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vistrict counsel Keport- Jenrnter NesnKe, tsq. Mrs. Peshke provided her District Counsel Report and stated that she has been working with the attorneys in the due diligence process concerning the partnership with Cleveland Clinic. Additionally, she is working with District staff on the upcoming budget cycle concerning the funded agency requests for fiscal year 2018-2019. Financial Statement Review- Allen Jones, Treasurer Mr. Jones provided the Treasurers report and stated that the District currently remains in sound financial condition. He explained that should the District's spending rate continue at its current volume, it could require utilization of the reserve funds that have been set aside for other purposes. In doing this, it could negatively affect the next fiscal year's millage rate, to make up for any drawdown of those reserves. Further, Mr. Jones stated that through March 31, the District's bank deposits totaled approximately $10.6 million and $2.5 million of those funds represent reserves. After allocating the payment of $1.4 million for this month's distributions, the operating account will drop to approximately $6.6 million. The District is projected to receive an additional $900,000 in tax revenues for the remainder of the fiscal year, which would bring the operating account up to $7.5 million. Mr. Jones explained that program expenses, District administrative expenses, and the additional expenses associated with the partnership process and repairs to the HSB are expected to require around $7.9 million. Therefore, the District may need to utilize some of its reserve funding. Thus far, the District has paid approximately $400,000 in expenses for the partnership process and the total budget set aside for this purpose is $1,000,000. Mr. Jones stated that extensive legal work is being undertaken and it is possible that total cost will exceed the budgeted amount. He explained that he is providing this information to the Trustees so they are aware that this year's budget may turn out to be tighter than previous years. Additionally, IRMC has experienced an increase in volumes of indigent patients. For the first six months of this fiscal year, indigent outpatient volumes are up 7.5% and the more expensive inpatient � 2, .