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.
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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.
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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.
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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.
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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
Attachments
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