Finance Committee

FINANCE COMMITTEE JUNE 22, 2021 MINUTES CALL TO ORDER The regular monthly meeting of the City of Clarksville Finance Committee was called to order by Chairperson Stacey Streeman on Tuesday, June 22, 2021, at 4:30 p.m. in City Council Chambers, 106 Public Square, Clarksville, Tennessee. ATTENDANCE PRESENT: Travis Holleman, Jason Knight, Wallace Redd, Karen Reynolds, Stacey Streetman ADOPTION OF MINUTES Councilperosn Redd made a motion to adopt the May 25, 2021 minutes as presented; the motion was seconded by Councilperson Knight. A voice vote was taken; the motion passed without objection. PURCHASING REPORT Director of Purchasing Camille Thomas introduced Contract Manager Katina Spainhoward to the members. Ms. Thomas reviewed the monthly bid summary and reported award of the following professional service contracts: ● Purchasing/Project Management - Appraisal of 803 Howard Street from Mark Young Real Estate Appraisals in the amount of $600.00. ● Project Management - Legal description and drawing for the 20.56 acres for the Regional Recreation Center from McKay-Burchett & Co. Engineers in the amount of $2,200.00. ● Project Management - Appraisal of the Hazelwood Road property for the Regional Recreation Center from Mark Young Real Estate Appraisals in the amount of $1,400.00.  Ms. Thomas reported sales of surplus property on GovDeals.com during May 2021 in the amount of $28,480.98. GENERAL GOVERNMENT REPORT Chief Financial Officer Laurie Matta said May 31 revenues were exceeding expenditures by $12.5 million which was typical because 97.1% of budgeted property taxes had been collected and 95% of all budgeted revenues had been collected. Year-to-date revenues were up $7.4 million and spending was 2.2% less than FY20. Approximately $8.4 million was unspent accounting mostly for public safety pay through June 30. COVID-19 monies had been moved to special revenue accounts. Local Option Sales Tax collections of $8.7 million were up 12.9% with $2.3 million going toward the General Fund, $108,000 toward the Road Improvement Fund, and $6.7 million toward schools. Ms. Matta said year-to-date capital project spending totaled $15.8 million of $50 million invested. The Fund Balance was estimated at $39.3 million. DEPARTMENT OF ELECTRICITY REPORTS CDE Chief Financial Officer David Johns said activity in the Broadband Division was normal with $7.8 million in cash and retained earnings at $5 million. The division was on tract for the most profitable year with a net income of $453,000. The Electric Division shows normal plant activity in May during the implementation of the second generation of smart meters. The Electric Division was showing a year-to-date net income of $14.9 million and a loss of $74,000 which was typical for the month. CITY ATTORNEY REPORT City Attorney Lance Baker reported payment of the following legal expenditures: ● Burr Forman, Tennessee River Keepers v. City, $2,330.50 ● Klein Solomon Mills, Ethics Complaint, $4,800.00 ● Bradley Arant, Kimberly Black v. City, $1,659.00 ● Bradley Arant, Robinson v. City, $5,494.60 ● Batson Nolan PLC, Robinson v. City, $792.50 CITY COUNCIL LEGISLATION ORDINANCE 104-2020-21 (First Reading) Amending the Official Code requiring all new legislation first to be considered by the Finance Committee This ordinance was sponsored by Councilperson Trisha Butler and was postponed by the Finance Committee on May 25th. This ordinance was subsequently disapproved by the City Council on June 3, 2021. Councilperson Knight made a motion to approve this ordinance. The motion failed due to lack of a second.  ORDINANCE 109-2020-21 (First Reading) Amending the Official Code relative to Short Term Rentals (individual owners) This ordinance was sponsored by Councilperson Redd and was postponed by the Finance Committee on May 25th. Councilperson Redd said he was presenting this legislation at the request of a citizen to exempt owners of one-room short term rentals or an STR that was rented for less than six months in a calendar year. Councilperson Knight made a motion to forward this ordinance to the City Council with a recommendation of approval. The motion was seconded by Councilperson Holleman. Councilperson Reynolds felt all STR landlords should follow the same rules. There was discussion regarding the definition of “owner” and whether spouses can separately own STR properties. Councilperson Streetman opposed additional exemptions and felt the existing ordinance should apply to all STR properties. Ms. Matta said 31 STR permits had been issued to date with three applications being processed and noted some applicants were companies. Councilperson Knight said this exemption may be necessary for owners who live in the STR property. Councilperosn Holleman felt the one-room exemption would be fair. Councilkperson Reynolds said the purpose of the ordinance was to provide health and safety to renters and this exemption could create a risk. Upon Mr. Baker’s request for additional legal review, Councilperson Redd made a motion to postpone action to the next regular meeting of the Finance Committee. The motion was seconded by Councilperson Knight. A voice vote was taken; the motion to postpone passed without objection. PUBLIC COMMENTS CDE General Manager Brian Taylor informed the committee the department’s $17.5 million interdivisional loan had been paid to the Electric Division from the Broadband Division 17 years earlier than originally projected. ADJOURNMENT The meeting was adjourned at 5:13 p.m. ADOPTED: July 27, 2021