COMMITTEE OF THE WHOLE
October 15, 2008
** APPROVED **
Members Present: Chairman C.
Crandall, G. Benson, D. Burdick, W. Dibble, D. Fanton, W. Hall, T. Hopkins, T.
O’Grady, D. Pullen, B. Reynolds, N. Ungermann;
Absent: K. Kruger, M. McCormick, D. Russo, R. Truax
Others Present: A. Finnemore, J. Margeson, B. Riehle, T. Ross
Call to Order: The meeting was called to order at 10:15 a.m. by Chairman Curtis W. Crandall.
2009 Tentative
The purpose of the
meeting was for review and discussion of possible adjustments to the 2009
Tentative County Budget. An opportunity
was given to everyone present to make suggestions. It was noted that changes to be made will
require a resolution. The 2009 Tentative
Budget currently reflects a 3.9 percent increase over 2008 (increase in tax
levy), but due to an increase in taxable assessed value, the actual increase in
tax rate is 1.3 percent.
State Spending Reductions and Their
Impact on
Crossroads Water and Sewer
Project Bonding:
Jail Revenues for Housing Inmates: Mr. Margeson commented that approximately $2
million has been budgeted. If they average
60 inmates per day at $90 per inmate per day, we will achieve that (the current
average is 65 inmates per day).
Legislator Burdick questioned if the surplus revenue would be appropriated
to a reserve fund after the Public Safety Facility loan principal payment is
paid. Legislator Fanton felt that was
the intent of the previous resolution.
Mr. Margeson noted that it would be appropriated to the General Fund,
and Chairman Crandall pointed out that a resolution would be required to change
that.
Sales Tax Revenue: Concern was expressed that the anticipated
sales tax revenue figure may be too high.
Also, due to the stock market slump, the state may greatly increase the
payment due for retirement. Ms. Ross
noted that the retirement payment paid this year was down $200,000 from the year
before, so less was budgeted for 2009. We
already know what the 2009 payment will be.
The 2010 figure may be worrisome, but that won’t be paid until 2010. Mr.
Margeson addressed the sales tax revenue concerns by stating that based on 2008
trends, we should be able to achieve the $18.5 million we budgeted.
Health Insurance: The amount budgeted for health insurance has
been increased by $600,000 over 2008.
Preschool Education Program: Mr. Margeson explained that this program for the
provision of educational services for eligible three to five year old children prior
to Kindergarten is state mandated. The
County pays $24,000 per child per year, and the state reimburses 59.5 percent. It has been argued for years that this
expense doesn’t belong in county budgets, but should be in the state education
budget.
Bus Transportation: Mr. Margeson noted that appropriations for
bus transportation are budgeted at $720,000, and revenues are budgeted at
$600,000. He felt this figure may be
achievable, although in the past we haven’t been able to hit it. There will be $120,000 subsidized in this
budget. Anticipated grants have been
figured in.
Contingent Account:
There is currently about $175,000 in the
2008 Contingent Account. The balance at
the end of the year falls to fund balance.
Education, Community College
Expense: Legislator
Health Department,
Sheriff/Jail Overtime Expense: Mr. Margeson noted that he adjusted these
accounts twice, first cutting $425,000, and then putting $300,000 back in.
Health Insurance Expense: The projected increase for health insurance
was 10 percent, and Mr. Margeson noted that we are running at about 8 percent. We’re getting closer to being able to budget
adequately for expenses. It’s being done
over a period of time, and with the 2010 or 2011 budget, we should be caught up.
Estimated Year-End 2008: Ms. Ross and Mr. Margeson concurred that if
things continue on as they have for the remainder of 2008, we should end the
year in the black and have a fund balance.
When questioned about the State Comptroller’s letter about our
constitutional tax limit and bond rating, Ms. Ross responded that we’re presently
at about 80 percent on the taxing limit, and what has helped us was budgeting
for our capital projects rather than bonding them. We were at 92 or 93 percent for the 2007
budget (they want us under 80 percent) so our ratings would be better.
Home Energy Sales Tax: Legislator Pullen commented on the home
energy sales tax issue, which he noted has been raised in the past. It looks like we’re in relatively good shape,
and with the increased cost of fuel oil, a reduction in the home energy sales
tax now won’t have a negative revenue impact.
Chairman Crandall responded that the concern is the uncertainty with
what the state will be doing with additional cuts and how that will come down
to the County level. We don’t know where
we will be four to six months from now.
Legislator Fanton noted that if costs go down lower than they were a year
ago, we’ll lose revenue. Gas has gone
down 35 percent from the high, and natural gas is about where it was a year ago,
although Legislator Reynolds pointed out that coal is much higher than a year
ago. Legislator Reynolds commented that
we haven’t been good at cutting any type of tax at all, and he agreed with Legislator
Pullen. He felt it would be a good idea
to cut the home energy sales tax by something in the area of one percent. Legislator Fanton questioned if potential
savings had been estimated back when the state was considering that issue
before. The 1.3 percent tax increase in
our 2009 budget is probably a savings to taxpayers, given the rate of
inflation, and he’s not dissatisfied with that.
Legislator Fanton pointed out that we’d have to make up for it next year
with a larger tax increase if we do something for show now. Legislator Ungermann noted that the actual
spending increase in the budget is close to 4 percent, not the 1.3
percent. Ms. Ross noted that while
spending is up nearly 4 percent, the amount that is over the assessment is 1.3
due to new construction, etc. Mr.
Margeson pointed out that the average county tax rate for 2008 was 16.40 per
thousand and is 16.62 per thousand in this 2009 Tentative Budget, an increase
of 22 cents.
Chairman Crandall
commented that in the past, there have been concerns about sales tax and things
beyond our control. He’s not sure we’ve
ever had the immediate changes in state finances looming over us like now and
this fear of additional costs being shoved down to the county level. The Governor is calling back the Senate and Assembly
to deal with the deficit, and some radical things will come about. The concern is that they won’t cut the
programs and clean up some of the excess programs the state has, but will just
shift costs to the county and town levels.
Ms. Ross pointed out that there is $15 million in state aid included in the
2009 Tentative Budget. If the state
makes reductions amounting to 6 percent, that will impact our budget by $900,000.
Bond Payment that Needs to be
Added to the Budget: County
Treasurer Terri Ross was notified by our financial consultants on October 10
that a BAN was rolled over, and we will have to make a $135,000 principal
payment in April 2009. We should add
that to the budget. The interest was
included but not the principal. Chairman
Crandall suggested that funds could be taken from this year’s budget to make
that payment. Mr. Margeson agreed and
noted that funds could be appropriated from the fund balance after the first of
the year.
Public Safety Facility Debt
Service: Legislator
Tax Exemption Impact Report: Ms. Ross reported that she has been
working with Forbes in
Public Hearing on the Budget: November 6, 7:00 p.m.
Adjournment: The
meeting was adjourned at 11:20 a.m. following a motion made by Legislator Dibble,
seconded by Legislator Reynolds and carried.
Respectfully submitted,
Adele Finnemore, Journal Clerk