GENESEE COUNTY/2023 Budget message from County Manager Matt Landers

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Link to the 2023 Budget below:

Genesee County Budget Officer s Proposed Budget Message

(Submitted letter)

As Genesee County Manager, I am pleased to present the 2023 recommended budget for the
Genesee County Legislature to consider. This budget funds County government in an efficient and
responsible manner while making key investments which will help deliver better service to the
residents of Genesee County. The recommended budget stays under the NYS tax cap, while
covering a lengthy number of expensive State mandates of which we have little to no control.
While this is my third budget as Genesee County Manager, this is my first where COVID isn’t
dominating the headlines. While it was nice not having the challenge of navigating planned
operations around COVID, it wasn’t any easier as the County budget faced a $5 million deficit after
all Department Head requested budgets were received. This deficit was eliminated through the
hard work of the Manager’s Office, Treasurer’s Office and Human Resources Department staff all
coming together to help me deliver my third recommended budget as County Manager. These
departments were instrumental in assisting me with presenting a budget that stays well under the
tax cap while meeting the needs of the residents of Genesee County.

The next several budgets will have a uniform theme and consistent message from the Manager’s
Office which centers on the new County jail and the constant race to keep water supply ahead of
demand. The County is embarking on two of the largest capital infrastructure projects in its history
with a new County jail carrying a price tag of approximately $70 million and phase three of the
County wide water system with a current projected price tag of $150 million. These two projects
are going to weigh heavily on decisions made by the Manager’s Office and County Legislature for
the foreseeable future and is evident in the 2023 recommended County budget.

County departments were instructed to be creative and think outside the box in trying to keep
their net County support impact to the same level as the 2022 budget. This was a challenge
considering New York State Retirement rates were once again increasing while spiking inflation
and supply chain issues are causing vendor contracts to increase. Despite these increases, I was
pleased to see the majority of departments hold the line on spending, which helped greatly in
delivering a budget that stays under the tax cap.

Budget Highlights
The 2023 recommended All Funds budget for Genesee County totals $162,567,180, which is
$3,593,714 more than the 2022 adopted All Funds budget. The 2023 recommended General Fund
(operating) budget is $124,247,459, which is $4,882,715 more than the 2022 adopted General
Fund budget. Major increases impacting the All-Funds budget include new Jail debt service
payments starting in 2023, eight new hires related to the new County Jail, additional operational
cost increases at the Jail in preparation for the facility opening in 2024, two new positions in the
Sheriff’s Office that are aimed at improvements in public safety, a new Public Health Education
Coordinator position funded with increased NYS Article 6 funding, NYS Retirement cost increases,
and inflationary cost increases that are causing significant budgetary increases in a variety of
commodities the County purchases every year.

I am proposing a property tax levy of $32,080,762, which is an increase of $629,035 or 2.00%. For
the median residential household in Genesee County with an assessed value of $138,000 this
amounts to $22.85 of property taxes. The average County property tax rate in Genesee County
would go down from $9.18 to $8.44 or 8.06% in the recommended budget. For the median
residential household in Genesee County assessed at $138,000, that did not have an assessment
change from 2022, this will result in a net tax decrease of $102.12.

The recommended budget includes usage of $2,000,000 of unappropriated fund balance, a
decrease of $77,484 from the 2022 adopted County budget. The budgeted fund balance utilization
is in line with past budgets.

The 2023 recommended budget includes a continued commitment in increased funding for our
roads and bridges infrastructure annually by $1 million. Deferred maintenance on the County’s
infrastructure is getting to a critical point and the cracks are showing, literally, as evidenced by
recent bridge closures. This continued commitment of an extra $1 million is a big step in
addressing the deferred maintenance of the County road and bridge infrastructure.

The County continues to make strategic investments in its workforce, which will result in better
service delivery to Genesee County residents. A large share of the investments in the 2023
recommended budget are being made in public safety. The County is creating six new Correction
Officer positions in 2023, along with a new Deputy Jail Superintendent position. These are planned
positions that will be necessary to run an effective 21st century correctional facility. The Sheriff’s
Office is also creating two additional positions, an Investigator and Dispatcher in the 2023 budget.
The Investigator will help the Sheriff’s Office address an increasing case load and provide greater
ability to respond to citizens quicker in ongoing investigations. The Dispatcher position will bring
greater stability to the 911 center which is a critical lifeline to the people of Genesee County.

Budget Challenges
While there were familiar challenges in this budget such as rising wages and retirement costs, and
costly state mandates, two major issues looming for the 2023 and future budgets are the new
Genesee County jail and the challenge for Genesee County to keep water supply ahead of demand
through the construction of phase three of the County wide water system:

 NYS Retirement Cost Increases – The average increase in NYS Retirement costs
across all tiers was greater than 15%, resulting in an overall increase in the 2023
budget of over $700,000.

 Wage Increases – Rising wages in every sector has made recruiting and retaining
qualified and capable County employees more challenging.

 Mandates – Approximately 81% of the 2023 recommended property tax levy is
made up of State mandated expenditures to fund departments/programs such as
Medicaid, Probation, the Jail, Public Defender’s Office, Assigned Counsel, Social
Service programs, Mental Health, Early Intervention, 3-5 Preschool services, and
various others.

 New Genesee County Jail – The opening of the long overdue new Genesee County
Jail is planned for spring of 2024, and with it brings one of the largest capital
projects in County history. With a projected all-in price tag of approximately $70
million, the debt service payments are approximately $3.5 million annually. In
addition to the debt service, projected increased operating costs are over $1
million annually. The majority of these fixed and operational increases are starting
in the 2023 budget and will be fully realized in the 2024 budget. For 2023, there is
the hiring of six new corrections officers, a new Deputy Jail Superintendent
position, and a new position in Facilities Maintenance.

 Genesee County Water System, Phase 2, 3 & 4 – Genesee County is nearing
completion of the $23+ million phase 2 of the County-wide water system, and is
quickly designing the $150 million phase 3 which should hopefully break ground in
the next few years. Phase 3 includes bringing in enough water from Monroe
County to close the City of Batavia water plant, which draws from a threatened
source and has long outlived its useful life. However, before the plant comes offline, millions more have to be invested to ensure water supply keeps up with demand until phase 3 is complete.

County Responses to Budget Challenges
The New York State Tax Cap penalizes Counties for enacting an override resulting in limited options
for meeting budget challenges. Genesee County has a long history of doing more with less, sharing
wherever possible, privatizing operations, deferring needed capital improvements, modestly
compensating employees, and providing virtually no post-employment benefits to staff. After
years of cutting to the bone the following actions and revenue sources were available to close the
gap for the 2023 recommended budget:

 Fund Balance Utilization – The 2023 recommended budget utilizes
$2,000,000 of fund balance.

 Raising the Tax Levy – The 2023 recommended budget raises the levy 2.00%
in 2023, which continues Genesee County’s continued adherence to the New
York State property tax cap.

 Budgeting Increased Sales Tax – Recent favorable sales tax trends have
allowed the County to budget an increase in sales tax revenue of $890,000 for
the 2023 budget. This is a conservative estimate as a large percentage of the
sales tax revenue generated in Genesee County is derived from gasoline sales.
With the price of gasoline being highly volatile, the County does not want to
over rely on a revenue source that can just as easily evaporate in a relatively
short period of time.

 Budgeting Increased Interest Earnings – Recent increases in interest rates
coupled with a stabilized Fund Balance have allowed the County to budget for
an additional $855,000 in interest earnings in the 2023 budget.

 Line by Line Review with New Perspective – For the second year in a row I
was accompanied by the Assistant County Manager and Executive Assistant in
every budget meeting, a process that initiated new ideas and resulted in savings
in several departmental budgets. A deeper dive into individual budget lines
resulted in significant budgetary savings when aggregated. We were also able
to utilize greater sharing of resources between departments to capture more
state aid and reduce the net county share in several cases.

In Closing
While I am pleased to present a budget that stays within the confines of the New York State Tax
Cap and effectively lowers the property tax rate by $.74/1,000, I am not blind to the significant
impact the proposed tax levy has on the citizens and businesses of Genesee County. My time as
County Manager has only just begun, and I pledge to work with local governments, community not for-profits, the business community and local citizens on ways to spend these precious resources
as efficiently as possible.

Special thanks are extended to Vicky Muckle, Tammi Ferringer and Scott German for their
assistance with helping me to prepare this year’s budget. While all three provided many hours of
counsel, expertise and debate, Vicky ensured countless budget revisions were accurate and timely.
As the seasoned veteran in the office, Vicky ensured I stayed on task in delivering this balanced
budget. I also want to thank the Legislature and Chairwoman Stein for their valuable insight,
guidance and feedback during this budget season.

The 2023 Genesee County budget is turned over to the Legislature for their consideration and
eventual adoption. I look forward to further discussion with Legislators and citizens to ensure that
the budget meets the needs of this community.

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