Molinaro Announces Year-End
2016 Financial Condition
POUGHKEEPSIE — Dutchess County Executive Marcus J. Molinaro announced the County’s 2016 year-end financial report has been completed and submitted, as required, to the New York State Office of the Comptroller. The report demonstrates the continued success of Dutchess County’s conservative fiscal management, with expenditures again below revenues and a healthy fund balance that exceeds the County’s targeted goals. With the County’s reserves continuing to be solid, County Executive Molinaro will once again set aside funding for the Taxpayer Protection Fund to ensure property tax stability for the next several years, as well as set aside monies for County capital project management and municipal projects through the Municipal Innovation Grant program.
“Our continued focus on smaller, smarter, and more effective government continues to pay dividends for our county taxpayers as this latest report on the County’s fiscal condition demonstrates. With a solid fiscal foundation, we are able to deliver on our goal of sustained property tax relief for our residents and businesses,” said County Executive Molinaro.
Highlights of the year-end financial report include:
- 2016 revenues of $465.2 million exceeded expenditures of $456.2 million by $9 million, demonstrating the Molinaro Administration’s continued commitment to spending controls and conservative fiscal stewardship.
- Revenue increases included:
- $1.5 million in non-recurring casino licensing revenue for the Montreign Resort Casino;
- Sales tax receipts increase of $3 million in 2016 compared to 2015;
- $1 million received due to refunding of Tobacco Asset Securitization Corp. bonds.
- Expenditure increases included:
- $1.4 million in additional funding commitment to Dutchess Community College;
- $1 million in additional funding for alternatives to incarceration and juvenile detention costs;
- $1.2 million in additional funding for law enforcement.
- The 2016 fiscal year ended with $59.6 million in general fund unassigned fund balance, positioning the County at nearly 14% of realized general fund revenue.
It remains critical to maintain a strong fund balance in order to ensure the County keeps its high AA+ bond rating and is able to absorb sudden financial changes, such as a sales tax downturn or changes in state or federal funding streams. Additionally, the County has union contracts with the CSEA and DCSEA that expired at the end of 2016 and the current year budget does not include specific funding for salary increases as those contracts are currently in negotiations.
While there is uncertainty that requires a substantial fund balance be maintained, the County’s fund balance management policy states that to the extent general fund balance exceeds 10% of budget, funds will be used to provide property tax relief or to pay down or avoid indebtedness. With the County’s fund balance exceeding that 10% threshold, County Executive Molinaro intends to set aside $16.5 million to provide tax stability over the next several years. The Taxpayer Protection Fund, established in 2016, will have a balance of $12 million to enable Dutchess County to remain under the property tax cap for the next several budget cycles. “Continuing to set aside money as part of the Taxpayer Protection Fund is a critical part of our fiscal strategy to avoid potential future tax increases. This fund provides our local families and businesses the confidence of knowing their county property taxes will remain level and they can use their money to invest in their families and businesses,” said County Executive Molinaro. Dutchess County has remained under the property tax cap every year under County Executive Molinaro’s administration, with the property tax levy cut three years in row (2015-2017) and the property tax rate reduced in both 2016 and 2017.
Additionally, $4.5 million will be set aside for County capital projects, reducing the need for bond funding, and a proposed increase to the Municipal Innovation Grant program. County Executive Molinaro will propose additional monies be allocated by the County Legislature to augment the 2017 Municipal Innovation Grant program to fund projects that produce cost savings and efficiencies in local municipalities to help minimize local property tax impacts.
Dutchess County Comptroller Jim Coughlan noted, “Protecting taxpayers dollars and ensuring fiscal stability is the main focus of Dutchess County Government and the 2016 Year-End fiscal status clearly demonstrates our successful efforts. I am both committed and happy to work closely with County Executive Molinaro to make sure we continue to take every step necessary to maintain our strong fiscal health and provide tax stability for our residents and businesses.”
The full 2016 Unaudited Financial Report and Finance Commissioner Heidi Seelbach’s and Budget Director Jessica White’s overview to the Dutchess County Legislature is available HERE.
