BUDGET, FINANCE & INVESTMENT COMMITTEE

June 12, 2001                                                 6:00 P.M.                                        Courthouse

PUBLIC HEARING MINUTES:

Members Present:                                    Others Present:                                    Others Present:

Comm. Jerry Baxter                                 Nancy Allen                                           Mike Nunley            

Comm. Joyce Ealy                                   Comm. Faye Elam                              Judy Hailey              

Comm. Joe Frank Jernigan                    Comm. Trey Gooch                             Alan Miller              

Comm. Paul Johnson                              Comm. Gary Farley                             Cindy Phiffer

Comm. Tina Jones                                  Comm. Grant Kelley                             Carly Harrington

Comm. Dwight Throneberry                   Comm. Robert Peay                             Bryan Brooks

Comm. Jimmy Evans, Chair.                 Comm. Anthony Johnson                      Paul Long

                                                                  Hulon Watson                                         Elaine Cawthon

                                                                 Jeff Sandvig

Vice Chairman Joe Frank Jernigan opened the Public Hearing on the 2001-2002 Rutherford County budget with all members being present.

PRESENTATION BY FINANCE DIRECTOR:

Finance Director Paul Long gave a slide presentation explaining the budget process to date.  Mr. Long pointed out the proposed tax rate is $2.78, which is the same that it has been for several years.  He explained there has been a two-cent shift from the General Purpose School Fund to the General Fund, because the School Board will no longer share in the funding of the School Resource Officers.

Mr. Long explained the estimated revenue and expenditures by fund.  He discussed the annual growth in the assessed value for the past ten years.  He advised those in attendance of the Budget Committee actions to date.  He advised the Budget Committee has also indicated a willingness to look for sources to fund some investment in technology for the General Purpose School Fund after the books are closed for the current fiscal year.

Mr. Long explained the projected revenue by source and the appropriations by function.  He advised 63% of the County’s budget is funded locally.

He explained the amounts budgeted for Public Safety, Health & Welfare, Administration of Justice, and Finance.

Mr. Long provided an analysis of the Long-Range Budget Projections for the General Purpose School Fund that was presented last year at the public hearing.  He advised the analysis had not been changed to reflect actual or more current information.  He stated he wanted to demonstrate that when potential needs for new revenue was discussed a year ago, it was predicted that there would be small shortages in balancing the school budget for a few years.  He stated it was explained there would be a fairly substantial difficulty in fiscal year 2003 and 2004.  He stated that was after the impact of enacting the new revenue.  He stated everyone was made aware that even with the new revenue, there would still be a problem in balancing the General Purpose School Fund in the years 2003 and 2004.

Chairman Evans thanked the Finance Director, the County Executive, the Budget Committee and other commissioners who have participated in the budget process.

Chairman Evans opened up the public hearing for comments from those present. 

No one came forward to make any comments.

Chairman Evans declared the public hearing portion closed.

Budget Minutes                                                June 7, 2001                                                    Page Two

APPROVE INCREASE IN ORGAN TRANSPLANT PREMIUM RELATIVE TO HEALTH INSURANCE:

The Finance Director advised of an item relating to health insurance that he wished to discuss.  He explained he was notified today through the County’s third-party administrator for the health plan, William C. Beeler, and the consultant, Bob Shupe,  that the company that insures county employees for organ transplant services is increasing the monthly contribution they are going to require for each employee.  He advised it was a very small increase of approximately $13,000 over the course of a year.  He stated William C. Beeler had been asked to see if there was another provider who would cover this service.  He advised William C. Beeler had stated they believed this was the only company that would insure it separately.  Other companies might be interested in it if it was a package deal.  Mr. Long advised all departments in the county would share the $13,000.

Following discussion, Comm. P. Johnson moved, seconded by Comm. Jernigan to approve the increase for the organ transplant services relative to Rutherford County’s Health Insurance Plan.

The motion passed unanimously by roll call vote.

CANCEL MEETING OF JUNE 13, 2001:

Chairman Evans advised the Budget Committee meets the night after the public hearing primarily to discuss the public comments and make any decisions as a result of what the public might bring to light.  However, since there have been no comments, he stated he believed every member of the committee was comfortable with the budget as it stands.  He stated if it was the wish of the committee, this might be an opportunity to adopt the budget as it is, and to move forward at this point just awaiting the meeting on Wednesday, June 20 with the School Board, and hopefully their acceptance of the dollars the committee has recommended.

Comm. Jernigan moved, seconded by Comm. Baxter to move forward with the budget as it currently stands and to cancel the meeting scheduled for Wednesday, June 13 with the next scheduled meeting being Wednesday, June 20 to address the 2001-2002 General Purpose School Fund budget.

The motion passed unanimously by roll call vote.

ADJOURNMENT:

There being no further business to be presented at this time, Chairman Evans declared the public hearing adjourned at 6:35 P.M.

_____________________________

Elaine Cawthon, Secretary