BUDGET COMMITTEE

September 23, 2010

 

** NOT APPROVED **

Committee Members Present

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

 

            A quorum was not present and no official business was conducted.

 

Others Present

M. Alger, D. Burdick, J. Margeson, B. Riehle, T. Ross, F. Sinclair

 

            Budget Committee Vice Chairman Dwight Fanton called the meeting to order at 1:10 p.m.

 

2011 Budget

            County Administrator/Budget Officer John Margeson distributed a summary of where we are at with the 2011 Tentative Budget as follows:

 

                                                                        2010 Budget                            2011 Tentative Budget

 

            Total Appropriations                            $  111,342,718                        $  123,030,999

 

            Total Revenues                                  $     84,203,684                       $     95,422,081

 

            Real Property Tax                                      27,139,034                              27,608,918    (+1.73%)

 

            Average County Tax Rate                   $16.91/thousand                     $17.01/thousand  (+0.58%)

 

            Co. Taxable Assessed Value             $1,604,163,777                       $1,622,476,722

 

            Amount from Fund Balance                $          700,000                       $          950,000

 

 

            Mr. Margeson stated that the General Fund Balance is approximately $12.7 million, and he is recommending using $950,000 which will take the balance down to approximately $11.8 million.  Mr. Margeson explained that there are two items in the Social Services budget that are really driving the significant increases we are seeing in both the appropriations and revenues.  When we prepared our 2010 Budget, we were instructed to remove the appropriations for HEAP and Food Stamps, so we did.  This year, the state reversed their decision, and instructed DSS Commissioners to put HEAP and Food Stamps back in the County Budgets.  Both programs are 100 percent funded with federal and state funding, and both the appropriation and revenue sides had to be increased by $7.7 million just for these two accounts.  The net impact to the taxpayer is zero. 

 

            The other item driving the appropriation side of our 2011 Budget is the Retirement System bill, which was budgeted at $2.3 million.  In 2010, we had to budget 12.1 percent of total payroll to pay the February 2011 bill at the end of 2010.  The NYS Comptroller’s Office instructed us to increase that amount to 16 percent of total payroll in 2011, which represented an increase of over $1.4 million.  Legislator Donald Cady asked if these figures include the County’s payment for the early retirement incentive, and County Treasurer Terri Ross indicated that it does.  Ms. Ross also noted that our total bill to the Retirement System has been estimated at $3.57 million; however, not all of that comes out of General Fund.

 

            Mr. Margeson confirmed that he will make note of these changes on his budget summary so that others will understand why we are seeing the increased figures. 

 

            Mr. Margeson explained that revenue account A08.2701.11 (RPYE DSS Dependent Children), budgeted at $1,061,028, represents money that is Allegany County’s after reconciliation by the state revealed that they had previously paid less than what was due to Allegany County.  Mr. Margeson indicated that the state typically sends money to the counties before all expenses are known to keep a positive cash flow, and sometimes they under pay and sometimes they over pay.  The reconciliation is always behind, and Allegany County does not book the revenue until the reconciliation has been completed.

 

            Legislator Dwight Fanton asked about the appropriated fund balance for the County Road Fund and the Road Machinery Fund.  Mr. Margeson explained that those funds have their own fund balances, and he used about half of each to balance those budgets. 

 

            Legislator Cady asked if the budget includes payment for the bonding of the new buildings, and Mr. Margeson indicated that it does.  Chairman Curtis Crandall commented that our improved bond rating also saved us a lot of money.

 

            Legislator Fred Sinclair mentioned employee health insurance and the new regulations that will require us to cover students until they are 26.  Committee members briefly discussed this issue.  Mr. Margeson indicated that he anticipates our overall health insurance costs to go down now that we are switching carriers.

 

            Mr. Margeson plans to release the tentative budget the middle of next week.  A Committee of the Whole meeting has been scheduled for 10 a.m. on October 12 so that the entire Board can discuss the 2011 Budget and address any concerns they may have.


 

Adjournment

The meeting was adjourned at approximately 2:15 p.m. on a motion by Legislator Cady, seconded by Legislator Fanton and carried.

 

 

Respectfully submitted,

 

Brenda Rigby Riehle, Clerk of the Board

Allegany County Board of Legislators