Columbus, Georgia

Minutes



Budget Review Committee



May 28, 2002







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

at 11:29 a.m.) and Councilors Berry Henderson, Julius Hunter, Jr., Charles E.

McDaniel, Jr., Robert Poydasheff, Richard Smith, Nathan Suber and Evelyn

Woodson (arrived at 11:28 a.m.) Mayor Bobby G. Peters, City Manager Carmen

Cavezza, City Attorney Clifton Fay (arrived at 11:31 a.m.), Finance Director

Kay Love and Financial Planning Division Manager Angela Cole.



Absent: Councilor R. Gary Allen was absent.



Guest: Mr. Steve Butler, Mr. Fernando Verdree, Mr. Bob Gilson and Mr. Dick

Ellis from the Development Authority and Mr. Mike Gaymon from the Chamber of

Commerce.





Call To Order:

Chairperson Evelyn Turner Pugh called the meeting to order at 11:24 a.m. in the

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



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DEVELOPMENT AUTHORITY:



Mr. Stephen Butler recalled that we were present at the last meeting and

appreciates the opportunity to appear today. He said that it was our task to

provide the committee with our best effort as to what we think Columbus needs

to do. He reported that the Development Authority held a called meeting to put

together a plan of what we believe we would need to be competitive and to be

able to carry out our mission in the arena of economic development. He read to

the committee members the mission statement of the board. He simply stated

that the Development Authority is charged with having available land product

acquired and developed product and aggressively marketing that product. He

then referred to a study conducted by Georgia Tech Institute and Mr. John Mills

with



the Economic Development Institute, who was present in the audience. He said

that this is a local impact analysis. (A copy of this document was not filed

for the record.)



He also presented a document titled ?To Local Development/Industrial

Authorities? which is a survey that outlined the millage commitment along with

the dollar amount for various communities based on 1999 data. (A copy was

filed for the record.) He pointed out that quite a number of communities have

a millage commitment of over one mill and went on to name those counties.



He then called attention to a memo from Mr. Stephen Butler, the Acting Chairman

for the Development Authority. He maintained that the total on-going need is

$705,000. with an additional one-time need of $225,000. (A copy of this memo

and its attachments are hereby filed for the record.) Reading the excepts of

the memo, Mr. Butler added that ?With great respect for the very difficult job

you have of being good stewards of public funds, it is our belief that our

community needs to make a long-term commitment and investment in economic

development by approving funding to the Development Authority at a rate of 0.25

mills.? He provided a brief review of the attachments to the memorandum titled

?Priority Needs 2002-2003? and are listed as follows:



I. Debt Reduction of Miller Site, site Development and improvements

II. Chip Plant Recruitment

III. Target Industries

IV. Consultant Visits

V. Packaging of Parks

VI. Site Acquisition

VII. Site Studies



In conclusion of his prepared statements, Mr. Butler briefly explained that we

need to make an investment on this order if we intend to be competitive.

Chairperson Pugh reiterated that the commitment was made at the last meeting

that whatever monies we give for economic development that we expect a report

from the Development Authority either monthly, quarterly, semi-annually or

annually.



At this time, Mr. Butler responded to various questions of the committee

members, and 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. Bob Gilson and Mr. Mike Gaymon made comments

regarding the target industries and prospects.



Mayor Pro Tem Rodgers asked questions regarding the Miller Road site with Mr.

Verdree and Mr. Gaymon acting as the respondents.



Councilor Henderson asked if we already have $400,000. identified in the fund

balance that is in this budget; then, what would be the problem with shifting

that to another line item in the budget to free up .13 mills under our 16.38

and allow the tie in of a millage to the Development Authority without having

to raise the millage. Finance Director Love replied that there is nothing

legally wrong with it; however, physically wrong with it is that you have the

consideration of already starting out next year? for example, if we would say

that the amount is $400,000; then, you would be starting out $400,000. in the

hole. She said that if she understands correctly; then, we would reduce the

expenditure in general fund and roll back the millage rate, which would also

reduce the revenues. She briefly explained, using the overhead projector, that

currently, the $400,000. is a part of that $116,000. expenditure number, and we

are using $5.5 million made up out of fund balance; 7.75 mills supports that of

the 8.63, which is subject to the cap. She said that if we take the $400,000.

out meaning that we reduce the expenditures in general fund and roll back the

millage rate by .13, we would have less revenues; therefore, we would still use

$5.5 million in fund balance. She reported that the Council would levy a

millage of .13 in the total millage rate, which would not go up.



City Manager Cavezza pointed out that next year we would have to raise the

millage and the property taxes, with Councilor Henderson pointing out that we

would have to raise it anyway if we were to leave it just as it is now. City

Manager Cavezza said the concept is to fix it this year by keeping everything

equal, add the economic development millage, roll back the other millage, so

that it all adds up to the same number, at which time, Councilor Henderson

confirmed that this was his point.



There were continued discussions on this matter with various committee members

expressing their views. In response to some comments that were made, Finance

Director Love pointed out that this is operating expenditures and not capital,

so already we have .13 or $400,000. less in property taxes in the general fund

to meet that gap next year and that is a serious problem. Responding further

to Councilor Henderson regarding the projection of growth, Finance Director

Love informed the committee members that we are projecting a 2.75% growth, but

once we get into the Financial Planning briefing, everyone would be able to see

how fast that fund balance dwindles to nothing.



Chairperson Pugh called attention to the three scenarios for economic

development that are on the table for the add/delete list and are as follows:



- .08 mills (Request of Councilor Suber)

- .25 mills (Request of Councilor Smith)

- .13 mills (Request of Councilor Poydasheff)



Chairperson Pugh then placed another scenario on the add/delete list for a vote

and is listed below:



- .15 mills, which is $466,504.00 for economic development (Request of

Chairperson Pugh)



Mr. Ed Sprouse, representing the Development Authority, emphasized the need for

the committee members to review the track record of economic development in

this community and pointed out that over the long run the City would benefit

from the increase in the current value of the projects that have been outlined.



Councilor McDaniel estimated that .25 mills would accumulate $777,000., but to

give the Development Authority exactly what they want, we would need an

additional $153,000. Chairperson Pugh agreed that if we gave the Development

Authority everything that they wanted which is $930,000; then, the millage

would have to be more than .25 mills. After some brief calculation, Finance

Director Kay Love projected that it would have to be .30 mills. Councilor

McDaniel then placed the following item on the add/delete list:



- .30 mills- $930,000. for economic development (Request of Councilor

McDaniel)



Mayor Pro Tem Rodgers suggested that we apply the millage of .15 and use the

proposed fund balance reduction to compensate our balance; then, reproject the

$66,000. difference that would be generated by the .02 mills and go to the .25

mills next year. He pointed out that this way, we would have no tax increase

this year.



Once again, Chairperson Pugh reiterated that now we have five scenarios that

have been proposed: .08 mills, 0.25 mills, 0.13 mills, .15 mills and .30 mills.



When Mayor Pro Tem Rodgers proposed $185,000 plus the $466,000. Chairperson

Pugh immediately asked Finance Director Love to calculate the millage for this

amount. While Finance Director Love completed this process, she asked City

Attorney Fay to briefly explain the $185,000. for Valley Partnership, at which

time, City Attorney Fay advised that under the millage statute, the Council

could go up to 3 mills, but it has to go to the Development Authority, if

that?s from tax revenue. Chairperson Pugh asked if the funds for the Valley

Partnership ($185,000.00) be done out of the Development Authority with City

Attorney Fay responding that it could be done. Chairperson Pugh added that the



answer is that we could increase the millage to incorporate that, at which

time, City Attorney Fay agreed, but added that the transfer has to be first to

the Development Authority. Finance Director Love advised that the $651,000.

would equate to .21 mills



After some additional discussion, it was the consensus of the committee to

administer the .25 mills. Councilor Poydasheff withdrew his request for .13

and Chairperson Pugh withdrew her request for .15 mills.



Councilor Poydasheff moved approval of .25 mills. Seconded by Councilor

Suber. Mayor Pro Tem Rodgers clarifying the motion stated that .25 mills which

is $777,000. would be set up in a special account for economic development to

include payment of the Valley Partnership dues in the amount of $185,000. by

the Development Authority to the Chamber of Commerce. He pointed out that in

actuality, we are just re-routing the money for the Valley Partnership through

the Development Authority. Chairperson Pugh advised that the Development

Authority would actually be receiving $592,504.00. She then called attention

to the motion, which carried unanimously by those nine members present for this

meeting.

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NOTE: The committee members took a brief recess at 12:35 p.m. and reconvened

at 12:55 p.m.

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CDBG BUDGET:



City Manager Cavezza called attention to the document that presented the CDBG

budget (A copy of this document has been filed for the record.) He pointed

out that under Economic Development the CDBG projects are funded in the amount

of $2.7 million of which $1.5 million goes back for the Section 108 Loan

Principal Repayment ($1,477,238.) He also mentioned that under Public

Facilities and Improvements on the property program, there is $1.5 million that

was derived from the sell of the Three Arts Theater and that property. He said

that this money we want to put it into the infrastructure of Bibb City. He

confirmed that the next Community Improvement Program is going to be the Bibb

City/Second Avenue area, and we would use that money in that redevelopment area

in addition to the $500,000. grant that they already have. He pointed out that

the other items on this listing are self-explanatory.



Economic Development ? SBA Loan Programs: City Manager Cavezza called

attention to the Economic Development, SBA Administration and the Economic

Development, SBA Loan Program. He maintained that in the past, we had been

providing the funds for those loans with Uptown Columbus, Inc administering

that piece of it for us. He explained that we don?t have that money this year

to do that; therefore,



Uptown Columbus, Inc. is working with the State, SBA and private banks to get

the funding for those programs, but we are going to be watching that carefully,

because if they can?t get the money for those programs; then, there would be

the question as to whether or not we should be subsidizing those programs.



City Manager Cavezza along with Ms. Sidre Hearn responded to several questions

from the committee members. He determined that we need to come back to the

committee with some data on the project, but the concern is that if they cannot

come up with the funding; then, that piece of it is in question. Councilor

Poydasheff asked if anyone has audited the utilization of funds to make sure

that the City is comfortable with the fact that this money is not co-mingled

with any other monies, at which time, City Manager Cavezza responded by saying

that there has probably not been an audit of that.



Redevelopment Areas: City Manager Cavezza commented on the Redevelopment areas

by stating that two years ago the Council made the decision to focus money into

a redevelopment area similar to what was done in the Lawyers Lane area; that

project has been completed. He advised that we are now looking at the Bibb

City/Second Avenue area.



Fair Housing/Counsel Service: He pointed out that the counseling services is

something that has not been done in the past as well as it should be, but we

are going to make sure that it is done properly this time.



Direct Homeownership Assistance: Councilor Suber asked about the Direct

Homeownership Assistance. City Manager Cavezza informed the committee that for

the Director Homeownership Assistance piece of it, we are talking about

$525,000. for that. He confirmed that this is a successful program. He

estimated that the City made over 120 loans through that program.



Rehabilitation Multi-Unit and Owner Occupied: Referring to the Rehabilitation

Programs, City Manager Cavezza said that we are going to have to decide how

much money do you put into a home that is of not much value, and we are trying

to work a program in conjunction with CHI. He pointed out that we have a huge

backlog in rehabilitation, and some of them probably are worth fixing.



Councilor Suber also asked if a policy has been designed regarding the

contractors involved. He expressed concerns in that most people have no idea

about what type of contractor they are using, and there have been some

contractors that did not come up to par. Chairperson Pugh requested that a

committee be formed selecting some members of Council to work with Ms. Lynette

Gross on issues that we have with the Home Program, along with some of the

requirements from DCA that we could look at implementing with our local

government. Councilor Suber then asked if we are taking those companies off or

our list. Deputy City Manager Richard Bishop mentioned two issues that they

would need direction from the Council and are as follows; (1) How to select

contractors and (2) How to spend this money concerning the list of backlog.

Mayor Pro Tem Rodgers asked if we could set a threshold, for example; that it

not exceed more than 15% to 20% of the value of the home. Deputy City Manager

Bishop advised that these are the sort of things that we are looking at.



City Manager Cavezza continued down the listing of the CDBG budget. Mayor

Peters asked how much longer does the City have on the Total System 108 loan,

at which time, City Manager Cavezza pointed out that it was a twenty year loan;

therefore, it is about fifteen more years left.



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PERSONNEL:



City Manager Cavezza pointed out that the goal was to reduce the budget by 3%,

but we were not successful in getting it all the way back to 3%. Using the

overhead projector, City Manager Cavezza advised that the City has 2,432

positions authorized, but actually have 2,339 positions filled. He gave an

overview of the breakdown of the City employees by reporting that we are really

referring to about 910 employees when we talk about reduction, after separating

Public Safety, the courts and the elected offices from the equation, of which

869 are filled. He said of the 910 employees the two largest areas are Public

Services and Parks & Recreation. After outlining this information, he focused

in on the Engineering Department that has 54 employees, but has 61 authorized

positions. He explained that we couldn?t recruit people to fill those other

positions mainly because of the pay. He reminded the committee members that

when we start talking about people in general government, we are dipping into

organizations that are already small. He mentioned that Public Safety has

1,322 employees, when we add in the sworn officers and the police and fire

civilians.



He presented a listing of the vacant positions along with the number of days

vacant and the grade. He added that most are Public Safety positions. He also

explained the reason



why there are positions vacant for 61 to 90 days. He addressed those positions

that have been vacant over 91 days.



Pay Increases: City Manager Cavezza reviewed the listing of

constitutional officers that would be receiving State mandated pay increases

and are as follows:



- Sheriff from $80,318. to $82,125.

- Tax Commissioner from $80,597. to $82,404.

- Clerk of Superior Court from $83,575. to $85,566.



Financial Planning Division Manager Cole added that the pay increases are

effective January 1st. City Manager Cavezza reported that the mandated pay

raises have increased the City?s budget this year by $3,014.00. He recalled

that regarding various constitutional officers and elected officials, it was

decided last year that we would give them the same COLA that we would give the

City employees. He pointed out that this fiscal year, we are going to give a

$500.00 supplement to the City employees. He then asked if we should apply

that same amount to the other elected and appointed officials as well. He

recommended that we do apply the $500.00 supplement to the officials.

Councilor Suber suggested that instead of the additional two holidays for those

officials that they receive the equivalent of those two days in the form of

money calculated into the $500.00; since, they are allowed to take off as they

choose to.



Chairperson Pugh reported that she had asked the Finance Department to give her

a report on the previous pay raises that Clerk of Municipal Court Vivian

Creighton-Bishop had received since she has been in office, because Clerk of

Municipal Court Creighton-Bishop had explained that there were some years that

had passed where she had not received an increase. Chairperson Pugh confirmed

that the report does show that there were five years that she did not receive a

raise; unless, the State mandated her a raise. She then put the following on

the add/delete list:



- Clerk of Municipal Court pay increase in the amount of $3,000.

(Request of Chairperson Pugh)



Councilor Henderson agreed that it does not seem equitable that they would have

gone that period of time without a raise, but he does not know how we could do

one without trying to identify the years that all of the constitutional

officers didn?t receive raises and put them on the list too. Chairperson Pugh

pointed out that the Municipal Court Clerk was the only one that approached

her. She then recommended a $3,000.00 increase for the Clerk of Municipal

Court.



City Manager Cavezza explained that when we add in the medical cost that the

City would be paying for the employees, the days off plus the $500.00

supplement, the employees are basically receiving what equates to a 4% raise.



Mayor Peters asked about the eligibility of those employees that are employed

with the City in July, but retire before January. City Manager Cavezza

responded by saying that employees would have to be employed prior to July 1st

to be eligible for the $500.00 supplement and if they are no longer employed

with the City in January; then, they would not receive the $500.00 supplement.



Pay Increase for City Employees: Chairperson Pugh asked how much would a

2% increase cost? Finance Director Love replied that it would be $1.7 million

in the general fund which is the lion share, but does not include the paving

fund and sewer fund, which also has employees in there. She added that the

$500.00 supplement would cost $1.2 million in the general fund. The following

item was then placed on the add/delete list.



- 2% pay increase for City employees (Request of Chairperson Pugh)



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NOTE: Councilor Poydasheff left the meeting at approximately 1:35 p.m.

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ADD/DELETE LIST:



#1



Increase background checks to $3/$5 per check in Police Department:



Councilor McDaniel moved approval. Seconded by Councilor Woodson and

carried unanimously by those eight members present for this meeting.



#2

Add three Vans for Parks & Recreation:



Councilor Woodson moved approval. After a brief discussion regarding the

need for three vans, Councilor Suber made a substitute motion to approve two

vans. Seconded by Councilor McDaniel and carried by a vote of six to two with

Councilors Woodson and Hunter voting no and the other six members present

voting yes with Councilor Poydasheff having already left the meeting.





#3

Add 10 Automated External Defibrillators:



Councilor McDaniel moved approval. Seconded by Councilor Suber and

carried unanimously by those eight members present with Councilor Poydasheff

having already left the meeting.





Chairperson Pugh removed the following two items from the list:



#4

Add Ladder Truck for Fire Department



#5

Reduce Economic Development Funding to $250,000.





#6

Salary adjustment of $3,000. for Clerk of Municipal Court:



Councilor Pugh moved approval. Seconded by Councilor Woodson and was

defeated by a vote of two to six with Councilors Pugh and Woodson voting yes

and all others present voting no with Councilor Poydasheff having already left

the meeting.





Chairperson Pugh removed the following two items from the list:



#7

Add Judicial Administrative Tech II position for Municipal Court



#8

Add Millage equivalent for Economic Development





#9

Reclassify Deputy Tax Commissioner:



Chairperson Pugh moved approval. Seconded by Councilor Woodson and

carried unanimously by those eight members present with Councilor Poydasheff

having already left the meeting.





#10



Delete Administrative Technician I position (part-time) in Tax

Commissioner Office effective 09/01/02:



Chairperson Pugh moved approval. Seconded by Councilor Suber and carried

unanimously by those eight members present with Councilor Poydasheff having

already left the meeting.





#11



Elimination of Custodial Contract:



Chairperson Pugh moved approval. Councilor McDaniel asked if the judges

were comfortable with this change, at which time, City Manager Cavezza assured

the committee members that the judges were okay with this. Councilor Suber

expressed his concerns in that Warden Golden may not be able to provide enough

inmates and the issue of security. Deputy City Manager Isaiah Hugley advised

that he has spoken to Warden Charlie Golden and was told by the Warden that he

had no problems providing the inmates, but when he had been asked by a

Councilor if there is a risk involved with using the inmates, he maintained

that there was a risk, because no inmate can be trusted. Deputy City Manager

Hugley said that he believes that the Warden wanted to emphasize that he cannot

be 100% sure that there are not going to be incidents with inmates on any given

day, but he feels this could work. After Deputy City Manager Hugley explained

that the inmates would be working from 5:00 p.m. to 11:00 p.m. or midnight to

try to reduce the level of contact with our employees and the public, Councilor

Hunter then expressed concerns in that there are going to be female employees

in the building working after 5:00 p.m. Deputy City Manager Hugley said that

he has heard from all of the employees that work past 5:00 p.m. and those

employees have asked that their offices be placed last on the end of the

cleaning service for the evening. He added that there would be one

Correctional Officer supervising eight inmates.



Councilor Woodson suggested that the employees assist with keeping their areas

clean by taking out their own trash. Deputy City Manager Hugley advised that

we are encouraging the departments to do that, because they would not have day

service.



Chairperson Pugh called attention to the motion, which was then seconded by

Councilor Woodson, which carried by a vote of seven to one with Councilor Suber

voting no and all others present voting yes with Councilor Poydasheff having

already left the meeting.





#12



Reorganization of Real Estate Division:



Chairperson Pugh moved approval. Seconded by Councilor Woodson and

carried unanimously by those eight members present with Councilor Poydasheff

having already left the meeting.





#13



Reorganization of Recorder?s Court Staff:



Chairperson Pugh moved approval. Seconded by Councilor Woodson and

carried unanimously by those eight members present with Councilor Poydasheff

having already left the meeting.





#14



Reorganization of Finance Department:



Chairperson Suber moved approval. Seconded by Councilor Woodson and

carried unanimously by those eight members present with Councilor Poydasheff

having already left the meeting.





#15



Delete Fiscal Tech II position ? Adult Probation:



Chairperson McDaniel moved approval. Seconded by Councilor Suber and

carried unanimously by those eight members present with Councilor Poydasheff

having already left the meeting.





#16



Increase salary of Manager of Adult Probation Office:



Chairperson Pugh moved approval. Seconded by Councilor Woodson and

carried unanimously by those eight members present with Councilor Poydasheff

having already left the meeting.





#17



Add 9 Firefighters/EMT (PS10):



When asked for the staff?s recommendation, City Manager Cavezza explained

that we had made an adjustment and as part of the reduction effort, the Fire

Chief pulled the nine firefighters out, and we gave him a little bit more

overtime money to compensate for their shortages. He said that he initially

thought those were the firefighters that he needed to staff the two new fire

stations, but that is not correct. He said that these are the people he is

going to need so that he can start putting firefighters on EMS vehicles; he is

doing that now and it is working. He pointed out that this situation is not

that critical as long as he has the overtime to use. Chairperson Pugh then

removed this item from the list. Financial Planning Division Manager Cole

reminded the committee members that these positions are authorized in the

current budget but not funded and could be reviewed at mid-year if we need to.





#18



Reduce Police Department Budget (3% reduction)



Chairperson McDaniel moved approval. Seconded by Councilor Pugh and

carried unanimously by those eight members present with Councilor Poydasheff

having already left the meeting.





#19



Add funding to address the most immediate concerns in Bibb City:



Chairperson Pugh removed this item.







#20



Add funding to pave an additional 50 miles of road:



City Manager Cavezza said that an additional 3.5 on the millage would put

us well above what we want to do, but we would like to have an opportunity to

figure out some innovative ways to do some funding; therefore, we would need to

come back to the Council at a later date and provide some suggestions on how to

tackle the paving issue. Chairperson Pugh then removed this item from the

list.





#21



Add funding for Capital Outlay items to be funded for Wireless surcharge

reserve:



Chairperson Pugh moved approval. Seconded by Councilor Smith.



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NOTE: Councilor Smith left the meeting at approximately 2:07 p.m.

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Responding to a previous question of Mayor Pro Tem Rodgers regarding the

tally on general fund, Finance Director Love stated that it is minus

$651,690.00 and that does not take into account the $185,000. that we had

talked about in dealing with economic development. Mayor Pro Tem Rodgers then

asked if we have to formally take that out of this budget, at which time,

Finance Director Love responded by saying yes. Mayor Pro Tem Rodgers said

that the $400,000 is not out of revenue; therefore, it can still be utilized,

at which time, Finance Director Love responded by saying yes.



*** *** ***



Chairperson Pugh called attention to the Item on the table, at which time,

Financial Planning Division Manager Cole pointed out that the funding for the

Capital Outlay would come out of the E911 special Wireless Surcharge Reserve

Account. Mayor Pro Tem Rodgers added that this is an enterprise fund;

therefore, it would not result in any type of tax increase because of it, with

Finance Director Love being agreeable to this comment. The motion to approve

was then carried unanimously by those seven members present at the time of this

vote with Councilors Smith and Poydasheff having already left the meeting.







#22

Add .25 mills for economic development ($777,504.) (Approved during the earlier

portion of this meeting.)





Chairperson Pugh removed the following four items from the list:



#23

Add .08 mills for economic development ($248,802.)



#24

Add .13 mills for economic development ($404,304.)



#25

Add .30 mills for economic development ($930,000.)



#26

Add .15 mills for economic development ($466,504.)





#27



Delete the $185,000. from the general fund budget that is allocated to the

Valley Partnership:



Mayor Pro Tem Rodgers pointed out that we need to delete the $185,000.

from the general fund budget that is allocated to the Valley Partnership.

Finance Director Love said that the actual amount is $186,291.00 because it is

a dollar per capita. Mayor Pro Tem Rodgers moved approval. Seconded by

Councilor Suber and carried unanimously by those seven members present at the

time of this vote with Councilors Smith and Poydasheff having already left the

meeting.



Finance Director Love said that the amount is $837,981 minus the reduction of?

Mayor Pro Tem Rodgers asked if the $777,000. that was approved as the .25 mill

tax is covered? Finance Director Love explained that when the committee voted

.25 mills for economic development, that is an economic development fund coming

from an increase in the millage rate; therefore, if the committee wants to roll

back taxes to cover it; then, we need to address that in the general fund.



#28



Roll back taxes to compensate for the .25 mills for economic development:



Mayor Pro Tem Rodgers moved approval. Seconded by Councilor Woodson.



Councilor Henderson further explaining the matter said that Finance Director

Love has told us that to designate .25 mills for economic development, we now

have a surplus of revenues over expenses in the 16.38 of .25 mills. Finance

Director Love made the correction that we would not have a surplus but would go

into fund balance. He continued by saying that for the purpose of a balanced

budget, we would need to roll back the same amount that we freed up. Finance

Director Love pointed out that if the committee desires to do that, because

normally we would not do that, we would just levy the millage and move

forward. Mayor Pro Tem Rodgers pointed out that if we did not do that; then,

we would be creating additional fund balance, because that amount would be

going back in to the fund balance.



City Manager Cavezza said that his understanding is that we are talking about

decreasing the millage for the general fund and that means that next year, we

would actually receive less ad valorem taxes; then, we received this year.

Mayor Peters expressed his concerns in that the Council has said sixty days of

operation for the fund balance and we have that with the seventy-seven days and

in addition to that, there is $585,000. that the Council funded in that same

budget for two items, and now the Council has deleted the $585,000. out of the

budget without touching the seventy-seven days of operation. Mayor Peters

maintained that staff is going to come back to the Council in December saying

that we have a surplus and we need to do a mid-year adjustment to do certain

things; so, where is the money going to come from?



After some additional discussion, Chairperson Pugh called attention to the

motion for approval, which carried by a vote of four to three with Councilors

McDaniel, Pugh and Suber voting no and all others present voting yes with

Councilors Smith and Poydasheff having already left the meeting.



Responding to a question of Mayor Pro Tem Rodgers, Chairperson Pugh recalls

that a majority vote in the Budget Review session is an approval.





#29



2% pay increase for City Employees:



Chairperson Pugh moved approval. Seconded by Councilor Hunter and

defeated by a vote of two to five with Councilors Hunter and Pugh voting yes

and all others present voting no with Councilors Smith and Poydasheff having

already left the meeting.



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

2:22 p.m.









Sandra T. Davis

Deputy Clerk of Council

Council of Columbus, Georgia