putnam county 2013 budgetputnamcountyny.com/wordpress/wp-content/uploads/2012/05/...2012/10/03 ·...

Putnam County 2013 Budget

County Executive MaryEllen Odell

October 3, 2012

Putnam County, New York

2013 Budget

Vision:


2013 Budget

Budget Objective:


2013 Budget

Summary of Proposed Budget

Proposed 2013 budget – $139.2m

An increase of $794k over 2012 adopted budget or a ½ of one percent increase - Includes a 2.2 million dollar(2.2%) increase to meet NYS/Federal

unfunded mandated program expenses

- Includes a 1.4 million dollar reduction in Putnam County spending or a decrease of 3.7%

- General Fund Surplus allocation of 3.9 million dollars, using $600K less than the 4.5 million dollars budgeted in 2012

This budget represents a “True 2%” property tax increase ($761k) used solely to fully fund those mandates imposed by New York State and the Federal Government


2013 Budget

Why Are We Calling This a “True

2%” Property Tax Increase?

The NYS 2% Tax Cap Formula would allow

us this year to raise property taxes by 3.1%

or 1.2 million dollars because of “Albany

Math”

This Administration is committed to staying

within a “True 2%” tax cap!


2013 Budget


2013 Budget

Revenues: $139.2m

Sales Tax - 50.6 million dollars

2012 Property Tax - 38 million

dollars

Reimbursements for Federal

and State mandated programs

29.3 million dollars

Department Revenue

16.7 million dollars

General Fund Surplus

3.9 million dollars

“True 2%” Property Tax

increase - $761k

2013 Budget Revenue

2013 Tentative Revenues

79%

21%

Mandated Programs

Quality of Life Services


2013 Budget

Operating Expenses: 139.2 million dollars

State and Federal Mandated Programs

○ 101.3 million dollars


Public Safety - Sheriff

Parks and Recreation

Emergency Services

Office of the Aging

Outside Agencies

○ Total cost: 37.9 million dollars

2013 Budget Expenses

73%

27%

2013 Tentative Expenses

Mandated



2013 Budget

Major Mandated Programs

Top 14 of More Than 200

Mandated Costs in

2013 Budget

Dept. of Social Services $17,473,539

Highway and Facilities $11,345,932

Medicaid $ 9,807,873

Jail $ 9,652,171

Pre-School $ 7,568,331

Debt Service $ 5,367,765

Health $ 5,008,049

Mental Health $ 4,809,966

Sheriff $ 4,285,729

Community Colleges $ 3,200,000

Early Intervention $ 2,158,637

Probation $ 2,013,676

Board of Elections $ 1,587,876

MTA Programs $ 1,493,079

73% of 2013 Budget is Mandated

Medicaid is the single

largest line item in the

Putnam County

Budget

Approximately 5,000

residents are

currently Medicaid

recipients

Our 9.8 million

dollars represents

the local share.

Factoring in NYS

and Federal funding,

the total is 92

million dollars!!


2013 Budget

97,500,000.00

98,000,000.00

98,500,000.00

99,000,000.00

99,500,000.00

100,000,000.00

100,500,000.00

101,000,000.00

101,500,000.00

102,000,000.00

2012 Adopted 2013 Tentative

Increase in MANDATED Expenses

2.2

million

dollars

2.2%


2013 Budget

37,000,000.00

37,500,000.00

38,000,000.00

38,500,000.00

39,000,000.00

39,500,000.00

2012 Adopted 2013 Tentative

Reduction in Expenses Related to Quality of Life Services

1.4

million

dollars

3.7%


2013 Budget

The Difference Between the Mandated Increases and the

Reduction in County Expenses Results in the Need to Increase the

Property Tax by the “True 2%”

2.2

million

dollars

2.2%

1.4

million

dollars

3.7%

Mandates Quality of Life Services


2013 Budget

A Closer Look at MANDATED

Programs

There are more than 200 NYS and Federal

mandated programs

They consume the entire property tax levy

And they also consume the majority of

Putnam County sales tax dollars


2013 Budget

Where does the Property Tax Levy

Go?

Mandated programs represent 101.3 million dollars of expense to the County

However, the County receives 29.3 million dollars in reimbursements

Thus, the net cost to Putnam County taxpayers to fund these mandated programs is 72 million dollars

This consumes 100% of the property tax levy ($38.8m) plus 66% ($33.2m) of the Sales Tax revenue ($50.6m)


2013 Budget

What is a MANDATE? A MANDATE requires Putnam County to strictly adhere

to rules set by the State and Federal governments that

define the scope, eligibility, frequency of service, and

amount of benefits provided to people within our

County

Putnam County has a very limited ability to control the

costs of State and Federal MANDATES

However, this administration is focusing on developing

working relationships with elected officials, other counties

within New York State and Albany to encourage mandate

relief


2013 Budget

What are some MANDATED programs

in Putnam County?

- Medicaid

- Temporary Assistance to Needy Families (TANF)

- Child welfare

- Food stamps

- Early intervention and pre-school education

- Child support collections

- Adult protective services

- EPA Mandated MS4 Program


2013 Budget

Annual Growth in Many of The State MANDATED

Programs Exceeded Inflation by:

Medicaid 2.5% (0% in 2015 and beyond)

Pensions („09-‟13) 31.0%

Child Welfare 2.0%

Special Ed. Pre-K 8.0%

Early Intervention 7.7%

Indigent Defense 5.5%

Probation 6.2%

Youth Detention 6.9%

In fact the increase in pension and health care costs

represent an increase of 1.2 million dollars in our

budget and consume our entire 2% tax cap by

themselves


2013 Budget

Eventually the math overwhelms any budget!

Sometimes a Picture Is Best…


2013 Budget

With the UNFUNDED MANDATE

CHALLENGE……

How did we Balance our 2013

Budget?


2013 Budget

Increasing Revenue Projections

1. Chapter 31 - sale of County owned

properties acquired by tax foreclosure

2. Sales Tax - projection increase based upon

current economic conditions

3. Putnam County Clerk Dennis Sant –

Renew Putnam Program

4. Consumer Affairs Department - Revenue

Initiatives


2013 Budget

1. No Raises and No Layoffs

2. 10% Reduction in Overtime Across the Board

3. Limited Motor Vehicle Purchases

4. Reduction in Transit Services

5. Establishing a Capital Projects Reserve Fund

6. Electric Commodity Charge Decrease

7. Office for Aging – Efficiencies and Consolidation

8. “Putnam Invests in Leaders Of Tomorrow” – PILOT Program

Decreasing Operating Expenses


2013 Budget

Increasing Revenue


2013 Budget

Chapter 31 - Sale of County owned properties

acquired by tax foreclosure

Marketing properties through the use of a real estate broker to realize the fair market value, instead of bidding at the level of tax arrears

Increase property tax base by returning properties to the tax rolls

Increase revenue to $424k by selling properties

• The assessed value of our 2008 acquired properties equals 5.3 million dollars

• The tax arrears on these properties equals 1.1 million dollars

• The $424k represents a conservative 10% of the net value


2013 Budget

Chapter 31 Continued- Sale of County owned

properties acquired by tax

foreclosure

For Example

The net proceeds of the sale of 1 residential

property could conservatively equal $250k


2013 Budget

Slight Increase in Sales Tax

Projection The 2012 budget included a projection of 49.8

million dollars

We are anticipating being 1 million dollars ahead of the 2012 adopted budgeted amount

Therefore, we included an increase of sales tax revenue of $800k or 1.6% over the 2012 budget

Other contributing factors to Sales Tax Revenue Focused solicitations for Putnam County friendly

commercial growth – re-focus on EDC

Keen attention to Tourism opportunities

Establishment of higher education facility in Putnam


2013 Budget

Putnam County Clerk Dennis Sant –

Renew Putnam Program

Increase revenue by $100k through an innovative program designed to work closer with local and regional business owners and residents to facilitate the registration of vehicles at Putnam County’s DMV in order to capture revenue that would otherwise go to New York State


2013 Budget

Consumer Affairs Department -

Revenue Initiatives

Increase revenue by $174k

Item pricing - providing the opportunity for a

waiver for a fee which allows the participant

to avoid the costs associated with item

pricing

Streamlining processes and realizing cost

savings


2013 Budget

Decreasing Operating

Expenses


2013 Budget

No Raises and No Layoffs


2013 Budget

County-wide 10% Reduction in

Overtime This provides a savings of $377k over the

2012 Adopted Budget - Contingency funds representing 2.5% are set up for

the Sheriff and Highway and Facilities

- Modification of Section 1806 in the New York State Vehicle and Traffic Law, reduces overtime in local courts

- Increased oversight of sick time and overtime use across all departments

- Full implementation of the Video Conferencing Program


2013 Budget

Limited Motor Vehicle Purchases

Increased focus on fleet management

practices

This budget proposes only:

5 replacement Sheriff vehicles for Road Patrol

1 replacement vehicle for the Sheriff Civil

Division

1 replacement for the Bureau of Criminal

Investigation


2013 Budget

Reduction in Transit Services

The transit system projected 2013 cost for Putnam

County is 4.1 million dollars

Existing five year contract with First Transit ends

December 31, 2012

- An RFP was sent out for the next five year

period and proposals included significant cost

increases

- In order to manage the cost escalation, an

evaluation of costs and usage was conducted

As a result, this budget proposes a 16% cost

reduction of the transit system equaling $650k


2013 Budget

Establish a Capital Projects Reserve Fund

For Example ONLY : Sale of 34 Gleneida Avenue

If the sale of this building were to be approved by the Putnam County Legislature, the net proceeds of the sale could be earmarked into a Capital Projects Reserve Fund of approximately $800k

- Other Benefits of Sale - Opportunity to place building back on the property tax

rolls - $20k

- Opportunity to avoid maintenance and operational costs associated with the building – $40k


2013 Budget

Electric Commodity Charge

Savings of $127k as compared to 2012 budget

- The existing contract for electric commodity is

8¢ per kilowatt-hour

- The existing market rate is about 5¢ per

kilowatt-hour

- Request For Bids for lower cost provider to

reflect existing commodity costs and all-time

low natural gas prices

Each one cent reduction equals 50,000

dollars in taxpayer savings


2013 Budget

Office For Aging – Efficiencies and

Consolidation

Reduced costs of $336k

Out-station buses in Putnam Valley

Kitchen operations consolidated to Mahopac’s

Koehler Senior Center

Partnering with the Sheriff to rebid the Food

Contract to reduce the food lines and enhance the

quality of meals


2013 Budget

“Putnam Invests in Leaders Of Tomorrow”

P.I.L.O.T.

This initiative establishes a program to provide Putnam County high school and college students the opportunity to work during the summer

- Provides key opportunities that help the current and future employment of our youth

- Provides an opportunity to evaluate local talent for future positions within Putnam County government

- This program creates a cost effective workforce and helps build a succession plan


2013 Budget

Outside Agencies – No Funding Cuts!

For Example: Putnam Humane Society, Libraries, Museums,

Cornell Cooperative Extension, etc.

Maintain level funding

Libraries – $18k or 3% increase on 2012

adopted budget

This is in recognition that there are increased

requirements being placed on our libraries as

unemployment levels remain high with

continued uncertainty in the near future


2013 Budget

Opportunities – Looking Toward

the Future

• Risk Management Initiatives

• Return to Work Program – Worker’s

Compensation

• Private Public Partnership – Higher Education

Facility

• Dutchess Community College –The County cost

per student increased 55% since last year

• Westchester Community College – The County

cost per student increased 10% since last year


2013 Budget

Opportunities – Looking Toward

the Future • Consolidation with other municipalities and

county governments

• Chapter 31 – Sale of 2009 Properties

• Tourism Initiatives such as • Hill Agor Farm – “Farm to Table” concept

• Managing Jail Costs • Drug Court Coordinator – Board in

revenues/Board out expenses

• Video Conferencing


2013 Budget

Future Risk Sales Tax Extension

The 1 percent additional sales tax expires effective

11/30/2013

Consequences if not renewed by the NYS Legislature

We will lose 1.2 million dollars for December 2013

We will lose approximately 14.4 million dollars in 2014

revenues

In summary, the loss of this revenue would result in

massive service cuts and/or a property tax increase

of up to 36%


2013 Budget

Future Risk, Cont’d

Severely decrease quality of life programs

Increase program fees

Deplete the general fund surplus

Raise property taxes

The State and Federal reimbursements from

mandated programs are DECREASING

While the number of participants and costs are

INCREASING which will require Putnam County to:


2013 Budget

Summary of Proposed Budget

Proposed 2013 budget – $139.2m

An increase of $794k over 2012 adopted budget or a ½ of one percent increase - Includes a 2.2 million dollar(2.2%) increase to meet NYS/Federal

unfunded mandated program expenses

- Includes a 1.4 million dollar reduction in Putnam County spending or a decrease of 3.7%

- General Fund Surplus allocation of 3.9 million dollars, using $600K less than the 4.5 million dollars budgeted in 2012

This budget represents a “True 2%” property tax increase ($761k) used solely to fully fund those mandates imposed by New York State and the Federal Government

putnam county 2013 budgetputnamcountyny.com/wordpress/wp-content/uploads/2012/05/...2012/10/03 ·...

Documents