HomeMy WebLinkAbout2018-08-14 Meeting AgendaSpecial Called Meeting Commission Chamber- 8/14/2018- 11:00 AM
1. LEGAL MEETING
A. Pending and potential litigation
B. Real estate
C. Personnel
Attachments
2. Motion to approve execution by the Mayor of the affidavit of
compliance with Georgia's Open Meeting Act.Attachments
3. Consider/discuss Administrator’s recommendation regarding
funding for street lighting. (Deferred from the August 7, 2018
Commission meeting)
Attachments
4. Consider the adoption of a Resolution establishing the tax
millage rate for calendar year 2018.. (Requested by the
Administrator )
Attachments
5. Depot Project. (Requested by Commissioner Bill Fennoy)Attachments
www.augustaga.gov
Legal Administration Committee Meeting
8/14/2018 11:00 AM
Legal Meeting
Department:Clerk of Commission
Presenter:
Caption:LEGAL MEETING
A. Pending and potential litigation
B. Real estate
C. Personnel
Background:
Analysis:
Financial Impact:
Alternatives:
Recommendation:
Funds are
Available in the
Following
Accounts:
REVIEWED AND APPROVED BY:
Cover Memo
Item # 1
Legal Administration Committee Meeting
8/14/2018 11:00 AM
Legal Meeting Affidavit
Department:Clerk of Commission
Presenter:
Caption:Motion to approve execution by the Mayor of the affidavit of
compliance with Georgia's Open Meeting Act.
Background:
Analysis:
Financial Impact:
Alternatives:
Recommendation:
Funds are
Available in the
Following
Accounts:
REVIEWED AND APPROVED BY:
Cover Memo
Item # 2
Legal Administration Committee Meeting
8/14/2018 11:00 AM
Funding for street lighting
Department:Administrator’s Office
Presenter:
Caption:Consider/discuss Administrator’s recommendation regarding
funding for street lighting. (Deferred from the August 7, 2018
Commission meeting)
Background:
Analysis:
Financial Impact:
Alternatives:
Recommendation:
Funds are
Available in the
Following
Accounts:
REVIEWED AND APPROVED BY:
Cover Memo
Item # 3
AUGUSTA, GEORGIA
STREET LIGHTING FUND UPDATE
COMMISSION WORKSHOP, JULY 2017
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STREET LIGHTING FUND UPDATE
Over the last few years, the fund that pays for street lighting
has experienced some challenges. Some of those challenges
include:
•The amount of taxes/fees collected have not kept pace with
the rate of increase of the cost of electricity.
•Cost of materials and maintenance have increased
significantly over the past few decades.
•Augusta has taken over responsibility and maintenance of
many new roadway lighting systems.
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STREET LIGHTING FUND UPDATE
COST OF ELECTRICITY INCREASE
Since the 1990s, the cost of electricity has risen significantly.
•According to data sent to us by Georgia Power and
Jefferson Energy Cooperative, the cost of electricity over
the past two decades has increased over 15%.
•This works out to about a 1% increase per year in the cost
of electricity on average.
•Many of the taxes/fees that go into the street lighting fund
were established years ago and have not been adjusted for
inflation or cost increases.
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STREET LIGHTING FUND UPDATE
COST OF ELECTRICITY INCREASE
The chart below shows the increase in the cost of electricity
provided by Georgia Power.
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STREET LIGHTING FUND UPDATE
COST OF MATERIALS AND MAINTENANCE
The cost of materials to maintain the system has risen over the
past few decades:
•The item with the largest cost increase over the past few
decades is poles and ballasts. In 1989, a replacement pole
could be purchased for about $800. Today, the cost is over
$2000. That is a increase of over 140%.
•Similarly, the cost of copper wire fluctuates slightly from
day to day, but the trend is usually upwards. Since the
1990s, the average cost has increased 250%.
•The cost of other materials such as light covers and blubs
have also gone up.
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STREET LIGHTING FUND UPDATE
COST OF MATERIALS AND MAINTENANCE
The chart below shows the increase in the cost of copper since
1989.
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STREET LIGHTING FUND UPDATE
ADDITIONAL STREET LIGHTS TO MAINTAIN
Just in the last five years, Augusta has assumed responsibility
for maintaining hundreds more street lights within the county
including:
•Deans Bridge Road between Glen Hill Dr and Georgetown
Dr
•Roadway lights at all I-520 interchanges
•Riverwatch Pkwy from 13th St and Furys Ferry Rd
•Wrightsboro Rd from Jimmy Dias Pkwy and Belair Rd
•Berkmans Rd from Washington Rd and Ingleside Dr
•Windsor Springs Rd from Tobacco Rd to Hwy 88
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QUESTIONS?
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Workshop on Street Lighting
July 13, 2017
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Challenges
• Electrical Rates have increased steadily
• Fee structure for street light billing has not
increased since consolidation
• More lighting has been added, increasing cost
• Lack of information for cost centers from
electrical providers
• Unreliable process to bill newly added areas
• Timing is critical to include on tax bills
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What is a Special Revenue Fund?
• GASB Statement No. 54 defines a Special Revenue Fund as:
“Special revenue funds are used to account for and report the proceeds of specific
revenue sources that are restricted or committed to expenditure for specified purposes other
than debt service or capital projects.”
• It further clarifies this definition with an explanation:
The foundation of each special revenue fund must be one or more specific revenue
sources. Additional resources can be added to the fund to supplement those revenues, but only if
the foundational revenue source(s) remain(s) a substantial portion of fund inflows.
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Post Consolidation Revenue Sources
•Direct Fee Billing – Suburban district customers receiving the
service. Billing appears as a separate line item on annual tax
bill
•Transfer from Urban Services – an internal transfer from the
ad valorem taxes collected in Urban Service District. The
former city did not identify specific fees for services but paid all
expenses from total tax collections.
•Transfer from General Fund – .1 mill was dedicated to cover
costs of “Arterial Lighting District” and has not been adjusted.
This millage generates approx. $450,000, but General Fund
transfers $1 million to Street Light Fund
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Financial Position as of
12-31-16
Street Light Special Revenue Fund
has a deficit fund balance at
12-31-16 in the amount of
<$440,572>
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2017
Amounts of Revenue Available
• Direct Billing $2,075,025
• Urban Services Transfer 1,623,530
• General Fund Transfer 1,000,000
Total Revenue $4,698,555
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Projected Expenses for 2017
Salaries and Fringe $ 245,000
Electricity $4,700,000
Traffic Supplies, Replacement
lights,
and other costs
$ 180,000
Total Projected Expenses $5,125,000
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2017 Expected Shortfall
8
Projected Revenue $4,700,000
Projected Expenses 5,125,000
Expected Shortfall <$425,000>
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Cumulative Effect
Deficit at beginning of 2017 <$440,572>
Plus expected 2017 shortfall <$425,000>
Amount needed to “break even” $865,572
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Complicating Factors
• Since three different sources of revenue are
used as funding sources, can we identify
which area(s) of funding are inadequate?
• What method should be used to generate
additional revenue? (millage rate or fee
increase?) These two methods affect
customers differently.
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Efforts and Strategies
1. Identify the cost centers
2. Review the billing structure and
methodology
3. Review the options
4. Pick a corrective action to avoid current
year deficit
5. Devise comprehensive plan for 2018
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Identify the Cost Center
• The Engineering Department, GIS, Finance,
Georgia Power and Jefferson EMC began the
process to inventory and identify each street
light fixture billed to Augusta.
• This inventory would then be tied to the
electrical bills so that cost centers could be
identified.
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Review the Billing Structure
• The simplified explanation of the rate billed to
Suburban Service customers is that it is a
formula based on a rate multiplied by the length
of the property owner’s road frontage.
• This Methodology is cumbersome to administer
and sometimes has an uneven impact on
neighboring property owners. For example a
corner lot has two sides with road frontage and
may pay double the amount of its neighbor.
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Options
and Future Goals
Immediate:Determine funding strategy for
current year to avoid increasing the deficit
position of the Street Lighting Fund. Changes
must be made for timely inclusion on the tax
bills.
For 2018 Billing Cycle:Total overhaul of
rate and billing structure.
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Who is Paying and
Where Do They Live?
15
Urban Suburban paying fee no fee
Residential 13438 57187 40216 16971
Commercial 2182 5165 812 4353
Exempt 1280 1702 397 1305
Total 16900 64054 41425 22629
* over 5000 parcels in the Urban District pay less than $100 total tax bill
in Suburban district
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Information From 2016 Billing
File (Suburban District)
16
Amount
Billed
22 bills over $500 $18,143.01
55 bills $300-$500 $20,629.12
375 bills $150-$300 $72,425.84
1294 bills $100-$150 $151,743.92
13443 bills $50-$100 $870,715.79
26548 bills $1-$50 $941,367.61
376 accts with zero bills 0
42113 2,075,025.29$
95.8% of total street light bills are under $100
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Methods to Generate Revenue
1. Mixed Tactics – uses both mill rates
and fees
2. Add additional fee to all existing bills
3. Add additional fee to existing bills
with different amounts based on
property use (Commercial or
Residential)
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Method 1
(not preferred)
18
Current Additional
Amount Amount Comment
GF Arterial 1,000,000$ -$ Trf had already been increased
need to adjust mill rate to cover
Urban 1,623,530$ 350,000$ Change urban mill rate .5 mill
problematic due to collections
Suburban billing 2,075,025$ 312,000$ Increase of 15%
total 4,698,555$ 662,000$ 5,360,555$ supports current budget bu
but does not eliminate
deficit
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Method 2
Add set amount to all parcels
19
Total Parcels Add'l Amt Generates
13,438
2182
41,425
57045 $15 $855,675
$20 $1,140,900
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Method 3
Add amounts based on use
20
Urban Suburban Add'l Revenue
Residential 13438 40216 $15 $804,810
Commercial 2182 1209 $30 $101,730
$906,540
Residential 13438 40216 $17 $912,118
Commercial 2182 1209 $40 $135,640
$1,047,758
Residential 13438 40216 $20 $1,073,080
Commercial 2182 1209 $50 $169,550
$1,242,630
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Objectives and Timeline
Objective Timeline
Inform governing body of Street Light
Fund financial position and present
options for corrective action
July 13 Workshop
q Commission approves revised billing
structure for 2017
July 18 or 25
q New billing amounts forwarded to Tax
Commissioner
Follows item above
q Tax bills are mailed August 12
q Staff pursues options for complete
restructure of rate and billing structure
Continuing – with goal of implementation
on 2018 billing cycle
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Total Urban Suburban paying fee no fee
Residential 70625 13438 57187 40216 16971
Commercial 7347 2182 5165 812 4353
Exempt 2982 1280 1702 397 1305
Total 80954 16900 64054 41425 22629
less:Blythe -426 -426 -426
Hephzibah -1941 -1941 -1941
Net of other incorportated areas 78587 16900 61687 41425 20262
Total parcels 80,954 Residential 68,258 *
Less Heph and Blythe (2,367) Commercial 7,347
Total parcels for calculations 78,587 Exempt 2,982
Total 78,587
Rate
Total Comm 50%
Parcels*> Residential Revenue
Residential 68,258 87$ 5,938,446$
Commercial 7,347 131$ 958,784$
Exempt 2,982 0 -$
Total 78,587 6,897,230$
less bad debt 5%(344,861)$
net revenue 6,552,368$
* Hephzibah and Blythe parcels excluded - all counted as residential
Revenue Collections at Various Billing Rates
Flat Rates to Generate $6.5 Million Revenue
(Hephzibah and Blythe excluded, exempt not billed)
in Suburban district
Attachment number 3 \nPage 1 of 1
Item # 3
Legal Administration Committee Meeting
8/14/2018 11:00 AM
Proposed millage rates for 2018
Department:
Presenter:Administrator Jackson and Finance Director Williams
Caption:Consider the adoption of a Resolution establishing the tax
millage rate for calendar year 2018.. (Requested by the
Administrator )
Background:
Analysis:
Financial Impact:
Alternatives:
Recommendation:
Funds are
Available in the
Following
Accounts:
REVIEWED AND APPROVED BY:
Cover Memo
Item # 4
20{ I Levy Proposed Galendar Options
Timeline if Rollback Rate is Proposed:
July 31 ,2018 commission sets 2018 proposed Milr Rates and
announces date that final rates will be approved
August 2,2018 Required 5 year history and Current Year Digest appear in
newspaper and posted to web site
August 14,2018 Commission adopts 2018 mill rates for each taxing district
(this meeting date must be included in advertisement- the date could
be any date on or after August 9)
Timeline if Rate is Proposed which exceeds Roilback Rate:
July 31 ,2018 Gommission sets 2018 proposed Mill Rates and
announces date that final rates will be approved
August 2,2018 Required 5 year history and Current Year Digest appear in
newspaper and posted to web site. lssue press release with
required language announcing tax increase. Advertise time
and date of first two public hearings.
August 9, 2018 Hold first two public hearings, advertise 3d meeting
August 16,2018 Hold third public hearing. Hold meeting to adopt mill rates
Subsequent Events:
After adoption of rates Tax commissioner and Tax Assessor meet with Department
of Revenue to submit digest for approval.
September 15 or Tax Commissioner mails bills.Before Current target date suggested August ??
Rollback rate >>> 5 year history, no hearing, can approve one week after advertisement
Exceed rollback rate >>> 5 year history, notice of intent to increase taxes, 3 hearings, takes 2 weeks fromadvertisement of history
Attachment number 1 \nPage 1 of 1
Item # 4
Schedule A
MILLAGE RATE BY FUND Calculated
Approved Rollback Difference
Rate Rate 2017 to
2017 2018 2018
COUNTY-WIDE GENERAL 16.003 16.055 0.052
SALES TAX CREDIT 6.217 6.299 0.082
COUNTY GENERAL FUND-NET M&O 9.786 9.756 -0.03
URBAN SERVICES GENERAL 10.868 10.989 0.121
SALES TAX CREDIT - URBAN 5.643 5.758 0.115
URBAN SERVICES DIST.-NET M&O 5.225 5.231 0.006
CAPITAL OUTLAY FUND 0.780 0.778 -0.002
FIRE PROTECTION 2.136 2.127 -0.009
BLYTHE-FIRE DISTRICT M&O 3.308 3.299 -0.009
COUNTY BONDS 0.000 0.000 0.000
URBAN SERVICES BONDS 0.000 0.000 0.000
URBAN SERVICE BID DISTRICT 5 0.000 0.000 0.000
URBAN SERVICE BID DISTRICT 6 0.000 0.000 0.000
Augusta -Richmond County, Georgia
Schedule of Proposed 2018 Millage Rates
08/14/2018
Attachment number 2 \nPage 1 of 1
Item # 4
RESOLUTION
RESOLUTION ADOPTED BY THE AUGUSTA-RICHMOND COUNTY COMMISSION
ESTABLISHING THE TAX MILLAGE RATES FOR CALENDAR YEAR 2018
RESOLVED BY THE AUGUSTA-RICHMOND COMMISSION, that the rates as set forth on
Schedule “A” hereto, for the calendar year 2018, are hereby levied against the taxable property of
said County within the County for its County-Wide General Fund Maintenance and Operations, the
Urban Services District, the Capital Outlay Fund, the Fire Protection Fund, and the Blythe Fire
District Maintenance and Operations Fund, respectively.
BE IT FURTHER RESOLVED THAT Steven Kendrick, Tax Commissioner, or his successor in
office, is hereby directed to collect said tax on the taxable property within said districts, except
exempted real property as provided by law, and except exempted personal property as provided
by law, for the calendar year 2018.
Hardie Davis, Jr., Mayor
Adopted this 14th day of August, 2018 AUGUSTA-RICHMOND COUNTY
___________________________
As its Mayor
Attest:
________________________
Clerk of Commission
Attachment number 3 \nPage 1 of 1
Item # 4
Legal Administration Committee Meeting
8/14/2018 11:00 AM
Depot Project
Department:
Presenter:
Caption:Depot Project. (Requested by Commissioner Bill Fennoy)
Background:
Analysis:
Financial Impact:
Alternatives:
Recommendation:
Funds are
Available in the
Following
Accounts:
REVIEWED AND APPROVED BY:
Cover Memo
Item # 5