BUDGET, FINANCE & INVESTMENT COMMITTEE

 

May 3, 2001                                                   5:30 P.M.                                        Courthouse

 

MINUTES:

 

Members Present:                    Others Present:              Others Present:            Others Present:

Comm. Jerry Baxter                 Nancy Allen                  Eddie Bowman            Bryan Brooks

Comm. Joyce Ealy                   Comm. Robert Peay     Virgil Gammon              Paul Long

Comm. Joe Frank Jernigan       Truman Jones                Ben Bennett                 Elaine Cawthon

Comm. Paul Johnson                Regina Nelson               John Brown             

Comm. Tina Jones                   Bob Asbury                  Joe McKenzie

Comm. Jimmy Evans, Chair.    Curtis Little                   Jeff Sandvig

 

 

Chairman Evans presided and called the meeting to order at 5:45 P.M. with all members being present.

APPROVE MINUTES:

The minutes of the April 5, 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.

 

2001-2002 BUDGET REVIEW:

Finance Director Paul Long presented an overview of the requested operating budget. 

Mr. Long explained the revenue derived from the TVA State Revenue Sharing Funds and additional interest earnings have been redirected to the General Purpose School Fund due to the opening of three new schools.

Mr. Long explained the Statement of Proposed Operations for the fiscal year ending June 30, 2002.  The statement reflects the current property tax rate of $2.78.  He explained the projected ending fund balances as of June 30, 2001.  Estimated revenue for the General Fund is $41,072,011 and estimated expenditures are $41,091,221.  The projected ending fund balance on June 30,2002 is $10,380,790.

The estimated revenue for the Solid Waste/Sanitation Fund is $2,439,040 with estimated expenditures being $2,465,140.  The projected ending fund balance on June 30, 2002 is $922,400.

The estimated revenue for the Industrial/Economic Development Fund is $147,410 with estimated expenditures being $295,030.  The projected ending fund balance on June 30, 2002 is $182,380.

The estimated revenue for the Local Purpose Tax Fund (Development Tax) is $3,160,000 with estimated expenditures of $987,600.  The projected ending fund balance on June 30, 2002 is $5,772,400.

The estimated revenue for the Drug Control Fund is $425,500 with estimated expenditures of $479,472.  The projected ending fund balance on June 30, 2002 is $341,028.

The estimated for the Road & Bridge Fund is $6,641,386 with estimated expenditures of $6,666,460.  The projected ending fund balance on June 30, 2002 is $5,924,926.

The estimated revenue for the General Purpose School Fund is $134,717,824 with estimated expenditures of $140,633,150.  The projected ending fund balance on June 30, 2002 is $2,584,674.

 

Budget Minutes                                          May 3, 2001                                        Page Two

 

The estimated revenue for the General Debt Service Fund is $27,330,313 with estimated expenditures of $26,539,350.  The projected ending fund balance on June 30, 2002 is $30,640,963.

Mr. Long explained that by law, there are only certain reasons the General Purpose School Fund ending fund balance can be reduced.

Mr. Long provided a chart that displayed the estimated revenue by source.  State revenue provides 35.4% of revenue, and current property tax provides 33.9%.

A chart was provided depicting the appropriation requests for each fund.  The General Purpose School Fund comprises 62% of the total budget.  The General Fund comprises 18% of the budget and 12% goes toward Debt Service.  Of the 12% for Debt Service, 10% of that is education related debt.  A total of 72% of the budget is related to education.

Mr. Long explained 3% of the budget consists of property tax dollars that goes to the City of Murfreesboro.

Mr. Long discussed the changes in the 2001-2002 budget from the prior year’s appropriations.  Significant budget increases in the General Fund are a full-year funding for the Drug Court grant, normal salary increases and benefits, step adjustments to correlate with experience, and salaries and benefits for 14 new full time employees and 3 part time employees.

The committee reviewed the list of the new employees, which include a Human Resource Director and Administrative Secretary, Administrative Assistant for the Insurance Department, Appraiser II for the Property Assessor, Judicial Commissioner, three Patrol Deputies,  three EMT’s  and three Paramedics for the new Siegel Ambulance Station.

Comm. Jones asked how many appraisers were employed in the Property Assessor’s Department.

Mr. Long reported the operating portion of the General Purpose School fund is increasing by approximately $11 million.  Significant budget increases in the General Purpose School Fund include new staff salaries and benefits due to the opening of three new schools, growth positions, new programs, and administrative staff to be hired in the middle of the year for the 2003 opening of new middle schools.  Other increases are attributed to state raises, local raises, and other operating increases due to the opening of new schools.

Mr. Long explained the Health & Education Committee has recommended the General Purpose School Fund budget totaling $140,633,150.  However, they have also suggested if funding is available they would also like considered teacher salary parity with the city system, implementation of a new supplement pay plan modeled after that of Williamson County, and five additional computer technicians with a minimum of two.

The Finance Director reported when the long-range projections were developed last year, it was anticipated funding a significant portion of nonrecurring capital expenses with a capital outlay note or some other source.  He stated it would take about $5.9 million to balance the school budget.  He stated all of that may not be able to be funded with a one-time source.

The Finance Director discussed budget summaries for each fund.  He explained the County Executive is recommending funding $550,000 for Sheriff’s Department automobiles with a transfer from the Development Tax.  A brief explanation was given regarding the requests and the County Executive’s recommendation for the non-profit organizations.

Mr. Long reported the General Purpose School Fund includes 138.6 new next year. 

Mr. Long also explained there is no principal or interest payments included in the Debt Service Fund for any new debt that might be issued after June 30.