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BUDGET, FINANCE & INVESTMENT COMMITTEE April 5, 2001 6:00 P.M. Courthouse MINUTES: Members
Present:
Others Present:
Others Present:
Others Present: Comm.
Jerry Baxter
Nancy Allen
Bill Whitesell
Bryan Brooks Comm.
Joyce Ealy Evans
Maples
Jack Weatherford
Paul Long Comm.
Joe Frank Jernigan Comm.
Robert Peay John
Black
Elaine Cawthon Comm.
Paul Johnson
Comm. Trey Gooch
Robert Mullins Comm.
Dwight Throneberry Tommy
Sanford
Alan Miller Comm.
Jimmy Evans, Chair. Truman
Jones
Jeff Sandvig
Regina Nelson
Leffel
Brown
Bob Asbury
Jack Minchey Chairman
Evans presided and called the meeting to order at 6:15 P.M. with six members
being present. APPROVE
MINUTES: The
minutes of the March 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, Trustee, presented the monthly Investment Report.
He reported the LGIP interest rate for the month was 5.23% The
Trustee explained the investment transactions that occurred during the month. Comm.
Jernigan moved, seconded by Comm. Ealy to approve the Investment Report as
presented. The
motion passed unanimously by roll call vote with Comm. Jones being absent. FUND
CONDITION REPORT: The
Finance Director presented the Fund Condition Report for the month ending March
31, 2001. Mr.
Long reported the Development Tax collections for the month totaled $225,000
compared to $262,875 for March, 2000. The
year-to-date collections total $1,760,250 compared to $1,941,375 for the same
period last year. Mr.
Long reviewed the fund cash balances. A
discussion was held regarding the cash balance of the Employee Insurance Fund.
Mr. Long explained an increase to insurance premiums is not being
proposed at this time; however, it may become necessary to increase the premiums
next Spring. He reported it might be necessary to borrow funds for the
short-term during the summer. Mr.
Long reported there were no other unusual conditions to report at this time. Following
discussion, Comm. P. Johnson moved, seconded by Comm. Baxter to approve the Fund
Condition Report as presented. Budget
Minutes
April 5, 2001
Page Two The
motion passed unanimously by roll call vote. GENERAL FUND BUDGET AMENDMENTS PROPERTY
ASSESSOR: Mr.
Tommy Sanford, Property Assessor, requested the following budget amendments to
provide additional funding for part time personnel and benefits due to the
workload for personal property and business appraisals and to provide adequate
funding for the Office Supplies Account:
From: 101-52300-106 – Deputies -
$4,000
To:
101-52310-169 – Part Time Personnel -
$4,000
From: 101-52300-711
– Furniture & Fixtures -
$2,900
To: 101-52300-435
– Office Supplies -
$2,900 Comm.
Jernigan moved, seconded by Comm. Baxter to approve the budget amendments as
requested. The
motion passed unanimously by roll call vote. BUILDING
CODES: In
the absence of the Building Codes Director, Comm. P. Johnson requested approval
of the following budget amendments to provide adequate funding for the remainder
of the year for Postage, Gasoline and Employee Insurance:
From: 101-54510-355 – Travel -
$2,000
To: 101-54510-348 –
Postal Charges -
800
From: 101-58600-205 – Employee Benefits -
$200
To: 101-54510-205
– Employee & Dependent Insurance -
$200 Comm.
Ealy moved, seconded by Comm. Baxter to approve the budget amendments as
requested. Comm.
P. Johnson reported as an employee of the Building Codes Department, these
amendments did not directly affect him; therefore, he was voting “yes”. The
motion passed unanimously by roll call vote. AGRICULTURE
EXTENSION: In
the absence of the Agriculture Extension Director, the Finance Director
requested approval of the following budget transfer to provide adequate funding
for the Utilities Account for the remainder of the year:
From: 101-57100-709
– Data Processing Equipment -
$3,000
To:
101-57100-452 – Utilities -
$3,000 Budget
Minutes
April 5, 2001
Page Three Comm.
Baxter moved, seconded by Comm. Throneberry to approve the budget transfer as
requested. The
motion passed unanimously by roll call vote. FINANCE
DEPARTMENT: Paul
Long, Finance Director, requested approval of the following budget transfers to
provide adequate funding for the remainder of the year for the Dues &
Memberships Account and the Postal Charges Account. Mr. Long advised the Dues & Memberships Account was short
due to the fact the payroll supervisor has joined the National Payroll
Association, and an additional employee was added to the membership for the
Government Finance Officer’s Association.
The Postal Charges Account will be short, because there has been an
increase in volume and an increase in the postage rates:
From: 101-52100-205 – Employee & Dependent
Insurance -
$570
To:
101-52100-320 – Dues & Memberships -
$
70
101-52100-348 – Postal Charges -
500 Comm.
Baxter moved, seconded by Comm. Throneberry to approve the budget transfers as
requested. The
motion passed unanimously by roll call vote. OFFICIAL’S
SALARIES & BENEFITS: Finance
Director Paul Long explained the elected official’s salaries are based on the
census. He reported there was
enough funding in the budget to cover the elected official’s salaries if the
census had increased by one category; however, due to the huge increase in the
census, Rutherford County increased by two categories.
Mr. Long also explained the salary for the County Attorney and himself
have traditionally been increased by the same percentage as the elected
officials. The following amendment
was presented for approval to provide adequate funding for the salaries &
benefits for the county’s officials:
From: 101-39000 –
Undesignated Fund Balance -
$35,604
101-51300-101 – County Executive -
4,332
101-53400-101 – Clerk & Master -
$ 3,750
101-54110-101 – Sheriff -
$ 4,125 Budget
Minutes
April 5, 2001
Page Four
101-51400-101
– County Attorney -
$
4,972
101-52100-101 – Finance Director -
$
4,287
101-53500-102 – Juvenile Judge -
$ 5,303
From: 131-39000 –
Undesignated Fund Balance -
$ 4,815
To:
131-61000-101 – Road Superintendent -
$
4,125 Comm.
Jernigan moved, seconded by Comm. Ealy to approve the amendment to provide
adequate funding for the official’s salaries and benefits based on the census. The
motion passed unanimously by roll call vote. SHERIFF’S
DEPARTMENT: Chief
Regina Nelson requested approval of the committee for the following budget
amendments, which appropriates revenue received for stall rentals and
contributions for the mounted patrol; insurance proceeds for repair of vehicles,
and Asset Forfeiture Funds for DEA Overtime:
Increase Revenue: 101-44120
– Lease/Rentals -
$ 375
Increase Expend.: 101-54110-399
– Other Contracted Svc. - $ 425
Increase Revenue:
101-44520 – Insurance Recoveries -
$ 1,537
Increase Expend.:
101-54110-338 – Maint./Repair Vehicles -
$
1,537
Increase Revenue:
101-47700 – Asset Forfeiture Funds -
$ 1,484
Increase Expend.:
101-54110-187 – Overtime Pay -
$ 1,484 Comm.
P. Johnson moved, seconded by Comm. Jernigan to approve the budget amendments as
requested. The
motion passed unanimously by roll call vote. REQUEST
FROM DISTRICT ATTORNEY TO APPROVE MATCHING FUNDS FOR BYRNE MEMORIAL GRANT: District
Attorney Bill Whitesell addressed the committee requesting matching funds for a
Byrne Memorial Grant. Mr. Whitesell
explained he was seeking funding for a special prosecutor to handle child abuse
and child sexual abuse cases. The
prosecutor would be located at the Child Advocacy Center.
If the grant is accepted, it requires a 25% match or up to $15,000;
therefore, Mr. Whitesell requested
a $15,000 appropriation be included in the County’s 2001-2002 budget.
He reported he was also going to approach the City of Murfreesboro to
request $10,000 from Budget
Minutes
April 5, 2001
Page Five them.
The grant is a 48 month grant, to be renewed annually.
He reported he would expect the State to fully fund the position after
the 48 month period. Following
discussion, Comm. P. Johnson moved, seconded by Comm. Ealy to approve the
request for $15,000 in the 2001-2002 budget for the county’s matching funds
for the Byrne Memorial Grant for the District Attorney. The
motion passed unanimously by roll call vote. JAIL
EXPANSION/JUDICIAL COMPLEX: Sheriff
Truman Jones and Major Bob Asbury addressed the committee regarding a proposal
to expand the jail by 500 beds, which would incorporate housing the workhouse
inmates; as well as a judicial complex to include five courtrooms.
Sheriff Jones submitted a preliminary budget totaling $18,450,000 for the
jail expansion and $7,655,000 for the Judicial Complex.
Sheriff Jones explained, because of the relationship with architect, Mark
Rodgers, Mr. Rodgers was willing to draw up the plans. Chairman
Evans explained the recommendation from the Property Management Committee was to
consider funding $100,000 to hire a consultant experienced in long range
planning for correctional and judicial operations and upon funding, the County
Executive is to request proposals for that service. Comm.
Jernigan stated he did not believe it was necessary to fund the $100,000 for a
consultant, because it is known what is needed. Therefore, Comm. Jernigan moved, seconded by Comm. P. Johnson
not to fund $100,000 for a consultant to study the correctional and judicial
operations. Major
Asbury reported the jail is 100 inmates over the capacity, and while the felony
days have decreased, there has been an increase in pre-trial detainees. Comm.
Jernigan stated the county has done several other projects without utilizing a
consultant. Chairman
Evans stated anytime a project of this nature is requested, he would also like
to have what the additional operating costs are projected to be. Sheriff
Jones reported the original intent, was for the jail to be 15 floors. The
County Executive provided information to the committee relating to case filings
for Rutherford County’s Circuit, General Sessions and Juvenile Courts for 1996
through 2000. The County Executive
also provided information regarding how money can be saved with co-located
justice facilities utilizing consultants with experience in the field. Following
discussion, the motion not to fund $100,000 to hire a consultant to study the
jail expansion/judicial complex passed by roll call vote with Comm. Baxter
voting “no”. ROAD
AND BRIDGE BUDGET AMENDMENT: Finance
Director Paul Long requested approval of the following budget amendment for the
Highway Department to appropriate insurance proceeds to replace a faulty
equipment part:
Increase Revenue: 131-44520 – Insurance Recovery -
$4,585
Increase Expend.: 131-63100-418
– Equipment & Machinery Parts - $4,584 Comm.
Ealy moved, seconded by Comm. Throneberry to approve the budget amendment for
the Highway Department as requested. The
motion passed by roll call vote with Comm. Jernigan voting “pass”. Budget Minutes April 5, 2001 Page Six REQUEST
FROM SMYRNA/RUTHERFORD COUNTY AIRPORT AUTHORITY: Mr.
John Black, Executive Director, and Mr. Jack Weatherford addressed the committee
regarding a request for $180,000 in the 2001-02 budget for the design and
construction of a terminal/business center to be situated on the new west-side
development area of the airport. A
major portion of the local share of funding will be provided by the Airport
Authority. The $180,000 request is
60% of the remaining $300,000. Due
to the agreement between the County and the Town of Smyrna, if either body
approves funding from their budget, the other government is automatically
committed to fund their portion. Smyrna’s
portion would be 40% of the $300,000 or $120,000. Mr.
Weatherford reported the total cost of the project is estimated to be $1.5
million. He reported the airport is
the focal point for Rutherford County, and last year was voted airport of the
year. Following
discussion, Comm. Jernigan moved, seconded by Comm. P. Johnson to defer the
request until the May Budget Committee meeting to see if Smyrna approves funding
for the project. Mr.
Weatherford reported if Smyrna did not approve the funding for the project, he
would be back to the County. Comm.
Throneberry stated the county needed to set a precedent. Comm.
Baxter stated he believed it was a worthwhile project and wanted to fund it. Following
discussion, the motion to defer the request from the Smyrna/Rutherford County
Airport Authority until next month failed by roll call vote with Commissoners
Jernigan, P. Johnson, and Evans voting “yes”; and Commissioners Baxter, Ealy,
and Throneberry voting “no”. Mr.
Weatherford stated Rutherford County could have and should have the finest
airport in the State of Tennessee. He
reported the governing board was named governing board of the year two years
ago, and the airport director was name airport director of the year three years
ago. He said there was tremendous
opportunity with that facility. Comm.
Baxter moved, seconded by Comm. Throneberry to fund $180,000 in the 2001-02
budget for the terminal/business center at the Smyrna Airport. The
motion passed unanimously by roll call vote. GENERAL
PURPOSE SCHOOL FUND BUDGET AMENDMENTS: Mr.
Jeff Sandvig addressed the committee requesting approval of the following budget
amendments:
From: 141-72610-166
– Custodial Personnel -
$60,000
To:
141-72610-434 – Natural Gas -
$102,394 This
amendment is to cover the cost for natural gas for the winter.
Mr. Sandvig reported there would be another amendment for natural gas
coming forward. Budget
Minutes
April 5, 2001
Page Seven
From: 141-72130-123
– Guidance Personnel -
$38,209
To: 141-72130-399
– Other Contracted Services -
$42,553 Mr.
Sandvig reported this amendment covers MTSU’s charge for stadium turf
replacement under the 1999 amended contract.
He explained this was billed since MTSU’s stadium had to be used for
the Fall 2000 football season.
From: 141-72310-331
– Legal Services -
$12,000
To:
141-72310-505 –
Judgments -
$12,000 Mr.
Sandvig explained this amendment moves $12,000 from legal services to judgments
in order to reimburse the county for the portion of the settlement that the
insurance company did not cover. Comm.
Throneberry moved, seconded by Comm. Jernigan to approve the $102,394 amendment
for natural gas, the $42,553 amendment for Other Contracted Services for the
turf replacement at MTSU, and the $12,000 amendment for judgments. The
motion passed unanimously by roll call vote. Mr.
Sandvig next requested approval of the committee for an amendment totaling
$88,570 for medical insurance. This
amendment reallocates the medical insurance budgeted for 2000/01 based on the
actual insurance package chosen by the system’s employees. Comm.
Jernigan moved, seconded by Comm. Ealy to approve the budget amendment for
$88,570 for medical insurance as requested. The
motion passed unanimously by roll call vote. Mr.
Sandvig requested approval of the committee for an amendment totaling $294,743.
Mr. Sandvig explained the State raise was actually 3.5% instead of the 3%
that was built into the budget. After
negotiating with the REA, the local raise was actually 4%.
He explained the amendment also provides for differences in degrees and
experience. Mr. Sandvig reported
there are no new positions. Following
discussion, Comm. Throneberry moved, seconded by Comm. Baxter to approve the
amendment for $294,743 reflecting the actual State raise, the negotiated
contract with the REA, and actual degrees and experience. Comm.
Ealy read the statement pertaining to a conflict of interest; however she was
voting her conscience. The
motion passed unanimously by roll call vote. Mr.
Sandvig requested approval of a budget amendment totaling $14,870, which revises
the budget in light of transfers the superintendent made to handle needs in the
Transportation Department. Comm.
Jernigan moved, seconded by Comm. Ealy to approve the budget amendment for
$14,870 as requested. The
motion passed unanimously by roll call vote. Budget
Minutes
April 5, 2001
Page Eight Mr.
Sandvig requested approval of the following budget amendment to provide
short-term funding necessary to start designing mechanical systems for Roy
Waldron and David Youree Schools:
From: 141-39000
– Undesignated Fund Balance -
$1,285,000
To:
141-99200-590 – Transfers to Other Funds -
$1,285,000 Mr.
Sandvig reported the total cost of replacing the mechanical systems is projected
to be $2,570,000. He explained both
of the schools have the systems on the roof, and there have been a lot of
problems with them. He reported an
amendment had been previously approved for $55,000 to have the systems designed.
He explained in order to get the systems in place this summer, they need
to go ahead and make the commitment with the contractor and order the parts and
equipment. When the total funding
is available, a purchase order can be issued for the total project. Mr.
Sandvig requested the $1,285,000 be repaid to the Board after the Commission
borrows the funds for the mechanical systems. Mr.
Long explained in order for the School Board to execute a contract with a
contractor, the County Commission must make a commitment for the entire
$2,570,000. Mr. Long reported the
county probably will not be in a position to go back to the bond market until
the Fall, 2001; at which time, the project will be fairly complete.
Mr.
Long distributed an analysis of anticipated capital projects.
The analysis indicates the county will need to borrow approximately
$184,000,000 to complete projects that were anticipated in 1998. The
analysis also illustrated unforeseen capital projects totaling approximately $11
million that were not anticipated in 1998, but have come forward now.
Mr. Long stated he believed the county will be faced with addressing
these projects in the next two to three months.
Mr.
Long stated he believed the County has performed better than anticipated in the
Debt Service program to date. He
stated the $11 million could still be squeezed in without being forced into a
borrowing situation. Chairman
Evans stated the commission did not have the $2,570,000 in the forecast.
He asked Mr. Sandvig what projects the board could cut back on in order
to free up some funds for the mechanical systems. Mr.
Long stated it was his understanding, the furnishings and equipment on the two
schools under construction currently may not be as expensive as previously
anticipated. Mr. Sandvig stated his
recollection was that the operating costs for the middle schools are going to be
lower than anticipated. Mr.
Long suggested the HVAC systems not be financed for more than 20 years.
He said the schools would be almost 50 years old before the mechanical
systems were paid for. Mr.
Sandvig stated he believed the board was very comfortable with using it’s
ending fund balance for elementary projects and utilizing bond funds for middle
and high schools. Mr.
Long stated he did not believe there was any choice but to borrow the money.
He recommended for no longer than a 10 or 12 year period.
He stated the committee could just simply endorse the project and express
intent to fund it. However, that
might not be ample approval for the School Board to execute a purchase order
from the Building Program Fund and enter into a contract.
He stated he believed there really needed to be a note or bond approval. Following
discussion, Comm. Jernigan moved, seconded by Comm. Ealy to approve a resolution
in the amount of $2,570,000 to fund the mechanical systems at David Youree and
Roy Waldron Budget
Minutes
April 5, 2001
Page Nine Schools
and to also approve the budget amendment in the amount of $1,285,000 from ending
fund balance to provide temporary short-term funding to be repaid to the board
when the funds are borrowed. The
motion passed by roll call vote with Comm. Baxter voting “no”. Mr.
Long reported he would have a resolution prepared for Thursday night to be
repaid within 10 years. RECOMMENDATION
REGARDING ROOF REPLACEMENT FOR CENTRAL MIDDLE, CHRISTIANA AND SMYRNA PRIMARY
SCHOOLS: Mr.
Sandvig provided a request from the School Board in order of priority and cost
of design, construction, and inspection for roof replacements at Central Middle
- $500,000; Christiana - $75,000; and Smyrna Primary Schools - $200,000 for a
total of $775,000. Mr. Sandvig
advised the School Board wanted to proceed forward with these roof replacements. Mr.
Sandvig reported the School Board also was requesting funding for next year for
roof replacements at LaVergne High - $1,200,000; Smyrna High - $1,200,000; and
John Colemon - $350,000 for a total of $2.55 million. The
Health & Education Committee recommended to forward the Central Middle,
Christiana, and Smyrna Primary roof replacements to the Budget Committee with
available funds from the David Youree and Roy Waldron mechanical systems and
other available funds to go toward the roof projects. Mr.
Long advised the county would not be receiving as much money back from the City
of Murfreesboro on the garage project as he had hoped.
Mr. Long explained the city had not billed the county anything for
architect fees on the remediation project.
He explained this will probably offset any settlement money the county
would have received. Mr.
Jack Minchey of American Roofing, LLC distributed a report to the committee
regarding installing a metal pitched roof on the schools.
The roof contained pictures of the Smyrna Primary roof.
Chairman
Evans reported a metal roof will come with a 20 year warranty, but the life of
the roof may be 50 years. Chairman
Evans reported Mr. Minchey could not do a project such as Smyrna Primary for the
same money. However, he stated
maybe in the future a pitched metal roof could
be considered. Following
discussion, Comm. Throneberry moved, seconded by Comm. Baxter to fund $775,000
for roof replacement at Central Middle, Christiana and Smyrna Primary Schools
from available funds in the School Building Program with the Finance Director to
analyze the School Building Program to determine which projects have funds
available. Mr.
Sandvig suggested using the ending fund balance for Christiana and Smyrna
Primary roofs, because those funds have already been shared with the city.
The
Finance Director stated if the Building Program Funds are used, another $100,000
would have to be added for the City of Murfreesboro’s share.
Comm.
Jernigan stated he wanted to make sure if the motion passes, and then the
Finance Director determines the funding is not available in the School Building
Program; that another alternative is available to provide the funding. Comm.
Throneberry agreed with that and agreed to amend his motion to state if only a
portion of the $775,000 can be provided by the School Building Program, the
Finance Director is to determine where the balance of the funding will come from
and have options available for the County Commission meeting on April 12. Budget
Minutes
April 5, 2001
Page Ten Comm.
Baxter agreed to change his second to the motion. Following
discussion the motion to fund all or part of the $775,000 for roof replacements
at Central Middle, Christiana, and Smyrna Primary Schools from available funds
in the School Building Program with the Finance Director to analyze the School
Building Program to determine which projects have funds available; and if it is
determined the funds are not available, the Finance Director is to provide
alternate funding options to the full commission on April 12 passed unanimously
by roll call vote. The
roof replacements for LaVergne High, Smyrna High, John Colemon are to be
considered after the 2001-02 budget is set. OTHER BUSINESS BUDGET
CALENDAR 2001-02: A
copy of the 2001-02 budget calendar was provided to the committee.
Chairman Evans stated there needed to be a Budget Committee meeting on
Thursday, May 3, 2001. A copy of the 2001-02 budget will be presented to the
committee with the Finance Director presenting a budget overview.
The regular monthly Budget Committee meeting will be May 10.
The committee agreed to set the time of the May 3rd meeting at
5:30 P.M. Chairman Evans stated
other committee meetings will be set at that time. ADJOURNMENT: There
being no further business to be presented at this time, Chairman Evans declared
the meeting adjourned at 9:00 P.M. _______________________________________ Elaine
Cawthon, Secretary
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