MINUTES

ROCKWOOD CITY COUNCIL

May 19, 2008

Mayor Mike Miller called the meeting to order at 7:00 PM and welcomed all in attendance. Councilman Dudley Evans pronounced the invocation and all present recited the pledge of allegiance to the American flag.

Roll Call found all council members present: Ray Collett, Gene East, Dudley Evans, Darryl Meadows, James Neal and James Watts.

Minutes. Minutes of the April 21, 2008 regular meeting were presented for approval. Neal made a motion to approve with a second by Meadows. The motion passed 6 – 0.

Financial Report. Recorder James Hines presented the financial statements to date with a summary as follows:

Bank Accounts:

General Fund Checking Account $ 408,222

All accounts totalling $ 603,925

Revenue for the month of April

Property Tax $ 13,495

Local Sales Tax $ 112,400

Total all revenue $ 222,698

Expenditures

Total for the month $ 313,318

With April being the 10^th month of the fiscal year, 83% of

Budgets would be spent. All departments were within expenditure budgets.

Year to date shows a deficit of $ 180,000, but will even out with

expected revenues within the next few weeks.

Neal noted that the projected sales tax revenue had been estimated accurately and asked with two months remaining within the fiscal year, would the Recorder feel confident that the figures will meet expectations. Recorder affirmed that with expected business tax in June, the deficit would be made up.

Watts made a motion to accept the financial report as presented with Collett offering a second to the motion. The motion passed 6 – 0.

Public Comment. The Mayor asked for public comment from the audience with no response.

Mayor Miller presented certificates to the top ten students with the highest Grade Point Average to the following: McKinley Melson (Valedictorian), Chelsea Meadows (Salutatorian), Carol Kittrell, Andrew McCreary, Bryant Allen, Cody Wampler, Rachel Thomas, Chase Clem, Synthia Clark, and Sarah Pore. A round of applause showed the appreciation for a job will done with wishes for a successful future.

Old Business: (None)

New Business

Budget Ordinance 08-1112 (1^st Reading): Mayor Miller presented the FY 2009 budget of $ 6,030,700 and property tax rate of $ .85. Meadows made a motion to adopt the budget as presented with a second by Collett. The Mayor then highlighted the following components:

1. No property tax increase (rate remains at $ 0.85)

2. Department Heads cut their operating budgets by more than $ 70,000 from amounts proposed at an earlier workshop.

3. $ 27,000 (10%) was added for Health Insurance (to be rebid)

4. A 5% pay increase for full-time employees, plus a one time $500 bonus ($ 116,500 plus $ 32,000).

5. Full-time/Part-Time Firemen: $ 2.00/hr increase (from $ 8 to 10/hr) = $12,000

6. Industrial Recruiter contract employee position = $ 50,000 (half for salary and half for travel, materials, and expenses).

7. Invest $ 1 million for Capital Improvements: borrowed for 12 years at a fixed rate of approximately 3.81% (dependent upon closing rate), debt service would be $ 105,100/yr.

Meadows voiced his opinion that he was glad to maintain the $ 0.85 tax rate and noted that investments were good and expected.

Collett stated that he was proud to be on the council with such a positive approach to hard times

Evans agreed that department heads had done a great job and it was a good budget and borrowing money is expected in capital projects

Neal said that he was glad to give employees a raise and thanked them. He was glad to support the idea of a marketing person for industry and business as well as residential development. “If he/she can do one success, it will be worth it,” he stated. An observation was made that equipment would last longer than the bond issue. Neal recounted our debt to local retailers for the local tax revenue being so good and need to ask business: “What can we do for you?”

With no further comments, the vote was called with all voting for the motion 6 – 0.

Resolution 08-27: Consideration of a one million dollar, 12-year note for capital improvements. The note is for capital investments consisting of the following: garbage truck, 1 ton dump truck, fire rescue truck, fire hall #2 bldg. improvements, City Hall Bldg. improvements, Parks and Recreation tractor w/loader, Golf Fairway mower, City garage roof, Street Paving. These details refer to item #7 of budget highlights above. Neal made a motion to adopt the resolution with a second by Evans. The motion passed 6 – 0.

Report of Land Auction Committee. A committee had been appointed at the April Council meeting to look at the best way to auction city property on South Chamberlain Avenue. Members of the committee were: James Watts, Ray Collett, and James Neal. Reporting for the committee, Watts stated that they recommend the firm of Stevenson Realty and Auction of Clinton to handle the sale. There would be a ‘buyers premium of 10% added to bids. The committee proposed a minimum bid of $ 225,000 or $5,230 per acre which includes the 10 acres contingent upon completion of a pending sale. If the 10 acre sale is completed, the minimum bid would be reduced accordingly. A small expense would be incurred to obtain a surveyor to divide the property into smaller tracts and at the auction offer to sale by sections or as a whole.

Meadows questioned if the Planning Commission had to approve the subdivision of property transaction with a confirmation from the Mayor that it would.

Watts made a motion to accept the recommendation of the committee with the following factors understood: 1) Stevenson Realty and Auction Company would be given the authority to handle the advertising and sale of the property on South Chamberlain, 2) that if the previous 10 committed acre sale did not materialize, it would be added back to the 33 acres with a minimum bid of $ 225,000, and 3) the acreage would be subdivided for sale and lumped back together to obtain the highest price. Neal seconded the motion. The motion passed 6 – 0.

Request from Rockwood Water, Wastewater, and Natural Gas. Neal explained that this was an original $ 600,000 loan with the first payment of $ 300,000 being due and paid in September 2007. The second instalment of $300,00 is due September 2008. Now, in order to keep a solvent operating budget, the Water and Gas Board decision is borrow the $300,000 from another source and add $200,000 bringing the total to $ 500,000 due in five (5) years.

Contributing factors toward a drain on the operating budget has been the $150,000 to install a water pumping station to gain additional water pressure at Barrington Place. Another $ 150,000 was spent in upgrading the Highland Forest water distribution system.

East asked how much revenue was the utility receiving from using the automated meters. Neal estimated that there was a savings of 18-20%. Evans asked the loan rate and was informed that it was 3.41%. This proposal had been on the agenda for the last water board meeting, but failed action because of a lack of a quorum present. Evans asked if a board member with Regions Bank constituted a conflict of interest. Neal replied that Mr. Smith had recused himself from voting for that very reason and therefore a quorum was not reached.

Neal made a motion to refinance the existing note and add the $200,000 to it. A second was forthcoming from Meadows. The motion passed 6 – 0.

Comments from Mayor and Council

Collett -- was happy with council actions, help on expenses by department heads, success of the high school ball teams in going to the state tournament, proud of the top ten 2008 high school graduates.

East -- echoed the sentiments of Collett

Watts – gave a ditto to the above comments and added that the work of Rockwood2000

had greatly improved the look on Gateway Avenue and the library entrance with flowers. “We owe them a big thank you.”

Evans – thanked the Fire department for good work on fire at Horse Head, was glad to

see our officers attending the Officer Memorial Service in Harriman; asked about the STOP sign on Dunn Street. Public Works Manager informed the council that the sign had been ordered, newspaper notice run, and would be installed within the next couple of weeks. Evans asked the status of the Waterfront project and was told by the Mayor that we were still waiting for a final decision by TVA. He announced that Channel 12 TV would be carrying the audio portion of our Rockwood High School team playing in the State Tournament tomorrow, May 20, at 5:00 PM.

Neal -- Agree with previous comments. Expressed regrets over the resignation of

Commissioner John Smith from Water Board because of health problems. “He will certainly be missed because he was excellent with financial matters.”

Meadows – Couldn’t add anything and concurred with above comments

Mayor Miller -- Announced that Memorial Day would be observed Monday, May 26, with offices closed and that Rockwood 2000 would be hosting a meal at the newly acquired Highway Patrol Station on South Gateway Avenue from 5 – 7 PM on Tuesday, May 21.

Congratulated the ball teams for going to the state tournament 7 out of the last 9 years. Miller announced that Baccalaureate was Saturday evening, May 24 at 7 PM and Commencement on Sunday, May 25, at 2 PM.

A cleanup report was made about the house on Zumstein Drive being demolished by the city at a cost of $3,000 for cleanup; ‘it was worth every Nickel.’ Now efforts turn toward South Kingston Avenue problems. He stated that the process was slow, but moving forward. The Mayor complimented Department Heads and employees for a job well-done.

Adjourn. With business finished, Watts made a motion to adjourn with a second by Meadows. The motion was gladly passed 6 – 0.

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Mike Miller, Mayor

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James Hines, Recorder

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Wayne Duggin, Acting Secretary