HomeMy WebLinkAboutApril 27 2011 Spec Budget meeting.pdfMinutes Board of Trustees Special Budget Meeting April 27, 2011
Page 1
Present: Mayor Supron, Trustees: Andolina, Crooker, Hamilton, Karns, Riesman, Szekely, Attorney
Gutenberger, Police Chief Boyce, Treasurer Silber, Clerk Mills
Absent: Superintendent Cross, Asst Superintendent Frisbie, Fire Superintendent Tamborelle
Mayor Supron called the special budget meeting open at 7:04PM
Treasurer Silber discussed various line item changes within the tentative budget:
Recommendations:
A2665.000 Sale of Equipment $7500
A1990.400 Special Contingency $112,324
A3120.110 Police – Sworn $585,190
A8160.200 Refuse – Equipment $22,000 (this is to correct a typo)
A9030.800 Emp Benefit – FICA $102,706
Capital Fund to do Court renovations $75,000 ($30,000 grant received)
From Surplus A Fund $360,000
Transfer from General $75,000 (was $15,000 for Court renovations)
Vlg Hall Cap Exp $60,000 (was $0 – Court renovations)
Discussion: Treasurer Silber and Trustee Andolina went over the tentative budget in detail. The end result was
a clear understanding that the majority of the budget (63%) addresses salary and benefits of the total operating
general budget. Health insurance is more than half of benefits, and pension costs, which are increasing rapidly,
are about one quarter of the benefits total. There are very few areas in the operating fund budgets where
adjustments can be made. One suggestion was that the Police vehicles be kept longer. Cutting each
department’s budget in order to reduce tax increases would mean cutting public services.
Treasurer Silber pointed out that if you cut items from the budget for which State aid is received, the reduction
is only 50% because matching funds are not received. Furthermore, the Village runs the risk of being
eliminated from the State allocation.
Discussion continued with regard to moving employees to the Tompkins County Health Care Consortium plan
as soon as possible; doing so by January 2012 will assure the earliest coverage. Moving the police sooner
would be better; any questions of comparability may have to go to arbitration which will take time.
Public services in the Village could be reduced, such as brush removal, bulky trash pick up, sidewalk plowing.
Eliminating such services will cause hardships, especially for elderly persons.
Future hires of Village employees and benefits are another area to look at. Retirement pension benefits are
shifting from defined benefit payouts to defined contributions, such as 401K plans, in the private sector. Health
insurance plans have increased employee cost sharing. The Village plan has a low deductible and no employee
participation. The majority of the employees are included in a unionized contract and negotiating will not be an
easy sell. Non-bargaining employee compensation and benefits are areas where the Village can set examples by
making changes.
The tentative budget necessitates a 5% tax increase and the use of $360,000 in surplus funds to meet projected
expenses. The bulk of the budget increase is non-discretionary. Thus, a budget reduction means a reduction in
services. Staffing costs mean raising taxes.
Minutes Board of Trustees Special Budget Meeting April 27, 2011
Page 2
More information is needed regarding the legal requirements of union contract negotiation. The fundamental
question is how to keep the Village solvent; continuing use of surplus is not an option.
A hard look at efficiency and working with fewer resources is necessary, including trimming services. What
services are optional, what can be reduced or eliminated? The Department Heads should be asked to propose
adjustments. Replacing equipment and vehicles on a rotating basis is standard practice. The longer you keep
vehicles, the higher the maintenance costs.
The increase in the tax rate is 5.84%. For the owner of a single family home in the Village the average tax
increase will be about $97.00. The tentative budget revenue totals $3,475,000, appropriated surplus totals
$360,000, contingency $112,324, capital transfer $75,000, operations from surplus $172, 676.
Summary: we are faced with a need to raise taxes this year and begin now to strategize for next year’s budget.
Motion: Trustee Andolina
Second: Trustee Karns
Resolution #6870 to approve the tentative budget and incorporated salary schedule for the Fiscal Year
beginning June 1, 2011 as amended.
Discussion included enumerating the changes made in the tentative budget figures:
A2665.000 Sales of Equipment increase to $7,500;
A1990.400 Contingency increase to $112,324;
A3120.110 Police Personnel Sworn decrease to $585,190;
A8160.200 Refuse equipment increase to $22,000;
A9030.800 FICA decrease to $102,706;
A9554.900 Transfer to Capital increase to $75,000 (Court project);
H5021.000 transfer from General increase to $60,000 (Court project);
H1620.200 Village Hall Capital Expense increase to $60,000.
Aye Votes: Mayor Supron, Trustees: Riesman, Szekely, Hamilton, Karns, Crooker, Andolina
no nays or abstains Motion passed
Motion: Trustee Andolina
Second: Trustee Hamilton
Resolution #6871 to establish a real property tax rate of $5.84/M for a total levy of $2,240,083.
Discussion: none
Aye Votes: Mayor Supron, Trustees: Riesman, Szekely, Hamilton, Karns, Crooker, Andolina
no nays or abstains Motion passed
Minutes Board of Trustees Special Budget Meeting April 27, 2011
Page 3
Motion: Trustee Andolina
Second: Trustee Karns
Resolution #6872 to establish that the Water Surcharge rate effective June 1, 2011 shall be 100%
Discussion: none
Aye Votes: Mayor Supron, Trustees: Riesman, Szekely, Hamilton, Karns, Crooker, Andolina
no nays or abstains Motion passed
Ongoing Discussion on taxes:
While the Village tax is increasing to $5.84/M, the County tax rate as of Jan 1, 2011 is $6.48 per thousand, the
Town of Ithaca tax rate as of Jan 1, 2011 is $1.68 per thousand, and the fire tax rate for the Town of Ithaca is
$3.57 per thousand.
The Village has had the second lowest tax rate increases among local municipalities throughout the last decade.
There have been structural shifts, changes in the types of services, changes in compensated structures and major
changes in health costs; that has accounted for the increase in costs. Our rate of increase was mitigated by the
development of Kendal because they are the largest Village taxpayer.
Road repair has changed. In prior years the budget carried $100,000 – now the budget is $200,000. A dramatic
difference has been achieved in road repair by budgeting this figure, resurfacing one mile of Village road per
annum and applying for and receiving State Highway Improvement funds (CHIPS). This means that road
maintenance now conforms to a fixed schedule of paving with ongoing potholes repair as needed. There will be
pressure this year due to increasing fuel cost and price of asphalt falling in line with the price of oil. Fuel
delivery charges are incurred for stone and road salt delivery. The Village does not maintain the roads at
Kendal, nor pick up trash there.
New Business
Chief Boyce would like the authorization to submit a grant for “Bunny Money” – a buckle up/seat belt use
program that also targets aggressive driving and is intended to maximize child passenger safety. Securing such
funding would provide funding for an officer on the road and target these items as a traffic enforcement tool at
the expense of the State. Surcharges on the fines then accrue to the State to recoup the cost.
Motion: Trustee Andolina
Second: Trustee Szekely
Resolution #6873 to authorize the Police Chief to submit the grant application to the State of New York.
Discussion: This grant provides $3500 in monies. No matching funds. Good way to put an officer out in the
public view.
Aye Votes: Mayor Supron, Trustees: Riesman, Szekely, Hamilton, Karns, Crooker, Andolina
no nays or abstains Motion passed
Minutes Board of Trustees Special Budget Meeting April 27, 2011
Page 4
Motion: Trustee Hamilton
Second: Trustee Andolina
Resolution #6874 to authorize the Police Chief to hire Valerie Caward as a substitute crossing guard.
Discussion: The Police Chief has had the person approved through Civil Service and done a background check.
There is no additional added expense. She will substitute when one of the other three crossing guards is unable.
Aye Votes: Mayor Supron, Trustees: Riesman, Szekely, Hamilton, Karns, Crooker, Andolina
no nays or abstains Motion passed
Motion: Trustee Riesman
Second: Trustee Andolina
Resolution #6875 to authorize the Mayor to sign the license agreement with The Heights Café permitting road
signs directing traffic to the restaurant to be located in the Village ROW.
Discussion: The cost of these signs will be the responsibility of The Heights Café owners.
Aye Votes: Mayor Supron, Trustees: Riesman, Szekely, Hamilton, Karns, Crooker, Andolina
no nays or abstains Motion passed
Other New Business
Trustee Szekely advised the Board to read the articles in the NYCOM bulletin about the Mayoral task force on
state mandates and property tax relief.
Trustee Riesman spoke about the advisability of adopting a policy requiring the members appointed to the
Village Planning Board and Zoning Board attend a minimally fixed percentage of meetings, possibly the
members of Village advisory boards as well. To function with voting a quorum is necessary. NYCOM was
contacted and indicated that this would be a good idea. The importance of meeting attendance needs to be
stressed to prospective board members. It was asked – what happens if you do not attend these meetings? Do
you get removed from the particular Board the person is serving on? Once answers to these questions are
forthcoming, additions will be needed in the Planning Board, the Zoning Board of Appeals and Advisory
Boards “job descriptions”. Attorney Gutenberger will provide a proposed local law for the next meeting.
There was an inquiry by someone (believed to be) within a unit of Cooperative Extension unit to put a link on
the Village web site for a youth program. Given our current transition in computer support, the request was
tabled for the time being.
Chief Boyce pointed out that the stop signs at the intersection of The Parkway and Northway are temporary for
120 days and will need to be evaluated and voted on within that period or removed. A public hearing is needed
prior to approval and then, depending on the outcome, either the installation of permanent stop signs or removal
of the temporary signs. May 9th, the next meeting, would be a good time to set up a resolution for public
hearing. Attorney Gutenberger will research and prepare a proposed local law making the temporary signs
permanent.
Minutes Board of Trustees Special Budget Meeting April 27, 2011
Page 5
Motion: Trustee Szekely
Second: Trustee Hamilton
Resolution #6876 to enter into executive session for personnel issues and potential litigation issues at 8:30PM.
Discussion: none
Aye Votes: Mayor Supron, Trustees: Riesman, Szekely, Hamilton, Karns, Crooker, Andolina
no nays or abstains Motion passed
Motion: Trustee Szekely
Second: Trustee Hamilton
Resolution #6877 to exit out of executive session with no voting occurring at 9:14PM.
Discussion: none
Aye Votes: Mayor Supron, Trustees: Riesman, Szekely, Hamilton, Karns, Crooker, Andolina
no nays or abstains Motion passed
Motion: Trustee Riesman
Second: Trustee Andolina
Resolution #6878 to Adjourn meeting at 9:15PM.
Discussion: none
Aye Votes: Mayor Supron, Trustees: Riesman, Szekely, Hamilton, Karns, Crooker, Andolina
no nays or abstains Motion passed