Tompkins County Receives Clean Fiscal Audit
Representatives from Insero & Co. issued “unmodified opinions” for audits of Tompkins County’s financial statements, internal controls, and compliance. The unmodified opinions are “clean” and “require no modifications” according to the auditors. The audit also looks at how the County receives and expends State and federal funding, much of which is related to transportation expenses for Tompkins Consolidated Area Transit (TCAT). No issues or concerns were reported to the County’s management and the auditors remarked that Tompkins County came in under budget for expenditures in 2023, with no specific line item being over-budgeted in that year. By a vote of 11-0 the Legislature accepted the audit (Legislators Shawna Black (D-Ithaca), Travis Brooks (D-Ithaca), and Veronica Pillar (D-Ithaca) excused).
Legislature Hears Fund Balance Update in Advance of 2025 Budget Development
Tompkins County Administrator Lisa Holmes presented the Legislature with an update on the County’s current fund balance situation. It is the County’s policy, as set by the Legislature, to hold a dollar amount equal to 25% of the prior year’s expenses in unassigned fund balance (currently $48.7 million based on 2023 expenses). The policy was updated in 2023 to increase the required target fund balance from 18% to 25%, and it states that if a portion of that balance is spent, the Legislature is required to have a plan to replenish those funds. Additionally, over the past year the Legislature has established and funded several reserve funds to address any unanticipated expenses and cover certain debt payments.
In its annual budget process, Tompkins County has historically used unassigned fund balance above what is held in reserves or required by policy to pay for one-time initiatives. Holmes reported that because of the 25% target fund balance and the funded reserves, there is no excess undesignated fund balance available for use in the upcoming 2025 budget process.
Holmes stated that the County’s efforts to budget accurately and accumulate appropriate amounts of fund balance are working. Holmes reiterated that the County is in a strong financial position, with funds reserved in case of emergency and for priority areas. Holmes spoke about the challenges posed by funding one-time initiatives with fund balance; budgeting accurately leads to less available surplus beyond what is needed for the base budget and required reserves. Holmes informed the Legislature that for the upcoming budget process, funding from designated reserves will be maximized to enable a limited number of one-time initiatives to be considered for funding. She plans to deliver a recommended budget within the 4.45% tax levy increase cap (set by New York State) as well as a version of the budget based on a 2% levy increase as requested by the Legislature earlier this year.
Several Legislators discussed the fact that this information, arrived at through the audit process, is based on a snapshot of financial information. Legislator Rich John (D-Ithaca) spoke about variables that may lead to a difference in the actual revenues in 2024 asking about how those variables factor into budgeting. Holmes responded that while factors are tracked closely, accurate predictions are difficult to make outside of the audited financial statements. Legislator Greg Mezey (D-Dryden) asked whether the designated reserve funds will be used to cover expenses, arguing that the deficit is more related to timing than true financial position. Holmes shared that the use of designated funds is an ongoing discussion, and that more information will come throughout the budget process.
Legislator Randy Brown (R-Newfield) said that “some of our fund balance issues are self-imposed” remarking on how the Legislature upped the required fund balance from 18%-25%. Legislator Deborah Dawson (D-Lansing) responded, after detailing how fund balance has been used in previous years to reduce the tax levy and support one-time expenses, that “… those self-imposed problems have as much to do with what we spent as what we set aside.” Legislator Amanda Champion (D-Ithaca) spoke about the Legislature’s spending on new initiatives, some brought forward directly by Legislators, arguing that that it may be difficult to fund those initiatives with the increased cost of doing business. Champion warned against adding to an already limited budget.
Legislator Mezey called for recognizing the need to “aggressively” look at cuts, stating “who’s to say that the maintenance of effort is what we should be maintaining” regarding the base budgets for departments before one-time initiatives are considered.
Administrator Holmes will deliver her recommended 2025 budget at the September 3 meeting of the Legislature.
Among Other Business
Legislator Travis Brooks (D-Ithaca) spoke during privilege of the floor for Legislators about his desire to see the Community Justice Center (CJC) funded by Tompkins County in the upcoming budget. Brooks thanked members of the public who attended the meeting to share their support. He spoke about how the CJC represents “Black people, people of color, and disenfranchised people in the community.” Brooks stated that the “power” of the CJC is in the idea that “we now have representation, we now have an organization that represents us at this table…. It’s taken a while to get leadership of our police departments at the table, it has taken even longer for us to be represented in this community in this way.” Brooks added that the CJC’s role is helping police to hear from community and think about their policies and practices differently. Brooks said, “If you’re starting to see the fruits of this tree, why not continue to let it grow?” Legislator Anne Koreman (D-Ulysses) also thanked public commenters and advocated for funding the CJC, “in three years we’ve made really great progress but it’s just a drop in the bucket so let’s keep going.” Koreman referenced the outcomes sought in the Strategic Operations Plan as another reason to continue the work of the CJC. Legislator Rich John (D-Ithaca) spoke about the Public Safety Committee’s ongoing review of the Reimagining Public Safety plans and several successes to-date, including the CARE Team co-response model implemented through local policing agencies at the County and City and transparency efforts. John called for “reevaluating the cost” and “how we deliver the programming,” whether it is through the CJC or not. Funding for the CJC is split between the County and the City of Ithaca.
The Legislature accepted the Navigating Electrical Outages: Proactive Steps for Today and Tomorrow’s Electrified World plan by a vote of 12-0 (Legislators Shawna Black (D-Ithaca) and Veronica Pillar (D-Ithaca) excused). The report, available on the Department of Planning and Sustainability website, outlines specific actions Tompkins County can take to improve resiliency in an increasingly electrified future to reduce the impact of outages and reduce the likelihood of outages in Tompkins County. Legislators discussed how challenges detailed in the plan related to the local utility, NYSEG, should be prioritized by the utility rather than other actors including the County. The report states that 54.11% of outages from 2020 to 2023 were caused by “vegetation interference,” including tree limbs or branches impacting electrical infrastructure – Legislators discussed calling on NYSEG and New York State to address the vegetation issues.
A resolution passed 11-1 (Legislator Dan Klein (D-Danby) opposed, Legislators Shawna Black (D-Ithaca) and Veronica Pillar (D-Ithaca) excused) advocating for New York State to pass an assessment cycle bill mandating all property value assessing units in New York State to complete a revaluation at 100% at least once every four years. Assessment Director Jay Franklin spoke about the resolution, arguing that the four-year window would allow breathing room for his office, whereas now they complete annual reassessments. Franklin said that some property owners have been asking for relief from their assessments increasing every year, although the assessment only impacts the portion of the overall tax levy to be paid by each property owner and the tax levy is set by municipalities (including the Legislature). Legislator Greg Mezey (D-Dryden) thanked Franklin for listening to the questions and concerns of the Legislature and the public and bringing this forth.
The Legislature ratified an updated contract with the Tompkins County White Collar collective bargaining by a unanimous vote of 12-0 Legislators Shawna Black (D-Ithaca) and Veronica Pillar (D-Ithaca) excused).