BUDGET, FINANCE & INVESTMENT COMMITTEE

 

March 8, 2001                                        6:15 P.M.                                        Courthouse

 

MINUTES:

 

Members Present:                                 Others Present:            Others Present:

Comm. Jerry Baxter                              Nancy Allen                Joe McKenzie

Comm. Joyce Ealy                                Evans Maples             Chuck Clark

Comm. Joe Frank Jernigan                    Tela Bayless               Jim Estes

Comm. Paul Johnson                             Wanda Watkins         Dan Mitchell

Comm. Tina Jones                                 Johnny Crivello          Joe Black Hayes

Comm. Dwight Throneberry                  Mike Nunley              Larry Sims

Comm. Jimmy Evans, Jr., Chair.            Steve Smith                Bryan Brooks

                                                             John Davis                Paul Long

                                                             Hooper Penuel          Elaine Cawthon

                                                             Linda Vincion

 

 

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

 

APPROVE MINUTES:

 

The minutes of the February 8, 2001 meeting were presented for approval.


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

 
The motion passed unanimously by acclamation.

 

INVESTMENT REPORT:

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

Mr. Maples reported the LGIP interest rate for the month was 5.46%.  There were no investment transactions during the month.

Mr. Maples reported 80.95% of the 2000 property taxes have been collected as of the end of February.

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

The motion passed unanimously by roll call vote.

 

FUND CONDITION REPORT:

Finance Director Paul Long presented the Fund Condition Report for the period ending February, 2000.

Mr. Long reported $219,750 was collected during the month of February for the Development Tax.  This compares to $433,125 for February, 2000.

The total fund cash balances were $112,187,743, with $93,566,750 being operating funds $18,620,993 being borrowed funds.

Mr. Long advised there are no unusual conditions to report.

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

The motion passed unanimously by roll call vote.

 

Budget Minutes                                    March 8, 2001                                                            Page Two

 

 

GENERAL FUND BUDGET AMENDMENTS

 

INFORMATION TECHNOLOGY:

Finance Director Paul Long requested approval of the following budget amendment for the Information Technology Department to provide adequate funding for the Employee Insurance Account for the remainder of the fiscal year:

 

            From:         101-58600-205 – Employee Insurance -                               $580

            To:            101-52600-205 – Employee & Dependent Insurance -            $580

 

Comm. Baxter moved, seconded by Comm. Jones, to approve the budget amendment for the Information Technology Department as requested.

  The motion passed unanimously by roll call vote.

 

AGRICULTURE EXTENSION:

  Finance Director Paul Long requested approval of the following budget amendment for the Agriculture Extension Department to provide adequate funding for the Employee Insurance Account for the remainder of the fiscal year:

 

            From:        101-58600-205 – Employee Benefits -                                  $180

            To:            101-57100-205 – Employee & Dependent Insurance -            $180

 

Comm. Baxter moved, seconded by Comm. Throneberry, to approve the budget amendment for the Agriculture Extension Department as requested.

The motion passed unanimously by roll call vote.

 

HEALTH DEPARTMENT:

Mrs. Tela Bayless, Health Department Director, requested approval of the following budget transfer to provide adequate funding for the Employee Insurance Account and the Data Processing Account to allow for the purchase of 15 computer terminals for the new Health Department Facility.

Ms. Bayless advised this account is supported with 100% State funding.

 

            From:   101-55190-349 – Printing, Stationery & Forms -                        $  900

                        101-55190-355 – Travel -                                                              500

                        101-55190-399 – Other Contracted Service -                              5,850

                        101-55190-499 – Other Supplies/Materials -                              3,000

                        101-55190-506 – Liability Insurance -                                         2,490

 

            To:       101-55190-205 – Employee & Dependent Insurance -           $3,040

                        101-55190-709 – Data Processing Equipment -                       9,700

 

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

The motion passed unanimously by roll call vote.

Ms. Bayless requested approval of the following budget amendment to provide adequate funding for the Employee Insurance Account in the Local Health Department Account:

 

            From:        101-58600-205 – Employee Benefits -                                  $132

            To:            101-55110-205 – Employee & Dependent Insurance -            132

 


Budget Minutes                                    March 8, 2001                                                            Page Three

 

 

Comm. Baxter moved, seconded by Comm. Throneberry to approve the budget amendment for the Local Health Department as requested.

The motion passed unanimously by roll call vote.

 

GENERAL SESSIONS COURT:

Mrs. Wanda Watkins, General Sessions Court, requested approval of the following budget amendment to provide adequate funding for the Employee Insurance Account for the remainder of the fiscal year:

 

            From:         101-58600-205 – Employee Benefits -                                  $1,490

            To:            101-53300-205 – Employee & Dependent Insurance -            1,490

 

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

The motion passed unanimously by roll call vote.

Mrs. Watkins requested approval of the following budget transfer to provide adequate funding for the Communications Account for the remainder of the fiscal year:

 

            From:         101-53300-435 – Office Supplies -                                   $400

            To:            101-53300-307 – Communications -                                  400

 

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

The motion passed unanimously by roll call vote.

 

ANIMAL SERVICES:

Mr. Johnny Crivello, Animal Services Department, requested approval of the following budget transfer to appropriate insurance proceeds received for a vehicle that was involved in an accident:

 

            Increase Revenue:            101-44520 – Insurance Recoveries -                 $986

            Increase Expend.:            101-55120-338 – Maint./Repair Vehicles -         986

 

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

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 donation received from Pack’s Towing & Recovery for the dive team for the recovery of vehicles:

 

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

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

Mr. Nunley also requested approval of the following budget transfers to fund a paramedic position to replace one who has been out on sick leave since June, 2000.  The employee will be using his sick time until August, 2001, and will not return to work.  There is also one employee on maternity leave, which has resulted in a tremendous amount of unscheduled overtime being paid.

 

Budget Minutes                                    March 8, 2001                                                            Page Four

 

 

From:         101-55130-735 – Health Equipment -                              $10,171

 

            To:            101-55130-133 – Paraprofessionals -                               $  7,587

                             101-55130-204 – State Retirement -                                       671

                             101-55130-201 – Social Security -                                          470

                            101-55130-212 – Employer Medicare -                                   110

                           101-55130-205 – Employee & Dependent Insurance -          1,333

 

Following discussion, Comm. P. Johnson moved, seconded by Comm. Ealy to approve the budget amendment for the $300 contribution and the budget transfers totaling $10,171 for the temporary employee.

  The motion passed unanimously by roll call vote.

 

CRIMINAL COURT (DRUG COURT):

County Executive Nancy Allen requested approval of the following budget transfer to provide adequate funding for the Employee Insurance Account for the Drug Court Coordinator and the Police Liaison:

 

            From:        101-53200-189 – Other Salaries & Wages -                           $532

            To:            101-53200-205 – Employee & Dependent Insurance -            $532

 

Comm. Baxter moved, seconded by Comm. Throneberry to approve the budget transfer as requested for the Drug Court Coordinator.

The motion passed unanimously by roll call vote.

 

EMERGENCY MANAGEMENT:

Mr. Steve Smith, Emergency Management Director, requested approval of the following budget transfers to provide adequate funding for gasoline due to increased fuel cost and Furniture & Fixtures to purchase modular workstation furniture and service counter for the reception area:

 

            From:        101-54430-399 – Other Contracted Services -                     $3,000

           

            To:            101-54430-425 – Gasoline -                                                $1,000

                             101-54430-711 – Furniture & Fixtures -                                2,000

 

Comm. Baxter moved, seconded by Comm. Jones to approve the budget transfers as requested.

  The motion passed unanimously by roll call vote.

 

APPROVE HMEP GRANT FOR EMERGENCY MANAGEMENT:

Mr. Smith requested approval of a Hazardous Materials Emergency Planning Grant in the amount of $6,516 to be used to purchase two laptop computers with mapping capabilities to be placed in response vehicles.  They will also be used as a technical resource on hazardous chemical spills.  Mr. Smith advised the grant is an 80%/20% split, with the county’s share being $1,303.20.

Comm. Jernigan moved, seconded by Comm. P. Johnson to approve the HMEP Grant for the Emergency Management Department as requested.

The motion passed unanimously by roll call vote.

Finance Director Long advised the committee the proper budget amendment reflecting the federal share would be drafted and presented to the full commission meeting on March 15.

 


Budget Minutes                                    March 8, 2001                                                            Page Five

 

 

PLANNING DEPARTMENT:

Mr. John Davis, Planning Director, requested approval of the following budget transfer to provide adequate funding for the Legal Notices Account due to the number of applications, and to cover additional part time personnel expenses:

 

            From:         101-51720-103 – Assistants -                               $15,000

 

            To:            101-51720-169 – Part Time Personnel -                $13,700

                             101-51720-332 – Legal Notices -                             1,300

 

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

The motion passed unanimously by roll call vote.

 

ELECTION COMMISSION:

Mr. Hooper Penuel, Election Registrar, and Mrs. Linda Vincion requested approval of the following transfers to allow for the replacement of a Shouptronic voting machine cartridge reader and to provide funding to purchase new furniture to upgrade the office appearance.  Mr. Penuel advised plans are to complete the office upgrade over a three-year period:

 

            From:   101-51500-196 – In-Service Training -                      $3,555

                        101-51500-334 – Maintenance Agreements -              1,500

                        101-51500-337 – Maint./Repair Office Equip. -          1,500

                        101-51500-351 – Rentals -                                         1,500

                        101-51500-425 – Gasoline -                                          200

 

            To:       101-51500-709 – Data Processing Equip. -                $3,500

                        101-51500-711 – Furniture & Fixtures -                      4,755

 

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

  The motion passed unanimously by roll call vote.

 

APPROVE REQUEST FOR POSITION UPGRADE FOR ELECTION COMMISSION:

  Mr. Penuel requested approval of the committee to upgrade position number 1033 from an Election Assistant, pay grade 11, to Election Assistant, Senior, pay grade 12.  Mr. Penuel requested the upgrade be retroactive to February 5, 2001.  Mr. Penuel advised the request is being made after receiving correspondence from DMG-Maximus indicating the person in this position meets the criteria for the higher graded position.  This action will result in an additional salary payment of $351 during the current fiscal year.  However, Mr. Penuel advised they are able to absorb this cost from payroll savings from a vacant position.

Following discussion, Comm. Jernigan moved, seconded by Comm. Throneberry to approve the request to upgrade position 1033 from Election Assistant, pay grade 11, to Election Assistant, Senior, pay grade 12 retroactive to February 5, 2001.

The motion passed unanimously by roll call vote.

 

SOLID WASTE/SANITATION FUND BUDGET AMENDMENTS

 

CONVENIENCE CENTERS:

County Executive Allen requested approval of the committee for the following transfer to provide adequate funding for Diesel Fuel for the Convenience Centers due to increased cost and usage:


Budget Minutes                                    March 8, 2001                                                            Page Six

 

 

            From:        116-55732-467 – Fencing -                                              $15,000

            To:            116-55732-412 – Diesel -                                                $15,000

 

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

The motion passed unanimously by roll call vote.

 

APPROVAL TO APPROPRIATE FUNDING FOR FRONT-END LOADER:

County Executive Allen requested approval of the committee for the following budget amendment to fund $150,000 from the Development Tax for a front-end loader at the Convenience Centers as recommended by the Public Works Committee.  Mrs. Allen advised the committee an accident involving a front-end loader occurred approximately two months ago, in which the front-end loader was demolished:

 

            From:        120-39000 – Undesignated Fund Balance -             $150,000

            To:            120-99100-590 – Transfers to Other Funds -         $150,000

 

The County Executive reported there were only two front-end loaders, this one being the backup.  If the other front-end loader goes down, the county will have to contract with a private company to be able to service all of the city schools, all of the county schools, and all of the county office buildings.

The committee discussed the $1.5 million that was transferred to the Debt Service Fund from the Landfill Closure.  It was previously approved that these funds would go toward a new Animal Control Facility, and the committee discussed possibly using the funds to purchase the front-end loader.

The Finance Director reported there was only $105,000 left in the Landfill Closure Project, as the remaining funds had been transferred to the Debt Service Fund.  Mr. Long reported if the caption of the note or bond did not specifically include the purchase of equipment, then equipment cannot be purchased with these funds. 

Mr. Long advised the $1.5 million that was transferred to the Debt Service Fund can be used to retire debt.  He explained the original intention of the $1.5 million was to issue a short-term note to fund an Animal Services Facility.  He advised the committee this money could be used to issue a short-term note for the front-end loader.

Comm. Jones suggested the remaining $105,000 in the Landfill Closure Project be transferred to the Debt Service Fund, and these funds be used to retire a short-term note for the front-end loader. 

County Executive Allen advised the $105,000 was being held in case there were any issues significant to the actual closure and the cap that had to be repaired.  She stated it was merely a precautionary measure.  She stated she thought it would be fine to use the $105,000 to purchase the front-end loader. 

Mr. Long stated if that is what the committee wanted to do, he would recommend transferring the $105,000 to the Debt Service Fund and issue a short-term capital outlay note to fund the front-end loader. 

Following discussion, Comm. Jernigan moved, seconded by Comm. Jones to transfer the balance of the Landfill Closure Project of $105,000 to the Debt Service Fund, and to issue a short-term capital outlay note to purchase the front-end loader to be repaid from the Debt Service Fund.

The motion passed unanimously by roll call vote.

 

Budget Minutes                                    March 8, 2001                                                            Page Seven


GENERAL PURPOSE SCHOOL FUND BUDGET AMENDMENTS:

 

Finance Director Long requested approval of the following budget amendments for the General Purpose School Fund as follows:

 

            From:   141-71100-116 – Teachers -                                $300,000

                        141-71100-201 – Social Security -                          18,600

                        141-71100-204 – State Retirement -                        11,160

                        141-71100-212 – Employer Medicare -                    4,350

 

            To:       141-71300-116 – Teachers -                                $300,000

                        141-71300-201 – Social Security -                           18,600

                        141-71300-204 – State Retirement -                        11,160

                        141-71300-212 – Employer Medicare -                    4,350

 

In the past the teachers who taught both regular and vocational classes tended to be set up as regular teachers.  This amendment separates the cost of teaching the vocational classes from the regular education cost.  No new positions are involved.  It is a shift between regular and vocational education, which better reflects the costs.

Mr. Long requested approval of the following budget amendment, which reclassifies the SRO’s in the 2000/01 budget in accordance with the Department of Education’s use of the chart of accounts:

 

            From:        141-72130-160 – Guards -                                   $467,614

            To:            141-72130-399 – Other Contracted Svc. -             467,614

 

Mr. Long requested approval of the following budget amendment for the General Purpose School Fund, which transfers funds from the Other Supplies & Materials Account to Equipment.  This request was made to move to current technology for the three schools opening next fall, a server dedicated to Food Service, and new software at the Central Office level are needed:

 

            From:        141-73100-499 – Other Supplies & Materials -                $11,000

            To:            141-73100-710 – Food Service Equipment -                    $11,000

 

Following discussion, Comm. Throneberry moved, seconded by Comm. Jernigan to approve the transfers of $334,110 for the Vocational teachers, $467,614 to reclassify the SRO’s, and the $11,000 for the technology for three schools, server for Food Service, and new software at the Central Office.

The motion passed unanimously by roll call vote.

 

RECOMMENDATION RELATIVE TO IMPACT FEE BEING CHARGED BY TOWN OF SMYRNA FOR NEW ROCK SPRINGS MIDDLE SCHOOL:

Comm. Jones stated at some point she would like Comm. Throneberry and the Finance Director to explain the Impact Fee being charged by the Town of Smyrna to the Rutherford County School System. 

Comm. Throneberry stated Mr. Watson has reported the School Board will receive more back from the Town of Smyrna than the charge of the Impact Fee for moving rock and installing the turn lanes.  Comm. Throneberry advised the Health & Education Committee has requested Mr. Watson get this agreement in writing from the Town of Smyrna, and Mr. Watson stated he would do this.  The Health & Education Committee took no action, but Mr. Watson is to report back to them.  Smyrna is going to build the turning lanes, and they are going to move the rock.

The Finance Director reported it is his understanding Smyrna is going to pay the School Board for the rock. 

 

Budget Minutes                                    March 8, 2001                                                            Page Eight

 

The committee discussed if the county had ever paid an Impact Fee to another municipality.  Mr. Long reported Murfreesboro does not have an impact fee.  Mr. Long reported the county pays a lot of infrastructure improvements when a school is built in the City of Murfreesboro, and the county will not have to do that in Smyrna.  Smyrna is going to do the infrastructure improvements.

Comm. Jones stated Smyrna is doing that by saying the county is paying an Impact Fee.  She stated it should be called what it is.  If the county is building a road, it should be called an appropriation for road construction or moving rock.  She stated she believed the county would be setting a dangerous precedent by paying impact fees to municipalities.

Chairman Evans stated it is the growth in that municipality that is causing the county to spend that money.  He stated he was also concerned about the language.  He stated if the county is getting a free road in return for paying sewer fees, the word impact fee or development tax fee, could cause problems down the road.

Finance Director Long stated he agreed, and in his opinion it should have been a contracted payment. 

Comm. Jones moved, seconded by Comm. Throneberry to forward to the School Board, with a copy to the Health & Education Committee, to request the Town of Smyrna rephrase the agreement relative to the Rock Springs Middle School so that the language reflects the actual exchange of goods and services being performed and not to be called an Impact Fee.

The motion passed unanimously by roll call vote.

Chairman Evans stated the impact of the school is minimal.  He stated Smyrna has had the growth of the subdivisions, and that is what has required the county to build the schools.  The county is providing for the growth by building the schools.  The county is not causing additional growth; the growth is already there. 

 

DEBT SERVICE FUND BUDGET AMENDMENTS:

Finance Director Paul Long requested approval of the committee for the following budget amendment to reflect the transactions relating to the refunding bond issue the county will close on March 22 and to also reflect the accrued interest received on the $30.85 million school bond issue.  Mr. Long advised the committee the bonds have been sold, and the county achieved in excess of a $2.7 million saving on that issue.

Mr. Long reported the money would actually be wired from the purchaser to the agent; however, the auditors will want the county’s financial records to reflect the transactions.

 

            Increase Revenue:         151-49400 – Proceeds of Refunding Bonds -            $73,585,000

                                                151-49410 – Premium on Bonds Sold -                            605,046

                                                151-44510 – Accrued Interest on Debt Issues -                202,476

 

            Increase Expend.:        151-99300-699 – Payment to Refunded Bond

                                                                            Escrow Agent -                                    $74,074,350

                                                151-51900-606 – Other Debt Issuance Charges -                   115,037

 

            Increase Fund Balance:            151-39000 -                                                         $     203,135

 

            Increase Revenue:            151-44510 -  Accrued Interest -                                  $       86,421

            Increase Fund Balance:    151-39000 -                                                                         86,421

 

 

Comm. Throneberry moved, seconded by Comm. Baxter to approve the Debt Service Fund Budget Amendments to reflect transactions relative to the refunding bond issue and accrued interest received on the $30.85 million school bond issue.

Budget Minutes                                    March 8, 2001                                                            Page Nine

 

 
The motion passed unanimously by roll call vote.

 

AMENDMENT RELATIVE TO UNALLOCATED PROCEEDS AND PREMIUM ON $30.85 MILLION SCHOOL BOND ISSUE FOR THOMPSON LANE/SIEGEL ROAD INFRASTRUCTURE:

Mr. Long informed the committee, relative to the $30.85 million School Bond Issue, there was $37,154 in unallocated original proceeds, plus the county received a premium in the amount of $297,062.  Mr. Long reported he has been advised by bond counsel that because of complications in the IRS tax code, it would be better if the county would allocate this money to a capital project instead of putting it into the Debt Service Fund. 

Mr. Long proposed an option to the committee to utilize the unallocated proceeds of $37,154, plus the premium of $297,062 toward the Thompson Lane Improvement Project, which will be presented to the committee later in the meeting.  Mr. Long advised the committee the language of the bond resolution does allow the funds to be used for a project such as this.

The committee reviewed the proposal from the City of Murfreesboro relative to the Thompson Lane Improvement Project indicating the county’s share in the project is $244,035.

Comm. Jernigan moved, seconded by Comm. Baxter to allocate the excess bond proceeds of $37,154 and the premium of $297,062 for the Thompson Lane/Siegel Road infrastructure as follows:

 

            Increase Revenue:            171-49410 – Premium on Bond Issue -            $297,062

                                                   171-49100 – Bond Proceeds -                             37,154

 

            Increase Expend.:            171-91200-799 – Other Capital Outlay -          $334,216

 

The motion passed unanimously by roll call vote.

 

RECOMMENDATION TO PURCHASE PROPERTY FOR NEW AGRICULTURE EXTENSION FACILITY:

Mr. Joe McKenzie and Mr. Jim Estes addressed the committee regarding a proposal from Mr. Thomas M. Lane for 45.1 acres located at Gresham Lane and John Rice Boulevard as the site for a new Agriculture Extension Facility.

Mr. Estes, advised the proposal was presented to the Property Management Committee and was forwarded to the Budget Committee to find a source of funding.

Mr. Estes reported the property is priced at $50,000 per acre for a total of $2,255,000.

Mr. Estes advised the committee six proposals were received, and this property met all nine criteria established by the Conservation Board.   

Mr. Estes reported Mr. Lane has offered the county terms of a down payment of $255,000 with the balance to be financed at 6% interest for 10 years.  Interest payments are to be made every six months and payment on principal is to be made during the first week of January of each year beginning in 2002 and concluding 2011.

Mr. Estes also advised the committee Mr. Lane has offered to donate $200,000 to the county for some type of facility at that site, with the donation to be made sometime after closing. 

Mr. Long advised the committee the Development Tax would be one source for the $255,000 down payment.  He also reported the General Fund ending balance was another source that could be used.  He stated the Debt Service fund balance could not be used to make a down payment. 

 

Budget Minutes                                    March 8, 2001                                                Page Ten

 

A discussion was held regarding the $200,000 donation Mr. Lane has offered to give to the project.  It was determined that Mr. Lane had offered to make the donation in accordance with the building plans and his personal tax structure, which could be next year.

Comm. Jernigan moved, seconded by Comm. Throneberry to appropriate the $255,000 from the General Fund ending fund balance for the down payment on the 45.1 acres located at Gresham Lane and John Rice Boulevard for the new Agriculture Extension Facility.

Mr. Long advised the committee when the $200,000 donation is received, a new project will be set up in Fund 171, General Capital Projects.  The money will be held there until the project is started.

Mr. Long reported, as far as the Development Tax is concerned, the revenue is not coming in as estimated.  He stated this also means not as much will be transferred to the Debt Service Fund.  He explained he was projecting there will be approximately $3 million to $3.5 million in the Development Tax at the end of the year, provided it is not hit too hard the rest of the year.  He said he did not think it would have an effect on the county’s bond rating to take it from the General Fund.  He said all the Development Tax can be used for is capital projects; however, the General Fund can be used for any purpose.  He stated the Development Tax might be the better source.

Following discussion, Comm. Jernigan withdrew his motion, and Comm. Throneberry withdrew the second to the motion.

Mr. Long reported it has been recommended to fund two new ambulance stations from the Development Tax next year.

Mr. Long advised there is $250,201.91 remaining in the Garage Remediation Project in Fund 171.  He stated he believes that project is complete, and the City of Murfreesboro might owe the county a rebate relative to that project.  He stated he is in the process of trying to finalize the numbers.  He stated he would probably know the amount by the time of the County Commission Meeting on March 15. 

Following discussion, Comm. Jernigan moved, seconded by Comm. Baxter, to utilize the remaining funds in Fund 171, General Capital Projects, for the Garage Remediation Project, plus any refund received from the City of Murfreesboro to pay the $255,000 down payment for the 45.1 acres at Gresham Lane and John Rice Boulevard for a new Agriculture Extension Facility.  If adequate funding does not materialize in the project, the down payment is to be appropriated from the Development Tax.

The motion passed by roll call vote with Comm. Jones voting “pass”.

 

SALE/LEASE PURCHASE OF REGIONS BANK BUILDING:

Mr. Larry Sims, Sims Realty, addressed the committee regarding a proposal by Mr. Charlie Farrer to offer the county a lease or lease purchase arrangement regarding the Regions Bank Building.

Mr. Sims provided a drawing proposing a courtroom for Judge Scott, file room, Youth Services & mediation room.  This would be for 6,890 square feet.  For five years, the monthly lease payment would be $9,602.92.  The monthly lease rates include property taxes and insurance.  The county would be responsible for all utilities.

Mr. Sims advised if the county wanted to consider a purchase or lease purchase, the price would be $1,247,000, which would include a much better roof than was previously discussed.  He stated it was going to cost approximately $160,000 to $180,000 to remodel the building to construct the courtrooms.  Mr. Sims advised the cost does include security equipment. 

 

 

Budget Minutes                                    March 8, 2001                                                            Page Eleven

 

Comm. Baxter advised the Property Management Committee has sent this issue to the Budget Committee without a recommendation.

Comm. P. Johnson reported according to his calculations the lease payment would be approximately $16.72 per sq. ft.

Comm. Sims reported the average base rent in this area would be approximately $11.50 to $13.50 per sq. ft.  However, the difference in this case, is that Farrer Brothers will be doing a lot of remodeling to put the court system in.

Comm. Jernigan reported the reason the Property Management Committee sent this item to the Budget Committee without a recommendation was because they wanted to know how the Budget Committee felt about the project. 

Comm. Baxter stated he was not in favor of a long-term lease.  He stated he had talked with Judge Scott about the building, and she has advised him she is fairly comfortable where she is.  He stated she needed office space, and she has received the grand jury room.  He stated Judge Scott is well satisfied using the grand jury room along with one of the courtrooms.  He stated if Judge Scott told him he should pursue this building for office space and a juvenile courtroom for her, he would be 100% in favor of it.  He stated he is not in favor of a long-term lease.  Comm. Baxter stated if the Budget Committee was in favor of a short-term lease on a temporary basis, he would support that. 

Chairman Evans stated he would like to have Judge Scott report to the committee next month to tell them what she thinks.

Mr. Sims reported the county’s lease amount would not include any increases.  He stated it would be $9,602.92 monthly for 60 months.

Comm. Jernigan stated if this item was sent back to the Property Management Committee, it would only be fair to Farrer Brothers that they could take if off the market if they so desired. 

Following discussion, Comm. Throneberry moved, seconded by Comm. Jernigan to send the lease or lease purchase proposal on the Regions Bank Building back to the Property Management Committee with Judge Scott to attend and report to the committee if she is comfortable where she is or if she is crowded.  If Judge Scott reports she is crowded and needs new space, Property Management is to study the situation.

Comm. Jernigan stated if Judge Scott reports to the Property Management Committee she is crowded and needs new space and the Property Management Committee approves the Regions Bank Building, he expects Judge Scott to report the same thing to the Budget Committee.

The motion to send the Regions Bank Building lease or lease purchase proposal back to the Property Management Committee passed unanimously by roll call vote.

APPROVE CONCEPT OF I-24 ELAM ROAD INTERCHANGE TO US 231:

County Executive Allen presented a proposed Resolution regarding construction of the I-24/Elam Road Interchange to U.S. 231.

Comm. Baxter stated he would like for the committee to consider that from U.S. 231 South over to U.S. 41 be named Ed Elam Parkway.

County Executive Allen reported the City of Murfreesboro has already named the first stretch the Joe B. Jackson Parkway, and it has been approved by the State.

County Executive Allen advised the committee of the cost estimates.  She reported the City of Murfreesboro is funding the engineering and rights-of-way.  The County Executive explained the

 

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county and the City of Murfreesboro would also be funding $1,738,000 each for the construction, with the proposed State funding to be $3,476,000.

The County Executive advised this does not require the appropriation of any funds at this time.  She reported funding would not be required until July, 2002.  At that time, the State would require a deposit of the full amount.  She explained approval of the concept would obligate the County for $1,738,000 if the State participates.

Following discussion, Comm. Baxter moved, seconded by Comm. P. Johnson to move forward with the concept of the I-24/Elam Road Interchange to U.S. 231 (Joe B. Jackson Parkway).

The motion passed by roll call vote with Comm. Jernigan voting “pass”.

 

OTHER BUSINESS

COUNTY PAY PLAN:

Comm. Jernigan reported he would like to discuss the County Pay Plan.  He stated last year, the County Commission went on record with the county pay plan and the new personnel study to allow Department Heads to recommend step increases for employees based on merit.  He advised the committee he had received several calls, and apparently the pay plan is being changed whereby employees will only receive a standard raise or a one step increase without employee performance being considered. 

County Executive Allen stated an option would be a merit raise.  She reported there are a few cities that have implemented that type of system, and at least one county is looking at it.  The County Executive reported with that program, employee evaluations would have to be done approximately every six months, with every employee receiving the same evaluation criteria.  The Department Heads and Supervisors must be trained to perform the evaluations.  One city does a six-month evaluation.  After three months, the evaluation is performed again, and if the employee has not improved, the employee is terminated.  This particular city does not give across the board raises at all.  They only give merit raises. 

She advised the other issue is there is a formula that determines the availability of the raises.  She also advised the evaluations have to be completed with a certain time frame.

The County Executive explained Rutherford County does not have a Human Resource Department to assist in terms of if the county is in compliance with all of the necessary laws, or to assist in training to be sure all employees are treated fairly in a merit raise environment.  She said it would have to be determined if merit raises will be given, and in addition to that, give across the board raises.  She said there are a lot of variables.  She said the county would need someone to assist in developing the criteria.  She reported one city that has considered merit raises has decided against it, because they felt like it would open them up for potential litigation simply because all employees must be treated fairly and equitably.

The County Executive explained based upon her research with professionals in the field, Rutherford County does not have that criteria.  She said a lot of companies in the private sector are moving away from merit raises because of litigation. 

County Executive Allen advised the committee part of her recommendation in next year’s budget would be to request a position to add someone who specializes in Human Resources.  She said Rutherford County is one of the largest employers in the county and does not have that resource available to all county departments as well as individual employees to be sure the county is complying with federal laws. 

Comm. Jernigan stated the employees understood last year, when the new personnel study was implemented that merit raises would be allowed.  He stated he believed the new pay plan was implemented to alleviate inequities.  He stated the way it is now, it does not matter what type employee they are.

 

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Comm. P. Johnson stated he agreed with the County Executive that a Human Resource person was needed and would support the concept. 

The Finance Director stated one option might be to inform Department Heads if they want merit raise money allocated to their department; they must participate in the evaluation process.

The County Executive stated in her recommendation on the budget, she would request a Human Resource Department be created, which would consist of an administrator.  She stated there was office space available in the Goldstein Building.  She stated most Human Resource Departments oversee payroll, insurance, etc.  She explained she is not doing that.  She stated she is talking strictly about someone to administer the guidelines/employee relations.  She stated another thing a Human Resource person does is to make sure employees receive information in a timely manner and that everyone receives the same information. 

ADJOURNMENT:

There being no further business to be presented at this time, Chairman Evans declared the meeting adjourned at 8:30 P.M.

 

 

______________________________________

Elaine Cawthon, Secretary

 

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