Called to Order

 Mr. Penniman called the meeting to order at 11:30 a.m.

Changes to the Agenda

 Mr. Penniman said he would like the Committee to discuss whether a meeting should be scheduled with municipalities.  Time did not permit this discussion to take place.

Approval of Minutes of July 15 and August 26, 2003

 It was MOVED by Mr. Booth, seconded by Mrs. Schuler, and unanimously adopted by voice vote, to approve the minutes of July 15 and August 26, 2003 as submitted.  MINUTES APPROVED.

Chair's Report

 Mr. Penniman had no report.

Finance Director's Report

 Mr. Squires distributed a report by Moody's Investment Service, highlighting factors New York State counties are facing that are contributing to a challenging credit environment:

? High percent of fixed or mandated costs (averaging 75%) offsetting county ability to absorb growing expenditure;
? New York counties are required to fund 25% of most Medicaid services -- by far the largest share in the nation.  Costs have been growing 15% on average annually for most counties as a result of both expanded eligibility and prescription drug cost escalation;
? New York county workforces are largely unionized with many public safety bargaining units enjoying binding arbitration, thereby limiting county flexibility on this growing expenditure;
? Health benefit costs continue their rapid expansion - averaging 12-15% annually - tied largely to prescription drug costs;
? Pension contributions for 2003 and 2004 will increase sharply as a result of weak stock market impact on the New York State retirement systems;
? Cash flows have been impacted by a slowdown in State aid reimbursements and reductions in reserve positions;
? Offsetting these is significant revenue-raising flexibility through property tax raising margin that is often limited by political willingness.

 Mr. Squires referred to the comparative table included in the document and noted that Tompkins County has a negative outlook for its bond rating of Aa2.  This is based on the County's rapidly deteriorating resources.   He said the County's Fund Balance has been declining over the last two years and this rating is based on the assumption that it will continue to decline.

 Another issue raised in the Moody report relates to tobacco securitization.  The report states the cashflows of counties that have securitized will be negatively impacted by a trapping event triggered by the previously noted downgrade of RJ Reynolds Tobacco Holdings.  This even will require a buildup of reserves to equal 25% of outstanding principal, which will require that future residual payments be directed to a debt service reserve and not county coffers.

 Mr. Squires reported this past week he completed an analysis of retroactive payments for the Sheriff's Department contract settlement.   That analysis shows an average salary increase per deputy will be 16 percent over three years.    He said the total amount of retroactive payments is $377,000.  Mrs. Smithers will be preparing a resolution to appropriate funds to cover this.

 Mr. Squires reported on the County's fragile cash flow situation, and stated at the end of August the situation was satisfactory.   The Highway operations are in the position of totally beholding to the General Fund.  This is because of the County's General Fund contribution that has been made to the Highway Fund because CHIPS reimbursement has not been received.  He stated until money is received from the State, he will have to borrow from the General Fund to in order to make payroll.    Mr. Squires reported on sales tax receipts and stated in September the County received $2,161,000, compared to $1,914,000 last year.

  Two areas of concern in the budget are the DSS mandates (over budget by $500,000) and the Assigned Counsel Program (shortfall of $150,000).  He noted there are several outstanding bills for the Assigned Counsel Program that are probably going to be very large.

County Administrator's Report

 Mr. Whicher distributed three documents:  a local share comparison for mandates, a list of full-time equivalent reductions showing what departmental reductions took place prior to budget submittal (17.88 positions), and a chart demonstrating where increases in assessment for 2003 resulted from.

 Mr. Whicher said the percentage change for the County is 5.13%, of which one-third was due to new construction.  The net Equalization changes of $263,346,118, which is 70 percent of the total increase, was attributable to a change in the market value of the property not directly related to physical change.

 Mr. Joseph commented on the graph showing the local share comparison of mandates and noted the largest amount of mandates is in the health and human services area.  He said this is the area where the County has the greatest expense and the least amount of choice in spending.

 Mr. Booth commented on the document relating to full-time equivalent reduction and requested he be provided with this information in the same format for the last two years.

Deputy County Administrator's Report

 Mrs. Smithers said when the Legislature met to go over the budget documents on September 2nd Mr. Booth requested for certain totals; she said those are now completed.  She has also been working to import the narrative regarding the five percent scenario and asked if it would be acceptable to wait until program committees conclude their meetings to receive information rather than in the middle of the process.  The Committee agreed to wait to receive this information.
 

Health Insurance

 Ms. Yoder said a question was raised about the origin of the County permitting employees who were laid off and on a preferred list to continue health insurance at the employee rate.  She said she researched that and said in the 1960's the County participated in the Statewide Health Insurance Plan.  At that time insurance was provided by a number of different vendors and a policy manual was provided by the State for administering it.  In 1984, the County transitioned to a Regionwide health insurance plan through Blue Cross and Blue Shield and had an agreement at that time with the unions that the benefits would be the same as the Statewide Plan, as well as all of the rules for administering that plan.  Under that Statewide Plan, there is a section on waiver of premiums which specifies that employees on an authorized leave without pay had to pay the whole premium, but that employees on a preferred Civil Service list only had to pay the employee-share of premiums for up to one year.

Retirement Benefits

 Ms. Yoder provided the Committee with information on the history of Tompkins County's participation in the New York State Retirement System.

 Tier 1 - For employees hired before July 1, 1973.  This tier has the richest benefits; 36 employees belong to this tier.  Employees have never had to contribute to this tier.
 Tier 2 - For employees hired between July 1, 1973 through July 26, 1976.  Employees have never had to contribute to this tier; 35 employees belong to this tier.
 Tier 3 - For employees hired between July 27, 1976 through August 31, 1983; 79 employees belong to this tier.
 Tier 4 - For employees hired after September 1, 1983; 594 employees belong to this tier.

 Tier 3 and Tier 4 members pay 3% of gross wages from their date of membership.  Under Article 19 of the Retirement and Social Security Law, after October 1, 12000 contributions stop when a member accrues either ten years of service credit or ten years from their first date of membership.

 Tompkins County has always paid a percentage of payroll.  There was a large payment in 1996 when a special retirement plan was implemented for Sheriff's Department employee.  Since 1997, the payment has been about .3% of payroll, due primarily to high stock market returns.  In 2003, the County's payment was 4.5% of payroll.  For 2004, it is anticipated to be 12%.

 The New York State Retirement System is a defined benefit plan.  Benefits are determined by membership tier, final average salary, age at retirement and total years of credited service.

 It was MOVED by Mr. Koplinka-Loehr, seconded by Mrs. Schuler, and unanimously adopted by voice vote, to approve the following resolution and submit to the full Legislature:

RESOLUTION NO.           - APPROPRIATION FROM CONTINGENT FUND –   PROFESSIONAL SERVICES

 WHEREAS, Resolution No. 249, dated October 16, 2001, authorized a contract with Fisher Associates for design of Ellis Hollow Road Reconstruction, and
  WHEREAS, in adopting the Capital Program for 2003, the Tompkins County Legislature postponed the project until 2006, and
 WHEREAS, Engineering services in the amount of $26,328.99 had already been expended with Fisher Associates, now therefore be it
  RESOLVED, on recommendation of the Facilities and Infrastructure and Budget and Capital Committees, That the Director of Finance be authorized to make the following budget appropriations:
  FROM:  A1990.54400 Contingent Fund $26,328.99
  TO:  D5110.54442 Professional Services $26,328.99
SEQR ACTION:  TYPE II-20
EXPLANATORY NOTE:
 Fisher Associates completed this work in 2002.  The work included survey, attending public meetings and preparing a design criteria report.
However, reconstruction of Ellis Hollow Road was postponed in 2002 as a budget cutting measure.  When the budget was changed, all funds, including these needed to pay for ongoing planning work, were moved to 2006.
 This resolution provides reimbursement to the Professional Services account for payment made to Fisher Associations for the above-mentioned work.

Mr. Penniman said he requested this information because he has concern that there seems to be a gap between public employees retirement benefits and private employee retirement benefits.  Mr. Penniman questioned how this could be changed.  Mr. Whicher said it would take action by the State Legislature; however, he believes current members of the retirement system would not be affected and that it would only apply to anyone hired after an established date.  It was stated that this would be accomplished by creating a new tier.   It was also noted this type of action is highly unlikely to happen.

Mandate Classification
 

 Mrs. Smithers stated the County adheres to county law, municipal law, and the County Charter.  She distributed a list of services the County is required to provide according to County Law and a list of mandates that were used for the 2003 tax bill.  Mrs. Smithers also presented the Committee with suggested programs to be included in that list of State mandates.  She said there are some things currently not included on the mandate list that she strongly feels should be.

 Mr. Whicher reported he recently learned of new information that the County is required to provide environmental health services.

 It was noted that the purpose of this discussion is to identify how mandates will be listed on the County's tax bill and that is a separate issue than whether the County gives someone a fiscal target internally during the budget process.

 Debt Service

 Legislators Kiefer and Winch did not feel debt service should be broken down into what portions are for mandated services as they believe the County is responsible to pay debt service regardless of the reason it was incurred.  Mr. Joseph disagreed and said he feels it should be broken down because the County did have some control over some of the projects it is responsible for paying debt service for.  Mr. Squires will work on producing an estimate of how much debt service is associated with mandated programs and will bring the information back to the Committee.

 Assessment

 It was MOVED by Mr. Booth, seconded by Mr. Koplinka-Loehr, and unanimously adopted by voice vote, to include 2/3 of Assessment as mandated for purposes of the County Tax Bill.

 Criminal Prosecution

 It was MOVED by Mr. Koplinka-Loehr, seconded by Mr. Booth, and unanimously adopted by voice vote, to list Criminal Prosecution as a mandate for purposes of the County Tax Bill.

 Emergency Response

 Mrs. Smithers said there is a section of law that includes communications in municipal law.  She will look into this further and  will come back to the Committee with more information.

 Education - Other Community Colleges.

 This item is already included; it was noted that if Tompkins County did not have a community college, the amount would be much higher than it is.

 Finance:  Treasury, Accounting, and Purchasing

 It was MOVED by Mr. Koplinka-Loehr, seconded by Mrs. Schuler, to include these items as mandates for purposes of the County Tax Bill.  Mr. Booth said he opposes inclusion of Purchasing.  A voice vote resulted as follows:  Ayes - 4, Noes - 1 (Booth).  MOTION CARRIED.
 

 More information was requested.

 Legislature

 It was agreed this would not be included as a mandate.

 Clerk of the Legislature

 It was MOVED by Mr. Booth, seconded by Mr. Koplinka-Loehr, and unanimously adopted by voice vote, to include a portion of the Clerk of the Legislature as mandated for purposes of the County Tax Bill.  More information was requested in order to determine the portion that should be included.

 Mental Health - Psychiatric Expense

 It was agreed this item would not be included as a mandate for purposes of the County Tax Bill.

 Personnel

 It was felt that a portion of this should be included as a mandate for purposes of the County Tax Bill.  More information was requested.

 Public Health - Planning and Coordination, Physically Handicapped Children Treatment, and Medical Examiner and Vital Records

 It was MOVED by Mr. Koplinka-Loehr, seconded by Mr. Booth, to include a percentage of these items as a mandate for purposes of the County Tax Bill following the receipt of further information on what percentage should be included.

 Insurance Reserve

 A question was raised as to whether the County is mandated to have insurance.   Mr. Squires said the County does not have to have a reserve; however, by doing some mandated services, there are some areas where the County has exposure.   A voice vote on included this item as a mandate for purposes of the County Tax Bill resulted as follows:  Ayes - 4, Noes - 1 (Penniman).  MOTION CARRIED.

 Sheriff - Uniform Division

 There was discussion about some positions in this Division being mandated.  More information and consultation between the Sheriff and County Attorney was requested.  It was MOVED by Mr. Koplinka-Loehr, seconded by Mr. Booth, and unanimously adopted by voice vote, to include a portion of the Uniform Division as a mandate for purposes of the County Tax Bill following the receipt of additional information.

 Facilities - Utilities, Taxes, Insurance and Rent

 It was MOVED by Mrs. Schuler, seconded by Mr. Koplinka-Loher, and unanimously adopted by voice vote, to include a portion of Facilities - Utilities, Taxes, Insurance, and Rent, once more specific dollar amounts can be determined.  Mr. Joseph also suggested including a percentage of operating budgets of programs that are mandated.

 Planning

 Mr. Penniman proposed a portion of Planning is mandated; however, no action was taken.

 It was suggested that departments review the document as revised.

Adjournment

 The meeting adjourned at 1:30 p.m.
 

Respectfully submitted by Michelle Pottorff, Tompkins County Legislature