Minutes
BUDGET REVIEW COMMITTEE
May 8, 2012
Members Present: Chairperson Berry Henderson, Mayor Pro Tem Evelyn Turner Pugh,
Councilors R. Gary Allen, Mike Baker, Jerry ?Pops? Barnes, Glenn Davis, Bruce
Huff, Judy Thomas and Evelyn Woodson. Also present were City Manager Isaiah
Hugley, City Attorney Clifton Fay, Deputy City Managers David Arrington and
Lisa Goodwin, Finance Director Pam Hodge, Human Resources Director Tom Barron
and Clerk of Council Tiny B. Washington. Mayor Tomlinson was present; however,
she was not seated around the table.
Members Absent: Councilor Charles E. McDaniel, Jr. was absent.
Call to Order: Chairman Henderson called the meeting to order at 12:49 p.m. in
the Council Chambers, Plaza Level, of the Government Center.
Chairman Henderson offered some brief remarks regarding the budget session
process and advised this is not an open meeting.
Finance Director Pam Hodge approached the rostrum to provide the
following budget presentation. She called attention to the information that
was distributed around the table, which includes the FY13 Recommended Operating
Budget Overview, FY2013 Recommended Budget, and the General Fund Schedule of
Expenditures. The presented is outlined as follows:
FY2013 RECOMMENDED
BUDGET
MAY 8, 2012
AGENDA
Budget Process/Schedule
Overview
Operating Funds Summary (including Capital/CIP)
General Fund ? Fund Balance
Agency Appropriations
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 2012
Budget Review Sessions
Budget Review Sessions
May 8th ? Overview, Operating Funds Summary, General Fund-Fund Balance,
Agency Appropriations, Non-Operating Funds Summary
May 15th ? Other Local Option Sales Tax, Department Presentations
May 22nd ? Department Presentations
May 29th ? Department Presentations, Add/Delete List
BUDGET SCHEDULE
JUNE 2012
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 Approval
First reading of the Tax Millage
Public Hearing
Second reading of the Tax Millage
Final Tax Rates
JULY 1, 2012
Fiscal Year begins
FY13 OPERATING FUNDS
Revenues $259,978,307
Expenditures $266,881,380
Use of fund balances $3,820,665
? General Fund $6,430,848
? Metra $131,603
? Trade Center $340,622
ASSUMPTIONS
No change in the Millage Rates from FY12
- USD #1 = 17.88 mills
- USD #2 = 11.90 mills
- USD #4 = 11.00 mills
2.00% Increase in the Digest
96% Collection Rate
NO subsidy to Integrated Waste Fund or Civic Center
Subsidies to E911, Golf Courses, Parking Management and Naval Museum
Value of one mill (Operating) $4,353,252
Value of one mill (Debt) $4,814,414
Pay Plan advancement / adjustment included as Pension Reform offset
COLA included of 0.50% for active employees and 0.25% for retirees
effective January 5, 2013
Health Insurance - City increase of $250 ($5,400 to $5,650) and
Employees premium increases in January 2013
$0 included for post employment retiree benefits
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 0.25 0.25 0.25
Debt Service .95 .95 .95
TOTAL 17.88 11.90 11.00
Councilor Baker asked if Finance Director Hodge would explain the increase
on the City?s side from $5400 to $5650 in Health Insurance, which is listed
under the assumptions.
In response to a question of Councilor Baker, Finance Director Hodge
explained that the $5,650 is what?s budgeted for each employee in each
department?s budget. She said out of each pay period, that funding is
transferred to the internal service fund, which is where we pay the claims for
employees, as we are self-funded. She went on to explain that Blue Cross is
the City?s third party administrator. She said we are self-funded, so Blue
Cross processes the claims for us and we reimburse the claims.
FY13 OPERATING BUDGET BY FUND
General - 57.82%
Other LOST - 13.11%
Paving - 5.44%
Medical Center - 5.12%
Integrated Waste - 3.82%
Transportation - 2.24%
Debt Service - 4.49%
Civic Center - 2.37%
Stormwater (Sewer) - 1.91%
E911 - 1.33%
Trade Center - 1.07%
Bull Creek - 0.55%
Economic Development - 0.39%
Oxbow Creek - 0.20%
Parking Management - 0.14%
FY13 REVENUES
General Property - 28.49%
Sales & Use Taxes - 28.49%
Charges for Services - 14.16%
Business & Other Taxes - 8.66%
Franchise Fees - 7.23%
Transfers In - 4.80%
Fines & Forefeitures - 1.82%
Fund Balance - 2.59%
Intergovernmental - 1.22%
Miscellaneous - 1.07%
Licenses & Permits - 0.94%
Investment Income - 0.53%
FY13 EXPENDITURES
Public Safety ? 39.77%
Public Services ? 10.42%
Community Services ? 10.03
Recreation & Culture ? 7.82%
Non-Departmental ? 7.79%
Management Operations ? 6.81%
Criminal Justice ? 5.65%
Debt Service ? 4.65%
Capital Improvement - 3.27%
Mass Transit ? 2.25%
Statutory, Boards & Commission ? 1.54%
FY13 OPERATING BUDGET BY TYPE
FY13 Operating Budget by Expenditure Type:
Personnel Services - 57.37%
Operating - 36.39%
CIP - 2.69%
Capital - 2.68%
2% Pay Adjustment - 0.87%
GENERAL FUND
Revenues $147,873,157
Expenditures $154,304,005
Difference ($ 6,430,848)
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
Personnel $114,807,989 (74.4%)
Operating $ 38,297,301 (23.2)
Includes subsidies
Includes NCR and River Restoration Projects
Capital $ 700,000 (0.5%)
CIP $ 498,715 (0.3%)
Baker Village (Year 7 of 7)
06/30/2011 $33,379,664 80.46 days
FY12 Projection* (1, 020,556) (2.46) days
06/30/2012 $32,177,108 78.00 days
FY13 Commitments (5,502,905) (13.26) days
FY13 Balance Gen Fund (927,943) (2.24) days
06/30/2013 Projection $25,746,260 61.50 days
*Estimated at 103% of Revenues, 98% of Expenditures
STORMWATER (SEWER) FUND
Revenues $ 5,105,143
Expenditures $ 5,105,143
Difference $ 0
Stormwater (Sewer) Fund - accounts for activities that are restricted
for stormwater and drainage. Primarily funded from property taxes.
Millage increased to 1.24 in USD#1, 0.20 in USD#2
STORMWATER (SEWER) FUND
Personnel $3,105,730 (60.9%)
Operating $1,058,941 (20.7%)
Capital $ 397,954 ( 7.8%)
CIP $ 542,518 (10.6%)
? Pipe Rehab/Drainage Studies
PAVING FUND
Revenues $ 14,513,888
Expenditures $ 14,513,888
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
Personnel $8,017,708 (55.3%)
Operating $4,528,194 (31.2%)
Capital $ 942,340 ( 6.5%)
CIP $1,025,646 (7.0%)
? Resurfacing Program, Road Improvements, Sidewalks, etc.
MEDICAL CENTER FUND
3 mills
Proposed budget $13,659,756
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
INTEGRATED WASTE
Revenues $10,190,000
Expenditures $10,190,000
Difference $ 0
Integrated Waste ? accounts for refuse and disposal services.
Primarily funded from user charges.
Residential Fee remains at $14/month
Non-residential rate increases included
Reduction of landfill hours
Personnel $5,234,430 (51.4%)
Operating $4,955,570 (48.6%)
Capital $ 0 ( 0.0%)
? Lease/Purchase program funding included in the Debt Service Fund
CIP $ 0 ( 0.0%)
Landfill Closure and Post Closure
E911
Revenues $3,558,592
Expenditures $3,558,352
Difference $ 0
E911 ? accounts for telephone subscriber surcharges and collection for
emergency dispatch. Primarily funded from landlines and wireless phone
charges.
Other Local Option Sales Tax Fund
Subsidy $858,592
DEBT SERVICE
Revenues $ 11,976,222
Expenditures $ 11,976,222
Difference $ 0
Debt Service Fund-accounts for accumulation and disbursement of
principle and interest payment .
Millage rate remained the same at 0.95 mills
Lease/Purchase Program included
METRA
Revenues $ 5,858,949
Expenditures $ 5,990,552
Difference ($131,603)
METRA ? accounts for the operations of the public transportation
system. Primarily funded from property taxes, federal grants and service
charges.
Capital $ 514,700
PARKING MANAGEMENT
Revenues $ 374,024
Expenditures $ 374,024
Difference $0
Parking ? accounts for the operation of public parking and parking
garages. Primarily funded from parking fees.
General Fund Subsidy $164,524
TRADE CENTER
Revenues $ 2,525,650
Expenditures $ 2,866,272
Difference $ 0
Trade Center ? accounts for the operations of the facility. Primarily
funded from event proceeds and beer taxes ($768K), and Hotel/Motel Tax ($630k).
Capital $ 18,400
*Note: Utilizing Trade Center - Available Fund Balance
BULL CREEK
OXBOW CREEK
Bull Creek - $1,455,946
General Fund Subsidy at $75,000
Bull Creek - accounts for the operation of the Bull Creek Golf Course
Oxbow Creek - $525,200
General Fund Subsidy $275,000
Oxbow Creek - accounts for the operation of the Oxbow Creek Golf Course
CIVIC CENTER
Revenues $ 6,317,000
Expenditures $ 6,317,000
Difference $0
Civic Center ? accounts for the operations of the facility. Primarily
funded from hotel/motel taxes ($1.26 million) and events proceeds.
Capital - $ 31,004
ECONOMIC DEVELOPMENT
Budget $ 1,044,780
Economic Development ? accounts for 0.25 mills used for attracting
quality companies, broadening the tax base, job creation and retention
AGENCY APPROPRIATIONS
1,810,127
FY12 FY13
Health Dept Services $813,475 $813,475
Health Dept Rent $304,381 $306,368
Dept of Family & Children Srv $90,000 $80,000
Keep Columbus Beautiful $72,706 $72,706
Uptown Columbus $72,900 $72,900
FY12 FY13
Airport Commission $40,000 $40,000
River Valley Regional Comm $190,414 $189,855
New Horizons $234,823 $234,823
Literacy Alliance $14,580 $0
NAVAL MUSEUM
Personal Expenses $267,491
Revenue $ 67,491
Net Subsidy $200,000
- Naval Museum responsible for all operating expenses
- FY99 ? FY03 = $78,840 subsidy
- FY04 ? FY07 = $103,840 subsidy
- FY08 ? FY11 = $300,000 subsidy
- FY12 = $250,000 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
Urban Development Action Grant $75,000
Economic Development Program $15,000
HOME $747,379
HUD Section 108 $891,450
Multi-Governmental $3,090,980
Hotel/Motel $5,040,000
Police Forfeiture $100,000
County Drug Abuse Treatment (DATE) $68,000
Metro Drug Task Force $200,000
County Jail/Penalty Assessment $3,250,000
Sheriff Forfeiture $200,000
Special Projects (CIP) $2,066,879
1999 Sales Tax Proceeds $40,000
Columbus Bldg. Authority Lease Revenue Bonds Series 2003A
$1,300,000
Columbus Bldg. Authority Lease Revenue Bonds Series 2003B
$4,000,000
Family, Youth and Coalition $44,000
Columbus Bldg. Authority Lease Revenue Bonds Series 1999C $450,000
Columbus Bldg. Authority Lease Revenue Bonds Series 2010A
$5,500,000
Columbus Bldg. Authority Lease Revenue Bonds Series 2010B
$60,000,000
Columbus Bldg. Authority Lease Revenue Bonds Series 2010C
$1,700,000
Mayor Pro Tem Turner Pugh advised that Council had received a letter from
the Chairperson of the Keep Columbus Beautiful Commission and asked Finance
Director Hodge had she received a copy of the letter. Finance Director Hodge
said she had not received a copy of the letter. Mayor Pro Tem Pugh then asked
that the request be placed on the add list.
DEPARTMENT PRESENTATIONS
? Recorder?s Court
Judge Cielinski came forward and distributed a handout to each Council
member in regards to a technology fee. (A copy of this document was not filed
for the record.) He said this is an opinion that he obtained from the
Administrative Office of the Courts. He said although he cannot do this by
administrative order, the home rule provision could provide the power to adopt
a technology fee. He said depending on what the fee is, this could possibly
self-support Recorder?s Court.
Judge Cielinski indicated that he had sent a letter to Council on March
29, 2012 in regards to pay increase. (A copy of this document was not filed for
the record.)
He pointed out the fact that Recorder?s Court had not received a raise since
2006. He said he projects that the Court will have close to 6.9 million cases
this year. He went on to say that there has been 100 new Police Officers put
on the streets along with the Night Hawks (Georgia State Troopers) coming in.
He said as a result of more officers being on the street, there has been an
increase in the workload and consequently some employees have been required to
work longer hours. He said he is requesting a pay raise of some sort for
Recorder?s Court employees.
Judge Cielinski advised that there is still conversation regarding the
online payment system. He said he would like to move ahead with it, to include
the e-ticketing process as well.
Chairman Henderson advised Judge Cielinski to get with the City Manager?s
Office before the next year?s legislative agenda is created.
City Manager Hugley indicated that Judge Cielinski had previously come
before the Council to talk about the online payment system. He advised that he
(Hugley) convened a committee that involved the Police Chief, Major Swiney and
Judge Cielinski and his representative. He said he also invited the Marshal,
the Sheriff, the Chief of Public Safety at Columbus State University and the
Airport. He said we all convened in the same room on an initial meeting, and
we all agreed that we would invite the company Courtware at Judge Cielinski
recommendation. He said Courtware came down and gave a demonstration, and we
were all impressed. He said out of that larger group, we went around the table
and everyone was on board in terms of buying the hardware. He advised that the
software would come free of charge. He said in that meeting he explained to
them that he felt like he could find the $200,000 that was projected by IT and
Finance. He said he also spoke with the Mayor in regards to the $200,000. He
said we left the room with the understanding that this was going in the budget.
He advised that it is in the budget and if approved we will do an RFP and get
the right vendor in. He said we will buy the hardware and it will be in the
Sheriff?s, Police, Marshal?s, Columbus State University and the Airport?s
vehicles.
After several minutes of discussion regarding this matter, Chairman
Henderson said the way that job has grown, he would love to have a more robust
revenue side on the budget. He said the job that the Judges do deserves a
greater compensation. He said the job has grown simply because of the increase
in the number of cases. He said we are very grateful for the job that the
Judges do in Recorder?s Court.
Finance Department-Citi Serve
Finance Director Pam Hodge came forward and advised that there was
funding placed in the budget for $100,000 for the Citi Serve project. She said
Finance Director Britt Hayes would be giving a brief update on Citi Serve.
Assistant Finance Director Britt Hayes came forward and said we have been
talking for some time about the possibility of implementing a database
performance system here in Columbus Georgia. He said we formed a committee to
try to see about the feasibility of implementing that kind of system. He said
on November 29, 2011 he came forward at the recommendation of the Committee.
He said we thought there was merit in moving forward in implementing a Citi
Serve system here. He said on January 10, 2012 the Mayor made a formal
presentation to Council including the specification for the Citi Serve RFP. He
said on January 18, 2012 we advertised the RFP and said he has also included a
copy behind the budget presentation that was handed out earlier. He said we
had two pre-proposal teleconferences, the first of which was on February 8th.
He said there were 24 firms that were represented on that particular conference
call. He said the second one was held on February 17th and there were nine
firms that were represented on that teleconference. He advised that on March
2nd the Purchasing Division received 17 proposals from different consulting
firms. He said we are in the process of narrowing that list of 17 proposals by
the voting members of the committee; the committee will meet again in the next
couple of weeks to review cost proposals. He said when and if Council elects to
move forward with a consultant, we are hopeful Columbus will be able to learn
from experience and hopeful become more efficient and affective.
After several minutes of conversation concerning this matter, Chairman
Henderson advised that the next Budget Review Committee Meeting is scheduled
for next Tuesday, May 15, 2012 at 9:00 A.M.
*** *** ***
With there being no other budget related items to discuss, this meeting
adjourned with the time being 2:23 p.m.
________________________
Tiny B. Washington
Clerk of Council
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