Called to Order

 Mr. Penniman called the meeting to order at 4:04 p.m.  He said the purpose of this meeting is to review

Sales Tax

 Mr. Squires reported on an article that appeared in the Ithaca Journal on November 27 relative to increased sales tax receipts.   He said this year sales tax is running approximately $1 million over what was budgeted. At this time there are still two months of sales tax for 2003 yet to be received, however, he feels confident the County will receive $23.3 million, compared to the budgeted amount of $22.3.  Mr. Squires said it would be reasonable to re-evaluate the budgeted estimate for 2004, as well as understand the volitility of it.

 Currently, the sales tax revenue contained in the 2004 budget is $23.6 million.  Mr. Squires said this is an aggressive estimate; however, based on this recent information, he could support increasing that figure by $200,000.

 Mr. Penniman asked if there is any way to tell what factors of the economy were generating these increased revenues.  Mrs. Squires responded that Tompkins County is very dependent on utility sales and areas such as clothing.  He noted there are new businesses opening up in Tompkins County which will benefit sales tax revenues further.  Mr. Sqruies said as a County Finance Director he has access to information relative to sales tax but is not allowed to share that information with anyone.

 Mr. Squires also reported on the County's Retirement Reserve, which was established and maintained over the last ten year.  He said Tompkins County has used this reserve in order to avoid paying interest.  He stated last year's Retirement Reserve program costs were $486,000, leaving a balance in the Reserve of $230,000.  The County has the option of liquidating that reserve and recognizing that money as revenue in the 2004 budget.  He noted this would be able to be done one time only and that there would no longer be funds left in this reserve to pay for early retirement programs.

 Mr. Winch asked if an analysis has been done by the Personnel Department to see who is eligible for retirement.   Mr. Whicher said an analysis has not been done; however, there are currently there are 36 employees in Tier I, 35 in Tier 2, and 79 in Tier 3.

 Ms. Blanchard asked how much of the Retirement Reserve is attributed to each employee.    Mr. Squires said $35,000 to $50,000 is attributed to each employee, and that $230,000 would cover six to seven employees.

 Mr. Proto asked if the Retirement Reserve were depleted, if the property taxes would go be increased in the future to cover early retirement.  Mr. Squires responded it is unlikely because early retirement programs are designed to remove positions from the payroll and if they truly go away, the cost can be recovered very quickly.

Pension Deferral Savings/Cost

 Mr. Squires said pension costs are driving the tax rate up because costs are going from 4 1/2% to 11 1/2%.  Next year, the Comptroller's Reform package promises to give counties the retirement costs prior to preparing budgets for the following year.   The County's 2004 bill is for $4,355,834; however, 12% of that represents Public Library and certain Tompkins Cortland Community College employees.  Mr. Squires said the County is allowed to opt to pay only 7% next year and defer $1.8 million by either borrowing from the State or on its own.  Payments on monies deferred would be $355,200.  Mr. Squires said he does not recommend that the Legislature take defer these expenses because 2005 rates will not go down.  Some possible reasons for counties opting to defer these expenses would be to bring down the current tax rate, they may have capital projects ending, or they may have intentions to greatly reduce staff costs.

 Ms. Kiefer spoke strongly in opposition to doing this and said she feels counties' doing this are acting out of desperation and are making a short-sighted decision unless they are aware of large amounts of revenues they will be receiving in the next year.

Contingent Fund

 Mr. Squires said there is currently $476,632 remaining in the Contingent Fund; however, he believes this will be depleted by the end of the year because there are many opportunities that exist in departments to request replacement pay.

Operating Budget Summary

 Mr. Squires said there are programs in the Department of Social Services that are anticipated to be overdrawn and at the present time the shortfall is estimated at approximately $200,000.   He said the Department of Social Services has a payroll of $6.6 million and has there are many State and federal revenue streams that fluctuate greatly.   Through November, the Department has expended $12.4 million.
Many areas are coming in over-budget.   Mr. Penniman asked how the current situation compares with the DSS budget last year at this time.  Mr. Squires said the situation is comparable.

 The Committee briefly reviewed operating expenses and revenues thru November 30, 2003 for other programs within Tompkins County.

Adjournment

 The meeting adjourned at 4:58 p.m.

Respectfully submitted by Michelle Pottorff, TC Legislature Office