2018 Preliminary Budget For Board Review 1) Have a balanced budget - - PowerPoint PPT Presentation

2018 Preliminary Budget For Board Review

1) Have a balanced budget using reasonable revenue and expense expectations. 2) Other than in exigent circumstances adhere to the tax cap. 3) Maintain a NY State Comptroller's rating of "not in fiscal stress.“ 4) Remain debt free. 5) Maintain a minimum of $15,000,000 general fund surplus (i.e. not

• therwise earmarked). The estimated current surplus balance is about

$18.000.000 6) Over the course of the next four years, reduce the application of General Fund surplus applied to the following year's budget to $1,500,000 (< 2% of the General and Social Services budgets).

.

1)

Under the tax cap for the seventh straight year - of $498,000 by about $10,000. Meeting the CAP will allow for state reimbursement of “Raise the Age” Costs.

2)

The average tax rate increases by $.16/$1,000 of assessed value or 1.18% from 2017 (about $15.00 per average residence). Individual town rates will vary depending on equalization rates and assessed value totals.

3)

Taxable values are up eight-tenths (.82%)of one percent.

4)

The County remains debt free.

5)

Maintains a NY Comptroller's rating of "not in fiscal stress”.

6)

Maintains our repaving and equipment replacement programs for the County Road system.

7)

For the first time in many years, increased interest rates on invested funds has provided a significant benefit to revenue.

8) Traffic Diversion Program revenues will help in the reduction of

property taxes.

9) We are now operating a school based Mental Health Service in the

Norwich, Otselic Valley and Oxford School Districts. We have applied to open a clinic at Chenango Memorial Hospital.

10) Our self funded health plan has a 2018 cost increase of just 3.7%

compared to the national average of 4.3%.

11) All 2017 programs are continued in 2018. 12) Spending is up $791,000, up .88% from 2017’s 89.5 million spending

level and only 4% from 2013.

13) Revenues, continue to be at very at robust levels. 14) Lessens the application of 2017 General Fund Surplus toward

reducing the 2018 budget by $150,000 to $1,900,000. This is the seventh consecutive reduction from the $3,683,000 applied to balance the 2011 budget.

15) Positions us to reduce the application of General Fund surplus by

$150,000 per year over each of the next three years to reach a target application of $1,500,000 .

16) Nearly 40% of our local real property tax levy of 25 million goes to

Albany to support Medicaid.

Notes: A) Subject to Board of Supervisors action/revision B) Subject to minor adjustments until public filing date of 11/15/17

• Year end Fund Balance

(50%)

• Operating Deficits (10%)
• Cash position (20%)
• Short term debt (10%)
• Fixed costs (10%)

Chenango County Fiscal Score (Weighted)

COMPARING UPSTATE NEWYORK’S JOB GROWTHWITH THE REST OF THE U.S.

TAX FOUNDATION

Top Ten Worst 2018 State Business Tax Climate Index Ranks and Component Tax Ranks

Overall Rank Individual Income Tax Rank Sales Tax Rank Property Tax Rank Unemployment Insurance Tax Rank

New Jersey 50 48 46 50 36 New York 49 49 43 47 30 California 48 50 41 13 13 Vermont 47 44 16 48 18 District of Columbia 47 43 34 45 30 Minnesota 46 45 25 28 37 Ohio 45 47 30 11 8 Connecticut 44 37 27 49 19 Maryland 43 46 18 42 24 Louisiana 42 27 50 30 4

Note:A rank of 1 is best. 50 is worst. Rankings do not average to the total. States without a tax rank equally as 1. D.Cs score and rank do not affect other states. The report shows tax systems as of July 1, 2017 (the beginning of Fiscal Year 2018). Source: Tax Foundation. "2018 State Business Tax Climate Index" https://statetaxindex.org/

Labor Force Trends In NewYork State

Excerpts from NYS Comptroller’s Report September 2017

• Throughout the State, change in the labor force has been uneven.While the Long

Island and New York City regions saw increases in the last five years, the rest of the State experienced declines, as shown in Figure 4.The Hudson Valley labor force count was essentially unchanged. Four upstate regions saw particularly significant declines of more than 5 percent, including a drop of more than 8 percent or nearly 27,000 workers in the Southern Tier. While the Southern Tier’s unemployment rate decreased by almost three percentage points, its number of employed workers fell by over 5 percent.

Population aged 16 to 24 years exhibited no growth over the past five years, with only a slight increase in the number of workers in this age group. Similarly, for the age groups that represent the largest shares of the labor force (those aged 25 to 64 years), combined growth in the population and the number of workers was very small, including a decline among those in the 45-64 age group.

Labor Force Trends In NewYork State

Labor Force Trends In NewYork State

Every region in New York had significant growth in the population aged 65 and over, with the population in this group the only one growing in many of the regions.While the downstate regions realized growth in three of the four age groups, there were no regions that exhibited growth across all ages.

In five of the State’s 10 regional labor markets (all upstate), the number of people working was smaller in 2016 than five years earlier. Continuing shrinkage of the workforce in regions of New York that have experienced such declines in recent years poses challenges to achieving overall economic growth in these areas and ensuring the long-term vitality of local communities.This trend could also result in fiscal and budgetary issues for the State and local governments.

50 55 60 65 70 75 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Percent Exhausted

Chenango County Constitutional Tax Limit 10Year Comparison of Percent Exhausted

10.0 10.5 11.0 11.5 12.0 12.5 13.0 13.5 14.0 14.5 15.0 15.5 16.0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Tentative Tax Rate Per Thousand Year

Chenango County 10 Year Tax Rate Comparison

Tax Cap Imposed Tax Cap Imposed

15 15.5 16 16.5 17 17.5 18 18.5 19 19.5 20 20.5 21 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Tentanive Millions Years

1.500 1.550 1.600 1.650 1.700 1.750 1.800 1.850 1.900 1.950 2.000 2013 2014 2015 2016 2017 Billions

73 74 75 76 77 78 79 80 81 82 83 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Millions Year

Chenango County TenYear Comparison Of Actual Expense To Revenue General Fund

Revenues Expenses

$0 $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,000 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Applied Fund Balance Appropriation Of Surplus During The Fiscal Year

Culture And Recreation 0.16% Economic Assistance 30.52% Education 1.45% Fringe Benefits 12.39% General Government 6.92% Health 11.71% Home And Community Svces 3.56% Public Safety 12.27% Transportation 21.02%

CHENANGO COUNTY 2018 TENTATIVE BUDGET APPROPRIATIONS CHENANGO COUNTY 2017 ADOPTED BUDGET APPROPRIATIONS

Culture And Recreation 0.16% Economic Assistance 30.07% Education 1.48% Fringe Benefits 12.51% General Government 7.00% Health 11.32% Home And Community Svces 3.68% Public Safety 12.63% Transportation 21.16%

CHENANGO COUNTY APPROPRIATION COMPARISON

CHENANGO COUNTY 2017 ADOPTED BUDGET REVENUES CHENANGO COUNTY 2018 TENTATIVE BUDGET REVENUES CHENANGO COUNTY REVENUE COMPARISON

Real Property Taxes, 27.60% Sales Tax, 15.92% Other Tax Related Items 2.37% Departmental Income, 20.02% State Aid, 16.28% Federal Aid, 12.96% Other, 1.82% Applied Surplus, 3.03% Real Property Taxes, 29.57% Sales Tax, 15.90% Other Tax Related Items 2.37% Departmental Income, 19.60% State Aid, 15.52% Federal Aid, 12.29% Other, 1.79% Applied Surplus, 2.96%

CHENANGO COUNTY 2018 PROPERTY TAX RATE DISTRIBUTION

CHENANGO COUNTY 2018 TENTATIVE BUDGET HOW THE COUNTY TAX LEVY IS DISTRIBUTED BASED ON AVERAGE TENTATIVE COUNTY RATE FOR EVERY ONE THOUSAND DOLLARS IN TAXABLE FULL VALUE Economic Assistance $ 6.70 Public Safety $ 2.18 County Roads & Transportation $ 2.54 General Government $ 0.39 Health $ 0.88 Education $ 0.41 Home & Community Services $ 0.42 Economic Development $ 0.05 Culture & Recreation $ 0.05 AVERAGE COUNTY RATE PER THOUSAND $ 13.62

Culture & Recreation 0.37% Education 3.01% Economic Development 0.36% General Government 2.88% Home & Community Services 3.04% Health 6.45% Public Safety 16.02% County Roads & Transportation 18.66% Social Service Programs 49.21%

CHENANGO COUNTY TRENDS OF STATE SIN TAX REVENUES THAT OFFSET MANDATES

50000 100000 150000 200000 250000 300000 350000 400000 450000 500000 550000 600000 650000 700000 750000 800000 850000 900000 2013 2014 2015 2016 2017 OFF TRACK BETTING TOBACCO SETTLEMENT VLT TRIBAL COMPACT

Est.

Note: a one time Tobacco NPM adjustment of 729K was received in 2016 in addition to the regular payment.

Counties in New York differ greatly from other local governments across the state due to the large number of state programs counties must administer and fund with local

• resources. Counties are required under New York State law to implement and finance

more than 40 state defined and controlled programs including: Medicaid Public assistance for adults and families Indigent criminal defense legal services Child welfare, Preschool special education...and dozens more. In most states, counties are not required to pay for these types of programs to the same degree as counties in New York. In return for administering and paying for these mandated services, the State partially reimburses counties, but the shortfall is made up by county property taxpayers.

 Mandated programs require a county to strictly adhere to rules set by

the state, which define the scope, eligibility, frequency and level of service, amount of benefits, etc. The State also controls the levels of funding participation for these mandated programs Counties have virtually no ability to control the cost of these state dictated mandates.



According to NYSAC, over the next several years the State will implement state tax rebate check programs and tax breaks for select special interest groups and industrial sectors, not including STAR, that will exceed $3 billion on an annual basis – none of which will actually reduce any homeowner’s or small businesses’ property tax bills. New York State has required county taxpayers to finance with local property taxes dozens of state mandated programs that, for the most part, other states do not finance through property taxes. We believe that one of the best ways to improve New York’s economic climate and competitiveness is to not just to slow the rate of growth in property taxes, but to actually lower them from today’s levels.We believe that aligning the cost of the state’s mandated programs with the State Government, that defines and controls them, will result in an historic and sustainable reduction in county property taxes and create a more appropriate and equitable distribution of program costs.

 Combined, the following ten mandated programs make up 83.48% of the

tentative County tax levy for 2018 compared to 84.69% in 2017.

$9,600,000 $9,700,000 $9,800,000 $9,900,000 $10,000,000 $10,100,000 $10,200,000 $10,300,000 $10,400,000 2014 2015 2016 2017 2018

CHENANGO COUNTY MEDICAID COSTS

$0 $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 2013 2014 2015 2016 2017 2018

CHENANGO COUNTY TEMPORARY ASSISTANCE FOR NEEDY FAMILIES COSTS

$0 $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 $700,000 $800,000 $900,000 2013 2014 2015 2016 2017 2018

CHENANGO COUNTY SAFETY NET COSTS

$0 $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 $1,400,000 $1,600,000 $1,800,000 2013 2014 2015 2016 2017 2018

CHENANGO COUNTY CHILDWELFARE COSTS

$430,000 $440,000 $450,000 $460,000 $470,000 $480,000 $490,000 $500,000 $510,000 2013 2014 2015 2016 2017 2018

CHENANGO COUNTY INDIGENT DEFENSE COSTS

$850,000 $900,000 $950,000 $1,000,000 $1,050,000 $1,100,000 $1,150,000 2013 2014 2015 2016 2017 2018

CHENANGO COUNTY PRESCHOOL EDUCATION AND EARLY INTERVENTION COSTS

$340,000 $345,000 $350,000 $355,000 $360,000 $365,000 $370,000 $375,000 $380,000 $385,000 $390,000 2013 2014 2015 2016 2017 2018

CHENANGO COUNTY PROBATION COSTS

$0 $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 $1,400,000 $1,600,000 $1,800,000 2013 2014 2015 2016 2017 2018

CHENANGO COUNTY CORRECTIONAL FACILITY COSTS

$0 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 $3,500,000 $4,000,000 $4,500,000

2013 2014 2015 2016 2017 2018

CHENANGO COUNTY NYS RETIREMENT FUND COSTS

EST

200000 400000 600000 800000 1000000 1200000 1400000 2014 2015 2016 2017 2018

COMMUNITY COLLEGE CHARGEBACKS

General Charges High School Charges

EST PER BUDGET

EST