BUDGET, FINANCE & INVESTMENT COMMITTEE

June 10, 2003                                                 7:00 P.M.                                        Courthouse

MINUTES:

Members Present:                  Others Present:                                    Others Present:

Comm. Bob Bullen                  Comm. Paul Johnson                         Comm. Tina Jones

Comm. Anthony Johnson       Comm. Dwight Throneberry               Comm. Carol Cook

Comm. Will Jordan                 Comm. Joe Frank Jernigan               Comm. Mike Sparks

Comm. Robert Peay              Comm. Gary Farley                             Comm. Jeff Phillips

Comm. Steve Sandlin            Comm. Faye Elam                              Jennifer Farish

Comm. Doug Shafer              Comm. John Rodgers

Comm. Joyce Ealy, Chm.      Comm. Trey Gooch                 

Ron Merritt, Sue O’Brien, Clyde M. Elrod, Jenn Paul, Jr. , Tim Powers, David Limbaugh, Bret Hooper, Carty Roberts, James Manning, Joan Bloodworth, Brenda Sweeney, Helen German, Willie F. Williams, Sr., Gloria Throneberry, David & Beverly Swindler, Norma McAlister, Gerald McAlister, Gladys Cannon, Annie M. Smith, Robert Mullins, Stan Baskin, Winifred Ann Reese, Rick Meacham, Dorothy Rooker, Lillian Rowland, Linda Lowe, Wanda Chandler, Joyce Armstrong, Evelyn Mahaffey, Mary Karihura, Henly Ozburn, William Rutter, Bill Fairchild, Laurie Cantrell, William Johnson, Janet Davis, Ray Tennpenny, Don Robinson, John Hopkins, Ken M. Flemming, Orinda Reeves, Tom Ridley, Joe Shaw, Robert E. Willis, Joanne Hut, Ken Brenows, Judy Hailey, John Taylor, L.C. Lattimer, Jean Nagy, Gretchen Brecht, Jim Creech, Bill Landry, Sherry Nowlin, Jay W Beauchene, Karen Beauchene, Merl Wyman, James Payne, Paul Schmitz, Donald Detweler, Linda & Mark Blanco, Chris Dyer, Regina Harvey, Kathy McMahan, Terry Alexander, Bentley Shofner, Lillian Hibbett, Barbara Leeper, Kathy Edwards, Mort Cohen, Sam Pieper, Jr. MD, Casey Clark, Rev. Felix L. Rankins Sr., Whitney Stegall, Bruce Duncan, Susan Allen, Joya Fawne, Ralph Fawner, Steve Cates, Jon Dinkins, Harry Gill, Tom Delbridge. 

RECORDING SECRETARY’S NOTE:  Not all persons making public comments signed in.  Therefore, names may have been misspelled.  In some instances, the name spoken was unintelligible, but their comments have been duly noted and recorded. 

Chairman Ealy presided and opened the public hearing relative to the 2003-2004 budget with all members being present. 

Comm. Ealy introduced the members of the Budget Committee, other commissioners in attendance and Elaine Cawthon, Interim Finance Director.  Comm. Ealy introduced Lisa A. Nolen, as the Budget Committee’s recommendation for Finance Director. 

FINANCE DIRECTOR 2003-2004 BUDGET PRESENTATION:

Ms. Cawthon explained the budget process to date.  She explained the difference in the current property tax rate of $2.51 and the proposed tax rate of $2.78.  Ms. Cawthon presented a Statement of Operations showing the projected fund balance of each of the funds as of June 30, 2004.  Ms. Cawthon displayed a chart showing the annual growth in the assessed value for 10 years.  The presentation included the Budget Committee’s actions to date.  An illustration was provided of the projected revenue by source and the appropriations by function totaling $247,600,608.  She provided a further breakdown of the county Budget by Public Safety, Health & Welfare, Finance and Admin. of Justice.  Ms. Cawthon provided a chart showing how the schools enrollment has grown over the last five years.

PUBLIC COMMENTS:

Ron Merritt, 503 Regency Park, 20 year-resident, expressed his concern about taxes increasing, but there was not a noticeable increase in service.  He recommended the county collect more per ton for out of county solid waste.

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Angela Hayes, Spike Trail,  4-year resident, wanted to know how much the county has spent in the current year compared to what the budget is in 2003-2004.  She wanted to know why we are we increasing our spending and what are we spending our dollars on. 

Joe Shaw, 1734 Somerset, proposed the Board of Education add a soccer coach, to the schools to provide additional supervision. 

Helen Jernigan, 1218 Rutherford, resident since 1967, noted that almost 75% of the county budget is spent for the benefit of schools.  She spoke in favor of seniors. 

Ms. Cawthon explained the amount of funding in the current budget on behalf of the senior citizens in the community. 

Paul Wyman, speaking on behalf of L.C. Lutrell of 1115 Kirkwood Drive, spoke in favor of seniors.  He stated that many seniors in the community are anxious about the proposed cuts for seniors and explained that there is currently a need and an increasing demand for services for seniors. 

David Limbaugh, 542 Warrior Drive, spoke in favor of an impact fee, increased funding for schools and the enactment of the Homestead Act to benefit seniors. 

Bentley Shofner, 4625 Spring Cove Drive resident,  President of REA, explained that teachers are asked to work more and more with less and less.  He stated that a lack of funding schools is the problem and noted that principals double as janitors in some schools.  He noted that Rutherford County schools received an F on the States Report Card in the area of funding.  He supports a tax increase for schools. 

Casey Clark, resident of Rutherford County, asked that commissioners to quit using schools as an excuse to raise taxes.  He expects leaders to take a stand. 

Clyde Williams, resident of Rockvale (age 85), noted that even though the tax rate supposedly did not increase, he had to pay $90 more in taxes because of the reappraisal and wondered what it would have cost him if the tax rate had been increased.  He is retired and lives on interest earnings.  He stated that he could not afford to pay higher taxes. 

Rev. Rankins, resident of Evergreen Street, noted that we need schools, but Rutherford County has the highest county & city taxes.  He wondered why the county would build schools if there aren’t enough funds to operate them.  He asks the commissioners to put their heads together and cut expenses, not raise taxes. 

Bret Hooper, resident of 914 Hawksridge Drive, noted that schools get more bang for their buck, and they cannot operate without money.  He stated that you can’t give superior educational services without money and our future lies with the children.  He supported a tax increase. 

Tim Powers, 1816 Holloway Circle resident, noted that the American’s dream is to own your own home.  If the taxes increase, then the homes become unaffordable.  He supported an impact fee so that progress could pay for itself.  He suggested creative approaches: consolidate the schools, enact a professional privilege tax on teachers and other professionals. 

Bruce Duncan, 1606 Dickens Court resident, Sec. of St. Clair Sr. Citizen Commission, spoke in favor of senior citizens and funding services for seniors. 

Rev. Annie Smith, resident of Rutherford County, noted that when the Board of Education builds a school, they should build within their means.  She stated that the county needs good teachers and a good place for them to learn.  She is concerned that monies aren’t always spent wisely and is concerned about the tax increase. 

Barbara Leber, 2219 Brickway resident, noted that because of the economy, her husband has been laid off.  She currently teaches at Oakland and encouraged the commissioners to fund the school’s request.

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Paul Schmidt, 1010 Ash Circle, recommends finding additional federal monies to fund schools, eliminating ½ days at the school and possibly extending the school day.  He felt that prioritizing was the problem. 

Jean Ann Rodgers, 2631 Memorial Blvd resident, noted that the Siegel land had been donated, athletics are important and it gives every student an opportunity to participate.  She stated that the residents need fair taxation and supports a tax increase for schools. 

Joan Bloodworth, 1102 Whitehall Road resident, loves the Senior Center in Murfreesboro.  She recommends that when a resident reaches 70, the amount of the tax associated with schools should not be increased.  She supports the 1 penny on the tax rate allocated to seniors. 

Tom Walker, 2306 Katy Court resident, supports the impact fee.  He stated that schools will always have a need, and we will have to give them more.  He noted that the house prices in Rutherford County are lower than the surrounding area and stated that $2.78 is not a small amount. 

Charles Wheel, 214 Yearwood resident, is against unfair taxes and against paying an increase in taxes.  He questioned whether or not MTSU students pay the wheel tax. 

Lee Campbell, 7998 Del Thomas Rd, Smyrna, recited the history of the proposed income tax in Tennessee.  He noted that the state cut back the amount of stated shared revenues to cities and counties, and now local property owners have to bear the burden. 

Ken Brose, 6912 Timberlake Drive, stated that the county and city schools should consolidate.  He also noted that the school officials should demand warranties from developers of school construction. 

Wm. Johnson, North Lamar Road resident, asked why the commissioners always come to the residents to pay increases in taxes.  He asked the commissioners to find another way to pay for services other than his pockets. 

Bill Kitchen, resident of Rutherford County, hates to see his taxes increased and encouraged tighter cuts. 

Dr. Sam Pieper, 1234 Cherry Lane resident, noted that 10% of the Rutherford County population is senior citizens.  He asked the commissioners to please find some way to fund services for seniors, so that the amount allocated will grow as the budget grows. 

David Swindler, 1714 Wilshire Drive, senior citizen resident, is concerned about senior citizens.  He noted that as the government takes more from him, he has less available to care for himself. 

He believes in a flat tax. 

Danny Deal, resident of Rutherford County, asked how the money in Rutherford County is spent and wondered if the county was audited. 

Comm. Sandlin explained that the State of Tennessee audits the County and that the budget is currently on the county’s web site. 

Susan Allen, 2031 Nelson Lane resident, noted that 75% of the appropriations are for schools.  She stated that if growth paid for itself, then they wouldn’t be asking for a tax increase.  She encouraged looking at a fair impact fee on new homes.  She stated that people are being taxed out of their home. 

Whitney Stegall, 132 Park Circle resident, noted that Rutherford County is a great county and a great place to live, but that we are listed as 74^th by the state.  The county is not even paying the state’s average per pupil expenditure.  He favors raising property taxes. 

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Mark Blanco, Ash Circle, LaVergne resident, suggested that they need to have parents and students involved in paying for school services. 

Rick Clayton, Regency Park resident, stated that the county is growing too fast, the residents can’t afford to pay for growth, and that there are too many small houses being built in the county. 

Stan Baskin, 265 Osborne Lane resident, noted that the county pays $641 below the state average per pupil expenditure.  He determined that the county spends only $3.64 per hour per student.  He supports a tax increase. 

Brenda Schmitz, resident of Rutherford County, wondered why the County received an F in funding when the county has obviously performed more with less than the state average. 

Else Lutrell, 1115 Kirkwood resident, noted that the school’s spending is out of hand.  They are spending too much on lawsuits.  She notes that each school built seems more elaborate than the one before.  She supports keeping services for Senior Citizens. 

Jim Creech, resident of Rutherford County, noted that he is okay with spending for the schools and that tax increases are always for the schools.  However, in light of our current economic circumstances, the schools may be building nicer than they have to be.  He recommends the board of education reconsider building schools without ball fields. 

Laura Cantrell, resident of Rutherford County, spoke in support of schools.  She notes that she will not receive a pay increase and supports an impact fee.  She believes Rutherford County should be equal to other states. 

Kathy McMahan, 1401 East Northfield resident, encouraged the commissioners to provide funding for the students.  She believes there should be equity between the schools and that there is a need for a great quality of service.  She supports increases for schools. She also stated that other county services should be funded too.   

James Averitte, 153 Skyview Drive resident, noted that it doesn’t cost as much to educate in the private sector as the public sector.  He recommends that the school board determine their priorities and encouraged them not to spend just because the money is there.  He also noted that his taxes have increased due to reassessments. 

Danny Deal, noted that residents have the right to pay more towards county services and that the county is able to accept donations.  

There being no others wishing to make a public comment, Comm. Ealy closed the public hearing at 9:14 pm.

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Lisa A. Nolen, Secretary