. Madam Parliamentarian, would you please read item number four?

Item 4 is a resolution pursuant to Chapter 9.6 of the Unified Development Code of the County of Shelby in the City of Memphis, Tennessee, granting a planned development for land located at 3723 Thomas Street, known as case number PD2026-008CO, sponsored by Commissioner David C. Bradford, Jr.

Thank you. This item has been moved by Commissioner Sugarman and seconded by Commissioner Caswell. Name and title, you have the floor, sir.

Jeffrey Penzis, Division of Planning and Development. This is a request to allow a manufactured home park in District 1. And I have Chloe Christian here, who will be presenting the case.

Good morning. Just getting the presentation ready, so one second. i forgot to say my name okay thank you i'm just so nervous up there oh my gosh Good morning, Chloe Christian with DPD. I'll be presenting this case. It's case number PD-2026-008. This is a plan development request to allow a manufactured home park. This is located in Commission District 1 at 3723 Thomas Street. Josh Whitehead is here on behalf of the applicant today. As I mentioned, this property is located in District 1 along Thomas Street. It takes up two separate parcels, as you can see on the vicinity map. And we did mail out 109 public notices for this case. Next slide, please. The property is actually split-zoned, conservation, agriculture, and residential single-family six, which I will note both allow manufactured homes by right. However, manufactured home parks are not allowed by right in these districts, which is why the plan development is being requested. And the property is currently vacant. However, there are some single-family uses in the vicinity and some institutional and multifamily uses as well. Next slide. Here are some photos of the subject property. It is currently vacant, as you can see. However, I will note on the opposite side of Thomas Street, there is a similar manufactured home park development that is operated by the same applicant for this case that is referred to as Memphis Blues Home Park. So this project will be fairly similar to what's already ongoing on the opposite side of the same street. Next slide, please. Here's the concept plan that's presented by the applicant. As you can see, there would be some common open spaces. There's pickleball courts, proposed walking trails, things of that nature, a detention pond area as well. And the minimum lot size for these is set to be 4,000 square feet. Next slide, please. So in conclusion, as I mentioned, the applicant, UHM Memphis, also owns a similar development on the opposite side of the street known as Memphis Blues. So they're proposing Memphis Jazz for something fairly similar, manufactured home park plan development. And the building regulations for the PD are met. They are consistent with the provisions of the UDC. For example, there is a class 3 landscape buffer proposed along the boundaries of the development including the boundaries that border residential lots. Existing tree coverage along Thomas Street is proposed to be maintained. There is one access point along Thomas Street and then there is an emergency access point along Millington Road. And we have found that this project will not have a substantial or undue effect upon adjacent property or the care of the neighborhood or matters affecting the public health, safety, and general welfare. Next slide, please. And so with that, DPD and LUCB have both recommended approval with outline plan conditions for this request, and they can be found on pages 14 through 17 of the staff report. And that is my presentation, but I'm happy to answer any questions. Thank you.

Thank you. And was there any opposition to this?

So yes, there was. We did receive a person, Lois Bailey attended the meeting and spoke in opposition of the case at the Land Use Control Board hearing. And that was the opposition that we received for this.

Okay. Was there a conversation to kind of come to an agreement or ease their mind? I'll defer to the applicant about that.

Josh Whitehead, 275 Jefferson. I'm here representing the applicant, UMH. We did speak with Ms. Bailey after the meeting on ways to ameliorate her concerns, but I believe Her desire was that this property remain undeveloped, and so she was not, in my mind, willing to agree on any kind of condition changes. And of course, that's the advantage of a planned development, as we've discussed this morning, are the conditions.

Okay, thank you. We have Commissioner Sugarman in the queue.

Thank you. And so I'm just curious, were there any community meetings? And if so, was there any opposition at the committee meetings? How many people attended, et cetera?

Again, Josh White at 275 Jefferson. As a requirement for planned developments, we did hold a neighborhood meeting. We actually held it at the clubhouse of the sister community across the street, Memphis Blues. We had four neighboring property owners attend. I think there was the same mailing list is used for these meetings as that meeting. So I guess the 130... mailers sent out and we did get four requests. There was on different levels of enthusiasm one person was in favor of it. I guess that Ms. Bailey was opposed and there's been dispute as to the other two, whether they were agnostic or opposed. I felt one way and I think they feel the other way, but there were four attendees.

Okay, so there are four people in attendance and only one community meeting?

Yes, ma'am.

Okay, thank you.

Chloe Christian, DPD. I'll just say I have the sign-in sheet of the meeting on the screen right now for you to reference. Thank you. All right. Thank you. Commissioner Brooks, you're recognized.

Thank you. I'm trying to pull up the sign-in sheet. So you had, you sent out 109 notices. Yes.

Yes, ma'am. Okay. Okay.

So did any of them come back as undeliverable or some other postage?

I don't believe I received any returned postcards.

Okay.

Okay. So these are the people who attended one, two, three, four. And what did you say the opposition, the resident, what was her opposition to this project?

May I? Josh Whitehead, 275 Jefferson. The concerns were centered in my mind largely around the flooding event that occurred in 2011. This property as well as the Memphis Blues property across the street were catastrophically damaged during that flood event. Since that time, two things have happened with the project that has been built on the east side of Thomas. We went through the T-deck process of changing the elevation to remove those home sites out of the building, excuse me, the flood zone, number one, and number two, through the resilience grant that I think y'all have had many presentations on. Todd's Creek, which is immediately adjacent to this property, as well as Lusahatchee have been at Rodney Baber Park and adjacent parks. More, I guess, catchment basins have been built to ameliorate the flooding situations in the area. So we plan on raising the land here through the, excuse me, I said TDEC. It's through FEMA, changing the flood zone, A, and then B, we believe since 2011 there have been no further floods quite to the degree of the 2011 event.

And that was primarily her objection?

Other than she would prefer it to remain a forest.

That was a part of her objection. Yes, ma'am. Did you explain that to her?

Yes, and... I have some colleagues with me from the Reeves firm, our engineers. We both left that meeting feeling like those concerns were adequately addressed. And when she, Ms. Bailey, the individual we're talking about, she did come to the Land Use Control Board. But from memory, the flooding issue was not really articulated as much at the Land Use Control Board. Or was it still a concern? It was still a concern.

Okay. Thank you. Thank you, Commissioner Brooks.

Commissioner Caswell. Thank you. Thank you. And I know that some years ago I participated in a number of the meetings for the Memphis Blues Project and the concerns that was there. But looking at that project now, a lot of those concerns were addressed when you talk about the trees, the beautification. It's real nice, I think, a project, the Blues Project is. As you said something about the flooding piece, my only concern would be there, and even with the people who are looking to develop it, I know that was the 100-year flood they usually talk about. That may not happen for a while, but to that point, even in this development, could some type of redevelopment recession pond, what have you, be intentionally done so the water flow that way instead of flow into like it did because it was a bad situation that happened with that flood. So is that kind of some ideals to mitigate some of that?

Again, Josh White at 275 Jefferson. Yes, sir. The site plan, which was one of the images that Ms. Christian projected on the screen, It reflects an over 25% non-buildable area in the northwest corner of our site. That will allow a lot of area to collect the rainwater, but even more than that, we are building another detention pond to collect the water that is built up on site, as well as the water that comes from our south.

Okay. So, and when we talk about, we know we have a great need for more housing and affordable houses. What is there, what's the prices of these homes? Or even if they're going to be rented or home ownership?

Commissioner, Josh Whitehead, 275 Jefferson. Commissioner Caswell, this is actually, the way UMH has designed these communities, it's kind of a stepping stone between rental and conventional homeownership. you can purchase these properties. In fact, they're all for sale. For a three to four bedroom, the prices are expected to be between $150,000 and $190,000. Now, you pay a management fee because there's a lot of common amenities, like an HOA fee. It's going to be a gated community with private drives and a clubhouse and a splash pad. The catchment basin, for instance, needs to be maintained all privately. But The advantage of owning your home, and you can move it, right? If you want to move this manufactured home to another site, you can. You actually have a second choice. You can sell the property to another home buyer and at least have some equity built in versus had you been renting, there is no equity when you exit.

Yeah. Okay. Thank you.

Okay, thank you. Commissioner Sugarman, you're back in the queue.

Yes, thank you. And so just a few more questions because you said you can move the homes. Are they like trailer homes? And then the other thing is, okay, as far as the homes, you said you could purchase them and they're between $150,000 and $200,000. And so are these single-family homes? Are they duplexes or multifamily homes or et cetera? So I'm just, when you said that, it's kind of, you know, triggered some more questions.

Josh Whitehead, 275 Jefferson. These are going to be single family homes on single lots. They won't be connected to one another in any way. And then number two, they are distinguishable from mobile homes. Mobile homes have a chassis. They're usually long and narrow. These are manufactured off-site and brought to site, but they are not mobile homes. They are manufactured homes. The building code distinguishes the two of those. So yes, they can be mobile. In my company's experience, most of them just stay because they are large. They are usually wider. If they are going to be moved, you've probably seen them on the interstate. They're moved in pieces, so it's not very efficient. So in our experience, most people sell the property, sell their homes versus move them.

And so when they buy the homes, they're buying also the lots as well that comes with it or they're separate? Right.

So the lots, as a manufactured home park, these lots will actually be owned by UMH. So it's kind of a hybrid model. It's almost like a land lease, really. So you lease the lot like you would any other land lease, but then you get all the amenities. Instead of paying an HOA fee, you pay this land lease, and it manages that. the common areas, the gate. Usually we have three to four people who live on site that manage the property. It pays for their salaries, obviously.

And how much are the management fees?

We're expecting those monthly fees to be in the range of $1,100 to $1,500, depending on the lot size. A few of these lots are pretty large.

Okay. So it depends on the size of the house, is that correct?

The lot size.

Got it. Okay. And so each person who purchases a house, the house, hybrid house, then they would have to, in addition to that payment, they have to pay an additional fee, which is a management fee. Is that correct?

No, your land lease covers everything. It's just one fee. And then, you know, you can mortgage these homes, I guess, but the mortgage would be separate from...

Right, so two separate fees. You had the mortgage and then the land management fee.

You know, I suppose, so my mortgage pays for my taxes.

I just forgot the whole note because, for example, my sister stays in a condo. And so her HOAs are now $2,700. And so I'm just trying to figure out, you know, what exactly are homeowners going to buy, number one. And then number two, will it go up as well? Because that's a concern, you know, because we do want affordable housing. And this is kind of steep.

What I'll do between – Josh Whitehead, 275 Jefferson. Commissioner Sugarman, let me get a total amount for you between now and Monday so we can compare apples and apples.

Thank you. I appreciate that.

I'm here from UMH. I'm sorry. I had a very hard time parking.

Is this Ms. Bailey?

No, my name is Gail Whitten, and I am the regional manager for Tennessee for UMH Properties.

She's my client.

Okay. Okay. So to shed a little light on that, so typically the lot fees range around 524 at this time. We do have yearly increases for the most part, generally 5% to 6%. But that does, and that is in addition to their home mortgage, which generally just if you want to kind of throw a number out there, they're going to be paying around, maybe $990 to $1,200 a month for a nice three-bedroom home. Does that help?

Commissioner Brooks, you're recognized. Are you in the queue, Commissioner Brooks?

I'm trying to do too many things at one time. One question. So you call this a manufactured home? Yes, ma'am.

They are manufactured homes. What's the difference between a manufactured home and a trailer park? Well, okay, so the wording for one thing has changed over the years. These homes are built inside factories, and they are brought into the community and then set up in the community. If you think about, like he was telling you guys, like, you know, you see one going down the street. So when they get to our properties... Just a real short thing here. Many eons ago, more than 30 years ago, there weren't restrictions like there are now, but when we put them inside the community, Commerce and Insurance of Tennessee, the government entity, they govern what happens then, so we remove the wheels and axles, everything that would cause the home to be able to be mobile, and then we strap it down, we block it, we We do everything necessary to put the home on the lot. So to say that it is mobile in the fact that it could be moved, if it needed to be, it could be. But when we put them into our communities, we stabilize them to such extent that For instance, a lot of mortgage companies desire that because obviously if you're buying a home that can be moved, they don't want you moving the home until they have knowledge of it. So they're not easily moved. It's a big deal to move one. So I think that's the reason they kind of moved from the trailer thing. to manufactured because you typically think of motor homes and things that you can just hook them and pull them, but that's not the case with our homes.

So basically, I'm just trying to understand the difference between a trailer park and manufactured homes because they all look alike to me. Yes, ma'am. So would you say in one sentence, what's the difference? I mean, I understand that process, you know, taking it apart and moving it in two pieces. Yes, ma'am. You could do that with a trailer. Right.

Some trailers. Yes, ma'am. So I would say that a trailer is something that would... Trailer park. Well, a trailer park would be a place you pull into and fall into potholes. I'm just being honest. Okay. Our communities are not like that. If you've ever visited our website... So this will not be one of those trailer parks? No, ma'am. What are the trailer park stereotypes? I absolutely beg you to look at our website, umh.com. Okay. Not at all.

Thank you.

Okay, I'm going to move to send this down without recommendation, just in case Ms. Bailey shows up on Monday. So I would like, thank you, seconded. Commissioner Sugarman, can you ask off the record, or do you need to ask on the record? I see you in the queue again.

No, I think the young man said that he would send a list. I would like him to go ahead and send the list of the costs, for example, the management fees and things like that, the range. If he could do that, and I don't know if he could send it to everybody, that would be great. Thank you.

Okay. It's been moved to send this down without recommendation, seconded by Commissioner Haswell. We will see everyone on Monday. Thank you.

Thank you.

All right. That will conclude Committee No. 5, Land Use Planning, Transportation, and Codes. Thank you.

And just for the record, will you state the mover and the second, what you did, and then just state without objection.

Without objection. Thank you.

All righty.

What time is it?

Okay. We're going to now call in Committee Number 12, Legislative Affairs. Item Number 1.

Yes, sir.

Item 1 is a discussion item to last approximately 20 minutes. End-of-year reports, Cornerstone, a federal lobbyist report, will be presented by Ms. Shanetta Paschal. And then Morrison Strategies, our state lobbyist report, will be presented by Theo Morrison.

All right. I know that... All right, so I understand that our federal lobby is not going to be available today, but y'all do have a copy, and she's going to do it at a later date, the report from Cornerstone. We do have Mr. Theo with the state lobbyist is here. I think he stepped out. He might be coming right back in. And he's going to give a 10-minute presentation of the end-of-year report. Theo, come on up. All right, Mr. Thiel, if you will just state your name, zip code for the record, and time is yours. I know it have 20 minutes, but that was going to be between you and our state. So if we can just do 10 minutes for you and our federal lobbyists. So we'll do 10 minutes. Is that okay with you? Okay. Okay. That's fine. And I thought that Cornerstone was coming up first. Yes, sir.

Okay, can you hear me now? All right, good morning Members of the Commission, thank you very much for this opportunity to present the 2026 legislative report We had a very busy year And you should have before you a comprehensive version of the legislative report in addition to some PowerPoint slides. And so we'll start with the PowerPoint here. And let's see, first slide there.

I'm sorry, bro, your name.

Oh, I'm sorry, I'm sorry. I am Theo Morrison. of morrison capital strategies and uh... zip code is three seven two zero five okay we'll just don't write in our general assembly convened uh... in january of twenty twenty six and adjourned uh... april twenty third we had a uh... very extensive litany of legislation that was introduced. We also had a subsequent extraordinary session that convened and adjourned in May. and that resulted in a new congressional map dividing Shelby County amongst three districts. There were nearly 1,500 bills that were filed during the session with more than 500 bills reaching the governor's desk. Morrison Capital Strategies tracked over 500 bills in amendments with potential impact to Shelby County government. several local government proposals failed to advance, one of those being legislation that would address undocumented students enrolled in public schools. As the 2025-26 session concluded, all legislation that had not been acted upon was So since we're in the second year of a two-year session, anything not acted upon in 2026 would then have to be refiled in 2027. Next slide. 2026 legislative achievements. I wanted to point out that we did have some legislative achievements, which is terrific. And that came as a result of the work from the latter part of 2025 throughout 2026, working under the direction of Madam Chair Avant, our Legislative Chair Brandon Morrison, and our Legislative Vice Chair Charlie Caswell. and we were able to achieve the following. We monitored over 500 bills and amendments that had a potential impact on Shelby County. We hosted the fourth annual Shelby County Government Day on the Hill and coordinated members with members of the Shelby County delegation and state legislative leadership as well as officials within the governor's office. We also facilitated meetings with state lawmakers which led to reforms in our Tennessee Open Meetings Act and other local government priorities. We were able to secure state funding for the restoration of two judicial positions within the 30th Judicial District. supported passage of legislation and budget initiatives, providing $50 million for downtown Memphis public safety efforts, $15 million for violent crime reduction initiatives, along with $15 million for workforce development programs. There's also continued advocacy efforts related to Regional 1 health funding, transportation infrastructure investment education funding reform and maintenance of effort legislation and then the final bullet there attended and monitored legislative hearings tasks or meetings comptroller-led discussions and then their weekly local government association meetings throughout the session Next slide, please. Thank you. Now I'm going to give you an overview of the fiscal year 2027 budget. The Tennessee General Assembly passed a $58.3 billion budget that reflected slower revenue growth and tighter fiscal conditions. expiration of federal COVID relief funds reduced available recurring revenue. It was a very tight budget. There were continued investments, however, in transportation, infrastructure, housing, education, as well as aviation. And then a big dollar item that was adopted during this session was the expansion of Governor Lee's education savings account program. um which added an additional 15 000 students to be eligible for the program and the budget that was adopted this year reflects a post-pandemic fiscal environment with targeted investments in much tighter spending the slide here gives you a picture of the COVID-era funds that are going away, those funds that have been already obligated, and the things that the state had to do in order to find available revenue for recurring services. And what the legislature did do was adopt legislation that would charge a fee, an additional fee for money transmissions that would be going out of the country or coming into the country from other countries. Next slide, please. Here's some of the items of importance here related to Shelby County, some of the budget achievements. We had $400 million for statewide transportation projects, $50 million in public safety grant funding, $165 million for rest areas. There's some THDA funding, a rural development fund funding, money for nonstop international flights into Tennessee, as well as some funding for aviation infrastructure. Next slide. Now we get into some of the other bills of importance to Shelby County, some bills that passed. You'll see a list here. You have the oversight board that was created by the state through Senate Bill 714. You have... legislation here that was passed that came as a result of some positive conversations with Chairman Briggs of the Senate state and local government committee really kind of building upon our current Tennessee open meetings law which will be very beneficial to you all as a body so that when you're having community meetings you would be able to have more than one member of the commission present. As long as you're not voting on legislation, but if it's a community service type meeting, say, let's say during the winter storm, and you wanted to be able to provide information to your constituents. Some areas, you know, you're looking at multiple areas that need to have those resources, and so this would enable you to be able to have a meeting that way with multiple commissioners. Next slide. I've got some other bills that passed there. I won't jump in all of those, but I'll point out that you had some state intervention on some local authorities like the airport authority. You had the creation of a joint capital tourism board. You had a boring tunnel law that was implemented. And so there were a number of bills there of importance to Shelby County and some things that we need to continue to pay attention to. Next slide. We had some potential legislation that didn't pass. A number of those items pertain to, one of the big ones was banning a property tax, any type of property taxes. And as you know, that is a major source of funding for local governments. And we were successful in defeating those measures. But I will say next year we may be looking at more initiatives to adopt a property tax cap. And so, yeah, definitely want to keep an eye on that. Also wanted to get into, there was some immigration legislation passed over the last two years. The Republican Party came together along with the Trump administration to come up with immigration legislation. Some of those bills did pass. As I mentioned earlier, the tax on money transfers from Tennessee to locations outside the U.S., immigration enforcement bills, and we can go to the next slide. I WANT TO GET INTO OUR LEGISLATIVE AGENDA WHICH HIGHLIGHTS THE PRIORITIES FOR THE 2026 LEGISLATIVE SESSION. NEXT SLIDE, PLEASE. WE HAVE THE HEALTH CARE INFRASTRUCTURE WHICH IS THE REGIONAL ONE INITIATIVE TRYING TO GET $400 MILLION OVER TWO YEARS FOR THE CAPITAL PROJECT FOR REGIONAL ONE. did not involve any legislation but it did uh it was a budget item and so we were hoping that the governor would have included some funding within the initial budget but uh however there was no funding included in the in the governor's budget for the project the Shelby County delegation as well as business leaders advocated for state support. Had a lot of some behind the scenes phone calls from Chairman Morrison. She was also working with the business community to drum up support for this as well. Also wanted to bring up that There was – during our meeting on our day on the Hill, when we had our luncheon with the Shelby County delegation, they advised the Regional 1 lobbyists to file a budget amendment that they could all sign on. However, Regional 1 did not. They did not submit a budget amendment, but they did submit a budget request letter asking for $100 million that did not pan out. And so with that, I would recommend that we continue the advocacy and along with an educational campaign in support of Regional 1 while exhibiting the high standards of education Medical service as well as financial stewardship to the community federal state and local government officials Education the educational item there Senate bill 679 House bill 401 that relates to pre-k special education funding through TISA right now there's a loophole in the law that basically places the burden of funding for special, for pre-K special education funding onto local government, and it's not captured within the TESA funding formula. So we're hoping to obtain the funding to be able to have those students covered And because this is basically it's an unfunded federal mandate. And so if we could get that get that change, that would be wonderful. However, the funds to cover that were not were not available. in the budget, but that doesn't mean we give up our advocacy on this issue, and I would recommend that we continue to work with the Tennessee School Board Association, as well as our other education allies, along with federal, state, and local officials to look at this issue, along with the new state oversight board. This is something that they should also be talking about as well. On the subject of public safety, we found success with the passage of Public Chapter 1142, which supports the Memphis Public Safety Plan and the work of the Shelby County Crime Commission Safe Community Plan for 2022 through 2026. That legislation enabled the availability of funding, $80 million, for Memphis public safety and workforce initiatives. And it supports the public safety plan as well as the county safe community plan as well. And I would just recommend that we continue to work with the County Crime Commission as well as House and Senate leadership to continue the work envisioned through the Safe Community Plan. public safety. Another item that we found success with was the restoration of two judicial positions through the legislation, Senate Bill 846, House Bill 1268, the Violent Criminal Court Act. restored the two criminal court judges that had been taken away a couple of years ago. And so that was tremendous news and I'm hoping that we can build on the success. I would also ask you all to explore what other judicial needs that should be addressed by the General Assembly. infrastructure this is another item of a priority was looking at road funding in particular for uh for shelby county the governor did include 500 million dollars in the state budget is really a it's a drop in the hat when you consider we are 58 billion dollars behind in statewide projects and shelby county has a large number of roads that are either rated fair or rated in the poor category and so that continues to be a priority but i will say that um Although there are some leadership changes within TDOT, I was able to secure some new contacts within the department and I'm happy to announce that there are some plans underway and I'm happy to put together a presentation that would have officials from TDOT come and kind of alert you and inform you on kind of what's coming down the pike. Pun intended. Next slide, please. We have Register of Deeds legislation on the agenda. That legislation did not pass. I would say there was some work that needed to be done from the Register of Deeds office to work with the association. I guess there was a... disconnect between the Register of Deeds with the association that represents the association that represents the Tennessee Registers of Deeds. And so very important legislation, but I think it's something that they need to discuss before we formulate legislation down the road. Next item, immigrant legislation that was on the agenda. House Bill 1482, Senate Bill 1699 by Ackberry would have prohibited federal agents from assembling on school campus and certain religious or publicly owned properties for a civil immigration enforcement operation. That legislation, unfortunately, did not pass. But as i mentioned in my in my recommendation that there's been a slew of legislation related to immigration that was passed over a time period from 2025 to 2026, and legislators may feel that they have accomplished their goals, but I think it's something that communities should weigh the impact of those newly enacted laws and determine what should come next for their communities. Next slide. Okay, I want to point out that there are some constitutional amendments that will be on our ballot when Tennesseans go to the polls. They will see three state constitutional amendments. One would remove the right to bail for certain offenses. Amendment two would permanently ban the state property tax, which that's that term again, property tax, that I mentioned earlier. And then Amendment 3 would expand crime victims' rights. Last slide. That would be the outlook for 2027. So in January 2027, we will be beginning the 115th Tennessee General Assembly. That will be January 12th. We'll have a new governor. There will be some new members within our legislature. We have newly drawn congressional districts. I did not include, um, and I'll mention that, um, the legislature legislators are currently talking about possibly redrawing state legislative districts in 2027. So be on the lookout for that. Um, We also have the state takeover of the Memphis Shelby County Schools and the implementation of the Oversight Board will remain a major issue. I also want to point out that Morrison Capital Strategies will continue to work with Shelby County Government as well as local government associations to monitor the continued efforts to limit local government authority over issues such as taxation, land use, development regulations, and local elections. Healthcare infrastructure remains another vital aspect for Shelby County and the funding for Regional One Health is still an important topic. Transportation infrastructure investments as well as education funding initiatives remain unfinished priorities that we can consider for 2027. And then I will say lastly, we can expect continued debate on issues such as property taxes, immigration, housing and development regulations, affordability issues, and all these things kind of within the relationship between state and local government. And I'm open for any questions.

All right. Thank you. Thank you, Brother Theo. I appreciate that presentation. I just want to say before I go to the commission and the queues that I know you spoke on one item that I think that I want to make sure that we add clarity on. The first one you talked about the public safety, $80 million, $50 million going to downtown, and then $15 million for the others now. The 15 million for the violent crime reduction in the 15 did not happen, right? It did not happen. They took that out the budget. Yeah, they took that out the budget.

Which ones?

The $15 million for the violent crime reduction initiative and $15 million for the workforce development. It's supposed to have been $80 million that the governor put in, but the legislators came and cut the $30 million out.

Ultimately, it was $50. Did I have it as $80? It should be $50.

Yeah, it's 50 that came to downtown, but you also had the 15 million and the other 15 million included where it said supported passage. But then you spoke on it, and I thought you spoke on it as if it passed, but it didn't.

The funding did pass. There should be funding in there.

No. They took that out. Yeah, they took that out. That was one of the things we've been advocating with the Valley Interruptor people here in the city, and there was a press conference about it. If you can, just check on there. If it is, we'll love the fact that it is, but I know for a fact that it's not.

Okay. So you're saying that it's $50 million and not the $80?

Not the $80. Okay. Yes, sir. If you could just check on that and make sure that we get it. I tell you, I pray for you up there because I know I had a colleague of a different persuasion that's in the room, in those rooms, and called me crying. after hearing some of the things that were said, and that is said about Shelby County and why none of the dollars are coming. And so, again, I've been in those rooms where these things, items come before, and many of our legislators get no time to speak on it. The question is called before anything is spoken on. So I know it's been a challenge in trying to get anything at that level done. And I have some other questions, but I'm going to first go to my colleague, Commissioner Shugman. Thank you.

As you know, thank you so much for your work. You're welcome. Thank you. This is not surprising, but it's a very sad report. And I probably need to meet with you one-on-one, but just for a public...

I'm happy to do that.

Yes. Just for the public's, okay, information, because I'm getting a lot of questions. So I heard you say that we didn't get anything for Regional 1, and I was wondering, do they need to, Regional 1... Do they need to now file a budget amendment for fiscal year 2027? I just want to put that on the record. I have several questions. Then again, you mentioned Memphis Shelby County School Oversight Board. If they are prevailing in the courts, I believe it's $1.5 million that they're expected the Shelby County government to pay. And so actually, you know, my constituents as well as people from other districts are saying that if they indeed prevail in the courts, that the state should pay the $1.5 million over the four years. And so that needs to be addressed at the state level. And then the maintenance of effort. I understand we have six maintenance of effort. And you kind of mentioned that in here, that they're going to repeal because, for example, we just gave the Shelby County Election Commission $9 million. And so in their budget, and even if they don't have an election, because of the masses of effort, we have to put in their budget $9 million. And so my question is, with a population that's decreasing, which is also impacting our tax base, which is also decreasing, but we have a massive effort, That's up here. I mean, at this rate, we're going to go bankrupt. So again, what provisions, or they need to provide provisions for not only our county, but other counties who are in a similar situation, because I do know for the means of effort for the school system, there is a provision if the school population is decreasing that we have opportunity to also decrease the means of effort. But there's no provisions for the other five of the six MOEs. And so, yeah, if you could expand on that. And I might need to get back in the queue because I'm running out of time. But if you can answer those questions real quickly, I'll get back in the queue.

On the maintenance of effort, that was actually one of our add-ons to our legislative agenda. And that occurred after the bill filing deadline for the state. So we kind of had to scramble, and Commissioner Mills had to live through a lot of my phone calls saying, hey, I need some bullet points to discuss to help a freshman legislator understand maintenance of effort and what that means and what that looks like for a county the size of Shelby County. And also seek out a possible vehicle that we could amend to then accomplish our goals. We came very close. However, we had a very good sponsor with Senator Rose who was championing the issue for us. Unfortunately, we had to find the bill sponsor on the House side was a freshman legislator who was still learning where the broom closet was located. And so no fault to him, but just learning the process was a struggle. And so we ran out of time to get that accomplished, but I think it's something that still needs to be discussed is maintenance of effort. Your question regarding regional one, I can't speak on behalf of regional one, but I will say it wouldn't hurt to begin that, have that process of having some, having the discussions and having some committed funding in the governor's budget. There's no guarantee that it would, remain in the budget. You know how that goes. Because the legislature says that, you know, the governor proposes and the legislature disposes. So you have that. But I think the conversations need to continue.

MSCS?

Oh, that's the...

Oversight Board. Who's paying for it?

Who's paying? That's a good question. I think that's a legal question above my pay grade on that.

Okay.

But it's a great question. There needs to be clarification.

Thank you. And I know you, Commissioner, should have been back here. I'm going to go to Commissioner Brooks and come back if that's okay.

Thank you, Chairman. Just one question.

I guess...

Maybe I was reading another bill, but I thought that was addressed in the legislation proposing that Shelby County would be responsible for paying for it. It may not be. Maybe I'm reading something else. But I guess we have to look that up or take it to court. Just one question about I heard you talking. I didn't miss any of your report. I was in my office. But you were talking about the amount of dollars that the governor had passed around. How much in private vouchers came to Memphis, private school vouchers came to Shelby County private schools?

I do not know that number. The number that I know is the increase in the number of eligible students that would be funded, and that's 15,000.

Is that statewide?

Statewide.

Okay. So you don't have a breakdown?

No. Okay. No, I do not have a breakdown.

Is that available somewhere?

Well, I guess if your question is...

I'm trying to complete.

How many will be issued? Are you asking how many will be issued in the future? No, no, no. Or currently? Or the current allocation?

Out of this year's session, how much came to Shelby County? Because anecdotally, I know it was an increase from last year. So I kind of want to take a look and see compare the amount of private voucher money that was given and look at Shelby County Schools prior to this whole shakeup was given. So that doesn't exist?

That may exist. It may be a Department of Education or a Memphis Shelby County Schools question that they could address. I know, what I know is the increase in the number of available, what I refer to as scholarships, has increased from the current, I believe it's 25,000 plus the 15,000 increase. You would then have 40,000 available.

Is that per student? That's per student.

for the entire state, 40,000 that would be eligible for this particular voucher program.

For Shelby County?

No, just statewide. I don't know.

40,000?

It would have to be, right. Well, and that's the thing. It would have to be, you still have to apply for it.

I understand that. I'm just trying to get, yeah. It seems like to me there was a big increase in, Because I just can't remember, this is anecdotal, there were headlines about the new money. There was a lot of talk and conversation about the increase in voucher money. Private schools. When you say scholarship money, you're talking voucher, right? To private schools. We'll just Google it.

I think you need to talk to the officials who are in the education field that are they're dealing with this, whether their students are leaving and going into a private school or coming back or all those things.

I don't think that has anything to do with what the governor decides that he's going to allocate to the county for private school vouchers. I mean, he sits around with his finance group, you know, and they say we're going to send $25 million to XYZ County for private school vouchers. That's, you know how that works. Okay. Budget committee, yeah.

Okay. Exactly.

I don't want to take up any more time on it, but we can find out.

Absolutely. Thank you so much. I'm happy to help with that. And as I transition to Commissioner, I want to say Commissioner Brooks in the right line, because I was about to ask on there, because if you can, please get that information from the subcommittee. Education Commission because it was reported and it was reported in the news too that a large number of the students who are the people who are getting those vouchers are not coming from the communities that they said that was going to benefit from the vouchers we so we need that number if you can get that it's with the Department of Commission of Education that'll help us if you can send that to everybody and then I know it increased it almost 300 more million dollars and that he put into the voucher when we already see that this program is not benefiting the people who they said that it was going to benefit. So we need that data to be able to continue to share with our constituents because people continue to fight for something they're not able to benefit from. We're talking about $7,500 or so that comes in their voucher Most private schools are $15,000, $20,000. So inner city people are not able to pay another $15,000 or $5,000, whatever, to go there. So just please, if you can get that, thank you. Absolutely. And Commissioner, I'm going to go to the Commissionership.

Thank you. And so, again, I will be speaking with you privately because I have much, much more. But just quickly, I know there's six... I made some effort doing my research. That's what I found. And so if you could just do a little deep dive to see if there are additional efforts that I have not found, that would be most appreciative. And then of the $6 million for the audit that the state is spending, I would like to know how much has been spent, how much remains. And then the other thing is, My understanding, and I might be incorrect, but I thought I heard you say that workforce development received funding or not. Because we do need workforce development. And then you have a lot of big numbers here. Okay. And the numbers I would like you to break it down. For example, what exactly did we receive from Mississippi County? Because of, for example, let's see. We talk about... I don't know, 66 million went to 1,322 companies and so on and so forth. So my question is, of the budgets, what percentage did we get? Because I'm hearing we're not getting our fair share from the state. If you could just quantify that for me, what should we be receiving back from the state and what we're actually receiving, that would be most helpful. And you can send it to everybody, all of my colleagues as well. And then the other thing is, I just want to piggyback what my colleagues are saying about the vouchers, because basically I have friends who feel very guilty about applying for this funding, which is a discount for their kids who are going to a private school, and it's taking money from the public schools. And as you know, we're under-resourced, so I just would like to know the dollar amount, not the number of students, that Memphis Shelby County, the impact on Memphis Shelby County schools, the money that we're taking out of public schools and giving to rich kids who are going to private schools, okay, that dollar amount. Okay? Because we're living in a country of have-and-have-nots, and the workforce are bearing the brunt. And these are our tax dollars, okay? So our kids deserve a good education just like kids that go to private schools. So if you get that information, and I'm sure you may not have this information at hand, but if you could send this information to all my colleagues as well, and again, I will give you one-on-one because I want to do a deep dive with you. All right. Okay, thank you for your work.

Thank you. Thank you, Commissioner. Commissioner Mills.

Thank you and thank you for your report. I have a question on the two judicial positions. That was Taylor and Scarborough, if I remember correctly, that sponsored that?

That sounds correct. I know it was Taylor and I think it was Scarborough.

When, do you recall when they cut the funding to staff those positions? How it came up?

I believe that was in 20, it was either 2023 or 2024.

I'm talking about when they decided this legislation to give us the two judges back. And originally our understanding is it came with the staffing to staff the courtroom with it, with the two judges. And then that got cut. So now we're having to go out of pocket. to staff the courtrooms?

That is not my understanding of it. That's what I'm asking you. That's not good. Yeah, that would be... What's your understanding? That would not be fair. It's my understanding that the funding was there to create, well, really restore the two judicial judgeships. And that came as a result of the caseload, the weighted caseload study from the comptroller's office. And so when that study is issued, they look at that and then they were able to determine that based on the caseload, that Shelby County should have those two judgeships restored. So are you telling me that we're now having issues with funding?

I'm telling you we got two judges, and somebody amended it and took out the funding to staff the courtroom that these judges are in, and now we had to fund it. And I'm asking when that happened. Were you in the room? How did that happen? Did you call our legislative chair? Like what action was taken to stop that on the front end so we could get on the phones and ring the heck out of everybody we know up there not to do that?

Well, like I said, it's my understanding that with the judgeships comes the funding and that they shouldn't be two different things. pots so to speak are two different issues if you have a judgeship there should be the funding that comes with that in order to okay um it's implemented so yeah it was cut um we need to we were told when you were there you are our eyes and ears up there um um

So I was hoping you could have answered that. That's huge, and that was a big hit on our budget.

Yeah, well, and I know Senator Taylor would not have gone for that because I know we've been in constant discussions with Senator Taylor who carried that, who really led the charge on the Senate side. He was considered the driver to get this legislation passed. Okay. And so I know that that would not be a part of it to take away, to make it so that you get the judges, but then you don't get the money that comes with it.

Okay, we were told that it was, and we funded it. So if you could look into that and get us answers, because if we got money coming we don't know about, we would love to hear that. That'd be awesome.

Absolutely, because I didn't think it would work that way, because like I said, Senator Taylor, Representative Tori Harris also said, hey, we got the green light, everything looks good. for having the judges restored.

Okay. The state budget highlights for the state, do you have a breakdown of what actually came to Shelby County of this funding?

I can come up with a breakdown.

That's always good when you bring these reports a little more because this is very general. Like I was there and this is what they did. There's no like this was our legislative agenda. It's not specific enough for us to be a yearly report. So I would ask for that for the next commission. That would be helpful to them. My next question, I know this contract went out for bid. Do we know where we are on that? No? Okay. That's it. And the maintenance of effort on the mayor thing, we passed it. It just didn't get to you. I don't know who sat on it down here, but it was passed here in time. But I'm thinking at this point, all these other mayors in these other counties are loving it. It's going to be hard as heck to do away with it. We're going to have to look at it as maybe it's just maintenance of effort for constitutionally, legislatively bound things that a mayor has to fund. So it's going to have to be looked at in a different way if we try to address that moving forward or if y'all do next legislative session.

That's all. Thank you. No, I'm glad you brought that up. Thank you for that because it does need to be discussed and this is the time to do it. We need, looking forward to continued discussions, whether it's a Legislative retreat where we take a deep dive to come up with our agenda items for 2027.

Well, I can put the seed on that one there, even though I won't be here to address, trying to address it that way, which I think really will be the best route to... rain that in a little bit for Shelby County because it totally hits us different than these small counties. Thank you very much.

Thank you, Commissioner Mills. And I'll say this in closing that one of the things Sid gets a couple years ago that we need to have everybody in the room, right? Legislators need to be the city, the county, the school board, everybody legislatively because we go up there and we see it in the hallways. Everybody going in a different direction, having a different ask. We come back We don't know what the right hand, don't know what the left hand is doing. So that needs to be the strategic focus for us. That's one. But two, in clarification of what Commissioner Mills was talking about too, I understand that, yes, they did fund the two judges, but they took money out for prosecutors and public defenders and clerks that need to man that office, right? So that gave us a whole other thing that we have to now – locally take care of because the debt got cut. So if you can go back and look at the tapes on there, that would help us to know who and why did they cut that money out, that extra money out, because it now put the weight back on us as a county, right, and what we have to do. So that's what she was alluding to. All right. Commissioner Brooks, back here.

So generally, do they still have a policy that It doesn't prohibit, but it's sort of a no-no for unfunded mandates on local government. Or they try to avoid those. I mean, at one time in the past they did. We did, right. Like in the olden days, in the 90s, yeah.

We did, and then we're starting to see it kind of go away.

Oh, I see.

It's kind of like... There was a rule against caption bills. Right. If you filed a bill, it had to be what it is. It is what it is and not some Trojan horse. That's gone away. And that is a continued issue where the burden becomes a local burden.

Uh-huh.

And then the state legislature blames the federal government. You know, they want to blame everyone else.

So when it goes before fiscal review, it's no pushback when it goes to budget sub about a big balloon fiscal note on local government. Nobody cares.

Well, I won't say no one cares. It's... I guess there's some deflecting of the issue, but you have the voices and the advocacy from people like me as well as the lobbyists who represent the various associations that represent local government. So you have that. But then you're going up against other entities, other associations that have formed against any type of taxes. So they see any type of property tax, impact fees, things that would relieve a burden on a local government, they're viewed as bad. And so you're facing that battle because then those same entities are funding campaigns. And then they send out a mailer and they say, well, state representative blah, blah, blah filed legislation that was going to increase your taxes. So that's kind of where we are, the never-ending battle.

All right, sir. Well, we appreciate your time. We appreciate you giving us this presentation.

I appreciate your work, and I look forward to working with you into the future. And you've got my number, so feel free to give me a call and make sure we talk.

All right. Thank you so much. Have safe travels back, man. Thank you. All right. That brings an end to the Committee No. 12. We're going to jump right at Committee No. 8, Item No. 1. CALL THE ORDER, COMMITTEE NUMBER 8, ITEM NUMBER 1.

Item 1 is a resolution approving a contract with the Community Alliance for the Homeless with three one-year options to renew in the amount of $230,000 to provide planning, grants management, database administration, and clinical services to reduce homelessness in Shelby County for the period of July 1, 2026 through June 30, 2027. This item requires the expenditure of FY 2027 funds

in the amount of $230,000, sponsored by Commissioner Charlie A. Caswell, Jr. All right, this item is moved by Commissioner Mills and seconded by myself. All right, Dr. Hall.

Good morning, Commissioners. Dr. Lasagna-Hall, Deputy Chief Administrative Officer. It is my pleasure to be before you today to ask for this body's approval of a contract for Community Alliance for the Homeless in the amount of $230,000. This is an annual allotment that the administration provides to the Community Alliance for the Homeless to administer homeless programs throughout Shelby County. This item, the funding for this item is within the FY operating budget, 2027 operating budget, and joining me to talk about or respond to specific questions as it relates to the programming is Executive Director Sidney Taylor, I was gonna say the wrong last name, Sidney Taylor and her VP of Information Management, Tara Williams. The administration recommends approval.

All right, thank you. If you can, Miss, just say your name and your zip code for the record.

Good morning. My name is Dr. Sydney Taylor. I'm the President and CEO of Communalize for the Homeless. What was your other question? Oh, so we are HUD's designated lead agency for the continuum of care in Memphis and Shelby County.

One quick minute. Do you have a presentation or anything about that? No. No, we don't. Okay. Okay. You just speak to the word. Yes.

Okay. So we are a designated lead for the continuum of care in Memphis and Shelby County. We lead the homeless response system here locally, and we oversee the data management information system for the county as well for homeless services.

All right. Well, I was taking a look at this resolution. I see I got Commissioner Mills in the queue.

Thank you. How many people are served through this program a year?

We are the lead agency, so we receive the agencies as an intermediary through HUD. Okay, okay.

Okay, so you just... handle the paperwork?

Yes. Commissioner Mills, this agency is the continuum of care that's designated by HUD. So they provide the administrative oversight for all of the other agencies that work with them.

Okay. All right. Well, that won't answer my next question either. Okay. Thank you.

I know I got Commissioner Brooks. I just want to quickly to that. So you all caption the data. How many homeless people are in the city, in the county? Are y'all tracking? Like I know hospitality hub, they go out, they identify. So if you can say like what data are you collecting and how are we tracking?

Hi, my name is Tara Williams, the VP of Information Management with Community Alliance for the Homeless. And so these organizations that you've just referenced, which is the Hospitality Hub, they utilize our system called BitFocus, which is our homeless management information system that captures and tracks all of that data that is required in order to be recipients of that federal funding. So we do have a list of components that are required. when you're providing these services. And this is day in, day out. So this is a 24-hour system.

Okay, and that's good to know we got some type of tracking to do that. To that point, who will apply for the federal grants and things when they come? Is it your agency that do it for everybody that works with homeless in the county?

So, yes, I would say that is our collaborative application. The notice of funding, which is just, I'm sorry, just was released. However, our community partners are now working together to complete their portions of the application and collaboratively as a body, community-aligned, submit it on our community's behalf, and that's for Memphis and Shelby County.

Okay. And just one last question. Last year, how much funding federally, statewide, did you all receive for the work?

Last grant opportunity, we brought in $12.8 million for the community of Shelby County.

All right. Commissioner Brooks.

Thank you. Just a couple questions. You all didn't bring a presentation, right?

No.

And this is for $230,000? Yes. Okay, and you say you provide oversight?

Yes.

For which organizations?

Hospitality Hub? COC funded agencies. Can you tell me how many programs we have?

Yes, currently we have 13 agencies. Okay. But however, we are oversighting 28 projects.

And what agencies? You don't have to get up. You can send the list to all of us later.

I can send the list. Yes, I will send our list to you.

But can you tell me two or three?

Yes, MIFA of Memphis.

MIFA?

MIFA. Oh, MIFA? MIFA, the Hospitality Hub, Alpha Omega, Alliance Healthcare Services, Catholic Charities. Okay. Door of hope. We have.

Okay. So when you send that list, it really got my attention when you said Alpha Omega.

Okay.

And I definitely want to know how much you are giving, how much each one, the budget of each one, if you will. And then some of the oversight activities. So does that include oversight for federal compliance with federal statutes such as?

monitoring any of the racks that come down, any of our as of late under new administration.

Do you all monitor for compliance with Title VI and VII? Yes. Yes. Okay, you do. Yes. So I'd like to see maybe if you all could just kind of let us know what you're doing. Okay. I think oversight is real important. And for the small amount of money we have and the great amount of needs, we certainly need to have oversight. of agencies that receive these public dollars. I'll just wait until I can get some more information regarding your oversight activities and the agencies that you're providing oversight for and the budgeted amount of these entities. Thank you, Mr. Chairman.

Thank you, Madam. I will say this, too. Just looking at that resolution, I thought I saw that in there when I was reading it. But earlier was the fact that 2009 it was $5. some million, and now we're at $12.8 million. So I appreciate the increase in the capacity that you all are doing, showing that we're having that impact of making sure we're addressing this. And that is money that we don't have to put out when you all are doing that type of work. So thank you for that. Commissioner Lowry.

Thank you, Chair, and thank you for the work that you are doing as well. Just surrounding, that was kind of leading to my question, how successful or what's our track record or what can we put out there to make sure people know what we're doing? And also maybe to the administration, have we been working with Community Alliance in the past and tell me about that past work and just how long you all have been doing the work you've been doing so far?

So we've been doing this work since 2009, and we've been working with the county. I've been with the organization for 10 years, and so for the 10 years that I've been there, we have been receiving county funding in relation to this work. Annually? Yes.

I'm having issues with this today.

It's crazy.

Dr. Lasagna-Hall, Deputy Chief Administrative Officer, Commissioner Lowry, yes, the administration annually provides the same amount for $230,000. It's budgeted within the mayor's administration, and it does leverage the results that we're seeing from the HUD dollars that are brought to bear in the community. This agency serves as our administrative voice, eyes, ears in the community and provides that tracking mechanism. so that the administration can feel sure that this work is being done. This organization also, there's a project description within this resolution that gives you more information about what they do and the data that they collect, but they also provide annually a report and we'd be happy to provide that to this body as well.

Thank you. I'd like to see the report and just like to know how we're doing overall to reduce homelessness. What progress are we making year to year? If you've got any information or any stats that could say, hey, this is how we're progressing, we'd love to hear that now or love to see it.

We can provide that at a later time.

All right. Thank you. Thank you, ma'am. Commissioner, I'm going to go to Commissioner Shippman. Okay. Commissioner Shippman.

Thank you, Chair. Okay. I just have a few more questions. In my district in particular, District 12, I would like to know, number one, how many individuals are considered unhoused? I know this cannot be exact because, you know, it's hard to count the individuals unhoused because I am seeing visually an increase. I'm seeing individuals who are staying in, for example, where you go into banks, you know, at night they're staying in there. They're everywhere in my district. It's increasing. And the only unhoused facility in my district, District 12, is veterans. They just open up for unhoused veterans. And I do know there are also private who are also providing shelter. But I need to know, are there any shelters, besides what I mentioned, in District 12, and what resources are going to District 12? Because my constituent complained they're not getting return on their funding. The other thing I want to know is, for example, you mentioned a lot of agencies that you all work with. I'd also like to know what dollar amount these agencies are already receiving from the county government over the past year. since I've been on the commission, so let's say the past four years, because I don't want any double-dipping, even though these organizations are doing the work on making sure that, you know, because we have a very, very tight budget, as you all may know, because we do have obligations we have to meet, for example, as far as the sheriff's office, you know, roads, electives, et cetera, schools that we have to meet our obligations, and we're not able to meet them. We're not. That's why they keep coming back up here. You hear from juvenile court later on. I've heard from the judges, you know, and so on and so forth. So we do have the obligation. And you also heard the state. It's not sending our fair share back. So I do want to know exactly if, for example, if there's an organization that's also receiving other county funds besides what you are giving them. And then also District 12. I appreciate it. Thank you.

Commissioner Sugarman, Dr. Lasagna-Hall, Deputy Chief Administrative Officer, this group I don't think would be able to track the county funding for the agencies. Might I recommend that once they provide the list of agencies, we do a cross-reference of county, particularly CEP grants that may be going to these same agencies. The county is very, we can do our tracking on our side to see if reconciling those records.

I appreciate that. Yes, ma'am.

Thank you for filling in for Commissioner Caswell, Commissioner Mills.

Okay. Thank you. So my question is, is this the first year? This is not the first year you've had this contract, correct?

Correct.

And you keep up with the data. Correct. But you can't tell me how many people have been served?

I can't. Yes, ma'am.

Yeah, that was my question originally.

Oh, okay. Annually, roughly 4,000. Okay. Okay.

question. Okay now my next question is do you know how many veterans come across out of that 4,000?

Not off the top of my head.

Are they questioned when they come if they've ever served in the military? They are?

Okay. That's a part of the assessment.

And then do y'all refer them to a veteran service officer? We're not.

Community Alliance is not the direct service provider. So that information is captured in the database. Okay. However, that is X at those agencies. Okay.

So it's not X. But do you know if they connect them to refer them to a veteran service officer? Yes. Okay.

Wonderful.

That's great. Because instead of using the same pool of funds, they've got a whole bunch of stuff. Wonderful. That was my original question. And when you said no at first, I thought maybe y'all did something else. But now you answered my question. Thank you.

All right. Thank you. Thank you. All right. Let's take this item to vote. Seeing no others in the queue, let's take this item to vote. All right, everyone had an opportunity to vote. Let's tally the vote.

We have three aye votes from Commissioners Whaley, Caswell, and Lowry. Commissioners Sugarman and Brooks have abstained. We have three ayes and two abstained.

All right, this item goes down with favor of recommendation. I just say to you all, if y'all can provide all commissioners that requested information, I think it helps them understand what's all happening from the work that y'all are doing. Thank you for the work you do, and continue to bring those dollars to Chevy County so we can do more of their work. Thank you.

Thank you.

That now brings an end to Committee Number 12, um, Number 8.

All right, let's call to order Committee Number 7, Economic Development and Tourism. Parliamentarian, please read Item Number 1.

Item 1 is a resolution approving the Downtown Memphis Commission Fiscal Year 2027 Budget and affirming the assessment for Fiscal Year 2027, sponsored by Commissioner Mikel Lowry. This item was deferred in June 24, 2026 Committee Meeting.

Thank you. That was been moved by myself, seconded by Commissioner Caswell. How are you all doing? State your name and title and we'll start when you're ready.

Testing, okay. Good morning, everyone. My name is Shondell Ryan, President and CEO of Downtown Memphis Commission 38103. So this resolution is before you. We presented our budget on May 27, 2026, and we're here to answer any questions you may have.

All right. Any commissioners in the queue? Going once, going twice. What is this here? What is this handout we have here?

SO DURING THE PRESENTATION, THERE WERE A FEW QUESTIONS THAT WE SAID THAT WE WOULD RETURN WITH RESPONSES FOR, AND SO THAT IS IN RESPONSE TO THOSE QUESTIONS.

RAISED DURING THE BUDGET PROCESS?

YES, SIR.

IS THIS PART OF THE REPORT?

I am submitting them to respond to the questions asked, so I would say yes. It was not a part of the original presentation. These were questions that they wanted us to come back with a response to.

All right. Makes sense. A suggestion would be, I understand we do a lot of stuff here, right? Deferred things, referred things, and everything else. I think it would be best for the commission to have the total package so we can put those things in the report they made that were deferred as well as these questions here that may help the commission. All right. Seeing no commissions in the queue, let's take this to a vote. All right, let's close screening, report to telly.

We have aye votes from Commissioners Whaley, Shalai, and Lowry. We have three aye votes.

All right. That item goes out with a favorable recommendation. That concludes Committee Number 7. Thank you.

Thank you all. Thank you, Commissioner Lowry. We'll call to order Committee Number 1, Budget and Finance. We can read Data Number 1.

Item 1 is a resolution approving the intergovernmental agreement between the City of Memphis Public Library and Shelby County Government for the operation of the East Shelby Branch Library from July 1, 2026 through June 30, 2027 with three annual options to renew. This item requires the expenditure of FY27 general funds in the amount of $639,742 sponsored by Commissioner Charlie A. Caswell, Jr.

Okay, thank you. Moved by Commissioner Lowry. Seconded by Commissioner Shalai. Okay, thank you. Dr. Hall, Director Harris, thank you. I'll turn it over to you for a presentation.

Good morning again, Commissioners. Dr. Lasagna-Hall, Deputy Chief Administrative Officer for Shelby County Government. It is my pleasure again to present to you an intergovernmental agreement between the county and the city of Memphis in the amount of $639,742, which is approved in the FY27 operating budget. This is the only county-owned library, and the county government partners with the city of Memphis' library department on operating and material and supplies. And so I am pleased to have Dr. Harris with me today as our new director of libraries across the city of Memphis to present.

Thank you, and thank you all for having me. You have before you a brief...

Sorry, can you state your name and title for us, please?

Dr. Eric Harris, Director, Memphis Public Library's 3030 Poplar. Thank you. You have before you a handout, which is meant as a brief presentation, as an overview of the Memphis Public Library System. As Dr. Hall stated, I am new. I am five months into the position. It's been very exciting and glad to have it. First, the library system is something that is accessible. The Central Library is open seven days a week. The other branches, which includes East Shelby that we are discussing today, is open six days a week, Monday through saturday from 10 a.m to 6 p.m every single day going to sheet two a couple of highlights that i wanted the commission to be to notice first that we have a system of shared circulation within memphis public libraries we have over two million books and items that are available for checkout which any patron can go to any branch and if it is not specifically at that branch they can make a request and we have it shipped to that branch the very next day So there are lots of people taking advantage of that at East Shelby. We're also proud of the fact that, according to our calculations, we were able to save patrons about $15 million when it comes to items that they would normally have to go purchase, such as books or digital items and things that we offer for free and a lot of other services and workshops. And we also have in our collection over 100,000 e-books, audio books, and digital resources that are available 24-7 to any patron within the Shelby County, the Memphis Public Library system. Now going specifically to East Shelby, which we are here to discuss today, in FY26 we had almost 40,000 visitors come into that branch to use the services, which we're very, very proud of. About 22,000 items were checked out. And from that branch, we had about 1,800 people sign up for new library cards just at that branch alone. Again, that is new. We also had about 3,000 people participate in programs. And our programs within the library, they have a lot of different directions. It could be cooking, it could be something on reading faster, it could be something on line dancing or any interest that that public community has but we had over 3,000 people participate and what I'm most proud of in that number is about 2,300 of those 3,000 participants were youth age 18 and under so that means within the East Shelby branch there's a great opportunity for us to really capitalize on some youth that are engaged within that branch, and we want to keep that going. So again, I am pleased to be here today to speak to you all. Hopefully that we can continue this very fruitful partnership that we've had. Thank you.

All right. Thank you, Director Harris. Can you just help put into context how these numbers on the East Shelby branch relate to the other satellite branches in terms of visitors and new growth, new card sign-up? What's that look like?

Yes, absolutely. One great thing about East Shelby is that it – It's kind of isolated in terms of its location. You've got the Highland Oaks schools. You've got the Southwind neighborhood. You also have the Kirby neighborhood in Southeast Memphis. The next closest branches are pretty far away, looking at Parkway and Mendenhall. So there's a pretty large demographic that this branch serves. giving it a huge opportunity for patrons. So that's why the patron number is so high. The only numbers that are in comparison to that, of course, Central Library, which is a lot bigger branch, and we serve a lot more of the population, But it is very, very similar to other branches such as White Haven, which has a huge population. It is also very similar to the Jeffrey Redd branch, which has a huge population as well. They actually are number two in terms of checking out books. They're pretty high in terms of checking out East Shelby, even though, honestly, we'd like to see a better circulation there. We are working on that. But there is a very, very high amount of articles, materials that are checked out from that branch. And being honest, in terms of the new library card sign-up, I would have to look at the other branches to see how that compares. But I do know that 1,800 is a number that does stick out to me as being a very good number for new Library cards.

Yeah. Okay. Yeah. No, I mean, I think obviously we you know, this is the branch that we're working with We'd like to see the growth and I think that's that's exciting to see the engagement here. All right, Commissioner. Shall I? We're just saying I'm gonna recuse myself from this being that I do work for the City of Memphis administration. Okay, great. Any other questions? All right, seeing none. Thanks for the report. I think we can prepare this item for a vote.

Oh, Commissioner, before then. I apologize. Thank you, Dr. Hall. I do want to bring a matter before the commission to consider. I do know that this amount has been approved in the budget. I do appreciate it. This will definitely keep that branch open. We'll be able to operate. So don't let what I say interfere with that. There were a few legislative things that occurred within the city of Memphis prior to my becoming the library director. One was a salary floor was implemented. In this salary floor, it raised bottom salaries for all the employees across the city of Memphis, which included libraries. Long story short, the personnel expense that is in the contract that you all have approved, well, that is in your budget, is off. There's about a $75,000 gap there, and I am here today to ask the commission to consider if there is a means to close that gap so that we can operate without having to figure out a way to close that deficit as the year goes on. Again, apologies for it. I just took this position in February, and the person who dealt with the contracts was no longer with the library system at the time that I came in. It was an interim director, so long story short, this contract was not examined in the way that it should have been, giving you all the adequate time to consider any changes to the contract, and I do understand that, but I do want to put that on your radar and ask that if you can consider, again, an additional $75,000 going toward this contract so that we can adequately fund the personnel at that branch. But again, I will be clear, this will not resort in a cut of personnel should we not get that money today. There will not be any shortage of services whatsoever At East Shelby Drive, I've identified funds to sort of close the gap until we can come up with the additional 75. So I want to be clear on that. Thank you.

All right. Yep. Thank you. Commissioner Sugarman.

Thank you. And, Chair, I just want to let my colleagues know this is my district. And we don't have a community center. We do not have any place to meet. Although we do have small, small rooms at the library that are free. Other than that, we have to pay to congregate. And so I do want to work with Mr. Harris, and congratulations on your position. Thank you. I worked for you at White Station High School, and you did a great job. I just want to also mention that programming, I want to work with you, $575,000 within your budget. I must put that on the record. Then also I want to find some programs, because at this library we have no program like they do at other branches, such as cooking and all kinds of other programs. programming and it's essential because we do not have a community center. We do not have a YMCA. We have nothing for the elderly and for the youth to do. And so I do want to get with you after the election and work on some programming as well. Okay? And thank you for your work.

Absolutely. Thank you, and I'd love to have that conversation. I think that the library system could also be a much bigger intervention for a lot of the youth and things that we have. There are things that we could do tomorrow, such as we could issue every student in the school system a library card at no budget impact toward the system or us whatsoever. So there are things that we can do to close that gap, and I'd love to have that conversation. Yes, ma'am.

All right, thank you. All right, Madam Clerk, I think we can prepare the screen to vote on item number one. Okay, if everyone's had a chance to vote, we can close the screen or record the tally.

We have aye votes from Commissioners Whaley, Sugarman, and Lowry. Commissioner Shalai has recused. We have three ayes, one recused.

All right, item one will go down with a favorable recommendation. Item number two. Thank you all very much.

Item two is a resolution approving a contract extension for armored car, safe point, smart safes, and kiosk services with a Loomis armored US LLC for the period of July 1, 2026 through September 30, 2026. in an amount not to exceed $44,373. This item requires the expenditure of FY2027 trustee general funds in an amount not to exceed $44,373. Sponsored by Commissioner Michael Whaley.

All right. Thank you. Item moved by Commissioner Sugarman, seconded by Commissioner Shalai. Good morning, Trustee Newman.

Good morning, Commission. Regine Newman, County Trustee. This is an extension while this contract is being rebid. For whatever reason, this contract was a one-year contract and purchasing did not put renewals on it last year. It had renewals previously. And so we require the three-month extension to try to get it to continue the courier service for the county and get the new bids. Great. Thank you. Commissioner Sugarman.

Thank you, Chair. And so the question that becomes for legal, I thought past commissioners passed a resolution stating that there should be a two one-year renewals because I'm thinking back about another item that had three one-year options. And so I'm just trying to get clarification. Yes. Thank you.

James Gloss, administrator of Pertson. Good morning, commissioners. For the record, Pertson does not assign renewals for any country. It's the departments and contracts.

Okay, that wasn't the question. The question was, I thought that the commission had passed a resolution, so I was asking legal. I appreciate that, but didn't we pass a resolution that the maximum would be two-year, one-year renewals? Two one-year renewals. And that's a question for legal. Thank you, though.

Megan Smith, County Attorney's Office, you did amend your permanent rules to state that renewals would need to come back for subsequent approval.

Yes, and was it two? Was that the maximum?

I believe so. I'm looking for it right now.

Okay. Thank you. And so then my question goes to the trustee. So will you put that in so you have two one-year renewals going forward?

Regine Newman County Trustee, we intend to add renewals on the contract that's being bid now. This contract was bid last year and for some reason it did not have renewals.

Thank you. Okay, legal, you have the answer? Well, you can get the information from Monday, that'll be fine. Thank you, Chair.

Yeah, sure, no problem. I think maybe we can clarify the, I believe the change in the permanent rules is to give us the chance to vote on renewals versus it being automatic renewals. The issue here is that it never had a renewal in it to begin with.

I understand that, Chair. The question was, I thought I was trying to get clarification. It was a two-year maximum, well, two, one-year maximum, and that was the question. They'll get it to me on Monday. Thank you.

Okay, perfect. All right. All right, I see no one else on the screen. I think we can prepare the sign for a vote. All right, we can close the screen and record the vote.

We have aye votes from Commissioners Whaley, Sugarman, and Lowry. We have three aye votes.

All right, thank you. Item two goes down with a favorable recommendation. Item number three.

Item three is a resolution approving a contract extension for banking services with Regions Bank for custody and deposit of county funds for the period of July 1, 2026 through September 30, 2026. This item does not require the expenditure of county operating funds. The county will fund the contract extension amount with the compensating balance on deposit with Regions Bank. Sponsored by Commissioner Michael Whaley.

All right, great. Moved by Commissioner Sugarman, seconded by... I will second it. Trustee Newman?

Regine Newman, County Trustee. Thank you, Commissioner Whaley. This may be a contract that you're referring to. The banking contract is by statute four years, so one year and three one-year renewals. That is not affected by the county's resolution or ordinance. The banking contract has to be rebid every four years or when the trustee changes, whichever comes first. So this contract is in the process of actually it's been rebid for this year and is being prepared for finality by the incoming trustee. And the contracts by nature end on June 30th. So every four years we need to request the three-month extension that runs to the end of September to get that next contract approved. We would appreciate your votes.

All right. Got it. All right, Commissioner Sugarman.

And thank you. And so my question then becomes, that's the only bank that we're using, number one. Number two is I understand, I would like to look at the contract. I would because my understanding is at one point in time, I don't know if it's still done, that the bank would give like community service dollars, if you will, to projects. And I was wondering if that is in the contract or if they're still doing that because I know at one point they were.

Regine Newman County Trustee. The entire contract is in on base.

Okay.

And it's essentially the same for the coming year. It doesn't change that much. This is the bank that handles the bank accounts.

I understand.

Yeah, not the investments, not anything else. I understand. Just the bank accounts. I understand that. And all banks are required or encouraged to do CRE by folks other than the county. And, um, so we work with regions a lot on community, um, type items.

Okay. And so who would keep, who would be the keeper of that information if they've done any? And if so, what have they done recently?

Um, I'm sure we can get that information for you. Um, but the requirements are all in the contract.

Okay. I'd appreciate that. I'll ask contracts for a copy. Thank you so much.

All right. Thank you. Uh, trustee Newman, you expect this coming in August or September? Regine Newman County Trustee, this would come after September 1st. Okay, great. All right, seeing no one else on the screen, we can prepare Item 3 for a vote. All right, we can close the screen and record the vote.

We have aye votes from Commissioners Whaley, Sugarman, and Lowry. We have three aye votes.

All right. That item will go down with a favorable recommendation. Tracy Newman, are you fine going through the rest of your items and then we can go to the finance items? Yes. Okay. Let's call up item five.

Item 5 is a resolution to receive and file in the Shelby County Trustees Annual Financial Report for the year ending June 30, 2026, in accordance with Tennessee Code Annotated Section 67-5-1902, sponsored by Commissioner Michael Whaley.

All right. Uh, commissioner Sugarman, you want to move this one? Okay. I will second it. Trustee Newman. Good morning again.

Um, by statute, the trustee is required to present two separate reports to you during the month of July for the period ending June 30th. And this is the annual finance report, um, which is essentially, as you can tell from the exhibit, a lot of transactions. So we have the big, big beginning balances as of July one, 2020. five, and then all the receipts, all the transfers in, disbursements, transfers out, commission transfers, that being commission and fees, and then ending balances as of June 30th. So all of those balance, and we are happy to say they reconcile, and I would appreciate your approval. All right. Thank you.

Seeing no questions on this item, Madam Clerk, we can prepare item five for a vote. Okay, we can close the screen and record the vote.

We have aye votes from Commissioners Whaley, Sugarman, and Lowry. We have three aye votes.

All right, item five will go down with a favorable recommendation. Item ten.

Item six.

Ten.

Okay. Item ten. is a resolution to receive and file the trustee's annual report of delinquent tax for the year ended June 30, 2026, in accordance with Tennessee Code annotated Section 67-5-1903, and to authorize credit to be given to the trustee. Sponsored by Commissioner Michael Whaley.

All right. Thank you. Item moved by Commissioner Sugarman. I will second it. Trustee Newman.

Reggie Newman, County Trustee, this is another one of the reports required by statute to be given to you in July. The total amount of delinquencies is on Exhibit A, which has dropped again and is at a low point and we are proud to say it has dropped every year and that more than half of the delinquencies are the taxes that went delinquent on March 1st of this year. So they've just been a few months and also pleased to report, and this will come up in our fourth quarter report in August, that the trustee's office did set a new collection record for the county of 97.69% by June 30th on the 2025 taxes. So that is going to continue to drop these figures as time goes by. The report also includes the amount that was sued upon for 2024 in March, and that includes realty and personalty. Appreciate your approval.

All right, great. Thank you very much. I don't see anyone else on the screen. Madam Clerk, please prepare the screen to vote on item 10. All right, we close the screen and record the vote.

We have aye votes from Commissioners Whaley, Sugarman, and Lowry. We have three aye votes.

All right. Thank you, Item 10. We'll go down with a favorable recommendation. Thank you, Trustee Newman. We'll go back to the finance items. Item number four.

Item 4 is a resolution approving the purchase of public official bonds from WTW, a.k.a. Willis Towers Watson, Inc., WTW, through Hartford Fire Insurance Company for a period of four years beginning September 1, 2026, through September 1, 2030. This resolution requires the expenditure of the FY2027 General Fund Operating Budget in the amount of $140,000. Sponsored by Commissioner Michael Whaley.

All right, so item four, if we get a mover and a seconder. All right, moved by Commissioner Lowry. I will second it. Director Schaumbom.

Good morning, Daniel Schaumbom, Deputy Director, Administration and Finance. This is a renewal of public official bonds that happens every year, every four years during the election cycle. The public official bond has to be renewed so that the new incoming elected officials and directors can have a surety bond for the course of the administration.

Okay. Any questions on this one? I think I'm going to recuse on this. I own some shares in Hartford. So just make note of that. I'm going to recuse on this item. But I think, Madam Clerk, we can prepare the screen to vote. All right. If everyone's had a chance to vote, we can close the screen and record the tally.

We have aye votes from Commissioners Sugarman and Lowry. Commissioner Qualey has recused. We have two ayes, one recused.

All right. Item four, go down a favorable recommendation. Item number six.

Item 6 is the resolution approving a three-year contract renewal between Shelby County Government and Fifth Asset, Inc., DBA Debt Book in the amount of $24,000 each fiscal year beginning in FY2027. This item requires expenditures of FY27 general fund operating budget in the amount not to exceed $24,000. Sponsored by Commissioner Michael Whaley.

All right. Thank you. Item 6 moved by Commissioner Sugarman. I have seconded it. Director Schaumbom.

Good morning. Daniel Schaumbom, Deputy Director, Administration and Finance. DebtBook is the software that we use to maintain the county's debt as well as the subscriptions and leases of the county. While the annual amount is less than $50,000 required to come before this body, this is a three-year program. renewal, which puts us over that $50,000. This, as I said, allows us to maintain our debt and subscription and leases. We appreciate your approval.

Okay. Don't see anyone on the screen. Madam Clerk, please put a screen to vote on item six.

Before you vote, I just want to make a parliamentary note on renewals and what requires what the permanent rules are regarding renewals. So the rule six C3 states, all contracts including lease purchases presented to the county commission for approval shall be accompanied by a list containing the following information for all bidders who are applicable, name of bidder, bid amount, MWBE and LOSB status, total amount any MWBE and LOSB will receive pursuant to the status and total amount of any MWBE and LOSB, oh, excuse me, to the contract. That probably needs to be amended because I don't think we have a WMP program anymore. Additionally, all new contracts shall contain no more than two annual renewal options and there shall be no more than two extensions per contract absent extenuating circumstances which shall be provided by the department requesting the contract extension. As it relates to lease purchases, the ELC administrator shall provide the county commission with a report. So I want to note that in general, renewals do not require, and if a renewal was approved in the original There is no rule requiring that it come back before this body. Director Schaumbom just indicated that this one brings the contract total amount above $50,000, and that's probably why this item is before us. But in general, there is no requirement that just renewals come back before this body for approval.

Good point of information. Thank you. And so, but we can require that on the floor, correct? Because I know I've done that before. We requested that it come back before us. Like, even though there's two one-year renewals, that we requested that the next renewal become before the commission.

That is not part of your permanent rules.

It's not part of my rules, but I'm just saying for the record that we can.

So the administration, so there's two different authorities. So with the legislative, so when you have a resolution that authorizes the administration to enter into renewals, then they are operating within their authority. So I'm now speaking outside of my purview, so I'm going to end. But when you have a resolution that is authorizing the administration to execute those documents in accordance with the resolution, that is within their purview. Okay.

And then also, I heard you say that we need to probably amend number six. Is that correct? Rule number six, dealing with the MWBE program?

That would seem to be in order.

Okay. And then the last thing... And I would defer to the chair. And the last thing I heard you say is that we put our rules to, right? To one...

Yes, currently, but it says, absent extenuating circumstances which shall be provided by the department requesting the contract extension, so perhaps... If there's an item that has more than two renewals that was approved by resolution, perhaps that body provided that information on the floor, and then this body then approved that. And then the resolution authorizes it. Correct. Yes, ma'am.

Thank you. This is clarification. Thank you.

All right. Great. I think we can continue the vote here on item number six. All right, we can close the screen and record the vote.

We have aye votes from Commissioners Whaley, Sugarman, and Lowry. We have three aye votes.

Okay, thank you. Item six will go down with a favorable recommendation. Item number seven.

Item seven is a resolution receiving and filing the April 2026 monthly comprehensive financial update reports entitled Shelby County government monthly commission division reports for the year ending June 30th, 2026 sponsored by commissioner Michael Whaley.

All right, great. Thank you. Moved by commissioner Sugarman. I will second it. Deputy director Sean Baum.

Good morning again, Danielle Sean Baum, deputy director administration and finance. You have before you the April 2026 general fund operating report. As of April 30th, total revenue was at $511.2 million, an increase of $64.3 million versus prior year. We are at revenue collections of 93.8% of budget as of the end of April. Property tax revenue was at $388.2 million or 99.7% of budget. up significantly over prior year due to the reallocation of the penny. Other local taxes, no significant change, but business taxes are trending a little bit higher. State revenue is down due to timing. When I present the May report, you'll see that correct. Federal and local revenues are also down about 1.2 million from prior year. That should correct before year end. Fines and fees are up. are at $57.8 million versus $49.5 million in FY25. About $2.5 million of that was the general sessions cleanup that we had previously discussed. But we are seeing increases in several offices, including fees and permits, the circuit court clerk, county clerk, the registrar's office, and the trustee. So some good news in the increased revenue in our fines and fees. Interest is at 14.2 million versus 6.5 million. We are still working on allocating interest out in the new system and so we expect that to be reduced by approximately seven million and be more in line with prior year. Personnel expenditures are up 25.9 million or 9.3%. I think we have discussed repeatedly the increased salary cost. due to the salary increases that were awarded to county employees. Overtime costs are also up about $3 million or 12%. Fringe benefits driven by retirement contributions are also contributing to that increase in personnel expenditures. as well as health insurance costs. O&M is at 76.6 million or 52% of budget, down from 87.2 million or 54.6% of budget. We continue to see that narrow versus prior year as we continue to work on our backlog of Payables due to the system transition. So we have seen some increases in utilities and food service costs. Offsetting decreases are in inmate medical costs, which we know will catch up before year end. Buildings and ground maintenance, which I understand may not catch up. That may be a decrease due to utilization in the current year. With that, I can open it up for questions.

All right. Thank you. Are we making any progress on closing the gap in the reporting, sort of closing out these months and catching up a bit? Because obviously that's still a bit of a challenge. I know part of it is system implementation, but are we internally seeing any progress there on closing the gap?

Danielle Schombom, Deputy Director, Administration and Finance. We are seeing significant progress there. You see that I am presenting April and May this month. So there is absolutely a catch up there. And we have to have the county's books closed by the end of August. So we are working diligently towards constantly refining the processes, looking for solutions to issues we encounter due to the system conversion. But you'll see in May that the O&M continues to narrow. And so we are, all I can say is we're making progress and we continue to work diligently.

Yeah, great. Okay, all right. Madam Clerk, please pray the screen to vote on item number seven. All right, we can close the screen and record the vote.

We have aye votes from Commissioners Whaley, Sugarman, and Lowry. We have three aye votes.

Okay, thank you. Item 7 will go down with a favorable recommendation. Item number 8.

Item 8.

is a resolution receiving and filing the May 2026 Monthly Comprehensive Financial Update Reports entitled Shelby County Government Monthly Commission Division Reports for the Year Ending June 30, 2026, sponsored by Commissioner Michael Whaley.

All right. Thank you. Item 8 moved by Commissioner Sugarman. I will second it. Deputy Director Schumbach.

Danielle Schombom, Deputy Director, Administration and Finance. Having just presented the April report, there's not significant changes in the May report. Total revenue is up a little bit. We're at $531.1 million, an increase of $60.9 million over the prior year. Revenue collections at 97.5% of budget, so we're almost all the way there. Property taxes at 99.8% of budget. Other local taxes are up $2.1 million. As I noted, we are seeing business taxes trend higher. State revenue is down just $600,000 versus FY25, so no material change there. Federal and local revenues are down $1.3 million versus prior year due to timing. Fines and fees, I just went through, you know, we are seeing increases among several offices. So revenue up. versus prior year, 62.3 million versus 55.7 million. We are still in the interest working through the reallocation of the interest, so no significant change there versus prior month. Personnel expenditures continue to trend above prior year due to the salary and expense increases. O&M is at 91.9 million down from 95 million, but as a higher percentage of budget. So again, you're seeing that lag narrow from prior year, and obviously we will be fully recording all FY26 expenses by the end of the June close. That, I'll open it up for questions.

All right. Thank you. What is the remaining inmate medical liability for FY26?

I don't know that off the top of my head. I'll have to look at that.

But is it under the 152, the budget for the O&M, like that gap? Because the gap was the same last year, and I'm assuming it was the same catch-up in June.

Yeah, and we did not spend that full $159 million last year, and I don't anticipate that we will be at $152 million. My guess is somewhere around $120 million, but we will not fully utilize the O&M budget.

Yeah, but that, of course, that item is going to come as a new contract to BD in terms of the cost. Yes. Yep. Okay. Seeing no questions, we can prepare item eight for a vote. Okay. Thank you. We can close the screen and record the vote.

We have aye votes from Commissioners Whaley, Sugarman, Shillai, and Lowry. We have four aye votes.

Okay. Thank you, Item 8. We'll go down with a favorable recommendation. Thank you so much. All right. Item number 9.

Item 9 is a resolution of the Board of Commissioners of Shelby County, Tennessee, approving and authorizing the issuance, sale, and delivery of the county's maximum aggregate principal amount not to exceed, A, $25 million Interfund Tax Anticipation Note Series 4. 2026 a and b 100 million dollars tax anticipation note series 2026 b pursuant to in accordance with the applicable provisions of sections 9-21-101 at sec of the tennessee code annotated as amended for the purpose of providing interim funding to the county for meeting certain appropriations made for the current fiscal year and to pay the cost incident to the issuance and delivery therewith, prescribing the forms of and authorizing and providing for the terms of the tax anticipation notes, authorizing the negotiated sale of the Series B tax anticipation note, and prescribing the form of and authorizing execution and delivery of a loan agreement between Shelby County and the selected lender, authorizing the execution and delivery of the tax anticipation notes, the loan agreement, and all other legally required documentation necessary to consummate the transactions contemplated hereby with respect to the foregoing, appointing co-bond counsel, and appointing the municipal advisor with respect to the foregoing, authorizing certain county officials to facilitate, perform, and complete all actions deemed necessary or advisable in connection with issuance, sale, and delivery of the tax anticipation notes and setting forth an effective date. Sponsored by Commissioner Michael Whaley.

All right. Thank you. We have a substitute on this item, and thankfully I don't think the caption has changed. So I'm going to move the substitute. Okay. So this is moved by Commissioner Sugarman, seconded by Commissioner Lowry. I'm going to move a substitute resolution we should all have in front of us. Is there a second? Second. Seconded by Commissioner Lowry. Can we accept that without objection? Okay. Can we, before we entertain the substitute, we need to have an explanation of the changes in the substitute. Again, my understanding is the caption has not changed, but there's some small red line changes within the packets that we have. So can you, Deputy Director Schaumbom, can you go over the changes in the substitute first, and then we will go to a presentation on the item.

Danielle Schombom, Deputy Director of Administration and Finance. We do have bond counsel here with us this morning, and I'm going to ask them to come up. We also have our financial advisors with us as well.

Okay. All right, very good. Thanks, all. Mr. Carpenter, good to see you. If you guys will just state your name and title, and we just want to go over the red line changes on the substitute before we get into the item itself.

Jeffrey Morris, Butler Snow, Bond Council, 6075 Poplar Avenue.

Corbin Carpenter, Co-Bond Council, Shelby County, 386 Bill Street, Memphis, Tennessee, 38103.

Charles Carpenter, Carpenter Law 386 bill.

Okay. So can we answer the question about the red line changes and the substitute?

Jeffrey Morris, Butler Snow, 675 Poplar Avenue. Those changes represent minor changes that we received from... the selected lender, as well as adding in the loan agreement and series B note, which were sent to the commission previously, but weren't added in as attachments. So they were appropriately added in as attachments as well.

Okay. So the changes that had to relate to the lender were approved by the, or actually were provided by the lender.

That's correct. Okay.

Because I think one of the changes was around with or without consent of the lender was one of the changes and they have signed off on that.

That's correct. That came from them. Okay.

All right. So let's go back to the item itself. So we've approved the substitute, uh, without objection, the substitutes in front of us now. Uh, so can we, if there's, you have something further on the changes?

I just wanted to note, uh, Danielle Schaumbom, deputy director of administration and finance that, uh, also added in where the attachment sent to the state for the, uh, waiver and the approval, which is subsequent to this, their action will be subsequent to this bodies, but that was not in the original package.

Right, and that includes the cash flow forecast.

Correct.

Okay, all right. So if you can, if someone wants to take the lead on explaining the TAN, the difference between the Series A and the Series B, the sequence of when we would take out the Series A, when we'd start drawing the Series B, what the anticipated interest rates are, just kind of go through all that, and then we can ask questions.

So Danielle Schaumbom, Deputy Director, Administration and Finance. The Series A is up to $25 million from the county's debt service fund and we would draw on it first. The $100 million is the Series B is would be through Regions Bank and we would draw draw down on it throughout the fall as needed. This is up to $125 million in total, with the region's portion being up to $100 million. Obviously, we are still in the process of closing the county's books because we don't know exactly where the county's cash position will be at year end. We've had to make some estimates based on items that normally impact the county's cash and cash flow as well as the expenses that will go out over the course of the first five months of the fiscal year and so we tried to be conservative in those estimates to ensure that we had ample capacity in this borrowing.

Okay. Um, and just to understand the, I guess what was sent to the state or what we are working with internally currently is that we're looking at about $101 million need. Correct. And so the one 25 is to provide enough cushion in the event that that exceeds that amount. But that's accurate. But we had ideally come in in a place where we do not need to draw the full hundred from the series B.

Yes.

Okay. All right. Commissioner Sugarman.

Thank you. Chair, just to piggyback on what you stated, what is the difference between Series A and B? I understand $25 million is coming from Series A and the balance of $100 million from Series B. And the interest rate, I didn't hear that.

So Series A is, Danielle Schombom, Deputy Director, Administration and Finance, Series A is the internal borrowing from the debt service fund. Series B is the external borrowing from Regents.

Continue.

The interest rate, the internal will be set based on the trustee's highest interest rate of an investment for a like period of time. So we would anticipate that we would pay back, we will pay back the external loan first and so we anticipate paying all of this back no later than March of next year. We have to have it paid back by the end of the year. The external loan is a variable rate loan. The rate based on today's markets would be 3.32%. Okay, clarification.

Okay, did I hear that the $25 million needs to be paid back? Which one needs to be paid back first?

So we will pay the external borrowing back first.

The $100 million?

Yes.

And the time frame again?

So this is a tax anticipation note. So as we get property taxes in between December and January, the earliest it would, I mean in February rather, the earliest we would pay it back would be, again, it will depend on what the borrowing actually ends up being and when revenue comes in, but we would pay it back as early as December and as late as March with March 27. Correct.

Okay.

With a requirement to pay it back before the end of the fiscal year.

Okay. And, um, the 25 million, that was external, correct?

No, the 25 million is internal as the debt service fund borrowing.

Okay.

And that will also be paid back, um, Yes. By March?

By 27? Correct. Okay, got it.

Thank you. All right, thank you. What are the full terms on the Series B? I mean, what is it? So you're saying it's floating rate throughout the length of the loan, or is it fixed at closing? Is there origination fees? What are the details on the note?

So I'm going to have PFM, our financial advisor, Albert Brown from PFM, to come up and...

You're on. It's on.

All right. Thank you. Albert Brown, PFM Financial Advisors. The rate is a floating rate, and the rate will not be set at closing. However, there will be an initial rate that's set at closing, and throughout the months that the note is outstanding, the note will float periodically given the index that it's PEG-2, which is the sulfur rate, which is the secured overnight financial rate.

Yeah, okay. And so are there, like what are the origination fees, like loan closing fees, carrying fees, like what's the fee structure?

There are fees associated with the note. There is a origination fee as well as a unutilized fee, but those are not incorporated in the actual interest rate itself. So those will be paid as the loan is – those will be paid as the loan is drawn down. So it's kind of a push and pull essentially. So as the fees that are associated with the – it's an unutilized fee, for example. So if the – as the loan is drawn down, the unutilized fee decreases because the note is being drawn down essentially.

Okay. I mean, I think it's important that we understand all of this because, you know, fees on a large loan like this can add up. Uh, and if we're not managing, you know, this is meant to be a short term loan and sometimes you got to look at these things because if you take it too long, If for some reason collections are delayed, there's some issue and people are paying their taxes slower and this loan goes out until April, we need to understand what's the consequence of exceeding the defined length of the of the loan and the sort of exposure because of a floating rate debt, if rates go up, right, then have we modeled that in these projections?