Minutes
BUDGET REVIEW COMMITTEE
May 31, 2005
Members Present: Chairperson Evelyn Turner Pugh, Mayor Pro Tem John J. Rodgers
and Councilors R. Gary Allen (arrived at 11:40 a.m.), Wayne Anthony, Glenn
Davis, Berry Henderson (arrived at 11:38 a.m.), Charles E. McDaniel, Jr.,
Julius Hunter, Jr., Nathan Suber and Evelyn Woodson. Also present were Mayor
Robert S. Poydasheff, City Manager Isaiah Hugley, Assistant City Attorney Jamie
DeLoach, Deputy City Manager Richard Bishop, Finance Director Angela Cole,
Assistant Finance Director Pam Hodge, Clerk of Council Tiny Washington and
Deputy Clerk of Council Sandra Davis.
Members Absent: No one was absent.
Guest: Associate Juvenile Court Judge Warner Kennon and Ms. Carol Scherer,
Juvenile Drug Court Administrator.
Call to Order: Chairperson Turner Pugh called the meeting to order at 11:35
a.m. in the Council Chambers, Plaza Level, of the Government Center.
Proposed Millage Rate:
Chairperson Turner Pugh made reference to an article in the Columbus
Ledger-Enquirer on the proposed millage rate. She then asked Finance Director
Angela Cole to come forward to discuss this matter.
Finance Director Angela Cole, approached the rostrum to address the two
ads in the local newspaper that refers to a millage rate increase. She
recalled that Georgia Law requires the City to have three public hearings and
three ads that deal with the roll back millage. She explained that each year
when the assessment is done on the City?s digest, it looks at the total amount
of revenue that we had last year, how much it would produce versus the growth
in the digest and how much more revenue it would produce. She said that State
Law requires the City to roll back the millage to the amount that it was last
year. She stated that over the amount that we had last year, we have estimated
a 3% increase in the total digest. She pointed out that in our current budget,
we are not proposing a millage increase per se in the tax bill, but there will
be an increase in the value of the property.
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City Manager Hugley announced that this is the fourth Budget Review
Session and should be the final session.
Overview
- Add/Delete List
- Review of Council Questions
- Questions
City Manager Hugley provided a brief recap of some of the overview highlights
from previous budget sessions.
OVERVIEW:
OPERATING FUNDS
FY-06 proposed budget - $184.5 million
Revenues - $177,153,722
Difference - $7.3 million
$5,151,898 in expenditures that would be taken from the General Fund ? Fund
Balance to balance budget
$1.8 million in expenditures from the Debts Service Fund Balance
Using the overhead projector, City Manager Hugley displayed a listing of
operating funds and are listed as follows:
FY-06 OPERATING FUNDS:
Fund Revenues Expenditures Differences 2005 Budget % Change
General $119,444,915 $124,596,813 $ (5,151,898) $120,934,554 3.03%
Sewer 3,526,152 3,526,152 - 3,626,496 -2.77%
Paving 11,320,660 11,320,660 - 11,524,171 -1.77%
Medical Center 10,311,002 10,311,002 - 9,923,062 3.91%
Integrated Waste 9,124,455 9,124,455 - 9,323,416 -2.13%
E-911 2,961,088 2,961,088 - 2,797,904 5.83%
Debt Service 5,922,205 7,811,905 (1,889,700) 8,663,464 -9.83%
METRA 4,772,083 4,772,083 - 4,635,387 2.95%
Parking Mgmt 320,737 349,824 (29,087) 330,565 5.83%
Trade Center 2,049,358 2,049,358 - 1,810,549 13.19%
Bull Creek 1,350,300 1,350,300 - 1,378,075 -2.02%
Oxbow Creek 562,022 562,022 - 572,069 -1.76%
Civic Center 4,672,457 4,997,021 (324,564) 4,136,800 20.79%
Economic Dev. 816,288 816,288 - 826,850 -1.28%
Total $177,153,722 $184,548,971 $(7,395,249) $180,483,362 2.25%
City Manager Hugley reported that this budget is 2.25% greater than last
year?s budget. He said that the 2.25% increase over the FY-05 budget is less
than the CIP (Consumer Price Index), which is 2.97% for the calendar year and
3.15% March to March.
What is in the FY06 budget for employees?
5% Bonus for full-time employees & 2.5% bonus for part-time and retirees, which
totals ($4.6 million) *
City absorbs increase in Healthcare costs at an average of $250 per employee
($640,000.00)
Public Safety Additional supplement for sworn personnel ($.2 million)
Total Benefit for Employees - $5.4 million
*For Qualified Employees employed Jan 1, 2005
*For Qualified Employees employed Jan 1, 2005
Note: 2% Pay increase effective Jan 1, 2006 for constitutional officers
Employee Eligibility
Actively at work on July 29, 2005
Employees on leave of absence due to deployment will be considered active
Employees who retire June 30, 2005 will receive retiree bonus
Employees not actively at work on July 29, 2005 due to resignation or
termination shall not receive the bonus
Employees not actively at work on July 29, 2005 due to use of compensatory
time, annual leave or holiday leave shall be considered active
Employees not actively at work on July 29, 2005 due to authorized leave without
pay, workers? compensation or sick leave, shall not receive bonus until 30 days
after their return to work. Employee not back to work by June 30, 2006 will
cancel bonus payment eligibility.
Councilor Woodson suggested that this information be provided to the
employee in a bulletin so they would have this if they were not able to watch
the CCG-TV.
*** *** ***
Associate Juvenile Court Judge Warner Kennon, came forward and introduced
Ms. Carol Scherer, who was present with him on this behalf. He said that
approximately three or four years ago, Judge Cohn and he realized that 60% or
their cases had some kind of drug component. He said that we determined that
if we could do something about that, we could really help the children. He
said that Ms. Carol Scherer headed the effort to create a Drug Court, which we
were successful and received a Federal Grant for a substantial amount of
money. He explained that the money is about to run out, because it was mainly
seed money to get the program started. He then spoke of the effectiveness of
the program and the many rewards that it offers. He then asked Ms. Scherer to
go over the budget portion of the Drug Court.
Ms. Carol Scherer, said that she initially asked about the DATE monies
that is being made available. She pointed out that one of the funds that a
criminal justice coordinator in the Governor?s Office told her about was the
DATE fund, which is being used to operate several Drug Courts. She advised
that Assistant City Attorney Deloach researched the matter and found out that
the money is going to the Police Department. She pointed out that a grant
proposal has been submitted; we should know within the next week if that grant
would be approved or not. She spoke of other efforts that are being made to
secure funding for the Drug Court. She expressed concerns with limited monies
available to pay salaries for the employees. She said there are three
part-time employees and two full-time case managers. She advised that the Drug
Court Judges receive a small stipend, as well as, the District Attorney?s
Office and the Public Defender?s Office, and we have been able to get that
money from other grants. She pointed out that this money is running out as
well. She said that basically for personnel cost, it would take $147,250.00 a
year for eight employees and to keep the program going. She said that we have
served almost 300 children in four years with an unbelievable success rate. She
emphasized the problems that occur with juveniles that are involved with drugs.
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NOTE: Mayor Pro Tem Rodgers left the meeting during this portion of the
proceedings with the time being 11:50 a.m.
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Councilor Allen asked about instituting fines and fees to assist with
covering the cost of the program, at which time, Ms. Scherer pointed out that
fees can only be used for the program and cannot be used for personnel cost.
She advised that many of the grants are designed the same way in that it cannot
be used for personnel and that is where we are having the most problems.
Councilor Allen then suggested some assistance from the School
Administrators to minimize some of the cost. Judge Kennon spoke of the State
Legislation regarding how the money could be use, which does not include
salaries.
Chairperson Turner Pugh asked about the additional monies being paid to
the Public Defender and the District Attorney?s Office. Ms. Scherer then
explained how the program was set up and the stipend of $200.00 per month that
is paid to the employee in the Public Defender?s Office and the District
Attorney?s Office. Finance Director Cole was then asked to explain how this
has been paid and wouldn?t it be considered salary. She pointed out that this
money comes from the Children Youth Coordinating Counsel Grant to pay the
salaries, treatments, supplies, etc. She pointed out that this money would go
through the end of October. She mentioned one other grant that is used for the
psychological evaluation of the children in the program.
In response to Councilor McDaniel regarding monies that is confiscated on
drug busts, Assistant City Attorney Deloach advised that the money must be
earmarked for drug enforcement. City Attorney Hugley suggested that he be
given the opportunity to meet with the City Attorney regarding this matter to
get a clear determination. Chairperson Turner Pugh asked for a clear
understanding of why the City is paying a stipend to the District Attorney?s
Office and Public Defender?s Office.
Councilor Woodson suggested that the staff meet with the State
Legislatures to see about changing the legislation regarding the use of drug
monies. Councilor Allen requested a report of the revenue and expense for the
Juvenile Drug Court, as well as, a listing of all of the grants received by the
Juvenile Drug Court and the ones that are running out of funding.
Councilor Hunter expressed the benefits of supporting the Juvenile Drug
Court, because juvenile offenders, without assistance programs, turn into adult
offenders.
City Manager Hugley responded to questions regarding the handling of grant
writing, which is now being handled through the finance department.
In conclusion, Judge Kennon made some remarks on the intense training that
was done through the District Attorney?s Office and the Public Defender?s
Office and the chronology of how the two offices began receiving stipends.
The action regarding the drug court was delayed from the last Budget
Review Meeting.
ADD/DELETE LIST:
#1: Drug Court- Request for $100,000.
Councilor Hunter moved approval. Seconded by Councilor Anthony.
City Manager Hugley reported that the $100,000 for the County Drug Abuse
Treatment and Education Fund is allocated 100% to the Police Department. He
noted that in 2004, the Columbus Police Department spent $35,400 of that money
for DARE and year to date, $14,800.00 from that fund has been used for DARE.
He advised that from research conducted by Assistant City Attorney Deloach and
Finance Director Cole, they were not able to find any limitations or
restrictions on how those funds could be used. He reported that there is
approximately $200,000 in that fund and because the Police department has not
used 100% of those funds in the past, it is his understanding that we could use
some of those funds to support the Drug Court. He recalled that if the grant
does not come through for the Drug Court; then, the Council could allocate some
of the monies from the DATE fund in lieu of taking money out of the General
Fund. He pointed out that if the grant does go through; then, the City would
not need those funds and they would remain in the DATE fund.
After Judge Kennon responded to further questions, Councilor Allen said
that since Judge Kennon has pointed out that the Drug Court generates
approximately $25,000; then, he would make a substitute motion to reduce the
requested amount to $75,000 that would be coming from DATE funding, which would
make the total amount $100,000. At this time, Judge Kennon pointed out that
the monies generated could only be used for programs for treatment and cannot
be used for salaries.
Judge Kennon recommended that the Juvenile Drug Court become a budgeted
item for the City, State or both; therefore, we would not have to try to
resuscitate the program from year to year. In response, Councilor Allen spoke
of the strain to the City?s budget and positions within the City government
that would be eliminated. He suggested going through the State.
Mayor Poydasheff strongly urged that the Council hear from Police Chief
Boren since there are discussions regarding taking funding from DATE, which is
allocated to the Police Department.
Police Chief Boren said that he is in the process of trying to figure out
a way to get the officers on the streets and retain the programs. He then
explained the history of the DATE funds. He recalled that according to Georgia
Law, this money could not be used for personnel. He called attention to
Georgia Law Section 15-21-101; this money must be used exclusively for drug
abuse treatment and education programs. He pointed out that this is the reason
why he has not used it for personnel, because the funding would not be in
there. Assistant City Attorney Deloach reiterated that the law states that it
is to be used for drug treatment and rehabilitation; however, when looking at
the legislation for this funding does, it does not have any exclusionary
clauses for salary; therefore, it is her opinion that we could not find
anything that said we couldn?t.
Councilor Suber said that the administration needs to go through every
department to find out where every single dollar is being spent; so, we can
know what dollars are available.
Judge Kennon responded to a question from Councilor Allen regarding the
number of juveniles in the program from surrounding counties and provided the
numbers involved. Councilor Allen requested that the City Attorney?s Office
check the legislation for this program, because the Police Chief has stated
that it mentions the word ?exclusively? for drug abuse treatment. Councilor
Hunter asked if there have been any opinions requested from the Attorney
General in this regard and asked for some research on this matter.
Chairperson Turner Pugh requested that some research be done to check with
other drug courts to see how they are funding their program.
City Manager Hugley pointed out that the DATE funding brought in about
$16,000 last year; therefore, this is an accumulation of money over a period of
time. He cautioned that if we began using this money for salaries the funds
would be busted within the first year.
With there being no other discussion on this matter, Clerk of Council
Washington advised that the motion on the floor was to approve $100,000.00 for
the Juvenile Drug Court. Councilor Hunter said that this motion was made
before the City Manager made his presentation; therefore, he would go with the
recommendation of City Manager Hugley and withdraw his motion. City Manager
Hugley reiterated that based on the legal opinion that we could use DATE money
for Drug Court; he suggested using $100,000 from the $200,000.00 that is
available to fund the Drug Court. Councilor Hunter then made the motion to add
the Drug Court into the budget. Seconded by Councilor Suber. Chairperson
Turner Pugh reiterated the motion to include that the Drug Court be added back
into the budget with the addendums as it relates to funding, grants and/or the
DATE program. The motion carried unanimously by those eight members present
with Mayor Pro Tem Rodgers having already left the meeting and Councilor Davis
being absent for this vote.
*** *** ***
PAY RAISES:
Councilor McDaniel explained that the higher percentage of increase goes
to the top-level employees and this is the reason that he does not agree with
the across the board percentage increase. He then proposed that those
employees earning $25,000 or less receive an annual bonus of $1,500; $25,000 to
$49,000 receive $1,800; $50,000 to $75,000 received $2,000; $75,000 on up
receive $2,500. He recommended that no one received over $2,500. He said that
Public Safety would receive an additional $200.00 with there being 1203 public
safety officials or the City could give them $500. He said that his proposal
would cost the City $3.9 million. He added that he has excluded elected
officials from this proposal. He then made a motion to accept this proposal.
The motion dies for the lack of a second.
*** *** ***
EMPLOYEES? BONUS:
City Manager Hugley pointed out that he needs to mention that those employees
that would be eligible for the 5% bonus must be on the City?s payroll by
December 31, 2004 and must be still on the payroll on July 29, 2005.
*** *** ***
ADD/DELETE LIST: GENERAL FUND
City Manager Hugley recapped those expenditures that have been approved
and/or denied, thus far.
General Fund Expenditures $124,596,813
3 Cadets (Pugh) $78,760 (denied)
Conditional Discharge (Pugh) $77,049 (approved)
DARE, GREAT (Pugh) $0 (administrative by the Chief)
Juvenile Diversion (Pugh) $0 (administrative by the Chief)
Drug Court (Pugh) $100,000 (approved)
#2: City Attorney?s Pay Adjustment:
City Manager Hugley advised that there is a pay adjustment of $10,000 for
City Attorney Fay that the Council has not taken action on. Councilor McDaniel
moved approval. Councilor Suber suggested that the Council put a hold on this
request and not approve it at this time. He pointed out that throughout the
City Government, there is an assessment being done. He said that once the
assessment is done, we would be able to look at all of the employees.
Chairperson Turner Pugh pointed out that the motion dies for the lack of a
second.
*** *** ***
GENERAL FUND:
General Fund Expenditures $124,596,813
General Fund Revenues $119,444,915
Fund Balance 69.34 days
City Manager Hugley explained that the $100,000 is included but with the
DATE Funds; therefore, the $100,000 would not be coming out of the General
Fund. Councilor Woodson added that with the DATE Funding, we would find out if
that money could be used for salaries and if so, it could be split between the
Drug Court and those two programs. City Manager Hugley advised that $100,000
would be allocated from DATE to Drug Court; then, $100,000 would go to the
Chief to use for the programs.
Councilor Hunter recalled that the Chief was previously asked to check
with the School Board for assistance with the GREAT and DARE programs and asked
if this has been done, at which time, Police Chief Boren responded that we
looked at different avenues on how to fund this, because we cannot use retired
law enforcement officers; they have to be active duty police officers. He said
that we are working on that. Councilor Davis pointed out that the Council is
not terminating any programs.
Councilor Allen suggested putting this on the Legislative Agenda for the
legislators to consider allowing the retired police officers to oversee the
DARE and GREAT programs. Chief Boren maintained that it is a State Law for
DARE and federal law for GREAT, because GREAT is funded through a grant from
ATF. After that response, Councilor Allen suggested making the request through
State Legislators for the DARE program.
Deleted Position: Administrative Tech from Superior Court Judge:
City Manager Hugley advised that we are removing from our expenses an
Administrative Tech position from Superior Court; this was a temporary
position. He briefly explained that this person was deleted when the
individual was moved to Judge Pullen?s court. He pointed out that it is
included here in error; therefore, we are backing out of that expense of
$27,247.
#3: Part-Time Permanent Person for CCG-TV:
City Manager Hugley advised that this person is currently temporary, but
we would like to make this position part-time permanent.
Councilor Henderson moved approval. Seconded by Councilor Allen and
carried unanimously by those nine members present with Mayor Pro Tem Rodgers
having already left the meeting.
#4: Deleted Position: Administrative Tech from Superior Court Judge:
Councilor Suber suggested voting to delete the Administrative Tech from
the Superior Court Judge in the amount of $27,247 and so moved. Seconded by
Councilor Henderson and carried unanimously by those nine members present with
Mayor Pro Tem Rodgers having already left the meeting.
City Manager Hugley advised that we are removing from our expenses an
Administrative Tech position from Superior Court; this was a temporary
position. He briefly explained that this person was deleted when the
individual was moved to Judge Pullen?s court. He pointed out that it is
included here in error; therefore, we are backing out of that expense of
$27,247.
#5: Supervisory Fees (Juvenile Court):
Councilor Suber moved approval. Seconded by Councilor Woodson and carried
unanimously by those nine members present with Mayor Pro Tem Rodgers having
already left the meeting.
City Manager Hugley advised that with the Administrative Tech being
deleted from expenses and the $20,000 revenue there is a net of $7,247 that we
were able to reduce our expenses. He then provided the following totals.
GENERAL FUND:
General Fund Expenditures $124,666,615
General Fund Revenues $119,535,839
Fund Balance 70.08 days
#6: Two additional Fire Engines for Debt Service:
City Manager Hugley recalled that the Council asked that two additional
fire engines through GMA lease, we had already included one fire engine with
$60,000 for Debt Service. He said that when we confirmed the numbers the total
debt service would be $70,000; therefore, we only had to add $10,000.
Councilor Allen moved approval to add the $10,000. Seconded by Councilor
Woodson and carried unanimously by those nine members present with Mayor Pro
Tem Rodgers having already left the meeting.
#7: METRA Fund:
METRA Expenses - $4,772,083
Operations Overtime - $10,679
Operating Expenses Travel/Training/Uninsured Losses/Uniforms - ($2,196)
Total METRA Expenditures - $4,780,566
Councilor McDaniel moved approval of the METRA Fund. Seconded by
Councilor Woodson and carried unanimously by those nine members present with
Mayor Pro Tem Rodgers having already left the meeting.
#8: Trade Center
Trade Center Expenditures - $2,104,000
Bond Interest Payment - $120,524
Contingency - ($65,332)
Total Expenditures - $2,104,550
Trade Center Revenues - $55,192
Councilor McDaniel moved approval. Seconded by Councilor Suber and carried
unanimously by those nine members present with Mayor Pro Tem Rodgers having
already left the meeting.
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NOTE: Mayor Poydasheff left the meeting during this portion of the proceedings
with the time being 1:15 p.m.
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#9 Bull Creek Golf Course:
Bull Creek Expenditures $1,350,300
Laborer Position $26,765
TOTAL EXPENDITURES $1,377,065
Bull Creek Revenues $1,350,300
Golf Course Operations $26,765
TOTAL REVENUES $1,377,065
City Manager Hugley advised that there was an employee that was on
Military Leave and that position was not included in the budget; however, we
need to add that position because the individual has returned from military
duty. He pointed out that we are adjusting the revenue by that same amount
Councilor McDaniel moved that the laborer?s position be added back into
the budget. Seconded by Councilor Woodson and carried unanimously by those
nine members present with Mayor Pro Tem Rodgers having already left the meeting.
#10 Civic Center
CIVIC CENTER EXPENDITURES $4,997,021
NBDL (Civic Center) ($132,508)
Other Events (Civic Center) $75,000
Polar Decking (Woodson) $130,000
Stage Equipment (Woodson) $30,000
Soundboard (Woodson) $6,000
City Manager Hugley explained that to balance the budget, we took $50,000
from Contingency at the Civic Center to get the expenses down to $5,055,200,
but the revenue is estimated at $4,672,457. He said that we are taking out the
$208,000 that they had projected in revenue at the Civic Center. He further
explained that the total revenue that we could come up with is $4,614,949,
which means the budget is not balance.
City Manager Hugley explained that the Civic Center has $672,365 in their
Fund Balance (unrestricted funds). He said $324,564 of that was General Fund
money that we had put over there, because we did not think the Civic Center
would have enough money. He said that is the money that we are asking the
Council to bring back into the General Fund to help with revenue.
Councilor Allen suggested using $100,000 out of the Civic Center
Contingency Fund to improve the sound system. Chairperson Turner Pugh asked
that Civic Center Director Dale Hester come forward to address the concerns
with the soundboard. Civic Center Director Hester confirmed the fact that the
sound system needs improvement.
In response to a question of Councilor Woodson, Civic Center Director
Hester explained that the $6,000 would cover the soundboard; however, the Civic
Center Advisory Board members would like to replace the entire system, which
would be the larger amount. City Manager Hugley said that if we add the
$100,000 to what we already have; then, that is going to put the Civic Center
Fund Balance at 132,000. He then expressed concerns with the Civic Center Fund
Balance being that low.
Responding to questions of Councilor Suber, Civic Center Director Hester
advised that if the Council approves the expenditure of $100,000 for the system
from the Civic Center?s Contingency Fund, he would not immediately make the
purchase but would make sure that the funds are available first.
After Civic Center Director Hester responded to additional questions
regarding the funding for the sound system, Councilor Allen moved to allot up
to $100,000 for a sound system at the Civic Center Director?s discretion to be
used between now and January. Seconded by Councilor Anthony. Councilor
Woodson suggested adding to the motion the items that were on the add/delete
list for the Civic Center. Councilor Allen amended his motion to include those
items requested by Councilor Woodson to be added for the Civic Center, which
includes the sound system- $100,000, soundboard- $6,000, polar decking-
$130,000 and stage equipment- $30,000. Seconded by Councilor Woodson.
In conclusion, there were some additional comments, at which time,
Chairperson Turner Pugh called attention to the motion, which carried
unanimously by those nine members present with Mayor Pro Tem Rodgers having
already left the meeting.
*** *** ***
At the conclusion of the add/delete list, City Manager Hugley provided the
final totals and are listed as follows.
Expenses - $184,877,392
Revenues - $177,277,578
Difference - ($7,599,814)
The General Fund balance needed to balance the budget is $5,130,776.
To balance the Debt Service Fund, we need from the Debt Service fund
balance $1,899,700
In parking, to balance that fund, we need $29,087.
Civic Center- to balance the fund $5,040,251.
From the various fund balances there is a total of $7,599,814.
City Manager Hugley provided a listing of the various questions that have
been asked over the course of the budget sessions as part of the power point
presentation.
Chairperson Turner Pugh reminded everyone that this is the last budget
session and next Tuesday would be the first public hearing on the budget. City
Manager Hugley advised that we have one meeting at 9:00 a.m. on next Tuesday in
the Council Chambers for the millage, one hearing at 6:00 p.m. at the Council
Meeting and the following Tuesday, June 14, 2005, there would be the final
public hearing and at that time the budget would be on second reading for
approval.
*** *** ***
Resolution:
Chairperson Turner Pugh requested that City Attorney Fay bring forth a
resolution to cancel the June 28, 2005 Council Meeting due to the GMA Annual
Convention.
*** *** ***
Chairperson Turner Pugh said that the City Manager has provided the
members of Council with a packet of information and suggested that everyone go
through the information and if there are any questions, to get with the City
Manager.
She then asked if there was any other matter concerning the budget, at
which time, there was no response. She thanked everyone for their cooperation
in this matter.
There being no other budget related items to discuss, this meeting
adjourned at 1:55 p.m.
________________________
Sandra T. Davis
Deputy Clerk of Council
Council of Columbus, Georgia
Attachments
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