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Minutes for the Finance Committee meeting on October 20, 2003.
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Finance & Administration Committee Minutes
Monday, October 20, 2003
5:15 p.m.
Members Present: Alec Farmer, Darrel Dover, Jim Hargis, Ann Williams, and Harold Perrin. Others present were: Mayor Brodell, Becky Sharp, Larry Flowers, Judy Furr, Suzanne Hackney, Doug Little, Rusty Grigsby, Phillip Crego, Keith Inman, Jonesboro Sun and Donna Jackson, City Clerk.
MINUTES - SEPTEMBER 11TH AND SEPTEMBER 18TH
Councilman Perrin moved, seconded by Councilman Dover to approve the committee minutes of the Special Called meeting held September 11, 2003. All voted aye.
Councilwoman Williams moved, seconded by Councilman Perrin to approve the minutes from the regularly scheduled meeting held September 18, 2003. All voted aye.
Copies were provided of both sets of minutes for all who were in attendance.
BKD - AUDIT REPORT PRESENTATION
It was explained that the preliminary audit report had to be amended so the presentation by BKD would be announced at a later date.
RECORDS & DEEDS
Councilman Farmer questioned the current status on the legislative audit and records management. Finance Director Larry Flowers reported that Mr. Steve Kent, Purchasing Agent had prepared a list from the Mayor’s recollection of city owned property. He further explained the list was provided to Legislative Audit and asked if the list would be sufficient to satisfy the audit finding. The Legislative Audit responded back to Mr. Flowers explaining it was up to the Finance Department to represent to the Legislative Audit that it is a complete list of city owned real estate, and if not the audit finding will remain. Mr. Flowers stated he could not certify the list as being a complete list because he does not know if it is all of the city owned property. Councilman Perrin asked what the problem was. Mayor Brodell responded saying he does not know where a complete list of city owned property is because it spans over 100 years. Councilman Dover responded saying the deeds had to have been recorded somewhere. Mayor Brodell stated to his knowledge the Mayor’s office has never done this (kept the deeds). Mr. Flowers stated state law assigns that responsibility to the treasurer. Mayor Brodell stated he is willing to work with whom ever to get the job done. Councilman Dover stated someone needed to be assigned from the Mayor’s Office to do the leg work, to go to the court house and match the deeds up. Mayor Brodell stated the records downstairs in the City Clerk’s Office should be made available to him. Councilman Dover stated the problem with that is there is a hodge-podge of material, not originals only, with no identification as to what the deed is to. Mayor Brodell stated the Legislative Audit is not looking for right-of-way and some rights-of-way have no deeds. Councilman Farmer explained records are on file at the county court house. Mayor Brodell stated the county records only go so far back. Councilman Farmer questioned why he could not go down to the county office and key in “City of Jonesboro” under Grantee and come up with a list that the City of Jonesboro owns. Mayor Brodell stated he has the list already, and has had it for months. He stated he has also gone to Ann Hudson’s Office and asked her to match up the list with what she has, but the list is not complete. Mr. Flowers explained the problem with the assessed list is that it has a legal description, not a street description and someone will have to do the leg work to determine what the deed is to. Councilman Dover questioned what needed to be done to get job done, and questioned if part-time help needed to be hired. Mayor Brodell stated if he had the copies of the deeds that the Clerk’s Office may have he could match the legal description off of those with the print out. City Clerk Donna Jackson stated she would be glad to provide him copies of the deeds she has available. Councilman Farmer explained at one time everyone thought it was the City Clerk’s responsibility, and the City Clerk was not comfortable with certifying that this was a complete list, but then it was discovered that it was the Finance Director’s responsibility, and now the Finance Director is not comfortable with certifying the list because no one knows if it is all of the city owned property. Councilman Dover stated if we have to hire someone one to do the leg work, let’s hire them and get it done. Councilman Perrin stated he thought they already had Harry Hardwick. Councilman Dover and City Clerk Jackson stated Mr. Hardwick was supposed to have been doing this several months earlier. Mayor Brodell responded saying he will have to pull him off of the street addresses. City Clerk Jackson stated she would feel better if he would provide a list so she could look for the deed because other information had to be provided such as appraised values. Councilman Farmer explained in most cities the City Clerk is the keeper of the record, but most cities have kept up with the property they’ve owned and we will have to catch up. Purchasing Agent, Steve Kent stated in the 1980’s the Inspector’s Office maintained the properties of the city which contained a map and the deeds, and at some point the City Clerk came and took those records from the Inspector’s Office. City Clerk Donna Jackson disagreed with Mr. Kent’s statements. Councilman Dover stated the deeds would have to be matched up with the addresses, and the City Clerk would provide copies of any deeds filed in her office. Mayor Brodell requested the address as well as the copies of the deeds in the City Clerk’s Office. Ms. Jackson stated she would provide addresses if they were available. Councilman Perrin questioned how to avoid this type of situation in the future. City Clerk Jackson responded saying the way to avoid this type of situation is to follow state law. Discussion followed on how to provide the needed information for GASB regarding the value of the property. Mr. Flowers stated Legislative Audit will accept a nominal value for property acquired prior to 1980. Councilman Farmer questioned if the online financial budget software would not show every piece of property the city has bought. Mr. Flowers explained it would up to a certain period of time, but was not sure how far back the records would go. Mayor Brodell stated Ann Hudson has furnished all she can furnish with out going to hand labor.
BUDGET SCHEDULE
Councilman Perrin questioned the process for reviewing the budget. Mr. Flowers explained Committee Chairs have been provided the original requests by department heads, plus a copy of the Mayor’s proposed budget, and the next step is for the Committee Chair to meet with department heads and Mayor Brodell in order to make a recommendation to Finance Committee. Mr. Flowers recommended a deadline for completion of the committee recommendations for no later than November 10, 2003. Mr. Flowers also stated there needed to be a salary recommendation to complete the budget. Mayor Brodell suggested Mr. Flowers come up with a salary settlement and vote on it the first meeting in December. Councilman Farmer questioned if Mayor Brodell was recommending no salary increase to employees. Mayor Brodell responded saying that was not his recommendation, and that he was in favor of a salary increase, but had not seen the salary survey. Discussion was held on the finance software, regarding how much time was needed to make the necessary salary adjustment recommendations. He explained the financial software can be used another year, but is not very functional. Councilman Perrin moved, seconded by Councilman Dover to set November 10, 2003 as the deadline for committee recommendations. All voted aye.
PAST BUDGET TRENDS
Councilman Farmer provided research information from 1998 through 2002 revenue and expenditure trends and comparisons with similar cities. The report provided comparisons on public services (utilities and sanitation), type of city services provided, and sources of revenue, actual dollar amount of revenue sources, staffing, Jonesboro revenue growth, and growth of operating expenditures, capital improvements and fixed assets, and non-operational expenditures. Mr. Farmer stated the other cities had written policies included in their budgets (debt policy, reserve policy, budget adjustment, capital improvements with explanation of effect on capital in the operating budget, providing for a basis of accounting.
CHANGES TO FINANCIAL & BUDGET POLICY
A proposed resolution was provided to committee members requiring specific detailed information to be included in all proposed legislation pertaining to funding. Councilman Farmer explained there has been confusion in the past regarding various grant applications (Airport Grant, Tennis Courts at Allen Park) and the proposed resolution would provide needed information in order to make an informed decision by the council. Councilman Farmer also explained all financial obligations (contracts, agreements, leases, deeds, and grants) needed to first go through the City Attorney for his review. Mr. Farmer gave examples of what should be contained in all proposed financial legislation: name of grant agency, total amount of the grant project, brief description of the type of grant, break down of matching grants including the percentages, the City of Jonesboro’s financial obligation, and location of funding in the budget. Mr. Jim McKinnon, Grants Coordinator stated he did not see any confusion with previous grant applications saying they have all been funded with no audit problems. Councilman Farmer explained because of confusion with the wrong resolution being considered in the agenda line up, and with no specific information being provided in the resolution there was a certain amount of confusion with regard to the City’s financial obligation.
2004 CDBG - ADVISORY RECOMMENDATIONS
Mr. McKinnon stated he wanted to have the application ready for this agenda, but was unable to because he is still working on getting the proper signatures necessary to submit to the City Council. He stressed the need to have it approved on November 3, 2004, or risk losing $680,000.00 because of a HUD deadline of November 15th. Mr. McKinnon requested a recommendation from the Finance Committee to place the 2004 CDBG on the agenda. Councilman Farmer read the list of recommendations for the 2004 CDBG expenditures: $40,000 for demolition of substandard housing, $25,000 for low-income children disabled elderly, $10,000 continuum of care, $200,000 sewer improvements, $100,000 Allen Park (concession stand & sidewalks), $45,000 University Lions Park (playground equipment), $45,000 Runway Park Improvements, $95,000 Fire Department, and $122,000 Administration Fees. Councilman Dover questioned if all the administration fees had to be taken out of the grant funding, with $122,000 coming out of a $422,000 grant. Mayor Brodell responded saying it is funding more than CDBG grants, it includes everything (Police grants, Fire grants, Parks Grants) as well as funding for MPO. Councilman Farmer questioned if it was permissible to fund 100% of the grants program with CDBG grant funds. Mr. McKinnon stated in his opinion the grant funding should be separate from CDBG. Mr. Flowers stated there could be a potential problem with CGBG if it was discovered that the City of Jonesboro was paying for work on other grants with CDBG funds. Councilman Dover stated we are charging more for administration, than for just CDBG. Councilman Farmer questioned who would be responsible for researching the matter to make sure there is no problem. Mayor Brodell responded saying there is no problem, because the auditors have looked at it. Mr. McKinnon stated he would research it and report back to the committee. Mr. Flowers stated based on the salary recommendations the administration fee may need to be amended. Councilman Perrin moved, seconded by Councilman Dover to recommend the 2004 CDBG recommendations to the Jonesboro City Council contingent on finding out about paying for work on other grants with CDBG funds. All voted aye.
CITY YOUTH MINISTIRES - SALE OF PROPERTY LOCATED AT 118 BURKE AVENUE
City Attorney, Phillip Crego confirmed that he had reviewed the new deed and it now included a “Right of First Refusal” for the City of Jonesboro. Attorney Crego stated he would prepare a resolution to be placed on the next agenda. Councilman Perrin moved, seconded by Councilman Dover to recommend the resolution to the full council providing for the sale of property located at 118 Burke Avenue. All voted aye.
LEASE WITH TENNECO, INC. 2601 COMMERCE DRIVE
City Clerk, Donna Jackson had questions regarding a copy of a document which had been laid on her desk by an unknown person. Mayor Brodell stated it was a twenty year lease with Tenneco, (Walker Jack with Lincoln Automotive Company) and they wanted to exercise their option to purchase the property. The document was provided to the City Attorney for review. It was determined that there was not enough information and the Mayor would make a recommendation to the Finance Committee.
INSURANCE BIDS
Councilman Perrin moved, seconded by Councilman Dover to accept Blue Cross Blue Shield Insurance for next year with no increase in premium, and no decrease in benefits. All voted aye.
Councilman Dover moved, seconded by Councilman Hargis to accept Delta Dental Insurance with no increase in premium, and no decrease in benefits. All voted aye with the exception of Councilman Perrin who abstained from voting.
CONTRACT - BENEFIT FOCUS . COM
Suzanne Hackney reported she had a contract with benefitfocus.com which was a new way to enroll people with Blue Cross Blue Shield Insurance, and wanted a recommendation by the Finance Committee to the full council. She explained the contract had not yet been reviewed by the City Attorney. Councilman Perrin moved, seconded by Councilman Dover to recommend a resolution accepting the contract contingent on the City Attorney’s recommendation. All voted aye.
Councilman Dover questioned the progress of the 457 Plan. Ms Hackney reported the money has been transferred from Regions and waiting for the final distribution.
ADJOURNMENT
With no further business Councilman Dover moved, seconded by Councilman Perrin to adjourn. All voted aye.