reserves

							2010 ALBANY COUNTY   EXECUTIVE BUDGET 
Reserves 
 

Michael G Breslin 
COUNTY EXECUTIVE 

John W. Rodat  Commissioner of Management and Budget 

VOLUME I 

RESERVE ACCOUNTS 
BACKGROUND  Albany County has established a number of reserve funds, which are segregated from the operating budget and intended to  provide resources to meet future needs, contingencies, and capital outlays. These reserves were created through both  discretionary means and to satisfy certain legal obligations. Included in this section is a summary of Albany County’s reserve  accounts, along with the intended use of any reserve funds in 2010. 

 
RESERVE ACCOUNTS AND RECOMMENDED USES 

The following table provides a description of Albany County’s reserve accounts and the proposed 2010 appropriation: 

 

Reserve General Fund Reserves $ $ $ $ $ $ $ $ 757,535 $ $ 339,197 $ $ $ $ (134,374) $ 1,949,019 $

Balance as of 9/16/2009* Description

2010 Proposed Approp.

Expected 2011 Balance

Contingency and Tax Stabiliziation

$

1,949,019

E-911

$

532,553

STOP DWI

$

128,005

- This reserve is appropriated as a means of maintaining County operations and lowering the proposed 2010 property tax levy. E911 wireless surcharge revenues currently exceed operating expenses associated with the E911 system. These excess funds are deposited 666,927 into the reserve account and cannot be appropriated for other purposes. STOP DWI revenues and expenditures frequently are lagged. As such, appropriating funds from this reserve could result in an unforseen 128,005 deficit or curtailment of operations.

Economic Development

$

1,115,000

Worker's Comp

$

7,051,528

Unemployment

$

339,197

Insurance Retirement A Fund

$ $

268,001 757,535

These funds have been dedicated towards infrastructure development at the Vista Technology Park in the Town of Bethlehem. As such, 1,115,000 appropriating these funds would result in a future shortfall. We do not recommend appropriating funds from this reserve. There can be a long delay between the payment of a workers compensation 7,051,528 claim and the initial filing of a claim. Due to this lag, it is not advisable to appropriate funds from this reserve. Unemployment costs are anticipated to increase substantially due to workforce reductions. As such, the Executive Budget recommends that - this reserve be appropriated in full. Insurance costs have been stable in recent years, with certain policy rates declining. As such, reserves are not needed to offset cost 268,001 increases. - This reserve is appropriated in full as a means of partially offsetting the dramatic increase in retirement costs in 2010.

Employee Benefits A Fund Sub Total $ $ $ $ $ $ $ $

$ $

2,008,491 14,149,329

$ $

2,008,491 4,919,868

$ $

Sewer Repair Sewer Debt Retirement G Fund G Fund Sub Total

$ $ $ $

350,410 263,974 251,561 865,945

NH Capital Projects NH Debt $ $ $ $ $ $ $ $ $ $ 883,517 $ 17,364,464 - $ (516,483) $ 1,400,000 $ 66,604 866,704 $ $

$ $

516,483 872,067

$ $

516,483 283,617

$ $

During 2008 the Comptroller commissioned a study to obtain an actuarial valuation of post-employment benefits for the County workforce related to health insurance costs. The findings indicated that Albany County should be contributing $51.8 million annually to ensure a continuity of health insurance benefits for retirees. We propose appropriating this reserve in full due to the large increase in retiree health benefit costs and the severe economic crisis. However, we note that maintaining County services at current levels will be extremely challenging without addressing this long-term fiscal constraint. Ultimately, a mechanism will need to be created to appropriately fund this - reserve. 9,229,461 Sewer District Reserves 350,410 263,974 The proposed budget does not increase charges to members. As such, reserves are not appropriated. 251,561 865,945 Nursing Home Fund Reserves The Executive budget proposes to transfer these funds to the Capital Projects reserve, rather than having these funds solely dedicated towards - Nursing Home capital projects. 588,450 The amount appropriated equals 2010 debt service payments for both the residential health care facility and the Ann Lee Home.

Retirement - NH Fund NH Fund Sub Total

$ $

66,604 1,455,154

Debt

$

12,456,881

Civic Center Debt Capital Projects

$ $

500,000 2,335,350

Capital Repair Debt Service Fund Sub Total

$

2,955,750

- It is proposed that this reserve is appropriated in full as a means of partially offsetting the dramatic increase in retirement costs in 2010. 588,450 Debt Service and Capital Reserves 11,056,881 Due to the reinstatement of the hotel occupancy tax, we anticipate these revenues will be sufficient to fully service civic center debt. As such, 500,000 there is no need to appropriate funds from this reserve. 2,851,833 The Executive budget proposes transferring the Nursing Home Capital Projects reserve to this reserve. The Capital Repair reserve is intended to offset potential debt service costs associated with unanticipated capital repairs. Due to this, the 2,955,750 Executive Budget does not appropriate funds from this reserve.

$

18,247,981

Hospital Insurance $ 5,000,000 $ Other Sub Total $ 5,000,000 $ Total $ 21,470,428 $ 6,670,089 * Balances provided by the Department of Audit and Control

Other Reserves 5,000,000 This reserve is contractually mandated by the County's health insurance administrator and cannot be appropriated. 5,000,000 14,800,339