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BUDGET, FINANCE & INVESTMENT COMMITTEE February 8, 2001 6:15 P.M. Courthouse MINUTES: Members
Present:
Others Present:
Others Present:
Others Present: Comm.
Jerry Baxter
Nancy Allen
Tela Bayless
Tim McLaughlin Comm.
Joyce Ealy
Evans Maples
Tracy
Hill
Mark King Comm.
Joe Frank Jernigan
Comm. Robert Peay
Alan Miller
Clyde Elrod Comm.
Paul Johnson
Bob Shupe
Lynn Smith
Brian Robertson Comm.
Tina Jones
Tommy Sanford
Regina Nelson
Bryan
Brooks Comm.
Dwight Throneberry
Georgia Lynch
Mike Williams
Paul Long Comm.
Jimmy Evans, Jr., Chair.
Eloise Gaither
Jeff Sandvig
Elaine Cawthon Chairman
Evans presided and called the meeting to order with all members being present at
that time. APPROVE
MINUTES: The
minutes of the January 25, 2001 meeting were presented for approval. Comm.
Jones moved, seconded by Comm. Jernigan to approve the minutes as presented. The
motion passed unanimously by acclamation. REPORT
ON AUDIT OF WILLIAM C. BEELER: Mr.
Bob Shupe, Employee Security Planning, addressed the committee regarding the
high health claims costs and a possible audit of the William C. Beeler Company.
Mr. Shupe reported in 1997-98 the total net claims were $6.7 million; in
1998-99 - $7.4 million; in 1999-00 - $10.2 million.
Mr. Shupe reported in 1997-98 there were 11 employees who had claims
exceeding the $50,000 on specific stop loss.
In 1998-99 there were 10 employees who had claims exceeding the $50,0000,
and in 1999-00, there 23 employees who exceeded the $50,000.
In 1998-99, the amount exceeding the specific reimbursement jumped from
$301,189 to $1,039,133 in 1999-00. The
prescription cost jumped from $871,291 in 1998-99 to $1,430,747 in 1999-00.
Mr.
Shupe stated in his estimation, it was not a problem with claims processing on
Beeler’s part. It was just a lot
of claims. He stated it is
cyclical, and an average over three years, there is going to be a bad year.
It
was also mentioned if employees get generic prescriptions, it is reimbursed
100%. Also, the county participates
in a prescription drug program. If
employees present their health insurance card at the pharmacy, the pharmacist is
obligated to price the medication at the best possible price. RENEGOTIATE
HEALTH INSURANCE RENEWAL WITH WILLIAM C. BEELER: Mr.
Shupe reported the Insurance Committee met to discuss the guidelines that were
established at the last bid process. Mr.
Shupe reported the Insurance Committee, as well as he, have been somewhat
pleased in the progress. They still
do not think Beeler is where he needs to be. Mr.
Shupe recommended to the Insurance Committee to evaluate Beeler’s progress
from July 1 to present and request a narrative from Beeler as to what he has
done to overcome the problems and where he is now compared to where he was then.
Mr.
Shupe reported the insurance industry is in turmoil. He explained the re-insurance companies are giving huge rate
increases. He stated it is not a
good time to look around. He stated
for these reasons, he is recommending considering re-negotiating the renewal
with William C. Beeler based upon what is concluded from the evaluation. Budget
Minutes
February 8, 2001
Page Two Following
discussion, Comm. P. Johnson moved, seconded by Comm. Ealy to accept the
recommendation of Mr. Shupe and the Insurance Committee to re-negotiate the
health insurance renewal with William C. Beeler. The
motion passed unanimously by roll call vote. INVESTMENT
REPORT: Mr.
Evans Maples, Trustee, presented the monthly Investment Report for the use and
information of the committee. Mr.
Maples reported 56% of the property taxes have been collected compared to 54.8%
for the same period last year. Mr.
Maples explained the LGIP rate for the month was 5.95%.
Mr. Maples explained the investment transactions that occurred during the
month. Comm.
Jernigan moved, seconded by Comm. Throneberry to approve the Investment Report
as presented. The
motion passed unanimously by roll call vote. FUND
CONDITION REPORT: Mr.
Paul Long, Finance Director, presented the monthly Fund Condition Report for the
use and information of the committee. Mr.
Long reported $208,500 was collected for the Development Tax in January compared
to $132,750 for the same period last year. He explained $1,315,500 has been collected year-to-date
compared to $1,245,375 for the same period last year. Mr.
Long explained the total cash balances are $102,025,801 with $84,327,261 being
operating funds and $17,698,540 being borrowed funds. Mr.
Long reported there is typically an outstanding liability of approximately $2
million in health insurance claims. He
stated the cash balance in the Employee Insurance Fund needs to be at least $2
million in order for it to be at a break-even situation by year-end.
He stated it appears the rate increase that was enacted last year, has
the potential of getting the Insurance Fund to the point it needs to be by June
30. Mr.
Long reported there are no other unusual conditions to report at this time. Comm.
Ealy moved, seconded by Comm. Jernigan to approve the Fund Condition Report as
presented. The
motion passed unanimously by roll call vote. GENERAL FUND BUDGET AMENDMENTS COUNTY
BUILDINGS: County
Executive Allen requested approval of the following budget transfer for the
County Buildings Department to provide funding for contracted cleaning service
in lieu of part-time personnel:
From: 101-51800-169
– Part Time Personnel -
$6,000
To:
101-51800-399 – Other Contracted Services -
$6,000 The
County Executive explained one employee has retired and another employee is out
on sick leave. She also explained
there has been difficulty in getting individuals to work part time. Budget
Minutes
February 8, 2001
Page Three Following
discussion, Comm. Jones moved, seconded by Comm. Baxter to approve the budget
transfer as requested. The
motion passed unanimously by roll call vote. PROPERTY
ASSESSOR: Mr.
Tommy Sanford, Property Assessor, requested approval of the following budget
transfer to provide additional funding for Overtime Pay.
Mr. Sanford explained during the budget process, the Overtime Pay Account
was reduced. He explained he
under-estimated the amount he would need, due to the fact any Compensatory Time
over 240 hours must be paid, and also the Data Processing employees are working
about two hours overtime per day to get ready for reappraisal.
He
reported he has not hired the new employee that was funded in this year’s
budget, because the mapping and GIS is not ready at this time.
He stated he would still need this employee next year.
From: 101-52300-106
– Deputies -
$21,000
To:
101-52300-187 – Overtime Pay -
$21,000 Comm.
Baxter moved, seconded by Comm. Jones to approve the budget transfer as
requested. The
motion passed unanimously by roll call vote. COUNTY
CLERK: Mrs.
Georgia Lynch, Chief Deputy, requested approval of the following budget
amendment to provide funds for unanticipated expenses relating to the computer
system between the Murfreesboro Office & the Smyrna Office.
She reported all the networking equipment was in a very small closet in
the Register of Deeds Office. She
explained it was very hot, and the boards had to be replaced continuously.
She also explained a T1 phone line was being installed at the Smyrna
office. She explained the line cost
approximately $2,000 with a $250 cost per month.
Mrs. Lynch also explained the copy machine broke down, and it was
necessary to replace it with a copy/fax machine.
Mrs.
Lynch explained when it was necessary to repair equipment, they did not have an
account for this, and she requested approval to create an account for repair of
equipment.
Increase Revenue:
101-45110 – County Clerk Excess Fees -
$9,750
Increase Expend.:
101-52500-307 – Communications -
$2,000
101-52500-334 – Maintenance Agreements -
250
(new item)
101-52500-709 – Data Processing Equipment -
7,500
From: 101-52500-330
– Operating Lease Payments -
$1,000
To:
101-52500-336 – Maint/Repair Equipment (new item) -
1,000 Comm.
Jernigan moved, seconded by Comm. Baxter to approve the budget amendments as
requested. The
motion passed unanimously by roll call vote. CIRCUIT
COURT CLERK: Mrs.
Eloise Gaither, Circuit Court Clerk, requested approval of the following budget
transfer to provide adequate funding for the copier and fax machines.
Mrs. Gaither reported the costs of the fax machines were more expensive
than anticipated.
From: 101-53100-599
– Other Charges -
$2,000
To:
101-53100-719 – Office Equipment -
$2,000 Budget
Minutes
February 8, 2001
Page Four Comm.
P. Johnson moved, seconded by Comm. Throneberry to approve the transfer as
requested. The
motion passed unanimously by roll call vote. HEALTH
DEPARTMENT: Mrs.
Tela Bayless, Health Department Director, requested approval of the following
budget amendment, which reduces the amount of the March of Dimes Grant.
Mrs. Bayless explained the amount of the grant was $7,500 for 12 months.
Half of the grant was received at the end of last fiscal year, and the
remainder was received at the beginning of this fiscal year.
She anticipated receiving the grant again at the beginning of 2001, but
the March of Dimes changed the criteria of the grant, and they no longer
qualify:
Decrease Expend.:
101-55110-599 – Other Charges -
$3,832
Increase Fund Balance:
101-39000 -
$3,832 Mrs.
Bayless also requested approval of the following budget amendment to appropriate
a $525 donation/grant from the Murfreesboro Medical Alliance for ultrasound
training for the staff:
Increase Revenue:
101-44570 – Contributions & Gifts -
$525
Increase Expend.:
101-55110-196 – In-Service Training -
$525 Comm.
Baxter moved, seconded by Comm. Throneberry to approve both requests for the
Health Department as presented. The
motion passed unanimously by roll call vote. ANIMAL
SERVICES: Ms.
Tracy Hill, Animal Service Director, requested approval of the following budget
transfer to allow her to hire a second supervisor, provide adequate funding for
the Overtime Account, In-Service
Training, and Gasoline. Ms.
Hill reported she is not going to hire an Assistant Director, and therefore, the
money is available in that account:
From: 101-55120-103
– Assistant -
$17,600
To:
101-55120-105 – Supervisor -
$12,000
101-55120-187 – Overtime Pay -
3,600
101-55120-196 – In-Service Training -
1,000
101-55120-425 – Gasoline -
1,000 Comm.
Jones moved, seconded by Comm. P. Johnson to approve the budget transfer as
requested. The
motion passed unanimously by roll call vote. EMERGENCY
MEDICAL SERVICES: County
Executive Allen requested approval of the following budget amendment to provide
adequate funding for the Gasoline Account due to the increase in gasoline
prices:
From: 101-39000
-
Undesignated Fund Balance -
$15,000
To:
101-55130-425 – Gasoline -
$15,000 Comm.
Baxter moved, seconded by Comm. Ealy to approve the budget amendment as
requested. The
motion passed unanimously by roll call vote. Budget Minutes February 8, 2001 Page Five CORRECTIONAL
WORK CENTER: Mr.
Alan Miller, Correctional Work Center Superintendent, requested approval of the
following budget transfer to provide adequate funding for the Part Time
Personnel Account. Mr. Miller
explained he has had to utilize more part time employees to cover full time
positions:
From: 101-54220-160
– Guards -
$15,000
To:
101-54220-169 – Part Time Personnel -
$15,000 Comm.
P. Johnson moved, seconded by Comm. Throneberry to approve the request as
presented. The
motion passed unanimously by roll call vote. JUVENILE
DETENTION: Ms.
Lynn Smith, Juvenile Detention Center Director, requested approval of the
following budget amendment to provide adequate funding for the Part Time
Personnel and associated benefits. Ms.
Smith explained during the budget process, a part time staffing schedule was
developed; however, the schedule was inadequate, and it has caused the account
to be short. Ms. Smith explained
with the help of the Finance Department and the County Executive, it has been
determined there will not be enough available funds to operate the plan.
From: 101-39000
– Undesignated Fund Balance -
$12,590
To:
101-54240-169 – Part Time Personnel -
$10,600
101-54240-187 – Overtime Pay -
1,000
101-54240- 201 – Social Security -
720
101-54240-204 – State Retirement -
100
101-54240-212 – Employer Medicare -
170 The
Finance Director reported during the budget process, he and the County Executive
worked closely with the director at that time to develop a part time staffing
plan. When Ms. Smith was hired as
the director, she reviewed the plan and discovered more personnel were being
worked on the various shifts than should have been. Mr. Long explained Ms. Smith has also determined the staffing
plan is not adequate; however, she is going to try to remain on the plan for the
remainder of this fiscal year. Mr.
Long explained by utilizing the current staffing plan and projecting it out for
the remainder of the year, the Part Time Personnel Account will be short. Following
discussion, Comm. P. Johnson moved, seconded by Comm. Baxter to approve the
budget amendment as requested. The
motion passed by roll call vote with Comm. Jernigan voting “no”. Ms.
Smith requested approval of the following budget amendment, which provides
adequate funding for employee insurance. More
eligible employees have chosen to participate in the County’s health insurance
program since the beginning of the fiscal year:
From: 101-58600-205
– Employee Benefits -
$860
To:
101-54240-205 – Employee & Dependent Insurance -
$860 Comm.
Baxter moved, seconded by Comm. Jones to approve the budget amendment as
requested. The
motion passed unanimously by roll call vote. Budget Minutes February 8, 2001 Page Six SHERIFF’S
DEPARTMENT: Regina
Nelson, Chief Deputy, requested approval of the following budget amendment to
provide additional funding for the Drugs & Medical Supplies Account and the
Medical & Dental Services Account:
From: 101-39000
– Undesignated Fund Balance -
$160,553
To:
101-54210-413 – Drugs & Medical Supplies -
$ 90,000
101-54210-340 – Medical & Dental Services -
70,553 Ms.
Nelson explained the Drugs & Medical Supplies have almost been depleted.
She stated the amount for the Medical & Dental Services is to cover
one medical bill for an inmate. She
stated this bill is just from the hospital and does not include the doctor’s
bills, lab bills or medications. She
stated the inmate was a diabetic and had many complications.
She explained they are trying to work out something with the doctors to
possibly get the bills reduced. She
explained there will probably be another $100,000 in bills to come in on just
this one inmate. She
reported there will also be another case where the inmate has had to have a
colostomy, and they have not begun to receive any bills on that inmate at this
point. Ms.
Nelson reported they are spending approximately $20,000 per month on medical
supplies. The
committee discussed the possibility of paying the bills as they come in and
adjusting the accounts accordingly after they occur. The
Finance Director explained technically he is not suppose to pay a bill unless
there is an appropriation to cover it. He
stated if the committee directed him to do it, he would.
He stated the medical supplies are running approximately $20,000 per
month, and one month there was a bill to one pharmacy for about $23,000.
Mr.
Long reported something he would like to explore would be to get the same
pricing arrangement for prescriptions for county employees extended to inmates.
Chairman
Evans suggested one thing the committee could be careful of would be to deny any
line item transfers from the two medical accounts to other accounts later in the
year. Following
discussion, Comm. Jernigan moved, seconded by Comm. Ealy to approve the budget
amendment for $160,553 from Undesignated Fund Balance to 54210-413 – Medical
Supplies - $90,000 and 54210-340 – Drugs & Medical Services - $70,553. The
motion passed unanimously by roll call vote. Ms.
Nelson requested approval of the following budget amendments to appropriate a
contribution of $1,609 for the Mounted Patrol and to appropriate $3,987 for
confiscated property:
Increase Revenue:
101-44570 – Contributions & Gifts -
$1,609
Increase Expend.:
101-54110-399 – Other Contracted Services -
1,609
Increase Revenue:
101-42910 – Proceeds from Confiscated Property -
$3,987
Increase Expend.:
101-54110-505 – Judgments -
$3,987 Comm.
P. Johnson moved, seconded by Comm. Baxter to approve the amendments as
requested. The
motion passed unanimously by roll call vote. Ms.
Nelson requested approval of the following budget amendment to appropriate the
proceeds for the Juvenile Accountability Incentive Block Grant: Budget
Minutes
February 8, 2001
Page Seven From:
101-39000 – Undesignated Fund Balance -
$25,565 To:
101-54110-429 – Instructional Supplies & Materials -
$20,265
101-54110-709 – Data Processing Equipment -
5,000
101-54110-196 – In-Service Training -
300 Comm.
P. Johnson moved, seconded by Comm. Throneberry to approve the budget amendment
for the Juvenile Accountability Incentive Block Grant as requested. The
motion passed unanimously by roll call vote. Ms.
Nelson requested approval of the following budget amendment, which appropriates
proceeds from the Federal Government for the Local Law Enforcement Block Grant:
From: 101-39000
– Undesignated Fund Balance -
$30,601
To:
101-54110-716 – Law Enforcement Equipment -
$30,601 Comm.
Throneberry moved, seconded by Comm. Baxter to approve the budget amendment for
the Local Law Enforcement Block Grant as requested. The
motion passed unanimously by roll call vote. MISCELLANEOUS: Finance
Director Paul Long requested approval of the following budget amendment to
provide adequate funding for settlements in various civil rights violations.
Mr. Long reported The Hartford Insurance Company covers the county on
Property & Casualty. He
explained anytime there is a litigation, the Hartford appoints attorneys to
represent the county. The county
has received an invoice for $50,603.15 for settlements of which $13,675.78 is
School Board related cases:
From: 101-39000
– Undesignated Fund Balance -
$31,930
To:
101-58900-505 – Judgments -
$31,930 Comm.
Baxter moved, seconded by Comm. Throneberry to approve the budget amendment as
requested. The
motion passed unanimously by roll call vote. SOLID
WASTE/SANITATION FUND BUDGET AMENDMENT: County
Executive Allen requested approval of the following budget amendment to provide
additional funding for the Diesel Fuel and Gasoline accounts at the Landfill:
From: 116-55770-399
– Disposal Fee -
$5,000 Comm.
Throneberry moved, seconded by Comm. Ealy to approve the budget amendment as
requested. The
motion passed unanimously by roll call vote. ROAD
& BRIDGE FUND BUDGET AMENDMENT: Mr.
Mike Williams, Road Superintendent, requested approval of the following
budget amendments due to increased cost in the county’s health
insurance, increased cost of fuel, and Overtime Pay due to bad weather: Budget
Minutes
February 8, 2001
Page Eight
From: 131-62000-205
– Employee & Dependent Insurance -
$6,000
To:
131-61000-205 – Employee & Dependent Insurance -
$1,000
131-66000-299 – Other Fringe Benefits -
$5,000
From: 131-62000-402
– Asphalt -
$35,000
To:
131-63100-412 – Diesel Fuel -
$35,000
From: 131-61000-187
– Overtime Pay -
$2,500
To:
131-63100-187 – Overtime Pay -
$2,500 Comm.
Ealy moved, seconded by Comm. P. Johnson to approve the budget amendments as
requested. The
motion passed by roll call vote with Comm. Jernigan voting “pass”. RECOMMENDATION
REGARDING NEW HIGHWAY DEPARTMENT FACILITY: Mr.
Williams reported, after receiving an engineering study from Huddleston/Steele
that said everything would work regarding a land swap, the Road Board voted to
approve the land swap for the Samsonite ball field property provided it is
deeded in the Highway Department’s name as the existing property is now.
Mr. Williams stated the second part to the recommendation is if the
county approves the land swap, the Highway Department be allowed to utilize its
ending fund balance to hire an engineer and construct the new highway department
facility. County
Executive Allen reported the land being swapped would be the Samsonite ball
field property for the property where the Highway Department is currently
located. It is a swap between
Rutherford County and the Highway Department.
The Samsonite property is currently owned by the county and leased to the
city. Mr.
Williams requested the committee approve the concept with the stipulation he
will come back to the committee and ask for an amendment when the total cost is
known. Finance
Director Paul Long suggested the money be transferred to a capital project fund
when the cost is known. Mr.
Williams explained he did not anticipate starting on the construction until late
fall, and estimated it would take approximately one year to complete.
Mr. Williams stated it would cost approximately $375,000 to fill in the
property, which will be done from his existing budget. Following
discussion, Comm. Ealy moved, seconded by Comm. Jones to accept the
recommendation of the Public Works Committee to approve the concept of a land
swap between Rutherford County and the Highway Department for the Samsonite ball
field property and to allow the Highway Department to utilize its ending fund
balance to hire an engineer for the purpose of constructing a new Highway
Department facility. The
motion passed by roll call vote with Comm. Jernigan voting “pass”. SCHOOL
BUILDING PROGRAM BUDGET AMENDMENTS: Mr.
Jeff Sandvig, Assistant Superintendent, requested approval of School Building
Program Budget Amendments for Phase I of $25 from Smyrna Middle to portable
re-roofing. On
Phase II Elementary Projects, Mr. Sandvig requested $3,076 be transferred to
Elementary Repair from Furniture & Equipment, Technology, and Site
Development at Barfield and Rock Springs Elementary Schools. Regarding
Phase II High School Repair, Mr. Sandvig requested $30,454 be transferred to
Riverdale Building Improvements and Riverdale Baseball Building.
Budget
Minutes
February 8, 2001
Page Nine Regarding
Phase III Elementary, Mr. Sandvig requested a transfer of $147,361 to cover two
change orders at Blackman Elementary, and a similar change order at Wilson
Elementary covering concrete pads for lockers in the halls for 4th
and 5th, intercoms, and the bell systems. Following
discussion, Comm. Throneberry moved, seconded by Comm. Baxter to approve the
School Building Program transfers as requested. The
motion passed unanimously by roll call vote. REPORT
ON PERFORMANCE BOND & ADDITIONAL WORK ON SMYRNA HIGH TURN LANES: Mr.
Tim McLaughlin addressed the committee regarding the issue of the performance
bond and additional work on the Smyrna High turn lanes as discussed at previous
meetings. Mr.
McLaughlin explained when the project was originally designed; the State
Department of Transportation would not give an exit out of the property.
Mr. McLaughlin reported, after some time, they were finally allowed to
move the fence. When it was
designed, it was discovered the Smyrna water line was not at the depth it was
believed. He stated in order to get
the proper depth, they either had to move a major water line or fill above the
water line. He stated they chose to
fill, which was a $16,000 change order. He said the price was about the same, but he said there were
also a lot of other utilities there, such as cable TV, gas line, phone lines,
etc. He said it was not a design
error or a construction error. He
said it was a change in site condition, which no one accounted for. Later
on, when the construction was ending, there were slope problems.
The outside of the slope was failing, and the estimated cost was $15,000
to $16,000 to fix. He stated some analysis was done of that, and the
determination was that it was the contractor’s problem.
The slope was giving away, because there was not proper compaction of the
soil and there was too much moisture in the soil when the soil was placed.
He explained they went back to Hurst Construction and told them they had
to fix it, which they did at no cost to the Board. Mr.
McLaughlin stated since both problems were about $16,000, that is what has
caused the confusion, but it was two separate issues. REQUEST
FOR COMMUNITY CARE CAPITAL NEEDS: Mr.
Mark King, Community Care Administrator, addressed the committee to request
capital items totaling $222,000 be included in the budget for 2001-02.
He explained the bulk of the $222,000 is for a roof on the old wing that
has not been renovated. He stated it was previously recommended when the Phase II
renovation occurs that the old wings be demolished. However, he stated he was proposing not to demolish the wings
and that they be used for multiple purposes. He
stated there are about fifty beds that are original, and he requested these beds
be upgraded and improved so they can compete in the market. Comm.
Throneberry stated Community Care still had $30,000 the county has given them.
He explained the Health & Education Committee recommended this
$30,000 be used for the resident room furniture.
Mr.
King stated that money was given for operations, but they do not need it for
operations and would like to use it for what the lease says money from the
county would be used for. Mr.
King stated they are cash flowing and they will not be back to the county for
operations money. He stated from a
lease standpoint, he would like the lease honored and capital improvements
maintained. He stated it is the
county’s land, and he would like to see it improved so they can compete.
APPROVE
OFFICIAL BOND FOR MICHAEL HAMMOND: An
Official Statutory Bond for County Public Officials for Michael Hammond, Third
District Constable, was presented to the committee for approval. Budget
Minutes
February 8, 2001
Page Ten Comm.
Throneberry moved, seconded by Comm. Baxter to approve the Official Bond for
Michael Hammond as presented. The
motion passed unanimously by acclamation. ADJOURNMENT: There
being no further business to be presented at this time, Chairman Evans declared
the meeting adjourned at 8:06 P.M.
________________________________________ Elaine Cawthon, Secretary
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