WAYS & MEANS COMMITTEE
February 15, 2017
NOT APPROVED
Committee Members Present:
P. Curran, D. Healy, J. Hopkins, K. LaForge, T. O’Grady, D. Pullen, D.
Root, C. Crandall (Absent: D. Fanton, C. Jessup)
Others Present: L.
Ballengee, H.B. Budinger, R. Christman, D. Decker, K. Graves, K. Hollis, R.
Hollis, C. Knapp, J. Luckey, M. McCormick, T. Miner, B. Riehle, T. Ross
Call to Order: The meeting was called to order at 3:08 p.m.
by Chairman Curtis W. Crandall.
Approval of Minutes
The
February 13, 2017, Ways & Means Committee minutes were approved on a motion
by Legislator LaForge, seconded by Legislator Curran, and carried.
Sales Tax
Extension
Clerk of
the Board Brenda Rigby Riehle stated that if the additional one and one-half
percent (1.5%) sales tax is to be extended beyond the November 30, 2017,
expiration date as set forth in Resolution No. 200-15 (originally changed by
Resolution No. 118-67), it will be necessary to adopt a resolution requesting
our state legislative representatives to introduce and seek passage of the
required legislation to continue the additional one and one-half percent (1.5%)
County sales tax for four years. Based
on sales tax revenue receipts of $19,289,652 for 2016, the additional one and
one-half percent (1.5%) sales tax resulted in $6.43 million in revenue. It was noted that this action is a multi-step
process, and this is the first of three resolutions that the Board will be
required to adopt.
Legislator
David Pullen expressed concern about the statement in the draft resolution that
Allegany County is presently at 92.45 percent of its constitutional taxing
limit for real estate taxes especially considering the fact that we have been
reducing our tax rate and complying with the tax cap. Legislator Pullen stated
that while our tax base has not been increasing significantly, the tax rate is
going down, and unless we are seeing a significant reduction in our tax base it
would seem the constitutional tax limit would also be decreasing. County Treasurer Terri Ross stated that it
is based on the levy, rather than the rate, and different calculations are
used. Allegany County has fluctuated
between 79 percent and the mid-90 percent over the last several years. Ms. Ross indicated that she will review the
formula and let committee members know how the rate is determined. It was noted that the State Constitution and
related statutes would allow the NYS Comptroller to withhold certain state aid
payments, and possibly sales tax revenue, if we were to exceed our tax limit so
it’s very serious. Chairman Crandall
mentioned the control board that was brought into Erie County when they ran
into trouble.
Chairman
Crandall spoke in favor of the resolution, noting that every dollar we collect
is a dollar less we have to raise property taxes. Legislator David Decker proposed that we not
seek the additional 1.5 percent sales tax revenue and find $6.4 million in
cuts. Legislator Decker stated that our tax rate is one of the highest, and we
have to do something. Chairman Crandall
stated that the Board would have to be prepared to eliminate all optional programs
if we do not move forward with securing the additional 1.5 percent that we
currently collect. Legislator Tim
O’Grady remarked that Legislator Decker just voted “yes” on the Cornell
Cooperative Extension contract, and we can’t keep approving spending and expect
to cut taxes. Legislator Karl Graves
commented that it would be nice to get rid of the half percent so we would be
more competitive with surrounding counties, noting that if we had more parity
it might help. The half percent that
Legislator Graves is referring to is approximately $2 million. Legislator Healy stated that he does not
believe we would want to make that reduction as he would much rather look at
saving and trying to reduce property taxes, rather than lowering our sales tax
rate. Everyone wants to reduce our
overall tax burden, but this isn’t the place to start. Legislator Curran agreed with Legislator
Healy and stated that we are not properly prepared to make the drastic cuts
that would be involved in lowering our sales tax rate. Chairman Crandall also mentioned some actions
the State has taken recently such as the Governor vetoing the indigent defense
bill that really make it tough for counties to lower their taxes when mandated
costs remain so high. County Treasurer
Ross stated this issue was also discussed at the NYSAC Conference, and they
ended up adopting a resolution calling on the State Legislative Leaders to
reform the Home Rule Revenue Process by enacting a 4-year authorization period
for all local sales tax extenders in 2017 with the goal of making this local
renewal authority permanent.
A motion
was made by Legislator Hopkins, seconded by Legislator O’Grady, and carried to
offer a resolution requesting our state representatives to introduce and seek
passage of legislation authorizing Allegany County to continue the additional
one and one-half percent county sales tax for four years. Prepare Resolution
