Budget & Finance Advisory Committee

CITY OF SPRING HILL BUDGET AND FINANCE ADVISORY COMMITTEE SPECIAL CALLED BUDGET MEETING MONDAY, MAY 5, 2014 5: 00PM Present were: Amy Wurth, Bruce Hull, Chad Whittenburg, Victor Lay, Rick Graham, Jim Smith, April Goad, Kayce Williams, Susan Zemek. Jonathan Duda, Eliot Mitchell, Dan Allen, Shelley Taylor, Travis Massey, Brandi Smith, Kevin Fischer, Alan Couch, Chief Don Brite, Jason Fogle, Justin Whitwell, Geoff Betts, Kevin Klemme, Russ Bowers, Jeff Currie, James Betmett, Scottie Purcell, Eric Verbic (Cigna), Charles Pareigis and Mike Henson (The Drury Group) Chairman Wurth called the meeting to order and called for attendance. Item #1 -Presentation on Benefits (The Drury Group) - Charles Pareigis and Mike Henson gave a powerpoint presentation on our benefits renewal, factors that affect our renewal rates and TPACA. They also recapped our history over the last five years. Eric Verbic discussed prescriptions cost and utilization that affects the increase. Mr. Pareigis discusses switching back to fully insured or changing to entirely self-funded versus partial self-funded as we are now. There are two new taxes that the employer is required to pay that is unavoidable but they do not affect the rate increase. He made a few suggestions to help offset the increase (tobacco surcharge and/or spouse surcharge to employees, mail order medications, changing offered networks, etc.). Item #2 - Personnel Compensation Plan Review for Budget Year 201412015 (Shelley Taylor, Human Resources Director; Victor Lay, City Administrator) - Chairman Wurth stated tllis is the second phase of getting employees into their correct pay grades and where they should be within those grades. Mr. Lay discussed a chart he created to show where every employee is cunently and compared where they are in relation to each other and to the minimum and maximum lines, based on a 30 or 20-year employment period. Then he and Shelley discussed pay based on certifications achieved after they are hired or if they had them when hired in. Based on a 20-year plan, it would cost $414,508 (about half is general fund) to bring everyone up to the middle salary line; on a 30-year plan, it would cost $218,643 total. If a cap was put on how much one could earn based on cetiifications, the overall cost would drop for both plans. Committee discussed the minimum and maximum salary rates in regards to people that were hired previously, people that are lured in and in relation to other cities. Performance evaluations reflected in bonuses was discussed. Committee discussed being able to adjust the minimum and maximum based on extenuating circumstances. The $4 14,508 includes getting depatiment heads to where they should be as well as individual employees. Mr. Lay detailed how much the increase is by department. Total for general fund based on 20-year is $223 ,796. Alderman Duda suggested checking with MT AS or other cities to find a standardized plan as well. He also does not think the plan will be ready to put in place July 151 so he thinks we should discount it for six months. Mr. Lay stated if the BOMA gives him the external parameters, he thinks, with the depatiment heads, employees could be placed and he can provide a more in-depth analysis to BOMA. Committee discussed. Chairman Wurth stated BOMA should put in the numbers provided tonight as the minimum to at least get this in the budget. BFAC Meeting 515114 1 Chairman Wmth made a motion to include in the proposed general fund budget $230,000 for the employee compensation plan. Seconded by Alderman Whittenburg. Chairman Wurth made a motion to include in the utilities fund budget $200,000 for the employee compensation plan. Seconded by Alderman Whittenburg. Motions carried 3-0. Chairman Wmth stressed for every depmtment head to come to next year' s budget discussions prepared to discuss their budgets, including employee pay plan and capital budgets. Alderman Whittenburg stated this should have been at the top of the beginning budget discussion in March and he would like to see this first next year. Mr. Lay discussed the upcoming opening of the City Planner position again and the fire chief position that is still open. The candidate for the fire chief wants a higher salary than we offer now. Committee discussed . Alderman Mitchell asked if Mr. Lay thinks we can hire a qualified candidate within the pay range already established if we were to re-adveliise. Alderman Zemek asked if the current candidate was received well (to include by the firefighters) and if all felt he was qualified. Mr. Lay stated yes but he thinks the minimum salary would have to be $80,000 but he wants the BOMA to see the overall picture of how this increase would affect all other salaries. He would like to include this in the analysis back to the BOMA before approving this. Item #3 - Budget Review 201412015 (Balance Budget) (Jim Smith, Finance Director) - Jim reviewed some adjustments to the revenues and the expenditures on the general fund budget that brought it to a positive $15,000 difference before this meeting without dramatically cutting anything. Committee reviewed. Even with the addition of the pay plan numbers, it will still be a balanced budget as he can increase sales tax revenues (full year of Wal-Mmt) since he was very conservative on the projected numbers. Committee would like to add $250,000 to the Williamson county sales tax and leave Maury county as is. Jim discussed building permits. The budget is balanced at this point. Chairman Wmth and Jim reviewed some of the bigger items that changed. Committee discussed staffing issues. Jim discussed fleet purchases. He asked BFAC to review the CIP for accuracy. Chairman Wurth asked for the Ham Fest donation and Keep Maury Beautiful donation be changed to $2,500, as previously discussed. Committee agreed . She also asked for the EDC budget to be changed to $10,000, as previously discussed. Committee discussed. Alderman Hull stated he believes $20,000 will be spent for economic development next year. Alderman Whittenburg stated he does not believe an alderman serving on the EDC board or an EDC member that rotates should attend a trade show seeking retail. He thinks this should be done by a company that specializes in this. Committee discussed. Other donations were reviewed. Alderman Duda suggested having a resolution to adopt a line-item resolution for grants and donations, and also to provide documentation that qualifies them to make the request. Alderman Whittenburg made a motion to change the EDC donation amount to $15 ,000. Seconded by Chairman Wurth. Motion carried 2-1 with Alderman Hull opposed. Jim has asked Jerome Dempsey to provide a number for the building of the fire hall so we can pay for it outright to avoid borrowing the amount. He and Dan worked to identify road projects and make sure they are in the COlTect funds for the CIP. Alderman Duda asked for clarification of resurfacing being in State Street Aid and construction of new roads under the CIP for Streets and Highways. Jim discussed it relates to borrowing of funds. Alderman Duda asked if a debt service fund had been discussed to develop for the City. Jim stated yes. Alderman Whittenburg and Alderman Duda discussed the TAC budget and projects. Dan Allen reviewed proposal numbers he received on the 31 signal study ($82,000 on top of the $26,000 already spent). Committee discussed the repairs of the Crossings circle. BFAC Meeting 5/5/ 14 2 Alderman Hull made a motion to favorably recommend the budget with the noted changes from this meeting. Seconded by Alderman Whittenburg. Motion canied 3-0; no opposition. Item #4 - Capital Improvement Plan Review (Jim Smith, Finance Director) - Chairman Wurth did not have any changes to the CIP. She asked everyone to review to be discussed at the executive sessiOn. Item #5 - Discussion on City Administrator Evaluation (Rick Graham, Mayor) - Mayor Graham stated the BFAC needs to decide what procedure they want to follow for the evaluation and use the form forwarded from Alderman Duda. He recommended each alderman meet with Mr. Lay to review their evaluatin. Chai1man Wmih stated last time evaluations were submitted without names and Alderman Duda stated Mayor Dinwiddie put them in one matrix to Mr. Lay who then was able to respond to any issues. Mayor Graham asked for all evaluations be to him by Sunday so he can develop the matrix. Item #6 -Approval of BFAC Meeting Minutes from Apri114, 2014- Alderman Hull made a motion to approve the minutes from April 14, 2014. Seconded by Chairman Wurth. Motion canied 3-0; no opposition. Roundtable Discussion- No discussion (Audio recording of meeting is available on Company server file.) Chairman Wurth made a motion to adjourn . Seconded by Alderman Hull. Meeting adjourned . James H. Smith, Finance Director BFAC Meet;ng 5/5/ 14 3