Minutes
BUDGET REVIEW COMMITTEE
May 14, 2013
Members Present: Chairperson Berry Henderson, Mayor Pro Tem Evelyn Turner Pugh
and Councilors Mike Baker, Charles E. McDaniel, Jr. and Judy W. Thomas.
Councilor Bruce Huff arrived at 2:13 p.m. and Councilor Glenn Davis arrived at
2:38 p.m. 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.
Clerk of Council Tiny Washington was present but was seated in the audience.
Members Absent: Councilors R. Gary Allen, Jerry ?Pops? Barnes and Evelyn
Woodson were absent.
Call to Order: Chairperson Henderson called the meeting to order at 2:12 p.m.
in the Council Chambers, Plaza Level, of the Government Center.
The following documents were distributed around the Council table: FY14
Recommended Budget, Title Ad Valorem Tax (TAVT), Responses to Questions and
Requests made May 7, 2013, Booker T. Washington Neighborhood Development Plan,
FY14 CIP Budget- Recommended Allocation of Project Savings, Add/Delete List-
General Fund, Recommended Budget Schedule for Council Meetings - Department
Presentation.
Finance Director Pam Hodge provided an overview of the FY14 Budget Review
Session Agenda for this meeting and is listed as part of the following power
point presentation:
FY2014 RECOMMENDED BUDGET
May 14, 2013
AGENDA
l Overview
l Other Local Option Sales Tax (OLOST)
l E911 Funding
l Transportation Special Purpose Local Option Sales Tax (TSPLOST)
l Department Presentations
FY14 OPERATING FUNDS
? Revenues $256,538,967
? Expenditures $262,994,215
? Use of fund balances $ 6,455,248
l General Fund $6,274,435
l METRA $ 39,972
l Trade Center $ 140,841
ASSUMPTIONS
? No change in the Millage Rates from FY13
? USD #1 = 17.88 mills
? USD #2 = 11.90 mills
? USD #4 = 11.00 mills
? 3.00% 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) $4,503,199
? Value of one mill (Debt) $4,944,536
? 2% Pay Plan advancement / adjustment included as Pension Reform Offset
? COLA included of 0.50% for active employees and 0.25% for retirees effective
January 4, 2014
? Health Insurance ? City remains the same at $5,650 and Employees premium will
increase in FY14, except for the Health and Wellness Center Plan
? General Fund ? Departments budgeted at 98.5% of FY13 Adopted Budget
Finance Director Hodge emphasized this is a 1.5% reduction of what the
departments were budgeted for in FY13. Part of the FY13 Budget did not include
the 2% contribution that was made for the employees, that was budgeted
separately; therefore, some departments would maintain that their department is
receiving a 3.5% reduction, which is true, its due to the 2% pension
contribution that?s included in FY13 but was budgeted in non-categorical and
not in the departments? budget. Therefore, it is a 1.5% over their adopted and
their revised budget would include that 2% pension contribution; it is not a
1.5% off their revised budget but a 1.5% off their adopted budget.
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 0.41 0.41 0.41
Debt Service 0.79 0.79 0.79
TOTAL 17.88 11.90 11.00
Chairperson Henderson asked when was the 0.25 mills made a stand alone
millage increase, because he believed the 0.25 mills was just a reallocation
and a part of the 9 mill cap. Finance Director Hodge recalled that the 0.25
mills has not been a part of the 9 mill cap, but she would review this
information and determine when that was started.
FY14 OPERATING BUDGET BY FUND
? General - 57.4%
? Other LOST - 12.5%
? Paving - 5.7%
? Medical Center - 5.4%
? Integrated Waste - 3.9%
? Transportation - 2.4%
? Debt Service - 4.3%
? Civic Center - 2.2%
? Stormwater (Sewer) - 2.0%
? E911 - 1.5%
? Trade Center - 1.0%
? Bull Creek - 0.6%
? Economic Development - 0.7%
? Oxbow Creek - 0.2%
? Parking Management - 0.2%
FY14 REVENUES
? General Property - 29.8%
? Sales & Use Taxes - 27.7%
? Charges for Services - 14.1%
? Business & Other Taxes - 9.1%
? Franchise Fees - 6.8%
? Transfers In - 4.4%
? Fines & Forefeitures - 1.9%
? Fund Balance - 2.5%
? Intergovernmental - 1.3%
? Miscellaneous - 1.1%
? Licenses & Permits - 0.8%
? Investment Income - 0.5%
FY14 EXPENDITURES
? Public Safety - 38.6%
? Community Services ? 10.3%
? Criminal Justice - 5.5%
? Statutory, Boards & Commissions - 1.4%
? Capital Improvements - 2.4%
? Non-Departmental ? 9.4%
? Debt Service - 4.5%
? Mass Transit - 2.4%
? Management Operations - 6.8%
? Public Works - 10.6%
? Recreation & Culture - 8.1%
FY14 OPERATING BUDGET BY TYPE
? Personnel Services - 57.8%
? Operating - 37.1%
? Capital - 1.7%
? COLA / Pay Adjustment - 1.0%
? CIP - 2.4%
OLOST
? Revenues $ 33,000,000
? Expenditures $ 33,000,000
? Difference $ 0
? 2009 Other LOST Fund ? accounts for Other Local Option Sales Tax (OLOST), 70%
allocated to Public Safety, 30% allocated to Infrastructure.
OLOST ? PUBLIC SAFETY
? Personnel $ 13,822,653 (59.8%)
? Operating $ 2,181,439 ( 9.5%)
? Capital $ 0 ( 0%)
? Debt $ 120,795 (0.5%)
? Reserve $ 5,792,142 (25.1%)
? Transfer $ 1,182,971 ( 5.1%)
$23,100,000
OLOST ? PUBLIC SAFETY PERSONNEL
? **CURRENT PERSONNEL**
o Police Department
? 100 Police Officers
? 9 E911 Technicians
o Solicitor General
? 2 Asst. Solicitor Generals
? 1 Deputy Clerk
o Muscogee County Prison
? 2 Correctional Officers
? 1 Sergeant
o Fire Department
? 6 Firefighters
o District Attorney
? 2 Asst. District Attorney
o Muscogee Court Clerk
? 1 Sr Deputy Clerk
? 1 Deputy Clerk II
o Marshal
? 5 Deputy Officers
o Sheriff
? 12 Deputy Officers
? 2 Sergeants
? 8 Correctional Officers
? 2 Medical Technicians
? 1 Lieutenant
o Recorder?s Court
? 2 Judicial Admin Technicians
o Crime Prevention / Intervention
? Director
o Probate Court
? 1 Deputy Clerk
o $3,060 Annual Supplement for sworn Public Safety officers in Public Safety
Departments
OLOST ? PUBLIC SAFETY OPERATING
? Crime Prevention Program Grants $750,000
? Crime Prevention Administration $ 12,000
? Police Department $460,000
? Fire Department $100,000
? State Court Solicitor $ 14,000
? Public Defender $128,712 (includes 2 contract public defender)
? Cost Allocation/Risk Mgmt/Worker?s Comp $716,361
? Debt Service $120,795
? Reserve $5,792,142
o $1,500,000 Future Additional Jail Reserve
o $2,000,000 E911 Replacement System
o $2,292,142 Capital Reserve
o Transfer to E911 Fund $1,182,971
Councilor Henderson asked if any consideration had been given to adjust
the pay of the Recorder?s Court Judges, at which time, Mayor Tomlinson advised
that it is a matter of finding the funding, which is a challenge this year.
She recalled there was a proposed request for a restructure of the office that
would allow a cost saving; however, that request was pulled.
Finance Director Hodge said the summary of E911 Funding as listed below is
presented as a result of a request made at the May 7, 2013 Budget Review
Session.
SUMMARY OF E911 FUNDING
? E911 Revenues
o Landlines, Wireless, Prepaid Wireless $2,765,004
o OLOST $1,574,518
o Total $4,339,522
? E911 Expenditures
o Personnel (63 Positions) $2,978,475
o Operations $1,361,047
o TOTAL $4,339,522
OLOST - INFRASTRUCTURE
? 30% Infrastructure $9,900,000
o Roads/Bridges $2,642,601
o Flood Abatement / Stormwater $ 750,000
o Technology Improvements $ 250,000
o Facility Improvements $ 750,000
o Debt Service $5,403,045
o Cost Allocation $ 28,774
o Engineering ? 1 Project Engineer $75,580
TSPLOST
o $ 2,500,000 ? Discretionary Funds
o $10,612,080 ? Columbus Riverwalk
o $23,771,059 ? Intercity Express Bus Park ?n-Ride
o $ 3,714,228 ? South Lumpkin Multi-Use Facility
o $21,224,160 ? US27/ Custer Road Interchange Reconstruction
o $61,821,527 ? TOTAL
*** *** ***
Finance Director Hodge called attention to the handout ?FY2014 CIP Budget
? Recommended Allocation of Project Savings?. She explained there was a
question regarding the funding source for all of the Capital Improvement
Projects and are outlined in this document.
*** *** ***
Finance Director Hodge then provided the following power point
presentation with regards to the title ad valorem tax (TAVT) and is listed as
follows:
TITLE AD VALOREM TAX (TAVT)
? Established by House Bill 386
? Effective March 1, 2013
? Replaces the annual Ad Valorem ?Birthday Tax?
What happened on March 1, 2013?
? What changed when motor vehicles titled on or after March 1, 2013?
o Exempt from sales and use tax
o Not subject to ad valorem tax
o Title fee & registration fee still applies
o Subject to a state title tax & local title tax
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NOTE: Councilor Davis arrived at 2:38 p.m.
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TAVT
? State of Georgia projects that the difference in the amount of sales tax and
annual ad valorem tax will be recovered by:
o ?New? title ad valorem tax collected on casual sales
? Target amounts have been set with 2012 base year
Tax Year Tax Rate State % Local %
2013 6.5% 57% 43%
2014 6,75% 55% 45%
2015 7% 55% 45%
2016* 7% 53.5% 46.5%
2017* 7% 44% 56%
2018* 7% 40% 60%
2019* 7% 36% 64%
2020* 7% 34% 66%
2021* 7% 30% 70%
2022-forward* 7% 28% 72%
TAVT
? Local TAVT for 2013 = 43%
? Distributed between the county, local municipalities, Board of Educations
? Muscogee County
o 2/3 = CCG
o 1/3 = MCSD
TAVT
? FY2014 Recommended Budget Approach
o Guarantee from the State of no loss of revenue
o Reduced Motor Vehicle portion of the digest by 5%
o Showed offset as TAVT
o Budgeted LOST at 96.5% of FY12 collections (current trend)
o Until sufficient history is accumulated, $0 Net Impact between Motor Vehicle
Ad Valorem Tax, TAVT, and LOST for FY14
? Target amounts have been set with 2012 base year
Referring back to comments regarding the .25 mills for the Development
Authority, or the 0.41 mills that is currently listed, City Attorney Fay
explained that it is outside of the 9 mill cap pursuant to the State Law that
allows a city to give up to 3 mills in assistance to the Development Authority.
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DEPARTMENT PRESENTATIONS:
Finance Director Hodge advised that Judge Steven Smith would be the first
presenter instead of Mr. Len Williams with the Housing Authority; however, Mr.
Williams would come before the committee next. She then read from the list of
department heads that would be appearing to speak before the committee.
MUNICIPAL COURT:
Judge Steven Smith came forward to outline the impact of the 1.5% budget
cut and is listed as follows:
? The 1.5% budget cut equates to $24,000
? Entire operating cost does not equal $24,000
? The only way to comply to the budget cut is to delete a position
He then explained the challenges of losing a position with the increase in
court cases. He pointed out that there are four Clerks, a part-time Associate
Magistrate and the Judge. In response to a question of Councilor Baker, Judge
Smith mentioned that the court is a revenue generator in the projected amount
of $120,000 for this year.
Finance Director Hodge responded to a question of Mayor Pro Tem Turner
Pugh by stating that the court fees for Municipal Court were increased as part
of the General Fund revenue.
After making some comments, Councilor Thomas asked to put the $24,000 on
the Add list. Councilor Huff pointed out that there are other department heads
that would be coming forward and there may be others losing employees. Mayor
Tomlinson added that there are many departments reducing positions, some are
not currently filled but will be deleted; however, there are other departments
that may opt for furloughs to meet budget. City Manager Hugley further
expounded that there are departments with employees that will be laid off and
not be on the payroll come July 1st.
Councilor Thomas requested to know which departments are laying employees
off, how many employees, furloughs, etc. regardless of if the department is
coming before the Budget Review Committee or not. She expressed concerns that
departments are able to lay off employees without coming to Council.
*** *** ***
HOUSING AUTHORITY:
Mr. Len Williams- Housing Authority Director, approached the rostrum as a
document was being distributed around the table. (A copy of this document was
filed for the record.) He advised that he is present to discuss the proposed
revitalization of Booker T. Washington. Immediately, City Manager Hugley
explained that the request to be made by Mr. Williams is for not for FY14 but
for the FY15 budget; therefore, it is a future budget matter.
Mr. Williams explained the design option is planned to be 100 units
off-site on Ft. Benning Road, 3-story building for seniors 55 years and older.
It would be located at the current site of the Chapman Homes with those
residents already relocated to the cottages at Arbor Pointe. He said we would
then come back with Phase II at the Booker T. Washington site, which is the
northern part of the site and the site nearest Victory Drive and Veterans
Parkway would be left for future development. He pointed out that the only
change is in the off-site location and that we are able to complete it for $.5
million less. He then requested from the city to receive $1 million for the
first phase and $1.5 million for the second phase beginning year 2015. He
proposed $400,000 a year for the first five years and $500,000 on the last
year, which would be year 2019.
Mayor Pro Tem Turner Pugh recalled that the city would receive a part of
the funding from the sell of the commercial property. Mr. Williams agreed with
the statement, then proceeded to explain that the Housing Authority would be
contributing $7.77 million and the city would be contributing $2.5 million,
which works out to 24% for the city and 76% for the Housing Authority whether
that would be a sell or a ground lease, we would share in that proportion.
*** *** ***
ENGINEERING DEPARMENT:
Ms. Donna Newman- Engineering Department Director, came forward to
highlight the impact of the 1.5% budget reduction and is provided as follows:
? Total 1.5% reduction- $125,432
o Cut in radio budget- $78,000
o Cut one vacant position
o Cut $35,584 out of the service contract
The impact would effect response time for Motorola if there is a major
problem at one of the tower sites, create delays in getting public safety
vehicles back on the street due to the four employee crew being able to
maintain and install sirens and light bars, radio repairs and response times
would be slower.
Councilor Davis asked about the traffic control center, at which time,
Engineering Director Newman explained that it is beginning to come on line;
there are three cameras that are up but are not fully functioning. The
part-time position that was granted for that was taken out of the budget;
therefore, this function would have to be done with the existing budget with
the existing staff. The position was never filled because the center never was
up and running.
Chairperson Henderson asked Finance Director Hodge to check into the
impact to the budget if the part-time employee for the Traffic Control Center
was brought on line in January.
*** *** ***
CLERK OF COUNCIL / COUNCIL:
Ms. Tiny Washington- Clerk of Council, approached the rostrum to outline
the reductions made to the Clerk of Council and Council?s budgets and are
provided below:
? Line item reductions
o Office Supplies
o Records and Documents
o Travel, Schools and Conferences
o Education and Training
Total 1.5% reduction equates to $8,400. Clerk of Council Washington then
offered the following recommendations:
? Restore the Office Supplies line item in the amount of $1,182 to allow for
the ordering of Resolution, Ordinance and Minute binders to store the original
documents
? Restore the Travel, Schools and Conference in the amount of $1,500 to allow
the Clerk of Council to maintain the certifications by attending training
classes
COUNCIL
Clerk of Council Washington continued by outlining the reductions to the
Council?s budget and are provided as follows:
? Total 1.5% reduction equates to $9,400
o Travel budget deleted in its entirety
o Reduction in membership dues by discontinuing one the memberships
Chairperson Henderson suggested putting on the delete list for the
Council?s budget to cut for one year all of the funding for Travel, Schools and
Conferences, as well as, the Education and Training. Also, delete the
membership dues for the National League of Cities and add $2,682 back into the
Clerk?s budget with $1,182 for Office Supplies and $1,500 for Travel to retain
certification.
*** *** ***
FINANCE DEPARTMENT:
Ms. Pamela Hodge- Finance Department Director, approached the rostrum to
briefly outline the cuts made to the Finance Department?s budget and are
provided below:
? Reduction equated to $100,603
o Operating Expenses reduction of $26,923
o Reduced almost all of travel expenses
o Part-time vacant position not funded
o Revenue Division Manager unfunded (filled position)
*** *** ***
COMMUNITY REINVESTMENT:
Ms. Amy Carbajal- Community Reinvestment Director, came forward to provide
a power point presentation to outline the budget and to highlight the impact of
the reduction. (A copy of this document was not filed for the record.)
? 2012 / 2013 CDBG ALLOCATION
o Total ? 1,408,537
? Administration ? 281,707
? Salary & Benefits - $260,913
? Cost Allocation - $28,878
Deficit of $8,000
? 2012 / 2013 HOME ALLOCATION
o Total ? 748,496
? Administration ? (Capped at 10%)
? Salary & Benefits - $46,770
? Cost Allocation - $19,501
Balance of $8,500
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NOTE: Councilor McDaniel left the meeting at approximately 3:45 p.m.
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? REAL ESTATE ? GENERAL FUND
o 2014 Budget (2013 minus 1.5% - $100,783)
? Salary & Benefits - $48,495
o 2013 Expenses to Date
? Legal - $11,509
? Appraisals - $2,725
? Contractual Services - $1,200
? Surveys - $6,300
? Demo, acquisition, postage - $3,358
Community Reinvestment Director Carbajal then asked for additional funds
in the Real Estate budget to assist with the offset of operating costs for CDBG
and HOME. She shared that if we get any additional cuts from HUD; then, she
would be looking to cut another position in CDBG.
She pointed out that if we have to cut an employee; then, we would have to
cut a program. Therefore, we would be looking to cut the Homeowner
Rehabilitation Program. She then explained the reasons that this program would
be slated to cut. Mayor Pro Tem Turner Pugh expressed her concerns with
eliminating this program.
When asked by Councilor Henderson for the dollar amount requested,
Community Reinvestment Director Carbajal replied $40,000.
Mayor Pro Tem Turner Pugh requested to place the $40,000 on the Add list.
Councilor Baker maintained that if this would be permanent funding for the
payroll position out of the General Fund; then, where this permanent funding
source would come from needs to be taken into consideration.
*** *** ***
CITY MANAGER?S OFFICE:
City Manager Isaiah Hugley, approached the rostrum to outline the impact
of the 1.5% reduction and is provided as follows:
? The 1.5% reduction equates $35,272
? Request for full-time position for CCG-TV removed
? Personnel Services reduction - $16,122 (Reduction of one temporary part-time
employee in CCG-TV)
? Operations- 19,150
City Manager Hugley explained that with the reduction of the one temporary
part-time employee in CCG-TV, some services would be eliminated and are listed
as follows:
? Discontinue three in-house TV Programs- Public Education Report, Public
Health Report and Latino in Columbus Spanish Program
? No longer provide video production services to CCG departments
? Discontinue videotaping some townhall meetings, departmental meetings and
events after 5:00 p.m.
He then expressed concerns in that there is no support for the current
CCG-TV Manager and one temporary part-time position has been eliminated;
therefore, the level of service the citizens have become accustomed to may not
be available.
He said what he would like, but cannot ask for, is to convert the
temporary part-time position to a full-time position; the current CCG-TV
Manager is not able at this time to take a real vacation.
When asked about the cost, City Manager Hugley said it would take
approximately $40,000. After conferring with Finance Director Hodge, City
Manager Hugley made a correction in that $25,000 is needed to convert the
temporary part-time position to a full-time position.
Mayor Pro Tem Turner Pugh then asked to put the $25,000 on the Add list.
MAYOR?S OFFICE:
Mayor Teresa Tomlinson, also appeared before the Budget Review Committee
to outline how the 1.5% reduction would impact the Mayor?s budget and is
provided as follows:
? Travel account is not funded
? Cutting Sister City membership
? Loss of Grant Subsidies from foundations for certain memberships (U. S
Conference of Mayor?s, COPS Program, etc.)
? Cutting operations- $9,866
? Furloughs of $1,740
She mentioned the City Attorney was asked to research to find if the Mayor
could be furloughed; however, by virtue of State Law and the Constitution, the
Mayor cannot be furloughed. In response to a question of Councilor Thomas,
Finance Director Hodge determined that it would be approximately eight furlough
days depending on the position.
*** *** ***
NEXT BUDGET MEETING:
Finance Director Hodge announced that the next Budget Review Committee
Meeting would be on Tuesday, May 21, 2013 at 9:00 a.m. There are departmental
presentations scheduled for that meeting.
Chairperson Henderson advised that he would be out-of-town on May 21,
2013; therefore, Councilor Baker has agreed to chair the meeting on that day.
In response to a question of Chairperson Henderson, Finance Director Hodge
explained that a lot of departments may have unfunded a position but not
eliminated the position; therefore, it would show up on the personnel sheet as
an authorized position. Chairperson Henderson then asked that Finance Director
Hodge update the Personnel Sheet that was provided. (A copy of the referenced
document was not filed for the record.) He also asked that the Personnel Sheet
include any personnel changes; for example, inter-departmental transfers, etc.
*** *** ***
There being no other budget related items to discuss, Chairman Henderson
announced that the meeting is adjourned with those six members present with
Councilors McDaniel having left the meeting and Councilors Allen, Barnes and
Woodson being absent for this meeting with the time being 4:20 p.m.
________________________
Sandra T. Davis
Deputy Clerk of Council
Council of Columbus, Georgia
Attachments
No attachments for this document.