County budget gets cut to keep taxes down

[gonerail]

LITTLE VALLEY - The Cattaraugus County Legislature's Finance Committee approved changes to the 2008 county budget Thursday that cut the proposed 6.6 percent tax levy increase to 4.2 percent.

If approved by the full County Legislature on Tuesday, the changes will bring the full value tax rate down by 3.5 percent instead of a 1.3 percent decrease - to $12.23 per $1,000 - as proposed Nov. 7.

Committee members also approved a $35,000 increase in the county's contribution to the Cattaraugus County/Olean Airport above the $25,000 contained in the tentative $194.9 million budget for 2008.

County Legislator Jerry E. Burrell, R-Franklinville, chairman of the Development and Agriculture, asked for the increase. It will not come from the tax levy, but from the county's bed tax.

The biggest change approved by the Finance Committee came from removing from the budget $887,500 to purchase heavy equipment for the Department of Public Works. It will instead be paid for out of the county fund balance, or surplus.

Finance Committee Chairman Michael O'Brien, R-Portville, said he was comfortable with the move.

"We (leadership) wouldn't have recommended it if we thought it would jeopardize our bond rating," he said.

Moody's bond rating of the county stands at an envious A3, and the financial services company "believes the county's financial condition will remain satisfactory," Mr. O'Brien said.

The surplus currently stands at $16.7 million.

"It's difficult we don't have a good fund balance," Mr. O'Brien said, but the state (auditors) recommend two to three months of expenses. We have about one month," he said, adding that it is more than many counties in the state.

Mr. O'Brien said it is expected that at the end of the year, the county's fund balance will be restored to current levels.

This year's tentative budget was hamstrung by a more than $2 million increase in the county's self-insured health insurance plan and higher workmen's compensation premiums.

The tax levy, or amount to be raised by local property taxes was pared back to the 2007 level - $41.2 million from the $43.9 million originally proposed by County Administrator Jack Searles.

The tax levy, or amount to be raised by local property taxes was pared back to the 2007 level - $41.2 million from the $43.9 million originally proposed by County Administrator Jack Searles.

Mr. O'Brien said he sees the airport off Route 16 in the town of Ischua as an economic development tool for county businesses, and approved of Mr. Burrell's bid to increase the county's contribution.

The city had initially asked for $75,000 to help pay for its share of a $650,000 project to replace the fuel tanks at the airport.

The only request to the Finance Committee for an increase came from Catherine Way, executive director of the Chautauqua-Cattaraugus Library System, which like other contract agencies, isn't due to see an increase in its $85,524 contribution under the tentative budget.

Ms. Way has come under criticism for reducing some Bookmobile stops in Olean and other parts of the county in response to the county refusing to increase its annual grant.

Other changes approved by the Finance Committee included taking $35,000 from a $145,000 fund that comes from the county bed tax for chambers of commerce across the county.

Also, the county treasurer increased estimated revenues from county investments by $53,000 to $404,500. Another $30,000 was added to the estimated $150,000 in debt service interest.

[Linda_D]

Here we go again! Another poor, backwards Southern Tier county not only manages without a state control board, it gets an A3 bond rating from Moody's -- and its taxpayers get a small tax decrease! I bet the County Administrator drives himself to and from the County Building in Little Valley!!!