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HomeMy WebLinkAbout05-28-1996 Meeting I I I FINANCE & APPROPRIATIONS COMMITTEE COMMITTEE ROOM - May 28, 1996 2:00 P.M. PRESENT: Hons. Larry E. Sconyers; J. Brigham, Chairman; Handy, Vice-Chairman; Bridges and Beard, members; Linda Beazley, Interim Administrator for Administration; Charles Dillard, Interim Administrator for Operations; Mary Grady, Internal Auditor; Gayle Scott of the Human Resources Department; Harriet Wilkinson of the Inspectors Department; Chief W. L. Maddox, Fire Department; Bat. Chief Dennis Atkins, Fire Department; Bill Carstarphen, Consolidation Project Manager; John Etheridge, Human Resources Director; Glenn Greenway and David Collins of the Finance Department; Jim Wall, Interim Attorney; North Williamson of the Tax Commissioners Office; Lena Bonner, Clerk of Commission-Council and Nancy Morawski, Deputy Clerk of Commission-Council. Also Present: Sylvia Cooper of the Augusta Chronicle, George Eskola of WJBF Television, Gale Mino of WBBQ Radio and Hons. Zetterberg, Todd, H. Brigham and Mays, Commissioners. The Committee first considered the salary adjustments in the Fire and Police Departments. Mr. Etheridge: This is mainly for information purposes because it is on the Public Safety agenda and we need to take up the discussion there because they need to make a recommendatiQn back to this Committee. Mr. Bridges: I move that we receive this as information. Mr. Handy: Second. Motion adopted unanimously. The Committee next received an update on the investment of Perpetual Care funds. Mrs. Grady: We have $338,000 in non-expendable funds and $446,000 in expendable funds in cash and investments. Mr. Bridges: I move we receive this as information. Mr. Brigham: I'll second that motion. Motion adopted unanimously. The Committee received an update of financial summaries as of May, 1996. Mr. Greenway made a presentation regarding revenues and expenditures on both the urban and suburban sides of the budget. Mr. Bridges: I move we receive this as information. Mr. Beard: Second. I Motion adopted unanimously. The Committee next considered a request to change Bond Trustee to Sole Source Trust Agent for both city and County Bond Trust Funds. Mr. Collins: The old City of Augusta currently has registered bonds in the vault and when interest and principal paYments come, they actually send them to the Accounting Department and they cut principal and interest checks. I'd like to go out on a bid and send it to all the banks in town and see if they can provide that service for us instead of doing it in- house and I'd like permission to do that. In the 1993 COPS NationsBank used to be the trustee and they were bought out by Bank of New York and we've had some problems and I'd like to go ahead and include that trustee in this bid. I'll bring it back in a couple of weeks for review. Mr. Beard: I move we approve the request to go out for proposals. Mr. Bridges: Second. I Motion adopted unanimously. The Committee discussed Intergovernmental Partnership for certain facilities. Mrs. Beazley: Mr. McKie has been meeting with the Augusta Golf Association about entering into a partnership with them about the Augusta Golf Course. Something will need to be done because the course is in such bad condition and it will have to be closed by July. Butch is proposing that we enter into a partnership to keep the course open and this will go before the Public Services Committee tomorrow. Mr. Beard: I move that we receive this as information. Mr. Bridges: Second. Motion adopted unanimously. The Committee next reviewed Amendment 73 and donations for balance of year. Mr. Greenway: We have prepared a schedule which shows the '94 paYments and the '95 requests and the '95 paYments. Butch wanted me to pass out this information for you to see. Mr. Chairman: We'll have to address this in the coming I I I I months but just need to receive it as information now. Mr. Bridges: I move we receive it as information. Mr. Beard: Second it. Mr. Chairman: I'd like to see us this year to limit where we don't give any more than one organization 10% of these funds. We have discussed that in the past but have never voted on it. I'd like for you to consider it but I won't make it part of this motion but I think we do need to limit these funds to any given organization since there's only so much to go around. Motion adopted unanimously. The Committee next discussed the preliminary 1995 City Financial results. Mr. Greenway: Butch was working on this as well as items 8 and 9 and I don't really have anything on it. Mr. Chairman: We probably just need to delete these until Butch can be here to discuss them. Mr. Beard: I so move. Mr. Bridges: Second. Motion adopted. (Item 8. Report on Urban cash availability as of May 1996 and cash forecast for the remainder of the year.) (Item 9. Approval of tennis courts to be refinished at Newman Tennis Center.) Communication from Ms. Nancy Bonner stating we discussed the balance owed to Business Information Solutions (BIS) for the Criminal Justice Information System (CJIS). The original contract amount was $534,200. To date, $227,035 has been paid for software and services rendered. Between now and the end of the year, another $200,000 will be due to BIS for the prosecution, GCIC, Superior, State and Magistrate Court implementations and acceptances. The remainder of $107,165 will be requested during the 1997 budget process. Request a transfer of $200,000 from the "Capital Recapture Fund" to the CMS "Capital Fund Account # 064151000862" for the above mentioned expenditures, was read. Mr. Bridges: I move we accept the recommendation. Mr. Beard: Second. Motion adopted unanimously. Communication from the Interim Attorney submitting a memo from North Williamson regarding the need for software to be written to adjust for the change in interest rates from 15% annually, which was in effect until July 1, 1994, and 12% thereafter, was read. I Mr. Wall: The cost for this would be approximately $4,000. Mr. Greenway: This is unbudgeted. Mr. Bridges: I move that we approve expenditure of this to change the interest rate to 12%. Mr. Beard: Second. Motion adopted unanimously. Communication from the Interim Attorney submitting a new Certificate for the distribution of the 1% Local Option Sales Tax. This will adjust Blythe's percentage, with no resulting change to the City of Hephzibah, was read. Mr. Bridges: What has happened here is back in 1995 when the City of Hephzibah contested their tax distribution, they thought it was too low and it went back to the state. The state agreed with the City of Hephzibah and it was increased but it cut I into the City of Blythe's portion of the 1% sales tax. That's were part of it came from. We're talking about $20,000 a year that would be taken out of the County's portion and go into the City of Blythe which would be used for some much needed capital improvements in that area. So this is to alleviate that situation in the City of Blythe. Mr. Wall: I think it approximates out to about 25% to 27%. Mr. Collins: This year it will be .27 percent. But as the sales tax grows to $25,000, it becomes a smaller percentage. Eventually it will get down to the .17. Mr. Wall: The .27 would stay in place until you had another certificate. It would be $25,000 this year, next year it might be $26,000 and the following year $27,000. The incremental dollar amount would grow. Mr. Bridges: I move that it be approved as listed in our book. Mr. Handy: Second. Motion adopted unanimously. Communication from the Interim Attorney submitting a proposed contract for the 1% SPLOST project for the Lucy Laney Museum, was read. I I I I Mr. Wall: This is the contract for them to get underway with their project. Mr. Handy: I so move. Mr. Bridges: Second. Motion adopted unanimously. The Committee next discussed the financing (tax allocation) for the Coliseum Authority. Mr. Todd: I had requested Mr. Wall draw up a proposed Resolution on how we would allocate the sales tax for the Coliseum Authority. We have a contract that we are supposed to be going by in that 30% of the beer tax is to be paid to the Coliseum Authority as trustee of the bonds. I am suggesting that we go by that contract that would pay the percentages to the trustee of the Coliseum Authority bonds and that we don't allow the Coliseum Authority to co-mingle the funds. Mr. Wall: When the City and County both adopted a new alcohol Ordinance, we continued the rates as they were in the County Code. Those ranged from a high of 62% down to a low of 47% and was based upon the size of the containers. The contract Mr. Todd is referring to says that at least 30% of the beer excise tax would go to the Authority. What I have done in this Ordinance is say that not more than 30% of the beer excise tax would be paid and allocated to the Authority. The money is paid to the trustee and then the trustee is then obligated to apply the money first to the bond paYments and after they have done that, they can pay any excess into the regular operating fund or at least that's typical of most trust instruments but I'm not positive about this one. This limits it to 30%. Mr. William Calhoun: There is no way that the Coliseum Authority can be independent and self-sufficient. We have tried to have meetings and have been unable to get a quorum at times. The Finance Committee met today and will endeavor to cut expenses. If you cut the funds except for the bond paYments, I can assure you we won't be operating by the end of the year. Mr. Wall: This would not affect the hotel-motel tax. This Ordinance simply follows the contract which says at least 30% of the beer excise tax and what the Ordinance does is say not more than 30% and limits the amount of the beer excise tax to 30%, which is what the contract calls for. Mr. Calhoun: Well, I have no objection there. I was under the impression you were going to cut what we were receiving. Mr. Wall: Well, this would cut it by approximately $440,000 a year. Mr. Calhoun: It's my opinion if you do that, we won't be operating. Mr. Beard: I think this needs a little more discussion. I would like to move that we accept this as information. Mr. Handy: I'll second it. Mr. Bridges: I'd like to make a substitute motion that we accept the revised Ordinance that limits the expenditures to 30%. Mr. Chairman: Second. After further discussion, Mr. Chairman: We'll vote on the substitute motion first. Motion ties with Mr. Beard and Mr. Handy voting "No". Mr. Chairman: That fails so we'll now vote on the original motion. Motion ties with Mr. Bridges and the Chairman voting "No". Mr. Chairman: That also fails so it now goes to the Commission. ADJOURNMENT: There being no further business, the meeting was adjourned. Lena J. Bonner Clerk of Commission-Council NWM I I I