Budget and Capital
Committee
June 12, 2006
3 p.m.
Scott Heyman Conference Room
Present: M. Koplinka-Loehr, R. Booth, M. Sigler, P. Mackesey (arrived at 3:08 p.m.)
Excused: N. Shinagawa
Legislators: T. Joseph
Staff: N. Jayne, J. Grogan, P. Younger, S. Martel-Moore, County Administration; P. Meskill, Sheriff, B. Grinnell-Crosby, Health Department; E. Marx, Departments of Planning and Public Works; M. Pottorff, Legislature Office; D. Squires, Finance
Guests: C. Haynes, R. Ross, and S. Dewey, Tompkins Cortland Community College
Called to Order
Mr. Koplinka-Loehr called the meeting to order at 3:04 p.m.
Changes to the Agenda
The following resolutions were added to the agenda:
Resolution No. - Adopting Tompkins County 20-Year Plan
Resolution No. - A Resolution Authorizing the Issuance of $8,060,000 Serial Bonds of the County of Tompkins, New York, to Pay a Portion of the Cost of Road and Highway System Reconstruction and Improvements at Various Locations Throughout the County (added later in the meeting)
Approval of Minutes of May 22 and June 6, 2006
It was MOVED by Mr. Booth, seconded by Mr. Sigler, and unanimously adopted by voice vote by members present, to approve the minutes of the May 22 and June 6, 2006 meetings as submitted. MINUTES APPROVED.
Comments from the Public
There were no members of the public in attendance.
Chair's Report
Mr. Koplinka-Loehr welcomed Ms. Paula Younger and Ms. Shawn Martel-Moore, Deputy County Administrators.
Finance Director's Report
Mr. Squires distributed a Contingent Fund report dated June 9, 2006 and also one for the period ending December 31, 2005. Year-to-date appropriations total $191,125, with $638,875 remaining in the General Contingent Fund. To date, $173,990 has been spent on Jail boardouts, leaving approximately $150,000 left in the Contingent Fund that has an allocation reserved for specific purposes.
Mr. Squires also distributed an "Analysis of a Cap of Sales Taxes on Gas" and highlighted the following information: according to a December, 2005 NYSERDA report, the estimated annual gasoline consumptions for 2004 was 36,000,000; the estimated share of fuel oil, kerosene, etc that was taxable was 4,969,000 gallons; the estimated taxable gallons affected by the cap is 41,969,000. The annualized revenue loss for cap at $2.00 if the price were $3.00 per gallon would be $1,259,070; the County's share would be $679,898; the City, towns and village's chare would be $579,172.
Ms. Mackesey arrived at 3:08 p.m.
Mr. Squires reported on TCAT funding and said earlier in the year the Legislature advanced TCAT $2.1 million funds against anticipated STOA funds. To date, the County has advanced $1,565,000 and has not received the $700,000 in STOA funds that were expected in May. He said this has created a hardship for TCAT and it appears they will need more money before the funding arrives. The total amount advanced to TCAT would then amount to the equivalent of three STOA payments ($2.1 million).
Mr. Squires said at a previous meeting a possible retirement incentive was mentioned; however, it now appears that will not be moving forward as it has stalled in the State Legislature.
District Attorney
RESOLUTION NO. –
APPROPRIATION FROM CONTINGENT FUND FOR TERMINAL
PAY – DISTRICT ATTORNEY
It was MOVED by Ms. Mackesey, seconded by Mr. Booth, and unanimously adopted by voice vote by members present, to approve the following resolution and submit to the full Legislature.
WHEREAS, the District Attorney had five employees; two Assistant District Attorneys, terminate employment effective December 31, 2005, one Assistant District Attorney terminate employment effective January 13, 2006, and one Deputy District Attorney, terminate employment effective December 31, 2005, and one Deputy District Attorney, terminate employment effective April 14, 2006, and
WHEREAS, the Fiscal Policy of Tompkins County allows for terminal pay replacement from the Contingent Fund, now therefore be it
RESOLVED, on recommendation of the Public Safety and the Budget and Capital Committees, That the Director of Finance is hereby authorized and directed to make the following budget appropriations:
FROM: A1990.54440 Contingent Fund $27,090.22
TO: 1165.51000228 Salary, Assistant District Attorney $11,943.75
1165.51000277 Salary, Deputy District Attorney $ 7,545.62
1165.58800 Fringes $ 7,600.85
TOTAL $27,090.22
SEQR ACTION: TYPE II-20
* * * * * * * * * *
Sheriff - Rollover
Mr. Koplinka-Loehr said there were questions raised at the Public Safety Committee with regard to the origin of the Sheriff's Rollover. Mr. Joseph commented that $60,000 of the Sheriff's Rollover funds are the result of renovation work being budgeted but not performed.
Ms. Jayne noted that an additional $674 was identified on the Jail side and the rollover figure for that program should be adjusted.
Mr. Booth commented that he did not find the Pentamation information included in the agenda packet as useful as he would like and asked that staff look for a way to articulate better to the Legislature about where the funds came from.
It was MOVED by Mr. Booth, seconded by Ms. Mackesey, and unanimously adopted by voice vote by members present, to approve $37,896 in Sheriff's Office rollover funds for use in 2006 .
Ms. Mackesey commented that the plans presented for usage of these funds seem basic to the function of the department. Mr. Joseph said each time Rollover is discussed the Legislature often wants to save money and take Rollover back; however, he noted Ms. Mackesey's comment and said these are items that would need to be purchased anyways.
It was MOVED by Mr. Booth, seconded by Ms. Mackesey, and unanimously adopted by voice vote by members present, to approve $143,855, in Jail rollover funds for use in 2006. MOTION CARRIED.
Tompkins Cortland Community
College
Mr. Haynes presented the Committee with the an overview of the TC3 2006-2007 Operating Budget. Mr. Haynes spoke of State Aid and said there was an increase of $175 in the base aid rate and although this is short of what was hoped for getting the State to its 1/3 share, he feels this is a good increase. The budget reflects a tuition increase of $100/year and $50/semester increase which would bring the full-time tuition for a year to $3,200. He said the full-time equivalent of students is an increase of 4.8 percent, this increase is the result of the additional student-housing that was brought online. President Haynes was thanked for all the work he and his staff do for the College. A copy of the entire presentation can be found at the end of these minutes.
RESOLUTION NO. - ADOPTION OF 2006-2007 OPERATING BUDGET - TOMPKINS CORTLAND COMMUNITY COLLEGE
It was MOVED by Ms. Mackesey, seconded by Mr. Booth, and unanimously adopted by voice vote by members present, to approve the operating budget as presented and submit to the full Legislature.
WHEREAS, a proposed operating budget for Tompkins Cortland Community College for the fiscal year September 1, 2006 through August 31, 2007, has been presented to the Legislature of the County of Tompkins pursuant to County Law and Section 6306 of the Education Law, and
WHEREAS, the Legislature has conducted a public hearing on said proposed budget on the 20th of June 2006, now therefore be it
RESOLVED, on recommendation of the Budget and Capital Committee, That said proposed 2006-2007 operating budget in the amount of $27,749,250 of which the sponsoring community contribution is in the amount of $3,746,925 be and the same hereby is approved,
RESOLVED, further, That the Legislature of Tompkins County includes in the 2007 Tompkins County Budget an amount to be determined pursuant to the approved plan for said College in effect as of September 1, 2006, and that the amount when determined be raised by taxation in the County of Tompkins in the fiscal year 2007,
RESOLVED, further, That this resolution shall become effective upon the adoption of a concurrent resolution by the Cortland County Legislature.
SEQR ACTION: TYPE II-20
* * * * * * * * * *
Department of Probation and
Community Justice
It was MOVED by Mr. Booth, seconded by Ms. Mackesey, and unanimously adopted by voice vote by members present, to approve the rollover funds requested in the amount of $3,000 for use in 2006.
Health Department
RESOLUTION NO. – AUTHORIZATION TO REDUCE HOURS –
ENVIRONMENTAL HEALTH AND WIC PROGRAM – HEALTH DEPARTMENT
It was MOVED by Mr. Booth, seconded by Ms. Mackesey, and unanimously adopted by voice vote by members present, to approve the following resolution and submit to the full Legislature:
WHEREAS, Resolution No. 50 of 2003 provided for an increase in hours for both a Public Health Sanitarian and WIC Program Nutrition Aide (since reclassed to Nutrition Educator), now therefore be it
RESOLVED, on recommendation of the Health and Human Services and the Budget and Capital Committees, That the hours of the following positions be changed as follows effective July 2, 2006:
1.0 Public Health Sanitarian (14/595), labor grade N, decrease the position and approved hours from 37.5 to 35.0 per week, and
1.0 Nutrition Educator (8/725), labor grade H, decrease the position and approved hours from 37.5 to 35.0 per week.
SEQR ACTION: TYPE II-20
* * * * * * * * * *
Capital Program
RESOLUTION NO.
- ADOPTING TOMPKINS COUNTY CAPITAL PLAN
MOVED by Mr. Booth, seconded by Mr. Sigler.
Ms. Mackesey asked if this Committee took action on increasing the tax levy by one percent each year for capital projects. Mr. Koplinka-Loehr said this was the figure contained in one of the assumptions that was presented in the draft plan presented to this Committee and although it was discussed it was not voted upon. Ms. Mackesey said she would like to be sure that the items being reported out of this Committee are correct and concise so that inaccurate statements are not made. Mr. Marx said the Committee was presented with those parameters that contained the assumption referred to by Ms. Mackesey. While he does not recall a vote being taken, he said there was no objection expressed at that time.
Mr. Marx addressed four items that were mentioned at the Legislature meeting:
1. Consider how much the County invests versus annual depreciation of assets. Mr. Marx said this is discussed in a general way under issues for further discussion; however, a statement can be added that clarifies this point that it would be considered.
2. Impact of facilities and other structures on the overall economic and social activities of community. This would be added as another issue for further evaluation in the future.
3. Ms. Kiefer made a request to see a scenario showing the Public Safety Building first and the Health Department second in the order. Mr. Marx will include a chart showing this option in the Appendix.
4. A list of all assumptions will be included in the Appendix.
Mr. Marx said Ms. Kiefer also wanted to include reference to the cost of not building a new jail in terms of boardout costs plus related costs to the boardouts. Mr. Marx said reference will be made to these costs; however, they are unable to quantify those costs or predict with certainty what they will be in the future.
Mr. Joseph spoke of including a different scenario in the appendix and stated it is important that it not be included as just an appendix but that it be structured in a way that someone could make a motion to make it the Plan and not part of the Appendix.
Ms. Mackesey said the vote on the priorities at the Facilities and Infrastructure Committee was 3-2. She said everything possible that can be done to provide information to Legislature to satisfy concerns is in the County's best interest. She feels the concerns that have been raised have led to solid requests and everything possible should be done to accommodate them.
A voice vote on the following resolution and submitting to the full Legislature resulted as follows: Ayes - 4, Noes - 0, Excused - 1 (Shinagawa). MOTION CARRIED.
WHEREAS, Tompkins County is responsible for maintaining critical elements of community infrastructure including the county highway system, the emergency communications network, and facilities to support a wide range of governmental activities including public safety, social and human services, public health, public works and general government, and
WHEREAS, the County owns capital assets including land, buildings, equipment and infrastructure valued at approximately $125 million, and
WHEREAS, in 2004 and 2005 the Space, Needs and Location Committee of the Legislature identified the need to construct new facilities to house the County Health Department and meet the needs of departments located in the downtown complex, and
WHEREAS, the Public Safety Committee has considered the need for renovation and expansion of the Public Safety Building, and
WHEREAS, Tompkins County has a current debt of approximately $44 million and annual debt service of over $4 million, and
WHEREAS, commitments to capital projects can involve debt service obligations of up to 20 years, and
WHEREAS, maintaining current facilities and infrastructure and meeting the future needs of county government and the Tompkins County community requires a plan for capital investment that is consistent with meeting overall County government budgetary goals, and
WHEREAS, such a plan should allow the county to meet its capital facilities and infrastructure needs with an acceptable fiscal impact, now therefore be it
RESOLVED, on recommendation of the Budget and Capital Committee, That the Tompkins County Legislature adopts the Tompkins County 20-Year Capital Plan to be used as a guide in making decisions regarding the community infrastructure needed to support the operations and responsibilities of Tompkins County government with a manageable level of public investment,
RESOLVED, further, That the plan shall be reviewed periodically, updated as necessary, and may be amended at any time by majority vote of the Legislature.
SEQR ACTION: TYPE II-21, II-27
* * * * * * * * * *
Addition of Resolution to
the Agenda
It was MOVED by Ms. Mackesey, seconded by Mr. Booth, and unanimously adopted by voice vote by members present, to approve adding the resolution entitled a Resolution Authorizing the issuance of $8,060,000 Serial Bonds of the County of Tompkins, New York, to Pay a Portion of the Cost of Road and Highway System Reconstruction and Improvements at Various Locations Throughout the County.
RESOLUTION NO. - AUTHORIZING THE ISSUANCE OF $8,060,000 SERIAL BONDS OF THE COUNTY OF TOMPKINS, NEW YORK, TO PAY A PORTION OF THE COST OF ROAD AND HIGHWAY SYSTEM RECONSTRUCTION AND IMPROVEMENTS AT VARIOUS LOCATIONS THROUGHOUT THE COUNTY
It was MOVED by Ms. Mackesey, seconded by Mr. Booth, and unanimously adopted by voice vote by members present, to approve the following resolution and submit to the full Legislature:
WHEREAS, Tompkins County (the “County”) is a local agency pursuant to the New York State Environmental Quality Review Act (“SEQRA”), ECL Section 8-0101, et. seq., and implementing regulation, 6 NYCRR Part 617 (the “Regulations”), and
WHEREAS, it is now desired to authorize the financing
of a capital project consisting of repaving certain existing roads and highways
at various locations throughout the County not involving the addition of new
travel lanes (the “Project”), now therefore be it
RESOLVED, on recommendation of the Facilities and Infrastructure and the Budget and Capital Committees, by the County Legislature of the County of Tompkins, New York as follows:
Section 1. The County, having reviewed the impact of undertaking the Project, hereby determines that such action constitutes a “Type II Action” under the NYCRR § 617.5 (c) (4) of the Regulation and is not subject to review under SEQRA.
Section 2. For the class of objects or purposes of paying a portion of the cost of repaving certain existing roads and highways at various locations throughout the County not involving the addition of new travel lanes, including preliminary costs and costs incidental thereto and the financing thereof, there are hereby authorized to be issued $8,060,000 serial bonds of the County of Tompkins, New York, pursuant to the provision of the Local Finance Law.
Section 3. It is hereby determined that the maximum estimated cost of the aforesaid class of objects of purposes is $15,345,000 and the plan for the financing thereof is by the issuance of the $8,060,000 serial bonds hereby authorized to be issued pursuant to this bond resolution and the levy and collection of taxes on all the taxable real property in the County to pay the principal of said bonds and the interest thereon as the same shall become due and payable, and the application of $6,515,000 of Federal and State aid, including funds from the State’s Consolidated Local Street and Highway Improvement Program expected to be received for this purpose. It is hereby further determined that if the amount of Federal and State aid actually received is greater than $6,515,000, the amount of bonds ultimately issued may be reduced by the receipt of such excess aid.
Section 4. It is hereby determined that the period of probable usefulness of the aforesaid class of objects or purposes is ten years under subdivision 20(b) of paragraph a. of Section 11.00 of the Local Finance Law. It is hereby further determined that the maximum maturity of the serial bonds herein authorized will exceed five years.
Section 5. Subject to the provision of the Local Finance Law, the power to authorize the issuance of and to sell bond anticipation notes in anticipation of the issuance and sale of the serial bonds herein authorized including renewals of such notes, is hereby delegated to the County Director of Finance, the chief fiscal officer. Such notes shall be of such terms, form and contents, and shall be sold in such manner, as may be prescribed by said County Director of Finance, consistent with the provisions of the Local Finance Law.
Section 6. The faith and credit of said County of Tompkins, New York, and hereby irrevocably pledged for the payment of the principal of and interest of such bonds as the same respectively become due and payable. An annual appropriation shall be made in each year sufficient to pay the principal of and interest of such bonds becoming due and payable in such year. There shall annually be levied on all the taxable real property of said County a tax sufficient to pay the principal of and interest of such bonds as the same become due and payable.
Section 7. Such bonds shall be in fully registered form and shall be signed in the name of the County of Tompkins, New York, by the manual or facsimile signature of the County Director of Finance and a facsimile of its corporate seal shall be imprinted or impressed thereon and may be attested by the manual or facsimile signature of the County Clerk.
Section 8. The powers and duties of advertising such bonds for sale, conducting the sale and awarding the bonds, are hereby delegated to the County Director of Finance, who shall advertise such bonds for sale, conduct the sale, and award the bonds in such manner as her or she shall deem best for the interests of the County; provided, however, that in the exercise of these delegated powers, he or she shall comply fully with the provision of the Local Finance Law and any order of rule of the State Comptroller applicable to the sale of municipal bonds. The receipt of the County Director of Finance shall be a full acquittance to the purchaser of such bonds, who shall not be obliged to see to the application of the purchase money.
Section 9. All other matters, except as provided herein relating to such bonds including determining whether to issue such bonds having substantially level or declining annual debt service and all matters related thereto, prescribing whether manual or facsimile signatures shall appear on said bonds, prescribing the method for the recording of ownership of said bonds, appointing the fiscal agent or agents for said bonds, providing for the printing and delivery of said bonds (and if said bonds are to be executed in the name of the County by the facsimile signature of the County Director of Finance, providing for the manual countersignature of a fiscal agent or of a designated official of the County), the date, denominations, maturities and interest payment dates, place or places of payment, and also including the consolidation with other issues, shall be determined by the County Director of Finance. It is hereby determined that it is to the financial advantage of the County not to impose and collect from registered owners of such serial bonds any charges for mailing, shipping and insuring bonds transferred or exchanged by the fiscal agent, and, accordingly, pursuant to paragraph c of Section 70.00 of the Local Finance Law, no such charges shall be so collected by the fiscal agent. Such bonds shall contain substantially the recital of validity clause provided for in Section 52.00 of the Local Finance Law and shall otherwise be in such form and contain such recitals in addition to those required by Section 52.00 of the Local Finance Law, as the County Director of Finance shall determine.
Section 10. The temporary use of available funds of the County, not immediately required for the purpose or purposes of which the same were borrowed, raised or otherwise created, is hereby authorized pursuant to Section 165.10 of the Local Finance Law, for the capital purposes described in Section 2 of this resolution. The reasonably expected source of funds to be used to initially pay for the expenditures authorized by Section 3 of this resolution shall be from the county’s General Fund. It is intended that the County shall then reimburse expenditures from the General Fund with the proceeds of the bonds and bond anticipation notes authorized by this resolution and that the interest payable on the bonds and any bond anticipation notes issued in anticipation of such bonds shall be excludable from gross income for federal income tax purposes. This resolution is intended to constitute the declaration of the County’s “official intent” within the meaning of Treasury Regulation Section 1.150-2 to reimburse the expenditures authorized by this resolution with the proceeds of the bonds and bond anticipation notes authorized herein. Other than as specified in this resolution, no monies are reasonably expected to be, received, allocated on a long-term basis, or otherwise set aside with respect to the permanent funding of the objects or purposes described herein.
Section 11. The validity of such bonds and bond anticipation notes may be contested only if:
1) Such obligations are authorized for an object or purpose for which said County is not authorized to expend money, or
2) The provision of law which should be complied with at the date of publication of this resolution are not substantially complied with, and an action, suit or proceeding contesting such validity is commended within twenty days after the date of such publication, or
3) Such obligations are authorized in violation of the provisions of the Constitution.
Section 12. This resolution, which takes effect immediately, shall be published in full in The Ithaca Journal, the official newspaper of said County, together with a notice of the Clerk of the County Legislature in substantially the form provided in Section 81.00 of the Local Finance Law.
SEQR ACTION: TYPE II-20
* * * * * * * * * * *
Fiscal Policy Review
The Committee reviewed the current Fiscal Policy. Although some sections were felt to be ambiguous, no recommendation for change was made.
Mr. Squires informed the Committee that the Government Operations Committee approved a resolution that will be coming before the full Legislature that appoints Trespasz and Marquardt, LLP of Syracuse, New York as Tompkins County's new Bond Counsel.
2007 Budget Scenarios
Ms. Jayne presented the Committee with a document entitled "Ideas for Accomplishing the 2007 Tax Levy Goal". It was noted that mandate cost projections are expected to be $550,000 less than anticipated. Ms. Jayne said the purpose in reviewing the information and scenarios presented is to begin discussions relating to establishing fiscal targets for departments. Mr. Sigler stated that all of the scenarios appear to be across-the-board cuts. Mr. Joseph said this is a starting point: after hearing the impact of each of the proposed reductions, the Legislature will make a decision whether or not to approve over target requests. He said although the process often starts with across-the-board cuts, the end result is not across-the-board. Mr. Joseph said it is very difficult for the Legislature to examine all programs and this is a way for the bigger departments to do that for the Legislature. Ms. Mackesey said she feels departments are in a much better position to evaluate and present their budget to the Legislature with options and choices. The Committee reviewed the scenarios and requested Ms. Jayne rewrite Section III. This item will be presented to the Committee again at the next meeting.
Adjournment
The meeting adjourned at 5:05 p.m.
Respectfully submitted by
Michelle Pottorff, TC Legislature Office