01/21/2014 MINUTES - Laserfiche WebLink

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Dr. Erickson suggested that we collect what amount the City and County budgets for the Health Department (upfront) and we can add a sentence stating that any additional funds could be returned. Mr. Collins stated that the Health Department needs to collect the $75,000 upfront at the beginning of each budget year. Mr. Anderson suggested that the Health Department set up a reserve policy like the City of Paris currently has. The Health Department would set up a $150,000 - $200,000 reserve policy that the Health Department will work towards and obtain having for two to three months of operating reserve as a minimum and you keep any surplus money and it goes toward the reserve and if you have an unexpected shortfall then you have a reserve that is there to cover it and you will not have to go to the City and County. Then once the reserve amount is met then you could reduce your budget or renegotiate how much the City and County would give, but first you would bill up the reserve so you would have that money. An operating reserve could cover an emergency shortfall. Mr. Anderson stated that the City budgeted $75,000 and the City paid thirty something thousand based on the shortfall on September 30th, so Mr. Anderson did not think that the City would object to paying the balance of forty something thousand that was budgeted and put in the interlocal agreement that on October 1 or soon thereafter that the City of Paris will pay their $75,000 match to give the cash flow requirement that the Health Department needs. Dr. Gibbons asked if the City and County would each give $75,000 if the Health Department had a $500,000 operating reserve fund. Is there a certain point where you build up your reserve fund and then the City and County ask why they are giving you money every year and you are not using your reserve funds? Mr. Anderson stated that if you have in the interlocal agreement that the $75,000 cap is for three years then will be renegotiated, if you build up an excessive reserve then you could address that then at the renegotiation. Dr. Gibbons stated that ideally you could build up the reserve to a certain point and then you could use it as your start up cost every year. Dr. Erickson stated that the startup cost will be a onetime deal such as software like QuickBooks, audits, and we can't use the City of Paris attorney, accounting department and we will have to hire someone to do and those are additional cost to our budget that have not been there before. Mr. Anderson stated that since we will be doing the accounting in -house there will be the additional compensation cost but the audit will be the largest outside cost. Board ofAealth minutes 201401 -21 Special Meeting (needing approval)