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Minutes for the Finance Committee meeting on February 20, 2003.
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Finance & Administration Committee Minutes
Thursday, February 20, 2003
4:30 PM
Members Present: Alec Farmer, Darrel Dover, Jim Hargis, Ann Williams, and Harold Perrin. Others present were: Jim McKinnon, Grants Coordinator; Paul Sims of the Arkansas Highway and Transportation Department; Gary Delporto of the Federal Highway Administration; Jeff Hawkins, Director of the Northwest Arkansas Regional Planning District; Suzanne Hackney, Human Resources Director; Donna Jackson, City Clerk.
Councilman Dover moved, seconded by Councilman Hargis for the approval of Finance & Administration minutes from a Special Called meeting held January 28, 2003 and from the regular scheduled meeting held January 14, 2003. All members voted aye.
GRANTS
The committee heard comments from various sources regarding the establishment of a Metropolitan Planning Organization (MPO). Mr. Jim McKinnon introduced Mr. Paul Sims of the Arkansas Highway and Transportation Department who explained as a result of the 2000 Census, the U.S. Census Bureau designated Jonesboro as an urbanized area. As an urbanized area, or UZA, certain U.S. Department of Transportation requirements become effective. Mr. Sims explained they hoped to have the MPO for the Jonesboro area established by July 1, 2003 with $40,000 being provided by the state for start-up funding. Once established, the MPO could expect approximately $73,000 to be matched with 20% local funding. The following cities have been contacted regarding their participation in the MPO and would be defined as the Jonesboro Area Transportation Study or JATS: Jonesboro, Bay, Brookland, Bono, and Lake City. The requirements for urbanized areas include: Defined study area, Established Bylaws, Agreement of Understanding, Cooperation Agreement, MPO Designation and Policy Board by the Governor. Mr. Gary Delporto, Planning & Research Engineer with the Federal Highway Administration explained the Policy Board is charged with making decision policies and approving procedures of the planning body relating to transportation for the urbanized area. They would approve long-range and short-range plans and a transportation improvement program. Mr. Jim McKinnon, Jonesboro Grant Coordination, explained they were trying to establish the study area for now and adopt the by-laws and policies once the UZA has been established. He stated the Executive Committee would be made up of the following representatives: 3 Jonesboro, 2 Craighead County, 1 Bay, 1 Bono, 3 Arkansas Highway Department, and 1 from Lake City should they decide to join.
Discussion followed with many questions being asked and answered. Councilman Hargis questioned about the initial set up of an MPO, and Mr. Jeff Hawkins, Executive Director for NW Regional Planning and former City Planner for the City of Jonesboro, explained it would be in the best interest of the area if the membership, bylaws, voting structure and planning area were all included in the initial agreement. Councilman Farmer stated the MPO had been described as a “clearing house” for different planning organizations, and determines the priority for how federal highway funds are distributed. He questioned how many sources of revenue the MPO would control. Mr. Delporto said it would basically control transit and highway funds, but Mr. Hawkins said it depended on who was designated as the MPO. He explained an MPO could be designated to receive and disburse all kinds of different federal funds. Mr. Hawkins encouraged the committee to develop and MPO with some legal status and standing because if an MPO is going to receive and disburse funds it needs to be authorized to do so under state law. Mr. Hawkins provided copies of the State Planning Statutes, both for Regional Planning Commissions (§14-56-500) and City Planning Commissions (§14-56-400). Councilman Farmer questioned what the best approach would be for establishing an MPO. Mr. Sims recommended using Jonesboro’s planning staff and hiring the most qualified person with a transportation planning and traffic engineering background to oversee it. Councilman Perrin stated the position of Director could be anyone since they would just be responsible for coordinating everything. Mr. Hawkins provided Federal Regulations explaining the duties of an MPO Director. Councilman Farmer raised questions regarding the adoption of the bylaws. Mr. McKinnon responded saying the Executive Committee would create the bylaws once the study area was approved. Mr. Hawkins quoted Federal Highway guidelines saying the MPO with planning boundaries and bylaws that include membership and voting structure should be established and designated by an agreement between local officials and the Governor, and recommended it be a legal entity authorized to receive and disburse funds. Councilman Farmer asked that the cooperation agreement specify who the contracting authority would be and to provide a copy of the bylaws to committee members. Mr. McKinnon stated they could do that but would have to amend Bono and Bay cooperation agreements. Councilman Farmer questioned Mr. McKinnon as to why the bylaws were not being approved along with the Cooperation Agreement. Mr. Farmer responded saying as a rule he does not sign contracts referencing other agreements, and requested Mr. McKinnon to make the necessary changes to the Agreement of Understanding and the Bylaws.
FINANCE
Mr. Larry Flowers, Finance Director reported the sales tax was up $30,000 over January of last year, and there has been a decline in fines collected over the last three or four years. Mr. Flowers explained there seemed to be a connection with the payment plan implemented in the judge’s office and the decline in fines collected. He stated Mayor Brodell has requested a list of all outstanding fines.
Councilman Dover moved, seconded by Councilwoman Williams to present an ordinance to transfer funds from the Internal Auditor’s position to Professional Services. All voted aye.
Councilman Perrin moved, seconded by Councilman recommend approval of an ordinance allowing for departmental line item transfers for up to $1,000.00 with committee approval. All voted aye.
Mr. Flowers recommended the committee consider new software for the finance department. Councilman Perrin stated he wanted to have an integrated system by which all departments were connected. The cost was estimated at $250,000 and would be 2004 before it could be implemented.
PERSONNEL
Councilman Dover moved, seconded by Councilman Perrin to recommend that Mr. Ken Saddler stay in the office allowing Ms. Becky Sharp to collect fines. All voted aye.
Mr. Flowers provided a report regarding the non-uniform pension plan saying there had been a 3% decline ($56,414) in the value of plan assets. Councilman Perrin expressed concern in how the city was going to address the actuarial deficiency that totals 1.5 million dollars. The decision was made to have Principal Financial report on the deficiency at the next committee meeting.
Councilman Dover moved, seconded by Councilman Perrin to provide for another 30-day extension for Mr. John Burton. All voted aye.
Ms. Suzanne Hackney reported on the final draft of Request for Proposals for the salary plan. Ms. Hackney agreed to amend the draft to include comparable staffing and a review of current pay grade comparison to wages of similar size cities. Ms. Hackney stated she would make the changes and give to Mr. Steve Kent, Purchasing Agent.
With no further business, Councilman Perrin moved, seconded by Councilman Dover for adjournment. A voice vote was taken resulting in all members voting aye.