Cross_cutting

1:54:00 the loan and ensure compliance with BAR's requirements. Payments will be made in equal installments over five years and they will be made out of the CARA account which I mentioned which lives within the elections fund. The CARA account is projected to generate $246,000 annually starting in 2027 and is sufficient to cover the scheduled payments. We did include that early payoff would be allowed if revenues exceed projections and the council or the county manager does approve. That would allow us to avoid those interest costs. And in terms of financial capacity and compliance the REIT one fund has a really healthy fund balance that is unallocated in the amount of about $5.6 million as of June 30 and this is within our fund balance policy limits to support the loan and the loan complies with the Washington State Auditor's Bar manual in all respects. They're outlined in the resolution that

1:55:00 you have before you. If approved a 2026 supplemental budget request will record the equipment purchased in the elections fund. That will come from the Auditor's Office. An annual budget request will be submitted for the interest portion of the loan repayment in 2027. We will work with the budget office on that, our audit office and the REIT one forecast will be updated to reflect the repayment inflows and the Auditor's Office as required by bars will include the annual loan status report in their year end financial report to council. This just really ensures ongoing visibility into the loan performance and requirements. So I will stop there and take any questions. >> Thank you. Are there any questions from council? >> Yes, go ahead. >> Yeah, just a quick question. So this is a loan. Pays interest $112,000 so that just goes back to REIT one fund, correct? >> That is correct, yes. >> And what happens with that money? >> It can just be

1:56:00 reappropriated to any other expenses that are allowable under REIT one. >> Got it. Thank you. >> We actually are paying ourselves instead of paying a