BUDGET, FINANCE & INVESTMENT COMMITTEE

         January 6, 2000                        6:15 P.M.                             Courthouse

                                                           MINUTES:

 

Members Present:                    Others Present:                     Others Present:

Comm. Jerry Baxter                   Evans Maples                      Hulon Watson
Comm. Joyce Ealy                     Comm. Tina Jones              Jeff Sandvig
Comm. Joe Frank Jernigan      Comm. Trey Gooch             Leon Mansfield
Comm. Allen McAdoo               Jennifer Gerhart                   John Brown
Comm. Steve Sandlin               Mike Nunley                          Bob Shupe
Comm. Jimmy Evans, Chair.    Tracy Hill                               Jim Mahanes
Regina Nelson                            Paul Long                            Elaine Cawthon

 

 Comm. Evans presided and called the meeting to order with five members being present at   that time.

 

APPROVE MINUTES:

  The minutes of the December 13, 1999 meeting were presented for approval.

Comm. Baxter moved, seconded by Comm. Jernigan to approve the minutes as presented.

The motion passed unanimously by voice vote with Comm. P. Johnson and Comm. Sandlin
 being absent at that time.

INVESTMENT REPORT:

  Mr. Evans Maples, Trustee, presented the monthly Investment Report for the use and
  information of the committee.

Mr. Maples reported 48.3% of the property taxes have been collected as compared to 42.8% for the same period last year.

Mr. Maples reported the LGIP interest rate for the month was 5.52%.

Mr. Maples explained the investment transactions that occurred during the month.

Comm. Jernigan moved, seconded by Comm. Baxter to approve the Investment Report as presented.

The motion passed unanimously by voice vote with Comm. P. Johnson and Comm. Sandlin being absent at that time.

 

FUND CONDITION REPORT:

  Mr. Paul Long, Finance Director, presented the Fund Condition Report for the month
  ending December, 1999. 

Mr. Long reported the Development Tax collections for the month totalled $89,625 as compared to $228,000 for the same period last year. 

The Development Tax collected for the year totals $1,132,125 as compared to $1,381,125
 for the same period last year.

Mr. Long explained the fund cash balances.  The total cash balances are $99,866,052 with $79,290,163 being operating funds, and $20,575,889 being borrowed funds.

Mr. Long explained the cash fund balance in the Employee Insurance Fund is almost $600,000 below where it was a year ago.  He reported the contributions in that fund have not covered the claims for the past two years.  Mr. Long explained that will need to be analyzed and evaluated to determine whether the employee and/or employer contributions need to be increased.

Comm. Jernigan moved, seconded by Comm. Ealy to approve the Fund Condition Report as presented.

The motion passed unanimously by voice vote with Comm. P. Johnson being absent.

 

LOCAL PURPOSE TAX FUND BUDGET AMENDMENT:

  Mrs. Jennifer Gerhart, Register of Deeds, requested approval of the committee for the
  following budget amendment:

     From:  120-91110-709 - Data Processing Equipment - $4,500

     To:  120-91110-711 - Furniture & Fixtures (new item) - $4,500

Mrs. Gerhart explained $260,000 was originally budgeted through the Development Tax to purchase a computer system for the Register of Deeds Office.  She reported she would be making a recommendation to the Purchasing Committee next week for a computer system that would cost substantially less than expected.  She stated the system would cost approximately $180,000, and is a system that is used in 20 other counties in the State of Tennessee. 

Mrs. Gerhart explained she had anticipated the office would be on line with the new system by January, but since that has not happened she is needing to purchase roller shelving that holds approximately 120 books.

Chairman Evans stated this would still be a substantial savings over what was originally budgeted.  He stated it was refreshing to see a project was going to be under budget instead of over budget for a change.

Following discussion, Comm. Sandlin moved, seconded by Comm. Jernigan to approve the budget transfer as requested by the Register of Deeds to purchase roller shelving.

The motion passed by roll call vote with Comm. P. Johnson being absent.

 

REPORT ON LOST/MISSING FIXED ASSETS:

  Mr. Paul Long and Mr. Jeff Craig, Inventory Control Supervisor, distributed a report of
  Missing Assets for the Fiscal Year ended June 30, 1999 to the committee.

Mr. Long explained the Finance Department has a process of conducting physical inventories in all county departments.  In the past, if an asset was not located in two successive inventory cycles, the asset was declared to be missing. 

Mr. Long explained during each cycle, the department head, principal, and superintendent of schools are notified of any missing assets and are given the opportunity to respond.  The responses, if any, are included in the report. 

Mr. Long explained the report has identified $127,314 in missing assets.  The largest category of missing assets is computer equipment, and the second largest category is audio visual equipment.

The committee discussed the report and various pieces of equipment that were listed as missing.

Mr. Long reported the information will be provided to all commissioners.

 

GENERAL FUND BUDGET AMENDMENTS

 

AMBULANCE SERVICE:

  Mr. Mike Nunley, Ambulance Service Director, requested approval of the following
  budget amendment:

     Increase Revenue:  101-44570 - Contributions & Gifts - $300

     Increase Expend.:  101-55130-599 - Other Charges - $300

Mr. Nunley reported the Ambulance Service has received a donation of $300 from Pack's Towing & Recovery, and he is requesting the money be appropriated for use by the dive team to purchase equipment.

Following discussion, Comm. Jernigan moved, seconded by Comm. McAdoo to approve the request as presented.

The motion passed by roll call vote with Comm. P. Johnson being absent.

 

ANIMAL SERVICES:

  Ms. Tracy Hill was present to request approval of the committee for the following
  budget transfers:

     From:  101-55120-316 - Contributions - $14,000

     To:  101-55120-357 - Veterinary Services - $14,000

     From:  101-55120-707 - Building Improvements - $4,500

     To:  101-55120-451 - Uniforms - $4,500

     From:  101-55120-164 - Attendants - $6,000

     To:  101-55120-187 - Overtime - $6,000

Ms. Hill explained the $14,000 will be used for the spay/neuter vouchers for the veterinarians and the rabies vaccinations.  She explained the $4,500 is needed to cover the cost of uniforms for new employees, and the $6,000 is for overtime for holidays and on-call situations as needed.

The committee discussed the uniform request and the overtime request.  Following discussion, Comm. Sandlin moved, seconded by Comm. Baxter to approve the transfers as requested.

The motion passed by roll call vote with Commissioners P. Johnson and McAdoo being absent at that time.

SHERIFF'S DEPARTMENT:

  Chief Regina Nelson, Sheriff's Department, requested approval of the committee for
   the following budget transfer:

     From:  101-54210-421 - Food Preparation Supplies - $5,000

     To:  101-54120-435 - Office Supplies - $5,000

Chief Nelson reported the transfer is needed to cover the cost of food preparation supplies.

Comm. Baxter moved, seconded by Comm. Jernigan to approve the transfer as requested. 

The motion passed by roll call vote with Commissioners P. Johnson and McAdoo being absent at that time.

 

GENERAL PURPOSE SCHOOL FUND BUDGET AMENDMENTS:

  Mr. Hulon Watson, Superintendent, and Mr. Jeff Sandvig, Assistant Superintendent,
  addressed the committee requesting approval of the attached budget amendments.

Mr. Watson requested the 1999 State Safe Schools Act grant in the amount of $149,139 be appropriated.

  A discussion was held regarding approval of the grant.  Mr. Sandvig reported this is additional funds.

Mr. Watson requested approval of an amendment in the amount of $216,450 to move the library assistants to the object code for Educational Assistants and the reassignment of a secretary from Regular Education Administration to split time between Special Education Administration and Transportation.

Mr. Watson requested approval of an amendment in the amount of $24,345, which is for the matching funds provided by Eagleville Boosters and School for their activity bus.

Mr. Watson requested approval of an amendment in the amount of $354,720, which appropriates the 1998/99 e-rate funds in the amount of $118,170, the 1998/99 e-rate in the amount of $52,678, the 1999/2000 approved e-rate funding in the amount of $137,345, and an additional $46,527 from ending fund balance to provide a unified communication network at the schools. 

Mr. Watson next requested approval of budget amendments totalling $165,258, which uses regular and vocational teacher funds and librarian funds to cover the cost of the following positions:  one nurse, two guidance counselors for Blackman High, one technology specialist, and two assistant principals for Blackman High.

Following discussion, Comm. Jernigan moved, seconded by Comm. Ealy to approve the amendments as requested.

The motion passed by roll call vote with Commissioners P. Johnson and McAdoo being absent at that time.

RECOMMENDATION REGARDING STADIUMS:

  Chairman Evans reported the Health and Education committee approved and
  forwarded to the Budget Committee $5,000,000 for stadiums at Oakland, Riverdale
  and Blackman High Schools with other required items not covered to be paid from the
  ending fund balance.

Mr. Watson and Mr. Sandvig distributed to the committee an analysis of the anticipated cost of construction for a 5,000 seat stadium with parking and a 4,000 seat stadium with parking.

The total estimated construction cost for a 5,000 seat stadium is $6,851,350, and the total estimated construction cost for a 4,000 seat stadium is $5,976,300.

There was a discussion of the cost of the field houses and parking spaces.

Following discussion, Comm. Jernigan moved, seconded by Comm. Ealy to accept the recommendation of the Health & Education Committee for $5,000,000 for stadiums at Oakland, Riverdale, and Blackman High Schools with other required items not covered to be paid from the ending fund balance.

The motion passed by roll call vote with Commissioners P. Johnson and McAdoo being absent at that time.

Chairman Evans stated the committee needed to decide how the funding for the stadiums will be provided.

The Finance Director explained the only option in funding this project would be to decide whether to finance it over a 10, 15, or 20 year period.  He explained it could be blended in with the remaining money to be borrowed for Siegel Middle, Blackman Elementary, and Walter Hill Elementary and funded over a 20 year period. 

Following discussion, Comm. Jernigan moved, seconded by Comm. Ealy to  approve a $5,000,000 20 year bond resolution to fund the cost of the stadiums to be packaged together with the remaining funds to be borrowed for Siegel Middle, Blackman Elementary, and Walter Hill Elementary Schools.

The motion passed by roll call vote, with Commissioners P. Johnson and McAdoo being absent at that time.

DEBT SERVICE FUND BUDGET AMENDMENT:

  Finance Director Paul Long requested approval of the following amendment to
  appropriate funds for the first interest payment on the $9.9 million General Obligation
  School Bonds borrowed in December for Blackman High School furniture and
  equipment, Siegel Middle School, Blackman Elementary and Walter Hill Elementary
  Schools:

     From:  151-39000 - Undesignated Fund Balance - $168,925

     To:  151-81300-603 - Interest on Bonds - $168,925

Comm. Jernigan moved, seconded by Comm. Baxter to approve the amendment as requested.

The motion passed by roll call vote with Commissioners P. Johnson and McAdoo being absent at that time.

COMMUNITY CARE NOTES TO FINANCIAL STATEMENTS:

  Mr. Leon Mansfield, Community Care Director, was present to answer any questions
  from the committee.

The Finance Director reported Community Care is considered a component unit of the county, because their board of directors is created by the Rutherford County Commission.  As a result, their financial statements have to be included with the county's audit.  When the auditors include those in the county's audit, they try to give some background as to how the organization was created and give some indication as to whether or not there is any contingent liability.

Mr. Long reported the Notes to the Financial Statements in the County's audit states when Community Care was created, apparently there was some provision that said they may not issue debt without County approval.  Mr. Long explained if there was a default on any Community Care debt, the County would be contingently liable. 

Comm. Jernigan moved, seconded by Comm. Baxter to approve the recommendation of the Health & Education Committee to forward a copy of page 29 in the County's audit to the Community Care Board and to the full commission and reiterate that Community Care of Rutherford County, Inc. may not issue debt without county approval and the county remains contingently liable for the debt obligations.

The motion passed by roll call vote with Commissioners P. Johnson and McAdoo being absent at that time.

Mr. Mansfield asked what is considered debt?

Chairman Evans stated he would take that to mean any time that Community Care would have the need to borrow money, such as the line-of-credit that was discussed at the Health & Education Committee.  Chairman Evans stated any time that cash money had to be borrowed to pay for some service or supplies they were unable to pay for.

Finance Director Paul Long also stated it would probably be anything that there was a possibility that Community Care might not be able to pay off by the end of the fiscal year.

The item of lease agreements was discussed.

The Finance Director reported he would research the issue of the revolving line-of-credit to see if it was approved by the commission in the past.

AMENDMENT TO SELF-FUNDED HEALTH INSURANCE PLAN DOCUMENT:

  Mr. Bob Shupe, Employee Security Planning, explained this is Amendment XXV,
  Section 8, No. 6 to Rutherford County's Health Insurance Plan Document.

Mr. Shupe explained there is currently a provision in the policy for dependent children who continue to go to college as full-time students to remain covered under the county's health insurance plan up to age 25. 

He reported a situation exists where an employee's dependent child, who was a full time student, had some medical difficulties that would prevent that child from returning to school.  He stated because of that and the way the language is written, the dependent would lose the insurance coverage.  He stated it is expected the student will be able to return to school, but it will be a period of time. 

Mr. Shupe explained the effort of the amendment is to try to take care of those situations should it arise again.  He stated the Insurance Committee did not believe it was the intent of the policy to penalize someone, who through nothing they could prevent, would pull them off the policy and especially at such a bad time.

Mr. Shupe explained an additional paragraph has been added to No. 6 which states the provision applies to children who become disabled between the age of 19 and 25 if they were a full-time student and covered by the Plan on the date of total disability.  Coverage under this paragraph will terminate at age 25.

Mr. Long stated the county's health insurance plan provides this same coverage for children under the age of 18 indefinitely.  He stated it did not seem equitable if this happens whether the dependent child is 18 or 20.  However, the Insurance Committee did believe it was necessary to cap the provision at age 25 for those individuals in that category. 

Following discussion, Comm. Jernigan moved, seconded by Comm. Sandlin to include the paragraph to include children who become disabled between the age of 19 and 25 if they were a full-time student and covered by the plan on the date of total disability to XXV, Section 8, No. 6 of the County's Self-Funded Plan Document No. SF-01075.

The motion passed by roll call vote with Commissioners P. Johnson and McAdoo being absent.

ADJOURNMENT:

  There being no further business to be presented at this time, Chairman Evans
  declared the meeting adjourned at 7:45 P.M.

                           

Elaine Cawthon, Secretary

 

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