COMMITTEE ON BUDGET AND APPROPRIATIONS

MINUTES

MAY 5, 1997

1:30 P.M.

B & A MEMBERS: Wishnie, Swanson, LaMotte, Darcy, Delfino, Abinanti

OTHERS: C.E.’s Office: Gina Angiulo-IGR; Budget Department: Joe Phelan-Budget Director, Tom Coleman, Leslie Bennett; Finance: Commissioner Langeloh, John Waltman; DEF: Bob Matarazzo; PRC: Dave DeLucia, John Condon; CBAC: George Hosey, Barbara Strauss; LWV: Anne Nelson; BOL: Legislator Carsky, Robert J. Boland-Budget Analyst, Glenn Guzi-Program Specialist, Tina Seckerson- Secretary to Committee

Co-Chairs Wishnie and Swanson called Budget & Appropriations Committee meeting to order at 1:45 p.m.

DISCUSSION: (There is a cassette tape on file for more detailed information)

On motion of Legislator LaMotte, seconded by Legislator Darcy, the motion to approve the Minutes of April 28, 1997 was carried by a vote of 6-0.

AGENDA ITEMS:

On motion of Legislator LaMotte, seconded by Legislator Swanson, the motion to Receive and File items 11, 12, & 13 was carried by a vote of 6-0.

11. HON. LOIS BRONZ AND HON. JOSEPH DELFINO: Forwarding a copy of a

letter from the Mayor of White Plains reaffirming the City’s desire to be the

host community for the County Health Department. (4/7/97)

12. HON. LOIS BRONZ: Forwarding twelve letters from citizens urging the County to find a central location for the Health Department. (4/7/97)

13. HON. LOIS BRONZ: Forwarding an informational package sent to all Legislators on the proposed Health Department move. (4/7/97)

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33. COUNTY EXECUTIVE: Proposed legislation authorizing the County to participate in the New York State Environmental Facilities Corporation Revolving Loan Program and to secure a fifty percent subsidy in the interest payments on various projects. (4/21/97)

• Commissioner Langeloh explained that this legislation will allow them to refund borrowings for the districts borrowings that were done in the years 1992 through 1995. This is the second time that the County will have availed itself of the Environmental Facilities Corporation Revolving Loan Program which is a federally sponsored program that allows the County to take advantage of a 50% interest subsidy. We did this in 1991, in a somewhat smaller amount of about $5.1 million and saved over half a million dollars by refunding the outstanding principle on those bonds. What they are recommending in the legislation is a refunding in the amount of approximately $15 million with a gross aggregate savings on the outstanding bonds of approximately $3 million, a net present value savings of a little less than $2 million. The program detailed in the legislation involves a number of sewer districts. In the majority of these projects most of the work has effectively been completed but the financing is outstanding and if we take advantage of this we will see effectively debt service savings in a number of sewer districts going forward.
• Commissioner Langeloh explained that there is federal money out there that the state is able to take advantage of, which passes down to the county for water pollution control programs. We get a 50% interest subsidy on the refunding if we go into the pool of environmental facilities to refund our pieces of what we borrowed back from 1992 - 1995.
• The savings will be reflected in the operating budgets of the sewer districts.
• Mr. Darcy asked if Environmental Facilities has come up with any kind of a future picture that would incorporate what the savings will be used for. Mr. Matarazzo stated that they have a 5 year capital budget. Mr. Darcy stated that this windfall was not necessarily factored into the capital budget.
• Mr. Abinanti inquired as to whether there is a maximum on the amount that can be refunded. Commissioner Langeloh stated that they have to be eligible projects under a particular set of criteria. Mr. Abinanti asked if we are limited by the state as to the amount we can use. The Commissioner responded that we are limited in terms of what is outstanding against our debt with regard to particular types of water pollution control. Mr. Abinanti asked if it has to outstanding debt or can it be new debt? The Commissioner stated that we recently did, based on previous bonds authorized by this group, new financing through them in the amount of $20.5 with the same 50% interest level. We are doing this in two pieces, we have already taken advantage of new debt funding.

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• Projects are basically related to water pollution and water quality. Mrs. LaMotte asked, what about water shed? Mr. Langeloh stated that he was not sure. Mr. Waltman stated that we submit projects to the Environmental Facilities Corporation, they evaluate them and rate them on what they consider an importance basis. There are a number of projects which they will not fund in a given year because the projects don’t met the threshold set.
• Mrs. Swanson asked if there is an up front payment or surcharge when redeeming the bonds. Commissioner Langeloh explained that there is no direct up front payment to the operating budget. Mr. Waltman explained that it is within the borrowing covenant of resources. We do have a right to redeem most of these bonds at a premium at certain dates. Funding analysis determines which is more advantageous to the county, to redeem them early, or to allow them to continue without any redemption. To date, the analysis indicates that it is better for the county to not redeem the bonds. This would then be considered an advanced refunding - the bonds are still with the bond holders, there is an escrow account which is placed by the Environmental Facilities Corporation - that we cannot touch - it is contractually obligated to pay all of those bills.
• Mr. Abinanti asked what this does to our bond rating. Mr. Waltman replied that if anything, it would help it because we are saving money that we would not otherwise save.
• Mr. Abinanti asked who evaluates the bank to be used. Mr. Waltman stated that the bank is scrutinized by the Environmental Facilities Corporation.

On motion of Legislator Delfino, seconded by Legislator LaMotte, the motion to approve this item was carried by a vote of 6-0.

32. COUNTY EXECUTIVE: Authorizing various petty cash/change funds for various departments within the County. (4/21/97)

• Questions to be answered by Finance Department before taking any action.

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29. COUNTY EXECUTIVE: Proposed Act authorizing the County to grant a

license to Toll Brothers, Inc. to construct and operate a sewer main across a portion of the Maple Moor Golf Course and to grant a perpetual easement to the City of White Plains to operate and maintain the sewer main upon its completion and upon its conveyance to the City by the County. (4/21/97)

• The Committee was provided with an amended Committee Report and Act which includes a provision requiring that Toll Brothers, Inc. deliver to the County a performance bond in the amount of $328,000.
• Mr. DeLucia informed the Committee that they have been working with the White Plains Public Works and Planning Departments with regard to this for 6 months.
• Mr. Delfino expressed his concern that there is nothing from the White Plains City Council on this matter.
• Mr. Delfino informed the Committee that he is awaiting a fax from the City of White Plains on this matter.
• The Committee expressed concern that there is no easement agreement with the City of White Plains attached.
• The Committee agreed that if the easement agreement is not received before this evening’s Board meeting, the item will be recommitted.

On motion of Legislator Delfino, seconded by Legislator Abinanti, the motion to approve this item was carried by a vote of 6-0 with Legislators Swanson, Delfino, LaMotte, Darcy and Abinanti signing "Without Prejudice".

14. COUNTY EXECUTIVE: Proposed Act authorizing the County to enter into

IMA’s with cities, villages, towns and fire districts in Westchester for the operation of a computer aided dispatch and records management system and the provision of related equipment, computers, software and services. [ON FILE] (4/7/97)

• This item was signed out by the Committee on Public Safety and Criminal Justice on April 29th.
• Mr. Abinanti expressed his concern that we are giving blanket authority - the communities are not even listed. He stated that according to the Charter the BOL gives authorization for IMAs and this is not an IMA. He requested the Committee get an opinion (in writing) from the County Attorney on this.
• Ms. Angiulo stated that the County Attorney’s Office drafted this legislation.

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• Mrs. Swanson asked when the warranty starts. Mr. Wishnie stated that it is in writing that the warranty starts on the day they are installed.
• Mr. Darcy stated that every municipality would be welcome on board. It is up to the individual municipality to join.
• Mr. Abinanti made a motion to change the language in Section 2. There was no second to the motion.
• Mrs. Swanson stated that she realizes the importance of the legislation but feels that Mr. Abinanti has a valid point that needs to be addressed.
• The Committee will send a memo to the County Attorney requesting an opinion.

On motion of Legislator Darcy, seconded by Legislator LaMotte, the motion to approve this legislation was carried by a vote of 4-2 with Legislators Abinanti and Swanson being recorded in the negative and Legislator Delfino signing without prejudice.

• Mr. Phelan stated that the context with which the quarterly projections are done is to sort out issues and problems from time budget was adopted and first quarter with a goal of solving the problems.
• Based upon what is known about the state budget, the losses in state aid have been calculated into the forecast.
• The projected $8 million shortfall at WCMC was based upon a $3 million loss in state aid. The loss in state aid could go as high as $10 million which could mean an $18 million shortfall at WCMC.
• Mr. Phelan informed the Committee that we are looking at a potential problem with the baseline number for OT. Mr. Abinanti requested a breakdown of the potential $3.6 million shortfall in OPS.
• Inter-Departmental Charge: Potential savings of $5 million. Mr. Phelan stated there is a corresponding loss of $6 million.
• Projecting $1 million over in sales tax and $300,000 over in hotel tax.
• Public Safety Dept: Potential shortfall of $799,969. Mr. Abinanti pointed out that the 5 officers approved by the BOL have not yet been hired. Mr. Phelan stated that $250,000 is for the unfunded contract. Mr. Darcy requested a breakdown of how much is for overtime. He further stated that he would be interested in hearing from the Commissioner of Public Safety as to how he will be able to operate with 5 less officers.
• County Clerk’s Office: projected to hit target.

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Mr. Phelan suggested the Committee go into Executive Session to discuss both the Inter-Departmental Charges (specifically dealing with computers - pending Info Systems Litigation) and negotiations with the FAA.

On motion of Legislator Abinanti, seconded by Legislator LaMotte, the Committee went into Executive Session at 3:45 p.m.

On motion of Legislator Abinanti, seconded by Legislator Darcy, the Committee came out of Executive Session at 4:20 p.m.

There being no further items for discussion, on motion of Legislator Darcy, seconded by Legislator Abinanti, the meeting was adjourned at 4:20 p.m.