Minutes
BUDGET REVIEW COMMITTEE
May 6, 2008
Members Present: Chairperson Berry Henderson and Councilors Mike Baker, Jerry
?Pops? Barnes (arrived 3:12 p.m.), Julius Hunter, Jr., Charles E. McDaniel, Jr.
and Evelyn Woodson (arrived 3:23 p.m.). Also present were City Manager Isaiah
Hugley, Mayor Wetherington, City Attorney Clifton Fay, Deputy City Managers
David Arrington and Lisa Goodwin, Finance Director Pam Hodge, Human Resources
Director Tom Barron, Clerk of Council Tiny B. Washington and Deputy Clerk of
Council Sandra Davis.
Members Absent: Mayor Pro Tem Evelyn Turner Pugh and Councilors R. Gary Allen,
Wayne Anthony and Glenn Davis were absent.
City Manager Hugley noted that we do not need a quorum for a Budget Review
Committee Meeting.
Call to Order: Chairman Henderson called the meeting to order at 3:09
a.m. in the Council Chambers, Plaza Level, of the Government Center.
The following document was distributed around the Council table: FY09
Recommended Budget Presentation.
Chairman Henderson made reference to the add/delete list where members of
Council have the opportunity to recommend adding an item to the FY-09 budget,
as well as, anything requesting to be deleted from the budget. At the end of
the Budget Review Sessions, the Council would then vote on the items. He
pointed out that any addition would have to have a corresponding deletion or we
would have to dip into some kind of fund balance or find some other revenue to
fund it.
Chairman Henderson reminded the public that the meetings started a few
years ago being televised in an effort to have a more transparent government.
He said this is for the finance or budget committee, which is made of the
entire Council.
After the opening remarks, City Manager Hugley pointed out this is the
first of three scheduled Budget Review Sessions for the FY-09 budget. He said
the next scheduled meeting is Tuesday, May 13, 2008 immediately after the
Council Meeting. He added that the final meeting is scheduled for Tuesday, May
20, 2008 immediately after the Council Work Session.
Finance Director Pam Hodge was then called forward to provide the
following power point presentation and is listed as follows:
Agenda- May 6, 2008
Overview
Personnel
Pay Plan
Benefits
FY09 OPERATING FUNDS
Revenue $209,565,634
Expenditures $210,751,819
Use of Fund Balance $1,186,185
General Fund - $1,141,527
Parking Management- $44,658
ASSUMPTIONS
No millage increase since FY05
9 mill cap in USD #1
3.00% Growth in the Digest
97% Collection Rate
E911 Subsidy $183,953
Oxbow Creek Subsidy $150,000 (Additional $178,034 from General Fund balance)
Bull Creek Subsidy $280,825
Value of one mill (Operating) $3,999,535
Value of one mill (Debt) $4,460,758
Pay Plan advancement to 100% of July 1, 2008 market implemented October 1, 2008
(not retroactive to July 1, 2008)
ASSUMPTIONS (Continued)
Health Insurance
City Contribution - decrease $250/year
Employee Contribution - increase all plans $15/pay period
No increase for retirees or unclassified employees (consider at mid-year)
$850,000 increase in Pension contribution
$0 included for post employment retiree benefits
Chairman Henderson said that he and another member of Council have talked
about this matter and we are of the opinion that we should try to take a look
at doing something for the retirees. He said add one and a half or two percent
for the retirees on there so we can take a look at what the impact would be.
Finance Director Hodge said that we would bring back some options for the
retirees.
City Manager Hugley, responding to a question from Councilor McDaniel,
explained that the 3% projected growth in the digest would allow us to be
balanced. He said that in the current budget we projected 2.75% growth in the
digest and the digest came in at 7.26%
GENERAL FUND FY09 FY10 FY11
Prop Taxes/Franchise Fees $48.7 $50.1 $51.4 2.75% Inc
Sales/Use Tax 39.7 40.5 41.3 2% Inc
Other Taxes 25.5 26.0 26.5 2% Inc
Licenses & Permits 2.6 2.7 2.8 2% Inc
Charges for Services 15.7 15.9 16.0 1% Inc
Interest 1.7 1.7 1.7 Stable
Fines & Forfeitures 3.8 3.8 3.8 Stable
Transfers In 3.0 1.0 .5 One time
Other 1.8 1.8 1.8 Stable
TOTAL $142.5 $143.5 $145.8
GENERAL FUND FY09 FY10 FY11
Personnel $106.4 $111.0 $111.0
Operating 33.2 32.5 33.8
Capital 0 0 1.0
CIP .5 .5 .5
Pay Plan 3.5 0 0
TOTAL 143.6 144.0 146.3
FY09 OPERATING BUDGET BY FUND
General - 68.15%
Paving - 6.45%
Medical Center - 5.69%
Integrated Waste - 5%
Transportation - 2.87%
Debt Service - 3.20%
Civic Center - 2.25%
Stormwater (Sewer) - 2.01%
E911 - 1.53%
Trade Center - 1.27%
Bull Creek - 0.79%
Economic Development - 0.46%
Oxbow Creek - 0.26%
Parking Management - 0.16%
FY09 REVENUES
General Property - 34.20%
Sales & Use Taxes - 19.25%
Charges for Services - 16.76%
Business & Other Taxes - 12.09%
Franchise Fees - 7.73%
Transfers In - 2.61%
Fines & Forefeitures - 1.91%
Fund Balance - 0.56%
Intergovernmental - 1.37%
Miscellaneous - 1.05%
Licenses & Permits - 1.28%
Investment Income - 1.20%
FY09 EXPENDITURES
Public Safety - 39.81%
Recreation & Culture - 9.11%
Public Services - 11.69%
Community Services - 9.63%
Management Operations - 7.14%
Mass Transit - 2.86%
Debt Service - 3.46%
Non-Departmental - 6.95%
Capital Improvements - 1.45%
Statutory, Boards & Commission - 1.76%
Criminal Justice - 6.14%
FY09 OPERATING BUDGET BY TYPE
FY09 Operating Budget by Expenditure Type:
Personnel Services - 61.84%
Operating - 33.32%
CIP - 1.45%
Capital - 1.26%
Pay Plan - 2.14%
GENERAL FUND
Revenues $142,477,715
Expenditures $143,619,242
Difference ($ 1,141,527)
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.
GENERAL FUND Highlights
Personnel $106,371,237 (74.1%)
7 additional and 2 reclassified positions
Operating $ 33,274,969 (23.2%)
Includes subsidies to Bull Creek, Oxbow and E911 (funded out of the General
Fund - Fund Balance)
Capital $ 0 ( 0%)
Review at FY09 Mid Year
CIP $498,715 (0.3%)
Baker Village $498,715 (funded out of the General Fund - Fund Balance)
Pay Plan $3,474,321 (2.4%)
City Manager Hugley explained that we have not budgeted any monies in the
FY09 budget for capital. He said that over the last several years, it has been
a practice to fund capital at mid-year and the level of funding put into
capital has been based on how we financially ended the fiscal year.
SEWER FUND
Revenues $ 4,226,812
Expenditures $ 4,226,812
Difference $ 0
Stormwater (Sewer) Fund - accounts for activities that are restricted for
stormwater and drainage. Primarily funded from property taxes.
Millage remains at 1.07 in USD#1, 0.12 in USD#2
SEWER FUND Highlights
Personnel $2,673,036 (63.3%)
1 additional and 2 reclassified positions
Operating $ 892,965 (21.1%)
Capital $ 73,500 ( 1.7%)
CIP $ 436,055 (10.3%)
Pipe Rehab
Pay Plan $ 151,256 ( 3.6%)
PAVING FUND
Revenues $ 13,602,995
Expenditures $ 13,602,995
Difference $ 0
Paving Fund ? accounts for maintenance and improvements to roads and bridges.
Primarily funded with property taxes.
Millage remains at 3.36 in USD#1, 0.91 in USD#2
PAVING FUND Highlights
Personnel $7,200,114 (52.9%)
1 additional position
Operating $3,736,147 (27.5%)
Capital $ 540,900 ( 4.0%)
CIP $1,772,512 (13.0%)
Resurfacing Program, Road Improvements, Sidewalks, etc.
Pay Plan $ 353,322 ( 2.6%)
MEDICAL CENTER FUND
3 mills
Proposed budget $11,998,604
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 ? paid from General Fund Balance
INTEGRATED WASTE
Revenues $10,369,272
Expenditures $10,369,272
Difference $ 0
Integrated Waste ? accounts for refuse and disposal services. Primarily
funded from user charges.
Residential Fee remains at $14/month
INTEGRATED WASTE Highlights
Personnel $4,638,105 (44.7%)
1 additional position
Operating $4,552,354 (43.9%)
Capital $ 643,600 ( 6.2%)
CIP $ 339,132 ( 3.3%)
Landfill Closure and Post Closure
Pay Plan $ 196,081 ( 1.9%)
E911
Revenues $3,216,916
Expenditures $3,216,916
Difference $ 0
E911 ? accounts for telephone subscriber surcharges and collection for
emergency dispatch. Primarily funded from land lines and wireless phone
charges.
General Fund Subsidy $ 183,953
Pay Plan $ 99,229
DEBT SERVICE
Revenues $ 6,742,948
Expenditures $ 6,742,948
Difference $ 0
Debt Service Fund-accounts for accumulation and disbursement of principle and
interest payment.
2004 Columbus Building Authority Lease Revenue Bonds have been settled
Millage rate remains at 1.23
METRA
Revenues $ 6,046,255
Expenditures $ 6,046,255
Difference $ 0
METRA ? accounts for the operations of the public transportation system.
Primarily funded from property taxes, federal grants and service charges.
Capital $ 1,158,750
Pay Plan $ 109,811
PARKING MANAGEMENT
Revenues $ 291,000
Expenditures $ 335,658
Difference ($ 44,658)
Parking ? accounts for the operation of public parking and parking garages.
Primarily funded from parking fees.
Pay Plan $ 8,405
Personnel - 1 position transferred to METRA, 1 position deleted
TRADE CENTER
Revenues $ 2,674,490
Expenditures $ 2,674,490
Difference $ 0
Trade Center ? accounts for the operations of the facility. Primarily funded
from event proceeds and beer taxes ($838K).
Capital $ 97,900
Pay Plan $ 53,753
Personnel - 2 additional positions
BULL CREEK
OXBOW CREEK
Bull Creek - $1,654,507
General Fund Subsidy at $280,825
Bull Creek - accounts for the operation of the Bull Creek Golf Course
Oxbow Creek - $550,058
General Fund Subsidy at $150,000 + additional $178,034 subsidy for Oxbow Golf
Oxbow Creek - accounts for the operation of the Oxbow Creek Golf Course
* Not included in the Pay Plan
CIVIC CENTER
Revenues $ 4,744,175
Expenditures $ 4,744,175
Difference $ 0
Civic Center ? accounts for the operations of the facility. Primarily funded
from hotel/motel taxes and events proceeds.
Capital - $ 131,900
Pay Plan - $ 56,712
CIVIC CENTER CLOSED JULY 14 ? SEPTEMBER 10
(Ice floor replacement)
ECONOMIC DEVELOPMENT
Budget $ 969,887
Economic Development ? accounts for .25 mills used for attracting quality
companies, broadening the tax base, job creation and retention
PERSONNEL
(includes Benefits)
General Fund - 7 additional positions totaling $270,919
City Manager?s Office
(1) Admin Assistant $39,314
Fleet Management
(1) Fleet Maintenance Tech I $36,123
(1) Fleet Maintenance Tech II $39,314
Special Enforcement
(1) Special Enforcement Officer $41,030
Facilities
(1) Building Service Worker $30,616
Tax Assessor
(1) Appraiser / Auditor I $42,811
Municipal Court Judge
(1) Deputy Clerk II $41,771
Finance Director Hodge explained that there are a total of seven positions
in the General Fund. She said the first five positions are those positions
that we brought at mid-year that we are bringing back again as part of the FY09
budget.
Reclassification of 2 positions to the General Fund
Fire/EMS
(1) Admin Asst to EMA Planner
(1) Firefighter to Sergeant Recruiter
Sewer Fund Added (1) position
Data Technicial I $43,613 (DELETED)
Finance Director Hodge advised that we have a correction, because the
first added position we will not need. She said this position would be coming
back next week on the delete list from staff. She pointed out that in the FY08
budget we were approved for a Remote TV/Camera Truck and these two
reclassifications would be to operate that Remote TV/Camera Truck to go down
into the sewer lines; therefore, once we receive the truck, we would be filling
these two positions.
Sewer Fund- Reclassified (2) Positions
Stormwater
(1) Stormwater Tech to Stormwater Data Tech
Sewer Maintenance
(1) Stormwater Tech to Stormwater Data Tech
Paving Fund - Added (1) Position
Assistant Division Manager $53,318
Integrated Waste Fund - Added (1) Position
Waste Equipment Operator III $39,313
Trade Center Fund - Added (2) Positions
Full-Time Event Attendant $19,317
Part-Time Event Attendant $12,359
Transportation Fund (METRA) - Transferred in (1) Position
Correctional Officer to METRA Maintenance (Transferred In)
Parking Management Fund ? Transferred out (1) Position and deleted (1) Position
Correctional Officer to METRA Maint.
Enforcement Officer (deleted)
WHAT?S IN THE FYO9
BUDGET FOR EMPLOYEES?
UGA Pay Study advancement to 100% of July 1, 2008 market (to be implemented on
October 1, 2008, not retroactive to July 1, 2008)
City?s healthcare contribution at $5,400/year (decreased by $250 per employee)
Employee insurance premium increases by $15 per pay period beginning Jan 1, 2009
3% increase estimated for state employees
PAY PLAN
ADVANCEMENT
100% of July 1, 2008 market
Cost of pay plan advancement estimated at $4,502,890
Place employees in the new salary scale
Employees advance 1 step for 2-9 years of service
Employees advance 2 steps for 10+ years of service
NOTE: Years of service calculated as of July 1st
PAY PLAN EXAMPLE
Pay Grade 14 (Police Officer, Sheriff?s Deputy, Deputy Marshal, Firefighter-EMT
Current vs. Proposed pay with High School diploma
$30,152.03 / $31,659.63
Current vs. Proposed pay with Associates degree
$30,905.83 / $32,451.12
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 2008
Budget Hearings for Council Review
May 6th - Overview, Personnel and Benefits
May 13th - Department Presentations, Capital, CIP, Agencies, Non-operating,
Add/Delete
May 20th & 27th - Hold, if needed
JUNE 2008
Notices in the newspaper for public comment
Public hearings for Taxpayers Bill of Rights
First Reading of the Budget Ordinance
Public hearing
Second Reading - Budget Final Approved
First reading of the Tax Millage
Public hearing
Second reading of the Tax Millage
Final Tax Rates
JULY 1, 2008
Fiscal Year begins
*** *** ***
EXECUTIVE SESSION:
City Manager Hugley said that he has spoken to the Mayor with regards to a
personnel matter related to budget and would like to go into executive session
to discuss the personnel matter.
After conferring with City Attorney Fay, who advised that the Council is
allowed to go into executive session to discuss a personnel matter since we are
in an official meeting with six members of Council present. Councilor Woodson
then made a motion to go into executive session. Seconded by Councilor Barnes
and carried unanimously by those six members present for this meeting with
Mayor Pro Tem Turner Pugh and Councilors R. Gary Allen, Wayne Anthony and Glenn
Davis being absent from this meeting.
*** *** ***
COLLECTION RATE:
Councilor Baker asked about the assumption for a 97% collection rate;
however, there are items that are funded not necessarily based upon collection,
at which time, Finance Director Hodge said for example; the Medical Center
receives 3 mills, which is based on the digest and not collection. She pointed
out that the Economic Development receives .25 mill, which is actually based on
collections.
*** *** ***
POST RETIREMENT BENEFITS:
Councilor Baker recalled the comments with respect to post retirement
benefits that are accruing the liability but not funding. He then asked if we
run the risk of that number getting so large that it shows up on a balance
sheet and affects the city?s credit rating. Finance Director said it is
manageable at this point; however, she would not recommend not setting aside
monies for this year after year into the future.
*** *** ***
EXECUTIVE SESSION:
At 3:55 p.m., the Council adjourned its Budget Review Meeting to go into
executive session to discuss a personnel matter.
At 4:00 p.m., the Budget Review Committee Meeting was reconvened, at which
time, Chairman Henderson announced that the Council did meet in executive
session to discuss personnel matters, but there were no votes taken.
*** *** ***
BUDGET SESSION AGENDA:
Finance Director Hodge provided the following Budget Review Meeting
scheduled and is listed below:
Agenda- May 13, 2008
Overview
Capital
CIP
Agency Appropriations
Non-Operating Funds
She pointed out that we would bring back any questions from today?s
meeting at the next meeting for discussion and any following, we would conclude
on May 20, 2009.
There being no other budget related items to discuss, Councilor McDaniel
moved to adjourn. Seconded by Councilor Hunter and carried unanimously by
those six members present for this meeting with Mayor Pro Tem Turner Pugh and
Councilors R. Gary Allen, Wayne Anthony and Glenn Davis being absent from this
meeting with the time being 4:15 p.m.
________________________
Sandra T. Davis
Deputy Clerk of Council
Council of Columbus, Georgia
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