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BUDGET, FINANCE & INVESTMENT COMMITTEE
December 6, 2001 6:00 P.M. Courthouse
MINUTES:
Members Present: Others Present: Others Present: Others Present: Comm. Joyce Ealy Nancy Allen Regina Nelson Randy Brewer Comm. Paul Johnson Evans Maples Curtis Little John Harney Comm. Tina Jones Comm. Jerry Baxter Bob Asbury Joe McKenzie Comm. Steve Sandlin Jim Cope Virgil Gammon Bryan Brooks Comm. Dwight Throneberry Mike Nunley Melissa Wheatley Paul Long Comm. Jimmy Evans, Chair. Tommy Brown Jeff Sandvig Elaine Cawthon Judge Don Ash Tim McLaughlin Mary Schneider Steve Marchese
Chairman Evans presided and
called the meeting to order at 6:15 P.M. with six members being present. APPROVE MINUTES: The minutes of the November 8, 2001 meeting were presented for approval. Comm. Jones moved, seconded by Comm. Throneberry to approve the minutes as presented. The motion passed unanimously by acclamation, with Comm. Peay being absent.
INVESTMENT REPORT: Mr. Evans Maples, Trustee, presented the monthly Investment Report for the information and use of the committee. Mr. Maples reported the LGIP interest rate for the month was 2.11%. Mr. Maples explained the various investment transactions that occurred during the month. Mr. Maples advised that 9.72% of the 2001 property taxes have been collected as compared to 7.53% for the same period last year. Comm. Ealy moved, seconded by Comm. Throneberry to approve the Investment Report as presented. The motion passed unanimously by acclamation with Comm. Peay being absent.
FUND CONDITION REPORT: Finance Director Paul Long presented the monthly Fund Condition Report for the information and use of the committee. Mr. Long advised for the month of November $405,750 was collected for the Development Tax. He advised this was the largest collection in the month of November, since the Development Tax was implemented. He advised the majority of this was collected in the Building Codes Department. The year-to-date collections total $1,369,500 compared to $975,000 for November of last year. Mr. Long reviewed the cash balances of the various funds. He advised the General Purpose School cash balance is significantly below last year. Mr. Long advised Fund 121, Special Purpose Fund, is experiencing a cash flow problem. He reported this fund was established during the 2001-2002 budget year to account for various grant programs. He advised when the fund was established; it was the intention to have a better ability to account for the grants and to clearly demonstrate how the grant funds were being used. However, since the grants are reimbursable type grants, there is a cash flow problem. During the budget process,
a $25,000 advance was approved from the General Fund to the Special Purpose Fund
to establish the fund and to give it needed money for cash flow. However, the
reimbursements are being received slower than expected for a variety of reasons. Budget Minutes December 6, 2001 Page Two
Mr. Long reported the County Executive has spoken with the Sheriff’s Department about trying to bring the reimbursements up-to-date. He advised the Domestic Violence Coordinator has begun requesting the reimbursements for that program. Mr. Long requested the committee approve an additional $25,000 advance from the General Fund to the Special Purpose Fund for cash flow. The committee discussed the cash balance of the Employee Insurance Fund, which has a balance of $2,129,050. Mr. Long advised the premium increases would go into effect in January. Mr. Long advised the total cash balances were $101,625,613, with operating funds being $59,113,267 and borrowed funds being $42,512,346. He advised the first installment of the TVA Revenue Sharing payment in the amount of $254,306 has been received, and it was deposited into the General Debt Service Fund. This payment should have been deposited into the General Purpose School Fund, and that was in the process of being corrected. Following discussion, Comm. P. Johnson moved, seconded by Comm. Jones to approve the Fund Condition Report as presented and to approve a $25,000 advance from the General Fund to the Special Purpose Fund for cash flow purposes. The motion passed unanimously by roll call vote with Comm. Peay being absent.
REPORT ON CONDEMNATION SETTLEMENTS: Mr. Jim Cope, County Attorney addressed the committee regarding two pending condemnation cases, in which he has a settlement proposal. He reported these cases relate to the widening of the Old Nashville Highway when the county participated in the road improvements for Stewartsboro School. He advised these are the last two cases the county has relating to this project. He reported through negotiations with the property owner’s attorney, the cases can be settled for a total additional payment of $11,230.00. Mr. Cope recommended the committee approve the settlement and payment and forward the same to the full commission. Mr. Cope advised the county’s original deposit was $6,000. He reported the landowner had presented testimony that stated they were entitled to approximately $60,000 for compensation. He reported there was a wide disparity in what the landowner thinks and what the county thinks. Mr. Cope reported he believed this was a reasonable compromise. He stated this was a joint project between the county and the Town of Smyrna. Mr. Cope advised Smyrna has been administering the project. The invoices are submitted to the Town of Smyrna, and they pay them and then bill Rutherford County for the county’s share of the cost. Comm. Sandlin moved, seconded by Comm. Ealy to approve the two condemnation settlements relative to the widening of the Old Nashville Highway at Stewartsboro School in the amount of $11,230 to be paid from the Development Tax Following discussion, the motion passed unanimously by roll call vote with Comm. Peay being absent. INDUSTRIAL DEVELOPMENT BOARD REQUEST FOR APPROVAL OF EDM INVESTMENTS, L.L.C.: Mr. Randy Brewer advised the committee that EDM Investments, L.L.C. is interested in locating a customer call center in the area. The company is most interested in the property at the old River Rock Outlet Mall. The IDB began negotiating a tax incentive with the company through a consultant. The IDB determined the best way to do that was to offer a tax break based on the appraisal of the property. They decided to freeze the current appraisal of the property for three years, or $1.6 million. In years 4-6, the appraised value will be $2.5 million. In years 7-8, the appraised value will be $3.5 million with years 9 and 10 being $5 million.
Budget Minutes December 6, 2001 Page Three
Mr. Brewer advised a customer call center would bring with it a lot of personal property. There will be a small front-end tax break on that, which amounts to about 20% the first year and 5% to 6% the second year, and then the county and the City of Murfreesboro will begin collecting a sizeable amount of tax on the personal property. Mr. Brewer advised it is a very fair deal to both the company and to the community. Chairman Evans advised he had attended an informational meeting regarding the proposal. He stated when the company reported the number of employees the company would employ, he stated he informed them how much it cost to build an elementary school, a middle school and a high school. Chairman Evans reported the company is not receiving anything that has not been traditionally done for other companies or industries that have come or are looking to come to Rutherford County. Mr. John Harney, who represented the ownership of the building or EDM Investments, L.L.C. was also present to answer questions of the committee. Mr. Brewer advised due to that, the IDB have to do business with the property owner who leases the property to the company. A discussion was held on the number of jobs that will be created. Mr. Brewer advised it would be no fewer than 1,000, and would probably be between 1,100 and 1,300. He advised this would be in shifts and probably a 24-hour day. Chairman Evans advised the company has to bring a certain number of jobs, and if they do not meet a certain criteria within a certain amount of time, the tax abatement is null and void. The company indicated that would not be a problem, and there was a possibility that some higher paying jobs could be relocated to Rutherford County and Murfreesboro. A discussion was held about the number of jobs not being stated in the Inducement Contract. Comm. P. Johnson moved, seconded by Comm. Throneberry to approve the Resolution for financing by the Industrial Development Board to issue revenue bonds in a principal amount not to exceed $15,000,000 for a customer call center with EDM Investments, L.L.C., and further to request the IDB clarify the number of jobs to be created. The motion passed by roll call vote with Comm. Sandlin and Comm. Peay being absent at that time.
GENERAL FUND BUDGET AMENDMENTS
AMBULANCE SERVICE: Mr. Mike Nunley, Ambulance Service Director, requested approval of the following budget amendment to appropriate insurance proceeds for damages an ambulance received in a wreck in October:
Increase Revenue: 101-44520 – Insurance Recovery - $7,492
Increase Expend.: 101-55130-338 – Maint./Repair Vehicles - $7,492
Comm. P. Johnson moved, seconded by Comm. Jones to approve the budget amendment as requested. The Finance Director advised at the October meeting, the committee deferred a similar amendment in the amount of $3,482 due to the fact that there was still $41,000 remaining in the expenditure account at that time. Mr. Long advised the committee might want to approve both insurance recovery amounts at this time since now 70% of the line item has been spent. Comm. P. Johnson revised the motion, and Comm. Jones revised the second to the motion as follows:
Increase Revenue: 101-44520 – Insurance Recovery - $10,974 Increase Expend.: 101-55130-338 – Maint./Repair Vehicles - $10,974
Budget Minutes December 6, 2001 Page Four
The revised motion in the amount of $10,974 passed by roll call vote with Commissioners Sandlin and Peay being absent at that time. DRUG COURT: Judge Don Ash and Mary Schneider, Drug Court Coordinator, requested approval of the following budget amendment to correct the salary of the Supervisor/Director and to add two Case Managers at entry level for a pay grade 20 to the grant including salary, benefits and related expenses. The request further provides rent for a lease of office space at $1,000 per month including utilities:
Increase Revenue: 101-47990 – Other Director Federal Revenue - $ 70
From: 101-53200-399 – Other Contracted Services - $57,826 101-53200-451 – Uniforms - 63
To: 101-53200-105 – Supervisor/Director - $ 59 10153200-189 – Other Salaries & Wages - 27,360 101-53200-201 – Social Security - 1,700 101-53200-204 – State Retirement - 2,430 101-53200-205 – Employee Insurance - 7,260 101-53200-212 – Employer Medicare - 400 101-53200-307 – Communications - 2,500 101-53200-351 – Rentals - 6,000 101-53200-355 – Travel - 7,250 101-53200-709 – Data Processing Equip. - 2,500 101-53200-711 – Furniture & Fixtures - 500
Ms. Schneider advised the Drug Court was previously contracting with The Guidance Center and some other individuals for services. The Guidance Center presented them with a proposal that was very different from the original contract, which would have required the Drug Court to pay $35,000 for a $20,000 position. She explained originally with The Guidance Center they were going to have two Case Manager positions. She advised she is proposing to incorporate those two case managers into the County’s Drug Court Program, and they would be employees of the Drug Court program. She advised the two case managers would also be able to do a lot of the services that they are presently contracting with other individuals. Judge Ash advised with these two positions being employees of the Drug Court Program, Ms. Schneider would be able to perform the services much cheaper than contracting with The Guidance Center. He reported the funds would come from the Federal Grant, with the matching funds being provided through DUI Funds collected by the county. Judge Ash advised after two years, if other grants are not received, the Drug Court might come to an end. He explained he had told Ms. Schneider if the two individuals are hired they are to be told that the positions cannot be guaranteed for more than two years. The Finance Director reported the county is in a position that if funds are not available, employee positions are not guaranteed. Ms. Schneider advised the Drug Court recently received a $1,000 donation from the Rotary Club, which will help with the IRS filing fee to receive the 501 C (3) status. Ms. Schneider also advised the other big item relating to the amendment is a request for approval of the Lease Agreement for office space at 106 East College Street. She advised the Property Management Committee approved the Lease Agreement, and the County Attorney also reviewed the lease and recommended two changes. Ms. Schneider advised one of the changes was that the County is not liable to pay the rent if there is no funding for the program. The other change is that the County is not liable for damages.
Budget Minutes December 6, 2001 Page Five
Following discussion, Comm. Jones moved, seconded by Comm. Throneberry to approve the budget amendment as requested and the Lease Agreement for office space located at 106 East College Street at $1,000 per month including utilities for the Drug Court Program. The motion passed by roll call vote with Commissioners Sandlin and Peay being absent at that time.
SHERIFF’S DEPARTMENT: Chief Regina Nelson requested approval of the following budget amendments to provide adequate funding for the Dues & Membership Account, appropriating rental money from stall rental for the Mounted Patrol Division, appropriating a contribution for the K-9 Unit, and a transfer for an emergency purchase of an ice machine:
From: 101-54110-437 – Periodicals - $2,000 To: 101-54110-320 – Dues & Memberships - $2,000
Increase Revenue: 101-44120 – Lease/Rentals - $ 605 Increase Expend.: 101-54110-399 – Other Contracted Svc. - 605
Increase Revenue: 101-44570 – Contributions & Gifts - $ 215 Increase Expend.: 101-54110-399 – Other Contracted Svc. - $ 215
From: 101-54210-336 – Maint./Repair Equipment - $3,650 To: 101-54210-710 – Food Service Equip. (new item) - $3,650
Comm. P. Johnson moved, seconded by Comm. Jones to approve the budget amendments as requested. The motion passed by roll call vote with Commissioners Peay and Sandlin being absent at that time. Chief Nelson advised the inmate population was at 750 before this meeting. She said with the increase in the inmate population, there would also be an increase in the medical expenses and food. She wanted to make the committee aware they would probably not make it through entire fiscal year without additional funding.
EMPLOYEE INSURANCE ACCOUNTS – ALL FUNDS: The Finance Director advised when the commission took action to improve the situation relative to the Employee Health Insurance; a commitment was made to increase the employee and the employer share of health insurance effective January 1, 2002. Mr. Long requested approval of the attached amendment for the General Fund to accomplish that. Additionally, the amendment adjusts some of the recurring changes in the health insurance, which occurs when individuals make changes to their health insurance elections and also for changes that occur due to turnover. The amendment requests $181,525 from Account 101-39000, Undesignated Fund Balance, $19,790 from Account 101-58600-205, Employee & Dependent Insurance, and an increase in Revenue Account 101-46310 – Health Department Programs in the amount of $3,350. The Finance Director also requested approval of the following budget amendment for the Employee & Dependent Insurance accounts for the Solid Waste/Sanitation Fund:
From: 116-39000 – Undesignated Fund Balance - $3,190
Increase Revenue: 116-46430 – Litter Program - $ 781
To: 116-55720-205 – Litter Grant - $ 781 116-55732-205 – Convenience Center - 1,385 116-55754-205 – Landfill Operation - 1,805
Budget Minutes December 6, 2001 Page Six
The Finance Director requested approval of the following budget amendment for the Employee & Dependent Insurance Account for the Special Purpose Fund:
From: 121-54110-499 – Other Supplies & Materials - $300 Increase Revenue: 121-49800 – Operating Transfers - $100 Increase Expend.: 121-54110-205 – Employee & Dependent Ins. - $400
The Finance Director requested approval of the following budget amendment for the Employee & Dependent Insurance accounts for the Road & Bridge Fund:
From: 131-62000-205 – Highway & Bridge Maintenance - $4,000 131-62000-399 – Other Contracted Services - 9,530
To: 131-61000-205 – Administration - $4,350 131-63100-205 – Operation & Maintenance of Equip. - 3,640 131-63400-205 – Quarry Operations - 5,540
Comm. P. Johnson noted his conflict of interest since he is an employee of the General Fund. Comm. P. Johnson moved, seconded by Comm. Ealy to approve the amendments for the Employee & Dependent Insurance Accounts for the General Fund, Solid Waste/Sanitation Fund, Special Purpose Fund, and Road & Bridge Fund as presented. The motion passed by roll call vote with Commissioners Peay and Sandlin being absent at that time.
COUNTY CLERK: Ms. Melissa Wheatley, County Clerk’s Office, requested approval of the following budget amendments requesting funds to replenish accounts for expenses incurred as a result of the fire that destroyed the Smyrna Motor Vehicle Department and to provide funding to make the new office operational. Ms. Wheatley advised the building was a total loss. She explained Mr. Taliaferro, who owns the property, is rebuilding at the same site to meet their needs; however, they have incurred expenses in replacing some items. Ms. Wheatley advised this amendment will not cover everything, but it is what they need right now to get started:
Increase Revenue: 101-45110 – County Clerk Excess Fees - $40,000
Increase Expend.: 101-52500-435 – Office Supplies - $ 6,905 101-52500-707 – Building Improvements - 15,000 101-52500-709 – Data Processing Equip. - 7,606 101-52500-711 – Furniture/Fixtures - 7,337 101-52500-719 – Office Equipment - 3,152
The Finance Director advised this money would be provided through additional fees that the clerk collects. Comm. Jones moved, seconded by Comm. Throneberry to approve the budget amendment for the County Clerk’s Office as requested. The motion passed by roll call vote with Commissioners Peay and Sandlin being absent.
SOLID WASTE/SANITATION FUND BUDGET AMENDMENT: A budget amendment request was presented for the Solid Waste/Sanitation Fund to provide additional funding for the Unemployment Compensation Account for the remainder of the year. Through September, 80% of the line item has been depleted:
Budget Minutes December 6, 2001 Page Seven
From: 116-39000 – Undesignated Fund Balance - $4,000
To: 116-58600-210 – Unemployment Compensation - $4,000
A discussion was held as to whether or not this account actually needed to be amended at this time or if it could be amended as needed. Following discussion, Comm. Throneberry moved, seconded by Comm. Ealy to approve the amendment for the Unemployment Compensation in the Solid Waste/Sanitation Fund as requested. The motion passed by roll call vote with Commissioners Peay and Sandlin being absent. GENERAL PURPOSE SCHOOL FUND BUDGET AMENDMENTS: Mr. Jeff Sandvig, Assistant Superintendent, requested approval of the following budget amendment to appropriate insurance proceeds in the amount of $23,500 that were received for lightening damage at Cedar Grove School. The repairs were paid from the Technology Department’s maintenance and repair of equipment line item: Increase Revenue: 141-44520 – Insurance Recovery - $23,500
Increase Expend.: 141-72810-336 – Maint/Repair Equipment - $23,500
Comm. Throneberry moved, seconded by Comm. P. Johnson to approve the budget amendment as requested to appropriate insurance proceeds in the amount of $23,500. The motion passed by roll call vote with Comm. Sandlin voting “pass”, and Comm. Peay being absent. Mr. Sandvig requested approval of a budget amendment reducing budgeted BEP revenue by $365,299 and the related certified salaries and benefits in order to reflect the actual state raise passed for fiscal 2002. The state raise was 2.5%. A 3.0% state raise was anticipated during the budget process, and the BEP revenue in the budget reflected a 3% raise.
Comm. Throneberry moved, seconded by Comm. Jones to approve the amendment reducing budgeted BEP revenue by $365,299 and the related salaries and benefits to reflect the actual state raise passed for fiscal 2002. The motion passed by roll call vote with Comm. Ealy noting her conflict of interest statement and Comm. Peay being absent.
LONG RANGE BUDGET PROJECTIONS: The Finance Director provided an analysis of Long-Range Budget Projections for the information and use of the committee. Mr. Long advised the Health & Education Committee had requested the information be updated as they were considering the request to fund the Christiana Middle/7-12 School. Mr. Long reviewed the analysis in detail. He advised the committee that given the state’s ongoing fiscal crisis, there has been a much more conservative estimate of available revenues. Mr. Long reviewed the General Fund estimates of revenue and expenditures through fiscal 2007. He advised in the current year, the General Fund ending fund balance may be drawn down by $1.9 million or more given the decline in interest rates. With the benefit the General Fund will receive due to reappraisal, it will be back nearly to break-even next year. Mr. Long advised the General Fund numbers are not too alarming, and with a little fiscal restraint, the General Fund tax levy may be able to be kept where it is. Mr. Long reported the
General Purpose School Fund estimates are not as good as the General Fund. He
stated the problems are more severe in the General Purpose School Fund due to
poor revenue performance, in particular sales tax and very little revenue growth
in state revenue. Budget Minutes December 6, 2001 Page Eight
Mr. Long reported some of the revenue estimates for the current year have been reduced, and given those reductions and some additional appropriations that have been made since the budget was adopted, the General Purpose School Fund ending fund balance may be drawn down this year by about $3.3 million. Mr. Long advised in opening the two new middle schools next year, about $3.6 million will have to be added. Therefore, a similar problem may exist next year, and there will not be enough ending fund balance to cover that, so that could translate into a 12 cent property tax increase even on the reappraisal value. In 2004, Siegel High School will be opening, plus the new Christiana Middle. A new middle school could be requested in the South Smyrna area during this time, as well. This could result in an additional $12.9 million problem, which would translate into a 33 cent property tax rate increase. In fiscal 2005, another middle school in the West Murfreesboro area is proposed. Mr. Long advised the revised capital projects that are currently on going or that have not been addressed yet is approximately $195 million. Currently, $60.5 million of these projects have been funded. Approximately, $130.5 million of these projects have not been funded or have not been addressed. The City of Murfreesboro’s share of these projects is $9.4 million. The total capital funds needed are $139.9 million. Mr. Long advised the current principal and interest debt requirements total $372,120,086. He reported at a 4.5% interest rate, the county could probably afford to issue approximately $233.8 million of new debt, which would be adequate enough to cover the $139.9 million that is currently anticipated. Mr. Long provided
information relative to core capacity and classroom capacity and how it relates
to the current total membership of the school system. SCHOOL BUILDING PROGRAM BUDGET AMENDMENTS: Mr. Sandvig requested approval to transfer $11,529 from the Blackman High School site development to reimburse the General Purpose School Fund for the La Vergne High School fire alarm panel replacement. Comm. Throneberry moved, seconded by Comm. Jones to approve the transfer of $11,529 from the Blackman High School site development as requested. The motion passed by roll call vote with Comm. Peay being absent. Mr. Sandvig advised The Board approved funding a proposal from ECE Service to survey the Powell and Christiana property for $4,945. The Health & Education Committee approved the request with the $4,945 to be paid from the Powell Property Land Line Item. Comm. Sandlin moved, seconded by Comm. Throneberry to approve the request for $4,945 from the Powell Property Land Line Item to fund a survey of the Powell and Christiana property. The motion passed by roll call vote with Comm. Peay being absent. Mr. Sandvig requested approval of a budget line item adjustment of $66,499.77 from site development to construction on the Siegel Middle School project for Change Order #3 to R. G. Anderson. Mr. Tim McLaughlin reviewed the changes necessary to complete the Siegel Middle School project. Following discussion, Comm. Throneberry moved, seconded by Comm. Ealy to approve the line item adjustment of $66,499.77 from site development to construction on the Siegel Middle School project to fund Change Order #3. The motion passed by roll call vote with Comm. Peay being absent.
Budget Minutes December 6,
2001 Page Nine RESOLUTION PROVIDING FUNDING FOR THE HVAC REPLACEMENT AT OAKLAND & RIVERDALE HIGH SCHOOLS: Mr. Sandvig and Mr. McLaughlin requested approval to forward to the full commission a request to borrow and appropriate $3,000,000 to replace the HVAC units at Riverdale and Oakland High Schools and allow the projects to be completed by next summer. Mr. McLaughlin advised the units are 30 years old. He explained all of them are operating right now. He advised the issue is that the company that installed all of the panels on the building is no longer in existence. He stated the units have been looked at by their maintenance staff, as well as a consultant, and everyone gives the same conclusion. He advised the units could not be repaired. He stated it was not advisable to replace only a few units at a time, because it cannot be determined which units will stop working. Mr. McLaughlin reported they interviewed three companies, and that is how they arrived at the estimate. They will basically make a unit where they can pick up the unit that is on the building and place the new unit on the footprint so that the new roof will not be damaged. All of the units will have to be lifted off and replaced by using a helicopter. Mr. McLaughlin advised the company would bring all of the units to the site at one time. The company has advised that within a two-week period of time, they could have all of the units removed and replaced at one site. Once the units are ordered and are on site, within a month, they could have both schools completed. It was discussed it would be more cost effective to replace all of the units at one time as opposed to a few at a time. Following discussion, Comm. Throneberry moved, seconded by Comm. P. Johnson to approve a bond issue in the amount of $3,000,000 to replace the HVAC units at Oakland and Riverdale High Schools and forward the same to the full commission. The motion passed by roll call vote with Comm. Peay being absent.
RECOMMENDATION TO PROVIDE FUNDING FOR INITIAL TESTING AND DESIGN FOR CHRISTIANA MIDDLE/7-12 SCHOOL: Mr. Sandvig advised The Board is requesting $12.6 million for construction and $470,000 for initial testing and design for the Christiana Middle/7-12 School Project. The amount is 3% of the prototype of the Siegel Middle School for architectural/engineering design, boundary, topographic surveys, and grid staking/soil testing of remaining soils for the STEP System and geo-technical preliminary soil work. Mr. Sandvig reported it is the intent of The Board that the school be opened as a middle school, but the roads would be arranged in such a way, that if at a later date The Board decided to go with the community school concept they could add seven classrooms and an auxiliary gym. Mr. McLaughlin stated that basically they would move some of the perimeter roads to accommodate that. Comm. Throneberry advised the Health & Education Committee did approve the $470,000 for the initial testing and design at the Christiana Middle/7-12 School site and recommended waiting until the first of the year on the $12.6 million construction request. The Finance Director
advised $3.6 million had been previously approved for furniture and equipment
for Blackman and Rock Springs Middle Schools, plus the $3 million for the HVAC
units. He advised some Siegel infrastructure may have to be addressed fairly
soon, as well. He stated the county would probably not go back to the bond
market again until sometime late spring. He explained once the resolutions are
approved, that is authorization to proceed with the work provided there is
adequate cash flow. He advised the committee if they wanted to defer action on
the $12.6 million for construction until after January 1 that can be done. The
bond issue can wait until action is taken on that. As to where the $470,000 can
be funded, that can be done with a bond issue, as well. Budget Minutes December 6, 2001 Page Ten
Mr. Long reported in the Blackman Middle and Rock Springs Middle projects, which are mid-way through construction, there are line items that have balances. Mr. Sandvig advised those line items will be used to provide funding for the softball equity issue. Mr. Long reported in the construction line item for Blackman Middle and Rock Springs Middle there is approximately $464,000 available. He stated there is some more money available in site development and engineering. Mr. McLaughlin advised there have not been any practice fields installed at Blackman Middle. He reported the ball fields at Siegel Middle were bid at $118,000. He stated that would be a similar estimate to use at Blackman Middle and Rock Springs Middle. Following discussion, Comm. P. Johnson moved, seconded by Comm. Sandlin to approve a bond issue for $470,000 for the initial testing and design for the Christiana Middle/7-12 School and to defer the $12.6 million for construction until a later date. Comm. Jones pointed out this would be school number eight in the school building program in the last three years. The motion to approve a bond issue in the amount of $470,000 for the initial testing and design for the Christiana Middle/7-12 School and to defer the $12.6 million for construction until a later date passed by roll call vote with Comm. Peay being absent. RECOMMENDATION TO PROVIDE FUNDING FOR EQUITY IN SOFTBALL FIELDS: Mr. Jeff Sandvig advised The Board had approved a request for additions to softball fields at the high schools throughout the county in order to address Title IX gender equity issues. Mr. Sandvig reported the Health & Education Committee had requested the School Board come back with proposed funding from Siegel High, Blackman Middle, Rock Springs Middle unobligated funds or other unobligated monies. Mr. Sandvig advised he had reviewed the funding with Lisa Nolen and Tim McLaughlin, and developed a proposed funding plan for the softball fields. Mr. Sandvig distributed the proposed funding plan for the information and use of the committee. The proposal reflects total funding of $580,000 with $80,000 coming from matching funds from the booster organizations and community organizations. The balance needed to fund the softball fields is $500,000. Mr. Sandvig’s proposal reflects $300,000 is needed for the softball fields at the comprehensive high schools and $200,000 is needed for the Eagleville softball field. Mr. Sandvig requested approval from the committee for the following transfers from unobligated monies in the school building program to fund the softball equity issue:
Proposed Funding Excluding Eagleville:
From: Blackman High – All Line Items - $124,763 Phase II 1998 High School Repairs - 25,000 Stadium Project - 3,383 Blackman High – Funds Released from Hurst Contract - 146,854
Total Excluding Eagleville - $300,000
Proposed Funding for Eagleville:
From: Siegel Middle Architect - $ 61,046 Siegel Middle Engineering - 3,778 Blackman Middle Construction - 35,000
Blackman Middle Site Development -
50,000 Budget Minutes December 6, 2001 Page Eleven
Rock Springs Construction - 30,176 Rock Springs Site Development - 20,000
Total Funding for Eagleville $200,000
Total Funding - $500,000
Comm. Throneberry moved, seconded by Comm. Sandlin to approve the funding for the additions to softball fields at the high schools throughout the county to address Title IX gender equity issues from the unobligated monies in the school building program as proposed. The motion passed by roll call vote with Comm. Peay being absent. Comm. Sandlin stated he would like to know what the balances would be on the various accounts after these transfers are made. The Finance Director advised Mr. Sandvig is in the process of reviewing some old outstanding purchase orders on the School Building Program. It may be necessary to cancel some of the purchase orders, in which case, some of the balances may actually increase. Comm. Sandlin stated he would like for some of the projects to wind up.
REQUEST FUNDING FOR DESIGN & GEO-TECHNICAL TESTING FOR SIEGEL HIGH STADIUM: Mr. McLaughlin stated he wanted to revisit the request for funding for the design and geo-technical testing for Siegel High School. County Executive Allen advised the ambulance station on the proposed Siegel property could not be used because of sinkholes on the property. She stated Tommy Brown has had several conversations with Mr. McLaughlin in an effort to identify a location on the property where the school is going to be. In order to make the determination; the necessary design work must be done. Without that being done, construction of a new ambulance station is virtually at a standstill for a much needed ambulance station. Mr. McLaughlin advised of the $65,000 needed, $15,000 is needed for the testing and $50,000 is for the plans and specifications from the architect. Mr. McLaughlin advised the stadium is a prototype of the stadiums already constructed, but it will be set on the property differently. A discussion was held as to why $50,000 was needed for stadium plans that have already been used. Mr. McLaughlin also noted that a portion of the money is because the architect will provide oversight of the construction of the stadium. Mr. McLaughlin advised the architect fee is typically 5% to 6% of the construction, but since the plans and specifications have already been used, the architect is only charging 3% on this stadium. County Executive Allen stated at this point, the County Commission has delayed the construction of the stadium, so there should not be any oversight at this time. She asked if the cost could be modified, since there would be no oversight. Mr. McLaughlin stated that typically 20% of the architect’s fee is construction oversight. It was discussed that 20% of the $50,000 may not be needed unless the stadium is built. The Finance Director asked if the $65,000 could be reduced by $10,000 and still be able to do all of the design work that needs to be done? Mr. McLaughlin stated he believed that could be done. Chairman Evans suggested funding the $65,000, but allowing $15,000 of that amount for the roof inspection for Siegel High School that was previously requested. He stated he was very concerned that the $15,000 was not approved at the last meeting, and was afraid that could end up costing the county.
Budget Minutes December 6, 2001 Page Twelve
County Executive Allen also stated she believed this would be money well spent. She stated roofs are a nightmare if not installed correctly. Mr. McLaughlin advised the stadium needed to be laid out, so they could see where the ambulance station would fit on the property. Mr. McLaughlin also advised another factor is that there is no sewer on that side of the road. He stated the sewer line that has to be designed is going to have to pump the sewage for the concession stand and the ambulance station. He stated they would probably have to combine those two locations and dump it to the ambulance station and pump it to the middle school. He stated this is another reason that things are going to have to be lined up between the stadium and the ambulance station. He advised there is not a lot of room to put the stadium and the ball fields. Mr. McLaughlin stated he was estimating the geo-technical cost at $15,000. If another $15,000 is used for the roof inspection, that would leave $35,000 for the plans and specifications. Chairman Evans stated if the $65,000 was approved, he believed the School Board could get everything done they needed to do including the roof inspection and cutting out the construction oversight. Comm. Ealy moved, seconded by Comm. Throneberry to approve the $65,000 from the Siegel High School unobligated money to fund the geo-technical and design for the Siegel High School stadium deleting the construction oversight, but including the location of the ambulance station and $15,000 for the Siegel High School roof inspection. The motion passed by roll call vote with Comm. Peay being absent.
2002-2003 BUDGET CALENDAR: A proposed 2002-2003 budget calendar was provided for the information and use of the committee. Comm. P. Johnson moved, seconded by Comm. Throneberry to approve the 2002-2003 budget calendar as proposed, with the understanding it will be necessary to schedule other Budget Committee meetings between April 26, 2002 and June 27, 2002 as needed. The motion passed by acclamation with Comm. Peay being absent.
DISSCUSSION OF THE APPROACH TO EMPLOYEE PAY INCREASES IN PRELIMINARY 2002-2003 BUDGET: The Finance Director explained he would like to have some general direction regarding employee pay increases prior to the budget process. He advised each year in the early phases of the budget process, there is always a big question as to what department’s need to request relative to employee pay increases. He stated typically department heads are advised not to include anything in terms of salaries in their budget request until the County Executive decides what she wants to recommend. He reported that is usually driven by the revenue estimates. He stated he does not know how much extra revenue there is going to be until he sees the whole picture. He advised when the budget forms are distributed to department heads; he would like to be able to tell them what to request for salaries for their employees. He stated he would like to know what to do with the steps. He advised last year the steps were indexed by 1% to keep pace with the cost of living. He reported in the General Fund, this would cost approximately $235,000. It would amount to about $15,000 in the other funds, excluding the Highway Department. He stated he would also like to know if pay raises would be awarded on July 1 or stay with the anniversary date. He stated the Highway Department awarded their pay raises on July 1 in the current fiscal year. He stated the additional increase as a result of this decision would be approximately $620,000 in the General Fund. He stated this would be a one-time increase. Following discussion, Comm. Jones moved, seconded by Comm. Throneberry to prepare the 2002-2003 budget with employee pay increases to be calculated based on the anniversary date. The motion passed by roll
call vote with Comm. Peay being absent. Budget Minutes December 6, 2001 Page Thirteen
It was decided the steps would not be indexed by 1% until a better picture of the total budget is known.
RESOLUTION TO IMPOSE THE MAXIMUM LOCAL LITIGATION TAX ALLOWABLE UNDER TENNESSEE LAW: Comm. P. Johnson advised the Steering Committee voted unanimously to approve the resolution to impose the maximum local Litigation Tax allowable. The resolution provides that the local litigation tax be increased in all court cases in Rutherford County Courts to the maximum amount currently allowable; and that the court clerks be directed to increase the local litigation tax at any time in the future that amendments to state law would make such an increase allowable. The Finance Director advised based on the last year’s case-load, Rutherford County can expect to generate an additional $116,000 in revenue. Mr. Long reported in the early 1990’s when the General Sessions Judges received a significant pay improvement, the legislature imposed a $6 tax on all general sessions cases and directed that tax to go into the General Fund. He advised that has never been deposited to the General Fund, but has been deposited into the General Debt Service Fund. He stated, at this point, that might be corrected. He advised he did not believe it would require any action by the County Commission to comply with state law. He advised as this change is being made, he would try to correct that and begin putting that $6 tax into the General Fund effective with the passage of this resolution. Comm. P. Johnson moved, seconded by Comm. Throneberry to approve the resolution to impose the maximum local Litigation Tax allowable under Tennessee law as presented and to begin depositing the $6 litigation tax that was imposed on all general sessions cases in the 1990’s to the General Fund as directed by State law. The motion passed by roll call vote with Comm. Peay being absent.
ADJOURNMENT: There being no further business to be presented at this time, Chairman Evans declared the meeting adjourned at 8:45 P.M.
_________________________________________ Elaine Cawthon, Secretary |
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