Wellsville Village Council Finance Committee

Thursday – February 17: The Wellsville Village Council's Finance Committee held a meeting this past Thursday morning at Village Hall. Present at the meeting was Finance Committee Chairman Tony Cataldo and Committee Member Joe Soldano. Also attending was Mayor Joe Surace, Village Administrator Jim Saracco and WPD Acting Chief Ed Wilson. Committee Member John McMahon was absent.

The purpose of the meeting was to compare revenue figures from 2006 with 2010 and to emphasize the very noticeable difference in revenue income and expenditures between the two years. Cataldo started with comparing the General Fund. In 2006 the carry over from the previous year was $115,000, another $1.2 million in new revenue was brought in and the 2006 expenditures were $1.3 million. That left an ending balance of $104,000 to carry over to 2007. For last year the General Fund carry over from the 2009 was $25,000, income was only $854,000 and expenditures were $842,000. That left a $12,689 balance to start the General Fund in 2011. The General Fund has a multitude of items paid from it. There is such items as salaries, benefits and expenses for the Mayor's Office, the secretary's office, the Fiscal Office, the Administrator's office, the Legal Adviser, maintenance & upkeep of play grounds, Village owned land and buildings.

In 2006 the Street Construction Fund started with $72,000, income was $122,000 and expenditures was $101,000 leaving a balance of $69,000. By contrast in 2010 that fund started with $10,000, income dropped to $110,000 while expenditures totaled $111,000 leaving a balance of $3,900.

The Cemetery Fund started with $7,200 in 2006, brought in $76,000 and spent $83,000 leaving a balance of $4,000. Last year the carry over balance was $3,800, income was $72,000 and expenditures was $83,000. That left the Cemetery Fund with a $1,000 balance to carry over to 2011.

The Permissive Motor Vehicle Fund get its money from Wellsville resident's fees for license plates and renewal registrations. In 2006 that fund started with $53,000, had $54,000 in income, $43,000 for expenditures and an ending balance of $56,000. Last year that fund started with $10,000, brought in $56,000 and spent $62,000. There was only $1,200 left to start 2011. The Street Department payroll is paid from the Permissive Fund along with slag and rock salt for snow removal. With the near record snow fall last year the money spent on snow removal nearly put the fund in the red. Outside contractors were brought in to assist with the snow removal.

The total of all funds to start 2007 was $1.1 million. The carry over total of all funds in 2010 was down to $526,000 and out of that there is $267,000 in two Sewage Department funds.

Cataldo remarked that over the last five years Welllsville has lost hundreds of thousands of dollars in new income. It has to be countered some way and remarked Village officials started at the first of the year with spending cuts in the Police & Street Department. Cataldo commended both departments for their efforts. The WPD was able to cut 80 man hours and recalled the officer assigned to the County's Drug Task Force. Recalling that officer eliminated the cost for five extra shifts. Overtime in the Street Department has been eliminated. Those employees have agree to take compensatory time off in lieu of overtime pay for any extra hours needed. The Village Administrator has set in motion flexible work schedules if heavy snow or freezing rain is forecasted.

Fiscal Officer Dale Davis noted that the biggest expense in 2010 was for snow removal with the extreme conditions. There was also two Sewage projects that cost over $100,000 last year that was spent without any grant funding. One of them had to be replacing the “bear trap” on McQueens Run. Davis also noted that interest rates are at 0.5% at the most for investments. In 2007 the Village earned $70,000 in interest. A Certificate of Deposit was just rolled over for $200,000 invested. It only earned $850 in interest for one month so far. Davis advised the Committee that they are trying to curtail spending as much as possible saying we're only doing what is necessary. For an example he noted there are many things the Police Department needs that are being held off. However, it is essential to keep the Village machinery running to enable the police and street employees do their jobs.

It was noted that for the 16 Village employees the cost of health insurance alone is $22,000 a month. That cost increased 8% this year. Cataldo announced that personally he would never vote to have employees pay anything for that benefit. Although there hasn't been any wage increases in the last couple of years he noted health insurance is one benefit the Village can give the employees. The employees get general health, dental and visual coverage at no cost to them.

The Mayor noted that he estimates the spending has been cut by approximately 50% so far this year adding that the cost of everything is going up. Local Government funding is going to be cut again this year by State officials.

Village Administrator Saracco reported that barring anymore heavy snow falls salt supplies are in good shape. Money is being spent on cold patch for much need pot hole repairs. This winter has been hard on Wellsville streets with the bitter cold temperatures. Saracco also advised the committee that the Village needs at least 75 tons of slag for some street repairs. Slag is currently $22 per ton. Chief Wilson advised cruiser W8 needs a new transmission at a cost of approximately $1,000. Other than a few occasional mechanical problems the Village is in good shape with cruisers, noted Wilson, adding that it is still necessary to plan for the future.

Councilman Soldano reported he found a grant that will pay $30,000 for new cruisers while searching on the internet. He added that the Fiscal Officer wrote the grant application and it has been filed. If awarded it would pay for at least one new vehicle plus allow for leases on additional cars. The cost of a new cruiser runs around $22,000 currently. This grant does not require any Village matching funds.

Soldano also advised that his Personnel Committee will have a meeting next Thursday, February 24 at 2 PM at Village Hall. It will be an informational meeting with Committee Member Rosie Goss bringing in a representative from a local drug testing facility. Goss advised at the last regular Council meeting there might be a cost savings on Worker's Compensation rates available with a employee drug testing procedure in place.

The meeting adjourned at 10:58 AM. The next regularly scheduled Council meeting is Tuesday, March 1 at 6 PM at Village Hall.

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