Jasper County Board of Commissioners
April 30, 2018
Called Meeting Minutes
Comm. Pennamon called the meeting to order at 6:00 p.m.
Commissioners Present: Chairman, Carl Pennamon, Bruce Henry, Don Jernigan, and Doug Luke. Vice-Chairman, Craig Salmon was absent.
Staff Present: Mike Benton, County Manager, Clerk, Sharon Robinson, and County Attorney, David Ozburn.
Pledge of Allegiance:
District 3, Don Jernigan
Comm. Luke made motion approve the agenda adding New Business Item 1 – Proclamation for Rev. Jimmy Horton, Henry seconded; passed unanimously.
Luke – Noted he received several calls on Public Works and the great job they did on Pitts Chapel Road Bridge.
Henry – None
Jernigan – None
Pennamon – None
Self-Contained Breathing Apparatuses Financing:
Mr. Benton noted our Fire Rescue SCBA’s expired and became inoperable. The BOC approved the purchase of the 46 SCBA’s at it’s December 4, 2017 Board Meeting for a total purchase cost of $332,021.56. Staff was asked to obtain additional lease financing options using the amount received from the conservation breach on the property being developed as the Peninsula at Jackson Lake Property as a down payment. The amount received from the covenant breach was $54,243.67.
Mr. Benton noted he received amortization schedules from BB&T. BB&T allows a 60-day window once you purchase the items, next week is that 60-day window. We need to make a decision on the terms as listed:
Principal – $332,021.56
60 Months, 3.72%, Monthly Lease Payment – $6072.82, Annual Lease Cost – $72,873.84,
Total Payments – $364,369.20
84 Months, 3.86%, Monthly Lease Payment – $4516.97, Annual Lease Cost – $54,203.64
Total Payments – $379,425.48
Principal – $277,777.89
60 Months, 3.72%, Monthly Lease Payment – $5080.68, Annual Lease Cost – $60,968.16,
Total Payments – $304,840.80
84 Months, 3.86%, Monthly Lease Payment – $3779.02, Annual Lease Cost – $45,348.24,
Total Payments – $317,437.68
Mr. Benton noted a representative from BB&T will be here the end of this week to conduct closing and there will be one payment that will be due this current fiscal year so we will need to decide if the payment will be charged to contingency line item or Fire Rescue budget.
Comm. Luke questioned if there is a pre-payment penalty.
Mr. Benton noted there is not.
Comm. Luke clarified that the life span of the packs is 15 years.
Chief Finch noted yes.
Comm. Pennamon noted we need to have a plan going forward for 5-10 years.
Comm. Luke made motion to approve the resolution of lease financing of $277,777.89 for 60 months at 3.72% with a monthly lease payment of $5080.68 and annual lease cost of $60,968.16 total payments at term of $304,840.80 with anticipation to try to pay off early; Henry seconded; Luke Henry vote yes; Pennamon, Jernigan vote no. Tie vote.
Comm. Jernigan made motion to approve the resolution of lease financing of $332,021.56 for 60 months at 3.72% with a monthly lease payment of $6072.82, annual lease cost of $72,873.84 and total payments at term of $364,369.20 with anticipation to pay off early, Pennamon seconded; Jernigan and Pennamon vote yes; Luke and Henry vote no. Tie vote.
Mr. Benton again noted the 60-day window and how time is of the essence.
Comm. Henry made motion to table this until after the discussion of the FY2019 Budget, Pennamon seconded; passed unanimously.
Rev. Jimmy Horton – Proclamation:
Ms. Robinson read the Proclamation for record. (A copy is attached and made a part of the official minutes).
Comm. Luke made motion to adopt the Proclamation as read, Henry seconded; passed unanimously.
Comm. Pennamon noted the reason he wanted this done tonight is because Rev. Horton will be honored on Sunday.
FY 2019 Budget Discussion:
Mr. Benton reviewed the obligated mandated increases with Board.
Comm. Jernigan noted he would really like the rate increase to start out at 5% with 2% COLA and 3% performance.
Comm. Pennamon noted then we will have to make up a shortfall difference of $426,000.
Comm. Jernigan noted that is just a starting point, we can come down from there.
Comm. Luke noted he would like to see us go with the rollback rate of 15.904 on budget; on the SCBA’s go with 84 months financing since there is no prepayment penalty; and take the $54,423.67 and apply it to the amount of 3% increase for county employees and we cut the amount we have to come up with; a win-win-win situation.
Comm. Jernigan noted if we can cut enough out of the budget we may be able to go up to a 4% pay raise.
Comm. Henry requested to look at each department that is increasing more than 10%; if we are going to look at cuts we should start there with those departments.
Comm. Pennamon noted the Sheriff has $168,000 in Sheriff vehicle financing that will be a lease purchase later in the fiscal year, so the amount will decrease.
Mr. Benton noted our revenue change is very small. This is why we went back to the FY2017 budget for FY 2018 budget. He thought the approach was that we maintain the budgets where they are currently adding the mandated obligated increases.
Mr. Benton questioned if the Board was willing to use some fund balance to make the budget whole.
Comm. Luke noted he feels like we can accomplish everything we are trying to do tonight, still make some cuts, get down as low as we can get and use some fund balance to balance the budget.
Comm. Pennamon noted he would like to go with current budget, and the mandated obligated and between 3% and 4% salary increase and try to do the cuts and use fund balance for the difference.
Comm. Luke noted this is not easy, but we have to remember we took away furlough days. This is not going to happen overnight.
Comm. Henry questioned if we know where we are on fund balance.
Mr. Benton noted the audited number on fund balance through June 30, 2017 is $4,539,810. He does expect a positive change in fund balance this year as well.
Mr. Benton reviewed the budgets with increases over 10% and explained the increases.
Comm. Luke asked to make a consensus on what we would like to see.
Commissioners agreed to shoot for a rollback of 15.904, with a 3% to 4% increase and we will need to look for $218,000.
Self-Contained Breathing Apparatuses Financing cont’d:
Comm. Luke made motion to approve the resolution of lease financing of $332,021.56 for 84 months at 3.86% with a monthly lease payment of $4516.97, annual lease cost of $54,203.64 and total payments at term of $379,425.48 with anticipation to pay off early, Jernigan seconded; passed unanimously
Comm. Henry noted we need to have a plan to pay off early and not just talk about it.
County Attorney Items:
County Manager Items:
Comm. Jernigan made motion to adjourn at 7:20 p.m., Comm. Luke seconded; passed unanimously.
Carl Pennamon, Chairman
Sharon S. Robinson, Clerk