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Home My WebLink AboutMN-IURAGOV-2013-10-18Adopted: X/X/X 108 East Green Street Ithaca, New York 14850 (607) 274-6559 DRAFT MINUTES IURA Governance Committee 8:30 AM, Friday, October 18, 2013 3rd Floor Conference Room, City Hall Present: Chairperson Eric Rosario, Kathy Schlather, David Whitmore Excused: Susan Cummings Vacancy: 1 Staff: Nels Bohn, Charles Pyott Guests: None. Public: None. I. Call to Order Chairperson Rosario called the meeting to order at 8:48 a.m. II. Agenda Additions/Deletions None. III. Public Comments ― None IV. Approval of Meeting Minutes: August 16, 2013 Whitmore moved, seconded by Schlather, to approve the August 16, 2013 minutes, with one minor modification. Carried Unanimously. V. New Business A. Review of Proposed 2014 IURA Budget Bohn indicated the principal source of IURA budget expenditures is staff‐related costs. He noted this year was the first year of Affordable Care Act (ACA) and healthcare insurance costs have decreased by 15%. The IURA has historically enrolled in a two‐tier health insurance plan: single and family. Since ACA expands the types of available plans, however, the IURA was able to move one of its employees from a family plan to a subscriber and child(ren) category, which cut costs by just under $6,000/year (see FY 2014 IURA Budget, Exhibit D, “Proposed Schedule of Insurance Expenses”). Furthermore, the single subscriber rate decreased 10%, while the family rate increased 7.5% compared to what was budgeted in 2013, and actually went up 5.5%. Ithaca Urban Renewal Agency IURA Governance Committee 10/18/13 Minutes Page 2 of 7 Bohn remarked it does not appear changing to a Health Savings Account (HSA) would generate much savings for the IURA. Schlather indicated she could send Bohn information on the Human Services Coalition’s (HSC) own HSA plan. Bohn noted that due to ACA‐related savings, IURA’s health insurance expenditures will increase less than 1%, and 2% for its staff. There will, however, be a significant one‐time capital expense for information technology hardware and software, to replace outdated computers and operating systems. Overall, the budget outlook remains very stable. Bohn took a moment to highligh Exhibit F, “Schedule of Potential Non‐Recurring Revenues,” which is not a part of the formal budget. The most significant source of these revenues is the sale of Parcel D, “Cayuga Green for housing,” which would provide a stream of payments through 2028. Bohn reported the sale of 245 Cherry Street is also moving forward and was approved by the IURA Economic Development Committee (EDC), which would provide IURA with $14,225. IURA can also anticipate repayment of the $250,000 Alternatives Federal Credit Union (AFCU) loan, which AFCU had been using as an unsecured loan to support part of its deposit base. Whitmore moved, seconded by Schlather: FY 2014 IURA Administrative Budget WHEREAS, the IURA desires to annually adopt an administrative budget to guide expenditures and manage financial resources of the IURA, and WHEREAS, New York State law governing public authorities requires submission of the adopted budget 60 days prior to the start of the next fiscal year, and WHEREAS, the IURA budget is due to be submitted to the New York State Authorities Budget Office by November 1st of each year, and WHEREAS, at their October 18, 2013 meeting the IURA Governance Committee reviewed this matter and recommended the following action; now, therefore, be it RESOLVED, that the IURA hereby adopts the FY 2014 IURA Administrative Budget, dated 10/15/13, as herein attached, and be it further IURA Governance Committee 10/18/13 Minutes Page 3 of 7 RESOLVED, that effective with the first payroll check date following January 1, 2014, any modifications to IURA employee salaries, benefits, and contributions shall be adjusted as contained in the adopted 2014 IURA budget. Carried Unanimously 3‐0 B. HUD Annual Community Assessment 2011 Bohn explained that HUD annually monitors IURA operations (‘desk monitoring’) to determine whether IURA is minimally compliant with HUD regulations, which IURA has always demonstrated itself to be (except for delayed annual financial audits). The current HUD assessment was posted to the IURA web site and sent to New York State Public Authorities Law (PAL) officials. IURA Governance Committee 10/18/13 Minutes Page 4 of 7 Bohn remarked that the 2011 audit report was submitted in April 2012; however, the 2012 audit report is past due, and if the audit is not completed before the City’s budget season, it is generally very difficult for the Conrtoller’s Office to complete it by the deadline. As of today, the Controller’s Office indicated it could be finished by the end of the 2013 calendar year (which would be four months late). The City has once again retained IURA Bookkeeper Jill Sage’s services to work on the City Capital Projects budget, to help alleviate some of the Controller’s workload. Bohn stressed that the IURA will continue to perform its own audit of IURA finances, separate from the combined City‐IURA process. Whitmore asked if many municipalities experience similar issues around tardy audits. Bohn replied most cities of a comparable size to Ithaca have difficulty adhering to the May deadline. He added the City continues to be burdened by inefficient financial operations, which contribute to the problem (e.g., weekly payroll vs. bi‐weekly payroll). The City Controller also participates extensively in the work of several City boards/committees; and the merger of the Controller’s and Chamberlain’s Offices is not moving forward as fast as had been anticipated. VI. Old Business None. VII. Other Business A. Review of IURA Financials: September 2013 Grants Bohn noted the 2013 grant activites information has now been included in the financial report (although, of course, none of those projects has yet expended any funds). Bohn indicated that another round of IURA funding will be taking place soon, with applications generally accepted in January‐March, and review and approval in late April or May. Rosario observed, even with the addition of 2013 funds, the CDBG spend‐down ratio remains below the target. Bohn reported that the IURA also now has a timed‐out project, Ithaca Food Works, which was provisionally awarded $25,000 on the condition it could organize a feasible project, which did not occur. (The project sponsor did not receive the $110,000 Appalachian Regional Commission grant it sought.) IURA Governance Committee 10/18/13 Minutes Page 5 of 7 Loans Whitmore inquired into the status of the Neighborhood Pride grocery store and the implications of its losing Ithaca Food Works as a prospective tenant. Bohn replied, the space remains vacant, so the store receives no income from it. Unfortunately, Neighborhood Pride is not meeting its financial projections. EDC has identified a technical assistance provider to help improve the situation: Jeannine Sacco, who possesses a wide range of experience both in retail and food service operations. EDC has been critical of Neighborhood Pride’s current management structure. It would like find a means of ensuring management remains invested in the performance of the store. Neighborhood Pride also needs to be better capitalized and inventoried. Bohn noted that he asked Neighborhood Pride’s owners/management if they have any intention of selling the store, winding its operations down, etc. They responded that they would like to keep operating and seek additional loan financing for additional inventory. It is hoped the technical assistance process will identify options for partnering, increasing profitability, and other decisions that need to be made. It is only $1,200 in technical assistance, so it is not a long‐term process. It is conceivable another technical assistance provider could be hired to perform more financial/statistical kinds of tasks. Bohn also noted that the store’s management indicated it would launch a new line of products through its distributor, Associated Wholesalers, Inc. (AWI), to more effectively compete with the nearby ALDI discount store. Whitmore wondered if a grocery store was ultimately the the best use of the space. As a result of the aforementioned problems, Bohn noted, Neighborhood Pride is not current on its IURA loan (although with a first‐lien position on the 423 First Street property, the IURA’s position is fairly secure.) Bohn reported all other loans are doing reasonably well, with the exception of the Argos Inn and Bandwagon Brew Pub. The Argos Inn will probably remain behind until it closes on the second half of its tax credits, which would not be made available until a full project accounting has been submitted. Bohn noted that Diane’s Downtown Auto is now current, which is good news. IURA Governance Committee 10/18/13 Minutes Page 6 of 7 Schlather asked about the Breckenridge Place apartments project. Bohn responded it has generated considerable interest; however, it still needs to complete construction and lease 90% of its units, in order to get the tax credits by the end of the year. B. City Financial Audit Schedule Report (Reviewed under “V. B. HUD Annual Community Assessment 2011.”) C. IURA & Common Council Actions of Interest to Committee (None.) D. Preparation for11/18/13 Meeting with Excellus BC/BS Regarding Health Insurance Bohn asked Committee members to let him know if they had any health insurance‐related questions to ask IURA Blue Cross/Blue Shield representative, Megan Schmidt. Bohn asked if Schlather would like to invite HSC’s own ACA Navigator. Schlather replied she would explore the possibility. Bohn noted that the IURA, as a small employer, would be eligible to use the ACA health exchange to look for a better program. IURA staff also wants to better understand certain details, like co‐insurance, deductibles, etc. (Whitmore departed at 9:44 a.m.) E. Staff Report Bohn reported the 213‐215 West Spencer Road surplus property has now been listed through Christopher Agnanost (Christopher George Real Estate) for a multi‐family housing use, for $175,000, since the IURA did not receive any responses to the RFP. Three parties have expressed interest. Bohn indicated the IURA will shortly be receiving a funding request from the Learning Web for a job‐placement program through Cayuga Medical Center (CMC), which would hire unemployed youth for entry‐level jobs with opportunities for advancement. If approved, the program would strengthen IURA’s job‐placement rate, something it has historically been deficient in. Bohn reported the “City of Ithaca Local Law Concerning Foreclosure of Unsafe Structures” will finally be going before Common Council for approval, in time for the next round of foreclosures. He noted the foreclosure list is significantly longer this year than prior years, according to the County. Schlather asked if there were any exceptions to the law. Bohn replied, simply that it only applies to a primary use building, not an accessory building. F. Next Meeting: November 22, 2013 IURA Governance Committee 10/18/13 Minutes Page 7 of 7 VIII. Adjournment — Adjourned by consensus at 9:54 a.m. — END — Minutes prepared by C. Pyott, edited by N. Bohn. j:\community development\admin files\minutes\governance ‐ b&a\2013\10 oct\10‐18‐13 gov minutes ‐ draft.doc