Budget
and Finance Committee
March 16, 2006 at 7:30 am
DRAFT MINUTES
Members: Ron VanDee, Chairman; John Troy, Vice Chairman; Sean Clark, John Daniels, Danny Ross, Newell Willcox
Others Present: Marilyn E. Brown, Chairman of the Legislature; Scott Schrader, County Administrator; Kay Breed, Legislator District 13; Carol Tytler, Legislator District 3; Susan Morgan, Clerk of the Legislator; Richard Van Donsel, County Attorney; Katrina Spicer, Secretary to Administration; Dennis Whitt, County Auditor; Donald Ferris, County Treasurer; Carolyn Kennedy, Deputy County Treasurer; Lee Price, Sheriff’s Department; Linda Hartsock, Cortland County BDC/IDA; Eric Mulvihill, WXHC; and Jeremy Boylan, Cortland Standard; John Carroll, Matthew Penello
Absent: Dan Tagliente (excused)
Mr. Van Dee called the meeting to order at 7:32 a.m.
Mr. Troy moved adoption of the
minutes of the February 16, 2006 and February 23, 2006 meetings; seconded by Mr.
Willcox. All members present voted in favor; none opposed; minutes approved as
printed.
RESOLUTIONS:
Budget and Finance Committee Resolutions:
1.
Bond Resolution- TC3 Campus Master Plan Recreational Facility Improvement
– Mr. Troy moved adoption; seconded by
Mr. Clark. All
members present voted in favor, none opposed; resolution approved.
2. Support of Preserving Cortland County’s Role in the Future of Off Track Betting - Mr. Troy moved adoption; seconded by Mr. Clark. Mr. Willcox stated that he is against government betting and would vote against this resolution. Mr. Van Dee discussed having Mr. Tom O’Donnell address the committee. Mr. Van Dee, Mr. Troy, Mr. Clark, Mr. Daniels and Mr. Ross voted in favor; Mr. Willcox was opposed; resolution approved.
3.
Transfer Property- Tax Foreclosed by
Cortland County December 31, 2003 - Mr. Troy moved adoption;
seconded by Mr. Clark. Mr. Van
Donsel explained that this situation is a unique one.
He further discussed and explained the situation with the Veterans
Affairs Loan Office. Mr. Van Donsel stated that this is being done correctly to
get it back on track. All
members present voted in favor, none opposed; resolution approved.
Mr. Willcox
inquired about the sale of delinquent tax properties. Mr. Ferris explained that he had a meeting with the County
Administrator later this morning regarding that.
4.
Amend Resolution 10-06
Designation of Depositories-Treasurer’s Office
– Mr. Troy moved adoption; seconded by Mr. Daniels. Mr. Troy addressed questions regarding this resolution.
Chairman Brown asked if the County would receive a better interest rate.
Mr. Ferris stated that we would. Chairman
Brown requested that she be provide with more information why this is better.
Mr. Ferris discussed individual banks.
Committee members discussed accounts.
Mr. Schrader expressed that he was not in support of this resolution.
Ms. Breed asked Mr. Ferris what prompted these bids.
Mr. Ferris discussed some information he received from individual banks.
Ms. Breed asked if the banks had come to him and he responded that yes
they did. Mr. Schrader further
discussed his concerns with this resolution and not having enough control where
the money is at any given time. He
further discussed that the Treasurers Office has not provided reports and the
need for a policy of the Legislature regarding reports from the Treasurers
Office. He stated that he
understands the desire for a better interest rate but he is concerned about the
accountability. Mr. Whitt discussed
reports and the definition of a report. Mr.
Whitt further discussed the increase in the number of banks and the
reconciliation of that increased number of banks and a new policy of reporting
regarding this. Mr. Whitt further
discussed that if this is approved by the Legislature, then they must establish
and define, administer and design reporting issues.
Mr. Whitt stated that absent serious improvement in interest rates, he is
against this. Mr. Ferris explained
that he provides monthly balance sheets and he disagrees that the books are not
being balanced. He inquired about
an audit being needed when the checks are done through the audit department.
Mr. Ferris stated that he disagrees that he has not been providing
reports. Mr. Schrader asked Mr.
Ferris how much money the County has right now.
Ms. Kennedy replied that the County has $7.7 million in Alliance and $6.2
million in Chase. Mr. Schrader
further addressed his concerns as they relate to the lack of control of over $10
million. Chairman Brown suggested
that this be tabled for further discussion as a later date.
Mr. Clark made a motion to table the resolution; seconded by Mr. Ross.
All members present voting in favor; none opposed; motion carried,
resolution tabled. Mr.
Willcox discussed the accountability of the Treasurers Office and the use of
multiple banks. Mr. Schrader stated
that he understands the interest rate remains the same if you have $1million in
the bank or if you have $10 million but he addressed his concerns about the
accountability and the need for a better investment policy.
Mr. Whitt discussed issues related to Mr. Ferris being asked to give
reports and suggested that Mr. Ferris be given direction as to what to report.
Mr. Whitt further discussed Mr. Ferris meeting minimum requirements.
Mr. Schrader discussed the fact that this transcends general funds and
went on to discuss that a report needs to be developed for Mr. Ferris to submit.
Mr. Newell inquired as to why it has taken so long to develop this
report. Mr. Ross discussed just
creating a report and having it done.
The committee discussed the Buildings and Grounds Committee resolution (Abolish/Create Cleaner (2 positions) Custodians (2 positions)) and why it was not on this Budget and Finance Committee agenda. Mr. Schrader discussed and explained that not every resolution that is approved in other committees is put on the Budget and Finance agenda unless it is related to a change in the Budget. Mr. Willcox questioned if the resolution being discussed had differential pay? Mr. Schrader responded that it did and further discussed that it is a line item in the 2006 Budget and therefore no change will need to be made in the 2006 Budget.
Mr. Van Dee discussed the Consent Agenda and asked if there were any items to discuss.
CONSENT AGENDA
Referred from
Buildings & Grounds Committee:
- Authorize
Agreement-Bell and Spina-Implement July 2005 Court Consolidation Study-Phase I
Referred
from Health Committee:
6.
Authorize Agreement/Amend
Budget (NYS Office of Alcoholism & Substance Abuse)-Catholic Charities
7.
Authorize Agreement/Amend Budget (NYS Office of Alcoholism &
Substance Abuse)- Seven Valley Council
Referred from Highway Committee:
- Transfer
Funds-East River Road Bridge Project
- Authorize Tip
Fee-Landfill
Referred from Human Services Committee:
- Amend Budget
(Long Term Care Educational Information & Outreach Program)
- Amend Budget
(State Pharmaceutical Assistance Program)
Referred from Personnel Committee:
- Amend
Budget/County Clerk
Referred from Ag/Planning Committee:
- Amend 2006
Budget (5311 STOA Program)
- Amend 2006
Budget (Snowmobile Trail Development and Maintenance)
- Amend 2006 Budget Accept Funds/Purchase Bus Shelter
Chairman Brown requested further discussion on Consent Agenda Item Number 5 and 9.
Referred from
Buildings & Grounds Committee:
5.
Authorize Agreement-Bell and Spina-Implement July 2005 Court
Consolidation Study-Phase I – Chairman Brown asked if there is a dollar amount
associated with this resolution? Mr.
Schrader discussed that he has not received a proposal from Bell & Spina and
that this is a time sensitive issue that came out of the Buildings & Grounds
Committee. He further discussed
that he anticipates a proposal from Bell & Spina before Legislative Session.
Referred
from Highway Committee:
9.
Authorize Tip Fee- Landfill – Chairman Brown inquired about the
acceptance of the ash by the Environmental Conservation Department and further
inquired about the County having some type of documentation stating that this is
acceptable. Mr. Schrader discussed
that this is the procedure and yes the ash is acceptable.
Mr. Schrader further discussed the procedure as required by the State of
when the source changes in the generation of ash. Mr. Willcox inquired about tire shredding for the landfill.
Mr. Schrader discussed that the tire shredding is used for the base.
Mr. Daniels discussed that another county is using compost instead and
further stated that he has discussed this with Mr. Chambers. The committee discussed that there are a number of different
things to be used as cover at the Landfill.
Mr. Troy moved adoption of the
consent agenda, including the two items that were discussed, Items Number 5 and
9; seconded by Mr. Ross. All
members present voting in favor; none opposed; consent agenda approved.
DISCUSSION/PRESENTATIONS/REPORTS:
Mr. Schrader stated that Ms. Hartsock was in attendance from the Cortland
County BDC/IDA to give a short presentation about the IDA.
Ms. Hartsock distributed and discussed an Employment Report – January 2006. Ms. Hartsock discussed that
typically unemployment numbers in January are usually half what they are in
August but this year the unemployment numbers have dropped.
She also discussed the possibility of a workforce shortage and looking
into working on creating a workforce.
Employment
report – January 2006
Data
source: Published March 2006 by
Category
January 2006
January 2005
Change
Unemployment
6.2%
7.3%
Down 1.3%
Persons
employed
23,600
22,600
Up 1,000 employed
Persons
unemployed
1,600
1,800
Down 200 unemployed
Summary:
Cortland County grew 1,000 jobs year-to-year
Job
growth
Net change
Percentage change
By
sector
Year to year
Year to year
Total private sector +
900
+ 6.4%
Manufacturing
+ 300
+ 15%
Private Service
+ 600
+ 5.1%
Producing
Business and
+ 100
+ 5.9%
Professional
Services
Education and Health + 200
+ 7.4%
Leisure and
+ 200
+ 7.7%
Hospitality
The following sectors saw level numbers,
year-to-year: Mining and
Construction; Trade, Transportation and Utilities; Wholesale Trade; Retail
Trade; Warehousing; Information; Financial Activities; and Government
No sectors experienced any job losses.
These are the biggest year-to-year gains that Cortland has seen in the
last six years of data reporting.
Ms. Hartsock discussed that the IDA is separate from the BDC.
She went on to distributed and discussed The
Cortland County IDA: Q & A;
information regarding the Cortland County IDA.
The
Cortland County IDA: Q & A’s
What is the IDA?
The Cortland County Industrial Development
Agency is a public benefit corporation of the State of New York, created by the
New York State Legislature pursuant to Chapter 77 of the 1974 Laws of New York,
effective March 19, 1974. The
Cortland County IDA has the powers and duties conferred upon all industrial
development agencies by Article 18-A of the New York General Municipal Law.
What does the IDA do?
An IDA provides incentives for private
sector business investment and job creation resulting in economic growth and
improved quality of life. The
Cortland County IDA coordinates financial incentives for projects that produce
investment and job creation in Cortland County.
These incentives are typically delivered in the form of real property tax
exemption, offset by payments in lieu of taxes (PILOTS) by the project sponsor,
sales tax exemptions on project related construction materials and equipment,
exemptions form New York State mortgage recording tax, or other negotiated local
incentives. In general, these
projects are manufacturing related, although the activities that produce
positive economic impact, including those encompassing PILOT agreements, are set
forth in General Municipal Law Article 18-A.
How is the IDA funded?
The IDA receives no county funding.
There is an extremely modest annual operating budget, supported entirely
by project fees. Any fees generated by projects are redirected back into the
development projects, such as infrastructure for road, water, or sewer
improvements to serve new sites. IDA
fees may also be used as matching funds for state grant programs.
How is the IDA governed and managed?
The Cortland County IDA is governed by a
seven-member board that is appointed by the Cortland County Legislature.
The IDA serves at the pleasure of the Legislature.
The Cortland County BDC staff serves as
uncompensated volunteer staff to the Cortland County IDA.
The IDA also retains legal counsel to coordinate and deliver legal
services, including, but not limited to, all aspects of straight lease
transactions and tax-exempt bond projects.
Legal counsel also annually monitors the performance of IDA projects
through employment affidavits. Additionally,
the IDA retains an independent auditor who conducts annual audits in accordance
with generally accepted government auditing requirements, and who is responsible
for compiling and filing required reports with the Office of the State
Comptroller.
The Cortland County Industrial Development
Agency seeks informal input regarding projects from the staff and board of
directors of the Cortland County Business Development Corporation, a separate
not-for-profit corporation. This
assures a coordination of economic development efforts.
The Cortland County Business Development Corporation (BDC) is comprised
of the seven IDA members, along with six at large members elected to three-year
terms by the IDA.
The Cortland County BDC also administers
the Cortland County Empire Zone. The
BDC provides technical assistance to businesses, particularly financing, in
partnership with agencies like the SBDC, SBA, SCORE, ESD and NYBDC, as well as
community development providers. The
BDC administers a $500,000 Revolving Loan Program, which directly funds small
business expansions.
The Cortland County BDC staff consists of
an Executive Director who also serves as Empire Zone Certifying Officer, an
Empire Zone Coordinator who also serves as Financial Administrator and an Office
Manager.
What laws apply to the IDA?
The Cortland County IDA is bound by state
laws affecting its operations. These
include:
Open Meetings Law:
The IDA must give notice to the public and news media of all meetings.
All meetings are open to the public.
The agency votes in open meetings and can only go into executive session
to discuss certain limited items
State Environmental Quality Review:
The IDA must comply with Article 8 of the New York Environmental
Conservation Law and the implementing regulations (the “SEQR Act”)
Freedom of Information Law:
The IDA must comply with Article 6 of the New York Public Officers Law
(the “Freedom of Information Law” or “FOIL”) which requires that with
certain limited exceptions, the IDA must provide public access to records of the
agency.
Personal Privacy Law:
The IDA must comply with Article 6-A of the New York Public Officers Law
(the “Personal Privacy Protection Law”).
Conflict of Interest Law:
The IDA must comply with Article 18 of the New York General Municipal Law
that defines conflicts of interest.
Ethics Law:
The IDA is bound by Section 810 (3) of the New York General Municipal
Law, in that members, officers are deemed officers and employees of Cortland
County for the purposes of the “State Ethics Law”, and they may be subject
to annual financial disclosure.
What geographic areas may be considered for IDA
benefits?
The Cortland County IDA serves all communities within Cortland County.
Specifically, what benefits can the IDA provide, and
to whom?
Criteria for IDA projects are outlined through Article 18-A of New York
General Municipal Law. Under the
General Act, the IDA can undertake the following types of projects:
manufacturing, warehousing, research, commercial, industrial, industrial
pollution control facility, recreation facility, horseracing facility,
educational or cultural facility, continuing care retirement community, railroad
facility, and civic facility, or other projects that create public benefit.
Projects may be either “bond” projects (involving the issuance of
debt) or “straight lease” projects (not involving debt) that result in
economic gain and public benefit. The
IDA evaluates projects on a case-by-case basis to assure that projects result in
direct new investment, may stimulate additional investment beyond the initial
project, and increase employment.
Potential IDA benefits may include:
·
Federal and state interest exemption on
certain debt, providing the project meets the requirements of the Internal
Revenue Code. These exemptions of
interest allow borrowing at lower interest rates.
·
Other state tax benefits, such as
exemption from the New York State Mortgage Recording Tax, and the exemption from
New York State and local sales tax for purchases of equipment and building
supplies during the project period.
·
Real property tax exemption, offset
through a PILOT (payment in lieu of tax agreement).
The IDA can abate real property taxes on new construction or purchase of
a facility via a sale-leaseback or lease-leaseback arrangement. For new construction or renovations warranting an increase in
existing assessments, the IDA’s uniform tax exemption policy applies to the
increase in assessed value, provided the IDA approves the project as suitable.
The real property tax reductions under the PILOT schedule are effective
as the first (1st) assessment roll prepared by the taxing authorities
after the IDA has acquired an interest in the real property.
What is the IDA’s standard PILOT?
The standard Cortland County IDA PILOT schedule is as follows:
Year of Exemption
Amount of Reduction
1 – 3
100%
4 - 5
75%
6 – 8
50%
9 – 10
25%
11 and thereafter
0%
This represents around a 65% reduction in
real property taxes over a ten year period.
Terms and conditions of the PILOT are outlined in an agreement between
the company and the IDA and subject to the tax guidelines of Cortland County.
What factors does the IDA consider in granting PILOTs?
Determination of eligibility for benefits
is made clear through Article 18-A of General Municipal Law; however, the IDA
also considers other factors when evaluating applications from businesses.
In making decision, the IDA always performs a cost-benefit
analysis, considering capital
investment and jobs vs. the cost of public benefits.
This analysis
weighs:
·
The number of jobs to be created, with
priority given to businesses creating full-time permanent jobs that pay starting
hourly wages at 135% of the current New York State minimum wage or higher
·
The timeline for projected investment and
job creation, with priority given to projects expected to create investment and
job growth within the first two years of application
·
The extent to which the applicant will
increase the skill base of the local workforce through training, opportunities
for professional development and career track advancement
·
The extent to which goods are services
will be procured regionally, thereby increasing regional buyer-supply chains and
producing a greater multiplier effect in the Upstate economy
·
The level and type of investment to be
made by the applicant business, with a total minimum new investment of $500,000
·
The extent to which the business enhances
strategic economic development goals adopted by the Cortland County BDC and the
Cortland County Zone Administrative Board
Businesses in arrears on local taxes are
not granted benefits.
All
projects are considered on a case-by-case basis, if the applicant can
demonstrate that the project in consistent with the provisions of Article 18-A
of General Municipal Law.
Retail projects will not be granted IDA
benefits without a special exception ratified by the entire Cortland County
Legislature. The IDA will apply
statutory definitions for retail as outlined in Article 18-A of General
Municipal Law governing Industrial Development Agencies, which does not permit
special exceptions retail enterprises.
What is the actual process of getting IDA benefits,
and how does the IDA seek public input?
The company seeking benefits completes an
Application Form and Long Environmental Assessment Form (EAF).
If deemed an eligible project under Article 18-A of General Municipal
Law, the Application Form, and EAF are sent to IDA members for deliberation and
consideration at an open meeting. At
this point, the IDA discusses factors such as:
·
The magnitude of capital investment to be
made and the importance of permanent, private sector job creation, along with
the achievement of wage standards and the extent to which the project will
provide needed services or jobs
·
Whether the project will provide
employment for Cortland County workers, particularly displaced workers, or bring
new workers to the area
·
Whether the benefit is necessary for the
company to retain its competitive position and/or productivity
·
Whether the benefit is necessary to
attract an out-of-state company or enable a project in Cortland County that
might otherwise have gone out-of-state
·
Whether the project is supported through
another public source (i.e., the Empire Zone, GOSC funding, ESD funding, HUD
funding, etc.), and whether IDA benefits are necessary or duplicative
·
Whether the project will help redevelop an
abandoned facility, revitalize a key industrial site or stimulate a downtown
central business district development, or redevelop a gateway corridor
·
Whether the project is necessary to meet
critical community needs such as quality housing, health or safety,
environmental issues, infrastructure, transportation (particularly multimodal)
·
The company’s overall financial status,
its competitive position in its industry, and its long-term prospect for
viability
·
Means of financing and whether commitments
are in place from lenders
·
Whether the project would be undertaken
without IDA support
·
The impact of the project on the county
and overall regional economy
·
How the project benefits the taxpayer and
local tax base over the long term
·
Demonstrated public support for the
project
Upon approving opinion by IDA counsel and
approval by IDA members at an open meeting, the IDA passes a “Preliminary
Inducement Resolution” and signs a “Preliminary Agreement” with the
company. IDA members also review
the EAF, consider opinion of counsel, and review the entire project impact as
part of the IDA’s compliance with the State Environmental Quality Act (“SEQR”).
At the appropriate time during the SEQR process, the IDA will adopt a “Resolution”
or other appropriate SEQR document setting forth the IDA’s SEQR determination
for the project. For many projects,
the IDA is not lead agency under SEQR and agrees to abide by the SEQR
determination issued by whichever agency is acting as lead agency.
The IDA passes a “Public Hearing Resolution” authorizing a public
hearing and public comment period regarding the proposed project.
IDA counsel prepares and distributes the required public notices to the
media and all taxing authorities. The
IDA conducts a public hearing on the project to solicit public input.
Based on consideration of public comment, the IDA passes a “Final
Inducement Resolution.”
Certificates regarding no conflict of interest are signed and filed with
the IDA. Other documents (such as
general certificate of company, certificate of insurance, etc.) as required by
law are submitted by the company to IDA counsel.
IDA counsel prepares the required closing documents and conducts a
closing. IDA counsel notifies
Cortland County Office of Real Property Services and local taxing authorities as
to the start and end dates of the PILOT.
Does the IDA ever deviate from its standard PILOT, and if so, why?
The decision to deviate from a standard PILOT is at the discretion of IDA
members. Deviations by the Cortland
County IDA are rare, and it is the practice of the IDA to consult with one or
more of the local taxing authorities before granting a deviation.
Usually, a deviation occurs only as a condition of project financing, or
in association with some other state program (i.e., NYSDHCR tax credit period),
or if a project is unusual in nature and requires special considerations related
to its successful operations. More
typically, a deviation might occur because the IDA chooses not to extend full
benefits, but to shorten the length of a PILOT.
The Cortland County IDA discourages deviations from the standard uniform
tax exemption policy approved by the agency on April 2, 1998.
If the IDA adopts a deviation, it must be set forth in a resolution
adopted by the agency, with proper written notice and a public hearing.
The IDA encourages local taxing authorities to participate in the public
hearing and public comment period.
How does the IDA track performance
of PILOTs?
An independent auditor is retained by the Cortland County IDA to complete
the required annual reports to the Office of the State Comptroller.
IDA counsel also sends annual employment affidavits to all companies
receiving IDA benefits. Each
company must file an annual legal affidavit with the IDA, attesting to its
current employment levels. Legal
affidavits are required to be filed with the IDA by November 1 of each year.
The affidavits measure both the number of jobs and types of jobs.
The IDA, in consultation with counsel, reviews these affidavits to
determine if a company is in compliance or default.
The IDA then acts on those findings.
Throughout the year, IDA staff may also make site visits, request
additional financial information if required, or monitor the SEC filings of
public companies, to determine if there are potential problems.
If there are apparent inconsistencies with the legal employment
affidavits filed with the IDA by the company receiving benefits, these are
reported to IDA members.
IDA members, in consultation with staff and counsel, regularly review and
discuss the criteria for IDA incentives to assure that they are consistently
applied. IDA members, in
consultation with staff and counsel, monitor projects based on both annual legal
employment affidavits and staff site visits to ensure that projects have
fulfilled proposed benefits and objectives.
The IDA confers frequently with the Office of Real Property Tax, the
County Treasurer’s Office, and local taxing authorities to monitor that PILOT
payments are being made under the terms of the PILOT agreements.
PILOTs are billed by the taxing authorities.
Any additions to a project during the term of the PILOT are assessed
normally, unless the addition is approved as a separate project, which requires
another public hearing.
What happens if a company does not
meet its obligations as part of the PILOT agreement?
If the IDA determines that a company is in default, counsel notifies the
company and local taxing authorities. The
company is given an opportunity to take corrective action to comply, or to
respond. The IDA then takes
appropriate action as outlined in the terms of the PILOT agreement and/or the
IDA’s uniform tax exemption policy. The
IDA may choose to continue the PILOT based on factors cited by the company such
as industry cycles, a general downtown in the economy, or other special
circumstances. The IDA may modify
the PILOT based on guidelines within the agreement.
The IDA may terminate the PILOT. IDA
counsel notifies all local taxing authorities of its decision.
Typically, the IDA uses this formula:
Year of Exemption
80% or more
60% to 80%
40% to 60% 20% to 40%
Less than 20%
compliance
compliance compliance
compliance
compliance
1 – 3
0%
25%
50%
75%
100%
4 – 5
25%
43.75%
62.5%
81.25%
100%
6 – 8
50%
62.5%
75%
82.5%
100%
9 – 10
75%
81.25%
87.5%
93.75%
100%
11 and after
100%
100%
100%
100%
100%
How are PILOTs billed?
Who receives the funds? What
about special district taxes?
A PILOT does not exempt a project from
special assessments, special district taxes, or other special levies by a local
taxing authority. All PILOT
payments are billed and received by the local taxing authorities. The IDA does not receive or administer PILOT payments.
If a local taxing authority has not received a PILOT payment, it may
either notify the IDA and request that it enforce the PILOT or the local taxing
authority can enforce the PILOT directly.
What happens at the end of a PILOT?
At the conclusion of a PILOT project, IDA counsel notifies local taxing
authorities and places the project back on the tax rolls.
How and why can benefits be terminated?
Termination of IDA benefits include failure to comply with statutes that
govern the program, failure to invest or meet job goals within three years of
application, and/or default on any other provision of the final agreement
between the IDA and the company. IDA
counsel and staff are jointly responsible for monitoring the performance of the
project and providing a recommendation to IDA Board regarding termination or
restructuring of an agreement due to non-performance or default.
How is the IDA monitored?
The IDA is accountable to the Office of
the State Comptroller. A recent “risk
assessment” / performance audit by OSC had no findings, and in fact, the
Office of the State Comptroller has commended the Cortland County IDA for its
internal controls and commitment to good governance.
The Cortland IDA has been asked to provide professional development and
training on IDA governance to the New York State Economic Development Council.
What companies currently have PILOTs, and when do they
expire?
Cortland County has only seven active PILOTs, an extremely small number
compared to surrounding counties. Currently,
these companies have active PILOT agreements:
Company
name
Date
Type of PILOT
Essex Steel
October 1, 2004
Standard
Barden Homes
April 2, 2004
Standard
South Slope Development
February 1, 2002
Modified – shortened term of PILOT
Photon Office Building
April, 19, 2001
PILOT amended to increase payments per employment
Cortland Associates
April 10, 2001
Standard, but required vote of full Legislature to approve
Borg Warner
December 16, 2000
Standard
FARME (office only)
February 14, 2000
Standard
Companies with active PILOTs currently
employ 460 full-time workers, and 96 seasonal workers, based on the most recent
legal employment affidavits.
Ms. Hartsock passed around for the Committee Members to look the IDA Project Summaries Binder. She further discussed PILOTS and the monitoring of their performance. Ms. Hartsock discussed Impact Sports PILOT payments being in default. She added that the IDA is seeking repayment of their loan to them. Ms. Hartsock further discussed the approximate money owed by Impact Sports to known creditors being $880,000. Chairman Brown inquired if the money received from the sale of the property will cover the known debts. Ms. Hartsock discussed that they likely would. Mr. Willcox inquired about if the individual company makes any personal obligations. Ms. Hartsock explained that their procedures prior to lending. She further discussed and distributed information on GROW Cortland, Business Development Fund.
“GROW
CORTLAND” BUSINESS DEVELOPMENT FUND
The Cortland County Business Development Corporation and the Cortland County
Legislature have partnered to establish a “Grow Cortland” Business
Development Fund targeted for small businesses.
The goal of the program is to provide local incentives/ gap funding to:
1) Assist in the
relocation of small businesses to Cortland County
2)
Provide matching funding for companies entering into productivity or
efficiency improvement programs through approved providers such as the Central
New York Technology Development Organization.
These funds would be targeted to small businesses that are not eligible
for other New York State benefits, such as the Empire Zone program, or capital
assistance grants from Empire State Development.
The “Grow Cortland” Business Development Fund will be administered by
the Cortland County BDC, which already administers a $500,000 Revolving Loan
Program under terms and conditions described in its loan policy.
Unlike the BDC Revolving Loan Program, the “Grow Cortland” Business
Development Fund is grants to small businesses in the form of deferred loans, to
be forgiven after the achievement of contractually established investment and
employment thresholds. The maximum
award per company is $10,000.
“Grow Cortland” Business
Development funding decisions will be made by a committee jointly established by
the Cortland County Legislature and the Cortland County BDC that includes:
·
Chairman of the Cortland County Legislature
·
Chairman of the Budget and Finance Committee of
the Cortland County Legislature
·
Majority Leader of the Legislature
·
Minority Leader of the Legislature
·
Cortland County BDC Revolving Loan Fund
Committee
Criteria for reviewing “Grow
Cortland” applications include:
·
The number of jobs to be created, with priority
given to businesses creating full-time permanent jobs that pay starting hourly
wages at 135% of the current New York State minimum wage or higher
·
The timeline for projected investment and job
creation, with priority given to projects expected to create investment and job
growth within the first two years of application
·
The extent to which the applicant will increase
the skill base of the local workforce through training, opportunities for
professional development and career track advancement
·
The level and type of investment to be made by
the applicant business, with a total minimum new investment of $100,000
·
The degree to which the funding is required to
make an existing company competitive, or to enable a small company to relocate
to Cortland County
The “Grow Cortland”
Business Development Fund will consider applications from every community in
Cortland County. Priority will be
given to small businesses in the following sectors:
·
Precision
manufacturing industries, material processing, industrial machinery processing,
metal fabrication and forming, metal forging and stamping, and metal coating
·
Plastics and
extrusion, misc. plastic products, and packaging
·
Wood products and
wood processing, forest and lumber products, hardwood and other mills, millwork,
wood buildings, prefabricated and pre-engineered homes, and homebuilding related
businesses
·
Light
manufacturing and skilled assembly
·
Emerging
technology sectors as defined by Public Authorities Law Section 3102-e
·
Information
technologies, including advanced computer and electronics
·
Life sciences,
biotechnology, medical technology and bio-pharmaceutical
·
Environmental
sciences, environmental systems and renewable energy
·
Integrated
electronics, electronics assembly, manufacturing and packing
Businesses in arrears on
taxes will not be granted benefits.
The BDC Revolving Loan Fund Committee will be responsible for monitoring the
performance of the project and providing a recommendation to the committee at
the conclusion of the project to either forgive the loan, or call the loan based
on non-performance or default.
Ms. Hartsock discussed the DB Gatti Company relocating to Cortland and that they will be bring high skilled and high paying jobs with them. Chairman Brown discussed drafting a resolution regarding the GROW Cortland review criteria and loan review procedures. Mr. Daniels made a motion to draft a resolution to establish Review Criteria and Loan Review Procedures for
GROW Cortland Business
Devolvement Fund; seconded by Mr. Troy. All
members present voting in favor; none opposed; motion carried, resolution
approved.
BDC Contract
Mr. Van Donsel discussed that the 2003 Legislature adopting a five-year
agreement with BDC but only signing contracts for one year.
He further discussed that a five-year contract can be written and signed
with a clause allowing us to terminate if there is a failure to meet the
obligations on the part of the BDC. Ms
Hartsock discussed the historical funding of the BDC.
Mr. Whitt requested that Ms. Hartsock explain where the funding for
BDC/IDA comes from. Ms. Hartsock
briefly discussed the funding procedures of the BDC and went on to discuss that
the IDA receives no County funding. Mr.
Whitt further discussed no actual reports having been done and no non-compliance
issues. Mr. Whitt and Ms. Hartsock
briefly discussed a compliance report.
Tax
Foreclosure Sales
Mr. Ferris explained that he and Mr. Schrader had an appointment later in
the day regarding Auctioneers. Mr.
Van Dee inquired about sending out for local bids and not receiving any
responses. Mr. Ferris discussed a
land locked piece of land and private (sealed bid) sales to adjacent property
owners. He went on to explain that
a parcel in Virgil was sold in 2000 at auction and now it is back due to
non-payment this year. Mr. Ferris
discussed further the negotiated sales of the land locked parcel.
Highway
Department-Authorization to purchase Tanker
Mr. Schrader explained to the committee the issues related to the purchasing of a Tanker for the purpose of hauling leach aide from the Landfill. He further discussed the current hauler gave a 30 day notice at the beginning of the month that they would no longer haul leach aide from the landfill. Mr. Schrader further explained that the Highway Committee authorized Mr. Chambers to purchase tanker for the approximate cost of $8,500. He further discussed that because it falls below the $10,000 threshold and a need to expedite the situation, he has authorized the budget transfer. Mr. Schrader discussed this is a change in procedure but hauling will save the county money. The committee discussed that the labor issues related to this change. Mr. Ross asked about the disposition of the tanker after we no longer haul leach aide, will the tanker be sold? Mr. Schrader explained that they will likely not sell the tanker but instead it will be mothballed. He further discussed the need to move the leach aide or take the risk of being cited. He went on to discuss the use of the tanker will be evaluated prior to the need for the drafting of the budget.
Payroll
Coordinator
Mr. Schrader stated that he would like to discuss the issues related to the Treasurers Office and report on where the County stands on the transfer of the Payroll Coordinator to the Personnel Office. He went on to discuss that the Legislature has chosen the best method to deal with the problem of payroll and move it to Personnel. He went on to explain that the Payroll Coordinator currently falls under the Personnel Department and additionally explained why the move has not taken place as it relates to last years negotiations of CSEA contract. Mr. Schrader explained that there are no longer any impediments and the transfer will be taking place at the end of the month. Mr. Schrader discussed that there was a comment in the newspaper referring to pitfalls associated with the movement of the Payroll Coordinator to the Personnel Department and he is not aware of any pitfalls. He explained that individuals have stated that this move is not necessary and went on to discuss a seven-page draft report of exceptions to payroll he had in front of him. Mr. Schrader explained this report and explained that the Personnel Department does not match the Treasurers Office with regards to the last payroll. He stated that there are numerous instances that the titles do not match. Mr. Schrader explained that this report is a justification for the action being taken and that this report is just a draft of finalizing the certification and another will be done after the transfer has taken place.
Audit
Office
[Ms. Breed was in attendance earlier in the meeting but had left when this discussion took place.]
Mr. Schrader wanted to discuss the e-mail sent by Legislator Breed with regards to the duties of the Audit Office. He went on to explain that the practices of the Audit Office and when compliance audits are completed the findings are reported to the County Administrator. Mr. Schrader went on to discuss that if no non-compliance issues are found then the results of the audit are just filed away. Mr. Schrader explained that when inefficiencies are found that need to be fixed they would be brought to the Legislature. He went on to discuss that this is the justified policy of the Legislature. Mr. Whitt discussed involvement with the changing of payroll and that it was the policy of the Legislature to have the position moved. He went on to discuss that absent the instruction to do so he will not do an audit. He further discussed himself being hired to assist the County to be in compliance and that there was one hurdle left; MUNIS and purchasing. Mr. Van Dee discussed that Ms. Breed had inquired at the last meeting who Mr. Whitt reported to. Mr. Whitt explained that he is involved in fixing problems when they are found. He further explained that the Chairman currently has him working on four reviews. Mr. Whitt went on to discuss the Tobacco Security issue and the lack of notice that was given to Legislators in regards to this last fall and the full Legislature received only four days notice and the Chairman of the Legislature and the Treasurer knew about this back in September. Mr. Van Dee discussed that there is a concern among some Legislators that Mr. Whitt does not give enough reports. Mr. Van Dee further discussed that he wants to answer questions and make sure that the needed corrections are done. Mr. Schrader inquired as to the point of a report; to mention names or to find problems and make sure they are fixed. Chairman Brown asked if Legislator Breed has gone to the County Auditor and asked him to do something and he has refused to? She went on to discuss that this is the same as giving a report. Mr. Whitt discussed that there is no record that Budget & Finance Committee has requested a report from him and it was not done. Mr. Whitt discussed a situation when Ms. Breed was on the TC3 Board and had a problem with TC3 not receiving a check. Mr. Whitt further discussed that he fixed the problem that Ms. Breed was responsible for. Mr. Whitt further discussed that he had also gathered information regarding the Sheriff’s Department that Mr. Willcox and Ms. Tytler have reviewed. Mr. Willcox discussed that he had reviewed the information and found things to improve in the Sheriff’s Department. Ms. Tytler also discussed things that she had found. Chairman Brown discussed that a report did not need to be done at that time, inefficiencies were found and discussed then corrected. Mr. Schrader discussed the possible outcome of a full report that names inefficiencies. Ms. Tytler explained that she doesn’t’ think that was what Ms. Breed was asking for. She went on to explain that she was interested in systemic issues; she did not need to know names and specific issues. Ms. Tytler further discussed that if there are systemic issues they are what need to be brought to the attention of Legislators. She further mentioned the purchase order issue and further discussed that what needs to be done is the sorting out of issues. Mr. Whitt discussed that he came prepared and distributed a handout on Auditing. He further discussed finding mistakes and having them fixed. He also discussed that Legislators can direct an audit to be done at anytime. Mr. Whitt further discussed that there is a need for one more set of timely reports and review of year-end audit. He further discussed that there is an opportunity this year to have a new Audit Committee. He further discussed that last year there was an independent audit committee and this year the Legislature may want McNeilly to do something different. Mr. Whitt explained the need for the Legislature to consider appointing an Audit Committee as soon as they can. Ms. Tytler discussed doing it the same as it was done before and further discussed the issuing of reports. Mr. Schrader discussed systemic problems. Ms. Tytler suggested that a performance review be done of the County Auditor and set goals for next year. Mr. Willcox discussed Resolution 113-04-Create/ Appoint Deputy County Auditor, Amend Management Compensation Plan. Mr. Ferris discussed the Comptroller’s Report and it did not direct the moving of Payroll to the Personnel Department. He went to explain that he has told the County Administrator that he will cooperate with the move. He went on to address the statement made that he does not provide reports and discussed that he provides reports on a monthly basis and he provided the Budget & Finance Committee with a report in the Fall of 2005. Mr. Ferris went on to discuss that he had concerns with the seven page payroll certification report Mr. Schrader had and would like a copy of it. He further expressed that he has not seen the report and or the errors in the report. Mr. Ferris discussed that the errors in the report could have been done in the Personnel Department and not the Treasurers Office. Mr. Ferris further discussed that the Personnel Department has not done payroll certification since he took office on 2000. Mr. Van Dee discussed that Mr. Ferris has been made aware of the move for over a year. Mr. Ferris expressed that he saw problems with the move. Mr. Schrader expressed that Mr. Ferris may have a copy of the report when it is completed. Mr. Schrader went on to discuss the claim made by the Treasurer that there were pitfalls with the move of the Payroll Coordinator and wanted to know what they were. Mr. Van Dee stated that he felt it was a good move and the position should be moved.
The meeting adjourned at 9:25 a.m.