BUDGET COMMITTEE
April 16, 2008

** NOT APPROVED **

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Committee Members Present

T. Hopkins, D. Fanton, W. Dibble, W. Hall, T. O’Grady, C. Crandall

(Absent: D. Fanton)

Others Present

W. Goetschius, R. Hartwick, C. Ivers, J. Mancuso, K. Kruger, J. Margeson, V. Pettit, S. Presutti, Y. Rechichi, B. Reynolds, B. Riehle, T. Ross, D. Russo, D. Sirianni, K. Toot

Media Present

K. Ross – Wellsville Daily Reporter

Approval of Minutes

The March 19, 2008 Budget Committee minutes were approved on a motion by Hall, seconded by Dibble and carried.

FIRST QUARTER DEPARTMENTAL FINANCIAL REPORTS:

Public Works Department

Public Works Fiscal Officer Yvonne Rechichi and Deputy Public Works Superintendent John Mancuso distributed copies of their first quarter financial report to committee members. The revenues reflect receivables claimed through March 31 and appear to be accurate and very close to projections. Based on the first quarter figures, Ms. Rechichi believes that the County Road fuel account (D5110.422) may run short by $50,000 to $60,000. Ms. Rechichi stated that the price of diesel fuel has gone up 89 cents per gallon on state bid over the last four months, and unleaded fuel is up 36 cents per gallon. Mr. Mancuso indicated that fuel under the Solid Waste Division should be ok. Legislator William Dibble asked Mr. Mancuso to look into the possibility of obtaining a grant to use methane for new trucks down the road. Budget Chairman Legislator Theodore Hopkins stated that we should have a better idea of where we stand after the next quarter, and hopefully any shortfalls can be made up.

Office for the Aging

Office for the Aging Accountant Vicky Pettit and Director Kimberley Toot distributed copies of their first quarter financial report to committee members. Ms. Pettit stated that the revenues only represent contributions at this point; however, we should start vouchering for Federal and State aid soon. Mrs. Toot explained that Federal vouchers cannot be submitted prior to receiving notification of the grant award. Although their expense accounts appear to currently be accurate and very close to projections, Mrs. Toot expressed concern about their gasoline account for the Meals on Wheels Programs as well as mileage reimbursements to volunteers. Now that gas prices have increased so much, many volunteers that didn’t used to request mileage reimbursement are doing so.

Mrs. Toot provided an overview of how accounting procedures are handled at the Office for the Aging. Mrs. Toot explained that they have 17 different grants that fund the Office for the Aging Programs over five different fiscal years. Two budgets have to be maintained for each grant, one for the County and one for the state, because we use different fiscal years. Each month, Mrs. Toot and Ms. Pettit review an excel spreadsheet listing all grant expenses to date showing the percentages spent and remaining so that they can determine where the money will come from and which funds may have to be moved to support a particular budget. Time studies are performed with employees every other pay period to determine which grants can be charged for their time. Mrs. Toot stated that we have a clear understanding of who is doing what and how we can pay for their time. No one in the office claims overtime without permission. Mrs. Toot stated that she communicates daily with Ms. Pettit regarding any expenses that may come up. Ms. Pettit has oversight for the client cash contributions which have been budgeted for $221,000 this year, and most of that comes in cash. Ms. Pettit is responsible for making sure those funds are tracked and properly accounted for. Mrs. Toot also explained their backup plan in case Ms. Pettit has to be out of the office for an extended period of time, etc. In addition, Ms. Pettit has prepared a policy and procedure manual that lists step-by-step instructions on how all accounting procedures in the Office for the Aging are handled. Mrs. Toot stated that Ms. Pettit is a part of her management team and an important part of their daily operations. Mrs. Toot reiterated that she just wants to make sure the committee understands how specialized each department is and how systems are in place to specifically handle that particular department. There would be a huge learning curve for someone from another department to handle accounting processes in a different department.

Legislator William Hall commented that it might also be advantageous to use Ms. Pettit’s experience in other areas of the County. Mr. Hall questioned whether or not having Ms. Pettit a part of the management team comprised some of her objectivity in doing the accounting process. Mrs. Toot responded that that it did not, and that you cannot make a good management decision without a keen understanding of the fiscal impact. Ms. Pettit briefly described her involvement and relationship with the Treasurer’s Office.

Probation Department

Probation Director David Sirianni distributed copies of his first quarter financial report noting that everything appears to be in order, and he has nothing of concern to report. Mr. Sirianni mentioned that there has been a proposal to move Probation Departments under the Office of Court Administration at the state level, and reimbursements to counties could increase up to 50 percent. Legislator Dibble requested Mr. Sirianni to bring a draft resolution supporting this concept to the next Public Safety Committee meeting for consideration.

Sheriff’s Office

Jail Administrator Christopher Ivers and Sheriff’s Office Accountant Randy Hartwick distributed copies of their first quarter financial report. The revenues appear to be accurate and very close to projections. The general supplies account (A3150.408) is projected to be about $26,000 short, and a resolution should be considered at the April 28 Board meeting to transfer funds from Contingency to cover this shortfall. Mr. Ivers stated that they are trying to become more self-sufficient within the organization. They recently purchased sewing machines so that clothing can be repaired right away, and they have talked about sewing their own sheets and similar items. With the increase in housing in inmates, they use more of all supplies, and they continually try to obtain the best prices from various vendors. It can be difficult to determine all of the benefits and the fiscal impact of some of these cost savings measures at first.

The housing of inmates fell off a little in March, but it is starting to go back up. We are still covering our costs plus a little bit on transporting federal inmates; however, we may not always be able to do that. We have been fortunate that many of our transports have not required overtime to do. Legislator O’Grady asked if the figures account for backfilling positions, and Mr. Hartwick indicated that they do. Most transports are to Buffalo or Rochester, but we have accommodated the feds by transporting to other areas on various occasions, and those transportation costs are billed back.

Mr. Hartwick briefly discussed the spreadsheet summarizing overtime costs accumulated under various categories. Approximately $24,273 has been spent on overtime costs this year when no part-time employees were available to work. By increasing the salaries of the part-time employees, interest in working should increase, and we should be able to decrease overtime costs. Legislator Hopkins asked if they would be able to track the amount of overtime savings that would result from paying part-time employees more. It makes sense, and it sounds good, but we want to be able to see the savings on paper. Mr. Ivers noted that they will be interviewing 20 people today for part-time Correction Officer positions, and some of those people could possibly be ready in about one month. The increase in the Correction Officer rate has not gone through the Board yet, and all of our current applicants originally applied for employment under the original rate.

Sales Tax Report

County Treasurer Terri Ross distributed copies of a Sales Tax Report reflecting receipts through April 14, 2008, totaling $5,423,738.57 which is up about 16 percent over last year’s figures. Ms. Ross noted that we received an Electronic Funds Transfer (EFT) for Sales and Prepaid Sales Tax on Motor Fuel earlier this year which made our beginning figures appear higher than normal, but we should be evened out now and comparing “apples to apples.” The big jump in the cost of diesel fuel may explain a portion of the increase we are seeing.

Renewal of Bond Anticipation Notes

Ms. Ross indicated that we recently requested bids to renew $1,468,525 in bond anticipation notes for renewal on April 24. We received bids from five banks, and Five Star Bank was the low bidder at a rate of 1.88 percent which is down from 3.7 percent last year. Ms. Ross stated that our improved financial position and the current market contributed to the lower rate.

Tobacco Money

Ms. Ross reported that we received our 2008 tobacco settlement money today. We budgeted $825,000 and received $851,000. This was the ninth payment, and we are supposed to receive payments for 25 years. Across the state $753 million was paid out in tobacco settlements this week.

2008 Budget

Ms. Ross distributed a Budget Performance Report for the period ending March 31, 2008 for the General Fund of the 2008 Budget. As of March 31, we have expended $17,148,431.97 or 21 percent of the budgeted amount.

2007 Year-End Results

Ms. Ross indicated that she is working on finishing her annual reports, and it appears that 2007 ended with a fund balance increase of $2,420,030 which is great news.

Ms. Ross noted that some projects have been completed yet the money has not been appropriated to capital accounts, and our fund balance for the Capital Fund is ($525,756).

Treasurer’s Office

Ms. Ross asked if the committee members had any questions about the Treasurer’s Office operations and how things work. Ms. Ross indicated that our system is regulated by New York State, and are duties are set by law. She is available to answer questions at any time. Ms. Ross briefly talked about her relationship with the various accountants noting that they are constantly evolving various procedures and trying to make improvements with input from the departments.

Legislator Timothy O’Grady commented that when we first began discussing placing all accountants under the Treasurer, he did not envision having the accountants physically move to the Treasurer’s Office; he just thought they would report directly to the Treasurer. Legislator Kruger stated that he supports having all Accountants work under Ms. Ross to streamline processes and more rapidly identify any potential problems.

Capping Property Value Exempt under Local Law #4 of 1987 (Amended by Res. No. 33-08)

Legislator Theodore Hopkins stated that someone brought to his attention that there are individuals that have homes assessed at $175,000 to $200,000 that are eligible to take advantage of the property tax exemptions outlined in Resolution No. 33-08. They are able to meet the financial requirements because much of their retirement income is not being taxed as income. Mr. Hopkins asserted that this was clearly not the intention of the law and suggested that we cap the level of property value that is eligible for exemption. Committee members asked Real Property Tax Director Steve Presutti if it is possible to do what Legislator Hopkins is suggesting. Mr. Presutti indicated that he does not know if the law allows for that, but he will investigate the matter and report back to the committee.

Adjournment

There being no further business to come before the committee, the meeting was adjourned on a motion by Dibble, seconded by Hall and carried.

Respectfully submitted,

Brenda Rigby Riehle, Clerk of the Board

Allegany County Board of Legislators