BUDGET COMMITTEE
Special Budget Review
August 19, 2009

** NOT APPROVED **

Committee Members Present

T. Hopkins, D. Fanton, W. Dibble, T. O’Grady, C. Crandall (Absent: W. Hall))

 

Others Present

L. Ballengee, R. Budinger, P. Cockle, J. Garmong, M. Gasdik, R. Hartwick, C. Lorow, J. Margeson,  S. Presutti, Y. Rechichi, B. Riehle, D. Roeske, T. Ross, P. Schmelzer, W. Tompkins

 

Human Resources - 2010 Budget Review

            Human Resources Specialist H. Bobby Budinger presented budget requests for the Human Resources Office (A1430).  Mr. Budinger stated that the Budget Officer concurred with everything requested, and their .2 and .4 budget requests for 2010 are lower than 2009.  A motion was made by Legislator Fanton, seconded by Legislator Dibble and carried to accept the 2010 proposed budget for the Human Resources Office as recommended by the Budget Officer.

 

Real Property Tax Service Agency – 2010 Budget Review

            Real Property Tax Service Agency Director Steven Presutti presented budget requests for his office (A1355).  Mr. Presutti indicated that he had been slightly more conservative with the revenue budget projections than the Budget Officer who increased those line items by $2,000.  Mr. Presutti stated that he is trying to come up with some new revenue sources and hopes to be able to enhance their web page with subscription options for realtors, lawyers, etc. that will allow them to makes copies and print maps.  Mr. Presutti stated that he received correspondence from the NYS Office of Real Property after submitting his budget that they are proposing a 25 percent increase in their fees.  If this proposal is approved, it would increase account A1355.430 by $6,700, and Mr. Presutti may need to come back and request an adjustment to his budget.  Mr. Presutti also commented that Allegany County has never charged these costs back to the towns as they do in some counties.  A motion was made by Legislator Dibble, seconded by Legislator O’Grady and carried to accept the 2010 proposed budget for the Real Property Tax Service Agency as recommended by the Budget Officer.

 

Social Services Department – 2010 Budget Review

            Social Services Commissioner Patricia Schmelzer presented budget requests for the Social Services Department (A6010, A6011, A6055, A6070, A6101, A6106, A6109, A6119, A6129, A6140, A6141, A6142, and A6150).  The original 2010 budget requests for Social Services showed a 5.45 percent increase, and the Budget Officer made further cuts reducing the increase to 3.6 percent.    Mrs. Schmelzer noted that she was instructed to budget for the Medicaid increase as if there was not stimulus money since it will only provide relief for two years, and our increases will continue at the fixed annual rate.  County Treasurer Terri Ross indicated that they would budget normal expenses and show the stimulus money in the revenue section so that it will be evident what was received as stimulus money.  Legislator Dwight Fanton asked if the stimulus money they will receive for Medicaid expenses can be assigned for future use.  Ms. Ross stated that they are still debating what it can be used for.  Ms. Ross stated that when we get closer to finalizing a budget, we will want to look at what we will be allowed to use the stimulus money for and how it can be reserved if that’s what the Board would like to do.  Ms. Ross also noted that we may not end up with extra money if the sales tax revenue or other accounts come up short.  Budget Committee Chairman Theodore Hopkins asked Mrs. Schmelzer if she is seeing an increase in workload.  Mrs. Schmelzer replied that some areas are going up and others have stayed about the same.  They try to put resources in preventive services to keep some areas at bay.  Legislator Fanton asked if the new changes in the Transit System would result in savings for Social Services, and Commissioner Schmelzer indicated that she believes it will.  A motion was made by Legislator Dibble, seconded by Legislator Fanton and carried to accept the 2010 proposed budget for the Social Services Department as recommended by the Budget Officer.

 

Sheriff’s Office – 2010 Budget Review

            Sheriff William Tompkins and Sheriff’s Office Accountant Randy Hartwick presented budget requests for the Sheriff’s Office (A3110, A3111, A3112, A3150, and A3152).  Sheriff Tompkins expressed concern regarding the cuts that were made to his vehicle requests, noting that he requested $199,625, and the Budget Officer cut it back to $93,625.  Chairman Crandall asked Mr. Margeson if we are falling behind on our Vehicle Replacement Program, and Mr. Margeson indicated that we are not falling way behind; we try to replace vehicles that have an excess of 100,000 miles on them.   Sheriff Tompkins indicated that all of the vehicles listed will have over 100,000 miles on them by the end of the year, and the one Jeep is also a safety concern.  If we wait until 2011, the mileage will be extremely high.  Legislator Timothy O’Grady commented on the size of the Sheriff’s Office fleet, noting that we’ve replaced the Trailblazer three times, and it’s never come off the road.  Legislator O’Grady also spoke against financing vehicles.

 

            Legislator O’Grady mentioned the telephone revenue from inmate calls and asked if that revenue should be coming into the General Fund.  Legislator O’Grady asked what money comes in from the telephone, where it goes, and how it is spent?  Sheriff Tompkins stated that they’ve experienced a substantial increase, and the money is used primarily for training and equipment.  The Sheriff stated that he will make sure that the County Treasurer receives a quarterly report.

 

            A portion of the A3110 accounts were not reviewed by the Budget Officer and will be redistributed after the Budget Officer has had an opportunity to make recommendations.

 

            Committee members discussed the new Telestaff software and associated maintenance costs.  Sheriff Tompkins and Mr. Hartwick believe that the Telestaff Program will save time and money, and it should decrease overall overtime costs.  Sheriff Tompkins indicated that they currently have an employee spend an entire shift every day calling people in for overtime.  This will free that person to be productive on the shift. 

 

            A motion was made by Legislator Dibble, seconded by Legislator Fanton and carried to accept the 2010 proposed budgets for the Sheriff’s Office as recommended by the Budget Officer with the exception of A3110 which the Budget Officer will supply at a later time.

 

Public Works Department – 2010 Budget Review

            Public Works Superintendent David Roeske and Public Works Fiscal Officer Yvonne Rechichi presented budget requests for the Public Works Department (A1490, A1620, A3152, A8160, County Road Fund, and Road Machinery Fund).  Mr. Roeske stated that he has discussed his concerns with Budget Officer John Margeson, and Mr. Margeson indicated that he would be willing to revisit some of the areas once he knows what the bottom line is.  Mr. Roeske’s areas of highest concern included the following:

 

            A8160.204 Solid Waste – Equipment cut by $111,900

            D3310.465 County Road Fund – Striping cut by $50,000

            D5142.408 Snow Removal – General Supplies cut by $100,000

            DM5130.204 Road Machinery Fund – Equipment cut by $250,000

 

Committee members discussed the cuts to equipment and Mr. Margeson indicated he would take another look and suggested that we may want to use a 3-year lease purchase for some of the equipment that has a higher life expectancy.  County Treasurer Terri Ross stated that she does not agree with lease purchases when we have the money.  Mr. Roeske stated that we are looking at these types of expenditures for equipment for the next several years.  Legislator O’Grady talked about a 5-year plan and asked Mr. Roeske to give Mr. Margeson a list of equipment with expected replacement dates.  Ms. Rechichi commented that they previously did a 5-year plan, and they are already behind due to past budget cuts.  Budget Committee Chairman Theodore Hopkins stated that if we are going to spend $500,000 in equipment every year, we should build that cost right into the budget.  If we are not getting much interest on our money right now, it might make more sense to pay for our purchases up front.   A motion was made by Legislator Dibble, seconded by Legislator Fanton and carried to accept the 2010 proposed budget for the Public Works Department as recommended by the Budget Officer.

 

Office for the Aging – 2010 Budget Review

            Madeleine Gasdik, Deputy Director for Office for the Aging, presented budget requests for the Office for the Aging (A6772, A6773, A6774, A6775, A6776, A6777, A6778, A6779, A6780, A6781, A6782, A6783, A6784, A6785, A6786, A6787).  Ms. Gasdik indicated that their biggest change is in equipment which was down $6,900 from last year because they had to purchase some food warmers.  They have tried to cut a lot of expenses, and their overall budget is up just 2.42 percent from last year.  Legislator Dwight Fanton asked if the budget reflects the proposed move to the Crossroads site, and Ms. Gasdik stated that they budgeted $5,300 for electrical expenses at Crossroads, and they also plan to pay for phone and computer costs.  In addition Ms. Gasdik believes that someone may donate some money to help purchase additional furniture that will be needed.  Legislator Fanton stated that he was under the impression that the IDA would be paying the electric as well as the gas, and he would like to take another look at the lease agreement.  Mr. Margeson stated that some of these costs for the Crossroads Building may end up in a Buildings and Grounds account, or the County Treasurer may set up a separate account.  A motion was made by Legislator Dibble, seconded by Legislator Fanton and carried to accept the 2010 proposed budget for the Office for the Aging as recommended by the Budget Officer.

 

Health Department – 2010 Budget Review

            Public Health Director Lori Ballengee and Health Department Accountant Pamela Cockle presented budget requests for the Health Department (A1185, A2960, A4010, A4035, A4037, A4043, A4046, A4047, A4050, A4051, A4052, A4053, A4054, A4056, A4060, A4070, A4071, A4072, A4189, and A4190).  The following summary was presented:

 

                                                                                                                                    % DOH Supported

                                                                                                Tax $ Necessary                 by Tax Levy

 

            FY 2007  Using Actual Expenditures as of 12/31/2007         $1,598,084                            24.50%

            FY 2008  Using Actual Expenditures as of 12/31/2008         $   649,667                            11.42%

            FY 2009  Using 2009 Adopted Budget                                $1,726,280                            37.13%

            FY 2010  Using Budget Officer Recommendation               $1,439,543                            30.32%

 

Same Information without Special Education Costs:

 

                                                                                                                                    % DOH Supported

                                                                                                Tax $ Necessary                 by Tax Levy

 

            FY 2007  Using Actual Expenditures as of 12/31/2007         $   624,761                            12.84%

            FY 2008  Using Actual Expenditures as of 12/31/2008         $   255,985                              6.59%

            FY 2009  Using 2009 Adopted Budget                                $   475,283                            17.66%

            FY 2010  Using Budget Officer Recommendation               $   568,143                            20.53%

 

Mrs. Ballengee stated that their numbers keep going down so the Health Department Budget is decreasing, and they anticipate ending 2009 similar to 2008.  Mrs. Ballengee indicated that they are working hard to continue to trim their budget, and they are constantly looking at what they spend and why it is being spent.  Mrs. Ballengee provided a brief update on the imminent threat of swine flu. A motion was made by Legislator Dibble, seconded by Legislator Fanton and carried to accept the 2010 proposed budget for the Health Department as recommended by the Budget Officer.

 

Mental Health – 2010 Budget Review

            Budget Officer John Margeson indicated that no increases in local funding were requested for the Mental Health accounts.

 

Employment & Training – 2010 Budget Review

            Employment and Training Director Jerry Garmong presented budget requests for the CD1 Fund.  Mr. Garmong stated that he made very few changes in the .2 and .4 line items.  They lost a few funding sources; however, a portion of ARRA funding will make up for that loss.  Mr. Garmong talked about the Trade Adjustment Act (CD1 6414) which assists those that lose their jobs due to foreign competition.  Mr. Garmong indicated that there is a tremendous amount of work involved in these cases, and the state really needs to help fund it.  Mr. Garmong indicated that they use the $67,500 from County funding as a last resort, and they do not spend that money unless it’s absolutely needed.  They do not know what the new formula for funding after July 2010 will be; however, they have no reason to believe it will be less.  Our unemployment rate in Allegany County is 9.7 percent which is better than some other areas.  Legislator Dibble suggested sponsoring a resolution in an attempt to secure state funding for the Trade Adjustment Act.  Mr. Garmong said that funding is currently being discussed at the state level, and we may want to wait and see what happens.  Mr. Garmong noted that the higher the unemployment rate, the more aid we receive.  Mr. Garmong commended the Health Department, noting that they did 92 physicals for the Employment & Training Center which cost approximately $1,600, rather than the $4,500 they would normally pay.  A motion was made by Legislator Fanton, seconded by Legislator Dibble and carried to accept the 2010 proposed budget for the Employment and Training Center as recommended by the Budget Officer.

 

Board of Elections – 2010 Budget Review

            Deputy Elections Commissioner Catherine Lorow presented budget requests for the Board of Elections (A1450).  Mrs. Lorow indicated that there were not a lot of changes.  The Board of Elections did receive approximately $113,250 in grant money this year, and a portion of that money has been used.  They hope to be able to purchase some better voting booths, and they would also like to purchase a trailer which would eliminate some rental costs.  The technicians and inspectors will now be County employees.  Mrs. Lorow stated that there will be storage problems for the new machines.  Mrs. Lorow indicated that they are participating in a pilot program for the state, and the new machines will be used at Angelica and Amity for the primary on September 15.  Next year no lever machines can be used.  Ms. Lorow noted that the ballots will cost about 57 cents each, and at this point the towns are not being charged for this expense.  Some counties charge back all expenses.  A motion was made by Legislator Fanton, seconded by Legislator Dibble and carried to accept the 2010 proposed budget for the Board of Elections as recommended by the Budget Officer. 

 

County Administrator – 2010 Budget Review

            County Administrator John Margeson presented budget requests for his office (A1011).  Mr. Margeson indicated that he increased his fees account (A1011.409) from $22,500 to $40,000 to cover anticipated costs for labor negotiation services.  Mr. Margeson noted that so far in 2009, $52,816 has been spent from the fees account, the majority of which was for labor negotiation services.  Mr. Margeson stated that negotiations with all three unions have come to a halt as the unions have asked that the County suspend negotiations until the health care resolution has been addressed.  The hourly rate for our negotiator went from $95/hour to $195/hour.  Mr. Margeson stated that he has been representing the County for grievances and labor management issues in hope of saving some money, and he believes this may have resulted in $5,000 to $6,000 in savings.  Mr. Margeson noted that the increase in the fees account may not be enough.  Mr. Margeson stated that he increased the rentals account (A1011.414) from $0 to $102,000 in anticipation of paying rent for the new building at Crossroads.  A motion was made by Legislator Fanton, seconded by Legislator Dibble and carried to accept the 2010 proposed budget for the County Administrator as recommended by the Budget Officer.

 

Beach and Pool – 2010 Budget Review

            Mr. Margeson presented budget requests for the Beach and Pool accounts (A7180).  Mr. Margeson stated that he requested an additional $125 to cover increases in insurance and telephone expenses.  The County will receive state aid for approximately $19,000 or 50 percent of the costs associated with operating the Rushford Beach area.  A motion was made by Legislator Dibble, seconded by Legislator Fanton and carried to accept the 2010 proposed budget for the Beach and Pool accounts as recommended by the Budget Officer (Voting No:  T. O’Grady).

 

Contingency – 2010 Budget Review

            Mr. Margeson presented budget requests for the Contingency account (A1990.429).  Mr. Margeson stated that in 2009 the Contingency account was budgeted at $710,000, and for 2010 he lowered that request to $500,000, noting that it is really up to the Budget Committee how they would like to fund that account.  Legislator Dwight Fanton expressed concern about not wanting to be faced with not having enough money.  Chairman Curtis Crandall stated that we have to either budget a little extra for things or have money in Contingency for unknown things that come up, and it would be nice to have a little wiggle room.  Chairman Crandall indicated that he would feel more comfortable leaving the Contingency account at $700,000 for now.  A motion was made by Legislator Dibble, seconded by Legislator Fanton and carried to increase the Budget Officer’s recommendation for the 2010 budget appropriation for the Contingency account to $700,000.

 

Risk Retention Health – 2010 Budget Review

            Mr. Margeson presented budget requests for the Risk Retention Health Fund (CSH1710).  Mr. Margeson stated that he requested a $140,000 increase in the Risk Retention Health Fund for 2010 which would bring the Fund from $5.8 million to $5.94 million.  Mr. Margeson also increased the revenue associated with this Fund from $178,000 to $645,000.  It was noted that the 2009 budget did not reflect revenue contributions from employees or retirees.  Legislator O’Grady suggested the County might want to increase the insurance buy-out amount as an incentive to encourage employees who might have other options to take the buy-out.  A motion was made by Legislator Fanton, seconded by Legislator O’Grady and carried to accept the 2010 proposed budget for the Risk Retention Fund as recommended by the Budget Officer.

 

Annual Retirement Bill

            County Treasurer Terri Ross stated that she paid the retirement bill in advance last year to take advantage of discounts, and if the County wants to do that in the future, we will need to budget accordingly.  We are currently paying approximately 8 percent of our payroll into the pension fund, and that rate is expected to increase to 11 percent for the 2011 payment that we would make at the end of next year and higher yet in 2012.

 

Adjournment

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

 

 

Respectfully submitted,

Brenda Rigby Riehle, Clerk of the Board

Allegany County Board of Legislators