BUDGET, FINANCE & INVESTMENT COMMITTEE

 

January 10, 2002                                        6:15 P.M.                                        Courthouse

 

MINUTES:

 

Members Present:                   Others Present:                       Others Present:         Others Present:

Comm. Joyce Ealy                   Nancy Allen                             Alan Miller                  Joe McKenzie

Comm. Paul Johnson              Evans Maples                          Truman Jones           Steve Smith

Comm. Tina Jones                  Comm. Joe Frank Jernigan   Virgil Gammon          Donna Long

Comm. Robert Peay               Comm. Anthony Johnson        Bob Asbury                Emily Heffter

Comm. Steve Sandlin             Tracy Hill                                   Curtis Little                 Bryan Brooks

Comm. Dwight Throneberry    Melissa Wheatley                   Eddie Farmer             Paul Long

Comm. Jimmy Evans, Chair.  Deloris Blackman                   Del Corbitt                  Elaine Cawthon

                                                   Tela Bayless                            Hulon Watson

                                                   Mike Nunley                             Jeff Sandvig

 

 

Chairman Evans presided and called the meeting to order with all members being present.

 

APPROVE MINUTES:

 

The minutes of the December 6, 2001 meeting were presented for approval.

 

Comm. Sandlin moved, seconded by Comm. Jones to approve the December 6, 2001 minutes as presented.

 

The motion passed unanimously by acclamation.

 

INVESTMENT REPORT:

 

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

 

Mr. Maples advised there were no investment transactions that occurred during the month.  The LGIP interest rate earned was 1.80%.

 

Mr. Maples reported 25.71% of the property taxes have been collected as compared to 28.65% for the same period last year.  Mr. Maples attributed the reduction to payments received late in the month from some of the mortgage companies, which they were not able to get completely processed by the end of the month.

 

Comm. Throneberry moved, seconded by Comm. Peay to approve the Investment Report as presented.

 

The motion passed unanimously by acclamation.

 

FUND CONDITION REPORT:

 

Mr. Paul Long, Finance Director, presented the monthly Fund Condition Report.

 

Mr. Long advised $306,750 was received during the month from Development Tax collections.  The year-to-date collections are $1,676,250 compared to $1,107,000 for the same period last year.

 

Mr. Long reminded the committee the General Fund cash balance is lower than last year mainly because of the loan that was made to the Employee Insurance Fund.  The General Purpose School Fund cash balance is also significantly lower, because the School Board has been spending down the balance.  Otherwise, the cash balances are healthy.  The cash balance in Fund 121, Special Purpose Fund, is up from last month, because of a $110,000 grant received from the Christy Houston Foundation for the purpose of acquiring an ambulance and a van. 

 

Mr. Long advised the cash balance of $2,507,159.90 in the Nursing Home Projects Fund also reflects a grant from the Christy Houston Foundation for Phase II of the Community Care construction.
 

Budget Minutes                                                January 10, 2002                                              Page Two 

 

Mr. Long also reported a $100,000 contribution was received from Mr. Thomas Lane for the Agriculture Extension Center.

 

Mr. Long reminded the committee the interest earnings are going to be well below the original estimates.

 

The Finance Director advised there were no other unusual conditions to report at this time.

 

Comm. P. Johnson moved, seconded by Comm. Throneberry to approve the Fund Condition Report as presented.

 

The motion passed unanimously by acclamation.

 

RECOMMENDATION RELATIVE TO ANIMAL SHELTER CONSTRUCTION PROJECT:

 

County Executive Allen addressed the committee relative to the Animal Shelter project.  She advised she has been attending the Public Building Authority meetings regarding the new animal shelter facility.  She reminded the committee the County Commission has previously funded $1.7 million to purchase land and to build a main facility and a satellite facility in the Smyrna area.

 

After a substantial amount of work, the Public Building Authority has determined the two facilities cannot be built for $1.7 million.  For this reason, they have not signed the two-party agreement between the PBA and the County Commission.

 

The County Executive advised she presented this information to the Property Management Committee.  She reported the Property Management Committee has recommended to the Budget Committee that the project proceed forward with the main facility to include an additional 2,000 square feet for growth and the purchase of the land, and to defer the satellite facility until a later date.  

 

The County Executive advised the PBA has estimated the cost of the construction of the main facility to be approximately $140 per square foot for a 12,000 square foot building.  The estimated cost of the satellite facility is between $600,000 and $800,000.  She advised the facilities would require a special ventilation system, and the cages were fairly expensive, as well.

 

Chairman Evans stated it appeared to him that the satellite would be able to offer the same services, but on a smaller scale.  He stated it was his opinion that a satellite facility should be a small operation that would temporarily house the animals until they could be transferred to the main facility.  He questioned the need for a euthanasia room at the Smyrna facility.  He stated he believed a decent facility could be built that could serve as a nice temporary facility until the animals could be transported to the main facility.  He questioned if anyone had discussed reducing the size of the satellite facility so that it would function at capacity.  He stated another thing to keep in mind was the cost to staff and operate the satellite facility.

 

Tracy Hill, Animal Services Director, provided information on the cost to staff the Smyrna Satellite Facility.  The personnel cost including benefits and uniforms totals $124,541.40.  The estimated cost also including individual equipment and vehicles would be $184,929.12.

 

Comm. Jones advised at the Property Management Committee there was extensive discussion in terms of the satellite office in Smyrna.  She advised it was the will of the Property Management Committee to move forward with the project with the understanding there was limited funds available, but the county could move forward with the main building.  She stated, in no way, did she receive any indication that anyone on Property Management believed the satellite office should be eliminated.  She stated the Property Management Committee endorsed the satellite facility pending funds being available.

 

The PBA has estimated the Smyrna facility would be 4,670 square feet.  Ms. Hill advised the Smyrna facility is not intended to be a drop-off facility.  It was determined how many animals would come from the Smyrna/LaVergne area.  She advised the animals brought there from the Smyrna/La Vergne area would be housed there, so that owners looking for their animals would not have to drive to Murfreesboro.
 

Budget Minutes                                                January 10, 2002                                              Page Three 

 

It was determined it would cost approximately $653,000 to build the Smyrna facility including furniture, fixtures and equipment. 

 

Ms. Hill advised with four employees, the Smyrna facility probably could not operate with the extended hours. 

 

The Finance Director advised at a cost between $600,000 to $800,000 for the Smyrna location, the Development Tax could be a potential source of funding.  He stated if the committee did not want to spend that fund down too low, the funding could also be addressed with the next bond issue.  He stated the Debt Service Fund does have the capacity to handle the project.

 

The Finance Director advised since the vehicle and the vehicle equipment are capital expenditures, they could also be funded from the Development Tax.

 

Following discussion, Comm. Jones moved, seconded by P. Johnson to appropriate $715,000 from the Development Tax for the purpose of constructing and equipping the Smyrna Animal Services satellite location to also include the startup cost for the vehicles and vehicle equipment estimated at $60,000.

 

Comm. Peay stated he realized the PBA had worked hard on this and he had full faith in him.  However, he advised the Animal Services facility was not his priority when people are packed in the hallways at the Judicial Building.  He stated he believes people should come first.

 

Following discussion, the motion to appropriate $715,000 from the Development Tax for the purpose of constructing and equipping the Smyrna Animal Services satellite location to also include the startup cost for the vehicles and vehicle equipment estimated at $60,000 passed by roll call vote with Commissioners Ealy, P. Johnson, Jones, Throneberry and Evans voting “yes”, and Commissioners Peay and Sandlin voting “no”.

 

GENERAL FUND BUDGET AMENDMENTS

 

COUNTY CLERK:

 

Ms. Melissa Wheatley and Ms. Deloris Blackman, County Clerk’s Office requested approval of the following budget amendment for additional electrical work for computer equipment and to purchase computer work stations, metal shelving and a copier and fax machine for the Smyrna Motor Vehicle Office due to the fire that destroyed the building:

 

            Increase Revenue:            101-45110 – County Clerk Excess Fees -            $16,000

 

            Increase Expend.:            101-52500-707 – Building Improvements -                4,500

                                                       101-52500-709 – Data Processing Equip. -              6,000

                                                       101-52500-711 – Furniture/Fixtures -                         1,500

                                                       101-52500-719 – Office Equipment -                         4,000

 

Comm. Sandlin moved, seconded by Comm. Throneberry to approve the budget amendment as requested.

 

The motion passed unanimously by roll call vote.

 

HEALTH DEPARTMENT:

 

Ms. Tela Bayless, Health Department Director, requested approval of the following budget amendment to provide for an additional RN position.  This account is supported via 100% State reimbursement:

 

            Increase Revenue:            101-46310 – Health Department Programs -                   $17,549

 

  

Budget Minutes                                                January 10, 2002                                              Page Four

 

 

            Increase Expend.:            101-55190-131 – Medical Personnel -                   $15,040

                                                       101-55190-201 – Social Security -                                  935

                                                       101-55190-204 – State Retirement -                            1,330

                                                       101-55190-205 – Employee & Dependent Insurance -    24

                                                       101-55190-212 – Employer Medicare -                           220

 

Comm. Ealy moved, seconded by Comm. Peay to approve the budget amendment as requested to provide for an additional RN position.

 

The motion passed unanimously by roll call vote.

 

AMBULANCE SERVICE:

 

Mr. Mike Nunley, Ambulance Service Director, requested approval of the following budget amendment to appropriate a payment from the Murfreesboro Police Department for a CPR training class that was conducted by ambulance personnel:

 

            Increase Revenue:            101-43990 – Other Charges for Services -            $  385

            Increase Expend.:             101-55130-196 – In-Service Training -            $  385

 

Comm. Sandlin moved, seconded by Comm. Throneberry to approve the budget amendment as requested.

 

The motion passed unanimously by roll call vote.

 

AMENDMENT TO PROFESSIONAL SERVICES AGREEMENT BETWEEN GSA AND RUTHERFORD COUNTY EMERGENCY MEDICAL SERVICE:

 

Mr. Mike Nunley advised they have been attempting to decrease their expenditures with GSA for some time.  He stated they are at a point where they can do that.  He requested approval of an amendment to the Professional Services Agreement between Government Service Automation, Inc. (GSA) and the Ambulance Service, which reduces the monthly billing by $1,872.95 per month, retroactive to July 1, 2001 and continuing through the contract term of December 11, 2004.  The monthly amount will be $359.40.

 

Mr. Nunley reported they would be paying for one machine so that they can have access to their archive records.

 

Comm. Peay moved, seconded by Comm. Ealy to authorize the County Executive and the Ambulance Service Director to execute the agreement amending the Professional Services Agreement between GSA and the Rutherford County Ambulance Service reducing the monthly billing to $359.40 retroactive to July 1, 2001.

 

The motion passed unanimously by roll call vote.

 

CORRECTIONAL WORK CENTER:

 

Mr. Alan Miller, Correctional Work Center Superintendent, requested approval of the following budget amendment to appropriate a $2,700 grant received from the Dollar General Literacy Grant to purchase computer equipment for the G.E.D. program:

 

            Increase Revenue:            101-44570 – Contributions & Gifts -            $2,700

            Increase Expend.:             101-54220-709 – Data Processing Equipment - $2,700

 

Comm. Jones moved, seconded by Comm. Peay to approve the budget amendment as requested.

 

The motion passed unanimously by roll call vote.

 

Budget Minutes                                                January 10, 2002                                              Page Five

SHERIFF’S DEPARTMENT:

 

Regina Nelson, Chief Deputy, requested approval of the following budget amendments to provide adequate funding to cover expenses for cleaning and custodial supplies and to appropriate money received from commissary sales for prisoner’s clothing:

 

            From:            101-54210-719 – Office Equipment -                              $2,720

            To:                 101-54210-499 – Other Supplies & Materials -             $2,720

 

            Increase Revenue:            101-44131 – Commissary Sales -  $  8,557

            Increase Expend.:             101-54210-441 – Prisoner Clothing -    $  8,557

 

Comm. Jones moved, seconded by Comm. Sandlin to approve the budget amendments as presented for cleaning and custodial supplies and prisoner’s clothing.

 

The motion passed unanimously by roll call vote.

 

Chief Nelson requested approval of the following budget amendment to provide additional funding for the Medical and Dental Services and Drugs and Medical Supplies for the inmates.  Chief Nelson advised because of the increased number of inmates, the cost for treating them has also increased:

 

            From:            101-39000 – Undesignated Fund Balance -             $300,000

 

            To:                 101-54210-340 – Medical & Dental Services -       $150,000

                                  101-54210-413 – Drugs & Medical Supplies -         150,000 

 

Major Asbury advised in order to be reimbursed for a State inmate, the inmate has to be incarcerated for over 24 hours.  He advised none of these inmates have met the criteria for reimbursement. 

 

The Finance Director advised the State requires the Court Clerk to certify the bill for the hospitalization, even though she does not have anything to do with housing the inmate.  Consequently, the State sends the payment to the clerk.  The clerk deposits the money into her fees, and then it comes back to the county in the form of excess fees from the clerk’s office. 

 

Major Asbury also advised he had been informed that the Veterans’ Hospital would no longer treat inmates.

 

Following discussion, Comm. Peay moved, seconded by Comm. Sandlin to approve the budget amendment appropriating $300,000 from Undesignated Fund Balance to provide additional funding for the Medical & Dental Services and Drugs and Medical Supplies as requested.

 

The motion passed unanimously by roll call vote.

 

BUILDING CODES:

 

Comm. P. Johnson presented the following budget transfer for the approval of the committee for the Building Codes Department to provide funding to implement the demolition phase of the department.  He advised there would be a lien taken against the property when this service is done:

 

            From:            101-54510-718 – Motor Vehicles -                                 $8,000

            To:                 101-54510-399 – Other Contracted Services -            $8,000

 

Comm. Ealy moved, seconded by Comm. Peay to approve the budget transfer as requested.

 

The motion passed unanimously by roll call vote.

 

Budget Minutes                                                January 10, 2002                                              Page Six

 

AGRICULTURE EXTENSION:

 

Mr. Joe McKenzie requested approval of the following budget transfer to provide additional funding for the Part Time Personnel Account.  The unexpected resignation of an employee disrupted the teaching schedule in the County and City Schools, and the remaining staff cannot meet the commitment unless some part time help is hired to complete this year’s schedule:

 

            From:            101-57100-140 – Salary Supplements -              $5,500

            To:                 101-57100-169 – Part Time Personnel -             $5,500

 

Comm. Throneberry moved, seconded by Comm. Ealy to approve the budget transfer as requested.

 

The motion passed unanimously by roll call vote.

 

EMERGENCY MANAGEMENT:

 

Mr. Steve Smith, Emergency Management Director, requested approval of the following budget amendment, which appropriates grant funds for a grant that was previously approved.  This grant will be used to purchase equipment including chemical suits, gas detectors, breathing apparatus, etc.:

 

            Increase Revenue:            101-47230 – Disaster Relief-Federal -            $50,291

            Increase Expend.:             101-54430-790 – Other Equipment -               $50,291

 

The Finance Director advised it was previously recommended to place the funds into Fund 121, Special Purpose Fund.  However, due to the fact this money will have to be spent before it is received, he believed it would be better to put it into the General Fund.  He reported separate line items have been established to account for the grant.

 

Comm. Jones moved, seconded by Comm. Peay to approve the budget amendment of $50,291 to account for the grant funds for the Emergency Management Department.

 

The motion passed unanimously by roll call vote.

 

SOLID WASTE/SANITATION FUND BUDGET AMENDMENT

 

LANDFILL OPERATION & MAINTENANCE:

 

County Executive Allen requested approval of the following budget amendment, which transfers the unencumbered balance for the Waste Tire Disposal in the Convenience Center budget to the Landfill Operations & Maintenance Budget.  She advised Mr. Corbitt and Mr. Black at the Landfill monitor the collection of the tires, process the manifest, and perform all of the functions related to the tire program.  After this is done, it is turned over to the Solid Waste Department to handle the manifest for her signature.  She said basically, the Landfill staff does all of the work, so this amendment moves the function to the supervision of the Landfill:

 

            From:            116-55739-399 – Other Contracted Services -            $63,972

            To:                 116-55754-359 – Disposal Charges (new item) -       $63,972

 

The County Executive also advised this particular grant is from the State of Tennessee and has been frozen until the fourth quarter, and it is not known if all of this money will be received to actually pay for the collection of the tires.  She informed the committee it might be necessary to develop some kind of fee to cover the shortfall.

 

Following discussion, Comm. Ealy moved, seconded by Comm. Sandlin to approve the budget amendment for $63,972 to move the function of the Waste Tire Disposal from the Solid Waste Department to the Landfill Operation Department.

 

The motion passed unanimously by roll call vote.

 

Budget Minutes                                                January 10, 2002                                              Page Seven

 

 

STORM WATER MANAGEMENT PLAN PROPOSAL:

 

The County Executive and Mr. Del Corbitt advised the committee Rutherford County is under an EPA federally mandated program regarding storm water management.  She advised the county has to do the necessary preliminary work by March, 2003.  She stated the county would be taking advantage of the Request for Proposal that was issued by the City of Murfreesboro.  The City ultimately hired The Wiser Company, LLC in association with Huddleston-Steele Engineering, Inc. and SEC, Inc.

 

The County Executive reported the actual cost of the study is $36,800, and she requested approval of the following budget amendment which utilizes a portion of the Engineering Services Account with the remaining balance to come from Undesignated Fund Balance:

 

            From:            101-39000 – Undesignated Fund Balance -             $31,000

            To:                 101-58900-321 – Engineering Services -                 $31,000

 

Mr. Corbitt provided a copy of the Scope of Services, which describes the plan to be submitted to the State.  The plan will then be implemented in stages.  During the budget process, there will be a line item to account for the cost to implement the plan. 

 

A discussion was held if whether the City of Murfreesboro would be covering the cost of implementing the plan on any of the areas within the Urban Growth Boundary but outside the city limits.  The County Executive advised it is her understanding the City will be covering their portion within the corporate city limits. 

 

Following discussion, Comm. Peay moved, seconded by Comm. Sandlin to authorize the County Executive to execute the Storm Water Management Action Plan as recommended by the Public Works Committee and to forward the same to the full commission, and to also approve the budget amendment for $31,000 as requested to provide funding for the cost of the study.

 

The motion passed unanimously by roll call vote.

 

ROAD & BRIDGE FUND BUDGET AMENDMENT:

 

Comm. P. Johnson presented the following budget amendment for the approval of the committee, which authorizes the transfer of $2,000,000 from the Road & Bridge Fund Undesignated Fund Balance to the General Capital Projects Fund to allow for the construction of the new Highway garage and office facility:

 

            From:            131-39000 – Undesignated Fund Balance -             $2,000,000

            To:                 131-99200-590 – Residual Equity Transfers -          $2,000,000

 

The Finance Director advised by transferring the money to the General Capital Projects Fund if any money was left over after the project is completed; it could be transferred back to the Highway Department.  He also reported if the money was left in the Road & Bridge Fund, any remaining money would lapse at June 30.

 

Following discussion, Comm. P. Johnson moved, seconded by Comm. Jones to approve the budget amendment transferring $2,000,000 from the Undesignated Fund Balance of the Road & Bridge Fund to the Capital Projects Fund for the construction of the new highway garage and office facility as requested.

 

The motion passed unanimously by roll call vote.

 

GENERAL PURPOSE SCHOOL FUND BUDGET AMENDMENT:

 

Mr. Hulon Watson, School Superintendent, requested approval of the following budget transfer to provide adequate funding for the server upgrades needed to convert the Edulog system:

 

 

Budget Minutes                                                January 10, 2002                                              Page Eight

 

 

            From:            141-72710-399 – Other Contracted Services -                 $11,500

            To:                 141-72710-729 – Transportation Equipment -                  $11,500

 

Comm. Throneberry moved, seconded by Comm. Ealy to approve the budget transfer for $11,500 as requested.

 

The motion passed unanimously by roll call vote.

 

REQUEST FOR $12.6 MILLION FOR CONSTRUCTION OF THE CHRISTIANA MIDDLE SCHOOL:

 

Chairman Evans asked if the geo-technical study has been completed at the Christiana Middle School site? 

 

Mr. Watson advised the studies are close to being completed.

 

Chairman Evans wanted to know if the Board had made a decision as to what type of school Christiana is going to be.  He stated the commission is being asked to fund a school that might be changed and might not.

 

Mr. Watson advised the Board passed the school as a middle school first, which can be converted to a high school by adding another seven classrooms and an additional gymnasium.  He stated they have also talked about wanting the stadiums.  He stated in the future there would have to be a high school on the south side of Murfreesboro.  When that happens, this school can be converted to a community high school.  He reported the roads are being designed so it will give enough room for the conversion to happen.

 

Chairman Evans asked what would happen to the middle school students who would be attending there? 

 

Mr. Watson advised those students would stay there, with some of the students in the outlying areas being shifted to Barfield. 

 

Mr. Sandvig stated that Siegel High School would cover their high school needs for approximately six to seven years.

 

Chairman Evans stated he believed a decision ultimately needed to be made whether the Board was going to have community high schools or comprehensive high schools. 

 

Mr. Watson advised the people in the Barfield area would like to have more room.  He stated that for this school to open in 2003, it is beginning to be a rush.  He stated there has to be enough lead-time to open the school.  He reported it takes approximately 18 months to build a middle school.  He stated for this school to be open on time, the bid packages need to go out in March. 

 

Comm. Peay wanted to know who owns the land where the drain fields are located?  Mr. Watson advised the county owns the property.  He also wanted to know who owns the drain field property at Wilson Elementary.    Mr. Watson stated as far as he knew the county owns it, but Consolidated Utility maintains it.  Mr. Peay wanted to know if the drain field property would be fenced, so that the county could not utilize all of the property.  Comm. Peay asked Mr. Watson if he would find out for sure by next month. 

 

Comm. Jones also stated she believed the Board needed to make a decision on the type of school to be built.  She stated if the Christiana Middle School is converted to a community school, what that means for the commission is additional dollars that will be needed.

 

Mr. Watson stated the Board has made a decision.  Mr. Watson stated it has been stated up front that if the school is converted to a high school, it will mean additional classrooms, additional gymnasium and ball fields.  He stated this is what the Board has passed, that this is a middle school in the beginning.  In the future, approximately five, six, or seven years, it might be converted to a high school.  He said it