Sep 22, 2020 McKinney Economic Development Corporation on 2020-22-09 8:00 AM

[00:00:05]

I DON'T KNOW IF THIS IS THE MAYOR'S GAVEL. ER DID ANY OF THESE. OH, MY DIVORCE CASE THAT MAYOR SAYS MAYOR. NOW WE'RE IN ORDER. HOW ABOUT THAT? ALL RIGHT. GOOD MORNING, EVERYBODY.

WHAT'S UP? CONVENE. IT IS TUESDAY, SEPTEMBER 22ND 2020, THIS IS THE RARELY SCHEDULED

[CALL TO ORDER]

[Minutes of the McKinney Economic Development Corporation Work Session of August 7, 2020.]

ALL RIGHT. MOTION PASSES UNANIMOUSLY. ALL RIGHT. WE'RE GOING TO MOVE ON TIO. 20-817

[Minutes of the McKinney Economic Development Corporation Meeting of August 18, 2020.]

MOTION BY MR KRUGER A SECOND BY MR JONES. LET'S ALL VOTE. ALL RIGHT, AND THE MOTION PASSES UNANIMOUSLY. ITEM 20 DAYS. 0818 BOARD IN LIAISON UPDATES. I'VE GOT A COUPLE OF THINGS I'D LIKE

[Board and Liaison Updates Board Chairman City of McKinney Chamber of Commerce Community Development Corporation Visit McKinney]

WE'RE LOOKING FORWARD TO HAVING YOU AS PART O AND ALSO KHUN REPORT THAT OUR NEWEST REGULAR BOARD MEMBER KHORKINA IS HERE THIS MORNING. WELCOME KURT. KURT IS NO STRANGER TO THESE CHAMBERS. BUT WE'RE LOOKING FORWARD TO SEEING HIM AT OUR NEXT MEETING OCCURRED. HAVING BEEN SWORN IN EARLIER THIS MORNING BY THE CITY SECRETARY WILL BE JOINING US FOR EXECUTIVE SESSION DISCUSSION ITEMS LATER IN THE MEETING, ALTHOUGH HE WILL NOT BE ABLE TO PARTICIPATE, DISCUSSION OR VOTE IS AIRED OBSERVANCE ROLE AT THIS POINT HEY. FEDERAL RECORDS. AND ALSO, I'D LIKE TO THANK MR BILL KRUEGER FOR SERVICES ARE ALTERNATE FOR THE PAST YEAR. BILL. I APPRECIATE THE COMMITMENTS YOU SHOWED THE PREPAREDNESS YOU EXHIBITED AND WHEN YOU WERE ASKED TO PARTICIPATE, YOU BROUGHT SOME KEEN INSIGHT AND PERSPECTIVE TO US AND WE THANK YOU VERY, VERY MUCH. WE LOOK FORWARD TO SEEING YOU IN CITY SERVICE SOMEWHERE ELSE. I'M SURE DOWN THE LINE. I KNOW. ALL RIGHT. THANKS, BILL.

OKAY. CITY OF MCKINNEY IS UP NEXT. JUST GRAND. GOOD MORNING. GOOD MORNING, MR CHAIRMAN, MR PRESIDENT, MEMBERS OF THE BOARD. PAUL GRIMES, CITY MANAGER. JUST COUPLE ITEMS QUICK UPDATES FOR YOU. NOTHING TOO LONG. THIS MORNING. WE DID ADOPT A BUDGET ON SEPTEMBER 15TH THIS'S THE FISCAL YEAR 21 BUDGET. UH $640 MILLION ALL FUNDS THAT INCLUDES ALL OF OUR ENTERPRISE FUNDS OR CAPITAL IMPROVEMENT FUND, ETCETERA. IT'S 101 $159 MILLION OPERATING BUDGET. THAT OPERATING BUDGET IS THE BUDGET THAT TYPICALLY, FUNDS ARE DAY TO DAY OPERATIONS, SALARIES, ET CETERA. OUR TAX RATE WAS REDUCED FROM 0.5186. I BELIEVE IT WAS 2.508. OH, AND WE'RE OFF TO THE RACES HERE IN ABOUT A WEEK AND A HALF. BUT AS YOU KNOW, BUDGETS ARE CYCLES. THEY'RE NOT LINEAR, SO WE GO IN CIRCLES IN A SENSE, UH, AUDIT ARE YOUR FISCAL YEAR IN IN 2020 BUDGET, WHICH WILL END HERE IN ABOUT A WEEK AND A HALF. WE'LL START THAT OUGHTA PROCESS AND COME BACK TO THE COUNCIL WITH YOUR REPORT. AND THEN, OF COURSE, WE WILL START PREPARATION FOR THE NEXT BUDGET. WITHIN A COUPLE OF MONTHS. OUR STAFF GETS A LITTLE BIT OF A BREAK IN TERMS OF BUDGET PREPARATION, BUT NOT TOO LONG BECAUSE IT REALLY STARTS IN EARNEST IN JANUARY AND THEN THE CITY COUNCIL WILL MEET IN

[00:05:04]

AND IT'S GOOD THAT THE COUNTY IN THE COMMUNITIES WHO CAME TOGETHER AND COLLABORATED ON MAKING THIS MONEY AVAILABLE, SO WITH THAT I WILL STAND FOR ANY QUESTIONS. TO BE CLEAR. SO IF YOU'VE GOT THE MONEY THROUGH THE CITY, YOU DON'T QUALIFY FOR THE COUNTY MONEY. THAT'S A GREAT QUESTION. I'M SORRY I SHOULD CLARIFY YOU WOULD STILL BE QUALIFIED. YOU JUST WOULD NOT BE ABLE TO GET MORE THAN $25,000. SO IF YOU'VE GOT $10,000 UNDER THE CITY'S PROGRAM, YOU'D STILL BE ELIGIBLE FOR UP TO $15,000 TO THE COUNTY'S PROGRAM. ANYONE ELSE. QUESTIONS FOR PAUL? OKAY. THANKS, PAUL. APPRECIATE IS ALWAYS. ALL RIGHT. GOOD MORNING. LISA HER MISS CHAMBER OF COMMERCE. WELCOME BACK. GOOD MORNING. I'M SMILING UNDER MY MASK. GOOD MORNING. CHAIRMAN BOARD. PETER. AT LEAST THE HERMITS MCCAIN CHAMBER OF COMMERCE. COUPLE OF UPDATES FOR YOU, SO WE HAVE. UH CHANGE A LOT OF OUR PROGRAMMING THIS YEAR, OBVIOUSLY ON DH. ONE OF THOSE IS OUR WOMEN'S ALLIANCE OF MCKINNEY WOMEN'S BUSINESS CONFERENCE. IT'S GOING TO BE TAKING PLACE THURSDAY. AND THANK YOU. DR DRE FELT A SHE'S ONE OF THE PANELIST DURING THAT DAY, SO WE'RE DOING IT ALL VIRTUAL VIA ZOOM. HOWEVER WE'RE GOING TO BE BROADCASTING FROM. CHRIST FELLOWSHIP CHURCH. THEY HAVE AMAZING PRODUCTION.

CAPABILITIES WITH CAMERAS AND SWITCHBOARDS. ANDI ALL OF THE THINGS THAT WE DON'T HAVE IT THE CHAMBER BUT THEY ARE WORKING WITH US TO BE ABLE TO MAKE IT MORE OF A TED TALK TO KIND OF FEEL SO WE'LL HAVE AH, A GREAT CONFERENCE COMING UP PROFESSIONAL DEVELOPMENT OPPORTUNITIES FOR PROFESSIONAL WOMEN WITHIN OUR COMMUNITY. IT'S ALSO A GOOD WAY FOR OUR STAFF TO LEARN THE TECHNICAL SIDE OF THAT BECAUSE WE'RE GOING TO BE DOING THE SAME THING FOR THE STATE OF THE CITY, WHICH IS NOVEMBER 5TH. SO YOU'LL BE GETTING MORE INFORMATION ABOUT THAT. WE'LL HAVE OBVIOUSLY OUR MAYOR PAUL GRIMES OR CITY MANAGER, SUPERINTENDENT SCHOOLS ROOMMATE DANIEL AND COLLIN COLLEGE PRESIDENT NEIL MACKIN, WHO WILL BE SPEAKING IN PROVIDING UPDATES. THE STATE OF ALL OF THEIR DIFFERENT ORGANIZATIONS THIS YEAR, YOU'LL NOT WANT TO MISS THAT IT WILL BE VIRTUAL BUT AGAIN WILL BE HAVING MORE OF THAT. THE FEEL OF HAVING A CONFERENCE AND NOT JUST EVERYBODY AND BOXES ACROSS YOUR SCREEN. SPEAKING OF PROFESSIONAL DEVELOPMENT, ARGUING PROFESSIONALS IN OUR LEADERSHIP ALUMNI NETWORK ARE WORKING ON A SIRI'S AT PROFESSIONAL DEVELOPMENT SEMINARS THAT WILL HAPPEN ACROSS THE SPAN OF THREE DIFFERENT. MORNINGS SO HAPPY TO SHARE THAT INFORMATION WITH YOU. WE'RE TRYING TO PROVIDE AS MUCH OF THAT TYPE OF BUSINESS. YOU KNOW, EDUCATION AND DEVELOPMENT AS WE CAN FOR OUR BUSINESSES BECAUSE. AS WE'RE NOT ABLE TO MEET IN PERSON. THERE'S SOME LACK OF THAT. TRANSLATE WELL, VIA NO VICE. TIRED OF LOOKING INTO A SCREEN, SO WE'RE TRYING TO TRANSLATE AND PROVIDE HIGH QUALITY. PROFESSION DEVELOPMENT AFFORDABLE COST FOR MANY OF OUR BUSINESSES THAT ARE OUT THERE, UM, LEADERSHIP MCKENNEY. I JUST WANT TO MAKE MENTION OF THAT MANY OF YOU ARE ALUMNI OF THAT PROGRAM, SO. WE HAVE POSTPONED LEADERSHIP MAN, KENNY, WE'RE GOING TO BE STARTING IN JANUARY, SO IT WILL NOW RUN ON

[00:10:05]

WE'LL HAVE MORE INFORMATION FORTHCOMING ABOUT THAT AS WELL. I JUST WANNA SAY THANK YOU TO JIMMY DC FOR SUPPORTING OUR GOLF TOURNAMENT THAT HELPS US TO FUND ALL OF THESE PROGRAMS THAT I'M TALKING ABOUT TODAY. APPRECIATE YOUR SUPPORT AND ALSO ALLOWING US TO WEAR YOUR SWAG YOUR SHIRTS IN YOUR HATS. WE GOT TIO TIO REPRESENT UNIQUE. MCKINNEY S O. THAT WAS A LOT OF FUN. AND WITH THAT, I'LL STAND FOR ANY QUESTIONS. ANY QUESTIONS? LISA, TAKE IT UP QUITE A BIT OF YOUR TIME. THANK YOU. WELL, THAT'S QUITE ALL RIGHT. HEY, AND CONGRATULATIONS.

I'M PULLING OFF THE GOLF OUTING THIS YEAR. I KNOW THE CHALLENGING SET OF CIRCUMSTANCES, BUT I THINK YOU DID A GREAT JOB GIVEN WHAT SHE HAD TO DEAL WITH. REALLY? YES WELL AGAIN, IT'S BEEN A FUN YEAR. I THINK ALL OF US EVERY BUSINESS OWNERS HAD TO LEARN HOW TO ADAPT AND CHANGE AND. IT'S WERE. WE'RE UP FOR THE CHALLENGE. SO IT WAS. IT WAS GOOD. THANK YOU. WELL, THANKS, LISA. YOU'RE ALWAYS A GREAT PARTNER, COMMUNITY DEVELOPMENT CORPORATION. I DON'T SEE CINDY HERE THIS MORNING. THAT REPORT WAS INCLUDED IN YOUR PACKET.

SPEAKING OF GREAT PARTNERS D TO GET DEEDEE GARA VISIT MCKINNEY COME ON UP. GOOD MORNING. THANK YOU FOR THE OPPORTUNITY TO SPEAK. I GAVE JOANNE AH, A LITTLE PACKET AND THIS IS THE TRAVEL TEXAS TRAVEL ALLIANCE 87TH. LEGISLATIVE AGENDA. UM, SO BASICALLY, THERE'S FIVE PILLARS THAT THEY'RE FOCUSING THEIR LEGISLATIVE ISSUES ON AND IT'S TO PROMOTE TECH TRAVEL ECONOMIC GROWTH. WORKFORCE DEVELOPMENT, TRANSPORTATION AND INFRASTRUCTURE SAFETY, SECURITY AND ACCESSIBILITY. SO I WILL LEAVE THAT FOR YOU ALL TO READ ON YOUR OWN TIME. UM, BUT I ALSO WANT TO THANK THE CHAMBER. UM, LEADERSHIP ALUMNI FOR THEIR PARTNERSHIP VISIT MCKINNEY WAS PROUD TO SPONSOR THE 9 11 MEMORIAL. THE PATRIOT DAY WALKING TRIBUTE OUT A MEMORIAL MITCHELL MORE HOPE PARK. UM AND WE HAD GREAT SUCCESS WITH IT. ANDI WE HAD A LOT OF COMPLIMENTS, AND WE'RE REALLY EXCITED. UH, LEADERSHIP ALUMNI HAS DECIDED TTO. ADD THAT AS A PIECE TO THE 9 11 IF WE DO GET TO HAVE THE CEREMONY NEXT YEAR. SO THAT WAS REALLY EXCITING.

AND I JUST WANT TO THANK PAUL FOR LETTING US USE THE PARK. A CZ. WELL AS CHIEF CONLEY, UM AND CHEAP KISSNER, THE MAYOR MAILLY AND CHIEF TURNER, WHO REALLY ASSISTED US WITH THE LAYING OF THE WREATH ON THAT DAY. AND I ALSO WANT TO REMIND EVERYBODY THAT THE SITE CYCLE ONE OF OUR PROMOTIONAL GRANTS IS OPEN AND IT WAS. THE DEADLINE WAS DUE OCTOBER 5TH AND WE HAVE EXTENDED IT TO THE 19TH. SO WE HAVE $15,000 TO GIVE OUT THE FIRST CYCLE, SO JUST WANT TO MAKE SURE EVERYONE KNOWS THAT. UM AND MY REPORT IS ATTACHED AND I'LL STAND FOR ANY

[00:15:05]

[Consider/Discuss MEDC Monthly Organizational Report]

[Consider/Discuss MEDC Monthly Metrics Dashboard Report]

SO VERY SIMILAR TIO. THINGS THAT ARE TRENDING FOR US IS AGAIN THE PROJECT PIPELINE WE'RE SEEING IN A HISTORIC LEVEL OF PROJECTS THAT COME INTO THE PIPELINE. CAPITAL INVESTMENT. WE ARE AT 71% FOR THE YEAR, WHICH WE HAD AGGRESSIVE GOAL, THE HIGHEST NBC HAS EVER DONE IS OVER A LITTLE IN OVER 200. MILLION DOLLARS. WE'RE CURRENTLY AT 1 49 SO. GREAT PROJECT ACTIVITY IN THIS IN THIS TIME AND. WE'RE CONTINUING. TIO MEET ALL OF OUR METRICS FOR MOST OF THEM THAT ARE REASONABLE FOR US TO BE ABLE TO A COMEDY THIS YEAR DUE TO A LOT OF COVERT RELATED THINGS, THINGS LIKE OUR FAMILIARIZATION TOURS. WE'VE NOT BEEN ABLE TO DO DUE TO COVET. THE COMMUNITY FORUMS THAT WE HAD PLANNED FOR GETTING OUT MORE INFORMATION TO THE COMMUNITY. WE'RE PIVOTING AND WE'RE TRYING TO SEE HOW WE CAN POTENTIALLY DO THOSE IN A VIRTUAL WAY. BUT. KNOWING THAT AGAIN FOLLOWING THE TREND THAT EVERYONE IS GETTING VERY. TO SAY AH, FATIGUED BY VIRTUAL MEETINGS. WE WANT TO MAKE SURE THAT THE ONE WE PLAN IS ACTUALLY WELL ATTENDED AND RELEVANT AND NOT PASSED OVER JUST FROM THE VIRTUAL NATURE OF IT. UM, OBVIOUSLY VERY VISITS HAVE BEEN CHALLENGING. WE'VE BEEN TRYING TO ACCOMMODATE VIRTUAL. VIRTUAL BERRY VISITS, BUT JUST THE IN PERSON VISITS THAT WE'VE HISTORICALLY DONE ARE AGAIN CHALLENGING TO DO THIS YEAR SO COVETED. SET US BACK QUITE A BIT IN SEVERAL METRICS, BUT NOT IN A NOT COMPLETELY. THIS IS A GREAT CHANCE FOR US TO INCREASE OUR DIGITAL PRESENCE, WHICH WERE WORKING VERY HARD AND DOING.

AND GETTING THE WORD OUT THERE THAT WE'RE STILL OPEN FOR BUSINESS. IT'S GOOD TO SEE THE WEBSITE TRAFFIC IS UP THE EMAIL MARKETING IS A LITTLE BIT AHEAD OF GOAL PLANT SO. COVERT. BE DARNED. WE'RE MOVING AHEAD, RIGHT? THAT'S RIGHT. VERY GOOD. ANY OTHER COMMENTS OR QUESTIONS? PETER ON THAT. OKAY. LET'S MOVE ALONG TO THE TO THE REGULAR AGENDA. AND. ITEM 20-8

[Consider/Discuss/Act on July 2020 Financials]

[00:20:07]

[Consider/Discuss/Act on August 2020 Financials]

[Consider/Discuss/Act on Finance Committee Report and Innovation Fund Cap]

OUR BALANCE SHEET IS REALLY QUITE STRONG. WE'RE IN GREAT SHAPE. MOVING ON. CAN YOU MOVE IN ON HER AGAIN? MAYBE. SO THE INCOME SO OKAY, SARI, AND I'M SAYING THIS IS WHAT WE I TALKED

[00:25:05]

TECHNICALLY, IT LOOKS LIKE WE HAVE IN A LOST POSITION, BUT. ACTUALLY QUITE OUT OF THE YEAR BEFORE WE HAD A NET GAIN OF, YOU KNOW, CLOSE TO 4.5 MILLION OR SO AND SO WE'RE ONLY SEEING A DEFICIT OF 2.3 MILLION. SO WE'RE LOOKING AT A TWO YEAR ACROSS THE YEARS WE PROFITED.

CLOSE TO $3 MILLION. THAT'S JUST THE WAY TOM IN THE PROJECT'S WORK, AND THAT'S WHERE THE BEST WAY I CAN EXPLAIN THOSE ARMY CASES IT MORE ACCURATE TO SAY THAT'S REALLY NOT IT INCOME AS MORE AS OPPOSED TO CASH FLOW. CORRECT SO JUST THE TAYA TIMING OF THE PAYMENTS AND, UM WE'VE BEEN MORE ACTIVE FOR THE PROJECTS AND MORE ACTIVE WITH FOLLOWING UP WITH THE AGREEMENTS IN THE PAST TWO YEARS, AND SO WE SHOULD SEE IT START TO STABILIZE WHERE THIS SCENARIO THAT DOESN'T HAPPEN AS OFTEN IN THE FUTURE. MY COMMENT ABOUT THE FUND BALANCE. I THINK THAT WE COULD HAVE. SO WHAT'S REMAINING THERE KIND OF SHOWS ITS POSITIVE. CAN YOU PUT THAT $10 MILLION? THEY'RE KIND OF. CORRECT. SO, LIKE OUR FUND BALANCE AT THE END OF LAST YEAR, YOU KNOW, WE WE'VE PROJECTED TO BE LIKE NINE MILLION IN WITH THE NIGHT GAME. WE GOT UP TO 12 MILLION. SO NOW WE'RE SHINING GOING BACK DOWN TO 10 MILLION AFTER THIS FISCAL YEAR. WALK US THROUGH PAGE THREE INCOME STATEMENT THAT THIS WAS. A LITTLE BACKGROUND BEFORE I CAN DESCRIBE THIS PAGE IS GOING TO BE FUNDAMENTAL FOR EACH OF YOU WHEN YOU'RE LOOKING AT EVERY EXECUTIVE SESSION MOVING FORWARD IN THE PROJECTS. THIS IS KIND OF BE, UM. JUST THE BEST WAY TO DECIDE ON PRODUCTS FOR BUT EITHER WAY, THE BACKGROUND WHAT WE USED TO DO UP UNTIL TWO YEARS AGO WAS WHEN THE PROJECT WAS EXECUTED AND THE GREEN WAS FULLY SIGNED BY BOTH PARTIES. WE WOULD HOLD THOSE FUNDS FOR THAT PROJECT TO SAY WE HAD A MILLION DOLLAR PROJECT, AND THE PAYMENT WAS UNTIL FIVE YEARS IN THE FUTURE, WE WOULD HOLD THAT MONEY FOR FIVE YEARS. YOU KNOW THE ISSUE WITH THAT IS WE'RE SITTING ON MONEY THAT COULD BE USED FOR OTHER PURPOSES. SO. TWO YEARS AGO, WE SWITCHED TO A CASH FLOW PERSPECTIVE, WHICH WE DID IS WE'RE LOOKING AT ONE ACCOUNT IS OUR PROJECT THAT COUNTS. WHEN YOU'RE LOOKING AT YOUR BUDGET. THIS IS ALL OF THIS IS JUST A SNAPSHOT OF THIS ONE ACCOUNT IN A DIFFERENT WAY OF BUDGETING. ALL THE OTHER ACCOUNTS OUR BUDGET IN THE SAME WAY THEY'RE OPERATING FUNDS. SO JUST. MAKES SENSE TO KEEP THEM THE SAME, BUT SO WE START OFF OF THE TOP.

THAT'S OUR ANNUAL BUDGET. WE'RE PROJECTING OUT FOUR YEARS OF OUR BUDGET SO YOU CAN SEE THAT $12.85 MILLION FOR THIS YEAR WAS FOUR MILLION PULLED OVER FROM LAST YEAR, WHICH GOT US UP TO THAT $40.8 MILLION NEXT YEAR. WHERE YOU SEE THE $8 MILLION. IN 6.5 AND 6.5. UM WE WILL USUALLY KEEP IT AT EIGHT MILLION LESTER'S FUTURE PROJECTS OR SOMETHING THAT WE NEED TO LOWER THAT IMPROPRIETY. PETER'S GUIDELINES WE'VE LOWERED 22 23 TO 6.5 MILLION.

I'VE BEEN SAYING THAT WE GO DOWN TO THE NEXT SECTION, THE LITTLE SECOND LINE AND THAT'S IT'S A SUMMARY. WE HAVE DETAIL ALSO, BUT THE SUMMARY OF ALL THE EXPECTED PAYMENTS. THIS IS ALL THE ACTIVE AGREEMENTS WE CURRENTLY HAVE. WE'VE ALLOCATED THEM OUT IN THE YEARS THAT WE EXPECT TO PAY THEM OUT AS WELL. SO THIS GIVES YOU AN IDEA. YOU KNOW, FOR PHYSICAL OR 20. WE ONLY HAVE $4.4 MILLION LEFT BECAUSE WE'RE NEAR THE END OF THE FISCAL YEAR. 21. WE'VE ALLOCATED $5.5 MILLION OF OUR $8 MILLION.22. WE'VE ALLOCATED THREE MILLION OF OUR 6.5 MILLION AND SO YOU SEE THE REMAINING FUNDS WE CAN ALLOCATE AT THE VERY BOTTOM FOR EACH YEAR. SO WHENEVER YOU ALL ARE LOOKING AT A PROJECT AND YOU COULD SEE THE MILESTONES OF WHEN YOUR THAT YOU KNOW THAT AGREEMENT MAY BE PAID OUT. EATING THE DUCT IN YOUR HEAD BEFORE APPROVED THAT KIND OF SCENE WHERE WE STAND AND STUFF, FISCAL YEAR 20. WE'LL HAVE OUR YEAR TODAY PROJECTS PAID. WE'VE PAID $10.9 MILLION THIS YEAR, SO THAT'S HOW WE GET TO THAT 480,000 LEFT. THIS YEAR AT THE END OF EVERY YEAR, SO AT THE END THE FISCAL YEAR 20 WILL ROLL THAT 482,000 OVER TO 21. SO YOU CAN KIND OF GET THE CARRYING TOTAL. SO WE'RE LOOKING AT PROBABLY CLOSE TO $3 MILLION.21. STILL HAS NOT BEEN ALLOCATED. UM, AND SAYING THAT.

WE DO HAVE PROMPTED PROJECTS COMING UP IN THE PILE OF PIPELINE. I'M SURE YOU'RE AWARE SO MY ONLY RECOMMENDATION IS JUST YOU KNOW, WE'LL KEEP THIS AN EXECUTIVE IS EXACTLY OBSESSION, BUT JUST BE MINDFUL. DOGS WERE KEEPING IN ACCORDANCE WITH THE CASH FLOW. AND ATTORNEY QUESTIONS ON THIS BEFORE HE MOVED TO THE INNOVATION FUND. RUSSIANS. SO IT WOULD BE FAIR TO CHARACTERIZE THAT OUR FINANCIAL POSITION IS SOLID, STRONG, BUT ALSO WE NEED TO BE VERY PRUDENT GOING FORWARD, RIGHT? WE'VE BEEN. YOU KNOW, APPLAUD INSTALLED YOUR WE'VE BEEN VERY ACTIVE THE PAST YEAR AND SO IN DOING SO WE'VE ALLOCATED A LOT OF THE FUNDS OVER THE NEXT FOUR YEARS. THE FUND BALANCE YOU KNOW, IS ALWAYS AN OPTION.

[00:30:02]

CORRECT. OKAY. THANK YOU. EVERYBODY GOOD. GOOD PRESENTATION CHANCING. YEAH, THIS IS THIS IS GOOD WORK. OKAY. INNOVATION FUND, SO THIS IS THE SAME THING. IT'S JUST SHOWING IF WE SET A CAP FOR $1 MILLION ANNUALLY FOR THE NEXT THREE YEARS WHAT THAT DOES TO OUR BOTTOM LINE NUMBERS. WE'VE ALREADY HAVE INNOVATION FUND ACTIVE PROJECTS AND THAT SHOWING SO, YOU KNOW. PRIOR, PAIGE HAD A SUMMARY. THIS SHOWS THE TOTAL REGULAR PROJECTS AND WHEN WE'RE EXPECTING TO PAY THOSE OUT, THEN IT GOES INTO INNOVATION FROM PROJECTS THAT TOP WINE IS HOME AGREEMENT THAT HAVE ALREADY BEEN EXECUTED. AND THE BOTTOM LINE IS IF WE IF YOU'LL APPROVE A MILLION DOLLAR CAP. WHAT YOU KNOW THERE ARE MANY BALANCE WHICH OF THOSE YEARS. THEN THAT WE SHOULDN'T OPEN IT UP FOR DISCUSSION AT THIS POINT FOR ANY GUIDANCE. IT WAS THE COMMITTEE'S SUGGESTION THAT WE ENTERTAIN A DISCUSSION ABOUT OUR INNOVATION FUNDS. HOW SHOULD WE SHOULD WE CAPPED THAT INNOVATION FUND ON AN ANNUAL BASIS? THERE'S CERTAIN PERSONALLY SPEAKING OF NATURE'S A CERTAIN ELEMENT OF CONTROL ASSOCIATED WITH THAT. THE ILLUSTRATION HERE IS FOR A MILLION DOLLARS JUST TO GET THE CONVERSATION STARTED. BY NO MEANS IS IT SUGGESTED AS A FINAL NUMBER OR ANYONE'S MANDATE. SO ANYONE HAVE SOME THOUGHTS ON THAT? BILL YOU WERE. YOU WERE VERY MUCH INVOLVEMENTS. YEAH, I WAS. I LIKE THE MILLION DOLLAR NUMBER. UM ANYTHING. ANYTHING CLOSE TO THAT, I THINK IS GOOD. IT GIVES THE STAFF DISABILITY. AND, UM I THINK IT ALSO JUST CONTROL AND OVERSIGHT. START THAT WE CAN.

MONITOR WHAT'S GOING ON WITHOUT GETTING TOO DEEP INTO A HOLE. MICHAEL. I MEAN, I KNOW WE HAVE A LOT OF CONTROL IS ALREADY IN PLACE WITH INNOVATION FUND WE HAVE AH, NOW WE HAVE SET UP AN INNOVATION FUND COMMITTEE WITH JOE AND DR FELTUS. I'M OR WOULD LIKE TO LOOK AT IT MORE ON A PERCENTAGE BASIS VERSUS JUST SLAPPING A MILLION DOLLAR NUMBER ON IT BECAUSE IT WOULD BE GOOD YEARS AND BAD YEARS. IT COULD BE A PERCENTAGE OF THE NO REMAINING. NO. FUNDS ALLOCATED.

WE HAVE AVAILABLE TO USE FOR THE YOU KNOW TO PUT IN THERE, BUT. EVERYBODY'S OKAY WITH A MILLION DOLLARS JUST PUTTING THE ARBITRARY MILLION DOLLAR NUMBER ON THEM. I MEAN, I JUST FEAR THAT WE MIGHT BE COMING BACK REVISITING THIS, PERSPECTIVE ON AS WELL. SOME OF THE THINGS WE TALKED ABOUT WASS. LOOKING AT THE AVAILABLE FUNDS TO ALLOCATE FROM THE CURRENT YEAR WERE IN. UM, THAT WAS ONE OF THE CONSIDERATIONS FOR LOOKING AT SETTING THRESHOLDS ON INNOVATION FUND DOLLARS. SO, FOR INSTANCE, IN A YEAR THAT SO SAY BETWEEN YEARS 22 23 WERE SHOWING THAT IF WE FUND NO MORE PROJECTS BETWEEN THERE. YOU KNOW THOSE TWO YEARS WE'RE GOING TO CARRY OVER $2.6 MILLION. THAT LENDS ITSELF TO A SITUATION TO SAY YES. A MILLION DOLLAR CAP FOR INNOVATION ON PROJECTS. IT'S FEASIBLE THAT YEAR IF YOU'RE LOOKING AT 22 21.

MIND YOU SOME OF OUR PROJECTS TO THE COMPLIANCE REASONS WON'T GET PAID OUT. AND F Y 20 AND THAT FUN THOSE FUNDS WILL CARRY OVER SO THE 4 82 LEFT OVER AT THE END OF THE YEAR. IS NOT INDICATIVE OF WHAT ACTUALLY WILL BE CARRIED OVER, SO IT'S WAY MENTIONED. SOCIALIZED BRIEFLY LOOKING AT WELL AT THE END OF THE YEAR. WHAT IS THE ACTUAL CARRY OVER INTO THE NEXT YEAR AND LOOKING AT. SETTING A CAP BASED ON REMAINING FUNDS FROM PRIOR YEAR. SO IF WE KNOW THAT WE'RE GONNA HAVE A SOLID $750,000 CARRY OVER. INTO THE NEXT YEAR AND MAYBE FOR A YEAR.

21 $750,000 IS THE CAP FOR INNOVATION FUND, BUT THAT WILL THAT WILL CHANGE YEAR TO YEAR.

BASED ON WHAT REMAINING FUNDS WE HAVE LEFT OVER. THAT WAS ONE OF THE WAYS WE SOCIALIZED.

FUNDING INNOVATION FROM PROJECTS. IT'S JUSTICE FEASIBLE TO SAY, YOU KNOW WHAT? WE'LL SET A CAP. ANNUALLY OF A MILLION DOLLARS, ASSUMING WE HAVE A MILLION DOLLARS, TOO.

DONKEY TO IT. JUST A LITTLE BIT MORE HISTORICAL PERSPECTIVE ON SOME OF THE CONVERSATION. BRIAN.

I'M SORRY, BRIAN. YOU WANNA JUST GO AHEAD SO I WOULD KIND OF ALONG PUT, PETER SAID I WOULD BE COMFORTABLE SAYING, YOU KNOW. IF WE HAD A MILLION DOLLAR BUDGET FOR THE YEAR,

[00:35:02]

YEAH, I ONLY CONCERN I HAVE, I GUESS, LITTLE DEVIL'S ADVOCATE HERE. WHAT HAPPENS IF WE HAVE ROBUST YEAR AND. WE HIT THAT MILLION DOLLAR MARK AND THEN PROUD. THE NEXT PROJECT COMES IN. AND ULTIMATELY WHAT WE END UP DOING, WHICH I'VE SEEN IN THE PAST US. WE JUST CALL IT SOMETHING ELSE SO THAT WE CAN FUND IT. I MEAN, IF WE'RE GONNA HOLD IT TO A MILLION DOLLARS, OR WE'RE GOING TO HOLD IT $2 MILLION BECAUSE. YOU KNOW, I LIKE THE IDEA THAT CAP SO I'M NOT AGAINST IT. I JUST. I HAVEN'T BEEN MY CONCERN NECESSARILY. IN MY MIND, PUTTING THE MILLION DOLLARS CAP ON SIMPLY PROVIDES A BREAK. WHY. IT'S A GOOD YEAR, AND SOMETHING ELSE GETS GOING AND ANOTHER DEAL. GOODBYE. ALWAYS COME BACK TO THE BOARD AND ON A ONE OFF BASIS, GRANT ACCEPTANCE THAT'S KIND OF MY THOUGHT PROCESS. WHAT? I HEAR WHAT YOU'RE SAYING. I JUST THINK IT'S SOMEWHAT. IT BECOMES SOMEWHAT ARBITRARY AT THAT POINT. I MEAN, I. I LIKE THE IDEA, QUITE FRANKLY OF. OF A MAXIMUM INVESTMENT ON AN INNOVATION FUND PROJECT ON A PROJECT BY PROJECT BASIS. WHICH WE THINK WE'VE SAT WAY. WE'VE ALREADY GOT THAT IN PLACE. SO AGAIN. I'M NOT AGAINST, YOU KNOW, I THINK IT'S NICE TO HAVE A KIND OF IDEA IN THE BRIGHT LINE OUT THERE THAT YOU WANT A BUDGET. I THINK THAT'S A GREAT IDEA. I'M JUST THROWING OUT THAT CAUTIONARY COMMENT BECAUSE, LIKE I SAID. NO, NO, KURT'S HERE WE DID THAT YEARS AGO ON CDC, WHERE WE CREATED QUOTE BUCKETS OF MONEY BASED ON THE TYPE OF PROJECT AND EVERY TIME WE DIDN'T HAVE FUNDS AND WON. WE LIKED AND THERE WAS A PROJECT THAT WAS WORTH DOING. WE JUST CALLED IT SOMETHING ELSE. SO IT JUST JUST PUTTING THAT OUT THERE SO. GENERALLY SPEAKING, I LIKE THE IDEA OF FORECASTING AND WEDGING LIMITS LIKE THAT A LOT. TWO. THANK YOU. SO CALL THE QUESTION. CAP. YES, CAMP? NO. YES, EVERYONE.

HEAD BOBS ON CAP. START WORKING WITH A MILLION DOLLARS AND BE FLEXIBLE AS WE GO YEAR TO YEAR WITH OUR BUDGET, RECOGNIZING THAT FEATURE OUR DIRECTION TO FUTURE BOARDS WILL BE TO PUT SOME SORT OF A CAP CONTROL ON THE INNOVATION FUND. FROM BUDGETARY STANDPOINT AND YEAR TO YEAR WEAKEN, DETERMINE HOW BEST TO DO THAT, BUT REASONABLE. I GUESS WE NEED EMOTION ON THAT. OKAY? SO LOOKING FOR EMOTION TO ESTABLISH AN INNOVATION FUND CAP IN THE AMOUNT OF $1 MILLION SUBJECT TO FUTURE BUDGET YEARS ADJUSTMENTS AS THOSE BOARDS THEME. MOTION BY MR KRUGER. I'M SORRY. THAT'S ALL RIGHT. HIT THE BUTTON, BUT NO PROBLEM. O OKAY. SECOND BY DR FELLOWS, MR KRUGER MOVES, DOCTOR FELTUS SECONDS, OKAY? HE'S OUT. I GOT NETWORK AIR. WHAT HAPPENED HERE? I'M SORRY. I'M A YES. MUCH. OKAY. THANK YOU. IT'S VERY MUCH CHANCE WELL DONE. GOOD JOB. ITEM 20 DAYS 08 TO 4, WHICH IS CONSIDER ACT ON THE M

[Consider/Discuss/Act on the MEDC 2021 Key Performance Indicators]

[00:40:05]

[EXECUTIVE SESSION]