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HomeMy WebLinkAbout07-22-1996 Meeting I I I FINANCE & APPROPRIATIONS COMMITTEE COMMITTEE ROOM - July 22, 1996 2:00 P.M. PRESENT: Hons. Larry E. Sconyers, Mayor; J. Brigham, Chairman; Handy, Vice-Chairman (late); Beard (late) and Bridges, members; Charles Dillard, Interim Administrator for Operations; Jim Wall, Attorney; Bill Carstarphen, Consolidation Project Manager; A. B. McKie, Jr., Interim Comptroller; Mary Grady and Glenn Greenway of the Finance Department; John Etheridge, Human Resources Director; Moses McCauley and Gayle Scott of the Human Resources Department; Tom Wiedmeier, Director of Water Pollution Control; Max Hicks, Director of Utilities Department; Kip Plow- man, Interim Internal Auditor; Lena Bonner, Clerk of Commission- Council and Nancy Morawski, Deputy Clerk of Commission-Council. Also Present: Sylvia Cooper of the Augusta Chronicle, other members of the news media and Hon. Henry Brigham, Commissioner. Mr. Brigham: We will first look at some items that are just for information. The Committee first considered a report from the Comptroller regarding the Audit Management Letter. Mr. McKie: There are two important issues in the management letter. The first was the failure to reconcile certain checking accounts in the hands of some agencies. We have spoken to those agencies and this was rectified before the end of 1995. Another issue was in the Clerk's Office regarding the issuance of cash receipts without sequential numbers and they have now begun using receipts with numbers so that has been taken care of. The Committee next considered a proposal for Employee Pension Questionnaire. Mr. McKie: We are considering consolidation of pension plans or what to do with pension plans in the new government. Before any recommendations are made, we thought it would be appropriate to poll the employees concerning their desires and their opinions about the pension plans. We are giving them some brief information about the plans along with a questionnaire and we will meet with department heads afterwards to discuss it. We will present the results to the Commission when the process is completed. The Committee next considered the report by the Comptroller regarding the delay in opening the Consolidated Banking Account. Mr. McKie: On April 8 Finance approved a recommendation from the Finance Department that we go to a consolidated banking arrangement. This was awarded to Allied Bank and was ratified on April 16 by the full Commission. We promised to have that done by June 30. We did not get that done on June 30. Allied knew that was a target date and it was contingent upon our having one financial package and one general ledger system so we could keep up with it. We did not want to try to close some 25 to 30 bank I accounts and start that up in the midst of trying to finish an audit and worrying about a mid-year review and trying to keep up with something manually that can be very complex. We plan to have this done just as quickly as we can. We need to be on one system and one of our suppliers has insisted upon additional fees for use of the software, something that we had not counted on, and Mr. Wall and Mr. Wittke are negotiating about that now. This is the principal reason for the delay. I talked with the bank and told them I'd like to have something done by September 30; however, everything was predicated upon our ability to have that one system. It was no problem with them. We could possibly close one of our two checking accounts and move that over there and I can discuss this with them. Mr. Chairman: Why don't you see what their feelings are and report back to us? Mr. McKie: I will. (Mr. Beard enters the meeting) The Committee next heard a status report from the Interim Internal Auditor regarding the water and sewer rates. I summary current projected revenue Total projected expenses Projected net income available $31,400,000 (27,300,000) $ 4,100,000 The effect of implementing a levelized billing system for the sewer rates would be a decrease in projected revenue of approx- imately $320,000 annually. All residential sewer rates should decline since the water usage is based only on the winter months. Additionally, the current projected revenue is approximately $340,000 higher than the actual previous combined revenues. After a lengthy discussion of the matter, Mr. Beard: I move that we receive this as information. Mr. Bridges: I'll second that. Motion adopted unanimously. The Committee next considered a report from the Interim Internal Auditor regarding the Sheriff's and Fire Department Salary Policies. Overall The Human Resources Department developed a good salary table based on 28 different pay grades with each grade having 20 pay steps. Each professional rank was assigned a pay grade and I I I I placed on a step within that grade. There were no salary reductions. If a salary was above the classified grade and step, it was frozen. The salary equalization plan only considered the current employee pay and did not consider the value of the employee's total compensation such as health, disability and retirement benefits. Since employees work for both a salary and benefits, it is important to quantify the cost (hourly or annually) of the total compensation package of each employee to actually equalize compensation. If the employee's compensation package is equalized one piece at a time, it could cost you more money overall. Therefore, I think it is important for you to quantify all the compensation components before additional changes are made. Total compensation Urban $ 12 $ 1 .L2 $ 16 Current Salary Health Benefits Retirement Benefits Total Compensation per hour (Example) Suburban Equalized $ 15 $ 15 $ 1 $ 1 ~ .L2 $ 17 $ 19 Sheriff The Sheriff's Department has traditionally followed the above salary table. They were able to systematically convert the former Augusta Police Department salaries to the corresponding County salary grades. The salaries appear consistent and consider approximate years of service and years in rank. Generally, the former APD officer's salaries were 25% lower than the Sheriff's officers before the adjustments which represents average annual increases of $4,400. The privates/deputies' salaries between the two departments were not significantly different and represented an average annual increase of $1,200. The Sheriff's Department has adopted a detailed operations and procedural manual. Overall The salary adjustments appear to be systematic and consistent with the Human Resource Department's salary table. Fire The Fire Department has not traditionally followed the above salary table which means it was not possible to use the same systematic conversion used in the Sheriff's Department. The equalization method resulted in assigning a salary to a rank of service regardless of the years of service in rank, duty and responsibilities, and hours worked. The former AFD officer's salaries were 25% lower than the former RCFD officer's before the adjustments which represents average annual increases of $7,200. The former RCFD private's salaries were lower than the former AFD and represented an average increase of $2,600. Overall 1. The equalized salaries are based on annual pay and not on actual hours worked. Some firemen (fire suppression) work shifts based on 108 hours a pay cycle and others (administration) work on an 80-hour cycle. Although most firemen in the same rank will make the same annual salary, an officer in administration will make as much as $5 per hour more than the same ranking officer in fire suppression. Suggestion Consider equalizing pay I based on the number of hours worked and level of risk and responsibility not on rank alone. 2. The Human Resources Department was unable to differentiate officers' salaries based on years of service since most salaries were placed at the maximum for their pay grade. suggestion Develop a plan to move these future salaries in line with the County's salary table based on years of service, responsibility and performance level. 3. I noticed several minor matters which do not appear to be a problem. A private plumber was classified and paid the same as the private drivers. Two former mechanics were reclassified and paid as privates. One Captain in fire safety has a lower salary than the other Captains. 4. I was unable to review the operating and procedure manuals since the Fire Department is currently revising its operations manual and will adopt the County's employee policy and procedure manual when complete. Suggestion During the revision of the operations manual, the department should clearly define policies for the following areas: Equipment repairs and maintenance schedules, personal use of equipment (equip & cell phones), promotions, activity logs and status reports (equip & personnel), overtime policies, incident reports (damaged equip), purchasing and inventory procedures. After a lengthy discussion of the matter, Mr. Beard: I move I that we accept this as information. Mr. Bridges: I'll second it. Motion adopted unanimously. The Committee next considered approval of a $25,000 grant to the Georgia Golf Hall of Fame for operating assistance. Mr. McKie: This is for operating assistance to them. After a short discussion, Mr. Beard: I move for approval. Mr. Chairman: I'll second the motion. Motion adopted unanimously. The Committee next discussed the Amendment 73 Allocation. Mr. McKie: This allows the government to donate to various organizations. We are recommending a total appropriation this year of $75,000. We do have an excess funds item of $12,000. Mr. Bridges: I move that we forward this to the Commission I without a recommendation. Mr. Beard: I second. I I I Motion adopted unanimously. The Committee next discussed Ad Valorem Tax Rates for 1996. Mr. McKie: We've completed our review of the millage rates for this year, along with the digest as presented by the Tax Assessor, and we recommend the millage rate not be increased either for the urban or suburban areas. (Mr. Handy enters the meeting) After a short discussion, Mr. Bridges: I move we receive this as information and hold it until the next Committee meeting. Mr. Beard: Second. Motion adopted unanimously. At this time Mr. Ken Fields of Cherry, Bekaert & Holland made a presentation regarding the review of the 1995 City Financial Results. Mr. Bridges: I move that we receive this as information. Mr. Beard: Second. Motion adopted unanimously. Communication from the Interim Comptroller recommending that all agency requests for social services be required to undergo certification by DFACS before submission to Augusta-Richmond Commission-Council for funding. This certification would include but not be limited to the following: 1. Legitimacy of Organization 2. Financial Status 3. Non-duplication of services 4. Inspection of Program delivery at site. If you approve this will become a formal policy and we will work with DFACS to implement, was read. Mr. McKie: We have requests from many agencies and we find it difficult to assess whether or not there is duplication of services. We will begin implementing this in 1997. Mr. Beard: I have a little problem with DFACS being the only agency to work with this. Mr. McKie: We can refine it a little further if you like and bring it back to you. We wanted to have some methodology for evaluating requests. After further discussion, Mr. Beard: I move we receive this as information for further refinement. Mr. Bridges: Second. Motion adopted unanimously. I Communication from the Human Resources Department submitting a request for Early Retirement for Robert J. Etterlee, was read. Mr. McKie: We recommend approval of this. Mr. Beard: I so move. Mr. Bridges: Second. Motion adopted unanimously. Communication from the Attorney requesting approval of an Engagement Agreement from Qualified Plan Administrators, Inc. regarding Richmonp County, Georgia 1945 and 1977 Defined Benefit Plans Administration, was read. Mr. McKie: This is for the administration of the pension plans. We recommend that this be approved as it takes a considerable burden off of the Finance Department. Mr. Bridges: I so move. Mr. Beard: Second. I Motion adopted with Mr. Handy voting "Present". Communication from Harry D. Revell requesting consideration of the abatement of taxes on 203.59 acres (Map and Parcel No. 178-0-008-00-0) of land in the 86th D.G.M. (South Augusta Recreation Complex) which the Commission-Council purchased from Oliver Owens, Paul V. Davis and Robert L. Meybohm on July 16, 1996. The sellers' prorata share of taxes, based on last year's tax bill on the subject property, was collected at closing and I am forwarding check in the sum of $1,267.44 to the Tax Commissioner to be applied to that account, was read. Mr. Beard: I so move. Mr. Bridges: Second. Motion adopted unanimously. Mr. Wall: I had two things I'd like to add to the agenda. There was no unanimous consent to add the items to the agenda. Mr. Handy: Butch, on item #4, do you remember last week I gave you a letter asking for some information which I did not receive. I I I I Mr. McKie: I put in a call for you. Mr. Handy: Then you come and put it on the agenda to report to the full Committee. One, as a Commissioner, when I ask a department head for a report, I mean just that. Two, as Mayor Pro Tern for the same as the Mayor would have told you something, I should have still gotten my answer and three, I don't need an interim department head to disobey what I asked him to do. I should have had my letter in my box. If you wanted to make your report here, it was still fine but I should have had my letter. ADJOURNMENT: There being no further business, the meeting was adjourned. Lena J. Bonner Clerk of Commission-Council NWM