BUDGET, FINANCE & INVESTMENT COMMITTEE

 

October 4, 2001                                        6:15 P.M.                                        Courthouse

 

MINUTES:

 

Members Present:                              Others Present:            Others Present:            Others Present:

Comm. Joyce Ealy                              Nancy Allen                   Eddie Farmer              Regina Nelson

Comm. Paul Johnson                         Bob Shupe                    Bill Kennedy                 Phillip Martin

Comm. Tina Jones                             Susan Boney                Mark Meshotto             Tela Bayless

Comm. Robert Peay                          Ginny King                     Howard Bowman         Pat Woods

Comm. Steve Sandlin                        John Davis                    Bob Asbury                  Del Corbitt

Comm. Dwight Throneberry              Truman Jones               Ralph Lehew               Chuck Clark

Comm. Jimmy Evans, Chair.            Ben Bennett                  Bill West                      Joe McKenzie

 

 

Dan Mitchell, Jim Estes, Jeff Sandvig, Butch Vaughn, Pete Ezell, Ralph M. Kennedy, Jon Dinkins, Bryan Brooks, Paul Long, Elaine Cawthon.

 

APPROVE MINUTES:

 

The minutes of the September 6, 2001 meeting were presented for approval.  Chairman Evans noted a correction needed to be made to Page Two, General Fund Budget Amendments.  The second budget amendment for the Sheriff’s Department should be Account 101-54210-452, Utilities for $151 instead of Account 101-54110-452.

 

Comm. Jones moved seconded by Comm. Throneberry to approve the minutes of September 6, 2001 as corrected.

 

The motion passed unanimously by acclamation.

 

INVESTMENT REPORT:

 

Finance Director Paul Long presented the monthly Investment Report for the information and use of the committee.  Mr. Long advised no investment transactions occurred during September.  The LGIP interest rate for the month was 2.89%.

 

Comm. P. Johnson moved, seconded by Comm. Ealy to approve the Investment Report as presented.

 

The motion passed unanimously by acclamation.

 

FUND CONDITION REPORT:

 

The Finance Director presented the Fund Condition Report for the month ending September, 2001 for the use and information of the committee.

 

Mr. Long advised the Development Tax collections for September were $199,500.  The total collected year-to-date is $681,750 compared to $523,125 for the same period last year.

 

Mr. Long reviewed the fund cash balances with the committee.  The total cash balances are $78,485,069 with $58,683,938 being operating funds and $19,801,122 being borrowed funds.  He advised most of the participating entities have paid their portion of the deficit into the Employee Insurance Fund.  The cash balance of the Employee Insurance Fund is $1,885,982.53; however, the $1.5 million Revenue Anticipation Note will have to be paid back before June 30, 2002.

 

Mr. Long advised there were no unusual conditions to report at this time.

 

Comm. P. Johnson moved, seconded by Comm. Throneberry to approve the Fund Condition Report as presented.

 

The motion passed unanimously by roll call vote.

 

Budget Minutes                                                October 4, 2001                                              Page Two

 

 

DISCUSSION OF STATE REVENUE COLLECTIONS:

 

Chairman Evans advised, in light of some discussions lately, this item was added to the agenda.  He said with the tragedies of late, and the effect on the sales tax, there could be a serious shortfall potential in the forecast of revenue in both the General Purpose School Fund and in the General Fund.  He advised he has discussed with the County Executive and the Finance Director some cost saving measures that can be taken short-term to give the County an opportunity to have a better vision of what might happen in the future.  He stated it might be necessary to withhold some capital expenditure requests unless they are an absolute emergency.  He stated the uncertainty is there, and he believed it was the duty of the Budget Committee, the County Executive, and the Finance Director to recommend to the County Commission and to the Departments that there are going to be some things that will not be approved.

 

The Finance Director reported based on information received from various state agencies, the State is being mandated to reduce their budget by five percent in some departments and by twenty-five percent in other departments.  He advised they are looking at funds they pay to local governments as one way of doing that.  The information received indicates the State intends to withhold 25% of the local governments’ allocation until the last quarter of the fiscal year.  At that point, they will re-evaluate to determine whether they have enough revenue to pay the entire amount.  He stated they have heard this on the Law Enforcement Training Supplement, State Reappraisal Grant, Juvenile Court Supplement, and the Waste Tire Option Grant. 

 

Mr. Long reported he has been told that all of the State Aid for highways and bridges at the Highway Department have been frozen.  He advised this amounted to about $330,000. 

 

Mr. Long advised they also have to bear in mind, that with the Health Insurance problem, rates are going to have to be increased substantially.  The impact of that decision in the General Fund will be approximately $250,000 of additional appropriations that will have to be approved prior to January 1, 2002 to cover the additional match on behalf of the employer. 

 

Mr. Long advised the General Assembly is voluntarily looking at about a $9 million reduction in their budget.  The City of Murfreesboro is also mandating a five-percent reduction to various departments within city government.  He stated he and the County Executive believed the committee should be made aware of it.

 

Mr. Long advised he had met with the School Board earlier in the week and discussed the situation with them.  He stated they had already discussed it at one of their board meetings and discussed possible ways of either freezing appropriations or postponing expenditures until later in the year.

 

Mr. Long advised the one revenue that is quite concerning in terms of growth is Local Option Sales Tax.  He stated a 6% growth was projected for schools, and as of two months into the fiscal year .01% growth has been received. 

 

County Executive Allen advised there is $33 million in state grants on the table.  She advised one letter from the State mentioned relocating the Environmental Office totally.  The County Executive advised Rutherford County provided the office space and utilities for that department, as well as one staff member.  She advised a Department Head meeting had been scheduled for October 12.  She stated she would be asking Department Heads to address a five- percent reduction in their budget.  She advised some departments only had a one or two percent increase in their budget over the previous year, and a five-percent reduction will be difficult.  She also advised the Workhouse budget was based on an average inmate population of 168, and they are now at 225.  She stated some of the obvious things that might be reduced would be travel.

 

Chairman Evans stated he would like for the committee to take some action.  In terms of capital expenditure items, Department Heads might be asked to wait unless it is absolutely broken and not able to be used even if the money is available within their budget. 

 

The Finance Director advised in the General Fund, the total state revenue that has been identified as either current targets or potential targets next year, amounts to about $250,000.  In addition to that, there is about $340,000 of projected local revenue growth that will be questionable given the state of the
 

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 economy.  In the General Fund, there is almost $900,000 in revenue that is questionable or about 2.5% of the General Fund budget.  He advised, in addition, there would be approximately $250,000 needed to fund the insurance program.  This brings the total to about 3.5% in the General Fund that is at risk.  He advised there are a lot of areas in the General Fund where a savings cannot be accomplished, such as the $1.6 million to the Town of Smyrna for the Nissan payment in lieu of taxes, as well as all of the contributions to the nonprofit organizations.

 

Comm. Sandlin stated he was in support of what the County Executive is trying to do, and he stated he believed the County Commission needed to put the mindset into our government and the departments.  He stated he believed the commission needed to take some precautions. 

 

Comm. Sandlin moved, seconded by Comm. Ealy to ask Department Heads to work with the County Executive to reduce their spending by five percent and to submit a spending plan to the County Executive by October 18.

 

The Finance Director advised the spending plans will not be adopted as amendments to the budgets, but the Department Heads can used them as a tool to monitor their budgets.

 

Following discussion, the motion to request Department Heads to work with the County Executive to reduce their spending by five percent and to submit a plan to the County Executive by October 18 passed unanimously by roll call vote.

 

RECOMMENDATION TO ADOPT COST SAVING CHANGES FOR EMPLOYEE HEALTH INSURANCE:

 

Comm. P. Johnson advised IPA did not present any appreciable information that would have a long- range effect on the original recommendation. 

 

Finance Director Paul Long advised there is one thing he would like the committee to revisit relative to the change in premium rates.  He stated several employees questioned the decrease of the employee’s contribution on family coverage and the two-employee coverage.  He stated it has been suggested to leave these amounts the same.  On family coverage this would make the employee’s contribution $124.50 and the employer’s contribution $423.33.  On the two-employee coverage, the employee’s contribution would be $62.25 and the employer’s contribution would be $485.58.

 

Comm. P. Johnson moved seconded by Comm. Throneberry to approve the original five recommended changes to the Rutherford County Health Insurance Program to control costs (change network to PHCS effective November 1, 2001, pay out-patient surgery the same as any other charge, increase deductibles by $50/individual and $100/family, eliminate supplemental accident expense benefit, and impose a $25 charge for emergency room treatment that is not truly an emergency); and additionally, to amend health insurance rates effective January 1, 2002 as follows:

 

            INDIVIDUAL

                        Employee:                    $  29.51

                        Employer:                      265.64

            Total                                        $295.15

 

            FAMILY

                        Employee:                    $124.50

                        Employer:                     423.33

            Total                                        $547.83

 

            2 EMPLOYEE

                        Employee:                    $  62.25

                        Employer:                     485.58

            Total                                        $547.83

 

The motion passed unanimously by roll call vote.

 

Budget Minutes                                                October 4, 2001                                              Page Four

 

 

PROPERTY & CASUALTY INSURANCE RENEWAL:

 

County Executive Allen advised the Insurance Committee recommended to allow Bob Shupe, Employee Security Planning, to renegotiate the Property & Casualty Insurance.  She advised it was recently bid, which is done every three years.

 

Comm. P. Johnson moved seconded by Comm. Jones to allow Bob Shupe to renegotiate an acceptable renewal rate for Property & Casualty Insurance with the current carrier, which is up for renewal July 1, 2002.

 

The motion passed unanimously by roll call vote.

 

GENERAL FUND BUDGET AMENDMENTS

 

AMBULANCE SERVICE:

 

Ms. Ginny King, Ambulance Service, requested approval of the following budget amendments to appropriate a donation from the Uncle Dave Macon Days for the Dive Team and to appropriate insurance proceeds for damages to an ambulance for the Maintenance & Repair of Vehicle Account:

 

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

            Increase Expend.:      101-55130-599 – Other Charges -                         $200

 

            Increase Revenue:      101-44520 – Insurance Recovery -                    $3,482

            Increase Expend.:       101-55130-338 – Maint./Repair Vehicles -      $3,482

 

Comm. Sandlin moved seconded by Comm. Jones to approve the budget amendments for the $200 contribution and the $3,482 for insurance proceeds as requested.

 

The motion passed unanimously by roll call vote.

 

CIRCUIT COURT JUDGES:

 

Chairman Evans presented the following budget amendment for the approval of the committee to appropriate a contribution from the Tennessee Bar Association for a Jury Improvement Pilot Project:

 

            Increase Revenue:            101-44570 – Contributions & Gifts -                       $250

            Increase Expend.:            101-53110-499 – Other Supplies/Materials -         $250

 

The Finance Director advised it is his understanding additional contributions will be received over the course of time to be used for similar purposes.

 

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

 

The motion passed unanimously by roll call vote.

 

PLANNING & ENGINEERING DEPARTMENT:

 

Mr. John Davis, Planning Director, requested approval of the following budget amendment to allow for the purchase of a copy machine and to buy out the lease on the current copy machine:

 

            From:            101-39000 – Undesignated Fund Balance -             $6,754

            To:                 101-51720-719 – Office Equipment -                        $6,754

 

Mr. Davis advised he currently had $12,500 in his budget for a copy machine, however he will need an additional $4,880 to purchase a copy machine which will meet the growing needs of the Planning and Engineering Department.  He stated an additional $1,874 will be needed to purchase the machine he currently leases.  This machine will be used for light duty and as an emergency backup.

Budget Minutes                                                October 4, 2001                                              Page Five

 

 

Mr. Davis advised the old copy machine will make a copy, but it is necessary to have it serviced often to keep it going.  He also stated the lease is about to expire.  He stated he would also have to renegotiate the maintenance agreement. 

 

Chairman Evans asked if Mr. Davis had asked the vendor to include the old copy machine as a condition of the purchase of the new machine. 

 

Mr. Davis stated it is a different vendor.  He advised the new machine is a digital copier.

 

The Finance Director advised he had an old copy machine he would give Mr. Davis.

 

Mr. Davis stated he did not have money in his budget to continue the lease or the maintenance.

 

Following discussion, Comm. Peay moved seconded by Comm. Jones to fund the new copy machine only and to revise the budget amendment request as follows:

 

            From:            101-39000 – Undesignated Fund Balance -             $4,880

            To:                101-51720-719 – Office Equipment -                         $4,880

 

The motion passed unanimously by roll call vote.

 

DRUG CONTROL FUND BUDGET AMENDMENT:

 

Lt. Ben Bennett, Sheriff’s Department, requested approval of the following budget amendment to allow for the purchase of a ¾ ton truck for the Mounted Patrol:

 

            From:            122-39000 – Undesignated Fund Balance -             $15,000

                                  122-54150-319 – Confidential Drug Enforcement -    15,000

 

            To:                122-54150-718 – Motor Vehicles -                               $30,000

 

Lt. Bennett advised the truck has used nine quarts of oil in the past 11 days.  He stated the truck will no longer haul the trailers, and they have resorted to using their personal vehicles. 

 

Lt. Bennett advised the Drug Fund revenue is right on track.

 

Comm. Sandlin moved seconded by Comm. Peay to approve the budget amendment for $30,000 as requested to purchase a ¾ ton truck.

 

Comm. Sandlin advised this was discussed at the Public Safety Committee at length, and the Sheriff’s Department believes they can acquire the truck for less than $30,000.

 

Lt. Bennett advised he has sought out donations, but the dealerships are not in a position to help them.  He stated if the amendment is approved, it will solve the problem for the next six to eight years.  He reported they plan to bid a used vehicle. 

 

The Finance Director advised Drug Control Fund money is typically used for drug enforcement, but it can be used for other law enforcement expenditures that are of a non-recurring nature. 

 

Comm. Sandlin advised the truck is for the Mounted Patrol.  He stated the horse patrol is not just for parades or for horse shows.  He stated they are used for very necessary patrols.  He stated you can take a horse through the woods, and it does speed up the process.

 

Chairman Evans stated many times commissioners are presented with things that are not going to cost anything to taxpayers, and they always eventually turn into this situation.

 

Following discussion the motion to approve the budget amendment for $30,000 in the Drug Control Fund to purchase a ¾ ton truck for the Mounted Patrol failed by roll call vote with Commissioners Ealy,

 

Budget Minutes                                                October 4, 2001                                              Page Six

 

 

Peay, and Sandlin voting “yes”, and Commissioners P. Johnson, Jones, Throneberry, and Evans voting “no”.

 

RECOMMENDATION TO APPROVE AND ACCEPT COPS IN SCHOOLS GRANT:

 

Sgt. Phillip Martin addressed the committee relative to a grant for five School Resource Officers.  He advised there was a phrase in the original application that stated the funds must be assumed over a three-year period in a match situation.  Sgt. Martin reported he and the Finance Director have checked with the Federal Government and the three years for the five S.R.O.’s would be paid by the federal government at 100%.  He advised there would be no local match involved.  The total amount of the grant is $618,600. 

 

He advised he and the Finance Director disagree on what the entry-level salary should be.  The Finance Director’s calculations were based on an entry-level salary of a pay grade 19, step 1, which is $26,820.  Sgt. Martin’s calculations are based on an entry-level salary for an S.R.O. of a pay grade 21, step 3, which is $30,790.

 

The Finance Director advised the grant allowed the money to be used to back fill positions and promote veteran officers. 

 

Sgt. Martin stated after talking with the federal government, he was informed the pay plan would be the responsibility of the county.  He stated his calculations are based on a pay grade 21, step 3 for the first year and it progresses to a step five and then a step seven.  He stated he now believes the step differences will have to come out.

 

Sgt. Martin advised he has received a letter of notification of the award, but has not received the packet.  He stated the Sheriff’s Department could actually hire based upon the letter.

 

Sgt. Martin also advised that as a part of the grant the officers must attend a COPS In School Training session.  The maximum reimbursement that can be requested is $1,100 per officer or $5,500 for the five S.R.O.’s.  This is not part of the $618,600, but the federal government would reimburse for that expense.  Sgt. Martin also advised uniforms would be needed for the officers at a cost of $19,258.

 

Captain Kennedy advised the S.R.O.’s will be going to Blackman High School, Smyrna High School, Siegel Middle, K-5 Officer, and a substitute officer.

 

The Finance Director stated something needed to be appropriated so the Sheriff’s Department could begin hiring.  He advised a clarification of the amounts could be obtained before the County Commission meets on October 11.

 

The Finance Director advised the grant also required that a school representative must be involved in attending the COPS in School Training.  Sgt. Martin stated Mr. Watson has not determined who the individual will be.  Sgt. Martin advised the county could also be reimbursed the $1,100 for the school representative to attend the training.

 

The Finance Director suggested the amount for training be changed from $5,500 to $6,600 to allow for the county to pay for the training for the school representative, as well as the S.R.O.’s and to be reimbursed by the federal government.

 

Following discussion, Comm. Jones moved seconded by Comm. Throneberry to authorize the County Executive to accept the award of the COPS in School Grant in the amount of $618,600 and to forward the same to the County Commission.

 

The motion passed unanimously by roll call vote.

 

The following budget amendment was presented for approval by the committee to fund the five S.R.O.’s for the COPS In Schools Grant for the first year.  The Finance Director explained this amendment allows for the officers to be paid at a pay grade 19, step 1, which will need to be clarified before the County Commission meeting on October 11.  The Finance Director also noted the grant allows for two

Budget Minutes                                                October 4, 2001                                              Page Seven

  

things.  Either the grant positions can be funded in the grant budget, or back fill positions can be funded, which means employees in the General Funded can be promoted and their replacement positions can be funded through the grant.  Mr. Long explained depending on what the Sheriff’s Department does these amounts might change.  He stated if the Sheriff’s Department hires the officers at a level higher than the federal government will reimburse, it might require a local match

 

            Increase Revenue:            121-47710 – Public Safety Partnership &

                                                                        Community Policing – COPS -            $124,670

 

            Increase Expend.:     121-54120-106 – Deputies -                                            $  95,420

                                                121-54120-201 – Social Security -                                         5,920

                                                121-54120-204 – State Retirement -                                      8,440

                                                121-54120-212 – Employer Medicare -                                 1,390

                                                121-54120-205 – Employee  Insurance -                             13,500

 

Approval of the following budget amendment was requested to purchase uniforms for the five S.R.O.’s and for training:

 

            From:            101-39000 – Undesignated Fund Balance -                         $19,258

            To:                101-54110-451 – Uniforms -                                                    $19,258

 

            Increase Revenue:            101-47990 – Other Direct Federal Revenue:            $6,600

            Increase Expend.:             101-54110-196 – In-Service Training -                      $6,600

 

Following discussion, Comm. P. Johnson moved, seconded by Comm. Throneberry to approve the budget amendments for the five S.R.O.’s salaries and benefits subject to revision at the County Commission meeting on October 11, and additionally to approve the budget amendment for uniforms in the amount of $19,258 and training in the amount of $6,600.

 

The motion passed unanimously by roll call vote.

 

The following budget amendment was presented for approval to fund $135,000 for five patrol vehicles from the Development Tax as a transfer to the General Fund:

 

            From:        120-39000 – Undesignated Fund Balance -             $135,000

            To:            120-99100-590 – Transfers to Other Funds -            $135,000

 

            Increase Revenue:           101-49800 – Operating Transfers -            $135,000

            Increase Expend.:            101-54110-718 – Motor Vehicles -            $135,000

 

Comm. Sandlin stated the new vehicles would go to the Patrol Division, with the five older vehicles going to the new S.R.O. officers. 

 

Comm. Sandlin moved seconded by Comm. Ealy to approve the budget amendment transferring $135,000 from the Development Tax to the General Fund for five patrol vehicles.

 

The motion passed by roll call vote with Comm. P. Johnson voting “no”.

 

CONTRACT AGREEMENT WITH TENNESSEE DEPARTMENT OF HEALTH:

 

Mrs. Tela Bayless, Health Department Director, requested approval of a Contract Agreement with the Tennessee Department of Health to furnish her services for Rutherford County.  Mrs. Bayless explained the county has already approved an agreement with the Tennessee Department of Health, which allows the State to use a portion of Rutherford County’s appropriation to pay a salary supplement to her and Dr. Warner.  This agreement will allow the State to utilize more of that appropriation to increase her salary supplement.  She advised the supplement is based on the State’s positions and classifications.  She advised this is no new money.

 

 

Budget Minutes                                                October 4, 2001                                              Page Eight

 

 

Comm. Throneberry moved, seconded by Comm. Ealy to approve the Memorandum Agreement with the Tennessee Department of Health as requested.

 

The motion passed unanimously by roll call vote.

 

SOLID WASTE/SANITATION:

 

Mr. Del Corbitt, County Engineer, requested approval of the following budget amendment for paving the road at the Landfill.  Mr. Corbitt explained the current budget contained $60,000 to buy scales for the Landfill as part of the five-year solid waste plan.  He reported the bids for the scales came in at about $40,000.  Mr. Corbitt advised the road to the Landfill needed to be paved.  He explained the Highway Department is going to pave their portion.  The remainder needs to be paved to where the scales are going to be located.  He reported Mike Williams, Road Superintendent, has agreed to pave it, and all the Landfill will have to pay for is the supplies and materials.  The estimated cost of the road is $40,000.  There will be $20,000 available after the scales are purchased.  He requested the remaining $20,000 be funded from the Development Tax as follows:

 

            From:        120-39000 – Undesignated Fund Balance -             $20,000

            To:            120-99100-590 – Transfers to Other Funds -            $20,000

 

            Increase Revenue:            116-49800 – Operating Transfers -            $20,000

           

            From:        116-55754-733 – Solid Waste Equipment -                  $20,000

            To:            116-55754-799 – Other Capital Outlay -                        $40,000

 

A discussion was held regarding a way to re-coup the money.  Mr. Corbitt advised there would be some increase in tipping fees as a result of acquiring the scales.

 

Comm. Sandlin moved seconded by Comm. Ealy to approve the budget amendments as requested to provide funding to pave the road at the Landfill.

 

The motion passed unanimously by roll call vote.

 

PRELIMINARY FUNDING FOR AGRICULTURE EXTENSION CENTER:

 

Mr. Jim Estes, Chairman Conservation Board, addressed the committee requesting preliminary funding in the amount of $35,000 to perform core drilling and site plan for the new Agriculture Extension Center.  Mr. Estes advised the total plan for the Ag Center had to be complete before they can get the zoning change for the City of Murfreesboro.  He explained this also has to be completed before they can build anything.  He stated even if they just wanted to build a new farmer’s market, the total package had to be approved by the City.

 

A discussion was held regarding using a portion of Mr. Lane’s donation to reimburse the fund that provides the $35,000.  It was stated if the $35,000 was provided by the Development Tax, Mr. Lane’s donation could reimburse the Development Tax.

 

Mr. McKenzie stated he thought Mr. Lane would be agreeable to allowing a portion of his donation to reimburse for this service.

 

Following discussion, Comm. Jones moved, seconded by Comm. Throneberry, to appropriate $35,000 from the General Fund for the preliminary site work for the new Agriculture Extension Center; and at the time the previous property owner’s donation is received, that a portion of the donation be used to reimburse the General Fund.  Additionally, that a Tri-Party Agreement be prepared between the Public Building Authority, Conservation Board, and Rutherford County outlining the scope of the work to be done and authorizing the County Executive to execute the Tri-Party Agreement on behalf of Rutherford County.

 

The motion passed unanimously by roll call vote.

 

Budget Minutes                                                October 4, 2001                                              Page Nine

 

 

CONTRACT AGREEMENT RELATIVE TO WASTE TIRE GRANT:

 

County Executive Nancy Allen reported the Grant Agreement between Rutherford County and the State of Tennessee Department of Environment and Conservation had been previously approved.  She advised this contract reflects the 25% reduction in the contract in terms of the State paying the first three quarters and holding the fourth quarter until the State sees what the revenues will be.  The County Executive stated the contract does need to be approved although based on last year, it does not cover the cost of operating the program.  The maximum liability of the State under the grant is not to exceed $91,500.

 

The County Executive advised she has requested Darrell Scarlett to research the question of whether or not Tennessee Code allows the county to charge a fee for the difference of what is collected from the State and the actual cost of operating the program.

 

Following discussion, Comm. Sandlin moved seconded by Comm. Peay to approve the Grant Agreement between the State of Tennessee Department of Environment and Conservation and Rutherford County for Option 3 of the Waste Tire Grant.

 

The motion passed unanimously by roll call vote.

 

APPROVE FUNDING FOR INVOICE RELATIVE FROM TENNESSEE DEPARTMENT OF TRANSPORTATION RELATIVE TO THOMPSON LANE EXTENSION:

 

The County Executive advised an invoice had been received from the Tennessee Department of Transportation in the amount of $42,319.63 relative to State Project Number 75951-2625-04, “Local Interstate Connector, Thompson Lane Extension, from SR-96 to SR-1”.  She reported the City of Murfreesboro, Rutherford County, and the State participated in this project beginning in 1993.  She explained the invoice involves the on-going right-of-way acquisitions.

 

Comm. Jones moved seconded by Comm. Peay to appropriate $42,320 from the Development Tax to pay the invoice to the Tennessee Department of Transportation for right-of-way acquisitions relative to State Project Number 75951-2625-04, “Local Interstate Connector, Thompson Lane Extension, from SR-96 to SR-1”.

 

The motion passed unanimously by roll call vote.

 

CONTRACT BETWEEN RUTHERFORD COUNTY AND TOWN OF SMYRNA FOR MAINTENANCE OF TRAFFIC SIGNALS:

 

County Executive Allen advised when the County entered into the agreement on improvements to Almaville Road, as well as the new interchange at the Dover Downs Racetrack a/k/a Nashville Speedway with the Tennessee Department of Transportation, part of the agreement is for the county to be responsible for maintenance of traffic signals.  Since the county does not have anyone to perform that service, she requested the County Attorney work with the Town of Smyrna’s attorney to develop an agreement with Smyrna.  The Town of Smyrna will perform the maintenance and invoice the county for the expenses.

 

The County Executive advised she had requested the County Attorney to draft the agreement to state if the Town of Smyrna ever annexed the said property, they would be totally responsible for maintaining the traffic signals.

 

Comm. Sandlin moved seconded by Comm. Ealy to approve the contract between Rutherford County and the Town of Smyrna for the maintenance of traffic signals at State Route 840 at the Dover Downs Racetrack, Popularwood Road with Seminary Road and State Route 102 (Almaville Road) with Popularwood Road as revised.

 

The motion passed unanimously by roll call vote.

 

  

Budget Minutes                                                October 4, 2001                                              Page Ten

 

 

GENERAL PURPOSE SCHOOL FUND BUDGET AMENDMENTS:

 

Mr. Jeff Sandvig requested approval of the following budget amendment to appropriate the additional matching funds for a Central Middle teacher workroom, Riverdale High baseball field house, and Smyrna High baseball field house:

 

            Increase Revenue:            141-44990 – Other Local Revenue -                   $26,012

            Increase Expend.:             141-76100-799 – Other Capital Outlay -            $26,012

 

Comm. Throneberry moved seconded by Comm. Ealy to approve the budget amendment for $26,012 as requested.

 

The motion passed unanimously by roll call vote.

 

Mr. Sandvig requested approval of the following budget amendment to establish the $49,525 Technology Literacy Grant that Cedar Grove School received for the 2001/02 school year.  The grant was for computers in schools with exemplary value-added scores:

 

            Increase Revenue:            141-47590 – Other Federal through State -              $49,525

            Increase Expend.:            141-71100-722 – Instruction Equipment -                  $49,525

 

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

 

The motion passed unanimously by roll call vote.

 

SCHOOL BUILDING PROGRAM BUDGET AMENDMENTS:

 

Mr. Sandvig requested approval of School Building Program budget amendments to transfer $100,000 within the Siegel High School project from construction to other contracted services to provide funding for earthwork, foundation soils, structural steel, paving/curbs, grout, and concrete slab testing on the Siegel High School site.  He advised when the Siegel High School project was adopted all of the money was placed in the construction line item, except for Architect’s Fees.

 

Mr. Sandvig also requested approval to transfer $15,000 from the Siegel High School construction funds to other contracted services to provide funding for Consolidated Roofing to inspect the Siegel High School roof at one percent of the roofing construction cost, which was the lowest percentage obtained.

 

A discussion was held as to why the School Board should pay for a roof and then also pay someone to inspect the roof.  Mr. Sandvig advised the inspection is over and above what the architect does. 

 

Comm. Throneberry reported it was explained to the Health & Education Committee that the School Board wanted to make sure the roof was installed correctly. 

 

Mr. Sandvig advised roof warranties are less than perfect.  He reported Mr. Dan Sinclair with Consolidated Roofing has devoted a lot of effort to the Blackman roof.  He stated Mr. Sinclair is very thorough, and he makes the contractor re-do the roof if it is not correct.  Mr. Sandvig stated the Board believed it is well worth the money. 

 

Comm. Sandlin also asked about the $100,000 for the earthwork for Siegel High School, and asked Mr. Sandvig to elaborate on what all of the work would entail.  Mr. Sandvig explained it included additional testing.  He stated he did not believe the earthwork was covered by the construction contract.  He stated it did not only involve inspection, but also physical work, as well. 

 

Following discussion, Comm. Sandlin moved seconded by Comm. Peay to defer action on the $100,000 and $15,000 School Building transfers until the next Budget Committee and to request that Mr. McLaughlin be in attendance to answer questions regarding the requests.

 

The motion passed unanimously by roll call vote.

Budget Minutes                                                October 4, 2001                                              Page Eleven

 

 

APPROVE FUNDING FOR FURNITURE/EQUIPMENT FOR BLACKMAN AND ROCK SPRINGS MIDDLE SCHOOLS:

 

Mr. Sandvig requested approval of the proposed building program budget for furniture, fixtures, equipment and technology for Blackman and Rock Springs Middle Schools.  The estimated cost is $2,305,000 for each school for a total of $4,610,000, which is based on the same cost for Siegel Middle School. 

 

Mr. Sandvig advised after meeting with Tim McLaughlin there will be $850,000 in the Blackman and Rock Springs Middle School’s construction, contingency and site development budgets that could be applied toward the $4,610,000.  This would bring the total down to $3,760,000.

 

Mr. Long advised this would not be in the borrowing that is going to be done on October 10, but would be borrowed in the Spring, 2002.  He stated a bond resolution would need to be authorized.  The amount would also need to include the cost of sharing with the City of Murfreesboro.

 

Comm. Throneberry moved seconded by Comm. Ealy to approve Bond Resolutions in the amount of $3,760,000, plus the cost of sharing with the City of Murfreesboro to provide funding for furniture, fixtures, equipment and technology for Blackman and Rock Springs Middle Schools.

 

A discussion was held relative to approving a total package of construction and furniture and equipment all at one time.  It was reported that the Siegel High School project was approved in this manner, except for the stadium.

 

Following discussion, the motion to approve a bond resolution in the amount of $3,760,000 plus the cost of sharing with the City of Murfreesboro for furniture, fixtures, equipment and technology for Blackman and Rock Springs Middle Schools passed unanimously by roll call vote.

 

2001-2002 HIGH SCHOOL REPAIRS:

 

Mr. Sandvig requested approval of the following School Building program amendment in the amount of $72,835 to establish a 2001-2002 High School Repair Account:

 

            From:     Blackman High Building Construction -              $49,806

                           Blackman Furniture & Fixtures -                            11,769

                           Blackman Equipment -                                                  94

                           Blackman Technology -                                           11,166

 

            To:         2001-2002 High School Repairs -                       $72,835

 

Comm. Sandlin moved, seconded by Comm. P. Johnson to approve the School Building Program Amendment in the amount of $72,835 from the Blackman High School project to establish a 2001-2002 High School Repair project.

 

The motion passed unanimously by roll call vote.

 

APPROVE AMENDMENT TO EMPLOYEE HANDBOOK RELATIVE TO MILITARY DUTY:

 

Finance Director Paul Long advised the committee, some employees have been notified by their Reserve or National Guard Units that they are going to be called into service.  He explained the provision in the Employee Handbook only allowed for 15 days training a year.  Mr. Long explained that during Desert Storm, the State of Tennessee paid the difference in the employee’s military pay and the State salary up to $800 per month. 

 

A proposed amendment was provided which allows Rutherford County to supplement any employee who is called into active duty as a result of an Executive Order or during a period of armed conflict.  The employee will be entitled to receive county pay equal to the difference between their county salary and military pay.  At a minimum, the employee will be entitled to an amount not less than the cost of their insurance coverage on a monthly basis.  This will keep the employee on payroll and give them the

Budget Minutes                                                October 4, 2001                                              Page Twelve 

 

retirement credit.  It will also keep the employee from having to write a check to the county for their insurance coverage.  Further, employees will continue to accrue sick and annual leave benefits and any other benefits they would be entitled to.  The employee must provide copies of their military orders and some documentation reflecting the amount of their military pay to the Finance Department.  Mr. Long also advised the Steering Committee wanted to include language in the resolution that would not commit the county indefinitely, and that the County Commission would have the ability to review the policy to determine the duration. 

 

The Finance Director suggested the Budget Committee might want to establish the initial duration for this particular instance to be the remainder of the fiscal year.

 

Chairman Evans stated he would prefer to have the initial duration as the remainder of the fiscal year and to be re-determined at the end of the fiscal year as the county goes through the budget process.

 

Comm. Sandlin stated the initial duration could be for the deployment period, whatever that is.  He stated it might be a year.

 

Comm. P. Johnson moved seconded by Comm. Sandlin to approve the proposed Amendment to the Rutherford County Employee Handbook relative to Military Duty with the initial duration to be the remainder of the 2001-2002 fiscal year subject to review during the budget process to determine any future duration.

 

The motion passed unanimously by roll call vote.

 

APPROVE CONTRIBUTION TO NEW YORK CITY/WASHINGTON DC DISASTER RELIEF FUND:

 

Chairman Evans explained Hardin County, Tennessee adopted a resolution to contribute $5,000 to be given to the NYCDC Disaster Fund, C/O American Red Cross, and that the resolution be sent to each Tennessee County Commission requesting the same.

 

Comm. Sandlin moved seconded by Comm. Jones to approve the following budget amendment to appropriate $5,000 for the NYCDC Disaster Fund:

 

            From:       101-39000 – Undesignated Fund Balance -       $5,000

            To:            101-58900-316 – Contributions -                         $5,000

 

The motion passed unanimously by roll call vote.

 

RESOLUTION APPROVING FINANCING BY THE HEALTH & EDUCATION FACILITIES BOARD:

 

Mr. Pete Ezell and Mr. Ralph Kennedy were present to answer questions from the committee relative to a proposed resolution to finance a project for Tennessee Family Solutions Housing & Support, Inc.  The Health & Education Facilities Board proposes to issue approximately $5,000,000 principal amount of revenue bonds for acquisition, construction and equipping facilities.

 

Chairman Evans advised he had discussed the proposal with Tommy Smith, Chairman of the IDB, and was informed there would be no tax abatement.  He stated the county was being asked to allow financing by the IDB to allow Tennessee Family Solutions Housing & Support, Inc. to build duplexes and zero-lot line homes to house handicapped and mentally challenged individuals on one side and a caregiver on the other side.

 

Mr. Ezell and Mr. Kennedy advised the funding is all Medicaid money.

 

Chairman Evans stated the committee is only being asked to approve funding by the IDB to Tennessee Family Solutions Housing & Support, Inc. based on the normal procedure with no tax abatement.

 

 

Budget Minutes                                                October 4, 2001                                              Page Thirteen

 

 

Comm. Peay moved seconded by Comm. Sandlin to approve the Resolution approving the financing by the Health & Education Facilities Board of Rutherford County, Tennessee in the amount of $5,000,000 for Tennessee Family Solutions Housing & Support, Inc.

 

The motion passed unanimously by roll call vote.

 

ADJOURNMENT:

 

There being no further business to be presented at this time, Chairman Evans declared the meeting adjourned at 8:35 P.M.

 

 

 

______________________________________

Elaine Cawthon, Secretary

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