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HomeMy WebLinkAbout02-12-1996 Meeting I I I .~ FINANCE & APPROPRIATIONS COMMITTEE COMMITTEE ROOM - February 12, 1996 2:00 P. M. ,/ PRESENT: Hons. Larry E. Sconyers, Mayor; Brigham, Chairman; Handy, Vice-Chairman; Bridges and Beard, members; A. B. McKie, Jr., Controller; Charles Dillard, Interim Urban Services Administrator; Linda Beazley, Interim Suburban Services Administrator; Jim Wall, Interim Attorney; David Collins and Marcus Lewis of the Finance Department; W. S. Hornsby, Asst. Administrator; Nancy Morawski, Deputy Clerk of Commission- Council and Betty Murphy of the Clerk's Office. Also Present: Wayne Partridge of the Augusta Chronicle, Gale Mino of WBBQ Radio, George Esko1a of WJBF Television, other members of the news media and Hons. Zetterberg and H. Brigham, Commissioners. Communication from the Chief Deputy Tax Commissioner regarding a request from Aubrey F. Clark for tax refund on property at 1025 Northwood Drive stating per your request of January 29th directed to Harrison Sears regarding a breakdown of taxes for 1989, 1990 and 1991, we enclose said breakdown which indicates amounts refundable if the Commission so directs. Please note that no refund is due for 1989, as an exemption was already in place from a prior owner, was read. Mr. Wall: I think you can go back three years but when you go back beyond three years, I don't believe you have the authority to grant this kind of refund. Mr. Bridges: I move that we deny this. Mr. Beard: I second it. Motion adopted unanimously. Communication from the Interim Attorney with reference to Lawton B. Evans School property, was read. Mr. Wall: The Board of Education would like to sell this property. The City of Augusta, when it conveyed the property to the School Board, retained a reversionary interest in the property. City Council discussed it last year and placed a price on that reversionary interest and I cannot tell you what that price was. The Board of Education is willing to swap collateral and they are going to use the proceeds from the sale of this property toward the Dav~dson Fine Arts School. They will swap a reversionary interest in that property if we would like it but they need to be able to convey free title to this property. At one time there was a sales contract where the Board of Education had the property sold but because of the City's - they put a price tag on the reversionary interest in the property. Reversionary interest basically means that the City conveyed the property to the school as long as it was used as a school and at such time as it was sold then it would revert back to the city of Augusta and they want to be able to convey free title. The consolidated government may want to get out from under this property. It has asbestos in the building and they are going to have to clean up the property. I'm recommending one of two things. That we either quitclaim the reversionary interest over since it goes to the School Board and they will use the proceeds of that toward the Davidson Fine Arts or as an alternative, if you want to keep that reversionary interest alive, just exchange the reversionary interest in this school for a reversionary interest in a pro-rata share of the Davidson Fine Arts property. I would recommend you quitclaim the reversionary interest to the Board and let them sell it and dispose of the property and apply it against the Davidson Fine Arts. Mr. Bridges: I move we quitclaim the reversionary interest to the School Board and they will hold us harmless of any asbestos abatement or any other liability. Mr. Beard: Second. Motion adopted unanimously. I The Committee next considered approval of a lease agreement between the State of Georgia and Augusta-Richmond County Commission-Council regarding the lease of Building #1, Unit #1 to I be used for the Motor Vehicle Tag Office. Mr. Beard: I move it be approved. Mr. Bridges: Second. Motion adopted unanimously. Communication from Mr. David Collins, Financial Analyst, stating as of January 1, 1996, the City of Augusta had $10,415,000 in Water and Sewerage Revenue Bonds outstanding and Richmond County had $18,194,816 in Water and Sewerage Revenue Bonds outstanding. As long as these bonds remain outstanding, the consolidated government must maintain two water and sewer districts, account for them separately and maintain compliance with the separate bond covenants. In addition to this administrative burden, any future revenue bonds would be complicated by the existence of two separate water and sewer districts and the requirement of meeting the additional bonds test for each district. I would suggest that we restructure our bonds with a consolidated water and sewer revenue refunding issue. This issue would be structured to produce level debt service for the life of the bonds in order to reduce the debt service "hump" in the early years of the current debt service structure. This hirs' immediate significant cash flow advantages, I as well as substantial net present value savings. I believe this kind of restructuring is achievable with the consolidation - with the argument to the rating agencies and bond insurers being that I I I ~ the refunded issues were not issued in coordination. I would recommend that this refunding be approved. It would facilitate the immediate consolidation of the two water and sewer departments, produce a NPV savings of $592,000 and provide $2.4 million in cash flow relief this year alone. It would also allow you to lower the tap fees in south Richmond County since new bond covenants would be drafted for the consolidated system, was read. Mr. Beard: I move we accept it as information. Mr. Bridges: I second that. Mr. Chairman: We'll receive that as information and ask the Commission for further action. Motion adopted unanimously. The Committee next heard a presentation of unaudited 1995 results. Mr. McKie: The results for Richmond County for general fund revenues were $50 million, special revenue accounts, $13 million, debt service from taxation, $806 thousand and capital projects, $23,463,729 with total revenue of $87,812,636. Expenditures were general fund, $49 million, special revenue, $15 million, debt service, $849,000 and $6,846,311 on capital projects for a total of $71 million. This placed us $16 million roughly revenues over expenditures for the year. The next few pages give you details by departments. Mr. Beard: I move we accept it as information. Mr. Bridges: Second. Motion adopted unanimously. The Committee heard a proposal for water rate structural changes. Mr. McKie: These calculations have been done by ZEL Engineering, myself, Max and George. They have come up with a different set of revenue numbers in total and we feel that they will generate some $31.6 million, $20.9 million on the City side, but we have not been able to get the printed books revised by ZEL today. Mr. Chairman: I think I received mine Friday. I think Engineering Services will take this up later and we can let them do that at that time. Mr. Bridges: I so move. Mr. Beard: Second. Motion adopted unanimously. The Committee next considered a proposed RFP for consolidated banking to all banks. I Mr. Collins: I am requesting that you allow me to send this request for proposals out to all the banks, including the two smaller banks in Augusta-Richmond County, and the dates are on there. I'll compile the results and bring it back before you. Mr. Beard: I so move. Mr. Bridges: Second. Motion adopted unanimously. At this time Mr. Mark Knowles, Manager of Local Government Services for the Georgia Municipal Association, made a presentation to the Committee regarding the GMA lease program. Mr. Bridges: I move we receive this as information. Mr. Beard: Second. Motion adopted unanimously. Communication from the Controller recommending a methodology I and funding to implement two ideas regarding inner city cleanup and flex time. We have four sources of labor: County workers, Community Service workers, prisoners and neighborhood citizens. We should use all four because each group has its own disadvan- tages that will hinder any concerted effort. For example: County Workers: Weekends are overtime. Also, they have regular weekday duties. Prisoners: Need guards and transportation. They also don't work in the rain and other conditions. Community Service: Need intense supervision and are in constant turnover. Citizens: Many can devote only a short period of time. They are primarily interested in their neighborhood and most expect the government to provide this type of service through their tax dollars. We need projects which will both help the community and bring people together. By people, I mean not only citizens but leaders working together for all to benefit. This could quickly build a base for cooperation and further community projects. We have a wealth of talent on the Council/Commission that can take a direct part in both planning and supervision. If we put several ideas together this is what we might do. Overall Object: Block-by-block total community cleanup. 'I Perhaps blocks from different neighborhoods traveling to help each other. We provide additional labor, security, incentives (to I I I those workers) during high visibility times (weekends) . Funding: CDBG funds to hire guards, security and reimbursable items. CD reimburses us. Transportation: Donated school bus and loaned buses (school board) or City buses to move volunteers. Separate transportation for prisoners. Incentives: Block party, cook outs, street dance, whatever after the work is done. Public recognition to areas & people. Flextime: Go to flex schedule so as to make County workers available (without additional costs) to supervise and work. This includes administrative people. Flex time would allow longer hours for citizens to use out services as well. Other Equipment: Use idle City commercial garbage bins and trucks to haul to landfill. Other: Guards would be employees of Metro Augusta Public Services a newly formed 501 (1)(3) Corp. for employees contracted to us. Also, Sheriff Webster has promised stockade guards and prisoners. When: Develop plans now. Get approved at the second February meeting and start March 15th. Where: Set up a task force with an in-charge person with others from public works or wherever. These need not be only department heads. This program would set several precedents not the least of which is CD funding that differs from historical use. Also, I believe this could start us on the path toward a mindset of a truly consolidated community, was read. Mr. Beard: I would like to see us or the Mayor appoint a committee to develop this and continue with the clean up crew that was working until the committee can work out the details about how this will be done. I'll move that we ask the Mayor to appoint a committee to work out the final details of this plan to supplement it until it can be implemented. Mr. Bridges: Second. Motion adopted with Mr. Handy voting "Present". Mr. Handy: There is a lot of clean up to be done, such as in the Hyde Park, Turpin Hill and Nellieville areas, and it needs to be done soon. The Committee next considered information regarding placement of ATM's in the Municipal Building. Mr. Lewis: We received responses from three banks, Wachovia, First Union and NationsBank, for the installation of an ATM machine. Looking at their proposals, Wachovia has the best package and anyone who uses the machine will not be charged a fee for the service. They also want to provide other benefits to the I employees. Mr. Handy: I move that we receive this as information until we get a chance to go over it and then come back to the full committee at the next meeting. Mr. Beard: Second. Motion tied with the Chairman and Mr. Bridges voting "No". Mr. Chairman: Before we leave, I'd like to appoint a sub-committee composed of Mr. Bridges and Mr. Beard to meet with Mr. McKie to go over the presentation of reports to the Commission and the time frames that we want these reports presented as to cash balances. ADJOURNMENT: There being no further business, the meeting was adjourned. Nancy W. Morawski Deputy Clerk of Commission-Council NWM I I