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BUDGET, FINANCE & INVESTMENT COMMITTEE
May 15, 2002 6:00 P.M. Courthouse
MINUTES:
Members Present: Others Present: Others Present: Others Present: Comm. Joyce Ealy Nancy Allen Ben Mankin Joe McKenzie Comm. Paul Johnson Jim Cope Michael Payne Becky Smith Comm. Tina Jones Hooper Penuel Deloris Blackman Mike Williams Comm. Robert Peay Linda Vincion Judge Donna Scott Jeanne Grant Comm. Steve Sandlin Jennifer Gerhart Ginny King Jeff Sandvig Comm. Dwight Throneberry Del Corbitt Tommy Brown Bryan Brooks Comm. Jimmy Evans, Chair. Brian Robertson Ben Cates Paul Long Elaine Cawthon
Chairman Evans presided and called the meeting to order with all members being present.
2002-2003 GENERAL FUND BUDGET REVIEW
COUNTY COMMISSION:
The County Executive’s recommendation for the 2002-2003 County Commission budget totals $203,460.
Finance Director Paul Long advised the budget is the same as the current budget and allows for 13 commission meetings and the regular allotment of committee meetings with a few extra meetings built in.
Comm. Throneberry moved, seconded by Comm. Sandlin to approve the 2002-2003 County Commission budget as recommended totaling $203,460.
The motion passed unanimously by roll call vote.
COUNTY EXECUTIVE:
The County Executive’s recommendation for the 2002-03 County Executive budget totals $268,295.
County Executive Allen advised the budget is basically the same as the current year, with the exception of the County Official’s salary, which is set by the State of Tennessee.
Comm. P. Johnson moved, seconded by Comm. Ealy to approve the 2002-03 County Executive budget as recommended totaling $268,295.
The motion passed unanimously by roll call vote.
COUNTY ATTORNEY:
Mr. Jim Cope, County Attorney, presented the 2002-03 County Attorney budget. The County Executive’s recommendation totaled $208,617.
Mr. Cope called the committee’s attention to three items. Account 320, Dues & Memberships, was requested at $1,300, and the County Executive’s recommendation was $1,100. Mr. Cope advised the current year amended budget allowed for $1,300, and $1,300 has been spent. He asked the committee to consider restoring that account to what it was last year. He reported this account covers the cost of the Professional Privilege Tax for the attorneys that do the county work in his office. He explained they are required each year to pay professional privilege tax to the State, and this is what was incurred last year.
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Mr. Cope brought to the attention of the committee Account 355, Travel. He advised the County Executive’s recommendation is $2,200. He reported last year this account was amended to $2,450. He advised this account covers the cost of attending an annual review seminar in Nashville for the attorneys who do the county’s work. The seminar is for two days, and it is a requirement for maintaining their professional license. He reported the cost of that particular seminar for two days this year was $2,429.
He advised both items total $450, and he requested the committee’s consideration in restoring the two accounts to the requested amount.
Mr. Cope advised he anticipated upgrading the computers this year, and the County Executive has recommended $2,000 in Account 499, Other Supplies and Materials.
Comm. Sandlin moved, seconded by Comm. Jones to approve the 2002-03 County Attorney budget amending Account 320, Dues and Memberships to $1,300 and amending Account 355, Travel, to $2,450 as requested by the County Attorney
The motion passed unanimously by roll call vote.
ELECTION COMMISSION:
Mr. Hooper Penuel, Election Registrar, and Mrs. Linda Vincion presented the 2002-03 Election Commission budget. The County Executive’s recommendation totals $563,502.
Mr. Penuel recommended to the committee that they accept the budget proposal for the Election Commission as submitted by the County Executive.
Comm. P. Johnson noted the budget is approximately $67,000 more than the current year, with $50,000 of that being for voting machines and the remainder of the increase being personnel related expenditures.
Comm. P. Johnson moved, seconded by Comm. Throneberry to approve the 2002-03 Election Commission budget as recommended by the County Executive totaling $563,502.
The motion passed unanimously by roll call vote.
REGISTER OF DEEDS:
Mrs. Jennifer Gerhart, Register of Deeds, presented the 2002-03 Register of Deeds budget. The County Executive’s recommendation totals $126,857.
Mrs. Gerhart requested that the committee accept the County Executive’s recommendation. She advised the budget reflected a reduction from last year’s budget.
Comm. Peay moved, seconded by Comm. Ealy to approve the 2002-03 Register of Deeds budget as recommended by the County Executive totaling $126,857.
The motion passed unanimously by roll call vote.
PLANNING DEPARTMENT:
Mr. Del Corbitt, County Engineer, presented the 2002-03 Planning Department budget. The County Executive’s recommendation totals $549,067.
Mr. Corbitt advised, not including the increase for the salaries and benefits, there was a decrease in the budget. He requested the committee accept the County Executive’s recommendation.
Comm. Peay moved, seconded by Comm. Jones to accept the 2002-03 Planning Department budget totaling $549,067 as recommended by the County Executive. Budget Minutes May 15, 2002 Page Three
The motion passed unanimously by roll call vote.
ENVIRONMENTAL:
The County Executive’s recommendation for the 2002-03 Environmental budget totals $40,120.
The County Executive advised this budget covered the position that the county funds for the State Environmental Department. She reported the budget reflects the necessary changes for salary and benefits.
Comm. Sandlin moved, seconded by Comm. Throneberry to approve the 2002-03 Environmental budget as recommended by the County Executive totaling $40,120.
The motion passed unanimously by roll call vote.
GEOGRAPHIC INFORMATION SYSTEMS:
Mr. Brian Robertson, Information Technology Director, presented the 2002-03 Geographic Information Systems budget. The County Executive’s recommendation totals $117,624.
Mr. Robertson advised he is continuing the effort that was begun last year in consolidating some of the GIS services. He reported the maintenance agreements that operate the GIS software have been included in this budget. He advised the committee a mapping position that was previously in the Property Assessor’s budget has been moved to the GIS budget for next year. He advised he accepted the County Executive’s recommendation.
Mr. Robertson explained Account 709, Data Processing Equipment, includes funds to replace a GIS workstation in the Planning Department. He also advised Account 317, Data Processing Services, includes funds to pay maintenance agreements for software for the Planning Department unit and for the two Property Assessor mapping positions.
Comm. Peay moved, seconded by Comm. Throneberry to approve the 2002-03 Geographic Information Systems budget as recommended by the County Executive totaling $117,624.
The motion passed unanimously by roll call vote.
INFORMATION TECHNOLOGY:
Mr. Brian Robertson presented the 2002-03 Data Processing budget. The County Executive’s recommendation totals $528,841.
Mr. Robertson advised he could accept the County Executive’s recommendation. He advised the budget reflected some re-working of the original recommendation. He stated the total budget remained the same as the County Executive’s original intent.
Mr. Robertson advised he was able to accomplish this by reducing Account 790, Other Equipment, from $20,000 to $2,000. He explained this was to be used for equipment related to taping the County Commission meetings, as well as other meetings.
Comm. P. Johnson moved, seconded by Comm. Jones to approve the 2002-03 Information Technology budget as recommended by the County Executive totaling $528,841.
The motion passed unanimously by roll call vote.
COUNTY BUILDINGS:
Mr. Ben Mankin presented the 2002-03 County Buildings budget. The County Executive’s recommendation totals $1,315,500.
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Mr. Mankin advised he accepted the County Executive’s recommendation.
Comm. P. Johnson asked for an explanation of Account 707, Building Improvements, budgeted at $455,000.
County Executive Allen advised this money was being funded with a transfer from the Development Tax. She explained the money is for an HVAC system for the Judicial Building, which will cost approximately $225,000. It will also provide for the roof replacement on the newest portion of the old Health Department building. The money will also be used for some roof repair at the armory. The money will be used primarily for roof maintenance and HVAC.
Comm. Sandlin questioned Account 307, Communications, budgeted at $72,000.
Mr. Mankin advised that typically they have run short in this account. He reported it is not anything extra.
The Finance Director explained the objective in keeping the expenditures being funded with the development tax in the General Fund is to keep a historical record of how much is being spent on building improvements in this one place.
Comm. Sandlin moved, seconded by Comm. Ealy to approve the 2002-03 County Buildings budget as recommended by the County Executive totaling $1,315,500.
The motion passed unanimously by roll call vote.
COMMUNITY LEARNING:
Dr. Michael Payne, Community Learning Director, presented the 2002-03 Community Learning budget. The County Executive’s recommendation is $186,132.
Dr. Payne requested the committee accept the County Executive’s recommendation.
The committee reviewed Account 709, Data Processing Equipment, budgeted at $2,900. Dr. Payne advised they were going to have to begin communicating more with the State, and would need better record keeping since they have received accreditation.
Comm. Jones moved, seconded by Comm. Throneberry to approve the 2002-03 Community Learning budget as recommended by the County Executive totaling $186,132.
The motion passed unanimously by roll call vote.
ARCHIVES:
The County Executive’s recommendation for the 2002-03 Archives budget totals $32,409.
County Executive Allen reported the County has a joint partnership with Middle Tennessee State University for the archival program. She advised the budget included a tuition increase, which is based on a 15% increase. She reported it is not known at this point how much the tuition will be increased.
Comm. Ealy moved, seconded by Comm. Jones to approve the 2002-03 Archives budget as recommended by the County Executive totaling $32,409.
INSURANCE DEPARTMENT:
The County Executive’s recommendation for the 2002-03 Insurance Department budget totals $180,903.
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County Executive Allen reminded the committee the Insurance Department budget is funded one-half through the Employee Insurance Fund and one-half through the Worker’s Compensation Fund. The budget primarily reflects salary increases and related benefits for the four employees in that department, with the exception of one employee where some prior experience is being recognized.
Comm. P. Johnson moved, seconded by Comm. Peay to approve the 2002-03 Insurance Department budget as recommended by the County Executive totaling $180,903.
The motion passed unanimously by roll call vote.
FINANCE DEPARTMENT:
Mr. Paul Long, Finance Director, presented the 2002-03 Finance Department budget. The County Executive’s recommendation totals $718,931.
Mr. Long advised he is satisfied with the recommendation from the County Executive. He advised it does include some pay improvements for four personnel in the Finance Department above the 3% salary increase. It reflects a 2.4% salary increase for the Finance Director’s position. Mr. Long pointed out that Account 196, In-Service Training, has been combined with Account 355, Travel.
Chairman Evans asked if there was any way to tie the Finance Director’s salary increase on an annual basis to a similar percentage received by the constitutional officers?
The Finance Director advised that the Private Act provided that the Budget Committee sets the salary for the Finance Director. He stated his salary is completely at the Budget Committee’s discretion.
Chairman Evans stated the Finance Director’s salary reflects a 2.4% increase, and the rest of the county employees would be receiving a 3% increase.
The Finance Director advised when the census years come, and the county officials move from one class to the other, his salary has moved accordingly. He stated in those years the salary increases for the finance director were substantially higher than county employees and he said it works itself out.
Comm. Jones moved, seconded by Comm. P. Johnson to approve the 2002-03 Finance Department budget as recommended by the County Executive, with the exception of Account 101, County Official/Administrative, to reflect a 3% increase for a total of $81,111 and the related benefits.
The motion passed by roll call vote with Comm. Peay voting “no”.
TRUSTEE:
The County Executive’s recommendation for the 2002-03 Trustee’s Office budget totals $40,600.
Finance Director Paul Long advised the budget is a $120 increase.
Comm. Sandlin moved, seconded by Comm. Jones to approve the 2002-03 Trustee’s Office budget as recommended by the County Executive totaling $40,600.
The motion passed unanimously by roll call vote.
Budget Minutes May 15, 2002 Page Six COUNTY CLERK:
Mrs. Deloris Blackman presented the 2002-2003 County Clerk budget. The County Executive’s recommendation totals $170,050.
Mrs. Blackman advised she accepted the County Executive’s recommendation.
Comm. P. Johnson moved, seconded by Comm. Sandlin to approve the 2002-03 County Clerk budget as recommended by the County Executive totaling $170,050.
The motion passed unanimously by roll call vote.
JUVENILE COURT:
Judge Donna Scott presented the 2002-03 Juvenile Court budget. The County Executive’s recommendation totals $170,515.
Judge Scott advised the budget represents about a $7,000 increase with most of that being for salaries and benefits.
Comm. Sandlin moved, seconded by Comm. Jones to approve the 2002-03 Juvenile Court budget as recommended by the County Executive totaling $170,515.
The motion passed unanimously by roll call vote.
Judge Scott informed the committee that she would be presenting to the Public Safety Committee a proposal for a possible grant that the county will be getting this year from the department that deals with court improvement for delinquent children. She advised each municipality is to receive a certain amount, and the county is to receive $32,793. She explained the city agencies have agreed to pool the money for a total of $74,266.
Judge Scott explained she hoped to be able to get a District Attorney to come to juvenile court on a regular basis to help with the cases. She advised if they were able to pool the money it would benefit all of law enforcement, and juvenile court would be improved. The citizens would benefit also.
Judge Scott advised the grant would require a 10% county match. The grant does not decrease each year. She stated she had to apply by the end of the month.
The Finance Director advised in the past this grant was received by the Sheriff’s Department.
EMERGENCY MEDICAL SERVICES:
Ms. Ginny King presented the 2002-03 Emergency Medical Services budget. The County Executive’s recommendation totals $6,170,887.
Ms. King requested the committee accept the County Executive’s recommendation.
Comm. P. Johnson questioned Account 205, Employee & Dependent Insurance. He stated the increase was approximately 29%.
The Finance Director advised it was a combination of changes in participation and the 10% increase being proposed, as well as some new personnel.
A discussion was held about Account 133, Paraprofessionals, budgeted at $2,823,117.
The Finance Director advised this account included a full year for the four transport personnel that were hired this year. It also includes funding for the six Siegel Station personnel.
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The budget also includes a new communications position in Account 148.
The Finance Director explained that equity adjustments that were made last year and being funded for a full year this year also impact the budget. He stated there were several of those in this budget.
It was pointed out the budget included some of the pay improvements that was previously discussed at the meeting on May 14.
Comm. P. Johnson moved, seconded by Comm. Sandlin to approve the 2002-03 Emergency Medical Services budget as recommended by the County Executive totaling $6,170,887 pending further review of the pay equity and pay improvement list.
The motion passed unanimously by roll call vote.
RECREATION:
Mr. Ben Cates, Recreation Director, presented the 2002-03 Recreation budget. The County Executive’s recommendation totals $313,570.
Mr. Cates advised on behalf of the Conservation Board, they would like to accept the recommendation of the County Executive.
Mr. Cates reported it is an as is budget this year. He explained Accounts 146-Bus Drivers, 162-Clerical Personnel, and 599-Other Charges have been combined into Account 189-Other Salaries & Wages. He reported there was no change in the total budget as a result of this change.
Comm. Peay moved, seconded by Comm. Ealy to approve the 2002-03 Recreation budget as recommended by the County Executive totaling $313,570.
The motion passed unanimously by roll call vote.
AGRICULTURE EXTENSION:
Mr. Joe McKenzie presented the 2002-03 Agriculture Extension budget. The County Executive’s recommendation totals $404,128.
Mr. McKenzie advised the Extension Service in Rutherford County is probably the best Extension Service in the State. He explained to the committee some of the services they provide.
Mr. McKenzie reported his budget request did include one new employee that has not been recommended, and he hoped the committee would consider that at some point as they go through the budget process.
Mr. McKenzie advised the reason the County only funds about 70% of his operation is because they partner with Tennessee State University and the University of Tennessee. He reported on the positions that are partnered, TSU and UT pay 55% and the County pays 45%.
Mr. McKenzie stated that what the population growth has done for them is max out their potential contact request. He stated this has caused the staff to have to work 10 and 12 hours a day. He stated that has caused a high turnover in personnel.
Mr. McKenzie advised he would accept the County Executive’s recommendation. He stated this was not his best judgment.
A discussion was held about Account 309, Contracts with Government Agencies. This is a new account, and Mr. McKenzie explained when partnering with TSU and UT, those costs have been spread out in Account 140-Salary Supplements and the related benefits. By using Account 309, it is being proposed to account for all of the costs in one line item. Budget Minutes May 15, 2002 Page Eight
Comm. Sandlin moved, seconded by Comm. Throneberry to approve the 2002-03 Agriculture Extension budget as recommended by the County Executive totaling $404,128.
The motion passed unanimously by roll call vote.
SOIL CONSERVATION:
The County Executive’s recommendation for the 2002-03 Soil Conservation budget totals $43,561.
The County Executive advised this budget contained one county position as well as the longevity pay and related benefits.
Comm. Peay moved, seconded by Comm. Throneberry to approve the 2002-03 Soil Conservation budget as recommended by the County Executive totaling $43,561.
The motion passed unanimously by roll call vote.
GARAGE:
The County Executive’s recommendation for the 2002-03 Garage budget totals $208,553.
County Executive Allen advised the budget reflected increases for salaries based on 3%, as well as the longevity pay and related benefits.
Comm. P. Johnson moved, seconded by Comm. Ealy to approve the 2002-03 Garage budget as recommended by the County Executive totaling $208,553.
The motion passed unanimously by roll call vote.
RECOMMENDATION FOR CERTIFIED TAX RATE FOR THE GENERAL FUND:
Chairman Evans stated the committee has now gone through the General Fund, and the County Executive’s preliminary recommendation is the equivalent to adding five cents to the property tax rate to fund the General Fund expenditures. He asked the Finance Director if he could tell him what the total expenditures for the General Fund were at this point and how much out of balance the fund was.
The Finance Director stated he believed the fund is still in balance, and there has been a lot of discussion about the Sheriff Department’s grants. He advised the matching share on the Universal Hiring Grant the first year is going to be approximately $90,000 to $115,000. He advised the matching share on the Domestic Violent Grant would be approximately $38,000. He stated that would probably push the General Fund in the red by about $50,000 to $60,000. He stated it was discussed not including the grants in the original budget. He advised the original budget was still in balance. He stated the intention was to keep enough balance to be able to match the grant when it becomes necessary. He stated as the budget stands right now, there would not be adequate funding to match the grant now based on the projections of revenue.
Chairman Evans stated on the first night when the committee received the preliminary budget and after the Budget Overview, it was pointed out that the General Fund would require rolling back the tax rate, not rolling back the tax rate, or a combination of the two. This would be the equivalent of five cents or a certain amount of money at that time in order to bring the fund in balance.
The Finance Director advised at the first meeting, the General Fund was presented with estimated revenue of $46,311,847 based on the current tax rate, which is in effect a five cent tax increase. He reported estimated appropriations were $46,196,536. The General Fund was in balance $115,000. He advised a few things have been added, but the fund is still in the black. If
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the $140,000 in matching requirements on the Sheriff’s grants were added, that would cause an almost break-even situation with the five-cent increase.
Chairman Evans stated the county has done an excellent job over the past few years building up the balance in the General Fund. He stated due to the lack of interest earnings, which could not be predicted, he requested the committee consider drawing down the General Fund ending fund balance. He stated he did not want to hurt the bond rating, and he did not think this would hurt the bond rating due to the fact that the loss of the interest earnings was a one-time occurrence that could not be planned. At the same time, since next year and the following year also have some uncertainties, he stated he thought it would be a good idea to possibly consider a reduction of the fund balance of half as much the second year and half as much again on the third year, and to have a three-year plan. He advised, in his opinion, hopefully next year it would re-bound enough to put back the $1.5 million or whatever is drawn down, and perhaps not have to implement the program during year two or year three.
The Finance Director stated the fund balance in the General Fund has grown much higher than is absolutely necessary to maintain adequate funds to get through the first few months of a new fiscal year and have ample funds in reserve for unexpected occurrences. He advised in the past he has always spoken against drawing down the fund balance. He stated he has always liked to put together a budget that is balanced, so that as things happen throughout the year, appropriations can be increased. He stated bond raters typically frown on draw downs of the fund balance, but if there is a plan in place and an unexpected occurrence has taken place, then possibly the bond raters can be sold on that and it might not affect the bond rating. He asked Chairman Evans to clarify if he was suggesting to roll back the five cents, which in effect reduces the revenue by approximately $1.5 million. This would mean the General Fund ending fund balance would be reduced by the $1.5 million.
Chairman Evans stated he is not one to quickly adopt a tax increase if there are other options. He stated with a three-year plan, that possibly $2.5 million could be allocated or adopted in theory to help out the next two or three years. He stated there was a possibility it could bounce back next year.
The Finance Director stated one reason he thought the committee might be reluctant to do that was because of the uncertainty from the State. He stated if there were no significant reductions from the State, the County could probably get by with the five-cent roll back. He stated he believed he would know that before the committee had to act on the budget. He stated if the State decides to take a substantial portion of the revenue, this might have to be re-thought.
The Finance Director advised the sales tax for the month of April only showed a .45% increase. He stated that brought the growth down year-to-date below 5%. He stated in order to achieve the interest earnings projections in next year’s budget, the rate will have to be in the 2.6% to2.7% range on average.
Following discussion, Comm. P. Johnson moved, seconded by Comm. Jones to adopt the certified tax rate for the General Fund of 54 cents and that the difference in the estimated revenue and estimated appropriations be funded utilizing the ending fund balance.
Comm. Peay advised he was not expecting to look at this at this time, and he would like the opportunity before the committee voted on it to spend some time with the Finance Director to review some other things that were coming. He stated he did not feel good about voting on this at this time. He stated he understood that it was preliminary, but he would like some time to review it. He stated he believed the idea had some merit, but he believed they should be cautious about what they were doing.
Chairman Evans advised any vote they take on any issue, whether or not it is qualified, is pending. He stated everything can and will be revisited after the public hearing and at any time they need to when more information is received.
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A discussion was held about what would happen the next two years. The Finance Director stated, if he understood the Chairman correctly, the committee would be making a commitment not to get into the habit of doing this or to have a plan to get away from doing this.
Comm. Peay stated he believed the State has done this. He stated the County was going to have to face the situation. He stated he believed in financing the budget in the most efficient way, but he stated he did not think they should be irresponsible with the County’s finances.
Comm. Jones asked if the motion on the floor would affect the County’s bond rating?
The Finance Director advised he believed they could convince the bond raters that they have a plan and are doing it for an acceptable reason. He stated fund balances are also needed to allow for unanticipated expenditures and/or changes in economic conditions. He stated there is a plan not to draw it down by more than a certain amount each year, and also there would be a limit and a fund balance they want to maintain. He stated it might help to decide on the limit of fund balance to keep, such as 15%. He stated the balance is probably almost $5 million above that limit. He stated if the committee accepted the Chairman’s plan, the fund balance would probably only be drawn down by about $2.5 million over three years.
The Finance Director advised if the General Fund budget was adopted in this way, it would put more pressure on the committee not to amend budgets during the year.
Comm. Peay asked how would drawing down the fund balance affect the General Fund, if the county experienced a similar year in the Employee Insurance Fund as was experienced this year?
The Finance Director explained that last year the commitment was to fund the fund deficit in the Employee Insurance Fund primarily from the General Fund. He stated the county would not be in a position to do something like that if there was a similar situation next year after already deciding to draw the fund balance down.
Comm. Peay asked once the tax rate is set, could it be changed?
The Finance Director advised there is a real short window of opportunity. He explained the County adopts the tax levy at the end of June, and the State prints the tax notices for the county. The State probably has to have the information no later than the first week in August. If something occurred between those two dates, and the commission was made aware of it, there might be an opportunity to amend the tax levy in reaction to that. He stated there might be some occasions where during the year some extraordinary circumstance occurred and a supplemental tax levy was adopted in addition to the regular tax levy. He explained this is a lot more unusual. He advised this causes a problem in billing taxpayers.
Comm. Ealy advised she had some hesitancy to act on this at this time. She stated she would feel more comfortable if the Finance Department had some time to study the ramifications. She suggested perhaps deferring action on this, and considering it in another work session later on. She stated she was not totally opposed to it, but she did not feel she could vote in favor of it at this time.
Comm. Sandlin stated he thought it would be a bit premature to vote on this action at this time since this was only the second night of budget hearings. He stated it could be a great idea. He stated he believed they should look back at the spending. He stated he thought it could be a possibility, but stated he would have to vote "no” on it at this time. He stated he believed they have given a lot of departments their “wants”, and that needed to be cut back to “needs”.
The Finance Director advised he could do some long-range projections to see what happens if this budget is adopted and project normal growth on top of that and carry it out a few years. He stated he would probably want to look at growth on investment income completely separate. He stated he could develop something by the next meeting on May 22.
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Following discussion, Comm. Peay moved, seconded by Comm. Ealy to amend the original motion to defer action until the next meeting on Wednesday, May 22 and request the Finance Director to provide more information.
Comm. Sandlin stated something he was concerned about was the impact of the Sheriff’s grants at the end of the three-year period.
Following discussion, the amendment to defer action on taking the property tax rate to the certified tax rate of 54 cents for the General Fund and to fund the difference in the revenue and expenditures by drawing down the ending fund balance failed by roll call vote with Commissioners Ealy, Peay and Sandlin voting “yes”; and Commissioners P. Johnson, Jones, Throneberry, and Evans voting “no”.
Comm. Jones stated her main concern was that the County maintains the AA bond rating. She stated that did not need to be jeopardized in any way. She stated the county could maintain the bond rating, there is $5 million in excess money, and there is a $1.5 million shortfall. She stated the question is would it be recommended to fund the $1.5 million shortfall through a five-cent property tax increase or use the excess money without affecting the bond rating?
Comm. Sandlin stated he still believed action on this was premature. He stated it is not known for sure if this will affect the bond rating. He stated he does not want a property tax increase. He stated he is saying the committee needs to get through the budget hearings first. He stated the committee is not finished, yet. This is the committee’s second night to meet.
The Finance Director stated he would like to study this some more, as well. He asked, if after he had the opportunity to study it further and if he had any problems with it, could he bring that to the committee’s attention. He also advised the committee, the General Fund had not been completed, yet. He advised at the meeting next Wednesday night, the non-profit contributions would be reviewed.
The original motion to adopt the certified rate of 54 cents for the General Fund and to fund the difference in the revenue and expenditures by drawing down the ending fund balance passed by roll call vote with Commissioners P. Johnson, Jones, Throneberry and Evans voting “yes” and Commissioners Ealy, Peay and Sandlin voting “no”.
Comm. Peay asked that this item be placed on the agenda for the meeting on Wednesday, May 22 so that the Finance Director could provide some follow-up information.
2002-03 SOLID WASTE/SANITATION FUND BUDGET
SANITATION EDUCATION/INFORMATION (LITTER GRANT):
The County Executive’s recommendation for the 2002-03 Sanitation Education/Information budget totals $129,908.
The Finance Director advised this is the Litter Grant program and is administered with personnel through the Correctional Work Center. He advised this is mostly funded from State sources.
The County Executive advised $38,014 in Account 718, Motor Vehicles, is to replace a vehicle used to transport inmates for the purposes of picking up litter.
Comm. Sandlin moved, seconded by Comm. Peay to approve the 2002-03 Sanitation Education/Information budget as recommended by the County Executive totaling $129,908.
The motion passed unanimously by roll call vote.
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CONVENIENCE CENTERS & RECYCLING:
Ms. Becky Smith, Convenience Center Director, presented the 2002-03 budgets for the Convenience Center budget and the Recycling Budget.
The County Executive’s recommendation for the 2002-03 Convenience Center budget totals $1,261,965.
Ms. Smith requested the committee accept the budget as recommended by the County Executive.
Comm. P. Johnson moved, seconded by Comm. Jones to approve the 2002-03 Convenience Center budget as recommended by the County Executive totaling $1,261,965.
The motion passed unanimously by roll call vote.
The County Executive’s recommendation for the 2002-03 Other Waste Collection (Recycling) budget totals $265,500.
Ms. Smith requested the committee accept the County Executive’s recommendation.
Ms. Smith explained Account 499, Other Supplies & Materials, budgeted at $5,000 is used for repair of the recycling boxes. She explained Account 733, Solid Waste Equipment, budgeted at $33,000 is a recycle rebate that is normally received from the State. She explained Account 312, Contracts w/Private Agencies, is used to pay Alliance Recycling.
Comm. Throneberry moved, seconded by Comm. Jones to approve the 2002-03 Other Waste Collection (Recycling) budget as recommended by the County Executive totaling $265,500.
The motion passed unanimously by roll call vote.
LANDFILL AND POSTCLSOURE:
Mr. Del Corbitt presented the 2002-03 Landfill and Postclosure budgets.
The County Executive’s recommendation for the 2002-03 Landfill budget totals $722,912.
Mr. Corbitt advised in the Landfill budget, not including salaries, there is a decrease. He brought to the committee’s attention Account 359, Disposal Fees, budgeted at $113,000. He explained this account is used to fund the waste tire grant. He reported this was previously in the Convenience Center budget, but was moved to the Landfill budget this fiscal year. He advised the only other increase was in Account 402, Asphalt, budgeted at $25,000. He stated they needed asphalt for the tire trailers.
Comm. Peay moved, seconded by Comm. Ealy to approve the 2002-03 Landfill Operation and Maintenance budget as recommended by the County Executive totaling $722,912.
Comm. Jones asked why Mr. Corbitt, who is the County Engineer, was presenting the Landfill budget?
Mr. Corbitt explained he also supervises the Landfill, as well as serves as the County Engineer.
Following discussion, the motion to approve the 2002-03 Landfill Operation and Maintenance budget as recommended by the County Executive totaling $722,912 passed unanimously by roll call vote.
Mr. Corbitt presented the 2002-03 Postclosure budget.
The County Executive’s recommendation totals $120,000.
Budget Minutes May 15, 2002 Page Thirteen
Mr. Corbitt advised the main increase was in Account 312, Contracts w/Private Agencies, budgeted at $75,000. He explained there is quite a bit of erosion relative to the cap. Mr. Corbitt explained the other line items in the Postclosure budget.
Following discussion, Comm. Sandlin moved, seconded by Comm. Peay to approve the 2002-03 Postclosure budget as recommended by the County Executive totaling $120,000.
The motion passed unanimously by roll call vote.
EMPLOYEE BENEFITS:
The County Executive’s recommendation for the 2002-03 Employee Benefits budget for the Solid Waste/Sanitation Fund totals $29,000.
The Finance Director advised the budget funds the Unemployment Compensation and Worker’s Compensation Insurance for the Solid Waste/Sanitation Fund.
Comm. P. Johnson moved, seconded by Comm. Throneberry to approve the 2002-03 Employee Benefits budget as recommended by the County Executive totaling $29,000.
The motion passed unanimously by roll call vote.
MISCELLANEOUS:
The County Executive’s recommendation for the 2002-03 Miscellaneous budget in the Solid Waste/Sanitation Fund totals $52,650.
The Finance Director advised primarily the only increase is for the Building & Contents Insurance and the Liability Insurance. This budget also funds the Trustee’s Commission.
Comm. Throneberry moved, seconded by Comm. P. Johnson to approve the 2002-03 Miscellaneous budget of the Solid Waste/Sanitation Fund as recommended by the County Executive totaling $52,650.
The motion passed unanimously by roll call vote.
ROAD & BRIDGE FUND 2002-03 BUDGET:
Mr. Mike Williams, Road Superintendent, presented the 2002-03 Road & Bridge Fund Budget.
The estimated revenue totals $6,537,500, and the projected expenditures total $6,915,624.
Mr. Williams advised the total expenditures are $242,478 higher than last year. He explained $138,223 is for salaries and employee benefits increases with the 3% that the County Executive has recommended. The other major expenses relate to moving into the new Highway facility, such as Office Equipment, Janitorial Services, Electricity, Natural Gas, and Water and Sewer.
Mr. Williams advised the budget includes an additional $30,000 for explosives and drilling services. He stated they have been doing their own drilling and contracting the blasting. He reported OSHA has informed them they will have to buy a new drill if they continue to do the drilling. He advised they are going to contract the drilling, as well.
He advised the budget includes increases for the Building & Contents Insurance, Liability Insurance, Unemployment Compensation, Communications, Postal Charges, Legal Notices, Supplies, etc.
Comm. P. Johnson moved, seconded by Comm. Throneberry to approve the 2002-03 Road & Bridge budget as presented totaling $6,915,624.
Budget Minutes May 15, 2002 Page Fourteen
The Finance Director advised the Road Superintendent had previously submitted his budget with salary step increases versus the 3% index on the current step. He reported they have worked on that, but the copy the committee has is still the original proposal. He advised the revised budget would increase slightly, but very little.
Following discussion, the motion to approve the 2002-03 Road & Bridge budget as presented passed unanimously by roll call vote.
2002-03 INDUSTRIAL ECONOMIC DEVELOPMENT FUND BUDGET:
The estimated revenue for the 2002-03 Economic Development Fund Budget totals $137,752, and the projected expenditures total $114,930.
The Finance Director advised the revenue for this fund was derived from interest on loan payments from the Smyrna/Rutherford County Airport Authority. He reported the county is receiving mortgage payments from Wherry Housing, and consequently the county earns interest on that.
The Finance Director advised the expenditures in the Economic Development Fund are for the county’s allocation to the Economic Development Council, The Town of Smyrna’s share of this payment, and Trustee’s Commission.
Comm. P. Johnson moved, seconded by Comm. Jones to approve the 2002-03 Industrial Economic Development Fund with estimated revenue totaling $137,752 and estimated expenditures totaling $114,930.
The motion passed unanimously by roll call vote.
2002-2003 LOCAL PURPOSE TAX FUND BUDGET (DEVELOPMENT TAX):
The estimated revenue for the 2002-2003 Local Purpose Tax Fund budget is $3,595,000, and the estimated expenditures total $3,578,395.
An itemized list of the expenditures for the 2002-03 Development Tax was provided for the information and use of the committee. Mr. Long advised the list did not include the $20,000 for the vehicle for the Correctional Work Center that was approved at the previous night’s meeting. That revision would make the total expenditures for the Development Tax $3,598,395, and would make the fund out of balance by $3,395.
Comm. Throneberry moved, seconded by Comm. P. Johnson to approve the 2002-03 Local Purpose Tax Fund Budget (Development Tax) as revised with estimated revenue totaling $3,595,000 and estimated expenditures being $3,598,395.
A discussion was held regarding the Siegel Ambulance Station budgeted at $160,000. The County Executive advised if the Siegel location did not work out, they could look in the Manchester Highway area for another site. She advised when the stadium was denied by the Board of Zoning Appeals, it did affect the ambulance station.
The County Executive suggested the $160,000 for the ambulance station be left in the Development Tax, because an ambulance station would be needed, whether it was the one at the Siegel location or the Manchester Highway area.
A discussion was held about the $300,000 budgeted for the dozier for the landfill, and the possibility of a lease, or the purchase of a used dozier. Comm. Sandlin stated he was wondering if a new dozier was needed.
The County Executive advised Mr. Corbitt had already bid the item to make sure the amount was accurate.
Budget Minutes May 15, 2002 Page Fifteen
The committee discussed the $500,000 budgeted for the Sheriff’s vehicles, and that the amount would purchase approximately 18 fully equipped vehicles.
Following discussion, the motion to approve the 2002-03 Local Purpose Tax Fund as revised passed unanimously by roll call vote.
2002-2003 SPECIAL PURPOSE FUND BUDGET:
Mrs. Jeanne Grant, Domestic Violence Coordinator, presented the 2002-03 budget for the Domestic Violence Grant program.
The County Executive’s recommendation totals $68,271.
Mrs. Grant requested the committee accept the recommendation of the County Executive. She advised this court was funded primarily through a federal grant.
The Finance Director advised the amount of federal revenue being projected is $51,210.
Comm. Peay moved, seconded by Comm. Ealy to approve the 2002-03 budget for the Domestic Violence Grant Program as recommended by the County Executive totaling $68,271.
The motion passed unanimously by roll call vote.
2002-03 VIOLENT OFFENDER APPREHENSION GRANT & SRO GRANT:
The Finance Director advised the Violent Offender Apprehension Grant was a one-year grant, and those positions have been moved into the Sheriff’s budget in the General Fund next year.
Mr. Long reported the 2002-03 School Resource Officer Grant budget totals $204,088. He advised this budget reflects the original five SRO’s received last year and does not reflect the three new SRO’s being requested. He reported this grant is 100% funded.
Comm. Peay moved, seconded by Comm. Throneberry to approve the 2002-03 SRO Grant totaling $204,088.
The motion passed unanimously by roll call vote.
2002-03 DEBT SERVICE FUND BUDGET: The Finance Director proposed the committee postpone the review of the 2002-03 Debt Service Fund budget until the next meeting. He advised he wanted to revise the amount of bonds to be issued in the next few weeks. He also advised he wanted to present a long-range projection on the fund.
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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