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Ulster County controller reports strong 2024 revenues, flags audit work and cannabis distribution errors
Summary
Controller’s office reported higher-than-budgeted sales and occupancy tax revenues for 2024, a projected fund-balance surplus above policy targets, ongoing audits and problems with state cannabis revenue allocations to municipalities.
Ulster County Controller's Office presented a financial update to the Ways and Means Committee on Feb. 13, reporting stronger-than-budgeted revenue in 2024 and outlining ongoing audits and corrective work.
Controller reported the county’s 2024 sales tax revenue at about $174.9 million, roughly 4.76% over budget, and the first 2025 payment showed similar positive movement. Occupancy tax (hotel/motel) revenue for 2024 totaled about $7.9 million, or about 126% of budget. Budgeted interest income for 2024 was $6.7 million; the county earned about $9.6 million.
On fund balance, the controller noted the county’s unrestricted fund-balance policy target is 20% of adopted general-fund expenditures; for the 2025 budget (approximately $392.7 million in expenditures) that equates to a target of about $78.5 million. Based on preliminary estimates of 2024 results, the controller’s office projects an unrestricted fund balance between roughly $112 million and $128 million, leaving the county $30 million to $50 million above the policy target at the start of 2025.
The controller outlined ongoing audits and reviews: a completed health-insurance audit (report pending), a P-card audit in draft, an occupancy-tax audit (field work under way) expected to generate findings that could yield additional revenue in the six-figure range, and a review related to outreach-to-motels contracts requested by the minority legislative caucus. The controller’s office told the committee it does not recommend delaying critical contracts during the audit so long as the county retains termination rights.
Controller’s staff also reported issues with state Office of Cannabis Management (OCM) distributions: the OCM payment records for the most recent period omitted allocations to the City of Kingston and Marbletown, and misattributed sales for some licensed operators. The county received a total distribution of $147,264.90 for the period ending Jan. 30, 2025; the county retains 25% ($36,816) and distributed the remainder to municipalities based on OCM’s locations. Controller staff said they will notify affected municipalities and work with OCM to correct errors.
On project accounting, the county spent a record pre-audit $37.7 million on capital projects in 2024; the finance team is rolling projects from 2024 into 2025 during typical year-end close procedures. On personnel matters, the controller described work on an Ulster County living wage adjustment (proposed increase to $17.70) and a county salary study; the controller’s office said the salary market data requires additional vetting and meetings with departments and unions before a final report.
Controller’s office said it will post interactive dashboards (vendor contract and pay dashboards) and release pending audit reports once management comment is complete. The committee asked for additional detail on reserve policy, cannabis distributions and the salary-study process; the controller agreed to circulate materials and schedule briefings.
