Budget Adjustment Spread Out Department Overages

News
Courthouse budget adjustment

Blue Ridge, Ga – Auditors recommended adjustment of $20,699 or three percent of the 2018 budget, which led to calls for clarity as to why some departments were showing over.

Chief Financial Officer Robin Gazaway presented the auditors Rushton and Company’s recommendation to adjust each line item by three percent as a result of overestimation in the initial report. Also, the adjustment spread out the amounts from departments or categories that went over in 2018. Three percent over or under is the traditional amount auditors use to justify budgets.

“It’s just for the financial statements and everything to make it look presentable for everybody, explained Gazaway, “for the general fund, I estimated that we would go into fund balance at about $556,000, and after the audit and all the adjustments, we only actually used a fund balance of $536,000.”

Gazaway and Johnson participated in a lengthy discussion about the need for the adjustment and keeping commissioners’ updated on the budget.

When reviewing the budget, Post One Commissioner Earl Johnson stated, “Though we may be $20,000 under what was total budgeted, some of the different categories and department of the county, going down the list, a lot of these have gone way over budget. We’re going to have to figure out a way that when they’re close to going over budget, the board needs to know about it.”

Gazaway used the Fire Department as an example, “They were like $700,000 over budget, but that’s an accounting adjustment that I have to make because of the lease payment on the three fire trucks. Technically, the only expense that is out of that is the first lease payment, but when I have to in accounting at the end of the year, I have to put the full amount on the books, and that is what made them look way over budget.”

According to Gazaway,  the capital lease revenue item washes out the majority of the expense, which still shows the Fire Department a little over budget. It’s currently around $18,000 over for the year 2018.

Health insurance went over $1.8M for the year, but Roads and Bridges was $498,000 under for the year.

The auditors adjusted the Roads and Bridges budget by $254,000, so it fell into the three percent recommendation. Since the category underspent, it took on some of health insurance’s overages from 2018.

“Their issue is over/under three percent. Even if you save a lot of money according to this, it could turn out negative,” stated Chairman Stan Helton.

Gazaway clarified that auditors want budgets to stay close to the actual number, so they can easily explain it to the state. Therefore, each line item adjusted by three percent to fall as close as possible to the actual budget number.

The initial budget featured Gazaway’s prediction for the year.  The amended budget revises that number and produces another total, but trouble starts when the final amended number exceeds the initial yearly budget.

“This is one of the only things I can judge by, where people wound up at the end of the year, said Johnson, “I guess I should just get a copy of the actual amount that every one of departments stood for the year.”

Helton suggested the auditors arrive early and meet with the commissioners to answer any questions about the final budget.

Johnson also addressed the need to know when departments go over or likely to go over budget. Due to the monthly budget reports showing a month behind, the commissioners vote to spend money without current budget estimates.

Gazaway explained that she speaks to unexpected expenses in her reports, and she can send her monthly summary to the other commissioners.

Rushton and Company should present the final amended budget and answer questions on the budget adjustment at the next Board of Commissioners’ meeting on June 25.

Cooler Days for Jail and Courthouse with new AC Agreement

News
AC Trane System

Blue Ridge, Ga – Sheriff’s Office resolved its air conditioner (AC) problems and entered into a new maintenance agreement with Trane.

Sheriff Dane Kirby advised partnering with Trane Heating and Cooling for all future AC issues with the jail and the courthouse. The two service agreements one covers mechanical and the other maintains the computer equipment. The mechanical agreement is roughly $10,000 annually, broken into $2,500 quarterly. The computer agreement is $3,570, with quarterly payments of $896. Together, the agreements totaled $13,570 a year.

“I think maintenance would really help. I’m not even going to get into what they found. They said one of them looked like it had a dead dog in it, but we’ve got [the system] going now,” said Kirby.

Kirby presents case for AC service agreement

Sheriff Kirby presented a case for entering into a maintenance agreement with Trane for future AC repairs.

Over the years, the jail and Sheriff’s Office faced constant AC issues and applied fixes deemed appropriate. Normally, the office called local contractors to fix the problems.

However, the system broke again a few weeks ago, and a Trane specialist advised setting the system back to zero. After resetting the system, Trane wanted to enter into a maintenance agreement with the county.

“We’ve reached a point that with the age of those units that if we don’t do something to maintain them, and see that the maintenance is done on an ongoing basis, we could be looking at some severe costs,” said Chairman Stan Helton.”

The life expectancy of a maintained Trane AC unit is 10 to 15 years.

The bill for the service charges totaled at $16,000, but with the proposed service agreement, Trane dropped the bill to $13,091.

“Looks like it’s very necessary to get it done,” stated Post Two Commissioner Glenn Patterson, “I think it would be well worth it to do so.”

With the new maintenance agreements, the county will pay $13,750 a year for the next three years.

Kirby’s 2019 budget didn’t account for the of the new service agreements but felt it would save money in the future.

Post One Commissioner Earl Johnson said, “It’s right in line with what we’ve spent on the system every year. I know last year we spent $15,000 or $16,000. I think it’s a good idea to let the people whose unit it is to actually fix it, and it sounds even better if they are going to maintain the courthouse as well.”

Also, the Board of Commissioners approved the purchase of a new ambulance from Custom Works for a total of $143,821, included in the 2020 budget.

Custom Works was the higher bid than MEDIX, who previously supplied ambulances for the county. However, MEDIX no longer has a service representative in Georgia. Trucks would have to travel to Indiana to receive service.

Custom Works offered a Georgia location for service with no exceptions to the requirements put forth by Director of EMA Robert Graham.

Highest Bidder Awarded Primary Waste Management Contract

News
Garbage Truck waste managment

Blue Ridge, Ga –Three-part motion named the more expensive company the primary waste management facility for Fannin County, awarded the second contract to the lower-cost company, and then placed a moratorium on industry permits.

The ongoing discussion between Advanced Disposal Services (ADS) and Cash Environmental Resources (CER) reached a quick conclusion. The three-part motion awarded both companies contracts and added a moratorium on solid waste collection and disposal permits for the next three years.

Post One Commissioner Earl Johnson stood in opposition to the motion and said that “It was confusing language and harder to understand than the Declaration of Independence.” Johnson also noted that no one discussed the three-part motion before or after it’s presentation to the Board.

No one addressed why ADS won the primary contract over CER. ADS  will cost the citizens of Fannin more because it charges per ton or per pound. CER offers a pay per bag system to the general public.

The two companies bided for the responsibility of Fannin County’s waste in the May 14 Board of Commissioners meeting. The organizations presented their proposals in a workshop on May 26.

board of commissioners

Johnson opposed the motion due to lack of discussion on the three-part motion.

During the workshop, the commissioners and facilities addressed the idea of both operating in the county but tabled the final decision to review pricing before awarding the primary contract. The bids included a rundown of prices, as follows:

ADS quoted a host fee of $0.20 per ton for the county with the following detailed breakdown: $57.64 per ton for commercial haulers, $57.64 per ton for general public across the scales, $57.64 per ton for general public trash bag delivery at scales, $0.12 per pound for general public at convenience centers, and $12.50 for bulky items and appliances. ADS can process a total of 866 tons per month.

CER quoted $1 per ton for the county host fee with the following itemization: $52 per ton for commercial haulers, $52 per ton for general public across the scales with a $40 minimum, $1 per bag for general public trash bag delivery, $1 per bag for general public at convenience centers, $3 per bag for contractors, $0.10 per pound for CND, yard debris, $15 for bulky items, $15 for appliances, $12 per pound for tires, and free recycling. Prohibited waste includes batteries, fluorescent lightbulbs, and non-hazard liquid waste.

“It’s been an objective Fannin County Board of Commissioners to provide competitive options to the citizens and visitors to the county for waste stream collection and disposal,” stated Chairman Stan Helton when he began reading the motion.

Still, ADS won the primary responsibility of hauling and disposing of garbage in a non-exclusive, three-year contract. The company also received access to convenience centers owned by the county.

In the second part of the motion, CER obtained a similar contract, but can’t operate out of ADS’s convenience centers. CER owns one transfer station, Sugar Creek C&D.

However, CER lacks a permit to haul solid waste, and the moratorium prohibits the company from attaining a waste management collecting and disposal permit for three years.

When asked about the decision, Chairman Helton stated, “The primary goal was to open up competition on this service and provide better service and economics to the citizens of Fannin as having only one provider has not been the best situation for the county.”

Currently, ADS manages collection for the county, and the contract expires in August 2019. The company’s also going through the process of being bought out by Waste Management Incorporated.  This prompted the Board of Commissioners to open the service up to bid.

Litter Free Roads For Fannin County

Community, News
litter clean up

Blue Ridge, Ga – Fannin County hired a team of detainees from the Colwell Detention Center to start picking up litter on the roadsides over the next year.

After two and a half years of waiting for an opening, a detainee detail became available for roadside cleanup in Fannin.

By hiring Colwell, six to ten detainees will work for four, 10 hour days for 52 hours a week. The minimum amount of hours spent on the roads a year would be 12,000. Presently, only two part-time employees scavenge the Fannin County roads for trash. They can only work 32 weeks a year and limited to 2,560 hours a year.

litter clean up

Work details will pick up litter for 4 days a week around the county.

“We can declare war on litter in Fannin County, and do some things along the road, keep them trimmed up, keep litter picked up,” explained Helton.

The public works budget will pay for the service at $39,500 annually, billing once a month. The agreement also offers a seven-day termination notice. The service begins on July 1, 2019, and expenses include a corrections officer to oversee the detail.

Director of Public Works Zack Ratcliff will direct the corrections officer and work detail to the roads for the day or week. From there, the officer supervises the job.

“I don’t think in any world, we could hire six people for that amount a year. It’s really a no brainer,” said Post One Commissioner Earl Johnson, “Our litter problem is an ongoing problem, and just the money, I feel safe in saying, I don’t know how much we’re paying, is going to offset, and the other saving we can look at some of these trees and intersections. The leaning trees can be cleaned up. We’re going to save money in overtime…I think we should feel very fortunate that this opened up.”

“We’ve been looking at this for quite a while. Some other counties around have like six teams in Union County. They’re definitely doing a good job with those guys,” said Ratcliff.

Additionally, paving bids came back for the county from: C.W. Matthews at $2,304,951.40, Colwell Construction Company at $1,774,980.74, and Colditz Trucking at $1,455,158.47. Colwell and Colditz didn’t provide a total for their bids and the amounts will be checked again before proceeding. The striping bid also came back at $92,000.

Ratcliff advised tabling the bids until he has time to review each one.

The GDOT grant covers approximately 70% of striping and paving costs.

Johnson Expresses Concerns Over Handling of Healthcare Change

News, Politics
board of commissioners

Blue Ridge, Ga – Post One Commissioner Earl Johnson voiced his opinion on the changes to the county’s healthcare policy.

In the May 28 Board of Commissioner’s meeting, Johnson, who missed the called special session on healthcare, made his thoughts on the changes known.

“The reason I felt that we went to self-insured, two or three years ago, was to save money, and that hasn’t been the case. I would hope that next year that we get some different proposals, said Johnson.

He stated that he couldn’t disagree with the tobacco policy, but the spousal carve-out warranted further consideration before moving forward.

Post One Commissioner Earl Johnson expressed concerns over the speed of the approval for the new healthcare policy.

“The carve-out, I would have liked to have seen some numbers on how much that is going to save us, stated Johnson, “Some of the employees have worked here for numerous years, and now their spouses are going to have to receive healthcare from somewhere else. It could be an undue hardship.”

It’s still too early to tell how many employees will be affected by the carve-out. Employees have until the end of the month to decide what to do.

Johnson stressed looking into different options next year, “We’re paying about the same. I feel like we have to get permission from this new insurance company to get injured, so I would like to a few options for us all to look at. For myself, I am coming off it.”

He also expressed an issue with the decision being made in a called meeting. “We had a meeting that Tuesday. I wished we had presented it then,” said Johnson, “We’re taking two weeks to go over an ambulance bid, and we had one meeting to change the entire insurance for the county.”

In closing, Johnson stated, “We’re trying to do everything for the cost not to rise, and I feel like that is what the commissioner’s did even in my absence. Everyone’s trying to keep the cost from going up.”

“I’m certainly in favor of looking at anything that reduces insurance costs. The claims can be terrible, and it impacts everybody, and we tried to choose the route that impacted the fewest people, “said Chairman Stan Helton, “We’ll certainly take that under advisement.

Fannin Operating Two Percent Under Budget

News

Blue Ridge, Ga – Fannin County’s operating two percent under budget through April of 2019.

As of April 30, 33 percent of the budget’s been spent for the year with Fire/EMS/ EMA, Tax Assessor, Sheriff’s Office, and County Jail still showing over budget due to the first of the year lump sum lease and loan payments made at the beginning of the year.

Per the April 23 meeting, Chief Financial Officer Robin Gazaway broke out the Public Works and SPLOST Budget to provide more clarity about where the money comes from and is going.

Fannin County Board of commissioners budget

Several departments are still showing over for the year.

“The public works old SPLOST is because we’re going to use the old money on the roads until it runs out, and then we’ll start on the new SPLOST,” explained Gazaway.

Baseball admissions factored in slightly into the recreation budget, but the month of May was not reflected in this report.

“We’re two percent under budget because we’re making up some of the differences from earlier in the year,” stated Gazaway, “LOST and SPLOST collections are up again this month from the prior years.”

Thirty-three percent into the county’s operating budget as of April 30, 2019.

 

 

EMA Director Robert Graham advised choosing Custom Works for the ambulance remounts at $104,980 as the most acceptable vendor for the job. The business also priced an add-on door locking systems for the ambulance at $1,800, bringing the total to $106,780.

“The locking system on the doors on the box [will be] activated front door locks when we lock the front doors,” said Graham, “We need this because we make many trips out of town to hospitals, and we need to lock the back of the truck. Our drugs and equipment are all in the back.”

Currently, seven doors and compartments must be locked with a key when getting out of the truck, and EMA employees must remember to unlock these doors when going back out to have access to them.

“It would be a great benefit to add that to this truck and going forward in the future to the standard bid specs,” lobbied Graham.

The truck won’t be available until closer to 2020 due to Chevrolet chassis unavailability.

Graham also confirmed that the county wouldn’t be short on equipment during this time with back-up trucks and placing an order for a new ambulance to replace an aging one with 90,000 plus miles on it.

Next, Graham introduced bids for a new ambulance to be purchased in the 2020 and on that year’s budget. Currently, new ambulance models aren’t available, but a waiting list has formed for 2020. Graham wanted to go ahead and get Fannin’s EMA name on the list.

“If we don’t get a truck each year that we fall behind and have maintenance issues,” said Graham.

“You had this idea that it was better to go ahead and place an order with the stipulation that it wouldn’t be delivered until after the first [of the year] because in the past you wouldn’t get this new ambulance until fall,” explained Helton to the room.

MEDIX proposed $140,130 for a 2020 model Chevrolet with the delivery after January 1, 2020. Custom Trucks and Bodyworks offered $143,021 for a 2020 model Chevrolet with the delivery after January 1. ETR, LLC proposed $187,768 for a 2019 model Ford F-450 with the delivery after January 1.

The Commissioners approved Custom Works for remount and tabled the new ambulance bids after Graham asked for more time to review.

Waste Management decision was tabled again to give the commissioner’s more time to review Advanced Disposal Systems and CASH proposals after meeting with both organizations.

Director of Public Works Zack Ratcliff experienced an equipment emergency after losing a 16-year-old mower in the middle of mowing season and had found a used replacement mower for $43,500 with 70,000 hours on it.

Post One Commissioner Earl Johnson said, “The piece that [the used mower] is replacing, we salvage it and get rid of it. It’s got way too many hours to put any more money into it.”

Ratcliff stated that he had no plans to fix the old mower with over 100,000 hours in it already.
The emergency purchase puts the county back at 10 mowers and back on track with mowing for the spring and summer.

Road Construction Beginning in June

News

Blue Ridge, Ga – GDOT (Georgia Department of Transportation) grants determine county road projects for the year and construction will begin soon.

Director of Public Works Zack Ratcliff approached the Fannin County Board of Commissioners with updated grant money estimates from GDOT for road improvements.

New asphalt construction will begin around June.

GDOT’s Local Maintenance and Improvement Grant (LMIG) goes toward improving roads and bridges in the county. The organization gave Fannin County $664,195.59 to lay new asphalt. The amount increased by $4,000 from 2018.

The estimated total for the paving project is $1.5M, which includes the grant with a 30 percent match required from the county. It would be paid out of the roads and bridges SPLOST.

The project is now out to bid according to Georgia’s guidelines. The acceptance of bids will run for a couple of weeks, and the paving should start around the first of June.

Commissioner Earl Johnson said, “He is glad of the amount that we’re receiving from the state.”

Next, GDOT’s Safety Assistance Program, part of LMIG, is providing funds for striping of county roads. The grant is for $69,000 with the county providing a 30 percent match for a total of $89,700.

Thermal Plastic will be used for the restriping in the county.

Chairman Stan Helton added, “We have to do this according to their standards, which is pretty exacting and pretty expensive, but it’s still worth it since they’re giving us this kind of money.”

Helton also commended Ratcliff for going to GDOT’s district office to lobby for more funds to update the county’s road striping project.

“This comes out to $8,800 per mile, and we’re looking at ten miles,” Post Two Commissioner Glenn Patterson contributed.

This restriping will be eight miles of Aska Road and two miles of Old 76. These roads were chosen by GDOT. The material used will be thermal plastic. It’s heated up to 400 degrees and sits on top of the pavement. The plastic’s more durable than water-based paint typically used by the county and can last up to three times as long as paint.

Post One Commissioner Earl Johnson clarified that striping season only lasts for five months out of the year, and weather will wear striping off the road. Ratcliff added that striping can’t be laid in unfavorable conditions.

“You can go on some state roads right now and it’s hard to see the yellow line. It’s just the nature of the business, and the only way to take care of that is restriping every year. And no one can afford that. At all times, some of our road striping is going better than others and that’s why. It’s just not cost effective to restripe every road every year,” said Johnson.

A Call for Clarity in the County Budget

News, Police & Government
board of commissioners

Blue Ridge, Ga – Post 1 Commissioner Earl Johnson asked for revisions in the Public Roads/SPLOST department to clarify the monthly financial reports.

The Public Roads and SPLOST (Special Purpose Local Option Sales Tax) represented one line item of the budget summary report. Since financial updates began two years ago, Board of Commissioners’ Chief Financial Officer Robin Gazaway has presented the two items together.

Points of interest in the 2019 budget. The third line item was the point of discussion.

Johnson stated that combining Public Works (budget and expenditures) and SPLOST makes it difficult to recognize where the money is being spent. “I don’t understand why we’re doing a report if I can’t see the numbers,” said Johnson. He also noted that other departments were separated and easier to comprehend.

Gazaway offered to break down SPLOST into four segments: Public Works, EMS, Recreation, and Administration and add a slide in the next budget meeting. She said, “It’s no problem to split [SPLOST] out and present it differently.”

She also suggested providing a detailed financial print report to the commissioners each month since she already has that information pulled for her records.

These updates will begin during the next financial update report at next month’s Board of Commissioners’ meeting.

Gazaway gives the financial update at the second board meeting of every month, and this report detailed all expenses from Jan. through March 2019. Departments were showing 1% over for the year, but Gazaway pointed out that lump sums, such as the courthouse loan debt and lease payments were due at the beginning of the year. As a result, the numbers should even out as the year goes on.

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