Columbus, Georgia

Minutes



Budget Review Committee



May 7, 2002







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

at 3:20 p.m.) and Councilors R. Gary Allen (arrived at 3:30 p.m.), Julius

Hunter, Jr., Charles E. McDaniel, Jr., Robert Poydasheff, Richard Smith, Nathan

Suber and Evelyn Woodson. Mayor Bobby G. Peters (arrived at 3:12 p.m.), City

Manager Carmen Cavezza, City Attorney Clifton Fay, Finance Director Kay Love

and Financial Planning Division Manager Angela Cole.



Absent: Councilor Berry Henderson was absent.





Call To Order:

Chairperson Evelyn Turner Pugh called the meeting to order at 3:05 p.m. in the

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





Budget Chairperson Message:



Chairperson Pugh asked the members of the committee to submit to Finance those

items that require some calculations, or if there is something that the members

want to put on the add/delete list; then, we can go ahead and do that now. She

said that this would give the Finance Department an opportunity to work on the

calculations that may be included in the budget.



Chairperson Pugh advised that one of the things she wanted to do with this

budget session is that any request that we receive in writing or orally that

departments want us to consider, that is not in the budget would be brought to

the table by her for the members to vote on it. She then put the following

items on the add list:



A letter from Judge Haywood Turner?s Clerk regarding a position in Municipal

Court; this position is not in the budget, so it would need to be put on the

list. (Submitted by Chairperson Pugh)



The salary increase for Municipal Court Clerk (Submitted by Chairperson Pugh)

Increase the paving fund (Submitted by Chairperson Pugh).



She then asked if there were anymore request to put on the add/delete list, at

which time, the following requests were added.



2 vans for the senior center (Request of Councilor Woodson)



Chairperson Pugh reminded everyone that we are not going to get into a lot of

discussion on the items at this point, because the Finance Department would

need to bring back a cost analysis to go with each.



10 AED?s (Request of Councilor McDaniel)



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HEALTHCARE COST:



Councilor McDaniel wanted to know how the projections were made as to the cost

for each employee for healthcare to rise to an additional $575.00. Financial

Planning Division Manager Cole reported that the estimates that we have done on

health care, we are projecting it to be in the range of $12.6 million, which is

based on the last month?s numbers. She projected that the amount this year is

going to be approximately $13 million.



Councilor McDaniel maintained that the HMO was suppose to save money, at which

time, City Manager Cavezza advised that the HMO has not turned out to be as

successful as people expected.



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NOTE: Mayor Peters arrived at this point of the meeting with the time being

approximately 3:12 p.m.

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BUDGET OVERVIEW:



City Manager Cavezza advised that the department directors were told that they

could address the budget review committee members regarding anything that was

cut from the budget. He announced that only one expressed a desire to come

before the committee and that was Marshal Ken Suddeth, who later decided that

he would not come forward.



He reported that when we first tried to balance the budget, we were a long ways

from balancing it; therefore, we had to call in the directors and tell them

that we needed help and they did by making some tough decisions.



City Manager Cavezza gave a brief overview of those most important issues that

needed to be addressed in the proposed budget and are listed as follows:



- Infrastructure



City Manager Cavezza emphasized the infrastructure problems that the City

faces. He said that we have a plan to do it, but not the resources. Councilor

Smith asked questions regarding the resurfacing of roads, at which time, City

Manager Cavezza pointed out that we have about $2 million in the paving fund

and Chairperson Pugh has already mentioned the .25 mill increase, but in order

to hit the fifty miles of resurfacing this year, we would need another $3.5

million.



There were continued discussions on this matter with Deputy City Manager

Richard Bishop responding to various questions from the committee members.



Continuing to outline the proposed budget, City Manager Cavezza pointed out

that most of the personnel increases are in public safety, primarily due to the

agreement with the Justice Department regarding the jail.



- Public Safety



- Neighborhoods ? Community Programs



- Customer Service



- Economic Development



- Efficiency within the City Government



- Strategic Planning





City Manager Cavezza listed the priorities that were given to the staff and are

as follows:



- Technology

- Payments through the internet to reduce the number of trips that citizens

have to make to the Government Center.

- Rewarding and recognizing the employees

- Continuous improvement program based on the Malcolm Baldridge Program

- Customer Service

- Training internally



City Manager Cavezza called attention to the challenges that the City

Government is facing:



- Revenues

- Vehicle Replacement



City Manager Cavezza said that we are getting vehicles this year out of the ?99

SPLOST. He said that the ?99 SPLOST was going to get us up to a level that if

we could sustain the procurement of vehicles over time, we would keep a

respectable level of maintenance in the fleet and replace them at a planned

rate and not incur huge repair bills; well, we were not able to fund any

vehicles out of the general fund this year. He maintained that the only

vehicles that we are getting this year, with the exception of the paving fund,

would be out of the SPLOST.



City Manager Cavezza pointed out that there are some services that we are going

to try to keep going as we have in the past, but it is going to be a challenge

for us.



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NOTE: Mayor Pro Tem Rodgers arrived at 3:20 pm.

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Mayor Peters responded to questions from Councilor McDaniel regarding the

maintenance of Police vehicles. Councilor McDaniel asked if the police

vehicles use recycled oil, at which time, Deputy City Manager Isaiah Hugley

assured the committee members that recycled oil is not being used in the police

vehicles.



City Manager Cavezza reported on the following items as recommended in the

proposed budget:



- Paving and Sewer Fund - .25 recommended millage increase on paving and sewage

is basically the same -$500,000. Grant has been received for Bibb City.



Regarding the Bibb City infrastructure, Mayor Pro Tem Rodgers asked if it was

possible to sleeve some portions that we know are possibly volatile, Deputy

City Manager Bishop, replied that sleeving is an option. Mayor Pro Tem Rodgers

was then asked to explain sleeving, at which time, he explained it is the

process of sliding another pipe inside of the existing pipe.



Responding to questions from Councilor Woodson regarding grants and funding to

assist with the infrastructure of Bibb City, Finance Director Kay Love pointed

out that when we took over Bibb City, we were no longer qualified for small

city grants.



City Manager Cavezza briefly discussed the following issues:



- Personnel:



Risk Management



o Rather than staff the Risk Management Office, we are assigning those duties

to existing employees; we want to keep those positions authorized but not

funded.



Healthcare



o Increased it by about $525.00 per employee and we have already had to make up

$1 million.



Chairperson Pugh asked if there would be any new fire stations coming on line

this year, at which time, Finance Director Love advised that we were

anticipating FY04 for staffing of the new fire station and they are not funded

in this budget.



Pay Plan Maintenance



o We are not recommending a pay plan maintenance; since, we are not proposing a

salary increase. There is a percentage that is respectable in lieu of the

salary increase.



Councilor Smith asked about the two additional holidays that are being

proposed. City Manager Cavezza responded by saying that the two additional

holidays are just being proposed for FY03, and the reason we are recommending

that is because we are not proposing a salary increase. Chairperson Pugh

pointed out that it would have to be considered by the budget review committee

for FY04, if they want to keep the two additional holidays.



City Manager Cavezza provided a breakdown of the FY03 Operating Funds and the

source of revenues as listed on pages B-1 and B-2 of the proposed budget.



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NOTE: Councilor R. Gary Allen arrived at 3:30 p.m.

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-- Personnel ? 62% or $106 million



City Manager Cavezza reported that we are projecting a 2.75% growth, which is

the lowest it has been in several years; last year it was about 3%



- Operations ? one mill is about $3.1 million

- Debt Service - $3.5 million



City Manager Cavezza pointed out that there are no millage increases predicted

for property taxes, and the only millage increase in this budget that has been

included is .25 of mills for paving fund increase.



- Economic Development - $400,000. was taken out of the fund balance as opposed

to assessing a millage for economic development, which is almost .15 mills



Supplement



- $500.00 to all permanent employees payable in January

- Two additional holidays ? Columbus day and the employee?s birthday



Risk Management



- $1.6 million to go into a program for risk management with emphasis on the

worker compensation claims.



City Manager Cavezza explained that we have one person doing risk management

full-time, but what we would do is convert that person to part-time and bring

on this contract. He expressed confidence in being able to reduce the worker?s

compensation cost because of this investment package; a lot of businesses use

this instead of trying to do it internally.



Solid Waste Collection



o Garbage collection fee would remain the same at $14.00





Oxbow Meadows Golf Course



o The City has been subsidizing that in the amount of $150,000. a year; since

its been built.



Bull Creek Golf Course



o $660,000. supplement ? we were going to go nine holes at a time with the

anticipation of supplement $350,000. each time; until, they got through it,

but they have decided to do eighteen holes this time. The cash flow is there

to support completion of that construction.



Mayor Peters commented on the Take Home Car Program. He said that just about

everyone in city government has a take home car. He suggested giving the car

to the employee and allowing the employee to keep up the maintenance and

insurance on the cars. Chairperson Pugh suggested that Councilor McDaniel along

with the Take Home Car Committee get with the Mayor to look at the specifics of

his concerns.



Budget Comparison to FY02:



- General Fund ? 1.18% increase

- Sewer Fund ? 27% increase

- Paving Fund ? 3% increase

- Millage increase for USD1 from 16.38 to 16.63 and comparable increases in

USD2 and USD4, which equates to a 1.3% increase for USD1- Total of 40.25 mills



Personnel:



City Manager Cavezza maintained that there would be a slight increase in

employees in public safety because of the nineteen additional people in the

jail; we have reduced the number of employees in general government, but would

provide those numbers as we get into the personnel piece of the budget

discussion.



He explained that the pay raise that the Council has given the employees over

the years compares with the percentage of growth, examples are provided below:



- FY98 ? 2% pay increase/ growth ? 7%

- FY02 ? 3% pay increase/ growth ? 3%

- FY03 ? Supplement/ growth ? 2.75%



Using an overhead projector, City Manager Cavezza used an example of a pay

grade from the pay scale system to equate the benefit to the employee converted

to percentage of the $500.00 supplement and two paid holidays. He pointed out

that the higher up the pay scale the employee goes; then, the percentage

decreases; therefore, the lower grade employees would receive the greater

percentage. Councilor Suber added that the average public safety employee at a

starting pay of $24,900. would be receiving a 4.99% increase adding all of it

together.

City Manager Cavezza reported and briefly explained the following budget

matters:



Healthcare : We are about $1 million short; therefore, we had to go into

the fund balance to make that up for FY02.



Fund Balance: The fund balance has been reduced significantly just above

the sixty-day level.



Deferred Maintenance: There would be deferred maintenance and that would

cost the City on down the road.



Capital Projects: There are $3.2 million worth of capital outlay that are

programmed into the budget this year.



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GENERAL FUND - FUND BALANCE:



Chairperson Pugh asked that Finance Director Love briefly explain the impact of

the reduction of the fund balance on the City?s bonding status. Finance

Director Love explained that when we did the 2000 Series Bond, we received an

upgrade from Moody to ?AA? status based upon the fact that we had made an

administrative commitment to keep ninety-days general fund - fund balance. She

said that the concern and the impact is that if the City has more than what is

considered to be adequate for your government if that is sixty or ninety days;

then, if the reason for the City using the fund balance is acceptable to be

used for one-time emergency purposes, but not acceptable in the analyst eyes or

bond raters perspective to use it for ongoing operations or to become dependent

upon it, and that puts the City at risk of compromising ongoing of what that

fund balance might be. She pointed out that we used $5.5 million of general

fund - fund balance, which is what is being proposed. She projected that for

the end of the year, we would have about seventy-seven days; therefore, we have

fallen below the ninety days. She advised that part of it is not attributable

to capital; therefore, we would be put on a watch list; our bonds would not be

down graded when we go to market for the bonds on the library. She said that

we would hope to maintain the same rating, but next year when we go through our

review; then, they would look to see what we are doing in the general fund and

if we are planning on using the fund balance again.



Finance Director Love then responded to various questions from members of the

committee.



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Budget Schedule:



City Manager Cavezza announced that we have three more budget meetings

scheduled, if we need them. He pointed out that the meetings would be held

every Tuesday after the regularly scheduled Council Meeting. He also announced

the schedule for public hearings.



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CAPITAL IMPROVEMENT PROJECTS:



City Manager Cavezza briefly highlighted some of the capital improvement

projects as listed on page E-2 of the proposed budget and are as follows:



-- The request was for $2,693,745/ recommended $1,243,745



o $445,000. for 2 channels for radio system ? To provide complete radio

coverage for the Midland area.



o 3rd Transmission Site was requested for the Midland area in the amount of

$1,500,000. but was not recommended for funding.



Councilor Suber asked why the $400,000. for economic development is being taken

out of the fund balance, at which time, City Manager Cavezza advised that in

his discussions with Mayor Peters it was suggested that the amount be taken out

of the fund balance then to add millage. Councilor Suber then placed the

following item on the add/delete list.



o Reduce the $400,000. out of the general fund to establish the economic

development line with .08 of a mill, which is $250,000. and put the $400,000.

back into the fund balance. (Request of Councilor Suber)



Councilor Allen expressed agreement with reducing the amount to $250,000., but

his concern is tying the amount to a millage, because as the mill grows that

number will grow. He said that we should put some type of a footnote in there

explaining that our intention is this amount of money, which does equal .08 of

a mill. Responding to some comments, Finance Director Love advised that it

would not change the general fund millage, because that is subject to the cap;

therefore, the economic development would be outside of that, but it would

adjust the 16.38 by adding the .08.



- Discussion of the non- permanent fund balance. (Request of Councilor Allen)



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SEWER FUND:



City Manager Cavezza advised that we were able to support most of the sewer

projects totaling $1.2 million because of the SPLOST.





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PAVING FUND:



City Manager Cavezza reported that the .25 mill would bring the total to about

$2 million towards projects, but in order to do the fifty miles of road that

was discussed earlier, we would need an additional $3.5 million. Chairperson

Pugh pointed out that she has asked the staff to bring back an analysis of how

much the City could pave in a twelve-month budget cycle period and what that

additional cost would be.



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INTERGRATED WASTE FUND:



City Manager Cavezza reported that we are able to continue to operate as an

Enterprise Fund because of the previous increase in the waste fee during the

last fiscal year. Councilor Poydasheff asked if we were receiving

approximately $50,000.00 from the recycling program, at which time, City

Manager Cavezza advised that he did not believe the amount was that much, but

he would find out.



There was some discussion regarding the methane gas at the landfill. City

Manager Cavezza then confirmed that the City did have a contract with a company

to sell the methane gas. Finance Director Love reported that we just put in a

new monitoring system at the landfill. Mayor Pro Tem Rodgers then asked if

inert waste produces methane gas. City Manager Cavezza requested some

additional time to respond to this matter.



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1999 SALES TAX SUPPORTED:



City Manager Cavezza briefly called attention to the listing of projects on

Page E-4 that are supported by the 1999 sales tax.



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COLUMBUS WATER WORKS:



He reported that on the Council?s agenda today on the City Manager?s Agenda, we

are continuing the sewer projects with SPLOST money in conjunction with the

Columbus Water Works. He recalled that we started off doing the combined

sewers and it is now time for the next phase of that. He reported that we have

a $15 million contract lined up and we are going to continue our agreement

with the water works to continue to pursue those subsequent phases.



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CAPITAL OUTLAY:



City Manager Cavezza pointed out that there was a list of requests on Page F-7

of the Proposed Budget Book from the various departments with none being

recommended except for the following item as mentioned during the presentation;



- One full-size SUV for Community and Economic Development for the amount of

$23,900.



Senior Citizen Van



As listed on Page F-9 of the Proposed Budget Book, City Manager Cavezza

explained that the senior citizen van was in the budget; until, the final

cutback had to be made. Councilor Woodson recalled that she has asked for this

item to be placed on the add/delete list.



Fire Department ? Ladder Truck



City Manager Cavezza reported that one ladder truck for $600,000. also was

deleted during the final cut. He explained that the ladder truck that we have

now would make it, but it has a lot of maintenance problems. He said that in

order to balance the budget, the fire department had to pull it out. When

asked about the repair bills on the ladder truck, Finance Director Love

reported that there would be no more repair bills on it, because that one

cannot be repaired; therefore, the fire chief would have to take one of the

older ones and put it in service or rely on the mutual aid that we have with

the surrounding counties.



City Manager Cavezza then provided a brief overview of the remaining Capital

Outlay requests that illustrated the ones that were recommended and supported.



Fire Department (Criminal Division)? Explosive Blast Shield and Unitel

Digital Receiver/Transmitter



City Manager Cavezza then responded to Councilor Suber?s questions regarding

the need for an explosive blast shield in the amount of $5,000. Councilor

Suber also asked for the justification for the Unitel Digital

Receiver/Transmitter in the amount of $9,000., at which time, Finance Director

Love advised that she would need to go back to take a look at the request on

this item and would report on that at a later date.



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HOMELAND SECURITY:



Councilor Woodson suggested that the Finance Director check into some of the

funding for Homeland Security that is for first-responders, at which time,

Chairperson Turner Pugh reported that the monies would be going to the State of

Georgia. She added that the State of Georgia has not received that money yet,

because they have not finished with it in Washington, D. C



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CAPITAL OUTLAY (CONTINUED):



Emergency Communication Center



City Manager Cavezza pointed out that E-911 requested various equipments

totaling $240,397., and we did not fund any of it, but we would in fact fund

that from an E-911 reserve account. Responding to a question from Councilor

Poydasheff, Finance Director Love pointed that we were not going to fund it out

of the current year?s money, but from money we generate in FY03 out of the

surcharge, but we have to reserve certain amounts of that money for equipment

and that would facilitate the phase one and phase two.



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AGENDA ITEMS:



City Manager Cavezza advised that the following items have been listed on

Council?s Agenda for tonight?s meeting and are as follows:



- Contract with the Columbus Water Works for combined sewers.

- Microwave Conversion 800 MHZ radio system; this is part of the technology

bond and would replace our current system of analog microwave subsystem to

fiber optics.



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TRAFFIC LIGHT @ 2ND AVENUE AND 18TH STREET:



City Manager Cavezza reported that the traffic light at 2nd Avenue and 18th

Street had been knocked down, and we did put it back up but did not activate

it, because we were receiving great reviews from those individuals traveling on

2nd Avenue about how quickly the traffic was moving. He explained that we are

now receiving a lot of heat from the individuals at Total System, because they

are saying that they are having trouble getting out; therefore, we are going to

go ahead and activate that light again at least until Veteran Parkway opens up

again.



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EXECUTIVE SESSION:



City Manager Cavezza advised that he would be requesting an executive session

at the end of the regularly scheduled Council Meeting on a personnel issue.



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CIVIC CENTER:



Councilor Suber asked about the card swiping system for the Civic Center,

because he thought that we were going to hold off on it, at which time, City

Manager Cavezza replied that we are in the process of purchasing this system in

order to be consistent with the other city government buildings.

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The meeting adjourned at 4:40 p.m.









Sandra T. Davis

Deputy Clerk of Council

Council of Columbus, Georgia