Budget and Finance Meeting

June 17, 2008 – 800 a.m.

DRAFT Minutes

 

Present:                   John Troy, Chairman, Budget and Finance Committee; Newell Willcox, Vice Chairman, Budget and Finance Committee; Sandy Price; Danny Ross; Carol Tytler; Tom Williams; Kathie Arnold

Others Present:       Legislators: John Steger, Kathie Wilcox, Larry Cornell, Tony Piombo, John Daniels; Scott Schrader, County Administrator; Ann Homer, Secretary II; Dr. Carl Haynes, President, Tompkins Cortland Community College; Dean Walter Poland, TC3; Blixy Taetzsch, TC3; Carolyn Kennedy, Deputy County Treasurer; John Daniels, Chairman of the Legislature; Laurie Gosse, Deputy Personnel Officer; Patrick O’Mara, Treasurer; Evan Geibel, Cortland Standard; Jack Hess, Deputy Director, Information Technology; Rob Corpora, Director, Information Technology; Mark Suben, County Attorney; Susan Morgan, Clerk of the Legislature; Eric Mulvihill, WXHC; Dennis Whitt, County Auditor

Mr. Troy called the meeting to order at 8:39 a.m. Resolutions number 2 and number 3 were addressed first to following the action taken in the joint meeting with the Personnel Committee and received support from the Personnel Committee. Notation of the votes on these resolutions is found below under “Resolutions”.

Mr. Troy in                Mr. Troy introduced Dr. Carl Haynes, President of Tompkins Cortland Community College (TC3).

 

Presentation

 

Dr. Carl Haynes provided an update on the TC3 Operating Budget. He indicated that growth is driving the revenue side of the budget. They are looking at an 8.5% enrollment increase this year and are budgeting a 4% increase next year. They are running well ahead of that at this point. The State pays a fixed amount to TC3 based on FTE students. There is no increased revenue planned from the State. However, the State has agreed to pay for all full-time FTE enrollments, which will result in some increased revenue. TC3 is requesting a $115 per year tuition increase for full-time students and a $4.00 per credit hour increase for part-time students. Dr. Haynes provided information on where they anticipate the most growth in enrollment. He addressed the chargeback program for tuition whereby we receive income when students from other counties attend TC3.  This number of students has been growing resulting in additional revenue. TC3 is requesting a 5% increase in sponsor growth.

Dr. Haynes indicated that this year there was an extraordinary demand for additional revenues. There was $3million in additional requests from the departments, which is double over last year. This is reflective of the departments trying to do more and serve more students without any increase in resources.  Administration cut that request was back. There are 2 entirely new faculty positions being added this year. There are also 5 new staff being hired to replace retiring staff. Most of the funding for the 2 new positions will be covered in the lower salaries being paid to new staff as opposed to the higher salaries being paid to long-term staff. The college is moving to Peace Officers on campus. Two Peace Officers will be hired in May. The need for this staff is driven by the on-campus residential facilities. These staff must be hired in advance so that they can attend the appropriate training.

Dr. Haynes addressed the issues of the financial institutions withdrawing from the student loan program. Two institutions are withdrawing support for community college attendees. The college is now administering a program through the State, which acts much like a student loan program through a financial institution. This program drove the need for an additional staff person, who position is being funded basically through additional fees. Contractual expenses, health insurance, etc. have resulted in increases, as well as maintenance issues for the building and the changeover in the Security Department.

Sponsored share related to cash expenditure has been decreasing over the years – it is now a little over 4%. Dr. Haynes indicated that the State looks at sponsor share and sponsor cash contributions as two different numbers. He explained the intricacies in the differential of these two numbers. Dr. Haynes explained there are three mitigating factors which need to be considered by the Legislature: 1) this past fall we experienced 64 additional students attending TC3 from local high schools – 32 from Cortland , 32 from Tompkins. If you assume that these students would have gone elsewhere, that is $183,000 of chargeback revenue that the 2 counties combined saved – or approximately $90,000 per county. 2) There was a series of articles in the Ithaca Journal about poverty in the community and how education helps reduce poverty. All the students and staff featured in the articles were TC3 graduates – and this results in a real hard dollar savings as these folks are not consuming public assistance/unemployment dollars. 3) The productivity of the employees over the last 10 years – FTE faculty to FTE student ratio – has improved by 35% during this time frame. The major impact of why they have been able to do this is due to improved technology throughout the institution. Going forward, there is a limit to how much additional productivity can be gleaned from the technology. You can only do so much before you need additional staff to carry out the mission. He mentioned this to reinforce that they are managing the available resources well. Students and communities are being served well the TC3.

Mr. Troy commented that he feels we have a real gem with the college and it is an asset to the community. Dr. Haynes has done an excellent job of keeping the Legislature informed of the college initiatives. Mr. Troy supports the budget 100%.

Mrs. Tytler thanked Dr. Haynes for the opportunities he has provided to interact with the Tompkins County Legislature. Mrs. Tytler did let the committee know that Dr. Haynes had originally requested 6% and is now requesting 5%. She asked Dr. Haynes what was cut to go from 6% to 5%. Dr. Haynes explained that the equipment line was cut. He feels that is the line that it most easily could come from. Personnel are already tight and he did not feel it is would be a good decision to cut the personnel line. Dr. Haynes feels they can get by for one year with less funding in the equipment line. Dr. Haynes did indicate that there are a couple of members of the Tompkins County Legislature who want to put the full 6% increase on the table at tonight’s Tompkins County Legislative meeting. He does not know if there is full support at Tompkins County but he feels that the Tompkins County Legislature would like to know Cortland ’s feelings. Dr. Haynes indicated that he had received a message that 5% would be the best amount for which to ask. Mr. Daniels indicated that Cortland has informed the Tompkins County Legislature that if they support 6%, Cortland would amend its resolution and support the 6% as well. Mrs. Tytler indicated there is a Tompkins County group that is really advocating the 6% increase. Mrs. Wilcox asked if TC3 can live with a 5% increase, why would we support 6%. Mrs. Daniels indicated that it would offset what we give them in the contracts. Our budget originally planned for 6% and the money is there. If TC3 is going to be cutting equipment that the really need and we have the money budgeted for 6%, why would we cut them unnecessarily. Mrs. Price indicated that when we are educating and training the students, we want them to have the equipment that they would have in the workplace. There is no sense in training them on outdated equipment. Mr. Daniels indicated that increase between 5% and 6% would be approximately $15,000. Mr. Troy indicated that if Tompkins County approves the 6% the resolution can be amended at the Legislative Session next week. Dr. Haynes indicated that they are trying to minimize the increase in the cash contribution by the sponsors. This amount was decreased based on the 9/11 tragedy and has never gone back up. Mrs. Tytler explained the “third model” which was the original design – one-third from the sponsors, one third from tuition, and one third from the State. The counties have never reached the one-third contribution. Mr. Schrader indicated that if he had his way, he would double the cash contribution that we currently make. However, Tompkins County has a different viewpoint on the cash contributions than Cortland County does. Mr. Schrader believes that TC3 needs our cash contribution – it is not a want on behalf of the college.

Minutes

Mr. Troy explained that there are no minutes from the previous meeting. They will be considered at a future meeting.

Resolutions

1.     Adopt 2008-2009 Operating Budget Tompkins Cortland Community College – Mr. Williams moved adoption; seconded by Mrs. Tyler; all members voting in favor; none opposed; resolution adopted. Dr. Haynes and staff will attend the Legislative Session next week should questions arise.

2.     Approval Of Tompkins Cortland Community College Faculty Association Contract For The Years 2008-2013 – Mrs. Price moved adoption; seconded by Mrs. Tytler. Mr. Troy feels it is a fair contract and Mrs. Price echoed the sentiments. All members voting in favor, except Mr. Willcox opposed; resolution adopted.

3.     Approval of Tompkins Cortland Community College Professional Administrators Association Contract For the Years 2008-2013 – Mrs. Price moved adoption; seconded by Mrs. Tytler. All members voting in favor except Mr. Willcox opposed; resolution adopted.

4.     A Resolution Authorizing Various Capital Purposes for the County of Cortland, New York, at a Maximum Estimated Cost of $11,310,000 and Authorizing the issuance of $11,310,000 Bonds of Said County to Pay the Cost Thereof –Treasurer – Mrs. Tytler moved adoption; seconded by Mr. Williams. Mr. Schrader explained that this resolution authorizes the borrowing for all approved capital projects and bonding. It rolls all funding together in one mechanism. Mr. Willcox asked the rate we will receive – the best guess is 4% to 4.5%. The bonds will not be issued until August, so the rate will be dependent upon what is prevailing at that time. The terms will be a blended 25-year issuance. Mrs. Tytler asked if there was something at the airport that we paid for that we want to roll in to a bond. Mr. Schrader indicated that was Mr. Willcox’s desire but the Legislature did not take action. We cannot go back and capture that project under bonding. All members voting in favor; none opposed; resolution adopted.

5.     Create Temporary Secretary I - County Administration Mrs. Tytler moved adoption; seconded by Mr. Willcox. Mr. Ross indicated that there will be no benefits for this position. Mr. Schrader indicated that both of his staff members are out on extended medical leave. Mr. Schrader indicated that he will need to do a budget modification for under $10,000, which he can enact without additional approval from the Legislature. All members voting in favor; none opposed; resolution adopted.

6.      Increase Persons With Disability And Limited Income Tax Exemption (Real Property Tax Services) - Mr. Williams moved adoption; seconded by Mrs. Tytler. Mr. Schrader indicated that he has been approached by Mr. Daniels and Mrs. Wilcox about this issue. He explained that we had not adjusted the senior exemption since 2001 until last fall. However, we missed the disability exemption. This brings the disability exemption in line with the senior exemption. This will go in effect in 2009 for taxes in 2010. The lag is due to taxable status date. There is an inherent lag due to the tax process in New York State . We are increasing the agent to match what the City of Cortland has enacted. The senior exemption will take place in 2009 as the change was enacted last year. All members voting in favor; none opposed; resolution adopted.

  1. Authorize Agreement/Amend Budget Real Property Tax Service Tax Map Conversion - Ms. Price moved adoption, second by Ms. Tytler. Mr. Schrader said that we will be changing our digital maps from the format used today, moving away from Autopad and toward ESRI. This will result in a better product on the backend for dispatching and manage a better product than we have now. Mr. Cinquanti has met with Mr. Corpora and Mr. Dineen and this was selected as the best way to accomplish our goals for 911. We budgeted $25,000 this year and will apply that amount along with state aid and hopefully will accomplish this by the end of the year. Ms. Tytler questioned the math saying that $40,450 and $28,000 does not equate to the total proposed. Mr. Schrader said that the $28,000 is an estimate and he is not sure they will be needing all of that money. The estimate was made because there is some hourly rates and training that may need to be applied. All members voting in favor; none opposed; resolution approved.

7A.  Resolution Authorizing the County Administrator and the County Attorney to Present an Offer to Purchase 13-15 Elm Street - Ms. Tytler moved adoption, seconded by Mr. Williams. Mr. Troy said that the completed resolution was placed on their desks. Mr. Schrader said that in 2007, legislators authorized the County Attorney to proceed with eminent domain process on the property of 13-15 Elm Street to use for facility improvements and parking. We have that appraisal based on market value to bring the property up to code estimated at $70,000. This resolution is now asking permission to make that offer for the one parcel with two buildings. Ms. Tytler asked if we proceed with eminent domain if they reject our offer. Mr. Schrader answered yes. All members voting in favor; none opposed; resolution approved.

Mr. Troy introduced the Consent Agenda, Items 8 through 23, and asked if there were any items to be pulled for discussion. Mr. Willcox requested removing 9, Mr. Williams number 10 and Ms. Tytler number 11. Mr. Suben stated that Item 22 if passed, needs to addressed with a change in the Rules of Order.

Ms. Price moved adoption of the Consent Agenda with the three exceptions to be acted upon separately, seconded by Mr. Williams. All members voting in favor; none opposed agenda numbers 8, 12 – 23 were approved.

Referred from Buildings & Grounds

None

Referred from Health Committee

  1. Amend 2008 Budget Health Department/Administration/Health Education (State Farm Insurance Donation)
  2. Award Proposal/Authorize Agreement Health Department/Nursing Division

(Clinical Software – Certified Home Health Agency)- removed to be acted upon separately.

Referred from Highway Committee

  1. Authorize Project to Replace MH-2 Hangar Door Cortland County Airport Highway Department - removed to be acted upon separately.
  2. Amend Budget/Transfer Funds Highway Department - removed to be acted upon separately.
  3. Amend Budget/Transfer Funds Highway Department
  4. Landfill Phase II Engineering Services Supplemental Agreement Highway Department
  5. Amend Budget/Transfer Funds Highway Department/Recycling

Referred from Human Services Committee

  1. Abolish/Create Area Agency on Aging Keyboard Specialist/Secretary I
  2. Accept Grant/Amend Budget Department of E&T Grant Administration Disability Program Navigator

Referred from Judiciary & Public Safety Committee

  1. Authorize County-Wide Specialty Team Amend Resolution No. 230-05 Fire and Emergency Management
  2. Amend 2008 Budget Sheriff's Department (Child Passenger Safety Program)
  3. Amend 2008 Budget Sheriff's Department (Insurance Recovery)

Referred from Personnel Committee

  1. Extend Temporary Appointment of Information Processing Clerk County Historian
  2. Authorize Agreement/Accept Funds Polling Place Access Improvements
  3. Adopt Local Law No. 1 for the year 2008 A Local Law Restating the Establishment Of A Plan of Mutual Self-Insurance For Worker’s Compensation As Authorized By Article 5 of The New York State Workers’ Compensation Law; Participation; Rules And Regulations And Apportionment

Referred from Ag/Planning

  1. Authorize Agreement, Amend 2008 Budget Cortland County and New York State Department of Agriculture and Markets (Acquiring a Conservation Easement on the Peter and Michael McMahon Farm in the Town of Homer )

NON-CONSENT AGENDA RESOLUTIONS:

  1. Award Proposal/Authorize Agreement Health Department/Nursing Division (Clinical Software – Certified Home Health Agency) - Ms. Tytler moved adoption, seconded by Ms. Price. Mr. Willcox asked Ms. Tytler to provide background. Ms. Tytler said it is software that allows our staff to report their clinical notes that network into the billing and will provide greater efficiency than what we have now. She said the staff looked at several programs and selected this option as their choice. All members voting in favor; none opposed; resolution adopted.
  2. Authorize Project to Replace MH-2 Hangar Door Cortland County Airport Highway Department - Ms. Price moved adoption; seconded by Mr. Willcox. Mr. Williams asked which hangar is being referred to. Mr. Schrader answered that hangar II is the one currently leased by Steve Lissberger, Seven Valley Aviation. All members voting in favor; none opposed; resolution adopted.
  3. Amend Budget/Transfer Funds Highway Department – Ms. Price moved adoption; seconded by Mr. Ross. Ms. Tytler asked how this money moves through the budget. Mr. Schrader said it flows into the Highway Fund through equipment leasing and shows up as a revenue in the Road Machinery Fund and is expensed out there; basically it is leasing from ourselves. Mr. Willcox said that if number 11 & 12 were combined it amounts to roughly ¼ million dollars. He asked what we are presently paying for diesel fuel. Mr. Schrader said he didn’t know the answer as the price changes every time we get a load. He does know that it approximately 25% above what we anticipated. Ms. Kennedy added that at budget time it was at $1.90 and now is over $4.00. Mr. Willcox asked if we are doing anything to conserve fuel. Mr. Schrader said he will be having conversations with Mr. Chambers to scale back or consolidate projects and locations. He added they are trying to balance politics with operations. Mr. Willcox asked about the Road Patrol. Mr. Schrader said that the Sheriff is concerned and has had cars sitting, taking pictures rather than patrolling. Mr. Daniels said that the Sheriff did buy a couple of more fuel-efficient vehicles that should help. Mr. Schrader said that conversations regarding smaller cars have become problematic due to all the equipment deputies carry in their vehicles. Mr. Willcox said he guessed the answer then is no. Ms. Price asked if we will continue to do roadside mowing. Mr. Schrader answered yes. Mr. Daniels added that another preventative measure is that they are turning off vehicles when not in use, except in cold weather. Mr. Cornell questioned whether a four-day workweek would help with fuel costs. Mr. Schrader said that the union has not cooperated when we have presented that issue. Ms. Price suggested that it be brought up again at the labor management meeting. Ms. Tytler referred to Mr. Williams idea that employees would personally save money as well as the employer. All members voted in favor; none opposed; resolution adopted.

DISCUSSION

County Audit Report

Mr. Whitt asked the committee to determine whether they want to hear from him about the audit going on or recess to another meeting and handle the information and form an audit committee to consider several issues that have been identified by the independent auditor. He said he preferred to prepare this to discuss at the next meeting. Mr. Troy expressed his preference of presenting this to the whole committee. Mr. Whitt asked for a motion to create a record of the action that the whole committee will act as the audit committee. Ms. Price moved adoption; Mr. Willcox seconded; all members voting aye; none opposed; motion passed.

Mr. Whitt said that we have retained Mr. McNeilly again this year and he has identified the following areas of concern to resolve rather than be cited in the final audit report. They are:

1.      TC-3

The way we are writing checks to them and the balance of what we are writing needs to be done another way, as the resolutions authorizing payment do not match the authorization. The County share is $1,862,000.00 and we may be short. He said that he will discuss this with Mr. Schrader and bring this to committee.

2.      Solid Waste Fund

Issue raised is where we are reporting the activity as opposed to an enterprise fund. Mr. McNeilly wants that changed and we are working on that. Ms. Kennedy said that is because the resolutions authorize the money from the capital fund rather than the EL (Solid Waste) fund.

3.      Infrastructure Asset Requirement

Mr. Schrader reported that they finished the GASB requirement last year that values our infrastructure and we are presently updating that. He has worked with Bob Buerkle who values the infrastructure and he is depreciates it. He does not see any problem with getting that done on time. Ms. Tytler asked if that includes our facilities. Mr. Schrader answered that our facilities are included as part of our schedule and financial report. The new requirement is to rate the condition of our roads and bridges, multiply that by the number of miles we have and then depreciate them. He added that Mr. Buerkle has done a fantastic job researching what was needed to be done. Ms. Tytler asked if this was ever required before. Mr. Schrader answered no; this is a new GASB requirement. Mr. Willcox inquired who polices this. Mr. Schrader said that theoretically the bond rating agencies could look at it as well as a peer review required by the Auditor. Mr. Whitt said that it is the committee’s responsibility to insure that this gets done.

4.      Fixed Assets

Mr. Whitt said that his staff on the third floor is presently doing this. It was taken from the Treasurer’s Office and it is anticipated that it will be returned to the Treasurer to maintain and oversee.  This is GASB requirement 45 to be in compliance with by the end of the year.

Mr. Whitt concluded saying that he believes that we are going to have a good audit this year that it will not affect our financial status.  

Treasurer’s Report

Mr. O’Mara reported incidents of individuals copying checks and issuing them to a business amounting to $13,000. He stated that we have received the money back and the investigation is ongoing. He said he is confident that by changing our system we have kept on top of this type of activity. Mr. Schrader added that while someone has stolen from the County, our system is working because we are catching them quickly. This is due to regular reconciliation of our accounts. Mr. O’Mara commended his staff and how well they work with DSS to address this type of problem.

Meeting adjourned at 9:40 a.m.

Minutes prepared by Ann Homer, Secretary & Susan Morgan, Clerk of the Legislature

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