COMMITTEE OF THE WHOLE

NOVEMBER 9, 2009

 

** APPROVED **


 

Members Present:  Chairman C. Crandall, G. Benson, D. Burdick, W. Dibble, D. Fanton, T. Hopkins, T. O’Grady, D. Pullen, B. Reynolds, D. Russo, N. Ungermann; (Absent: W. Hall, K. Kruger, M. McCormick, R. Truax)

 

Others Present:  A. Finnemore, J. Margeson, B. Riehle, T. Ross, F. Sinclair;  Media:  B. Quinn, Wellsville Daily Reporter

 

Call to Order:  The meeting was called to order at 10:05 a.m. by Chairman Curtis W. Crandall.

 

2010 Tentative County Budget:

 

Adjustment on Tentative Budget Summary Page:

 

            County Treasurer Terri Ross updated the Legislators on a small adjustment made on the summary page since the Tentative Budget was released.  Final assessment numbers were received from the Real Property Tax Office.  The “County Taxable Assessed Value” at the bottom of the page was decreased from $1,604,395,489 to $1,604,163,777.  This change raises the “percentage increase in tax rate” from 1.75 percent to 1.77 percent, but does not change the “increase in tax rate per thousand” (remains at 0.29) and does not change the “increase in tax levy” (remains at 6.93 percent).

 

Comments and Suggestions:

 

            Legislator O’Grady stated that the County is bringing in more money through property taxes (increased assessed value), and we’re tentatively using $500,000 of the surplus.  The minimal tax increase reflected in the Tentative Budget is a good thing, but costs go up each year, and we really need to look at cutting services.  That’s the only way to bring property taxes down.  There are a lot of good programs, but it comes down to what we can afford.  Legislator O’Grady made the following proposals for amendments to the 2010 Tentative Budget:

 

1.         Rushford Lake Beach (A7180, page 19) – Elimination of this program would result in net savings of $18,000 per year.  Discussion included:

 

-          The County doesn’t contribute to other community swimming facilities. 

-          Town Recreation (Rushford or Caneadea) or the Lake District could run the beach.

-          It’s not really a town function; it covers a wider area.  A lot of people use the beach, even from outside the area, many without a lot of options for family recreation.

-          Costs are probably offset by sales tax revenue generated by people coming in to use the beach, and lifeguarding offers employment opportunities for our youth.

-          The beach is completely County-operated; if funding was eliminated, it would close.

-          The need for a state park in the County has been discussed.  The beach is a small recreational area.  We’re trying to develop tourism, and the beach is a part of that.

-          There are not many safe, supervised swimming areas in the County.

-          The tax base around the lake deserves some recognition in County services.

-          The Lake Association puts a lot of money into dam repair.  They would have no real interest in running the public swimming area.

-          The beach is the only public access for swimming at Rushford Lake.

 

Fred Sinclair, former Soil and Water Conservation District Director, commented that SWCD is under contract with the County to manage parks and forests, so he was involved with the beach.  Busloads of children from schools all over the County come in and have access to the beach.  On busy weekends, it's not unusual for hundreds of residents and non-residents to use it.  It’s a safe facility with lifeguards, and it provides summer employment for our youth.  Rushford beach is also one of the cleaner swimming areas, as part of the fairly well-protected Rush Creek watershed.  The beach is a valuable asset.  Rather than eliminating the whole thing, the idea of other entities contributing to the cost could be worked on.

 

A motion was made by Legislator O’Grady and seconded by Legislator Ungermann to eliminate funding for A7180 Beach and Pool.  The motion was defeated.

 

2.         Mental Health Drop-In Center (A4313, page 12) – Partially funded, non-mandated program.  Legislator O’Grady stated that the full cost for A4313 was around $500,000 with the County share almost half of that.  Discussion included:

 

            County Treasurer Terri Ross pointed out that due to recent changes in Mental Health funding streams, some of the accounts have changed in the way they are budgeted.  Account A4313, designated as "Mental Health Drop-In Center," was renamed in the Budget Detail to "Mental Health Contracts" and now also includes supported housing, community support programs, County match for Arc, transitional employment, their regular state aid program, and Allegany Rehabilitation Associates (ARA).  Ms. Ross noted that the total Mental Health Budget includes expenses of $2.79 million, and revenues from state and federal agencies total $2.56 million.  The County's net cost is $230,000.  Expenses specifically for Account A4313 total $497,524, and are offset by revenues totaling $417,524, leaving a net County cost of $80,000 for that cost center.  (The Drop-In Center would be one piece of that $80,000.  Mental Health Director Dr. Anderson would need to address the cost of individual programs.)

 

-          If the County eliminated funding for the Drop-In Center, another public or private agency would probably pick it up.

-          Who does the Center serve?  The facility on Trapping Brook Road in Wellsville draws people from all over.  The Drop-In Center doesn’t serve the people in the County paying property taxes.  It's a negative impact for Wellsville.  A lot of money is being spent on programs without knowing exactly what they do or who they serve.  If we're spending money on programs that bring an undesirable element into the County, we need to look at who is being served no matter what we're spending.

-          Is there a listing of the number of people served by these programs?  If the County is paying a lot of money for a program that doesn't serve a large clientele, we need to think of the cost.  It needs to be justified. All these programs are wonderful, but government can’t do everything for everyone.

-          Questions about the programs, the cost for each, funding streams, and clientele served need to be answered.

-          It was asked if the County pays salary and benefit costs for employees of the Drop-In Center.  The answer was no - the County contracts through Mental Health with ARA to provide services, and ARA hires the Drop-In Center employees.

 

A motion was made by Legislator O'Grady to eliminate funding for the Mental Health Drop-In Center.  He later withdrew the motion but stated there is a need to investigate further.  Chairman Crandall noted that meetings have been scheduled for newly-elected and re-elected Legislators, and part of the purpose will be to ask particular questions about programs.  Also, there have been tours of some of these programs in the past, and given the number of new Legislators, it may be time for that again to further explain the programs so we know the actual costs.

 

(Account A4313 should be renamed "Mental Health Contracts" in the Budget document prepared by the Clerk of the Board's Office.)

 

3.         Bus Transportation (A5630, Appropriations page 13, Revenue page 47) - Legislator O'Grady thought it was the Board's goal to reduce the County cost to 0, but it looks like appropriations increased three percent.  Mr. Margeson responded that the net County cost will be 0 for 2010.  Legislator Fanton expressed appreciation for the efforts of Carrie Whitwood, the Transportation Manager, and the Transportation Task Force in getting to this point.  Two years ago the program was costing the County $360,000.

 

4.         Economic Development (A6430, page 15) – Legislator O'Grady questioned if the need for the additional clerical employee hired at Development was partly because Tourism was moved there for awhile as well.  Mr. O'Grady was not proposing a lay-off, but with the Crossroads Project on the backburner, he proposed a decrease of $25,000 in the total Development appropriation.  There aren't a lot of areas of the Budget where we have much control, but this is one area we do.  Mr. Margeson pointed out that the department is currently staffed with one and one-half clerical positions; not two.  Discussion:

 

-        If Tourism (located in the same office as Development) is supposed to be our salvation, why is that appropriation cut by $23,000?  Ms. Ross explained that the Tourism Budget was reworked to make it easier to track the "I Love NY" funding, and it includes the following lines:  the first is the estimate of $75,000 in "I Love NY" money, the next is the County’s contribution or match for the "I Love NY" funds (those two lines are the same).  That amount will probably go down, depending on the State.  The next line contains the $52,000 paid to the Chamber for the Tourism contract.  The last line includes $8,000, and is unrestricted money which was raised by selling ads, etc., to be used by Tourism as needed.  Ms. Ross noted that the big change in Tourism was that the $10,000 formerly paid to Mr. Braack to run the program was removed.

-        In trying to make the changes that are necessary to change the economic climate we’re operating in, we can’t cut our way out of the dilemma we're in; we're going to have to grow our way out.  That doesn't mean we can't make some cuts, and we have made some in the past couple of years.  We need to focus our efforts on the Office of Development and view it as an investment.  It's a question of direction and whether we're moving ahead or backwards. In some cases, increased spending indicates going backwards, but not all spending is identical; some spending is for future yield.  We need to be cautious about cutting Development, and overall should even be enhancing these programs to continue moving forward.

-        Cuts in any department should not be made without having department heads present to explain their budgets and what would or wouldn't occur if cuts are made.

-        The Office of Development's construction of buildings to lease back to the County is not furthering our tax base.  The County would like to get something going at the Crossroads Area, but we have to have an end-user out there and have control of the property before we'll be allowed to expend any County money for the infrastructure. 

-        There has been very little in the way of development, and most of it has been for businesses already here:  Alstom, Dresser, and Friendship Dairies.  There isn't going to be any major new development efforts here in the current economic climate.

-        There has been talk about the unemployment rate being over 12 percent, but according to Employment and Training Director Jerry Garmong, unemployment for the County is 7.9 percent.  We can talk about things not happening here, but if the IDA was not involved, and if Dresser employees hadn't sacrificed, Dresser wouldn’t be here; if Friendship Dairies hadn't had something that was working for them with the County, they wouldn't have expanded; and what Alstom did wouldn't have happened without the cooperation of the IDA and New York State.  Friendship chose to close a plant in Pennsylvania, and Alstom also had a choice to go somewhere else and didn't.

-        This Budget reflects that the County lost $1 million in sales tax revenue, and it will cost an additional $1 million for increased retirement payments.  Without that $2 million increase, the tax rate would have gone down.  This is the first time we could have "grown" our way out from having to increase the tax rate.  It can be done.  Unfortunately, we got caught in this poor economic climate.

 

Legislator O'Grady made no formal motion for reducing the Development Budget, as there was no support.

 

5.         Planning (A8020, page 21) – Total of $81,700 budgeted.  Legislator O'Grady suggested a delay in filling the Planner position for a year, or possibly combining some of the duties with the Deputy County Administrator if planning issues arise.  Discussion:

 

-        The Board collectively approved creating the Planner and Deputy County Administrator positions.  Are we going to hire them, or toss back and forth with every wind of change?  In business, you don't succeed if you sit idle.  You have to have a plan and follow progress.  Maybe you could save $80,000 which would have a very small affect on the tax increase, but it could have a very negative effect in that you wouldn't be able to perform the tasks that you could have if the position was filled.  The same goes for Development.  If you spend no money, you'll get nothing in return.  This is a very difficult environment, and Allegany County is a hard sell with not as much to offer as surrounding counties.  If you pull funding for these areas, we'll fall back even farther, instead of holding our own in keeping our current businesses.

-        The County's Comprehensive Plan is in place.  There is seed money out there, and it's time we hired a Planner to facilitate some serious planning efforts.

-        There's nothing in the Planner's position description about writing grants, so how would having that position bring money in?  The County contracted for a study on grants development; where did that go?  Mr. Margeson replied that Stuart Brown was hired to research some specific grant opportunities, but the County did not follow through on contracting with him.

-        Intention of the Board in hiring a Planner?  Mr. Margeson gave an update on the status of the position:  a Planner should be hired, if not by the end of this year, at the end of January.  If the 2010 appropriation is taken out, that will change.

-        What the County accomplished with the bus transportation program and decreasing the local share by over $300,000 is an example of planning.  The County needs to be active.  There are things that can be done in planning.  The Comprehensive Plan laid a foundation for opportunities.  We need a vision, a plan, and a course that’s reasonable. Planning, grant-writing, and economic development are part of the package.  We can look at areas to cut, but after all the time and investment in developing a Comprehensive Plan, this is not a good time to cut Planning or Development.

 

6.         Contributions for Non-Government Type Events – Legislator O'Grady suggested the need to streamline County government.  The Agricultural Society that runs the County Fair is one example.  We need to start weaning off these contributions a little each year.  The County doesn't contribute to other festivals and events, and the County Fair is not a County government function.

 

            Legislator O'Grady noted that although the Budget Committee reviews the Budget and the Budget Officer makes changes, these Committee of the Whole meetings to discuss the Budget are held too late in the year to have any effect.  We need to look at non-government contributions, as well as mental health contracts for services and non-mandated programs.  Some of them are good programs, and if we make cuts some people will be unemployed, but this is what is needed to keep taxes down.

 

            Chairman Crandall responded that when he was first elected, there was no Budget Committee or Finance Committee to look at the Budget year-round, and the whole process was put off until this time of year.  Each standing committee dealt with departmental budgets.  There is a Budget Committee and a process in place year-round now, and there is an opportunity to make suggestions anytime during the year.  Chairman Crandall noted that he did not schedule this meeting specifically to try to reduce the rate from 1.77.  There is more to the budget process than looking at cuts.  There hasn’t been a tentative budget as close to this one in a long time, and if there was, it was due to poor financial planning when the fund balance was used to offset what should have been small tax increases at that time.  We do have good financial planning and a good process in place now.  If the Board wants to cut services, that's the choice of the Board.  Mr. O'Grady gave good examples of ways to cut services, but obviously that's not the sentiment of the Board as a whole.  Legislator Reynolds commented that the Budget Committee can keep some of these things in mind for next year and take the time to look into them.

 

County and Town Bridge Program:

 

            Legislator Burdick questioned the reductions in the Department Head requests for Capital Projects-Roads and Bridges that were recommended by the Budget Officer (pages 32-35).  The Town Highway Superintendents' Association made a presentation at the Public Works Committee, and noted that they are getting less help from the County.  There is only one Town Bridge left in the 2010 Tentative Budget out of the three that were requested.  The towns want more help on the Town Bridge Program.  The 2010 Budget currently includes:

 

County Bridges:

Almond, CR 32, BR#04-28                             $457,000         Scheduled

Angelica, CR 2, BR#07-15                             $387,500         Scheduled

Alfred, CR 11, BR#11-12                                $212,000         Scheduled

 

Town Bridges:

New Hudson, Haskins Rd., BR#22-05           $381,000         Removed

Grove, Goose Hollow, BR#19-02                   $410,500         Removed

Alfred, East Valley Rd., BR#01-11                  $196,000         Scheduled

 

            Legislator Burdick suggested replacing two County bridges and two Town bridges, rather than three County and one Town, which would keep the total cost about the same.  After being asked how much it would cost to add the two town bridges back in, Mr. Margeson responded that it would result in a tax increase of an additional 2.5 percent.  Mr. Margeson explained that the Goose Hollow Bridge in Grove was a $410,000 project serving only seven residences.  Mr. Burdick noted that some of the hard feelings with the towns were caused because the town budgets were done before Grove was aware their bridge was cut, and Alfred thought they were cut and they didn’t budget.  There needs to be better communication with the towns and villages.

 

            Legislator Ungermann noted that the Haskins Road bridge project was pulled, and that's several miles from alternate routes.  There are two towns with property on each side to take care of and no way to get there without driving ten to fifteen miles.

 

            Legislator O'Grady commented that Mr. Burdick's suggestion is just readjusting what’s being done instead of raising the tax rate 2.5 percent.  Instead of three County and one Town bridge, we could do two County bridges and two Town bridges.  Legislator Reynolds noted that through-traffic on a County bridge is more important.  The Alfred bridge connects East Valley Road.  Legislator Ungermann responded that the Alfred bridge is currently posted for 8 or 10 tons, but the Haskins bridge is closed.

 

            Legislator Burdick questioned the additional expense of $89,725 for Friendship County Road 20.  Mr. Margeson explained that it was an on-going project slated for completion in 2010.

 

            Chairman Crandall proposed increasing the Bridge Program by $250,000 by shifting $150,000 from Contingent and $100,000 from Emergency Repair Funds, but not getting into specifics on which projects it would go to.  The Public Works Committee and Public Works could decide where the additional funds would go.  Grove would probably be next on the list going by priority.  Chairman Crandall also suggested that there may be work the Town could do to lessen the scew of the bridge and work on the approach to reduce the cost, and the other Towns may be able to find ways to reduce the costs in each of the other cases.  The $250,000 increase is a step in the right direction without increasing the Budget.  Legislator Reynolds asked how much money is left in 2009 Contingent, to which Mr. Margeson replied there was about $360,000 left; anything not used will fall to Fund Balance.  Mr. Reynolds suggested taking another $100,000 from Contingent, in addition to Chairman Crandall's proposed total of $250,000.

 

Amendments to the 2010 Tentative County Budget: 

 

            Chairman Crandall proposed amendments to the 2010 Tentative County Budget that would shift funds to the Bridge Maintenance Capital Projects Accounts, but would not increase the tax rate.  The actual bridge projects affected could be determined by the Public Works Committee and Department of Public Works at a later date.  Chairman Crandall suggested moving $150,000 from Contingent, $100,000 from Fund Balance, and $100,000 from Bridge Repair Reserve.  (Subsequent to the meeting, the County Treasurer and County Administrator/Budget Officer discovered that moving funds from Repair Reserve was going to require additional steps; therefore, they recommended taking $200,000 from Fund Balance and eliminating the transfer from Repair Reserve.)   The amendments to the 2010 Tentative Budget, as modified, are indicated below:

 

A1990.429             Contingent                               Decrease by $150,000; new balance $850,000

A15.599.00            Approp. Fund Balance            Increase by $200,000; new balance $700,000

A9560.904             Interfund Transfer                   Increase by $350,000; new balance $933,322

H12.5031.5120      Interfund Revenue                   Increase by $350,000; new balance $350,000

                                                                                   (NEW ACCOUNT)

H5120.200             Maintenance of Bridges          Increase by $350,000; new balance $350,000

                                                                                   (NEW ACCOUNT)

 

Legislator Fanton noted that Public Works Deputy Superintendent II Guy James could be scheduled for a presentation on bridges, as has been done in the past.  Legislator Reynolds commented that DPW has more knowledge and information on each bridge in the County than anyone else.  They have an excellent system.  Legislator Hopkins suggested that the Board might have to look at which bridges should not be repaired in the future, possibly closing two or three.  This would involve conversation with the towns.  Legislator Fanton referred to the watershed study on bridges and run-off requirements.  There are cases where culverts could be used instead of bridges, and the County should coordinate with the towns to look at the issue realistically.  Legislator Hopkins noted that if repairs on a particular bridge are running $20,000 per year, they should be scheduled for replacement sooner.  Legislator Ungermann noted that the Haskins Road Bridge could be replaced with a culvert, but the issue is what DEC will allow.

 

A motion was made by Chairman Crandall, seconded by Legislator Reynolds and carried to amend the 2010 Tentative County Budget by making the changes as listed above.  Prepare Resolution

 

            Legislator Pullen questioned if the Self-Insurance Fund (page 35) was adequately funded. Mr. Margeson responded that he felt the $352,580 budgeted for administration of the fund was solid.

 

            Chairman Crandall commented on the proposed 2010 Budget for Development, Planning, and Tourism, noting that he had originally planned to propose an increase.  In the detailed copy of the Budget, there is a line designated as "marketing fund" that is budgeted at $60,000.  At one time that amount was $300,000.  We stepped down our efforts for Development, Planning, and Tourism.  During the election, there wasn't anyone running that didn’t talk about the need to increase economic development.  It's difficult to define, but Tourism, Planning, and Development all go together.  We need to move ahead with funding the Planner position.  Chairman Crandall questions whether there are appropriate funds in this Budget to do some of the things he feels need to be done to move forward.  The Crossroads Area development is important to push to get done, but there are also a lot of other things around the County to address, such as sewer and water projects, and we lack a County-wide plan to apply for grant funding to bring some of those projects together.  Efforts need to be focused on bringing available funding into the County.  Chairman Crandall's proposal would have been to shift money into that area of the Budget, but he decided to let that go for now.  We do have Contingency and other areas of the Budget from which we can transfer funding into Development as needed as projects come along, depending on the tone of the new Board.  We’re short there, and we need to increase efforts in the area of development.  There are some development efforts going on behind the scenes in small business and building, and we are one of the few areas in the state that has seen some increase there.  The Comprehensive Plan is in place, the Comprehensive Plan Implementation Committee is in place, but the money needs to be there.  Chairman Crandall felt this was a question to be addressed by the new Board.  They will need to think long and hard along those lines to define economic development and move forward.

 

Adjournment:  The meeting was adjourned at 11:45 a.m. following a motion made by Legislator Reynolds, seconded by Legislator Fanton and carried.

 

Respectfully submitted,

Adele Finnemore, Journal Clerk