Sales tax increases, helps 2016 budget

SCHUYLER COUNTY--The preliminary 2016 Schuyler County budget figures show an overall increase in both expenditures and revenues from 2015. While the budget currently shows a tax levy increase of 0.67 percent, residents will be seeing a 0.75 percent reduction in their tax rate. County Administrator Tim O'Hearn said for the first time in four years, he was able to budget an increase in sales tax. He said this is based on 2015 trends and the anticipation of another music event at Watkins Glen International in 2016. The county's total 2016 revenue is projected to be $34,322,161. This is a $1,283,569 increase from 2015's $33,038,592, or 3.89 up.
"Sales tax collections currently are on track to exceed the 2015 budget but it is expected that the third quarter results will either support or refute this estimate for 2016," O'Hearn said. "This number should be revisited once third quarter receipts are known. If we experience a significant increase, it may be possible to consider adding revenue in this line. Should there be a drop, additional discussions may be needed concerning lowering this projection. 2016 marks the first year of the revised sales tax sharing agreement with municipalities. At the current budget projection this represents an additional $80,000 in revenue compared with prior formula."
The total budget in 2016 is $45,377,604, up 3.08 percent from 2015's $44,020,925. One such increase came in the county's highway budget. The 2015 budget represented an increase in highway investment of $1.1 million and utilized both capital project and machinery reserves in doing so. This reversed the trend of highway cuts in the previous five years and helped to restore some of the county's highway infrastructure. In 2016, O'Hearn proposed an additional increase in highway spending of $756,434 to continue the progress that has been made.
However, he noted of this amount, $500,000 is earmarked for bridge replacement and two road projects proposed by highway superintendent totaling $625,000 have been cut. O'Hearn said should sufficient revenue enhancements or spending reductions be adopted as part of the budget process, he recommends the restoration of one road project be considered.
The county also saw a decrease of $200,000 from 2015 budgeted amount. This decrease is compounded with the last installment payment being made this year toward the 20 year retirement plan for road patrol deputies.
The 2016 budget once again does not rely on the use of fund balance.
"The legislature and county staff have made a concerted effort over the past three years to control expenses and work toward restoring fund balance," O'Hearn said. "While the comptroller's recent review and upgrade of county finances from severely distressed to no rating certainly reflects the progress that has been made, I continue to recommend that consideration be given to further increasing fund balance when deliberating any potential budget reductions. I would suggest a goal of a $1 million dollar increase to be achieved by fiscal year 2017."
O'Hearn noted the sheriff road patrol budget reflects a reduction of revenue of $95,000 per the contractual agreement with Watkins Glen International (WGI) to incentivize additional events like this year's Phish concert, which brought additional sales tax revenue to the county. He said WGI will receive the full credit for this year's law enforcement personnel costs associated with the NASCAR race in 2016 and next year's sales tax projection has been increased to reflect this as well.
O'Hearn also said the corrections contract was settled in 2015 and included retroctive pay for 2014. He noted this is the only settled CBA and the salary line reflects actual salaries. All that being said, the total increase for the sheriff is 2.4 percent.
O'Hearn said mental health clinic revenues coupled with increased federal aid have resulted in a projected decreased local share of $192,000. He mentioned mental health continues to improve its fiscal health and "is a significant positive influence on the 2016 budget." O'Hearn noted the budget reflects the elimination of one full-time position and anticipates full staffing and corresponding revenue from the same.