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BUDGET, FINANCE & INVESTMENT COMMITTEE
October 9, 2003 6:00 P.M. Courthouse
MINUTES:
Members Present: Others Present: Others Present: Others Present: Comm. Bob Bullen Nancy Allen Mary Schneider Dr. Lisa Pruitt Comm. Faye Elam Evans Maples Angel McCloud Van Zbinden Comm. Joe Frank Jernigan Mayor Bob Spivey Regina Nelson John Lodl Comm. Anthony Johnson Nancy Spivey Ginny King Susan Daniel Comm. Will Jordan Steve Benefield Del Corbitt Mike Picklesimer Comm. Steve Sandlin Johnny Jones Jim Estes Jennifer Allen Comm. Joyce Ealy, Chair. Joe Rando Valorie Estes Carroll Uselton
Bob Shupe, Susan Boney, Harry Gill, Jr., Jeff Sandvig, Jeff Craig, Brenda Minnick, Chuck Clark, Dewayne Trail, Lynn Duke, Tim McLaughlin, John Nevill, Steve Patrick, Lynnisse Patrick, Russ Lauer, John Taylor, Guy Garrett, Byron Hensley, Lisa Nolen, Elaine Cawthon
APPROVE MINUTES:
The minutes of the August 13, 2003 and the September 4, 2003 Budget Committee meetings were presented for approval.
Comm. Sandlin moved, seconded by Comm. A. Johnson to approve the minutes as presented.
The motion passed unanimously by acclamation.
INVESTMENT REPORT:
Mr. Evans Maples, Trustee, presented the monthly Investment Report for the use and information of the committee. Mr. Maples advised there were no investment events during the month. He reported the LGIP interest rate for the month was 1.05%.
Comm. Jernigan moved; seconded by Comm. Jordan to approve the Investment Report as presented.
The motion passed unanimously by acclamation.
FUND CONDITION REPORT:
Finance Director Lisa Nolen presented the Fund Condition Report for the month ending September 30, 2003 for the information and use of the committee.
Ms. Nolen informed the committee that the Finance Department had received the Certificate of Achievement for Excellence in Financial Reporting for the Fiscal Year Ending June 30, 2002. She advised this is the eighth year in a row that the Finance Department had received the award.
The Finance Director advised the Development Tax collections for the month of September totaled $446,250. The year-to-date total is $1,366,500. This reflects the highest collection for the month of September since the inception of the development tax.
Ms. Nolen reviewed the fund cash balances. The balance in the General Fund is approximately $1.5 million less than last year, which is primarily due to the fact that the Nissan payment in lieu of taxes was received before the end of September last year, and this year it was received on October 1.
Ms. Nolen called the committee’s attention to the Employee Insurance Fund cash balance, which totaled $1,699,856 compared to $909,036 last year.
The total fund cash balances are $75,900,170, with $56,973,612 being operating funds and $18,926,558 being borrowed funds.
Budget Minutes October 9, 2003 Page Two
Ms. Nolen advised the tipping fee collections in the Solid Waste Fund total $249,000, and only $30,000 was budgeted. This is due to the high volume of roofing material and storm related debris.
Ms. Nolen also called the committee’s attention to the Development Tax Collections, of which 36% of the estimated revenue has already been received.
Ms. Nolen noted there were no other unusual conditions to report at this time.
Comm. Sandlin questioned the balances on some of the School Building Program projects.
Ms. Nolen advised the School Board would be taking care of the small balances with some forthcoming amendments.
Comm. Jordan moved; seconded by Comm. Sandlin to approve the Fund Condition Report as presented.
The motion passed unanimously by acclamation.
GENERAL FUND BUDGET AMENDMENTS
HUMAN RESOURCE:
The County Executive requested approval of the following budget transfer to provide funds to pay for 5,000 pamphlets titled “A Bitter Pill” at $1.45 each to educate county employees regarding the high cost of health insurance:
From: 101-51310-101 – County Official/Administrative - $6,156 101-51310-210 – Social Security - 382 101-51310-204 – State Retirement - 622 101-51310-212 – Employer Medicare - 90
To: 101-51310-499 – Other Supplies/Materials - $7,250
Comm. Bullen moved, seconded by Comm. Jernigan to approve the budget transfer for the Human Resource Department as presented.
The County Executive advised this is something the Insurance Committee has been looking at in terms of an education program. Jeff Craig has developed a process about how to go about educating each individual departmental employee in county government, and he has mapped that out for the next couple of months. A part of that is to explain the county’s insurance plan, in that the county is self-insured and there is a third-party administrator.
Following discussion, the motion approving the budget transfer in the amount of $7,250 to provide funds for a pamphlet to educate county employees regarding the high cost of health insurance passed unanimously by roll call vote.
DRUG COURT:
Mrs. Mary Schneider, Drug Court Coordinator, requested approval of the following budget amendment to request proceeds from the Federal Implementation Grant be used to hire an Administrative Assistant at a pay grade 15, Step 3 effective November 3, 2003:
Increase Revenue: 101-47990 – Other Direct Federal Revenue - $17,063
From: 101-39000 – Undesignated Fund Balance - $ 5,687
Budget Minutes October 9, 2003 Page Three
To: 101-53330-161 – Secretary(s) - $16,875 101-53330-201 – Social Security - 1,050 101-53330-204 – State Retirement - 1,710 101-53330-205 – Employee Insurance - 2,865 101-53330-212 – Employer Medicare - 250
Ms. Schneider advised due to the grants received and the extension of the Federal Implementation Grant, she has more revenue than she realized, and she would like to add a much-needed position.
The County Executive asked Ms. Schneider how she arrived at starting the employee at a Step 3 instead of at entry level.
Ms. Schneider explained that the Administrative Assistant would also be doing drug screens, and since this is not a normal function for an Administrative Assistant, she wanted to be allowed to pay more for that.
The County Executive stated there is not an Administrative Assistant that would do drug screens, and the position has not been graded for that.
The County Executive advised the position would probably need to be graded to include the drug screens, and there would be a charge to get the position graded.
The County Executive advised in order not to slow the process down, the committee could approve the request but not fill the position, and ask Maximus to expedite the process in terms of grading the position.
Comm. Jernigan moved, seconded by Comm. A. Johnson to approve the budget amendment as requested to hire an Administrative Assistant, and that the job description be graded before the position is filled.
The Finance Director suggested if most of the job duties were going to be that of an Administrative Assistant, that perhaps the individual could start at the entry level, and then once the position is graded, if it is higher, the pay could be increased accordingly. She stated she did not see a problem with approving the amendment as requested, but then start the individual at entry level until the position is graded.
Comm. Jordan stated if the position was graded higher than a pay grade 15, it would have to come back to the committee next month.
Ms. Schneider also advised the committee that because of the increase in revenue, she would need to amend her entire budget. She suggested that she could withdraw this request until next month and present it with an entire new budget.
Following this information, Comm. Jernigan withdrew his motion, and Comm. A. Johnson withdrew the second to the motion.
YOUTH SERVICES/DISTRICT ATTORNEY – JUVENILE ACCOUNTABILITY INCENTIVE BLOCK GRANT:
Ms. Angel McCloud, Youth Services Director, requested that the County Executive be authorized to execute a contract with the State of Tennessee, Commission on Children and Youth for the Juvenile Accountability Incentive Block Grant in the amount of $63,699 and requiring county matching funds of $7,078. Ms. McCloud requested approval of the following budget amendment to recognize the revenue to be received from the grant, as well as the county match, which will be used to provide funding for the salary and benefits for an Assistant District Attorney for Juvenile Court, software for Youth Services, and training and travel for the DA, office supplies and funds for a consultant:
Budget Minutes October 9, 2003 Page Four
Increase Revenue: 101-46980 – Other State Grants - $63,699
From: 101-39000 – Undesignated Fund Balance - 7,078
Increase Expend.:
District Attorney: 101-53600-103 – Assistants - $33,340 101-53600-201 – Social Security - 2,068 101-53600-204 – State Retirement- 3,371 101-53600-205 – Employee Ins. 3,671 101-53600-212 – Employer Medicare- 484 101-53600-317 – Data Processing Svc- 3,000 101-53600-196 – In-Service Trn - 1,000 101-53600-355 – Travel - 2,000 101-53600-435 – Office Supplies 3,000 Youth Services: 101-53910-308 – Consultants - 1,500 101-53910-599 – Other Charges - 1,000 101-53910-709 – DP Equip. - 16,343
Following discussion, Comm. Elam moved, seconded by Comm. Jernigan to authorize the County Executive to execute the Grant Agreement with the State of Tennessee, Commission on Children and Youth for the Juvenile Accountability Incentive Block Grant and forward the same to the County Commission; and to approve the budget amendment as requested to appropriate the revenue to be received from the grant and the county matching funds.
The motion passed unanimously by roll call vote.
JUVENILE DETENTION:
Ms. Lynn Duke, Juvenile Detention Center Director, requested approval of the following budget amendment to appropriate insurance proceeds received from hail damage to a van and to amend $500 from the Judgment Account for the deductible:
Increase Revenue: 101-44520 – Insurance Recovery - $1,492
From: 101-58900-505 – Judgments - $ 500
To: 101-54240-338 – Maint./Repair Vehicles - $1,992
Comm. Bullen moved; seconded by Comm. Elam to approve the budget amendment as requested to appropriate insurance proceeds received from hail damage to a van, and to amend $500 from the Judgment Account for the deductible.
The motion passed unanimously by roll call vote.
SHERIFF’S DEPARTMENT:
Chief Regina Nelson, requested approval of the following budget amendments and transfers to appropriate insurance proceeds to repair wrecked vehicles, to transfer within the budget from Data Processing Equipment to Data Processing Services, to appropriate donations for Mounted Patrol, and to transfer from within the budget from Other Salaries/Wages at detention to cover a nurse practitioner:
From: 101-39000 – Undesignated Fund Balance - $ 3,059
Increase Revenue: 101-44520 – Insurance Recoveries - $22,947
Increase Expend.: 101-54110-338 – Maint./Repair Vehicles - $26,006
Budget Minutes October 9, 2003 Page Five
From: 101-54210-709 – Data Processing Equipment _ $ 105 101-54110-709 – Data Processing Equipment - 1,000
To: 101-54110-317 – Data Processing Services - $ 1,105
Increase Revenue: 101-44570 – Contributions/Gifts - $ 1,000 Increase Expend.: 101-54110-399 – Oth. Cont. Svc. - $ 1,000
From: 101-54210-189 – Other Salaries/Wages - $ 40,000 To: 101-54210-169 – Part Time Personnel - $ 40,000
Comm. Jernigan moved, seconded by Comm. Sandlin to approve the budget amendments and transfers for the Sheriff’s Department as requested to appropriate insurance proceeds for wrecked vehicles, to transfer from Data Processing Equipment to Data Processing Services, to appropriate contributions for the Mounted Patrol, and to transfer from Other Salaries/Wages to Part Time Personnel for a nurse practitioner.
The motion passed unanimously by roll call vote.
AMBULANCE SERVICE:
Ms. Ginny King, Ambulance Service, requested approval of the following budget amendment to appropriate insurance proceeds for a wrecked ambulance and to transfer $19,266 from the Judgment Account for the deductible:
From: 101-58900-505 – Judgments - $19,266
Increase Revenue: 101-44520 – Insurance Recoveries - $36,860
Increase Expend.: 101-55130-718 – Motor Vehicles - $56,126
Ms. King advised the total repair would be to replace the cab and chassis.
Ms. King requested approval of the following budget amendment, which was presented last month but sent back through the committee process:
From: 101-55130-133 – Paraprofessionals - $9,700 To: 101-55130-169 – Part Time Personnel - $9,700
Ms. King again advised the committee that due to the increased volume, an additional person is needed in the business office.
Following discussion, Comm. Sandlin moved, seconded by Comm. A. Johnson to approve the budget amendments for the Ambulance Service as requested to appropriate insurance proceeds and to transfer from the Judgment Account to repair a wrecked ambulance; and to also approve the transfer of $9,700 from the Paraprofessional Account to Part Time Personnel for an additional person for the business office.
The motion passed unanimously by roll call vote.
RECOMMENDATION TO PROCEED WITH STONECREST AMBULANCE STATION:
The County Executive requested approval of the following budget amendment to appropriate an additional $16,160 from the Development Tax to fund the additional cost for the Stonecrest Ambulance Station:
From: 125-39000 – Undesignated Fund Balance - $16,160
To: 125-91110-706 – Building Construction - $16,160 Budget Minutes October 9, 2003 Page Six
County Executive Allen advised Stonecrest Hospital is making the land available through a lease arrangement. She reminded the committee this request was presented last month, but was sent back through the committee process. She advised the original cost estimate to revise the plans according to Stonecrest’s request had been reduced from approximately $40,000 to $16,160.
An attachment was provided to the committee outlining the necessary alterations and additions to be compatible to Stonecrest’s requirements.
Following discussion, Comm. Sandlin moved, seconded by Comm. A. Johnson to approve the amendment of $16,160 from the Development Tax as requested to provide additional funding for the cost for the Stonecrest Ambulance Station.
The motion passed unanimously by roll call vote.
Chairman Ealy asked the County Executive if it was necessary for the committee to address the lease agreement as it was noted that the Public Safety Committee did authorize the County Executive to execute and enter into the lease with Stonecrest for the ambulance station site.
The County Executive advised she had the lease, and the County Attorney’s Office had reviewed it. She requested approval of the lease as a part of the recommendation.
Comm. Jernigan moved, seconded by Comm. Jordan to authorize the County Executive and any other required County official to execute and enter into the lease with Stonecrest for the ambulance Station site.
The motion passed unanimously by roll call vote.
SOLID WASTE/SANITATION FUND BUDGET AMENDMENT:
Mr. Del Corbitt, Landfill Supervisor, requested approval of the following budget amendment to utilize additional revenue from tipping fees to purchase a tractor for the landfill:
Increase Revenue: 116-43110 – Tipping Fees - $57,500 Increase Expend.: 116-55754-718 – Motor Vehicles - $57,500
Mr. Corbitt advised a new tractor was requested in the budget process, but was deleted because of the high cost. He explained due to the storms in the Spring, $250,000 has been generated in tipping fees.
Comm. Jernigan moved, seconded by Comm. Bullen to approve the budget amendment as requested.
The motion passed unanimously by roll call vote.
Mr. Corbitt also advised the committee that the budget that was put together during the budget process was based on the workload for the past three years. He said that because of the storms, the employees have been working weekends, and have been also contracting for another caterpillar. He stated the caterpillars use about 200 gallons of fuel a day. He said in the Spring, he would probably start running low in his fuel accounts and in the parts accounts, and he wanted to alert the committee he would probably need to come back for some additional requests. He advised also that increased tipping fees were received in May and June, and the money was there.
REQUEST FROM CONSERVATION BOARD TO DESIGNATE RENTAL INCOME FOR AGRICULTURE EXTENSION CENTER PURPOSES:
Mr. Jim Estes, Chairman Conservation Board, requested approval of a Resolution to designate rental income from public use of the Agriculture Extension Center facilities and grounds to provide funding for Account 101-57100-499, Other Supplies and Materials, for fencing, gates, signs, paint and other items needed for the grounds area. The resolution also requests that any unspent rental income at the end of the fiscal year be designated for Agriculture Extension Center purposes and be carried over from year to year. Budget Minutes October 9, 2003 Page Seven
Comm. Bullen moved, seconded by Comm. Elam to approve the Resolution to designate rental income from public use of the Agriculture Extension Center facilities and grounds for Agriculture Extension Center purposes as requested.
A discussion was held as to how much rent would be charged for the rooms and facilities. Mr. Estes advised they are working on changing the rental rates, but they are waiting on insurance information.
Following discussion, the motion to approve a Resolution to allow rental income from public use of the Agriculture Extension Center facilities and grounds to be utilized to fund Account 101-57100-499, Other Supplies and Materials, and that any unspent rental income at the end of the fiscal year be designated for Agriculture Extension Center purposes passed unanimously by roll call vote.
APPROVE RESOLUTION FOR FINANCING BY THE INDUSTRIAL DEVELOPMENT BOARD OF ASURION INSURANCE SERVICES:
Mr. Steve Benefield and Mr. John Jones addressed the committee regarding an Inducement Contract approved by the Industrial Development Board with Asurion Insurance Services, Inc. for the purpose of maintaining and increasing employment opportunities and economic activity in Rutherford County.
Mr. Benefield introduced Mayor Bob Spivey, Town of Smyrna, and his wife, Mrs. Nancy Spivey, Mr. Carroll Uselton, I.D.B. and Mr. Joe Rando, Senior Vice President of Operations for Asurion Insurance Services, Inc.
Asurion Insurance Services, Inc. is considering expanding their operation to acquire additional personal property and lease certain building space, which could eventually reach 130,000 sq. feet for servicing electronic equipment and repairing the same. It is estimated that the cost of the Project, together with related financing, architectural, engineering, legal, accounting, consultant and other professional fees will require an expenditure investment not in excess of $10,000,000.
Mr. Benefield advised he believed the request for approval of financing by the IDB for Asurion Insurance Services was as strong a program as they have ever presented. He reported Asurion is a corporation that is the largest provider of wireless roadside assistance services in North America and is the second largest provider of wireless handset insurance programs in North America, and the only provider of turnkey programs for managing enterprise-wide mobile equipment inventory. He stated the company was originally started in Silicon Valley. Ultimately, it went down the West Coast and ended up in the Texas area. They are relocating their corporate headquarters in Nashville.
Mr. Benefield stated what the IDB is presenting, is essentially a center that would be in charge of repairs of cellular devices, but would also branch into PDA’s.
Mr. Benefield advised that initially there would be approximately 230 new jobs. This would ultimately grow to about 500 employees in 2007. The average wage would be approximately $50,000.
Mr. Johnny Jones, Secretary/Treasurer of the IDB, addressed the committee. He stated this is the kind of company that everyone wants and is trying to recruit. He stated the inducement is tied to average salaries of $50,000, but he stated he believed it would be closer to $60,000 - $65,000, not including benefits.
An economic impact analysis was provided for the use and information of the committee.
The tax liability will be based on the assessment made by the Rutherford County Property Assessor with no payment in lieu of taxes to be made in 2004; Calendar year 2005 – the Company will make a payment in lieu of taxes amounting to 20% of the taxes that would otherwise be assessed; Calendar year 2006 – 40%; Calendar year 2007 – 60%; Calendar year 2008 – 75%; and Calendar year 2009 – 100%.
Mr. Jones advised the benefits to cost ratio is 20.3 to 1. He stated Smyrna and Rutherford County would basically get their investment back within seven months.
Budget Minutes October 9, 2003 Page Eight
Mayor Spivey stated he believed this was a win/win situation. He stated he was excited about the quality of the company. He encouraged the committee to follow through on the proposal and forward it to the County Commission with a positive recommendation. He stated the company was ready to come, and Smyrna was ready for them.
Following discussion, Comm. Bullen moved, seconded by Comm. A. Johnson to approve the Resolution approving the financing by the Industrial Development Board in an amount not to exceed $10,000,000 for Asurion Insurance Services, Inc.
Chairman Ealy noted the County Attorney and the Property Assessor had reviewed the Inducement Agreement.
The motion passed unanimously by roll call vote.
APPROVE TRI-PARTY AGREEMENT AND $150,000 FOR ARCHITECT & ENGINEERING FOR COUNTY ARCHIVES:
Mr. Van Zbinden, County Archives, gave a slide presentation on the current storage facilities and conditions of county records.
Dr. Lisa Pruitt, M.T.S.U. and County Archives Director, and Mr. Mike Picklesimer, Hart, Freeland & Roberts were available for questions.
A letter in support of the expansion of county archives from Georgia Lynch, County Clerk, was provided to the committee.
Comm. Elam stated she believed it is the will of the County Commission to move forward with the project. She stated everyone realizes that there is a need, and something that should have been addressed a long time ago. She stated it is the will of the Property Management Committee that the Public Building Authority oversee the project. She stated in order to move forward with the project and expedite it, a bi-party agreement with the PBA would need to be approved to authorize them to secure the architectural and engineering firms to develop the plans to hire a contractor. She stated in talking with Mr. Nevill, it appeared it would take two to three months to accomplish that before an architect could be hired, and before funding would be needed for the entire project.
Comm. Elam moved, seconded by Comm. A. Johnson to authorize the County Executive to execute a bi-party agreement with the Public Building Authority for renovating the old Health Department Building to be used by the Rutherford County Archives. And further, that $150,000 of Development Tax funds be appropriated to retain architectural and engineering services to develop the renovation and construction plans.
County Executive Allen suggested that it be a Tri-Party Agreement to allow the Archives Implementation Committee to have representation to work with the PBA.
Comm. Elam agreed to change her motion that the County Executive be authorized to execute a Tri-Party Agreement between the Public Building Authority, Archives Implementation Committee and Rutherford County.
Dr. Pruitt reported the Archives Implementation Committee has worked very hard to develop a plan for implementing this project. She cautioned the committee, about whatever action is taken, of her concern about the extremely heavy workload of the PBA. She stated she was afraid that this project would get pushed to the bottom of the stack. She stated that whatever steps are made, that they are made to move the project forward.
Comm. Elam advised she had spoken with Mr. Nevill, Chairman of the PBA, and he had assured her that the project would be assigned to committee members and they would move forward with the project.
Budget Minutes October 9, 2003 Page Nine
Mr. Nevill agreed with Comm. Elam and stated he did not have anything to add. He stated there was not really anything on the bottom or top. He stated they take the projects on, and they have not ever turned down a project.
Comm. Jordan stated the architect that developed the preliminary design for estimated costs was not aware that the Criminal Justice Center would be located on the same site. Comm. Jordan stated there had been some discussion about bridging the two buildings to make the Archives handicapped accessible. He stated since the PBA is going to be doing the Criminal Justice Center, he would like them to be aware of other options that might be available, and that perhaps the two buildings could be linked together.
County Executive Allen stated that each building would have its own unique security issues.
Dr. Pruitt stated she would like to see work begun on the archives, because there are things that will have to be done to the building independent of the issue of the judicial center and independent also of the ADA access such as the major building systems for the HVAC and fire suppression, etc. She stated the property is not secured, yet, for the Criminal Justice Center. She stated she would like to see the County move forward on the Archives, and at least get the ground level completed, and not wait on the Criminal Justice Center.
Comm. Bullen called for the question.
Following discussion, the motion to authorize the County Executive to execute a Tri-Party Agreement between the Public Building Authority, the Archives Implementation Committee and Rutherford County for renovating the old Health Department Building to be used by the Rutherford County Archives; and further, that $150,000 of Development Tax funds be appropriated to retain architectural and engineering services to develop the renovation and construction plans passed unanimously by roll call vote.
RECOMMENDATION TO ELIMINATE 2-EMPLOYEE DEDUCTION RATE FOR HEALTH INSURANCE:
Mr. Bob Shupe, Employee Security Planning, and Mrs. Susan Boney, Insurance Supervisor, were present to address the committee and answer any questions.
Finance Director Nolen provided information regarding activity on the Employee Insurance Fund. As of the end of September, the total revenue in the Employee Insurance Fund is $2,899,414 and expenditures are $4,968,653. The expenditures over revenue total $2,069,239.
For the same period last year, the total revenue was $1,988,346 with expenditures totaling $4,027,759. The expenditures over revenue were $2,039,412.
She reminded the committee the insurance rates were increased 30%, but medical claims are running almost 26% higher than last year.
A sample of the pamphlet entitled “The Bitter Pill” was distributed to the committee.
The Finance Director also provided an analysis of the 2-employee deduction rate. Ms. Nolen advised at the Board of Education, there 102 teachers and 6 classified employees that have the 2-employee deduction rate; the General Fund has 33 employees with the 2-employee deduction rate. If the 2-employee deduction is eliminated and those individuals are charged the family rate, they will pick up $108,594 of the cost of the family plan.
Mrs. Susan Boney advised when she was employed by the County 16 years ago, the County General Fund was paying all of the individual’s cost for the health insurance. There was a situation where a husband and wife were both working for the county, and the husband had a family plan and the wife had an individual plan. When she had a baby, both plans paid. It was decided then, that something different needed to be done.
Mrs. Boney also advised there are a lot of single females with children that have to pay the higher rate. Budget Minutes October 9, 2003 Page Ten
Comm. A. Johnson moved, seconded by Comm. Elam to eliminate the 2-employee deduction rate for family coverage on the health insurance effective January 1, 2004.
The motion passed by roll call vote with Commissioners Bullen, Elam, A. Johnson, Jordan and Ealy voting “yes”, and Commissioners Jernigan and Sandlin voting “no”.
PROPOSED DUAL BENEFIT OPTIONS FOR HEALTH INSURANCE:
Mr. Bob Shupe advised the Insurance Committee looked at a health reimbursement account. He advised Option 1 is what the County has now, with the exception of increasing the emergency room co-pay. He stated currently, it is $25, and it would be increased to $100.
Mr. Shupe advised Option 2 is the health reimbursement account. He stated the largest piece of it is the deductible. There would be $1,000 deductible with the first $500 being reimbursed at 100%. There is a rollover account, which means if an employee is not sick, the $500 would roll to the next year and there would be $1,000 worth of first dollar coverage. This can build up to $3,000 for an individual and $6,000 for a family plan. Mr. Shupe advised the incentive for doing this is that the employee would have to actually expend these costs and get reimbursed for them. That way they can actually see what it costs. He said with a plan like this, the participation the first year is usually about 15% to 17%, but in year two, employees begin talking about the funds that they are building up and people begin to get excited about it.
After discussing the plan and looking at the claims and realizing what it might do to the current insurance administrative staff with the volumes of phone calls and with the short period of time to get it accomplished by January 1; Mr. Shupe developed an intermediate plan. He stated the difference between the two plans is that the health reimbursement account concept has been removed from it. It does offer two options to employees, the only difference being the difference in the deductible and the out-of-pocket. It gives the young or healthy person, who does not foresee many claims next year, the option to take a higher deductible plan or stay on the plan they are on.
Mr. Shupe presented the Dual Option Funding plan. Mr. Shupe advised the difference in the cost to the County between the two options is approximately 27%. Therefore, Mr. Shupe suggested taking the current premium deduction rate and increasing it by 27%. He also suggested adding an additional increase of 12.5% effective January 1, 2004 due to the trend that the insurance is experiencing.
Mr. Shupe advised for those employees who believe they will not have many claims and who opt for the higher deductible, the premiums would be reduced, thus causing a saving for them in what is being deducted from their paycheck.
Mr. Shupe advised if the dual option concept could be instituted and some time was allowed through the education process to start talking about health reimbursement accounts, that might be the next natural step to take next year.
The Insurance Committee is recommending that the Budget Committee consider the Dual Option Plan without the health reimbursement account.
Mr. Shupe stated that as a part of the education process, employees need to be told that things will never stay status quo again for any prolonged period of time. There needs to be incremental changes.
Following discussion, Comm. Jordan moved, seconded by Comm. Sandlin to approve the Dual Benefit Option Plan and the Dual Option Funding Plan for employee health insurance without the health reimbursement account effective January 1, 2004.
The motion passed unanimously by roll call vote.
UTILIZE ARROWHEAD CLAIMS MANAGEMENT FOR AUTOMOBILE CLAIMS:
This item was withdrawn.
Budget Minutes October 9, 2003 Page 11, 2003
APPROVE CONTRACT RENEWAL WITH EMPLOYEE SECURITY PLANNING:
The Contract Agreement between Rutherford County and Employee Security Planning, Incorporated was presented for renewal. The contract is a three-year contract and includes a 5% increase. The consultant will serve in this capacity for an annual fee of $17,723 to be paid in twelve equal payments of $1,476.92 per month. There will be a per occurrence charge of $2,800 for each Property & Casualty bid process, which is increased from $2,600. There will be a charge of $1,700 for each Employee Benefits bid process, which is an increase from $1,500.
Mr. Shupe provided a copy of ESPinc’s client list for the use and information of the committee. Mr. Shupe explained when he began working for the County 15 years ago, the initial contract was $1,500. Three years ago, there was a 2% increase, and this time he is asking for a 5% increase. He reported that in 1990, the County insured $111 million in property, and currently there is over $900 million in covered property.
Comm. Jordan moved, seconded by Comm. A. Johnson to approve the contract renewal with Employee Security Planning, Inc. with a 5% increase and an annual fee of $17,723 to be paid in twelve equal payments of $1,476.92 per month, a per occurrence charge of $2,800 for each Property and Casualty bid process, and a per occurrence charge of $1,700 for each Employee Benefit bid process effective November 23, 2003.
The motion passed unanimously by roll call vote.
Comm. A. Johnson asked if the County had looked at the possibility of the County hiring a doctor for acute care for County employees.
County Executive Allen advised the Insurance Committee had a presentation on a program called “An On-Site Doctor”. The committee has received some information on that and is studying it.
Mr. Shupe advised they are doing site plans now and are getting the numbers together.
The committee took a short recess.
GENERAL PURPOSE SCHOOL FUND BUDGET AMENDMENT:
Mr. Harry Gill, Jr., Director of Schools, requested approval of the following budget amendment to appropriate an additional $300,000 in federal funds for school lunches and breakfasts. These are flow-through revenues. The related expenditures are for the reimbursements to the school cafeteria funds. The $25,000 is for the summer feeding program:
Increase Revenue: 141-47111 – USDA School Lunch Prg. - $240,000 141-47113 – USDA School Breakfast Prg. – 60,000 141-47114 – USDA Other - 25,000
Increase Expend.: 141-73100-165 – Cafeteria Personnel - $ 10,280 141-73100-201 – Social Security - 637 141-73100-204 – State Retirement - 1,038 141-73100-212 – Employer Medicare - 149 141-73100-342 – Pmts to Schools-Breakfast- 60,000 141-73100-343 – Pmts to Schools-Lunch - 240,000 141-73100-345 – Pmts to Schools-Other 12,896
Comm. Bullen moved, seconded by Comm. Jernigan to approve the budget amendment as requested.
The motion passed by roll call vote with Commissioners Bullen, Elam, Jernigan, A. Johnson, Sandlin, and Ealy voting “yes”, and Comm. Jordan “pass”.
Budget Minutes October 9, 2003 Page Twelve
SCHOOL BUILDING PROGRAM BUDGET AMENDMENTS:
Mr. Gill requested approval to reallocate $1,043 from architect fees at Siegel High School to cover additional contract services for the project.
Mr. Gill requested approval to reallocate funds within the $2,170,000 overall budget for furniture, equipment, technology, and other related items at Christiana Middle School by transferring $28,424 from furniture, $3,996 from technology, and $13,243 from other equipment in order to fund $45,663 in equipment.
Mr. Gill requested approval to reallocate $402 from engineering and $1 from site development at La Vergne Middle School to cover $403 in additional architect fees for this project.
Mr. Gill requested approval to transfer $5,687 to the roof and HVAC project at Buchanan School from remaining site development funds from the Blackman and Wilson Elementary projects.
Mr. Gill requested approval to transfer $191,162 from the Walter Hill roof and HVAC project to fund $59,162 for the roof and HVAC projects at Buchanan School and $132,000 for the HVAC project at Thurman Francis School. This amendment covers the remainder of the roof and HVAC projects at Buchanan School and the HVAC project at Thurman Francis School.
Mr. Gill requested to transfer $44,683 remaining from the Smyrna Elementary re-roofing project to the Walter Hill re-roofing/HVAC project.
Comm. Bullen moved, seconded by Comm. Jernigan to approve reallocating $1,043 from architect fees at Siegel High School to cover additional contract services for the project; reallocating $28,424 from furniture, $3,996 from technology, and $13,243 from other equipment at Christiana Middle School in order to fund $45,663 in equipment at Christiana Middle School; transferring $402 from engineering and $1 from site development to cover $403 in additional architect fees for La Vergne Middle School; transferring $5,687 to the roof and HVAC projects at Buchanan School from remaining site development funds from the Blackman and Wilson Elementary projects; transferring $191,162 from the Walter Hill roof and HVAC project to fund $59,162 for the roof and HVAC projects at Buchanan School and $132,000 for the HVAC project at Thurman Francis School; and transferring $44,683 from the Smyrna Elementary re-roofing project to the Walter Hill roof and HVAC project.
The motion passed unanimously by roll call vote.
APPROVE FIXED ASSET ANNUAL REPORT:
Mr. Jeff Craig, Inventory Control Supervisor, presented the Annual Report of Fixed Assets for the Fiscal Year Ending June 30, 2003 for the use and information of the committee.
Mr. Craig advised this is the third year the report has been presented to the Budget Committee, and the report is also presented to the Purchasing Committee. He advised with the Finance Director’s help, he was able to implement GASB 34, with one of the key components of that accounting standard being a fixed assets program. He stated Rutherford County is one of the few counties across the State that has a fixed assets program. He stated the program is one of the top programs in the State. He also reported that a web site was implemented this year, which allows teachers and department heads to download forms, etc. He informed the committee that organizations cannot throw away mass quantities of computer related items. He advised the county has a surplus of these types of items, and he is working on contracting with an organization that recycles computers.
Mr. Craig called the committee’s attention to the listing of missing assets, which detailed the assets that could not be found this past fiscal year. Mr. Craig advised if an asset is not found in one single year, it is not classified as missing. However, if the asset is not found during the second year, it is then classified as missing; and it is presented to the Purchasing Committee to obtain approval to remove the asset from the fixed asset records. He advised the list of missing assets is increasing. He explained this does not necessarily mean the assets are stolen, but it is probably that the departments are not going through the proper procedure of disposing of the items. Budget Minutes October 9, 2003 Page Thirteen
Mr. Craig advised he would be meeting with Riverdale High School. He stated that it appears that Riverdale is trying to keep track of their assets, but over the past three years Riverdale has had 44% of the missing assets.
Mr. Craig advised he has discussed with the Finance Director, the possibility of presenting the report to the Board of Education. He also advised the Director of Schools has sent out a memorandum to all of the band directors that they must keep a better track of the band instruments.
Following discussion, Comm. Bullen moved, seconded by Comm. Jernigan to approve the Annual Report of Fixed Assets as presented.
Comm. Jernigan stated he did want the School Board to see the report and do something about the missing assets. It was also suggested that the report be presented at a principal’s meeting.
Mr. Craig advised, in general, the schools keep very good track of their equipment. He advised that only .2% of the assets in the county is missing.
Following discussion, the motion to approve the Annual Report of Fixed Assets for the Fiscal Year ending June 30, 2003 passed unanimously by acclamation.
APPROVE TRANSFERRING REMAINING FUNDS FROM LASCASSAS CONDEMNATION TO THE GENERAL DEBT SERVICE FUND:
Finance Director Nolen requested approval of the following budget amendment for the General Debt Service Fund to transfer the remaining balance of the Lascassas Condemnation. All of the expenses for the condemnation have been satisfied:
Increase Revenue: 151-49800 – Transfers In - $45,762 Increase Undesignated Fund Balance: 151-39000 - $45,762
Comm. Bullen moved, seconded by Comm. Jernigan to approve the budget amendment as requested to transfer the remaining balance of the Lascassas Condemnation to the General Debt Service Fund.
The motion passed unanimously by roll call vote.
APPROVE TRANSFERRING BALANCE OF LA VERGNE LIBRARY PROJECT TO THE GENERAL DEBT SERVICE FUND:
Finance Director Nolen requested approval of the following budget amendment to transfer the remaining balance of the La Vergne Library Project to the General Debt Service Fund as the project is complete:
Increase Revenue: 151-49800 – Transfers In - $143,001 Increase Undesignated Fund Balance: 151-39000 - $143,001
Comm. Bullen moved, seconded by Comm. Jernigan to approve the budget amendment to transfer the remaining balance of the La Vergne Library Project to the General Debt Service Fund.
The motion passed unanimously by roll call vote.
SPECIAL PURPOSE FUND/GENERAL FUND BUDGET AMENDMENT:
Finance Director Nolen requested approval of the following budget amendment to transfer the remaining balance of Fund 121, Special Purpose Fund, to the General Fund. The Finance Director explained Fund 121 was established two years ago to account for various grants, but since the grants were reimbursed, it caused cash flow problems. Since a large majority of the grants were salaries, the General Fund had to transfer money into the Special Purpose Fund. The grants are now being accounted for in the General Fund. The Finance Director advised that $85,386 is left in the Special Purpose Fund, but since the money initially came from the General Fund, she proposed to transfer the money back to the General
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Fund. The following amendments reflect the money being transferred out of the Special Purpose Fund and being transferred into the General Fund:
Special Purpose Fund:
From: 121-39000 – Undesignated Fund Balance - $85,386 To: 121-99100-590 – Transfers to Other Funds - $85,386
General Fund:
Increase Undesignated Fund Balance: 101-39000 - $85,386 Increase Revenue: 101-49800 – Transfers In - $85,386
Comm. Bullen moved, seconded by Comm. A. Johnson to approve the budget amendments as requested to transfer the remaining balance of $85,386 from Fund 121, Special Purpose Fund, to Fund 101, General Fund.
The motion passed unanimously by roll call vote.
DISCUSS DEVELOPMENT TAX AND OTHER TAX ALTERNATIVES:
Chairman Ealy advised Comm. Bullen has requested that the committee discuss the Development Tax and other tax alternatives. She stated the Budget Committee has gone on record to be very sensitive to the comments that were made at the Public Hearing. She stated the Steering Committee is taking the lead on this study of the options that might be available.
Finance Director Nolen presented an analysis of the Development Tax from July 1, 1996 through June 30, 2003. She advised that since its inception, $23,134,841 had been collected in Development Tax plus interest. The analysis also reflected how the Development Tax funds have been spent.
The Finance Director also presented a listing of Revenue Alternatives, which reflected the items that the County currently has; such as Property Tax, Wheel Tax, Hotel/Motel Tax, Mineral Severance Tax, Local Option Sales Tax, and the Development Tax. The report also illustrated how these revenue sources are being distributed. Of these revenue sources, the only ones that can be increased locally are the Property Tax, Wheel Tax and Development Tax.
The report listed measures taken by the County Commission in the past.
Other items to be considered could possibly be a special census, Impact Fee, Adequate Facilities Tax and a Metro Government.
Comm. Jernigan stated his concern with the Impact Fee, is that it would not generate enough money to build schools. He stated it sounds like a lot of money, but Smyrna is not building schools. He said when building as many schools as Rutherford County is building, the Impact Fee would have very little affect on schools or roads. He said the total amount collected so far would not build one high school.
Comm. Jordan stated when looking at revenue sources, he believed the Development Tax should be increased instead of creating an Impact Fee. He stated with the Development Tax, there is some latitude to use the money. With an Impact Fee, the use is limited.
The County Executive advised the company who developed Smyrna and La Vergne’s Impact Study will be making a presentation to the Budget Committee and the Steering Committee next month. She advised if the County wanted to do an Impact Fee, a company would have to be hired to develop that for the County.
Comm. Bullen stated the reason he wanted this discussed was because the Budget Committee originated it, and that he wanted the Budget Committee represented in any future discussions.
Budget Minutes October 9, 2003 Page Fifteen
Chairman Ealy advised that next month’s Budget Committee meeting on November 6 would be a joint meeting with the Steering Committee to hear the presentation from Duncan & Associates regarding the Impact Fee.
APPROVE AGREEMENT WITH TENNESSEE HOUSING DEVELOPMENT AGENCY, HOME PROGRAM POLICIES AND PROCEDURES AND CONTRACT WITH GREATER NASHVILLE REGIONAL COUNCIL:
The County Executive advised of a grant award for the 2003 HOME Investment Partnership Program with the Tennessee Housing Development Agency in the amount of $230,666, which is 100% federally funded. The grant funding will be used to perform housing related activities such as rehabilitation of housing units, or like activities to improve housing conditions for low and very low income persons.
The County Executive advised the grant is for a countywide area and is not a designated area. She stated once all of the documents are executed, there would be a public information process. She stated the individuals would have to meet the income level requirement, but it would be anywhere in the unincorporated area of the County.
Approval of the following budget amendment was requested to recognize the revenue to be received from the grant and the related expenditures:
Increase Revenue: 101-47180 – Community Development - $230,666
Increase Expend.: 101-58190-310 – Contracts w/Other Public Agencies - $ 13,000 101-58190-399 – Other Contracted Svc. - 217,666
The HOME Program Policies and Procedures were also presented for approval, as well as the contract with Greater Nashville Regional Council who will be administering the HOME Program grant for a fee of $13,000.
Comm. Bullen moved, seconded by Comm. Elam to authorize the County Executive to accept the grant award in the amount of $230,666 for the HOME Program Grant and to execute the Working Agreement with the Tennessee Housing Development Agency; to approve the HOME Program Policies and Procedures; and to execute the Personal/Professional Services Contract with Greater Nashville Regional Council for Administrative and Management Assistance for a fee of $13,000; and further to approve the General Fund budget amendment to recognize the revenue to be received from the grant and the related expenditures as requested.
The motion passed unanimously by roll call vote.
APPROVE FUNDING FOR LA VERGNE MIDDLE SCHOOL:
Chairman Ealy recognized Mr. Tom McAnulty and Mr. Paul Long from Stephens, Inc. to provide information to the committee regarding options to access capital markets.
Finance Director Nolen reminded the committee in the Spring, 2003 bond issue approximately $7,000,000 was borrowed to purchase land and to provide startup funds for the La Vergne Middle School. The School Board had said the money would probably be spent by the end of July, but at this point there is still about $800,000 remaining. The Finance Director advised that would be spent soon.
The Finance Director advised she has discussed the funding options with Stephens, Inc., and it would be possible to borrow in-house, but she believed the committee should determine how to ultimately fund the $10,000,000.
Mr. McAnulty provided graphs of the monthly Bond Buyer 20-Bond General Obligation (Tax-Exempt) Index Comparison from 1968 to the Present and the weekly comparison. Mr. McAnulty advised on May 1, the 20-Bond GO Index was at 4.58% and went down to 4.21% on June 12. From June 12 to August
Budget Minutes October 9, 2003 Page Sixteen
14, it went up to 5.18%, which was the highest rate in the last 12 months. The low rate of 4.21% on June 12, was the lowest the rate has been since 1968.
Mr. McAnulty advised that depending on how the principal payments were structured, the County could expect to receive a rate of between 4.0% to 4.25% to borrow 20-year money.
Mr. McAnulty stated that since the County has shown some interest in a variable rate program, there are some options available. He stated the County could do a 9-year variable rate program and approve Capital Outlay Notes to do that. If the County wanted to go longer than 9 years, that could be done through the County’s Public Building Authority and set up our own variable rate program. He also advised the County could use a loan pool as was presented at the special meeting on August 13 or from another firm.
Mr. McAnulty stated when looking at a 30-year low fixed rate, it is hard for him to want to issue variable rate; however, he stated he knew they were currently saving money with a variable rate. He stated if the County did variable rate money, money would probably be saved for a period of time, but he did not know for how long.
Mr. McAnulty also stated the County could do a “Swap” whereby the County would borrow at a fixed rate, and there would be a second transaction called a “Swap”. The County would pay a variable rate, but receive a fixed rate. The County’s rate would float.
Mr. McAnulty advised if the County decided to get into any of the derivative products, it would require a lot more monitoring in watching the market and watching whoever is re-marketing the bonds.
Mr. McAnulty reported if the County wanted to take a little risk, they could take the amount to be paid in principal for the next nine years and let that float. He stated the County could do a partial float, and that would be a little less risk. He stated he wanted the committee to understand the options, and he was not trying to sell them on one option or the other.
County Executive Allen asked if there were any counties that had been using variable rate financing, who are now fixing their rate?
Mr. McAnulty advised they have quite a few clients that have done that. Mr. McAnulty also advised they have some clients who have never done a variable rate before, who are now trying a little of it.
Mr. McAnulty stated no one knows what the rate is going to do the next day. He stated they would do whatever the County Commission wanted them to do.
The County Executive, asked Mr. McAnulty, as the County’s Financial Advisor if he would recommend that Rutherford County do variable rate financing? She asked in this current market, knowing what he knows, if he would recommend variable rate financing?
Mr. McAnulty stated Stephens, Inc. has not been recommending variable rate financing. He stated when dealing with public funds, the prudent care that is required to exert confidence of the people in managing their funds, dictates that there be no speculation with their money. He stated there have been other people who have been fortunate in going into a variable rate program in the last six to seven years, and they have saved money. He stated he did not believe that was because of any great wisdom or vision on their part, they were just fortunate or lucky in the process. He stated the rates could turn on you, and turn on you fast.
Comm. Jernigan asked Finance Director Nolen what her recommendation would be?
Mrs. Nolen advised she was as conservative as Mr. McAnulty.
Comm. Bullen stated he believed with the rates being this low, the County is saving money by going with a steady rate compared to what has been paid in the past. He said it is not like throwing money away. He said the County is experiencing a safe saving as compared to a speculative saving.
Budget Minutes October 9, 2003 Page Seventeen
Mr. McAnulty stated he did not believe the rates would go very much lower in the near future. He stated if he needed money now, he believed he would take advantage of the rates now. If the rates do go down, there is always the possibility of refinancing. If the rates go up, then it would be good if the County had already locked in the lower rate.
Comm. Bullen asked how much money was needed?
Finance Director Nolen advised to fully fund La Vergne Middle School, another $10,015,000 was needed. She stated this does not include the amount that would need to be shared with the City of Murfreesboro for the sixth grade.
Comm. Bullen asked if any more money was needed.
Comm. Jordan asked if it would affect the County’s bond rating to go to the bond market earlier than May.
Mr. Long stated it would not really affect the bond rating. He stated they have usually talked to the County about scheduling their visits to the bond market once a year, but he said there are plenty of issuers that go frequently and it does not seem to hurt at all.
Mr. Long advised they had projected earlier that the County would need $25 million to $30 million over the next several years. He stated this borrowing would be a part of that, but he also pointed out that several new projects have been discussed since then. He stated they have not had a chance to do a good thorough study of all the options. He stated they do have data from both variable rate programs, and they are in the process of analyzing that. He stated that by the time the County goes to the market next Spring, they would be able to say which of those two programs would be the most cost affective. He stated they would also be able to say if there is another solution that might produce that same type of cost efficiency.
Comm. Jordan asked if $35 million was needed by May, and if the County would be getting $10 million or $12 million now and then another $20 million then; if the County would get a better deal by borrowing the larger sum? He wanted to know if the County should think about getting a bond anticipation note now, and issuing the large sum in the Spring? He wanted to know if $35 million would get a better rate than $10 million.
Mr. Long advised that $35 million would get a slightly better rate. He said the question to ask is that going to be offset by a rise in the market?
Mr. McAnulty stated if the County knows what they are going to need now, he would borrow it now, because he knows what the rates are now.
The Finance Director stated all of the projects have not been presented to the Health & Education Committee, yet. She stated during the last borrowing, it was noted that additional funding would be needed for the Criminal Justice Center, Juvenile Detention, Correctional Work Center, and road projects.
Comm. Elam noted that funding for the County Archives would need to be added.
Comm. Bullen noted that funding for the additions to Smyrna High School and La Vergne High School would need to be added. He stated it was imperative that the additions to these schools be added, and he did not believe the Health & Education Committee would have a problem with those.
It was noted that approximately $10,000,000 would be needed for the additions to Smyrna High School and La Vergne High School.
The committee discussed the fact of adding this funding when it has not officially been requested or approved.
Budget Minutes October 9, 2003 Page Eighteen
Comm. Jordan stated he would like to know the cost per student to add on to the schools compared to the cost per student for Siegel High School.
Comm. Jernigan asked Mr. Sandvig if the $10 million for La Vergne Middle School was needed now, or if it could wait a month.
The Finance Director stated the Board of Education could probably get by another month, but it would be close.
Mr. Long stated if the bonds were approved at the November County Commission meeting there would probably be enough time to get the bonds sold and closed before the end of the year.
Mr. McAnulty advised there would be a 20-day waiting period. If the bonds are sold under Title 9, there would be a 20-day waiting period for the Initial Resolution, or if the bonds are issued under Title 49, they can be sold immediately if it is all for schools.
Mr. McAnulty stated if there was a reasonably good estimate of how much money is needed, the County could pass a resolution not to exceed a certain amount. Then before the bonds are actually issued, the exact amount could be determined. He stated the Initial Resolution could be advertised, and the 20-day waiting period could begin.
Comm. Jordan stated then that the committee could recommend a resolution of not to exceed $25 million and present that to the County Commission. Then next month, the County Commission could determine exactly how much is needed, and it would be ready to be issued immediately.
Mr. Long stated the Budget Committee could go ahead and authorize what is needed on La Vergne Middle School, and they could begin working on that. If everything else that is needed passes with no problems, they could probably combine the two issues and carry them to the market at the same time. There would be two resolutions.
Mr. McAnulty stated if the County knows they are going to need the money and they want to start on the projects as soon as they can, he would recommend that one resolution be adopted for a not to exceed amount and advertise the notice. That would give the County enough time to decide how much money is needed. It can be put on the market within a week or two after that.
Comm. Sandlin stated he did not want to skip the process. He stated he believed it should go through the Health & Education Committee, and they should compile a priority list and forward that request to the Budget Committee.
Comm. Jordan stated if the committee passes the resolution as Mr. McAnulty has stated, that does not lock in anything. He stated that next month, it might be decided that only $10 million is needed. He stated that would only give the County the opportunity to borrow that much, but that would not go to the bond market, yet.
Following discussion, Comm. Jordan moved, seconded by Comm. Bullen to approve an Initial Resolution and a Bond Resolution not to exceed $25 million, with said Initial Resolution to be advertised, for the purpose of providing funding for the acquisition of land and site development for school purposes; constructing, repairing, renovating and equipping of County school buildings and school facilities; constructing of renovations to and equipping of an existing building to be converted to use as an archives/record retention center; acquisition of land and site development for and the constructing, renovating an equipping of the correctional work center, County jail, juvenile detention center and court center, including but not limited to, parking for the court center; payment of grants or donations to The Public Building Authority of Rutherford County, Tennessee for the purpose of any or all of the foregoing; if required by applicable law, the payment of funds required to be shared with the City of Murfreesboro, Tennessee; paving and repairing streets and roads. Further, that the exact amount to be borrowed will be finalized at the November, 2003 County Commission meeting.
The motion passed unanimously by roll call vote.
Budget Minutes October 9, 2003 Page Nineteen
Mr. Long advised in the process of looking at the numbers and updating some of the revenue projections, it occurred to him that the public has the conception that if an Impact Fee is adopted it will free up revenue to go other places. He stated the first thing adopting an Impact Fee will do, if the Development Tax is eliminated, is lose approximately $2 million in revenue a year that accrues to the Debt Service Fund. He stated there is not a lot of places to get that other than the property tax. He stated half of the Development Tax has gone strictly to the debt retirement for new schools.
OTHER BUSINESS:
Comm. Bullen requested that an item be put on the agenda in the future regarding a TV channel to televise the committee meetings.
The County Executive advised she is working on that.
Comm. Bullen requested an update on this at the November Budget Committee meeting.
Comm. A. Johnson stated there is a misconception that an Impact Fee will slow down growth. He stated no one has ever looked at how many children or grandchildren stay here and buy homes.
Comm. A. Johnson stated he did not agree with having the joint meeting between the Steering Committee and the Budget Committee at the regular Budget Committee meeting on November 6. He stated the Budget Committee has more on their agenda than any other committee, and it is more mind-boggling than any other committee.
The County Executive stated if the committee preferred Duncan & Associates come in December and only go to the Steering Committee, she would see if that could be arranged.
Comm. Bullen moved, seconded by Comm. Elam to leave the joint meeting with the Steering Committee on the Budget Committee agenda for November 6 as originally scheduled.
The motion passed unanimously by acclamation.
ADJOURNMENT:
There being no further business to be presented at this time, Chairman Ealy declared the meeting adjourned at 9:25 P.M.
______________________________ Elaine Cawthon, Secretary
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