CITY OF CLEVELAND CALLED COUNCIL MEETING 2019-2020 BUDGET JUNE 3, 2019 MINUTES  CALLED COUNCIL MEETING Mayor Shan Ash at 6:00 p.m.  The Called Council Meeting oft the Mayor and Council of the City of Cleveland was called to order by COUNCIL PRESENT: Nan Bowen, Annie Sutton, Kevin Stanley, and Bradley Greene.  APPROVALOF AGENDA  On motion by Nan Bowen, seconded by Annie Sutton, in favor- --Kevin Stanley and Bradley Greene, and carried unanimously, the Mayor and Council voted to approve the agenda for the. June 3, 2019 Called Council Meeting. Thej purpose oft the meeting is to conduct the first public hearing and consideration of  the 2019-2020 budget.  2019/2020 BUDGETI HEARING- 1ST CONSIDERATION Mayor Ash read the budget changes for each department:  General fund revenues Minimal increases  Showing growth in the city - Woodlands Camp, purchases of vacant commercial properties for  development, annexations - this will increase revenues Minimal increase in fund reserve due to cutbacks in each department  Administration  Salaries, worker's comp and payroll liabilities increased  Liability insurance increased - admin pays all liability insurance for each department (excluding Did not increase the Historical Society contribution. We have an: idea to help raise funds, which Reduced engineering fees to relieve funding for new program for police department Will continue with brick program to go towards flowers and pots on the square and the perimeter  water/sewer) we can present later.  Shop  Vacant position - we are only looking for employees with a CDL license.  Property maintenance and supplies are up - mainly due to the aging oft the facilities at the shop  and the need to replace equipment  Police  ChiefF Foster made changes to. his budget to allow for the new program. We believe this program is essential for the efficiency, safety, and accurate: reporting for the police department. ChiefFoster elaborated on the importance and the cost savings to purchase the: new program for  his department.    Called Council Meeting 2019/2020 Budget Hearing June 3, 2019 Minutes Page Two  2019/2020 BUDGETI HEARING- 1ST CONSIDERATION continued  Fire  ChiefP Pruitt proposed a 3rd. person shift, but has agreed tol hold offt this budget year. Computer software support - increased to take a share oft the cost ofIT support and storage  Court  Increase in Prison Board fees - more arrests are being made  Increase in court interpreter  Computer software support - increased to take a share ofthe cost ofIT support and storage  Streets  Minimal increase  Most projects can bej paid with SPLOST and LMIG funds  Sanitation  Tipping fees increased due to a new contract with transfer station and county. Will increase again mid-year. The city will need to look at an increase in sanitation rates due to the increase in  tipping fees.  Supplies increased - dumpster replacement program - 10ayear  City Park  No increases  Will continue with brick program to go towards improvements to the park  Water/Sewer Revenues  Although building is now picking up, the city does not want to overstate the revenues that could be collected in connection fees. Exceeding the projected revenue will just reduce the need for The use ofthe fund reserve has doubled. The city will need to consider a rate increase sometime  using retained earnings throughout the budget year.  within the budget year.  Water  Salaries, worker's comp, and payroll liabilities increased - includes 1 vacant position (open position for the past couple of budgets), certifications, and CDL certification Repairs increased due to the Mayor and Council approval of the water tank maintenance program  - all tanks.  Sewer  Salaries, worker's comp, and payroll liabilities increased - includes 1 vacant position (open position for the past couple of budgets), certifications, and CDL certification    Called City Council Meeting 2019/2020 Budget Hearing June 3, 2019 Minutes Page Three  Although the city does not adopt the budget per line item, Mayor Ash noted every line item with a costs difference from the previous budget year. Thej proposed 2019/2020 Cleveland Budget, with changes, as  follows:  GENERAL FUND REVENUES  AccountTitle TAXES current yr prop tax TAVT (new veh tax) real estate transfer tax franchise tax/electric franchise tax/Cable franchise tax/telephone sales tax 3%)  2018-2019  2019-2020  differences difference %  $536,966.00 $590,660.00 $110,000.00 $120,000.00 $1,500.00 $195,000.00 $200,000.00 $21,600.00 $14,400.00  $53,694.00 $10,000.00 $500.00 $5,000.00 -$6,600.00 $600.00 $25,700.00 2.84% $5,400.00 $35,000.00 $2,130.00 $20,000.00 $4,000.00 $0.00 $0.00 -$250.00 $3,000.00 $160.00 $1,500.00 $12,700.00 $900.00  10.00% 9.09% 33.33% 2.56% -30.56% 4.17% 54.00% 21.21% 58.04% 8.70% 19.05% 0.00% 0.00% -50.00% 5.00% 6.84% 150.00% 45.36% 42.86%  $2,000.00 $15,000.00 $15,000.00 $15,400.00 $5,800.00 $25,000.00 $80,000.00 $1,000.00 $250.00 $63,000.00 $2,500.00 $2,500.00 $40,700.00 $3,000.00  $905,000.00 $930,700.00  unrestricted hotel/motel (50%of $10,000.00  beer/wine excise tax distilled spirits excise tax premiums tax financial institution tax occupational tax interest on tax Occ. tax late fee LICENSES AND PERMITS beer/wine permit re-zoning fees land dist. Permits building permits Certificate of Occupancy INTERGOVERNMENTAL REVENUES LMIG Rev - Streets  $165,000.00 $200,000.00 $3,670.00 $230,000.00 $250,000.00 $21,000.00 $80,000.00 $1,000.00 $500.00 $60,000.00 $2,340.00 $1,000.00 $28,000.00 $2,100.00  Appalachian RDEO- reimburse $33,600.00  $33,600.00 $50,000.00  0.00% $50,000.00  0.00%    CHARGES FOR SERVICES election fees sanitation collections returned check fee FINES AND FORFEITURES  $500.00 $25.00 $57,000.00  $800.00 $25.00 $60,000.00 $50.00 $1,000.00 $25,000.00 $75,000.00 $500.00  $300.00 $15,800.00 $0.00 $3,000.00 $50.00 $0.00 $5,000.00 $23,000.00 $25,000.00 $0.00  60.00% 4.65% 0.00% 5.26% #DIV/O! 0.00% 25.00% 17.69% 50.00% 0.00%  $340,000.00 $355,800.00  fines 1st offender charge INVESIMIENTINCOME interest income MISCELLANEOUS INCOME misc. income water/sewer police dept. misc. income City Park Brick Program OTHER FINANCING SOURCES fund reserve  $1,000.00 $20,000.00 $50,000.00 $500.00  Administrative duties due from $130,000.00 $153,000.00  $320,955.00 $376,841.00  $55,886.00  17.41%  ADMINISTRATION Account Title Salaries Overtime Retirement Workers Comp Employee Bonds Pension Plan Expense Credit/Debit Fees Audit Fees Engineering Services Legal Services Computer Software Support Repairs Liability Insurance Telephone  2018-2019  2019-2020  difference $  difference %  $326,540.00 $ 360,040.00 $ 33,500.00 10.26%  $ 1,165.00 $ $ - 32,770.00 $ $ 16,000.00 $ $ 450.00 $ $ 2,500.00 $ $ 1,500.00 $ $ 11,000.00 $ 80,000.00 $ ) 15,000.00 $ D - 17,000.00 $ 5,500.00 $ - 28,415.00 $ ) 5,700.00 $  1,300.00 $  135.00 11.59%  Payroll Taxes - Fica/MC $ 25,070.00 $  27,545.00 $ 2,475.00 9.87% 37,300.00 $ 4,530.00 13.82% 17,460.00 $ 1,460.00 9.13%  550.00 $ 2,870.00 $ 1,700.00 $  100.00 22.22% 370.00 14.80% 200.00 11.76%  12,100.00 $ 1,100.00 10.00% 50,000.00 $ (30,000.00) -37.50% 12,000.00 $ (3,000.00) -20.00% 26,400.00 $ 9,400.00 55.29%  5,000.00 $ 6,200.00 $  (500.00) -9.09% 500.00 8.77%  39,000.00 $ 10,585.00 37.25%    Advertising Dues Officials Training Elections Zoning board Supplies Electricity Electricity - Streets Capital Outlay Equipment Contingencies  $ 6,000.00 $ $ 5,500.00 $ 18,000.00 $  2,500.00 $ > 3,300.00 $ 14,000.00 $ $ 11,000.00 $ ) 70,000.00 $ 15,000.00 $ 10,000.00 $ 2,000.00 $  4,000.00 $ (2,000.00) -33.33%  6,000.00 $ 18,600.00 $ 3,600.00 $  500.00 9.09% 600.00 3.33% 300.00 9.09%  5,000.00 $ 2,500.00 100.00% 16,500.00 $ 2,500.00 17.86% 12,200.00 $ 1,200.00 10.91% 80,000.00 $ 10,000.00 14.29% 10,000.00 $ (5,000.00) -33.33% 5,000.00 $ (5,000.00) -50.00% 7,000.00 $ 5,000.00 250.00%  SHOP  Account Title Salaries Overtime Payroll" Taxes- Fica/MC Retirement Workers Comp Repairs Bldg/Property Maintenance Supplies Heat/Gas Equipment  2018-2019 30,640.00 $ $ 510.00 $ $ 2,230.00 $ $ 2,915.00 $ $ 625.00 $ $ 2,000.00 $ $ 5,000.00 $ 7,000.00 $ $ 1,350.00 $ $ 5,000.00 $  2019-2020  difference $$  difference %  34,005.00 $ 600.00 $ 2,650.00 $ 3,460.00 $ 700.00 $ 770.00 $ 1,500.00 $ 7,000.00 $ 9,000.00 $ 1,200.00 $ 4,000.00 $  3,365.00 10.98% 90.00 17.65% 420.00 18.83% 545.00 18.70% 75.00 12.00% (45.00) -5.52% (500.00) -25.00% 2,000.00 40.00% 2,000.00 28.57% (150.00) -11.11% (1,000.00) -20.00%  Clothing Allowance $ 815.00 $  POLICE  Account Title Salaries Overtime Payroll Taxes- Fica/MC 10% Retirement 10%  2018-2019 $ 935,174.00 $ 15,000.00 $ 93,517.00 $ 93,517.00  2019-2020 $ 974,913.00 $ $ 22,285.00 $ $ 99,719.00 $ $ 99,719.00 $  difference $$  difference %  39,739.00 4.25% 7,285.00 48.57% 6,202.00 6.63% 6,202.00 6.63%    Workers Comp 2.82% Life Insurance Employee Training $ Med Service- Employee Clothing Allowance Computer Software $ Support Dues Supplies Radios Capital outlays Electric Fire Department Account Title Salaries Overtime Payroll Taxes Workers Comp Health Insurance Support Repairs Telephone Supplies Gasoline Heat Contingencies  $ $ $ $  22,840.00 750.00 4,000.00 1,000.00 8,000.00 12,500.00 100.00 32,815.00 1,000.00 56,000.00 3,800.00  $ $ $ $ $ $ $ $ $ $ $  29,381.00 $ 866.00 $ 6,000.00 $ 1,500.00 $ 9,000.00 $ 87,379.00 $ 200.00 $ 23,000.00 $ 3,000.00 $ 68,756.00 $ 4,500.00 $  6,541.00 28.64% 116.00 15.47% 2,000.00 50.00% 500.00 50.00% 1,000.00 12.50% 74,879.00 599.03% 100.00 100.00% (9,815.00) -29.91% 2,000.00 200.00% 12,756.00 22.78% 700.00 18.42%  $ $ $ $ $  2018-2019 $245,000.00  2019-2020  difference: $  difference %  $ 267,000.00 $ 22,000.00 8.98% 4,000.00 $ (4,000.00) 0.00%  Fireman pay 1099 $ 8,000.00  $ $ $ $ $ $ $ $ $ $ $ $  2,000.00 $ 20,000.00 $ 8,500.00 $ 7,370.00 $  2,000.00 #DIV/O! 1,200.00 6.38% 1,500.00 21.43% 3,870.00 110.57%  18,800.00 7,000.00 $ 9,500.00  6,500.00 $ (3,000.00) 0.00%  Computer Software $ 3,500.00  2 20,000.00 $ 1,000.00 - 25,500.00 $ 9,000.00 $ 1,200.00 - 10,000.00  30,000.00 $ 10,000.00 50.00%  600.00 $ 35,000.00 $ 2,600.00 $  (400.00) -40.00% 9,500.00 37.25% 1,400.00 116.67%  8,000.00 $ (1,000.00) -11.11% 8,000.00 $ (2,000.00) -20.00%    City Court  Account Title Salaries Overtime Payroll Taxes- Fica/MC Retirement Workers Comp Employee Training Prison board Court interpreter Computer Software Support Repairs Supplies Postage  2018-2019 46,700.00 $ 2,645.00 $ $ 3,780.00 $ $ 4,935.00 $ $ 695.00 $ $ 1,000.00 $ $  10,000.00 $ $ 300.00 $ $ 2,000.00 $ $ 300.00 $ $ 3,000.00 $ $ 300.00 $  2019-2020  difference $$  difference %  50,605.00 $ 2,900.00 $ 4,090.00 $ 5,350.00 $ 1,310.00 $ 800.00 $ 13,800.00 $ 600.00 $ 7,900.00 $ 200.00 $ 2,000.00 $ 350.00 $ 300.00 $  3,905.00 8.36% 255.00 9.64% 310.00 8.20% 415.00 8.41% 615.00 88.49% (200.00) -20.00% 3,800.00 38.00% 300.00 100.00% 5,900.00 295.00% (100.00) 0.00% (1,000.00) -33.33% 50.00 16.67% 200.00 200.00%  Computer Equipment $ 100.00 $  STREETS  Account Title Salaries Overtime Payroll Taxes- Fica/MC Retirement Workers Comp Clothing allowance Repairs LMIG - Street Repairs LMIG Safety Streets Supplies Gasoline  2018-2019  2019-2020  difference $$  difference %  3 32,915.00 $ 38,520.00 $  5,605.00 17.03% 205.00 17.60% 440.00 16.86% 580.00 17.01% 795.00 66.25% (45.00) -5.52%  $ 1,165.00 $ $ 2,610.00 $ $ 3,410.00 $ $ 1,200.00 $ $ 815.00 $ $ 7,000.00 $  1,370.00 $ 3,050.00 $ 3,990.00 $ 1,995.00 $ 770.00 $  5,000.00 $ (2,000.00) 0.00%  $ 65,000.00 $ 41,000.00  0.00%  $ 10,000.00 $ $ 3,255.00 $  7,000.00 $ (3,000.00) -30.00%  4,300.00 $  1,045.00 32.10%    SANITATION  Account Title Salaries Overtime Payroll Taxes- Fica/MC Retirement Workers Comp Clothing allowance Telephone Supplies Electricity Gasoline  2018-2019  2019-2020  difference $  difference %  $$ 94,110.00 $ 102,970.00 $ 8,860.00 9.41%  5 - 6,195.00 $ 6,790.00 $ $ 7,675.00 $ 8,400.00 $ $1 10,030.00 $ 10,975.00 $ $ 2,480.00 $ 2,500.00 $ $ 1,900.00 $ 1,540.00 $  595.00 9.60% 725.00 9.45% 945.00 9.42% 20.00 0.81% (360.00) -18.95% (300.00) -30.00%  $ 1,000.00 $  700.00 $  Landfill Tipping Fees $110,000.00 $ 115,000.00 $ 5,000.00 4.55%  $ 2,000.00 $ 13,330.00 $ 11,330.00 566.50% $ 10,500.00 $ 11,900.00 $ 1,400.00 13.33%  $ 1,550.00 $ 2,400.00 $  850.00 54.84%  City Park  Account Title 2018-2019 Property lease $ insurance Supplies  2019-2020  difference $$  difference % 400.00 12.90% (700.00) -12.28%  3,100.00 $ 5,700.00 $  3,500.00 $ 5,000.00 $  $  WATER/SEWER REVENUE FUND Account Title Charges for Services Water Revenue Late Fees Water System Connection Fees  2018-2019  2019-2020  difference $$  difference %  $ $ $  948,000.00 $ 965,000.00 $  17,000.00 1.79% 10,000.00 33.33% (20,000.00) -40.00%  30,000.00 $ 50,000.00 $  40,000.00 $ 30,000.00 $    Sewer Revenue Sewer System Connection Fees Returned Check Fee Investment on Income Interest Income Miscellaneous Revenue Retained Earnings $  $ $ $  990,000.00 $ 1,100,000.00 $  110,000.00 11.11% (20,000.00) -40.00% (100.00) -16.67%  50,000.00 $ 600.00 $  30,000.00 $ 500.00 $  $  4,000.00 $  15,000.00 $  11,000.00 275.00%  233,755.00 $ 285,375.00 $  51,620.00 22.08%  WATER Account Title Salaries Overtime Payroll Taxes- Fica/MC Retirement Workers Comp Health Insurance Life Insurance  2018-2019 $ 286,570.00 $ 27,045.00 $ 24,000.00 $ 31,365.00 $ 9,000.00 $ 37,950.00 $ 300.00  2019-2020 $ 347,000.00 $ $ 31,300.00 $ $ 28,940.00 $ $ 37,800.00 $ $ 3,000.00 $ $ 15,000.00 $ $ 44,275.00 $ 350.00 $ $ 5,100.00 $ $ 15,000.00 $ $ 55,000.00 $ $ 2,000.00 $ $ 66,550.00 $ $ 6,000.00 $ $ 2,000.00 $ $ 40,000.00 $ $ 1,500.00 $  difference $$  difference %  60,430.00 21.09% 4,255.00 15.73% 4,940.00 20.58% 6,435.00 20.52% 740.00 32.74% 6,000.00 66.67% 6,325.00 16.67% 50.00 0.00% 200.00 4.08% (15,000.00) -50.00% 19,000.00 52.78% (500.00) -20.00% 6,050.00 10.00% (500.00) -7.69% (500.00) -20.00% 7,700.00 23.84% (500.00) -25.00%  Pension Plan Expense $ 2,260.00  $  Clothing Allowance $ 4,900.00 Engineering Services $ 30,000.00  Computer software support Maintenance/labor Liability Insurance Telephone Advertising Supplies Tires  $ 36,000.00 $ 2,500.00 $ 60,500.00 $ 6,500.00 $ 2,500.00 $ 32,300.00 $ 2,000.00    WATER Radio Read Meters Chems-Water Gasoline Water Misc.expense Equipment Hydrant new/replacements Administrative Services SEWER Account Title Salaries Overtime Payroll Taxes- Fica/MC Retirement Workers Comp Health Insurance Life Insurance Employee Training  $ 100,000.00 $ 15,000.00 $ 15,000.00 e 165,000.00 $ 5,000.00 $ 80,000.00 $ 17,500.00 $ 130,000.00  $ 90,000.00 $ $ 18,000.00 $ $ 18,900.00 $ $ 200,000.00 $ $ 1,000.00 $ $ 60,000.00 $ $ 10,000.00 $ $ 153,000.00 $  (10,000.00) -10.00% 3,000.00 20.00% 3,900.00 26.00% 35,000.00 21.21% (4,000.00) -80.00% (20,000.00) -25.00% (7,500.00) -42.86% 23,000.00 17.69%  2018-2019 $ 236,910.00  6,655.00 20,260.00 26,700.00 $ 5,200.00 $ 31,625.00 $ 250.00 $ 600.00  2019-2020 $ 310,305.00 $ 18,560.00 $ 25,160.00 $ 32,890.00 $ 6,580.00 $ 37,950.00 $ 300.00 $ 1,500.00 $ 5,660.00 $ 5,000.00 $ 2,500.00 $ $ 30,000.00 $ 7,000.00 $ 50,000.00 $ 20,000.00  difference $$ difference $ 73,395.00 30.98% $ 11,905.00 178.89% $ 4,900.00 24.19% $ 6,190.00 23.18% $ 1,380.00 26.54% $ 6,325.00 20.00% 50.00 0.00% 900.00 150.00% $ 1,550.00 37.71% $ (5,000.00) -50.00% $ (2,400.00) -48.98% $ (5,000.00) -14.29% $ (3,000.00) -30.00% (65,000.00) -56.52% $ 5,000.00 33.33%  %  $ $  Clothing Allowance $ 4,110.00 Engineering Services $ 10,000.00  Maintenance/labor Postage Capital Outlay Plant update/repairs New line: materials Equipment  $ 4,900.00 $ 2,000.00 $ 35,000.00 $ 10,000.00 115,000.00 15,000.00  1,500.00 $ (500.00) -25.00%    Called City Council Meeting 2019/2020 Budget Hearing June 3, 2019 Minutes Page Eleven  2019/2020 BUDGETHEARING: - 1ST CONSIDERATION continued  Mayor. Ash summarized the department budgets. Hotel/Motel Fund $19,500.00 Confiscated Cash $10,005.00 Water/Sewer Fund $2,490,875.00 Totaling $6,298,631.00  General Fund  $3,778,251.00  Mayor Ash compared the proposed budget to the budget totals of16/17 $5,157,482; 17/18$5,457,605; Mayor. Ash commented the city is growing in a positive way with commercial growth and thanked the Annie Sutton thanked all the department heads for making cutbacks on expenditures. Ms. Sutton Mayor. Ash asked if anyone in attendance had any comments on the budget. No one expressed any On motion by Bradley Greene, seconded by Kevin Stanley, in favor - Nan Bowen and Annie Sutton and, and carried unanimously, the Mayor and Council voted to approve the first consideration ofthe On motion by Annie Sutton, seconded by Nan Bowen, in favor - Kevin Stanley and Bradley Greene, and carried unanimously, the Mayor and Council voted to adjourn the Called Council Meeting ofJune 3,  and 18/19: $5,734,936 (The budget years listed did not included confiscated funds) council for their work with the department heads on completing the budget. realizes it is not an easy decision ofwhere to cut expenditures in the budget.  comments.  2019/2020 Budget Hearing.  2019. at 6:36 p.m.  Shan. Ash,  Mayor  Kevin Stanley,  E0  7  VocBowen Nan Bowen,  Council Member  Greene,  Council Member  DA  Bradley  ATTEST Conn Tracass,,  R  Annie Sutton,  Council Member  Clerk City  Dpsire