title
Minutes from the special called Finance Committee meeting on December 13, 2005.
body
Finance & Administration Committee Minutes
Special called meeting
Tuesday, December 13, 2005
3:30 p.m.
Members Present were: Darrel Dover, John Street, Jim Hargis, Harold Perrin, and Ann Williams. Other present were: Mayor Formon, City Clerk Donna Jackson, staff and media. Councilman Alec Farmer arrived at 5:40 p.m.
REVIEW OF THE REVISED 2006 BUDGET
Pending: Capital Improvements
Discussion was held concerning the capital improvements proposed in the budget. It was suggested the capital improvements should all be set to zero and just pay them as they come up during the year since there were questions as to what the exact amounts of each item are and whether or not they will be done during the year. It was decided to go over each item in the list one by one.
Questions were raised concerning how much the cost will be to renovate the Justice Complex. It was explained that the person who made the renovation plans suggested the repairs would cost about $10,000, but Mr. Brian Wadley stated he thinks that was just the cost for the materials and the labor was not included. Mayor Formon said they’re hoping to do the renovations in January, 2006. Item 163 Renovate the JCOP Building was increased to $40,000.
• Item 166 Miscellaneous was taken out
• Item 123 Class IV Landfill Closure was decreased to $400,000
• Item 128 Repair Concrete/JMC was taken out
• Item 130 (3) Bollards/JMC was taken out
• Stormwater Study Part 2 was changed to Drainage Study Part 2
• P/W/A Control facilities was taken out
Discussion was held concerning the Item 134 New Animal Shelter. It was questioned whether the committee should set the item at zero until figures could be put together as to how much the building will cost. The money would stay in reserve until the figures could be spent. It was also suggested to not combine the new animal shelter with the Public Works facilities in the list of capital improvements. Mr. Wadley stated they are planning to start the animal shelter project on January 3, 2006. It was asked how much the shelter would cost. Mayor Formon indicated the shelter in Boling Green that had seen and liked cost about $480,000. Discussion was then held regarding putting some figure in the line item just to show faith that the Council is committed to building a new animal shelter in 2006. It was added that if money is needed the only thing that will need to be done is an amendment to the budget. It was stated that before the budget was made, they should’ve figured out the exact cost of the building. It was decided to increase the Item 134 New Animal Shelter to $500,000.
It was also questioned what to do with the Fire Station #2 item. It was suggested that until an exact figure is known on what the station will cost, to take the item out of Capital Improvements. It was stated the committee is committed to doing Fire Station #2 in 2006. Questions were raised how adding to the building would affect the parking in the area. Mayor Formon indicated Mr. Silas had given them an amount to build the new fire station. It was also explained the trucks would come out on Madison as opposed to Union because Union is a one-way street. It was decided to decrease Fire Station #2 to $700,000.
Under the Streets & Drainage section:
• Item 152 City Drainage projects was reduced to $600,000
• Item 180 Railroad Crossing & Tracks Maintenance was reduced to $75,000
• Item 239 Street Signalization was increased to $350,000
• Item 235 Street Department Street Materials was decreased to $350,000
Also, Mr. Teddy Hooton explained the bridge repairs/replacements would be on Willet Road, Wood Springs Road and Matthews. Questions were raised about Hester. Mr. Hooton noted Hester needed to be a box culvert instead of a bridge. He also informed the committee street signalization would be worked on at the intersections of Race & Fairview and Bridge & Washington. He further explained the intersection of Race & Fairview would also need some additional pavement work due to the addition of turning lanes.
Discussion was also held regarding putting a new building on Oaklawn Cemetery. Mr. Wadley informed the committee that he thought the City could get rid of the shack on Kitchen and put a building at Oaklawn for $50,000. Questions were raised about purchasing the lot across from Oaklawn as well. Mr. Jason Wilkie noted he was going to bring that up with the Public Services committee at their December meeting. It was decided to add under Capital Improvements a line item for Oaklawn Cemetery Building and set it at $50,000. It was also noted that by using the Perpetual Care Fund, the other cemetery needs could be taken care of.
Pending: Personnel
Questions were raised concerning the hiring of an accounting technician for the Finance department. Ms. Christy Wall explained to the committee the need for another person on their staff because of the overload of work. She further explained the filing is six weeks behind because they do not have time to do it. She said that the Springbrook software did help, but there is still a lot of work to be done. Mr. Larry Flowers added they are expecting Ms. Deloris Wicker to retire in April, which will make them short a person.
It was decided to go over each position that was proposed to be added to the budget in 2006. It was explained the HR administrative secretary is now two part-time employees. Police Chief Michael Yates explained he is asking for another CID technician to take care of clerical duties that are now being done by the detectives. He added it’s cheaper to hire a tech than to hire another officer to take care of the work, plus it would allow the detectives to be out in the field doing their work. He further added that a lot of evidence is being taken care of by a crime scene tech. He noted that some employees already in the department have expressed interest in the full time technician position. An internal auditor, which will report directly to the City Council, is also proposed in the budget, as well as the staff for the Planning Department. Councilman Street suggested only hiring one Assistant/Senior Planner at this time and hire a secretary for the department. It was decided to take out one of the Assistant/Senior Planner positions.
Discussion was then held regarding the hiring of new firefighters. Assistant Fire Chief Leonard Jadrich informed the committee the Fire Department would like to hire 12 new firefighters next year to fit their engines with three firefighters each. It was questioned why the positions were not in the budget. Mayor Formon stated Fire Chief Aaron Keller had not asked for any additional firefighters in the original budget, except for a disaster relief position. He further explained he had not heard about adding firefighters until after the budget had already been made. Assistant Chief Jadrich noted Fire Chief Keller originally asked for 14 firefighters a year for five years to catch up. He added if the City decides to build a new fire station; it will take a while to train the new firefighters to work in those new stations. So, they would need to hire the firefighters well in advance of building any additional stations. It was also noted the Fire Department needs to hire people in increments of 3 because they have 3 shifts. Mayor Formon also stated that he remembers the Council committing to hire firefighters every year to help keep the City from needing to hire a lot at one time. It was asked for Mayor Formon to talk with Fire Chief Aaron Keller by Thursday’s regular Finance meeting and bring back a recommendation.
CONSIDERATION OF NEW POLICE CARS
Chairman Perrin informed the committee that after speaking with Police Chief Yates, they decided to take out the 10 laptops for the Police Department that are currently listed in the Information Systems fixed assets budget. It was explained there are other laptops that can be used by the Police Department as opposed to buying new ones. He stated in the items in the new cars are $30, 922 fully equipped. It was also noted that all the cars destined for uniform patrol already have the laptops in them. Chief Yates also explained the cars in uniform patrol being replaced, so they can reuse the computers that are in those vehicles before replacing them.
Mr. Hooton also asked if the committee would add back into the budget the laptops that he and Mr. Claude Martin had asked for. It was explained that when Mr. Alan Young was asked what the laptops were for, he was unsure what the use would be so the items were taken out. Mr. Hooton informed the committee he and Mr. Martin were going to use the laptops for GIS work while they are out in the field, to view aerial photos and use AutoCAD. It was decided to put the laptops back into the fixed asset budget.
REVIEW OF JAIL FEES
Mayor Formon informed the committee he has not had any other discussions with the county judge regarding a jail fee contract. He did not think a contract would be made before the end of the year. Police Chief Yates added he would not mind paying a few extra dollars per person to the county so the county can hire another person to transport the inmates when they need medical attention. But, the amount that has been proposed by the county ($45) was unreasonable. It was decided to leave the jail fees in the budget as they are. But, it was suggested a contract be made with the county judge in 2006.
ACCOUNTING FORMAT
Allocation of insurance cost
Mr. Flowers explained what they had come up with is to take the costs that are separated throughout each department and put them into one general budget. The insurance, telephone expense and Municipal League dues would be included in that general budget. Councilman Dover motioned, seconded by Councilman Street, to make one general budget to include all the previously separated items. All voted aye.
Tracking of monthly expenditures
It was questioned whether Springbrook would allow the department heads to keep track of what is spent out of their budget each month by line item. Mr. Flowers explained Springbrook does have that capability and for anyone who needs Springbrook training, they can see Ms. Wall. He added that department heads will also be able to see who each check was paid to and the check number.
REVIEW OF REVENUE SOURCES
Cell phone usage
Pending: Questions had been raised concerning whether or not the City was receiving its fair share of the cell phone usage money collected. Mr. Bob Andrews reported the fee is 40 cents per phone per month and the City is receiving 1 cent of that money. He also stated the last check the City received for cell phone usage totaled $28,906. He has asked for a breakdown of the money. It was asked for Mayor Formon to check with City Attorney Phillip Crego to make sure the City is getting its fair share.
Privilege licenses & Hotel/Motel tax
Pending: Mr. Flowers asked if he could bring City Collector Becky Sharp to the Finance meeting on Thursday, December 15, to speak with the committee about the licenses and the taxes. He added that Ms. Sharp has received a list from the state of who paid sales taxes in Jonesboro and is comparing that with her records. It was also suggested that Ms. Sharp look into what other cities the size of Jonesboro are charging for their privilege licenses.
REVIEW OF PENSION INCREASE
Discussion was held regarding the proposed pension increase for city employees. It was suggested that the City look into alternatives to the defined benefit offered by the City in the first quarter of 2006. Ms. Suzanne Hackney explained Jonesboro has the lowest multiplier of the cities she studied who also offer defined benefits to their employees. Chairman Perrin stated the cost of defined benefit plans is causing a lot of places to look into alternatives. It was explained costs would not be incurred until 2007 if you raised the multiplier based on 2006. Mr. Flowers stated his concern for employees who were hired with the expectation of the defined benefit and how changing the plan might hurt employees who have been with the City for a while and are getting close to retirement. He further explained it would be easy to hurt an employee’s benefits by changing plans, but other companies, like Verizon, grandfathered in their new plans to reduce the risk to their employees. He discussed the breach of trust and lack of protection of changing the plan type, stating it would be a disservice to the employees to change the plans and hurt the employees’ retirement. Chairman Perrin stated he is only suggesting the City look into alternatives that will not negatively affect the employees’ retirement plans. He stressed the study is just to seek other options that would increase the benefits to the employees, while also reducing the cost to the City.
REVIEW OF 4% SALARY INCREASE
Ms. Hackney explained the 4% increase is the total of the 2.5% Condrey increase and a 1.5% increase for inflation. She further explained that the Condrey plan does say the City will need to make changes to the plan and review for cost of living increases every two years in order to stay in the marketplace. If the City does not add the increase this year, the City will have to have an even bigger increase next year. She also stated inflation is 3%, but the proposed increase for the City is only 1.5%. The 1.5% increase will keep the plan competitive. Mayor Formon recommended the 4% increase and noted the pay raises are already included in the 2006 budget proposal.
2006 PROJECT CONSIDERATIONS
Feasibility of privatizing certain services
Commercial Sanitation services: Mr. Royce Leonard informed the committee that at a prior meeting, he proposed an 8% commercial service rate increase. But, he would now like a 20% commercial service increase because of other rising costs, including fuel. The increase would be effective April 1, 2006, to keep up with the billing cycle. It was suggested to study privatizing the commercial Sanitation services. Mr. Leonard added the increase will make up for put the City closer to the price of private haulers.
Councilman Dover left at 5:19 p.m. to attend a school board meeting.
Pending: Mowing of urban parks and other areas: Mayor Formon stated they talked with a company already about the price of privatizing the mowing and he thinks it would be best to go ahead and ask for bids. It was also explained two employees would have to be retained for liter pickup. There are 19 parks, as well as other City owned buildings currently being mowed by City employees. It was also explained some areas, like Craighead Forest Park, could not be privately mowed because those are specialized areas as well as it not being feasible. Mayor Formon explained they would bid out the services after the first of the year. He added the level of service would probably increase as well.
Pending: Housekeeping services: It was suggested to also bid out the housekeeping services for City Hall and the Huntington Building to see how much it would cost the City to privatize housekeeping services.
Mileage reimbursement vs. assigned city cars policy
It was explained the City currently has a travel policy and it states the City will pay whatever the current rate is. The Finance committee is suggested to review the policy in 2006.
Gas credit card disbursement
Mayor Formon explained each police car has an additional card assigned to it, so that would be an extra 60 cards but they are protected with PIN numbers. It was also explained the Street and Sanitation departments also have cards to be used in case the City pumps are not working. It was suggested to streamline the credit cards by department heads to keep a better track of them.
Part-time/Full-time workers
Pending: Ms. Hackney explained the currently policy of part-time workers working full-time hours with no benefits is not her policy and that is has been practiced by the City for years because departments are forced to hire part-time employees when they are not allowed to hire full-time employees. She further noted out of the list of part-time employees, only 7 have been with the City for 12 months or more. Of those 7 employees, 2 have been asked to move to full-time in 2006 and 2 do not have the necessary credentials or documents needed to become full-time employees. She added that the part-time employees have the chance to move to full-time positions if they bid on them. It was also explained that one part-time employee in the Streets Department had the opportunity to move into a full-time job he qualified for, but did not apply for it. Ms. Hackney explained the state only requires you to pay overtime to part-time employees if they work more than 40 hours a week. She discussed the state’s requirements that if you work a part-time employee overtime, they must be paid overtime. Ms. Hackney stated the City complies with all of the state and labor requirements. It was suggested to move the 5 remaining part-time employees that have been with the City for more than 12 months to full-time positions. It was questioned whether the part-time workers are doing work that would constitute needing a full-time position. Ms. Hackney explained she is not sure whether the part-time workers have worked 40 hours a week, but it’s possible. It was suggested for the part-time workers who do not want full-time positions, to have them sign off on the positions and keep the file in their personnel record. It was decided to move the 5 employees into full-time positions. It was asked for Ms. Hackney to bring to the meeting Thursday a part-time pay schedule.
Municipal League fees
Mr. Flowers informed the committee the Municipal League dues are 28 cents per head of population, in addition to a $40 flat fee, for a total of $15, 584. The City does not participate in the optional Municipal League Defense Program or the drug testing program. The fees will be included in the new general budget instead of being separated into each department.
OTHER
Leasing equipment
Pending: Discussion was held concerning whether the City should purchase some of the equipment in the fixed asset budget as opposed to leasing the items. It was suggested to purchase the equipment instead of leasing if the department has the money and the buy back guarantees are not altered. Chairman Perrin noted that the City has committed to $1 million a year for four years for new equipment or vehicles. It was asked how many city vehicles the City has, including pickup trucks and cars. It was also asked to look into purchasing the vehicles as opposed to leasing and to bring the information back to the committee on Thursday.
Mr. Flowers also suggested looking into putting together a new chart of accounts in the early part of next year.
ADJOURNMENT
With no further business, Councilman Hargis motioned, seconded by Councilman Street, to adjourn.