City of McIntyre
June 16, 2104
Mayor Horne called meeting to order, Council Member Eugene Moore led in prayer.
Present were: Mayor Vicki Horne, Council Members, Eugene Moore, Katherine Scott, and Rico Myrick, Council Member John Carswell arrived at 5:27pm, also present were Clerk Pamela Roberts, Chief of Police Wayne Amerson and City Attorney David McRee.
Motion to approved the June 2nd meeting minutes was made by Scott seconded by Myrick, no opposition, motion carried.
Agenda Presented New Business As:
a. 2013 Audit Report – Wright and Wright
b. 457B Program – Contribution
c. Resolution to Call for Special Election in November to fill vacancy
d. Executive Session to discuss personnel issues.
Agenda Presented No Old Business.
Mayor Horne addressed first issue on the agenda and welcomed Brian Wright.
Wright presented council with copies of the 2013 Audit Report, saying that he would be going over some things with council, highlighting several areas, and saying that council could talk about any thing they would like to, asking council to turn to page 4, which shows the balance sheet for the entire city, noting that this page includes the water fund, SPLOST, the general fund and all the activities, noting that they were the assets and liabilities as of December 31, 2013, saying at the top shows the assets starting with cash, saying that the governmental activities are the general fund and the SPLOST fund, and the business type activities are the water fund noting that totals were in the right hand column.
Wright said that the city’s investments reading $914,912 is the local government investment pool money and that the balance end of 2012 was somewhere in the high $800’s, noting that some of the funds in the account were from the Georgia Power franchise, saying these funds were mostly used to support the general fund and some transfers to the water fund, and that some had been used to fund the early stages of the treatment plants, noting that the balance was a good indicator of how the year went financially, saying that it had went up a bit for the current year, noting some receivables, inventories and other receivables, saying that the current assets were at 1.2 million and the non-current assets were the capital items, land, buildings, equipment, net of the depreciation, saying total of depreciative and non-depreciative assets equal 2.5 million, saying that is where the most of your value
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June 16, 2104
in a government is the capital and that was what the city was doing taking the money and re-investing in capital projects and that is what you do, noting a total assets of about 4 million, and then the liabilities, saying that city was in a great situation, with no debt currently, noting the city did have a fire truck debt note a few years ago, but has been paid off, noting that there was no current debt, but saying there would be with the current project, saying that net position was basically taking your assets less the liabilities and you could see where the equity is, and most of the city’s equity was in the capital assets, noting the 2.7 million, noting restrictions were mainly for capital projects, saying that this was the city’s SPLOST money, saying that the most important figure the city looks at each year was the unrestricted net assets at $1,122,377, saying that this was a very strong number for any government but especially a government of this size.
Wright moved to page five, explaining that this page is where you are trying to take the expenses for each of the departments, noting a good example was the public safety, reading the figure on the left hand side of $455,999 for charges for services, revenues, fines totaling $80,000 noting to the right you could see the difference between the expenses and charges of services , saying each of those departments have negative numbers, saying that most governments have negative numbers there, that what you are doing is taking out expenses from each department, taking away any charges for services, any grants you may receive in any of those departments then you are saying ok these are the burdens of these departments that have been left basically for the taxes of the government, saying that the $875,168 in the middle of the page is the burden that the governmental activities department has put on the general revenues of the city, going to the bottom of the page Wright indicated where it shows the general revenues, property tax, LOST, franchise tax, taking out transfers, noting that sometimes the city has to transfer funds to the water, but saying that the $179,000 in transfers this time were mainly for the wastewater project, so the change in net position for governmental activities was a negative $53,196, saying they do the same thing for the water fund, which showed a $137,000 to the positive so the most important number from this page was 3 up from the top far right hand column which was $84,591, that represents the net income if you will of the government for the year that includes the depreciation, the full accrual, like a private entity that they do, so again that’s a good year, a strong year financially, to increase your equity by $84,000 is a good year.
Wright went to page 6, which breaks out the first page council looked at, noting this is the governmental funds, noting the general fund, the capital project funds, finished up the CDBG, with no assets or liabilities with the CDBG, and the police narcotic fund showed a little cash, saying that there was really nothing to say here, noting that most of the city’s assets are sitting inside the general fund, saying that the city had some cash in the capital projects fund that you get the monthly money from the county.
City of McIntyre
June 16, 2104
Wright had council turn to page 7, which was the income statement for the governmental funds, the same funds as previously viewed, noting the general fund having funds of 1.1 million and expenditures of $967,000, so you had a excess revenues over expenditures in the amount of $150,000 saying the city transferred some money out like he had talked about, but still had a positive, saying that you had a positive in the general fund of $48,000, saying that in the capital projects fund there was received $82,000, and the city spent some money on resurfacing in the amount of $45,141.00, then with the $86,885 the city did some work on the well house, and bought some police equipment, so the city spent a little more in the capital projects fund than you brought in, but that it was okay, because the city had $117,000 of cash when the city started the year, saying that happens a lot, because some years you see you don’t spend a lot in the capitol SPLOST, then you spend a little bit to do some bigger projects, and that it was very typical.
Wright had council go to page 10, saying this was the water fund, that these number was on the second page council had looked at, but not very detail, saying this was a break down and a little easier to see, noting that the water department had sales of a $100,000, then that you could see a breakdown of the expenditures, total operating expenses of a $179,000, showing an operating loss of $81,000, saying the city sold the timber that was on the treatment site, saying some was sold in 2012 and sold some in 2013, asking the clerk if that was right, noting that it all may have been cut in 2012 but some funds were collected in 2013, saying that $40,000 of the money came in 2013, and after that money came in there was a loss of $41,000, noting that here were capital contributions of $77,325 from SPLOST that was used to build the water building saying that net income was $35,000 then you had transfers of $101,000 saying the bottom line was that $137,000 of that income, which there was, but also understand operating loss of $81,610. Wright asked if USDA had started talking about user rates for the system, saying that he knew there would be a sewer rate, but had they talked about raising the water rates. Clerk and Mayor said that they had. Roberts said that there had been an increase, Wright asked when did it happen, Roberts said in February of this year, Wright asked how much of an increase in the month were you seeing. Roberts said that the budget was around $125,000 and hoped to bring in around $126,000 noting that it would be close, Wright said that you were raising 2012, and that the city didn’t transfer the garbage, Roberts said no, that they usually do that, but that she did take it out of the budget and tried to get the funds to where the city was able to cover the expenditures. Wright said that if you looked at someone like Ivey for instance saying they did that big sewer project a couple of years ago and they have struggled, but their financial reserves was not as good as McIntyre’s, saying they have had to raise and raise and still aren’t really bringing in enough. Wright said that he was never in agreement to raise the rates but that it was good to do it a little along if needed instead of all at once. Moore said that was the reason they moved one employee out of the water department, Roberts said to try to save on the salaries, Wright said that was good, that was another option to try and reduce expenditures. Wright asked what USDA was looking for in rates, Roberts said around $30-$35. Wright
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June 16, 2104
asked what the water rates were now, Clerk said $17.50, Wright said for 2000, and Roberts said yes, Wright said that wasn’t bad, that he has seen higher.
Wright had council to go to page 21, noting that this page was the fixed assets foot notes that shows the increases in the fixed assets and noted the different increases, saying the governmental activities was the general fund, saying that what is here is the equipment of $133,414 and a decrease of $77,325 noting that is something they have to do, saying this is the money spent out of SPLOST. Noting that at the bottom the construction in progress $ 95,424 in the business type activities saying that was the money spent this year on the treatment plant, saying he believe that to be all engineering cost.
Wright had council go to page 25, which showed just the general fund saying that it was the budget to actual variance noting a few things to point out, first the LMIG Grant $21,518, saying that was new money, and the energy excise tax started in 2013 up at the top the $14,365, franchise fees in the amount of $696,000 saying that everything else was pretty much the same. Wright said that on page 26 shows the expenditures actual to budget, saying at top of the page shows current operating, saying the city did a good job of staying within the budget, saying that the city was a little over budget in the general administration but not much, saying that everything was pretty much in line.
Wright had council to turn to page 29, where you could see the detail of the general fund expenditures, showing a line by line where the budget was, what the actual was and the variance, saying this was a very important page, because you spent some time coming up with a budget and trying to stay within those lines, and for the most part the city did that, again the general administration shows a small overage of $4,800, the police department was under budget, fire, street, and recreation departments were under budget also which is great, saying that is just what you want to do, if all possible.
Wright went to page 31 which showed the sales tax, the projects and what the city spent in each category for the years, what you have spent in the current year and the total, saying that you can see what all the city has been able to do with that 1 percent sales tax, most of which for this year went to street paving and the water fund projects, saying that the police department spent $4,400 the street department spent $5,100 noting the good things the money has been spent for.
Wright said that is what he would point out and that if anyone had any questions he’d be glad to answer them, or if they had questions later they could call them and they could talk about later, saying there were not findings other than the normal ones they always have, no unusual findings this year.
Mayor Horne thanked Wright for being here.
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June 16, 2104
Moore said that he had received a price on the timber for the 441 track from Gaywood products, saying that he hadn’t looked at it. Roberts opened the quote reading the price they would do it for starting with Pine tops at $7.30 per ton, pine pulp $10.30 per ton, pine chip and saw $18.00 per ton, pine soft timber $25.00 per ton, hard wood pulp $7.50 per ton, hardwood pallet $17.50, hardwood miscellaneous logs $29.50 per ton, oak logs $45.50 per ton saying that 2000lbs equal one ton. Myrick asked if it was mostly pine on the property, Moore said yes, Mayor Horne asked if they were going to clear it, Moore said no that they would just be thinning it, Scott asked if the city would have to pay someone to get the roots up, Moore said yes, saying he wouldn’t do the stumpage but would chip the pine tops and clean that up. Moore said there was some hard wood but not much. Mayor Horne asked if that was the only bid they got, Moore said that is the only one he called. Mayor Horne asked if Gaywood was the same one that did the treatment site, Moore said that he was. Mayor Horne asked Council if they wanted to go with Gaywood, Scott said that she recommends going ahead and doing it since the city used them before. Mayor Horne asked if that was a motion. Scott motioned to hire Gaywood Company to thin out the trees, seconding the motion was Myrick, no opposition, motion carried.
Scott had no report.
Myrick asked Moore about the humps on Vinson Road, asking if that was the best they were going to do. Moore said yes it was, Mayor Horne said that there were several areas that were bad and asked Moore if he had rode on it. Moore said that he was following what DOT had talked about when he was talking to them, saying they told him there were several areas that needed to be dug out back down to base and started over, saying that those were the areas the city had been patching and once the city gets those areas patched, and the sewage comes through the city could come back with an inch and a half and resurface the whole road, that it would make everything better.
Myrick suggested that the next time, when they are here instead of using the machine that they use for parking lots, that they use the bigger machine and it would do a smooth road. Mayor Horne asked Moore if he would call them and have them come back down and check it, Moore said that he would call them. Mayor Horne asked about the paving at the park, Moore said that he and his family went on vacation.
McRee said that he believed the clerk had it on the agenda about the resolution the superintendent needed from the city to set up for the special election in November to fill Vickie Mixon’s unexpired term, saying that he would have the paperwork down for the Mayor to sign this week, but that they
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could go ahead and vote. Motion that the city do the resolution for special election in November was made by Scott, seconded by Myrick, no opposition, motion carried.
Roberts noted the 457 plan that the city was going to contribute the $20.00 per month saying that the annual cost of the contribution has gone up to $180.00 per year per employee, so if the city does the $20.00 per month then turn around and take out the $180.00 you would only be contributing $60.00 to each employee each year. Scott asked what was the $180.00 paid out to, Roberts said that she guessed you could call it administration fees, noting that this went up from $5.00 to $180.00. Mayor Horne asked if the city could talk to some other investors. Roberts said that she had spoken with Steve Durden and he said the city could cover the cost of the fees by increasing the amount of the monthly contribution from $20.00 to $35.00, that way you would still be contributing the $20.00 in each employee. Roberts said that GMA was looking at other providers but could not do anything until October. Mayor Horne asked if the city could put the money somewhere else until they come up with another provider, Roberts said that you could always pay at the end of the year and not hold that money anywhere special. Myrick asked about Hoarce Mann, Roberts said that she didn’t know anything about it. Mayor asked Myrick if he had any information, Myrick said that he had his card, Mayor Horne asked Myrick to forward the information to Roberts.
Roberts said the second thing she had was the easements for the Railroad, saying that the cost for one was $26,000, $25,000 for the easement and a $1,000 for insurance and the other is $6,000, $5,000 for the easement and $1,000 for the insurance. Roberts said that she also had to have the railroad listed on the insurance and had done that. Mayor Horne asked if the city would get the money back, Roberts said yes that the money was reimbursable.
Motion for the Mayor to sign the railroad easements was made by Moore, seconded by Scott, no opposition, motion carried.
Amerson said that he would be gone a couple of days for vacation. Myrick asked if the police department had received all the equipment for the police cars, Amerson said that they had. Mayor Horne asked about the copier at the police department Amerson said that Miles was still working on it.
Mayor Horne asked if anyone had heard anything from the fire department, Roberts said that she had not.
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June 16, 2104
Shinholster asked about the area where they fixed the water leak on Vinson Road, wanting to know if the city was going to do anything about it, Mayor Horne said that they would look into it. Myrick said that he told the street department to go there with the torch and heat it then take level and knock it down some. Mayor Horne asked if they would need to rent anything, Myrick said no that they could use the butane torch.
Shinholster asked if the water department was paying for itself, Scott said that yes, since they removed a person from the water department and did the budget. Myrick asked what Shinholster was talking about, Shinholster said that the water department is suppose to be self-sufficient, Scott said that it is now, and the Mayor said that it’s better than it’s been. Roberts said that the city was now able to pay its bills without any transfers. Shinholster asked if the city discontinued the wastewater fund, Roberts said that it had not. Shinholster asked how much money was in the wastewater fund, Roberts said that she did not keep a lot of money in the account and moved money from LGIP when necessary but believed there was around $430., Shinholster asked how much money was put in there last year, Roberts said around $100,000.
Mayor Horne entertained a motion to go into executive session for personnel issues, Motion to enter into executive session was made by Myrick, seconded by Scott, no opposition, motion carried.
Mayor Horne called meeting back to order at 6:00, stating that neither motion nor vote was taken while in executive session.
Mayor Horne asked if there was any discussion about the personnel issue discussed, Motion was made by Moore to terminate James Hagins as Park Director on ground of entering an unauthorized contract with Middle Georgia Consortium, Inc., seconded by Scott, no opposition, motion carried.
Motion to adjourn was made by Carswell, seconded by Scott, no opposition, motion carried.