STATE OF THE COUNTY 3/1/2012

 What’s happening in Tioga County—

The Good and the Bad 

Let’s start with THE BAD and save the Good for last.

 By far, the most devastating event that occurred in 2011 was the September flood. In rough figures, the potential impact of this event to the County budget could be a $4 million dollar deficit, if no financial assistance from FEMA, the Federal Emergency Management Agency, or SEMO, the State Emergency Management Office, is forthcoming. The best funding scenario would be a 75% reimbursement, or $3 million dollars from FEMA, and 25% reimbursement or $1 million dollars from SEMO. I’m afraid that the truth lies somewhere in between.

The FEMA reimbursement is dependent on the acceptance of required documents called Project Worksheets (PW’s). These documents list the scope of work performed and the costs that the County incurred for flood damages.

The Heads of the County Departments are responsible for compiling this information. If the PW’s survive the scrutiny of the Federal government representatives, we would be eligible to receive up to 75% of our total costs.

 Whereas in the 2006 flood the County received a 25% reimbursement from SEMO, it appears that SEMO will only provide 12.5% of the total loss for the 2011 flood. This would leave the County to pay the remaining 12.5% of our loss, or approximately $500,000 - $600,000. If the State provides nothing, we would have to pay $1 million out of pocket, which would mean an increase of 5.5 – 6% on our tax levy. By law our current tax levy increase is capped by NYS at 2%. Any amount above that 2% would have to be taken from our fund balance, which would further deplete our reserves. At this point in time, the state has not reimbursed us for any of our costs.

 The following are POINTS OF INFORMATION regarding Tioga County in 2011 WORTHY OF NOTE:

•   Mandates from the State are responsible for consuming an increasing proportion of county budget and are a major contributor to increases in county property taxes. Nine major mandates consume over 90 percent of a typical county’s property tax levy. These include Medicaid, Early Intervention, Special Education Pre-School, Pensions, Probation, Indigent Defense, Youth Detention, Safety Net, and Child Welfare. In 2012, those 9 mandates will consume $65 million of our $72 million dollar budget.
•  For example, retirement costs to the County for 2011 were $2.7 million. The projected number for 2012 is $3.2 million.
•  The Medicaid mandate alone will cost Tioga County taxpayers $8.3 million in 2012 which is up $285,000 from 2011.
•  Although less dramatic, the following are just 3 examples of situations that have also impacted Tioga County residents.
•  The 10 year census numbers resulted in local reapportionment. Unfortunately the County lost 659 residents. However, through the efforts of the GIS and our attorney, we avoided redistricting, a much more extensive and expensive process.
•  The flood of September 2011 was devastating to the Real Property Tax Office, one of the departments that was hardest hit, as they were located in the basement of the County Clerk’s Office and the majority of records were heavily damaged.
•  The cost of curbside recycling to the taxpayers for 2011 was $602,160.00.

  However, ALL IS NOT GLOOM AND DOOM on the County horizon.

• The Governor’s Budget includes mandate relief items that will be phased in, and which consist of eliminating the current 3% annual increase in the local share of Medicaid. After that 3-year phase in, Tioga County’s estimated annual savings will be $250,000. It will be interesting to see how the State will fund this self-imposed mandate.
•  Pension reform is one of the state’s priorities, and it would relieve us of burdensome increasing costs.
•  The majority of County employees have switched to a high-deductible health plan effective February 1, 2012, providing for a significant savings in premiums for years to come.
•  Distribution of Video Lottery Terminal Aid for 2012 will be approximately $183,000.
•  Medicaid recoveries from accident settlements, estates, and liens totaled $274,367. The total of local revenues and recoveries was $1.1 million.
•  The Child Support Enforcement Unit collected $5.5 million for the children in Tioga County.
•  The number of DWI arrests decreased 15.5% for 2010.
•  The County Clerk collected fees of $6.0 million. Of that, $4.3 million went to NYS and $1.6 million stayed in Tioga County. Our campaign to encourage County residents to send DMV registration payments to the County netted an increase of $4,256 over one year.
•  Information Technology applied for and received a grant of $46,416 for the County Clerk to perform back-filing activities.
•  The Barton Transfer Station was severely flooded in September 2011, and due to that damage, as well as declining tonnages, and three consecutive years of loss, it was decided to close the facility and put it out to bid. Bids were received and a resolution will be forthcoming to accept the highest responsible bid. The sale saved the County money, put a $172,000 property back on the tax roles, and the new owner has indicated that the station will continue with the same services.
•  At no cost to the County, the 4^th annual tire and scrap metal collection program was held in 2011, with the participation of the Towns of Barton, Owego, Spencer, and Tioga. This program resulted in the collection of 6000 tires off the rim, and it removed eyesores from our environment. We appreciate the generosity of Upstate Shredding for absorbing the cost.
•  The Guthrie Clinic broke ground on a new multi-million dollar facility on Route 38, next to the Health and Human Services Building.
•  Taylor Garbage has begun construction of a new recycling facility in Apalachin.
•  Central New York Oil & Gas completed a $30 million dollar gas compression station in Owego.
•  Infrastructure was installed in Nichols to service a planned Army Reserve Center that is expected to start construction in the spring of 2012. This center will hire 12 full-time employees and will result in 150 people per week who will patronize our motels and restaurants.
•  Tioga Downs constructed a sewage treatment facility to upgrade their property. The prospect of the addition of gaming tables will help solidify plans for a conference center.
•  A $441,000 grant was administered by Economic Development to enhance streetscape in our County seat, and to assist 12 property owners with property improvements.
•  An independent auditing firm delivered a clean audit opinion with no issues regarding the 2010 County financial statements.
•  2011 County Sales Tax collections grew by 8.9% in 2011 to $19 million. $4.9 million of that was distributed to the towns and villages.
•  Our Community College costs were down by $240,000 in 2011.
•  The Treasurer’s Office netted over $900,000 in delinquent tax enforcement operations.
•  22 properties were sold at the tax auction sale with a surplus of $249,000.
•  The Sheriff’s Department operational costs came in under budget by approximately 2%. Revenues finished 13% above our goal at $587,822.
•  Economic Development applied for and received a $500,000 Community Recovery Fund to assist businesses in rebuilding from the flood.
•  A savings of $677,000 was accomplished by the 2011 continuation of our hiring freeze and by increasing the hiring delay to 90 days.
•  In 2011, the County unemployment rate decreased by ½ % compared to 2010.

It is always encouraging to focus on the HIGHLIGHTS of our year, and the following are but a few examples of them.

•  The Law Department reviewed 240 contracts for 2011, worked with Personnel and the negotiating team on the CSEA contract, which was ratified on December 29, 2011.
•  The County Attorney and Budget Officer spent massive hours due to the flood on addressing issues related to insurance and FEMA, document restoration, preparation of RFP’s for consulting services, sale of the Barton Transfer Station, and updating the Tioga County All Hazard Mitigation Plan. Thanks to the Law office for stellar work!
•  Floyd Hooker Foundation provided over $340,000 in funding to youth programs that were impacted by September’s flooding.
•  The Emergency 911 Communications Center received 17,601 E911 calls, up nearly 19% from 2010, and they dispatched 56,025 calls-for-service, and increase of 5%.
•  The ATI Weekend Work Program performed more than 4,616 man-hours of labor throughout the County during 2011.
•  The Fire Bureau was significantly instrumental during the flood event by assisting the County Fire Service in the EOC for a total of 648 hours during a 2-week period; four local fire departments were assisted by 95 units manned by 322 firefighters from 25 counties throughout NYS in a 72-hour deployment.
•  The Department of Environmental Health was instrumental in getting the public water systems up and running after the flood. That was closely followed by the inspection of all food service establishments that had also been affected.
•  Any attempt to give credit to all of those who are deserving of recognition is futile, and I apologize to those who are not included in this summary.

 Looking to the future, I would like to share some of our 2012 Goals:

•  The delivery of $500,000 to nearly 60 businesses in flood recovery assistance will be administered by Economic Development
•  Important services to the County will be maintained in spite of limited revenues imposed by the 2% Property Tax Cap.
•  A decision will be made after evaluating the impact of the Reassessment Law as it applies to approximately 800-900 properties affected by the 2011 flooding. This decision will address the plight of the homeowners, but also consider the implications for the remainder of Tioga County taxpayers.
•  A strategy will be devised as a means of dealing with the potential loss of part of anticipated State revenue in the amount of 25% reimbursement for costs incurred in lood cleanup.

The Public Works Department plans to

• Rebuild bridges on Dean Creek Road, Sabin Road, Gridleyville Crossing, and Gaskill Road.
•  Reconstruct Glen Mary Drive.
•  Flood damage bridge work on Pennsylvania Avenue and Gaskill Road. 

It is with mixed emotions that I proceed to address Tioga County’s challenges in 2012. The immediate concern is identifying and mobilizing the resources necessary to minimize the devastating impact of the flood on our residents and infrastructure. However, it is my belief that our County must address the critical issue that in the long term, we cannot survive without economic growth. Over time we have made the transition from the creation of marketable products to the providing of services. Production generates revenues, whereas services deplete them. The question then becomes, "How do we promote economic development and reduce services in order to bring the budget and the health of our county back into balance?"

Through the tireless efforts of our flooded taxpayers, our fire/police and emergency personnel, volunteers from both inside and outside our community and our County Departments, we have come a long way from the September flooding. I am proud to report that 95% of our businesses have reopened.