Minutes
BUDGET REVIEW COMMITTEE
April 8, 2014
Members Present: Chairperson Berry Henderson and Mayor Pro Tem Evelyn Turner
Pugh, Councilors Jerry ?Pops? Barnes, Glenn Davis, Bruce Huff, Judy W. Thomas
and Evelyn Woodson. Also present were Mayor Teresa Tomlinson, City Manager
Isaiah Hugley, City Attorney Clifton Fay, Deputy City Managers David Arrington
and Lisa Goodwin, Finance Director Pam Hodge and Deputy Clerk of Council Sandra
Davis.
Members Absent: Councilors R. Gary Allen, Mike Baker, and Charles E. McDaniel,
Jr. were absent. Clerk of Council Tiny Washington was also absent.
Call to Order: Chairperson Henderson called the meeting to order at 11:12 a.m.
in the Council Chambers, Second Floor, of the Citizen Services Building.
Chairman Henderson then reminded everyone of the process that includes an
overview and briefing on some of the funds, as well as, department head
presentations. He explained that members of the committee have the opportunity
to place items on the Add/Delete List. He then noted one change in the process
is that previously a simple majority of the Budget Review Committee members
would rule on the voting of the Add/Delete List but now it takes a majority of
the seated members, which means six votes of Council or five votes with the
Chairperson being the tie breaker.
The following documents were distributed around the Council table: FY2015
Recommended Budget, FY 2015 Budget Schedule and FY15 Recommended Budget-
General Fund- Departmental Reductions.
Finance Director Pam Hodge outlined the reports that are provided on the
disc; however, Chairperson Henderson advised that the Finance Department would
be providing this information in another format compatible with the updated
computer system. She then provided an overview of the FY2015 Recommended
Budget and is provided in the following power point presentation:
FY2015 RECOMMENDED BUDGET
April 8, 2014
AGENDA
l Budget Process/Schedule
l Overview
l Operating Funds Summary (including Capital/CIP)
General Fund ? Fund Balance
l Agency Appropriations
l Non-Operating Funds Summary
BUDGET PROCESS
? The budget must be submitted to the Council by the Mayor no less than 60 days
prior to each fiscal year.
? The budget must include operating and capital expenditures accompanied by
revenues.
? The budget must be made public by advertising in the newspaper and hearings
must be held for public comment.
? The budget and the millage rate ordinances along with related ordinances must
be approved by July 1.
BUDGET SCHEDULE
MAY 2013
Budget Review Sessions
? April 8th ? Overview, Operating Funds Summary, General Fund- Fund Balance,
Agency Appropriations, Non-Operating Funds Summary
? April 15th ? Other Local Option Sales Tax, TSPLOST, Health Insurance
? April 22nd and 29th ? Department Presentations
? May 6th, 13th, 20th ? Department Presentations
? May 27th ? Add/Delete List
BUDGET SCHEDULE
JUNE 2014
? Notices in the newspaper for public comment
? Public hearings for Taxpayers Bill of Rights
? First Reading of the Budget Ordinance
l Public hearing
? Second Reading - Budget Final Approval
JUNE 2014
? First reading of the Tax Millage
l Public Hearing
? Second reading of the Tax Millage
l Final Tax Rates
JULY 1, 2014
? Fiscal Year begins
FY14 OPERATING FUNDS
? Revenues $259,084,511
? Expenditures $263,097,415
? Use of fund balances $ 4,012,904
l General Fund $3,815,810 (includes a $1,889,900 Public Safety vacancy Reserve
l Debt Service $ 197,094
ASSUMPTIONS
? No change in the Millage Rates from FY14
? USD #1 = 17.88 mills
? USD #2 = 11.90 mills
? USD #4 = 11.00 mills
? 1.00% Increase in the Digest
? 96% Collection Rate
? NO subsidy to Integrated Waste Fund
? Subsidies to E911, Golf Courses, Parking Management, Naval Museum and Civic
Center
? Value of one mill (Operating) $4,484,207
? Value of one mill (Debt) $4,913,148
? COLA included of 0.50% for active employees and 0.25% for retirees effective
January 2015
? Health Insurance ? City remains the same at $5,650 with implementation of a
contribution sharing strategy and changes proposed to the plan (to be discussed
in detail on April 15th)
MILLAGE SUMMARY
USD #1 USD#2 USD#4
Total Gen and Urban 8.18 6.13 5.98
METRA 0.82 0.82 0.82
Total subject to cap 9.00 6.95 6.80
Stormwater (Sewer) 1.24 0.20 N/A
Paving 3.44 0.55 N/A
Medical Center 3.00 3.00 3.00
Economic Development 0.50 0.50 0.50
Debt Service 0.70 0.70 0.70
TOTAL 17.88 11.90 11.00
Finance Director Hodge noted the only change is with the reduction of the
Debt Service from 0.79 to 0.70 and increase of the Economic Development millage
from 0.41 to 0.50.
Councilor Woodson asked if USD #1 and #2 have been re-evaluated to
determine if USD #4 should share more with the cost. Finance Director Hodge
advised that we have reviewed this and would be coming back with possible
recommendations for changes in the district lines.
FY15 OPERATING BUDGET BY FUND
? General - 57.3%
? Other LOST - 12.5%
? Paving - 5.7%
? Medical Center - 5.3%
? Integrated Waste - 4.1%
? Transportation - 2.4%
? Debt Service - 4.2%
? Civic Center - 2.1%
? Stormwater (Sewer) - 2.0%
? E911 - 1.5%
? Trade Center - 1.0%
? Bull Creek - 0.6%
? Economic Development - 0.8%
? Oxbow Creek - 0.2%
? Parking Management - 0.2%
FY15 REVENUES
? General Property - 31.1%
? Sales & Use Taxes - 27.0%
? Charges for Services - 14.5%
? Business & Other Taxes - 9.2%
? Franchise Fees - 6.8%
? Transfers In - 3.8%
? Fines & Forefeitures - 2.1%
? Fund Balance - 1.5%
? Intergovernmental - 1.4%
? Miscellaneous - 1.1%
? Licenses & Permits - 0.9%
? Investment Income - 0.5%
FY15 EXPENDITURES
? Public Safety - 39.0%
? Community Services ? 8.9%
? Criminal Justice - 5.6%
? Statutory, Boards & Commissions - 1.6%
? Capital Improvements - 1.8%
? Non-Departmental ? 11.4%
? Debt Service - 4.4%
? Mass Transit - 2.5%
? Management Operations - 6.7%
? Public Works - 10.3%
? Recreation & Culture - 7.9%
FY15 OPERATING BUDGET BY TYPE
? Personnel Services - 58.6%
? Operating - 38.9%
? Capital - 0.6%
? COLA / Pay Adjustment - 0.1%
? CIP - 1.8%
GENERAL FUND
? Revenues $147,040,131
? Expenditures $150,855,941
? Difference ($ 3,815,810)
o Includes a Public Safety Vacancy Reserve of $1,889,900
? General Fund ? accounts for normal ?day to day? activities (i.e. police,
fire, public works, finance, recreation, jail, courts and general government).
Primarily funded from sales tax, property taxes and franchise fees.
At this time, Finance Director Hodge made reference to the FY15
Recommended Budget- General Fund ? Departmental Reductions and explained each
column.
GENERAL FUND - # of Days of Unassigned FUND BALANCE
Reserve Days FY11 Actual FY12 Actual FY13 Actual FY14 Projection FY15 Projection
General Fund 79.84 71.57 68.73 46.07 38.05
OLOST 6.30 5.25 5.35 10.71 22.64
TOTAL 86.14 76.82 74.08 56.78 60.69
FY14 Fund Balance Projection
Assumptions included in projections
? ($6,521,60) FY14 Budgeted Use of Fund Balance
? $4,256,487 FY14 OLOST Reserve
? ($2,264,573) FY14 Budget = 5.40 days
? ($3,000,000) Health Insurance Shortfall = 7.14 days
? ($2,000,000) Expected budget overages = 4.76 days
? ($7,264,573) TOTAL = 17.30 days
STORMWATER (SEWER) FUND
? Revenues $ 5,254,260
? Expenditures $ 5,254,260
? Difference $ 0
? Stormwater (Sewer) Fund - accounts for activities that are restricted for
stormwater and drainage. Primarily funded from property taxes.
? Millage remains at 1.24 in USD#1, 0.20 in USD#2
? Capital = $190,000, CIP = $859,212
PAVING FUND
? Revenues $ 14,969,902
? Expenditures $ 14,969,902
? Difference $ 0
? Paving Fund ? accounts for maintenance and improvements to roads and
bridges. Primarily funded with property taxes.
? Millage remains at 3.44 in USD#1, 0.55 in USD#2
? Capital = $413,000, CIP = $2,000,091
MEDICAL CENTER FUND
? 3 mills projected at $13,452,622
? Proposed budget $14,052,622
? Medical Center - accounts for funding for indigent hospital care.
Primarily funded with property taxes.
? Contract includes $500K of inmate medical expenses; any charges in excess of
this amount are split 50% with the City.
? $600,000 Transfer from the General Fund included
Chairperson Henderson asked staff to keep the matter under the radar
regarding the tracking of the increase in the general indigent population cost
of providing medical care and prison population. After Mayor Pro Tem Turner
Pugh asked for clarification on the inmates that are being sent to the Medical
Center, as well as, the reimbursement rate to the Medical Center, Finance
Director Hodge said that the Sheriff would be asked to attend a meeting to
respond to these specific questions.
INTEGRATED WASTE
? Revenues $10,811,000
? Expenditures $10,811,000
? Difference $ 0
? Integrated Waste ? accounts for refuse and disposal services. Primarily
funded from user charges.
? Residential Fee proposed at $15.00 month (increase of $0.86 / month)
? Capital = $225,000
E911
? Revenues $3,851,138
? Expenditures $3,851,138
? Difference $ 0
? E911 ? accounts for telephone subscriber surcharges and collection for
emergency dispatch. Primarily funded from land lines and wireless phone
charges.
? Other Local Option Sales Tax Fund Subsidy $ 951,138
ECONOMIC DEVELOPMENT
? Budget $2,152,420
? Economic Development ? accounts for 0.25 mills used for attracting quality
companies, broadening the tax base, job creation and retention = $1,076,210
? Reserve for Economic Development ? 0.25 mills = $1,076,210
o To be used for Year 5 of 10 NCR Project commitment = $948,000
DEBT SERVICE
? Revenues $ 10,911,714
? Expenditures $ 11,108,808
? Difference $ 197,094
? Debt Service Fund-accounts for accumulation and disbursement of principle and
interest payment.
? Millage rate reduced to 0.70 mills from 0.79 mills
METRA
? Revenues $ 6,430,424
? Expenditures $ 6,430,424
? Difference $ 0
? METRA ? accounts for the operations of the public transportation system.
Primarily funded from property taxes, federal grants and service charges.
? Capital $ 788,300
*Note: Utilizing METRA ? Available Fund Balance
PARKING MANAGEMENT
? Revenues $ 398,500
? Expenditures $ 398,500
? Difference $ 0
? Parking ? accounts for the operation of public parking and parking garages.
Primarily funded from parking fees.
? General Fund Subsidy $150,000
? Increase Parking Fines from $20 to $30 = $70,000
TRADE CENTER
? Revenues $ 2,644,850
? Expenditures $ 2,644,850
? Difference $ 0
? Trade Center ? accounts for the operations of the facility. Primarily
funded from event proceeds and beer taxes ($770k), and Hotel/Motel Tax ($630k)
BULL CREEK / OXBOW CREEK GOLF COURSES
? Bull Creek - $1,482,050
o General Fund Subsidy $50,000
? Bull Creek - accounts for the operation of the Bull Creek Golf Course
? Oxbow Creek - $532,000
o General Fund Subsidy $250,000
? Oxbow Creek - accounts for the operation of the Oxbow Creek Golf Course
Councilor Thomas commented that the subsidies include the increases in
user fees that are a part of the revenue and there is still a shortage of
$50,000 at Bull Creek and $250,000 at Oxbow Creek, at which time, Finance
Director acknowledged this is correct.
CIVIC CENTER
? Revenues $ 5,553,500
? Expenditures $ 5,553,500
? Difference $ 0
? Civic Center ? accounts for the operations of the facility. Primarily
funded from hotel/motel taxes ($1.26 million) and events proceeds.
? General Fund Subsidy $ 200,000
AGENCY APPROPRIATIONS $1,344,047 FY13 Projection FY14 Projection
Health Department Services $650,780 $502,012
Health Department Rent $309,383 $315,713
Department of Family & Children Srv $62,400 $48,135
Keep Columbus Beautiful $64,628 $49,854
Uptown Columbus $58,320 $44,988
Airport Commission $40,000 $40,000
River Valley Regional Comm $194,107 $198,413
New Horizons $187,858 $144,932
Finance Director Hodge noted that the Literacy Alliance has received a
Crime Prevention grant and at this point has been funded under the Crime
Prevention program.
NAVAL MUSEUM
Personnel Expenses $ 235,473
Revenue $ 100,473
Net Subsidy $ 135,000
Naval Museum responsible for all operating expenses.FY99 ? FY03 = $78,840
subsidyFY04 ? FY07 = $103,840 subsidyFY08 ? FY11 = $300,000 subsidyFY12 =
$250,000 subsidyFY13 = $200,000 subsidyFY14 = $175,000 subsidy
NON-OPERATING FUNDS
Funds not for the general operation of the government
Restricted for a specific purpose
Must be budgeted annually
Maintained in a separate fund
NON-OPERATING FUNDS
Urban Development Action Grant $75,000
Economic Development Program $15,000
HOME $590,774
HUD Section 108 $831,600
Multi Governmental $3,289,750
Hotel/Motel Tax $5,040,000
Police Forfeiture $100,000
County Drug Abuse Treatment (DATE) $68,000
Metro Drug Task Force $200,000
County Jail / Penalty Assessment $400,000
Sheriff Forfeiture $100,000
Marshal?s Forfeiture Fund $5,000
Special Projects (CIP) $12,859,303
1999 SPLOST Fund $24,000,000
TSPLOST Fund $66,821,527
Family, Youth and Coalition $45,000
Land Bank Authority $15,000
Columbus Bldg. Authority Lease Revenue Bonds Series 1999C $450,000
Columbus Bldg. Authority Lease Revenue Bonds Series 2003A $800,000
Columbus Bldg. Authority Lease Revenue Bonds Series 2003B $4,000,000
Columbus Bldg. Authority Lease Revenue Bonds Series 2010B $22,000,000
Columbus Bldg. Authority Lease Revenue Bonds Series 2010C $1,500,000
In conclusion of the presentation, Finance Director Hodge noted that at
the next meeting, she would provide an overview of the OLOST, TSPLOST and the
health insurance.
Chairperson Henderson asked that Mayor Tomlinson along with the
Administration, check with the Public Safety Departments to determine if there
may be some duplication of similar task forces, etc. and let?s identify those
types of functions that exist in the Sheriff?s Office, Police and Marshal?s
Department. He said provide a report on how many calls we are receiving for
the different entities so we could take a look at the numbers.
Councilor Thomas asked to be provided with how much across the city that
we expend for electricity without having the task of adding up all of the
budget line items 6643. Finance Director Hodge said that we could provide that
in a different format so that it would add up.
Finance Director Hodge was asked to introduce the Finance Department
employees, who were seated in the audience.
*** *** ***
There being no other budget related items to discuss, Councilor Huff made
a motion to adjourn. Seconded by Councilor Woodson and carried unanimously by
those seven members present with Councilors Allen, Baker and McDaniel being
absent for this meeting with the time being 12:11 p.m.
________________________
Sandra T. Davis
Deputy Clerk of Council
Council of Columbus, Georgia
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