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BUDGET, FINANCE & INVESTMENT COMMITTEE
November 7, 2002 6:00 P.M. Courthouse
MINUTES:
Members Present: Others Present: Others Present: Others Present: Comm. Bob Bullen Nancy Allen William Beeler Jim Bolinger Comm. Anthony Johnson Evans Maples Bo Simpson Bob Gamper Comm. Will Jordan Comm. Joe F. Jernigan Susan Boney Chad Hill Comm. Robert Peay Tommy Smith Steve Smith Beth Blasingame-Cooke Comm. Steve Sandlin Mark Herbison Alan Miller Comm. Doug Shafer Chuck Phillips Truman Jones Bryan Brooks Comm. Joyce Ealy, Chair. Andi Brownell Regina Nelson Paul Long Jeff Oldham Hulon Watson Elaine Cawthon Bob Shupe Jeff Sandvig
Chairman Ealy presided and called the meeting to order with all members being present.
APPROVE MINUTES:
The minutes of the October 10, 2002 Budget Committee Meeting were presented for approval.
Chairman Ealy noted a correction needed to be made to Page 7 under Sheriff’s Department Budget Amendments. Account 101-54110-452, Utilities - $166 should be changed to Account 101-54210-452, Utilities.
Comm. A. Johnson moved, seconded by Comm. Shafer to approve the minutes of October 10, 2002 as corrected.
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 the LGIP interest rate for the month was 1.87%. He advised that interest rates had dropped 50 basis points yesterday, and that next month this rate would probably be less. He explained the investment transactions that occurred during the month.
Comm. Bullen questioned why a matured investment of $3,000,000 would be reinvested at SunTrust Bank with an interest rate of 1.58% if an interest rate could be received at LGIP for 1.87%.
Mr. Maples advised he did not know the interest rate earned at LGIP until the end of the month, and that next month the interest rate at LGIP might not be 1.58%.
Following discussion, Comm. Sandlin moved, seconded by Comm. A. Johnson to approve the monthly Investment Report as presented.
The motion passed unanimously by acclamation.
FUND CONDITION REPORT:
Finance Director Paul Long presented the Fund Condition Report for the month ending October 31, 2002 for the use and information of the committee.
Mr. Long advised the Development Tax collections for the month were $281,250. The year-to-date collections were $1,371,000.
Budget Minutes November 7, 2002 Page Two
Mr. Long reviewed the fund cash balances as compared to last year. The cash balance in the Employee Insurance Fund is $838,659 compared to $1,958,557 in October, 2001. Mr. Long advised in October, 2001 $1.5 million was borrowed from the General Fund to provide cash flow for the health insurance program.
As of October, 2002, $1,000,000 has been borrowed from the General Fund for cash flow. The current cash balance of $838,659 is below the $1,000,000 that has been borrowed.
He advised this would be addressed later in the meeting.
The total cash balances at the end of October were $93,477,514 with operating funds being $60,557,093 and borrowed funds being $32,920,421.
The Finance Director advised there were no other unusual conditions to report at this time.
Comm. Bullen asked with the lowering of the interest rates, if there were any outstanding bond issues that could be refinanced.
The Finance Director advised he would talk to the financial advisors and get them to look at that, but he believed they kept a close watch on that situation.
The committee reviewed the cash balances of Wilson Elementary and Blackman Elementary.
Mr. Long advised some building program budget amendments were being presented later in the meeting that might address some of the balances.
Following review, Comm. Sandlin moved, seconded by Comm. A. Johnson to approve the Fund Condition Report as presented.
The motion passed unanimously by acclamation.
RESOLUTION APPROVING THE FINANCING BY THE INDUSTRIAL DEVELOPMENT BOARD FOR SOUTHERN CONTAINER CORPORATION:
Mr. Tommy Smith, Chairman Industrial Development Board, introduced Mr. Mark Herbison, the new Economic Development Director with the Chamber of Commerce, Mr. Jeff Oldham, counsel for Southern Container, Corp., and Ms. Andi Brownell, Ernst & Young, LLP, who is working with Mr. Chuck Phillips, Manager of Pillsbury, Co.
Mr. Smith advised Southern Container is a corrugated container company that makes corrugated boxes. It was founded in 1946. It is a private company, and many of the original owners are still there and operate this company. They have eight other corrugated box plants, and they virtually make their own cardboard. They have their own pulp mill. They ship the pulp from that plant into their other box companies. They have box companies located in Charlotte, Boston, Spartanburg, Long Island, New Jersey, Syracuse, and Pennsylvania.
Mr. Smith informed the committee the IDB is in competition with two other communities for this company. He stated they would not know if Rutherford County would be the chosen site until the Inducement Agreement is completed, presented to Southern Container, and then they will finish their feasibility study.
Mr. Smith reported Southern Container would be purchasing 35 acres and building 250,000 square feet in the first phase. There will be a second phase plan that will have 100,000 square feet. There will be a land and building value of approximately $7.5 million, and the equipment that will go into the corrugated box plant will be approximately $25 million. They will employ approximately 100 people in the first phase, and 50 people in the second phase. The average wage should be $35,000 per year with full benefits. The $35,000 average wage includes top management, supervision, office management, maintenance skilled personnel, and material handlers.
Budget Minutes November 7, 2002 Page Three
Comm. Peay asked if the company did any recycling.
Mr. Smith advised they do not recycle. He stated any cardboard that is left over is sold to other companies.
Comm. Sandlin asked Mr. Smith to refer to Exhibit A, which dealt with the payment-in-lieu of tax structure. He stated in years 2003 and 2004, which is the construction period, the company would be paying taxes on the land only. In 2003-2005, there would be no taxes on personal property, and in 2006 the personal property would be taxed at 20%.
Mr. Smith advised this property is located in the greenbelt. He explained the greenbelt is probably not paying $1,000 per year. He stated Southern Container has agreed that when they purchase the land, it will go on the tax rolls immediately. He stated it is believed the taxes would then be about $21,500 annually. He stated that would remain the same for year one and two. Then by that time, the plant would be under construction, and they would be taxed on that at 50%. The fourth year, it would be 70%, and the fifth year 85%. After that it will be as if there is no incentive at all.
Mr. Smith advised Southern Container would be investing $35,000,000 in the company here.
Comm. Shafer asked of the 100 employees, how many would Southern Container be bringing in and how many would be actively recruited here?
Mr. Smith reported Southern Container would be bringing the General Manager. He stated if they could not find the skilled middle managers they need, they would be bringing those positions also. He stated the other jobs would be hired initially from Rutherford County, and if the personnel were not available to operate the plant they would have to look outside of Rutherford County.
Comm. Peay asked if at the end of the term of the contract, the company decided they wanted to close or relocate, what would happen at that time?
Mr. Smith stated the company would have a right to do that. He stated at that time the company would be on the tax rolls 100%.
The Finance Director asked on the real property, if 70% of the taxes are paid on that year’s tax rate, if the Property Assessor would determine the assessed value?
Mr. Smith advised that was correct. He stated this is not a bond issue, as such. He advised the Property Assessor would assess this property. He stated the Property Assessor would assess the property on the front-end. He stated as part of the incentive program, the property is held at that rate throughout the term of the agreement. He stated if there was a reappraisal, and the property tax rate went down, the property taxes could not go down as a result of the reappraisal.
Mr. Long advised the agreement with Southern Container does not include that language. He advised in a discussion with Mr. Sellers, it was the intent for the language regarding a reappraisal to be included.
Mr. Long advised most of the in-lieu-of-tax agreements, with the exception of Nissan, establish a fixed dollar assessed valuation for the life of the agreement. He stated the assessment is not an issue, but what resulted is when the property tax rate went down, the in-lieu-of-tax payment goes down. He stated they are trying to make sure there is some protection from that in the in-lieu-of-tax agreements.
Mr. Smith advised the agreement should include the language regarding the reappraisal.
Mr. Smith advised the company is environmentally clean.
Mr. Long stated on this particular agreement, 2006 would be a reappraisal year. He asked in 2007, would the taxes be paid on the reappraisal value or would it be locked in at the original 2005 value. He stated that needed to be clarified before the County Commission meeting.
Budget Minutes November 7, 2002 Page Four
Following discussion, Comm. Peay moved, seconded by Comm. Sandlin to approve the resolution approving the financing by the Industrial Development Board for the issuance of revenue bonds in an amount not to exceed $35,000,000 for Southern Container Corporation and forward the same to the full County Commission contingent upon approval of the language relative to the assessment and reappraisal by the County Attorney and the Property Assessor.
The motion passed unanimously by roll call vote.
RESOLUTION APPROVING THE FINANCING BY THE INDUSTRIAL DEVELOPMENT BOARD FOR GENERAL MILLS OPERATIONS, INC.
Mr. Smith introduced Mr. Chuck Phillips, General Manager of the Pillsbury plant.
Mr. Phillips advised approximately 1½ years ago a merger began with the Pillsbury parent company between General Mills and Pillsbury. General Mills was going to purchase the assets of Pillsbury; however there was some overlapping. They were instructed to spin off a portion of one of the companies. Concurrent with that, the General Mills Company, including the Pillsbury assets is landscaping the entire capabilities of both companies. As a result, they are in final consideration of some opportunities that are substantial in nature and substantial in employment opportunities.
Mr. Phillips advised the IDB has been very helpful, as well as the State with training dollars to be made available. He advised their hourly employees would average approximately $35,000 per year.
Mr. Smith advised, assuming the IDB is successful, that General Mills would be making a new investment of between $115,000,000 to $125,000,000 in this plant. He stated there would be in excess of 700 employees when the plant is completed.
County Executive Allen commented on the second paragraph in Exhibit A, which states the company would maintain an employment of 700 employees. If that level cannot be maintained, the incentives set out in the Inducement Contract will be prorated based on the lower employment base of 550 employees. Should the employment reach the 550 job level, the Inducement Contract will cancel and the property will go on the tax roll as if privately owned.
Mr. Smith stated it has been his experience that food plants continue to remain viable even if there is a recession. He stated people continue to buy food products.
The Finance Director stated he believed there should be some clarification with the Property Assessor relative to the reappraisal issue.
Following discussion, Comm. Bullen moved, seconded by Sandlin to approve the resolution approving the financing by the Industrial Development Board for the issuance of revenue bonds in an amount not to exceed $116,000,000 with General Mills Operations, Inc. contingent upon clarification from the Property Assessor relative to the assessed valuation.
The Finance Director stated it is a good proposal. He stated the last phrase in Exhibit A states the subject property will not be subject to the four-year state re-appraisal. He stated this should be clarified with the Property Assessor to see what impact this will have. He stated it could be revised to say until year eight.
The Finance Director stated on the last page, which explained the personal property, that the County Attorney has recommended to add a statement that says that after 2009, the personal property will be assessed in accordance with State law.
Mr. Smith advised these changes would be made for the County Commission meeting on November 14.
Following discussion, the motion to approve the resolution approving the financing by the IDB in the amount of $116,000,000 for General Mills, Inc. contingent upon clarification from the Property Assessor relative to the assessed valuation passed unanimously by roll call vote.
Budget Minutes November 7, 2002 Page Five
APPROVAL OF THREE-TIER DRUG CARD FOR EMPLOYEE HEALTH INSURANCE:
Mr. Bob Shupe, Employee Security Planning, advised the Insurance Committee met recently and has made a recommendation regarding the drug program, which is an integral part of the employee benefits program.
Mr. Shupe provided information for the use of the committee regarding the monthly aggregate claim report, which projected that total claims cost this year, could be approximately $14,479,740. He advised last year that the claims cost was approximately $12 to $13 million.
Mr. Shupe explained the cost for name brand drugs was approximately $1.9 million, and the cost for generic brands was $175,326. Mr. Shupe advised there is approximately $700,000 worth of drug costs that are not going through the drug discount card. He stated this is costing the county, as well as the employee, money. He advised that for six months of 2002, $1,052,695 has been paid for brand name drugs, and $133,484 has been paid for generic drugs. He stated there is a considerable amount of drugs that are not receiving discounts.
Mr. Shupe advised he recommended to the Insurance Committee that the county consider changing from the current process of having an identification card that the employee presents to the pharmacy, which only gives the employee a discount on the drugs. He explained the employees currently have a two-tier drug plan, which is a generic and a name brand. There is one discount for generic and another for name brand.
Mr. Shupe advised he is recommending that the county change to a three-tier drug plan, and it be a traditional drug card.
He advised currently the employee has to pay for the drugs up front in most cases, and then submit the claim and be reimbursed from the insurance after deductible and co-insurance. He explained with a traditional drug card, the employee would present the drug card to the pharmacy. The employee will pay a set amount (co-payment) to the pharmacy, and then they are through. The employee will not have to file any claims. It will all be taken care of at the pharmacy.
Mr. Shupe advised this would simplify the administration of the program, and it would guarantee that the employee would get discounts on every drug prescription that is submitted. He advised if the employee does not show the drug card, they would have to pay 100% of the drug. He stated it could not be filed on the medical insurance.
Mr. Shupe advised the Beeler Company issued a bid to a number of pharmacy benefit programs. He explained Advance PCS was selected as the pharmacy benefit management company that they would recommend to their clients. He stated Advance PCS has three networks that they use. He stated he is recommending the middle tier, which is more liberal and there are more drugs on the list.
Mr. Shupe explained all generic drugs are covered 100%. He stated the most concern is with name-brand drugs.
Mr. Beeler stated the employee would pay nothing on a generic drug, 20% on the preferred name-brand drugs, and 35% on the non-preferred name brand drugs.
Mr. Beeler provided information to the committee regarding the alternative co-pay scenario for Rutherford County employees. He reported that from July 1, 2001 through March 31, 2002, the county’s total cost relative to drug claims was $728,400. He explained these only represent the drugs that were utilized by the discount drug program. He stated he has estimated that only 65% of prescriptions filled by employees used the discount drug program. He stated the other prescriptions did not use the discount drug program, and they were billed through the plan. He explained they had to be honored, because there were no stipulations.
Budget Minutes November 7, 2002 Page Six
Mr. Beeler explained with the drug card program, there are no options. He stated the prescriptions have to go through the pharmacy benefit management plan company to obtain the discounts, or the drugs will not be reimbursed.
Mr. Beeler reported every pharmacy in Tennessee is in the program, unless it is a small pharmacy that does not have a computer. He stated Advance PCS has the largest network in the United States. He explained every employee would receive a list of drugs that they can take to their pharmacy and doctor.
There was discussion regarding the list of drugs provided. Mr. Shupe advised he would organize a conference call between himself, Mr. Beeler, Advance PCS, and the county to analyze the list of drugs.
Mr. Beeler clarified that employees would not pay a $250 deductible on medical and another $250 deductible on prescriptions.
The Finance Director asked Mr. Shupe and Mr. Beeler, if on the analysis they have done, if the three-tier drug card program would save the county money?
Mr. Beeler advised he estimated the drug card program would save the county between $125,000 and $200,000 over the next 12 months because the 35% of prescriptions that are not going through the discount card program now, will go through the discount card program. He stated there would be additional savings, because the county would be receiving higher discounts and lower administrative costs.
Following review and discussion, Comm. Bullen moved, seconded by Comm. A. Johnson to approve the three-tier drug card program for the employee health insurance with employees paying co-payments of 0% for generic drugs, 20% for name-brand drugs, and 35% for non-preferred name-brand drugs.
Comm. Shafer asked about mail-order prescriptions. Mr. Beeler advised the plan does not currently cover mail-order prescriptions, but this program would allow for that.
Mr. Beeler advised if the County Commission approves the recommendation, the three-tier drug card would be available by January 1, 2003.
Following discussion, the motion to approve the three-tier drug card program for the employee health insurance with the employee paying co-payments of 0% for generic drugs, 20% of name-brand drugs, and 35% for non-preferred name-brand drugs passed unanimously by roll call vote.
RECOMMENDATION TO RE-BID HEALTH AND LIFE INSURANCE IN 2003:
Mr. Shupe advised the county re-bids the health and life insurance on a three-year cycle, and the recommendation was to re-bid the insurance with an effective date of July 1, 2003.
Comm. Bullen moved, seconded by Comm. Shafer to approve the recommendation of the Insurance Committee to re-bid the health and life insurance with an effective date of July 1, 2003.
The motion passed unanimously by roll call vote.
RENEW PROPERTY & CASUALTY INSURANCE IN 2003:
Mr. Shupe advised the Insurance Committee has recommended to authorize Mr. Shupe to negotiate the renewal of the property & casualty insurance with the current carrier with an effective date of July 1, 2003.
Mr. Shupe advised this is not the third year of the cycle, and therefore the Insurance Committee recommended negotiating the renewal. He clarified it is not really with the current carrier. He explained the property & casualty insurance was awarded to an agency, Miller & Loughry Insurance Services, who places it with a carrier. He stated Miller & Loughry could place the insurance with another carrier, if they are not satisfied with the negotiations.
Budget Minutes November 7, 2002 Page Seven
Comm. Bullen moved, seconded by Comm. Peay to approve the recommendation of the insurance committee to authorize Mr. Shupe to negotiate the renewal for the property and casualty insurance with the current agency of Miller & Loughry Insurance Services with an effective date of July 1, 2003.
The motion passed unanimously by roll call vote.
RECOMMENDATION TO INCREASE HEALTH INSURANCE CONTRIBUTIONS EFFECTIVE JANUARY 1, 2003:
The committee was provided a schedule of insurance contributions for the General Fund, Road & Bridge Fund, Solid Waste/Sanitation Fund, Drug Control Fund, and Special Purpose Fund.
Mr. Long advised the schedule was developed during the budget process. He explained a long-range study was done, which indicated total contributions to the health insurance program would need to be increased 10% each year for the next two to three years.
Mr. Long advised the schedule reflects a 10% increase in the total contribution at each level for an individual plan, family plan, and two-employee plan. Mr. Long advised it was previously recommended that for an individual plan, the employee pay 10% of the premium. For a family plan, it was recommended the employee pay 20% of the premium. For a two-family plan, it was recommended the employee pay 10% of the premium. He stated this goal is trying to be reached without decreasing the amount that a family pays for that coverage.
Mr. Long advised over the last six months of this fiscal year, the increase to the premiums would increase the revenue for the Employee Insurance Fund approximately $715,000. He advised that the increase for the employer share has already been included in the current fiscal year budget.
Following review, Comm. Bullen moved, seconded by Comm. Sandlin to approve the increase to the employee health insurance contributions by 10% with the total for an individual plan being $324.66 with the employee paying 10% or $32.46; the total for a family plan being $602.61 with the employee paying 21% or $124.50; and the total for the two-family plan being $602.61 with the employee paying 10% or $62.25.
The motion passed unanimously by roll call vote.
APPROVE LEASE AGREEMENT WITH BFI FOR RELOCATION OF WALTER HILL CONVENIENCE CENTER:
County Executive Allen advised the Walter Hill convenience center had to be relocated, because the bridge is being widened. She explained she contacted the BFI Landfill to discuss with them the possibility of relocating the convenience center. She advised BFI has offered to lease 1.1 acres to the county for the convenience center at $1 per year for a ten-year lease with the option to renew and to spend up to $80,000 to construct the convenience center. Tommy Brown will oversee the project.
County Executive Allen advised that the county attorney has been working with BFI on the lease agreement and it would be finalized by the County Commission meeting on November 14.
Following discussion, Comm. Sandlin moved, seconded by Comm. Jordan to approve the ten-year lease with BFI for $1 per year for the relocation of the Walter Hill Convenience Center contingent upon the County Attorney approval and forward the same to the full County Commission.
The motion passed unanimously by roll call vote.
APPROVE CONTRACT WITH WISER COMPANY FOR DEVELOPMENT OF BEST MANAGEMENT PRACTICE MANUAL FOR STORM WATER MANAGEMENT:
County Executive Allen advised relative to the Storm Water Management Regulations, Phase I had been completed and there is an action plan. She stated the county must move on to Phase II of the process.
Budget Minutes November 7, 2002 Page Eight
The County Executive advised to satisfy the obligation of the Phase II Permit the county would need the engineering team to develop a Best Management Practice Manual. The BMP Manual will give a brief introduction into the storm water BMPs, the theory of erosion control, the steps in selecting which BMPs to use, and a series of fact sheets for each type of BMP.
The County Executive requested the committee authorize her to execute a contract with the Wiser Company to utilize the team for the task of developing a BMP Manual. She stated this would extend the existing contract with the three companies that provide the service: Wiser Company, LLC, Huddleston-Steele Engineering, Inc., and SEC, Inc.
She advised the money to complete Phase II has already been included in the current fiscal year budget. The estimated cost to develop the BMP Manual is $25,000.
Comm. Bullen moved, seconded by Comm. A. Johnson to approve the development of the Best Management Practice Manual utilizing the team of Wiser Company, LLC; Huddleston-Steele Engineering, Inc., and SEC, Inc. and to authorize the County Executive to execute the contract with Wiser Company, LLC to extend the services to be provided for the same and forward to the full County Commission.
The motion passed unanimously by roll call vote.
EMERGENCY MANAGEMENT:
Mr. Steve Smith, Emergency Management Director, requested approval of the following budget transfer to reclassify expenditures relating to the FY00 and FY01 Domestic Preparedness Equipment Program Grants. It has been determined that all of the equipment being purchased does not meet the capitalization threshold for capital purchases and would be better classified under Other Supplies and Materials:
From: 101-54430-790 – Other Equipment - $13,300 To: 101-54430-499 – Other Supplies/Materials - $13,300
Comm. Sandlin moved, seconded by Comm. Peay to approve the budget transfer as requested.
The motion passed unanimously by roll call vote.
CORRECTIONAL WORK CENTER:
Mr. Alan Miller, Correctional Work Center Superintendent, requested approval of the following budget transfer to allow for the lease of a dish sanitizing machine for the kitchen.
From: 101-54220-710 – Food Service Equipment - $2,000 To: 101-54220-399 – Other Contracted Service - $2,000
Comm. Peay moved, seconded by Comm. A. Johnson to approve the budget transfer as requested.
The motion passed unanimously by roll call vote.
MISCELLANEOUS:
Finance Director Paul Long requested approval of the following budget transfer due to the fact an invoice has been received from the insurance provider adding 62 vehicles to the county’s insurance. The amount of the invoice is $34,045, but there is some money available in the line item:
From: 101-58900-505 – Judgments - $15,620 To: 101-58900-506 – Liability Insurance - $15,620
Budget Minutes November 7, 2002 Page Nine
Comm. Bullen moved, seconded by Comm. A. Johnson to approve the budget transfer as requested.
The motion passed unanimously by roll call vote.
OTHER ECONOMIC & COMMUNITY DEVELOPMENT:
The Finance Director requested approval of the following budget amendment to revise the amount of revenue to be received from the 2001 HOME Program Grant and the related expenditures. Mr. Long advised in 2001 the county entered into a grant agreement with the State through the Community Development Program for some home renovations. Mr. Long advised the total amount of the grant is $402,166. Four projects have been approved for a total of $266,800. Each of the projects includes the demolition of the existing housing and the new construction of stick-built housing. THDA has approved the reconstruction of these homes. Mr. Long advised this is a 100% flow-through grant from the State:
Increase Revenue: 101-47180 – Community Development - $76,300 Increase Expend.: 101-58190-399 – Other Contracted Svc. - $76,300
Comm. Peay moved, seconded by Comm. Sandlin to approve the budget amendment as requested to revise the amount of the 2001 HOME Program Grant for the reconstruction of the approved four homes.
The motion passed unanimously by roll call vote.
SHERIFF’S DEPARTMENT:
Chief Deputy Regina Nelson, Sheriff’s Department, requested approval of the following budget transfers to establish a new line item for Maintenance Agreements in the Sheriff’s Office for a maintenance agreement on the Lektriever system and a Printing, Stationery and Forms line item in the Detention budget:
From: 101-54110-336 – Repair/Maintenance Equipment - $381 To: 101-54110-334 – Maintenance Agreements - $381
From: 101-54110-435 – Office Supplies - $500 To: 101-54210-349 – Printing, Stationery & Forms - $500
Comm. Sandlin moved, seconded by Comm. Jordan to approve the budget transfers as requested.
The motion passed unanimously by roll call vote.
Chief Nelson advised the Sheriff’s Department had requested approval of a budget amendment for $38,400 at the Public Safety Committee to purchase equipment for the eight new grant officers. The Public Safety Committee had approved the request and forwarded it to the Budget Committee. However, after a discussion with Chairman Ealy, the Sheriff’s Department has agreed to defer this request until later in the fiscal year, and will utilize money that is currently in the budget to purchase the equipment. She stated if and when the money is needed, the Sheriff’s Department would request it later in the year.
Chief Nelson requested approval of the following budget amendment to appropriate money recovered from fines and insurance proceeds for an undercover car that was burglarized to the confidential drug enforcement account:
Increase Revenue: 122-42910 – Proceeds from Confiscated Property - $ 500 122-44520 – Insurance Recoveries - 3,810
Increase Expend.: 122-54150-319 – Confidential Drug Enforcement - $4,310
Comm. Bullen moved, seconded by Comm. Sandlin to approve the budget amendment for the Confidential Drug Enforcement as requested.
Budget Minutes November 7,2002 Page Ten
The motion passed unanimously by roll call vote.
Chief Nelson requested approval of the following budget amendment to provide additional funding for the software programmer for the Sheriff’s Office. The programmer is currently at the Sheriff’s Office two days a month, and due to the programming requests he is needed on site more often. She also requested approval of a budget transfer to cover the costs of newsletters and bulletins:
From: 101-39000 – Undesignated Fund Balance - $12,000 To: 101-54110-317 – Data Processing Services - $12,000
From: 101-54210-437 – Periodicals - $ 220 To: 101-54210-320 – Dues & Memberships - $ 220
Comm. Sandlin moved, seconded by Comm. Peay to approve the budget amendment for $12,000 for software programming and $220 for newsletters and bulletins for Detention.
The motion passed unanimously by roll call vote.
Chief Nelson requested approval of the following budget transfer to establish a Maintenance & Repair of Vehicle line item in the Drug Control Fund:
From: 122-54150-319 – Confidential Drug Enforcement - $11,200 To: 122-54150-338 – Maintenance/Repair Vehicles - $11,200
Comm. Peay moved, seconded by Comm. A. Johnson to approve the budget transfer as requested.
The motion passed unanimously by roll call vote.
Chief Nelson requested approval of the following budget amendment to appropriate the Law Enforcement Training Program money to salary supplements for those officers who are certified through the Law Enforcement Training Academy. The original amendment that was approved by the Public Safety Committee also included $14,075 from the Undesignated Fund Balance for the related benefits. Chief Nelson advised they are not requesting the $14,075 at this time with the understanding if the benefit line items run short, they will come back later in the fiscal year:
Increase Revenue: 101-46210 – Law Enforcement Training Program - $79,200 Increase Expend.: 101-54110-140 – Salary Supplements - $79,200
Comm. Peay moved, seconded by Comm. A. Johnson to approve the budget amendment for $79,200 for salary supplements for the Law Enforcement Training as requested.
The motion passed unanimously by roll call vote.
SOLID WASTE/SANITATION FUND BUDGET AMENDMENT:
Finance Director Paul Long requested approval of the following budget amendment for the Solid Waste/Sanitation Fund to provide funding for an additional premium for an auto endorsement adding vehicles to the insurance. Mr. Long advised there was not a line item within the Solid Waste Fund to transfer the money; however, this fund was relatively balanced when the budget was adopted:
From: 116-39000 – Undesignated Fund Balance - $1,260 To: 116-58900-506 – Liability Insurance - $1,260
Comm. Sandlin moved, seconded by Comm. Peay to approve the budget amendment for the additional auto premium as requested.
The motion passed unanimously by roll call vote.
Budget Minutes November 7, 2002 Page Eleven
UPDATE ON GOODLOE PROPERTY:
Mr. Watson advised the committee the geo-technical testing on the Goodloe property has been completed, and the property is suitable to build three schools. He advised this would be forthcoming through the process.
RECOMMENDATION FOR SIEGEL HIGH SCHOOL BALL FIELDS & STADIUM:
Mr. Watson advised the School Board had approved a request for an additional $1,000,000 to fund the Siegel High School ball fields ($500,000) and the balance of the stadium ($500,000).
The Health & Education Committee approved $500,000 and has forwarded the recommendation to the Budget Committee.
Mr. Watson advised the $1.6 million that was previously approved for the Siegel High School stadium complex was based on Oakland and Riverdale, which was not an accurate comparison. He stated this is not in comparison to what Blackman High School’s cost, because they are constructing all of the facilities. He stated Oakland and Riverdale already had some of those facilities. He stated the stadium complex could not be built for $1.6 million. He requested the approval of the additional $500,000.
Comm. A. Johnson asked what was the location for the stadium at this time?
Mr. Watson advised the Board had approved site “A”. He stated the Board adopted a motion for Mr. Watson to look at the site again, and he recommended site “B”. However, that was never voted on. As far as a vote by the Board, the location is still site “A”.
Comm. A. Johnson stated he knew the law stated the commission could not tell the School Board to build and how to build, but he would have to vote against the recommendation. He stated it had been through the City Planning Department, and they have recommended site “B”. He stated until the School Board decides to build the stadium on site “B”, he would not vote to fund the request.
Comm. Bullen stated he would like to keep this item moving without causing a conflict. He stated the consensus of the Health & Education Committee was site “B” as the site they preferred. He stated the Health and Education Committee was trying to keep the stadium issue moving forward with a request that the School Board review site “B” again. He stated he believed there was a possibility that site “B” might be approved. He stated he would like to have some motion that would send the issue on to the commission, subject to the School Board reviewing site “B” again. He stated he did not want to cause a conflict with the School Board, but there was nothing that said the commission had to build the stadiums. He stated he did not want to delay it another month.
Finance Director Paul Long suggested that maybe the additional funding could be approved contingent upon a site being selected that is agreeable to the City’s Board of Zoning Appeals.
Comm. Jordan stated the city has already spoken.
The Finance Director stated this would allow the city to appeal to the School Board to reconsider site “A”. He stated the county is trying to word the recommendation without telling the School Board where they have to locate the facility.
Comm. Shafer stated the School Board has stated they do not have to go through the BZA. He stated the point is this was discussed at Health & Education on October 21, and the School Board has met since then. He stated all that resulted from that is that it is going to be on the School Board’s agenda for discussion on November 14. He stated anything could happen, and the School Board could turn down site “A” and decide on site “B”.
Comm. Bullen asked if the committee would be agreeable to forwarding the additional funding for the stadium to the commission contingent upon the School Board reviewing the site selection, and should site “B” be selected the additional funding would be approved and if not, the commission reserved the right to withhold the funding for further review? Budget Minutes November 7, 2002 Page Twelve
Comm. A. Johnson stated any reference the commission made toward a site was in violation of the law that the county was defeated in court. He stated he believed the only way they could turn down the site would be to not approve the additional funding request. He stated the School Board would know why the request was turned down, and they would not have to put it in writing.
Comm. Shafer stated it is the School Board’s ultimate decision as to where the stadium is located. He stated the Health & Education Committee has already strongly recommended that the School Board choose the site that is further away from the neighborhood. He stated if it is moved closer to Thompson Lane, someone else may complain.
Comm. Bullen asked Mr. Watson if the funding was turned down, and the School Board voted to accept site “B”, what a one-month delay would mean?
Mr. Watson stated there was still a small window of time.
Comm. Bullen asked if the Budget Committee tabled the request, if it could come back directly to the Budget Committee?
Comm. A. Johnson stated the School Board would meet again before the Budget Committee met in December, and the committee would know what had been decided?
Chairman Ealy stated she believed the committee could request that the Siegel High stadium come back to the Budget Committee.
Following discussion, Comm. A. Johnson moved, seconded by Comm. Sandlin to defer action on the additional funding of $500,000 for the Siegel High School stadium until the next Budget Committee meeting on December 5.
Mr. Watson stated with $1.6 million they could not request bid proposals. He stated they are completely stopped on this right now.
Comm. Sandlin asked if it was a law that they could not bid the project without having all of the funding on hand?
Mr. Watson stated the project had already been bid once.
Following discussion, the motion to defer action on the additional funding of $500,000 for the Siegel High School stadium complex passed by roll call vote with Commissioners A. Johnson, Peay, Sandlin and Ealy voting “yes”, and Commissioners Bullen, Jordan and Shafer voting “no”.
Chairman Ealy appealed to Mr. Watson to present to the School Board a possibility of trying to schedule meetings so there is not a conflict.
SCHOOL BUILDING PROGRAM BUDGET AMENDMENTS – PHASE III:
Mr. Watson requested approval of School Building Program – Phase III budget amendments. The remaining furniture, equipment, technology, other equipment, and other capital outlay funds in the building program for Blackman and Wilson Elementary Schools and Siegel Middle School need to be reallocated. The County Commission has requested that remaining funds be reallocated after the first year of a school’s operation. The site development funds are not being amended at this time. He advised the amendment had been adjusted down by $351 since the Health & Education Committee had met.
Mr. Watson advised there is also remaining funds from the two completed 2001/02 elementary repair projects for the John Colemon roof repair and David Youree HVAC, which need to be reallocated.
Mr. Watson advised the School Board approved amending $16,124 remaining in the Siegel Middle School Budget to Middle School Fire Marshal Repairs.
Budget Minutes November 7, 2002 Page Thirteen
From: Phase III Siegel Middle - $16,124 To: Phase III Fire Marshal Repairs - 16,124
From: Phase III Blackman Elementary - $22,782 Phase III Wilson Elementary - 17,329 John Colemon Roof Repair - 4,092 David Youree HVAC - 19,733
To: Phase III Playgrounds - 16,419 Christiana Roof Repair - 22 Elementary Furniture & Equip. - 47,495
Comm. Bullen moved, seconded by Comm. Shafer to approve the Phase III School Building Program amendments as requested.
Comm. Sandlin asked what these amendments would do to the projects.
Mr. Sandvig advised it would zero out the projects, except for the site development.
Following discussion, the motion to approve the Phase III School Building Program amendments as requested passed unanimously by roll call vote.
UPDATE ON SCHOOL CAPITAL PROJECTS:
Mr. Watson provided information on major capital projects for Fiscal Years 2003 and 2004, which included remaining roof repairs/replacements for Smyrna High School, Smyrna Elementary, Buchanan Elementary, Smyrna West Alternative, Walter Hill Elementary and Roy Waldron; mechanical system replacements for Thurman Francis School, Buchanan Elementary, Christiana Elementary and Walter Hill Elementary; close up rooms designed with open space concept for Riverdale & Oakland; Smyrna Middle & La Vergne High renovation of shops into classrooms; intercom and fire safety for Central Middle, McFadden & Buchanan; door replacements as required by the State Fire Marshall; storage buildings in Murfreesboro & Smyrna; air conditioning for gyms at Smyrna High, Oakland High, Riverdale High, Central Middle, Eagleville (old gym), Christiana Elementary; McFadden Magnet; La Vergne Primary; and Walter Hill Elementary; tile and carpet replacement.; paving and topcoating; and awnings.
The total for the 2003/2004 major capital repair list is $7,630,000.
Mr. Watson also provided a list for other requested items or anticipated issues, which included Christiana Middle School site development funds and sewer design/construction; Siegel High Sports Fields; Technology in 9th & 10th grades; and fire marshal repairs totaling $4,050,000.
Mr. Watson advised he is estimating it will cost approximately $4 million plus in operating costs for Siegel High School and Christiana Middle.
Mr. Watson advised there would be an update of projected new schools early in 2003.
Mr. Watson advised roofs that would need replacing in the next two to three years would include Stewartsboro, Kittrell, Lascassas, and Rockvale. He advised there would be mechanical systems (HVAC) that would need replacing at older schools. He also explained the “Leave No Child Behind Act” is another under-funded federal mandate. He stated he believed this would be a tremendous cost.
Mr. Watson also stated the Supreme Court has ruled in the small schools favor, and that could very well impact the funding. He stated a system such as Rutherford County, would probably be required to provide more local funding.
Comm. Shafer asked Mr. Watson when he found out more information on the “Leave No Child Behind Act”, if he would provide that information to commissioners.
Budget Minutes November 7, 2002 Page Fourteen
Comm. Peay asked if it was possible for the commission to pass a resolution whereby each school which had a stadium built for it would dedicate the proceeds from the gate receipts for one game per year into a fund to build new stadiums and upgrade recreation?
Mr. Watson advised the schools use the gate receipts to fund their own athletic programs.
Comm. Peay asked if the cost for the football programs at Oakland and Riverdale exceeded $100,000? He stated he would like to see what it cost to operate a football team.
APPROVE FUNDED POSITION LIST:
Finance Director Paul Long provided a list of funded positions for the 2002/2003 fiscal year, including any adjustments that have been approved since July 1.
Mr. Long also provided a copy of a resolution that was approved on June 28, 1999 stating that each annual operating budget would be accompanied by a report of funded full-time positions by pay grade in each department of the General and Solid Waste Funds.
Mr. Long stated the policy was adopted to aid the county in preventing departments from adding unauthorized positions throughout the year. The policy requires departments to come before the commission to change pay grades for any graded positions or to increase any numbers of personnel.
Mr. Long stated the list was not presented with the 2002/2003 budget. He requested approval of the list and that it be submitted to the full County Commission for their approval.
Comm. A. Johnson moved, seconded by Comm. Shafer to approve the funded position list as submitted and to forward the same to the County Commission for approval.
The motion passed unanimously by roll call vote.
OTHER BUSINESS
Comm. Sandlin stated at the last Public Safety meeting, the Sheriff requested approval of pay grade improvements for some positions that he had already promoted.
Comm. Sandlin stated he was not going to condone any pay grade changes in the middle of the year. He stated they should be directed toward the budget process.
The Finance Director stated during the budget process all of the pay grade improvements and promotions were not approved pending the hiring of a Human Resource Director. He advised 100 applications have been received for the position. He explained the Audit Committee has recommended and the Sheriff has volunteered to have the Sheriff’s Department be the first department evaluated under the performance review/efficiency program. He stated it would be his suggestion that before too many major promotions, the committee would want to see the outcome of the performance review to see if a department is adequately staffed and has an appropriate command structure.
Comm. Bullen stated he wanted an item placed on the Budget Committee agenda next month to consider a study to assign one cent of the property tax levy for senior citizens. He stated he wanted to discuss the possibility of a study for that. After it is studied and if it is determined that it is a possibility, that it be a designation in the tax levy resolution.
Comm. Bullen moved, seconded by Comm. Peay to consider, at the next Budget Committee meeting, a study to determine if it is feasible to designate one cent on the property tax rate for senior citizens.
The motion passed unanimously by acclamation.
Budget Minutes November 7, 2002 Page Fifteen
ADJOURNMENT:
There being no further business to be presented at this time, Chairman Ealy declared the meeting adjourned at 9:00 P.M.
________________________________________ Elaine Cawthon, Secretary
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