|
BUDGET, FINANCE & INVESTMENT COMMITTEE May 10, 2001 6:15 P.M. Courthouse MINUTES: Members Present: OTHERS PRESENT: OTHERS PRESENT: OTHERS PRESENT: Comm. Jerry Baxter Nancy Allen Hooper Penuel Pamela Austin Comm. Joyce Ealy Comm. Robert Peay Jennifer Gerhart Cindy Phifer Comm. Joe Frank Jernigan Comm. Carol Cook Brian Robertson Bryan Brooks Comm. Paul Johnson Mark Moshea Tracy Hill Paul Long Comm. Tina Jones Faye Toombs Alan Miller Elaine Cawthon Comm. Dwight Throneberry Randy Brewer Rachel Smiley Comm. Jimmy Evans, Chair. Mike Webb Steve Smith Suzanne Kauffman Jeff Sandvig
Chairman
Evans presided and called the meeting to order with all members being present. FUND CONDITION REPORTFinance
Director, Paul Long, presented the monthly Fund Condition Report for the
information and use of the committee. Mr.
Long advised the Development Tax collections for the month of April were
$262,500 compared to $534,000 a year ago. Mr.
Long advised notification had been received from the Town of Smyrna that the
Smyrna Library project is complete. He
explained the remaining balance of $102,043.10 would revert to the unallocated
balance in Fund 120, Local Purpose Tax Fund. Mr.
Long reported the total cash balance for the month ending April 30 was
$125,444,653, with $87,196,788.21 being operating funds, and $38,247,864.79
being borrowed funds. Mr.
Long also advised the Employee Insurance Fund is not experiencing a substantial
rebound as of yet. The cash balance
totals $1,331,224.11. He explained
it would probably be necessary to get authorization to execute another revenue
anticipation note after the first of July.
He stated there would probably be another fund deficit in that fund, and
there would probably be another audit finding relative to that.
He stated it might be necessary to look at another premium adjustment
during the next fiscal year. Following
review, Comm. Jernigan moved, seconded by Comm. Baxter to approve the Fund
Condition Report as presented. The
motion passed unanimously by roll call vote. REQUEST
FROM CITY OF LA VERGNE REGARDING LA VERGNE LIBRARY: Mr.
Mark Moshea, City Administrator for La Vergne, addressed the committee
requesting assistance in the construction of a new 22,000 square foot library.
He reported the construction budget totals $3.2 million.
Mr. Moshea reported the existing building would be turned into city
office space. The existing building
is five years old, and at that time a federal grant was obtained to help on that
project. He explained that grant
money will be transferred to the new structure in order to free up the space. Mr.
Moshea explained the proposed site consists of two to three acres of donated
property. He reported an architect
has already been selected, and he has been put on hold until after the budget
process due to the possibility of utilizing the PBA. Mr.
Moshea reported the $3.2 million is strictly construction cost and does not
include any furnishings. Mr.
Moshea stated the City of La Vergne would probably be going to the bond market
to fund this project, as well as other projects. Budget
Minutes
May 10, 2001
Page Two Chairman
Evans suggested if the City of La Vergne was going to the bond market, then
perhaps the County could offer an arrangement, whereby the County would obligate
itself for $1.5 million of the debt instead of paying two lump sums of $750,000.
Chairman Evans suggested this could be paid from the Debt Service Fund.
He stated the County could then make payments to La Vergne throughout the
course of the loan. The
Finance Director explained if the City of La Vergne had semi-annual interest
payments and annual principal payments, the County could possibly make payments
to the City of La Vergne on a semi-annual basis. Mr.
Moshea stated they would not be getting a bond for $3.2 million, but that it
might be for $10 million to do other projects.
He stated their payback would not be based on $1.5 million.
He stated the payback would be extended, because of the greater size of
all of the projects. The
Finance Director explained the County would be pledging additional revenue to
the City of La Vergne’s Debt Service Fund.
He stated La Vergne could build this revenue into their long-term
forecast to see if there would be adequate revenue to cover the projects.
He stated this would be money to help La Vergne possibly avoid a tax
increase in the future. He stated he believed whatever the County pledged would
offset whatever portion of the bond or note the County agrees to cover.
The
Finance Director noted on the project cost report, two different contingencies
were identified. The contingencies
total $672,615. He advised out of a
$3.2 million project that is a substantial contingency.
Comm.
Jones suggested if the project budget came in under $3,200,000, that language be
included that would allow the pro-rata share to go back to the county.
The
Finance Director stated the County could make payments based upon $1.5 million
up until the point the project is complete, and then determine what the total
cost is. The County could then make
an adjustment on the payments. The
County Executive advised any language regarding a savings could be included in
the Tri-Party Agreement between the County, City of La Vergne, and the PBA.
The
Finance Director stated in case La Vergne paid the debt off early, that they
would probably have to put at least a six-year call provision on it.
If they called it in six years, the County could provide their share.
Following
discussion, Comm. Jernigan moved, seconded by Comm. Jones to approve annual
principal and interest requirements payable to the City of La Vergne on 47% of
the debt for the construction of a new library with the County’s commitment
not to exceed $1.5 million of the principal. Additionally, to require use of the
Public Building Authority for the project and the approval of a Tri-Party
Agreement. The
motion passed unanimously by roll call vote. GENERAL FUND BUDGET AMENDMENTS GENERAL
SESSIONS COURT: Mrs.
Suzanne Kauffman, General Sessions Court, was present to request approval of the
committee for the following budget transfer to provide adequate funding for the
remainder of the year for the Maintenance Agreement Account:
From: 101-53300-355 – Travel -
$100
To:
101-53300-334 – Maintenance Agreements -
100 Budget
Minutes
May 10, 2001
Page Three Comm.
P. Johnson moved, seconded by Comm. Throneberry to approve the transfer as
requested. The
motion passed unanimously by roll call vote. ELECITON
COMMISSION: Mr.
Hooper Penuel requested approval of the following budget amendment to provide
funds for the Murfreesboro City referendum, which will be reimbursed by the
City:
Increase Revenue:
101-48140 – Contracted Services -
$31,045
Increase Expend.:
101-51500-169 – Part Time Personnel -
$ 1,800
101-51500-187 – Overtime Pay -
1,000
101-51500-192 – Election Commission -
1,125
101-51500-193 – Election Workers -
21,000
101-51500-201 – Social Security -
1,550
101-51500-204 – State Retirement -
100
101-51500-212 – Employer Medicare -
370
101-51500-307 – Communications -
500
101-51500-332 – Legal Notices -
1,800
101-51500-351 – Rentals -
1,500
101-51500-435 – Office Supplies -
300 Comm.
Baxter moved, seconded by Comm. Ealy to approve the budget amendment as
requested. The
motion passed unanimously by roll call vote. REGISTER
OF DEEDS: Jennifer
Gerhart, Register of Deeds, was present to request approval of the following
transfer to provide adequate funding for Other Contracted Services for
microfilming. She explained the
cost of going through the transition from books to computers was more than
anticipated:
From: 101-51600-317 – Data Processing Services -
$3,000
101-51600-411 – Data Processing Supplies -
5,000
To: 101-51600-399
– Other Contracted Services -
$8,000 Comm.
Throneberry moved, seconded by Comm. Baxter to approve the budget transfer as
requested. The
motion passed unanimously by roll call vote. MISCELLANEOUS
& FINANCE DEPARTMENT: Finance
Director Paul Long requested approval of the following budget transfer to
provide adequate funding for the Audit Services Account and the Judgments
Account. Mr. Long advised the State
charges for audit services based on the census. He explained last year after the budget was adopted, the
State advised the invoice for audit services would be based on the new census. The
Judgment Account increase is due to an invoice received for settlements in civil
rights cases.
From: 101-58900-506 – Liability
Insurance -
$13,400
101-58900-599
– Other Charges -
2,350
To:
101-58900-305 – Audit Services -
$14,130
101-58900-505 –
Judgments -
1,620 Budget
Minutes
May 10, 2001
Page Four The
Finance Director requested from the committee for the following budget transfer
to provide adequate funding for the Finance Department Travel Account for the
remainder of the year:
From: 101-52100-196
– In-Service Training -
$950
To:
101-52100-355 – Travel -
$950 Comm.
Baxter moved, seconded by Comm. Throneberry, to approve the budget transfers for
the Miscellaneous Account of $14,130 to 101-58900-305, Audit Services, and
$1,620 to 101-58900-505, Judgments, with $13,400 coming from 101-58900-506,
Liability Insurance, and $2,350 coming from 101-58900-599, Other Charges; and to
also approve the Finance Department transfer of $950 to Account 101-52100-355,
Travel, from Account 101-52100-196, In-Service Training. The
motion passed unanimously by roll call vote. INFORMATION
TECHNOLOGY: Brian
Robertson, O.I.T. Director, requested approval of the following budget transfer
to provide for the Overtime Pay Account and related benefits due to the taping
of the Budget Committee meetings during the budget process:
From: 101-52600-411 –
Data Processing Supplies -
$2,105
To:
101-52600-187 – Overtime Pay -
$1,800
101-52600-201
– Social Security -
115
101-52600-204 – State
Retirement -
160
101-52600-212
– Employer Medicare -
30 Mr.
Robertson also requested approval of the following budget amendment to provide
adequate funding for the Communications Account for the remainder of the year:
From: 101-39000 – Undesignated
Fund Balance -
$3,000
To:
101-52600-307 – Communications -
$3,000 Comm.
Jernigan moved, seconded by Comm. Jones, to approve the transfer of $2,105 from
Account 101-52600-411, Data Processing Supplies, to 101-52600-187, Overtime Pay
($1,800), 101-52600-201, Social Security ($115), 101-52600-204, State Retirement
($160), and 101-52600-212, Employer Medicare ($30); and to also, approve the
budget amendment of $3,000 from 101-39000, Undesignated Fund Balance, to Account
101-52600-307, Communications. The
motion passed unanimously by roll call vote. ANIMAL
SERVICES: Tracy
Hill, Animal Services, requested approval of the following transfers to provide
adequate funding for the remainder of the year for the Refund Account, Vehicle
Maintenance Account, and the Overtime Pay Account. Ms. Hill advised more owners than anticipated have had
animals spayed or neutered after reclaiming them.
She also advised the monthly maintenance on the trucks have not been kept
up-to-date, and the trucks have had to be repaired.
The Overtime Pay Account is low due to turnover in the department:
From: 101-55120-707 –
Building Improvements -
$1,250
To:
101-55120-509 – Refunds -
$
250
101-55120-338 – Vehicle Maintenance -
1,000
From: 101-55120-103
– Assistants -
$2,000
To:
101-55120-187 – Overtime Pay -
$2,000 Budget
Minutes
May 10, 2001
Page Five Comm.
Baxter moved, seconded by Comm. Jernigan to approve the budget transfers as
requested. The
motion passed unanimously by roll call vote. CORRECTIONAL
WORK CENTER: Mr.
Alan Miller, Correctional Work Center Superintendent, requested approval of the
following budget transfers to provide adequate funding for the Overtime Pay
Account and the Drugs & Medical Supplies Account for the remainder of the
year:
From: 101-54220-160 – Guards -
$2,500
To:
101-54220-187 – Overtime Pay -
$2,500
From: 101-54220-340 – Medical
& Dental Services -
$10,000
To:
101-54220-413 – Drugs & Medical Supplies -
$10,000 Comm.
P. Johnson moved, seconded by Comm. Jones to approve the budget transfers as
requested. The
motion passed unanimously by roll call vote. Mr.
Miller also requested approval from the committee for the following budget
amendment for the Utilities Account due to the increased cost of utilities
during the year:
From: 101-39000
– Undesignated Fund Balance -
$12,000
To:
101-54220-452 – Utilities -
$12,000 Comm.
P. Johnson moved, seconded by Comm. Ealy, to approve the budget amendment to the
Utilities Account as requested. The
motion passed unanimously by roll call vote. EMERGENCY
SERVICES
: Mr.
Steve Smith, Emergency Services Director, requested approval from the committee
for the following budget transfer to provide adequate funding for the remainder
of the year for the Communications Account:
From: 101-54430-337
– Maint./Repair Office Equipment -
$450
101-54430-399 – Other Contracted
Services -
450
To:
101-54430-307 – Communications -
$900 Comm.
Jones moved, seconded by Comm. Throneberry, to approve the budget transfer for
the Communications Account as requested. The
motion passed unanimously by roll call vote. SHERIFF’S
DEPARTMENT: The
Finance Director advised the request from the Sheriff’s Department had been
pulled. Budget Minutes
May 10, 2001
Page Six SOLID WASTE/SANITATION FUND BUDGET AMENDMENT LANDFILL
OPERATION & MAINTENANCE: County
Executive Allen requested approval of the following budget transfer to cover
labor cost for the repair of the D-7 and to allow for the purchase of a rebuilt
transmission and possibly a torque converter for the D-7:
From: 116-55754-101 – County
Official/Administrative -
$22,000
To:
116-55754-336 – Maint./Repair Equipment -
$
5,000
116-55754-418
– Equipment & Machinery Parts -
17,000 Comm.
Jernigan moved, seconded by Comm. Throneberry, to approve the budget transfer as
requested. The
motion passed unanimously by roll call vote. REQUEST
TO RAISE THE CAPITALIZATION THRESHOLD FOR FIXED ASSETS: The
Finance Director advised the Government Finance Officer’s Association has
recommended that the capitalization threshold for reporting fixed assets be no
less than $5,000. He explained this
does not mean items less than $5,000 will be excluded from the inventory control
process. He stated the items
between $1,000 and $5,000 would only be excluded from the financial report. The
Purchasing Committee voted unanimously to approve this request and to forward it
to the Budget Committee. Comm.
Ealy moved, seconded by Comm. Baxter to approve the recommendation to raise the
capitalization threshold for Rutherford County’s fixed assets from $1,000 to
$5,000. The
motion passed unanimously by roll call vote. APPROVE
LEASE AGREEMENT FOR POSTAGE MACHINE AT BLACKMAN HIGH SCHOOL: Mr.
Jeff Sandvig, Assistant Superintendent, requested approval of a lease agreement
from Pitney Bowes to Blackman High School for a postage machine.
The lease is for 16 quarterly payments of $750.00. Comm.
Jernigan moved, seconded by Comm. P. Johnson, to approve the lease agreement
between Pitney Bowes and Blackman High School for a postage machine for 16
quarterly payments of $750.00 The
motion passed unanimously by roll call vote. DISCUSSION
OF HEALTH & EDUCATION COMMITTEE RECOMMENDATION REGARDING SIEGEL HIGH SCHOOL
& COMMUNITY SCHOOLS: The
committee took no action on this item as it was decided this motion was
forwarded directly to the County Commission and the discussion would take place
at that time. PROPOSAL
FROM “MURFREESBORO SUN”: Ms.
Pamela Austin, Publisher of the “Murfreesboro Sun”, and Ms. Cindy Phifer
addressed the committee relative to a proposal to utilize the “Murfreesboro
Sun” for advertising needs for public information, recruitment, etc. Budget
Minutes
May 10, 2001
Page Seven Ms.
Austin advised they would be able to get the public information into more homes
than any other newspaper in Murfreesboro. She
also reported they would match the County dollar for dollar on whatever is
spent, which could be used on any type of recruitment adds or legal notices.
She
advised Cindy Phifer is a journalist who would cover the County exclusively.
She stated the articles would be able to be read before they are
published. Ms.
Austin explained the County would receive the non-profit rate, and a full page
add would cost $756. She stated
this is the lowest rate for a contract advertiser.
She reported they have racks at food stores and some convenience stores.
She explained it is a weekly newspaper, and that they only cover local
news and community issues. The
Finance Director stated the statute states the budget has to be published in a
newspaper of general circulation. Ms.
Austin reported their circulation numbers are greater than The Daily News
Journal. She stated they have some
requestors outside of Murfreesboro. She
stated The Daily News Journal has 8,600 subscribers and the rest are in
newsstands, and the Sunday paper has approximately 16,000 subscribers. Comm.
Cook stated she believed there were less than 500 Daily News Journals in La
Vergne. She stated they have far
more than that receiving “The Tennessean”.
She stated the “Sun” has several racks in their area, and it gets
circulated. She stated she believed
the County was discriminating, because the ads are only placed in one newspaper.
She stated she would like to see the ads spread out.
Ms.
Austin stated she would be happy to put more racks in the southern part of the
County. Ms. Austin
stated they did not have a standard mail permit.
She stated they are a requestor publication, in which 51% have to be
requested in order to have that permit. Comm.
Cook stated there are more subscribers in La Vergne to “The Rutherford
Courier” than “The Daily News Journal”. The
Finance Director advised the budget is also published in “The Rutherford
Courier”. Ms.
Austin stated in the future, she would like to be considered for more than
publishing the budget. Chairman
Evans stated he would like to know by the next meeting what has been spent with
“The Daily News Journal” countywide. Comm.
Cook stated, after serving on the Purchasing Committee, the bids received are at
a minimal. She stated if the ads
could be circulated more, the County would receive more bids.
Chairman
Evans requested Ms. Austin mail “The Sun” to every county commissioner.
He stated he would recommend it also be sent to the La Vergne Board of
Alderman and the Smyrna City Council. LONGEVITY
PAY: The
Finance Director asked for clarification relating to the longevity pay
recommended to be included in the 2001-2002 budget. He stated in contacting some of the other local governments,
the longevity bonus is only paid for continuous years of service.
Therefore, if an employee works for five or six years, leaves employment
for a period of time, and comes back to work; they do not recognize that break.
Budget
Minutes
May 10, 2001
Page Eight The
committee agreed to recognize strictly only continuous years of service to
Rutherford County. It was agreed if
an employee had to take a leave of absence in case of a family situation or for
health reasons, that should be adhered to. LEFFEL
BROWN: Mr.
Leffel Brown addressed the committee regarding a proposed school design for
1,500 students. He provided
information regarding school membership for the past five years. ADJOURNMENT: There
being no further business to be presented at this time, Chairman Evans declared
the meeting adjourned at 7:45 P.M. _______________________________ Elaine
Cawthon, Secretary
|
|
|