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BUDGET, FINANCE & INVESTMENT COMMITTEE December 7, 2000 6:15 P.M. Courthouse MINUTES: Members
Present:
Others Present:
Others Present: Comm.
Jerry Baxter
Evans Maples, Trustee
Hulon Watson Comm.
Joyce Ealy
Judge
Donna Scott
Jeff Sandvig Comm.
Joe Frank Jernigan
Lynn Smith
Brian Robertson Comm.
Paul Johnson
Mary Schneider
Brian
Brooks Comm.
Tina Jones
Truman Jones
Paul
Long Comm.
Dwight Throneberry
Regina Nelson
Elaine Cawthon Comm.
Jimmy Evans, Chair.
Becky Smith Chairman
Evans presided and called the meeting to order at 6:15 P.M. with all members
being present. APPROVE MINUTES The
minutes of the November 9, 2000 meeting were presented for approval. Comm.
Baxter moved, seconded by Comm. Jones to approve the minutes as presented. The
motion passed unanimously by acclamation. INVESTMENT
REPORT: Mr.
Evans Maples, Trustee, presented the monthly Investment Report for the use and
information of the committee. Mr.
Maples explained the transactions that occurred during the month.
He reported the LGIP interest rate for the month was 6.57%. Comm.
Jernigan moved, seconded by Comm. Baxter to approve the Investment Report as
presented. The
motion passed unanimously by acclamation. FUND
CONDITION REPORT: Finance
Director Paul Long presented the monthly Fund Condition Report for the use and
information of the committee. Mr.
Long reported the Development Tax collections for the month totaled $199,500 as
compared to $224,625 for November, 1999. The
year-to-date collections are $975,000 compared to $1,042,500 for the same period
last year. Mr.
Long reviewed the fund cash balances. The
total fund cash balances are $84,810,983 with $61,061,750 being operating funds
and $23,794,233 being borrowed funds. Mr.
Long reported the County experienced a good month in November regarding sale tax
collections. He explained the sales
tax collections were up 10.3% over a year ago. The
committee discussed revenue that might be generated regarding delinquent
personal property tax collections. The
balance of $6,225 remaining in the County Office Building project was also
discussed. Mr. Long reported that
money was to have gone toward landscaping.
It was recommended that the Property Management Committee be advised of
the balance and direct them to utilize this money for landscaping at the County
Office Building . Budget
Minutes
December 7, 2000
Page Two Mr.
Long reported there were no unusual conditions to report. Comm.
Baxter moved, seconded by Comm. Throneberry to approve the Fund Condition Report
as presented. The
motion passed unanimously by acclamation. GENERAL FUND BUDGET AMENDMENTS AGRICULTURE
EXTENSION: Chairman
Jimmy Evans presented the following budget transfer for consideration by the
committee relative to the Agriculture Extension Department:
From: 101-57100-790 – Other Equipment -
$1,800.00
To: 101-57100-355 – Travel
-
$1,800.00 Comm.
Baxter moved, seconded by Comm. Throneberry to approve the budget transfer as
requested. The
motion passed unanimously by roll call vote. JUVENILE
DETENTION: Judge
Donna Scott introduced Lynn Smith to the committee, who is the Assistant
Director at the Juvenile Detention Center and acting as the Director. Ms.
Smith requested approval of the following budget amendment to appropriate
insurance proceeds received for damages to a vehicle and to provide adequate
funding for the remainder of the year for various other line items:
Increase Revenue:
101-44520 – Insurance Recoveries -
$1,116
From:
101-54240-499 – Other Supplies & Materials -
$4,700
To: 101-54240-334
– Maintenance Agreements -
$ 500
101-54240-338 – Maint./Repair Vehicles -
2,116
101-54240-355 – Travel -
1,500
101-54240-451 – Uniforms -
1,000
101-54240-719 – Office Equipment -
700 Comm.
Baxter moved, seconded by Comm. P. Johnson to approve the budget amendment as
requested. The
motion passed unanimously by roll call vote. CRIMINAL
COURT (DRUG COURT GRANT): Mary
Schneider, Drug Court Coordinator, requested approval of the committee for the
following budget transfers to better reflect expenditures and to finalize a
budget that was approved before she was hired:
From: 101-53200-355 – Travel -
$3,020
To: 101-53200-348
– Postal Charges -
$ 250
101-53200-435 – Office Supplies -
450
101-53200-499 – Other Supplies/Materials -
1,320
101-53200-719 – Office Equipment -
1,000 Budget
Minutes
December 7, 2000
Page Three Comm.
P. Johnson moved, seconded by Comm. Baxter, to approve the budget transfers as
requested. The
motion passed unanimously by roll call vote. CIRCUIT
JUDGES: Finance
Director Paul Long requested approval of the following budget amendment to
revise the divorce mediation program. Mr.
Long explained the State Legislature has repealed the statute that allowed
Rutherford County to charge the extra $10 for marriage license effective January
1, 2001. He explained this
amendment reduces the revenue estimate and also requests to utilize $14,604 from
the reserve account from last year:
Decrease Revenue:
101-41110 – Marriage License -
$6,100
From:
101-34990 – Reserved for Other General Purposes -
$14,604
Increase Expend.:
101-53110-331 – Legal Services -
$ 8,504 Comm.
P. Johnson moved, seconded by Comm. Jones, to approve the budget amendment as
requested. The
motion passed unanimously by roll call vote. EMPLOYEE
BENEFITS: Mr.
Long explained the County does not pay unemployment tax to the State.
The County uses the reimbursement method, which means if an employee
draws unemployment, it is charged to the County’s prior service, and the
County must reimburse the State. Approval
of the following amendment was requested to provide adequate funding for the
Unemployment Compensation Account for the remainder of the year:
From: 101-39000 – Undesignated
Fund Balance -
$20,000
To:
101-58600-210 – Unemployment Compensation -
$20,000 Comm.
Baxter moved, seconded by Comm. Jernigan, to approve the budget amendment as
requested. The
motion passed unanimously by roll call vote. SHERIFF’S
DEPARTMENT: Sheriff
Truman Jones and Chief Regina Nelson requested approval of the following budget
amendments to provide adequate funding for the Gasoline Account; and to
appropriate a contribution made to the Mounted Patrol Division:
From: 101-39000 – Undesignated
Fund Balance -
$140,000
To:
101-54110-425 – Gasoline -
$140,000
Increase Revenue:
101-44570 – Contributions & Gifts -
$250
Increase Expend.:
101-54110-399 – Other Contracted Svc. -
$250 Comm.
P. Johnson reported the Public Safety Committee did approve the amendment;
however, he has since analyzed the gasoline situation and requested the Finance
Director to also analyze the account. An
analysis of the Gasoline Account was provided for the use and information of the
committee. He reported with the
gasoline prices the way they are, and taking the mileage into consideration
also, he believed $90,000 should provide enough funding for the Sheriff to
operate. Budget
Minutes
December 7, 2000
Page Four Comm.
P. Johnson moved, seconded by Comm. Baxter to amend the request as follows:
From: 101-39000 – Undesignated Fund Balance -
$90,000
To: 101-54110-425
– Gasoline -
$90,000
Increase Revenue:
101-44570 – Contributions & Gifts -
$250
Increase Expend.:
101-54110-399 – Other Contracted Svc.-
$250 The
motion passed unanimously by roll call vote. SOLID WASTE/SANITATION FUND BUDGET AMENDMENT CONVENIENCE
CENTER: Ms.
Becky Smith, Convenience Center Director, requested approval of the committee to
appropriate insurance proceeds received from damages to the compactor and
vehicles for Maintenance & Repair Vehicles:
Increase Revenue:
116-44520 – Insurance Recoveries -
$5,144
Increase Expend.:
116-55732-338 – Maintenance/Repair Vehicles -
$5,144 Comm.
Jernigan moved, seconded by Comm. Ealy to approve the budget amendment as
requested. The
motion passed unanimously by roll call vote. GENERAL
PURPOSE SCHOOL FUND BUDGET AMENDMENT: Mr.
Hulon Watson, Superintendent, and Mr. Jeff Sandvig, Assistant Superintendent,
requested approval of the following budget amendment, which requests $29,390
from the Board’s ending fund balance for engineering services for Stones River
Middle School, Blackman Elementary, and Wilson Elementary.
Mr. Watson explained this money was left over at June 30 and went into
the ending fund balance:
From: 141-39000
– Undesignated Fund Balance -
$29,390
To:
141-76100-321 – Engineering Services -
$29,390 Comm.
Jernigan moved, seconded by Comm. Baxter to approve the request as presented. The
motion passed unanimously by roll call vote. Mr.
Watson requested approval of the following budget amendment to increase the
2000-2001 budget for the Rutherford County Children’s Charity Fund.
There was $16,709 remaining in the 1999-2000 budget that went into the
Board’s ending fund balance at June 30, and $5,560 in contributions have been
received in the current year budget from the United Way of Rutherford County:
From:
141-39000 – Undesignated Fund Balance -
$16,709
Increase Revenue: 141-44570
– Contributions & Gifts -
$ 5,560
To:
141-73300-599 – Other Charges -
$22,269 Comm.
Baxter moved, seconded by Comm. P. Johnson to approve the request as presented. The
motion passed unanimously by roll call vote. Budget Minutes December 7, 2000 Page Five SCHOOL
BUILDING PROGRAM AMENDMENTS: Mr.
Watson requested approval of the following Phase II Secondary School Building
program amendments totaling $33,155:
From: Blackman High Furniture/Fixtures -
$15,899
Daniel McKee Bldg.
Improvements -
13,806
Eagleville High Bldg.
Improvements -
3,450
To:
Smyrna High Turn Lane -
$15,990
Holloway
Repairs -
1,227
LaVergne
High lockers -
39
Blackman High Bldg. Improvements (Backstops) -
15,899 Mr.
Watson reported there was a failure in the Smyrna High turn lane, and some
repair had to be done. Mr.
Watson requested approval of Phase II Elementary Amendments, which transfers
$1,131 from two finished projects at Barfield and Rock Springs Elementary
Schools to the 1998 Unidentified Elementary Repair. Mr.
Watson next requested approval of Phase III Elementary Amendments using $394,558
in site development funds from Blackman and Wilson Elementary Schools to cover
additional expenses incurred in engineering services and the construction
contracts for these two schools. Following
discussion, Comm. Jernigan moved, seconded by Comm. Jones to approve the Phase
II Secondary amendments in the amount of $33,155; Phase II Elementary amendments
in the amount of $1,131; and Phase III Elementary amendments in the amount of
$394,558. The
motion passed unanimously by roll call vote. The
committee requested Mr. Sandvig report at the January, 2001 meeting what he has
been able to find out regarding the additional work on the Smyrna High turn
lanes and the performance bond of the contractor to determine if the Board is
able to recover any money spent on the additional work. REQUEST
ADDITIONAL FUNDING FOR ARCHITECT’S FEES FOR SIEGEL HIGH SCHOOL: Mr.
Watson reported previously the Commission approved appropriating $250,000 for
architect’s fees for Siegel High School with the Board to be reimbursed when
the bonds are issued. Mr. Watson
requested approval of the following budget amendment, which requests an
additional $452,800 so that Binkley Garcia Architects can complete the design of
Siegel High School to also be repaid to the Board after the Commission borrows
funds for the school:
From: 141-39000
– Undesignated Fund Balance -
$452,800
To:
141-99200-590 – Transfers to Other Funds -
$452,800 Comm.
Baxter moved, seconded by Comm. Ealy to approve the amendment as requested. The
motion passed unanimously by roll call vote. REQUEST
FOR FUNDING FOR ROCK SPRINGS MIDDLE SCHOOL AND BLACKMAN MIDDLE SCHOOL: Mr.
Watson reported Rock Springs Middle School and Blackman Middle School are under
design and bids were requested in November.
He reported the bids will be open on January 10 and January 17, so both
contracts can be awarded and construction can start by February 1.
The contracts will be for 16 months with the schools to be open by the
Fall of 2002. Budget
Minutes
December 7, 2000
Page Six The
estimated costs to construct the two schools were provided for the use and
information of the committee. The
off-site cost for Rock Springs Middle School will be more, because it is located
on a hillside and will require large amounts of blasting of rock and bringing
topsoil to the site. Mr. Watson
reported there are some flashing lights and a walk tunnel being proposed for
Blackman Middle School to make it safe for students to get across to the
athletic facilities at the Blackman High School site. Mr.
Watson requested approval of the committee to fund Rock Springs Middle School at
$13,411,000 and Blackman Middle School at $12,511,000 for a total of
$25,922,000. Finance
Director Paul Long distributed information to the committee regarding the
monthly growth rate for the Local Option Sales Tax for 95-96, 96-97, 97-98,
98-99, 99-2000 and 2000-01. He also
distributed long range budget projections for the General Purpose School Fund
after adoption of the budget and with lower sales tax estimates. Mr.
Long reported the analysis points out that the Debt Service Fund could support a
significant amount of debt over the next eight years.
He stated, initially, the county could issue approximately $60 million
this year without causing tremendous stress. He
said the potential problems are within the operating budget for the Board of
Education. He said the original
projection indicated the school budget would be okay this year.
He said an additional $12 million in revenue could be provided next year
assuming the interest is released as has been discussed, and the Tennessee State
Revenue Sharing, and assuming $4 million is borrowed for capital outlay on a
short-term note or some other arrangement.
He explained projections were also looked at assuming the Board may need
$141 million to $142 million to operate the new schools that will come on line
next year. He explained all of this
assumes that in the reappraisal year the certified rate will not be adopted for
schools. He
said the projections were based on a 10% growth factor in sales tax for the next
two years and an 8.5% growth factor for the three years thereafter.
Mr.
Long also presented the same analysis assuming there is only an 8.5% performance
in sales tax the next two years and reducing it to 7% thereafter.
This analysis indicated a $605,754 shortfall this year increasing to a
$2,603,462 in 2005. He said next
year’s shortfall translates to 15 cent property tax levy increase, two cents
the year thereafter and 30 cents in 2004. He
stated the problem is going to be trying to find a way to operate these schools. Comm.
Jernigan stated in the next couple of years, he believed the School Board would
have to also look at it and try to work together with the commission.
Chairman
Evans also recommended the School Board study the situation to determine what
recommendations they could make to control the operating costs.
He stated this large of a tax increase over the next several years could
really hurt some citizens. He asked
if the building and growth trend does slow down, if there were additional
schools on the drawing board that could be postponed or deleted?
Mr.
Watson stated he would do exactly what the Chairman asked.
He stated they would cut it as close as they could and still have an
effective, efficient operation. He
reported they might also conduct a survey to see if there are some other
buildings they can possibly add on to. He
stated classrooms are the cheapest way to go.
He said everything he has heard is the growth is going to occur on the
other side of the interstate with the corridors of Highways 31, 99 and 96.
He stated that might cause them to have to rethink what they have done
with the building program. Comm.
Throneberry stated the commission has to look at the big picture.
He asked Mr. Watson if it was decided all three schools could not be
done, and only two could be constructed now, to prioritize and decide which
schools he wanted first. Budget
Minutes
December 7, 2000
Page Seven Chairman
Evans stated there was an agreement with the city and the municipalities
regarding the sales tax revenue to build a certain amount of schools.
He stated the county is obligated to honor the agreement.
He stated if the county did not honor their commitment, the cities and
municipalities may decide not to honor the portion of funds they agreed to
share. Following
discussion, Comm. Jernigan moved, seconded by Comm. Baxter to approve and to
forward to the full commission a bond resolution authorizing the funding of
$25,922,000, plus the City of Murfreesboro share of approximately $2.5
million for the construction of Blackman Middle School and Rock Springs Middle
School. Additionally, the
resolution is to include $702,800 to be reimbursed to the General Purpose School
Fund for architect’s fees for Siegel High School.
The
motion passed unanimously by roll call vote. A discussion was held regarding the Siegel High School site, and when funding for that school might be requested.
A
proposed 2001-2002 Budget Calendar was submitted to the committee for
consideration. Chairman Evans
stated he would essentially like to have the committee complete the budget
process by the end of May. The
committee agreed to revise the scheduled dates between May 3 and May 31, with
the schedule to reflect those deadlines pushed back a week earlier. The
calendar reflects the Public Hearing scheduled on June 12, and the adoption of
the budget on June 28. Comm.
Throneberry moved, seconded by Comm. Jones to approve the 2001-2002 Budget
Calendar as revised. The
motion passed unanimously by acclamation. OTHER BUSINESS APPROVE
OFFICIAL’S BOND: The
Finance Director explained the Official’s Bond for Randal Jones, the new Road
Board member needed to be approved by the commission. Comm.
Baxter moved, seconded by Comm. Jones to approve the Official’s Bond for
Randall Jones and forward the same to the full commission. The
motion passed by roll call vote with Comm. Jernigan voting “pass”. FUNDING
FOR VIRUS PROTECTION FOR INFORMATION TECHNOLOGY: Mr.
Brian Robertson, Information Technology Director, addressed the committee
regarding two computer viruses the county’s computer system received recently.
Mr. Robertson reported the county’s employees are using e-mail more
frequently to communicate departmentally and also with citizens.
Mr.
Robertson reported he had not anticipated the need for more virus protection.
He explained there is virus protection on individual PC’s.
He stated this is the least expensive and provides the minimal protection
against viruses. He
stated it appears there is now a need for more serious virus protection software
like that used by large industries. He
explained there are 500 PC’s on the county’s network.
He reported this has opened up the possibility of viruses coming in.
The importance of e-mail has gone up, and the risk of using e-mail has
gone up, as well. Budget
Minutes
December 7, 2000
Page Eight Mr.
Robertson explained he has been evaluating software for anti-virus protection.
He stated it is a $23,500 product. He
stated he believed he might be able to obtain it for less when it is bid.
He stated he did not have enough money in his Data Processing Equipment
Account to obtain the software and requested approval of the following budget
amendment:
From: 101-39000
– Undesignated Fund Balance -
$14,000
To:
101-52600-709 – Data Processing Equip. -
$14,000 Comm.
P. Johnson moved, seconded by Comm. Jones to approve the budget amendment for
the anti-virus software as requested. The
motion passed unanimously by roll call vote. ADJOURNMENT: There
being no further business to be presented at this time, Chairman Evans declared
the meeting adjourned at 8:25 P.M. ____________________________________________ Elaine Cawthon, Secretary
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