BUDGET COMMITTEE
August 15, 2018
Committee Members Present: P. Curran, P. Stockin, J. Burdick, D. Fanton, B. Harris, J. Ricci, C. Crandall
Others Present: G. Barnes, T. Boyde, D. Decker, W. Dibble, K. Dirlam, V. Grant, K. Graves, D. Healy, J. Henry, J. Hopkins, D. Horan, G. James, C. Knapp, B. Riehle, T. Ross, D. Scholes, M. Washer
Call to Order: The meeting was called to order at 9:00 a.m. by Budget Committee Chairman Phil Curran.
Public Works – 2019 Budget Review
Public Works Superintendent Guy James attended the meeting to discuss his 2019 Budget requests for the following cost centers: Public Works Administration (A1490), Buildings (A1620), Traffic Control (A3310), Solid Waste (A8160), Traffic Control (A3310), County Road Fund D, as well as Road Machinery Fund DM. Mr. James stated there is a lot of work that goes into his budget and thanked Fiscal Manager Yvonne Marks and County Treasurer Terri Ross for all of their hard work that goes into completing it. Mr. James continued that it is tough to only have 15 to 20 minutes to go over the magnitude of his budget and encourages anyone with questions to please go see him or Ms. Marks. Legislator Harris asked for an explanation of the different budgets. Ms. Ross stated that General Fund A is for administration costs, Building and Grounds, and the Landfill. County Road D covers the labor costs associated with capital projects and snow plowing. Road Machinery DM covers equipment, and Fund H are capital projects for 2019.
General Fund
Mr. James stated they have included funds to accommodate overlap training for Ms. Marks’ position for her upcoming 2020 retirement. Committee Chairman Curran asked how long that position will require overlap for training. Mr. James stated they budgeted for 6 months of training. Legislator Graves noted the increase in cost in 2018 for solid waste permits and asked if they plan to keep the same rate for 2019. Deputy Superintendent Dean Scholes stated it is ultimately up to the Board what the rate will be; however, he proposes to keep it the same.
Road Machinery Fund
Mr. James indicated they are requesting the following in their 2019 Road Machinery budget that totals approximately $605,000:
- 1 Self Propelled Road Broom
- 1 Tandem Dump Truck with Plow and Sander
- 2 Tandem Axle Dump Trucks
Capital Projects
Mr. James stated there will be four town projects in Ward, Birdsall, Burns, and Almond, one of which is a culvert. There are also two County projects; one is a bridge and one is a culvert.
Vehicle Fleet Program
Legislator Harris asked what Mr. James’ impression is of the lease program and how it is working for his department. Mr. James stated there are some bugs that need to be worked out. Part of the lease program was to eventually be turning back vehicles that had significant cash value to them; however, they are not at that point yet, but Mr. James hopes in year three they will be. Ms. Ross stated the lease program is a 5-year plan, and it is difficult to track right now because there are so many old vehicles to get rid of. Mr. James indicated they have been auctioning their scrap vehicles, and any money received goes into the fleet account as revenue. Legislator Decker stated one of the goals of the leasing program was to reduce the size of the County’s fleet, and asked if they have seen a Countywide reduction. Mr. Boyde stated that the fleet is not exactly where they want it, but it is reducing, adding they have also slowed down the department requests to purchase vehicles. Legislator Decker asked if there is an option to discontinue the program after the five years. Mr. Boyde stated yes, and there is also the option to discontinue it during the five years. Ms. Ross stated that departments are required to remove a vehicle prior to receiving a new one through the program. They do not receive the keys to the new vehicle until the old one is taken off the road, and the license plates are given to Mr. James.
Clerk of the Board – 2019 Budget Review
Clerk of the Board Brenda Rigby Riehle attended the meeting to discuss her 2019 Budget requests for the following cost centers: Legislative Board (A1010), Clerk of the Board (A1040), Central Services – Printing (A1670), Central Services – UPS (A1672), Central Services – Postage (A1673), Unallocated Insurance (A1910), Municipal Association Dues (A1920), and the CS Risk Retention Fund. Mrs. Riehle suggested that the $1,000 allocated to A1010.411 (Repairs: Personal Property) be moved to A1010.405 (Conference/Expense) as the Board is going to be short in their conference budget. Legislator Graves asked what the $1,000 was to be used for. Mrs. Riehle stated some filing cabinets were painted and repaired in 2018, and she does not believe that it will be needed in 2019. Mrs. Riehle stated that all .4 accounts remain the same, although, she did put in a little extra in the .2 account as she likes to replace one computer a year in her office. The committee briefly discussed the Central Service Postage account and the process of billing departments for reimbursement. Legislator Harris asked what the $52,000 purchase of equipment was for. Mrs. Riehle stated it was for the upgrade of the Chambers, and of the $52,000, they have spent $11,000. Legislator Harris asked if they are done, and Mrs. Riehle stated she is not sure as it is up to the Board.
CS Fund
Mrs. Riehle stated CS-15 599.00 (Risk Retention Fund) is budgeted at $291,000 which has been the same amount for 20 years. Ms. Ross noted that this fund has enough to continually fund itself and does not take any money from the levy at this point in time. Legislator Ricci asked what risks this fund covers. Mrs. Riehle stated it covers all liability claims against the County including legal counsel, as well as property and vehicles. Ms. Ross added that it also covers unemployment insurance.
County Treasurer – 2019 Budget Review
County Treasurer Terri Ross attended the meeting to discuss her 2019 Budget requests for the following cost centers: Treasurer (A1325), Tax Sale and Redemption (A1362), Auditing (A1671), Taxes on Municipal Property (A1950), Community College (A2495), County Reforestation (A8710), and Debt Service Fund. Ms. Ross stated that her budget remains the same as years past and briefly discussed each line item within her budget.
Community Colleges
Ms. Ross stated Community Colleges is the largest portion of her budget, and they have seen a slight decrease. She is unsure where they will land in 2018, but she is comfortable with budgeting $950,000 rather than $1,000,000 for 2019. Legislator Harris asked if the decrease is due to the declining population. Ms. Ross stated she believes it is due to the free tuition program as well as more options for online schooling. Committee Chairman Curran noted the increase in trade school could also be a contributing factor.
Debt Service Fund
Ms. Ross stated at this time they have two outstanding bonds. The Public Safety Facility bonds matures in 2029, and the Courthouse bond matures in 2035. Ms. Ross indicated that the Public Safety Facility was refinanced in 2006 which saved thousands of dollars in interest, and when the Courthouse bond is up for refinancing, they will look into that option. Chairman Crandall stated that it’s worth noting that not long ago there would have been a lot more outstanding debt, but now they are in position to "pay as we go" versus bonding our projects.
County Administrator – 2019 Budget Review
County Administrator Timothy Boyde attended the meeting to discuss his 2019 Budget requests for the following cost centers: County Administrator (A1011), Assigned Counsel (A1171), Auditor (A1320), Budget (A1340), Land Acquisition or Lease (A1622), Contingency (A1990), Bus Transportation (A5630), Beach & Pool (A7180), Other Recreation (A7185), Historian/Records Storage (A7510), County Reforestation (A8710), Wildlife Habitat & Stream (A8720), Conservation (A8730), Cooperative Extension (A8751), and CSH Risk Retention Health Fund. Mr. Boyde briefly discussed each account in his budget. Legislator Decker asked why the County is still paying rent for the church parking lot when we now have the Tronetti parking lot available. Mr. Boyde stated it is up to the Board to terminate that lease; however, he does not recommend it as we continue to have parking issues. Mr. Boyde indicated he would like to move County vehicles to the Tronetti lot which will free up additional spaces.
Contingency
Mr. Boyde stated they are looking at an increase in A1990.429 (Contingency) as they are currently running low in that account. Mr. Boyde indicated they will be budgeting $350,000 rather than $250,000. Legislator Graves asked what has come out of Contingency to cause it to run low. Mr. Boyde stated the Shared Services and Cyber Insurance Contracts. Ms. Ross noted that this account does not incur expenses; it is used to transfer to other accounts that are in need of funds. Mr. Boyde stated he likes to keep contingency as low as possible because you’re less tempted to spend in areas you shouldn’t be.
Hotel Tax
Legislator Harris asked if Alfred University pays the tax on the Saxon Inn and what the status is of their PILOT (Payment in Lieu of Taxes). Ms. Ross stated they do not have a PILOT, and she is not able to provide additional details as it is confidential information. Ms. Ross indicated that the County is looking into contracts with Air BNB’s to start receiving hotel tax as they are not currently covered in the County’s Hotel Tax Law.
Bed Tax
Legislator Harris stated he believes it would be in the County’s best interest to investigate the possibility of instituting a bed tax on our universities. It’s been done in other municipalities, and Alfred, having over 90 percent of assessed value non-taxable, is a tremendous burden. Legislator Harris continued that he feels a small bed tax based on the number of students would be something appropriate to consider. Ms. Ross asked what County or municipality has done this, and Legislator Harris stated he does not know of any counties, but he will get the municipalities to Ms. Ross.
Land Bank Legislator Graves asked for the purpose of the $100,000 request from the Land Bank. Mr. Boyde stated it will help them secure additional funding, purchase additional homes, and provide assistance with the tax sale process. Mr. Boyde indicated the request has not fully been vetted yet as it was just received. Legislator Fanton asked if there are specific rules for use of the money. Mr. Boyde stated these funds are to be allocated by percentage for the purchase and rehabilitation of homes as well as demolition. Legislator Fanton asked what percentage can be put towards demo as $1 million goes quick once you start rehabbing. Planning Director Kier Dirlam stated the $1 million grant hasn’t been written yet, adding the immediate reason for this $100,000 request was due to concern that the Land Bank was going to hit 2019 and not have administrative funding left to keep the office open. Mr. Dirlam continued that he has been asked by funding agencies why our County doesn’t allocate any money to the Land Bank as these agencies are looking at how much commitment the County has to it. Legislator Fanton asked about the demos that have already been done, and Mr. Dirlam indicated they don’t count as they were not done through the Land Bank. Legislator Fanton noted the Land Bank just received some properties from the tax sale. Mr. Dirlam stated they do have a few; however, unfortunately the quality of them was awful and would make better demolitions than rehabs. Mr. Boyde stated they are looking into how to write the grant so we can get the biggest bang for our buck. Legislator Graves stated he would like to remove the $100,000 from the 2019 Budget until a decision is made. Mr. Dirlam indicated that without the $100,000 set aside until they can get to the next grant, they will run out of money and their office will go dark. Legislator Harris stated it was his understanding that when the Land Bank was formed and they received seed money, it would become self-sufficient. Mr. Dirlam stated that it didn’t work out that way, and he believes it’s the same situation across the state. Legislator Dibble suggested 10 to 20 percent in administration costs be added into the grant to help keep their doors open. Mr. Dirlam stated that the current grant does have admin money and that’s what they’ve been running on; however, they are getting to the end of what they can use. Chairman Crandall stated the original plan for these didn’t work out all across the State, but if we can take that $100,000 and potentially get $1 million in demolition money, it seems foolish not to do. Ms. Ross stated that the Land Bank needs to remember that the County did contribute to them by giving up five tax sale properties, two of which they know could have been sold, noting that the Land Bank has not done anything with the properties. Mr. Dirlam stated he doesn’t disagree; however, due to how the transfer was done, it is not viewed by the State as a contribution. Legislator Fanton thanked Mr. Dirlam for his efforts, and suggested they look at what direction needs to be taken with the Land Bank.
Medical Insurance
Chairman Crandall addressed the $1.3 million increase in CSH Risk Retention – Health, asking if that number still needs to be worked on. Ms. Ross stated they are going to be short in 2018, and after reviewing what has been spent over the last few years, she believes at least $1 million needs to be allocated. Ms. Ross plans to reach out to our Third Party Administrator for an explanation of expenses the County has incurred over the last couple of years. Ms. Ross continued that she also has some concerns with the administration costs associated with Medical Insurance as she thought they would see a decrease when they changed administrators and insurance from Blue Cross to Independent Health; however, they are not a seeing a decrease, noting that so far, $351,000 has been spent on admin costs. Ms. Ross indicated that $6 million was spent in medical claims which was up from $800,000 the year before. Legislator Fanton stated they may need to start encouraging retirees still on the County insurance to sign up for the Medicare Advantage Plan. Chairman Crandall stated that he thought it was a requirement. Legislator Fanton indicated that retirees who are grandfathered are not required, but there was a time when they strongly encouraged it, and he feels they should do it again. Ms. Ross stated there is a Resolution in place that requires employees hired after a certain date to move over once they retire.
Wellsville Airport
Mr. Boyde indicated there is a request forthcoming from the Town of Wellsville asking the Board to consider allocating funds in the amount of $75,000 to the Wellsville Airport in the name of economic development as the activities happening there can and do have impact on the development of the County.
Special Meeting
Ms. Ross requested a special Budget Committee meeting be held on Wednesday, October 3, at 9:30 a.m. for the purpose of reviewing Budget Officer recommendations for the 2019 Budget. The meeting was subsequently changed to a Committee of the Whole. Approval of minutes
A motion was made by Legislator Fanton, seconded by Legislator Ricci, and carried to approve the Budget Committee minutes of July 18, 2018. Sales Tax Report County Treasurer Terri Ross distributed the 2018 Allegany County Sales Tax Report reflecting receipts totaling $12,708,379.12. The year-to-date figures show an increase of $981,688.72 or 8.371 percent more compared to last year at this time. Ms. Ross stated they are fortunate to still be in the black and it seems standard statewide to be up 8 percent. 2018 County Treasurers & Finance Officers Summer Conference Ms. Ross distributed and briefly discussed a summary of the 2018 County Treasurers & Finance Officer Summer Conference. Ms. Ross indicated they will be receiving a copy for Allegany County as to where our specific sales tax is coming from, and she looks forward to reviewing the information. Department of Social Services Second Quarter Budget Report Social Services Commissioner Vicki Grant attended the meeting and submitted her second quarter budget report to the committee for review. Ms. Grant stated that they are on target with projections. Semi-Annual Budget Reports Committee Chairman Curran noted the semi-annual budget reports for all remaining departments are included in the packet, and the committee can review them at their leisure. Adjournment There being no further business to come before the Committee, the meeting was adjourned at 11:17 a.m. following a motion by Legislator Fanton, seconded by Legislator Stockin, and carried.
Respectfully submitted,
Meghan Washer, Confidential Secretary to the Clerk of the Board
Allegany County Board of Legislators