MINUTES:

Comm. Jerry Baxter       Nancy Allen            Robert Asbury   David Limbaugh

Comm. Joyce Ealy         Evans Maples           Chuck Thomas    Jim Mahanes

Comm. Joe Frank Jernigan Comm. Anthony Johnson  Ben Bennett     Paul Long

Comm. Paul Johnson       Comm. Trey Gooch       Ralph Leyhew    Elaine Cawthon

Comm. Allen McAdoo       Comm. Lindell Vaughn   Bill Kennedy

Comm. Steve Sandlin      Tela Provost           Eddie Bowman

Comm. Jimmy Evans,Chair. Larry Swaim            Eddie Farmer

APPROVE MINUTES:

The minutes of the January 6, 2000 meeting were presented for approval.

Finance Director Paul Long noted there needed to be a correction made to the minutes. On page three, the Sheriff's Department Budget Amendment needs to be corrected as follows:

From: 101-54210-435 - Office Supplies - $5,000

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

Comm. McAdoo moved, seconded by Comm. Jernigan to approve the minutes of January 6, 2000 as corrected.

The motion passed unanimously by voice vote.

INVESTMENT REPORT:

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

Mr. Maples reported at the end of January, 54.82% of the property taxes had been collected as compared to 55.50% for the same period last year.

The LGIP rate was 5.60% for the month.

Mr. Maples explained the various 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. Sandlin being absent at that time.

FUND CONDITION REPORT:

Finance Director Paul Long presented the monthly Fund Condition Report for the information and use of the committee.

Mr. Long reported the Development Tax collections for the month totalled $113,250 as compared to $178,875 for January, 1999. The year to date collections total $1,244,250 compared to $1,560,000 for the same period last year. Mr. Long reported this indicates there will be a problem meeting this year's revenue estimates.

Mr. Long reported the cash balances at the end of January for most of the operating funds exceeded prior year balances significantly. The cash balance in the Employee Insurance Fund continues to be approximately $700,000 below last year's balance.

The cash balances for all funds totalled $100,878,493 with $81,631,861 being operating funds and $19,246,632 being borrowed funds.

Mr. Long reported there are no unusual conditions to report at this time.

Following discussion, Comm. Baxter moved, seconded by Comm. Ealy to approve the Fund Condition Report as presented.

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

PROPERTY ASSESSOR:

In the absence of the Property Assessor, County Executive Nancy Allen presented the following budget transfer for the approval of the committee:

From: 101-52300-711 - Furniture & Fixtures - $80

To: 101-52300-709 - Data Processing Equipment - $80

The County Executive explained approval of this transfer will allow the Property Assessor to purchase a computer and printer for the new Administrative Assistant.

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

The motion passed by roll call vote with Comm. Sandlin being absent at that time.

HEALTH DEPARTMENT:

Ms. Tela Provost requested approval of the committee for the following budget amendment:

Increase Revenue: 101-44570 - Contributions & Gifts _ $1,250

From: 101-55110-429 - Instructional Supplies & Materials - $2,500

To: 101-55110-599 - Other Charges (new item) - $3,750

Ms. Provost reported this request is for a grant received from the March of Dimes, which has been previously used for instructional supplies and materials. She explained it was anticipated the grant would be received to purchase materials. Instead, the grant was earmarked for an interpreter.

The budget amendment moves $2,500 from materials to Other Charges, as well as recognizes the additional revenue to be received for the interpreter.

Following discussion, Comm. Baxter moved, seconded by Comm. Ealy to approve the budget amendment as requested.

The motion passed by roll call vote with Comm. Sandlin being absent at that time.

Ms. Provost requested approval of the committee for the following budget amendment:

From: 101-58600-205 - Employee Benefits, Employee Insurance - $5,030

To: 101-55110-205 - Employee & Dependent Insurance - $5,030

Ms. Provost explained the amount originally appropriated for Employee & Dependent Health Insurance was based on the number of employees who were actually participating in the health insurance program at the time the budget was adopted. Since that time, other eligible employees have elected to participate in the county's health insurance program.

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

The motion passed by roll call vote, with Comm. Sandlin being absent at that time.

Ms. Provost requested approval of the following amendment which will allow for the addition of a Clerk II position at a pay grade 9 at the entry level salary effective 2-21-2000. This account is supported via a contract with State funds.

From: 101-55190-399 - Other Contracted Services - $7,680

To: 101-55190-131 - Medical Personnel - $5,840

101-55190-201 - Social Security - 365

101-55190-204 - State Retirement - 455

101-55190-205 - Employee Insurance - 920

101-55190-212 - Employer Medicare - 100

Ms. Provost explained all of the other Clerk II's are already on the county's payroll. This particular position is currently paid by the state; however, the county's payroll and compensation is much higher than the state's. This will allow her to employ a better quality person, and would make all of the Clerk II's the same pay grade.

Following discussion, Comm. Baxter moved, seconded by Comm. Ealy to approve the budget transfer as requested.

The motion passed by roll call vote, with Comm. Sandlin passing.

Ms. Provost requested the following budget amendment to provide adequate funding for the Communications Account for the remainder of the fiscal year:

From: 101-39000 - Undesignated Fund Balance - $2,000

To: 101-55110-307 - Communications - $2,000

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

The motion passed unanimously by roll call vote.

CHANCERY COURT:

In the absence of the Chancery Court Clerk & Master, Finance Director Paul Long presented the following budget transfer for the approval of the committee:

From: 101-53400-348 - Postal Charges - $730

To: 101-53400-334 - Maintenance Agreements - $730

This request is to provide funds for a maintenance contract for the computer hardware server.

Following discussion, Comm. Sandlin moved, seconded by Comm. McAdoo to approve the budget transfer as presented.

The motion passed unanimously by roll call vote.

From: 101-39000 - Undesignated Fund Balance - $3,000

To: 101-53400-194 - Jury & Witness Fees - $3,000

Following discussion, Comm. Baxter moved, seconded by Comm. Ealy to approve the budget amendment as requested.

The motion passed unanimously by roll call vote.

JUVENILE DETENTION:

Mr. Larry Swaim, Juvenile Detention Center Director, was present to request approval of the following budget amendments:

From: 101-39000 - Undesignated Fund Balance - $6,000

To: 101-54240-335 - Maintenance & Repair Bldgs. - $6,000

Mr. Swaim reported this request is needed exclusively for plumbing. He explained they have had a lot of problems with plumbing. He stated the downstairs plumbing was worked on extensively last year, and they have had very few problems with that this year. However, there have been a lot of problems with the upstairs plumbing.

Following discussion, Comm. Sandlin moved, seconded by Comm. Jernigan to approve the budget amendment as requested.

The motion passed unanimously by roll call vote.

Mr. Swaim also requested approval of the following budget transfer to provide adequate funding for the Communications Account for the remainder of the year:

From: 101-54240-336 - Maintenance & Repair Equip. - $1,300

To: 101-54240-307 - Communications - $1,300

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

The motion passed unanimously by roll call vote.

Chairman Evans stated he believed this was another indication the county needed to budget funds next year for a communications consultant to look at all of the phone systems in all departments.

YOUTH SERVICES:

Mrs. Felicia Rasori, Youth Services Department, was present to ask approval of the following transfer:

From: 101-53500-317 - Data Processing Services - $400

To: 101-53500-307 - Communications - $400

Mrs. Rasori reported the account was underestimated due to the additional phone line for the juvenile referee.

Comm. McAdoo moved, seconded by Comm. Sandlin to approve the budget transfer as requested.

The motion passed unanimously by roll call vote.

SHERIFF'S DEPARTMENT:

From: 101-54110-189 - Other Salaries & Wages - $7,070

To: 101-54110-349 - Printing, Stationary & Forms - $2,200

101-54110-435 - Office Supplies - 1,300

101-54110-709 - Data Processing Equipment - 3,570

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

The motion passed unanimously by roll call vote.

Sheriff Truman Jones requested approval of the committee for the following budget transfer:

From: 101-54210-334 - Maintenance Agreements - $24,000

To: 101-54210-335 - Maintenance & Repair Bldgs. - $24,000

Sheriff Jones reported this request is to provide funds to repair the locks on the old part of the building. He explained a lot of the locks have been cannibalized in order to fix other locks.

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

The motion passed by roll call vote with Commissioners Ealy, Jernigan, McAdoo, Sandlin, and Evans voting "yes", and Commissioners Baxter and P. Johnson voting "no".

Sheriff Jones requested approval of the following budget transfers which provides funds to cover dietician expenses to maintain their certification and to appropriate money received from the Murfreesboro Police Department to provide maintenance on the Printrak Fingerprint System:

From: 101-54210-169 - Part-Time Personnel - $2,000

To: 101-54210-399 - Other Contracted Services (new Item) - $2,000

From: 101-39000 - Undesignated Fund Balance - $9,000

To: 101-54210-336 - Maint. & Repair Equip. - 9,000

Following discussion, Comm. Sandlin moved, seconded by Comm. Ealy to approve the budget transfers as requested.

The motion passed by roll call vote with Comm. Baxter voting "no".

Sheriff Jones requested approval of the committee for the following budget transfers:

From: 101-54110-338 - Maint. & Repair Vehicles - $21,000

To: 101-54110-453 - Vehicle Parts - 21,000

This transfer is requested to provide adequate funding to repair the existing vehicles.

From: 101-54110-719 - Office Equipment - $700

To: 101-54110-196 - In-Service Training - $700

This request is to provide adequate funding to send the warrants clerks to the TIBRS training.

From: 101-54110-708 - Communications Equip. - $5,000

To: 101-54110-307 - Communications - $5,000

This request is to provide funding to purchase two cell phones for two supervisors, as well as the monthly service, and to provide adequate funding for the remainder of the year.

From: 101-54110-429 - Instructional Supplies & Mat. - $1,000

101-54110-719 - Office Equipment - 1,300

To: 101-54110-716 - Law Enforcement Equip. - $2,300

This request is to provide funding to purchase vest covers for the SRO's so they can wear body armor while in plain clothes.

Following discussion Comm. Jernigan moved, seconded by Comm. Sandlin to approve the budget transfers as requested.

The motion passed unanimously by roll call vote.

Sheriff Jones requested approval of the committee for the following budget amendment which appropriates a refund received from fuel tank system removal to Maintenance & Repair of Buildings:

Increase Revenue: 101-44170 - Miscellaneous Refunds - $6,904

Increase Expend.: 101-54210-335 - Maint. & Repair Bldgs - $6,904

Following discussion, Comm. Jernigan moved, seconded by Comm. Sandlin to approve the budget amendment as requested.

The motion passed by roll call vote with Commissioners Ealy, Jernigan, P. Johnson, McAdoo, and Sandlin voting "yes", and Commissioners Baxter and Evans voting "no".

Sheriff Jones requested approval of the committee for the following budget amendment which appropriates a contribution of $1,000 from Alexander Ford to be used for the officers:

Increase Revenue: 101-44570 - Contributions & Gifts - $1,000

Increase Expend.: 101-54110-399 - Other Contracted Services

(new item) - $1,000

Following discussion Comm. Sandlin moved, seconded by Comm. Jernigan, to approve the budget amendment as requested.

The motion passed by roll call vote with Comm. McAdoo being absent at that time.

Sheriff Jones next presented the following budget amendment for the approval of the committee to provide adequate funding for the Medical & Dental Services Account. Sheriff Jones reported there have been a significant number of major illnesses.

From: 101-39000 - Undesignated Fund Balance - $48,000

To: 101-54210-340 - Medical & Dental Svc. - $48,000

Following discussion, Comm. Sandlin moved, seconded by Comm. Ealy to approve the budget amendment as requested.

The motion passed by roll call vote with Comm. McAdoo being absent at that time.

Sheriff Jones next presented the following budget amendment for the approval of the committee to provide additional funding for Overtime Pay for the Detention Center.

From: 101-39000 - Undesignated Fund Balance - $5,000

To: 101-54210-187 - Overtime Pay - 5,000

Major Asbury reported approval of this request should get the Detention Center through the rest of the year.

A discussion was held regarding buying down compensatory time balances. Sheriff Jones reported there were no excessive balances 
at this time, but there could be some buy down of compensatory time before the end of the fiscal year.

Following discussion, Comm. Jernigan moved, seconded by Comm. Sandlin to approve the budget amendment as requested.

The motion failed with Commissioners Ealy, Jernigan and Sandlin voting "yes"; Commissioners Baxter, P. Johnson, and Evans voting "no"; and Comm. McAdoo being absent at that time.

A discussion was held on the Overtime Pay for the upcoming fiscal year. Sheriff Jones reported the Overtime Pay could not be cut in half. He stated even if he hired twice as many people, all of those officers would be making arrests and going to court. He reported if an officer is working a case, he cannot leave that case at 4:00 P.M. He said they are not in a controlled situation.

The Finance Director reported if the overtime is worked it has to be paid, or the county will be getting into a wage and hour situation. Chairman Evans stated the overtime could be looked at on a month-to-month basis.

Comm. Sandlin asked if county taxpayers are getting off better by paying the overtime each year, or would it be better to employ more officers to cut the overtime down?

Following discussion, Comm. Sandlin moved, seconded by Comm. Ealy to reconsider the original motion to appropriate $5,000 from Undesignated Fund Balance to Overtime Pay for the jail.

The motion passed by roll call vote with Comm. Baxter voting "no", and Comm. McAdoo being absent at that time.

Sheriff Jones requested approval of the following budget amendment to provide additional funding for overtime for the Sheriff's Department:

From: 101-39000 - Undesignated Fund Balance - $176,000

To: 101-54110-187 - Overtime Pay - $176,000

Comm. Jernigan made a motion to amend the amount to $80,000

A discussion was held regarding the county's policy relative to Overtime/Compensatory Time. The Finance Director reported a policy could be developed whereby the employee signs stating they are willing to accept compensatory time in lieu of overtime pay. Currently, the county's policy does not include this.

Comm. Jernigan withdrew his motion.

Following discussion, Comm. Jernigan moved, seconded by Comm. P. Johnson to amend the request as follows:

From: 101-39000 - Undesignated Fund Balance - $70,000

To: 101-54110-187 - Overtime Pay - $70,000

The motion passed by roll call vote with Comm. Baxter voting "no", and Comm. McAdoo being absent at that time.

Chairman Evans requested Sheriff Jones provide an estimate of what comp. time is owed to the employees for next month's Budget Committee meeting.

Chairman Evans declared a five minute recess.

GENERAL PURPOSE SCHOOL FUND:

Mr. Jeff Sandvig, Assistant Superintendent, requested approval of the following budget amendment, which revises the 1998 state Safe Schools Act grant:

From: 141-71100-195 - Substitute Teachers - $ 20,000

141-71100-399 - Other Contracted Svc. 100,000

141-72210-308 - Consultants - 11,378

To: 141-72210-457 - In-Service/Staff Develop. - $ 31,378

141-72210-790 - Other Equipment - 100,000

He reported some of the contracts are not going to work out, and they will be buying some security equipment and there will be an in-service for some guidance counselors.

Comm. P. Johnson moved, seconded by Comm. Jernigan to approve the budget amendment as requested.

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

RESOLUTION APPROPRIATING FUNDS FOR CERTAIN SCHOOL CAPITAL PROJECTS:

The Finance Director presented a resolution appropriating the $5,000,000, which was previously approved by the County Commission to fund the stadiums. Mr. Long reported this resolution establishes the amounts between building construction and site development for reporting purposes.

Comm. Jernigan moved, seconded by Comm. Sandlin to approve the resolution as presented and forward the same to the full commission.

The motion passed by roll call vote with Comm. McAdoo being absent at that time.

RESOLUTION AMENDING THE $38.9 MILLION GENERAL OBLIGATION SCHOOL BOND:

Finance Director Paul Long presented a resolution amending and supplementing the resolution adopted by the Board of County Commissioners on October 14, 1999 as it relates to the issuance and sale of not to exceed $38,900,000 General Obligation School Bonds.

Mr. Long explained both the Bond Counsel and the Fiscal Advisor have recommended this resolution be approved by the County Commission.

Mr. Long explained $9.9 million of the $38.9 million has already been borrowed. He stated the remainder will be borrowed later this month, along with the $5 million for the stadiums. In preparing to do that, the bond counsel realized that language had been included in the original $38.9 million resolution, which would require it to be sold as a separate issue. It could be sold simultaneously, but there would have to be separate bids placed, and there would have to be separate bank accounts to clear them through. There would be a lot of extra charges as a result of that. The bond counsel has advised the county will get better bids by amending the resolution to allow the bonds to be sold simultaneously with or as a single issue of bonds together with other bonds authorized by resolution.

Approval of this amendment will allow the resolutions to be packaged together to sell one single issue of $34 million.

Following discussion, Comm. Sandlin moved, seconded by Comm. Jernigan to approve the resolution amending and supplementing the $38.9 million General Obligation School Bonds.

The motion passed by roll call vote with Comm. McAdoo being absent at that time.

CONTRACT BETWEEN RUTHERFORD COUNTY AND TENNESSEE TIRE RECYCLES, INC.:

County Executive Nancy Allen reported this is part of the Waste Tire Program from the State of Tennessee under the Waste Management Act. She explained Rutherford County currently operates under Option 1, where the county collects the tires and waits on a state shredder. The State shreds the tires, and they are placed in the county's Class III, IV Landfill.

This would be moving to Option 3, which is a contract under which the option amount is $70 per ton reimbursed by the State. The actual contract amount with Tennessee Tire Recycles, Inc. is $62.50 per ton.

The program would be covered by the State, and would be effective July 1, 2000. At that point, the tires would be collected and hauled to an end user. This company has approximately 13 contracts with various counties. The most current is Davidson County, which is the bid Rutherford County is buying from.

Following discussion, Comm. Jernigan moved, seconded by Comm. P. Johnson to approve the contract with Tennessee Tire Recycles, Inc. as presented.

The motion passed by roll call vote with Comm. McAdoo being absent at that time.

LONG RANGE BUDGET PROJECTIONS:

Finance Director Paul Long presented a five year budget projection for Rutherford County.

Mr. Long explained the revenue projections for five years. He reported current property tax projections are based on the current tax rate, with growth in the tax base at 6% each year, with the exception of the reappraisal year, where 24% has been projected.

Sales Tax growth for schools has averaged nearly 10% for the past few years. It was assumed that trend would continue for the next two years and slow to about 8.5% thereafter. Growth of rural sales tax collections is estimated at 2.5%.

Mr. Long explained current salaries and benefits are expected to grow at a 6% rate for schools.

Additional cost for new schools was based on estimates provided by the Board of Education, with a 3% inflation factor each subsequent year.

The only new expenditures projected in the General Fund are those for ambulance station expansions that are planned, and five generic new employees per year.

Based on this information, it appears the General Fund could be under funded by $3.8 million next year, which is a tax equivalent of 16 cents next year. In 2002, it would take an 18 cent property tax increase.

Mr. Long explained the long range budget projections for the General Purpose School Fund, which included the opening of Blackman High School, proposed new schools and technology.

In the year 2001, it appears the General Purpose School Fund could be under funded by $9.1 million or a tax equivalent of 45 cents.

Given the current $2.78 property tax rate, that would mean a tax rate of $3.39 next year, $3.85 in 2002, $3.58 in 2003, $3.93 in 2004, and $4.13 in 2005.

Mr. Long presented some possible revenue changes to address, such as allocating half of the current Development Tax revenue to Debt Service, interest earnings for the General Purpose School Fund, distribute additional interest earnings to other funds, allocate TVA State Revenue Sharing to schools, redistribute county's share of sales tax to the Solid Waste Fund, increase the Wheel Tax by $15 and change the allocation to 1/3 for the General Fund, 1/3 to the Road & Bridge Fund and 1/3 to the General Purpose School Fund. Other revenue possibilities are to increase the sales tax by 1/4 cent and negotiate agreements with the cities to allow their share of this increase to be used for Debt Service for schools.

New revenue possibilities are to impose locally a realty transfer tax equal to the state tax and to increase the Development Tax by 100%.

Mr. Long reported the Wheel Tax increase and the sales tax increase will require further action on the commission level or, in the case of sales tax, must go to the public for approval by a referendum. Mr. Long explained, in discussions with some commissioners, it had been concluded if a referendum had to be conducted for a sales tax increase, the county might want to include the increase in the wheel tax as a part of that. He explained a PR campaign will have to be conducted to explain to the public why the county wants to do this and explain clearly to the public what will be done with the money. Mr. Long reported none of these alternatives are temporary measures, they are permanent measures.

Chairman Evans stated he would expect the School Board to do the lion share of the campaign, since they stand to gain the most from the revenue. Chairman Evans stated he believed if the wheel tax increase, the 1/4 cent sales tax increase and perhaps the other suggested additional revenue were packaged into one question on the referendum, it could truly be determined how dedicated the majority of the public is.

The Finance Director explained the realty transfer tax and the increase in the Development Tax will require legislation at the state level. He reported the idea of imposing a local realty transfer tax has already surfaced in the legislature. At least one bill has already been introduced. This would enable county government to impose a realty transfer tax by private act.

With these suggested revenue changes, both the General Fund and the General Purpose School Fund would require a 4 cent property tax increase.

After the possible revenue revisions, the total projected tax rate for the General Fund would be 61 cents next year.

Mr. Long reported, in the General Fund, the fund balance could be spent down somewhat to avoid a tax increase for a couple of years. He stated he did not believe this would be an option for the General Purpose School Fund.

In the General Purpose School Fund, Mr. Long noted a capital outlay note could be issued for the remaining technology funding. The projected property tax rate would be $1.50 next year.

Chairman Evans stated he believed the five year plan should be put before the people. He stated he would like to see it put on the ballot and let the people decide. He stated he believed the cost of a special election would outweigh the amount of revenue that could be generated.

Chairman Evans reported the referendum could not be placed on the ballot for the city elections. He reported the only alternative would be to have a special election. He stated they needed to

relate to their constituents that they either vote for it all or they vote for none. Otherwise, the property tax will bear the burden.

The County Executive reported the clock is ticking, and there are some real issues to address in order to benefit from the revenues by July 1. She explained the Private Act relative to the Development Tax would have to be changed.

Comm. P. Johnson stated there might be a possibility of increasing the fee for the emissions test.

Mr. Long explained currently, the emissions test cost $6 with $4.90 going to the contractor and $1.10 goes to the State. The State in turn reverts 13 cents to the local government. Mr. Long stated there is a need to keep the fee uniform among all of the counties.

Mr. Long reported another revenue that has been looked at would be to increase the Hotel/Motel Tax.

Chairman Evans stated he would like to see the committee, at least, take the concept under advisement and start the lobbying process within their own constituencies.

Comm. Sandlin stated he believed the Finance Director should present the long range budget projections to the full commission.

County Executive Allen stated she believed the long range budget projections should be sent to the full commission, as well as a resolution appropriating the necessary money for the special election and to start the process on the referendum issue.

Following discussion, Comm. Sandlin moved, seconded by Comm. P. Johnson to have the Finance Director present the long range budget projections to the full commission and to appropriate the necessary funding for the special election and to begin the process to schedule a referendum.

Chairman Evans stated the preliminary numbers for the cost of a special election is approximately $30,000.

County Executive Allen stated the Election Commission should be able to provide the specific wording for the referendum at the commission meeting.

The Finance Director stated probably the earliest a referendum could be held would be May, since it cannot be held with any of the primaries or the city election. He stated the commission would probably have to do something in March. He explained once a referendum is called for, the Election Commission has no more than 60 days and no less than 45 days to call the election.

Following discussion, the motion to have the Finance Director present the long range budget projections to the full commission, and to appropriate the necessary funding for the special election, and to begin the process to call for a referendum passed by roll call vote with Comm. McAdoo being absent.

ADJOURNMENT:

There being no further business to be presented at this time, Chairman Evans declared the meeting adjourned at 9:00 P.M.

Elaine Cawthon, Secretary