* This transcript was created by voice-to-text technology. The transcript has not been edited for errors or omissions, it is for reference only and is not the official minutes of the meeting. [00:00:02] ALL RIGHT. THE [1. CALL TO ORDER AND ROLL CALL OF MEMBERS] CITY COUNCIL OF THE CITY OF LEAGUE CITY TEXAS WILL NOW COME TO ORDER IN A WORK SESSION ON JANUARY 23RD, 2024 AT 5 0 3. ROLL CALL. UH, ANDY MANN. TOM CONES HERE. TOM CRUISE HERE. JUSTIN HICKS. YEP. CHAD TRESSLER HERE. SEAN SAUNDERS HERE. ALRIGHT. PUBLIC COMMENTS. [3. PRESENTATION AND DISCUSSION REGARDING THE FY2024 AUDIT PLAN] STILL NOBODY HERE. AND NOW WE'LL DO A PRESENTATION AND DISCUSSION REGARDING THE FY 2024 AUDIT PLAN. OKAY, THANK YOU. OKAY, SO, UM, BASIC, THE BASIC AGENDA FOR TODAY'S DISCUSSION IS I'M JUST GONNA GIVE A BRIEF EXPLANATION OF THE PURPOSE OF THE AUDIT PLAN FOR CITIZENS OR OTHERS THAT MAY NOT BE FAMILIAR. UM, AND TO GO OVER WHAT IS INVOLVED IN THE DEVELOPMENT OF THE AUDIT PLAN AND THE PROCESS. UM, WHICH, WELL, IT'S KIND OF CHANGED A LITTLE BIT, BUT WE'LL COVER THAT. AND THEN ALSO PRESENT THE PROPOSED AUDITS FOR FISCAL YEAR 24. AND THEN YOU HAVE IN FRONT OF YOU HARD COPIES OF THE AUDIT TOPIC, UH, LIST THAT WE WILL GO OVER AND DISCUSS THOSE. AND, UM, I'LL ANSWER ANY QUESTIONS YOU MIGHT HAVE ABOUT THOSE TOPICS. AND THEN WE CAN PROCEED TO DISCUSS IF THERE ARE, UH, ITEMS ON THERE THAT YOU FEEL THAT IS, UH, MORE IMPORTANT WE'RE PRESSING THAN THE ONES THAT HAVE BEEN PROPOSED IN THE AUDIT PLAN. AND HOPEFULLY BY THE END OF THIS, WHAT WE'LL COME UP WITH IS A FINAL AUDIT PLAN THAT COULD BE PRESENTED AND APPROVED BY RESOLUTION. SO BASICALLY, THE PURPOSE OF THE AUDIT PLAN IS TO GIVE ME BASICALLY A ROADMAP, A GUIDELINE TO FOLLOW FOR THE, FOR THE NEXT FISCAL YEAR, UH, TO, SO THAT I CAN JUST PLAN OUT MY WORK. IT ALSO PROVIDES COUNSEL WITH A MECHANISM BY WHICH TO EVALUATE THE PERFORMANCE OF THE FUNCTION. UM, THAT SAID, THE PLAN IS NOT NECESSARILY SET IN STONE, PARTIALLY BECAUSE, UM, THE, UH, AUDITS THAT ARE SELECTED ARE BASED ON A, UM, ESTIMATED AMOUNT OF TIME IT'LL TAKE TO COMPLETE THEM. AND SOMETIMES THAT VARIES. ALSO, AS WE HAD HAPPENED, UH, JUST THIS PAST FISCAL YEAR, UH, THINGS MAY COME UP THAT ARE UNEXPECTED AND, UH, COUNSEL MAY DETERMINE THAT, UH, THAT THE AUDIT PLAN NEEDS TO BE SHIFTED TO ADDRESS THOSE CONCERNS OR THOSE THINGS THAT COME UP. SO THAT SAID, IT'S A PLAN, BUT IT'S FLEXIBLE. SO THE BASIS FOR DEVELOPING AN AUDIT PLAN IS HAVING AN AUDIT TOPIC LIST. AND THIS, UM, IS DERIVED FROM A LOT OF DIFFERENT SOURCES, AS YOU'LL SEE FROM THE GRAPHIC. IT'S, UH, CITY COUNCIL CONCERNS, UH, SUGGESTIONS, MANAGEMENT, UM, INTERNAL, LIKE WHEN WE HAVE OUR EXTERNAL AUDIT DONE, IF THERE'S THINGS IDENTIFIED THAT, UH, SIGNAL POTENTIAL, UH, AREAS OF CONCERN THAT WE MIGHT WANNA DO AN AUDIT ON. UM, OTHER THINGS ARE, UH, UH, CITIZEN COMPLAINTS, UH, HOTLINE. UH, ANOTHER SOURCE THAT I USE IS MY PEERS FROM OTHER MUNICIPAL GOVERNMENTS AND OTHER GOVERNMENT ENTITIES. UH, THERE'S USUALLY TRENDS AND THINGS THAT, THAT COME UP AND WE DISCUSS, AND SOMETIMES THEY HAVE COME ACROSS THINGS AND WE'LL SEE A KIND OF A PATTERN THAT THERE'S CERTAIN AREAS OF CONCERN ACROSS DIFFERENT ORGANIZATIONS. SO THE DEVELOPMENT OF THE, OF THE ANNUAL WORK PLAN STARTS WITH ME TAKING A LOOK AT THIS AUDIT TOPIC LIST AND, UH, BASICALLY REFINING IT. AND THIS IS A LIVING DOCUMENT, SO IT GETS ADDED TO AND TAKEN AWAY FROM THINGS MAY FALL OFF OF IT BECAUSE WHAT WAS FORMALLY A CONCERN MAY NO LONGER BE BECAUSE LET'S SAY FOR EXAMPLE, UH, A, UM, A SYSTEM IS IMPLEMENTED THAT'S GOING TO ADDRESS CONCERNS THAT WERE, UH, ORIGINAL CONCERNS. SO IT'S NO LONGER THAT MUCH OF AN ISSUE. UM, SO THE FIRST THING I DO IS I TAKE A LOOK AT THAT, AND THEN WHAT I WILL DO IS LIKE REFINE IT, ANALYZE IT, TAKE A LOOK AT IT, LIKE TRY TO PRIORITIZE IT AND COME UP WITH A BASIC LIST BECAUSE IT IS AN EXTENSIVE LIST AND I'M A LIMITED RESOURCE, I HAVE TO KIND OF NARROW IT DOWN. SO I COME UP WITH A LIST OF THINGS I THINK ARE MOST IMPORTANT TO SELECT FROM. AND THEN WHAT WILL HAPPEN AT THAT POINT IS I WOULD LIKE TO PUSH THAT OUT TO COUNCIL SO THAT THEY CAN TAKE A LOOK AT NOT ONLY THE LIST THAT I AM, I AM PROPOSING, I'M GOING TO SELECT NEW AUDITS FROM, BUT ALSO JUST THE TOTAL LIST IN GENERAL AND GET SOME FEEDBACK ON IT, SEE IF THERE'S ADDITIONAL CONCERNS OR TOPICS THAT, UM, COUNCIL MIGHT WANT TO SUGGEST. SO ONCE THAT'S DONE, UM, THEN AS I DID THIS YEAR, I SAT DOWN WITH JOHN ON THE, THE, UH, LIST [00:05:01] OF, OF, I GUESS I'M GONNA CALL IT MY PROPOSED SELECTION LIST. AND WE WENT OVER IT AND IF YOU SEE ON THE HARD COPY, THERE'S A, LIKE A LITTLE RED X OVER TO THE RIGHT HAND SIDE ON THAT FIRST PAGE. AND THOSE ARE THE ONES THAT JOHN IDENTIFIED THAT HE FELT WERE, UH, WOULD BE OF THE MOST VALUE. SO I GET HIS INPUT ON THAT, AND ONCE THAT'S DONE, THEN I PREPARE A, I'M GONNA CALL IT A PRELIMINARY PROPOSED AUDIT PLAN, WHICH WILL GO TO THE FINANCE COMMITTEE FOR REVIEW AND DISCUSSION. UM, THEN AT THAT POINT, THEY'RE BASED ON THOSE DISCUSSIONS, IT COULD BE REFINED FURTHER. AND THEN, UH, THIS IS THE FIRST TIME WE'VE DONE A WORKSHOP, SO THIS IS A NEW THING. UM, BUT THEN AT THAT POINT THEN WHAT I WOULD COME BACK WITH IS HAVE A WORKSHOP WITH COUNSEL TO GO OVER THAT PROPOSED AUDIT PLAN AND DISCUSS IT AND THEN MAYBE POTENTIALLY FURTHER REFINE IT. SO MY HOPE IS BY THE TIME WE END UP WITH THIS WORKSHOP, WE WILL HAVE A FINAL AUDIT PLAN THAT THEN I CAN JUST PRESENT, UH, AND YOU ALL CAN APPROVE THROUGH RESOLUTION. SO, UH, I HAVE SOMETHING I WANNA DISCUSS ABOUT THIS PARTICULAR PROCESS, BUT I WANNA ASK YOU, UM, AND YOU DON'T HAVE TO ANSWER ME RIGHT NOW, BUT DO YOU HAVE ANY THOUGHTS ON THIS PROCESS OF, UH, LIKE SOMETHING YOU MIGHT WANNA SUGGEST THAT WOULD IMPROVE IT? DOES IT FEEL LIKE THAT THIS IS A, A GOOD APPROACH? UM, I LIKE THE APPROACH. UH, YEAH, I, I MEAN IN GENERAL, I LIKE THE APPROACH, SO I, I'M FINE WITH IT. I THINK IT ROUGHLY MATT MIRRORS WHAT WE'VE DONE IN THE PAST. OKAY. AND WE CAN ALWAYS REVISIT IT. IT'S, YEAH, THIS IS SOMETHING, THIS IS KIND OF NEW, SO YEAH, IT'S A TRIAL. SO THE ONE THING I WANTED TO, UM, DISCUSS WITH YOU, AS WE KNOW, WE'RE IN THE SECOND, UH, QUARTER OF THE NEW FISCAL YEAR, AND I DON'T HAVE AN AUDIT PLAN. AND THE REASON FOR THAT IS WE HAD SOME ISSUES WITH THE FINANCE COMMITTEE BEING ABLE TO MEET BECAUSE WE HAD SOME TURNOVER. AND HOPEFULLY THAT'S NOT GONNA BE AN ONGOING ISSUE. BUT I WILL SAY SINCE I'VE BEEN HERE IN THE THREE YEARS I'VE BEEN HERE, FINANCE COMMITTEE NOT MEETING HAS SORT OF HELD UP MY WORK, UH, SEVERAL TIMES. AND SO WHAT I WOULD LIKE TO ASK, UM, COUNCIL, IS IF WE RUN INTO THAT KIND OF ISSUE AGAIN, WHERE THEY'RE NOT MEETING, I WOULD LIKE TO BE ABLE TO HAVE THE FREEDOM TO JUST MOVE FORWARD WITH THE WORK SESSION AND FINALIZE IT AND THEN CIRCLE BACK AND JUST PRESENT THEM THE FINAL YES. BECAUSE THANK YOU, , WE CAN VOTE HERE, BUT I, OKAY. ALRIGHT. THAT, THAT'S GREAT BECAUSE, YOU KNOW, MY PREFERENCE IS TO HAVE SOMETHING IN PLACE THE 1ST OF OCTOBER. SO, UM, GREAT. GOOD. OKAY. SO, UM, I'M JUST GONNA GO OVER THE, UH, PROPOSED AUDIT PLAN. UM, THERE WAS TWO CARRY FORWARD AUDITS, UH, THE FLEET RETIREMENT PROCESS FOLLOW UP, THAT WAS THE FIRST FOLLOW UP. AND THEN THAT SPECIAL PROJECT FOR THE COMMERCIAL REMODEL SALES TAX, WHERE I CIRCLED BACK AND I PICKED UP THE, UM, UM, THE PERMITS, UH, THAT WERE VALUED AT 25,000 TO 200. UH, THOSE HAVE BOTH BEEN COMPLETED. UM, AND FOR THE FOLLOW-UP AUDITS FOR THIS YEAR, IT'LL BE THE COMMERCIAL REMODEL SALES TAX, WIRE TRANSFER PROCESS, SHORT TERM RENTALS PROCESS, AND THE FLEET RETIREMENT PROCESS AUDIT. THIS WILL BE THE SECOND FOLLOW UP FOR, UM, THE ONE THAT WAS JUST COMPLETED. SO ON THE SHORT TERM RENTALS, IT'S, IT'S PROBABLY NOT YOUR PLACE TO TAKE THIS TO THE NEXT STEP. IT'S PROBABLY MORE THE CVV OR SOMETHING LIKE THAT. HAVE WE GONE AHEAD AND MOVED FORWARD WITH AIRBNB AND VRBO ON AUTOMATING THIS? UM, UH, LAST I SPOKE WITH STEPHANIE. I KNOW SHE ASKED ME FOR INFORMATION THAT I HAD, SHE REACHED OUT TO ME FOR THAT, BUT I DON'T REALLY KNOW WHERE WE'RE AT WITH THAT. AND THAT'S WHAT THIS FOLLOW UP WILL DETERMINE IS LIKE WHERE, WHERE WE'RE AT WITH ADDRESSING THOSE. WHAT DO WE JUST, CAN WE JUST ASK STEPHANIE TO PUT THAT TO THE TOP OF THE LIST OF SOMETHING TO GET DONE? ASK SARAH IF SHE KNOW SARAH, DO YOU KNOW? YEAH, WE, I CAN PUT THAT ON THE TOP OF STEPHANIE'S LIST TO GET BACK AND ANSWER. THANK YOU. PERFECT. OKAY. OKAY. SO THE NEW AUDITS THAT I'M PROPOSING, WELL, THE FIRST ONE IS ARPA, SUB RECIPIENT FUNDING. AS WE ALL KNOW THAT, THAT ACTUALLY WAS PUSHED UP. I STARTED THAT IN FISCAL YEAR 23. UM, YOU'VE RECEIVED THE PRELIMINARY REPORT. I JUST COMPLETED AN, AN INTERNAL REPORT TO, UM, ADDRESS SOME OF THE OPPORTUNITIES, UH, FOR IMPROVEMENT THAT I IDENTIFIED THROUGH THIS PROCESS. THAT REPORT NOW IS IN WITH MANAGEMENT TO, UH, [00:10:01] REVIEW AND PROVIDE RESPONSES TO THE RECOMMENDATIONS THAT WERE MADE, HOPING TO HAVE THAT OUT WITHIN THE NEXT SIX WEEKS. I'M HOPING THAT'LL BE COMPLETED. SO THE OTHER TWO AUDITS THAT I HAVE PROPOSED ARE, IT'S AN ANNUAL PERMIT RENEWAL AUDIT. UH, DURING THE PROCESS OF CONDUCTING ANOTHER AUDIT, I NOTED THAT IT APPEARS TO ME THAT WE HAVE PERMITS THAT ARE SUPPOSED TO BE RENEWED ON AN ANNUAL BASIS THAT ARE NOT RENEWING ON AN ANNUAL BASIS. SO, AND THIS IS BY ORDINANCE, SO IT'S NOT ONLY A COMPLIANCE ISSUE, BUT ALSO A POTENTIAL REVENUE ISSUE FOR THE CITY. THE OTHER ONE IS A POLICE OVERTIME AUDIT. THIS ONE'S BEEN KIND OF PUSHED FORWARD A COUPLE OF TIMES. THE PURPOSE OF THIS ISN'T TO DETERMINE WHETHER OR NOT WE SHOULD HAVE THE OVERTIME, AS WE ALL KNOW, PUBLIC, UH, SAFETY, THAT THAT'S, THAT'S JUST A BIG BUDGET ITEM FOR PUBLIC SAFETY. IT'S BECAUSE, UH, PD DOES HAVE, UM, THE, THE AMOUNT OF BUDGET THAT IS, UH, THAT GOES TOWARDS OVERTIME, IT'S PRETTY SIGNIFICANT. SO WE JUST WANNA MAKE SURE THAT THEY HAVE GOOD, UH, PROCESSES IN PLACE THAT THE OVERTIME IS BEING APPROVED PROPERLY AND THAT WE'RE JUSTIFYING IT. SO THAT'S THE PRIMARY PURPOSE OF, OF THAT AUDIT. SO, UH, AS IS TRADITION, UM, THERE'S A COUPLE OF ADDITIONAL AUDITS YOU CALL THESE, LIKE SUPPLEMENTALS THAT ARE THROWN ON THERE. THE INTENT IS THAT IF FOR SOME REASON I'M ABLE TO COMPLETE THE PLANNED AUDITS AND I HAVE TIME, I CAN PICK UP ONE OF THESE. UH, UNFORTUNATELY THAT'S NEVER BEEN THE CASE. BUT ANOTHER PURPOSE FOR HAVING THEM ON HERE IS IF FOR SOME REASON I CAN'T INITIATE, UH, AN AUDIT, LET'S SAY I GO INTO AN AREA, THEY'RE IN THE PROCESS OF, I DON'T KNOW, UM, UH, IMPLEMENTING A NEW SYSTEM OR SOMETHING LIKE THAT, AND SO THEY DON'T HAVE THE BANDWIDTH, THEN, UM, I DON'T HAVE TO CIRCLE BACK TO COUNCIL. I CAN JUST, UH, PICK UP ONE OF THESE AND MOVE FORWARD AND CONTINUE WORKING. SO THE TWO I SELECTED REALLY, UM, HAVE A LOWER, UH, HOURLY BUDGET. UM, I ANTICIPATE MAYBE 200 HOURS FOR EACH ONE OF 'EM. THE HOTEL OCCUPANCY TAX WOULD BE REVIEWING ONE OR TWO OF THE LOCAL HOTELS, UH, LIMITED SCOPE AUDIT OF THEIR REVENUES JUST TO MAKE SURE THAT THEY'RE ASSESSING THE OCCUPANCY TAX CORRECTLY AND REMITTING IT. UH, THE NEW CONSTRUCTION SALES TAX, UH, THIS IS BASED ON, UM, NEW CONSTRUCTION JOBS THAT, UH, WHERE THE CONTRACTOR HAS A SEPARATED CONTRACT ON THOSE, THE CONTRACTOR IS SUPPOSED TO ASSESS, UM, TAX SALES, TAX ON MATERIALS, AND THAT'S TO BE SUBMITTED TO THE LAKE CITY JURISDICTION. UM, AND SO THAT'S SOMETHING THAT, UH, WE JUST, I THINK COUNCIL IN, NOT LAST JUNE, BUT UH, JUNE BEFORE APPROVED A ORDINANCE THAT ACTUALLY NOW REQUIRES, UH, CONTRACTORS TO SUBMIT A COPY OF THEIR CONTRACT WITH THE, UH, WHENEVER THEY SUBMIT FOR PERMITS. SO THAT ENABLES ME TO BE ABLE TO GO IN AND TAKE A LOOK AT THIS. SO I THINK THAT ONE'S PRETTY IMPORTANT, UH, JUST ESPECIALLY AS NEW SALE, NEW HOME SALES PICK UP, UH, THAT COULD BE SIGNIFICANT. SO YEAH, IF THERE'S A HIGHER PRIORITY, I THINK THAT ONE WOULD BE PRETTY, THAT WOULD BE THE, THAT WOULD BE THE ONE TO PICK IN PREFERENCE PICK UP ON. OKAY. OKAY. SO, UM, I'M KIND OF WINGING IT. I DIDN'T PUT ALL OF THESE TOPICS ON THE, THE OVERHEAD BECAUSE I THOUGHT IT'D BE KIND OF HARD TO LOOK AT. SO THAT'S WHY YOU HAVE THE PRINTOUTS. UM, I DON'T KNOW, UM, IF YOU ALL HAD THE OPPORTUNITY TO REVIEW THESE, IF YOU WOULD LIKE TO DISCUSS ANY OF THE ITEMS ON THE TOPIC LIST OR YOU HAVE ANY QUESTIONS ABOUT THEM, OR IF THERE IS SOMETHING YOU'VE SEEN ON THERE THAT YOU, UM, LIKE HAVE A BURNING DESIRE TO DISCUSS AS BEING ON THE AUDIT PLAN IN LIEU OF MAYBE SOMETHING ELSE THAT WAS SELECTED. I'LL GIVE YOU A MINUTE JUST TO LOOK IT OVER. AND CANDACE, I KNOW WE TALKED EARLIER ABOUT THE BUILDING AND DEVELOPMENT PROCESS FOR PERMITTING. YES. AND, UM, JUST THE OVERALL PROCESS OF DEVELOPMENT, UH, YES. COMING TO THE CITY, I, I KNOW THAT YOU SIT ON THE COMMITTEE NOW THAT RICK IS CHAIRED AND UM, IT SEEMS LIKE WE'RE GOING IN THE RIGHT DIRECTION WITH THAT, BUT I DON'T WANT TO FORGET ABOUT IT IF THAT DOESN'T REALLY PAN OUT. OKAY. I, I THINK, THINK THE PROCESS OF DEVELOPMENT AND BUILDING PERMITS AND, AND, UH, ZONING ALL OF THAT AS ONE UNIT SHOULD BE LOOKED AT, UM, [00:15:01] IN THE FUTURE IF THIS DOESN'T WORK OUT. SO JUST KIND OF KEEP THAT IN. WELL, AND, AND, AND I AGREE AND I THINK EVEN WITH, UM, ONCE THE NEW PROCESSES ARE PUT INTO PLACE, IT'S NOT, IT'S NOT A BAD IDEA TO GO IN AND JUST MAKE SURE THAT WHATEVER WAS PLANNED OUT ACTUALLY IS HAPPENING. RIGHT. YEAH. OKAY. I, AGAIN, THE, UM, FOR THE SALES TAX ADDRESS VERIFICATION THAT HAD BEEN GOING ON FOR A LITTLE WHILE, I KNOW THAT WE HAD FOUND THAT THERE WAS, WELL NOT WE, YOU, YOU HAD FOUND THAT THERE WAS A, UH, A RESTAURANT, IT WAS KIND OF A WASH. MM-HMM. . SO DO YOU THINK THAT THAT THAT IS, THAT THERE'S MORE TO BE DONE? OR WAS THE AUDIT COMPLETED AFTER WE HAD ALREADY TALKED ABOUT THAT EARLIER? UM, ACTUALLY I THINK THAT'S SOMETHING THAT CAN BE DONE EVERY, LIKE THREE YEARS OR SO BECAUSE WE HAVE A FOUR YEAR LOOK BACK PERIOD. UM, SO WE CAN GO IN AND, AND TAKE A LOOK AT AT GIS AND SO FORTH. AND IT WAS JUST DONE RECENTLY. SO THAT'S ONE REASON IT WAS KIND OF PUSHED OFF. I, IT'S LIKE A KIND OF A PLACEHOLDER, BUT I DO THINK IT'S SOMETHING THAT NEEDS TO BE LOOKED AT. AGAIN, I, I WOULD LIKE TO SEE THAT ONE COME UP. IT JUST SEEMS KIND OF LIKE A LOW HANGING, KIND OF LIKE AN EASIER AUDIT TO BE ABLE TO GO THROUGH AND, AND TO FIND SOMETHING THAT'S NOT GONNA REQUIRE A WHOLE LOT OF ARGUMENT UHHUH TO GET THE MONEY FROM THE STATE. AND WHERE WOULD YOU SUGGEST THAT THAT BE? UM, OH, YOU WERE JUST ASKING ABOUT THE, UH, ABOUT THE OTHER POTENTIAL AUDITS. I WAS JUST SAYING THAT I'M IN FAVOR OF THAT ONE. OKAY. SO ON THE ADDITIONAL LIST. ON THE ADDITIONAL LIST, ADD THAT TO, SO, SO WOULD I, I WOULD LIKE TO SEE, WOULD WE RECOMMEND THAT IT WOULD, THE FIRST ONE TO, TO PICK UP AS THE POTENTIAL AUDIT WOULD BE THE, UM, THE SALES TAX AND THEN THIS WOULD BE LIKE A SECOND CHOICE IF THERE'S ADDITIONAL TIME. THAT'S, THAT WOULD BE MY CHOICE, BUT I DON'T KNOW HOW ANYBODY ELSE FEELS ABOUT IT. I THINK BOTH ARE WORTHWHILE. I, I DON'T MIGHT BE SPLITTING HAIRS ON WHICH ONE'S MORE IMPORTANT. UH, I THINK THEY'RE BOTH GOOD. I WOULD PROBABLY LEAN TOWARDS THE CONSTRUCTION ONE JUST BECAUSE WE HAVEN'T PERFORMED IT IN A WHILE AND THE NEW HOMES ARE PICKING UP. BUT WHAT SAYS THE BODY AS A WHOLE, WHY CAN'T 50 THE SALES TAX FOR EDUCATION, WE'VE ALREADY GOT AN EXPERIENCE DOING IT, SO I I WOULD, SHOULD BOTH, BUT THAT'S GONNA, WELL, OKAY, SO JUST, JUST SO YOU UNDERSTAND, IS THE AUDITS THAT WERE PROPOSED AS THE DUE AUDITS, THAT IS THE AMOUNT OF, OF HOURS THAT I HAVE AVAILABLE. OH. SO I DON'T HAVE ANY ADDITIONAL AVAILABLE HOURS BUDGET. THOSE, THOSE POTENTIAL ADDITIONAL AUDITS ARE LIKE FOR ME TO INSERT IF I HAVE TIME OR IF FOR SOME REASON I CAN'T PROCEED ON ONE OF THE PLANNED AUDITS, THAT THAT'S THE PURPOSE OF THAT. OKAY. THAT MAKES A LOT MORE SENSE. OKAY. OKAY. SORRY, I DIDN'T EXPLAIN THAT WELL. NO. SO THEN, SO I GUESS THE QUESTION WOULD BE, DO WE WANT TO REMOVE ONE OF THESE ONES IN BLUE? REPLACE IT? I, THE, I KNOW THAT IF I HAD TO PICK BETWEEN THE TWO OF THE CONSTRUCTION, I THINK WOULD BE THE BETTER POTENTIAL ONE. SO THE ARPA ONE, I ASSUME THAT'S ALREADY, I MEAN, YOU'VE ALREADY DONE IT. THAT'S PRETTY MUCH DONE. YEAH. I, SO YOU'VE ALREADY BURNED THOSE HOURS BECAUSE WE'RE LATE IN THE PROCESS. YEAH, I, I HAVE, UH, STILL SOME HOURS YET TO GO JUST TO WRAP UP THE REPORT AND STUFF, BUT IT'S PRETTY MUCH, YEAH. MM-HMM. , THE ONES WITH X'S ARE THE ONES THAT, ARE THOSE THE ONES YOU'VE ALREADY TURNED THOSE REPORTS TO THE CITY MANAGER? NO, THOSE ARE THE ONES THAT JOHN IDENTIFIED THAT HE THOUGHT MIGHT HAVE THE MOST VALUE. OKAY. AND WE, AND WE CERTAINLY RECOGNIZE THE SALES TAX ADDRESS THING WITH ALL THE DICKINSON ADDRESSES AND BUSINESSES. AND SO THAT'S A, I'LL SAY ONGOING MAINTENANCE ISSUE THAT WE HAVE TO REPEAT EVERY FEW YEARS TO MM-HMM. KEEP OUR, KEEP OUR BUSINESSES PAYING SALES TAX TO LEAD CITY. SO WHAT IF, WHAT IF WE DID THIS? WHAT IF WE DID AS THE, THE FIRST ALTERNATE, IF YOU HAVE TIME, THE NEW CONSTRUCTION SALES TAX AUDIT. OKAY. AND THEN FOR NEXT YEAR'S AUDIT PLAN, JUST KIND OF PUT IN THERE THAT A REVIEW OF THE, UH, OF THE GENERAL SALES TAX. OKAY. AND THEN PROBABLY RUN THE RUN JURISDICTION JURISDICTIONAL SALES TAX. MM-HMM. AND THEN RUN THAT ON A, I DON'T KNOW, LIKE A THREE YEAR REPEAT THREE YEAR. YEAH, THAT'S WHAT I WAS THINKING ABOUT EVERY THREE YEARS THAT COULD BE DONE. IS THERE ANY VALUE IN, UM, DEFINING A PROCESS FOR THAT SALES TAX AUDIT THAT COULD BE HANDED OFF TO LIKE AN [00:20:01] ADMIN TYPE INSTEAD OF TYING YOU UP WITH IT EVERY TIME? ONCE ONCE YOU BUILD IT UP SINCE IT'S A WASH, RINSE, REPEAT KIND OF THING NOW? I THINK THAT'S A REALLY GOOD POINT. YEAH, I THINK THAT, THAT, SO MAYBE INSTEAD OF DOING IT, CREATING A THING, WE ADD PROCESS, DEFINE A PROCESS FOR IT SO THAT CAN BE HANDED OFF TO SOMEONE AND IT CAN BE DONE ON A REGULAR BASIS. LIKE A ROTATIONAL THING. THAT'S ACTUALLY, IT'S, IT'S GREAT. DO THE NORTH SIDE ONE YEAR AND THE SOUTH SIDE. AND I, THAT'S SOMETHING I MIGHT BE ABLE TO, TO ACTUALLY JUST, JUST WORK ON. I WAS ABOUT SAY WORK THE SOUTH. ALRIGHT. I GUESS THE QUESTION WOULD BE WHO, WHO GETS THE RESPONSIBILITY? I GUESS THAT'S UP TO, TO JOHN ON JOHN TO MAKE THAT DECISION. YEAH. YOU MEAN THE GROWTH OPPORTUNITY THE GROWTH OPPORTUNITY. ANGIE'S LISTENING TO EVERYTHING WE'RE SAYING AND SHE'S THINKING, WHERE'S THE STAFF COMING FROM? BUT SHE'LL WORK IT OUT FROM THE MONEY SHE'S GONNA FIND IN THE SALES TAX AUDIT. THERE YOU GO. IT ALL WORKS TOGETHER. WE'RE WE'RE, WE'RE, WE'RE READY AND WILLING. OKAY. SO ARE, WHAT ARE YOUR THOUGHTS ON THE PROPOSED PLAN? DO YOU FEEL COMFORTABLE WITH THAT? WHAT I PROPOSED. OKAY. ALL RIGHT. WELL THANK YOU SO MUCH FOR YOUR TIME. I THINK THIS IS, I THINK THIS IS GONNA WORK SO MUCH BETTER THAN WHAT'S HAPPENED IN THE PAST. I FEEL LIKE THAT JUST BEING ABLE TO HAVE THIS DISCUSSION IS, IS REALLY HELPFUL TO ME. SO I REALLY APPRECIATE IT. OKAY. THANK YOU. ALRIGHT. AND THEN AT 5 24 THERE BEING NO FURTHER BUSINESS, THIS MEETING IS ADJOURNED. * This transcript was created by voice-to-text technology. The transcript has not been edited for errors or omissions, it is for reference only and is not the official minutes of the meeting.