Finance Committee

City of Rome FINANCE COMMITTEE MEETING November 30, 2022 PRESENT: Committee Chairman Mark Cochran City Commissioner Randy Quick City Manager Sammy Rich Finance Director Toni Rhinehart Assistant Finance Director Kraig Ingalsbe Recording Secretary Vicki Blair Guests: Joe Smith, City Clerk Kelley Parker, Assistant to City Manager David Crowder, Rome News-Tribune Absent: City Commissioner Bill Collins Assistant City Manager Meredith Ulmer Committee Chairman Cochran called the meeting to order and approved the minutes from the October 19th meeting by common consent. City Clerk Joe Smith opened discussion regarding a modest increase in rental fees for various city facilities. Due to an increase in expenses in cleaning and maintenance, there is a recommendation to increase the rental fee for the Civic Center and the Auditorium by approximately $50.00. It is also recommended to increase the rental fee for the Rome Senior Center as well as the Rome Area History Museum by approximately $100.00 due to recent upgrades to these facilities. Mr. Smith then mentioned our newest facility for rental at Fort Norton that was remodeled as a SPLOST project. It is a unique facility located on Jackson Hill with a gravel road leading to it. Guests would need to be shuttled up to this facility and the space is somewhat open with no heating or cooling; however, there are bathrooms and Wi-Fi is available. It is recommended to charge a fee of $500 with the option of having transportation provided at an additional fee due to the possibility of issues with guests traveling to the facility. A motion was made to recommend these changes by Committee Chairman Cochran and seconded by Commissioner Quick. This will go as a recommendation to the full City Commission at the next Commission meeting on December 12th. Finance Director Toni Rhinehart then began the presentation of the 2023 Budgets draft. She reminded the committee members that this is a draft, and we are still a working on the finalization process. We intend to continue the 0-4% merit increase and will increase the retirement match from 2% to 2.5%. The GMEBS contribution decreased slightly for 2023 because it is based off of 2021 payroll numbers. The 2024 contribution will most likely be an increase due to the 2022 payroll numbers and the market. The Fire contribution from General Fund is a 50-50 venture with Floyd County. The contribution will go from $7.8 million to $9.3 million to cover the increase in payroll and the addition of 9 personnel to this department. The increase in fuel costs have also influenced operating expenses. The Transit contribution will be a $1.5 million increase from General Fund. However, interest earnings are up which is a bright spot. 1 GENERAL FUND: The budget appears to be unbalanced at this time, but this is mostly because we budget the police department to be 100% fully staffed. However, this is not likely to occur as there are approximately 16 positions that are not filled at this time, so we are considering a reduction to their budget. We are also anticipating some ARP funds to be transferred in that are not included in this draft. Most of the revenues are consistent with the 2022 Budgets except for the property tax and local option sales tax revenues. There is an increase in general business licenses and alcohol licenses because these continue to grow each year. Most of the rentals are back to a more consistent level. Fines and forfeitures have increased this year and Red Speed Fines have increased as well with the second camera going live in January. Regarding the Transfers In, there is an increase in admin and a slight reduction in retirement contributions. There is also an increase in the Hotel/Motel revenues. Water and Sewer has a transfer for admin and to help with the funding of the quick response team for asphalt patching. Fuel budgets have been bumped up this year due to the increase we have seen in 2022. Transfers Out reflect the increase mentioned earlier in Transit Fund Operating as well as Transit Fund Capital and Fire Fund. WATER FUND: The Water Fund is mostly complete but there are several projects that are not already included. There is always a deficit in this Fund because some of the projected projects that are included in the budget will not be completed during the year. This usually causes the deficit to appear worse than it actually turns out to be. In 2022, we budgeted for the entire debt payment that we were making prior to the payoff of the 2012 W&S Bonds but this year we are only including the 13 Sinking Fund payment of $529,000. We will continue to set aside the larger amount each month for future capital expense or debt. Projections on Water Revenues are reflected in the budget but are still being discussed with the water department before these are finalized. BUILDING INSPECTION: The projected revenues for building inspection are based off of current 2022 revenues. Construction continues but we do anticipate a slight reduction going forward. Expenditures are expected to be in line with 2022. TRANSIT FUND: There is no revenue anticipated for Mainline due to the continuation of free ridership. We do anticipate $200,000 from DHR in this budget. There is also anticipated grant money reflected in the budget of approximately $888,000 for operating and $602,000 for capital. Ms. Rhinehart stated that she is working with the Transit Department to make sure we have the correct information for their capital. Ms. Rhinehart interjected discussion regarding the Five-Year Capital Plan. This plan shows requests made by departments for 2023 and some that have rolled over from 2022. She also mentioned there is paving and infrastructure money left in SPLOST. TOURISM: The required contribution from Hotel/Motel has increase but due to the projected Hotel/Motel revenue, this is not a problem. There is money still available for Forum promotions and the History Museum is included in this budget. FIRE FUND: As previously mentioned, we are anticipating an increase in this budget which requires a substantial increase in the necessary City/County contribution to fund. 2 HOTEL/MOTEL TAX FUND: The expected revenues are based on current trends and what we expect going forward. Discussion was then had regarding hotel/motel taxes that we may or may not be collecting from entities such as AirBnB and VRBO and if we are receiving the correct amounts. Staff explained that we receive no detail on the revenue. This money is paid from AirBnB and VRBO and we have no way of knowing where the tax originates. INSURANCE: Even with significant anticipated claim numbers, we are still able to balance this budget with what the city contributes and what the employee pays. We had a slight increase in the city contribution but were able to leave the employee premium the same with no increase. We may need to revisit this mid-year 2023. DOWNTOWN DEVELOPMENT AND PARKING: We are having difficulty balancing both parking funds using current revenue data projections. There could be a deficit that would need to be split between the City and County. This budget is still being reviewed. SPLOST: This budget is still being reviewed but there are several paving projects included in 2023. LANDFILL: There has been much growth in our community which directly correlates with increased revenues in this fund. Going forward, they are anticipating the need for the next new phase more quickly, so we need to keep that in mind. SOLID WASTE MANAGEMENT: This fund requires a contribution from General Fund as well as revenues from residents and commercial to cover operating expenses. PLANNING COMMISSION: The Planning commission fund is funded 50/50 with the County and their budget was reviewed at Joint Services. COMMUNITY DEVELOPMENT: This budget is showing balanced, but Ms. Rhinehart will meet with them to review revenues they are expecting from grants. The budget document will be made available to the public before the City Commission meeting 12/12/22 both online and in the City Manager’s office. The first reading and public hearing will occur at this meeting on 12/12. With no further discussion and no other items to review, the meeting was adjourned. Respectfully Submitted Vicki Blair 3