BUDGET, FINANCE & INVESTMENT COMMITTEE
June 20, 2003 5:30 P.M. Courthouse
MINUTES:
Members Present: Others Present:
Comm. Bob Bullen Nancy Allen
Comm. Anthony Johnson Lisa Nolen
Comm. Will Jordan Elaine Cawthon
Comm. Robert Peay Chm. Ed Jordan
Comm. Steve Sandlin Jeff Sandvig
Comm. Doug Shafer Bob Shupe
Comm. Joyce Ealy, Chm. Susan Boney
Jennifer Farish
Chairman Ealy presided and called the meeting to order with all members being present.
YOUTH SERVICES
Comm. Ealy presented a contract from the Tennessee Commission on Children and Youth for the fiscal year June 30, 2004. This contract is to improve juvenile court services or to provide community alternatives to detention. This contract award is for $9,000.
Comm. Shafer moved, seconded by Comm. Johnson, to approve the contract and authorize the county executive to sign all related documents.
The motion was approved unanimously by roll call vote, Comm. Sandlin absent at the time of voting.
PROPERTY & CASULTY INSURANCE
Mr. Bob Shupe presented information from the insurance committee regarding the review of bids for the county’s property & casualty insurance renewal. Mr. Shupe reported the property coverage would still be fully insured. The insurance committee recommended Allianz. Blanket coverage is $100,000,000. The deductible for property remains the same at $100,000, but the deductible for flood, and quake damage has increased from $50,000 to $100,000. Damage related to terrorism is at the limits of the blanket coverage.
Comm. Bullen moved, seconded by Comm. Johnson, to renew with Allianz for the County’s property insurance.
The motion was approved unanimously by roll call vote, Comm. Sandlin absent at the time of voting.
Mr. Shupe explained that the county’s Casualty insurance deals with third party issues. Casualty insurance includes General Liability, errors and omissions policies, law enforcement errors and omissions, employment related practices, and the automobile liability coverage. Royal is the current carrier, but they have withdrawn from the market. The insurance committee’s recommendation is with American Alternative. The per occurrence limit is $5 million, general aggregate is $5 million, errors & omissions aggregate is $5 million, and the auto comprehensive and auto collision deductible is $25,000. Terrorism insurance is also included. The total fixed cost is $703,070.
The auto deductible is the most significant change. In the past, the County has been carrying individual deductibles. Almost all of the companies have gotten away from those kinds of deductibles and have gone to a per occurrence deductible of $25,000. If a catastrophic event happened and destroyed multiple vehicles at one time, the deductible would be $25,000. However, if one sheriff’s vehicle gets totaled in a chase, the deductible is still $25,000.
Budget Minutes June 20, 2003 Page Two
Mr. Shupe explained Warren County has been self-funded like this for years. Mr. Shupe explained this would be taking ownership of the insurance program, and it is a catastrophic type plan.
Comm. Peay moved, seconded by Comm. Bullen, to accept the bid from American Alternative for the County’s casualty insurance.
The motion was approved unanimously by roll call vote, Comm. Sandlin absent at the time of voting.
Mr. Shupe stated that the insurance committee recommended that the county renew with Great American for crime coverage and Cincinnati for Boiler coverage. The annual premium for Great American is $8,876, and the annual premium for Cincinnati is $15,704.
Comm. Jordan moved, seconded by Comm. Shafer, to accept the insurance committees’ recommendations for crime coverage with Great American and boiler coverage with Cincinnati.
The motion was approved unanimously by roll call vote, Comm. Sandlin absent at the time of voting.
Mr. Shupe stated the insurance committee recommended the county renew with Brentwood Services as the third party administrator for the County’s Worker’s Compensation. The reinsurer is Safety national and the Reinsurance premium is $73,555. The total fixed cost is $145,305.
Comm. A. Johnson moved, seconded by Comm. Jordan, to accept Brentwood Services as the third party
The motion was approved unanimously by roll call vote, Comm. Sandlin absent at the time of voting.
2003-2004 BUDGET REVIEW
Ms. Lisa Nolen reviewed the changes in the Statement of Estimated Operations and the budget proposal for each of the County’s funds. The projected tax rate is $2.795, which includes an additional 10 cents for the general fund, 2 cents for debt service, 15 cents for schools and 1.5 cents for the Public Works fund. Estimated revenues for all funds total $246,151,505 and recommended appropriations total $249,160,928. It was brought to the committee’s attention that the Register of Deeds reviewed her projection for excess fees and felt that they could be increased. The general fund is now projected to have $467,106 in revenues over appropriations.
GENERAL FUND
The members of the committee reviewed previous action taken in regards to the 2003-2004 budget. Comm. Ealy stated she wanted the committee’s comments on any changes that they may wish to make. Comm. Johnson reviewed the contributions budgeted in the general fund.
Comm. Johnson moved, seconded by Comm. Peay, to eliminate all contributions for tourism with the exception for the motel/hotel tax allocated to the Chamber of Commerce and the Greenway, which would decrease the appropriations by $68,500.
The motion did not pass by roll call vote.
Voting Yes: Comm. Johnson
Voting No: Comm. Bullen, Comm, Jordan, Comm. Peay, Comm. Shafer, and Comm. Ealy
Comm. Sandlin absent
Comm. Johnson moved to eliminate the allocation for the 4th of July ($8,500) and to cut the allocation for 4-H by ½ ($2,750).
Budget Minutes June 20, 2003 Page Three
Motion died for lack of a second.
The commissioners discussed the projected revenues over appropriations in the general fund. It was noted that is was the equivalent of 1.5 cents and the tax increase could be reduced from 10 cents to 8.5 cents.
Comm. Jordan moved, seconded by Comm. Bullen, to cut the proposed tax rate in the General Fund by 1 ½ cents. The tax rate for the general fund would total 61.5 cents.
The motion passed unanimously by roll call vote.
SOLID WASTE & SANITATION
Comm. Johnson had requested additional information on several line items within the Solid Waste & Sanitation budget.
Comm. Shafer moved, seconded by Comm. Jordan, to reduce the amount appropriated in Account No. 116-55732-457 for fencing to $15,000.
The motion passed by roll call vote.
Voting Yes: Comm. Jordan, Comm. Peay, Comm. Sandlin, and Comm. Shafer
Voting No: Comm. Bullen, Comm. Johnson, and Comm. Ealy
BOARD OF EDUCATION
Comm. Shafer wanted to discuss the school’s budget. Comm. Bullen wanted a consensus of the committee members. The committee members discussed reducing the schools tax levy by 1 cent. This action would provide the schools with estimated revenues totaling $151,974,687.
Board Chairman Ed Jordan stated the Board of Education would work with what the county gives them to operate. However, the level of service provided by the schools may be reduced.
Comm. Peay moved, seconded by Comm. Sandlin, to reduce the tax levy to schools by one cent.
The motion passed unanimously by roll call vote.
PUBLIC WORKS
Comm. Ealy passed the chairmanship to Comm. Sandlin.
Comm. Ealy explained to the committee her reasons for not supporting an increase in the tax levy for the public works fund in the fiscal year 2003-2004. Because of the economy, she did not think this was the right time to start a new program. She noted that if a tax levy would be used to provide funding for this department, there would not be significant monies available until December or March. She questioned if delaying one year would give the committee time to investigate a separate public works authority. She also stated it wasn’t fair to begin a new department in a year when employees would not receive raises. She noted that the 2003-2004 budget provides some help to residents if the county is awarded the flood mitigation grant.
Comm. Peay stated that he would rather not increase the tax levy for the public works fund, but currently there was no other source of revenue. He noted that the federal government is mandating the counties to provide this service. He would increase the development tax fee to help fund these programs.
After discussion, Comm. Ealy moved, seconded by Comm. Bullen, to eliminate 1 ½ cents allocated to the Public Works fund.
Budget Minutes June 20, 2003 Page Four
The motion passed by roll call vote, with Comm. Bullen, Comm. Johnson, Comm. Sandlin, Comm. Shafer, and Comm. Ealy voting “yes”, and Comm. Jordan, Comm. Peay voting “no”.
After a short break, Comm. Sandlin moved, seconded by Comm. Shafer, to discuss again the Public Works fund.
The motion passed unanimously by acclamation.
Comm. Sandlin stated that he felt that the rural part of the community is the one most affected by the county delaying the start of a Public Works department, and being a commissioner from a rural district, he felt it important to revisit this issue.
Comm. Sandlin moved, seconded by Comm. Shafer, to reinstate the 1-½ cent tax levy to begin a Public Works department for Rutherford County.
The motion failed by roll call vote with Comm. Jordan, Comm. Peay, and Comm. Sandlin voting “yes”, and Comm. Bullen, Comm. Johnson, Comm. Shafer, and Comm. Ealy voting “no”.
DEVELOPMENT TAX FUND
Ms. Nolen explained that the appropriation in the development tax fund would have to be reduced since there had been $515,000 allocated for equipment for the Public Works fund. The total estimated appropriation for this fund now totals $4,343,475.
DEBT SERVICE FUND
Ms. Nolen advised the committee that she had received a letter faxed from the City of LaVergne requesting $117,132 of their share of the sales tax that previously had been allocated to the debt service fund for school debt. She reminded the committee that they have previously reduced revenue in the debt service fund for the portion requested by the City of Murfreesboro.
TAX LEVY RESOLUTION
Comm. Ealy presented the 2003-2004 Tax Levy Resolution for the use and information of the committee. Because of previous action by the committee, the tax levy for 2003-2004 is as follows:
County General Fund $0.615
Solid Waste/Sanitation Fund 0.03
General Purpose Fund 1.44
Debt Service 0.67 .
$2.755
Comm. Bullen moved, seconded by Comm. Peay to approve the 2003-2004 Tax Levy as presented with a total tax levy of $2.755
The motion passed unanimously by roll call vote.
APPROPRIATION RESOLUTION
Comm. Ealy presented the 2003-2004 Appropriation resolution for the use and information of the committee.
Comm. Jordan moved, seconded by Comm. Shafer, to approve the 2003-2004 Appropriation Resolution, as amended.
The motion passed unanimously by roll call vote.
Budget Minutes June 20, 2003 Page Five
There being no further business to be presented at this time, Chairman Ealy declared the meeting adjourned at 9:05 P.M.
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Elaine Cawthon, Secretary