HomeMy WebLinkAboutCALLED MEETING July 28, 2008
CALLED MEETING COMMISSION CHAMBER
July 28, 2008
The Augusta Richmond County Commission convened at 12:15 p.m., Monday, July 28,
2008, the Honorable Deke Copenhaver, Mayor, presiding.
PRESENT: Hons. Holland, Smith, Mason, Grantham, Hatney, Beard, Johnson, Bowles
and Brigham, members of Augusta Richmond County Commission.
ABSENT: Hon. Jackson, member of Augusta Richmond County Commission.
Also Present: Chiquita Johnson, General Counsel; Fred Russell, Administrator; Lena
Bonner, Clerk of Commission.
1. Approve the 2008 proposed millage rate.
Mr. Russell: As we talked at our last meeting in reference to the millage rate I had
proposed a millage rate last November and in what time the budget was adopted based on that
millage rate. As we have gone through the first seven months or six months and almost seven
months of this year we’ve had new additional information provide itself to us, as we’ve been
able to look at the millage rate, look at the budget and look at how we’ve been able to manage
our resources. Most of that information’s been good and we’re very proud of the fact that as a
couple of speaker’s have commented on we did have a $5.1 million dollar surplus last year. We
have been able to show some increases in our tax base and that’s been a good thing for us too. In
addition to that we have additional franchise money that’s come in through payments through
Georgia Power and other franchise fees there. That has allowed me in my projection to reduce
the amount of millage that I requested last year in November. The impact of on a $100,000 of
our citizens home was about $48.00 at that particular point in time, $48.76. Because of the good
things that have out weighed the bad things and some of those bad things are increased prisoner
costs, and we talked about that. Increased gas costs and we’ve all suffered not only as a
government but as a family. Increased food costs, as we have to pay for food for our prisoners
and those kinds of things there. And increased power costs as we all know the lights, the air-
conditioning the heat is not free and those costs are going up. Not only for each of our citizens
but for each of our government buildings and government facilities. Despite that with the budget
surplus and the good management that your department heads and you have required us to do
have recommended that we reduce that initial millage rate to .607, and I just lost it. Where’s it
at? I lost the piece of paper. Sorry. So the millage rate would be increased to .6 which the, you
know the bottom line, the impact on the family home would be about $24.00 a year as opposed
to the $48.76 that we initially set. We feel that would allow us to use $3.1 million of that surplus
that was available to keep from increasing the taxes. To use some of the money that we’ve been
able to gain through the franchise fees were available there and reduce that figure to that
particular degree. In the fire fund we asked for an increase for surplus dollars so we could build
our capital improvements program. As most of you know we’ve been doing capital
improvements in the fire department through SPLOST dollars, buying fire trucks in that
particular area. Not really a good way to do business. And we’ve asked for an increase there.
We reduced that too to where we’ve been able to leave with that particularly. The .607 increase
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in the general fund and the .98 mill in the fire fund I feel to be a very prudent way of doing
business. It allows us to still add to our general fund contingency amounts, the rainy day fund
that we all try to keep. It does help our citizens by reducing the initial tax bite that they have in
front of them at this particular point in time. It allows us to make sure that we have enough
money in the bank to continue to take advantage of those things and it helps us pay for the
$2,000 increase for law enforcement and public safety that you approved. And the increased gas
costs and public power costs we have to pay. I think that’s a very prudent way to do things. You
asked me to look at the budget and we have. We’ve gone through and scoured for dollars as best
we can and I would still recommend that you approve the 6.07 increase in the general fund/law
enforcement fund and the .098 mill increase in the fire fund.
Mr. Mayor: Point six.
Mr. Grantham: .609
Mr. Russell: Well we were just trying to pad it just a little bit more. But you’re
absolutely right and I apologize for that. It is point ---
Mr. Grantham: Thank you Fred.
Mr. Russell: --- yes, sir, 607 and .098 in the fire fund. After a while these numbers can
continue to go through your head over and over. I’m sure each and every one of us goes through
the same thing every couple weeks as you look at those numbers over and over again. I’d be
happy to try and respond to any questions.
Mr. Mayor: Commissioner Grantham.
Mr. Grantham: Thank you, Mr. Mayor, and I had discussed this roll back, reduction
whatever you call it that Fred is proposing now on numerous occasions with him and with Ms.
Williams. I hear the voice of the people talking to us and telling us that they too are in the same
type of financial situation that the local government would be in and that is (inaudible). I am not
in favor of what is being proposed at the present time. I know that we should have and we do
need our protection from our public safety departments. That being our law enforcement, our
fire department, RCCI, our Marshall’s Department and 911. Those are vital departments to this
community and to this government as to how we function in what we do in the future for the
safety of our citizens. It is my recommendation and I’ve asked Mr. Russell to look at what the
cost of that increase that we approved for our law enforcement and our public safety and I was
given a .4 millage increase based on what he has indicated a few minutes ago. In addition
control what gasoline costs however we can control the consumption of the gallon (inaudible).
Along those same lines I would like to know what our gasoline increase was based on the
amount of consumption that we had last year (inaudible) I can see that that is two areas that we
need to be concentrating on and that’s something we need to look at. Having a .5 millage
increase would not be a burden certainly one that we would not like to have but I think it’s
something we could live with (inaudible). This is my recommendation based on that, Mr.
Mayor. I’m not going to put it in the form of a motion right now but I would like to hear the
comments from the other Commissioners and then at a later time I would like to have an
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opportunity to do that. To me this would give us the reserve that we presently have and I think
that a 105-day reserve that we have and not 120. The auditor did indicate a 75-day reserve is
what is necessary based on what we’ve had in the past. So we have recouped and recovered
ourselves back to the year 2002 I believe. So with that being said I don’t see the necessity of
burdening our citizens our taxpayers with just trying to build another reserve. Granted when bad
times come we have to address them and granted when bad times come we have always
addressed them. And I think at that time the citizens would be more receptive to any form of and
increase that we would have. However I think the citizens today would be receptive to the form
of public safety to the form of law enforcement and the form of being able to have protection in
the neighborhood that we need. And Sheriff Strength has certainly made that a known fact since
this increase was given to him back in May. We were able to step that up to May instead of
waiting to August. So, Mr. Mayor, those are the comments I have right now and I’d like to have
the floor at a later time. Thank you.
Mr. Mayor: Commissioner Holland, did you have your?
Mr. Holland: Yes, I did.
Mr. Mayor: Okay.
Mr. Holland: Thank you, Mr. Mayor. I was listening to Mr. Russell and I understand
(inaudible) I’m very much concerned about our citizens because not only being concerned about
our citizens I’m concerned about the fact that we are involved in this also as Commissioners. In
listening to our constituents and listening to the citizens come up to the microphone and listening
to them at different meetings that we attended along with you Mr. Mayor there’s a great deal of
concern about the way that they are living the way that all of us are living at this time. We have
rising prices we’re looking at almost three tax raises this year if possible if it goes through. A lot
of our citizens the majority of our citizens are living on fixed incomes and they’re trying to make
it. And if we are increasing these taxes and I believe one of our Commissioners mentioned the
fact we should wait because this particular year was going to be the year that we would not have
to increase taxes. But all of a sudden it has come around and we’re going to have to increase
these taxes. So I’m very much concerned about the fact that we may have to revisit this tax
increase and look at what we have so that our citizens can have an opportunity at least for a year
to regain themselves and get themselves together in terms of their budgets so that they’ll have an
opportunity to live much better. We have an election coming up in November we don’t know
what’s going to happen at that particular time. So some things may be changing so we need to
really listen to what our constituents are saying and we need to as Commissioners really think
about this tax increase. So at this time I would really like for us to think about this and maybe
revisit this tax increase before we approve this because I’m very much concerned about the way
that we are living. The taxes are rising, the gas is high, groceries are high, senior citizens and all
of us and the majority of us are struggling you know to try and make ends meet. We may not
admit it but we are. So it’s best at this particular time from my thinking, my point of view that I
just cannot agree with this particular tax increase at this time. I would rather us revisit this at a
later date to see if we can make things much better for our citizens. Thank you, Mr. Mayor.
Mr. Mayor: Commissioner Hatney.
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Mr. Hatney: Mr. Mayor, fellow Commissioners and Mr. Administrator. Not just
listening to these individuals who have spoken today but having sat here now this is the third
year and each year we’ve been chipping and chipping and chipping without having the courage
to go ahead and do what we should have done and had it finished before the gasoline got to
where it is now. I do believe there are other things we can do to kind of sustain ourselves. I
need to ask you one question, Mr. Russell. If we leave it where it is what ramification would that
have? Just don’t bother it at all. Just leave it where it is.
Mr. Russell: You’d have to take another $2.4 million dollars out of the surplus, not
surplus out of the reserve to meet the zero base that we need at this particular point in time. As
you know this is the budget we’re operating on this year. We’ve already operated seven months
on this particular budget and you’re setting the millage rate that will go out on the tax bills in the
near future. This is based on what you approved in November and we’ve operated based on that
function. So if you leave it at zero at this particular point in time do not increase taxes it requires
another $2.4 million out of the surplus.
Mr. Hatney: My concern is that when we excuse me and it was in the paper that we had a
five and a half million-dollar surplus. What did that mean?
Mr. Russell: Last year we had ---
Mr. Hatney: I’m talking about this year right here.
Mr. Russell: And this is last year money you’re talking about ---
Mr. Hatney: Okay.
Mr. Russell: --- it was $5.1 million dollars. That means last year. The fiscal year that
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ended last December 31 we had an additional $5.1 million in revenue over our expenses. So we
had an additional $5.1 million dollars at the end of that year. What I am proposing is that we use
$3.1 of that to keep our taxes lower this year. That would normally go straight into the fund
balance or the rainy day fund. What I’m proposing that we use a portion of that to keep that tax
rate lower because in November of last year you already approved the tax rate that was higher
than what I had proposed today.
Mr. Hatney: My question is if we proposed the rate last November and that particular
amount increased from last year, if we just leave it alone and operate on what we did in
November why can’t we do that?
Mr. Russell: Two reasons at this particular point in time. Because of the surplus that we
had in November the November tax rate would actually be about a $48.00 hit or charge against
each $100,000 house that we have. Because of the surplus that we had I came back two weeks
ago and recommended we lower that (inaudible) .607 because of that surplus and did that. We
advertised that .607 and we cannot raise it back to that other level without going through the
entire process again. So that was the decision that we made two weeks ago.
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Mr. Hatney: My concern is that and I won’t have anything else to say about it right now
until it’s time to really vote. But um, this year right here with things out of pocket as they are
personally I don’t care how you said this, it’s hard to brag about a surplus and then six months
later you’re going to change the whole makeup. It looked like to me we could’ve used the whole
surplus and not worry about this situation we’re in now.
Mr. Russell: That would be an option, sir. You have in front of you if you decide to use
that entire surplus you get back down to the tax rate that we had. But $200,000.00 total off from
the total tax rate that we had last year. So that would be an option that you have available.
Mr. Hatney: Then you would get that $200,000.00 from somewhere else.
Mr. Russell: We anticipate ---
Mr. Hatney: $200,000.00 out of reserve ain’t bad. Could we use all of the surplus rather
than doing any changes or any increase in taxes? Personally I’m not prepared to deal with no
increase.
Mr. Russell: That would be an option that you would have.
Mr. Hatney: And that’s the option I would support.
Mr. Russell: Obviously not my recommendation but that’s a valid ---
Mr. Hatney: That’s the one I could support. I could support no increase.
Mr. Mayor: Commissioner Mason, then Commissioner Beard.
Mr. Mason: Thank you, Mr. Mayor. Um, we’ve got some tough decisions to make here
today in reference to our citizens. And here’s what I would have to say about that. I’m
applauding the citizens today because we didn’t get you the 5.1 million surplus you did that and
that’s important to know. And so I’ve got some concerns now about asking you that have good
in your own stewardship to this city to turn around and ask you to some more. So we’ve got
some tough decisions. The .607 is not something that I can live with period. And given the fact
that the school board is looking at a millage increase that property tax assessments have gone up
we’re now looking at raising taxes from a governmental standpoint. You are talking about
taxing our citizens three times in one year. That’s a tough pill for anybody to swallow.
Economic times are difficult for everyone. Gas, power everything is high. If there was a year
that we give our citizens release I think we’re looking at it this year. If there’s a year I think this
is the year. I don’t know that we could do it next year or the year after because we don’t know
what the economic times are going to tell us. But based on your own good stewardship I think
we have to look at perhaps not looking at a tax increase at all for this tax year for our citizens.
And I think the Commission ought to look very seriously at that option as well as the other
options that are on the table.
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Mr. Mayor: Ms. Beard and then Commissioner Smith.
Ms. Beard: I can certainly understand where the citizens are coming from. You know I
feel your pain. But you’re calling every day in reference to getting more policemen and different
ones in your neighborhood because of the problems you are having there. Now, Mr.
Administrator, if we should cut back how will this affect our public safety in this community.
Because I want them to understand we’re dealing with a number of things here. And if we give
in some areas we may have to pull back in others. Now may I hear from you?
Mr. Russell: Yes, ma’am. I think what you’re going to do today one way or the other is
determine what happens this year. And it’s seven months into this year. So you know our
budget system is one that’s sort of strange in my mind. We’re seven months into what you’re
voting on right now. And we’re seven months into a budget that accrued and increase of one
point some mills that we adopted it in November. And now you’re talking about taking that
increase and doing away with it totally. I’m not worried about this year at all because as
Commissioner Mason said the good stewardship that was allowed by the citizens and you on
occasion drug me into we’ve got some money. We’ve got $5.1 million dollars in surplus. To do
what Commissioner Hatney asked requires that 5.1 and an additional 353 out of our rainy day
account and that gets us back pretty much to zero. I’m not worried about this year. What my
concern is that we start down a path that everybody here faces not only in government but at
home is those increasing costs. Because in October or November we’re going to be arguing
about next year and you’re going to be having to set a millage rate based on what you expect to
do next year. I can’t promise you a surplus again to help bail us out of that situation. I can’t
promise you that not like anybody else in this room the gas prices aren’t going to go up. I can’t
promise you the electricity prices aren’t going to go up. What I can promise you is that if we
continue down the path that we seem to be going at the moment the discussion in November
becomes uglier and uglier. Because I can say we’re going to have the same level of services
through the end of the year. I’m not uncomfortable with that at all. Where my comfort goes
away totally is talking about the same level of services next year if we continue down this path.
And that does mean are we going to talk about not as many cops or not as many people cutting
grass or not as many people doing everything that you and I get calls regularly on that our
citizens want. Commissioner Mason was exactly right. Every time we’ve done this I predict to
say we have tough decisions to make and those are the ones you have to make today. We need
to leave here with a decision based on what the millage rate is going to be. My professional
recommendation what I feel to be prudent what I feel to be the way that we need to go is to
continue with the .6 mill increase. That leaves the money in the fund it gives us enough money
to continue to fund this and it doesn’t mean in November we’re trying to get our, buy ourselves
back out of the hole again. On several occasions over the past six years I’ve been doing this I’ve
had people say well you’re nickel and diming us to death and that might be true. But it’s like
everybody else if it’s a nickel and dime it helps me as a homeowner to prepare for that. These
people will be back next year because it’s not going to get any better for them. Unfortunately
those that are on a fixed income their income remains fixed. And the gas prices go up and we
can’t do anything about that. The food prices go up and we can’t do anything about that. But
not only do they go up for them they go up for us too. So while I’m not worried as much about
this year, to get back to your real question the conversation in November becomes harder and
harder the tighter you run this particular budget this year.
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Mr. Mayor: Commissioner Smith and then Commissioner Hatney.
Mr. Smith: Thank you, Mr. Mayor. I have the same question Fred that Ms. Beard did.
How would this affect public safety if we use the 5.1 million and with no increase in taxes?
Mr. Russell: Of the increase that I’ve asked for .4 of that covers the increased salaries
that you pay public safety. The balance I’m putting before gas. So what you’ve done basically
is take all that money that I’ve asked for to pay for that and use either the surplus of the $5.1
million dollars and an additional $353,815.00 on top of that. What you’re going to see on the
street is nothing, no change in what you see on the street. What you’re going to have to do is
you’re postponing the argument from today to November on how you’re going to continue to
pay for it. That’s what you’re doing.
Mr. Mayor: Commissioner Hatney.
Mr. Hatney: Thank you, Mr. Mayor. Mr. Administrator, one of the things that I have
been concerned about through the years is that there are, one of the things that happened when
they merged the two governments that they established, and I don’t have no problem with them
establishing an enterprise but you’re telling which is used to sustain our order and to secure our
bonds I don’t have no problem with that. But I still do not believe that they ever needed 100% of
the water and sewer. I will never believe that they ever needed that. There are other areas that
we can look at. For instance I do not believe that anybody working for the City of Augusta
should be permitted to drive a city vehicle home out of Richmond County. There’s a lot of
things we can do that to me just makes good horse sense. And so if you’re talking about and it
bothers me if we’re going to brag about surplus but don’t have the courage to use it. If we’ve got
5.1 and it takes 3½, $350,000 somewhere else, fine. Because I do believe we can get that, find
that without even going into the surplus. There are ways to find it. We can find that Mr.
Administrator. I know this is kind of strange coming from me because I’m a, I just believe we
should’ve raised three or four mill year before last and been through with it. But nobody thought
that. I do not believe we need to do that today. And rather argue about what we’re going to do
in November but I can’t support no raise today. From my perspective whatever surplus we have
and find that other $350,000 from wherever. Because it can be done but the only liquid money
that Augusta gets every month is the water and sewer. One thing for certain you may not pay all
a lot other the stuff but if you drink water and flush you’re going to pay that bill. And I do not
believe that they ever needed the 100%. That should’ve been looked at and prorated,
reprogrammed. I just have some problem with that. I can support using the surplus plus help
you find that $350,000 somewhere. That’s the only one thing I can support today.
Mr. Mayor: Commissioner Johnson.
Mr. Johnson: Thank you, Mr. Mayor. Well, Dr. Hatney, you’re absolutely right. I
wasn’t here last year or the year before last when they actually looked through the budget and
also revamping and came to the conclusion of the 1.1 mills last year. But I will say that every
now and again everybody needs a break. I mean we all run into situations unfortunately that
we’re not prepared for a lot of times. But what I have witnessed through this local body here that
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we don’t exercise provision. We have to start planning for times like this and putting things in
place and looking at resources to generate revenue so we don’t have to hit the taxpayers. And I
mean I’m a taxpayer too. I was speaking with a young lady at the meeting Friday and I said to
her I live just like you live. So I’m not excluded from the same things that you deal with. You
know I stay in the same community you live I pay taxes like you do I go grocery shopping like
you do I have kids; you know which you have grown kids and I see how to provide for them.
And it’s rough. It’s very rough. And I think that at if any time we need to do something that’s
going to help us decide what’s going on in the economy today now is the time. And it’s not
about being a hero it’s about making an opportunity for these people to get some, make some
adjustments do whatever they can do. Reassess some things at home and prepare for what we’re
going to do in November. But I still say that we do have an opportunity in Augusta to generate
revenue elsewhere. We’re not exercising that. And we’re going to have to do better with
exercising the options that we have in Augusta. You go to places like Savannah and we was in
Kansas a couple of weeks ago and the things that they have going on there these people are
generating dollars hand over fist. And they don’t have to be a significant amount. A penny here
and there adds up. So I really would like to as a body of Commissioners and the Mayor to get
together and look at other options to generate those funds whether it be tourism or whatever. But
we got to do something to take the burden off our taxpayers. And I agree. I just don’t feel
comfortable about supporting this at this time. I think we need to just go back to the root to it
and start from zero and revisit it in November. Thank you, Mr. Mayor.
Mr. Mayor: Commissioner Bowles.
Mr. Bowles: Thank you, Mr. Mayor. A quick question for Mr. Russell. Does this
budget include any replenishment of the reserves at the end of the year? The current budget or is
it a break even budget?
Mr. Russell: No, I’m required by law to give you a balanced budget, sir. You did not use
any surplus funds but it does not, would not include any replenishment.
Mr. Bowles: Okay, thank you. Next question. Is there, or over $1 million dollars at one
time items in this year’s budget ranging anywhere from the consultants for the Disadvantaged
Business Enterprise Study to other items that, that you know the James Brown Exhibit, the
Augusta Tomorrow funding. So we already have a million dollars next year that won’t be
recurring for next year. And I’m going to get back on the charges for services. At the total
percentage of our government expenditures our charges for services went down from 18% to
16%. At that same time our expenditures went up from 12% to 14%. So we’re going to have to
address the issue of charging people who are using the services for these services whether it be
Parks and Recreation or rental facilities or the Transit Department. You know right there you’re
looking at $18 million dollars of the budget with those three organizations. Last year we had
budgeted revenues, our actual revenues for $3.3 million higher than budgeted. Our expenditures
for two million under budgeted. So it seems that we’re being very conservative in our estimates
and I would think, I know that the actual expenditures so far this year to date are slightly at 49%
rather than 50%. I would estimate that our revenues are going to be higher than we projected.
And with that and with the one-time fees I think it’s in our best interest not to raise taxes but just
as everybody sitting out here is facing difficult times we’re going to have to remember come
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budget time next year what’s going on in the economy around us when private corporations
aren’t giving raises. The county last year we absorbed $900,000 of the health insurance costs for
our employees. And we gave them a cost of living increase. And I hate to be the one to say it
but sooner or later we’re going to have to draw the line with our employees and say we can’t
give you a raise and you’re going to have to start picking up more of a percentage of your health
insurance costs because those are the things that are really driving the cost of this government
up. Again I think we need to look at the charges for the facilities and passing the cost on to those
that use it. And that’s in the same lines that if the people out there that are paying the taxes
aren’t getting raises at home why are we still giving them here at the county building? So I agree
with Commissioner Hatney and what Commissioner Brigham is about to say that you know with
$5 million dollars surplus ---
Mr. Mayor: How do you know what Commissioner Brigham is about to say?
Mr. Bowles: I’ve got a good vibe about it, Mr. Mayor.
Mr. Holland: He’s got good connections!
Mr. Bowles: Same way I do about our budget and revenues. So I just think that with the
$5 million dollar surplus last year that if there is a time this is the time to do it for our citizens.
Mr. Mayor: Commissioner Brigham.
Mr. Brigham: Thank you, Mr. Mayor. I’m sure glad I’ve got a mind reader. I guess I
want to start with revenue. Mr. Russell, was there any unusual revenue last year that we will not
be expecting this year?
Mr. Russell: One of the things that we underestimated was the cost that we got from the
franchise fee particularly Georgia Power. We anticipate that being at the same level. I don’t
anticipate the power bills going down. So there was no spike in revenue to my knowledge that
we’re not going to continue at this particular point in time.
Mr. Brigham: Okay, that makes me feel a little better.
Mr. Russell: Once again I don’t have the ability to read your mind like Mr. Bowles and I
can’t predict the future like that either.
Mr. Brigham: Well, you know my position on this tax raise.
Mr. Russell: I say that with a degree of hesitation but I don’t, that’s my guess at this
moment.
Mr. Brigham: Mr. Mayor, I really thought about this budget a very long, a very hard
time. I’m glad to see we’ve got some newfound conversions up here at this Commission. When
we go into budgets this year I know that it’s going to be a lot easier to find consensus on
introducing this budget. But that’s not the case that we’re living in. The case that we’re living in
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is living in a budget that was adopted seven months ago. I believe that we can, I do believe that
we can get buy without a tax increase and I’m going to vote that way. But I also believe that if
we do that, that we got work cut out for us starting next month figuring out how we’re going to
save money between now and the end of the year. This is not, when we give relief to the
taxpayers y’all got to remember also like Ms. Beard said Mr. Smith said and Mr. Grantham said
most of the Commissioners up here understand we get phone calls about the services and the
services that aren’t rendered. The services that are rendered that we render are the services that
y’all are willing to pay for. And those are the only services that we render. At least y’all are
willing to pay for we get to the basics. We get back the fire protection, police protection and
then we get back to the very basics of having to run a jail. And that doesn’t get cheaper any day
or the week. We are paying for stuff that we don’t have, haven’t had to pay for in the past. It
costs us money. But while I say that I know that there is a way to get through this year. But I’m
also trying to lay the groundwork for next year. Next year’s going to be a very tough year if the
economy doesn’t improve, if things don’t happen then there’s going to be a lot of people that’s
going to be complaining about when we go in with a meat axe and start slicing and dicing this
budget. We got to understand. We can get through this year. And I agree with Mr. Russell. We
can get through this year. We can do it without a tax increase. We’d probably do it a little better
with a little less tax increase even less than the half a mill that’s proposed. I’m not sure that
where we’re going today on that. But I know that we’ve got to get by with less money and I
know that the only way we can that is to balance the revenue that we get with the services that
we spend. As for the utility department. Everybody that’s been here for the last ten years
remember the City of Augusta in consolidation one of the reasons consolidation took place was
the City of Augusta was broke. One of the reasons they were broke is they did no tax increases
at all for ten years and the raided the utility fund. Now Augusta ten years ago did not have a
very good utility system. We had one that was broke we had a situation of drought and we had
complaints throughout all of Augusta about the lack of water. The times have changed. The
circumstances are a little bit different in that we do now have a sound financially run utility
system. You don’t have water complaints today. If we had the same complaints that we had
today that we had ten years ago this Commission would be hung in effigy out in front of this
building more than once. I’ve lived through both. I’d much rather be in these times. I know
with good planning, good financial planning we can do the things that we need to do. And I
think this Commission has the will to do it. I just think that these are tough times, tough
decisions and right now the one the administration doesn’t like is that we’re going to have to
figure out a way to by without a tax increase.
Mr. Mayor: Well, one thing and just to go along with what Commissioner Brigham said
that we do need to look towards the future. I’ve continued to say publicly in speaking when you
look at the fact that the state is run a $6 million dollar deficit they can plug that deficit with
reserve funds, the state’s reserve funds this year. But I would like all our local citizens to know
next year we so often have un-funded mandates put back on local government so I would really
that something for this commission to consider going into budgeting process next year how is the
state going to push those costs back on our local government. Mr. Russell.
Mr. Russell: Mr. Mayor, if I may. This is where I get to earn my dollars because I’m
getting ready to tell you you’re getting ready to make a mistake. You’re making a mistake
because you’re not looking far enough ahead on how this government needs to run. Okay?
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You’ve already committed $2,000.00 in raises to each public safety officer that we’ve got. This
is a good thing. It’s a shame we couldn’t have done better. That’s a reoccurring cost that you’re
paying for out of your fund balance at this particular point in time. In November we’ve got to
find that $1.8 million dollars just like Commissioner Brigham said. This is the easy part. This is
the real easy part. The hard part comes next year, or not even next year. It comes in October
when you start trying to fill that hole because you’ve already dug yourself almost two million in
a hole right there, so we’re going to have to find. That translates to a lot of services that doesn’t
get done. Things that people are going to call you about. Things that people want. Things that
they don’t really think about that they shouldn’t have to pay for but things that they need and
think they want to have. Every time I brought you a budget where we raised costs or raised
expenses or raised prices on things I have been chased away rapidly because our citizens
complained that the costs of going to the park and whatever goes up and up and up. And it’s
nowhere close to even coming close to paying what you’ve got to pay. Every time we try to
reduce services by closing things not doing things we normally do you have got those same
phone calls and you’ve come back to me and said figure out a way to make it happen. You have
today a government that runs fairly cost effectively. We’re not perfect we make mistakes.
We’re not great but we do a fairly decent job. That decent job is based on the fact that we are
conservative with your dollars and we are able to do that because you tell us to be that way. We
can make this year work. We can make next year work but what we’re doing today is defining
what government does in Augusta in the future. Are we a full service government that provides
parks and recreation, provides opportunities at the library, cuts the grass on the side of the road
or do we provide cops and firemen and that’s it. Do we do things that people want or do we do
things that people need. You know that’s the decision we’re making. You’ve got in front of you
a very prudent and a very, very conservative approach to moving forward. If you do not take
that you’ve presented us with a series of challenges that we will meet and we will meet together.
But it’s not going to be fun, it’s not going to be easy and each of you spoke about hard decisions.
Those hard decisions are just beginning at this particular point in time. You don’t want to go
into your fund balance too deep or you’ll have problems in the long run. You don’t want to try
to fund reoccurring costs. If you can’t fund the .6 at least fund the amount to pay for the cops,
the .4. Not just cops the public safety aspect because that’s something you’re going to have to
pay for in November no matter what (inaudible). That’s something that reasonable and
appropriate. And I think that would be what I would consider to be a drop back number. To go
with no increase and adopt the 2007 budget you’re digging a hole and will get you out. We’ll
work in that hole if we have to but I’m not too sure you’re going to be able, it’s going to be
tough. Thank you.
Mr. Mayor: And just regarding what Mr. Russell said. I think all too often governments
make decisions that are politically expedient as opposed to really looking at the big picture and
the long term. And I will just remind this Commission again that in 2005 against the
recommendations of staff raises were given across the board and taxes were rolled back which
put us in a deficit situation for the next couple of years that we dug ourselves out of. So I would
just like to say I support the staff Mr. Russell, Ms. Williams and all the people who put this
together. I think we need to remember that they worked very hard on this that they’re the ones
that are down here every day. Commissioner Hatney.
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Mr. Hatney: Thank you, Mr. Mayor. Mr. Administrator, you mentioned (inaudible) I
was glad to hear you say that and if you’ll say that again so I can make sure I didn’t
misunderstand you. Because this happened what we know here today happened in July and
November of every year. I thought I heard you say you didn’t use the (inaudible). I thought I
heard you say if you don’t get a tax increase you can get through this year and I thought I heard
you say we can get through next year. I’m sure I heard you say that.
Mr. Russell: We can manage.
Mr. Hatney: Okay, that all I’m interested in. You’ll be able to manage because we’ll be
right back here at this same time next year and whatever has to be done we just have to do it.
Mr. Russell: May I just say I’m not going to be able to manage ---
Mr. Hatney: No, no that ain’t gonna work. It ain’t gonna work. You just said you could
manage. I appreciate it, though, thank you. Just help me out.
Mr. Mayor: But I would say that on behalf of Mr. Russell that managing requires our
approval. And if you’re looking to cut services you’re looking to make cuts he can manage and
they can mange but then we’ve got to approve that. Commissioner Grantham.
Mr. Grantham: Thank you, Mr. Mayor. Listening to all the comments being made by the
other Commissioners certainly brings me back to a meeting I attended several months ago. And
there were about 300 of our citizens there wanting answers from not only the Commissioners but
from our Sheriff Strength in regards to the safety of their neighborhoods and what was going on.
Mr. Russell as well as Mr. Brigham made a good point that yes we do have that 5.1 million
excess revenue. That excess revenue came from “where”. I millions dollars being in excess
franchise fees as well as the increase in property values throughout our community that assisted
in the remaining portion. We just have no guarantee that that’s going to happen again next year.
And I’m all for no tax increase and I‘d like to reduce it down to the minimum, even zero. But if
we’re going to have to worry about how we’re going to come back next year and tell these same
citizens that we’re going to have to go up two mills on you because we saved you $15.00 last
year is going to be more difficult for me at that time than it is today to ask you to look at
contributing to the safety of this community. The safety of this community means more to me
than having a recreation park open or having a place that we need at this immediate time. We
can reopen that park at a later date. We can have people to volunteer to offer services for our
parks and for our children. But we don’t have anybody stepping up to the line to put on that
protection vest and put that gun on your hip and go out and protect the citizens. So I’m going to
make a motion today that we approve only the .4 percent increase for our law enforcement and
for our public safety people and that that be the millage increase that we ask our citizens to
support with the idea of saying we all want to be a part of protecting our community and that’s
all we’re asking for today. That’s all I’m asking for and I’d like to put that in the form of a
motion, Mr. Mayor.
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Mr. Russell: And if I may, Mr. Mayor, that motion would be that the .4 to the general
fund that the balance would be as recommended in the sheets that you have. You just got to say
everybody else.
Mr. Grantham: Everybody else will be included but .4 is all you’re going to be going up.
Mr. Mayor: Okay, we have a motion. Is there a second? Okay, we have a motion. Is
there no second?
Mr. Smith: I second it.
Mr. Mayor: Okay. Commissioner Smith then Commissioner Johnson.
Mr. Smith: Does that eliminate the fire, your motion?
Mr. Russell: Yes, sir, it eliminates the increase in fire.
Mr. Mayor: Commissioner Johnson.
Mr. Johnson: Thank you, Mr. Mayor. As a result of the motion I can’t support that. If
we’re going to support one we’re going to support the other first and foremost. I personally
don’t think the amount of money (inaudible) community policemen at this time. I think the
problem is we just don’t have enough officers. And we don’t have enough officers because
people are not willing to put on a uniform right now. I don’t care how much money you offer
them at this point. People are not interested in being cops. I heard that from them an officer
personally. That’s just the bottom line. That’s just not in Augusta that’s everywhere. So as a
result I just don’t think that us even approving this is going to increase anything. I think we just
need to ride this wave on out. We’re all adults here. We can come back to the drawing board
and figure out what we need to do here in the near future. But this is just not going to make a
significant change here. We haven’t had any increase thus far. I still get calls time and time
again in my district and even outside the district that they don’t have enough officers there. The
officers are not getting there on time. It’s taking thirty minutes to answer to a call. So it’s just a
problem we’re having in our local law enforcement department. And it’s not to say the Sheriff is
not doing all he can do but it’s just epidemic right now and we’re just going to have to figure
how to deal with that. But it’s not going to happen over night and it’s not going to happen with
this tax increase. Thank you, Mr. Mayor.
Mr. Mayor: Mr. Russell.
Mr. Russell: Mr. Johnson, if I may. That .4 would only cover the public safety raises
that were given last year. So that’s not additional dollars that’s the dollars that have already been
approved that you’re paying for with that .4. Just for the record.
Mr. Grantham: That’s for all of them.
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Mr. Mayor: Okay, we have a motion and a second. I think this has been very well
discussed. If there’s no further discussion Commissioners will now vote by the usual sign.
Mr. Holland, Mr. Mason, Mr. Hatney, Ms. Beard, Mr. Johnson, Mr. Bowles and Mr. Brigham
vote No.
Motion fails 2-7.
Mr. Russell: Mr. Mayor, we are required to do a, to come up with a millage rate today.
So it would be appropriate that we either continue discussion or another motion be made.
Mr. Mayor: Commissioner Hatney.
Mr. Hatney: I’d like to put in the form of a motion the idea that I discussed earlier
about the usage of the excess and the defining of the $250,000 and I’d like to put that in the
form of a motion
rather than to raise taxes at all.
Mr. Russell: And that would be, sir, if I can help you with that. It would be that we go
back to the adopted 2007 millage rates across all funds.
Mr. Hatney: Whatever.
Mr. Grantham: What is that rate?
Mr. Mason: What is that rate before we, Mr. Mayor?
Mr. Russell: 8.149 in the general fund, urban services is 17.8 with a rollback. So it’s
8.05. That includes a rollback for the lost local option sales tax numbers. .791 in the capital
outlay fund. Fire protection is 1.616. Light is 3.03 and no county bonds no urban services bonds
no other things there. So it’s what we approved in 2007.
Mr. Mayor: Okay.
Mr. Russell: The BID districts, urban service BID district 5 at 7.2 and urban service BID
district 6 at 6. They’re the ones that they approved for themselves.
Mr. Mayor: Okay, we have a motion. Do we have a second?
Mr. Holland: I second.
Mr. Mayor: Okay. Commissioner Bowles.
Mr. Bowles: Thank you, Mr. Mayor. Mr. Russell, if that is enacted I would like to know
what our uncommitted reserve fund balance will be for future operations.
Mr. Russell: Uncommitted reserve is 27 minus the 3., 345,000 away from it. I can give
you an exact number if you give us a few minutes.
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Mr. Hatney: The five won’t come out of the 27. The 350,000 will come out of there.
But the 5 mill won’t. I mean because that’s the excess will not come out of the 27.
Ms. Williams: --- (inaudible) additional cuts to get to that.
Mr. Hatney: Don’t have to do no cuts. Let’s just talk about what we’re talking about
today. We do not have to raise taxes today to go on if we use the surplus and that $350,000.
Mr. Mayor: Okay, we have a motion and a second. Commissioner Brigham.
Mr. Brigham: Can I ask Ms. Williams if that $22 million. Does that include the $10
million or not include the $10 million.
Ms. Williams: (Inaudible) could be redirected ---
The Clerk: Ms. Williams, could you?
Mr. Holland: Ms. Williams, could you go to the mike?
Ms. Williams: The $27 million does not include any re-appropriations for the $10
million dollars for MCG. So you would, it’s unreserved fund balance.
Mr. Brigham: Unreserved fund balance. So $10 million dollars is out.
Ms. Williams: $10 million dollars is in there. $10 million dollars is still in there.
Mr. Brigham: So we’re talking about then about a $17 million dollar ---
Ms. Williams: Yes, sir.
Mr. Brigham: --- plus the five we already took would bring us down to twelve?
Ms. Williams: Yes, sir.
Mr. Mayor: Okay.
Mr. Brigham: Mr. Mayor, I want to make a substitute motion.
Mr. Mayor: Okay, Mr. Brigham.
Mr. Brigham: Mr. Mayor, I’m going to propose a 3.5 mill increase in ---
Mr. Speaker: .35
Mr. Brigham: --- .35 mill increase in the general ---
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Mr. Speaker: (Unintelligible)
Mr. Brigham: No, we can’t go three I know that. .35 increase in the general fund and the
.022 increase in the fire fund. And I believe that is a much better deal than the other deal that we
have at this point in time because we can’t go to a $12 million dollar reserve fund.
Mr. Mayor: Okay, we have a motion. Is there a second?
Mr. Bowles: Second.
Mr. Hatney: Let me ask a question.
Mr. Mayor: Commissioner Hatney.
Mr. Hatney: Mr. Russell, a question. The Mayor has allowed me to ask you another
question. We’ve been talking about that $10 million dollars for the Gilbert Manor. I think that’s
what you guys are talking about.
Mr. Russell: Yes, sir.
Mr. Hatney: And when the property itself doesn’t cost but 6.8 anyway any you all were
talking about negotiating with four banks to cover that.
Mr. Russell: Yes, sir.
Mr. Hatney: Make up your mind now. What are we doing? You’re going to take and
put ---
Mr. Russell: If it comes reserved dollars ---
Mr. Hatney: But you aren’t going to really be spending it.
Mr. Russell: No. But if it’s reserved ---
Mr. Hatney: But you’re not going to really be spending it, Mr. Administrator, that’s what
I meant. You’re not going to be spending it.
Mr. Russell: Right.
Mr. Hatney: Okay. So you can call it anything you want to but it’s still that $27 million
dollars.
Mr. Russell: Twenty-two after you take the five out.
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Mr. Hatney: Now you done come seventeen back down twenty-two. If it was twenty-
seven all the time, what’s going to move it to twenty-two? Because the five mill is excess.
Mr. Russell: The twenty-seven includes the five million.
Mr. Hatney: Initially what y’all were talking now you said it’s. When you first started
talking about it, both of y’all said it didn’t, it was not included.
Mr. Bowles: Not including the deduction.
Mr. Hatney: That’s exactly what you said. Now all of a sudden you know everything
changes. Let’s stick with your story now. Stick with your story. Because we already agreed to
spend 3.1 million dollars more than we need to spend on Gilbert Manor. It only cost 6.8. They
can clean that up themselves. We’re digging a hole unnecessarily. There’s nothing wrong with
not raising the taxes (inaudible). Nothing whatsoever.
Mr. Mayor: Commissioner Mason.
Mr. Mason: I’m a little unclear about these numbers being tossed about because I
thought as well when we talked about the $27 million and I think Dr. Hatney asked what the 5.1
included in that and the answer was no. And so now I need to know is that 5.1 million included
in the twenty-seven. In addition to that I need to know and I understand about the unreserved
fund balance. I need to know that 10 million obviously is included in that twenty-seven that
you’re talking about. So that brings it down to seventeen in my mind. Now if you’re saying that
the 5.1 is included in that, now that has brought it now down to twelve just to a round number.
So are you telling me then that what we’re looking at is a $12 million dollar balance versus
seventeen plus the other ten from MCG would have been twenty-seven which is not really going
to be spent it’s going to be put off in a reserve status. Is that what you’re saying?
Mr. Hatney: That’s not what you said to start with. That’s not what neither one of y’all
said to start with. You did not say that. That 5.1 excess you say you have was not included
initially in the twenty-seven. But all of a sudden it is.
Mr. Mayor: Okay.
Mr. Hatney: Even if it’s that. The ten ain’t going to be spent. It’s not like we spend $10
million dollars. We still need to, even if we take the five from the twenty-seven you’re still
going to have twenty-two. You’re not going to have twelve you’ve got twenty-two. Because
you’re not going to spend the ten.
Mr. Russell: Reserve versus unreserved.
Mr. Mayor: Okay.
Mr. Hatney: But you’re not going to spend the money. You can call it reserve or
unreserved. It’s not going to be spent.
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Mr. Grantham: But, Mr. Mayor ---
Mr. Mayor: Okay.
Mr. Hatney: Let me finish now. I don’t cut y’all off when you’re talking.
Mr. Russell: I agree.
Mr. Hatney: It’s not going to be spent. Augusta will still have access; will still have that
$10 million dollars. It’s reserved but it’s not going to be spent. That’s what I’m saying. He’s
not going to spend it. It’s committed but it aint gonna be spent. You’re not going to spend it.
Mr. Russell: Right.
Mr. Hatney: At the end of the day you’re still going to have twenty-two. You can add it
any kind of way you want. You can take five (inaudible) when you add them all back together
you’re still going to have twenty-two.
Mr. Mayor: Commissioner Grantham.
Mr. Grantham: You know the ten million we’re talking about is a totally different subject
than what we’re talking about as far as the taxes go. That’s committed $10 million dollars and in
order for this government to use that $10 million dollars we’d have to go and get permission
from the banks to release those funds to us. We’re using that as a guarantee for the money that
we’re borrowing from the bank for Gilbert Manor. So yes it’s still our money, it’s in the bank
but in the event you’re going to use it you must get release on it.
Mr. Mayor: Okay, we have a, Commissioner Bowles.
Mr. Bowles: Thank you, Mr. Mayor. This may be a question for Donna. With that
getting us down basically if things come out the way without, with dipping into the reserves $5
million the $10 million being restricted for the deposits is that going to affect our credit rating at
the end of next years audit going from a 105-day surplus to a 42-day surplus?
Ms. Williams: I’m not sure quite how to start on this. The recurring use of fund balance
as a budgeting tool is frowned upon. This would be the first time within three years I believe
that we will have budgeted use of fund balance by swapping over the revenue that was
anticipated to come from your tax increase to a use of fund balance. I think that’s pretty much
the end of the first question. Now the $10 million dollars I am not sure. It would have to be a
disclosure in there and I think ---
Mr. Bowles: It would affect our ratio.
Ms. Williams: --- any agency would look at the notes associated with that disclosure as
to why it was reserved. And so you would really have to have some of your bond people to look
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at that and give you a determination. But my gut feeling is that, no, with the disclosures that
would be associated with that reserve is that it would not affect you.
Mr. Bowles: Thank you.
Mr. Russell: We don’t have any bond indebtedness at this point other than the SPLOST
dollars anyway.
Mr. Mayor: Okay, we have a substitute motion on the floor. And, Mr. Brigham, just for
the sake of everybody, if you could just or, Madam Clerk, if you could read the substitute
motion.
The Clerk: The substitute motion was to increase the general fund by 3.5 mill increase
and the fire fund .022.
Mr. Mayor: Commissioner Brigham was that ---
Mr. Brigham: .35 not, yeah, not 3.5.
The Clerk: .35 mill increase in the general fund and .022 increase in the fire fund.
Mr. Mayor: Okay, if there’s no further discussion Commissioners will now vote by the
substitute sign of voting.
Mr. Russell: The others remain as noted for the record.
Mr. Holland, Mr. Mason, Mr. Smith, Mr. Hatney, Ms. Beard and Mr. Johnson vote No.
Motion fails 3-6.
Mr. Mayor: Okay, Madam Clerk, we have a primary motion and a second on the floor.
Could you please read that one back as well?
The Clerk: The original motion was to revert back to the 2007 mill rate using the $5.1
million surplus and finding the additional $358,000.
Mr. Russell: If I may the urban service BID District 3 would 7.25 and urban service BID
District 6 would be 6. They’re the ones who pay taxes on it.
Mr. Mayor: Okay, if there’s no further discussion Commissioners will now vote by the
usual sign of voting.
Mr. Bowles, Mr. Brigham and Mr. Grantham vote No.
Motion carries 6-3.
Mr. Russell: Mr. Mayor, thank you. I look forward to working with you next year as we
continue to build our budget to move forward.
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Mr. Mayor: Madam Clerk, did we have an addition to the agenda for this meeting?
The Clerk: Yes, sir.
Mr. Brigham: Mr. Mayor?
Mr. Mayor: Commissioner Brigham.
Mr. Brigham: I don’t believe we can have an addition to a Called Meeting under our
rules. I believe it’s opposed to our rules.
Mr. Grantham: Special Called Meeting.
Mr. Mayor: Ms. Johnson.
Ms. Johnson: (inaudible)
Mr. Mayor: Okay. Then I guess we cannot add this to the agenda. Okay, if there’s no
further business to come before the body, which I don’t believe there is and we’ve got to get to
the committee meeting so we stand adjourned.
[MEETING ADJOURNED]
Lena Bonner
Clerk of Commission
CERTIFICATION:
I, Lena J. Bonner, Clerk of Commission, hereby certify that the above is a true and correct copy
of the minutes of the Called Meeting of the Augusta Richmond County Commission held on July
28, 2008.
______________________________
Clerk of Commission
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