COMMITTEE OF THE WHOLE

NOVEMBER 8, 2010

 

** APPROVED **


Members Present:  Chairman C. Crandall, G. Benson, D. Burdick, D. Cady, P. Curran, D. Fanton, M. Healy, T. Hopkins, K. LaForge, D. Pullen, F. Sinclair, N. Ungermann; (Absent: A. McGraw, T. O’Grady, D. Russo)

 

Others Present:  M. Alger, A. Finnemore, J. Margeson, T. Miner, B. Riehle, T. Ross;  Media:  D. Roorbach, Olean Times Herald

 

Call to Order:  The meeting was called to order at 11:00 a.m. by Chairman Curtis W. Crandall.

 

2011 Allegany County Tentative Budget Adjustments

 

            Chairman Crandall stated that the Tentative Budget currently calls for an approximate .5 percent increase in the property tax rate, or $.09 per thousand.  Newly available assessed value figures have changed that to around .3 percent tax rate increase, or $.03 per thousand, which brings us to the point where a small amount of adjustment, calculated at $75,000, would reduce our property tax rate increase to zero.  During discussions, it was suggested that this reduction could come from .1 personnel services accounts, and it would be offset by the reduction in positions through early retirement.  The adjustment could be made through a pre-filed Resolution at the November 22 Board meeting, if that is the consensus of this Committee.

 

            Legislator Pullen agreed that we will see at least that amount of savings from vacant positions that are consolidated, eliminated, or even filled at lower salaries.  Mr. Pullen also made note of savings realized in the cost of pharmaceutical expense related to the change already made with non-unit employees where some have switched over to “Option 1,” and the use of generic drugs is being encouraged.  With the recent agreement with the PEF union, we will continue to see additional savings as people continue to choose that option.  That $75,000 reduction will be more than made up between those two sources.  Mr. Pullen supported making the adjustment to the Tentative Budget in order to reduce the property tax rate increase to zero.

 

            Chairman Crandall commented that to have a clear idea of the effects of the early retirement incentive and elimination of positions through attrition, we need to carefully track the reductions, whether it’s an elimination of a position or a reduction in pay for bringing in someone new at a lower rate.  There are funds in the budget to offset the cost of the incentive.  We’ve already seen the consolidation of positions in Emergency and Fire Services, and recently it was announced in a Human Services Committee meeting that a vacant Senior Caseworker position was not being filled.  Those are things just being mentioned in committee, but we need to keep track of it all, including what portion of the savings is local share.

 

            Legislator Sinclair felt that using $75,000 to reduce the tax rate increase to zero is a good use of the savings that will be realized with the early retirement and reduction in workforce.  Every effort being made to reduce the tax burden will help with the challenges we face in the future.  Mr. Sinclair noted some of the other gestures already made, such as the allocation of $950,000 from fund balance to reduce the tax burden, but he questions going any further.  Reducing the tax rate increase to zero is something he would support.

 

            Legislator Burdick questioned if the cost of the early retirement incentive, including sick and vacation time expense, would be this year’s expenses.  County Treasurer Terri Ross responded that they would be 2010 expenses.

 

            Legislator Sinclair noted that the careful filling of some of these key department head positions will involve some time for advertising, interviewing, and negotiating.  These small amounts of time when the position will be vacant and no salary will be paid out will also result in savings, supporting the idea that the savings are there.

 

            Legislator Pullen stated that he would have liked to have made the reduction more significant, but the current economic climate does not allow for it.  The projections for what we’re looking at in the future for the County’s retirement contribution indicate very sizable increases.  If we don’t want to have large tax rate increases, we have to conserve the fund balance to accommodate for that.  If we use the fund balance to further reduce the tax rate now, we’d be hitting the taxpayers with large increases a couple of years down the road, which is even more devastating.  The County recovered from a large deficit that was carried several years ago, and has built up a fund balance which is significant, but not large enough to comfortably face the state’s large and ever-increasing pass-downs.  The state often changes reimbursement rates for the counties when we’re nine months through our fiscal year; that’s the reason to have the fund balance.  We’re able to absorb those increased expenses, and didn’t have to borrow when the state reimbursements were late.  Until we see how things develop with the new Governor and Legislature, we have to be cautious in handling what’s entrusted to us by the taxpayers.

 

            Legislator Sinclair added that cutting and reducing the tax burden is a positive thing; however, there is a point when some of our surplus should be invested in economic development initiatives and infrastructure, which would boost the tax base and increase the number of jobs, thereby reducing the tax burden.  Cutting costs is not the only way to get through a recession; we have to support these other things to keep us level when we come out of this.

 

            Chairman Crandall noted that he has information to share during the Committee of the Whole meeting scheduled prior to the Budget Hearing on November 10 relative to reducing or capping property taxes.  The information will illustrate that there has to be change in state and federal policy before we can do anything along those lines, and it will outline some of those needed changes.  We can’t do it here; we’re just administering the programs they require.  Reducing the tax rate increase to zero put us in a bad position several years ago, but we weren’t in as good shape financially then either.  We can’t fall back on using the fund balance in order to hold taxes at zero.  We can use and retain funds for development and infrastructure.  It’s an overall mix of responsible financial oversight.

 

            A motion was made by Legislator Pullen and seconded by Legislator Fanton to amend the 2011 County Tentative Budget by reducing Personnel Services (.1) accounts by $75,000, with the specific accounts to be identified by the County Administrator and given to the County Attorney for inclusion in the Resolution.  The motion carried on a roll call vote of 12 Ayes, 0 Noes, 3 Absent.  Prepare Resolution for November 22

 

Procedure for Filling Vacant Department Head Positions:

 

            County Administrator John Margeson reported that we have two department heads taking advantage of the retirement incentive:  Social Services Commissioner Patricia Schmelzer and Employment and Training Director Jerry Garmong.  He highlighted the typical process for filling department head vacancies:  the County Administrator, working with the Personnel Officer, prepares a help wanted ad including the position description and requesting a letter of interest and application be filed.  That process is complete for the Social Services Commissioner position.  (The Employment and Training Director position is still open).  The applications are reviewed by the Personnel Officer, who removes the applications not meeting minimum qualifications (currently taking place).  Following that, a couple of different procedures have been followed in the past:  1) every member of the committee of jurisdiction is involved, and the committee makes the decision to interview all or some; or 2) the County Administrator recommends to the committee of jurisdiction which applicants he feels should be interviewed.  The Human Services Committee should decide on how to proceed.  Human Services Committee Chairman Doug Burdick felt the committee should see all the applications for those qualified.  Mr. Margeson noted that the committee will make a decision on applicants to interview and decide on the date and time.  After the interviews, the committee will decide who they feel should be hired.  The committee offers a resolution to the full Board for the appointment at a certain salary.  There are a couple of scenarios for deciding salary:  1) the committee makes a recommendation, and the Personnel Committee is asked to review that; or 2) the chairman of the committee asks for an executive session of the full Board.

 

            Legislator Ungermann requested that the top three or four applications be distributed, well in advance, for review by all Legislators, along with a copy of the job specifications.  Mr. Margeson replied that could be done.  Chairman Crandall pointed out that we need to have a specific procedure, whether we have committee or full Board involvement.  There can’t be multiple people calling for references.  Applications have been filtered out to those meeting qualifications, and any questions about references typically come through the committee to the County Administrator.  Legislator Pullen requested if all Legislators could be notified when interviews are to be conducted and attend if they are available.  Mr. Margeson replied that could be done.  Legislator Sinclair requested that there be a uniform list of topics asked of all applicants, and would like provision for taking notes of responses.  County Attorney Tom Miner noted that he didn’t see a problem with that.  Mr. Margeson responded that he provides committee members with a printed list of questions, and committee members usually jot down notes for each question, but he saw nothing wrong with having a recording secretary.  In response to a question about the number of applications, Mr. Margeson noted that there were 13 for the Social Services Commissioner, with 12 or 13 meeting qualifications.

 

            Legislator Pullen noted that in light of recent discussions on department head pay raises, one conclusion that could be drawn is that the only thing that would matter in this process is who is cheapest.  This is an important position, and he wants to see efficiencies, creativity, and ingenuity.  Mr. Pullen suggested that the committee be given some guidance as to what we’re looking for and how the specifications in the application will come into play.

 

            Legislator Burdick asked about the term of the appointment for the Social Services Commissioner.  Mr. Margeson replied that it is a six-year term, and he thinks this is the beginning of a new term.  This selection also has to be approved by the NYS Commissioner of Social Services.  Legislator Cady asked if some of the problems with salary could be avoided by setting a salary ahead of time, which could result in an applicant withdrawing if he doesn’t like it.  Chairman Crandall noted that in the past, a salary range is established.  All candidates are different.  Mr. Cady remarked that a range is alright, but the salary should be less than the experienced employee received.  Legislator Hopkins commented on the lack of a probationary period.  Mr. Margeson noted that there is still a termination procedure set in civil service law, but you can’t change the term.

 

            Legislator Sinclair commented that he would like to see some of the ideas Mr. Pullen brought forward put into the interview questions and challenge candidates in terms of facing our pending escalating costs and how they would administer programs to keep things under control.  Mr. Sinclair also suggested that in filling the Employment and Training Director position, we consider if we could outsource some of the aspects of that operation.  The second in command retired also.  We should look at that, not just in terms of savings, but the possibility of outsourcing.  The issue will be discussed at the next Planning and Economic Development Committee meeting.  Mr. Cady suggested a provision for consulting cooperation with the Employment and Training Director position.  The new hire may want Mr. Garmong’s assistance.

 

Adjournment:  The meeting was adjourned at 11:50 a.m. following a motion made by Legislator Fanton, seconded by Legislator Cady and carried.