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HomeMy WebLinkAbout2021-11-24 Commissioner Minutes WEDNESDAY, NOVEMBER 24, 2021 The Franklin County Commissioners met Wednesday, November 24, 2021, with the following members present: David S. Keller, John T. Flannery and Robert G. Ziobrowski. Chairman Keller presided and after calling the meeting to order, a Moment of Silence, and the Pledge of Allegiance, proceeded with the business of the day. The meeting was live streamed. On a motion by John T. Flannery, seconded by Robert G. Ziobrowski; unanimously approved to adopt the agenda. There was no public comment. On a motion by John T. Flannery, seconded by Robert G. Ziobrowski; unanimously approved all bills presented and ordered paid. The minutes of the November 17, 2021 meeting were reviewed. These will be decided upon in the afternoon approval session. The Board reviewed Agreements, Contracts and Reports. John Boozer, Project Manager, was present to provide more information on board action item #2 change order for bulkheads in the historic courthouse. Mr. Boozer explained that GWB stands for drywall. They had to get the bulkheads down the middle of the rooms and these bulkheads were the best, most cost effective, way to do it. They are tastefully done and no one will notice the difference. The items will be decided upon in the afternoon session. Teresa Beckner, Fiscal Director, presented the 2022 proposed budget to the Board. expenses for all operations. This same information will also be available for review on the -in- is prepared by staff. The Budget-in-Brief includes more graphics and valuable information again this year. The Budget-in-Brie highlighted the following key items: When she presented the Preliminary (All Requests) budget th to the Board on October 13, it showed a net use of reserves for the General Fund of over $8.1 million to fund the operational, personnel and capital requests of all operations. deliberations, they provided their priorities for 2022: Preserving services that support County citizens by funding programs for human services and veterans; maintaining public safety and security; streamlining government and delivery of services through the use of and improvements to technology; considering personnel and capital expansion requests, keeping in mind current operations and future operational plans; and they asked her to provide for competitive pay and benefits and the resources that staff need to perform their duties. Ms. Beckner continued that to use existing reserves to meet those priorities. They directed at that time to prepare the budget reflecting no increase in taxes, as well as an expectation to end 2022 with 75-90 days of General Fund expenses in reserves. This budget reflects funding to accomplish your priorities. At the same time, the 2022 Proposed General Fund budget reflects use of $3.6 million in unrestricted reserves. Taking a selective approach, they evaluated overall budget requests, considering operating costs, as well as requests for personnel and capital expansion. Revenue assumptions and line item requests were evaluated for reasonableness, historical trends, and consistency with priorities, and adjustments were made accordingly. They are anticipating net savings from the 2021 budget of more than $3 million that they plan to apply to fund the $3.6 million need, reducing the net use of additional reserves for 2022 to $600,000. Additionally, we Continued on page 2 utilized other funds to pay for minor and major capital items where possible, including discretionary funds available to several operations as well as commissary funds that the jail has. Our capital projects fund, Fund 40 (not to be confused with the Court Facility Improvement Project Funds), and equipment replacement fund, Fund 41, are budgeted to pay for $1.6 million of capital items that would have otherwise been funded by General Fund dollars. Ms. Beckner continued that the General Fund is where they account for operations funded primarily by tax dollars. The General Fund pays for Court Administration and Magisterial District Judge operations, Adult and Juvenile Probation, the County Jail, elected official offices, Affairs, the Public Defender, Property Management, Geographical Information Systems (GIS), and Archives. It also provides financial support to outside agencies, as well as Human Service programs, the 911 center and HazMat operations, Domestic Relations, and a portion of the administration of the Community Development Block Grant and Liquid Fuels programs. General Fund revenues total $52.8 million showing an increase of $2.6 million (5.2%) compared to the revised 2021 budget of $50.2 million. The property tax millage rate for general purposes remains the same as 2021 at 25.0 mills in the 2022 proposed budget. Using assessment totals, the value of a mill increased 2.1% from 2021 to 2022, contributing $32,158 per mill, for a total of $803,950. For budget purposes, they compared current year revised budget for tax receipts not just assessed value. There are other adjustments to consider which affect the amount actually available. Those adjustments include discounts and penalties, assessment appeals, and collection of prior year delinquencies. Taking a more comprehensive approach, the budget for proposed taxes is approximately 1.4% higher than 2021, amounting to approximately $600,000. Based on assessed values the value of 1 mill of taxes is $1.56 million using the report from the Tax Office earlier this week. The $400,000 increase in Charges for Services is primarily for fees estate market fueled by low interest rates. Additionally, included in Transfers from Other County grant is from the federal government and is to assist with recovery from the economic effects of the pandemic on the County and our community. It is restricted in its use to specific categories. The 2022 budget assumes that $1.5 million will go to the General Fund. Ms. Beckner continued that in summary, the primary drivers of the increase in General Fund revenues are the growth in proposed tax revenues as well as the utilization of $1.5 million in ARPA (American Rescue Plan Act) funding. Ms. Beckner explained that the total General Fund expense budget is $56.4 million, compared to the revised operating budget for 2021 of $55.0 million, reflecting overall growth of 2.6%, or $1.4 million. Expenses are presented in a different format in the Budget-in-Brief resources are allocated on an operational level. General Fund Wages and Benefits total $31.1 million, which makes up 55.2% of the expense budget, compared with $30.3 million (55.0%) for the 2021 revised budget. The portion of the increase related to wages is 2.6% and total benefit the result of the mix of staff complement. Health insurance benefits show an increase of 3.3%, -insured plan in the past two years. Under Operating Costs is everything from service agreements to supplies, vehicle operating expenses, insurance, travel, utilities, and occupancy expenses, among other general costs. It does not include wages and benefits, capital purchases, and transfers to other operations. The 2022 budget for Operating Costs of $17.3 million makes up 30.7% of all General Fund expenses and is approximately $264,000 less than the 2021 revised budget, primarily reflecting reduced expenses from operational adjustments in response to the pandemic. Transfers to support other County operations of $6.1 million is $369,000 more than the 2021 revised budget at $5.7 million. Increases in Aging and Domestic Relations were offset by reductions in Children & Youth Services and 911 operations. In addition, funds are provided to allow consideration of additional contributions to Ag Preservation and the Bridge Maintenance program. Consistent funds have been set aside in a contingency account for Continued on page 3 expenditures that require further review or action. For 2022, contingency is budgeted at almost $1.9 million. Which provides for computer and equipment replacements, software, new projects, and potential personnel expansion where needed. The net effect of General Fund operations shows that without adding additional revenue, expenses exceed revenues by almost $3.6 million. Ms. Beckner continued that based on 2021 projected budget performance and with the impact of this proposed budget, General Fund unrestricted reserves at the end of 2022 are expected to be $10.6 million. That equates to 68 days of General Fund expenses, still within our policy and the recommendation of our auditors and GFOA best practices. The ability to maintain reserves at the 60-90 days level has helped the County be able to carry our General Fund into each the new year without borrowing money. A healthy fund balance has also contributed to our ability to maintain our AA bond rating, making the market more favorable for the County to borrow money for new projects or refinance existing debt. Ms. Beckner included the tax dollar breakdown from the Budget-in-Brief. This shows how County property tax dollars that are collected are distributed to various types of operations of the County. This only includes general operating millage and does not include tax dollars generated for debt service which are used exclusively for paying principal and interest on County bonds, notes and other long-term debt. They grouped related activities to make it easier for readers to understand the various services the County provides. For 2022, the allocation of the property tax dollar provides for the following: Crime, Courts and Corrections which is comprised of Court Administration, MDJ offices, court-related elected officials, Jail operations, Drug Task Force, District Attorney and Public Defender offices, Adult and Juvenile Probation, and General Fund transfers to court-related operations outside the General Fund. Making up the largest share of GF expense, this category also requires the most tax dollars to operate. For every tax dollar collected, 76¢ goes to support the 3-Cs. For 2021, it was 78¢, and for 2020 it was 79¢. To explain this the $1.5 million allocation to the General Fund from the ARPA (American Rescue Plan Act) grant is applied against the expenses for these operations; Community and Taxpayer Services which is the next largest, requiring 10¢ of a General Fund tax dollar in 2022, compared with 8¢ for 2021 and 7¢ for 2020. This is made up of Tax Services (assessment and claims), GIS, Planning, Archives, Voter Registration and Elections, and support to cultural and recreational programs and community and economic development organizations. The increased allocation of tax funds to community and taxpayer services is administrative services charged back to the General Fund. These services cost 7¢ of each tax dollar for 2022, and were 6¢ for both 2021 and 2020; Emergency Services that uses 3¢ of each tax dollar in 2022 and 4¢ in both 2021 and 2020. These are the operat Fund support to the 911 center and hazmat; Human Services where the General Fund contributes to programs that provide support to individuals in the community, including Aging, Drug and Alcohol, Mental Health, Intellectual and Developmental Disabilities, Early Intervention, primarily funded with federal and state dollars, the General Fund still contributes 3¢ of each tax dollar to supporting human service programs in 2022. For 2021, a General Fund tax dollar contributed 2¢ and 3¢ for 2020; and Other is the category that is primarily Property Management services to some of the General Fund County buildings. The remaining 1¢ of General Fund tax dollars goes here for 2022. For 2021, this was 2¢ and 1¢ for 2020. Ms. Beckner continued that with regard to the overall Countywide budget, for ALL FUNDS AND SERVICES, here are a few noteworthy items: The 2022 budget reflects no property tax increase. The 2021 millage rate of 29.1 remains unchanged. The 29.1 mill rate is made up of 25 mills for general purposes and 4.1 mills for debt service. General purpose millage is unchanged since 2016, and debt service was last increased in 2019 by 1.5 mills to fund the Court Facility Improvement Project; total revenue increased from $152.5 million to $169.6 million, primarily from receipt of additional ARPA (American Rescue Plan Act) funds, and Continued on page 4 from an assumed debt issuance to continue work on the Court Facility Improvement Project; total expenditures for All Operations and All Services equal $166.2 million, a slight decrease from $166.3 million for 2021; included in All Funds and All Operations is $15.1 million for capital expenditures to continue construction activities on the Court Facility Improvement and related projects, as well as necessary equipment replacements. This is a decrease of almost $7 from 2021 and reflects completion of the Judicial Center, Administration Building, and Archives Facility, as well as substantial progress on the Historic Courthouse; and under the County Operations portion also provides for spending of a portion of the ARPA (American Rescue Plan Act) funds. Ms. Beckner ended her presentation with the following summary: The budget has no tax increase; the proposed 2022 budget includes continuing with the Court Facility Improvement provided for operations which require additional funding; the budget allows for a pay increase to employees; and it provides for personnel and capital expansion as necessary. Ms. Beckner opened the floor for questions or comments from the Commissioners. Chairman Keller informed Teresa, Carrie and the staff they did a great job based on the prior advice from the board. They will have prudent use of savings and cash reserves. She touched on the priorities of the board during her presentation. He turned it over to his colleagues. Commissioner Flannery asked about the ARPA funds and how she referred to the $1.5 million to increase the county budget out of the $30 million but he asked that we can only pull in $1.5 million? Ms. Beckner explained we received $15 million already. Staff proposed only utilizing $1.5 million for the General Fund for essential workers compensation. Staff believes that operations could utilize additional ARPA funds, but want to review with the board before determining a final amount. He informed Teresa her presentation was well done. Commissioner Ziobrowski said he is supportive of the budget as presented. He asked Fiscal Director Beckner to provide more information when available about the overall change in assessment value of real estate in Franklin County, and the impact of assessment appeals in the past year. Ms. Beckner will provide him more details to answer his question. He stated that they are consistent from year to year however last year was a COVID year and we did fiddle with tax dates so that could contribute to the anomalies. On a motion by John T. Flannery, seconded by Robert G. Ziobrowski; unanimously approved to accept the proposed nty days with the date to approve the budget on December 15, 2021. The Board recessed and will reconvene at 2:00 p.m. for final approval of the items that were reviewed. The Board reconvened at 2:00 p.m. There was no public comment. On a motion by John T. Flannery, seconded by Robert G. Ziobrowski; unanimously approved the minutes of the November 17, 2021 meeting. The Board reviewed Commissioners Office matters. On a motion by John T. Flannery, seconded by Robert G. Ziobrowski; unanimously approved for the Chairman of the Board to execute Change Order #022 from eciConstruction, LLC to install owner-furnished cabinets in -Phase II Project at a cost of $1,863.00. Continued on page 5 The Board reviewed additional Commissioners Office matters. On a motion by John T. Flannery, seconded by Robert G. Ziobrowski; unanimously approved for the Chairman of the Board to execute Change Order #GC-115 from Lobar, Inc. to provide GWB bulkheads at the Historic Courthouse first floor ceilings to facilitate building services distribution at the Historical Courthouse Project at a cost of $21,720.55. The Board reviewed Grants matters. On a motion by John T. Flannery, seconded by Robert G. Ziobrowski; unanimously approved for the Chairman of the Board to execute the amendment to extend the 2020 Emergency Solutions Grant dated July 24, 2020 in the amount of $176,375.00 to May 31, 2022. All other terms remain the same. The Board reviewed Human Resources matters. On a motion by John T. Flannery, seconded by Robert G. Ziobrowski; unanimously approved for the Chairman of the Board to execute the agreement between the County of Franklin and United Concordia Company, Inc. for administrative and claims payment services for the period of January 1, 2022 through December 31, 2024. This is required to conduct business as a self-funded dental group. There is no direct cost associated with services. Cost of services for claims processing are factored into monthly premiums. The Board reviewed Jail matters. On a motion by John T. Flannery, seconded by Robert G. Ziobrowski; unanimously approved for the Chairman of the Board to execute the quote from Eastern Elevator Service and Sales Company to provide preventative maintenance service for the Jail's hydraulic elevator at a cost of $2,100.00 for the period of March 1, 2022 through March 1, 2023. This agreement provides inspection service and covers a monthly maintenance examination including cleaning, lubricating and performing adjustments. This agreement also includes a regular systematic examination and cleaning of the car top, elevator machine room, elevator pit and shaftway components. The Board reviewed additional Jail matters. On a motion by John T. Flannery, seconded by Robert G. Ziobrowski; unanimously approved for the Chairman of the Board to execute the agreement between the County of Franklin and Water Treatment by Design, LLC to provide a water quality assurance program/closed loop system for heating and cooling at a cost of $3,900.00 for the period of January 1, 2022 through December 31, 2023. This service agreement permits the system to run at its most efficient and effective way, which will extend the life and operations for which it was designed. This service includes: quarterly testing, filter inspections and replacements and monitoring any corrosion which is monitored and rated in each loop. The Board reviewed Property Management matters. On a motion by John T. Flannery, seconded by Robert G. Ziobrowski; unanimously approved for the Chairman of the Board to execute the contract between the County of Franklin and RA Hill, Inc. to provide hauling snow from the Courthouse, Admin Annex and Franklin Farm Lane parking areas on an as needed basis at a cost of $4,500.00 for the period of January 1, 2022 through December 31, 2022. The Board reviewed Risk Management matters. On a motion by John T. Flannery, seconded by Robert G. Ziobrowski; unanimously approved for the Chairman of the Board to execute the Service Agreement between the County of Franklin and NAC, A Division of Eastern Time, Inc. to provide service on the Access Control System, Duress Alarm System, and Video Surveillance System, as installed at a cost of $12,694.75 for the period of January 1, 2022 through December 31, 2022. The annual Inspection and Preventative Maintenance are as follows: Former Admin Building, Adult Probation, Ag Extension, Ag Heritage, Agency on Aging, Clarks Knob Radio Tower Site, Courthouse-Courthouse Annex, New Archives Building, Reentry Service Center, Department of Emergency Services LEAD Building, and 4 Magisterial District Justice locations, Firehouse Hearing Complex, Human Service, Archive Building, Transportation Building 3. This agreement also will perform Inspection on Devices only Controls that is not on Franklin County Network at DJ Plum and DJ Nicklas office. Continued on page 6 Commissioner Flannery wished all staff a very Happy Thanksgiving and he wanted to go on the record to say that he makes the best mac and cheese in the county and he challenges said he accepts the challenge and he will meet him the morning of our Christmas party for the contest. The Board wished a Happy Thanksgiving to everyone. The meeting was adjourned at 2:10 p.m. with a motion by John T. Flannery; seconded by Robert G. Ziobrowski. Carrie E. Gray County Administrator/Chief Clerk FRANKLIN COUNTY COMMISSIONERS ____________________________________ David S. Keller, Chairman ____________________________________ John T. Flannery ___________________________________ Robert G. Ziobrowski