Columbus, Georgia

Budget Review Committee Minutes of the

Columbus Consolidated Government

May 4, 2004





Present: Mayor Bob Poydasheff and Mayor Pro Tem Jack Rodgers. Councilors Evelyn

Turner Pugh (Chairperson), Evelyn Woodson, Wayne Anthony, Glenn Davis, Gary

Allen, Nathan Suber, Charles E. McDaniel, Jr. and Berry Henderson. City

Manager, Carmen Cavezza; Finance Director, Angela Cole; Senior Budget Analyst,

Joe Riddle; Chief Administrator, Liz Turner; Deputy City Manager, Richard

Bishop; City Attorney Clifton Fay; Budget Analyst, Leah Cordura; Budget

Analyst, April Harris; Human Resources Director, Tom Barron; Budget Analyst,

Trish Dorton; Ledger Enquirer Reporter, Kelly Estes; Captain, Glenn Bahde and

Randy Robertson, President of the Fraternal Order of Police. Also present were

Tiny B. Washington, Clerk of Council and Triena B. Sharpe, Administrative

Specialist.



Absent: Councilor Julius Hunter.



Location: Ground Floor Conference room of the Government Center.





Meeting began at 4:30 p.m.





Meeting began with an introduction of all personnel.



BUDGET OVERVIEW:

City Manager Cavezza began the presentation with slides and a budget overview

of Columbus? revenue distribution. (Copy attached) He shares that we have to

balance the budget as he refers to the graph and states that the expenditures

must be reduced to where the revenue is. Mr. Cavezza explains last years

projection (based on growth) was 2.75%, yet the actual amount was 4.13%. He

continues to explain this year?s projection is 3.0% and they are hoping with

the economic changes that the actual amount will be better than the projection;

he concluded that they will remain conservative.



Mr. Cavezza began explaining the following areas:



v The General Fund

v The SPLOST Money

v The Sewer Fund

v The Paving Fund

v The Integrated Waste Fund



93? SPLOST and UP TO DATE SPLOST MONEY:

Mr. Cavezza refers to the chart to address the issues surrounding the specific

funds, he elaborates that there is no problems with the SPLOST money because it

is specifically designated and on track. He explains that the 93? SPLOST had

some savings after the projects were completed; he further states this allowed

us to pay off some debt involving the expansion of the jail.



THE SEWER FUND:

Mr. Cavezza begins to expound on the progress made with the Sewer Fund, which

was related to the SPLOST MONEY, he explains that there still is a lot of work

to be done with the sewers.



THE PAVING FUND:

Mr. Cavezza begins to explain the significant progress we made because of the

additional millage authorized by Council and the SPLOST money. He again states

that we still have a lot of work to do on the roads.



THE INTEGRATED WASTE:

Mr. Cavezza explains that this Fund is a success story, because as he states

this fund is able to sustain itself without requiring supplementation from the

General Fund.



GENERAL FUND:

Mr. Cavezza explains that in the budget, 66% of the 183 million dollars goes

toward the General Fund. Then he briefly highlights the following areas:

? Paving - 6.1%

? Medical Center - 5.3%.



Revenue Sources:

? Ad Valorem Taxes ? 33.89%

? Sales and Use Tax ? 17.81%

? Commissions, Utilities and other taxes ? 19.21%

(See attached chart for other revenue sources)





BUDGET EXPENDITURES:

? Public Safety - 40.50%

? Criminal Justice - 5.37%

? Pubic Services - 12.40%

? Management Operations - 13.01%

? Recreation & Cultural - 9.80%

(See attached chart for other expenditures).



FY05 RECOMMENDED OPERATING EXPENDITURES:

Mr. Cavezza explains by category the chart of the expenditures based on service

areas as follows:

? Personal Services - 62.75%

? Operating ? 33.59%

? CIP (Capital Improvement Program) - 1.91%

? Capital Outlay - 1.76%



FY05 General Fund:

? Public Safety ? 57.95%

? Criminal Justice ? 7.96%

? Management Operations ? 11.27%

? Statutory, Boards & Commissions ? 2.45%

? Non-Departmental Expenses ? 3.47%

? Community Services ? 4.59%

? Public Services ? 3.87%

? Recreation & Cultural ? 8.44%





Mr. Cavezza continues referring to the slide presentation to explain the outlay

of the Capital projects by funds and this information was as follows:



? General Fund $0

? Sewer Fund $121,000

? Paving Fund $690,800

? Integrated Waste Fund $1,438,450

? Emergency Telephone (E-911) $9,745

? Transportation Fund $604,940

? Trade Center $109,167

? Bull Creek Golf Course $28,000

? Oxbow Creek Golf Course $10,000

? Civic Center $131,679

? Total Capital Outlay $3,143,781





CIP (Capital Improvement Program):

? General Fund Supported $0

? Sewer Fund Supported $550,000

? Paving Fund Supported $1,653842

? Integrated Waste Fund Supported $1,300,000

? Total ? CIP $3,503,842



1999 SPLOST Allocation $26,887,756



Mr. Cavezza expressed that this year there was no money available to take from

the General Fund to place into Capital Fund projects or the Capital Improvement

programs; he further states this was before money was taken from areas such as

interest savings (0508 account).



Mr. Cavezza states this is the last year that we will be able to rely on the

funds from the 99? SPLOST allocation for the purchase of Public Safety

vehicles; in the future the money will come from the General Fund.



Mr. Cavezza explains the items recommended to be funded from interest earnings

allocated from the Capital Projects Fund:



General Fund ? Capital Outlay

v Business Licensing Software (Finance) $15,000

v 1 Full Size SUV (Code Enforcement) $28,000

v 2 Mid Size Extended Cab Pick-up (Special Enforcement) $31,000

v TY-Corp TD 460 (Parks & Recreation) $25,000

v LF3030 4WD 36 KUBPTA (Parks & Recreation) $43,000

v AER-Vator (Parks & Recreation) $8,000

v VC60 VERTI Cutter (Parks & Recreation) $5,900

v 3 Zero Radius Mowers (Parks & Recreation) $21,000

v 100 Sets of Turn Out Gear (Fire & EMS) $84,000

v 1-7 Passenger Van (MCP) $21,000

v 1-15 Passenger Van (MCP) $22,000

v Total ? Capital Outlay $303,900





General Fund ? CIP Projects

v Street Improvement Building Roof Replacement $25,000

v Comer Roof Repairs/Replacement $50,000

v Carver Park Roof Repairs/Replacement $30,000

v Pop Austin Roof Repairs/Replacement $75,000

v Public Safety Building Roof Repairs $68,000

v Advantage 3.0 Migration $175,000

v Total ? CIP Projects $423,000





Capital Outlay ? GMA Lease

v 2 Fire Apparatus $524,584

v 3 Ambulances $420,000

v Total ? GMA Lease $944,584

(*These Funds came from the 93? SPLOST in debts Services Fund.)



Mr. Cavezza suggests to the Council that these items be placed on the ADD/DELTE

list as the Council considers each item and its impact if removed. At this time

the Council converse about the priority of each individual item.





Personnel:

Mr. Cavezza pointed out that there were 40 requests for positions to be

reclassified out of a total of 62 positions, yet none was approved. He then

explains that there was 14 requests for new positions out of 38, which included

24 authorized positions at the jail (not funded) and 2 authorized positions in

the Risk Management department, which were not funded. Mr. Cavezza continues to

state that the 8 positions recommended were 5 LPNs for the jail, 1 P/T

administrative Tech II (Superior Court) and 2 MEOs (Paving Fund) for the Stump

Grinder Project.



In response to Councilor Allen?s question regarding the necessity of the 2

employees working on the Stump Grinding project, Mr. Cavezza states that he

would further research the option and would be concerned about the turn over of

the inmates.



Mr. Cavezza requested that the Council consider a change within Public Service

in the area of garbage pick-up, which he stated will not cost any additional

fees because there will be reorganization by shifting around a corrections

officer.



FY05 Assumptions:

Revenues

Mr. Cavezza began explaining the assumptions as noted below:



? 9 mil cap on millage USD #1

? 3.00% growth in the digest

? Fire Millage Levy increased in USD #2Value of one mil (operation); $3,299,283

? Value of one mil (bond); $3,747,004

? Economic Development Levy ? 2.5 mil $826,921

? Debt Service Millage ? 1.23 mil



Mr. Cavezza then shared that the 9 mil cap would have a dollar effect in Urban

Service District One in the amount of $7.59 and in Urban Service District Two

in the amount of $35.15 (based upon a $100,000 home). He also expressed that

the increase in District 2 is because of the fire levy, due to the 2 new fire

stations.



Expenditures

v 3% Pay increase on Anniversary date

? General Fund - $1,916,118

? Sewer Fund - $53,574

? Paving Fund - $137,368

? Integrated Waste Fund - $84,611

? E-911 - $43,132

? Civic Center - $22,097



v 1 ?% pay increase for retiree - $202,824

? Pension Increase - $2,125,000

? E-911 Subsidy - $452,699

? Subsidy for Oxbow Creek - $150,000

? Subsidy for Bull Creek - $0

? Subsidy for Civic Center - $0

? Full Funding for 5 LPNs - $149,920

? Car Insurance Included - $660,000 ($400,000 in General Fund)

? Energy Solutions Payment ? $230,000

? Increase Workers Comp - $602,322

? Constitutional Officers pay increase - $24,400





Mr. Cavezza explains the slide, FY05 for the recommended Millage impact that

the increase would have in USD1, USD2 and USD4. Then Mr. Cavezza shared the

Analysis of the Fund balance with no consideration given to the LOST.



Responding to Mayor Pro Tem Rodger?s question as to whether we have a cash flow

analysis on the 69 days of the Fund balance and have we been in a deficit

situation, Finance Director Angela Cole answered that we are not at 69 days and

that the outline slide shows funding the current budget as is in a perfect

situation. She continued to explain that the figures fluctuate everyday and the

money is pulled from investments to pay bills when we come up short.



In response to the concerns of Mayor Pro Tem Rodger?s and several members of

the Council, City Manager Cavezza stated that he feels comfortable that we will

not have to borrow money this year, and further states that if the fund balance

lowers to 47 days, then we will probable have to borrow money.



Mayor Poydasheff advised that in the past we have never had a written policy

for retaining the fund balance at 90 days because, he stated, we have pulled

from the Fund Balance.



Personnel Breakdown

General Government & Public Safety

Mr. Cavezza breakdowns the specific personnel that encompass General Government

and Public Safety which shows an increase as follows: (full and part-time)



Based on FY03 ? FY04 (increase)

? 4 part-time positions in the Tax Commissioners Officer

? Cellars Maintenance

? Deputy Coroner

? 5 positions in the Jail

? 1 Waste Equipments Operator

? 12 Fire Fighters

? 24 deputy Sheriffs

? 1 Deputy Sheriff in Recorders Court



Based on FY02 ? FY03 (decrease)

? Administrative Specialist in the Mayor?s Office

? Auditor in the Finance Department

? Human Resources Specialist

? Fiscal Tech

? Administrative Tech

? Division Manager



Based on FY02 ?FY03 (increase)

? Risk Manager

? Human Resource Tech, Part-time

? 2 Facilities Technicians

? Three Ordinance Inspector

? 9 Firefighters

? 1 Correctional Officer



38 SuperCenter part-time personnel



In response to Mayor Pro Tem Rodgers question about seasonal workers, Mr. Tom

Barron answers that these employees are Aquatic, Parks & Recreation,

Recreational Officials, Civic Center and Event Staff. Mr. Barron stated that

they are never here at the same time and they include around 3,000 people.



Restraints

v 9 Mil Cap

v Tax Freeze

v Homestead Exemptions

v Vehicle Insurance

v Health Care Costs

v Pension Costs

v Increasing Operating Costs

v Increasing Demands

v Unknown unfunded/Mandates/Legal Expenses

v Limited Opportunities for New Revenues

v Few Alternatives





Mr. Cavezza advised that the Capital Outlay request was $4,246,224 and out of

this $2,997,740 was unfunded; he then advised that the request for the Capital

Improvement projects was $5,274,000 and out of this $4,919,000 was unfunded.



Report Card FY2000 ? FY2003

Mr. Cavezza advised that the Report Card reflects the Budget versus Expenses

and percentage spent, which he explained that the difference from an expectancy

of 100% could include such things as laps in employment and equipment waiting

to be paid.



Budget Schedule

Mr. Cavezza then reviews the schedule for the budget meetings and the time

frame expected for Public Hearings which incorporated 1st & 2nd Reading of the

Budget Ordinance, Tax payer Bill of Rights Public Hearings and 1st & 2nd

Reading of the Millage Ordinance. He then turns the meeting back over to

Chairman - Evelyn Turner-Pugh.



Group Discussion & Final Questions

In response to Chairman Turner-Pugh, who asked where the General Fund would be,

if we?re only spending 95% of the budget and the SPLOST was added, Finance

Director Cole stated 123 million. Mayor Poydasheff added that the possible

difference occurs because we can?t operate at 100%.



Mr. Cavezza advised that the tax Payers Bill of Rights is a Federal mandate.



Discussion occurred amongst the members to clarify where the amount of money

must be cut and what this amount equals too. Finance Director Cole stated that

the 98% equals to 2.4 million dollars being reduced. Each member shared there

own personal view points of the possible effects and lifestyle changes that

would occur based on their decision. Some concerns arose in reference to

dependency upon the sales tax, cutting people, using the savings account,

leaving positions vacant and collections.



Chairman Turner-Pugh discuss with Finance Director Cole about the salary

savings and Ms. Cole shares that this money has contributed to the Fund Balance

in the past. Councilor Allen request identifying the positions not filled in

General Government and Public Safety.



Chairman Turner-Pugh stated she would prefer not to go into Fund balance to

deal with issues unless it?s a crisis.



Final Instructions

Councilors gave instructions to General Government workers to research these

items as follows:

? Dollar amount for growth

? 2 prisoners & Supervisor

? Copy of slide to all Councilor

? List of unfunded mandates to city

? Information for roof repair for Public Safety

? List of vacancy for Public Safety or General Government

? List of Part-time positions and salaries



Meeting adjourned at 5:06 p.m.





_______________________



Triena B. Sharpe

Recording Secretary

Administrative Specialist