BUDGET, FINANCE & INVESTMENT COMMITTEE

May 1, 2003                                       6:00 P.M.                                        Courthouse

MINUTES:

Members Present:                        Others Present:            Others Present:

Comm. Bob Bullen                       Nancy Allen                    Jennifer Farish  

Comm. Anthony Johnson            Mary Schneider              Ian Demsky

Comm. Will Jordan                      Gary Patton             

Comm. Robert Peay                   Elaine Cawthon         

Comm. Steve Sandlin                 Lisa Nolen              

Comm. Doug Shafer                  Jeff Sandvig                       

Comm. Joyce Ealy, Chm.         Other Interested Citizens

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

APPROVE MINUTES:

The minutes of the April 10, 2003, April 15, 2003, and April 22, 2003 were corrected for approval. 

Comm. Jordan moved, seconded by Comm. Peay to approve the minutes as presented. 

The motion passed unanimously by acclamation.

BUDGET 2003-2004  REPORT: 

Ms. Cawthon shared with the committee the long-range projections prepared by former finance director Paul Long dated December 14, 2001.  Mr. Long’s projections showed that there could be a possible 11 cent need in the County’s General Fund and a possible 35 cent need in the General Purpose School Fund during the fiscal year ended June 30, 2004.  His projections were based on the county adopting the current tax rate for the 2002 tax levy, sales tax growth were estimated at 8.5%, salaries & benefits were projected to grow at a 6% rate for schools and a 4% rate for the county general. 

Ms. Cawthon reminded the budget committee of the policies adopted by the Commission related to maintaining adequate fund balances and reviewed the current budget for revenues.  For the 2003-2004 total revenues are projected at $237,464,106 and from the following sources:

            Current Property Tax                            $72,427,207               30.5%

            Other Co. Property Tax                            8,466,147                  3.6%

            Local Sales Tax-Non-Education                895,000                  0.4%

            Local Sales Tax-Education                  25,470,000                 10.7%

            Wheel Tax                                                6,960,000                   2.9%

            Development Tax                                    3,750,000                   1.6%

            State Revenue                                       92,221,385                  38.8%

            Interest Earned                                        2,376,880                     1.0%

            Other Revenue                                      24,897,487                  10.5%

Ms. Cawthon explained to the committee some of the causes of large increases in the operating budget for the General Fund: employee & dependent health insurance, an extra day of pay (262 paid days in the 2003-2004 year), seven new grant patrol positions, crossing guards and the use of undesignated fund balance (1.7 million) to fund the 2002-2003 appropriations. 

Comm. Bullen suggested looking into the effect on the budget by a one day furlough for county employees. 

Ms. Cawthon reviewed the areas of state revenues that could be affected by the 9% cuts proposed by the Governor.  Ms. Allen stated that a most conservative approach was taken in projecting revenues.  It was determined that it was easier to add back to the appropriations once actions taken by the State were known, than it would be to reduce appropriations at a later date.

May 1, 2003                                       6:00 P.M.                                                   Page 2

Ms. Nancy Allen explained that the appropriations in the general fund were not her final recommendations, but that she is still working with department heads.  The budget, as presented shows the general fund out of balance by $3,106,136 and fund balances projected at 13%.  

As of this date, the Statement of Operations for the fiscal year ended June 30, 2004 was presented as follows:

Ms. Cawthon reviewed the set up of the budget book for the committee.  Ms. Allen suggested the committee members review the materials and information provided by Ms. Cawthon.

 The following meetings were scheduled for the Budget & Finance Committee to work through the budget process:

Wednesday, May 7, 2003 – 6 pm

Thursday, May 8, 2003 – 6 pm

Friday, May 9, 2003 – 5:30 pm   Note:  Joint Meeting with the Health & Education Comm.
                                                                   Held at the Board of Education

Wednesday, May 28, 2003 – 5:30 pm

Thursday, May 29, 2003 – 5:30 pm 

Thursday, June 5, 2003 – 6 pm (regular meeting) 

Tuesday, June 10, 2003 – 7 pm (Public Hearing) 

Wednesday, June 18, 2003 – 5:30 pm

Thursday, June 19, 2003 – 5:30 pm (last day for school’s budget)

Friday, June 20, 2003 – 5:30 pm 

Thursday, June 26, 2003 – 9 am (proposed budget to the full commission) 

OTHER BUSINESS: 

Comm. Johnson expressed his concern regarding interviewing two applicants who did not meet the published requirements for the finance director position.  Comm. Ealy informed the committee that she would be meeting Friday with the County Executive, Ms. Cawthon, and Ms. Sherry McCullough to prepare the questions for the candidates and to investigate Comm. Johnson’s concerns.

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

___________________________________________

Lisa A. Nolen, Secretary