May 20, 1999
9:15 a.m.
Scott B. Heyman Conference Room
Present: T. Joseph, S. Davis, P. Penniman, M. Koplinka-Loehr, (arrived at 9:26 a.m.), F. Proto, T. Todd
Excused: N. Schuler
Staff: R. Erb, K. West, D. Squires, W. Skinner, J. Luu
Mr. Joseph called the meeting to order at 9:18 a.m.
Changes to the Agenda
A resolution adopted by the Health Planning Council and Endorsed by the Health and Human Services Committee supporting the dedication of a significant portion of the tobacco settlement dollars to be spent on health related issues was added to the agenda for information purposes only.
Approval of Minutes
It was Moved by Mr. Todd, seconded by Ms. Davis and unanimously adopted by voice vote to approve the minutes of April 15, 1999, as submitted.
It was Moved by Mr. Proto, seconded by Ms. Davis and unanimously adopted by voice vote to approve the minutes of May 6, 1999, as submitted.
Report from the Chair
Mr. Joseph had no report
Report from the County Administrator
Mr. Erb had no report.
Mr. Koplinka-Loehr arrived.
Report from the Director of Finance
Mr. Squires distributed a contingency fund report. He stated at this time the Contingent Fund is in very good shape. He stated that there were questions raised about the recent transfer made by the Sheriff's Department and noted that the money was used for replacement pay, not overtime. Mr. Squires reviewed the summary report through April 1999 and noted it is too early in the year to point out trends and stated the State budget is worrisome because it is unknown at this time what it going to happen. Mr. Proto stated that the state has instituted no pay for legislators, but this still has not prompted them to adopt a budget. He stated that the Health Department is one quarter behind on reimbursements from the state. Mr. Squires stated that the State has also begun discounting payments for transportation paying 80 cents on every dollar until the budget is adopted.
Mr. Squires reviewed a comparison for expenditures by line item for major groups for April 1999 back through April 1998. Mr. Koplinka-Loehr asked if there are any major discrepancies. Mr. Squires stated that there aren't any at this time and noted that at this time last year a lot of money was spent in the Sheriff's Department.
Mr. Proto stated that this document is useful to identify new items in the budget from year-to-year noting that last year there was no budget line for Y2K expenditures.
Mr. Koplinka-Loehr asked why the contributions to debt for the solid waste center are so high. Mr. Squires explained that this is the result of him moving as much money as possible at the beginning of the year to accelerate interest for debt payments.
Mr. Squires reported that he plans on bringing a bond resolution to the Committee next month to authorize the issuance of bonds for various projects including the library, phase two of the courthouse construction, the buildings and grounds facility and TC3 space. He stated this will allow the County to borrow the money when the projects are ready to begin, and if it isn't done now it can cause a delay because the resolution has to pass the full board by a two-thirds vote and then it takes 30 days for the public to review. He stated that the urgency at this time is the library project, he anticipates the construction documents will be ready by October and the design money has already been spent. This project will go quickly because it is a renovation not new-building construction. The bonds will be issued to coincide with the beginning of construction and bonds for all of the projects do not need to purchased at the same time, they can be purchased prior to the beginning of each project.
Report from the Deputy County Administrator
Ms. West had no report.
Resolution
RESOLUTION ADOPTED BY THE HEALTH PLANNING COUNCIL AND ENDORSED BY THE HEALTH AND HUMAN SERVICES COMMITTEE SUPPORTING THE DEDICATION OF A SIGNIFICANT PORTION OF THE TOBACCO SETTLEMENT DOLLARS TO BE SPENT ON HEALTH RELATED ISSUES WAS ADDED TO THE AGENDA FOR INFORMATION PURPOSES ONLY.
WHEREAS, New York State is expected to receive approximately $25 billion over the next 25 years of which 22 percent is expected to be divided among 57 counties exclusive of New York City, and
WHEREAS, Tompkins County is expected to receive about $42 million over the 25 years in installments of $1.68 million per annum, and
WHEREAS, these funds come as a result of the tobacco industry settlement in response to smoking-related costs, and
WHEREAS, the purpose of the Health Planning Council continues to be as outlined in PL 93-641 and as advisory to the Health and Human Services Committee of the Board of Representatives to conduct comprehensive health planning and promote the development of health services and resources to improve the health of Tompkins County residents, and
WHEREAS, there has been an increase in smoking among youth, and lung cancer is now the second leading cause of cancer-related deaths among women in Tompkins County, and
WHEREAS, the Health Planning Council urges the County to use the unique opportunity of tobacco settlement funds to both improve the health of residents and reduce smoking-related medical expenses in the future, now therefore be it
RESOLVED, That Tompkins County dedicate a significant portion of the tobacco settlement dollars to be spent on heath related issues, including a component of smoking prevention and cessation.
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Resolution
RESOLUTION NO. - CREATION OF POSITIONS AND BUDGET ADJUSTMENT WORKFORCE DEVELOPMENT
It was Moved by Mr. Koplinka-Loehr, seconded by Mr. Proto and unanimously adopted by voice vote of members present.
WHEREAS, the County has reassumed the Employment and Training Program under the Job Training Partnership Act (JTPA), and
WHEREAS, two (2) permanent full-time positions (40 hours per week) of Job Developer are necessary to administer the program, and
WHEREAS, these positions shall be funded under Job Training Partnership Act formula funds and shall continue so long as such funds or similar funds exist, and
RESOLVED, on recommendation of the Economic and Workforce Development, and Budget & Quality Planning Committees, that two (2) permanent full-time (40 hour) positions of job Developer , labor grade K(11)-743 white collar, be created effective June 1, 1999, and
RESOLVED, further, That the following Budget Adjustment be made,
APPROPRIATION
CD 6290.51000 Salaries $ 29,677
CD 6290.58800 Fringes 7,423
CD 6290.54400 Program Exp. 152,900
Total $190,000
REVENUE
CD 6290.44790 Federal Aid Job Training $190,000
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EXPLANATION:
In recent years, this program has been administered by the Broome-Tioga-Tompkins Private Industry Council through a contract with TST BOCES. BOCES will discontinue operation of this program on June 30, 1999 and Tompkins County, under separate agreement, has been monitoring the program since January 1, 1999 and will assume full responsibility for the program on July 1, 1999.
BOCES has been operating JTPA with 1.5 FTE Job Developers and administrative staff. This resolution proposes an additional .5 FTE Job Developer to provide additional staff time for WIA transition activities, such as:
No local dollars are necessary for these positions or this program.
The JTPA program will be replaced by similar programs under the Workforce Investment Act (WIA) effective July 1, 2000. These positions will continue under Federal WIA funding.
Budget Scenarios
A spreadsheet was distributed showing the fund balances for 1996-1998 and the amounts added to and taken from the Fund Balance. Mr. Joseph stated that the budget saw positive impacts in 1996 and 1997 due to conservative planning in DSS in 1996 with the beginning of Welfare Reform when it wasn't known what state and federal reimbursements would be and the impact on the County budget. This resulted in a large surplus in 1997. He stated that County has consistently been conservative when predicting revenues for DSS, but a large surplus was not seen in 1998 and this is what the County can expect in the future. The hospital payoff also contributed a large amount in 1998, this was one-time money and will not happen again. The available surplus to reduce the 2000 tax levy is $3.7 million.
The following budget scenarios were discussed:
Option 1
Hold departments to target and do not spend any surplus resulting in a 9.3 percent property tax increase.
Option 2
Hold departments to target, do not spend any surplus and increase Engineering Services $230,909 resulting in a 10.6 percent property tax increase. Mr. Joseph explained that engineering is currently funded through fees mostly through capital projects resulting in using debt to fund regular staff/operating expenses.
Option 3
Hold departments to target, spend surplus at the same rate as 1998 and increase Engineering Services $230,909 resulting in a .9 percent property tax increase. This would result in $1.9 being left as surplus.
Option 4
Approve same level of over-target requests as last year, add in new capital debt, use surplus to pay for one-time expenditures resulting in a 22.3 percent property tax increase.
Option 5
Approve same level of over-target requests as last year, add in new capital debt, use surplus for to pay for one-time expenditures, and use the remaining surplus to reduce tax levy resulting in a 6.2 percent property tax increase.
Option 6
Approve same level of over-target requests as last year, add in new capital debt, use surplus to pay for one-time expenditures, use $1.7 million in Tobacco Settlement to reduce tax levy resulting in a 13.1 percent property tax increase.
Mr. Joseph stated that he does not believe the County will see the tobacco settlement money this year. He stated that it needs to be decided how this money is going to be treated is it going to be revenue or a specially marked amount of money. He stated he does not believe this money should be used for special projects.
Option 7
Three percent increase on payroll and fringes, lower one-time spending to three-quarters of last year resulting in a 18.3 percent property tax increase.
Option 8
Three percent increase on payroll and fringes, lower one-time spending to three-quarters of last year and use all remaining surplus to reduce the tax levy resulting in a 1.2 percent property tax increase.
Option 9
Three percent increase on payroll and fringes, lower one-time spending
to three-quarters of last year, use tobacco money and assume there is no
surplus available results in a 9 percent property tax increase.
Option 10
To get a zero percent property tax increase would mean to cut back on over-target requests and new capital spending, use the surplus and not give departmental payroll increases. The tobacco money is also not spent.
Mr. Squires stated that when the State restructured the pension system in 1998 they cut back on state-aid. He stated that this may be seen with the tobacco settlement as well.
Resolution
RESOLUTION NO. - ESTABLISHMENT OF GUIDELINES AND FISCAL TARGETS FOR ALL COUNTY BUDGETING UNITS FOR THE PREPARATION OF THE 2000 BUDGET
Mr. Koplinka-Loehr suggested conceptualizing to the public the increased debt and explain to them why there is such a high increase in the property tax this year and explain to them that this will not be seen next year because we won't have the capital expense. Mr. Joseph stated that this could be explained to departments as well to forego one-time expenditures this year and recover them next year.
Mr. Proto stated that it is possible the County will be asked for a capital contribution to the bus terminal next year. He stated that the federal money being requested by Senator Schumer does not total the amount needed for construction.
Mr. Joseph stated that it is possible to say no to or approve capital projects on a smaller scale, this would reduce the need to be so tight with regular budgets. Departments could also be asked to scale back by using targets that are one to two percent below last year or one to two percent above last year without over-target requests.
Ms. Davis stated she will support the cost of living increase for permanent employees in departments, with no other target increases. This does not apply to unfilled positions. She stated departments have asked for a percentage to figure their budgets on and this will allow them to get creative when preparing their budgets. Mr. Proto asked if this includes health benefit costs. Mr. Joseph stated that departments pay a percentage into the fringe pool so it does not matter what the health benefit costs are. Mr. Koplinka-Loehr stated he will support a three percent increase over what was budgeted in 1999.
Mr. Joseph stated that he does not support across-the-board increases, just as he does not support across -the-board cuts. He would prefer to set a zero target and let departments submit over-target-requests. He stated in the past the County has seen salaries going up three percent, but other ways to cut back. He stated a lot of options are needed for departments to make cuts so by lowering the target better proposals are seen. He stated he will support last year's spending minus one percent.
Mr. Penniman stated he supports a three percent increase in salaries, but nothing more. He stated the message departments should receive is one-time money is gone and so are over-target-requests. Mr. Joseph suggested the over-target requests should still be allowed, but department's should be told that they will receive a lot of scrutiny regardless if they are one-time or target increases.
Ms. West stated that there is $1.6 million available in roll-over money and requests for the use of this money totals $340,000. She stated that a number of one-time requests will be offset by rollover. She stated that departments may also be returning their roll-over in lieu of target increases.
It was Moved by Mr. Koplinka-Loehr, seconded by Mr. Penniman. Mr. Penniman asked if it is assumed that the target given at this time is safe to be funded. Mr. Joseph stated that there will be less questions asked, but this is not a guarantee. Mr. Todd asked if this will affect hours of positions. Mr. Joseph stated that it is possible. He stated that it is necessary to have departments prepare budgets with items that can be cut to avoid across-the-board cuts. A voice vote resulted as follows: Ayes - 4 (Representatives Joseph, Proto, Koplinka-Loehr, Penniman), Nays - 2 (Representatives Davis and Todd), Excused - 1 (Representative Schuler. MOTION CARRIED.
RESOLUTION NO. - ESTABLISHMENT OF GUIDELINES AND FISCAL TARGETS FOR ALL COUNTY BUDGETING UNITS FOR THE PREPARATION OF THE 2000 BUDGET
WHEREAS, the Tompkins County Fiscal Policy specifies that a fiscal target is the maximum amount of general revenue spending authority that a department head or program director may request without initiating an Over-Target Request, and changes in fiscal targets should be communicated to department heads and program directors as timely as possible in order for them to submit their budget requests by June 16, 1998, and
WHEREAS, the Board of Representatives wishes to establish targets for departments and agencies in preparing 2000 budget requests, now therefore be it
RESOLVED, on recommendation of the Budget and Quality Planning Committee, That fiscal targets for all budgeting units for preparation of the 2000 budget are hereby established as follows:
1. For not-for-profit agency grants, the amount approved in the 1999 adopted budget minus any over-target funding designated as one-time minus any funds reappropriated from previous years minus one (1) percent. For Towns and Villages applying for reimbursement for County-wide services, and for Human Service and Criminal Justice agencies, such amount shall be further adjusted pursuant to the Sales Tax Agreement between the County and City of Ithaca.
2. For all County departments, an amount equal to the general revenue portion of the 1999 adopted County budget, less any over-target funding designated as one-time less any funds reappropriated from previous years minus one (1) percent.
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RESOLUTION NO. - ESTABLISHING FRINGE BENEFITS PAYMENT RATE FOR 2000
It was Moved by Mr. Proto, seconded by Mr. Koplinka-Loehr and unanimously adopted by voice vote of members present.
RESOLVED, on recommendation of the Budget and Personnel Committee, That the fringe benefits payment rate for 2000, which amount shall be charged to all County departments, shall be 25 percent.
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Other Business
Mr. Joseph stated that he would like to report to the Board the Committee's recommendation on the use of the tobacco settlement money. Ms. Davis stated she would like to see the money used for health related costs included smoking cessation programs and programs on smoking awareness for teenagers.
Mr. Penniman stated that in the past there were Medicaid and other costs incurred by localities that impacted departments and he believes this needs more discussion after he sees what has happened in past years. It was the consensus of the Committee to defer this item to the first Committee meeting in June.
Adjournment
The meeting adjourned at 11:25 a.m.