Columbus, Georgia

Georgia's First Consolidated Government

Post Office Box 1340
Columbus, Georgia, 31902-1340
(706) 653-4013
fax (706) 653-4016

Council Members

Minutes





BUDGET REVIEW COMMITTEE

May 7, 2013



Members Present: Acting Chairperson Mike Baker and Councilors Jerry ?Pops?

Barnes and Judy W. Thomas. Mayor Pro Tem Evelyn Turner Pugh arrived at 2:10

p.m., Chairperson Berry Henderson, Bruce Huff and Evelyn Woodson arrived at

2:20 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, Clerk of Council Tiny Washington and

Deputy Clerk of Council Sandra Davis.



Members Absent: Councilors R. Gary Allen, Glenn Davis and Charles E. McDaniel,

Jr. were absent.





Call to Order: Councilor Baker, Acting Chairperson, called the meeting to

order at 2:10 p.m. in the Council Chambers, Plaza Level, of the Government

Center.





Councilor Baker advised that he is presiding until Chairman Henderson

arrives. He then made some brief comments regarding the process and making

notes for the add/delete list.



The following documents were distributed around the Council table: FY14

Recommended Budget, Recommended Budget Schedule for Council Meetings-

Department Presentations, FY12 Recommended Budget Overview 04/30/2012 and

Letter from Frazer K. Loomis- Treasurer of Keep Columbus Beautiful Commission,

Re: A request for reconsideration of the propose 20% reduction in the FY14

budget for Keep Columbus Beautiful Commission.





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 7, 2013



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

? May 7th ? Overview, Operating Funds Summary, General Fund- Fund Balance,

Agency Appropriations, Non-Operating Funds Summary, Department Presentations



? May 14th ? Other Local Option Sales Tax, TSPLOST, Department Presentations



? May 21st ? Department Presentations



? May 28th ? Department Presentations, Add/Delete List



BUDGET SCHEDULE



JUNE 2013

? 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



? First reading of the Tax Millage

l Public Hearing

? Second reading of the Tax Millage

l Final Tax Rates



JULY 1, 2013

? Fiscal Year begins



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





Finance Director Hodge noted that the Economic Development Fund shows an

increase in millage from 0.25 to 0.41 and the Debt Service millage is reduced

by that same amount from 0.95 to 0.79, which allows the total to remain the

same.



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NOTE: Councilor Henderson arrived at 2:20 p.m. and begin presiding over the

meeting.

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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%



GENERAL FUND



? Revenues $144,679,430

? Expenditures $150,953,865

? Difference ($ 6,274,435)

? 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 $113,461,900 (75.2%)

? Operating $ 37,491,965 (24.8)

o Includes subsidies

o Includes NCR Project

? Capital $ 0 ( 0%)

? CIP $ 0 (0%)





When asked by Councilor Baker with regards to the increase in the Economic

Development Fund millage, Finance Director Hodge briefly explained that the

Economic Development Fund millage was increased from 0.25 in the proposed

budget to add 0.16 as the Economic Development Reserve for a total of 0.41 for

Council?s discretion. She explained that it would remain 0.25 for the

Development Authority for economic development and the 0.16, which represents

$691,691 would remain as a reserve to be used at Council?s discretion.



GENERAL FUND



? Reclassifications / Restructures

o Clerk of Superior Court $3,931

? Deputy Clerk II to BOE Administration



o Marshal?s Office ($7,966)

? (2) Deputy Marshal to Chief Deputy Marshal



o Probate Court ($25,062)

? Delete Probate Law Clerk / Associate Judge

? Add Law Clerk / Fiduciary Compliance Officer

? Deputy Clerk II to Senior Deputy Clerk



GENERAL FUND - # of Days of Unassigned FUND BALANCE



Reserve Days FY11 Actual FY12 Actual FY13 Projection FY14 Projection

General Fund 79.84 71.57 67.00 52.00

OLOST 6.30 5.25 8.00 20.35

TOTAL 86.14 76.82 75.00 72.35





STORMWATER (SEWER) FUND



? Revenues $ 5,276,954

? Expenditures $ 5,276,954

? 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





Councilor Woodson asked Finance Director Hodge to revisit the millage of

0.20 for USD #2 because she believes that number should be increased.



STORMWATER (SEWER) FUND



? Personnel $3,188,733 (60.4%)

? Operating $1,105,279 (21.0%)

? Capital $ 170,285 ( 3.2%)

? CIP $ 812,617 (15.4%)

l Pipe Rehab/Drainage Studies





PAVING FUND



? Revenues $ 15,026,462

? Expenditures $ 15,026,462

? 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



PAVING FUND



? Personnel $8,077,854 (53.8%)

? Operating $4,674,965 (31.1%)

? Capital $ 976,503 ( 6.5%)

? CIP $1,297,140 ( 8.6%)

l Resurfacing Program, Road Improvements, Sidewalks, etc.





MEDICAL CENTER FUND



? 3 mills projected at $13,509,597

? Proposed budget $14,109,597

? 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



Finance Director Hodge pointed out that we are in the process of auditing

the Medical Center Fund and as a result, the City has received a refund from

the Medical Center in the amount of $86,000 as we are finding issues through

our external auditor; this refund was a result of the audit portion on the

prisoner care. In response to Chairman Henderson, Finance Director Hodge

stated that we would not have the total for the inmate care for this past

fiscal year until a couple of months after the fiscal year ends. She said for

FY12, it was approximately $800,000 but she would provide the final totals.



After Mayor Pro Tem Turner Pugh asked for clarification on the breakdown,

Finance Director Hodge explained that as part of the contract, $500,000 of

inmate medical expenses is included; however, any charges above that is split

50% with the City and we have estimated $600,000 as the city?s 50% portion.

She added that currently within the Sheriff?s Department?s budget we have a

jail clinic, but we are in the process of an RFP to look at outsourcing the

jail clinic operation as opposed to running that jail clinic in-house.





INTEGRATED WASTE



? Revenues $10,311,100

? Expenditures $10,311,100

? Difference $ 0



? Integrated Waste ? accounts for refuse and disposal services. Primarily

funded from user charges.

? Residential Fee proposed at $14.14/month

? Non-residential rate increases included



Finance Director Hodge noted some of the non-residential rate increases

are as follows and are part of the three-year plan outlined by Public Works

Director Pat Biegler:



? 32 gallon bag sticker increased July 1, 2012 from $1.25 to $1.50 proposed for

FY14 $1.75

? Construction and demolition waste increased July 1, 2012 from $25.50 to

$32.50 proposed for FY14 $37.50

? Inert Waste per ton increased July 1, 2012 to $24.00 proposed for FY14 $29.00





INTEGRATED WASTE



? Personnel $5,425,556 (52.6%)

o Includes (1) Recycling Center Manager

? Operating $4,885,544 (47.4%)

? Capital $ 0 ( 0.0%)

o Lease/Purchase program funding included in the Debt Service Fund

? CIP $ 0 ( 0.0%)

l Landfill Closure and Post Closure



Chairman Henderson requested the details of the restructure be provided.

Councilor Thomas requested when we have discussions on these reclassifications

and that someone from that department be present to speak to the matter.



E911



? Revenues $3,947,975

? Expenditures $3,947,975

? 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 $ 1,182,971







ECONOMIC DEVELOPMENT



? Budget $1,772,459



? Economic Development ? accounts for 0.25 mills used for attracting quality

companies, broadening the tax base, job creation and retention = $1,080,768

? Reserve for Economic Development ? 0.16 mills = $691,691



Mayor Pro Tem Turner Pugh requested a report or presentation from the

Development Authority providing a breakdown of the obligations that exist in

recruiting business to the City. Councilor Baker cautioned that if there is an

ongoing expenditure, there may be some form of confidentiality arrangement in

process; therefore, the Development Authority may not be able to disclose

everything.



DEBT SERVICE



? Revenues $ 11,355,442

? Expenditures $ 11,355,442

? Difference $ 0



? Debt Service Fund-accounts for accumulation and disbursement of principle and

interest payment.

? Millage rate reduced to 0.76 mills from 0.95 mills

? Lease / Purchase Program included





METRA



? Revenues $ 6,196,637

? Expenditures $ 6,236,609

? Difference ($ 39,972)



? METRA ? accounts for the operations of the public transportation system.

Primarily funded from property taxes, federal grants and service charges.

? Capital $ 668,300

*Note: Utilizing METRA ? Available Fund Balance









PARKING MANAGEMENT



? Revenues $ 398,419

? Expenditures $ 398,419

? Difference $ 0

? Parking ? accounts for the operation of public parking and parking garages.

Primarily funded from parking fees.

? General Fund Subsidy $188,919



TRADE CENTER



? Revenues $ 2,610,522

? Expenditures $ 2,751,363

? Difference ($ 140,841)*

? Trade Center ? accounts for the operations of the facility. Primarily

funded from event proceeds and beer taxes ($763K), and Hotel/Motel Tax ($702k)

? Capital $ 84,080

? Delete one (1) Groundskeeper position



*Note: Utilizing Trade Center ? Available Fund Balance



BULL CREEK

OXBOW CREEK



? Bull Creek - $1,476,948

o General Fund Subsidy $44,598

? Bull Creek - accounts for the operation of the Bull Creek Golf Course

? Oxbow Creek - $537,082

o General Fund Subsidy $254,581

? Oxbow Creek - accounts for the operation of the Oxbow Creek Golf Course



CIVIC CENTER



? Revenues $ 5,839,940

? Expenditures $ 5,839,940

? Difference $ 0





? Civic Center ? accounts for the operations of the facility. Primarily

funded from hotel/motel taxes ($1.4 million) and events proceeds.

? Capital - $ 25,000

? General Fund Subsidy $ 200,000







AGENCY APPROPRIATIONS $1,567,476 FY13 Projection FY14 Projection

Health Department $813,475 $650,780

Health Department Rent $306,368 $309,383

Department of Family & Children Srv $80,000 $62,628

Keep Columbus Beautiful $78,356 $64,628

Uptown Columbus $72,900 $58,320

Airport Commission $40,000 $40,000

River Valley Regional Comm $189,855 $194,107

New Horizons $234,823 $187,858

Literacy Alliance $13,172 $0





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 MUSEUMPersonnel Expenses $ 251,582Revenue $ 101,582Net

Subsidy $ 150,000

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 subsidy



Mayor Pro Tem Turner Pugh asked the Administration to comment on the email

received from the Naval Museum with regards to the city?s commitment for

funding.



Mayor Tomlinson responded by speaking to the ongoing effort to reduce the

subsidy with the Sports Council, Convention & Visitor?s Bureau and other

stakeholders that were able to provide $50,000, which allowed the city to

reduce its subsidy from $250,000 down to $200,000. She referenced the memo

that was submitted from the Naval Museum showing the improvements made in

overhead to reduce their budget, as well as, increased visitorship and

contributions. She then recalled an email from the Naval Museum subsequent to

the submission of the Mayor?s budget message requesting the subsidy be

increased to $200,000, but right now it stands at $150,000. She pointed out

that meetings would be held with some of the representatives.



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$75,000Economic Development Program$15,000

HOME$789,217HUD Section 108$862,125Multi-Governmental$3,787,570

Hotel/Motel Tax$5,616,580Police Forfeiture$100,000County Drug Abuse

Treatment (DATE)$68,000Metro Drug Task Force$200,000County Jail / Penalty

Assessment$1,500,000Sheriff Forfeiture$100,000Marshal?s Forfeiture Fund

$20,000Special Projects (CIP)$10,109,7571999 SPLOST Fund$30,000,000

TSPLOST Fund$61,821,527Family, Youth and Coalition$45,000Columbus Bldg.

Authority Lease Revenue Bonds Series 1999C$450,000Columbus Bldg. Authority

Lease Revenue Bonds Series 2003A$1,000,000Columbus Bldg. Authority Lease

Revenue Bonds Series 2003B$4,000,000Columbus Bldg. Authority Lease Revenue

Bonds Series 2010B$35,000,000Columbus Bldg. Authority Lease Revenue Bonds

Series 2010C$1,700,000



In response to a question from Mayor Pro Tem Turner Pugh regarding the

legal expenses paid to the attorneys, City Attorney Fay explained that the

total for all of the online settlement cases was a little over $1 million and

the City netted $888,000 with the attorneys receiving the rest of the

settlement amount; no money was paid out of the General Fund to the attorneys.



Councilor Thomas asked if all of the money from the online settlement went

into the Hotel/Motel Tax fund, at which time, Finance Director Hodge responded

by saying that the monies was deposited into the Hotel/Motel Tax Fund.



In conclusion of the presentation, Finance Director Hodge noted the

request for information for the next meeting on the Title Ad Valorem Tax and

the CIP Funding. She also made note of the handout that shows the departmental

presentations; however, the Coroner is listed to make a presentation on today.



Councilor Thomas requested a breakdown of what is included in the subsidy

from the OLOST for E911.



After some additional discussion, Chairperson Henderson requested to put

the Citi-Serv on the list to be deleted. He also requested a total for the

entire city government for travel and for department heads to highlight

essential (loss of certification) travel, because for a one-year time period,

he would ask that all non-essential travel be eliminated.



Finance Director Hodge then responded to questions from Councilor Baker

with regards to the calculation for a cost-of-living for a defined benefit plan

or does the plan bare the cost. Finance Director Hodge explained that

historically the retirees receive 50% of the increase proposed for the current

city employees, which equates to .25% and expounded on the calculation by

noting that one of the assumptions in the pension plan includes a 3.25%

increase in the payroll; therefore it is part of the required contribution

calculation.



*** *** ***



CORONER?S OFFICE:



Mr. Buddy Bryan- Muscogee County Coroner, came forward to speak of his

accomplishments to include the establishment of new educational programs since

taking office in January 2013. He mentioned his long term plans and provided

some statistical information. He then offered the following changes and

initiatives for the citizens of Columbus:



? Indigent and Pauper burials should come through the Coroners Office, which

would reduce the cost to the city by removing the service of funeral homes

? Providing free of cost to the citizens a living will, basic will and general

or durable power of attorney



In conclusion, he recommended the following changes in his budget and are

listed below:

? Reclassification of one of the Deputy Coroners to be removed

? Requesting a third Deputy Coroner



Mayor Pro Tem Turner Pugh requested that the Administration provide a cost

analysis to determine if it is feasible to provide pauper service through the

Coroner?s Office versus the way it is handled now. Also, look into the

request for a third Deputy Coroner. Coroner Bryan continued to make

justifications for his need for another deputy coroner. He said if the

resources are not available, he would request the authority to deputize and add

at least a part-time individual to provide some backup; he currently has

someone that is certified by the State.



Chairperson Henderson then suggested that the third Deputy Coroner

position be placed on the add list; however, it be tied to a deletion generated

from the savings to keep it revenue neutral.



Coroner Bryan shared his suggestion to increase revenue by sending out

letters to the surrounding counties informing of the increase of $275 for the

transporting of remains; this service was provided as a courtesy. As part of

the reduction, the Coroner?s Office is responsible for taking the remains to

the Medical Examiners Office in Atlanta but would refrain from waiting to

transport the remains from Atlanta if a funeral home has been designated, which

saves six to eight hours worth of compensation.



After some additional comments, this matter was concluded.



*** *** ***



MAYOR?S OFFICE:



Mayor Tomlinson said the 1.5% reduction was on the increased Mayor?s

budget of the Citi-Serv, which was $100,000 special appropriated by the

Council; however, she did not allow the 1.5% reduction to come out of the

Citi-Serv budget. Therefore, she absorbed the reduction of 1.5% on the

$100,000 in administrative cuts to the Mayor?s Office, which would result in

furloughs to the staff and/or herself; the city attorney is working on that

because that is constitutionally prohibited. She suggested taking the

reduction on the actual budget. Chairperson Henderson said that if it is

reduced; then, he would not see why that could not be done.



*** *** ***



NEXT BUDGET MEETING:



Finance Director Hodge announced that the next Budget Review Committee

Meeting would be on Tuesday, May 14, 2013 immediately following the regularly

scheduled Council 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.

He then asked that the members of Council submit the names of departments that

they would like to appear if for no other reason then to have the opportunity

to hear how they would be impacted by the cuts.



City Manager Hugley recalled that at the last Council Meeting, there was a

request to hear a Crime Prevention update by a councilor that could not be

present today, and that is the reason why it was not discussed prior to this

meeting. This presentation would be listed on the Mayor?s Agenda for the May

14, 2013 Council Meeting.



*** *** ***

There being no other budget related items to discuss, Chairman Henderson

announced that the meeting is adjourned with those seven members present and

Councilors Allen, Davis and McDaniel being absent for this meeting with the

time being 3:56 p.m.





________________________

Sandra T. Davis

Deputy Clerk of Council

Council of Columbus, Georgia

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