BUDGET COMMITTEE

February 17, 2010

 

** NOT APPROVED **

Committee Members Present

T. Hopkins, D. Fanton, D. Cady, K. LaForge, T. O’Grady, C. Crandall   (Absent:  P. Curran)

 

Others Present

M. Alger, L. Ballengee, D. Burdick, M. Healy, J. Margeson, T. Miner, D. Pullen, B. Riehle, T. Ross, F. Sinclair

 

            Budget Committee Chairman Theodore Hopkins called the meeting to order at 1 p.m.

 

Approval of Minutes

            The January 20, 2010, Budget Committee minutes were approved on a motion by Legislator O’Grady, seconded by Legislator Cady and carried.

 

FMAP (Federal Medicaid Assistance Program)

            County Administrator/Budget Officer John Margeson stated that one aspect of the Stimulus Package that has had the most beneficial impact for county government is the Federal Medicaid Assistance Program (FMAP).  Mr. Margeson stated that the federal government used to cover 50 percent of Medicaid costs.  As part of the ARRA, the formula was increased from 50 percent to approximately 56.5 percent.  For Allegany County, this change resulted in $1.75 million in additional revenue that wasn’t budgeted.  The increase in FMAP was original supposed to expire in March of 2010; however, it has been extended to December 31, 2010.  Mr. Margeson indicated that we recognized some of the increased FMAP in the 2010 budget, but we didn’t expect to receive the increase for 12 months so we will receive more revenue than budgeted.  Once the 2009 books are closed, we will see what kind of impact it had for 2009.  We hope to see a budgetary surplus for 2009.  Budget Committee Chairman Theodore Hopkins stated that the FMAP increase really helped cover shortages we experienced in other areas such as sales tax revenue. 

 

NYSAC Conference Report

            Legislator Hopkins stated that several Legislators attended the annual NYSAC Legislative Conference held in Albany from February 8-10, 2010.  The overriding theme at the conference seemed to be that the next few years will be very tough on the state, and they will probably not be able to effectively address all of the problems. 

 

            Legislator Hopkins stated that this will be the first year since 1938 that so many state and federal level representatives are up for reelection at the same time.  Legislator Hopkins reported that New Yorkers’ wages have fallen by 6.1 percent, there will be a 30 percent increase in retirement costs, and health insurance costs are estimated to increase by 9 percent per year.  Although it’s nice to have a fund balance, Allegany County needs to be very cautious because we could face hard times.  The state will also have to make additional cuts.  Legislator Donald Cady commented that with inflation, our surplus could seem a lot smaller.

 

Sales Tax Report

            County Treasurer Terri Ross distributed copies of a Sales Tax Report reflecting receipts through February 16, 2010, totaling $2,038,109.92 and interest totaling $181.99.  Ms. Ross reported that while many counties have reported that their sales tax receipts have been down, and some in double digits, Allegany County’s sales tax receipts are up about 6 percent from last month and 12 percent compared to last year at this time.

 

Debt Service – Transfer of Funds

            Ms. Ross indicated that she plans to request a resolution transferring $123,525 from V 599.00 (Debt Service Fund Balance) to V9730.600 (BAN Principal) at the Ways and Means Committee meeting this afternoon.  Ms. Ross explained that the transfer is necessary so that she can make the minimum principal payment on a bond anticipation note (BAN) that comes due in April.  Ms. Ross indicated that after consulting with our financial consultants Municipal Solutions, she plans to roll the BAN (which requires a principal payment) rather than bonding it right now because the BAN rates are so much better than the bond rates.  Ms. Ross noted that the courthouse addition and renovation will need to be financed from multiple sources, and she will plan to secure BANs for any balance that is not covered with ARRA or Build America funding until a more favorable bond rate becomes available.  The Debt Service Fund is currently budgeted for approximately $3 million.  A motion was made by Legislator Fanton, seconded by Legislator Cady and carried to approve the transfer and refer the matter to the Ways and Means Committee.   Refer to Ways and Means Committee

 

Comprehensive Plan – Transfer of Funds

            Ms. Ross indicated that she also plans to request a resolution transferring $30,000 from A6430.474 (Economic Development – Contractual) to A6431.474 (Comprehensive Plan – Contractual) at the Ways and Means Committee meeting this afternoon.  Ms. Ross explained that $30,000 was included in the Economic Development Marketing account for implementation of the Comprehensive Plan, and it should be under a separate line item in the budget.  The resolution will authorize the creation of the new account and transfer of funds.  Mr. Margeson confirmed that the Comprehensive Plan Implementation Group would need to bring any requests for expending the funds to the Ways and Means Committee for approval.  A motion was made by Legislator O’Grady, seconded by Legislator Fanton and carried to approve the transfer and refer the matter to the Ways and Means Committee.   Refer to Ways and Means Committee

 

Adjournment

There being no further business to come before the committee, the meeting was adjourned at 1:20 p.m. on a motion by Legislator O’Grady, seconded by Legislator Fanton and carried.

 

 

Respectfully submitted,

 

Brenda Rigby Riehle, Clerk of the Board

Allegany County Board of Legislators