Columbus, Georgia

MINUTES

COUNCIL OF COLUMBUS, GEORGIA

STRATEGY MEETING

MARCH 22, 2005



A Strategy Meeting of the Council of Columbus, Georgia was called to order at

8:30 A.M., Tuesday, March 22, 2005, in Room 205 of the Trade Center, Columbus,

Georgia. Honorable Robert S. Poydasheff, Mayor and Honorable John J. Rodgers,

Mayor Pro Tem, presiding.





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PRESENT: Present other than Mayor Robert S. Poydasheff and Mayor Pro Tem John

J. Rodgers were Councilors R. Gary Allen, Wayne S. Anthony, Glenn Davis, Berry

H. Henderson, Julius H. Hunter, Jr., Charles E. McDaniel, Evelyn Turner Pugh

and Nathan Suber. City Manager Isaiah Hugley, Deputy City Manager Richard

Bishop, City Attorney Clifton Fay, and Deputy Clerk of Council Sandra Davis

were also present. Councilor Evelyn Woodson arrived at 9:10 a.m.



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ABSENT: Clerk of Council Tiny B. Washington was absent.

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INVOCATION: Offered by Mayor Pro Tem John J. Rodgers.



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PLEDGE OF ALLEGIANCE: Led by Mayor Poydasheff.



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THE FOLLOWING THREE NEW ZONING PETITIONS WERE SUBMITTED BY CITY MANAGER

HUGLEY AND A PUBLIC HEARING WAS CALLED FOR BY COUNCILOR MCDANIEL:







Petition submitted by KLB Properties to rezone approximately 3.1 acres of

property located at 6726 Buena Vista Road from a C-3 District to an R-1A

District. (Recommended for approval by both the Planning Advisory Commission

and the Planning Division.) (16-A-05-KLB Properties)



Petition submitted by Hammond Development, Inc. to rezone approximately

7.5 total acres of property located at 1161 Curtis Street; 2741 & 2811 12th

Avenue; 1151, 1152 and 1153 28th Street / 2700 12th Avenue from C-3 and M-1

Districts to an A-O District. (Recommended for conditional approval by both

the Planning Advisory Commission and the Planning Division.) (17-CA-05-Hammond

Development, Inc.)



Petition submitted by Hammond Development, Inc. to rezone approximately

7.5 total acres of property located at 1161 Curtis Street; 2741 & 2811 12th

Avenue; 1151, 1152 and 1153 28th Street / 2700 12th Avenue (Jordan Mill) from

C-3 and M-1 Districts to MROD District. (Recommended for approval by both the

Planning Advisory Commission and the Planning Division.) (18-A-05-Hammond

Development, Inc.)



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OPENING REMARKS:



Mayor Poydasheff came forward to make some opening remarks. He spoke

briefly about the dedication of the City leaders in Columbus and the privilege

he has been granted to be able to work with this fine group of people. He

addressed the progress that is happening all over the City of Columbus, as well

as, the great work performed by the City departments.

He announced the plans to meet with the Department of Justice on the proposal

that the City has for addressing the staffing issues at the jail, as well as,

taking a tour of the jail. He gave an overview of the meeting that is

scheduled with Congressman Lynn Westmoreland and Senator Saxby Chambliss

regarding the EPA matters.



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OVERVIEW:



City Manager Isaiah Hugley approached the rostrum and asked the Department

Heads to stand and be recognized for their leadership. He began by speaking of

the challenges that the City has to address, because they are the pressing

matters. He then gave a listing of topics and areas for discussion as outlined

below:



This Strategy Meeting will deal with city issues, current status of city

operations and challenges facing our city and the FY 06 budget



? Our City like other municipalities across the nation is struggling financially



? Operating costs continue to Increase



? Citizen demands are greater



? There is limited opportunity for new revenue



? Few alternatives remain for consideration ? reduce, divest, work smarter,

other options.



The Economy



? Sales tax revenue has been up and down

? Interest earnings have been down and continue to be down (affected by

interest rate environment)

? Occupational Taxes were down (FY02 but coming back now)

? Franchise Fees were down (FY02 but coming back now)



Unfunded Mandates /State and Federal Cuts





? In recent years, unfunded mandates and State and Federal cuts have impacted

city programs and services requiring the City to fund unfunded mandates and

supplement and/or cut State and Federal programs.



City?s Cutback Measures In Response To Revenue Shortfalls





? Across-the-board percentage cuts

? Reductions in travel, training, and equipment

? Deferred capital projects

? Hiring freeze and layoffs

? Increased fees

? Reductions in consultants/contract services

? Borrowing from reserves (one time expenses)

? Cutbacks in support staff

? Protection of ?sacred cows? while reducing others









The Organizational Impacts To These Typical Cutback Measures

? Morale

? Fear of unknown

? Loss of good people

? Decrease in commitment

? Loss of Innovation/productivity

? Decreased customer service

? Decrease in efficiency

? Reduced Organizational effectiveness







What Are We Doing?



? We are encouraging department heads to hold employee briefings to communicate

the problem, keep all informed, and engage employees in finding creative

solutions for cutting costs and raising revenue.





? Community forums will be held after approval of the FY 06 Budget to explain

changes in the budget and City services, and to establish community priorities.









Councilor Turner Pugh wanted to emphasize that the main intent for asking

everyone to cut their budget by 10% was to make funds available to be able to

give employees a pay increase. City Manager Hugley explained that he would

continue to urge Department Heads to inform the employees of what we are trying

to do.



Today?s Agenda



? Justice Department Visit

? Status of Current Operations

? Planning and Development Issues

? The City?s Financial Picture

? Employee/Retiree Benefits

? Public Safety Issues

? Summary/Other Issues/Wrap up







City Manager Hugley predicted that the meeting would end at 3:30 p.m. He

announced that there is the Women History Month Celebration, on the Plaza Level

of the Government Center at 4:00 p.m. He also announced that Total System has

extended an invitation to him at their location at 4:00 p.m. as well.



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JUSTICE DEPARTMENT:



City Attorney Fay was asked to come forward to provide an update on the

visit from the Justice Department. City Manager Hugley briefly recalled the

previous visits that were made by the Justice Department and mentioned some of

the stipulated orders that were needed to bring the jail up to standard, to

include an additional 24 or more correctional officers. He reflected upon the

anticipation for the Local Option Sales Tax to be approved by referendum and

the position the City would be in to move toward complying to the court degree,

but the L.O.S.T. was not approved and the Justice Department has returned. He

shared the proposal that would be presenting to the Justice Department, which

would be conducted over a six-year time frame and outlined the chronology on

how the City would come into compliance with providing more staffing for the

jail and the cost involved.



? Hire Four (4) correctional officers (FY-06): Two (2) correctional Officers

added to the budget in July 2006 ($70,242.00), two (2) correctional officers

added in January ($35,121.00). Inclusion of operating material, uniforms, etc.

($2,800.00) for a total cost the first year (FY-06) of $108,164.00.



(This same pattern would continue through year six, which would be FY-11 budget

with a total cost over the six years of $685,876.00)



In response to questions from Councilor Suber regarding the concerns if

the Justice Department is not in agreement with the proposal, City Attorney Fay

emphasized the hopes that the Justice Department would continue to work with

the City to come into compliance, and the efforts that would have to be made to

revisit the issue if the Justice Department does not accept the

proposal.



Councilor Turner Pugh raised questions regarding the number of State

inmates that are in the jail and the impact that it has on the City.



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CITY OPERATIONS:



Public Services Director Rufus Riggs came forward to provide an update

regarding city operations. He then spoke briefly on the following issues:



? Work load continues to increase

? Provide high quality services

? Challenges to continue quality services

? Personnel reduction



311 Call Center



Public Services Director Riggs reported on the number of calls received

through the 311 Call Center and Citizen Service Center. He provided a listing

of top ten calls that are received with missed garbage pick up being at the top.



Public Services Director Riggs then highlighted areas that the Civic

Center Director has identified for bringing more revenue through the Civic

Center and are outlined below:



Civic Center



? Actively pursue events

? Promote concerts through staff

? Co promote with other agencies

? Work closely with local promoters

? Utilizing the Civic Center for local events (meetings, training classes, etc.)





Public Services Director Riggs reported that there would be a need to

increase the staffing at the Civic Center with the increased events days as

listed for FY-05:



? FY-03 ? 83 Event days

? FY-04 ? 122 Event days

? FY-05 ? 230+ Event days



Responding to a question of Councilor Anthony, Public Services Director

Riggs advised that the Civic Center is beyond a break-even status and is making

a profit.



Councilor Allen suggested inmate labor, at which time, Civic Center

Director Dale Hester advised that the turnovers are done at night from

approximately 11:00 p.m. until sometime into the next morning. He said that we

cannot use inmates for this time period.



Civic Center Director Hester then responded to questions regarding the

number of part-time employees at the Civic Center. He was also asked to

identify the means for which he using to advertise the Civic Center. In

response to Councilor Davis, Civic Center Director Hester provided updates on

the status of the other sports entities.



Department of Parks and Recreation Director Tony Adams came forward to

respond to questions regarding the economic impact of the sport franchises in

town.



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METRA:



Public Services Director Riggs pointed out the need for meeting the 10%

reduction. He proposed that the routes with low ridership would be targeted

and not supported and are listed as follows:



? Green Island Hills/Hilton Heights portion of routes would be eliminated.

? Milgen Road /Miller Road/Warm Springs Road connection would be eliminated.



He added that these are extensions to other routes. He then provided a

listing of routes that would continue but have shorter, reduced routes.



? Oakland Park/Cusseta Road - peak hour service only

? The interval between buses would increase from 30 minutes to 45 minutes or

more

? Dial-A-Ride Service - Pick up time of 15 minutes within the call to be

extended to 45 minutes or an hour.

? Training individuals that are disabled to use the regular service would be

reduced by 50%

? Increasing the fare for the downtown service from



When Councilor Turner Pugh asked about the impact of reducing and

eliminating bus route services, Director of Transportation Lisa Goodwin

explained the survey that was conducted and the upcoming April 7th Public

Hearing to discuss the proposal.



The following is a list of information to be provided to the public and/or

members of Council:



Provide a schedule to the ridership that shows the closest drop off and

pick up points for those services that would be reduced or eliminated.

(Councilor Turner Pugh)



Provide a map that shows where the route where the buses go now to include

the streets. (Councilor Turner Pugh)



Councilor Woodson expressed her concerns with the reduction of routes in

the Oakland Park and Cusseta Road areas. Director of Transportation Goodwin

explained alternative routes that are available, because the proposal would

also eliminate duplication.



City Manager Hugley reported that the less impacted routes have been

reviewed and expressed the fact that some reductions in services were tough

decisions that had to be made. Addressing the suggestion for increase fares in

leiu of route reduction, City Manager Hugley analyzed the statistical

information that reveals that an increase in fare would reduce ridership.



Provide a report on the savings for eliminating and/or reducing bus

services. (Councilor Woodson)



Does this reduction in service impact the amount of federal funding that

the State is providing to the City? (Councilor Henderson)



Are we still providing transportation for the youth to the swimming pools,

and if so, provide the cost that is involved with this service. (Councilor

Henderson)



When asked about the proposed increase in bus fare, City Manager Hugley

reiterated the potential loss of riders if the fare is increased. Mayor Pro

Tem Rodgers spoke of the number of riders for the extended route on the Warm

Springs Road by people who work at the nursing home and other employees that

work in the area.



Regarding comments about the Dial-A-Ride Program, Director of

Transportation Goodwin explained that this is a federal government policy. She

added that Dial-A-Ride is a complimentary service and AVA has stated that we

must be maintained.



Clarify to the citizens regarding the transit system on what is supported

by Federal Government, State Government and City Government. (Councilor Allen)



After more concerns were raised about the bus route, attention was called

to the fact that the Local Option Sales Tax did not pass; therefore, cuts are

going to have to be made.



When Councilor Turner Pugh made reference to the budget in refence to

purchases, Mayor Pro Tem Rodgers agreed that it would be better to separate the

capital from the operating budgets; so, that we would have an idea of what is

being expended because we did encounter significantly lower operational budget

expenditures in years past, we need to make sure that in any given year, that

we are only budgeting what we need to purchase. City Manager Hugley

recommended that the future documentation would provide the explanations.



Responding to an earlier question regarding the number of inmates in the

jail, Mayor Poydasheff reported that there is a total of 920 with the capacity

being a little over 1,000; therefore, approximately 105 are State inmates.

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NOTE: A scheduled break was taken with the time being 9:37 a.m. The

meeting reconvened at 9:47 a.m.

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PARKS & RECREATION:



Public Services Director Riggs reported that Parks and Recreation provided

3,000 hours of service to the Recreation Centers. He presented the proposal to

reduce the amount of hours to 2288, which would have an impact on the

population that the staff would like to target that is the youth that needs a

place to go to keep them off the streets. When asked if the reduction in hours

include the Senior Centers, Director of Parks & Recreation Adams responded by

say that it does not.



Public Services Director Riggs explained the recommendation to increase

the fee based programs, which does not cost the City anything are far as

personnel but they use the facilities.



Councilor Turner Pugh raised a question regarding the potential for white

water rafting, at which time, Deputy City Manager Bishop advised that all of

the studies have not been completed, but they may be looking at work on the

first phase, but before the project is completed, we are estimating about three

or four years.



City Manager Hugley expounded on the services provided at the Recreation

Centers by adding that all of the new programs are being offered at the

Recreation Centers are contracted out, but we are allowing them to use the

Recreation Center and they charge a fee and the City receives a percentage of

the fees; therefore, we are not staffing it.



In response to Councilor Turner Pugh regarding the proposed reduced hours,

Director of Parks and Recreation Adams explained that we open now at 10:00 a.m.

to 8:00 p.m. and the proposal is to go from 11:00 a.m. to 7:00 p.m.



Soccer Fields



Public Services Director Riggs continued with his presentation by

providing information on the status of the eleven soccer fields are used to the

maximum, and the problems associated with maintaining the fields. He suggested

that the City would need about six more soccer fields in order to accommodate

the sports. He then outlined the status of the equipment used and the usage

span that is listed below:





o Power mowers ? 7 years

o Push mowers ? 9 years

o Weed eaters ? 3 years



Councilor Davis asked about the suggestion last year to research the

opportunity to standardized more of the equipment, at which time, Public

Services Director Riggs said that we could start paying more for equipment and

standardized is not an option at this time.



Maintenance Fund:



Public Services Director Riggs pointed out the need for a contingency or

repair fund for items that are expensive to replace or repair; such as

chillers, roofs, etc. He suggested creating a maintenance fund and each year

putting monies aside to be prepared for the breakdown of expensive items. He

commented on the money that is set aside for the landfill.



Councilor McDaniel questioned if the Civic Center Endowment fund could be

used to make these types of repairs or the accumulated interest. Finance

Director Angela Cole advised that we could use the interest but not the

principle. Councilor Anthony made reference to a restricted accrued

depreciation fund. Finance Director Angela Cole explained that the City does

not have a depreciation fund.



Vehicle Replacement:



Public Services Director Riggs continued by providing information on the

number of vehicles for public safety and other departments that are in need of

replacement and the usage span. He recommended some plan should be put in

place for vehicle replacement.



Life span of the landfill:



Public Services Director Riggs reported on the life span of the land. He

projected that the current landfill could last ten years but with composting it

could last thirty years. He spoke of the cost involved with dumping at the

landfill and the savings involved with composting. He indicated that a

proposal would be presented to Council for consideration to move towards

composting.



Provide information on the communities that have tried composing to

reflect on the advantages and disadvantages and what kind of affects are

involved. (Councilor Turner Pugh)



Public Services Director Riggs pointed out that composting doesn?t work if

there are bio solids, because the process does not go through completely and

there would be a stinch to it. He said that those who have a program that

processes it clean there is a use for it, and if we don?t sell all that we

produce we could use it on the landfill as a cover.



Some members of Council expressed concerns about composting and

Councilor Allen suggested an incinerator and asked if we have made a comparison

study, at which time, Public Services Director Riggs expressed concerns with

the air quality when there is burning material in the area.



City Manager Hugley reported that we have done all of the studies to find

the most cost effective means of waste disposal. He said that we would provide

the information at a later date on this matter.



Provide a study regarding the use of incinerators and include information

regarding the use of an incinerator by Columbus Regional. (Councilor Allen)



Public Services Director Riggs also included in his presentation some

brief information on the disposal of electronic waste; such as, televisions,

radios, etc.



Check to see where the bankruptcy case is on the moving of the pipeline

from the landfill so that we can provide the methane to Denim North America if

we can get that. (Mayor Poydasheff)



In conclusion, Public Services Director Riggs did a recap of the proposals

that were mentioned throughout his presentation.



Parks and Recreation Director Adams responded to questions raised by

Councilor Henderson regarding the little league sports teams, the use of the

fields with respect to the traveling teams.



City Manager Hugley responded to concerns expressed by Councilor Suber

regarding the City competing with the private sector for events at the Civic

Center. Councilor Davis agreed by stating that we need to be mindful of

marketing the City and economic impact of certain entities that are using the

facility. He added that we are not in the business to make a profit. Mayor

Poydasheff outlined the profits gained from the use of hotel/motels,

restaurants, etc. by the visitors whenever the Civic Center is being used.



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WORKFORCE HOUSING:



Deputy City Manager Richard Bishop came forward to provide information

regarding workforce housing. He called attention to the increase of military

personnel at Fort Benning, which would also cause a significant impact in the

housing market. He then provide statistical information regarding the number

of building permits issued and are listed below:



Building Permits



? 2002 ? 615



New Home sale: (increase to the tax digest)

? 2003 ? 420 with an average price of $181,000.

? 2004 ? 407 with an average price of $189,000.



Provide a report that breaks down this information into zoning sectors

with the average cost in each category. (Councilor Davis)



New Home locations 2003:



? North of Macon Road ? 70%

? South of Macon Road ? 30%

? Total home sales below $150,000. ? 44% north and 56% southeast

? Pockets of development are in East and North Columbus



New Home locations 2004:



? North of Macon Road ? 60%

? South of Macon Road ? 40%

? Total home sales below $150,000. ? 29% north and 71% southeast



Total for 2003 & 2004:



? 832 houses that went on the digest

? North of Macon Road ? 65%

? South of Macon Road ? 35%

? Total home sales below $150,000. ? 37% north and 63% southeast



Councilor Henderson asked Deputy City Manager Bishop to find out the

influx of folks that are coming into Ft. Benning, the average rank of those

folks, what their pay is going to be and what that converts to in terms of what

they can afford; then, show the difference in what that dollar figures buys in

Columbus versus Lee and Russell County.



Deputy City Manager Bishop advised that he does have that information and

made an observation using compiled salary data to outline the price range of a

house that an E-7 in the military with 8 years of service could afford in

Columbus. He also responded to various other questions regarding the zoning

classifications for new homes and potential military homebuyers.



Summary



? 3,662 lots in the pipeline for development

? 87% will be in the R-1, R-1A, R-2 & R-3 zoning classifications at various

price ranges

? 539 apartment units coming on line



Deputy City Manager Bishop, responded to a question from Councilor Davis

about massing the apartments in certain areas of town, explained how the

determination would be based on the land use map.



When discussions ensued regarding making zoning request determinations

based on the number of students in that school district, City Attorney Fay

advised that the information could be taken into consideration but could not be

the sole factor for denying a rezoning request.



Provide the number of houses that are existing in the market for sale.

(Councilor Davis)



Deputy City Manager Bishop highlighted the affect of potential increase in

military presence that would locate in the community and are listed below:



Impact on the City Government



? Increased inspections for building permits

? Increased development

? Overuse of parks with increased children

? Citizens Service Center calls would go up

? Transportation needs

? Revenue gains, but would it be enough to offset expenditures



Provide a report on the number of houses that are repossessed each year.

(Councilor McDaniel)



Big Box Development



? Part of a retail center or a stand alone or free standing store

? Ranges from 90,000 to 250,000 square feet

? Big money makers - $100,000,000 million dollar business per year with 600

full and part-time employees

? Convenient one-stop shopping with low prices



Criticisms regarding Big Box Development:



? Traffic congestion

? Displacement of small businesses that sell similar products

? Abandoned buildings as a result of big stores entering the market place

? Zero sum gain (no increase in customers or revenue)



How to control Big Box Development:



? Retail caps (limits the size of the store)

? Develop design standards regarding fa?ade and landscaping





Controlling future abandonment of Big Box Store:



? Maintenance regulations on how the owners have to maintain the stores once

they become vacant

? Transportation guidelines - traffic studies are in place and necessary

improvements are taken care of by the developer and not the City



What other cities are doing regarding Big Box Development:

? Retail cap on new structures over 60,000 square feet, design standards,

demolition bond (covers 120% of the demolition cost) and after a certain amount

of time if the certain percentage of that space is not rented or leased, that

building is demolished. (College Park, Georgia)

? Retail cap, design standards (Roswell, Georgia)

? Retail cap (Fayetteville, Georgia)

? Retail cap of 32,000 square feet (Peachtree City, Georgia)



Ordinance options regarding Big Box Development:



? Restrict store sizes of the Big Boxes

? Regulate the aesthetic impacts and landscaping

? Develop controls over abandoned stores

? Transportation guidelines



There was some additional discussion regarding a potential ordinance to

address Big Box Development. Some members determined that the Development

Authority and the Chamber of Commerce should be involved with the process.



At this time, Deputy City Manager Bishop displayed pictures of development

in other cities to show that the developers will comply with the design and

landscaping standards outlined by the city, if they are required to.



Once the staff has discussed Big Box Development with the Chamber of

Commerce, bring the Council a proposed ordinance to work on. (Councilor Turner

Pugh)



Provide some type of staff report that explains the rationale for each

proposal for example; retail caps. (Councilor Hunter)



Check into the legality of the City retaining the option to acquire the

property, because sometimes the City has to keep the property up. (Councilor

Henderson)



Let?s have a worksession just on the Big Box Development once all of the

requested information has been gathered. (Councilor Woodson)



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Financial Picture:



Finance Director Angela Cole came forward to discuss the financial aspect

of the City Government. Using an overhead projector she outlined the following

topics and are listed below:



Impact on the City Government



? Key Revenue Sources

? Fund Balance

? SPLOST

Benefits



? Healthcare

? Medicare Part B

? Post employment Benefits

? Pension



General Fund Propery Taxes



? FY-05 ? 26.94

? FY-06 Projection ? 24.82

? FY-07 Projection ? 25.51

? FY-08 Projection ? 26.21



Mayor Pro Tem Rodgers asked questions with respect to improving the 95%

collection rate for property taxes. Finance Director Cole explained that she

has met with Tax Commissioner Lula Huff, who has not made a decision on how to

address this matter. At the request of Mayor Pro Tem Rodgers, Finance Director

provided some reasons why individuals were not paying their taxes. Responding

to further questions, Finance Director Cole indicated that some of the

properties would be hard to sell, because of liens on them. She said that she

would recommend writing them off in order to get the collection rate up.



Provide a report on the dollar value we are talking about, because some of

these properties are in court disputes, as well as the category that it falls

under. (Councilor Turner Pugh)



Mayor Poydasheff maintained that if taxes are due, we are going to make

every effort to collect it; then, work on the contentions later on. He said

that there must be some way that we can collect taxes, regardless of whether

they are in dispute or not, and if necessary even if the individual concedes or

not, we should seriously think about foreclosure.



Local Option Sales Tax



? The difference between Fy-04, FY-05 and FY-06 is about 300,000 or 400,000.

? Estimation for FY-07 and FY-08 is approximately $30 million



Interest ? General Fund:

? The interest in 2001 was close to $3 million

? Estimation for FY-06, FY-07 and FY-08 is approximately $1 million



Parks & Recreation Fees:

? Parks and Recreation Department is being more aggressive with fees

? Charging in areas that they have not before

? There will be reduced hours and a reduction in programs; therefore less fees



Court Fines & Forfeiture:

? Increased revenues generated from the Court; Municipal Court revenues are up,

Superior Court is down.



Finance Director Cole continuing making brief comments regarding the

following and provided statistical information using charts and graphs and

making certain projections into the future.



? Licenses and Permits: Permits are projected to remain consistent

? Franchise Fees: No projected increases

? Insurance Premium and Occupational Taxes: Budgeted amount of $8.1 million

and it came in at $8.6 million. Occupational taxes are expected to pick up

with the deadline of April 1st

? Fund Balance: Fee increases will be discussed as part of the budget meetings







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NOTE: City Manager Hugley called for the lunch break with the time being

11:48 a.m. and reconvened shortly thereafter at 12:00 noon.



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FUND BALANCE:



? Single most discussed topic for local government finance ? Stephen Gauthier,

GFA

? State of Georgia Issue ? Reserve Fund dipped to $51.6 million (2004) from

$551.3 million (2000)

? Local Debate



Fund Balance Facts:

? Fluctuates daily

? Administrative policy is to maintain 90 days of fund balance in General Fund

? Government Finance Officers Association (GFOA) recommends one to two months

of operating expenses, after consideration of a variety of factors, may need

to be higher



Why Fund Balance Needed:

? Economic downturns

? Natural Disasters

? Financial cushion in the event of unanticipated events



What is Fund Balance:

? Asset minus liability equals Fund Balance

? Two components of fund balance ? reserved fund balance and unreserved fund

balance

? Assets are not all cash but inventory and accounts receivable



What is an appropriate level of reserves:

? A variety of factors must be considered in evaluating fund balance. For

example

o How reliable are the revenue source?

o How does the economy affect them?

o Timing of cash inflows and outflows

o Cushion to provide long term financial stability



? The degree of variances or predictability may require higher levels of fund

balance to maintain liquidity



? In practice, high levels of unreserved fund balance are justified for a

variety of reasons

o Timing of revenue receipts (Debt service ? July 1)

o Elastic revenue sources (sales taxes, occupation taxes, franchise fees, etc.)

o Dependency of other funds on the General Fund (enterprise, grants)

? Inadequate levels of unreserved fund balance can lead to added costs for

borrowing, worsened credit ratings, and diminished flexibility to ?get things

done?



Finance Director Cole advised that at the end of June 30th, we had $30.7

million in fund balance in the General Fund. She anticipated that we are going

to use 3.91 days of fund balance. She suggested that if we use 3.91 days of

fund balance to balance the budget, we are making certain assumptions with the

first being that we are going to spend 97% by June 30th that would leave us

with 85 days in fund balance, which is a tight estimate. She explained that if

we continue on this same level, we are going to start eroding fund balance.



She then provided a chart that shows the fund balance in general fund for

FY-00 through FY-04. Councilor McDaniel asked if pay raises were proposed for

City employees would the amount have to come from the fund balance, at which

time, Councilor Turner Pugh explained that it would depend on the overall cuts

to the budget expenses, and we don?t know that amount. Finance Director Cole

pointed out that there are a lot of proposals in the budget and they all have

to be accepted by Council.



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SPLOST/LOST:



? SPLOST tentatively scheduled to end FY-08/FY-09

? LOST election can be held no earlier than December 5, 2006





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HEALTH INSURANCE:



? Heathcare and administrative costs are projected to top $15 million in FY-06

? LOST election can be held no earlier than December 5, 2006





Pharmacy Cost:

? HMO Average Prescription/Month - $30.10

? PPO Average Prescription/Month - $50.27

? Indemnity Average Prescription/Month - $112.35

? Note ? these averages are on paid prescriptions, excluding co-payments

Cost control - Strategies::

? Continue 3-tier pharmacy program

? Received $107,782 from rebates

? Employee Education Program

o Web MD

o 24-hour Nurse Line

? Achieve best price for goods and services

? Formulary and utilization

? Maintain a healthy workforce

? Self care tools

? Focus on high cost populations

o Disease and case management





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MEDICARE PART D ? PRESCRIPTIONS:



At this time, Human Resources Director Tom Barron came forward to provide

a presentation on Medicare benefits and is outlined below:





Benefits & Preminum

? Rx Benefits

? $250 Annual Deductible

? Then 75% Co-pay next $2,000

? Next $2,850 out of retiree?s pocket

? Part D pays $1,500/29% first $5,100 of Rx

? 95% Co-pay after retiree pays $3,600

? Projected Initial Premium $35 monthly

? Income <135% poverty, no deductible no premium

? <150% poverty, reduced deductible and premium



Employer?s Option

? Pay Medicare Part D Premium for retiree

? control of plan design, rules & cost is lost

? Provide wrap-around or supplemental coverage (Reimbursement Plan, no drug

card)

? supplemental coverage limits catastrophic coverage payments (95%) by Part D

? Provide actuarially equivalent drug plan and receive subsidy payment

? Our current plan may not meet requirements

? Cancel CCG Rx & increase retirement income

? Cancel CCG retiree drug benefit without offset

? Continue 3-tier pharmacy program



Timelines and Requirements

? By 9/30/05 advise Medicare if we will provide actuarially equivalent plan

? By 11/15/05 notify retirees of our plan intentions

? From 11/15/05 to 5/15/06 retirees must enroll in Part D to avoid penalties

for late enrollment

? Part D effective date 1/1/06



Provide the members of Council with a copy of the slide presentation.

(Councilor Turner Pugh)



Human Resources Director Barron responded to various questions by

describing potential scenarios to address the healthcare concerns. He also

provided the cost involved to the City as well as the retired employee with

each scenario. When asked about the amount the City pays on premium per

employee a month, Human Resources Director Barron advised that it is $112.00

per month for retired employees and $251.00 with all included. He pointed out

that it is projected to go to $138.00. He explained that the retirees pay

roughly 48% and the City pay 52% of the cost. He added that the retirees pay

$75.00 in premium for that coverage, but it cost the City $251.00.



*** *** ***



POSTEMPLOYMENT BENEFITS:



Finance Director Cole returned to the rostrum to highlight the

postemployment benefits, which is outlined below:



? Governmental Accounting Standards Board (GASB) has issued Statement #43,

Financial Reporting for other Post employment Benefits (OPEB) plans other

than Pension Plans

? All public sector plans that cover postemployment benefits will be required

to report cost of benefits on balance sheets.

? Effective for fiscal year beginning July 1, 2007

? Must Perform calculations every 2 years which project total costs of

providing benefits, actuarial accrued liability and unfunded actuarial

accrued liability

? Will include:

o Health

o Prescription Drugs

o Life Insurance



Impact

? Review existing plan designs for costs and quality efficiencies

? Assess how the liability will affect bond ratings and cost of borrowing

? Determine whether and how to fund the benefits to reduce liability



When Councilor Suber asked about the cost to bid out the self-funded

healthcare insurance, Finance Director Cole responded by saying that the City?s

self-funded plan cost $15 million but with a private company it would cost

$45.5 million.



*** *** ***



PENSION PLAN OBSERVATIONS ? 2004 Actuarial Valuation:



Human Resources Director Barron continued his presentation by discussing

the pension plan.



Assets & Liabilities:

? From 2000 to 2004 the market value of assets grew only 3.4%

? During the same period almost all liability factors grew by double digits

? Participants 15%

? Total Payroll 17%

? Benefit Present Value 26%

? Benefit Payments 25%





Future Liabilities Continue to Grow (2000 to 2004 trend)

? Within 5 yrs normal retirement # and % inc.

? General Government ? 113, +28%

? Public Safety ? 142, +25%

? Total of 255, +26%

? Within 5 yrs of early retirement # and % inc.

? General Government ? 252, +12%

? Public Safety ? 136, +11%

? Total of 388, +12%

? Total CCG Normal & Early - 643 +17%





Pension Board Recommendation

? Reduce plan earnings assumption to 7%

? Why?

o Current earnings assumption is 7.5%

o Plan unable to average stated earning assumption for several years

o Investment managers predict a 6.5% net rate of earnings over next 10 years

using current mix

? Requires $1.2M contribution more than scheduled increase in FY06



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NOTE: At this time, there was a break in the session with the time being

12:43 p.m. and reconvened at 1:05 p.m.



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COLUMBUS POLICE DEPARTMENT:



At this time, Major Charles Rowe from the Columbus Police Department came

forward to provide some Public Safety reports and the presentation was outlined

as follows:



Service Area

? Police Service Area - 220 sq. mi.

? Population - 188,965

? MSA - 284,564



Department Staffing

? Authorized Strength - 388

? Current Strength - 361

? Vacancies - 21



2004 Calls for Service

? Total calls 911 received - 296,653

? Total Police Calls Dispatched - 153,642



Average Time on Call

? 2000 - 39 minutes

? 2002 - 41 minutes

? 2004 - 47 minutes



Average Dispatch Time

? From 2001 to 2004 the average dispatch time for Priority Three Calls are up

69%

? Priority Three Calls are emergency type calls

? 2001 - 2.2 minutes to get the calls dispatched

? 2004 - 3.71 minutes to get the calls dispatched



Critial Shortages - 2004 More than 20 units on call



Time Period 1 week No. Hours

July 14-20 322 26.83

August 11-17 216 18.0

September 15-21 192 16.0

October 13-19 201 16.75

November 10-16 314 26.16

December 15-21 168 14.0

Councilor Suber asked questions regarding the police vehicle tracking

system that identifies the location of every police car, at which time, Major

Rowe pointed out that the system is not completely functional, because the

mapping is not down and the computer screens in the 911 area are not large

enough to display the total data. Major Swinney from 911 added some additional

statements regarding the vehicle tracking system, because the system still

would not be able to disclose the status of that officer regarding the current

call and the ability of that officer to break away to take another call. Major

Rowe reiterated that the dispatchers know where the police cars are but do not

know the status of the police officer.



Provide a breakdown of the 361 people and where they are, because we need

to know where the bulk of our employees are and the time, if they are not on

patrol. (Councilor Turner Pugh) (There are only 26 patrol cars on each shift.)



Critial Shortages - Comparison

? Number of occurrences: 2002 (666), 2004 (1,413); Occurrences up 112%

? Total Time: 2002 (55.47), 2004 (117.74); Hours up 122%



In response to questions from Councilor Woodson, Major Rowe advised that

there are 26 beats, but there would be approximately 1/3 of that shift that

would be off work for that day.



Summary

? Continued increase in calls for service

? P3 Dispatch times: Up 69%

? Time on call: Up 20%

? Critical levels: Up 112%



Recruiting Efforts

? 2005 Applications received

o March: 52

o YTD: 59

? Qualifications

o New Standards: 40

o Previous Standards: 19

? Comparison with Previous years

o 2003 - 10 applications

o 2004 - 23 applications

? Initial Review

o 15 rated good candidates

o 26 excluded for drug/criminal history

o 25% would reach interview stage



Major Rowe responded to comments from Councilor Henderson regarding the

misperceptions that the standards are being relaxed when it is just the

educational requirements of the police officers that have been lowered. He

emphasized that we would have a larger pool to work with, but these people

would have a lower amount of education at this time, but nothing else has

changed.



There were some questions pertaining to the appointment of a committee

with regards to Public Safety matters. Major Rowe explained that the committee

was to review the proposal presented in 2003 by Former Police Chief Willie

Dozier, relating to requests for more police officers, highlighting the

shortages and the staffing concerns of the Special Units. Mayor Pro Tem

Rodgers recalled that his understanding was that the committee was created to

assist with the recruitment efforts. Mayor Poydasheff stated that he appointed

the committee and its primary concern was to study what needs to be done to

increase the recruitment efforts. He pointed out that recommendations were

made and most all of them were implemented. In addition to that, Mayor

Poydasheff made reference to the Public Safety Advisory Committee that was

established.



Major Rowe then reported on the increase duties of police officers to

include, but not limited to: Increase area of patrol (Bibb City), River

Center, Riverwalk, Civil Museum and patrol of parks due to the elimination of

Park Police. He explained that the following events and activities have taxed

the Police Department?s overtime budget.



Events that need Police Patrol

? Columbus Airshow

? SOA Watch Protest

? Bike Ride Across Georgia

? Family Day in the Park

? Thunder on the Hooch

? Riverfest

? Protest March regarding ?Kenneth Walker Case?



Major Rowe also spoke of the mandated training that has pulled some of the

manpower and provided a list of the required training.



Alarm Calls Trend

? 2001: 23,367 - 16% of the calls

? 2002: 26,020 - 17% of the calls

? 2003: 26,607 - 17% of the calls

? 2004: 26,010 - 17% of the calls



In response to a comment made by Major Rowe, City Manager Hugley explained

that there are no collections being made on false alarms beyond three, at this

time. He said that he knows that we are working on a system that the Police

Department would report to the Finance Department this information; then, the

collection process could begin. He advised that it has to be reported through

the Police Department. After some questions were raised, City Manager Hugley

said that he would provide a report on this system.



After making reference to the volume of calls and the need to reassign

beats to the north end, it is because of these factors that Major Rowe

requested that three additional beats be added towards the north end of town.

In response to a question of Councilor Suber, Major Rowe explained that the

reassignments have not been done because of the lack of manpower. Councilor

Suber pointed out that the Police Department has the power to reassign beats

and questioned why it has not been done. Major Rowe explained that they have

looked at ways to reallocate the manpower for the last two or three years, but

we have other things going on that we are responsible for that we have to keep

programs going.



At this time the Police Department presentation was concluded, City

Manager Hugley advised that we would come back to the Council at a work session

when Police Chief Boren could be present.



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COLUMBUS FIRE & EMS DEPARTMENT:



Fire Chief Roy Waters approached the rostrum to discuss or respond to

questions regarding the EMS Supplemental coverage. He also spoke of the

paramedic class that was started in January 2005 with 13 students in the class

and of that 13, there are 12 that are our personnel. He reported that the

program is scheduled to end in December, if the 12 personnel from the Fire &

EMS Department make it through the program; then, the department would be in

great shape.



In response to Councilor Turner Pugh, Chief Waters reported that they are

conducting the paramedic program in-house. He then explained how this State

approved program works.



Fire Chief Water mentioned a plan that is being considered for

implementation a program in either April or May for EMT ?B?, which would

require three levels of training: EMT ?B? for basics, EMT ?I? intermediate and

EMT ?p? for paramedics.



Mayor Pro Tem Rodgers made reference to the response from Fire Chief

Waters regarding the ambulance fee collections. He then spoke of the

collection efforts of the responsible agencies. He also expressed the concerns

he has received regarding the practices of one of the private contractors that

has been using strenuous collection efforts and he does not believe that they

are adhering to the spirit of the law. He pointed out that our intent in

employing them was to provide emergency coverage to all of the citizens of

Columbus, but not to have them exsorbently charged because it was a private

service.



In response to a question of Councilor Suber, Chief Waters anticipated

that the City is expected to one day provide the service for the entire

community, but not at 100%. He explained that we previously were running the

Advanced Life Support on every call, but our intent now is to use the cross

training from the fire fighters to EMT ?I? and have those personnel assigned to

the ALS. He pointed out that when we have a major trauma call the paramedic on

the truck would get off and ride with the ambulance and one of the EMT?s would

get off and fill his or her position. He mentioned the timeline that was used

to go to a true ALS system and we are still on track for doing that. He then

spoke of the capital investment that would be involved with providing the

necessary equipment if we wanted to go to a true ALS system with the medics on

the truck and the Council would have to make the decision to fund that or not.



*** *** ***



Promotional Testing



Fire Chief Waters called attention to the timeline for promotional

testing. He recalled that the consulting firm of CWH had worked with us on

merger and the promotional procedures, and the ordinance that was approved made

reference to promotional testing every two years. He pointed out that this is

the year for testing and the cost is projected to be a little over $200,000,

which would be an additional cost that would need to be added to our budget.

He cautioned about the serious timelines that must be met about notifying the

candidates about the test in advance, and if we go to July, we would be pushing

it to the very limit. He said this is another concern that would have to be

addressed during the budget process for this fiscal year coming up.



Fire Chief Waters then responded to questions regarding the process and

the timeline. Councilor Turner Pugh suggested that we preliminarily take these

funds out of the contingency.



Fire Chief Water also made comments in reference to the changes that were

made to the physical ability testing and addressed some of the previous

concerns that were expressed. He advised that to minimize any further

concerns, the CWH firm is going to have the exam validated in this calendar

year and it is our hopes that they would start work on this within the next 30

to 45 days.



He mentioned the six fire stations that have been completed with an

upcoming ribbon cutting ceremony for Station 10 on April 9th. He reported that

Station 14 located on River Road is open, but it would be approximately a month

before a ribbon cutting ceremony could be held. He said that this still leaves

us with two fire stations that has to be completed: Fire Station #2, located

on 29th Street and Station 9. He expressed the challenges that would be faced

with Station 9 due to the availability of property.



Fire Chief Water called attention to requests that he has proposed for the

upcoming budget. He advised that he has requested three fire trucks in the

proposed budget coming up this year that starts July 1. He expressed the need

for these fire trucks and explained the reasons why the trucks are needed. He

made reference to another budget request for three SUV?s with the three

Battalion Chiefs for a total of nine people using three vehicles. He then

expressed concerns regarding two fire stations (Stations 1 across from the

Government Center and 6 that is located on Brown Avenue) that are over 30 years

old that need heating and air conditioning replacements. He said that the cost

has been estimated at $30,000. per station to do the change out.



At this time, Fire Chief Waters responded to various questions from the

members of Council. City Manager Hugley advised that we would go out for RFP?s

to address the heating and air conditioning for the two fire stations.



In conclusion, Fire Chief Waters announced that Region 7 EMS would be

hosting an awards banquet tonight to recognize quite a few of our people who

have been nominated to receive awards.

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SUMMARY:



City Manager Hugley offered a recap of items that were discussed

throughout the meeting.



n We must look at our opportunities and threats:

? Build Revenue Strength

? Contain Expenditures

? Improve Efficiency and Enhance Service

? Accountability Structure

? Multi-Year Planning

? Things we should avoid



n





In response to a question of Councilor Turner Pugh, City Manager Hugley

reported that there would be a savings of approximately $6.2 million as a

result of the budget reductions that the departments were asked to cut.



City Manager Hugley also responded to questions from councilor Henderson

regarding the pay study that was conducted by the University of Georgia and its

status. Human Resources Director Tom Barron estimated that UGA would have

completed the study by July 2005.



Referring back to the $6.2 million, City Manager Hugley further explained

that we had a $6.2 million reduction in expenditures as a result of department

cuts. He pointed out that the expenditures totaled $122 million and we

projected $116 million in revenue, but we now have a $6.2 million reduction in

expenditures, which balances the FY-06 budget.



n Considerations to Build Revenue Strength:

? Update user fees and administrative fees automatically for inflation

? Update user fees by performing cost analysis of services where user fees are

involved in areas like solid waste, inspections, business licensing, mowing

and other nuisance abatements, fines and penalties, court fees, bad checks,

etc.

? Compare taxes and user fees to other jurisdictions to see if increases will

impair local economic competitiveness or create other adverse impacts.





? Re-examine fees for placement of private facilities on public property such

as antennae, cables, towers, buildings, franchise fees, ROW permits and street

cuts, etc.

? Look for opportunities to be entrepreneurial (IT services for non-profits or

other smaller governments, advertisements and sponsorships on public

facilities,etc.)

? Adopt a stronger delinquent revenue collection program







n Considerations for Expenditure Containment:

? Staff reductions through attrition, hiring freeze, reduce ratio of

managers/supervisors to staff

? Examine inefficient work rules and past practices (stand-by premiums,

procedures that increase overtime costs, etc.)

? Evaluate alternatives such as outsourcing areas such as EMS, tree-trimming,

stump grinding, landscaping, etc.

? Redesign employee group health care by increasing co-pays, drop or reduce

retiree coverage, limit catastrophic costs, target wellness initiatives to

actual claims data, etc.





n Efficiency Improvements and Enhanced Service:

? Streamline operations to increase productivity (consolidation of services

internally or externally, functionally or in terms of administration, e.g.

human resources, shared purchasing, etc.); list services provided by all

departments and divisions to determine if there are overlaps, redundancies or

opportunities for merger

? Sell delinquent/foreclosed, or surplus properties and use funds for

non-recurring expenditures

? Purchase in bulk with other governments, school system, etc.







Accountability Structure:

? Establish clearly defined cost and service justifications for services

provided to citizens and taxpayers

? Re-evaluate whether services advance the mission and goals of the

organization; if they do not then eliminate.

? Solicit public input on the tough financial issues such as how to finance or

how to select priorities





n Multi-Year Planning:

? Utilize multi-year operating budgeting while adopting a sound tax and fund

balance policy (Fund Balance ? 1 to 3 months of annual operating expenditures

and Contingency 3 to 5 percent of annual operating expenditures)

? Enact multi-year capital budgeting in General Fund

? Employ a long-term work-force strategy



Check to see if there are any federal grants or funds available for the

purchase of fire trucks. (Councilor Turner Pugh)



Check to see if there are any federal funds or grants available for

emergency vehicles as well. (Councilor Allen)



n Things to Avoid:

? Use of one-time revenues to balance the budget

? Delay of purchase of required capital replacement which, if not made, will

increase operations costs

? Depletion little by little of the government?s reserves either through use of

fund balance or decreasing the amount in contingency of projects and the

operating budget

? Reduction of hours at facilities each week and make corresponding reductions

that are arbitrary in salaries and expenses.





n The CCG remains strong:

? Great Department Heads and Employees are our key to meeting the challenge of

the day and taking care of our citizens

? We continue to build leadership capacity

? Think strategically, working smarter and producing better

? Promoting learning and planned change

? Developing partnerships and alliances

? Continuously envisioning the future and exploring our customer?s need.

? Our best days are yet ahead of us!



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NOTE: Councilor Woodson left the meeting during this part of the

proceedings with the time being 2:34 p.m.

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When the report comes back that show the operation budget and what was

actually spent, lets break down miscellaneous since it equates to $18 million.

(Councilor Turner Pugh)



Put up a suggestion box for employees to submit recommendations on how to

reduce cost. The employee could remain animous if they choose to. (Councilor

Turner Pugh)



Provide an update of surplus property that could be sold off. (Councilor

Allen)



Provide a report on how much greenspace the City is maintaining.

(Councilor Allen)



Councilor Henderson emphasized the importance of not making deviation of

policies that have been set by department heads. He provided an example by

mentioning when the Council receives calls regarding the cutting of grass on

the right-of-way.



Councilor Anthony asked if it was possible for the City to sell fire wood,

at which time, Public Services Director Rufus Riggs reported that he had a team

to look into this matter and found that there were some expenses that go along

with that, for example; a log splitter, a location for storage, etc. He said

that it would be profitable with very close management, but we did not move

forward with that because he did not believe that he could show the Council

that we could make money on this.



Check into ways that other communities are raising revenues with fees

through public safety. (Councilor Davis)



Lets look into the weekly campaign signs to see how to prevent this

practice. (Mayor Pro Tem Rodgers)



In response to questions from Councilor Henderson regarding prioritization

of guardrails, Deputy City Manager Richard Bishop advised that we are almost

complete with the specifications to put out the bids for guardrails for

Cherokee Avenue, which would be our first.



*** *** ***



With the conclusion of presentations having been met, this meeting

adjourned with the time being 2:56 P.M.







Sandra T. Davis, DCMC

Deputy Clerk of Council

The Council of Columbus, Georgia