Minutes


BUDGET REVIEW COMMITTEE
April 8, 2014

Members Present: Chairperson Berry Henderson and Mayor Pro Tem Evelyn Turner Pugh, Councilors Jerry “Pops” Barnes, Glenn Davis, Bruce Huff, Judy W. Thomas and Evelyn Woodson. 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.

Members Absent: Councilors R. Gary Allen, Mike Baker, and Charles E. McDaniel, Jr. were absent. Clerk of Council Tiny Washington was also absent.


Call to Order: Chairperson Henderson called the meeting to order at 11:12 a.m. in the Council Chambers, Second Floor, of the Citizen Services Building.


Chairman Henderson then reminded everyone of the process that includes an overview and briefing on some of the funds, as well as, department head presentations. He explained that members of the committee have the opportunity to place items on the Add/Delete List. He then noted one change in the process is that previously a simple majority of the Budget Review Committee members would rule on the voting of the Add/Delete List but now it takes a majority of the seated members, which means six votes of Council or five votes with the Chairperson being the tie breaker.

The following documents were distributed around the Council table: FY2015 Recommended Budget, FY 2015 Budget Schedule and FY15 Recommended Budget- General Fund- Departmental Reductions.


Finance Director Pam Hodge outlined the reports that are provided on the disc; however, Chairperson Henderson advised that the Finance Department would be providing this information in another format compatible with the updated computer system. She then provided an overview of the FY2015 Recommended Budget and is provided in the following power point presentation:

FY2015 RECOMMENDED BUDGET
April 8, 2014

AGENDA
l Budget Process/Schedule
l Overview
l Operating Funds Summary (including Capital/CIP)
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

BUDGET SCHEDULE

JUNE 2014
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

JUNE 2014

First reading of the Tax Millage
l Public Hearing
Second reading of the Tax Millage
l Final Tax Rates

JULY 1, 2014
Fiscal Year begins

FY14 OPERATING FUNDS

Revenues $259,084,511
Expenditures $263,097,415
Use of fund balances $ 4,012,904

l General Fund $3,815,810 (includes a $1,889,900 Public Safety vacancy Reserve
l Debt Service $ 197,094

ASSUMPTIONS

No change in the Millage Rates from FY14
USD #1 = 17.88 mills
USD #2 = 11.90 mills
USD #4 = 11.00 mills
1.00% 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) $4,484,207
Value of one mill (Debt) $4,913,148
COLA included of 0.50% for active employees and 0.25% for retirees effective January 2015
Health Insurance – City remains the same at $5,650 with implementation of a contribution sharing strategy and changes proposed to the plan (to be discussed in detail on April 15th)
MILLAGE SUMMARY

USD #1USD#2USD#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
0.50
0.50
0.50
Debt Service
0.70
0.70
0.70
TOTAL
17.88
11.90
11.00


Finance Director Hodge noted the only change is with the reduction of the Debt Service from 0.79 to 0.70 and increase of the Economic Development millage from 0.41 to 0.50.

Councilor Woodson asked if USD #1 and #2 have been re-evaluated to determine if USD #4 should share more with the cost. Finance Director Hodge advised that we have reviewed this and would be coming back with possible recommendations for changes in the district lines.
FY15 OPERATING BUDGET BY FUND
FY15 REVENUES

FY15 EXPENDITURES
FY15 OPERATING BUDGET BY TYPE


GENERAL FUND

At this time, Finance Director Hodge made reference to the FY15 Recommended Budget- General Fund – Departmental Reductions and explained each column.

GENERAL FUND - # of Days of Unassigned FUND BALANCE

Reserve DaysFY11 ActualFY12 ActualFY13 ActualFY14 ProjectionFY15 Projection
General Fund
79.84
71.57
68.73
46.07
38.05
OLOST
6.30
5.25
5.35
10.71
22.64
TOTAL
86.14
76.82
74.08
56.78
60.69
FY14 Fund Balance Projection
Assumptions included in projections
STORMWATER (SEWER) FUND


PAVING FUND

MEDICAL CENTER FUND

3 mills projected at $13,452,622
Proposed budget $14,052,622
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


Chairperson Henderson asked staff to keep the matter under the radar regarding the tracking of the increase in the general indigent population cost of providing medical care and prison population. After Mayor Pro Tem Turner Pugh asked for clarification on the inmates that are being sent to the Medical Center, as well as, the reimbursement rate to the Medical Center, Finance Director Hodge said that the Sheriff would be asked to attend a meeting to respond to these specific questions.

INTEGRATED WASTE

E911



ECONOMIC DEVELOPMENT
DEBT SERVICE

METRA

PARKING MANAGEMENT

TRADE CENTER
BULL CREEK / OXBOW CREEK GOLF COURSES

Councilor Thomas commented that the subsidies include the increases in user fees that are a part of the revenue and there is still a shortage of $50,000 at Bull Creek and $250,000 at Oxbow Creek, at which time, Finance Director acknowledged this is correct.
CIVIC CENTER
AGENCY APPROPRIATIONS $1,344,047FY13 ProjectionFY14 Projection
Health Department Services
$650,780
$502,012
Health Department Rent
$309,383
$315,713
Department of Family & Children Srv
$62,400
$48,135
Keep Columbus Beautiful
$64,628
$49,854
Uptown Columbus
$58,320
$44,988
Airport Commission
$40,000
$40,000
River Valley Regional Comm
$194,107
$198,413
New Horizons
$187,858
$144,932


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 MUSEUM

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 subsidyFY14 = $175,000 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
NON-OPERATING FUNDS

Urban Development Action Grant $75,000
Economic Development Program $15,000
HOME $590,774
HUD Section 108 $831,600
Multi Governmental $3,289,750
Hotel/Motel Tax $5,040,000
Police Forfeiture $100,000
County Drug Abuse Treatment (DATE) $68,000
Metro Drug Task Force $200,000
County Jail / Penalty Assessment $400,000
Sheriff Forfeiture $100,000
Marshal’s Forfeiture Fund $5,000
Special Projects (CIP) $12,859,303
1999 SPLOST Fund $24,000,000
TSPLOST Fund $66,821,527
Family, Youth and Coalition $45,000
Land Bank Authority $15,000
Columbus Bldg. Authority Lease Revenue Bonds Series 1999C $450,000
Columbus Bldg. Authority Lease Revenue Bonds Series 2003A $800,000
Columbus Bldg. Authority Lease Revenue Bonds Series 2003B $4,000,000
Columbus Bldg. Authority Lease Revenue Bonds Series 2010B $22,000,000
Columbus Bldg. Authority Lease Revenue Bonds Series 2010C $1,500,000


In conclusion of the presentation, Finance Director Hodge noted that at the next meeting, she would provide an overview of the OLOST, TSPLOST and the health insurance.

Chairperson Henderson asked that Mayor Tomlinson along with the Administration, check with the Public Safety Departments to determine if there may be some duplication of similar task forces, etc. and let’s identify those types of functions that exist in the Sheriff’s Office, Police and Marshal’s Department. He said provide a report on how many calls we are receiving for the different entities so we could take a look at the numbers.

Councilor Thomas asked to be provided with how much across the city that we expend for electricity without having the task of adding up all of the budget line items 6643. Finance Director Hodge said that we could provide that in a different format so that it would add up.

Finance Director Hodge was asked to introduce the Finance Department employees, who were seated in the audience.

*** *** ***

There being no other budget related items to discuss, Councilor Huff made a motion to adjourn. Seconded by Councilor Woodson and carried unanimously by those seven members present with Councilors Allen, Baker and McDaniel being absent for this meeting with the time being 12:11 p.m.



________________________
Sandra T. Davis
Deputy Clerk of Council
Council of Columbus, Georgia