BUDGET COMMITTEE
January 21, 2009
** NOT APPROVED **
Committee Members Present
T. Hopkins, D. Fanton, W. Dibble, W. Hall, T. O’Grady, C.
Crandall
J. Margeson, B. Riehle, T. Ross
Approval of Minutes
The December
17, 2008 Budget Committee minutes were approved on a motion by Legislator O’Grady,
seconded by Legislator Fanton and carried.
Sales Tax Report
County
Treasurer Terri Ross distributed copies of a Sales Tax Report. Sales tax receipts for 2008 totaled
$18,240,274.57 with interest of $17,983.34 for a grand total of
$18,258,257.91. In January 2008 we
collected $1,197,992.34 which included a $500,000 adjustment. We have never really received a good
explanation as to why we received this adjustment or what it was for. In January 2009 our sales tax receipts were
$551,900.12 which is down about 53.93 percent from last year. If you factor out the $500,000 adjustment, we
are down by approximately 15 percent from last year; however, it is too early
to make any predictions yet. Ms. Ross
explained how the sales tax calendar works, noting that our March payment will
begin reflecting 2009 sales.
Soil and Water
Genesee River Project
Allegany
County spent $2,399,421.05 on the Genesee River Project in 2008, and we have
been reimbursed $1,799,565.79 which is 75 percent of the project costs. The process with the NYS Dormitory Authority
is slow for the 25 percent balance. Ms.
Ross stated that she received correspondence from Gretchen Gary, Executive
Director at Soil and Water, and Ms. Gary indicated that the Senate has given
approval, and once the Division of Budget receives confirmation that the
request is processed, the Grant Disbursement Agreement will be forwarded to
Soil and Water. As of January 14, 2009,
the certification is waiting unit head sign off. Ms. Ross noted that there will be additional
costs in 2009 to finish the project but nothing has been presented for payment
in 2009. Soil and Water paid Allegany
County $20,060.18 for interest and consultation fees for 2008-2009, and that
was applied to miscellaneous revenue for 2008.
Legislator
Timothy O’Grady commented that he did not believe Allegany County could upfront
any additional funds without another resolution as the agreement we had with
Soil and Water (approved by Resolution No. 133-08) terminated on December 31,
2008. Legislator O’Grady also expressed
concern and questioned the possibility of not receiving the $599,855.26 balance
owed to us from the river mitigation.
Jail Housing/Debt
Reserve
County
Treasurer Terri Ross distributed copies of the following regarding the revenue
received from housing inmates and paying the bond payment on the new facility:
Revenue
received for housing prisoners beginning August 2007 $2,743,085
2007
Out of County $ 5,270
2007
Federal $ 508,135 2007
Total: $ 513,405
2008
Out of County $ 39,865
2008
Federal $2,189,815 2008 Total: $2,229,680
Bond
payments – Principal and interest beginning September 2007 $3,216,276
2007
Principal $ 625,000
2007
Interest $ 985,638 2007
Total: $1,610,638
2008
Principal $ 645,000
2008
Interest $ 960,638 2008
Total: $1,605,638
Ms. Ross
explained that because we did not start housing inmates until August of 2007,
we did not receive enough revenue from housing inmates in 2007 to cover the entire
$1.6 million bond payment – we were short about $1.1 million. In 2008 we collected more than $2.2 million
in revenue from housing inmates which covered the 2008 bond payment and lowered
the overall shortfall needed to cover our 2007 bond payment from $1.1 million
to $473,191. Ms. Ross noted that at this
point there are not any excess funds available from housing revenue to deposit
into a debt service reserve for the bond.
Chairman Curtis Crandall commented that we haven’t caught up yet, but we
should in 2009, and by 2010 hopefully our housing revenue will exceed the bond
payment amount.
Committee
members discussed how expenses could be tracked in the jail. Legislator William Dibble indicated that he
would like to know how much it costs to house inmates per day. Legislator O’Grady talked about looking at
all expenses associated with housing inmates as well as overall costs of
operation. Legislator Fanton commented
that many of our costs are fixed, and we will have to pay them regardless of
whether we house inmates or not.
Committee members briefly discussed the possibility of separating costs
out and determining the actual bottom line of what housing prisoners costs us.
Committee
members discussed Resolution No. 118-04 which established the Public Safety and
Training Facility Debt Reserve Fund.
County Administrator John Margeson stated that the resolution, as
written, allows the Board flexibility.
If you want to take excess or surplus monies and put them into the
reserve, you can do that, but it would need to be done by resolution. The other option would be to adopt a
resolution directing that every dollar of housing revenue surplus we received
above the bond payment would go directly into the reserve; however, this would
remove any flexibility that the Board would have to use any excess funds toward
operating expenses. County Treasurer
Ross suggested waiting until there is actually an excess before making the
decision. Committee members briefly
discussed the pros and cons of passing a resolution regarding the Debt Reserve
Fund; however, no official action was taken.
Legislator
O’Grady mentioned that there could be some changes in immigration laws which
might result in a decrease in ICE prisoners.
Overtime
Budget Committee Chairman Theodore Hopkins stated
that we need to develop a better way to analyze overtime. How is overtime being created? There are some real questions in areas that
appear to be excessive, and we should be able to eliminate some overtime. Legislator Hopkins suggested sending
Future Meetings
The next
meeting will be at 9 a.m. on February 18.
Beginning with the March 18 meeting, the committee will switch back to
meeting in the afternoon at 1 p.m.
Temporary Federal
Medical Assistance Percentage (FMAP) Increase
Mr.
Margeson briefly explained how the Federal Medical Assistance Percentage works
and indicated that Senator Schumer has been working hard to ensure that funds
are set aside in the economic stimulus plan to increase the FMAP and provide
some relief. NYSAC’s Executive Director
Steve Acquario just notified Mr. Margeson that they believe it will be part of
the stimulus package. Mr. Margeson
reported that beginning
October 1, 2008 and continuing for nine quarters through
December 2010, each state will receive a basic FMAP increase of 4.9
percent. New York’s 50 percent FMAP
would increase to 54.9 percent. In
addition to the 4.9 percent, New York would qualify for additional FMAP
increases based on its high unemployment rates which would increase the FMAP to
57.9 percent and possibly 60.9 percent at some point in 2009. The current proposal would require New York
State to share the proportionate benefit with counties as a condition of their
eligibility to receive the funds. Mr.
Margeson indicated that this was very good news and could result in an extra
$3-$4 million for Allegany County.
There being no further business to
come before the committee, the meeting was adjourned on a motion by Legislator Fanton,
seconded by Legislator O’Grady and carried.
Respectfully submitted,
Brenda Rigby Riehle, Clerk of the
Board
Allegany County Board of