BUDGET COMMITTEE

March 18, 2009

 

** NOT APPROVED **

Committee Members Present

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

 

Others Present

D. Burdick, K. Kruger, J. Margeson, B. Reynolds, B. Riehle, T. Ross, K. Toot

 

Approval of Minutes

            The February 18, 2009 Budget Committee minutes were approved on a motion by Legislator Fanton, seconded by Legislator Hall and carried.

 

Sales Tax Report

            County Treasurer Terri Ross distributed copies of a Sales Tax Report reflecting receipts through March 13, 2009, totaling $2,818,545.32 and interest totaling $577.77.  Ms. Ross indicated that March receipts are down about 5 percent when compared with March 2008.  Overall sales tax revenues are down approximately 19.4 percent, which includes the additional $500,000 we received in January 2008.

 

            In December 1986 our County sales tax rate increased from 3 percent to 4 percent, and in December 2004 our sales tax rate increased from 4 percent to 4.5 percent.

 

Budgetary Spreadsheets

            Ms. Ross distributed copies of a spreadsheet listing the tax levy, tax rate, County taxable assessed value, and total County budget over the last ten years including a summary of changes from the previous year and five and ten year averages in dollars and percentages.  The tax levy has gone from $21.7 million in 2006 to almost $25.4 million in 2009.  The average County tax rate per thousand has gone from $15.39 in 2006 to $16.62 in 2009.  The County taxable assessed value has gone from over $1.4 billion in 2006 to over $1.5 billion in 2009.  The total County budget has gone from $92.6 million in 2006 to almost $105.4 million in 2009, an increase of $12,765,110. 

 

            Ms. Ross also distributed copies of a spreadsheet summarizing the 2007, 2008 and 2009 adopted budgets for all funds and one for just the General Fund.  The County’s taxable assessed value has increased over $96 million in three years.  The balance to be raised by real property taxes has increased $2,643,184, and the average County tax rate has increased $.73. 

 

Tourism Funding

                Budget Committee Chairman Theodore Hopkins reported that according to New York State,  Allegany County received approximately $3.2 million from tourism tax revenue (bed tax and sales tax) this past year.  Allegany County only receives about 10 percent of the tax revenue generated in the Chautauqua-Allegheny Region, and that Region only receives about 1 percent of the total tax dollars generated in New York State.

 

            Committee members discussed the Tourism budget and our agreement with the Greater Allegany County Chamber to provide tourism services.  County Administrator John Margeson indicated that our agreement with the Chamber calls for Allegany County to pay the Chamber $25,000 when the contract is issued, and an additional $25,000 after six months.  The agreement is for one year and expires in March 2010.  Tourism Specialist Craig Braack will no longer be receiving a $10,000 stipend now that our agreement with the Chamber is in place.  The Development Office will still supply some administrative support to the Chamber for tourism.  Committee members agreed to discuss the tourism budget and I LOVE NY Grant funding more at the next meeting.

 

FMAP Relief

            Mr. Margeson distributed information regarding the expected fiscal impact of the Federal Medical Assistance Percentage (FMAP) relief based on information received from the New York State Association of Counties (NYSAC).  Mr. Margeson reported that we should receive a lump sum payment of $675,100 for FMAP relief by the end of March.  Effective April 1, the County’s weekly share payment for Medicaid will go from $178,639 down to $144,847 and remain at $144,847 through March 31, 2010.  Effective April 1, 2010, the County’s weekly share would normally be $183,998; however, due to the FMAP relief, the actual weekly share payment from April 1, 2010 through March 31, 2011 will be $164,385.  Based on the 2009 County Medicaid budget, the Medicaid line item should show a surplus of approximately $1.3 million at year end.

 

            Mr. Margeson stated that if in the 2010 County Budget, we appropriate for Medicaid costs as if there were no FMAP relief, we would budget $9,498,229.  If this occurs, our 2010 Medicaid surplus will be $1,204,203.  If we do the same for the 2011 County Budget, we would appropriate $9,783,175, and our surplus will be $254,969.

 

            Mr. Margeson and Ms. Ross recommended budgeting as we normally would especially considering that this increase in FMAP is only temporary and committee members agreed.  Ms. Ross also explained that the initial lump sum payment we receive this month will be the only time we actually receive cash; the remainder will be received as a reduction in our weekly payment. 

 

            Committee members briefly discussed how the increased FMAP funds should be used.  Chairman Curtis Crandall indicated that he would like to see the money from the FMAP increase put into some type of account that would be flexible, but not just floating around.  Chairman Crandall suggested having certain criteria attached to the appropriation of the money and referred to the Tax Stabilization Fund created and used briefly when we received the tobacco money.  Legislator William Hall commented that he likes the idea of having the money placed in a special account, noting that it makes him uncomfortable that we are depending on the tobacco money to help balance our budget every year.  County Treasurer Ross suggested that the money could be used to fund the capital accounts, and committee members requested Ms. Ross to bring information regarding those accounts to the next meeting.  Ms. Ross indicated that she will also have the final 2008 reports next month. 

 

            Legislator William Dibble indicated that we need to look at the stimulus money to see what we can bring back to the County.  Budget Committee Chairman Theodore Hopkins stated that Allegany County is at a disadvantage without a Planner.  It was noted that some counties are hiring lobbyists in hopes of securing additional stimulus dollars.  Legislator William Hall remarked that he believes that rural counties will have a difficult time getting access to stimulus dollars.  Committee members discussed creating an ad hoc committee to deal with stimulus funding issues. 

 

Adjournment

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

 

 

Respectfully submitted,

Brenda Rigby Riehle, Clerk of the Board

Allegany County Board of Legislators