BUDGET COMMITTEE

September 23, 2009

 

** NOT APPROVED **


Committee Members Present

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

 

Others Present

D. Burdick, J. Margeson, D. Pullen, B. Riehle, T. Ross

 

Approval of Minutes

            The August 19, 2009, Budget Committee minutes from the budget review meeting held at 9 a.m. were approved on a motion by Legislator Dibble, seconded by Legislator Fanton and carried.  The August 19, 2009, Budget Committee minutes from the regular afternoon meeting were approved on a motion by Legislator Fanton, seconded by Legislator Dibble and carried.

 

Sales Tax Report

            County Treasurer Terri Ross distributed copies of a Sales Tax Report reflecting receipts through September 14, 2009, totaling $11,257,182.25 and interest totaling $1,855.41 which is down about 10.632 percent ($1,339,208.10) over last year’s figures.  If the current trend continues, the County Treasurer projects that we could be approximately $2.20 million short in sales tax revenue collections this year.

 

            It was also noted that we have collected $1.4 million so far in Housing Federal Prisoners Revenue, and Ms. Ross and Mr. Margeson believe that we should be able to meet the 2009 budgeted amount of $2 million.

 

2010 Budget

            County Administrator/Budget Officer John Margeson stated that the tentative budget is in the development stage, and he hopes to release the tentative budget on September 30 or the first week in October.  Mr. Margeson highlighted a few big ticket items that are experiencing big changes.  Sales tax collections are down about $1 million on the revenue side, and our contribution to the retirement system is up about $1 million on the appropriation side.  Mr. Margeson indicated that the committee will also need to decide how they want to use the ARRA Medicaid money. 

 

            Legislator Dwight Fanton talked about equipment that the Public Works Department really needs to purchase this year and suggested that $108,000 be put back in the Public Works 2010 budget. 

 

            Budget Committee Chairman Theodore Hopkins expressed concern about the state’s financial condition and cautioned that 2011 and 2012 are predicted to be worse than 2010 from a budgetary perspective.  For the last four years, our budgets have averaged a 2.7 percent annual increase, and Legislator Hopkins indicated that he would hate to have us attempt to make the budget “too skinny” only to end up with double digit increases down the road. 

 

            Ms. Ross indicated that they plan to appropriate the $433,322 remaining in the LLRW Siting Reserve Fund to the Crossroads Capital Project (H6997) in the 2010 Budget.  Approximately $348,000 has been spent on the Crossroads Capital Project, and this will leave about $85,000 in that account. 

 

            Ms. Ross also noted that the Court Facilities Capital Project Fund is in the hole by over $570,000, and she would like to see that account cleaned up and funded in 2009.  If there is any money remaining in the account that isn’t borrowed, it can fall back to General Fund when the project is completed.   Legislator David Pullen commented that we authorized the bonds for $13.8 million, and we can’t borrow beyond that number without another bond resolution.  Legislator Hopkins asked if there is a possibility that the financial market might present a scenario where it would be better to go right to bond rather than doing the BANs first.  County Treasurer Ross indicated that they would look at all options when the time comes, but typically you have to spend a certain percentage of the bond money within a given timeframe. 

 

            Committee members briefly discussed how much of the unappropriated fund balance they may want to use to balance the budget and reduce the tax rate.  Legislator Timothy O’Grady indicated that he doesn’t have a problem with using some of the fund balance to cover unexpected expenses.  Legislator Theodore Hopkins stated that we also need to brace ourselves for future use.  Committee members agreed that depending on where the tentative budget comes in at, they might want to use $1 million from unappropriated fund balance to help balance the budget.

 

            Mr. Margeson indicated that the Real Property Tax Office hopes to have a new assessed value next week.  We will know a lot more about what type of tax rate increase we are looking at once the assessed value has been determined. 

 

            It was noted that capital projects for four bridges have been included in the 2010 budget.

 

            Legislator Timothy O’Grady asked how much it costs us to do all the things we do in lieu of sharing our sales tax revenue, and Mr. Margeson indicated that a conservative guess would be about $5 million.

 

Adjournment

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

 

 

Respectfully submitted,

 

Brenda Rigby Riehle, Clerk of the Board

Allegany County Board of Legislators