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BUDGET, FINANCE & INVESTMENT COMMITTEE
February 7, 2002 6:15 P.M. Courthouse
MINUTES:
Members Present: Others Present: Others Present: Comm. Joyce Ealy Nancy Allen Bob Asbury Comm. Paul Johnson Evans Maples Jeanne Grant Comm. Tina Jones Comm. Grant Kelley Hulon Watson Comm. Robert Peay Bob Shupe Jeff Sandvig Comm. Steve Sandlin Jim Cope Leffel Brown Comm. Dwight Throneberry Mike Nunley Bryan Brooks Comm. Jimmy Evans, Chair. Regina Nelson Paul Long Curtis Little Elaine Cawthon
Chairman Evans presided and called the meeting to order with all members being present.
APPROVE MINUTES:
The minutes of the January 10, 2002 meeting were presented for approval.
Comm. Jones moved, seconded by Comm. Throneberry to approve the minutes as presented.
The motion passed unanimously by acclamation.
INVESTMENT REPORT:
Mr. Evans Maples, Trustee, presented the monthly Investment Report for the information and use by the committee.
Mr. Maples advised 54.11% of the property taxes have been collected compared to 56.26% for the same period last year.
Mr. Maples reported the LGIP interest rate for the month was 2.16%. He explained the investment transactions that occurred during the month.
Comm. Jones moved, seconded by Comm. Ealy to approve the Investment Report as presented.
The motion passed unanimously by acclamation.
FUND CONDITION REPORT:
The Finance Director reported $282,750 was collected during the month of January for the Development Tax. The total collected year-to-date is $1,959,000 as compared to $1,315,500 for the same period last year. Mr. Long advised it appeared the projected revenue for the year would be achieved.
Mr. Long reviewed the fund cash balances. The total cash balances were $118,370,701, with operating funds being $82,713,117 and borrowed funds being $35,657,584.
Mr. Long reminded the committee the interest earnings would be substantially below the projections due to the low interest rates.
A discussion was held regarding the Employee Insurance Fund. The cash balance at the end of January was $2,138,507. Mr. Long advised the fund still owes the General Fund $1.5 million.
A discussion was held regarding the cash balance of the Lascassas Demolition in the amount of $75,870.50. The County Executive advised this is in litigation pending the identification of the heirs involved.
Budget Minutes February 7, 2002 Page Two
Following discussion, Comm. P. Johnson moved, seconded by Comm. Sandlin to approve the Fund Condition Report as presented.
The motion passed unanimously by acclamation.
RECOMMENDATIONS FROM INSURANCE COMMITTEE:
The Insurance Committee forwarded a recommendation to the Budget Committee to allow the County to bid the employee health benefits insurance coverage to be effective July 1, 2003 instead of July 1, 2002.
Mr. Bob Shupe distributed an analysis of the Monthly Aggregate Claim Report for July 1, 2001 through December 31, 2001. The net claims for the six-month period totaled $6,297,038. He advised approximately $13 million is projected for the year, and the county is right on target for that.
Mr. Shupe also reported that last year the county went from $50,000 to $100,000 on the Specific Stop Loss, because there was a tremendous saving in premium. He advised through six months, it appears this was a good decision.
He advised the insurance marketplace is in a lot of turmoil. He reported there are some excellent new models appearing on the market, but that he is not comfortable looking at them for July of this year. However, he stated he believed he would be online to be ready to re-bid the insurance by next spring for July, 2003.
He also advised he is not comfortable with what might happen with the county’s property and casualty renewal. He reported with what happened on September 11, he is particularly concerned with property premium renewals.
Following discussion, Comm. P. Johnson moved, seconded by Comm. Throneberry to accept the recommendation of the Insurance Committee to defer the re-bidding of the employee health benefits package until 2003 to be effective July 1, 2003.
Mr. Shupe also advised he has handled several January 1 renewals. He explained it used to be he could get absolutely firm numbers 30 to 60 days before the renewal. He said now every quote he has received has said it is contingent upon looking at claims at the end of the policy period. He stated when he presents numbers regarding the renewal, there would more than likely be a contingency that the companies will want to see the claims as of June 30. He advised the numbers could change.
The Finance Director advised that since the county has just changed to a new network, and if the insurance is bid this year, the network will be one of the items for consideration. He stated the county would not really have been with the PHCS network long enough to know if the county should stay with them or not. He stated by deferring the re-bidding for one year that would give more time to analyze the new network.
Following discussion, the motion to accept the recommendation of the Insurance Committee to defer the re-bidding of the employee health benefits package until 2003 to be effective July 1, 2003 passed unanimously by roll call vote.
The Insurance Committee also forwarded to the Budget Committee a recommendation to authorize Bob Shupe, as the agent for Rutherford County, to negotiate with Middle Tennessee Medical Center for better discounts. That discount would remain undisclosed and on file at the hospital.
Mr. Shupe advised there are
two ways to save costs, and that is to shift costs or reduce it. He stated in
this case, it would be to reduce the cost. He stated in order to accomplish
this, he would need for the County to give him, as an agent for Rutherford
County and the County Executive, the authority to negotiate with Middle
Tennessee Medical Center to see if the hospital will give Budget Minutes February 7, 2002 Page Three
more discount than they are giving now. He advised this would be a separate contract aside from the network contract. He reported he has discussed this with the County Attorney. He stated he could not say what the discount would be, but if it was anything, it is more than the county is receiving now.
Mr. Shupe advised in order to do this, he would negotiate with the hospital that the co-insurance would be increased if an employee goes there. For instance now the employee pays 20%, and the insurance plan pays 80%. In the new scenario, the employee might pay 15%, and the insurance plan would pay 85%.
Mr. Shupe requested the county give him the opportunity to go to the hospital and negotiate that discount. Mr. Shupe advised the county has paid MTMC $1.2 million through six months.
A discussion was held regarding Mr. Shupe reporting back to the county, and the county commission ultimately approving the contract. Mr. Shupe advised there were some confidentiality issues with the hospital. He stated hospitals call the discounts proprietary information, and they do not allow the amount of the discounts to be disclosed.
Mr. Shupe stated it would not be a bad deal for the county to go to 85%/15%, because the out-of-pocket has not been changed. It will take the employee longer to get to the out-of-pocket, but it is no more money to the county.
Mr. Shupe advised he would not be charging an additional fee for negotiating the discount. He stated it would be a win-win situation for the county. He stated the county could not lose anything. All the county could do is gain if some additional discount could be negotiated with them.
The Finance Director stated Mr. Shupe would have to make sure the additional discount is large enough to indemnify the county for the additional 5% exposure the county would be accepting on the claims. He stated otherwise, the Employee Insurance Fund would be losing money.
Mr. Shupe stated the out-of-pocket would not change. However, Mr. Long stated the fund share would change. Mr. Long stated the county may not be accepting any additional exposure on the portion the employee has met his out-of-pocket on. He stated the county would be paying 100% of that either way. Mr. Long noted he would want to do a lot of analysis on that to determine how much is below stop loss and how much is above it. He stated every possible measure had been looked at to try to save money, short of reducing the co-pay. He stated now the co-pay is going to be increased, and he was concerned that the county might lose some of the savings they are trying to generate.
Chairman Evans stated he did not know if he could be comfortable with the process unless the committee had some kind of understanding on it. He asked Mr. Shupe if there could not be some understanding whereby as long as the Finance Director and the County Executive were comfortable with the deal, that the committee would not necessarily have to know the specifics. Chairman Evans stated Mr. Shupe was the expert in the insurance part of it, but the County Finance Director was the county’s expert in the county’s overall financial preparedness.
A discussion was held on what would happen to the agreement if the county ever changed insurance providers.
Comm. Sandlin stated if the county does not know what they are negotiating, why are we doing it?
Mr. Shupe stated it would
be a greater convenience to the employees, because they will not have to pay as
much per claim until they reach their our-of-pocket. He stated he did not mean
to indicate that it would be a saving to the employee. He stated he still
contends that it would be a saving to the county overall, because the ceiling is
not being raised on the out-of-pocket. He stated he had no control over the
fact that the discount could not be disclosed. He stated the hospital is not
going to allow the numbers to be publicized. He stated they are not known now. Budget Minutes February 7, 2002 Page Four
Mr. Shupe advised his responsibility is to keep the insurance plan healthy. He advised he would make any recommendation that he believed would do that no matter how unpopular it is.
Chairman Evans stated he had some concerns about the secrecy issue. He stated it was not that he had to know. He stated Mr. Shupe has said he would be seeking advice from the County Finance Director. He advised as long as the committee could be assured that it met with the approval of Mr. Shupe, the Finance Director and the County Executive, he could be for it.
Comm. Peay stated he felt the same way. He stated he did not have a problem with Mr. Shupe talking to the hospital, but he could not vote for it until Mr. Long and Mrs. Allen said it would be favorable to the county. He stated if a contract could be made with the hospital whereby the Finance Director and the County Executive say it is a positive thing, he did not have a problem with that. He stated that would have to happen before he could vote for it.
Comm. Johnson asked if the committee could recommend that Mr. Shupe negotiate for this, but not seal the deal until a recommendation is brought back through the insurance committee and then back to the Budget Committee. He stated there are so many unanswered questions. He stated he believed there should be some leeway to try to negotiate, but not solidify a contract until everyone is comfortable with it.
Comm. Jones asked how that could be done if there was a confidentiality agreement? Mr. Shupe stated if the administrative staff for the county has reviewed it and feel secure with it, then the recommendation to the Insurance Committee could be that the numbers have been verified and it does appear the county will benefit from it and that the County Executive be authorized to execute the contract.
Chairman Evans stated the hospital would have to talk to the County Executive and the Finance Director and let them know the specifics of the contract. He stated if the hospital would not let them know, he could not be for the deal no matter what it was.
Comm. P. Johnson stated the County Executive is the Chairperson of the Insurance Committee. He stated if the County Executive, the Finance Director and Mr. Shupe were comfortable with what transpired with the hospital and presented that to the Insurance Committee he thought that would be sufficient.
The Finance Director asked Mr. Shupe if he reports to the Insurance Committee that the contract with the hospital looks cost effective, then Mr. Shupe would be recommending to the Insurance Committee that the Plan Document be revised to read that the co-payment for services provided at that facility would be 85%, otherwise they would be 80% in the network. Mr. Shupe agreed this was correct.
Following discussion, Comm. Sandlin moved to deny the recommendation of the Insurance Committee to allow Mr. Shupe to negotiate on behalf of the County for a larger discount at Middle Tennessee Medical Center.
The motion failed for the lack of a second.
Comm. P. Johnson moved, seconded by Comm. Ealy to authorize Bob Shupe with Employee Security Planning, to negotiate with Middle Tennessee Medical Center on behalf of Rutherford County for a better discount for County employees; and if the County Executive and the Finance Director are comfortable with Mr. Shupe’s recommendation, they are to make another recommendation to the Insurance Committee who will then forward that recommendation to the Budget Committee.
The Finance Director stated
the confidentiality agreement would not prevent he and the County Executive from
saying that they think the 5% additional exposure might cost the county a
certain amount of money, however, the agreement with the hospital will save more
than that. The Finance Director stated they will have to work with the numbers,
and they will have to know what the additional 5% is going to cost. Budget Minutes February 7, 2002 Page Five
Following discussion, the motion to authorize Mr. Shupe to negotiate with Middle Tennessee Medical Center on behalf of Rutherford County for a better discount for County employees; and if the County Executive and the Finance Director are comfortable with Mr. Shupe’s recommendation, they are to make another recommendation to the Insurance Committee who will then make another recommendation to the Budget Committee passed by roll call vote with Comm. Sandlin voting “no”.
GENERAL FUND BUDGET AMENDMENTS
COUNTY ATTORNEY:
Mr. Jim Cope, County Attorney, requested approval of the following budget transfer to provide adequate funding for the attorneys to attend a required annual conference:
From: 101-51400-435 – Office Supplies - $450 To: 101-51400-355 – Travel - $450
Comm. Throneberry moved, seconded by Comm. Ealy to approve the budget transfer as requested.
The motion passed unanimously by acclamation.
AMBULANCE SERVICE:
Mr. Mike Nunley, Ambulance Service Director, requested approval of the following budget transfer to provide additional funding for an upgrade to the cardiac monitor/defibrillator contract and for maintenance on the cascade tank filling system. He also requested approval of a budget amendment appropriating insurance proceeds for the Vehicle Maintenance Account:
Increase Revenue: 101-44520 – Insurance Recovery - $663 Increase Expend.: 101-55130-338 – Maint./Repair Vehicles - $663
From: 101-55130-435 – Office Supplies - $ 2,100 101-55130-451 – Uniforms - 8,000
To: 101-55130-312 – Contracts w/Private Agencies - $10,100
Mr. Nunley advised he plans to re-bid the cardiac monitor/defibrillator contract next year.
Comm. Peay moved, seconded by Comm. Jones to approve the budget amendments for the Ambulance Service as requested.
The motion passed unanimously by roll call vote.
REQUEST APPROVAL OF CHRISTY HOUSTON GRANT FOR AMBULANCE SERVICE:
Mr. Nunley advised the committee of a grant award in the amount of $110,357 which was received from the Christy Houston Foundation for the purpose of providing funds to purchase one fully equipped advanced life support ambulance and one 15 passenger van.
Mr. Nunley requested approval of the following budget amendment to appropriate the grant funds:
Increase Revenue: 121-48610 – Donations - $110,357 Increase Expend.: 121-55130-718 – Motor Vehicles - $110,357
Mr. Nunley advised they are
having tremendous difficulty in keeping the ambulances in their zones due to the
fact they are transporting patients to Nashville hospitals. He advised they
transfer, on the average, about 215 calls per month to Nashville. He stated
when he transfers Budget Minutes February 7, 2002 Page Six
someone from Middle Tennessee Medical Center to Nashville that ambulance is out of the zone for about three hours. He reported the people in that zone are not going to get a timely ambulance response. He stated it has gotten to the point that multiple ambulances are out of their zones at a given time. He advised this is not a problem just associated with Rutherford County. Other counties are experiencing it, too. He stated Warren County asked for an Attorney General’s opinion. He stated the opinion basically states the county’s primary responsibility is to its citizens and not providing agency transfers.
He advised the other issue is psychiatric transfers. He stated they are required by law to transport psychiatric patients to Nashville. He advised each transfer takes approximately four hours, because they are required to wait at Middle Tennessee Mental Health Institute until they decide if they are going to take them or not. He stated it is not just the Ambulance Service, because while they transport a large number of psychiatric patients, the Sheriff’s Department transports an equal number.
Mr. Nunley explained that by receiving the grant from Christy Houston, it will require employees to staff the ambulance and the van. He advised he is proposing to staff them with four people, and have them overlap so that they will have coverage from approximately 6:30 A.M. until 9:00 P.M. He stated it would require two paramedics and two EMT’s. Mr. Nunley advised he might be able to get by with using a driver instead of an EMT.
Mr. Nunley stated he could fund this out of this year’s budget, because the current budget includes funding for four employees beginning in April for the Siegel Road Station, which is not going to be complete. He advised he would not be able to fund them next year.
Mr. Nunley advised the job descriptions have not been classified yet. He stated he expected them to be quite a bit less than the current classification for paramedics. He stated it would probably cost between $10 to $12 and hour. He estimated the total cost, less benefits, at approximately $126,000 per year.
Mr. Nunley advised the ambulance has already been bid, and they could probably have it within 30 days. He explained the van could be purchased from the State bid list, and could be received sooner than that.
Chairman Evans stated if this is approved, they would be guaranteeing four new employees for next year, plus any others that might come up during the budget process.
Mr. Nunley advised he would be billing for these runs. He estimated they would collect about $950,000 per year on these calls.
Following discussion Com. Sandlin moved, seconded by Comm. Throneberry to accept the Christy Houston Grant in the amount of $110,357 to purchase one fully equipped advanced life support ambulance and one 15 passenger van and to approve the budget amendment appropriating the grant funds as requested.
Comm. Jones advised the Budget Committee previously approved a resolution requiring anyone requesting a grant that would require additional dollars to advise the committee that such a grant has been applied for.
Chairman Evans noted the application date of the grant was December 11, and it would have been helpful to be informed that the grant had been applied for. He suggested that the departments be notified of this requirement, and that in the future an item be on the Budget Committee’s agenda notifying of such grant applications. He stated the department head would not necessarily have to attend the meeting.
Following discussion, the
motion to accept the Christy Houston Grant in the amount of $110,357 to purchase
one fully equipped ambulance and one 15 passenger van and to approve the budget
amendment appropriating the grant funds passed unanimously by roll call vote.
Budget Minutes February 7, 2002 Page Seven
SHERIFF’S DEPARTMENT:
Chief Regina Nelson requested approval of the following budget amendment to provide additional funding for inmate clothing, food preparation supplies and food supplies to cover estimated expenses for the remaining year:
From: 101-39000 – Undesignated Fund Balance - $193,147
To: 101-54210-441 – Prisoner’s Clothing - $ 7,147 101-54210-421 – Food Preparation Supplies - 6,000 101-54210-422 – Food Supplies - 180,000
Chief Nelson also requested approval of the following budget amendment to appropriate contributions and stall rental received for the mounted patrol:
Increase Revenue: 101-44570 – Contributions & Gifts - $ 3,150 101-44120 – Lease/Rentals - 135
Increase Expend.: 101-54110-399 – Other Contracted Svc. $ 3,285
Comm. P. Johnson suggested the budget amendments be voted on separately.
Comm. Sandlin moved, seconded by Comm. Peay to approve the amendment appropriating $193,147 from Undesignated Fund Balance to Prisoner Clothing, Food Preparation Supplies, and Food Supplies as requested.
Comm. P. Johnson advised when each department was asked to reduce their spending by 5%, the Sheriff’s Department had estimated they could reduce their spending by $199,772 in various line items. He asked if they had looked within their budget to try to find funding for the prisoner’s clothing, food preparation supplies and food supplies. He stated an additional $300,000 had already been approved for medical supplies and medical and dental expenses.
Chief Nelson explained the reason they are requesting this amendment is because the inmate population has increased dramatically since the beginning of the budget. She stated she did not believe they would be able to transfer it from the other line items. Chief Nelson stated they estimated they would like to be able to save that amount of money, but she did not believe they would be able to save that much.
Comm. P. Johnson amended the motion, seconded by Comm. Throneberry that the $193,147 requested for prisoner’s clothing, food preparation supplies and food supplies be taken from the projected $199,772 in estimated savings.
The Finance Director asked Chief Nelson if the projected savings was still a valid estimate and if the Sheriff’s Department was trying to keep some positions vacant to try to achieve the savings in the Other Salaries & Wages Account.
A discussion was held on the number of state prisoners at the jail. Major Asbury advised there are approximately 300 inmates that are serving state time. He stated not all of them are eligible to go to the penitentiary. He stated approximately 91 are waiting to go to the state penitentiary. He stated there are approximately 50 parole violators who are waiting to either go back to the state penitentiary or get paroled back out. He stated there are approximately 200 total prisoners that are state prisoners. The state only takes about 10 prisoners every couple of months.
County Executive Allen
stated there is no incentive for the state to take them. She said at $35 a
prisoner, it is cheaper for the county to house the state prisoners as opposed
to the state taking them. She said the state no longer pays for pre-trial
detainees. She advised across the State of Tennessee that amounts to about $17
billion to local governments. She stated this is an issue that should be on the
table for the legislators. She stated she would be happy to meet with the
Sheriff and go meet with the legislators again. Budget Minutes February 7, 2002 Page Eight
Chairman Evans suggested a letter be sent to the local delegation making them aware once again and asking for some assistance in solving this.
Comm. Jones advised there may be rulings that have been handed down to counties from the United States District Court and the United States Court of Appeals that would require the State to pick up state prisoners from the counties within a certain number of days. She stated she believed it would be worth it to look into this further.
Major Asbury advised they call the State every week or two to come get some of the prisoners. Major Asbury stated 25% of the state’s prison population is housed in local county jails.
Comm. Jones stated it might be helpful if they had some documentation that would help them understand that it is time to pick up the state prisoners.
The Finance Director stated the point is that they are state inmates, tried by state judges on state offenses. He stated he agreed with Comm. Jones, and if it was taken to U. S. District Court and the case argued, the court has to understand that and recognize it is the State’s responsibility to house them, not counties. He stated there is some precedent that indicates the court has in the past, ordered the State to come to a county and get the prisoners out of a jail. He advised it is a matter of someone taking the initiative to file that lawsuit.
Chairman Evans asked if they could ask the County Attorney to do that?
The Finance Director stated they could probably ask him to research the cases and ask him to look into what the basis was and what the circumstances were and see if they fit the criteria.
A discussion was held on whether to revise the budget amendment for the food preparation supplies and food supplies to come from within the existing budget from the projected savings. Chief Nelson stated there was probably enough money available to last about two months.
Comm. P. Johnson stated it did not appear that the money was needed immediately. He stated he did not see the urgency of the situation. He believed there was time to act on it later.
Comm. Peay stated he agreed. He stated he did not mind looking at the line items to see if some of the money could come from the existing budget.
Following discussion, Comm. P. Johnson withdrew his amendment to the motion, and Comm. Throneberry agreed to withdraw his second to the motion.
Comm. Sandlin withdrew his motion to approve the $193,147 from Undesignated Fund Balance, and Comm. Peay agreed to withdraw the second to the motion.
Major Asbury and Chief Nelson agreed to withdraw the request for the $193,147 for the prisoner clothing, food preparation supplies and food supplies until they could further analyze their accounts.
Comm. Peay moved, seconded by Comm. Sandlin to approve the budget amendment appropriating the Contributions & Gifts in the amount of $3,150 and Lease/Rentals in the amount of $135 for the Mounted Patrol as requested.
The motion passed unanimously by roll call vote.
Comm. Jones moved, seconded by Comm. Peay to direct the County Attorney to research case law with regard to state prisoners being picked up from counties. She requested that this be performed in an expeditious fashion, and that he report his findings at the next Budget Committee meeting. She requested the County Attorney research case law specifically for Hamilton County, but not limited to Hamilton County.
The motion passed
unanimously by acclamation. Budget Minutes February 7, 2002 Page Nine
SPECIAL PURPOSE FUND BUDGET AMENDMENT
DOMESTIC VIOLENCE GRANT:
Ms. Jeanne Grant, Domestic Violence Grant Coordinator, requested approval of the following budget amendment to provide funding to purchase a copy machine, fax machine and software:
From: 121-53110-189 – Other Salaries & Wages - $5,000
To: 121-53110-435 – Office Supplies - $1,000 121-53110-719 – Office Equipment - 4,000
The Finance Director advised the amendment had been revised since the Public Safety Committee approved it. It is the same amount, but is being split between two accounts. He reported the grant was set up to begin in July, but Ms. Grant was not hired until October. He explained there is going to be some savings in the grant, but the grantee agency has said to spend the money, because they do not want it back. He advised Ms. Grant may present another amendment next month to address the maintenance agreement.
Chairman Evans stated it might be possible to pre-pay the maintenance agreement.
Following discussion, Comm. P. Johnson moved, seconded by Comm. Ealy to approve the budget amendment as requested.
The motion passed unanimously by roll call vote.
LOCAL PURPOSE TAX FUND BUDGET AMENDMENT:
Finance Director Paul Long requested approval of the following budget amendment, which corrects the appropriation, approved last month for the Smyrna Animal Services Location. This amendment allows the funds to be transferred to the General Capital Projects Fund where the $1.7 million in borrowed funds was deposited, thereby accounting for this project in one fund:
From: 120-91140-706 – Building Construction - $715,000 To: 120-99100-590 – Operating Transfers - $715,000
Comm. Throneberry moved, seconded by Comm. Jones to approve the budget amendment as requested.
The motion passed unanimously by roll call vote.
GENERAL DEBT SERVICE FUND BUDGET AMENDMENT:
The Finance Director requested approval of the following budget amendment, which closes the remaining balance of the County Office Building project into the General Debt Service Fund:
Increase Revenue: 151-49900 – Residual Equity Transfers - $125 Increase Undesignated Fund Balance: 151-39000 - $125
Comm. Ealy moved, seconded by Comm. Jones to approve the budget amendment to close the balance of the County Office Building project into the General Debt Service Fund as requested.
The motion passed unanimously by acclamation.
SCHOOL BUILDING PROGRAM BUDGET AMENDMENT:
Mr. Jeff Sandvig and Mr.
Hulon Watson, School Superintendent, requested approval of the following School
Building Program amendments to reallocate funds within each school project
increasing the budget for furniture, equipment, or architects fees where needed: Budget
Minutes February 7, 2002
Page Ten
Phase III Siegel Middle:
From: Building Construction - $ 30 Other Capital Outlay - 3,970
To: Furniture & Fixtures - $ 2,884 Equipment - 1,116
Phase III Blackman Elementary:
From: Other Capital Outlay - $ 5,335
To: Architect - $ 2,565 Furniture & Fixtures - 2,215 Equipment - 555
Phase III Wilson Elementary:
From: Other Capital Outlay - $ 891 To: Architect - $ 891
Comm. Throneberry moved, seconded by Comm. Ealy to approve the School Building Program budget amendments as requested.
The motion passed unanimously by roll call vote.
REQUEST FUNDING FOR CHRISTIANA MIDDLE SCHOOL:
Chairman Evans advised the School Board had decided that it was not for the community schools concept, and that is was for building the comprehensive high schools, middle schools and elementary schools as currently structured. He stated it was his understanding the Christiana School would be built as a middle school to stay a middle school.
The original request for the construction of the school was $15,968,500, less $470,000 that was already funded.
The Finance Director provided a comparison of School Board funding request to the average cost of Blackman and Siegel Middle Schools. The analysis indicated the average cost of the Siegel Middle School and the Blackman Middle School was $14,446,226.
The Finance Director reported the analysis also shows the cost of the Rock Springs Middle School. He advised it falls in line with the other two schools with the exception of the site development.
Mr. Long took the average of the Siegel Middle and Blackman Middle Schools and added a three-percent inflation factor for a total of $14,800,000. He explained $470,000 has already been approved for funding, making the total needed $14,330,000.
Comm. Throneberry asked if the school was needed now.
Mr. Watson advised the school was needed. He stated they would have to do some zoning. He reported he had to make recommendations to the Board on proper zoning. He stated this school is a part of the projections. He stated they could not just take the students out of Barfield and Christiana. He advised there are still 124 portables across the county, and they have students in them.
Budget Minutes February 7, 2002 Page Eleven
Comm. Throneberry stated the problem he has is there are schools that are half full, specifically Rockvale. He also stated Walter Hill and Wilson Elementary are not full. He stated some students will be pulled from Blackman Middle, and that will lower that student population.
Mr. Watson stated the Blackman zone, the way it stands now, will decrease in size. He stated they couldn’t continue to have schools that over-crowded and other schools that are not full. He stated he presented a zoning plan that was a balanced zone. He stated he would continue to do those things. He stated it is a difficult thing to continue to move students from one school to another, but in a growing county they have to do that.
Chairman Evans asked why
the School Board waits and announces the zoning after a school is completed. He
asked what stops the school board, in advance of the school breaking ground,
from zoning. That way when someone moves into an area, they know what school
they will be going to in the future. Mr. Watson stated zoning could not be done until a school is approved. He stated they would recommend a zone for Siegel High School this year. He stated the school would not be open until next year.
Chairman Evans stated he believed zoning in advance is a wonderful idea. That way there are no surprises.
Mr. Watson stated they could not do zoning for a school that has not been funded. He explained they have public hearings. He stated they do the zoning fairly quickly after the school is funded. He stated they do long lead times for zoning. Mr. Watson stated as soon as the school is funded, he could put together a zoning proposal. Mr. Watson explained he develops a zone and makes a recommendation to the Board. The Board previews the zone, and then they conduct public hearings. Sometimes the Board will change his proposal.
Mr. Sandvig stated in an area such as La Vergne, if zoning was done two years out, the zoning would have to be fairly loose. If not, a 1,000 student school could be open with 1,200 students in the zone.
Mr. Watson stated the county is within two schools of being in the most comfortable position they have been in for 15 to 20 years.
Comm. Sandlin asked what the difference would be by funding it in next year’s budget as opposed to the current year.
The Finance Director stated as far as funding it now or in September with the same target date, it really doesn’t make that much difference. He explained whatever debt is issued this spring, is not paid on until the next year. He stated there is going to be some stress in the school’s operating budget next year. He stated the only way there would be any real saving is to delay the opening one year.
Following discussion, Comm. Throneberry moved, seconded by Comm. P. Johnson that $14 million, in addition to the $470,000 already approved, be funded for the Christiana Middle School for a turnkey project to include furniture, technology and equipment.
The motion passed unanimously by roll call vote.
ADJOURNMENT:
There being no further business to be presented at this time. Chairman Evans adjourned the meeting at 9:15 P.M.
__________________________________________ Elaine Cawthon, Secretary |
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