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) 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 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 #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
0.41
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
FY14 REVENUES

FY14 EXPENDITURES
FY14 OPERATING BUDGET BY TYPE

GENERAL FUND


GENERAL FUND



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

GENERAL FUND - # of Days of Unassigned FUND BALANCE

Reserve DaysFY11 ActualFY12 ActualFY13 ProjectionFY14 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


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
l Pipe Rehab/Drainage Studies

PAVING FUND
PAVING FUND
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

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:

INTEGRATED WASTE
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


ECONOMIC DEVELOPMENT

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

METRA



PARKING MANAGEMENT
TRADE CENTER
BULL CREEK
OXBOW CREEK
CIVIC CENTER



AGENCY APPROPRIATIONS $1,567,476FY13 ProjectionFY14 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 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$15,000HOME$789,217HUD Section 108$862,125Multi-Governmental$3,787,570Hotel/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$30,000,000TSPLOST 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:

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