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BUDGET, FINANCE & INVESTMENT COMMITTEE
June 7, 2001 6:15 P.M. Courthouse
MINUTES:
Members Present: Others Present: Others Present: Others Present: Comm. Jerry Baxter Nancy Allen Ginny King Alan Miller Comm. Joyce Ealy Evans Maples Lynn Smith Jennifer Gerhart Comm. Joe Frank Jernigan Comm. Robert Peay John Davis Mark King Comm. Paul Johnson Susan Boney Del Corbitt Becky Smith Comm. Tina Jones Bob Shupe Truman Jones Jeff Sandvig Comm. Dwight Throneberry Tela Bayless Bob Asbury Chuck Clark Comm. Jimmy Evans, Chair. Bart Smith Curtis Little Linda Stevens Angel McCloud Regina Nelson Byron Hensley Cindy Phifer Paul Long Elaine Cawthon
Chairman Jimmy Evans presided and called the meeting to order with all members being present.
APPROVE MINUTES: The minutes of the May 16 and May 24, 2001 meetings 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 presented the monthly Investment Report for the use and information of the committee. Mr. Maples reported the LGIP rate for the month was 4.12%. Mr. Maples explained the investment transactions that occurred during the month. Comm. Jernigan moved, seconded by Comm. Baxter to approve the Investment Report as presented. The motion passed unanimously by roll call vote.
FUND CONDITION REPORT: Finance Director Paul Long presented the Fund Condition Report for the month ending May 31, 2001. Mr. Long reported the Development Tax collections for the month were $660,000. The year-to-date total is $2,682,750 compared to $2,640,375 for the same period last year. Mr. Long explained the fund cash balances as of the end of the month. The Employee Insurance Fund improved very slightly; however, some work will have to be done on the fund as soon as the budget is adopted. The total cash balances as of the end of May were $110,860,997, with $74,323,106 being operating funds and $36,537,891 being borrowed funds. He reported there were no unusual conditions to report at this time, but several amendments were being requested to take care of several budget line items in need of addressing. Following discussion, Comm. P. Johnson moved, seconded by Comm. Jernigan to approve the Fund Condition Report as presented. The motion passed unanimously by roll call vote.
Budget Minutes June 7, 2001 Page Two
GENERAL FUND BUDGET AMENDMENTS
REVENUE ADJUSTMENTS: Mr. Long presented proposed revenue adjustments for the General Fund. He explained it is expected the General Fund revenue will exceed the original estimate by $1,171,452. He explained the biggest increases are in the areas of Interest Earned and Wholesale Beer Tax. The total estimated revenue is $40,213,942, with reductions of $50,000 for the Reserve for Alcohol and Drug Treatment, $23,200 for the Chamber of Commerce, and $11,600 for the Stones River Greenway Trail. The net increase to fund balance is $1,086,652. It was pointed out that the County Clerk turned in $100,000 in excess fees today, and Mr. Long requested the list of revenue be adjusted to reflect that money. The amended revenue total is $1,226,452, with a net increase to fund balance of $1,141,652. Comm. Jernigan moved, seconded by Comm. Ealy to approve the revenue adjustments as amended and attached hereto with total revenue of $1,226,452 and a net increase to fund balance of $1,141,652. The motion passed unanimously by roll call vote.
INSURANCE DEPARTMENT: Finance Director Paul Long presented the following budget amendment for the Insurance Department requesting $100 transfer to the Postal Charges Account:
From: 101-51920-338 – Maint./Repair Vehicles - $100 To: 101-51920-348 – Postal Charges - $100
Comm. Ealy moved, seconded by Comm. Jones to approve the request as presented. The motion passed unanimously by roll call vote.
HEALTH DEPARTMENT: Mrs. Tela Bayless requested approval of the following budget transfer to provide additional funds necessary to support gas and electricity expenses through June 30 for the Murfreesboro and Smyrna Clinic sites:
From: 101-55110-355 – Travel - $ 600 101-55110-399 – Other Contracted Svc. 2,200 101-55110-499 – Other Supplies & Materials - 1,400
To: 101-55110-452 – Utilities - $4,200
Comm. Jones moved, seconded by Comm. Throneberry to approve the budget transfer as requested. The motion passed unanimously by roll call vote.
WHEEL TAX OFFICER: Mr. Bart Smith requested approval of the following budget transfer to provide additional funding to complete the remainder of the fiscal year in the Gasoline Account:
From: 101-54140-435 – Office Supplies - $150 101-54140-709 – Data Processing Equipment - 250
To: 101-54140-425 – Gasoline - $400
Budget Minutes June 7, 2001 Page Three
Comm. P. Johnson moved, seconded by Comm. Jernigan to approve the budget transfer as requested. The motion passed unanimously by roll call vote.
YOUTH SERVICES: Mrs. Angel McCloud, Youth Services Director, requested approval of the following budget transfer for postage due to increased volume and a postage rate increase:
From: 101-53500-334 – Maintenance Agreements - $250 To: 101-53500-348 – Postal Charges - $250
Mrs. McCloud also requested approval of the following budget amendment, which increases the current year contract amount between Rutherford County and the Tennessee Department of Children’s Services to utilize Helicon, Inc. to provide custody prevention services:
Increase Revenue: 101-46990 – Other State Revenue - $67,095 Increase Expend.: 101-53500-312 – Contracts w/Private Agencies - $67,095
Comm. Jernigan moved, seconded by Comm. P. Johnson to approve the budget transfer of $250 from Account 101-53500-334, Maintenance Agreements, to 101-53500-348, Postal Charges and to also approve the increase of the current year contract with the State of Tennessee for services provided by Helicon, Inc. by $67,095. The motion passed unanimously by roll call vote.
APPROVE 2001-2002 GRANT AGREEMENT WITH TENNESSEE DEPARTMENT OF CHILDREN’S SERVICES UTILIZING HELICON, INC.: Mrs. McCloud next requested approval of the 2001-2002 Grant Agreement between Rutherford County and the Tennessee Department of Children’s Services utilizing Helicon, Inc. to provide custody prevention services. The maximum liability of the State under the grant is not to exceed Six Hundred Seventeen Thousand Ninety-Five Dollars ($617,095.00). The Finance Director reported this amount does not agree with what is currently in next year’s budget, and an adjustment will need to be made to both revenue and expenditures. Comm. Jernigan moved, seconded by Comm. P. Johnson to approve the 2001-2002 Grant Agreement between Rutherford County and the Tennessee Department of Children’s Services utilizing Helicon, Inc. to provide custody prevention services. The motion passed unanimously by roll call vote.
AMBULANCE SERVICE: Ms. Ginny King, Emergency Medical Services, requested approval of the following budget amendments for the Overtime Pay Account due to increased turnover in Paraprofessionals, as well as a number of employees have been out due to injury, illness, or pregnancy. Also, due to an incorrect hire date for one individual, the Accountants/Bookkeepers line item needs to be corrected:
From: 101-55130-148 – Dispatchers/Radio Operators - $4,600
To: 101-55130-187 – Overtime Pay - $4,000 101-55130-119 – Accountants/Bookkeepers - 600
Ms. King also requested approval of the following budget amendment to appropriate a $300 donation for the Peddle Medics for their participation in the Charlie Daniels Rodeo: Budget Minutes June 7, 2001 Page Four
Increase Revenue: 101-44570 – Contributions & Gifts - $300 Increase Expend.: 101-55130-599 – Other Charges - $300 Ms. King also requested approval of the committee for the following budget transfers to provide additional funding for the Postal Charges Account, Data Processing Equipment for costs for mounting devices to secure the computers in the ambulances; Drugs and Medical Supplies due to continued increase in cost and usage; and Contracts with Private Agencies to maintain a small number of computer work stations from the previous software company:
From: 101-55130-399 – Other Contracted Services - $2,000 To: 101-55130-348 – Postal Charges - $2,000
From: 101-55130-735 – Health Equipment - $15,100
To: 101-55130-709 – Data Processing Equipment - $ 5,000 101-55130-413 – Drugs & Medical Supplies - 8,000 101-55130-312 – Contracts w/Private Agencies - 2,100
Ms. King also requested approval of the following budget amendment for the Paraprofessional Account and related benefits. Ms. King reported seven long-term paramedics have terminated employment this year. Three of the personnel had a large number of accrued annual leave hours that was paid:
From: 101-39000 – Undesignated Fund Balance - $46,600
To: 101-55130-133 – Paraprofessionals - $40,000 101-55130-201 – Social Security - 2,480 101-55130-204 – State Retirement - 3,540 101-55130-212 – Employer Medicare - 580
The Finance Director also advised last year when the budget was developed, it was decided to reduce the Paraprofessional Account by one percent. He explained, historically, in the Ambulance Service, Sheriff’s Department, and the Jail, there is a 1.5% to a 2% savings in their payroll line items as a result of turnover or reversion. However, he stated it did not work that way this year at the Ambulance Service and the Sheriff’s Department, although it did work at the Jail. He reported the 1% reduction contributed to the shortfall in the Paraprofessionals Account. Following discussion, Comm. P. Johnson moved seconded by Comm. Ealy to approve all of the budget amendments requested by the Ambulance Service for $4,000 for the Overtime Pay Account and $600 for the Accountants/Bookkeepers Account from Dispatchers/Radio Operators; $300 for the Other Charges Account for a donation for the Peddle Medics; $2,000 for the Postal Charges Account from Other Contracted Services; $5,000 for Data Processing Equipment, $8,000 for the Drugs and Medical Supplies Account, and $2,100 for the Contracts w/Private Agency Account from Health Equipment; $40,000 for the Paraprofessional Account, $2,480 for Social Security, $3,540 for State Retirement, $580 for Employer Medicare from Undesignated Fund Balance. The motion passed unanimously by roll call vote.
JUVENILE DETENTION: Ms. Lynn Smith, Juvenile Detention Center Director, requested approval of the following budget transfer to provide funding for appropriate school furniture to allow the Juvenile Detention Center to go forward with the educational services that will be required July 1:
From: 101-54240-422 – Food Supplies - $2,100 To: 101-54240-499 – Other Supplies & Materials - 2,100
The motion passed unanimously by roll call vote. Budget Minutes June 7, 2001 Page Five
CIRCUIT COURT JUDGE: Finance Director Paul Long requested approval of the following budget transfer for the Circuit Court Judge Office. Turnover in a court officer position resulted in a pay out of accumulated annual leave. The new officer had previous experience with Rutherford County, resulting in a higher pay step:
From: 101-53110-205 – Employee Insurance - $849
To: 101-53110-106 – Deputies - $727 101-53110-201 – Social Security - 46 101-53110-204 – State Retirement - 65 101-53110-212 – Employer Medicare - 11
Comm. Jones moved, seconded by Comm. Throneberry to approve the budget transfer as requested. The motion passed unanimously by roll call vote.
PLANNING/ENGINEERING: Mr. John Davis, Planning Director, requested approval of the following budget transfer to provide additional funding for the Gasoline Account due to gasoline price increases and increased mileage due to the land use study:
From: 101-51720-719 – Office Equipment - $ 5 101-51720-718 – Motor Vehicles - 9 101-51720-334 – Maintenance Agreements - 104 101-51720-330 – Operating Lease Payments - 42
To: 101-51720-425 – Gasoline - $160
Comm. Throneberry moved, seconded by Comm. Jones to approve the budget transfer as requested. The motion passed unanimously by roll call vote.
COUNTY BUILDINGS: County Executive Allen requested approval of the following budget transfers for the County Buildings Department to provide funding to complete the year in the Communications Account and the Other Contracted Services Account to pay contracted housekeeping to fill in for vacation and sick leave employees:
From: 101-51800-169 – Part Time Personnel - $7,500
To: 101-51800-307 – Communications - $2,500 101-51800-399 – Other Contracted Service - 5,000
Comm. Jernigan moved, seconded by Comm. Ealy to approve the budget transfers as requested. The motion passed unanimously by roll call vote.
ARCHIVES: County Executive Allen requested approval from the committee for the following budget transfer for the Archives Department. The County Executive explained last year when the budget was developed, it was not known exactly what the tuition increase at M.T.S.U. would be. She advised there was also a miscalculation in the stipend amount:
From: 101-51910-719 – Office Equipment - $1,500 To:
101-51910-599 – Other Charges -
$1,500 Budget Minutes June 7, 2001 Page Six
Comm. Ealy moved, seconded by Comm. Throneberry to approve the budget transfer as requested. The motion passed unanimously by roll call vote.
FINANCE DEPARTMENT: Finance Director Paul Long requested approval of the following budget transfer to provide funding to make repairs to the scanner:
From: 101-52100-709 – Data Processing Equipment - $400 To: 101-52100-336 – Maintenance/Repair Equipment - $400
Comm. Throneberry moved, seconded by Comm. Jones to approve the budget transfer as requested. The motion passed unanimously by roll call vote.
CHANCERY COURT: The Finance Director requested approval of the following budget transfer for the Chancery Court to provide adequate funding to complete the remainder of the year in the Dues & Memberships Account:
From: 101-53400-435 – Office Supplies - $110 To: 101-53400-320 – Dues & Memberships - $110
Comm. Jernigan moved, seconded by Comm. Ealy to approve the budget transfer as requested. The motion passed unanimously by roll call vote.
TRAFFIC CONTROL: County Executive Allen requested approval of the following budget amendment to provide funding for the Traffic Control Utilities Account. The County Executive advised this is to cover Rutherford County’s obligation under the agreement with the Tennessee Department of Transportation for lighting at the interchange at the super speedway:
From: 101-39000 – Undesignated Fund Balance - $3,050 To: 101-54130-452 – Utilities - $3,050
Comm. Jernigan moved, seconded by Comm. Throneberry to approve the budget amendment as requested. The motion passed unanimously by roll call vote.
OTHER PUBLIC HEALTH & WELFARE (MEDICAL EXAMINER): The County Executive requested approval from the committee for the following budget amendment for funds needed to complete the fiscal year to pay the medical examiner and to pay for autopsies:
From: 101-39000 – Undesignated Fund Balance - $12,000 To: 101-55900-131 – Medical Personnel - $12,000
Comm. Ealy moved, seconded by Comm. Jernigan to approve the budget amendment as requested. The motion passed unanimously by roll call vote.
Budget Minutes June 7, 2001 Page Seven TOURISM & RECREATION: The Finance Director requested approval of the following budget amendment to provide additional funding for the Stones River Greenway and the Chamber of Commerce due to increased revenue in the Hotel/Motel Tax:
From: 101-39000 – Undesignated Fund Balance - $ 34,800
To: 101-56700-316 – Contributions - $ 11,600 101-58110-316 – Contributions - 23,200
Comm. Jernigan moved, seconded by Comm. Jones to approve the budget amendment for the Stones River Greenway and the Chamber of Commerce based on the Hotel/Motel Tax formula. The motion passed unanimously by roll call vote.
OTHER CHARGES (GARAGE): County Executive Allen requested approval from the committee for the following budget transfer to provide funding needed to complete the fiscal year in the Utility Account:
From: 101-58400-707 – Building Improvements - $1,500 To: 101-58400-452 – Utilities - $1,500
Comm. Jernigan moved, seconded by Comm. Throneberry to approve the budget transfer as requested. The motion passed unanimously by roll call vote.
MISCELLANEOUS: Finance Director Paul Long requested approval from the committee for the following budget transfer to provide funding to allow for the payment of an invoice received from The Hartford for settlements of civil rights cases:
From: 101-58900-331 – Legal Services - $12,750 To: 101-58900-505 – Judgments - $12,750
Comm. Jernigan moved, seconded by Comm. Throneberry to approve the budget transfer as requested. The motion passed unanimously by roll call vote.
SHERIFF’S DEPARTMENT: Philip Martin, Sheriff’s Department, requested approval of the following budget amendment, which reduces the amount of the Juvenile Accountability Incentive Block Grant. Unspent funds were required to be refunded to the State. This amendment reverses that portion of the earlier amendment to accommodate the grant:
Decrease Revenue: 101-46980 – Other State Grants - $6,907 Decrease Expend.: 101-54110-709 – Data Processing Equip. - 2,325 101-54110-429 – Instructional Supplies & Materials - 4,582
Mr. Martin advised after they received the money, they had 30 days to spend the funds; and after the committee process, they had 7 days to expend the funds. He explained that $23,000 was spend within 7 days. He reported there are only certain things they can purchase. Comm. P. Johnson moved, seconded by Comm. Jernigan to approve the budget amendment to reduce the JAIBG as requested. Budget Minutes June 7, 2001 Page Eight
The motion passed unanimously by roll call vote.
APPROVE 2001-2002 JUVENILE ACCOUNTABILITY INCENTIVE BLOCK GRANT: Mr. Martin explained at the Budget Committee Meeting when the 2001-2002 Sheriff’s budget was presented, the committee was advised that relative to any future grants, no money would be appropriated until a grant was approved and accepted. Mr. Martin advised for next year’s J.A.I.B.G., the county match would be $2,508. He reported the amount to be received from the State would be $22,000 to $23,000. He requested this amount be appropriated from Undesignated Fund Balance into Account 101-54110-429, Instructional Supplies and Materials, in the 2001-2002 budget. He requested the grant be accepted so that the contract paperwork could be completed. Following discussion, Comm. P. Johnson moved, seconded by Comm. Jernigan to authorize the County Executive to accept the 2001-2002 Juvenile Accountability Incentive Block Grant with a county match of $2,508. The motion passed unanimously by roll call vote.
APPROVE 2001-2002 BULLETPROOF VEST PARTNERSHIP GRANT: Mr. Martin advised the Sheriff Department’s application for the BulletProof Vest Partnership Grant has been accepted. He explained the grant is a 50%/50% grant. He advised the county’s portion is $22,638.44 to be applied and expended in the 2001-2002 budget year. He reported that grant will cover approximately 30 Threat II vests, 50 stab vests, and no tactical vests. Mr. Martin reported the Public Safety Committee has recommended to complete the funding for 20 Threat II vests, 50 stab vests for detention, and the remaining tactical vests at a cost of $68,000. Mr. Martin requested acceptance of the grant with the county match of $22,638.44 and consideration by the committee for the remaining vests. The Finance Director advised it was discussed at the Public Safety Committee Meeting as to whether or not the vests would qualify as capital expenditures. He explained they have an anticipated five-year life, and it was his belief they would qualify for a capital expenditure. He reported it was also discussed at Public Safety to pull the balance from some non-recurring source such as the Development Tax. He stated a transfer could be appropriated from the Development Tax to the General Fund to cover whatever match is approved on the grant. He advised the grant requires a 50% match of $22,638.44, but to purchase everything the Public Safety Committee recommended would require an additional $68,000 for a total of $113,000. The Finance Director reported in the past, grant dollars were included in the Sheriff’s budget, but the Sheriff’s Department was not aware the grant dollars were included. He advised it was decided this year, to leave everything grant related out of the budget until the county was notified the grant was going to be awarded. He explained if a grant included a 10% match, the 10% match would have to be appropriated after the budget is adopted. He explained in this case, the match is 50%, and it is a little more difficult to deal with. He stated the $22,638.44 is something the county can address, but he stated what the committee is really considering is $90,638.44 of local dollars from some source. He stated this could come from the General Fund, the Development Tax, or it could be borrowed. The Finance Director reported the Sheriff’s Department has applied for the Cops in Schools Grant for five officers. He stated that will be a 100% grant. Mr. Martin advised there would be a certain percentage the county would be required to fund relative to the Cops in Schools Grant on some issues such as training. It was discussed what would happen if the BulletProof Vest Partnership Grant was not approved. Mr. Martin reported the Law Enforcement Equipment has already been cut twice, and there would be no money for the stab vests in detention, and this would be a liability situation.
Budget Minutes June 7, 2001 Page Nine
Comm. P. Johnson advised at Public Safety, it was discussed there was enough money to buy some of the vests for some of the detention officers; but it was the general feeling it would be cost effective and for safety purposes, if the vests for all of the detention officers could be funded. He stated they believed it was important for each officer to have their own vest instead of swapping out the vests from officer to officer. He also reported they were assured if the vests were purchased, the officers would wear them. Following discussion, Comm. P. Johnson moved seconded by Comm. Jernigan to accept the Bulletproof Vest Partnership Grant and provide matching funds in the 2001-2002 budget in the amount of $90,638.44 to be funded by a transfer from the Development Tax. The motion passed unanimously by roll call vote. Comm. Jones stated she wanted to know the amount of the Cops in Schools Grant. She stated they all are in favor of safety for the officers first and foremost. Mr. Martin advised the SRO grant was not applied for until after the budget was presented. Ms. Regina Nelson, Chief Deputy, requested approval of the following budget transfers for needed funds to complete the year in Utilities, Medical Supplies and Food Supplies:
From: 101-54110-718 – Motor Vehicles - $ 61,000 101-54110-719 – Office Equipment - 3,000 101-54110-435 – Office Supplies - 5,000 101-54210-410 – Custodial Supplies - 3,000
To: 101-54210-452 – Utilities - $ 19,500 101-54210-413 – Drugs & Medical Supplies - 16,000 101-54210-422 – Food Supplies - 36,500
Comm. Jernigan moved, seconded by Comm. P. Johnson to approve the budget amendments as requested. The motion passed by roll call vote with Comm. Baxter voting “no”. Ms. Nelson also requested the following budget amendment to appropriate stall rental money received for the mounted patrol:
Increase Revenue: 101-44120 – Lease/Rentals - $1,350 Increase Expend.: 101-54110-399 – Other Contracted Svc. - $1,350
Comm. P. Johnson moved, seconded by Comm. Jernigan to approve the budget amendment as requested. The motion passed unanimously by roll call vote. Ms. Nelson requested approval from the committee for the following budget amendments to appropriate insurance proceeds for Maintenance and Repair of Vehicles, and to request money to be transferred into the Overtime Pay Accounts and related benefits to buy down compensatory time:
Increase Revenue: 101-44520 – Insurance Recovery - $5,507 Increase Expend.: 101-54110-338 – Maint./Repair Vehicles - $5,507
From: 101-54210-189 – Other Salaries & Wages - $70,000 101-54210-201 – Social Security - 2,480 101-54210-204 – State Retirement - 3,536 101-54210-212 – Employer Medicare - 580
Budget Minutes June 7, 2001 Page Ten
To: 101-54110-187 – Overtime Pay - $40,000 101-54110-201 – Social Security - 2,480 101-54110-204 – State Retirement - 3,536 101-54110-212 – Employer Medicare - 580 101-54210-187 – Overtime Pay - 30,000
Comm. Ealy moved, seconded by Comm. Jernigan to approve the budget amendments for the Insurance Proceeds and the Overtime Pay Accounts and related benefits as requested. The motion passed unanimously by roll call vote. Ms. Nelson next requested approval of the following budget amendments to provide an additional appropriation needed in the regular salary line item of the Sheriff’s Department. The Finance Director advised this was discussed at the Public Safety Committee meeting, and the Sheriff advised they were still working on the amount that would be needed. Mr. Long stated this request is partly the result of the one percent reduction for anticipated reversion in the Other Salaries & Wages Account when the budget was developed last year:
From: 101-54210-189 – Other Salaries & Wages - $33,000 101-54210-201 – Social Security - 2,046 101-54210-204 – State Retirement - 2,918 101-54210-212 – Employer Medicare - 480
To: 101-54110-189 – Other Salaries & Wages - $33,000 101-54110-201 – Social Security - 2,046 101-54110-204 – State Retirement - 2,918 101-54110-212 – Employer Medicare - 480
Comm. P. Johnson moved, seconded by Comm. Jernigan to approve the budget amendments for the Other Salaries & Wages Account and the related benefits in the Sheriff’s Department as requested. The motion passed unanimously by roll call vote.
PROPERTY ASSESSOR: County Executive Allen requested approval of the following budget amendment for the Board of Equalization to provide adequate funding for attorney’s fees and appraiser audits relating to the Bridgestone appeals: From: 101-39000 – Undesignated Fund Balance - $4,200 To: 101-51210-308 – Consultants - $4,200
Comm. Baxter moved, seconded by Comm. Jones to approve the budget amendment as requested. The motion passed unanimously by roll call vote.
RESOLUTION ESTABLISHING FIXED RATE REIMBURSEMENT FOR HOUSING STATE PRISONERS AT THE CORRECTIONAL WORK CENTER: Mr. Alan Miller, Correctional Work Center Supervisor, presented a proposed resolution to establish a fixed rate reimbursement of Twenty Dollars ($20.00) per day for housing state prisoners at the Correctional Work Center. Mr. Miller advised he had very few state inmates or maybe none currently at the Work Center. He stated it is simpler to adopt the rate the State offers rather than calculating actual cost per inmate for the number of State inmates that they have. Following discussion, Comm. P. Johnson moved, seconded by Comm. Baxter to approve the Resolution Establishing a Fixed Rate Reimbursement of Twenty Dollars ($20.00) per day for housing state prisoners. Budget Minutes June 7, 2001 Page Eleven
The motion passed unanimously by roll call vote.
APPROVE COPY MACHINE LEASE FOR REGISTER OF DEEDS: Ms. Jennifer Gerhart, Register of Deeds, advised a lease on a copy machine was expiring. She presented a copy machine lease with General Electric Capital Corporation and Middle Tennessee Reprographics for approval by the committee. The lease is for a term of 60 months at $197.35 per month with a Maintenance Agreement of $250 per quarter.
Comm. Jernigan moved, seconded by Comm. Baxter to approve the copy machine lease for the Register of Deeds as presented. The motion passed unanimously by roll call vote.
CHRISTY-HOUSTON GRANT AND CONTRIBUTION FROM NURSING HOME BOARD FOR COMMUNITY CARE: County Executive Allen and Mr. Mark King, Community Care of Rutherford County, advised the committee of a grant award of $2,515,523 from the Christy-Houston Foundation for the Phase II Project at Community Care. The County Executive also advised as a part of the grant, the Christy-Houston Foundation has requested approval of an agreement between Rutherford County and the Christy-Houston Foundation that if the County should sell the Community Care facility, the amount of the grant would be returned to Christy-Houston. This requirement would have no time limitations, and would not include any previous grants given to Community Care. In addition, the Rutherford County Nursing Home Board has agreed to fund $700,000, bringing the total cost of the Phase II project to $3,215,523. The County Executive advised the Health & Education Committee approved receiving the grant, the agreement between Rutherford County and the Christy-Houston Foundation, the $700,000 contribution from the Rutherford County Nursing Home Board, and a Tri-Party Agreement for the construction of Phase II between Community Care, the Public Building Authority and Rutherford County. Ms. Allen advised the Community Care Board had approved the Tri-Party Agreement, as well. Comm. Jernigan moved, seconded by Comm. Throneberry to approve the acceptance of the grant award from the Christy-Houston Foundation in the amount of $2,515,523, and to authorize the County Executive to execute the agreement between Rutherford County and the Christy-Houston Foundation to repay the Foundation the amount of the grant in the event the County ever sells the Community Care Facility. Further, to accept the contribution from the Rutherford County Nursing Home Board in the amount of $700,000, and to authorize the County Executive to execute the Tri-Party agreement between Community Care, the Public Building Authority, and Rutherford County. The motion passed unanimously by roll call vote.
SOLID WASTE/SANITATION FUND BUDGET AMENDMENTS
REVENUE ADJUSTMENTS: Finance Director Paul Long presented proposed revenue adjustments for the Solid Waste/Sanitation Fund. The revenue adjustments result in a reduction of revenue by $51,001. The total estimated revenue is $2,732,504. Mr. Long advised the biggest reduction is the Local Option Sales Tax. Ms. Rebecca Smith, Convenience Center Director, requested approval of the following budget amendment to provide funds needed to complete the year to pay Waste Management to haul recyclable materials:
Budget Minutes June 7, 2001 Page Twelve
From: 116-55732-724 – Site Development - $45,000 To: 116-55739-312 – Contracts w/Private Agencies - $45,000
Ms. Smith next requested approval of the following budget amendment to provide adequate funding for the Unemployment Compensation Account due to more employees drawing than anticipated:
From: 116-55732-724 – Site Development - $6,000 To: 116-58600-210 – Unemployment Compensation - $6,000
Comm. Jernigan moved, seconded by Comm. Ealy to approve the revenue adjustments attached hereto totaling $2,732,504 with a net reduction to fund balance of $51,001, $45,000 to 116-55739-312, Contracts w/Private Agencies from 116-55732-724, Site Development, and $6,000 to Account 116-58600-210, Unemployment Compensation from Account 116-55732-724, Site Development. The motion passed unanimously by roll call vote.
APPROVE GRANT FOR RECYCLE RUTHERFORD: County Executive Allen and Ms. Linda Stevens, Recycle Rutherford, advised the committee of a proposed grant made available to county governments from the State of Tennessee under the Solid Waste Act. The County Executive advised the grant would be used to purchase signage at the recycling centers. The grant requires a $3,000 match. She advised the grant had to be in by June 11. The following budget amendment was requested to recognize the revenue received from the grant and to fund the county match of $3,000:
Increase Revenue: 116-46980 – Other State Grants - $3,000 From: 116-55732-724 – Site Development - 3,000 To: 116-55739-499 – Other Supplies & Materials - $6,000
Comm. Ealy moved, seconded by Comm. Throneberry to authorize the County Executive to submit the grant for Recycle Rutherford and to also approve the budget amendment as presented. The motion passed unanimously by roll call vote.
LANDFILL OPERATION & MAINTENANCE Mr. Del Corbitt, Engineering Director, requested approval of the following budget transfer for the Landfill to provide adequate funding for the remainder of the year for the Communications Account:
From: 116-55754-708 – Communication Equipment - $850 To: 116-55754-307 – Communications - $850
Comm. Jones moved, seconded by Comm. Jernigan to approve the budget transfer as requested. The motion passed unanimously by roll call vote.
LITTER GRANT: County Executive Allen requested approval of the following budget amendment due to additional revenue for the Litter Program:
Increase Revenue: 116-46430 – Litter Program - $2,129 Increase Expend.: 116-55720-499 – Other Supplies & Materials - 2,129
Comm. Jernigan moved, seconded by Comm. Baxter to approve the budget amendment as requested. The motion passed unanimously by roll call vote.
Budget Minutes June 7, 2001 Page Thirteen INDUSTRIAL/ECONOMIC DEVELOPMENT FUND BUDGET AMENDMENTS: Finance Director Paul Long requested approval of the following revenue adjustments for the Industrial/Economic Development Fund reflecting a net decrease to fund balance of $22,349: Increase Revenue: 119-44110 – Interest Earned - $112,475 119-44170 – Miscellaneous Refunds - 236 Decrease Revenue: 119-44540 – Sale of Property ( 135,060) Decrease Fund Balance: 119-39000 - 22,349
Mr. Long explained the primary reason there is a decrease in the revenue is because the auditors requested the payment from Wherry Housing be accounted for differently. Comm. Throneberry moved, seconded by Comm. Jones to approve the revenue adjustments for the Industrial/Economic Development Fund with a total decrease in estimated revenue of $22,349. The motion passed unanimously by roll call vote.
LOCAL PURPOSE TAX FUND BUDGET AMENDMENTS: Finance Director Paul Long requested approval of the following revenue adjustments for the Local Purpose Tax Fund (Development Tax). The adjusted estimated revenue totals $3,245,400, which is a net decrease of $2,345,000. Mr. Long explained there has been a shortage all year long in the Development Tax collections:
Decrease Revenue: 120-40290 – Other County Local Option Taxes - ($2,400,000) Increase Revenue: 120-44110 – Interest Earned - 55,000 Decrease Fund Balance: 120-39000 - $2,345,000
Comm. Jernigan moved, seconded by Comm. Baxter to approve the revenue adjustments for the Local Purpose Tax Fund with estimated revenue totaling $3,245,400, and a net reduction in fund balance of $2,345,000. The motion passed unanimously by roll call vote.
DRUG CONTROL FUND BUDGET AMENDMENTS: The Finance Director requested approval of the following revenue adjustments and an amendment to the Trustee’s Commission for the Drug Control Fund. The total estimated revenue is $515,060. The additional amount needed for the Trustee’s Commission is $1,715. There will be a net increase to fund balance of $188,270:
Increase Revenue: 122-42340 – General Sessions Drug Control Fines - $ 40,560 122-42910 – Proceeds from Confiscated Property - 115,925 122-44110 – Interest Earned - 38,500
Decrease Revenue: 122-48130 – Contributions - $ 5,000
Increase Expend.: 122-54150-510 – Trustee’s Commission - $ 1,715 Increase Fund Balance: 122-39000 - $ 188,270
Comm. Jernigan moved, seconded by Comm. Jones to approve the revenue adjustments for the Drug Control Fund, as well as the amendment for the Trustee’s Commission resulting in a net increase to fund balance of $188,270.
Budget Minutes June 7, 2001 Page Fourteen
The motion passed unanimously by roll call vote. ROAD & BRDIGE FUND BUDGET AMENDMENTS: The Finance Director requested approval of the attached revenue adjustments for the Road & Bridge Fund, with estimated revenue totaling $6,100,012, and a net reduction to the fund balance of $390,858. Comm. P. Johnson moved, seconded by Comm. Baxter to approve the revenue adjustments attached hereto for the Road & Bridge Fund with estimated revenue of $6,100,012 and a net reduction in fund balance of $390,858. The motion passed by roll call vote with Comm. Jernigan voting “pass”.
QUARRY OPERATIONS: The following budget transfer was presented for the approval of the committee due to the fact an employee terminated, and accumulated vacation was paid:
From: 131-63400-187 – Overtime Pay - $1,766 To: 131-63400-142 – Mechanics - $ 16 131-63400-162 – Clerical - 1,750
Comm. Baxter moved, seconded by Comm. Throneberry to approve the budget transfer for $1,766 as requested. The motion passed by roll call vote with Comm. Jernigan voting “pass”.
GENERAL PURPOSE SCHOOL FUND BUDGET AMENDMENTS: Mr. Jeff Sandvig, Assistant Superintendent, was present to request approval of multiple budget amendments for the General Purpose School Fund. Mr. Sandvig requested approval of the following budget amendment totaling $40,409 to record the additional Safe School Act revenue and expenditures for the 2000-2001 school year:
Increase Revenue: 141-46590 – Other State Education Funds - $40,409 Increase Expend.: 141-71100-195 – Substitute Teachers - $ 5,309 141-71100-399 – Other Contracted Services - 35,100
Comm. Jernigan moved, seconded by Comm. Ealy to approve the budget amendment totaling $40,409 to record the additional Safe School Act revenue. The motion passed unanimously by roll call vote. Mr. Sandvig requested approval of the following budget amendment totaling $8,150 to record the 2000 MTSU Vocational Conference, which is hosted at Riverdale High School each year:
Increase Revenue: 141-46790 – Other Vocational - $8,150 Increase Expend.: 141-71300-189 – Other Salaries & Wages - 1,774 141-71300-201 – Social Security - 110 141-71300-204 – State Retirement - 87 141-71300-212 – Employer Medicare - 26 141-71300-429 – Instructional Supplies/Mat. 4,366 141-71300-599 – Other Charges - 1,577 141-72320-399 – Other Contracted Svc. - 210
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Comm. Jernigan moved, seconded by Comm. P. Johnson to approve the budget amendment totaling $8,150 to record the 2000 MTSU Vocational Conference. The motion passed unanimously by roll call vote. Mr. Sandvig next requested approval of a budget amendment totaling $35,937 to recognize revenue and expenditures for the Technology Literacy Grant that was made to teachers during the 2000-01 school year. Comm. Jones moved, seconded by Comm. Jernigan to approve the budget amendment totaling $35,937 to record the Technology Literacy Grant. The motion passed unanimously by roll call vote. Mr. Sandvig requested approval of the following budget transfer totaling $842 to cover the $400 per month car allowance for the superintendent. Mr. Sandvig reported Mr. Watson’s car is no longer usable, and the School Board voted to provide a car allowance of $400 per month rather than to purchase another vehicle:
From: 141-72320-710 – Administration Equipment - $842 To: 141-72320-189 – Other Salaries & Wages - $800 141-72320-204 – State Retirement - 30 141-72320-212 – Employer Medicare - 12 Comm. Jernigan moved, seconded by Comm. Throneberry to approve the budget transfer as requested. The motion passed unanimously by roll call vote. Mr. Sandvig requested approval of budget transfers within several categories totaling $400,222 to cover instructional materials and supplies cut from the 2001-02 budget. He also explained $75,000 in start up supplies for Siegel Middle School, additional substitute teachers and fee waiver/drivers education funds are also included in the amendment. The Special Education portion redirects funds that will be needed for contract services. Comm. Jernigan moved, seconded by Comm. Jones to approve the budget transfers totaling $400,222 as requested. The motion passed unanimously by roll call vote. Mr. Sandvig requested approval of budget amendments between categories totaling $184,055 to cover the costs of moving 27 portables through reallocating funds that will not be needed in various line items. The amendment also included minor salary and benefit adjustments. Comm. Ealy moved, seconded by Comm. Throneberry to approve the budget amendments totaling $184,055 as requested. The motion passed unanimously by roll call vote. Mr. Sandvig requested approval of budget amendments totaling $143,276 to cover additional communications costs, additional vocational substitutes, and an anticipated vacation pay out. Comm. Jernigan moved, seconded by Comm. Ealy to approve the budget amendments totaling $143,276 as requested. The motion passed unanimously by roll call vote. Mr. Sandvig requested approval of budget amendments totaling $41,652 to reclassify career ladder payments and the related benefits in accordance with the staff in place during the 2000-01 school year. Budget Minutes June 7, 2001 Page Sixteen
Mr. Sandvig also requested approval of budget amendments totaling $26,600, which reclassifies the system’s unemployment expenditures in light of actual payments during the 2000-01 school year. Comm. Jones moved, seconded by Comm. Throneberry to approve the budget amendments totaling $41,652 to reclassify career ladder payments and to approve the budget amendments totaling $26,600 to reclassify the unemployment expenditures. The motion passed by roll call vote with Comm. Ealy voting “pass”.
GENERAL DEBT SERVICE FUND BUDGET AMENDMENTS: Finance Director Paul Long requested approval of revenue adjustments attached hereto for the General Debt Service Fund, as well as an amendment to the Trustee’s Commission in the amount of $10,250. The revenue estimates total $104,174,626, which is a reduction in revenue of $774,456. After the $10,250 amendment for Trustee’s Commission, the net reduction to the Debt Service fund balance is $784,706. Comm. Jernigan moved, seconded by Comm. Throneberry to approve the revenue adjustments attached hereto for the General Debt Service fund, and the $10,250 amendment for the Trustee’s Commission as requested. The motion passed unanimously by roll call vote.
REQUEST TO CLOSE STEWARTSBORO ROAD PROJECT: Finance Director Paul Long requested approval of the following amendment to close the Stewartsboro Road Project in the General Capital Projects Fund, and to transfer the remaining balance to the Debt Service Fund:
Increase Revenue: 151-49900 – Residual Equity Transfers - $9,099 Increase Fund Balance: 151-39000 - $9,099
Comm. Baxter moved, seconded by Comm. Jernigan to approve the request to close the Stewartsboro Road Project in the General Capital Projects Fund, and to transfer the remaining balance to the Debt Service Fund. The motion passed unanimously by roll call vote.
RESOLUTION TO PROVIDE FUNDING FOR THE LA VERGNE LIBRARY: Finance Director Paul Long advised the committee that since the County Commission had approved to participate in the La Vergne Library Project at forty-seven percent (47.0%) of the cost not to exceed $1.5 million, it was necessary to determine where to appropriate the funds. Mr. Long advised the County Commission could adopt a resolution at the next meeting that basically says whatever fund is chosen for cash flow purposes could be reimbursed. He stated it could be cash flowed from the General Fund or the Development Tax Fund, or some other source, and then reimburse that fund from a subsequent bond issue. Mr. Long reported the other option would be to adopt capital funding and get a bond resolution approved. Mr. Long advised the project could be totally funded from the Development Tax. He stated they could appropriate whatever amount they thought might be needed next year. He stated as the City of La Vergne pays the bills, they will bill the County for half. He stated it could be appropriated this way, and then a bond resolution could be adopted to reimburse the money in the Development Tax.
Budget Minutes June 7, 2001 Page Seventeen
Following discussion, Comm. Jernigan moved, seconded by Comm. Throneberry to appropriate funds from the General Fund Undesignated Fund Balance to be amended as the City of La Vergne submits invoices to the county, with the General Fund to be reimbursed with a bond issue and provided the City of La Vergne approves the Tri-Party Agreement. The motion passed unanimously by roll call vote.
DISCUSSION OF PAYMENTS TO THE DAILY NEWS JOURNAL AND MID-SOUTH PUBLISHING COMPANY: At the Budget Committee Meeting on May 10, a proposal was presented by “The Murfreesboro Sun”. The committee requested the amount of payments to The Daily News Journal be provided. An analysis was provided showing payments to the Daily News Journal for all county funds to be $178,574.33 over a ten-year period. Payments to Mid-South Publishing Company for all funds totaled $28,828.30 for the same period.
RECOMMENDATION TO CONTINUE WITH CURRENT RE-INSURANCE CARRIER AND CHANGE STOP LOSS AMOUNT FOR HEALTH INSURANCE: Mr. Bob Shupe, Employee Security Planning, addressed the committee regarding the County’s current re-insurance carrier. Mr. Shupe reported this is not a bid year for employee benefits. However, he did go to the current carrier and ask them to go to as many markets as possible for the county’s re-insurance. Mr. Shupe provided an analysis of quotes received from various re-insurance carriers. He advised three different options were requested. He explained currently the County has a $50,000 specific stop loss, which means the county is re-insured on every individual that has claims that exceed $50,000. Mr. Shupe reported he wanted to look at two other options, either to increase the stop-loss amount to $75,000 or $100,000. He advised in looking at this, it was discovered the $50,000 stop-loss was probably not going to be the best route. He stated with a group of Rutherford County’s size, a $50,000 stop-loss is very low. Mr. Shupe explained the current annual specific premium is $1,117,351 with Pacific Life being the current re-insurance carrier. That cost was going to go up to $2,604,958 with Pacific Life. He stated the other carriers were also in the $2 million area. He explained it is being recommended to go from a $50,000 stop-loss amount to $100,000 and to remain with the current re-insurance carrier of Pacific Life. In this case, the annual specific premium will be reduced from $1,117,351 to $1,013,339. He reported the total current plan cost is $10,774,200, and the projected total plan cost is $12,007,372, which is an increase of $1,233,172. He advised instead of paying all of the claims up to $50,000, the County would pay all of the claims up to $100,000. Mr. Shupe explained the growth of participants in the plan and the additional cost to the plan for just adding participants. Mr. Shupe provided a claims analysis. He explained the claims through 10 months of this year totaled $7,692,929. He advised the claims increase for next year could increase by $1.2 to $1.3 million. Under the $100,000 stop loss, the cost of the claims could be approximately $400,169 more. The total increased cost of the program is anticipated to be approximately $1,633.341. He stated the actual premium savings by choosing the $100,000 specific stop-loss amount would be approximately $238,996.
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Conversely, if the $75,000 specific stop-loss amount is used, the total increased cost of the program is approximately $1,974,988. The premium cost increase would be $741,816 instead of a saving of $238,996. Mr. Shupe reported through 10 months, 46 people have gone over $25,000 in claims. Of those 46, 13 went over $50,000, 1 went over $75,000, and 4 went over $100,000. Mr. Shupe advised when the Health Insurance was bid, attached to William C. Beeler’s Administrative Contract was a list of eleven items that Beeler had to agree to comply with. He reported that has been monitored, and of those items there are still four areas that need to be addressed. The following were submitted to be included in an addendum to the Administrative Services Agreement with William C. Beeler:
1. To Provide Monthly Pending Claims Report 2. Performance Guarantees 3. To Send a User-Friendly Letter to the participant Whenever a File is Closed 4. Regular Educational Meetings With Employees
Mr. Shupe advised by adopting the Addendum to the Administrative Services Agreement, it would also mean that William C. Beeler is being approved to be the claims payer. Following discussion, Comm. P. Johnson moved, seconded by Comm. Jernigan to accept the recommendation of the Insurance Committee to remain with Pacific Life as the re-insurance carrier and to change the specific-loss amount from $50,000 to $100,000. Additionally, to approve the Addendum to the Administrative Services Agreement between Rutherford County and William C. Beeler Company, Inc. thereby approving William C. Beeler as the claims payer. The motion passed unanimously by roll call vote. Mr. Shupe stated he believed one thing that was going to have to be addressed in order to affect the claims cost, is the network issue. He stated there could be significant savings by leaving the current network.
OTHER BUSINESS: Comm. Baxter stated he wanted to go on record to ask the Health & Education Committee for a funding recommendation on the Siegel High School project. He stated he would like to see a recommendation by the end of June.
ADJOURNMENT: There being no further business to be presented at this time, Chairman Evans declared the meeting adjourned at 8:35 P.M.
_____________________________________ Elaine Cawthon, Secretary
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