Referred to: The Ways and Means Committee (Chairman Gerentine and Legislators

Bartels, Belfiglio, Briggs, Maio, Maloney, Provenzano, and Rodriguez)

Chairman of the Ways and Means Committee, Richard A. Gerentine, and Deputy

Chairman Tracey A. Bartels offer the following:

WHEREAS, there is a need to protect Ulster County taxpayers from

unanticipated revenue loss which, as a matter of law, cannot be financed with

amounts available in any other account or fund; now, therefore, be it

WHEREAS, the Executive Budget recommends the establishment of a tax

stabilization reserve fund to protect taxpayers from unsustainable and

unpredictable fluctuations in county taxes; and

WHEREAS this fund is designed to guard against unforseen increases in

County costs such as additional unfunded state mandates, increased pension

costs, or cuts in state aid; and

WHEREAS, this fund provides the type of stability and fiscal

responsibility that the New York State Comptroller’s Office and our bond

rating agencies recommend; now, therefore be it

RESOLVED, that there be and hereby is established a Tax Stabilization

Reserve Fund in the amount of one million five hundred dollars ($1,500,000.00);

and, be it further

RESOLVED, such fund is to be known as the “Tax Stabilization Reserve

Fund of the County of Ulster (the “Fund”); and, be it further

RESOLVED, there may be paid into such Fund such amounts as may be

provided therefor by budgetary appropriation, unappropriated cash surplus in the

eligible portion of the annual budget as defined in subsection 1(e) of section 6-e of

the General Municipal Law of the State of New York, and such revenues as are not

required by law to be paid into any other fund or account; provided, however, that no

amount may be appropriated for payment into such Fund which would cause the

balance of the Fund to exceed ten (10) percent of the eligible portion of the annual

budget for the fiscal year for which the appropriation would be made; and, be it

further

- Page 2 -

Resolution No. 405 November 18, 2014

Establishing A Tax Stabilization Reserve Fund Of The County Of

Ulster Under Section 6-E Of The New York State General Municipal

Law

RESOLVED, moneys in such Fund may be appropriated only:

a. To finance an unanticipated revenue loss chargeable to the eligible portion of

the annual budget, subject to the following limitations:

(1) the maximum amount of moneys in the Fund that may be used to

finance an unanticipated revenue loss shall equal either the amount of

the revenue actually received for the base year or the amount of the

estimated revenue for the current fiscal year, whichever is less, minus

the amount of the revenue actually received for the current fiscal year;

and

(2) the moneys in the Fund may be used only to finance that portion of the

 unanticipated revenue loss which, as a matter of law, cannot be

financed with amounts available in any other account or fund.

b. To finance an unanticipated expenditure chargeable to the eligible portion of

the annual budget, subject to the following limitations:

(1) the maximum amount of moneys in the Fund that may be used to

finance an unanticipated expenditure shall equal the sum of the

amount of the unanticipated expenditure and the amount

appropriated for that purpose for the current fiscal year minus either

the amount appropriated for that purpose for the current fiscal year

or the actual expenditure for the same purpose in the base year,

whichever is greater; and

(2) the moneys in the Fund may be used only to finance that portion of

an unanticipated expenditure which, as a matter of law, cannot be

financed with amounts available in any other account or fund.

c. To lessen or prevent any projected increase in excess of two and one half (2

½) percent in the amount of the real property tax levy needed to finance the eligible

portion of the annual budget for the next succeeding fiscal year. The maximum

amount of moneys in the Fund that may be used for this purpose shall equal the

difference between the projected amount of such real property tax levy and one

hundred two and one half (102 ½) percent of the amount of the real property tax levy

needed to finance the eligible portion of the annual budget for the current fiscal year;

and, be it further

- Page 3 -

Resolution No. 405 November 18, 2014

Establishing A Tax Stabilization Reserve Fund Of The County Of

Ulster Under Section 6-E Of The New York State General Municipal

Law

RESOLVED, the Ulster County Commissioner of Finance (the

“Commissioner of Finance”) shall account for the Fund separate and apart from all

other funds of the County of Ulster (the “County”). Such accounting shall show: the

source, date and amount of each sum paid into the Fund; the interest earned by such

Fund; capital gains or losses resulting from the sale of investments of the Fund; the

order, source thereof, date and amount of each appropriation from this Fund; the

assets of the Fund, indicating cash balance and a schedule of investments. Not later

than sixty (60) days after the start of each fiscal year and at such times as may be

required by the Ulster County Legislature (the “Legislature”) or the Ulster County

Executive (the “Executive”), the Commissioner of Finance shall furnish to the

Legislature and the Executive a detailed report of the operation and condition of the

Fund during the preceding fiscal year which shall include a statement of receipts and

disbursements, and a statement of the balance of the Fund as of the last day of such

preceding fiscal year and such other dates as may be specified by the Legislature Not

later than thirty (30) days prior to the last date provided by the Ulster County Charter

(the “Charter”) for the filing of the executive operating budget, the Commissioner of

Finance shall furnish to the County Executive a statement of the current balance of

the Fund. When preparing the executive operating budget of the County, if the

current balance of the Fund, as shown by the statement of the Commissioner of

Finance required by this section, exceeds ten percent of the eligible portion of the

annual budget for the current fiscal year, such excess shall be used to reduce the

amount of real property taxes needed to finance the eligible portion of the annual

budget for the next succeeding fiscal year; and, be it further

RESOLVED, the Executive and the members of the Legislature, as trustees of

the moneys in the Fund, shall be subject to all duties and responsibilities imposed by

law on trustees, and such duties and responsibilities may be enforced by the

Executive and the Legislature, or any officer or taxpayer thereof; and, be it further

RESOLVED, any officer of the County shall be guilty of a misdemeanor if he

or she willfully and knowingly causes the County to:

a. Appropriate moneys from the Fund for any purpose not authorized

by this section.

b. Expend any money from the Fund for a purpose other than that for

which it was appropriated.

- Page 4 -

Resolution No. 405 November 18, 2014

Establishing A Tax Stabilization Reserve Fund Of The County Of

Ulster Under Section 6-E Of The New York State General Municipal

Law

The provisions of this section shall be considered to be in addition to any other

penalties provided by law;

and, be it further

RESOLVED, that out of the revenues received by the County during the year

2015 and not otherwise appropriated, the sum of one million five hundred dollars

($1,500,000.00) be and the same hereby is appropriated for said Tax Stabilization

Reserve Fund of the County of Ulster, and the Commissioner of Finance of the

County is hereby authorized, empowered and directed to transfer from said revenues

the said sum of one million five hundred dollars ($1,500,000.00) dollars to said Fund;

and, be it further

RESOLVED, such additional sums as may hereafter be appropriated shall

become part of said Fund; and, be it further

RESOLVED, such additional sums as may hereafter be appropriated shall

become part of said Fund; and, be it further

RESOLVED, the Commissioner of Finance in his/her discretion, may invest the

moneys in such Fund in the manner provided in section 6-f of the General Municipal

Law of the State of New York. Any interest earned or capital gains realized on the

moneys so deposited or invested shall accrue to and become a part of such Fund; and,

be it further

RESOLVED, no expenditure shall be made from said Fund except upon the

recommendation of the Executive and the adoption of a resolution appropriating the

recommended amount by at least a two-thirds vote of the Legislature subject to a

permissive referendum pursuant to the provisions of section 6-e(2) of the General

Municipal Law of the State of New York; and, be it further

RESOLVED, this

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Resolution No. 405 November 18, 2014

Establishing A Tax Stabilization Reserve Fund Of The County Of

Ulster Under Section 6-E Of The New York State General Municipal

Law

ADOPTED AS AMENDED BY THE FOLLOWING VOTE:

AYES: 22 NOES: 1

(Noes: Legislator Donaldson)

Passed Committee: Ways and Means as amended on November 18, 2014

FINANCIAL IMPACT:

$1,500,000.00 – TAX STABILIZATION RESERVE FUND

Legislator Gerentine motioned, seconded by Legislator Maio, to strike the first

WHEREAS, and insert the three new WHEREAS clauses as indicated above in bold

font.

MOTION ADOPTED BY THE FOLLOWING VOTE:

AYES: 23 NOES: 0

- Page 6 -

Resolution No. 405 November 18, 2014

Establishing A Tax Stabilization Reserve Fund Of The County Of

Ulster Under Section 6-E Of The New York State General Municipal

Law

STATE OF NEW YORK

 ss:

COUNTY OF ULSTER

This is to certify that I, the undersigned Clerk of the Legislature of the County of Ulster have compared the

foregoing resolution with the original resolution now on file in the office of said clerk, and which was adopted by said

Legislature on the 18th Day of November, 2014, and that the same is a true and correct transcript of said resolution and of

the whole thereof.

IN WITNESS WHEREOF, I have hereunto set my hand and seal of the County of Ulster this 19th Day of

November in the year Two Thousand and Fourteen.

|s| Victoria A. Fabella

Victoria A. Fabella, Clerk

Ulster County Legislature

Submitted to the County Executive this Approved by the County Executive this

20th Day of November, 2014. 24th Day of November, 2014.

|s| Victoria A. Fabella |s| Michael P. Hein

Victoria A. Fabella, Clerk Michael P. Hein, County Executive

Ulster County Legislature