COMMITTEE ON BUDGET & APPROPRIATIONS
MINUTES: January 12, 2004
BUDGET & APPROPRIATIONS MEMBERS: Chair: Kaplowitz; Legislators: Abinanti, Bronz, LaMotte, Mosiello, Oros, Rogowsky, Stewart-Cousins
IN ATTENDANCE: CE’s office: B. Randolph; Budget: L. Bennett, A. Vietro, F. Piskorowski; PW: R. Butler; WCDOC/DOP: R. Pozzi; Finance: P. Pucillo, J. Waltman; LWV: B. Strauss, F. MacEchren; K. Eddings, Journal News; H. Corbin; BOL: H. Geist, B. Boland, S. Schecter, R. Indelicato, S. Vanderberg
With a quorum present, the Committee on Budget and Appropriations was called to order at 1:14 p.m.
ITEM A1
A package of court ordered refunds was held for further consideration.
Update: New Penn Project
Commissioner Butler, Public Works said the project was going smoothly and on schedule. He attributed this success to changes the department has made in the capital project process and management and the assistance received form a transition team created by Commissioner Pozzi comprised of Penn. Administration personnel assigned specifically to the project.
The project has 4 phases:
1.
Asbestos removal from all 4 wings.
2.
Relocation of offices/staff from the open spaces in and the demolition/renovation of existing Penn
3.
Construction of 16 cell Special Housing Unit
4.
Construction of 264 bed dormitory/single cell combination General Housing Unit.
The new layout will provide sufficient space for intended programs, although a use for the open space in the old layout has yet to be determined. Each wing will be self contained (all programs and services, etc. will take place on site) eliminating the need for inmates to leave their floor.
The General Housing Unit will be completed in April 2004; the whole project should be completed in October 2004.
With $52.7 million of the original $60 million has been expended to date. Anticipate the 4th phase will cost $2-3 million, bringing the project in under its overall budget. The remaining balance and interest accumated must be used for debt retirement.
Commissioner Pozzi, Corrections said correction officers have begun training on standard operating procedures, at the new facility prior to its opening. The Special Housing Unit is open and has been running without incident. Mr. Alan Crocci, State Commissioner of Corrections visited the facility and was very pleased with the renovations and the hi-tech security system.
The new system will significantly reduce overtime and the amount of staff needed to operate the Penn. Staff previously used to man these shifts will be used to where overtime had been paid in the past. It will also reduce the correction officer/inmate ratio, while remaining within state guidelines.
A breakdown of post reduction and amount saved in overtime would be provided.
Members were invited to tour the facility; the invitation was also extended to the Public Safety Committee.
Update: Bond Sale
According to Commissioner Pucillo, Finance, on December 10, 2003 the county priced an aggregate of $126,760,000 consisting of 4 series of bonds and 1 series of notes.
2003B Bonds, comprised of $43,770,000 of new money bonds sold at an interest rate of 3.44%. They mature in the years 2005-2018 and are structured to provide a level debt service.
2003C Bonds, issued for WCHCC projects totaling $6.23 million of new money bonds sold at an interest rate of 2.9%, mature in the years 2005 through 2013 and are structured to provide a level debt service.
2003D Refunding Bonds, issued to refund $62.494 million of previously issued County Bonds. Issued in the aggregate amount of $60.79 million providing a savings to the County of $1.995 million over the life of the bonds. The bonds will mature in the years 2004 through 2016 and were sold at an interest rate of 4.8%.
2004 Delayed Delivery Alternative Minimum Tax (AMT) Refunding Bonds priced on December 10, 2003 locking in an interest rate of 4.16% and a savings of 4564,836, the $4.28 million of AMT Refunding Bonds will not be delivered until August 17, 2004. The County will refund $4.63 million of previously issued County AMT Bonds. The Bonds mature and produce savings in the years 2005 through 2014.
Bond Anticipation Note 2003B (BAN) was issued to pay a portion of the New York State Retirement System bill due December 15, 2003 in the amount of $11,690,000 at an interest rate of 2.89%. The BAN will mature in the years 2004 through 2008 and save the County $859,000 in financing by not going through the Retirement System at 8%.
Savings on the Refunding Bonds, the AMT Delayed Delivery Refunding Bonds and the issuance of the BAN will result in $3,419,470 in savings to the County. An actual to budget breakdown will be provided. A complete copy of the Finance Department report is on file.
Resolution CBAC
Establishing the Citizens Budget Advisory Committee for the 2004-2005 term and the related guidelines; members were asked to submit suggestions for new appointees. CBAC Representatives will report to the Committee twice a year.
On the motion of Legislator Oros, seconded by Legislator Mosiello the item carried 8-0.
The next meeting of the sub-Committee on the Medical Center will be held next Wednesday at 11 am.
The first committee field meeting will be held in Greenburgh in April, the date has yet to be determined.
With no further business to be discussed the meeting adjourned at 2:05 pm.
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