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BUDGET, FINANCE & INVESTMENT COMMITTEE
June 19, 2003 5:30 P.M. Courthouse
MINUTES:
Members Present: Others Present: Others Present: Others Present: Comm. Bob Bullen Nancy Allen Jackie Pope Lisa Nolen Comm. Anthony Johnson Ed Jordan Kathy McMahan Elaine Cawthon Comm. Will Jordan Gary Patton Alan Miller Comm. Robert Peay John Hodge Jones Nell Blankenship Comm. Steve Sandlin Harry Gill Cora H. Addison Comm. Doug Shafer Jeff Sandvig Linda Halliburton Comm. Joyce Ealy, Chair. Bentley Shofner Jennifer Farish
Chairman Ealy presided and called the meeting to order at 5:30 P.M. with all members being present.
APPROVE MINUTES:
The minutes of the June 10, 2003 Public Hearing were presented for approval.
Comm. Sandlin moved, seconded by Comm. A. Johnson to approve the minutes as presented.
The motion passed unanimously by acclamation.
APPROVE CONTRACT WITH TENNESSEE DEPARTMENT OF TRANSPORTATION FOR LITTER REMOVAL ACTIVITIES ON STATE HIGHWAYS:
Mr. Alan Miller requested approval of a proposed Maintenance Agreement for Fiscal Year 2003-04 with the State of Tennessee Department of Transportation for litter removal activities on State Highways, with the State to reimburse the county on an actual cost basis.
Comm. Sandlin moved, seconded by Comm. Jordan to approve the contract agreement with the State of Tennessee, Department of Transportation for litter removal activities on State highways for the Fiscal Year 2003-04 and forward the same to the full commission.
The motion passed unanimously by roll call vote.
LOCAL PURPOSE TAX FUND BUDGET AMENDMENT:
County Executive Allen requested approval of the following budget amendment to transfer funds appropriated for the Juvenile Courtroom to Fund 171, General Capital Projects. The County Executive explained that the bids came in higher than expected, and the project will be re-bid. This amendment transfers the money to Fund 171 so that it will not lapse at June 30:
From: 120-91120-304 – Architects - $ 4,479 120-91120-707 – Building Improvements - 195,544
To: 120-99100-590 – Transfers to Other Funds - $200,023
Comm. A. Johnson moved, seconded by Comm. Peay to approve the budget amendment as requested.
The committee discussed the PBA’s estimate of the cost of the existing plumbing problems.
Following discussion, Comm. Peay withdrew his second to the motion.
Comm. Jordan then seconded
the motion to approve the budget amendment from the Local Purpose Tax Fund as
requested to transfer funds appropriated for the Juvenile Courtroom to Fund 171,
General Capital Projects, as requested. Budget Minutes June 19, 2003 Page Two
The motion passed by roll call vote with Comm. Peay voting “no”.
SCHOOL BUILDING PROGRAM BUDGET AMENDMENTS:
Mr. Harry Gill, Director of Schools, and Mr. Jeff Sandvig, Assistant Superintendent, requested approval of a School Building Program budget amendment to transfer $44,744 from the Smyrna High re-roofing budget and $62,792 from the Buchanan School re-roofing budget to fund the shortfall of $107,536 for re-roofing the Roy Waldron School.
Comm. Shafer moved, seconded by Comm. Bullen to approve the amendment as requested to transfer $44,744 from the Smyrna High School re-roofing budget and $62,792 from the Buchanan School re-roofing budget to fund $107,536 for the re-roofing of Roy Waldron School.
The motion passed unanimously by roll call vote.
Mr. Gill and Mr. Sandvig requested approval of a School Building Program budget amendment to complete practice fields and other site development issues a Rock Springs Middle School by transferring $51,723 to Rock Springs Middle School with $20,770 coming from remaining Blackman Middle School funds and $30,953 from remaining Rock Springs Middle School funds and to amend $64,107 to site development at Rock Springs Middle School with $209 from Blackman Middle School’s technology budget and $63,898 from Rock Springs Middle School’s technology budget.
Comm. Bullen moved, seconded by Comm. Shafer to approve the School Building Program budget amendment as requested for $51,723 to complete practice fields and other site development issues at Rock Springs Middle School with $20,770 coming from remaining Blackman Middle School funds and $30,953 from remaining Rock Springs Middle School funds; and amending $64,107 to site development at Rock Springs Middle School with $209 from Blackman Middle School’s technology budget and $63,898 from Rock Springs Middle School’s technology budget.
The motion passed by roll call vote with Comm. Sandlin voting “no”.
Mr. Sandvig and Mr. Gill next requested approval of a building program amendment to amend $100 from Blackman Middle School’s architect fees and $112,043 from Blackman Middle School’s construction budget in order to fund the balance of the $142,129 contract to build the practice ball fields at Blackman Middle School.
Comm. Jordan moved, seconded by Comm. Bullen to approve $112,143 to site development at Blackman Middle School with $100 from Blackman Middle School’s architect fees and $112,043 from Blackman Middle School’s construction budget in order to fund the balance of the practice ball fields at Blackman Middle School.
The motion passed by roll call vote with Comm. Peay voting “no”.
Mr. Sandvig and Mr. Gill next requested approval of a building program amendment to fund the $140,995 shortfall in the Christiana Middle School budget with $99,897 from the remaining furniture, equipment and technology funds from Blackman Middle School and $41,098 in remaining furniture, equipment and technology funds at Rock Springs Middle School.
Comm. Jordan moved, seconded by Comm. Bullen to approve amending $140,995 to the Christiana Middle School budget with $99,897 from remaining furniture, equipment and technology funds from Blackman Middle School and $41,098 in remaining furniture, equipment and technology funds at Rock Springs Middle School.
The motion passed unanimously by roll call vote.
Mr. Sandvig and Mr. Gill
next requested approval of a building program transfer of $360,000 from Siegel
High School’s furniture budget to Other Capital Outlay for library books. Budget Minutes June 19, 2003 Page Three
Comm. Shafer moved, seconded by Comm. Sandlin to approve the transfer of $360,000 from Siegel High School’s furniture budget to Other Capital Outlay for library books as requested.
The motion passed unanimously by roll call vote.
Mr. Sandvig and Mr. Gill next explained that the sixth grade is being eliminated from Central Middle School and requested that a previously approved amendment in the amount of $255,667 with $99,897 from Blackman Middle School furniture, equipment and technology; $26,103 from Rock Springs Middle School furniture, equipment and technology; and $129,667 from Phase III (IV) Elementary repairs be rescinded.
Comm. Shafer moved, seconded by Comm. Bullen to approve rescinding the amendment in the amount of $255,667 for Central Middle School repairs with $99,897 from Blackman Middle School, $26,103 from Rock Springs Middle and $129,667 from Phase III (IV) Elementary repairs as requested.
The motion passed unanimously by roll call vote.
Mr. Sandvig and Mr. Gill requested approval of amending $153,636 for Central Middle School’s renovation project with $125,510 from 7th and 8th grade technology and $28,126 from La Vergne High School’s re-roofing project.
Comm. Peay moved, seconded by Comm. Jordan to approve amending $153,636 for Central Middle School’s renovation project with $125,510 from 7th and 8th grade technology and $28,126 from La Vergne High School’s re-roofing project as requested.
The motion passed unanimously by roll call vote.
Mr. Sandvig and Mr. Gill requested approval of a building program amendment to transfer $330,000 from Walter Hill School’s future HVAC project to the Buchanan School HVAC project and to award two contracts to Hawk Mechanical for the mechanical renovations at Thurman Francis School and Buchanan School.
Comm. Shafer moved, seconded by Comm. Bullen to approve the request to transfer $330,000 from the Walter Hill School HVAC project to the Buchanan School HVAC project as requested.
The motion passed unanimously by roll call vote.
2002-2003 GENERAL PURPOSE SCHOOL FUND BUDGET AMENDMENTS:
Mr. Sandvig and Mr. Gill requested approval of 2002-03 General Purpose School Fund budget amendments. The first group of proposed amendments reflected year-end adjustments to the various revenue accounts to the approximate actual revenue received. Mr. Sandvig also requested approval to amend the budget for the summer feeding program in the amount of $12,104, to appropriate a contribution in the amount of $30,000 for the Jennings & Rebecca Jones Foundation to support the Reading Workshop; and to increase the flow-through revenue for federal reimbursement for school lunches and breakfasts by $340,743 along with the related expenditures.
Comm. Bullen moved, seconded by Comm. Shafer to approve the year-end revenue adjustments to reflect the approximate actual revenue received, to amend the budget for the summer feeding program, the contribution for the Reading Workshop and to increase the federal flow-through revenue for school lunches and breakfasts as requested.
The motion passed unanimously by roll call vote.
Mr. Sandvig and Mr. Gill next requested approval of numerous budget amendments appropriating $185,000 in Basic Education Program funds and various non-staff dollars to fund
Budget Minutes June 19, 2003 Page Four
additional utilities and maintenance expenditures; appropriating $150,000 in Basic Education Program funds for the athletic fields at Christiana Middle School; reallocating $73,547 budgeted for certified staff to replace a vacant Safe Schools psychologist with a guidance counselor and additional stipends to teachers for summer in-service; reallocating flow-through funds from the State in the amount of $33,800 for extended contract payments to certified staff; reallocating pay for hourly and classified staff in the amount of $80,574 to cover projected staff through the end of June; reallocating medical insurance in the amount of $26,200 due to changes made to coverage since April; reallocating expenditures in the amount of $1,364 for employee life insurance; reallocating benefits within major functions due to savings in FICA/Medicare from those employees who choose pre-tax benefits and to allow for additional custodian hours; reallocating expenditures in the amount of $26,000 for substitute teachers through the end of June; reallocating $34,000 budgeted for the attendance system training and $12,000 from communications to cover the cost of the 2001/02 achievement tests; and reallocating a total of $610,799 in non-staff expenditures within major functions.
Comm. Bullen moved, seconded by Comm. Jordan to approve the 2002-03 General Purpose School Fund budget amendments as requested.
The motion passed unanimously by roll call vote.
2003-04 GENERAL PURPOSE SCHOOL FUND BUDGET:
Mr. Gill and Mr. Sandvig provided a list of potential cuts to tier three totaling $628,840 to comply with the committee’s action to recommend a 15 cent increase to the property tax rate for the General Purpose School Fund for a total property tax rate for schools of $1.45.
Mr. Patton expressed concern and stated he wanted an understanding that no raises would eventually be included for General Fund employees. A discussion was held regarding employee raises, and Mr. Sandvig stated a 1% employee raise would cost approximately $1 Million and a 2% increase would be approximately $2 Million.
Mr. Gill stated the money was needed to open Christiana Middle School and Siegel High School and that they could not cut much more from the proposed budget.
A discussion was held regarding the increase to the employee health insurance, and it was stated that while the increase for the General Fund was approximately $800,000, the increase for the school system was approximately $3 Million.
The committee discussed the possibility that the recommended property tax rate might be cut on the commission floor, and that it could possibly be cut by two to three cents.
Following discussion, Comm. Bullen moved seconded by Comm. Shafer to recommend a 15 cent increase to the property tax rate for the General Purpose School Fund for a total property tax rate for schools of $1.45 making a total General Purpose School Fund budget of $152,238,413.
The motion passed by roll call vote with Commissioners Bullen, Jordan, Peay, Shafer and Ealy voting “yes”, and Commissioners A. Johnson and Sandlin voting “no”.
2003-04 GENERAL DEBT SERVICE FUND BUDGET:
A proposed revised 2003-04 General Debt Service Fund budget was presented to the committee for consideration. The proposal reflected eliminating the two-cent increase from the property tax rate causing the total property tax rate for the Debt Service Fund to remain at 65 cents. The revised budget also proposed to reduce the sales tax revenue to be retained from the City of Murfreesboro by $515,000 and from the City of La Vergne by $116,000. The total revenue was proposed at $27,886,600. With expenditures totaling $30,377,610, this would cause the Debt Service to be under-funded by $2,491,010. The percent of fund balance compared to appropriations would be 87%, which is still within the fund balance policy.
Budget Minutes June 19, 2003 Page Five
Finance Director Lisa Nolen advised a letter had been received from the City of La Vergne stating that they planned to request a portion of the sales tax increase in the amount of $116,000; however to date, the La Vergne City Council had not acted on the proposal.
Following discussion, Comm. Peay moved, seconded by Comm. Bullen to leave the two-cent increase to the property tax rate for the General Debt Service Fund for a total property tax rate of 67 cents and to only eliminate the City of Murfreesboro’s request for a portion of their sales tax in the amount of $515,000.
The motion passed unanimously by roll call vote.
The total recommended revenue for the General Debt Service Fund would be $28,634,810 with proposed appropriations of $30,377,610. The fund balance is estimated to be 89% of appropriations, which remains within the county’s fund balance policy.
REQUEST TO STEERING COMMITTEE TO STUDY ALTRNATIVE SOURCES OF REVENUE:
Comm. A. Johnson requested discussion from the committee to consider sending a request to the Steering Committee relative to an eating/drinking tax and to request that the Steering Committee send a request on to the State Legislature. Comm. Johnson also stated he would like for a fee charged for using the convenience centers and suggested the possibility that users be required to purchase a sticker.
There was discussion relative to also charging a marriage and/or divorce tax.
Following discussion, Comm. A. Johnson moved, seconded by Comm. Peay to request that the Steering Committee look at alternative revenue sources including, but not limited to an eating and drinking tax (restaurant tax), a convenience center use fee (possibly a sticker), and a marriage and divorce tax.
The motion passed unanimously by roll call vote.
ADJOURNMENT:
Chairman Ealy noted the Budget Committee will meet again tomorrow night, June 20, at 5:30 P.M.
There being no further business to be presented at this time, Chairman Ealy declared the meeting adjourned at 8:17 P.M.
________________________________________ Elaine Cawthon, Secretary |
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