BUDGET, FINANCE & INVESTMENT COMMITTEE

August 10, 2000              6:15 P.M.                 Courthouse

  MINUTES:

Members Present:                Others Present:        Others Present:

Jimmy Evans, Jr., Chair.      Evans Maples           Jeff Sandvig

Jerry Baxter                        Jim Cope                  Brian Brooks

Joyce Ealy                          Tela Bayless              Paul Long

Joe Frank Jernigan              Mike Nunley             Elaine Cawthon

Paul Johnson                       Truman Jones

Allen McAdoo                    Ben Bennett

Steve Sandlin                       Chuck Thomas

Chairman Evans presided and called the meeting to order at 6:15 P.M. with all members being present.

APPROVE MINUTES:

  The minutes of the June 21 and June 22 meetings were presented for approval.

Comm. Baxter moved, seconded by Comm. P. Johnson to approve the minutes as presented.

The motion passed unanimously by voice vote.

INVESTMENT REPORT:

  Mr. Evans Maples, Trustee, presented the monthly Investment Report for the use
  and information of the committee.

Mr. Maples reported the LGIP interest rate for the month was 6.56%

Mr. Maples explained the various transactions that occurred during the month.

Comm. Jernigan moved, seconded by Comm. Sandlin to approve the Investment Report as presented.

The motion passed unanimously by voice vote.

FUND CONDITION REPORTS:

Finance Director Paul Long presented the Fund Condition Reports for the period ending June 30, 2000 and July 31, 2000.

Mr. Long reported the June collections for the Development Tax were $1,528,125 after the refunds.  The year-to-date collections totalled $4,165,125.

This compares to $2,754,375 collected for the 1998-99 fiscal year.

The fund cash balances at the end of June total $111,672,238, with $69,431,673 being operating funds and $42,240,565 being borrowed funds. 

Mr. Long again reported the cash balance of the Employee Insurance Fund continues to be significantly less.

Mr. Long reported most of the revenue estimates realized were at or near what was projected after the year-end adjustments were made.

The Finance Director explained in the General Fund, approximately $2.4 million was reverted to fund balance with most of that balance being in the area of public safety.  He explained the Solid Waste/Sanitation Fund experienced a similar condition, spending 94% of their budget.  Approximately 84% of the Local Purpose Tax Fund was spent during the year.   

Budget Minutes           August 10, 2000          Page Two

The General Purpose School Fund expended 97.97% of it's budget during the year.  They reverted approximately $2.5 million to fund balance. 

For the month ending July 31, Mr. Long reported $137,625 was collected in Development Tax. 

The cash fund balances total $107,586,081, with $67,986,691 being operating funds and $39,599,390 being borrowed funds.

Mr. Long reported the cash balance in the Employee Insurance Fund has dropped from $2,021,217 at the end of June to $1,001,272 at the end of July. 

The Finance Director reported one of the things that contributes to a reduction in the balance for the Employee Insurance Fund is the fact there are no teacher payrolls in July and August, and therefore, those deductions are not collected during those months.

He also explained there is a possibility a claims audit could be performed on the third party administrator.  A discussion was held on how that process could be started.  The committee agreed that was an option that should be explored.

Following discussion, Comm. Jernigan moved seconded by Comm. P. Johnson to request the County Executive explore the process of having a claims audit performed on the third-party administrator, W. C. Beeler, and present a proposal/report at the next Budget Committee meeting.

The motion passed unanimously by roll call vote.

Mr. Long reported there are no other unusual conditions to report on the July Fund Condition Report.

Mr. Long provided the committee a listing of full-time funded positions for the 2000-2001 Fiscal Year for the General Fund, Solid Waste/Sanitation Fund and Road & Bridge Fund.

Comm. P. Johnson moved, seconded by Comm. Ealy to approve the Fund Condition Reports as presented.

The motion passed unanimously by roll call vote.

REVENUE ANTICIPATION NOTE RESOLUTION FOR EMPLOYEE INSURANCE FUND:

  Finance Director Paul Long requested approval of the committee for a Revenue
  Anticipation Note, not to exceed Two Million Dollars, for the Employee Insurance
  Fund.

Mr. Long explained the cash balance in the Employee Insurance Fund is at the point that there might not be enough available cash to be able to pay the claims once they are presented.

He explained the resolution will allow up to $2,000,000 to be borrowed in installments.  The note is designed so the money can be borrowed internally or from a bank not to exceed six percent interest.  He explained the note needs to be authorized, and as there is a need for additional funding, a note will be executed probably between the Employee Insurance Fund and the General Fund or some other fund probably for $500,000 at a time.

Mr. Long reported all the money borrowed will have to be repaid by June 30, 2001. 

Comm. P. Johnson moved, seconded by Comm. Baxter to approve and forward to the full commission the Revenue Anticipation Note Resolution not to exceed Two Million Dollars for the Employee Insurance Fund.  

Budget Minutes           August 10, 2000          Page Three

The motion passed unanimously by roll call vote.

REPORT ON SETTLEMENT OF CONDEMNATIONS:

  County Attorney Jim Cope was present to make a report relative to the
  settlement of four condemnation cases.

Mr. Cope reported this goes back a few years when the Old Nashville Highway was widened for Stewartsboro Elementary School.  He explained the road project affected about seven or eight houses, and as a result of the engineering design, it required taking a significant portion of frontage of the houses. 

He reported condemnation actions were filed several years ago.  He stated three cases are set for trial in late November and early December.  The other case is set for trial for August 23 & 24. 

Mr. Cope reported approximately $2,000 was deposited in court on each case.  Each property owner has agreed for an additional payment of $5,000, they will settle the case.  He explained on the case that is to go to trial in two weeks, he has been informed by the attorney the property owner has also agreed to settle for $5,000.  He stated the property owner has also requested to be reimbursed approximately $172 for depositions and has requested some property stakes be installed. 

Mr. Cope recommended to the committee that the settlements be approved, as it would be far cheaper than going to court.  He stated he believed they were reasonable, good settlements. 

Finance Director Paul Long reported there is still $30,867.84 available in the Stewartsboro Road project, which will be enough to pay these four settlements.  Mr. Long reported the Town of Smyrna traditionally pays the settlements, and the county reimburses them. 

Following discussion, Comm. Jernigan moved, seconded by Comm. Sandlin to approve the four condemnation settlements of $5,000 to each property owner.

The motion passed unanimously by roll call vote.

GENERAL FUND BUDGET AMENDMENTS

COMMUNITY LEARNING:

  Finance Director Paul Long requested approval of the committee for the
  following budget amendment to correct salary calculations for the fiscal year for
  the director and a teacher at the Community Learning Center:

     From:  101-39000 - Undesignated Fund Balance - $2,219

                 101-58600-205 - Employee Insurance -     1,270

     To:  101-51900-105 - Supervisor -              $  865

            101-51900-116 - Teachers   -               1,034

            101-51900-201 - Social Security -            120

            101-51900-204 - State Retirement -           170

            101-51900-205 - Employee Insurance -       1,270

            101-51900-212 - Employer Medicare -           30

Comm. Baxter moved, seconded by Comm. McAdoo to approve the budget amendment as requested.

The motion passed unanimously by roll call vote.

  Budget Minutes           August 10, 2000          Page Four

PARKS & FAIR BOARDS

  Finance Director Paul Long reported the Recreation Department has received a
  $200 donation from AmSouth Bank, and are requesting to appropriate it into
  Other Supplies & Materials as follows:

Increase Revenue:  101-44570 - Contributions & Gifts - $200

Increase Expend.:  101-56700-499  Other Supplies & Materials - $200

Comm. Ealy moved, seconded by Comm. Jernigan to approve the budget amendment as requested.

The motion passed unanimously by roll call vote.

HEALTH DEPARTMENT:

Mrs. Tela Bayless, Health Department Director, requested approval from the committee for the following budget amendment to adjust the salary and benefits for the dentist, who was hired at a higher salary than the budgeted amount.  Mrs. Bayless informed the committee this account is fully funded by the State:

     Increase Revenue:  101-46310 - Health Dept. Programs - $6,730

     Increase Expend.:  101-55190-131 - Medical Personnel - $5,774

                                      101-55190-201 - Social Security -      360

                                      101-55190-204 - State Retirement -     511

                                      101-55190-212 - Employer Medicare -     85

Comm. McAdoo moved, seconded by Comm. Baxter to approve the budget amendment as requested.

The motion passed unanimously by roll call vote.

Mrs. Bayless requested approval of the committee for the following budget transfer to provide salary and benefits for the janitor.  Mrs. Bayless explained the current janitor, who was being paid the entry level salary, has terminated; and she wants to hire a previous employee.  This amendment would allow her to hire the previous employee at the salary he would have maintained if he had remained with the Health Department.

Mrs. Bayless explained this amendment has not been approved by the Health & Education Committee, but she has reported the situation to Comm. Johns.  She stated she could not wait another month to hire a custodian.

     From:  101-55110-499 - Other Supplies & Materials - $ 500

                 101-55110-205 - Employee Insurance         -  1,580

                 101-55110-399 - Other Contracted Services -     400

        To:  101-55110-189 - Other Salaries & Wages - $2,127

               101-55110-201 - Social Security        -    132

               101-55110-204 - State Retirement -          190

               101-55110-212 - Employer Medicare -          31

Following discussion, Comm. Baxter moved, seconded by Comm. Jernigan to approve the budget amendment as requested and forward same to the full commission on August 17.

The motion passed unanimously by roll call vote.

AMBULANCE SERVICE:

Mr. Mike Nunley, Ambulance Service Director, was present to request approval of the following budget amendment to appropriate a $300 donation from Pack's Towing and Recovery for the dive team:  

Budget Minutes           August 10, 2000          Page Five

     Increase Revenue:  101-44570 - Contributions & Gifts - $300

     Increase Expend.:   101-55130-599 - Other Charges - $300

Comm. P. Johnson, seconded by Comm. Baxter to approve the budget amendment as requested.

The motion passed by roll call vote with Comm. McAdoo being absent at that time.

LOCAL PURPOSE TAX FUND BUDGET AMENDMENTS

AMBULANCE SERVICE:

Mr. Nunley also requested approval of the following budget amendment which appropriates a $400 refund from the City of Murfreesboro to the ambulance station construction fund.  Mr. Nunley explained this refund was for a deposit for a plat which was filed for through the City of Murfreesboro for the M.T.S.U. station:

Increase Revenue:  120-44170 - Miscellaneous Refunds - $400

Increase Expend.:  120-91110-706 - Building Construction -$400

Comm. Baxter moved, seconded by Comm. Sandlin to approve the budget amendment as requested.

The motion passed by roll call vote with Comm. McAdoo being absent at that time.

Mr. Nunley next advised the committee the balance of the appropriation to build the Blackman Station lapsed at June 30.  He requested approval of the following budget amendment to appropriate the estimated amount to complete the Blackman Station:

     From:  120-39000 - Undesignated Fund Balance - $90,000

          To:  120-91110-706 - Building Construction - $90,000

Mr. Long reported in the Local Purpose Tax Fund, if there is a project that the county is unable to enter into a contract for that project, the appropriation reverts to fund balance, and the money has to be re-authorized.

Following discussion, Comm. Sandlin moved, seconded by Comm. Jernigan to approve the budget amendment as requested.

The motion passed by roll call vote with Comm. McAdoo being absent at that time.

DRUG CONTROL FUND:

Lt. Ben Bennett addressed the committee requesting approval of the following budget amendment which reflects anticipated revenues from forfeitures.  Lt. Bennett requested the amount of Proceeds from Confiscated Property be appropriated into In-Service Training and Law Enforcement Supplies for all S.E.B. staff.  Mr. Bennett explained the funds in these accounts covers the entire division, which is a total of 10 people.  Mr. Bennett also reported a portion of the amendment will also be used to purchase a minimum of eight in-car video systems.  He explained the video systems will not be used in the narcotics field.  He stated one of the systems will go to the Directed Patrol unit, and the other seven will be used by the Patrol Division:

Budget Minutes           August 10, 2000          Page Six

     Increase Revenue: 122-42910 - Proceeds from Confiscated Property - $121,575

     Increase Expend.:  122-54150-196 - In-Service Training - $22,000

                                      122-54150-431 - Law Enforcement Supplies - 2,000

                                      122-54150-716 - Law Enforcement Equip. - 33,000

   Increase Fund Balance - 122-39000 -              $64,575

Following discussion, Comm. Sandlin moved, seconded by Comm. Ealy to approve the budget amendment as requested.

The motion passed by roll call vote with Comm. McAdoo being absent at that time.

GENERAL FUND BUDGET AMENDMENTS

SHERIFF'S DEPARTMENT:

Capt. Chuck Thomas, Sheriff's Department, requested approval of the following budget amendments to appropriate donations received at the end of June to the mounted patrol, and he also requested to appropriate funds received from the auction of seized vehicles to the Detective Division:

     From:  101-39000 - Undesignated Fund Balance - $7,385

          To:  101-54110-399 - Other Contracted Services - $5,175

                  101-54110-505 - Judgements                -  2,210

Comm. Sandlin moved, seconded by Comm. Jernigan to approve the budget amendments as requested.

The motion passed by roll call vote with Comm. McAdoo being absent at that time.

OTHER BUSINESS:

  Finance Director Paul Long explained the Finance Department has a small
   safe.  He reported the locking mechanism has broken, and it is going to be
   necessary to replace it.  He requested the following budget amendment, which
   will allow for the replacement:

     From:  101-52100-709 - Data Processing Equipment - $1,000

         To:   101-52100-711 - Furniture & Fixtures - $1,000

Comm. Jernigan moved, seconded by Comm. Baxter to approve the budget amendment as requested.

 The motion passed by roll call vote with Comm. McAdoo being absent at that time.

    ADJOURNMENT:

There being no further business to be presented at this time, Chairman Evans declared the meeting adjourned at 7:00 P.M.

Elaine Cawthon, Secretary