Finance Committee

City of Rome FINANCE COMMITTEE MEETING September 30, 2022 PRESENT: Committee Chairman Mark Cochran City Commissioner Bill Collins City Commissioner Randy Quick City Manager Sammy Rich Assistant City Manager Meredith Ulmer Finance Director Toni Rhinehart Assistant Finance Director Kraig Ingalsbe Recording Secretary Vicki Blair Guests: Doug Walker, Public Relations David Crowder, Rome News-Tribune Louis Byars Commissioner Cochran called the meeting to order and approved the minutes from the July 20th meeting by common consent. Ms. Rhinehart began by stating we will be reviewing the August financial statements today. GENERAL FUND: Local Option Sales Tax revenues are above budget and above 2021 by over $530,000. Title Tax Fee Revenues are trending over budget but are down slightly from 2021. Real Estate Transfer tax is up slightly from last year and above budget. Georgia Power franchise fee for 2021 was $2.4M and is above last year but slightly below budget. Business licenses are tracking above 2021 overall. Facility rentals are slightly above 2021 and more to a post-COVID level. Police Fines are down from 2021 but still slightly over budget. The RedSpeed revenue is $157,251 for the year and has been consistently around $20,000 - $25,000 per month. August revenue was down due to school being out for the summer. These funds are earmarked for police expenses and are tracked separately. Chairman Cochran began a discussion regarding possibly taking some of these funds to dedicate more to school safety and Ms. Rhinehart stated this is something that could be looked at with the school system and discussed in the future. PILOT from the Spires at Berry College of $20,000 was received in August. The Housing Authority PILOT payment has not been received to date. Interest on investments is over budget this year due to higher bank rates. This revenue is expected to increase for the remainder of the year. For expenditures, most departments are a little above year to date budget and above 2021 mostly due to payroll adjustments, supplies and fuel costs. Public Safety is above last year but still under budget mostly due to being short-staffed. Commissioner Collins mentioned that he would like to see a plan to improve staffing and Assistant Manager Ulmer stated that she is brainstorming with City Manager Rich and Human Resources on this situation. WATER FUND: Usage for water and sewer is above last year and above budget year to date. Total Operating Revenues total $18.9M versus $17.1M in 2021 and YTD Budget of $16.6M. The 1 Leak Protection Revenue is staying consistent and slightly above last year. YTD departmental expenses are $13.4M vs $14.2M in 2021 due to some large repair and maintenance expenditures in water filter and wastewater plant. June bond coverage is at 23.13 due to the reduction of an outstanding debt at the end of 2021. We have a cash balance of approximately $18M at the end of August which is very consistent with last year. BUILDING INSPECTION: Revenues for 2022 are at $1.08M vs YTD 2021 totaling $807,561 and this reflects the very large construction we have going on right now in the area. Revenues are over YTD budget of over $350,000. Expenses are above 2021 but well below YTD budget. TRANSIT FUND: Mainline is still being offered for free at this time. The transfer to General Fund is for retirement and a contribution for some admin. The capital contribution is for the buses that we received from Gainesville earlier in 2022. Expenses are up from 2021 but in line with YTD budget. TOURISM: Revenues are a little above last year. Gift shop sales are up and although the History Center rentals are down slightly this year, this is a very strong revenue because the center stays rented year-round. Expenses are up from last year, but they are under budget. FIRE FUND: Expenses are slightly over last year and budget primarily due to payroll adjustments and being at full staff. HOTEL/MOTEL TAX FUND: Hotel Motel tax revenues are another bright spot as they are above budget by approximately $200,000. HEALTH INSURANCE FUND: We have had a very high claims year so far and have just been notified of a large claim from 2021 being processed at this time as well. GOLF: Revenues through July are above 2021 by $76,000. Expenses are up slightly but below budget. Excluding debt, there is an operating gain of over $77,000. Rounds have increased as well from 2021 by 2,560. PARKING FUND: YTD revenues are below budget by over $50,000. Expenses are up due to Service Contract payments and increase in payroll expenses. FORUM PARKING: Parking revenues are down from 2021 and significantly below budget. Expenses are above 2021. LANDFILL: Fee revenue is ahead of 2021 by over $350,000 and above budget by over $781,000. 2 SOLID WASTE MANAGEMENT FUND: Revenues are in line with budget and up slightly from 2021. Expenses are up from 2021 by over $450,000 but just slightly over budget. Most of the increase is in payroll and fuel costs. PLANNING COMMISSION FUND: There have been changes in personnel and the process, so we are still working on the 1st nd and 2 quarter grant reimbursements. AMERICAN RESCUE PLAN ACT (ARPA): The final annual payment of ARPA funds totaling $5.77M was received in June. Expenses for Parks & Recreation, Non-profit and Pathway of Hope property expenses along with the Camera and technology improvements are all underway. Ms. Rhinehart stated we are beginning to work on 2023 budgets with various items that will be presented in the future. Chairman Cochran began a discussion regarding ways these budgets could be presented by each committee to ensure there is ample time for review and allow for in-depth discussion before approval of the budgets. City Manager and Ms. Rhinehart agreed to look at ways for each committee to bring forth their requests in a more detailed presentation. Chairman Cochran also began a discussion regarding the overall economy projections and how to be prepared for negative impacts next year and the future. With no further discussion and no other items to review, the meeting was adjourned. Respectfully Submitted Vicki Blair 3