BUDGET COMMITTEE
May 17, 2017
NOT APPROVED
Committee Members Present: C. Crandall, K. LaForge, P.
Curran, D. Fanton, D. Healy, D. Root, P. Stockin
Others Present: T. Boyde, D. Decker, K. Graves, R. Hollis,
J. Hopkins, C. Knapp, B. Riehle, T. Ross, M. Washer
Call to Order: The meeting was called to order at 11:02 a.m.
by Budget Committee Chairman Curt Crandall.
Approval of Minutes
A motion was made by Legislator Fanton, seconded by
Legislator Root, and carried to approve the Budget Committee minutes of April
19, 2017.
Sales Tax Report
County Treasurer Terri Ross distributed the 2017 Allegany
County Sales Tax Report reflecting receipts through May 17, 2017, totaling
$6,569,620.07. The year-to-date figures show an increase of $65,764.43 or 1.011
percent compared to last year at this time. Ms. Ross stated she is excited to
think we are in the black a fourth time, adding if we keep it up we’ll see an
improvement on our projection. Legislator Healy asked how we are in comparison
with 2015. Ms. Ross stated 2015 was a high year, so are probably down from
2015, but are up from 2016. Ms. Ross stated at the recent Finance School
Conference she attended, they discussed sales tax on remote sales. There is a
push on it, and we are beginning to see some of that. Legislator Healy asked if
they are collecting it, and we just aren’t getting any of it. Ms. Ross stated
she thinks they aren’t collecting it; therefore, don’t have it to hand over to
us, adding the problem with New York State is every County has a different
sales tax, so it’s difficult for them to distribute it based on the different
rates, adding she’s not opposed to the state having a blanket sales tax rate of
7 percent, because that is better than nothing. Legislator Healy asked if Ms.
Ross is advocating for that. Ms. Ross stated, yes, most people are on board to
try and get the marketplaces to collect and pay us because the way we live
today is with online shopping, especially in a rural place like ours. Ms. Ross
continued that currently what we receive is only if the online order is
fulfilled by Amazon. If the order is fulfilled by someone else, they are not
collecting the sales tax on it.
Albany Update – 911 Surcharge
Ms. Ross distributed a copy of the Albany Update that she
received at the Finance School Conference. Ms. Ross stated the tax cap is
projected to be at 1.8 percent which is a huge increase because we were at .73
percent, adding it’s a good sign, and they are happy with it. Ms. Ross stated
the 911 Surcharge was also discussed; the state will keep $.90 and we will get
$.30. Legislator Healy asked if this will be new revenue to us. Ms. Ross
stated, yes, it is, and will go into the 911 reserve. Legislator Healy stated
he thinks they should budget some of that towards maintenance. Ms. Ross stated
they don’t budget for reserve; they collect revenue during the year, and at the
end of the year it goes to the reserve, adding they appropriate from the reserve
for each year to cover certain expenses for 911, and the majority of it is used
to pay their phone bill for the lines going into 911. Chairman Crandall asked
if there is a reasonable handle on what that could produce. Ms. Ross stated
there is no way to really know. Chairman Crandall added with no history and or
way to project it, we won’t see what it could produce until 2018 after we’ve
had a full cycle. Legislator Healy asked if that counts against the 2 percent
tax cap. Ms. Ross stated, no, because they appropriate from the reserve for
that expense which comes out of a different fund. Chairman Crandall asked what
drives where the money comes from, and how do they know it comes to Allegany
County. Ms. Ross stated it goes off of your address. County Administrator Tim
Boyde stated his understanding is that it’s for pre-paid cell phones;
therefore, it will come off at the point of sale. Ms. Ross stated if it comes
off at the point of sale, we won’t get as much as we might anticipate, adding
if they are buying them at Walmart, we aren’t getting it. Legislator Fanton
asked if there is any way to do what the state has done and move some of our
operating accounts to capital accounts. Ms. Ross stated our capitals are not exempt
from the cap, only the states’ are, adding the difference is that the states’
cap is on spending; whereas, ours is on levy. Legislator Fanton stated that all
around, they have made it very easy for themselves and very difficult for us.
Albany Update – Raise the Age
Ms. Ross stated that the Raise the Age portion of the budget
is something we are going to have to work diligently to capture all of the
cost, because we are supposed to get the majority of it back. Ms. Ross
continued that when the times comes, we will have to work with Probation and
everyone else it will affect so we can make sure to capture all of what it is
costing us and get the biggest return.
Albany Update – County Motor Fuel Sales Tax Revenues
The committee discussed the fluctuation of the County Motor
Fuel Sales Tax Revenues. Legislator Healy stated in 2009, the Truck Stop became
sporadic in their operation and eventually closed, and that could probably
account for the drop seen in fuel sales tax revenue in 2009. Legislator Healy
continued that as we apply for additional grants or other sources of funding,
we should be stressing the loss of sales tax because a lot of it is probably
going to Pennsylvania, when it could be coming to New York if we had it up and
operational.
Shared Services Plan
Chairman Crandall asked where we are currently at with the
shared service plan and what the preliminary approach is. County Administrator
Tim Boyde stated they have surveyed all of the towns and villages, and the
first meeting is set for Wednesday, June 7, at 6:30 p.m. at BOCES in the
multipurpose room. Mr. Boyde continued that the Village of Richburg has opted
out, indicating they are already sharing enough. Mr. Boyde went on to say that
the first question is do we do this in 2017, or delay it to 2018, adding they
have a one-time shot at receiving dollar for dollar matching funds on anything
saved, so do we move ahead with a half put together plan and get $5, or look at
a meaningful plan over the course of 18 months and maybe get $100. Legislator
Fanton asked how they split the dollar for dollar match. Mr. Boyde stated they
would have to work on a Memorandum of Agreement, and unfortunately there are
more questions than there are answers. Mr. Boyde continued that another reality
to look at is can they find some real shared services. Mr. Boyde spoke with the
Village of Wellsville Mayor Randy Shayler who would like to look at shared road
services. The Town of Almond would like to look at shared water systems, and
healthcare was also a topic of shared services. Mr. Boyde stated they would
like to have all ideas back by May 26 so they can have a good discussion,
adding his biggest problem is trying to do meaningful work in a short amount of
time. Chairman Crandall stated the one time dollar for dollar is an important
piece that would make a substantial difference. Legislator Decker asked if
there is the possibility to do a preliminary plan in the short-term which will
give them time to take care of the full dollar match. Mr. Boyde stated that is
a frequently asked question that has not been answered yet, but Washington
County has indicated from the start that is what they plan to do. County
Treasurer Terri Ross stated there are several counties that aren’t going to
develop any kind of plan for 2017, and the consensus about the dollar match is
that it will cost the County money, but might save the municipality money so
what is the real net match going to be. Legislator Stockin asked if the County
is poised at some point to do marketing to the towns. Some towns turn over
supervisors every 2 years which makes it very difficult for them to keep
abreast of important issues, and that makes proper marketing crucial. Mr. Boyde
stated not everything is going to be popular with everyone, so there may be
things that make sense for towns and villages in the northwest corner that
don’t make sense to other municipalities; however, they do have the option to
opt out with no penalty allowing us to proceed. Mr. Boyde continued the other piece
to look at is a county-to-county sharing arrangement with conflict attorneys
and the possibility of sharing with Cattaraugus County and backing each other
up which would save us money. Chairman Crandall stated that type of approach is
a big direct savings to the County. Mr. Boyde stated it’s a $210,000 contract
they have with conflict counsel, who is also asking for more money. Legislator
Stockin asked if there is any read at all on how big a benefit it has to be to
each of the towns. Mr. Boyde stated there is no expectation in the plan that it
has to meet a certain threshold; anything that is realized counts. Mr. Boyde
continued that one session he attended indicated even if it costs you money up
front you should still note it, adding there are a lot of issues to try and
make sense of, one being tax collecting. If we did the tax collection system
for the whole County, with there being 59 taxing districts, they would lose
people, but we would have to add people, and to only have six weeks to try and
make sense of these issues and pull everything together is daunting. Legislator
Fanton stated typically the clerk is the tax collector, and the towns aren’t
going to get rid of their clerk, so you won’t see them losing people. Ms. Ross
stated it’s very difficult because of the partial payment process included in
the budget. Towns and municipalities can choose to collect partial payments,
and if they choose to take them, we could potentially have 58 different plans
for partial payments, which is ineffective. Ms. Ross continued that she doesn’t
mind them wanting to do partial payments, but feels the County should take the
lead on it. Chairman Crandall stated in the past we’ve been approached about
taking partial payments, and the biggest slam for us now is that our position
is different than it was at one time when it would have been cash flow to us.
Chairman Crandall continued that it needs to be looked at because you can’t
take your operational revenues and have them trickle out without having monies
to carry it. Ms. Ross stated if the municipalities do not collect their full
levy, the County has to make them whole. Currently we are making the schools
and village’s whole at around $3,000,000, so depending how they choose to
handle the partial payment process, that number could be affected.
Attorneys Present at Arraignments
Legislator Decker asked where we are with the requirement to
have attorneys present at all arraignments and whether or not we have received
the grant to hire attorneys. Ms. Ross stated we did receive the grant, and
Public Defender Barb Kelley will be bringing the acceptance of funds to the
next Public Safety Committee meeting. Legislator Curran stated another area to
look at is combining groups of town courts into one central district court.
Legislator Healy stated we are probably slowly moving in that direction just
out of necessity, but there are pros and cons to that as well.
2018 Budget
County Treasurer Terri Ross distributed a tentative Priority
List of Projects and stated they are beginning to look at the 2018 Budget. Ms.
Ross continued that this list is not set in stone and can be modified if
needed, adding there are some projects listed with unknown costs because they
are still waiting to get figures. Elections Commissioner Rick Hollis stated a
few months ago he talked about setting money aside for new voting machines and
was told he had to wait, and asked if it is on anyone’s radar. Ms. Ross stated
that Board of Elections is on the Priority List of Projects.
Financial Presentation
Chairman Crandall stated his presentation on the County’s
finances has been put together in a PowerPoint with narrative, and will be
available to view online. There are also hard copies that will be available for
anyone who wishes to distribute them.
Adjournment
There being no further business to come before the
Committee, the meeting was adjourned at 11:52 a.m. following a motion by
Legislator Fanton, seconded by Legislator Stockin, and carried.
Respectfully submitted,
Meghan Washer, Secretary to the Clerk of the Board
Allegany County Board of Legislators
