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Minutes from the Finance Committee meeting on January 14, 2003.
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City of Jonesboro
Finance and Administration Committee
Tuesday, January 14, 2003
Huntington Building
The organizational meeting of the Finance and Administration Committee was called to order at 4:30 p.m. by acting chair Alec Farmer. Members present were Alec Farmer, Harold Perrin, Darrel Dover, Jim Hargis and Ann Williams. Mayor Hubert Brodell, City Attorney Phillip Crego, City Clerk Donna Jackson, Finance Director Larry Flowers, Human Resources Director Suzanne Hackney and Grants Coordinator Jim McKinnon and Larry Johnson, Assistant to the Mayor were also present. Members of the press were notified and were present.
The committee selected the sub-committee chairs for the following committees: Audit - Alderman Dover, Legal and Personnel and Insurance - Alderwoman Williams, Records and Industry - Alderman Perrin, Finance - Alderman Farmer and Grants - Alderman Hargis. The committee also selected Alderman Farmer as Chairman of the Finance and Administration Committee.
FINANCE
Larry Flowers, Finance Director, presented a brief report on the 2002 budget. He reported that overall 2002 revenues for all funds exceeds budgeted revenues by approximately 2.5% and that overall 2002 expenditures for all funds were approximately at 93% of budgeted appropriations. Only 27% of the projected appropriations of the capital improvement fund were expended.
Mr. Flowers reported on the 2003 budget and offered a training session for the new council on the budget.
The Committee discussed the need for changes to the monthly financial report provided to the committee and to the whole council. The need for actual expenses in addition to the budgeted expenses was recommended. The Committee asked Mr. Flowers to prepare a draft monthly report with the proposed changes for the Committee’s review.
The Committee discussed the possible need for improvements to the city’s financial software package. The committee asked Mr. Flowers to prepare recommendations.
The Committee discussed the need for long range planning of capital improvements and equipment. Alderman Perrin recommended that the planning not exceed a three-year period. The Committee asked Mr. Flowers to research this.
The Committee discussed the need for determining an adequate reserve ratio for unrestricted funds in the city’s budget each year. Mr. Flowers provided information from several other cities, which have adopted reserve ratios. A range between 15-25% was discussed. No action was taken.
The Committee asked Mr. Flowers to research revenue sources of other Arkansas cities comparable with Jonesboro. Mr. Flowers will report his findings to the Committee when his research is complete.
The Committee discussed the availability of short-term financing under A.C.A. 14-78-101 et al regarding real or tangible property having an expected useful life of more than one year.
Mr. Flowers updated the Committee on the GASB 34 requirements. The Committee discussed accountability issues with Mayor Brodell to insure that deadlines were met to keep the City in compliance with the GASB requirements.
AUDIT
The Committee discussed whether the City should hire an internal auditor or hire an independent accounting firm to perform the City’s audit. City Attorney Crego advised the committee that an internal auditor would not be answerable to the City Council but to the Mayor based on state law. Mr. Dover noted that auditing practices typically require that the auditor not be answerable to management. No action was taken.
The Committee discussed the need for the City to have a list of the City equipment and the property as required by A.C.A. 14-59-107. Mr. Flowers stated that his office currently had a list of city equipment. It was determined that a complete list of the City’s real property does not exist.
GRANTS
Jim McKinnon reported on the City’s grants. He reported that he was coordinating the MPO for the city. The deadline for certain MPO requirements is May 01, 2003.
LEGAL
City Attorney Crego stated he would begin reporting the current status of City lawsuits to the whole council once a month. He also discussed his office’s functions, which include representing the City in the district court and handling condemnation procedures. He reported that APERMA represented the City through Gallagher Insurance for all other litigation. He recommended having a representative from the APERMA law firm meet with the Committee.
RECORDS
City Clerk Jackson deferred her time to Ms. Hackney, due to time constraints and the need to address some issues concerning personnel matters. Ms. Jackson will give a report at the next committee meeting.
PERSONNEL AND INSURANCE
Ms. Hackney reported the need to approve the City’s dental plan. Ms. Hackney presented two proposals, Delta Dental Plan of Arkansas, Inc. and Arkansas Blue Cross & Blue Shield. Staff recommendation was to accept the Delta Dental Plan. Upon a motion by Alderman Dover and a second by Alderman Farmer, the Committee recommended Delta Dental Plan be accepted. Alderman Perrin abstained from voting due to his membership on the board of Delta Dental.
Ms. Hackney also reported the request of a city employee for an extended medical leave of 30 days. The committee approved the request.
Alderman Farmer asked Ms. Hackney to prepare a recommendation for adequate bidding period of not less than forty-five days from the deadline for the City’s insurance proposals. Ms. Hackney reported that she was already researching this matter.
The committee discussed the status of the salary survey. Alderman Dover asked Ms. Hackney to have her recommendations prepared for the next meeting.
FINANCE AND ADMINISTRATION
The committee discussed a regular meeting time. Upon a motion by Alderman Perrin and a second by Alderwoman Ms. Williams, the committee established a regular meeting time on the third Thursday of each month at 4:30 p.m. in the Haworth Room of the Huntington Building.
There being no further business, upon a motion and a second, the Finance and Administration committee adjourned at 6:00 p.m.