Finance Committee

City of Rome FINANCE COMMITTEE MEETING October 20, 2021 PRESENT: Committee Chairman Sundai Stevenson City Commissioner Randy Quick City Commissioner Mark Cochran City Manager Sammy Rich Assistant City Manager Meredith Ulmer Finance Director Toni Rhinehart Assistant Finance Director Kraig Ingalsbe Recording Secretary Vicki Blair Guest: Art Newell, Planning Commission Doug Walker, Public Relations Chairman Stevenson called the meeting to order and the minutes of the August 18, 2021 and September 21, 2021 meetings were approved by common consent. Ms. Rhinehart began the meeting by stating the Planning Commission has proposed fee changes they would like to bring before the committee and because it is a joint department these changes will also go before Development Oversight for approval. All fee changes go before the Finance Committee first for informational purposes. Mr. Newell, Planning Director, thanked everyone for allowing him to speak and stated that he wanted to present the proposed fee schedule for the Planning Department. He stated the department is in the middle of an update of the Unified Land Development Code. He wanted to present some amendments to three specific items they have for fee changes which include GIS fees, zoning verification letters and historic preservation. He stated the fee schedule has not been amended since 2008 to the best of their knowledge. He asked the Committee to review the handout he was presenting that reflected the fee changes and discussion began about the various requests. He stated they are looking at expanding the GIS capabilities and GIS is going to be a huge benefit to citizens in Floyd County and partners outside of the county. Discussion was also had about the annexation fee proposal but if the number is kept at zero the Planning Commission does not have a problem with that. Mr. Quick asked what we are looking at for a completion date of the new ULDC modifications and Mr. Newell stated he believes it will be early summer of 2022. No other questions were asked, and Ms. Stevenson thanked Mr. Newell for coming to the meeting and for his presentation. Ms. Rhinehart then began discussion about Mauldin & Jenkins currently being our audit firm and has been since the 2005 audit. This firm is the number one governmental firm in Georgia. One thing that makes us unique is that to do our audit it is also necessary to do the school board audit. Staff recommendation is to stay with this firm because of their expertise and the fact that if there are ever any issues they are very capable and helpful. The recommendation is for a 5-year extension on what we are currently doing. We are currently paying basically the same thing that is being proposed for the next five years however they will be going up approximately $8,000 for the regular audit and about the same for the total City audit during the years 2022 and 2026. Comparison was made between a previous firm used by the City in the early 2000’s and Mauldin & Jenkins will still be cheaper than the previous firm. Mr. Quick then made a motion to approve the recommendation from the Finance Committee to the full Commission Board and Mr. Cochran seconded the motion and the recommendation was approved. Ms. Rhinehart then began the review of the September 2021 Financial Statements. Each member has a copy of the highlights which are attached. GENERAL FUND: Title Tax Fee Revenues are up over last year by over $300,000. Intangible Taxes are slightly up for the year compared with last year. Local Option Sales Tax is up for the month and above last year by $379,510. Real Estate Transfer tax is $17,527 ahead of last year. Overall business licenses are in line with 2020 and slightly ahead in General business licenses. In 2020 Alcohol License refunds given to help offset loss of business due to COVID totaled $40,640. Facility rentals are back on track after last year’s COVID crisis. Police Fines remain ahead of 2020 and budget. YTD fines total $629,881 vs YTD budget of $537,750 and $422,000 in 2020. Interest and costs for 2021 are below 2020 by over $40,000. Interest on investments is down significantly from 2020 and continues to decline. Rates are 0.04 (LGIP) – 0.10% (Bank OZK). Total operating revenues of $14 million are above 2020 $1.1 million if 2020 Federal CARES grant revenue is removed. Most departments are under YTD budget and in line with 2020 expenses. Public Safety expenses of $6.52 million are above 2020 expenses of $6.26 million, but way below YTD budget of $7.1 million. They are currently still about 17 officers short. Discussion was had regarding the collection of money from the cameras and the revenues from that which are designated specifically for police. Total Public Works department is under budget and below 2020. The Retirement costs are up for 2021. The required contribution went from 14% to 15.5%. This is calculated using payroll. Transfer in revenues from other funds balance these expenses. Total operating expenses are up over last year by about $870,000 but below YTD budget due partly from the retirement cost increase. WATER & SEWER FUND: Total Usage revenues are $774,000 ahead of last year and above budget by over $1M. Interest income is significantly down from 2020 and is expected to continue in that direction. Most departments are within budgeted expenses. Transfers to R&E are up with project construction in process. September’s bond coverage is at 1.75. BUILDING INSPECTION FUND: Revenues are slightly ahead of YTD budget but below 2020 by almost $100,000. Expenses are below budget but above 2020 by about $49,000. There is a net income YTD of $149,000. This department is now at full staff. TRANSIT FUND: Revenues are up from YTD 2020 due to Federal operating grant revenue timing. In September 2020 no operating revenue had been requested. Expenses are down from 2020 by about $100,000. The disposal of buses is in progress and funds are being held in restricted cash for future bus purchases to meet FTA requirements. TOURISM FUND: Total Revenues are over 2020 slightly but slightly below YTD budget. History Museum Rentals and Gift Shop sales are both up from 2020. Expenses are below budget and below 2020 levels. HOTEL/MOTEL TAX FUND: Hotel Motel tax revenues are up $365,541 over YTD 2020 and $159,241 over YTD budget for 2021. HEALTH INSURANCE FUND: Revenues are slightly above 2020 but slightly below budget. Claims are above last year and above budget. There is a net loss YTD of $575,430. Claims in September have been especially high. Hopefully this will mitigate later in the year. Discussion was had in regard to possible health insurance carrier changes in 2022 due to a proposed 30% increase from the current carrier. TENNIS CENTER FUND Revenues and expenses are reflective of activity at both facilities. YTD revenues are slightly below budget but ahead of last year by over $257,000. Expenses are slightly above last year and above budget. Excluding Depreciation of $261,000 net position increased by $59,264. We are in the process of a transition with Cliff Drysdale Management to manage the Tennis Center. We will have everything on our books through December and they will begin in January. These are just some of the highlights of the September Financial Statements. With no further discussion, the meeting was adjourned. Respectfully Submitted, Vicki Blair