Mr. Joseph called the meeting to order at 9:04 a.m.
Changes to the Agenda
No changes were made the agenda.
Chair’s Report
Mr. Joseph had no report.
County Administrator’s Report
Mr. Erb said a group of Fiscal Advisors, Inc. are available to meet with the Committee and are willing to advise on securitization of tobacco monies. He said fiscal advisors often review bond packages and make recommendations and their fee is based on a small percentage of bonds actually issued. He said if the County is interested in securitization they would provide advise on what would be best for the County.
Mr. Joseph said he was speaking to Mr. Squires and Ms. West about securitization and whether the County could accomplish the same thing through its own bonding and how it would affect the County’s bond rating. He said his interpretation of Mr. Squires comments was that even if it affects the bond rating, it would still be cheaper. He said the only difference would be that you can’t bond for thirty years for projects when the projected life is only for ten (e.g., communication towers). Mr. Erb said he expects the NYSAC proposal will be ready around the first week in May and expects counties will have six to eight weeks to decide whether to go with that proposal.
Mr. Penniman said when those options are presented he would like to see a scenario to securitize forty to fifty percent of the money per year and whether that would have a higher bond rating.
Mr. Proto said he would like to see a comparison of securitization by each firm. He would also like to see Mr. Lane and Mr. Koplinka-Loehr’s trust fund proposal included as well. He expressed concern over the time frame involved for the Board to make a decision.
Mr. Squires said the main focus right now should be on what the use of the tobacco money is going to be. He said a decision by the Board not to use it on a specific purpose is a decision in itself.
Mr. Joseph said there are a lot of groups that stand to gain a lot from the County’s money and noted the County still has the option of doing something on its own. He feels the County can accomplish the same thing cheaper by using general obligation bonds.
Report from the Deputy County Administrator
Ms. West made comments based on a discussion with department heads related to the rollover policy. The discussion included looking at all of the sources of how departments have surplus, and making a determination and authorizing those funds. Ms. West said the end result was that department heads want things to remain the same way. She said department heads have received a form showing what their certified year-end funds are. They are filling out a form that indicates where the money came from, how did the surplus occur, and whether they intend to use it in the 2000 or 2001 budget. Following the receipt and compilation of this information, Administration will prepare a resolution for those who want to use the money in the current year’s budget and will be present this program committees in May and to the full Board in June. In May this Committee will have a document showing where all of the surplus is and at that time can ask appropriate questions.
Mr. Joseph clarified the discussion and stated that he nor Ms. West, or department heads are proposing a change to the current policy at this time; however, any member is able to propose a change at any time.
Mr. Proto said it was recently brought to the attention of the Board of Health that the Health Department in 2001 will be required to adapt part of their computer system to a new confidentiality requirement at the State level. He said this could cost the Department as much as $1 million. It was stated that the Mental Health Department and the Department of Social Services could be required to do this as well.
Ms. Davis said she does not feel property tax reductions are expenditures but a reduction in revenue. She feels that all fee exemptions come before the Committee during budget season.
Ms. West said in addition to tax exemptions there are also fee exemptions such as the Annual Solid Waste Fee and Public Health Fees.
Mr. Penniman said since various departments are establishing fee schedules and sliding fee scales, it would be a good idea to have someone overseeing all of them. He also suggested separating fees from taxes.
Mr. Proto asked if the purpose of this is to establish a policy to look at all exemptions or only proposals for new exemptions. Mr. Joseph said this proposal is not to renew any existing fee; it only applies to changes to anything that is already in place.
Following further discussion, it was decided there was to urgency to this resolution and it was subsequently withdrawn.
Capital Budget Scenarios
The Committee reviewed various updated capital budget scenarios. Projects discussed were ones that will be funded by property taxes, not fund balance money. Projects discussed included:
Radio Towers
Radios
Consolidated Dispatch
Public Works Facility
Public Safety Building
Biggs B Restoration
Old Library
The total ongoing debt totals $25,698,283. These new projects bring the ongoing debt plus new debt to $61,463,861. It was noted that there may be other projects that are not included on this list such as the Health Department computer upgrade project that is anticipated to cost close to $1 million.
Guidelines for Rural Libraries
Due to time constraints, this item was deferred to the next agenda.
Approval of Minutes
This item was postponed to the next meeting.
Adjournment
The meeting adjourned at 10:55 a.m.