BUDGET COMMITTEE
August 20, 2008

** NOT APPROVED **


Committee Members Present

T. Hopkins, W. Dibble, C. Crandall

(Absent:  D. Fanton, W. Hall, T. O’Grady)

 

Others Present

L. Ballengee, D. Burdick, P. Cockle, W. Goetschius, R. Hartwick, D. Horan, C. Ivers, J. Margeson, M. McCormick, V. Pettit, D. Pullen, B. Reynolds, B. Riehle, D. Roeske, P. Schmelzer, K. Toot

 

Approval of Minutes

            The July 16, 2008 Budget Committee minutes were approved on a motion by Legislator Dibble, seconded by Chairman Crandall and carried.

 

Social Services Department – Mid-Year Budget Review

            Social Services Commissioner Patricia Schmelzer distributed copies of her financial report as of June 30, 2008.  Mrs. Schmelzer indicated that they have expended approximately $14.3 million of their $34.3 million budget, and they are projecting that they will spend a total of approximately $28.7 million by year end.  They have collected approximately $10.6 million of the $20.5 million in revenue budgeted for 2008, and they project they will receive a total of approximately $17.3 million in revenue. The projection of County dollars required to run the Social Services Department in 2008 is approximately $11.4 million.

 

Public Works Department – Mid-Year Budget Review

            Public Works Superintendent David Roeske distributed copies of his financial report as of July 31, 2008.  Mr. Roeske indicated that his revenue collections are in line or slightly ahead of schedule.   Mr. Roeske indicated that they are having a few problems with their fuel accounts under Solid Waste (A8160.422) which they expect to fall short by approximately $70,000 and the County Road Fund (D5110.422) which they believe may run short by approximately $120,000.  Mr. Roeske indicated that they plan to cover the shortfalls in Solid Waste by not purchasing a few containers, and the shortfalls in the County Road Fund will be covered by postponing some work they had planned to do.  Mr. Roeske indicated that they keep track of their fuel usage every year, and he should know by January how much gas has been saved over prior years by some of the usage-saving measures they implemented.

 

Health Department – Mid-Year Budget Review

            Public Health Director Lori Ballengee distributed copies of her financial report as of June 30, 2008.  The Health Department has collected approximately 32.65 percent of budgeted revenues and expended approximately 25.51 percent of budgeted appropriations.  The figures are below projected amounts primarily due to the sale of the Home Care Agency.  The projected revenue collections and appropriation expenditures are anticipated to be approximately one-half of the original budgeted figures – projected revenues are $3.1 million out of a $6.2 million budget, and projected expenses are $3.7 million out of a $7.4 million budget.

 

Sheriff’s Office – Mid-Year Budget Review

            Sheriff’s Office Accountant Randy Hartwick distributed copies of his financial report, noting that they may be over budget by approximately $488,462 this year.  Mr. Hartwick indicated that postage, overtime, fuel, software maintenance and food supply are all problem areas. 

 

            The Sheriff’s Office houses an average of 65 inmates per day, and they anticipate receiving over $2 million in revenue between housing and transporting inmates.  For housing Federal inmates, the Sheriff’s Office has collected approximately $1.26 million, and they project they will receive approximately $1.8 million by the end of the year. 

 

                Mr. Hartwick also distributed copies of a report showing overtime hours by payroll period.  So far this year, approximately 32,000 overtime hours have been worked in the Sheriff’s Office at an estimated cost of $808,749.  Undersheriff William Goetschius stated that overtime costs are a big factor in the overall budget overage.  They are in the process of hiring ten new people, and another test will be given again in the fall.  Adding new people should help with some of the overtime costs especially when you consider that the “No Part-time Available” overtime category makes up close to 12 percent of all overtime figures with almost 4,000 hours worked under this category already this year.  Jail Administrator Christopher Ivers stated that contractual obligations account for 52.27 percent of the overtime hours worked.  Some of the contractual obligations include the following overtime categories and corresponding hours worked so far this year:

 

            Shift Briefing                2,347.25 hours            7.33% of total

            Sunday Premium        4,303.00 hours            13.43% of total

            Holiday                        2,924.00 hours            9.13% of total

            Sick Coverage                        1,949.50 hours            6.09% of total

            Open Slot                    2,720.00 hours            8.49% of total

           

Mr. Ivers stated although we receive some reimbursement, the “Federal Transport” and “Federal Hospital” overtime categories also show big overtime numbers for us.  On a positive note, 207C (Workers’ Compensation) overtime hours have been eliminated and sick time hours are also decreasing.  It was noted that our 2008 overtime hours are about 6,800 more than last year at this time, but our operation is also a lot bigger now.  Committee members discussed the differences between 2007 and 2008 hours under specific categories.  The overtime hours under the categories of “207C” and “Court” have improved dramatically this year.  Committee members briefly discussed the overtime categories making up the discretionary overtime hours.

 

Office for the Aging – Mid-Year Budget Review

                Office for the Aging Director Kimberley Toot distributed copies of her financial report as of June 30, 2008, noting that the accounts are accurate and very close to projections.  Mrs. Toot stated that increases in state revenues have covered all increases in expenses that they have come up against so far.   Mrs. Toot indicated that she will be participating in a conference call with the New York State Office for the Aging tomorrow to discuss possible cuts.  Mrs. Toot asserted that if the County is sanctioned for noncompliance with the Office of Court Administration, the Office for the Aging would lose hundreds of thousands of dollars, and they would probably be forced to shut down since the programs are not mandated.

 

Sales Tax Report

            Budget Committee Chairman Theodore Hopkins distributed copies of a Sales Tax Report reflecting receipts through August 13, 2008, totaling $11,345,680.50 and interest totaling $12,129.57 which is up about 12 percent ($1,216,164.22) over last year’s figures.

 

            We are in good shape compared to last year, and sales tax revenues for the year are projected to reach $19.28 million.  It was noted that we budgeted $17.3 million for sales tax revenue in the 2008 budget.  Committee members agreed that although this is excellent news, figures can change very quickly, and we need to keep a logical handle on it.  Mr. Margeson explained that the interest showing on the report represents the interest we have made from our investments.

 

            Committee members talked about the increase in gas prices being one factor that has driven the sales tax revenue up.  Legislator Dan Russo said that it would be interesting to know if shopping habits have declined with rising gas prices.  Legislator Brent Reynolds briefly mentioned a legislative bill that will be considered regarding zone pricing to address the varying gas prices at the pumps. 

 

Miscellaneous Revenue Receipts

            Mr. Margeson pointed out that we have received 74 percent of our budgeted revenue for interest and earnings.  In addition, account A2690.00 (Tobacco Settlement) was budgeted at $825,000 for 2008, and we ended up receiving $846,278.  Committee members briefly discussed the tobacco settlement money. 

 

Revenue from Housing Inmates

            Legislator Michael McCormick asked how we handle money that is received from housing inmates in excess of our bond payment.  Mr. Margeson indicated that right now the money falls to General Fund, and the Board will have to discuss how we want to book this money.  Some suggested the money should be transferred to a reserve account for debt payment on the jail.  It was noted that the jail bond was issued for 23 years, and there is a pre-payment option which can be exercised at any time.  Legislator David Pullen asked if the resolution addressing a reserve account for the payment of debt on the jail indicated how money can be used once it’s in the reserve account. 

 

Resolutions from Other Entities

            Committee members reviewed the following Resolutions:

 

            2008 NYSAC Legislative Conference, Resolution #01 – Resolution Calling on the Governor and State Legislature to End the Practice of Passing Costs for State Programs to County Government and our Property Taxpayers

 

            Ontario County Draft Resolution Dated August 13, 2008 – Recommendations for Responsible New York State Budget Corrections

 

            The Ways & Means Committee will also be reviewing both resolutions at their meeting this afternoon.  Legislator William Dibble stated that the Inter-County Association ended up tabling the Ontario County Resolution, and the President of the Inter-County Association plans to send a letter to the Governor regarding budgetary concerns.  A motion was made by Legislator Dibble, seconded by Legislator Crandall and carried to support the NYSAC resolution and request the Ways & Means Committee to sponsor a resolution.   Refer to Ways & Means Committee

 

Mid-Year Departmental Reports

            Mid-year financial reports for the following departments were distributed to committee members for their review:  Development, Planning, Tourism, STOP DWI, and Youth Bureau.

               

Adjournment

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

 

 

Respectfully submitted,

Brenda Rigby Riehle, Clerk of the Board

Allegany County Board of Legislators