September 22, 2016 - The Shelby County Commissioners approved the budget for the 2016-2017 year during their special meeting held Monday, September 19, 2016.
Judge Allison Harbison reported to the commissioners the general budget is $6,605,202. The combined road and bridge budgets for all precincts is $4,019,312 for a total including general and road and bridge of $10,524,514 making up the operating budget.
Judge Harbison stated the budget will raise less revenue from property taxes than last year so it goes to the appraised values. She also said there is a 2.39% decrease from last years budget and every corner which could be cut has been.
"I don't know that it could be cut anymore without salaries or cutting employees out. Hopefully we'll rebound next year," said Judge Harbison.
As the commissioners considered the budget, and when motions were entertained, opinions were voiced seeking some alteration to the budget relating to commissioners' remaining balance in their budgets. Roscoe McSwain, Commissioner Precinct 1, announced he would like the fixed assets fixed in his budget and the other commissioners agreed they sought the same. Judge Harbison asked Clint Porterfield, Auditor, if any of the commissioners have spoken with him while the budget has been being prepared and he state they had not.
Jimmy Lout, Commissioner Precinct 2, stated they needed to wait and see how much there would be leftover before they could say anything and he still didn't know exactly how much he wanted to put in the budget.
"There wasn't any use in having this meeting then, if we weren't going to get this budget passed," said Judge Harbison.
McSwain felt it was common knowledge what his wishes have been leading up to the meeting.
"Ain't nobody getting their feathers ruffled up, because they've known all along, everybody's known that I was going to budget my cash carryover. I'm not going to get in next year and can't pay my bills, so if I get in a catastrophe or a flood and not be able to reuse the money that's available," said McSwain.
Porterfield addressed the court and outlined the amount of funding each commissioner has remaining, if all of the expenses are to be expended and with no notification as of the meeting date of any FEMA money to be received. The amounts included Precinct 1: $75,000; Precinct 2: $138,000; Precinct 3: $161,000; Precinct 4: $505,000.
His question to the court was, in factoring in estimated expenses for the remainder of the year, what amount of money the commissioners seek to set as fixed assets.
McSwain wanted to know, in regards to FEMA funding, if the money would be added to the budget as it is received or if it would be included in the budget currently.
"As we have discussed, if the FEMA money were to come in after the adopted budget in this fiscal year, that would increase your cash balance of which we would come back and recognize the revenue and budget it for that next year as an adjustment," informed Porterfield, as he continued,"If the money is received in next fiscal year, we're simply crediting the expense account, therefore you would be able to spend it immediately with no budget adjustment."
McSwain referenced a sheet of paper which he stated he was handed on the morning of the meeting indicating there was $344,000 remaining in the Precinct 1 account, "There's no way I will spend $344,000 in two weeks, and that was my point. I'm not going to leave $300,000 laying on the table that I will not be able to use unless it was an emergency situation next year, and I don't see what's wrong with budgeting most that money as a fixed asset in the new budget and then if it ain't completely funded, even if I don't have that much left what's wrong with that?"
The sheet of paper contained the capital outlay for each precinct, as of Tuesday, September 20, 2016 the capital outlay for each precinct reflected Precinct 1: $344,785.21; Precinct 2: $444,043.41; Precinct 3: $270,002.56; and Precinct 4: $724,913.96.
Judge Harbison asked for an estimate of what each commissioner wanted shifted to "fixed assets." McSwain stated $250,000 and Jimmy Lout, Precinct 2, followed suit requesting the same amount. Judge Harbison asked Bradley Allen, Commissioner Precinct 4, what he wanted as he already had $200,000 in fixed assets. Allen stated he would like to keep it all, which Judge Harbison stated they can't set that amount because they don't know for sure how much there will be and the budget has to be filed with the state by October 1.
Porterfield gave additional information to the court about available funds per budget and what amount would be appropriate for them to keep in fixed assets. He stated Precinct 1 is $263,000 under budget, Precinct 2 is $304,000 under budget, Precinct 4 is $228,000 under budget and has a cash balance of $700,000 and even spending all of the budget this year $500,000 would remain. He said anywhere from $500,000-$600,000 would be appropriate.
Precinct 3 is $113,000 under budget and Porterfield was not certain $250,000 would be appropriate as it was it was only $19,000 less than the current cash balance. It was decided Precinct 3 could handle $150,000 and Travis Rodgers, Precinct 3 Commissioner, agreed.
In speaking with Allen, Judge Harbison asked him how much he wanted to designate for fixed assets and she confirmed with Porterfield there would be a $500,000-$600,000 carryover. Porterfield interjected additional information for consideration.
"Let me just say, while we're at this exercise, this money if you're going to budget cash it doesn't have to go into fixed assets exclusively. To use more money, if he wants to put x-amount under fixed assets and x-amount in gravel, then now's the time to do it," said Porterfield.
It was decided for Precinct 4 to put $250,000 in fixed assets and $250,000 in the gravel account.
A motion to approve the budget with changes carried.
During the meeting Jimmy Lout, Commissioner Precinct 2, wanted to make sure everyone is aware no raises are included in the budget. Judge Harbison added some departments even had cuts and she didn't think anyone's budgets are higher this year.
Following discussion of the tax rate, a motion carried to approve the new general tax rate of .5733 combined with the road and bridge special rate of .0795 for a total tax rate of .6528. According to the adopted budget, this budget will raise less revenue from property taxes than last year's budget by an amount of $207,251, which is a 2.39% decrease from last year's budget.
A motion carried by the commissioners to reject air conditioning bids which were read at the previous commissioners court meeting held on September 12, 2016. It was determined unless a large job such as replacing the entire air conditioning system in the courthouse was being considered, seeking bids in the future will not be necessary for maintenance projects.
A motion made by Commissioner McSwain to reject the gravel bids and an oil bid presented during the September 12, 2016 meeting carried. Commissioner McSwain clarified if the commissioners purchasing materials at different periods which equates to $50,000 or more it does not need to be presented to court; however, if they are making a one time purchase that equates to $50,000 or more then that would need to be presented to court.
A motion carried that starting October 1, if a project is $50,000 or more the commissioner has to present it to court for approval.
The meeting adjourned at 10:06am.
Recap of items of interest from the September 12, 2016 meeting: A line item transfer of $37,000 was approved to allow for the Sheriff's Department to purchase a new Tahoe. This purchase was made possible by transferring funds from the Sheriff's Department Housing fund and the fuel fund. It was approved for the county auditor to conduct the audit of the District Attorney's forfeiture/seizure fund. A correction was made to the 2017 calendar for holidays since Christmas Eve will actually fall on a weekend and Christmas day will be on a Monday. It was approved to allow the county employees days off on December 25th and 26th. Ann Blackwell was appointed to the Tri-County Community Action Board of Directors. Repair to the Historic Courthouse elevator by way of the contingency fund in two payments totaling $9,862 was also approved.
