BUDGET COMMITTEE
 September 8, 2008

** NOT APPROVED **

Committee Members Present

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

 

Others Present

K. Kruger, J. Margeson, B. Riehle, T. Ross, D. Russo

 

Approval of Minutes

            The August 20 and 25, 2008 Budget Committee minutes were approved on a motion by Legislator O’Grady, seconded by Legislator Fanton and carried.

 

2009 Budget

            Budget Officer John Margeson indicated that the preliminary 2009 budget calls for a tax increase; however, he plans to make several cuts that will lower the projected tax increase.  Mr. Margeson plans to discuss his proposed cuts with the County Treasurer and will forward them to committee members later in the week.

 

            Committee members briefly discussed the concept of using money remaining from previous years toward balancing the upcoming year’s budget.  It was noted that we currently have $2.9 million in fund balance.  Some of the comments included the following points:

 

  • We should budget for all of our operating expenses in a given year and not count on the fund balance.
  • A small portion of the fund balance could be used to make the tax increase more palatable.
  • We just recently got back in the black; we should not get in the habit of using the fund balance as an income source.

 

            Legislator Dwight Fanton asked if the capital projects have been funded in the 2009 budget, and Mr. Margeson indicated that the funding for the four bridges is currently in the 2009 budget.  Chairman Crandall stated that we have had some out-of-pocket expenses associated with both the Crossroads and Courthouse Projects and suggested that perhaps our fund balance could be applied toward some of these expenses.  It was noted that the County does have permission to use the funds (approximately $400,000) from the LLRW Reserve Fund toward development projects.

 

            Budget Committee Chairman Theodore Hopkins stated that about $500,000 of the $2.9 million in fund balance represents revenue from housing inmates.  County Treasurer Ross indicated that the money received in 2007 was not appropriated to a reserve account.  The reserve account was created by Resolution No. 118-04; however, the resolution does not specify the funding of this reserve, and for 2008 the revenues were budgeted as General Fund revenues to defray a larger tax increase.  The money from 2007 did fall to fund balance and can be appropriated at any time.  Legislator Karl Kruger expressed concern that none of the revenue received from housing inmates has been placed in the Jail Reserve account.  Committee members discussed the process to fund the Reserve Fund as well as the process to use money appropriated to the Reserve Fund to make our bond payment.  Committee members also briefly discussed how the budgeting method of the revenue received from housing inmates affects the overall budget.  Theodore Hopkins stated that he believes the committee members would like to reserve the money, but they do not want it to have a negative impact on the budget.  Committee members discussed placing the revenue received in excess of the annual bond payment in the Jail Reserve Fund.

 

Adjournment

There being no further business to come before the committee, a motion was made by Legislator O’Grady, seconded by Legislator Hall and carried to adjourn the meeting.

 

 

Respectfully submitted,

Brenda Rigby Riehle, Clerk of the Board

Allegany County Board of Legislators