Columbus, Georgia

Minutes



Budget Review Committee



May 21, 2002







Present: Chairperson Evelyn Turner Pugh, Mayor Pro Tem John J. Rodgers and

Councilors R. Gary Allen, Berry Henderson, Julius Hunter, Jr., Robert

Poydasheff, Richard Smith (arrived at 4:20 p.m.), Nathan Suber and Evelyn

Woodson. Mayor Bobby G. Peters, City Manager Carmen Cavezza, City Attorney

Clifton Fay, Finance Director Kay Love and Financial Planning Division Manager

Angela Cole.



Absent: Councilor Charles E. McDaniel, Jr. was absent.



Guest: Mr. Jim Yancey, Mr. Jim Buntin and Mr. Steve Butler from the

Development Authority.





Call To Order:

Chairperson Evelyn Turner Pugh called the meeting to order at 4:13 p.m. in the

Conference Room, Ground Level of the Government Center, Columbus, Georgia.





DEVELOPMENT AUTHORITY:



City Manager Cavezza said that we asked the members of the Development

Authority to be present to talk about the economic development piece. He

explained that right now, we have $400,000. in the general fund for economic

development, but we have a request listed on the add/delete list to reduce that

amount to $250,000. He said that the discussion at the last meeting was that

the committee members wanted to know what that money would be used for.



Mr. Jim Yancey, representing the Development Authority came forward to

emphasize that there has never been a better time to invest in economic

development then right now. He said that what we have in the way of resources

is not going to allow us to compete effectively in the future as we have been

doing in the past. He said that our prospect list is not nearly as long as it

has been in the last five years. He suggested that the committee put into the

budget a portion of a mill that could be directed to the Development



Authority of Columbus that could be used for economic development. He

explained that their intentions are to come back with a definitive budget; so,

the committee would know what we would spend that money for, but we are not

prepared for that today. He requested assistance in the form of an annual

amount of money that could be funneled into the Development Authority to be

used strictly for economic development purposes. He advised that this funding

would give us an opportunity for better planning and utilization for the

resources that we have in the form of human resources, if the Development

Authority could receive this kind of support from the committee members.



Mr. James Buntin, Former Chairman of the Development Authority, came forward to

first express his appreciation for the support that the Council has given the

Development Authority. He maintained that the City needs a systematic way of

funding the Development Authority which gives us something to plan with. He

then called attention to a document titled ?Total Tax Digest 1988 ? Present?

and made several references to the document. (A copy was filed for the

record.)



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NOTE: Councilor Smith arrived at this point of the meeting with the time being

approximately 4:20 p.m.

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Mr. Stephen Butler, representing the Development Authority, was present to make

additional comments regarding the funding for economic development. He also

informed the committee members that the Development Authority would be holding

a meeting this week and would like to have the opportunity to come back and

give the committee some details about how we think this money should be spent

and what the needs are of the Authority.



Councilor Suber said that it was his understanding that we were only giving the

Development Authority $100,000. to $150,000., but the printout shows $185,000.,

at which time, City Manager Cavezza said that $185,000. goes to the Valley

Partnership; this is something that we give every year. He explained that last

year we gave $100,000. for economic development and $185,000. for the Valley

Partnership. He pointed out that they are two separate entities.



There was continued discussion on this matter with various committee members

expressing their views. As a result, the following item was placed on the

add/delete list:



- .25 mills for economic development (Request of Councilor Smith)







Councilor Allen recalled that we had talked about not tying the amount to a

mill per se and using the .25 millage or whatever that amount turns out to be

to calculate the amount, but not tie it to a millage amount. He pointed out

that it is not going to be one mill every year, because we all know that the

one mill goes up every year and would cost us more. He suggested that if we

all agree on a .25 of a mill; then, whatever amount that turns out to be in

dollars we could revisit this matter each year to reaffirm that amount which

the Development Authority would be receiving at least that dollar amount each

year. The following item was also placed on the add/delete list.



- .125 mills for economic development (Request of Councilor

Poydasheff)



Mayor Peters briefly explained the reason that he chose to take the $400,000.

for economic development from the fund balance. Finance Director Love

explained that if we can equate dollars to a millage rate for anything outside

of the general fund; then, we must levy a millage rate in order to get the

digest approved when we take it to the Department of Revenue. She pointed out

that it would equate to a dollar amount, but we would be levying a millage

rate. She said that if the Council chooses to address it the next year and if

the millage improves and the Council wanted to keep it at the remaining amount;

then, the Council would be rolling back that millage rate for a lesser amount

to come up with the dollar amount that the Council wants to appropriate.



When asked by Councilor Henderson about what would be different next year

regarding employees? raises or what are we doing this year that would position

us next year to provide pay raises, Finance Director Love acknowledged that we

would be in a worse state next year due to bringing on the new employees for

the jail that we have to recognize. Mayor Peters agrees that next year there

should be a millage, but not this coming fiscal year.



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At this time, City Manager Cavezza provided an overview of topics for

discussion at the next Budget Review Committee Meeting.



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Mr. Jim Yancey, in his closing remarks, stated that he equates our economic

renaissance to the creation of the Consolidated City/County government, because

it is us together working as a team.



There was some additional discussion on the millage, at which tine, Mayor Pro

Tem Rodgers said that he is talking about putting the millage off by itself.

He said if we start



with the first component as that $400,000., which is not a part of the general

fund balance; then, do we have to levy 16.38 mills? Finance Director Love

replied to get the $400,000. yes, because that is coming from fund balance;

therefore, if you want to start with that $400,000. it has to equate to

something, because it comes from the general fund, but if you are going to have

a separate millage rate; then, that?s outside the general fund. She added that

if you don?t do the $400,000. out of general fund, that amount goes back into

the fund balance.



There were continued discussions with Finance Director Love responding to

various scenarios that were suggested by the members of the committee.



Councilor Suber asked Mr. Jim Yancey if he was going to bring back to the

committee next week a projected budget for the $400,000., at which time, Mr.

Yancey agreed to do so. Councilor Suber also asked that he bring back a

projection for a lesser amount of approximately $250,000.



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There being no further budget items for discussion, this meeting adjourned at

5:10 p.m.









Sandra T. Davis

Deputy Clerk of Council

Council of Columbus, Georgia