Fulton County trims tax increase

Board reduces spending, uses fund balance

By MICHAEL ANICH/The Leader-Herald

JOHNSTOWN - The Fulton County Board of Supervisors Monday pared down the county's tentative average 22 percent tax-rate increase for 2009 to 8.7 percent.

The board applied $3 million from the county fund balance to the proposed $100 million budget and made a series of small cuts in appropriations.

When their three-hour budget workshop was over at the County Office Building, supervisors vowed to look at further cuts when they meet again at 1 p.m. Monday.

As part of that session, a public hearing on the budget also will be conducted at 2 p.m.

After going through the tentative budget line by line, supervisors discussed whether to designate traditional capital project reserve money toward highway projects. The board by that time, however, had only 14 of 20 members present and decided to take up the roads issue again Monday.

Kicking off Monday's session, county Budget Director Alice Kuntzsch told the board the Finance Committee recommended applying $3 million from fund balance to the tentative 2009 budget she released Nov. 10.

The board later voted to use the money to lower the tax rate.

"We all thought it would be a safe figure to use," Kuntzsch said.

She said County Treasurer Bruce Ellsworth estimated $18 million might be in the county's fund balance by the end of the year.

Kuntzsch and others during Monday's workshop alluded to the state Legislature reconvening in Albany to go over Gov. David Paterson's proposed state budget cuts. The reductions may or may not have an effect on the county budget, county officials said.

"I'm not really thinking too much will come out of [today's] meeting," Kuntzsch said.

Gloversville 4th Ward Supervisor Anthony C. Buanno said he's been fielding calls from constituents asking him how he thinks the state's budget decisions will affect county taxpayers.

"Fulton County is not alone," Buanno said. "There's 57 counties looking to know what's going on, too."

Broadalbin Supervisor Lee Hollenbeck, chairman of the Finance Committee, said the state could adjust Fulton-Montgomery Community College tuition upward while cutting state aid to the college.

Hollenbeck told Buanno, "It's like me playing golf, Chart. Close your eyes and swing."

Board Chairman Michael Rooney said the county can't wait on the state while it assembles its local spending plan.

"We have to just move forward," Rooney said. "We have to get this done. We can't panic."

The board spent most of the session making $86,700 in cuts that, coupled with cuts in capital projects and the addition of the fund-balance money, decreased the proposed average tax-rate increase for 2009 to 8.7 percent.

The proposed county tax levy for next year now is $24.59 million, with the average tax rate being $10.61 per $1,000 of assessed value. The current average tax rate is $9.76 per $1,000.

Some of the cuts in the tentative budget included $2,000 from the Fulton County Public Defender's Office, $4,500 from uniforms for communications office personnel in the Sheriff's Department, $10,000 in vehicle maintenance for the county jail, $18,000 from the Planning Department and $5,000 in Certified Home Health Agency overtime.

County Administrative Officer Jon R. Stead warned board members not to cut too much from agencies connected with the court system such as the public defender because there may be court-ordered expenses the county has no control over.

"This is what you do in the eighth inning [of the budget process]," said Gloversville 3rd Ward Supervisor Michael Gendron.

"You're not going to find an awful lot of waste or fat in this budget that you can deal with," Hollenbeck said.

In the capital project area, the board approved cutting about $45,000 that had been earmarked for one patrol car and an investigator's vehicle in the Sheriff's Department.

Johnstown 1st Ward Supervisor Richard Handy noted capital projects for next year contain funding for a salt storage area, but suggested the county revisit a previous plan with the city of Johnstown.

"This would be a perfect time for a shared service," Handy said.

Gendron said the county has not entertained a "formal request" from the city of Johnstown to assist with salt storage needs.

The board also discussed whether to consider a plan to have county Highways & Facilities Superintendent Mark Yost use only $860,000 in possible Consolidated Highway Improvement Program funding for road projects.

The county in recent years has dedicated tobacco settlement money to reserves to help pay for road reconstruction projects during any given year.

Mayfield Supervisor Alan McLain said the county shouldn't go back to prior years when all that was used was CHIPs money and roads were neglected.

"I think we ought to think it through," McLain said.

The board also talked about dedicating tobacco reserves to something else to help balance the budget.

"I really think it's a downfall to do that," Stead said. "It's not even good business practice."