Minutes
BUDGET REVIEW COMMITTEE
May 5, 2009
Members Present: Chairperson Berry Henderson and Mayor Pro Tem Evelyn Turner
Pugh (arrived at 3:05 a.m.) and Councilors R. Gary Allen (arrived at 3:12
p.m.), Wayne Anthony (arrived at 3:05 a.m.), Mike Baker, Jerry ?Pops? Barnes
and Glenn Davis (arrived at 3:07 p.m.), Julius Hunter, Jr. (arrived at 3:33
p.m.) and Charles E. McDaniel, Jr. 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,
Clerk of Council Tiny B. Washington and Deputy Clerk of Council Sandra Davis.
Mayor Wetherington was present; however, he was not seated around the table.
Members Absent: Councilor Evelyn Woodson was absent.
Call to Order: Chairman Henderson called the meeting to order at 3:02 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 for the public to make
comments; however, there is an opportunity during the budget first reading
ordinance. He said any changes could be made by Council through the add/delete
list that would be voted on at the final budget session.
City Manager Hugley shared some of the challenges involved with this
budget process. He said the initial requests totaled $42 million more than
what we were able to project in revenue; however, the Mayor?s budget is a
balanced budget as presented. He then called on Finance Director Pam Hodge to
provide the initial overview of the budget.
Finance Director Pam approached the rostrum to provide the following
budget presentation. She called attention to the information that was
distributed around the table, which includes the FY10 Recommended Budget
Overview, FY2010 Recommended Budget, and the General Fund Schedule of
Expenditures. The presented is outlined as follows:
FY2010 RECOMMENDED
BUDGET
MAY 5, 2009
AGENDA
Budget Process/Schedule
Overview
Fund Summary (including Capital/CIP)
Personnel
Agency Appropriations
Department Presentations
Tax Commissioner (3:45 p.m.)
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 2009
Budget Review Sessions
May 5th ? Overview, Fund Summaries, Personnel, Agency Appropriations,
Department Presentations
May 12th ?2009 Other Local Option Sales Tax, 1999 SPLOST, Non-Operating,
Department Presentations, Add/Delete
May 19th & 21st? Hold, if needed
BUDGET SCHEDULE
JUNE 2009
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, 2009
Fiscal Year begins
FY10 OPERATING FUNDS
Revenues $230,335,736
Expenditures $234,156,401
Use of fund balances $ 3,820,665
General Fund $3,702,480
Parking Management $ 118,185
ASSUMPTIONS
No millage increase since FY05 for USD #1
Slight decrease in FY10 for USD #2 and #4
9 mill cap in USD #1
1.00% Growth in the Digest
96% Collection Rate
E911 Subsidy $616,413
Oxbow Creek Subsidy $150,000 (add?l $194,604 from General Fund balance)
Bull Creek Subsidy $288,399
Value of one mill (Operating) $4,142,014
Value of one mill (Debt) $4,611,776
Pay Plan advancement / adjustment or retirees increases not included
Health Insurance
City and Employees Contributions remain the same as 2009
$1,400,000 increase in Pension contribution
$0 included for post employment retiree benefits
Chairman Henderson explained that with regards to the pay plan adjustments,
when the pay plan reached the 100% mark, there were strong opinions voiced to
make pay plan adjustments every year and keeping up with the market. He said
that Finance Director Hodge was asked to contact Dr. Condry at the University
of Georgia to determine the gap for next year. He said that according to Dr.
Condry, the market would bare around 1% worth of increase; therefore, we would
not have a significant hill to climb for next year, when we try to make that
ground up.
MILLAGE SUMMARY
USD #1 USD#2 USD#4
Total Gen and Urban 8.18 6.72 6.55
METRA 0.82 0.82 0.82
Total subject to cap 9.00 7.54 7.37
Stormwater (Sewer) 1.22 0.21 N/A
Paving 3.36 0.91 N/A
Medical Center 3.00 3.00 3.00
Economic Development 0.25 0.25 0.25
Debt Service 1.08 1.08 1.08
TOTAL 17.91 12.99 11.70
In response to a question by Councilor Baker, Finance Director Hodge
explained that the millage was reallocated administratively as a recommendation
through the Mayor?s budget to increase the amount of funding into the
Stormwater Sewer Fund and that increase was done without an overall increase in
the millage rate; therefore, it was reallocated from a debt service millage
rate to the Stormwater millage rate.
FY10 OPERATING BUDGET BY FUND
General - 62.14%
LOST - 8.97%
Paving - 5.85%
Medical Center - 5.31%
Integrated Waste - 4.10%
Transportation - 2.64%
Debt Service - 2.60%
Civic Center - 2.14%
Stormwater (Sewer) - 2.05%
E911 - 1.53%
Trade Center - 1.17%
Bull Creek - 0.70%
Economic Development - 0.42%
Oxbow Creek - 0.24%
Parking Management - 0.14%
FY10 REVENUES
General Property - 31.32%
Sales & Use Taxes - 25.10%
Charges for Services - 14.94%
Business & Other Taxes - 10.50%
Franchise Fees - 7.43%
Transfers In - 3.45%
Fines & Forefeitures - 1.65%
Fund Balance - 1.63%
Intergovernmental - 1.32%
Miscellaneous - 1.02%
Licenses & Permits - 0.91%
Investment Income - 0.73%
FY10 EXPENDITURES
FY10 OPERATING BUDGET BY TYPE
FY10 Operating Budget by Expenditure Type:
Personnel Services - 62.60%
Operating - 30.85%
CIP - 3.83%
Capital - 2.73%
Pay Plan - 0.00%
Chairman Henderson reminded everyone that the monies expended to the
Medical Center is an obligation of the city by law to provide medical care for
the indigent members of our community; therefore, by contract with the Medical
Center, we have committed 3 mills.
GENERAL FUND
Revenues $141,803,993
Expenditures $145,506,473
Difference ($ 3,702,480)
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.
Finance Director Hodge explained that we have used two one-time revenue
sources. She said that we typically use monies each year out of the Penalties
and Assessment Fund, and $2 million onetime revenue of interest that has been
earned on the General Fund CIP Projects. She advised that each year when we do
General Fund CIP, it?s transferred to a Project Fund that has earned interest.
She added that we would transfer $2 million back into the General Fund of
interest that is earned on General Fund Projects. She advised that we have
done this before; the last time the interest was utilized in this manner was
FY05 and that was for $1,555,000 to balance the budget without any additional
cuts.
She commented on the status of the fund balance. She advised that we were
at 93.66 days after the commitments that were made in the FY09 budget. She
explained that with the use of $3,702,480, which equates to approximately 9
days, this means that we should not fall below 85 days in fund balance based on
this budget. She recalled that we reduced most operating budgets of each
department by 2.5%; however, there were some key areas or departments that did
not see that 2.5% reduction.
GENERAL FUND
Personnel $111,218,860 (76.5%)
4 additional, 2 temporaries, 2 reclassifications, and 1 pay adjustment
Operating $ 33,788,898 (23.2)
Includes subsidies to Bull Creek, Oxbow and E911 (funded out of the General
Fund - Fund Balance)
Capital $ 0 ( 0%)
Review at FY10 Mid Year
CIP $498,715 (0.3%)
Baker Village $498,715 (funded out of the General Fund - Fund Balance)
City Manager Hugley responding to Councilor McDaniel regarding the
hiring freeze, explained that we were close to completing the budget process
when we postponed posting and hiring new employees through the end of this
fiscal year. He said that based on the revenue distribution from the sales
tax, we will know if we could remove that restriction going into July 1st or
continue it. He advised that when we received the February distribution in mid
April, we were down 29.16% compared to February of 2008.
STORMWATER (SEWER) FUND
Revenues $ 4,801,171
Expenditures $ 4,801,171
Difference $ 0
Stormwater (Sewer) Fund - accounts for activities that are restricted for
stormwater and drainage. Primarily funded from property taxes.
Millage increased to 1.22 in USD#1, 0.21 in USD#2
STORMWATER (SEWER) FUND
Personnel $2,837,340 (59.1%)
2 additional positions
Operating $ 936,418 (19.5%)
Capital $ 348,500 ( 7.3%)
Mobile Data Modems $7,500
Mid Size SUV $23,000
Eductor Truck $250,000
3 - 6? pumps $60,000
Arrow Board $8,000
CIP $ 678,913 (14.1%)
Pipe Rehab/Drainage Studies
PAVING FUND
Revenues $ 13,692,120
Expenditures $ 13,692,120
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
Personnel $7,789,417 (56.9%)
Operating $3,913,099 (28.6%)
Capital $ 502,338 ( 3.6%)
Mobile Data Modems $12,500
Full Size SUV $33,000
4 - Flat Bed Dump Trucks $133,000
3 - Zero Turn Mowers $22,500
7 yd Dump Truck $65,000
Herbicide Spray Truck $57,500
Asphalt Roller $13,838
Street Sweeper $165,000
CIP $1,487,266 (10.9%)
Resurfacing Program, Road Improvements, Sidewalks, etc.
MEDICAL CENTER FUND
3 mills
Proposed budget $12,426,041
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.
INTEGRATED WASTE
Revenues $9,603,491
Expenditures $9,603,491
Difference $ 0
Integrated Waste ? accounts for refuse and disposal services. Primarily
funded from user charges.
Residential Fee remains at $14/month
INTEGRATED WASTE
Personnel $4,880,642 (50.8%)
2 additional positions
Operating $4,722,849 (49.2%)
Capital $ 0 ( 0.0%)
CIP $ 0 ( 0.0%)
Landfill Closure and Post Closure
Councilor Baker asked if we have any type of reserve money for landfill
closure and post closure? City Manager Hugley said we do not. He recalled
that we did come to the Council with recommendations earlier this year. He
went on to say that the department has requested funding for five replacement
garbage trucks last year, as well as, this year. He said that no money has
been set aside for closure and post closure. He pointed out that we are using
everything that we have. He said that we would be increasing the use of these
older garbage trucks, and if we continue the course, we would continue to dig
deeper into future liabilities, and the quality of service would be in a state
of decline. He said that at some point, we would have to bring back a garbage
study for the Council to make some decisions.
Councilor Allen suggested putting on the add/delete list the purchase of
two garbage trucks to be funded out of the fund balance.
Once Finance Director Hodge advised that the new positions are in the
budget to be filled as of July 1, 2009, Mayor Pro Tem Turner Pugh asked to put
on the add/delete list the hiring for the new positions be delayed until
mid-year to determine the impact.
E911
Revenues $3,575,352
Expenditures $3,575,352
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 $ 616,413
9 Additional positions
Finance Director Hodge advised that the charge for landlines is $1.50 per
month and for cellular phones it is $1.00 a month. She included the following
information by stating that for landlines from July to September the companies
reported 258,000 and from October to December 254,000, which is a decrease of
4,300 land lines and wireless from July to September was 384,000 from October
to December was 389,000, which is an increase of 4,823. She explained that as
landlines are reducing and cellular phones are increasing, this is a reduction
in revenue for the City.
In response to a question of Chairman Henderson regarding E911 charges
partially being used for technology, Finance Director Hodge advised that some
of the cellular phone companies do have the technology to allow cellular phones
to be identified in terms of location and for those companies that do, we
reimburse them once an invoice is presented, but not all companies have that
ability.
DEBT SERVICE
Revenues $ 6,076,917
Expenditures $ 6,076,917
Difference $ 0
Debt Service Fund-accounts for accumulation and disbursement of principle and
interest payment.
Millage rate reduced to 1.08 mills
METRA
Revenues $ 6,186,556
Expenditures $ 6,186,556
Difference $ 0
METRA ? accounts for the operations of the public transportation system.
Primarily funded from property taxes, federal grants and service charges.
Capital $ 1,086,133
1 Additional position
PARKING MANAGEMENT
Revenues $ 212,935
Expenditures $ 331,120
Difference ($ 118,185)
Parking ? accounts for the operation of public parking and parking garages.
Primarily funded from parking fees.
TRADE CENTER
Revenues $ 2,735,869
Expenditures $ 2,735,869
Difference $ 0
Trade Center ? accounts for the operations of the facility. Primarily funded
from event proceeds and beer taxes ($818K).
Capital $ 100,559
BULL CREEK
OXBOW CREEK
Bull Creek - $1,639,079
General Fund Subsidy at $288,399
Bull Creek - accounts for the operation of the Bull Creek Golf Course
Oxbow Creek - $570,507
General Fund Subsidy at $150,000 + additional $194,604 subsidy for Oxbow Golf
Oxbow Creek - accounts for the operation of the Oxbow Creek Golf Course
CIVIC CENTER
Revenues $ 5,017,622
Expenditures $ 5,017,622
Difference $ 0
Civic Center ? accounts for the operations of the facility. Primarily funded
from hotel/motel taxes and events proceeds.
Capital - $ 81,300
ECONOMIC DEVELOPMENT
Budget $ 994,083
Economic Development ? accounts for 0.25 mills used for attracting quality
companies, broadening the tax base, job creation and retention
Councilor Allen asked about the balance of the trust account that
generates interest used to offset maintenance cost for the Civic Center.
Finance Director Hodge said the original balance was $3 million but she would
have to check the reports to determine the balance to date.
Councilor Allen also asked about the economic development and the request
for an increase from the .25 to .5 mills. City Manager Hugley said that we
anticipate having some discussion with the members of Council regarding this
matter.
PERSONNEL
(includes Benefits)
General Fund - 2 reclassifications, 1 Pay Adjustment, 2 temporaries, 4
additional positions
Probate Court Reclassification
Probate Law Clerk $8,722
Parks & Recreation Reclassification
Program Specialist III to Tennis Specialist II $4,568
Coroner?s Office Pay Adjustment
Coroner $15,978
Planning ? Temporary
PT Planner $27,040
Public Services ? Temporary
Facilities Division $45,247
Engineering ? NEW
GIS Supervisor $50,983
Sheriff?s Office ? NEW
2 Correctional Officers (Security) $84,886
City Manager?s Office - NEW
Citizens Service Tech $48,788
Stormwater (Sewer) Fund
Engineering
Stormwater Data Technician I $35,609
Stormwater Inspector $48,786
Integrated Waste Fund
Recycling
Equipment Operator II $39,293
Equipment Operator III $41,009
After Councilor Davis asked questions regarding the difference in
administrative cost for public safety offices, Chairman Henderson suggested
spending some time walking through the process of budgeting and pay plan
implementation.
In reference to questions by Councilor Davis, Mayor Pro Tem Turner Pugh
said that when you compare the percentage change, you are not looking at the
real numbers if you have part of it in the department and part of it not;
therefore, we need to see the actual true department?s budget to include last
year?s pay increase in order to get a real feeling of what the percentage
increase is for that department this year. She said this is not just for
public safety, but the whole budget.
E-911
Police Department
9 communication Tech III $369,081
METRA
Dial a Ride
Bus Operator $41,009
At this point, Chairman Henderson suggested that we conclude the
presentation by the Finance Director and hear from the Tax Commissioner.
DEPARTMENT PRESENTATIONS
Tax Commissioner
Tax Commissioner Lula Huff came forward to make a request for a
reclassification for a vacant position in the Tax Commissioner?s Office. She
said the vacant position is for a Tax Clerk. She said we are in dire need of
some automation and computer science technology in the Tax Commissioner?s
Office. She explained that we would like to do some additional things in the
office, but do not have that expertise or the capability to do it. For
example, Tax Commissioner Huff spoke of online payment for motor vehicle
registration and property tax registration. She said this would mean that we
could accept credit card payments. She shared some of the interactions with
other Tax Commissioner?s Offices throughout the State of Georgia that have
these automation capabilities and they are much more advanced then we are
because they have a person onboard that not only understands the duties of the
Tax Commissioner?s Office, but they understand how to use automation.
She said that the request is that we have been diligent and good stewards
of the City?s and State?s monies in the past. She pointed out that we have
continuously brought in additional revenues and continuously taken on an
increasing workload and not asked for any additional funds for several years
now; we would like to continue in this mode.
She advised that she passed around the table a one-page recap of the
request and the document attached to that is the City?s position questionnaire
form that is being requested to be filled out. (A copy of this document was
not filed for the record.)
Mayor Pro Tem Turner Pugh requested that the reclassification be placed on
the add/delete list.
Chairman Henderson advised that the next Budget Review Committee Meeting
is scheduled for next Tuesday, May 9, 2009 directly after the regularly
scheduled Council Meeting.
*** *** ***
There being no other budget related items to discuss, this meeting
adjourned with the time being 4:21 p.m.
________________________
Sandra T. Davis
Deputy Clerk of Council
Council of Columbus, Georgia
Attachments
No attachments for this document.