NOTES – JULY 2014 BOONE COUNTY COUNCIL MEETING
All members present, Secretaries Crystal Raub and Chelsea
Young
Meeting was called to order at 8:30 a.m.
Council approved the meeting minutes from its June
meeting without amendment.
RE-APPROPRIATIONS:
Health (Cindy Murphy):
Requested moving just over $2700 from two lines
(Environmental and Clinic) to Office Machines/Equipment to purchase a new
freezer unit to meet new CDC requirements on temperature fluctuations, which
our current freezer does not. Approved.
ADDITIONAL APPROPRIATIONS:
Circuit Court (no one present):
Requested $734 for Equipment to replace to courtroom
cameras which have failed.
Requested just under $2800 for Library in order to pay
off a contract which is being cancelled. This should leave the court with
significantly lower cost next year as Judge Edens switches to a different,
lower-cost service, in line with the other two courts. Both Approved.
Highway (Rick Carney):
Requested $43,000 from Cum Bridge into Small Bridge
Inventory to account for funds transferred out earlier in the year to correct a
clerical error. Approved.
Requested $1M from MVH for Stone and Gravel. This is the
money discussed last month, and transferred from an investment account created
when the state handed control of former state road 334 to the county. This simply appropriates the funds into the
specific line so they can be spent on the summer road maintenance program. Approved.
Requested $2M from multiple sources – Rainy Day, Economic
Development and COIT – for summer road maintenance program. Much discussion
followed as to the level of funding available and from which funds to take the
requested funds. Over the past few
years, the council has spent an additional $1.5M to $2M each year on the summer
road program, taking it primarily from the Economic Development fund, and
occasionally from the Rainy Day and Food & Beverage. Carney submitted a
program of roughly $4M earlier in the year, which included no additional road
“improvements” such as paving additional gravel roads. After much discussion,
Gene Thompson made a motion to appropriate $1.5M from the Economic Development
Fund. That motion failed for lack of a second. (The ED fund currently has just
under $2.5M balance.) Marcia Wilhoite made a motion to appropriate $1M from
Economic Development. Approved.
Auditor/CCD (Deanna Willhoite):
Requested appropriation of $198,000 into the fund from
the “CCD Investment Fund” in order to match the amount originally budgeted from
the CCD fund by the council but reduced by the state due to a lack of funds in
the CCD fund itself. The investment fund has been transferred into the CCD fund
proper, and this would simply appropriate the funds so they can be spent as
originally budgeted. Approved.
NEW BUSINESS:
Paige Sansone of Umbaugh presented the financial analysis
of selected funds requested by the council earlier in the year in order to
guide it in making budget decisions for the remainder of the year and into
2015, as well as developing cash reserve policies and develop a financial
planning model. Most importantly, the
analysis shows a continuing structural deficit in both the County General Fund
and the COIT (County Option Income Tax) Fund, the county’s two primary
operating funds. As a general accounting practice, Umbaugh recommends a 15%
minimum operating balance, as a percentage of disbursements. For primary
operating funds such as County General and COIT, however, Umbaugh recommends a
25% balance. At current trajectory, both those funds will be at roughly 7%
operating balance in 2015. In the monthly cash flow projections for the
remainder of the year, Umbaugh estimates that the County General Fund will have
a negative operating balance later this year before Fall installment property
tax collections are available. As a result,
Ms. Sansone recommended a reduction of $500,000 from the County General budget
before that time, either by shifting expenditures to other funds or reducing
budgets.
Ms. Sansone also noted that the CCD fund would be able to
absorb several capital items currently in County General IF the CCD levy rate
was increased as approved by the commissioners last month. Ms. Sansone’s
concluding comments included admonitions to maintain cash reserves both for use
in true emergencies and to absorb Circuit Breaker Tax credit losses, which are
extremely difficult to predict. Umbaugh’s recommendations for going forward
were summarized as follows:
1. Develop
cash reserve policies
2. Develop
and update capital improvement plans including timing of projects
3. Budget
disbursements to closely match estimated annual receipts to avoid depleting
cash reserves
4. Continually
monitor and update financial planning model – make course corrections when
necessary.
Richard Domonkos, Training Specialist from Indiana LTAP
(Local Technical Assistance Program) at Purdue addressed the council at the
request of Highway Superintendent Rick Carney regarding the Local Option
Highway User Tax (LOHUT), more commonly referred to as the “Wheel Tax.” The
LOHUT includes both the “wheel tax,” which is a tax per plated vehicle, and the
County Excise Surtax. All vehicles would
be included in one tax or the other, but none would pay both taxes. Most
vehicles – automobiles, motorcycles, trucks under 11,000 lbs. – would be
covered by the surtax.
Forty-nine counties currently have the LOHUT; in central
Indiana, only Boone and Hamilton counties do not. Mr. Domonkos will send the
council an electronic copy of his presentation, including an Excel spreadsheet
into which different funding level scenarios could be plugged. The council
asked County Attorney Bob Clutter to prepare and distribute information
regarding the procedure that would have to be followed should the council
decide to pursue the LOHUT.
Commissioner Jeff Wolfe approached the council regarding
the upcoming auction of the Russell & Hitch funeral home and parking lot northeast
of the county annex building. The county has expressed interest in the past in
purchasing the parking lot for use by county employees, but inquiries were
unsuccessful. The property will be auctioned in just over two weeks, which
presents a uniquely difficult circumstance for the commissioners to take
action. Council comments were generally supportive of making the acquisition if
feasible, but many, many questions as to how it might be accomplished remain.
Commissioner Wolfe, Council President Jacob and Attorney Clutter, as well as
Lebanon Mayor Huck Lewis will meet Thursday to discuss options and legal
requirements.
Council Vice President Marcia Wilhoite noted that a
request had gone out from the Auditor’s office yesterday regarding upcoming
budget preparations for 2015 asking departments to reduce their requests by 10%
from their 2014 levels. Wilhoite clarified that the shortfalls are primarily
from the County General and COIT funds, so reductions should focus there. Other
funds, such as those supported by user fees, could be used when possible, as
could the CCD fund for some capital expenditures currently in the other
operating funds. At the suggestion of Treasurer Debbie Ottinger, Wilhoite
suggested that Council members when meeting with department heads and elected
officials to consult on budgets discuss the Umbaugh report provided today.
Health Department Administrator Cindy Murphy encouraged
the council to explore the purchase of the parking lot mentioned earlier, as
well as stating that she has repeatedly approached the commissioners about
providing a safe and accessible parking area. Assessor Lisa Garoffolo provided
assessment information about the property, which includes five parcels on
either side of Meridian Street.
OLD BUSINESS:
Council member Gene Thompson addressed the information
provided last month by McCready &
Keen, managers of the Sheriff’s Pension plan. Thompson noted a 25% increase in
the county’s estimated unfunded liability from 2014 to 2015, as well as a
significant increase in the county’s anticipated contribution to the plan for
2015. Mr. Thompson asked that representatives of McCready & Keen be present
at next month’s council meeting to discuss those changes and the county’s
responsibility.
PUBLIC COMMENT:
Aaron Smith again addressed the council regarding the CCD
increase, noting that he did not intend to carry out a petition drive in
opposition to the CCD rate increase as he believe such opposition would be
unsuccessful.
Meeting adjourned at approximately 11:00.
Next regularly scheduled meeting will be Tuesday, August
12th, at 8:30 a.m.
