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BUDGET, FINANCE & INVESTMENT COMMITTEE
October 10, 2002 6:00 P.M. Courthouse
MINUTES:
Members Present: Others Present: Others Present: Others Present: Comm. Bob Bullen Nancy Allen Tela Bayless George White Comm. Anthony Johnson Evans Maples Mary Schneider Jeff Sandvig Comm. Will Jordan Jeff Craig Mike Nunley Tommy Sanford Comm. Robert Peay Jaime Craig Judge Donna Scott Paul Long Comm. Doug Shafer Hooper Penuel Angel McCloud Elaine Cawthon Comm. Steve Sandlin Linda Vincion Regina Nelson Comm. Joyce Ealy, Chair. Brian Robertson Philip Martin
Chairman Joyce Ealy presided and called the meeting to order at 6:00 P.M. with all members being present.
Chairman Ealy welcomed Comm. Jordan and Comm. Shafer to the committee.
Chairman Ealy reminded the committee that in the General Fund 2002-03 budget, expenditures of $1.7 million in excess over revenues were authorized, and in the Debt Service Fund the amount of expenditures over revenue is $3 million. She advised anytime amendments were made from Account 39000, Undesignated Fund Balance, that would widen the gap.
Chairman Ealy advised the county experienced a 19.5% growth in sales tax collections during the last reporting period.
APPROVE MINUTES:
The minutes of the August 29, 2002 meeting were presented for approval.
Comm. Sandlin moved, seconded by Comm. Bullen to approve the minutes of the August 29, 2002 meeting as presented.
The motion passed unanimously by acclamation.
INVESTMENT REPORT:
Mr. Evans Maples, Trustee, presented the monthly Investment Report for the information and use of the committee.
Mr. Maples advised no investment transactions had occurred since the last meeting. The LGIP interest rate for the month was 1.91%.
For the information of the new committee members, Mr. Maples explained that LGIP is the Local Government Investment Pool. It is State funded and State guaranteed and approved by the auditors. It is one device that can be used for investing. The other investment tools that are traditionally used are collateralized certificates of deposit, as well as some short-term treasury notes. However, the short-term treasury notes and the CD’s are not yielding. He stated LGIP is the best form of investment right now.
Comm. Bullen moved, seconded by Comm. Peay to approve the monthly Investment Report as presented.
The motion passed unanimously by acclamation.
INVENTORY CONTROL ANNUAL REPORT:
Mr. Jeff Craig, Inventory Control Supervisor, presented the Fixed Assets Annual Report for 2001-2002 for the use and information of the committee. Budget Minutes October 10, 2002 Page Two
Finance Director Paul Long explained this is the third annual Inventory Control Report that has been produced. He explained after the first report, departments began to take their accountability for fixed assets more seriously. He stated there have been some great improvements in the process in the last two years.
Mr. Craig explained the report consisted of summary graphs/tables by department totals, category totals and the schools and departments inventoried. The report includes financial schedules of changes by additions and deductions, and a schedule of changes by category. A list of missing assets is also included in the report.
Mr. Craig advised there were 73 missing assets, which is the exact same number as last year. He reported this number has dropped tremendously since the first report. The total historical cost of the missing assets was $91,844.34 with depreciated value of $13,710.97. He stated this is a slight increase from last year, because some of the items missing were more expensive. He advised the missing assets represent .2% of all of the county’s assets.
Following review, Comm. Bullen moved, seconded by Comm. Sandlin to approve the Inventory Control Annual Report for 2001-2002 as presented.
The motion passed unanimously by acclamation.
FUND CONDITION REPORTS:
The Finance Director advised the Development Tax Collections for the month of August were $441,000 with the year-to-date collections totaling $735,750.
The September collections for the Development Tax were $354,000 with the year-to-date collections totaling $1,089,750.
Mr. Long reviewed the fund cash balances. Mr. Long emphasized these are cash balances and not fund balances.
The Finance Director advised the large difference in the cash balance for the General Fund for the current year was due to the fact that Nissan made their in-lieu-of-tax payment before the end of September this year.
Mr. Long explained, for the benefit of the new commissioners, that the Employee Insurance Fund has had some financial difficulties for the last two to three years. He advised there was a fund deficit of approximately $1.1 million a year ago, and some significant adjustments were made to begin correcting the situation. He stated it has been determined there will need to be premium rate increases over the next three years. The rate increases are implemented in January. He reported a $2 million Revenue Anticipation Note was approved at the last commission meeting to lend money to the Health Insurance Fund on a temporary basis. He stated $1 million has been borrowed from the County General Fund. As of September 30, the current cash balance was $909,036, which means some of the borrowed money has been used. He stated he hoped to be in a position to repay the loan shortly after the first of the year, but by law it must be paid before June 30, 2003.
Mr. Long explained Fund 171, which is General Capital Projects. All of this money is typically borrowed money and tracked separately.
Fund 189, is the School Capital Projects, and the same is true for those as in Fund 171 and tracked separately.
Mr. Long advised the total cash balances as of September 30 were $97,321,651, with $61,937,085 being operating funds and $35,384,566 being borrowed funds.
Mr. Long explained the remainder of the report, which consists of Summary Revenue and Summary Expenditures Reports for the various funds. Budget Minutes October 10, 2002 Page Three
Mr. Long explained the Statement of Proposed Operations, which reflects the status of each fund with amendments posted through September 30. The table lists the unaudited beginning fund balance for each fund as of July 1, the estimated revenue and expenditures and the estimated fund balance as of June 30, 2003. Mr. Long stated the unappropriated surplus number for each fund should be used to determine how much more could be appropriated from each fund. He stated the balances should not be reduced too low, but some of the specific purpose funds could be spent down if necessary.
Comm. Bullen moved, seconded by Comm. Johnson to approve the Fund Condition Reports for August and September, 2002 as presented.
The motion passed unanimously by acclamation.
UPDATE ON APPROVED, UNFUNDED CAPITAL PROJECTS:
Finance Director Paul Long advised when the commission voted to reduce the tax levy to the certified property tax rate of $2.51, it caused the General Debt Service fund balance to be reduced by approximately $3 million.
He explained there are payment schedules on all of the bonds and notes for the payment of principal and interest. When money is appropriated in Debt Service, almost all of it will be spent.
Since the Debt Service Fund is being drawn down substantially, several Commissioners have asked what impact that would have on the county’s ability to borrow future funds for necessary capital projects. At the same time the budget was adopted, the County Commission also adopted a Fund Balance Policy. A minimum fund balance level of 75% was set for the General Debt Service Fund. He explained that is 75% of the amount appropriated for the next year. Using that as a guideline, he has tried to predict how much debt the county could borrow this coming fiscal year. He advised he believed the county would be able borrow approximately $25 million if the commission allows some creativity in the way the repayment on the debt is structured without costing the taxpayers any more money on the life of that issue. He explained it would save money on the front-end until the county can get past the significant problem in the debt repayment structure.
Mr. Long provided a list of capital projects that have been approved but have not been funded. The list reflects the Siegel High School Stadium at $1.6 million, which funding has been approved but not borrowed; additional Christiana construction - $146,000; balance of Eagleville stadium - $600,000; additional La Vergne High School roof repair - $300,000; and Lane Agri Park - $3,300,000.
The list also reflects the property for the La Vergne School site at $1,895,000, which is contingent upon meeting the geo-technical studies.
Impending projects on the list consists of Siegel Road Improvements -- $1,000,000; Manson Pike Improvements - $1,725,000; Beesley Road connector - $1,513,750; Joe B. Jackson Parkway - $1,738,000, which has been put on hold; and a new elementary school in La Vergne - $11,000,000.
The total projects that might need to be funded in the Spring of 2003 are $20,433,750.
Mr. Long provided copies of the City of Murfreesboro’s Transportation Capital Improvement Budget.
Budget Minutes October 10, 2002 Page Four
ELECTION COMMISSION:
Mr. Hooper Penuel and Mrs. Linda Vincion requested approval of the following budget transfers in order to complete this year’s election cycle. He advised three of the accounts were reduced during the budget process:
From: 101-39000 – Undesignated Fund Balance - $20,480
To: 101-51500-187 – Overtime Pay - $ 4,000 101-51500-193 – Election Workers - 10,000 101-51500-201 – Social Security - 870 101-51500-204 – State Retirement - 405 101-51500-212 – Employer Medicare - 205 101-51500-349 – Printing, Stationery & Forms - 3,000 101-51500-435 – Office Supplies - 2,000
Comm. Bullen moved, seconded by Comm. Sandlin to approve the budget amendment as requested.
Following discussion, the motion to approve the budget amendment for the Election Commission passed unanimously by roll call vote.
GEOGRAPHIC INFORMATION SYSTEMS:
Mr. Brian Robertson requested approval of the following budget transfers to provide additional funding for the Travel Account, because a better price for training was received at an out-of-town conference. It was requested to adjust the Data Processing Supplies Account because the items that need to be purchased do not meet the new capitalization criteria:
From: 101-51760-709 – Data Processing Equipment - $6,600 101-51760-196 – In-Service Training - 500
To: 101-51760-411 – Data Processing Supplies - $6,600 101-51760-355 – Travel - 500
Comm. Bullen moved, seconded by Comm. Shafer to approve the budget transfer as requested.
The motion passed unanimously by roll call vote.
ARCHIVES:
County Executive Nancy Allen advised the Archives Department applied for and received a grant from the Tennessee State Library and Archives in the amount of $1,000 to be used for the acquisition of equipment, supplies and furnishings to house, keep, preserve, and make available permanently valuable records of the State of Tennessee. Approval of the following budget amendment was requested to recognize the revenue to be received from the grant and to appropriate the revenue to the Office Supplies Account:
Increase Revenue: 101-46190 – Other General Government Grants - $1,000 Increase Expend.: 101-51910-435 – Office Supplies - $1,000
Comm. Sandlin moved, seconded by Comm. Jordan to authorize the County Executive to accept the grant in the amount of $1,000 from the Tennessee State Library and Archives as requested, and to approve the budget amendment appropriating the grant revenue as requested.
The motion passed unanimously by roll call vote. Budget Minutes October 10, 2002 Page Five
HEALTH DEPARTMENT:
Mrs. Tela Bayless, Health Department Director, requested approval of the following budget amendment to allow her to employ two bilingual home visitors at a pay grade 12, step 8 to work with Spanish speaking prenatal patients. Mrs. Bayless advised this account is reimbursed 100% by the State:
Increase Revenue: 101-46310 – Health Dept. Programs - $48,657
Increase Expend.: 101-55190-131 – Medical Personnel - $36,160 101-55190-201 – Social Security - 2,242 101-55190-204 – State Retirement - 3,660 101-55190-205 – Employee & Dep. Insurance - 6,070 101-55190-212 – Employer Medicare - 525
Comm. Bullen moved, seconded by Comm. A. Johnson to approve the budget amendment for the Health Department to allow for the employment of two bilingual home visitors as requested.
The motion passed unanimously by roll call vote.
CRIMINAL COURT (DRUG COURT):
Ms. Mary Schneider, Drug Court Coordinator, requested approval of the following budget transfers to allow for the purchase of a PC projector and to add a uniform account to allow for the purchase of two polo shirts and a holster for the police liaison officer:
From: 101-53200-399 – Other Contracted Services - $5,000 101-53200-499 – Other Supplies/Materials - 70
To: 101-53200-709 – Data Processing Equipment - $5,000 101-53200-451 – Uniforms - 70
Comm. Sandlin moved, seconded by Comm. Peay to approve the budget amendment for the Drug Court for a PC projector and to add a uniform line item for the police liaison officer as requested.
The motion passed unanimously by roll call vote.
AMBULANCE SERVICE:
Mr. Mike Nunley, Ambulance Service Director, requested approval of the following budget amendments to appropriate a $300 donation from Pack’s Towing & Recovery for the Dive Team and a $100 donation from Uncle Dave Macon Days for the P.E.D.A.L. medics:
Increase Revenue: 101-44570 – Contributions & Gifts - $400
Increase Expend.: 101-55130-599 – Other Charges - $400
Comm. Bullen moved, seconded by Comm. Sandlin to approve the budget amendments to appropriate the donations for the Ambulance Service as requested.
The motion passed unanimously by roll call vote.
Mr. Mike Nunley, Ambulance Service Director, requested approval of the following budget amendment to appropriate the proceeds of a grant from the Christy-Houston Foundation in the amount of $18,200. Mr. Nunley explained the grant would allow 28 paramedics to attend advanced critical care training:
Budget Minutes October 10, 2002 Page Six
Increase Revenue: 101-48610 – Donations - $18,200
Increase Expend.: 101-55130-196 – In-Service Training - $18,200
Comm. Sandlin moved, seconded by Comm. Bullen to authorize the County Executive to execute the grant agreement from the Christy-Houston Foundation in the amount of $18,200 to allow 28 paramedics to attend advanced critical care training and to approve the budget amendment appropriating the grant revenue as requested.
The motion passed unanimously by roll call vote.
APPROVE JUVENILE ACCOUNTABILITY INCENTIVE BLOCK GRANT FOR JUVENILE COURT:
Ms. Angel McCloud, Youth Services Director, and Judge Donna Scott, Juvenile Court requested approval of the following budget amendments to appropriate the proceeds of the Juvenile Accountability Incentive Block Grant in the amount of $74,266. The grant application was approved by the Tennessee Commission on Children and Youth and will allow for the hiring of a prosecutor for juvenile court, software purchase and installation for the Juvenile Detention Center and provide funding for multiple services to delinquent offenders in Rutherford County. The grant period begins October 1, 2002 and ends September 30, 2003 and requires 10% matching funds:
Increase Revenue: 101-46980 – Other State Grants - $65,373
From: 101-58600-205 – Employee Benefits - $ 3,750 101-39000 – Undesignated Fund Balance - 2,787
Increase Expend.: 101-53600-103 – DA – Assistants - $26,110 101-53600-196 – DA – In-Service Training- 2,000 101-53600-201 – DA – Social Security - 1,620 101-53600-204 – DA - State Retirement - 2,640 101-53600-205 – DA – Employee Insurance- 3,750 101-53600-212 – DA – Employer Medicare- 380 101-53600-355 – DA – Travel - 4,000 101-53600-499 – DA – Other Supplies/Mat.- 4,000 101-53600-790 – DA – Other Equipment - 3,000 101-53910-308 – Youth Svc. – Consultants - 7,410 101-54240-411 – Juv. Det. – DP Supplies - 17,000
The Finance Director advised in the current fiscal year, the 10% matching funds is being provided from Account 101-58600-205, Employee Benefits, in the amount of $3,750 and Account 101-39000 – Undesignated Fund Balance in the amount of $2,787. He explained the budget amendment satisfies funding for the grant for this fiscal year, and the remainder of the grant and the matching funds would have to be addressed in the first quarter of the next fiscal year.
Comm. Peay moved, seconded by Comm. Sandlin to authorize the County Executive to execute the grant agreement with the Tennessee Commission on Children and Youth for the Juvenile Accountability Incentive Block Grant in the amount of $74,266 and to approve the budget amendments appropriating the grant funds as requested.
The motion passed unanimously by roll call vote.
MISCELLANEOUS:
Finance Director Paul Long requested approval of the following budget transfer to provide adequate funding for the Officials’ Bonds. He explained the amount of the bonds were
Budget Minutes October 10, 2002 Page Seven
previously approved by the County Commission, but the amount of the bonds was more than budgeted because the amount of the Trustee’s bond was more than anticipated:
From: 101-58900-506 – Liability Insurance - $3,100
To: 101-58900-508 – Premiums on Corporate Surety Bonds - $3,100
Comm. Bullen moved, seconded by Comm. Shafer to approve the budget amendment as requested to provide adequate funding for the Officials’ Bonds.
The motion passed unanimously by roll call vote.
COUNTY BUILDINGS/JAIL:
County Executive Allen requested approval of the following budget amendment, which transfers a maintenance position in the County Buildings Department to the Jail. The position has been dedicated to maintenance at the jail, and this will put the position under the jail major’s supervision. The County Executive advised that periodically the County Maintenance Department might still have to provide some backup help for the position:
From: 101-51800-167 – Maint. – Maintenance Personnel - $17,400 101-51800-201 – Maint. – Social Security - 1,080 101-51800-204 – Maint. – State Retirement - 1,760 101-51800-212 – Maint. – Employer Medicare - 253
To: 101-54210-167 – Jail – Maintenance Personnel - $17,400 101-54210-201 – Jail – Social Security - 1,080 101-54210-204 – Jail – State Retirement - 1,760 101-54210-212 – Jail – Employer Medicare - 253
Comm. Bullen moved, seconded by Comm. A. Johnson to approve the budget amendment as requested to transfer a maintenance position from the County Buildings Department to the Jail.
The motion passed unanimously by roll call vote.
SHERIFF’S DEPARTMENT:
Chief Regina Nelson requested approval of the following budget amendment to appropriate insurance proceeds for wrecked vehicles to replenish the fleet shortage:
Increase Revenue: 101-44520 – Insurance Recoveries - $49,611
From: 101-39000 – Undesignated Fund Balance - $ 3,263
Increase Expend.: 101-54110-718 – Motor Vehicles - $52,874
Chief Nelson also requested the following budget transfer to cover utilities for the Mounted Patrol:
From: 101-54110-399 – Other Contracted Services - $229
To: 101-54110-307 – Communications - $ 63 101-54110-452 – Utilities - 166
The Finance Director advised the $3,263 that was coming from the Undesignated Fund Balance represented insurance recovery money that was actually last year’s revenue but the Sheriff’s Department was unable to spend it before the end of the fiscal year.
Budget Minutes October 10, 2002 Page Eight
Following discussion, Comm. Sandlin moved, seconded by Comm. Peay to approve the budget amendment to appropriate the insurance proceeds for the Motor Vehicles Account and to transfer money for the Mounted Patrol utilities as requested.
The motion passed unanimously by roll call vote.
Sgt. Philip Martin requested approval of the following budget amendment to appropriate unexpended grant funds for the 2000-LB-BX-1680 Local Law Enforcement Block Grant in the amount of $268 and the 2001-LB-BX-3657 Local Law Enforcement Block Grant in the amount of $2,647:
From: 101-39000 – Undesignated Fund Balance - $2,915
To: 101-54110-716 – Law Enforcement Equipment - $2,915
Comm. Sandlin moved, seconded by Comm. A. Johnson to approve the budget amendment to re-appropriate the left over Local Law Enforcement Grant funds as requested.
The motion passed unanimously by roll call vote.
Sgt. Martin next advised the committee that the grant application for the 2002 Local Law Enforcement Block Grant in the amount of $44,895 had been approved. The grant requires 10% matching funds. Sgt. Martin requested approval of the following budget amendment to recognize the federal revenue to be received from the grant, requests the 10% matching funds from Undesignated Fund Balance, and appropriates the total to the various equipment line items:
Increase Revenue: 101-47250 – Law Enforcement Grants - $44,895
From: 101-39000 – Undesignated Fund Balance - $ 4,988
Increase Expend.: 101-54110-709 – Data Processing Equip. - $30,500 101-54110-719 – Office Equipment - 12,000 101-54110-716 – Law Enforcement Equip.- 7,383
Comm. Bullen moved, seconded by Comm. A. Johnson to authorize the County Executive to execute the grant agreement for the 2002 Local Law Enforcement Block Grant in the amount of $44,895 and to approve the budget amendment as requested to appropriate the grant funds to the various equipment line items.
The motion passed unanimously by roll call vote.
Sgt. Martin next advised the committee that the U. S. Department of Justice had informed the Sheriff’s Department of a COPS-In-Schools grant award in the amount of $359,199. The grant award will allow the Sheriff’s Department to hire three new, additional full-time School Resource Officers. The grant is a three-year grant and is a 100% funded grant. The grant does not include uniforms. Approval of the following budget amendment to recognize the federal revenue to be received from the grant and to appropriate the grant funds to the salary and benefit accounts:
Increase Revenue: 101-47710 – Public Safety Partnership & Community Policing – COPS - $89,235
Increase Expend.: 101-54110-106 – Deputies - $66,300 101-54110-201 – Social Security - 4,115 101-54110-204 – State Retirement - 6,705 101-54110-205 – Employee & Dep. Insurance - 11,150 101-54110-212 – Employer Medicare - 965
Budget Minutes October 10, 2002 Page Nine
Sgt. Martin advised one stipulation of the grant is that the officers must attend a COPS training school. The COPS office does not accept training from the National Association of School Resource Officers.
Sgt. Martin advised the three SRO’s would be assigned to Kittrell Elementary, Blackman Middle and Rock Springs Middle Schools.
Following discussion, Comm. Bullen moved, seconded by Comm. A. Johnson to authorize the County Executive to accept the three-year COPS-In-School grant to be funded 100% with federal funds in the amount of $359,199 and to also approve the budget amendment as requested to appropriate the grant funds for the current fiscal year.
The motion passed unanimously by roll call vote.
Sgt. Martin advised the committee that the U. S. Department of Justice had approved the grant application for the COPS Universal Hiring Program in the amount of $1,125,000. The grant award is for 15 full-time entry-level patrol officers with benefits. The grant is a 75%/25% grant the first year; 50%/50% the second year; and 25%/75% the third year. Sgt. Martin requested approval of the following budget amendment to recognize the revenue to be received from the grant and the appropriation of the grant funds to the salary and benefits line items:
Increase
Revenue:
From: 101-39000 – Undesignated Fund Balance - $ 43,070
Increase Expend.: 101-54110-106 – Deputies - $126,680 101-54110-201 – Social Security - 7,870 101-54110-204 – State Retirement - 11,210 101-54110-212 – Employer Medicare - 1,850 101-54110-205 – Employee & Dep Insurance - 24,670
Sgt. Martin advised out of all the applications that the U. S. Department of Justice received, only 24% of law enforcement agencies in the United States were funded.
Sgt. Martin advised it is the intention of the Sheriff’s Department to hire four officers in the last quarter of 2002 and four officers in the first two quarters of 2003. He stated the remaining seven officers would be hired at a later date.
Comm. Peay moved, seconded by Comm. Sandlin to authorize the County Executive to accept the three-year COPS Universal Hiring grant in the amount of $1,125,000 for 15 entry-level patrol officers with benefits; and that four officers be hired in the last quarter of 2002 and four officers be hired in the first two quarters of 2003 with the remaining seven officers to be hired next fiscal year. Further, that the budget amendment appropriating the grant proceeds to the salary and benefit line items also be approved as requested.
The motion passed unanimously by roll call vote.
REQUEST FROM LINEBAUGH LIBRARY:
Mr. George White, Chairman of the Linebaugh Library Board, was present to request funding for the library roof repair.
County Executive Allen reminded the committee that during the budget process the commission agreed to participate on a 50%/50% cost sharing basis with the City of Murfreesboro the funding of a study to determine what kinds of problems the Linebaugh Library had with regard to the roof system that was causing leaks. After completion of the study, the cost estimate was to come back to the County Commission to make a recommendation.
Budget Minutes October 10, 2002 Page Ten
The County Executive reported on the basis of the study, it is estimated the cost associated with the repairs is approximately $75,000 with an additional $16,000 for professional fees to issue the bids and oversee the project. The county’s share would be $45,500.
The County Executive advised a possible source for the funding would be the Garage Remediation Project in Fund 171, General Capital Projects. She stated there is a balance in that project of $246,432. She stated her recommendation does not mean that the Garage Remediation Project might not have to be replenished. She stated the garage remediation is still ongoing and has not been settled. She stated the county might ultimately have to replace the funds.
The County Executive advised that Linebaugh Library depended totally on the City of Murfreesboro and the County for the operation of the facility and has no resources to repair the roof.
Mr. White advised there have been problems with the roof as far back as 1993 or 1994. He explained there have been studies by this firm and others, and there has been patchwork and repairs made to these problems over the past eight years. He explained the firm of Wiss, Janney, Elstner Associates, Inc. performed a series of tests that addresses all of the problems.
Following discussion, Comm. Bullen moved, seconded by Comm. A. Johnson to approve funding $45,500 from Fund 171, Garage Remediation Project, to fund one-half the cost for the repair of the Linebaugh Library roof.
The motion passed unanimously by roll call vote.
SOLID WASTE/SANITATION FUND BUDGET AMENDMENT:
County Executive Allen requested approval of the following budget amendment to adjust the expenditures and revenue in the Litter Grant Program to coincide with the amount of the grant award approved by the Tennessee Department of Transportation:
Increase Revenue: 116-46430 – Litter Program - $12,485
Increase Expend.: 116-55720-429 – Instructional Supplies - $ 4,400 116-55720-499 – Other Supplies/Materials - 1,885 116-55720-718 – Motor Vehicles - 6,200
Comm. Bullen moved, seconded by Comm. Peay to approve the budget amendment to adjust the revenue and expenditures for the Litter Grant Program to coincide with the amount of the grant award approved by the Tennessee Department of Transportation as requested.
The motion passed unanimously by roll call vote.
SPECIAL PURPOSE FUND BUDGET AMENDMENT:
Finance Director Paul Long requested approval of the following budget amendment to provide a refund of unexpended grant funds to the Christy-Houston Foundation. Mr. Long reported last fiscal year, the Ambulance Service received a grant from the Christy-Houston Foundation in the amount of $110,357 to purchase an ambulance and a van. The vehicles cost $2,523 less than anticipated. The Christy-Houston Foundation has requested the unexpended funds be returned:
From: 121-39000 – Undesignated Fund Balance - $2,523
To: 121-55130-509 – Refunds - $2,523
Comm. Sandlin moved, seconded by Comm. Jordan to approve the budget amendment to make a refund of unexpended grant funds to the Christy-Houston Foundation in the amount of $2,523 as requested.
Budget Minutes October 10, 2002 Page Eleven
The motion passed unanimously by roll call vote.
GENERAL PURPOSE SCHOOL FUND BUDGET AMENDMENT:
Mr. Jeff Sandvig, Assistant Superintendent, advised the School Board had received an additional $1,111,000 from the State of Tennessee. At the September meeting, the School Board voted to use the remaining $822,720 of the State money to fund Instructional Materials and Supplies and Administrative Allocations thereby eliminating student fees. Mr. Sandvig requested approval of the following budget amendment:
Increase Revenue: 141-46511 – Basic Education Program - $822,720
From: 141-71100-535 – Fee Waiver - $235,310
Increase Expend.: 141-71100-429 – Instructional Materials/Supplies - $922,185 141-71100-722 – Instructional Equipment - 51,500 141-72410-599 – Other - 84,345
Comm. Bullen moved, seconded by Comm. Peay to approve the budget amendment as requested to appropriate additional State funds in the amount of $822,720 to eliminate student fees as requested.
The motion passed unanimously by roll call vote.
SCHOOL BUILDING PROGRAM AMENDMENT:
Mr. Sandvig advised when the County Commission funded the Siegel High School Project, $3.4 million was approved for furniture, equipment and technology as a lump sum. He requested approval to allocate the $3.4 million as follows:
Furniture - $1,200,000 Equipment - 800,000 Technology - 1,400,000
Comm. Bullen moved, seconded by Comm. Shafer to approve the allocation of $3.4 million for furniture, equipment, and technology for Siegel High School as requested.
The motion passed unanimously by roll call vote.
Comm. Bullen advised he has requested an Attorney General’s opinion on the legality of the student fees.
RECOMMENDATION TO PROVIDE FUNDING FOR GEO-TECHNICAL STUDY ON THE GOODLOE PROPERTY:
Mr. Sandvig advised the School Board has requested, and the Health & Education Committee has recommended that $30,000 be amended from the Siegel Middle School technology budget for preliminary geo-technical testing on the 114.6 acres in La Vergne on the Goodloe Property to determine if the land would be appropriate for one or more schools.
Comm. Bullen moved, seconded by Comm. Shafer to approve the transfer of $30,000 from the Siegel Middle School technology budget to provide funding for preliminary geo-technical testing on the 114.6 acre Goodloe Property in La Vergne to determine if the land would be appropriate for one or more schools.
The motion passed unanimously by roll call vote.
Budget Minutes October 10, 2002 Page Twelve
Mr. Tommy Sanford, Assessor of Property, addressed the committee requesting three personnel changes.
Mr. Sanford advised Position 1260 is a vacant Appraiser I. He has an applicant that is a licensed appraiser with 15 years of experience. Mr. Sanford requested that the position be upgraded from an Appraiser I, pay grade 14, step 3 to an Appraiser III, pay grade 26, step 3.
Mr. Sanford advised he had an Appraiser I who has passed part of the requirements for certification by the Tennessee Division of Property Assessments. He stated he would like to reward the employee with a one step increase. Mr. Sanford requested that Position 1261 be upgraded from a pay grade 14, step 3 to a pay grade 14, step 4.
Mr. Sanford next advised he had an Appraiser II who has passed all the requirements for certification by the Tennessee Division of Property Assessments. He explained his policy has been to reward this accomplishment with a 2-step increase. Mr. Sanford requested that Position 1729 be upgraded from pay grade 18, step 1 to a pay grade 18, step 3.
Mr. Sanford advised he was not requesting any additional funds at this time. He stated he typically has money remaining at the end of the year, and he believed he would have enough money to transfer to the accounts, if necessary. However, if that is not the case, he wanted the committee to be aware of the situation.
The Finance Director stated it appeared it would take an estimated $13,000 additional this year, primarily because of the big adjustment to Position 1260.
Comm. Jordan noted if Position 1260 had been vacant for some time, that would have created some savings.
Following discussion, Comm. Bullen moved, seconded by Comm. Shafer to approve the request of the Assessor of Property to upgrade Position 1260 from an Appraiser I (pay grade 14, step 3) to an Appraiser III (pay grade 26, step 3); to increase Position 1261 from pay grade 14, step 3 to pay grade 14, step 4; and to increase Position 1729 from pay grade 18, step 1 to pay grade 18, step 3.
Comm. Sandlin expressed his concern about approving the position changes so soon after the budget had been adopted.
Mr. Sanford advised at that time, the employee in Position 1729 had not received the certification, and he did not know if the employee would receive it.
Comm. Peay stated during the budget process, several departments requested step increases and pay improvements, and none of them were approved. He stated he would vote for the position changes as requested, because the Assessor has stated he will find the additional money within his budget.
Mr. Sanford stated he would try to do that, if necessary.
The Finance Director advised ordinarily when the budget is adopted, a list of funded positions by department is submitted for approval. He stated the list has not been submitted for approval. He explained at some point in time, the change would need to be made to the list, and the entire list would need to be submitted for approval.
Comm. Sandlin stated he believed the list needed to be adjusted and then submitted for approval.
Mr. Long stated he would adjust the list and submit it to the Budget Committee at the November meeting for approval
Budget Minutes October 10, 2002 Page Thirteen
Following discussion, the motion to approve the position changes for Positions 1260, 1261 and 1729 as requested passed unanimously by roll call vote.
APPROVE GRANT AGREEMENT WITH REGIONAL TRANSPORTATION AUTHORITY:
A Grant Agreement between Rutherford County and the Regional Transportation Authority for participation in the Relax and Ride Program in the amount of $20,000 was presented to the committee for approval.
The Finance Director advised the $20,000 was already included in the 2002-03 budget, and the committee needed to authorize the County Executive to execute the contract.
Comm. Sandlin moved, seconded by Comm. A. Johnson to authorize the County Executive to execute the Grant Agreement between Rutherford County and the Regional Transportation Authority in the amount of $20,000 for the Relax and Ride Program.
The motion passed unanimously by roll call vote.
OTHER BUSINESS
ANIMAL SHELTER PROPERTY:
Comm. A. Johnson asked what was the total amount of money for the Animal Shelter site?
The Finance Director advised the project was funded in total, and that bonds were issued for $1.7 million.
Comm. A. Johnson stated he thought the commission had authorized $200,000 for the property, but the sale price on the contract was $212,000.
TENNESSEE COUNTY SERVICES LOAN PROGRAM:
Comm. Bullen stated there was something he would like the committee to discuss at the next meeting. He stated at the meeting with the Tennessee County Services Association, their loan program was emphasized. He stated he would like to know if Rutherford County had ever used that program very much.
The Finance Director stated Rutherford County had never used that program. He stated there might or might not be an advantage to using the program. He stated it depended on if the rate went up. He stated all their proposal is going to do is say if the rate for the next 20 years performs as good as it did the last 20 years, there would be a benefit.
Mr. Long stated he is not saying the county should never consider it, but there are more alternatives to variable financing than just TCSA.
Comm. Bullen asked if it would be advantageous on short-term borrowing?
The Finance Director advised the TCSA loan program had a seven-day re-marketable rate. He stated the rate changes every week. He stated that is volatile. He stated that before the county goes to the bond market the next time, the county’s financial advisor could come to discuss the matter with the committee.
Comm. Peay stated he would like more information about the variable rate financing.
HUMAN RESOURCE DIRECTOR:
Comm. Ealy asked the Finance Director for an update on advertising for the Human Resource Director.
Budget Minutes October 10, 2002 Page Fourteen
Mr. Long advised the advertisement should be in the Sunday and Wednesday Tennessean, and it should be in the next two Sunday Daily News Journals. The deadline for submission is November 4.
Mr. Long reported he could not make the deadline publication for the national magazine, but they do have an on-line program where it can be listed for 30 days.
ADJOURNMENT:
There being no further business to be presented at this time, Chairman Ealy declared the meeting adjourned at 8:05 P.M.
____________________________________ Elaine Cawthon, Secretary
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