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HomeMy WebLinkAboutTB Minutes 2018-11-19 Meeting of the Ithaca Town Board Monday, November 19, 2018 at 5:30 p.m. Agenda 1) Call to Order and Pledge of Allegiance 2) Persons to be Heard and Board Comments 3) Discuss and consider closing Forest Home Walkway for the winter 4) Discuss the Public Works Facility expansion study and next step(s) 5) Discuss request for support of a stop sign at South Hill Rec Way/Hudson St 6) Discuss support for TC Legislative Committee's support for a ban on single-use plastic bags 7) Discuss and consider a Resolution of Appreciation for Rich Schoch 8) Discuss and consider approval of: a. 2019 Employee wage scale and wages —Bolton Point/Southern Cayuga Lake Intermunicipal Water Commission b. Town of Ithaca 2019 Office and Field Classification Wage Scales for non-collective bargaining positions c. 2019 Employee wages for non-collective bargaining—Town of Ithaca d. Health insurance contribution for non—collective bargaining employees 9) Discuss and consider approval and authorization to sign an MOU with the City of Ithaca regarding the Gateway Trail 10)Acknowledge receipt of the Town of Ithaca Audit for Year Ending December 2017 11)Discuss and consider increasing the maximum amount of the Highway Equipment account 12)Discuss and consider authorization to deposit unclaimed exonerated bail transferred from Ithaca Town Court to the Unclaimed Bail Account 13)Discuss and consider an order setting a public hearing regarding a proposed Sewer Improvement for the Town of Ithaca, Tompkins County, New York,pursuant to Article 12-C of the Town Law, to be known as the Town of Ithaca Grit Removal and Plant Improvements at the Ithaca Area Wastewater Treatment Facility, and establishing the Town of Ithaca Grit Removal and Plant Improvements Area SUBJECT TO PERMISSIVE REFERENDUM 14) Consider Consent Agenda Items a. Approval of Town Board Minutes b. Town of Ithaca Abstract c. Approval of Bolton Point Abstract d. Approval of Floating Holiday e. Set records management day for December 14, 2018 from Sam to 1pm f. Ratify appointment of Administrative Assistant 11 at Bolton Point 15)Report of Town Officials 16)Report of Town Committees/Intermunicipal Organizations 17) Review of Correspondence 18)Discuss Facilities Future Plans 19) Consider Adjournment Meeting of the Ithaca Town Board Monday, November 19, 2018 at 5:30 p.m. Minutes Board Members Present: Bill Goodman, Supervisor; Pamela Bleiwas, Deputy Town Supervisor; Pat Leary, Tee-Ann Hunter, Eric Levine, Rich DePaolo, and Rod Howe Staff Present: Susan Ritter, Director of Planning, Bruce Bates, Director of Code Enforcement; Mike Solvig, Director of Finance, Judy Drake, Director of Human Resources; Paulette Rosa, Town Clerk; Dan Thaete, Town Engineer; and Susan Brock, Attorney for the Town 1) Call to Order and Pledge of Allegiance—Mr. Goodman opened the meeting at 5:32 p.m. 2) Persons to be Heard and Board Comments Mr. Joe Wilson addressed the board regarding the Green Building Policy and again urged the Board to move more quickly on making that law. Marjorie Olds (Attachment 1) addressed the board expressing concerns about the intersection at Hudson St and Hillview on South Hill right below the entrance for the South Hill Recreation Trail and many people use the trail. She would like the Board to support the neighborhood community, the South Hill Civic Association's request for traffic calming measures. The Association has been asking for over 20 years and the area is an accident waiting to happen. Ms. Olds thought the Town was the best stakeholder to push for these traffic calming efforts; stop signs should be a simple request and a simple measure. Lynne Santos addressed the board regarding restricting Short-Term Rentals (STR) saying that she is a real estate agent but also speaking as an owner and if she did not have a rental unit, she would be in a different space now. The draft legislation has additional steps such as keeping a log and contacting Codes when it is rented, and this is not required of other rentals. She felt there is good vetting on the platforms that book these rentals and instead enforce laws already on the books to address any complaints such as the parking issue on Renwick Heights. Caroline Arms addressed the board as the President of the Forest Home Improvement Association saying that the Association and they would like to add their appreciation for all the efforts made by Rich Schoch for the Forest Home Community and his key role in the establishment of the FH Park and he and his staff worked wonders converting what had been an unkempt patch of ground into a tidy park; removing invasive weeds and mowing and applying for a grant for the plants the community helped plant and of course the continued maintenance. The second item is the proposal to closure of the Forest Home Walkway for the winter. The Walkway is heavily used, including as a commuting route for many people who work on the Cornell Campus and there simply is no safe alternative; Warren Rd is not safe for pedestrians during the winter when there is snow on the ground and the proposal to close it for the winter has caused great dismay and written submissions to that affect. (Attachment 2) Bruce Brittain addressed the board regarding the winter maintenance of the Forest Home TB 2018-11-19 Pg. 1 Walkway saying that the walkway was adopted as a town road in 1799 and abandoned at some point after that then the ROW was purchased by George Warren in 1911 and the Warren family maintained that until 1983 when it was acquired by the Town who has maintained it both summer and winter. It gets extensive use by Forest Home members as well as a heavily used pedestrian commuter corridor. As Cornell and the NE have grown, so has the usage and stopping winter maintenance is not going to make the people disappear, they are just going to be forced into the street. Mr. Britain went on to say that Warren Rd and Pleasant Grove are not safe for pedestrians and he is concerned that the town is trying to decrease its liability of the walkway by decreasing pedestrian safety. He stated that he sent pictures of after the Thursday storm but it has since been shoveled. Mr. Britain also thanked Rich Schoch for his tremendous efforts for the town and Forest Home. Doug Brittain addressed the board on the same topic saying he wasn't sure how many people are familiar with the walkway and it is such a relief when you get to the walkway and away from the cars and the safety of it. He thought this was the type of thing the town should have more of to encourage and help people to use. He didn't understand why the town wanted to not maintain it even though it is steep and not ADA compliant because it is there, and people use it regardless. Hope Harvey addressed the board concerning the Walkway saying that she is a commuter on the walkway every day and when she first looked at moving to the town she actually called the town to make sure it was maintained in the winter because it was so important to her to be able to walk to campus every day. Ms. Harvey said she was thinking about what her alternatives would be if it were not maintained and Warren Rd is very dangerous, and the Walkway is also the route to the nearest bus stop so there is no alternative. She hoped the board would keep it open for the commuters and the people using it for exercise. Amo Constantino addressed the board about the walkway also (Attachment 2) and reinforced that it is very important as a commuting route but also for exercise in the long dark winters and a place to recreate for people. He wanted to emphasize that the only alternative would be to drive and using that downstream bridge which is already very crowded would make it even worse. Mr. Constantino added that they only heard about this issue through the Association and there are many more people who might have come if the agenda was more known among all the people we see on the Walkway. Board Comments —Mr. Goodman stated that the proposals for Short Term Rentals is going through a committee right now and the next meeting is Thursday, November 29th at 5:00 p.m. and the public is welcome to sit in and hear the details of any proposed legislation. Mr. Goodman noted that a number of these comments will be addressed on the evening's agenda. TB 2018-11-19 Pg. 2 3) Discuss and consider closing Forest Home Walkway for the winter Mr. Goodman asked Mr. Thaete for any comments from the Public Works Department's perspective. He suggested the board refer this to the PWC to have further discussion or bring it back for action on December 10th. Mr. Thaete stated that the Walkway has been historically problematic to maintain; it is a fairly steep slope with a lot of tree-cover so it doesn't get a lot of sunlight. He added that Mr. Schoch had taken him out there a few weeks ago to look at the condition of the trail and there are some handrails that are failing and there is some erosion that is happen with trees that were hung having to be removed. He said they just reassessed the difficulty in maintaining this trail because a lot of times, most of the time, it must be done with a hand shovel which is problematic for the department. At this point the Public Works Department wanted to open the discussion about not maintaining it in the winter time. Mr. Goodman turned to the board; Ms. Hunter asked if Mr. Thaete had any sense of what it would cost to maintain it? Do we have to fix the handrail regardless of what season it is open? Is that repair on the list to do? Mr. Thaete responded that they are discussing inhouse whether to possibly hire a consultant to look at this walkway for design alternatives. He thought the town is at a point now where the whole trail needs to be looked at because there are portions of the trail that are not on town property because it has migrated over the years from people taking shortcuts or portions being eroded and paths created. The consultant would look at alternatives and costs which might be very expensive because we may need retaining walls and it is a very tight space to work in which will involve more hand-work than equipment work; what material to use because we wouldn't want to pave it, yet stone is hard to shovel as many of you with stone driveways are probably aware. Mr. Goodman added that the Town put in $25K to hire consultants to look at the Walkway and another $100K in the Capital Projects lines to do something about it if the estimates are in line with that. Ms. Hunter asked if it were a current liability or are we having trouble finding time and staff to maintain? Mr. Goodman responded that he wasn't sure it was necessarily the staff time although it is difficult to maintain, and as Mr. Brittain stated and sent pictures of the walkway with snow on it and Mr. Talbut responded to him that it did take a couple of days because of equipment issues and the heaviness of the snow. Ms. Hunter asked if there was anything that would prevent us working with the community if they wanted to keep it clear. Mr. Goodman thought that would be a question for counsel. TB 2018-11-19 Pg. 3 Ms. Leary said that given the heavy use of the trail by our residents, we should make it a high priority to maintain it. Just because it is difficult, doesn't mean we shouldn't do it and this seems like throwing money at it instead of simply deploying our PW staff to do it. A long-term plan is good and something else, but we shouldn't give up on our basic responsibility to maintain it. Mr. Howe said he would not like to push people on to Warren Rd because in the best of circumstances there is only a little bit to walk on and in the winter there is nothing. Ms. Bleiwas said she thought the town should keep it open because we should be encouraging walking to your work, school or recreation. She said she was not familiar with the trail, but it seems like many members of our community use it and this should be a priority and if it really is a danger and we can not keep it open, we should start working on how to fix it. Mr. Goodman asked that it be put on the Public Works Committee December agenda. Mr. Goodman noted that there was an item on the Public Works Committee to look at the condition of Forest Home Drive between Judd Falls Rd and McIntyre but with Mr. DePaolo out of the country and Mr. Weber still out on medical, that should also be moved to the December meeting and add Mr. Foote's retaining wall to round it out. 4) Discuss and consider a Resolution of Appreciation for Rich Schoch Mr. Goodman read the resolution. TB Resolution 2018-143: Recognition of Richard Schoch's Dedicated Years of Service to the Community Whereas, Richard "Rich" Schoch, Parks Maintenance Manager, started his career with the town through the Cornell Work Study Program the summer of 1981, and was appointed as a temporary park consultant/working foreman of the Park Work Program on June 8, 1982; and Whereas, after several extensions of the temporary appointment, Rich was appointed full time as the Parks Maintenance Foreman/Worker effective January 1, 1984 and the Parks & Open Space Manager in 1986, and has essentially served in the Parks Manager role since that date; and Whereas, Rich has decided to retire from the Town of Ithaca, effective November 24, 2018, after over thirty-six (36)years of dedicated service; and Whereas, Rich has been instrumental in designing, developing, and maintaining parks and trails throughout the town, enhancing neighborhoods and the lives of residents who enjoy them, including the highly used and loved South Hill Recreation Way, Tutelo Park and East Shore Park; and Whereas, with Rich's dedication and devotion to the management and maintenance, the Town's parks, bikeways, trails, preserves and open space has expanded during his years of service to include 14 miles of multi-use trails and walkways, 14 active parks (which provide ball TB 2018-11-19 Pg. 4 fields, playgrounds, basketball courts, pavilions, benches and picnic tables), and 8 passive recreational preserves; totaling over 270 acres of parks and open space; and Whereas, Rich has provided invaluable assistance in writing and administering several grants to upgrade parks and playground structures, construct the South Hill Recreation Way and Pew Trail, conduct a tree inventory, and eradicate invasive species and replant with natives; and Whereas, Rich has provided generous support and assistance to many grateful residents and community groups, ensuring the long-term success of various programs and projects through his committed oversight, such as the West Hill Community Gardens and the Babe Ruth sanctioned baseball field (Valentino Field) at Tutelo Park; and Whereas, the Town of Ithaca has greatly benefited from Rich's vast knowledge and experience with trees and shrubs, his skilled stewardship of the parks, trails and preserves, the goodwill he generated with the public through his thoughtful interactions, and his tireless devotion and desire to proudly serve our community in order to make it a better place to live; now, therefore, be it Resolved, that on this 191' day of November, 2018, the Town Board of the Town of Ithaca, on behalf of the Town and its residents, expresses its sincere appreciation, admiration, and gratitude to Richard Schoch for his distinguished and dedicated service to our community. Moved: Bill Goodman Seconded: Pat Leary Vote: Ayes —Goodman, Bleiwas, Hunter, Leary, Levine, and Howe TB Resolution 2018-143B: Authorization Naming Pavilion at Tutelo Park the"Schoch Pavilion" Whereas, the Town's Policy states that the name of a Town park (including facilities within the park) may be based upon the name of a person who has made significant contributions through service to the Town or general community for a long period of time and in a significant role, and Whereas, Richard Schoch has provided invaluable service to the Town of Ithaca and the local community during his thirty-six (36)years as the Parks Maintenance Manager, and Whereas, Rich has achieved many accomplishments over this time including careful and dutiful stewardship of the Town's parks, trails and open space preserves, which includes over 270 acres of green space and 14 miles of multiuse trails; and Whereas, Rich has been the "face" of the Town parks and trails and is constantly interacting with the public and has coordinated multiple projects in the parks with Boy scout and Girl scout groups, Eagle Scout projects, Cornell students, and other volunteer groups doing clean-up or invasive species projects, and assisted with hosting the Tutelo Homecoming at Tutelo Park in 2007 and 2008; and TB 2018-11-19 Pg. 5 Whereas, the Town Board wishes to have Richard Schoch's devotion and dedication to the Town and greater Tompkins County community recognized in a tangible and lasting manner, now therefore be it Resolved, that the Town Board of the Town of Ithaca hereby names the pavilion at Tutelo Park "Schoch Pavilion" in honor of Richard Schoch, and in recognition of his tireless work to create and maintain exceptional parks, trails, and preserves for the Town residents to enj oy. Moved: Rod Howe Seconded: Eric Levine Vote: Ayes —Howe, Levine, Goodman, Leary, Hunter and Bleiwas 5) Discuss the Public Works Facility expansion study and next step(s) Mr. Goldsmith was present to answer questions. Mr. Goodman said that the town is following the policy and the basic goal for tonight is to discuss the basic cost estimates and what the next steps the board is interested in doing. Mr. Thaete explained that HOLT Architects has done the feasibility study and the rough estimate is $630K just for the construction of the building itself and we are asking HOLT what the additional costs are to follow the Green Building Policy. HOLT is looking at that and the rough numbers are $50-$75K to upgrade the heating system, additional insulation and lighting to adhere to the policy as well as $85K for engineering design and project management for a total of approximately $800K. Mr. Goodman reviewed other aspects of the report that included expanding the break room by bumping the wall out and that may be an alternate in the bidding process. Ms. Hunter thought there would be savings with the Green Building options to offset some of that cost and Mr. Goldsmith responded that it is a bit more straight forward with new construction where this is a retrofit, but the idea is to do the existing office space as well as the new space. The carbon emissions will probably be reduced 50% from State building code. A portion of the NYSERDA grant is going toward this also. Ms. Drake noted that HOLT offered to do a comparison on savings generated by the Green Building Policy but that would be an additional cost and if we are going to do it regardless, the thought was not to put out more money for that. The Board felt that if we are asking other people to follow the Green Building Policy we certainly should, and they would like to move on to the next step od design phase. 6) Discuss request for support of a stop sign at South Hill Rec Way/Hudson St Mr. Goodman asked for board comments. TB 2018-11-19 Pg. 6 Ms. Leary thought stop signs made a lot of sense and wanted to move on the action tonight. Mr. Goodman noted that the City is still in the process for determining if they want to do this. Mr. Thaete cautioned that we have no data and traffic engineering is a science and there may be a reason they are hesitating. A stop sign could create more vehicular accidents but we don't know that, so it would be interesting to hear from the City and what their thoughts are because off the cuff it sounds great, but it may not. Ms. Olds said her community has been asking for over 20 years. The board seemed in support and Mr. Goodman will ask the City for some information and put together a draft resolution for discussion at the December 10th meeting. Mr. Goodman moved to enter closed session to seek the advice of counsel; seconded by Ms. Bleiwas. 6:43 p.m. Mr. Goodman moved to reenter open session; seconded by Ms. Leary. 7) Discuss support for TC Legislative Committee's support for a ban on single-use plastic bags Ms. Leary thought the support depends on the details because she does not support charging for paper and Ms. Hunter said it was an insignificant amount, but Ms. Leary thought if the goal was to keep plastic out of the oceans, there should be no strings attached to paper. Ms. Bleiwas thought this was not our issue to study and comment; this is the County Legislature and we can all contact them as an individual. She thought there has been too many resolutions of support coming out of the County just to make a statement and that is not our job. Ms. Bleiwas thought it was not our job to spend our time doing that; she would rather spend that on thinking about Forest Home instead of an issue we have no control over. Mr. Levine thought the board has done resolutions in support of in the past, so we cannot take a line that we don't do that. He thought we could do a resolution in support of whatever we would like; a ban on plastic and not mention paper or anything we would like. He would be in favor of support and is open to being convinced on the paper bag issue. Ms. Bleiwas said she is aware we do resolutions in support, but she did not think it was something we should be spending our valuable time on. Ms. Leary said that yes, we have done resolutions in support but we haven't done any recently and she understands Ms. Bleiwas' point because you could spend a lot of time just doing resolutions of support but again, if they want to study it, what would the point be to do that when it really depends on what comes out of that study and the details. Ms. Hunter stated that she felt it was socially irresponsible for us to not weigh in on this issue because this is something municipalities have done throughout the state and Tompkins County, for whatever reason, has been dragging its heels. TB 2018-11-19 Pg. 7 She said that we brought this before Tompkins County four or five years ago and they wanted to study the issue and they never did. Nassau and Suffolk Counties have banned single use plastic bags and she expounded on their appearance in front of the Tompkins County Legislature and this is such a non-issue in terms of effects on people, but we have to start changing our habits and she simply didn't know why people dig their heels in on this topic. She felt that this is what people want their governments to do; to wrap their hands around environmental issues. These are our issues and she really thought the town should support this. Mr. Howe said he agrees with what Ms. Bleiwas said but, in this instance„ he would be open to a letter of support but not spend a lot of time on. 8) Discuss and consider approval of: PULLED a. 2019 Employee wage scale and wages —Bolton Point/Southern Cayuga Lake Intermunicipal Water Commission b. Town of Ithaca 2019 Office and Field Classification Wage Scales for non-collective bargaining positions c. 2019 Employee wages for non-collective bargaining—Town of Ithaca d. Health insurance contribution for non—collective bargaining employees 9) Discuss and consider approval and authorization to sign an MOU with the City of Ithaca regarding the Gateway Trail Ms. Ritter asked that the Gateway Trail be discussed at the December meeting to get certain items on the record. TB Resolution 2018-144: Authorization for Supervisor to sign an MOU re2ardin2 the Town's authorized use of Route 13 pedestrian bridle for the Gateway Trail Whereas, the CITY owns a pedestrian bridge that runs over Route 13 ("Route 13 Pedestrian Bridge") and CITY also holds a permit issued by the New York State Department of Transportation ("NYSDOT") authorizing the City to occupy and maintain the Route 13 Pedestrian Bridge within the State's airspace; and Whereas, TOWN wishes to use the Route 13 Pedestrian Bridge (also, the "Premises" or "Bridge") for the purpose of constructing a public trail, known as the "Gateway Trail"; now therefore be it Resolved, that the Town Board of the Town of Ithaca authorizes the Town Supervisor to execute the submitted MOU with the City of Ithaca for the use of the pedestrian bridge for the Gateway Trail, subject to the approval of the Attorney for the Town. Moved: Rod Howe Seconded: Pamela Bleiwas Vote: Ayes —Howe, Bleiwas, Hunter, Levine, Leary and Goodman TB 2018-11-19 Pg. 8 10)Acknowledge receipt of the Town of Ithaca Audit for Year Ending December 2017 TB Resolution 2017-145: Acknowledge Receipt of the Independent Financial Statements for the Fiscal Year ended December 31, 2017 Whereas Sciarabba Walker & Co., LLP has conducted an independent audit of the financial records of the Town of Ithaca for the Fiscal Year ended December 31, 2017 and submitted their report of findings, now therefore be it Resolved, that the Town Board hereby acknowledges receipt of the Financial Statements from Sciarabba Walker & Co., LLP. Moved: Rod Howe Seconded: Pamela Bleiwas Vote: Ayes — Howe, Bleiwas, Hunter, Goodman, Leary and Levine 11)Discuss and consider increasing the maximum amount of the Highway Equipment account TB Resolution 2018-156: Increasing the Maximum Amount of the Highway Equipment Account Whereas, the fund balance of the Highway Part-Town Fund includes funds designated for the purchase/replacement of highway equipment and machinery deposited in the Highway Equipment Account, funded primarily by the annual sale of surplus equipment and machinery; and Whereas, in 2015, at the recommendation of the Budget Committee, the Town Board set the maximum amount to be deposited in this account at fiscal year-end at $250,000; and Whereas, as of the year ended December 31, 2017 the balance of the Highway Equipment Account totaled approximately $250,000 in the reserved fund balance of the Highway Part-Town Fund; and Whereas, during the Budget Committee's annual review of the Town's reserve funds and accounts in 2018, the Committee noted that several pieces of the Town's equipment and machinery were now valued in excess of $250,000, resulting in the Budget Committee to recommend increasing the maximum amount to be deposited in this account at fiscal year-end to $400,000; now, therefore, be it Resolved, that this governing Town Board hereby increases the maximum amount to be deposited in the Highway Equipment Account at fiscal year-end to $400,000, and be it further Resolved, that expenditures from this account continue to require the prior approval of the Town Board. Moved: Rod Howe Seconded: Pamela Bleiwas Vote: Ayes —Howe, Bleiwas, Hunter, Levine, Goodman and Leary TB 2018-11-19 Pg. 9 12)Discuss and consider authorization to deposit unclaimed exonerated bail transferred from Ithaca Town Court to the Unclaimed Bail Account TB Resolution 2018 — 147: Authorization to Deposit Unclaimed Exonerated Bail Transferred from Ithaca Town Court to the Unclaimed Bail Account Whereas, after several unsuccessful attempts to return exonerated bail money in accordance with Office of Court Administration guidelines, the Ithaca Town Court is transferring the unclaimed exonerated bail money to the Town of Ithaca, and Whereas, the unclaimed exonerated bail money in the amount of $250.00 is the sum of the unclaimed exonerated bail for the following cases: 1) $250.00 posted for defendant Kevin A. Guevara (Docket 416050058), exonerated on 10/09/2018, and Whereas, in accordance with Office of Court Administration guidelines, any exonerated bail remaining unclaimed six years after the date of exoneration becomes the property of the Town of Ithaca. Now, therefore, be it Resolved, that the Town Board of the Town of Ithaca authorizes the deposit of $250.00 in Unclaimed Exonerated Bail to be accounted for within the Unclaimed Bail Account in the Town's Trust & Agency Fund, and be it further Resolved, that any exonerated bail remaining unclaimed six years after the date of exoneration becomes the property of the Town of Ithaca, to be transferred to the Town's General Fund. Moved: Tee-Ann Hunter Seconded: Eric Levine Vote: Ayes —Hunter, Levine, Leary, Goodman, Howe and Bleiwas 13)Discuss and consider an order setting a public hearing regarding a proposed Sewer Improvement for the Town of Ithaca, Tompkins County, New York,pursuant to Article 12-C of the Town Law, to be known as the Town of Ithaca Grit Removal and Plant Improvements at the Ithaca Area Wastewater Treatment Facility, and establishing the Town of Ithaca Grit Removal and Plant Improvements Area SUBJECT TO PERMISSIVE REFERENDUM TB Resolution No. 2018-148: Order Setting a Public Hearing Re2ardin2 a Proposed Sewer Improvement for the Town of Ithaca, Tompkins County, New York, Pursuant to Article 12-C of the Town Law, to Be Known as the Town of Ithaca Grit Removal and Plant Improvements Sewer Improvement at the Ithaca Area Wastewater Treatment Facility, and Establishing the Town of Ithaca Grit Removal and Plant Improvements Sewer Improvement Area Present: Bill Goodman, Tee-Ann Hunter, Rod Howe, Pamela Bleiwas, Pat Leary, and Eric Levine Absent: Rich DePaolo TB 2018-11-19 Pg. 10 Moved: Rod Howe Seconded: Tee-Ann Hunter Whereas, a map, plan and report, including an estimate of cost, have been duly prepared in such manner and in such detail as has heretofore been determined by the Town Board of the Town of Ithaca, Tompkins County, New York, relating to the establishment and construction, pursuant to Article 12-C of the Town Law, of sewer system improvements to be known and identified as the Town of Ithaca Grit Removal and Plant Improvements Sewer Improvement at the Ithaca Area Wastewater Treatment Facility (the "Improvement"), to provide such sewer Improvement to the present Town sewer improvement, such sewer system Improvement to be jointly constructed and jointly owned by the Town of Ithaca, City of Ithaca and Town of Dryden, all of which are co-owners of the Ithaca Area Wastewater Treatment Facility, to serve a benefitted area in said Town of Ithaca to be known as the Town of Ithaca Grit Removal and Plant Improvements Sewer Improvement Area(the "Sewer Improvement Area"); and Whereas, said map, plan and report, including estimate of cost, were prepared by a competent engineer, duly licensed by the State of New York and have been filed in the office of the Town Clerk of said Town, where the same are available during regular office hours for examination by any person or persons interested in the subject matter thereof, and Whereas, the area of said Town determined to be benefited by said Improvement consists of the entire area of said Town excepting therefrom the area contained within the Village of Cayuga Heights, and Whereas, the Improvement proposed in connection with the establishment of the Sewer Improvement Area consists of the sewer improvements set forth below, and as more particularly shown and described in said map, plan and report presently on file in the office of the Town Clerk, at an initially determined maximum estimated cost to said Sewer Improvement Area of $2,939,272, it being determined that the additional $4,250,728 of the $7,190,000 aggregate maximum cost shall be apportioned and allocated to the City of Ithaca and Town of Dryden, pursuant to the terms of the December 31, 2003 Joint Sewer Agreement among the Town of Ithaca, City of Ithaca and Town of Dryden: The project will consist of installation of a grit removal system, emergency generator replacement, and various improvements at the Ithaca Area Wastewater Treatment Facility located at 525 Third Street in the City of Ithaca, including: General Improvements: Sitework, chemical unloading, vac-truck pad $320,000 Concrete Repairs $150,000 Influent Building Improvements $160,000 Grit System $2,160,000 Stair Tower Replacement $160,000 Misc (Weirs, scum collectors, _gas piping, doors, etc)$1,470,000 Subtotal—General Improvements $4,420,000 Electrical Improvements: TB 2018-11-19 Pg. 11 Electrical $350,000 Emergency Generator Replacement $800,000 Instrumentation & Controls $110,000 Subtotal—Electrical Improvements $1,260,000 HVAC Improvements: HVAC $310,000 Subtotal—HVAC Improvements $310,000 Subtotal - Construction $5,990,000 Contingency 10% $600,000 Total Construction $6,590,000 Engineering, Testing, Legal,Administration $600,000 Total Project Cost $7,190,000 Whereas, said $2,939,272 maximum estimated cost, which is the cost of the project to be expended by the Town of Ithaca, shall be authorized to be paid, as follows: Ithaca Area Wastewater Treatment Facility co-owner City of Ithaca will issue bonds to pay for the City of Ithaca's share of the Improvement at the Facility as well as for the Town of Ithaca's share. The Town of Ithaca will not co-issue or be liable on the bonds. The Town of Ithaca will reimburse the City of Ithaca through a contract between the City of Ithaca and the Town of Ithaca. The Town of Ithaca's contractual payments to the City of Ithaca are proposed to be paid by expenditure of current revenues and surplus funds from sewer rents and charges to be assessed, levied upon and collected from the several lots and parcels of land within such Sewer Improvement Area, outside of any village, which the Town Board shall determine and specify to be especially benefited by the Improvement; and Whereas, it is now desired to call a public hearing for the purpose of considering said map, plan and report, including estimate of cost, and the providing of the Improvement, and to hear all persons interested in the subject thereof concerning the same, all in accordance with the provisions of Section 209-q of the Town Law; Now, therefore, it is hereby ordered, by the Town Board of the Town of Ithaca, Tompkins County, New York, as follows: Section 1. A public hearing shall be held by the Town Board of the Town of Ithaca, Tompkins County, New York, at the Town Hall, 215 North Tioga Street, in Ithaca, New York, in said Town, on the lord day of December, 2018, at 5:30 o'clock P.M., Prevailing Time, to consider the aforesaid map, plan and report, including estimate of cost, and the question of providing the Improvement, and to hear all persons interested in the subject thereof concerning the same and to take such action thereon as is required by law. Section 2. The Town Clerk is hereby authorized and directed to publish a Notice of Public Hearing regarding the aforesaid Improvement to be published once in the official TB 2018-11-19 Pg. 12 newspaper, and also to post a copy thereof on the town signboard maintained by the Town Clerk, not less than ten (10)nor more than twenty (20) days before the day designated for the hearing as aforesaid, all in accordance with the provisions of Section 209-q of the Town Law. Section 3. This Order shall take effect immediately. The question of the adoption of the foregoing Order was duly put to a vote on roll call, which resulted as follows: Bill Goodman, aye; Tee-Ann Hunter, aye; Rod Howe, aye; Pamela Bleiwas, aye; Pat Leary, aye; and Eric Levine, aye. The Order was thereupon declared duly adopted. 14) Consider Consent Agenda Items TB Resolution 2018-149: Adopt Consent Agenda Resolved that the Town Board of the Town of Ithaca hereby approves and/or adopts the following Consent Agenda items: a. Approval of Town Board Minutes b. Town of Ithaca Abstract c. Approval of Bolton Point Abstract d. Approval of Floating Holiday e. Set records management day for December 14, 2018 from Sam to 1pm f. Ratify appointment of Administrative Assistant 11 at Bolton Point Moved: Tee-Ann Hunter Seconded: Eric Levine Vote: Ayes —Hunter, Levine, Howe, Leary, Goodman, and Bleiwas TB Resolution 2018-149a: Approval of Minutes of October 29, 2018 Whereas the draft Minutes of the October 29, 2018 meeting of the Town Board have been submitted for review and approval, now therefore be it Resolved that the Board approves the draft minutes, with changes, of the October 29, 2018 meeting of the Town Board. TB Resolution 2018-149b: Town of Ithaca Abstract No. 14 for FY-2018 Whereas the following numbered vouchers have been presented to the Ithaca Town Board for approval of payment; and Whereas the said vouchers have been audited for payment by the said Town Board; now therefore be it Resolved that the governing Town Board hereby authorizes the payment of the said vouchers in total for the amounts indicated. TB 2018-11-19 Pg. 13 VOUCHER NOS. 1470 - 1557 General Fund Townwide 64,138.70 General Fund Part-Town 6,755.00 Highway Fund Town Wide DA 12,781.88 Highway Fund Part Town DB 13,873.97 Water Fund 11,553.67 Sewer Fund 28,115.64 State Route 96b Sidewalk—H7 30,512.37 Park Lane Water Main Improv—Hl 1 2,386.80 Sapsucker Woods Water Main—H12 6.50 Christopher Circle Water Main—H13 5.50 Ellis Hollow Water Tank—H10 30.00 Trumansburg Water Tank Replace—H9 10.00 Risk Retention Fund 1,738.25 Fire Protection Fund 1,250.00 Forest Home Lighting District 44.00 Glenside Lighting District 13.12 Renwick Heights Lighting District 21.96 Eastwood Commons Lighting District 30.77 Clover Lane Lighting District 4.11 Winner's Circle Lighting District 6.12 Burleigh Drive Lighting District 14.31 West Haven Road Lighting District 56.85 Coddington Road Lighting District 33.03 Trust and Agency 1,500.00 Debt Service 600.00 TOTAL 175,482.55 TB Resolution 2018-149c: Approval of the Bolton Point Abstract Whereas, the following numbered vouchers for the Southern Cayuga Lake Intermunicipal Water Commission have been presented to the governing Town Board for approval of payment; and Whereas, the said vouchers have been audited for payment by the said Town Board; now, therefore, be it Resolved, that the governing Town Board hereby authorizes the payment of the said vouchers. Voucher Numbers: 511-552 Check Numbers: 18026-18067 Capital Impr/Repl Project $ 27,527.56 Operating Fund $ 63,441.91 TOTAL $ 90,969.47 TB 2018-11-19 Pg. 14 Less Prepaid $-____-11_,6-7-5 11.1lµ TOTAL $ 89,294.36 TB Resolution 2018-149d: Approval of Floating Holidays for 2019. Whereas, there is an annual poll conducted of all town and SCLIWC employees to determine their preference for the next year's floating holiday for each location; now, therefore, be it Resolved, the Town Board of the Town of Ithaca does hereby approve the Floating Holiday for 2019 for Town Hall staff as Thursday, December 26, 2019 as requested by the majority of the employees of Town Hall; and be it further Resolved, the Town Board does hereby approve the Floating Holiday for 2019 for Public Works staff as Friday, July 5, 2019 as requested by the majority of the employees of Public Works; and be it further Resolved, the Town Board does hereby approve the Floating Holiday for 2019 for SCLIWC staff as Friday, July 5, 2019 as requested by the majority of the employees of SCLIWC. TB Resolution 2017-149e: Set Records Management Half Day Whereas, the Records Management Officer & the Records Management Advisory Board have found it beneficial to hold an annual Records Management Day in order to cycle records into the digital repository and prepare records for year-end disposition; now, therefore, be it Resolved, that the Town of Ithaca Town Board hereby approves closing Town Hall on Friday, December 14, 2017 from 8:00 a.m. to 1:00 p.m. for Records Management Day. TB Resolution 2018-149f. Ratify Permanent Appointment of Administrative Assistant II- SCLIWC. Whereas, there is a vacancy in the full-time position of Administrative Assistant 11 in the Administration Department at Southern Cayuga Lake Intermunicipal Water Commission; and Whereas, the interviewing group has determined that Katie McMillen possesses the necessary knowledge and skills to satisfactorily perform the duties of an Administrative Assistant 11; and Whereas, Katie McMillen was appointed by SCLIWC at the November 8, 2018 meeting based on a part time level of 30 hours per week, effective October 30, 2018; now, therefore, be it Resolved, the Town Board of the Town of Ithaca does hereby ratify SCLIWC's appointment of Katie McMillen as a part time Administrative Assistant 11 in the Administration Department; and be it further TB 2018-11-19 Pg. 15 Resolved, this is a 30-hours a week position, at the hourly wage of$22.14 from account number SW83 10.10 1, with part time benefits. 15) Report of Town Officials—Mr. Goodman reported that the Deer Committee will be meeting December 4"'. 16)Report of Town Committees/Intermunicipal Organizations 17) Review of Correspondence 18)Discuss Facilities Future Plans—Move to next meeting Mr. Goodman move to enter executive session to discuss Union negotiations and closed session to seek the advice of counsel; seconded by Mr. Howe—unanimous. 7:54 p.m. 19)Consider Adjournment Reenter open session at 8:33 p.m. and move to adjourn—unanimous. Submitted b-v- I;//ZZII Paulette klo/s-a,-Town\Clerk TB 2018-11-19 Pg. 16 _-llw IME,E,tIir][CJ 11-19-2018 Rethinking the Pedestrian Crossing at Hudson, Hillview and Renzetti (Comment prepared for the City of Ithaca Board of Public Works meeting on November 20, 2018) The new traffic calming signage on South Hill at the intersection of Hudson, Hillview and Renzetti is woefully inadequate for the pedestrians wanting to cross at this intersection. In the thirty years that I have lived on South Hill, commuter traffic on Hudson Street has dramatically increased due to developments in the Town, Ithaca College and Therm. The vast majority of these cars going both up and down Hudson fail to yield to pedestrians at the Hillview/Renzetti intersection. Many of the folks wanting to cross at this intersection are the people entering and leaving the South Hill Recreation Trail, as well as the parents walking their children to and from the South Hill Elementary School. These two groups of pedestrians rely on this intersection for a safe crossing during the day. Late night car traffic on the weekends has also dramatically increased and this traffic is moving recklessly fast. Add-in the many IC students walking on Hudson late at night and you have one more reason why a safe crossing solution is needed at the Hudson, Hillview/Renzetti intersection. A four-way stop at this critical intersection has been suggested by the Traffic and Pedestrian Committee of the South Hill Civic Association and one hundred South Hill residents, parents and concerned citizens have signed a petition to that effect. Currently, the City's traffic engineers do not agree with this assessment and are conducting a second traffic study to assess the situation further. It is our fervent hope that the City traffic engineers will find a solution that reduces the stress for pedestrians at this important South Hill neighborhood crossing. Thank you, John Graves 319 Pleasant Street Ithaca, NY 607-279-4980 Michael J. Thorne, P.E. Superintendent of Public Works City of Ithaca Dear Superintendent Thorne, A year ago our South Hill Civic Association approached the City of Ithaca's Traffic Engineering staff to request a three-way stop sign at the intersection right below South Hill Elementary School on Hudson Street at Hillview Place . Our South Hill Civic Association request was in response to the City's request for community projects to "calm the traffic". The SHCA request for a three-way stop sign and more sidewalks (in the vicinity of the South Hill Elementary School)have been discussed with the ICSD and the City of Ithaca several times over the last 20+ years. I spent a few hours speaking with pedestrians at this intersection and loo signatures were gathered. Everyone had a story to tell of near accidents. While circulating the petition it was noted by many signatories that each school day young children and their families pass through this busy intersection twice a day. Other pedestrians also cross at this spot to walk or run on the South Hill Recreationway, which has its entrance by this intersection. When the South Hill Elementary School is not in session the intersection continues to accommodate many vehicles and many people, including college students, who frequent the Recreationway at all hours of the day and night. Neighbors noted that the steady stream of traffic headed both directions on Hudson Street competed with a steady stream of pedestrians. And that the visibility of oncoming traffic was sometimes difficult. Some young families on Hudson Street decried how difficult it was to walk their kids across Hudson and then race home and try and back their car out onto Hudson Street during the non-stop flow of cars travelling North and South on Hudson Street. I submitted our petition over a year ago. Since the time our petition was submitted additional student apartments have been built on the block where this is intersection is located and the flow of traffic has increased. John Graves, the longtime president of the SHCA, and I were invited to meet with City Traffic Engineering staff for an update on the three-way stop sign petition. On September 26, 2o18 we were informed that the City has not decided if they will proceed with the stop sign at the intersection of Hillview, Hudson, and Renzetti streets. Despite the City's position that a three-way stop sign may not currently be advisable, we turn to you for guidance please. We have spoken with the Town of Ithaca regarding pedestrians entering the Trail, and the Director of Oak Hill Manor. We also spoke with IPD Chief Pete Tyler, Ithaca College Administrators. No one spoke out against the idea of a three-way stop sign, except one neighbor who lives south of the SHES. Thank you for considering this request. Respectfully, Marjorie Olds November 20, 2018 P.S. I also note that the SHCA objected to a very large Sidewalk Assessment two years ago. In response the Sidewalk Coordinator agreed to make the addition of sidewalks around the SHES the top priority for new sidewalks on South Hill. To date no sidewalks have been erected around the SHES, although we remain hopeful. I also note that I live nearby the intersection in question. However, my street has an additional outlet, so that I am not directly affected by whether a stop sign is or is not added at this intersection Marjorie Z. Olds 607 277 2228 z02@cornell.eu Jennifer Maclaughlin 1 :11 P (6 minutes ago) to mzo2, perry.gorgen, EHathaway, John, kjohnson, aaron All, My family lives at 409 Hudson Street, and our son Nathan attends first grade at South Hill. We use the sidewalk at Hillview/Hudson every morning to walk Nate to school. Admittedly, there are some mornings when there is no problem crossing the street, but the vast majority of mornings, we have to wait to cross the street while cars zoom past. It is ASTOUNDING the number of cars that do NOT stop for people in the crosswalk or who don't slow down (and we subsequently have to run across the street to avoid being hit by a car). The majority of offenders are coming down the hill, and they do not stop at the Hillview/Hudson crosswalk because they have just been stopped by Aaron the crossing guard up at Crescent/Hudson. There is a sense of urgency that drivers must make up the lost time. We do see the offenders going up the hill trying to gain speed after the stop sign at Columbia/Hudson. We have many friends whose kids walk up from lower on the hill who cross at Columbia/Hudson specifically because it is not safe at Hillview/Hudson; however, in the winter, this is very dangerous as the melting snow forms an ice block on the even side of the street on the 400 block of Hudson Street. Personally, I've had many falls on that portion of the hill as I walk down from dropping Nate at school. We would like a safer environment to drop off our son at school. While we are motivated by walking to school, we are most concerned about the overall safety of the 400 block of Hudson Street outside of school hours, and to be honest, this is the main source of our frustration. PEOPLE SPEED DOWN THE HILL AT ALL HOURS OF THE DAY AND NIGHT!! They are going much too fast for the safety of other drivers and for pedestrians. If you notice, the space between the sidewalk and the road in the 400 block of Hudson Street is extremely narrow, I would estimate no bigger than 2 feet. We consistently observe cars jumping the curb because of distracted driving and also because they are going too fast. Cars and trucks hit the street sign (the actual sign, not the post) outside of 413 Hudson because there is not enough space between the sidewalk and the street for it to fit. There are kids in every house on the odd side of the 400 block of Hudson Street, ranging in age from 22 months to 6 years old. The sidewalk is a danger zone. A couple of years ago, a car ran into a tree in front of 413 Hudson. A stop sign at Hillview/Hudson would dramatically slow down traffic and create a safe environment for our kids and pedestrians. We would be happy to provide you with video of what the street looks like on an average day, if that would help your initiatives. I strongly urge you to consider a stop sign at Hillview/Hudson. Thank you to Marjorie, Mr. G, and John for your continued efforts. Best regards, Jen Maclaughlin On Fri, Oct 5, 2018 at 1 :46 PM Pat Barber <Pbarber(�,oakhillmanorithaca.com> wrote: Attn: City of Ithaca, Traffic Engineering Department strongly agree that Hudson Street near Oak Hill Manor is an accident waiting to happen. Our employees and resident families have a hard time getting out of the parking area on to the street. A four way stop sign by the Hillview and Hudson Street will help to enhance safety of pedestrian and drivers. Thank you ! Pat Barber Administrator Oak Hill Mano City of Ithaca - Request for Traffic Calming Investigation If you would like to have the City Engineering Department consider your request for traffic calming, you will need to fill out the following sections and send the completed form to the City of Ithaca Engineering Department (attn: City Transportation Engineer) at 108 E Green Street, Ithaca, NY 14850. What is traffic calming? Traffic calming measures are intended to make streets safer and more attractive for people to walk, bike and drive by reducing the negative impacts of motor vehicles such as excessive speeds and/or volumes of traffic. Traffic calming measures may consist of educational, enforcement and engineering efforts. Some examples of traffic calming measures are: driver speed feedback signs, targeted police enforcement, pavement markings, signs, speed humps, chicanes and diverters. What is the Selection Process? Received requests will be prioritized based on factors related to traffic speeds, volumes and other considerations, such as proximity to schools. The Engineering Office will work with relevant City entities to determine what types of traffic calming measures may be appropriate. Final approval will be granted by the Board of Public Works (BPW). A. Street Study Information Each request must provide the name of the street on which a study is requested and the boundaries of the street segment. Boundary limits may change at the discretion of the Engineering Department. Please use street names for boundary limits, not block ranges. Requested Street: Hudson St., where Hillview Pl. crosses eastward to become Renzetti Pl. Boundary Area: From (Street): NA To (Street): B. Contact Person Information Each request must provide a contact person who lives on the requested street within the study area boundary. The contact person will receive all correspondence and will be responsible for gathering evidence of support. Name: Marjorie Olds Address: 100 Renzetti Pl. Phone #: 607-277-2228 E-Mail Address: mzo2@cornell.edu I agree to be the contact person for the above request: Signature: Date: C. Nature of the Traffic Concern We believe the nature of the issue we would like to have addressed is (be as specific as possible): The issue is the potentially dangerous situation at the intersection of Hudson St. and Hillview Pl. Eastward across Hudson Hillview becomes Renzetti Pl. Nine months of the year young children and their families cross through this intersection on their way to and from the South Hill Elementary School. All year community members cross here to access the South Hill Recreationway, often with bikes, strollers, or wheel chairs. With the increase in traffic more and more pedestrians run through the intersection to avoid the often steady stream of vehicles. Cars on Hillview, waiting to break into or cross through the traffic, sit poised to rush out when there is a break in the flow. Making this intersection a four-way stop with appropriate signage would go a long way to preventing an accident at this location. A vehicle counter should provide the needed data on the large flows of traffic through this intersection. D. Evidence of Neighborhood Support Please provide evidence of neighborhood support for participation in the program. The attached form can be used for this request.Individuals providing signatures must live or own a property within the study area as identified in Section A. Signatures from residents representing at least 1/2 of the households whose property is next to the street segment in question is required for consideration. Additional copies of this page may be submitted to secure the required number ofsignatures. We the undersigned owners and residents of the Hillview, Hudson and Renzetti neiahborhoods hereby offer our support for our neighborhood's participation in the traffic calming study. It is important to understand that the traffic calming countermeasure selected by City staff may require the removal of on-street parldng and can increase on-street noise levels. Printed Name Email (optional) Address ttf*SI Owner/Resident Signature ZIA= Printed Name PeulY-v- Email (optional) ' Address V !� Owner/Resident Signature Printed Name 6. Email (optional) Address 4 I G J&J& � Owner/Resident Signature J w� w ( 1' e D. Evidence of Neighborhood Support Please provide evidence of neighborhood support for participation in the program. The attached form can be used for this request.Individuals providing signatures must live or own a property within the study area as identified in Section A. Signatures from residents representing at least 1/2 of the households whose property is next to the street segment in question is required for consideration. Additional copies of this page may be submitted to secure the required number of signatures. We the undersigned owners and residents of the Hillview, Hudson and Renzetti neighborhoods hereby offer our support for our neighborhood's participation in the traffic calming study. It is important to understand that the traffic calming countermeasure selected by City staff may require the removal of on-street parldng and can increase on-street noise levels. Printed Name e-rct,n S h�,L 1 m CL n Email (optional) 'S ccs d Address Asa Owner/Resident Signature Printed Name A L La-Z, Email (optional) CM (D14 -7 (D GoryQ)( . V Address *450y) Owner/Resident Signature Printed Name �- Email (optional) 84srl 7-70,Gv t�• cL �O Address q/ 5* Aodso,% SF Owner/Resident Signature Printed Name CI o L `C� �0M Email (optional) cmNA r\ r--, Address c� Owner/Resident Signature nti Printed Name \ Email (optional) 5G2 Address S Owner/Resident Signature Printed Name Gd SUA64 1- Email (optional) ew i st-G Rncam Address 51- Owner/Resident rOwner/Resident Signature gaz!6� Printed Name 0 lik Ft".L.(44.4 io Email (optional) ,n,kc A r ��N do Q : . w Address 316 s . Owner/Resident Signature AU4-62" Printed Name I Email (optional) _ , ^ "..- Address ..-Address 141 iZ �1 Owner/Resident Signature Printed Name fiaa Email (optional) Address Owner/Resident Signature 4v\-j e Lf crt v v ,, Printed Name XI Email (optional) OLnn Address d sev, S . Owner/Resident Signature ` Printed NameLLat��--f Email (optional) =66e, Address 163 Owner/Resident Signature Printed Name zil oQ a DQ Email (optional) Address Owner/Resident Signature Printed Name Email (optional) di-q- t Cti _e Address 5 Co ) v �-f-. Owner/Resident Signature Printed Name Email (optional) QA Address V t "- Owner/Resident Signature Printed Name 51 A nc& C Kim Mar`7l Email (optional) Address zf Owner/Resident Signature ' �� / Printed Name an a 13'b Email (optional) Address 1 I V0,0 P J Owner/Resident Signature Printed Name C.& v Q Email (optional) Address Owner/Resident Signature Printed Name NVA� Email (optional) Address � i W Owner/Resident Signature Printed Name Email (optional) Address dg f i1r'e L� i�G Owner/Resident Signature Printed Name Y\ h Email (optional) Address !1121 W`11v it u Q Owner/Resident Signature Av Printed Name Email (optional) Address Owner/Resident Signature -- Printed Name A-t h Ki r �. Email (optional) Address 41Z Mvd Owner/Resident Signature 4AQ Iiw� Printed Name Email (optional) Address 2 ddU 5-7-- Owner/Resident rOwner/Resident Signature Printed Name Ot V] a", Email (optional) -e . Address C a f-0\, Owner/Resident Signature Printed Name Email (optional) -'d 00 Address Owner/Resident Signature Printed Name Email (optional) Address ba7 s ,4"ca- Owner/Resident Signature 444 Printed Name A Email (optional) ltAA Address (rzv IVIS Owner/Resident Signature coo---, R5zi7 �obrfsoq WFI� quo. (pyo hc- 14A PoLeasw,+ q4e ycZhxo-vco&Al +tu).5-a,7 s, - - - 54-� -A�+3 Printed Name 61 Email (optional) Address U WY- Owner/Resident Signature Printed Name ` �7 Email (optional) Address �'y3� � a �1 Owner/Resident Signature Printed Name Email (optional) Address L Ct-�'V�NAJ Owner/Resident Signature Printed Name cul Email (optional) Address Owner/Resident Signature Printed Name Email (optional) Address Owner/Resident Signature Printed Name �3 S d U2A Email (optional) Address Owner/Resident Signature Printed Name c,si-; l Email (optional) Address 1 ,515 as OT e t Owner/Resident Signature 4l v im Printed Name 3&C06zr►-- S6 k Email (optional) Address IS 3 N o,4 0 i 94x� Owner/Resident Signature 6tA4 Printed Name k�� aV cc, Email (optional) Address Lam. Codjsylg4vA Ad Owner/Resident Signature rl� t•�✓ Printed Nameu•�.�� C��k Email (optional) Address VS112 Owner/Resident Signature Printed Name J w�►�- W�.�� Email (optional) Address y-., by.a�AL Owner/Resident Signature Printed Name � 'r (�.ct- � 60- cdlkla r"L e Email (optional) Address Owner/Resident Signature Printed Name Email (optional) 10 t&m -nmAta blo , e Address ZZ j C.-ti t wK a ' Owner/Resident Signature Printed Name SIS Email (optional) ¢I,.p��1)(�-(d nr7(-? �.- Address , — Owner/Resident Signature Printed Name 1<&IIM M a bo /,k Email (optional) Address 16 vnd,erw�ah Owner/Resident Signature Printed Name M w6 s/-P Email (optional) Y-MM-Q-41@ (�w►J��L•G�^-r Address ..%,r crvA oEamw RA Owner/Resident Signature Printed Name Ac NJ r0 Email (optional) Address Owner/Resident Signature Printed Name wah CSU Email (optional) Address 51, 1 l F 1 . Owner/Resident Signature Printed Name ��1 Email (optional) Address Owner/Resident Signature Printed Name Email (optional) Address JLo t'ht.Le � l `� Owner/Resident Signature �oxa 1 Lf WD Printed NametiM Email (optional) Address Owner/Resident Signature Printed Name -� � Email (optional) Address Owner/Resident Signature e 2,i!,n Printed Nameer— Email (optional) ' ( p � ) c lnr,�+i.r��ni e.f 0 g Address 331 W. Y`i Owner/Resident Signature eMO Printed Name G rvom 4, 7-s o.os Email (optional) 1 Go rnelf . e d u Address bo R " PI. Aa u N Owner/Resident Signature D. Evidence of Neighborhood Support Please provide evidence of neighborhood support for participation in the program. The attached form can be used for this request.Individuals providing signatures must live or own a property within the study area as identified in Section A. Signatures from residents representing at least 112 of the households whose property is next to the street segment in question is required for consideration. Additional copies of this page may be submitted to secure the required number of signatures. We the undersigned owners and residents of the Hillview, Hudson and Renzetti neighborhoods hereby offer our support for our neighborhood's participation in the traffic calming study. It is important to understand that the traffic calming countermeasure selected by City staff may require the removal of on-street parldng and can increase on-street noise levels. Printed Name bV81n Q 1,6 kh fft.o Email (optional) Address Vi Owner/Resident Signature Printed Name Email (optional) Address Owner/Resident Signature Printed Name Email (optional) Address lqI q- Owner/Resident Signature 0 4 „ _ o Printed Name J,1 l J l t 0, Cbv\-W� Email (optional) Address Owner/Resident Signature aXAJ* CY) M� Printed Name Email (optional) Address Owner/Resident Signature Printed Name Email (optional) Address Owner/Resident Signature Printed Name Email (optional) Address Owner/Resident Signature Printed Name Email (optional) Address Owner/Resident Signature Printed Name Email (optional) Address Owner/Resident Signature Printed carne Email (optional) Address Owner/ResidentSignet Printed Name It` 1 Email (optional) Address .; Owner/Resident Signature Printed Name c.Cie C' Ema%I (optional) Address Owner/Resident Signature .. ry Printed Name Email (optional) Address c Owner/Resident signature f _,.... .�µ _.... Printed Marne Email (optional) Address Owner/Resident Signature Printed Name Email (optional) Address Owner/Resident Signature D. Evidence of Neighborhood Support Please provide evidence of neighborhood support for participation in the program. The attached form can be used for this request.Individuals providing signatures must live or,own a property within the study area as identified in Section A. Signatures from residents representing at least 112 of the households whose property is next to the street segment in question is required for consideration. Additional copies of this page may be submitted to secure the required number of signatures. We the undersigned owners and residents of the Hillview, Hudson and Renzetti neighborhoods hereby offer our support for our neighborhood's participation in the traffic calming study. It is important to understand that the traffic calming countermeasure selected by City staff may require the removal of on-street parldng and can increase on-street noise levels. Printed Name s712; 14.,nA-0,41- _&_&da IS-Z Email (optional) ,� .,, �c ,,p � R1S a�.►a1 j. ngl"j Address .T iq Yf4<_a �5Ll V,~ Owner/Resident Signature Printed Name 0,-,s - " deo-Ao did Email (optional) elr,'sA-en .M4 L,/ . AM Address scn SA Owner/Resident Signature 4�f�_ Printed Name C,CA. �J Email (optional) ��s Z e (,a ^- l/. to Address 9,410,, Owner/Resident Signature f�c�m � e6ee6 Printed Name �� Email (optional) Address / LSOP Owner/Resident Signature Printed Name gnZJ Email (optional) 041IC'2 LAKoo 1Covv% Address Owner/Resident Signature Printed Name oElyr Email (optional) ' e f a s Address C../V, 4,k �- Owner/Resident Signature Printed NameL- 1a cn �;z Email (optional) Address ti /'I- Owner/Resident Signature r Printed Name C6rvy`sg h �2 4 , Email (optional) c Address 3t 3 Ply aoi �S�-• Owner/Resident Signature J'-,"t�cd , N, fir_ /LILF fa Printed Name e- t-A of-C- l Email (optional) Address 3 Ca ww, 6 St- Owner/Resident Signature Printed Name Email (optional) v 6 o f Address 3 1.5 PbQlks�tvT WI-r Owner/Resident Signature Printed Name aui�-� orJ�-Qs Email (optional) s D4w c rvj Address 2 5 Owner/Resident Signature Printed Name �1 a tl d 1 Email (optional) 2 b K e �, @ I M a Ca .e 6 U Address $ 25 Hili V%M PI Ovcb Owner/Resident Signaturev1314,Lea Printed Name poJ r Email (optional) Address O� Owner/Resident Signature Printed Name m . O jsv - Email (optional) Address t;56, 1)LIvkb ESI Owner/Resident Signature Printed Name <�,- - Email (optional) Address CSCC 6�L (civ 1 d Owner/Resident Signature G=, ---- f- � : P D. Evidence of Neighborhood Support Please provide evidence of neighborhood support for participation in the program. The attached form can be used for this request.Individuals providing signatures must live or own a property within the study area as identified in SectionA. Signatures from residents representing at least 1/2 of the households whose property is next to the street segment in question is required for consideration. Additional copies of this page may be submitted to secure the required number ofsignatures. We the undersigned owners and residents of the Hillview, Hudson and Renzetti neighborhoods hereby offer our support for our neighborhood's participation in the traffic calming study. It is important to understand that the traffic calming countermeasure selected by City staff may require the removal of on-street parking and can increase on-street noise levels. Printed Name IlEvi-e 'r Email (optional) 0 i k e VV4 r ootc cd VLJ Address i S Owner/Resident Signature Printed Name awc JVI C,.r,Aa^ Email (optional) Address Owner/Resident Signature &Q" AJA:6 Printed Name Sh4y L oc-klomd Email (optional) Address bbl Owner/Resident Signature (,p Printed Name M,-4 le .4 N R 0 R,s Email (optional) r,"Gas l WH I h Ic, Address L cL_ Owner/Resident Signature Printed Name - °l.Z(2 � Email (optional) - a-r- o,(Aao , cofv"' Address Owner/Resident Signature Printed Name 5T1 •r�i�j -l�S Email (optional) Address Owner/Resident Signature Printed Name Email (optional) Address Owner/Resident Signature Printed Name �2 ` P d`r���✓1 Email (optional) Address G:\(1190 spr Owner/Resident Signature Printed Name Email (optional) Address Owner/Resident Signature Printed Name Email (optional) —. ZAN um, _ Address Owner/Resident Signature Printed Name � A Email (optional) Address 2�? Owner/Resident Signature �. Printed Name }l M l l t�f(,`{Y�G'Uew US�r 8rLt, lt�( {�c �tr:� Email (optional) Address 1-2Z- Owner/Resident Signature k"cr Printed Name Email (optional) Address Owner/Resident Signature Printed Name Email (optional) Address Owner/Resident Signature Printed Name 1��.,. I�w►s�.� Email (optional) Address Owner/Resident Signature Printed Name Email (optional) Address Owner/Resident Signature Printed Name Email (optional) Address Owner/Resident Signature Printed Name Email (optional) Address Owner/Resident Signature Printed Name Email (optional) Address Owner/Resident Signature Printed Name Email (optional) Address Owner/Resident Signature _nl—1 E,EAIIir)g 11.19.2 01¢8 From: FHIA To: foresthomenews Cc: Bill Goodman;Paulette Rosa Subject: Town of Ithaca considering winter closure of Forest Home Walkway Date: Saturday,November 17,2018 4:53:48 AM Bill Goodman,Town Supervisor,has alerted me that a proposal from the Department of Public Works to close the Forest Home Walkway for the winter is to be considered an the next Town Board meeting. The meeting is on Monday,Nov 19,at 5:30pm. The meeting agenda is at htWs://docs.google.com/viewer? a=v&pid=sites&srcid=dG93bi5ndGhhY2EubnkudXN8cHJvdG90eXB1fGd40-jryZWRmNDFmM-jU3M2 2ZDE Assuming that there are no problems with my travel back to Ithaca from England,I plan to attend and convey the concern of FHIA,particularly on behalf of the many people who use the Walkway to and from work every day and have no safe alternative route. I understand that views sent by email to Paulette Rosa at PRosa(q—)towndthaca.ny.us prior to the meeting will be shared with the board. Bill Goodman is anxious to have the opportunity to meet very soon with Forest Home residents about the proposal and as soon as I am back in the country,he and I will find a date for an FHIA meeting in the very near future on the topic. Caroline Arms President,FHIA This message comes from the Forest Home Improvement Association(FHIA) Website:htlp://fhia.org Facebook:htip://www.facebook.com/g!/pages/Forest-Home-Improvement-Association/366523612170?v=wall Please send your Forest Home news or questions to:ForestHomeNews(c gmail.com Paulette Rosa From: emil.constanstantino@protonmail.com Sent: Sunday, November 18, 2018 2:34 PM To: Paulette Rosa Subject: Please Keep the Forest Home Walkway Open Hello Ms. Rosa, I am writing because I understand that the Ithaca Town Board is scheduled to consider the winter closure of the Forest Home Walkway. I sincerely hope that the Board will decide to keep the Walkway open. Speaking for myself, I live on the south end of Warren Road, near the intersection with Forest Home Drive. Households like mine rely upon the walkway to commute to and from work at Cornell, and there is simply no other safe way to commute by foot. Warren Road is quite busy during "rush hour" and there is no sidewalk or shoulder on which to walk. I would also add that the nearest TCAT stop to my area is at the bottom of the Forest Home Walkway, so mass transit is not an option for regular commuting. The second nearest stop is at the Hasbrouck Apartments, where the service is less frequent. Further,to get there from my home, one would need to walk along Warren Road by the golf course, where there is no sidewalk or shoulder. Thus, closing the Walkway would effectively eliminate mass transit as a commuting or traveling option for my neighborhood. The Town should be aware that if all residents of my neighborhood were forced to commute by car,the three-way intersection by the one-lane bridge would become a much busier and more dangerous intersection. Even now, during rush hour, I regularly hear the honking horns of drivers frustrated while navigating that intersection. The addition of all my neighbors to this commuter traffic will lead to even further crowding, waiting,frustration, and opportunities for accidents. The Town should also be aware of the significant financial burden that closing the Walkway would impose on area residents. For those who work at Cornell, some households in the area (like mine) are able to only own one vehicle because the Cornell-affiliated partner is able to walk to work. As a practical matter,the closure of the Walkway during the winter would necessitate that those households buy a second car. A second source of financial strain the Town should be aware of is that a regular parking pass for Cornell employees (at least at Martha Van Rensselaer Hall) is$850 per year. Forcing residents to drive to work for even part of the year would result in some households (again, like mine) needing to purchase such permits. While less pressing perhaps than the previous issues, I know that many of my neighbors use the path both for exercise and to walk their dogs. This becomes even more important in winter, when getting outside is a way to stay healthy and happy during darker and colder months. In this regard as well, closing the Walkway would result in a severe and negative impact on my quality of life and that of my neighbors. Thank you for taking the time to consider my view. I sincerely hope that the Board will resolve to keep the Walkway open during the winter season. Regards, Emil Constantino (617) 599-4050 1 From: Teresa M.Craighead To: Paulette Rosa Subject: Please do not close Forest Home Walkway in winter Date: Sunday,November 18,2018 11:54:50 AM Attachments: Forest Home Walkway diagram.docx Hi Paulette, I am writing in regard to the very recent announcement that the Town of Ithaca is considering winter closing of the Forest Home Walkway. I am alarmed as my husband as I live on Fairway Drive and are frequent users of the Walkway at all times of the year. Questions: 1. What is the Town proposing as an alternate pedestrian path up and down the hill during the winter months? Please note that there is no shoulder on the Warren Road hill and that the very narrow curbing is often snow-filled during the winter. It is not a safe or viable path down the hill during cold months. 2. What is the Town's reason for closing the Walkway in the winter? 3. Has the Town already instituted a "no winter maintenance" policy? I was on the Walkway both Saturday and Sunday, Nov. 17 and 18, and although many people had walked there it appeared that no clearing had been done.The Town is normally wonderful about clearing the Walkway, a service we have greatly appreciated over the years. Alternate proposal: Instead of closing the Walkway, we need straightforward repairs to make it safe and navigable during the winter. 1. First and foremost the rope railing on the lower portion of the trail needs to be extended about 6-10 feet so that it reaches all the way to the top of the hill.The path has gradually eroded since stairs were removed some years ago, and now the "top" of the first pitch is higher than it was when the trail was initially constructed. See attached diagram. A simple extension of the rope railing would make walking up and down the hill, when it is slippery and snow covered, much safer and more comfortable. 2. Other repairs would be welcome but aren't as high a priority.These include: a. Extending the rope railing further down the hill.This short section isn't as steep as at the top of the current rope railing, so is a lower priority. b. Repairing railing and posts on the upper part of the trail.The upper railing is falling apart, however, this section is not as steep as the lower, so is a lower priority. c. Raising railing at the top of the hill just off Warren Road. It was installed too low. When you are walking on several inches of snow your body is higher and you have to lean significantly sideways to reach the railing. d. Repair and fill in the trail bed. Erosion has gouged out the trail creating more of a gully in some sections than a flat trail surface. These repairs would be most welcome, but if the Town has to limit its investment there is no doubt that extending the rope railing UP the trail is the single most important thing that can be done. Final comments: • Because I am a runner, I get around the adjacent neighborhoods as well as Forest Home. I noted a year or so ago that the town walkway linking BOCES and Dewitt Middle School to Tareyton Park was repaved. Of course, that walkway is used by school kids and it is essential that it be maintained. However, it didn't appear to be in bad repair and I am stumped as to why the Town would invest more in an already well-maintained path while the Forest Home Walkway is neglected. • Forest Home has been affected by many road and bridge closures, primarily on Forest Home Drive, over the past 15 years.The closures themselves often last more than a year and impact both drivers and pedestrians who have find a way around. Haven't we had our share of closures and inconvenience? I realize infrastructure has to be maintained and closed from time to time for repairs, but often we see closures and then nothing happening for months on end. We are real people in Forest Home. We have to go places. We enjoy walking to those places and we contribute to the betterment of the environment and the longevity of infrastructure by doing so. Please help us by fixing the Walkway. Please do not close it. Please listen. Sincerely, Teresa Craighead 21 Fairway Drive Ithaca, NY 14850 *********************************************************************** Always remember to forget the troubles that pass your way;but NEVER forget to go out for o run each day. tmc'l(@cornell.edu h: 607.257.1190 c: 607.279.6054 From: Hope Harvey To: Paulette Rosa Subject: Forest Home Walkway Proposed Winter Closure Date: Sunday,November 18,2018 10:39:49 AM Dear Paulette Rosa, I received notice form Caroline Arms of the FHIA that the Town of Ithaca is considering winter closure of the Forest Home Walkway. I hope to attend the town board meeting tomorrow but am not sure I will be able to, so I wanted to write to express my concerns. I am one of many area residents who uses the Walkway to commute to and from work every day. We moved to our current residence on Warren Rd after confirming with the Town that the Walkway was maintained during the winter, and if the Walkway were to be closed, it would make my commute very difficult. If the Walkway were closed, there is no safe alternative route for me to commute in by foot since there are no sidewalks along much of Forest Home Dr. and Warren Rd. The Forest Home Walkway is also my route to the nearest bus stop. If I could not use the Forest Home Path, I would have to walk along Warren Rd -- without sidewalks -- to get to the next closest stop. Like many residents, I also use the path to exercise and walk my dog. In sum, closing the Forest Home Walkway would require many residents to use busy roads without sidewalks for their daily commutes, exercise, etc. This would be not just inconvenient, but also dangerous,particularly during the winter when snow makes it difficult to walk on the side of the road and the early sunset limits visibility. I hope the town will commit to maintaining the Forest Home Walkway. Best, Hope Harvey 122 Warren Rd. Ithaca NY 14850 (857) 259-7792 From: Meahan Kennedy To: Paulette Rosa Cc: Bill Goodman; FHIA Subject: Forest Home Walkway Date: Saturday,November 17, 2018 1:30:08 PM Hello, I am a Forest Home resident living on Fairway Drive. My husband and I were quite alarmed to see that the town is considering closing the Forest Home Walkway for the winter. We use the Forest Home Walkway daily. My husband uses it on his walk to and from work. And I use it with my 6 year old daughter to visit friends and walk to Beebe lake. If the walkway were to be closed, I am afraid it would prevent my daughter and I from our visits and outings. But even worse, it would force my husband to walk down the very dangerous hill on Warren Road. There are no sidewalks or real shoulders on this section of the road. It is a busy road and gets slick in the winter weather. It would be a terrible and dangerous walk for him and for everyone. I know there are many people who walk to Cornell who live on our street. Please keep the walkway open. I don't want my husband, or anyone, forced to compete with traffic on Warren Road Hill, ESPECIALLY in the winter time. Thank you, Meghan Kennedy On Nov 17, 2018, at 4:53 AM, FHIA <foresthomenews(a4gma,l,com>wrote: Bill Goodman, Town Supervisor, has alerted me that a proposal from the Department of Public Works to close the Forest Home Walkway for the winter is to be considered an the next Town Board meeting. The meeting is on Monday, Nov 19, at 5:30pm. The meeting agenda is at htWs:Hdocs.google.com/viewer? a—_v&nid=sites&srcid=dG93bi5ndGhhY2EubnlcudXN8cHJvdG90eXB1fGd4Ojcy ZWRmNDFmMM LJ3M2O2ZDE Assuming that there are no problems with my travel back to Ithaca from England, I plan to attend and convey the concern of FHIA,particularly on behalf of the many people who use the Walkway to and from work every day and have no safe alternative route. I understand that views sent by email to Paulette Rosa at PRosa .town.ithaca.nLus prior to the meeting will be shared with the board. Bill Goodman is anxious to have the opportunity to meet very soon with Forest Home residents about the proposal and as soon as I am back in the country, he and I will find a date for an FHIA meeting in the very near future on the topic. Caroline Arms President, FHIA This message comes from the Forest Home Improvement Association (FHIA) Website: htjP7 fhia.org Facebook: gip://www.facebook.com/#!/pages/Forest-Home-hnnrovement- Association/366523612170?v=wall Please send your Forest Home news or questions to: ForestHomeNews(a4gma,ilxoim From: Trevor I Pinch To: Paulette Rosa Cc: FHIA Subject: Forest Home Walkway Date: Saturday,November 17, 2018 8:49:28 AM Paulette Rosa for attention of Town Supervisor, Bill Goddman: Dear Bill: I understand the town is considering closing the Forest Home Walkway for the winter. I live on Crest Lane in Forest Home and regularly use the Walkway to get to my job at Cornell — I also use it for going for recreational walks at the weekends to access the trail around Bebe Lake. There is no path for pedestrians down Warren Road from Crest Lane and the road at the bottom is incredibly dangerous as cars and other traffic swing round from Forest Home Drive to go up Warren Road or else come down the steep hill at the end of Warren Road too fast. The Walkway allows for safe walking free of traffic. So I request the town in the interests of pedestrian safety to do everything possible to keep the walkway open. I understand it will require winter maintenance etc, and so I for one really appreciate what the Town is doing to help us pedestrians. Best wishes Trevor Pinch Trevor Pinch Goldwin Smith Professor of Science and Technology Studies Cornell University From: Merschrod To: Paulette Rosa; Bill Goodman Subject: FW:Town of Ithaca considering winter closure of Forest Home Walkway Date: Saturday,November 17,2018 6:02:19 AM Good morning Pauline and Bill, My wife and I live at 123 Warren Rd.just opposite the upper end of the Forest Home Walkway. The proposed dropping of maintenance is a disappointment because that route to the Cornell Campus is both shorter and safer, especially in the winter,than walking down Warren Rd. hill shared with cars that, on snowy days, will also be, literally, on a shared slippery slope. Please drop the proposal and continue the much appreciated winter maintenance of the walkway. Sincerely, Kris and Stella Merschrod From: FHIA<foresthomenews @gmail.com> Sent:Saturday, November 17, 2018 4:54 AM To:foresthomenews <foresthomenews @gmail.com> Cc: BGoodman@town.ithaca.ny.us; PRosa@town.ithaca.ny.us Subject:Town of Ithaca considering winter closure of Forest Home Walkway Bill Goodman,Town Supervisor, has alerted me that a proposal from the Department of Public Works to close the Forest Home Walkway for the winter is to be considered an the next Town Board meeting. The meeting is on Monday, Nov 19, at 5:30pm. The meeting agenda is at https:ZZdocs.google.com/viewer? a=v&pid=sites&srcid=dG93bi5pdGhhY2EubnkudXNBcHJvdG90eXBIfGd4OicvZWRmNDFmMiU3M2O2ZDE Assuming that there are no problems with my travel back to Ithaca from England, I plan to attend and convey the concern of FHIA, particularly on behalf of the many people who use the Walkway to and from work every day and have no safe alternative route. I understand that views sent by email to Paulette Rosa at PRosaLtown.ithaca.ny.us prior to the meeting will be shared with the board. Bill Goodman is anxious to have the opportunity to meet very soon with Forest Home residents about the proposal and as soon as I am back in the country, he and I will find a date for an FHIA meeting in the very near future on the topic. Caroline Arms President, FHIA This message comes from the Forest Home Improvement Association (FHIA) Website: http://fhia.org Facebook: http://www.facebook.com/#!/pages/Forest-Home-Improvement- Association/366523612170?v=wall Please send your Forest Home news or questions to: ForestHomeNewsl@gmail.com From: Bruce Brittain To: Paulette Rosa Cc: caroline.arms2gmail.com Subject: Closing the Forest Home Walkway for the Winter Date: Monday,November 19,2018 1:41:57 PM Hi Paulette— Would you please share this with the Town Board? Thank you. —Bruce I see that the possibility of closing the Forest Home Walkway is to be discussed at your meeting this evening. However, it would appear that this decision has already been made and implemented. There has been no maintenance of the Walkway since Thursday night's storm, and pedestrians have been forced to deal with the snow- covered trail. 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Y7 ✓ala.;v is�...fP :,a11✓sf✓a s..:' /y /! l✓ s ..rr/!s>Fl1 r/ ✓. f fsl.J.✓�. /„s h✓I� j i PP��sai�l n %� f,.,s. � .,t Jl r s 9 ,-✓ ,f/rl+��p�ld sfl6i �s�l,, � ,/�k, ,r%/,;,?f; ��1s✓l„ �,s.,,!/ � lya,/r✓ /,�, s.Fa ,�r ����;,.: bs,s r✓ ..rl✓„ v � s¢I/ �,; � t )l., (ei�r .p.<sr fl r '/' is .l .F s ✓ .F t /, s� �',t'.r�> C�➢ e.J1�/.e F/ % I-L, F ,�/t ,1� r-.. is s ./ h) �,./rJ �i ,l I .ssy�✓r�„ l f /. r� -,✓is, / ✓ ✓ i ✓I✓. r / ✓' �% aGl f �l,a ?I,. s'.1�r nu, A7ens✓Ibl'�sG%; r ✓, //,/%✓s f �fi, a f ,J r� s,,,,r�i��d,� k Fl/, // 1...,��. �I�isl %!l,f f l„� ✓ ✓,.I/�1�1s/✓'/r ,s ✓ „is „, ..✓,,. se:�s / „lin .Jl � ss n,'Y' �l'. 1- 1,/, rAs/ ,, r%llis,r, � � s 1,,,/ r ./9ilf r.✓ r! ✓ � ss,�s � f/� :G//,- r/ J� Irl /�l!,1,�✓ ����/, �..,�,1/I'✓rr/)�/� �l/� rX�l /r ri � ,/... s ,.�// Gl ,,,r,,; ! s,✓.v,�✓ !s / ,,,u�rl I ��,. '/, �✓u ,,./1�,.� 1�1�„ i,.,�,IN „�„f,/�.1,i,iwlG�Gl�,v/� ,/i,�.,w<s s�„s,,s✓, �r�v,..., li„ ,,,.,,i, ,,,,,,,,;a ,,,,,,,,,,.,uRi,✓' Va,�l.., ✓.a/,,,n,,._.c�,!� phi � ����5(,�V1F �.��„fa.� .I,.r, 111L�tlNB TOWN OF ITHACA "COMMUNICATION WITH THOSE CHARGED WITH GOVERNANCE" FOR THE YEAR ENDED DECEMBER 31, 2017 SCIARABBA &CO WALKERLLP CERTIFIED PUBLIC ACCOUNTANTS BUSINESS CONSULTANTS October 25, 20|8 To the Supervisorand Town Board Town of Ithaca Ithaca, NY 14850 We have audited the financial statements of the governmental activities, the business-type activities, each major fund and the aggregate i i fund information of the Town oflth for the year ended December 31, 2017. Professional standards require that we provide you with information about our responsibilities under generally accepted auditing standards and Government Auditing Standards, as well as certain information related to the planned scope and timing of our audit. We have communicated such information in our letter to you dated April 30, 2018. Professional standards also require that we communicate to you the following information related to our audit. Significant Qualitative Aspects ofAouomvtixrPractices Management i responsible for the selection and use of appropriate accounting policies. The significant accounting liia used by the Town of Ithaca are described in Note | of the financial otutcrncnto. Nnnew accounting policies were adopted, and the application of existing n«6cico was not changed during 2017. Wcnoted nntransactions entered into by the Town of Ithaca curing the year for which there is u luck of authoritative guidance or consensus. All significant transactions have been recognized inthe financial statements inthe proper period. Accounting cotirnutca are an integral of the fiouuciu] atutcn\cnto prepared by rnunugcrncnt and are based on management's knowledge and experience about past and current events and assumptions about future t Certain uccnuntn tiutca are particularly sensitive hccuuoc of their significance to the financial otutcrncnto and because of the possibility that future events affecting them may differ significantly from those expected. The most sensitive cotirnutco affecting the financial otutcrncnto are: • The cotirnutco of the uunuu] required contribution (ARC) and actuarial accrued liability (AAL) for providing other postemployment benefits under the provisions of Government Accounting Statement No. 45. • The cotirnutc of net pension liability and pension expense under the provisions of Government Accounting Statement No. 08. We evaluated the key factors and assumptions used to develop the cotirnutco in determining that they are rcuoonuhlc in relation to the financial otutcrncnto taken as uvvhnlc. The financial statement disclosures are neutral, consistent and clear. /)dfiun///mYEncountered/oPerforming the Audit We encountered no difficulties in dealing with management inperforming and completing our audit. Corrected and Uncorrected Misstatements Professional standards require us to accumulate all known and likely rniootutcrncnto identified during the audit, other than those that are trivial, and communicate them to the appropriate level of management. Management has corrected all such misstatements. 4lOEast Upland Road Ithaca,New York 14850 607-272-5550/607-273-6357(faz) www.xwxlly.com The following entries were not recorded and were not material, individually or in the aggregate, to the financial statements taken as a whole: • To record current year sewer expense due to Cayuga Heights: $25,413 increase in accrued liabilities and home and community services. • To remove revenue associated with 2016 out of 2017 for permits/licenses: $22,829 decrease in permits/licenses and fund balance. Disagreements with Management For purposes of this letter, a disagreement with management is a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditor's report. We are pleased to report that no such disagreements arose during the course of our audit. Management Representations We have requested certain representations from management that are included in the management representation letter dated October 25, 2018. Management Consultations with Other Independent Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a "second opinion" on certain situations. If a consultation involves application of an accounting principle to the governmental unit's financial statements or a determination of the type of auditor's opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants. Other Audit Findings or Issues We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as the governmental unit's auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention. Other Matters Our audit engagements include various procedures that may change from year to year. Procedures include performing a risk assessment of the entity and developing a preliminary audit strategy. We considered the firm's past experience with the Town, the staff, complexity of accounting transactions, the internal accounting policies and procedures, and the industry. This evaluation then led to determining the focus of the audit, based on our assessed risk. We performed additional audit procedures which included sending third party confirmations and comparing them to internal records, applying analytical procedures to balances, vouching deposits to the records and deposit slips, and vouching expenses to the supporting documentation. We also selected a sample of expenditures and tested the related controls over approval and signature. When this process was complete, we prepared the financial statements at the fund level, prepared the conversion workpapers from information gathered during the audit, and prepared the government wide statements. We also updated sections of the Management's Discussion and Analysis. In relation to the current year financial statements, we have performed the following nonattest services: • We have converted the water and sewer funds to accrual basis of accounting and made related adjustments to debt and capital project funds. • We have prepared all entries to convert fund financial statements to government-wide financial statements (GASB 34). Management has accepted the proposed adjustments for the audit ended December 31, 2017. - 2 - With respect to the required supplementary information (Management Discussion and Analysis, the Schedule of Funding Progress for the Retiree Health Plan, the Schedule of Revenues and Expenditures Compared to Budget — Major Funds, the Schedule of the Town's Proportionate Share of the Net Pension Liability, and the Schedule of the Town's Pension Contributions), we applied certain limited procedures to the information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We did not audit the RSI and do not express an opinion or provide any assurance on the RSI. With respect to the supplementary information presented on pages 47-48, we made certain inquiries of management and evaluated the form, content, and methods of preparing the information to determine that the information complies with accounting principles generally accepted in the United States of America, the method of preparing it has not changed from the prior period, and the information is appropriate and complete in relation to our audit of the financial statements. We compared and reconciled the supplementary information to the underlying accounting records used to prepare the financial statements or to the financial statements themselves. In 2008, the Town implemented Government Accounting Statement No. 45, Accounting and Financial Reporting by Employers for Postemployment Benefits Other Than Pensions. The statement requires that employers measure, recognize and disclose on an annual basis amounts associated with the cost of providing other postemployment benefits (OPEB). The Town's 2017 Statement of Activities reflects an expense of $901,526, net of Town contributions of $47,600. The annual required contribution (ARC) is based on an actuarial estimate of the current period expense associated with providing current and future benefits. The Town's 2017 Statement of Net Position reflects a liability of $5,973,148 related to OPEB measured under GASB 45. That liability is to be incremented in future years by the annual measurement of the ARC. In arriving at the estimate, the Town utilized an alternative measurement method that is permitted for employers with fewer than 100 employees who are participating in their plan. The method involves some simplified calculations that are performed in a spreadsheet and does not require the services of an actuary. The Town's projected liability is based on the Town's commitment to provide a percentage of the cost of a retiree's annual health insurance premiums based on the number of years of service at the time of retirement. The measurement of other post-employment benefits does not include accumulated sick time that can be spent down upon retirement to cover retiree's portions of health insurance premiums. The Town has recorded a separate liability of$527,053 to estimate that obligation. The actuarial accrued liability (AAL) for future benefits to be paid was estimated at $8,675,669 at December 31, 2017. GASB requires that the actuarial accrued liability be valued triennially. The estimate is particularly sensitive to assumptions regarding trends in healthcare costs and interest rates. The assumptions underlying the calculation are detailed in Note 9 to the Town's 2017 financial statements. Statement 45 permits an employer, at the employer's option, to offset the accumulated liability associated with OPEB with assets that are irrevocably transferred to a trust or equivalent arrangement in which the assets are used exclusively to provide benefits to retirees in accordance with the terms of the plan. Thus, the Town could determine that they wish to fund a portion of the AAL by designating assets in the manner described above. - 3 - This information is intended solely for the use of the Supervisor, Town Board and management of the Town of Ithaca and is not intended to be and should not be used by anyone other than these specified parties. Very truly yours, J6 6;" /�'�l�L /it 0 Sciarabba Walker& Co., LLP - 4 - FINANCIAL STATEMENTS OF TOWN OF ITHACA ITHACA, NEW YORK FOR THE YEAR ENDED DECEMBER 31, 2017 TOWN OF ITHACA INDEX December 31, 2017 Tab IndependentAuditor's Report----------------------------------------------------------------------------------------------------------1 Management's Discussion and Analysis------------------------------------------------------------------------------------------2 Financial Statements 3 ------------------------------------------------------------------------------------------------------------------------- Independent Auditor's Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards 4 TOWN OF ITHACA TABLE OF CONTENTS December 31, 2017 Page IndependentAuditor's Report......................................................................................................... - Management's Discussion and Analysis .................................................................................I-XIX Statementof Net Position ................................................................................................................1 Statementof Activities.....................................................................................................................2 Balance Sheet—Governmental Funds.............................................................................................3 Reconciliation of the Total Fund Balances Shown in the Governmental Funds to Governmental Activities Shown in the Statement of Net Position ......................................................................................................................................4 Statement of Revenues, Expenditures, and Changes in Fund Balances —Governmental Funds ...........................................................................................5-6 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balance of the Governmental Funds to the Change in Net Position of Governmental Activities Shown in the Statementof Activities...........................................................................................................7-8 Statement of Net Position—Proprietary Funds................................................................................9 Statement of Revenues, Expenses, and Changes in Fund Net Position— ProprietaryFunds.....................................................................................................................10 Statement of Cash Flows —Proprietary Funds...............................................................................1 l Statement of Fiduciary Net Position—Agency Funds...................................................................12 Notes to Financial Statements.................................................................................................. 13-42 Schedule of Funding Progress for the Retiree Health Plan.........................................................43 Schedule of Revenues and Expenditures Compared to Budget— Major Funds.............................................................................................................................44 Schedule of the Town's Proportionate Share of the Net Pension Liability...................................45 Schedule of the Town's Pension Contributions.............................................................................46 Capital Projects Fund—Detailed Balance Sheet.....................................................................47 Capital Projects Fund—Detailed Revenues and Expenditures....................................................48 Independent Auditor's Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards........................................................................................49-51 SCIARABBA &CO WALKERLLP CERTIFIED PUBLIC ACCOUNTANTS BUSINESS CONSULTANTS INDEPENDENT AUDITOR'S REPORT Supervisor dTown Board Town of Ithaca Ithaca, New York |4850 Report on the Financial Statements We have audited the uccnn\puzg/ing financial otutcrncnto of the govcoln\cntu] activities, the huoincoo-tvDc activities, each major fund, and the aggregate remaining fund information of the Town of Ithaca, NY, as ofand for the year ended December 3|, 2017, and the related notes to the financial statements, which collectively comprise the Town's basic financial otmdcn\cnto as listed in the table ofcontents. Manmgmment'nRmnponxibilit»for the Financial Statements Management ioresponsible for the preparation and fair presentation nfthese financial statements inaccordance with accounting principles gcocrullyucccptcd inthe United States nfAmerica; this includes the design, implementation, and rnaiotcnuucc of iotccuu] control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due tnfraud nrerror. Auditor's Responsibility Our responsibility is to express opinions on these financial atutcn\cuta based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Govoroo,00/ ,4ndi/inu/ S/uouarus' issued by the CnnqpbnUcr General of the United States. Those standards require that we plan and perform the audit to obtain rcuoonuhlc uoouzuncc about whether the financial otutcrncnto are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the un\nunto and cioclnouzco in the financial otutcrncnto. The procedures selected depend on the auditor's judgment, including the uoocooncnt of the risks of material misstatement of the financial statements, whether due tnfraud nrerror. lnmaking those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial otutcrncnto in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, vvcexpress nn such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the oouoonuhlcncoo of significant accounting cotirnutco rnudc by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence vvchave obtained is sufficient and appropriate tnprovide u huoio for our audit opinion. 4lOEast Upland Road Ithaca,New York 14850 607-272-5550/607-273-6357(faz) www.xwxlly.com Opinion In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the Town of Ithaca, NY, as of December 31, 2017, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the Management's Discussion and Analysis (pages I-XIX), the Schedule of Funding Progress for the Retiree Health Plan (page 43), the Schedule of Revenues and Expenditures Compared to Budget - Major Funds (page 44), the Schedule of the Town's Proportionate Share of the Net Pension Liability (page 45), and the Schedule of the Town's Pension Contributions (page 46), be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Information Our audit was conducted for the purpose of forming an opinion on the financial statements that collectively comprise the Town of Ithaca's basic financial statements. The supplementary information presented on pages 47 through 48 is presented for purposes of additional analysis and are not a required part of the basic financial statements. The information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated, in all material respects, in relation to the basic financial statements as a whole. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated October 25, 2018 on our consideration of the Town of Ithaca's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering Town of Ithaca's internal control over financial reporting and compliance. jcc�" 4v& / Sciarabba Walker & Co., LLP Ithaca, New York October 25, 2018 The following is a discussion and analysis of the Town of Ithaca's financial performance for the year ended December 31, 2017. The Town of Ithaca discussion and analysis is designed to (a) assist the reader in focusing on significant financial issues, (b) provide an overview of the Town's financial activity, (c) identify changes in the Town's financial position (its ability to address the next and subsequent year challenges), (d) identify any material deviations from the financial plan (the approved budget), and(e) identify individual fund issues or concerns. The section is a summary of the Town's financial activities based on currently known facts, decisions, or conditions as provided by the Town's Finance Officer. It is also based on both the government-wide and fund-based financial statements. The results of the current year are discussed in comparison with the prior year, with an emphasis placed on the current year. This section is only an introduction and should be read in conjunction with the Town's financial statements, which immediately follow this section. HIGHLIGHTS Financial Highlights: • The Town's net position, as reflected in the Statement of Net Position, increased by $1,251,802 (5.32%). • Revenue, as reflected in the Statement of Activities, decreased $19,035 (0.10%). • Expenditures increased by $168,711 (0.94%). • The General Townwide Fund (the primary operating fund) fund balance increased by $359,671 (9.89%) for the year ended December 31, 2017. Town Highlights: • Year-end fund balance increased in general, highway, and fire funds and decreased in capital projects funds for major Town funds in Fiscal Year 2017. • In Fiscal Year 2017, the Town received prepaid property taxes of $2,031,600. $888,256 of which was allocated to the following funds: $315,982 general, $223,966 highway, $288,954 fire, $47,745 water, $9,618 sewer, and $1,991 lighting districts. These amounts have been reflected within the governmental funds as deferred inflows of resources. The remaining balance of$1,143,344 is cash due to the County which has been reflected within the general funds as a due to other governments at year-end. GENERAL FUND - Fund equity increased by $552,721, with revenues and other sources of $6,351,797 exceeding expenditures and other uses of $5,799,076. Real property tax increased while sales tax, mortgage tax collections, and state aid per capita decreased compared to 2016. Ending fund balance totaled $5,221,476, which includes reserves of $827,661 for the Parks and Open Space Plan Reserve, $239,196 for the General Benefit Reserve, $40,129 in the Preserve Maintenance Reserve and $9,844 in the Land Stewardship Reserve. (Townwide+Part-Town+ Risk) I HIGHWAY FUND - With revenues and other sources of $3,736,781 exceeding expenditures and other uses of $3,268,748, fund equity increased by $468,033. Ending fund balance of $2,267,511 includes reserves of$250,000 for the Highway Equipment Reserve and $79,321 for the General Benefit Reserve. WATER FUND - For Fiscal Year 2017, the net position of the Water Fund increased by $1,380,589. Operating and non-operating revenues totaling $4,759,308 exceeded operating and non-operating expenditures of$3,378,719. Year-end net position of$8,067,197 includes $23,811 for the General Benefit Reserve. SEWER FUND - Net position of the Sewer Fund decreased by $5,729 in Fiscal Year 2017. Operating and non-operating expenditures of $2,498,017 exceeded operating and non- operating revenues of $2,492,288. Net position at year-end of$5,408,416 includes $12,034 for the General Benefit Reserve. FIRE PROTECTION FUND - With revenues of $3,531,788 exceeding expenditures of $3,110,673, fund equity increased by $421,115 to total $2,078,828 at year-end. • The Town of Ithaca has an informal policy to maintain the fund balance percentage of any fund, calculated as the percentage of the fund's year-end unreserved net assets compared to the next year's budgeted expenditures, at a minimum of 25%. A 25% fund balance percentage represents the approximate amount necessary to cover the expense of three months of operations. For the year ended December 31, 2017, all major funds exceeded this 25% goal. • Collections of sales taxes increased while mortgage tax decreased in Fiscal Year 2017. SALES TAx - Collections increased to $3,184,969 in 2017 from the previous year's total of $3,003,943, an increase of$181,026 or 6.03%. Sales tax revenues are split between General Fund and Highway Fund. MORTGAGE TAX - Collections for 2017 totaled $279,791, a decrease of$6,436 or 2.25% over the previous year's total of$286,227. • Year-end balances for the Town's reserve accounts either increased or decreased over the prior year and are as follows: PARKS AND OPEN SPACE PLAN RESERVE - The General Fund includes reserve funds designated for the purpose of future park development and the purchasing of development rights, as outlined in the Town's Parks and Open Space Plan. During 2017, the Town transferred approximately $100,000 to the account based on a strong year of operations and used the funds to purchase additional reserved land. The balance at year-end was $827,661. HIGHWAY EQuiPMENT RESERVE - The Highway Fund includes reserve funds established for the purchase/replacement of highway equipment and machinery. $180,000 received from an equipment settlement was placed here in 2017. The balance at year-end was $250,000. GENERAL BENEFIT RESERVE - The General Fund, Highway Fund, Water Fund, and Sewer Fund equity includes reserve funds established for managing unanticipated increases in II employee fringe benefit costs (e.g. NYS Retirement, Health Insurance). The aggregate balance at year-end was $354,362. PRESERVE MAINTENANCE RESERVE - The General Townwide Fund includes reserve funds designated for the maintenance of the Pine Tree Wildlife Preserve, donated to the Town in 2013. In conjunction with the donation of the land, the amount of$40,000 was also donated to provide for future maintenance of the preserve. The balance at year end was $40,129. LAND STEWARDSHIP RESERVE - In 2014, the Town purchased the development rights to the Indian Creek Farm with financial assistance through a State of New York grant. This grant included $10,000 to be held in reserve by the Town, designated for the future stewardship of the Indian Creek Farm lands. For the year ended December 31, 2017, the balance of this reserve totaled $9,844. • The Capital Improvement Program (CIP) process continues to be improved and refined. Timely project reviews, detailed mapping, design, planning, and the development of five- year budget projections have strengthened the fiscal accountability of the Town's CIP, improving the Town's ability to analyze the cost of future borrowing needs and the potential impact that such long-term borrowing would have on the property tax levy and property tax rates. This analytical process assists the Town Board in prioritizing those projects that will better serve the needs of the Town residents and maintain the quality of the Town's transportation, water and sewer infrastructures. CONSTITUTIONAL DEBT LIMIT - The Town of Ithaca maintains a very low direct debt burden. At year-end the Town had exhausted only 3.47% of its debt-contracting power. • In December 2014, Moody's Investors Service upgraded the Town's bond rating from Aa2 to Aal. The Aal bond rating was affirmed on February 14, 2017 by Moody's and is reflecting the Town's "moderately-sized tax base with above-average income levels and significant institutional presence, strong financial management and sound budgeting practices, ample reserve levels, and a modest debt profile." OVERVIEW OF THE FINANCIAL STATEMENTS This annual report consists of three parts: MD&A (this section), the basic financial statements, and required supplementary information. The basic financial statements include two kinds of statements that present different views of the Town: • The first two statements are government-wide financial statements that provide both short-term and long-term information about the Town's overall financial status. • The remaining statements are fund financial statements that focus on individual parts of the Town, reporting the Town's operations in more detail than the government-wide statements. The fund financial statements concentrate on the Town's most significant funds. • The governmental funds statements tell how basic services were financed in the short term as well as what remains for future spending. The governmental activities include most of the Town's basic services such as public safety,parks and recreation, and general administration. Property taxes finance most of these activities. III • The proprietary funds provide the same type of information as the government-wide financial statements, only in more detail. Enterprise funds are used to report the funds presented as business-type activities in the government-wise financial statements. The enterprise funds are those that the Town charges customers to provide. These include the sewer and water services offered by the Town. • Fiduciary funds statements provide information about the financial relationships in which the Town acts solely as a trustee or agent for the benefit of others. The financial statements also include notes that explain some of the information in the statements and provide more detailed data. The statements are followed by a section of required supplementary information that further explains and supports the financial statements with a comparison of the Town's budget for the year. GOVERNMENT-WIDE STATEMENTS The government-wide statements report information about the Town as a whole using accounting methods similar to those used by private-sector companies. The statement of net position includes all of the Town's assets and liabilities. All of the current year's revenues and expenses are accounted for in the statement of activities regardless of when cash is received or paid. The two government-wide statements report the Town's net position and how they have changed. Net position, the difference between the Town's assets and liabilities, is one way to measure the Town's financial health or position. • Over time, increases or decreases in the Town's net position are an indicator of whether its financial position is improving or deteriorating,respectively. • To assess the Town's overall health, you need to consider additional non-financial factors such as changes in the Town's property tax base and the condition of facilities and infrastructures. In the government-wide financial statements, the Town's activities are shown as governmental activities and business-type activities. The Town's basic services are included as governmental activities such as road maintenance (transportation), and administration (general governmental support). Property taxes finance most of these activities. Business-type activities are reported separately as they recover the majority of their expenses through charges to customers for the services provided. FUND FINANCIAL STATEMENTS The fund financial statements provide more detailed information about the Town's funds, focusing on its most significant or "major" funds — not the Town as a whole. Funds are accounting devices the Town uses to keep track of specific sources of funding and spending on particular programs: • Some funds are required by State law and by bond covenants. IV • The Town establishes other funds to control and to manage money for particular purposes (such as repaying its long-term debts) or to show that it is properly using certain revenues. The Town has three kinds of funds: • Governmental Funds: Most of the Town's basic services are included in governmental funds, which generally focus on (1) how cash and other financial assets can readily be converted to cash flow in and out and (2) the balances left at year end that are available for spending. Consequently, the governmental funds statements provide a detailed short-term view that helps you determine whether there are more or fewer financial resources that can be spent in the near future to finance the Town's programs. Because this information does not encompass the additional long-term focus of the government-wide statements, reconciling statements (page 4 and pages 7-8) have been added to explain the relationship (or differences)between them. • Proprietary Funds: Consist of the water and sewer funds, those funds for which the Town provides services and then charges customers for providing the service. The proprietary statements include all assets and liabilities, both short-term and long-term, including debt and capital assets. Accrual accounting is used and focus is on economic resources. • Fiduciary Funds - Agency Funds: The Town acts in an agency capacity for assets that are ultimately transferred to others, such as payroll withholdings. The Town also reports deposits associated with its rental activities in this fund. The Town excludes these activities from the government-wide financial statements because it cannot use these assets to finance its operations. V FINANCIAL ANALYSIS OF THE TOWN AS A WHOLE The Town's combined net position increased by $1,251,802 or 5.32%. Current assets increased by $2,921,598 or 15.51%. Capital assets increased by $716,761 (net of 2017 depreciation expense of$1,529,495) or 2.65%. Long-term serial bond debt decreased by $1,089,000 or 9.18%. The decrease reflects the 2017 principal payments as no new bond proceeds were issued during the year. Unrestricted net position decreased by $810,766 or 11.41%. The Town's current ratio (ratio of current assets to current liabilities) was 4.2:1 at December 31, 2017. The Town's quick ratio (cash and assets easily converted to cash compared to current liabilities)was 2.7:1 at December 31, 2017. Figures A-1 and A-2 present condensed information derived from the Town's government-wide statements. FIGURE A-1 Governmental' Business-type . Condensed,Statement of Net Position Activities Activities 2,011 2416 2,011 2416 Current assets $ 13,305,871 $ 10,022,472 $ 8,455,647 $ 8,817,448 Non-current assets 11,851,649 11,745,594 15,912,733 15,302,027 Total Assets 25,157,520 21,768,466 24,368,384 24,119,475 Deferred pension outflow 1,046,889 1,962,790 87,775 181,357 Total Doferred Outflows of Resources 1,44+6,889 1,9629790" 87,775 � 181,357 Current liabilities $ 3,987,846 $ 1,999,781 $ 1,209,576 $ 1,418,296 Non-current liabilities 9,930,687 10,110,181 9,698,936 10,762,736 Total Liabilities 13,918,533 12,109,962, 10,908,512, 12,181,032, Deferred inflows 987,083 199,043 72,030 19,046 Total Deferred Inflows of Resources 987,483 199,443 72,430" 19,046 Invested in capital assets,net of debt $ 8,629,719 $ 8,165,712 $ 8,365,663 $ 7,023,909 Restricted 1,446,151 1,192,685 35,845 32,505 Unrestricted net position 1 1,222,923 1 2,063,454 1 5,074,105 1 5,044,340 Total Net Position ' 11,298,793 ' 11,421,851 ' 13,475,613 ' 12,144;74 VI FIGURE A-2 Governmental Business-type Chorzges in Net Position Activities Activities 2,011 1,016 2017 2016 REVENUES Program revenues: Charges for services $ 409,666 S 231,631 S 5,371,656 S 6,078,124 Operating grants and contributions 371,277 429,205 - - Capital grants and contributions 235,042 126,969 - - General revenues: Property taxes 7,881,966 7,729,873 1,094,165 1,013,902 Non property taxes 3,266,137 3,072,508 - - Unrestricted state aid 281,051 289,486 - - Interest earnings 16,447 15,058 4,658 5,264 Other general revenues 373,484 333,505 1,405 464 Total Revenues 12,835,070" 11,228;235 6,471,884 7;497,754 PROGRAM EXPENSES General government support S 2,538,960 S 2,557,347 - Public safety 3,201,013 3,298,060 - - Transportation 3,330,976 3,460,526 - - Culture and recreation 1,132,655 1,056,923 - - Home and community services 2,150,312 1,946,407 - Water and sewer - - 5,701,236 5,567,178 Total Expenses 12,353,916 11,310,263 5,741,23+5 5,567,178 Transfers ( 604,211) ( 980,976) 604,211 980,976 CHANGE IN NET PO ITION 123,457 $ 1,072,004 1;374,859 2,511,552 Figure A-3 shows the sources of revenue for 2017. FIGURE A-3 Sources of Revenue for 2017 State and Other, federal Interest, Fines and 0.78% sources, 0.11% fees, 1.16% 4.60% Charges for services, 29.94% Sales and property taxes, 63.41% VII Figure A-4 represents the Town's 2017 expenditures by program. FIGURE A-4 Expenditures by Program Intereston long-term debt, DepreciationOand 1.71% General 5.53% support, 1338/°Homeand Publicsafety, community 17.73% services, 41.35% CultTransportation, recreation, 14.57% 5.73% Total costs of services provided by the Town (Figure A-5) were $18,055,152. These charges were offset by grants and contributions of $606,319 and charges for services of $5,781,322, resulting in net cost of services of$11,667,511. FIGURE A-5 Total Cost of Services Governmental Business--Type Total Programs 2}17 21117 General government support $ 2,538,960 $ - $ 2,538,960 Public safety 3,201,013 - 3,201,013 Transportation 3,330,976 - 3,330,976 Culture and recreation 1,132,655 - 1,132,655 Home and community services 2,150,312 - 2,150,312 Water and sewer - 5,701,236 5,701,236 Total ' 12;355,916 5,741,236 JS 18,455,152 Net Cost of,Services Governmental Business--Type Total Programs 2417 2417 2,011 General government support $ 2,261,002 $ - $ 2,261,002 Public safety 3,200,773 - 3,200,773 Transportation 3,083,182 - 3,083,182 Culture and recreation 1,020,368 - 1,020,368 Home and community services 1,772,606 - 1,772,606 Water and sewer - 329,580 329,580 Total 11,337,931 319,584" ' 11,667,511 VIII FINANCIAL ANALYSIS OF THE TOWN'S FUNDS Figure A-6 shows the change in fund balances for the year for the Town's funds as presented in the Town's Statement of Revenues, Expenditures and Changes in Fund Balance-Governmental Funds. At December 31, 2017, the Town reported a combined fund balance of$8,350,325. Total fund balance increased by $346,014 in 2017. FIGURE A-6 Governmental Funds Governmental Fund Balances Total Dollar 2017 2016 Change General Fund $ 5,221,476 $ 4,668,755 $ 552,721 Highway Fund 2,267,511 1,799,478 468,033 Fire Fund 2,078,828 1,657,713 421,115 Capital Projects Fund ( 1,454,426) ( 561,811) ( 892,615) Other Funds 236,936 440,175 ( 203,239) TotalFun(t Balance $ 8,350,325 $ 8,004,310 $ 346,015 GENERAL FUND BUDGETARY HIGHLIGHTS Actual revenues were higher than budget estimates by $116,150 and actual expenditures were less than budgeted expenditures by $929,002. Figure A-7 summarizes the General Fund original budget, actual expenditures and the variances for the year ended December 31, 2017. FIGURE A-7 Variance Condensed Budgeta q Comparison- Original Favorable General Fund 2017 Budget Actual (Unfavoralale)' REVENUES Real property taxes $ 3,106,000 $ 3,112,966 $ 6,966 Non-property taxes 1,113,000 1,181,168 68,168 State sources 389,650 458,368 68,718 All other 971,151 943,449 $ ( 27,702) Total Revenues $ 5,579,801 $ 5,695,951 11619150 EXPENDITURES General government support $ 1,890,720 $ 1,594,773 $ 295,947 Public safety 92,534 75,225 17,309 Transportation 530,450 369,715 160,735 Culture and recreation 1,158,679 951,103 207,576 Home and community services 1,354,525 1,163,127 191,398 Employee benefits 1,361,775 1,305,738 56,037 Total Expenditures $ 6;388,683 $ 5,459,681 929,002 Other financing sources $ 1,058,996 $ 655,846 $ ( 403,150) Other financing uses 250,114 339,395 ( 89,281) IX CAPITAL ASSETS The Town records expenditures for land, buildings, equipment, machinery and infrastructures (roads, water and sewer systems) as capital assets in the Statement of Net Position. Annual depreciation expense is recorded in the Statement of Activities to reflect the use of these assets over their useful lives. Land and construction in progress are not subject to depreciation. The Town's depreciation methods, assumptions regarding useful lives and capitalization thresholds are described in Notes 1K and 1L in the current year's Notes to the Financial Statements. In 2017, the Town expended $2,397,598 on capital additions. Figure A-8 reflects the changes in net capital assets. FIGURE A-8 G6Vernmental: Business-type Activities Activities Changes in Net Capital Assets 2417 2016' 2017 2416 Land $ 599,780 $ 599,780 $ - $ - Construction in progress 361,466 68,696 622,473 466,363 Buildings 3,119,352 3,269,327 - - Equipment and machinery 2,426,880 2,610,029 752,944 698,511 Furniture and furnishings 6,245 8,794 - - Non-building improvements 639,501 665,136 - - Infrastructures 1 4,698,425 1 4,523,832 1 14,537,316 1 14,137,153 Total $ 11,851,649 $ 11,745,594, 1$ 15,912;733 $ 15,342;027 Major additions in 2017 included: Infrastructure $ 1,265,678 Construction in progress 449,623 Equipment acquisitions 669,220 Non-building improvements 13,077 Total 2.397.598 DEBT ADMINISTRATION Long-term debt decreased by $1,089,000. The Town's liability for compensated absences increased $11,766 to $172,575 during 2017. In 2008, the Town implemented the provisions of Governmental Accounting Standards Board Statement No. 45, Accounting and Financial Reporting by Employers for Postemployment Benefits Other Than Pensions. The standard requires that a liability be recognized based on an actuarial measure of the current year funding costs associated with long-term liabilities for post- employment benefits. The Town's liability for post-employment benefits under GASB 45 was $5,973,148 as of December 31, 2017. The Town continues to recognize a liability for accumulated sick time that can be credited to employee's portions of health insurance at the date of retirement. The liability was $527,053 at December 31, 2017. The Town's most recent bond rating, as determined by Moody's Investor Service, Inc., is Aal. X Constitutional Debt Limit The Town of Ithaca is restricted by the New York State Constitution, Article VIII, Section 2, on the manner of creating and paying local indebtedness. The Town can only create debt for "Town" purposes. The outstanding payback period for indebtedness is restricted to the period of usefulness. As the issuer of debt(borrower) the Town is required to pledge in full faith and credit for the payments of principal and interest to the bondholder(investor). As required under the New York State Constitution, the Town of Ithaca cannot create debt in excess of 7% of the five (5)year average full valuation of taxable property. The following summary provides information regarding the Town's indebtedness, debt limit and net debt-contracting margin as of December 31, 2017. Five-year average full valuation of taxable property $ 1,373,054,174 Debt limit- 7% thereof 96,113,792 Inclusions: Serial bonds 12,822,750 Exclusions: Water and sewer debt(1) ( 9,600,820) Total net indebtedness 3,221,930 Net debt contracting margin $ 92,891,862 Percent of debt contracting power exhausted 3.47% (1) Sewer and Water indebtedness are excluded pursuant to Section 136.00(4-a) and 136.00(2), respectively, of the Local Finance Law. Detailed information regarding the Town's long-term liabilities is presented in Note 6C in 2017 Notes to the Financial Statements. Figure A-9 reflects changes in the Town's debt for 2017. FIGURE A-9 Governmental Activities Business'-type Activities Outstanding Debt 2017 2!016 2017 2016 Serial bonds $ 3,221,930 $ 3,579,882 $ 7,547,070 $ 8,278,118 SCLIWC serial bonds - - 2,053,750 2,438,000 Compensated absences 154,776 144,706 17,799 16,103 Net pension liability 953,622 1,677,531 82,703 156,669 Other post-employment benefits 5,357,091 4,563,764 616,057 507,858 Liability for accrued sick time to be applied to retiree's health coverage 1 527,053 1 453,097 1 - - Total $ 10,,214,472` $ 10,418,980 $ 10,311,379'1$ 11, 96,748 Figure A-10 depicts historical changes in fund balances for the Town of Ithaca for the period 2010 through 2017. Information for the Capital Projects Fund is omitted. XI TOWN OF ITHACA Figure A-10:Summary of Fund Balance by Fund For the Years Ended 2010-2011 2010 Description General I General Highway Water Sewer Fire Risk Debt Townwide I Part Town Protection Retention Service Fund Equity Bet ginning Detail Operating Unreserved Funds $ 2,079,386 $ 288,188 $ 283,277 $ 867,870 $ 1,513,991 $ 407,835 $ 85,299 $ 84,884 $ Equipment Reserve Fund - - 2,593 - - - - - Parks&Open Space Reserve Funds 516,827 - - - - General Benefit Reserve 151,912 44,843 82,994 13,625 7,764 - - - Total Fund Equity Beginning @ 1/1/2010 $ 2,748,125 $ 333,031 $ 368,864 $ 881,495 $ 1,521,755 $ 407,835 $ 85,299 $ 84,884 $ Add:Revenue&Other Sources 3,713,462 1,124,013 2,440,171 2,966,149 1,389,453 3,033,545 24,067 841,392 Deduct:Expenses&Other Uses (3,796,481) (1,089,792) (1,986,773) (2,611,329) (2,400,749) (3,283,484) ( 49,152) ( 832,184) Fund Equity Ending Balance @ 12/$1/2010 $ 2,665,106 $ 367,252 $ 822;262 $ ;1,236,:115 $ 510,459 ;$ 157;896 $ 60,314 $ 94,092 $ 2011 Description General General Highway Water Sewer Fire Risk Debt-T Townwide Part T( Protection Retention Service Fund Eauitv Beeinning Detail Operating Unreserved Funds $ 2,001,297 $ 345,002 $ 750,785 $ 1,228,125 $ 504,672 $ 157,896 $ 60,214 $ 94,092 $ Equipment Reserve Fund - - 27,190 - - - - - Other Reserves - - Parks&Open Space Reserve Funds 579,002 - - - - General Benefit Reserve 84,807 22,250 44,287 8,190 5,787 - - - Total Fund Equity Beginning @ 1/1/2011 $ 2,665,106 $ 367,252 $ 822,262 $ 1,236,315 $ 510,459 $ 157,896 $ 60,214 $ 94,092 $ Add:Revenue&Other Sources 3,889,647 1,181,278 2,382,578 3,119,759 2,205,573 3,411,157 53,126 775,858 Deduct:Expenses&Other Uses (3,814,600) (1,100,607) (2,080,604) (3,214,059) (1,849,535) (3,494,246) ( 18,105) ( 815,493) Fund Equity Ending Balance @ 12731/2011 $ 2,740,153 $ 441923 $ 1,124,236 S,';1,142,015 $ 866,497 $ 74;807 $ 95,235 $ 54,457 $ XII TOWN OF ITIIACA Figure A-10:Summary of Fund Balance by Fund For the Years Ended 2012-2013 2012 Description General General Highway J Water I Sewer Fire Risk Debt Townwide I Part Town Protection I Retention Service Fund Equity Beginnine Detail Operating Unreserved Funds $ 2,003,055 $ 425,622 $ 1,017,214 $ 1,133,810 $ 860,700 $ 74,807 $ 95,235 $ 54,457 $ Equipment Reserve Fund - - 62,650 - - - - - Other Reserves - - Parks&Open Space Reserve Funds 652,149 - - - - General Benefit Reserve 84,949 22,301 44,372 8,205 5,797 - - - Total Fund Equity Beginning @ 1/1/2012 $ 2,740,153 $ 447,923 $ 1,124,236 $ 1,142,015 $ 866,497 $ 74,807 $ 95,235 $ 54,457 $ Add:Revenue&Other Sources 3,978,276 1,353,861 2,377,555 3,420,692 2,737,945 3,680,181 15,623 1,103,235 Deduct:Expenses&Other Uses (4,219,959) (1,135,864) (2,056,104) (3,218,181) (2,308,314) (3,252,220) ( 7,142) ( 697,010) Fund Equity Ending Balance*12/31/2012 S 2,498,470 $ 665,920 $ 1,445,687 $ 1,344,526 $ 1,296,128 $ 502,768 $ 103,716 $ 460,682 $ 2013 Description General General Highway Water Sewer Fire Risk Debt Townwide Part Town Protection Retention Service Fund Equity Beginning Detail Operating Unreserved Funds $ 1,709,685 $ 627,279 $ 1,283,664 $ 1,336,309 $ 1,290,324 $ 502,768 $ 103,716 $ 460,682 $ Equipment Reserve Fund - - 105,285 - - - - - Other Reserves - - Parks&Open Space Reserve Funds 682,325 - - - - General Benefit Reserve 106,460 38,641 56,738 8,217 5,804 Restate Fund Balance-Proprietary Funds - - - 2,370,612 1,623,579 - - - Total Fund Equity Beginning @ 1/1/2013 $ 2,498,470 $ 665,920 $ 1,445,687 $ 3,715,138 $ 2,919,707 $ 502,768 $ 103,716 $ 460,682 $ Add:Revenue&Other Sources 4,316,872 1,322,731 2,666,182 3,622,012 2,442,544 3,495,644 37,080 651,549 Deduct:Expenses&Other Uses (4,045,767) (1,200,769) (2,470,789) (3,685,338) (1,943,940) (3,223,979) ( 18,570) ( 686,435) Fund Equity Ending Balance @ 12/31/2013 $ 2 769,575 $ 787,8V $ 1,641,080 $ 3;651,812,,$ 3,418,311, $ 774,433 $ 122,226 $ 425,796 $ Less:Amount of Additional Fund Balance Appropriated and Assigned in the Adopted 2014 Budget ( 442,203) ( 280,125) ( 66,360) ( 202,371) - - ( 177,650) Less:Reserved Portion of Fund Balance Parks&Open Space ( 758,248) - - - - Gen'l Benefit Purposes ( 180,260) ( 63,501) ( 99,799) ( 14,206) ( 7,994) Preserve Maintenance Reserve ( 40,006) - - - - Equipment - ( 150,655) Cemetery Maintenance - - - - - - - - Total Net Fund Equity Beginning 1/1/2014 $ 1,348,858 $ 444,256 $ 1,324,266 $ 3,637,606 $ 3,207,946 $ 774,433 $ 122,226 $ 248,146 $ XIII TOWN OF ITHACA Figure A-10:Summary of Fund Balance by Fund For the Year Ended 2014 2014 Description General I General Highway Water Sewer Fire Risk Debt Townwide Part Town Protection I Retention Service Fund Equity Beginning Detail Operating Unreserved Funds $ 1,791,061 $ 724,381 $ 1,390,626 $ 3,637,606 $ 3,410,317 $ 774,433 S 122,226 $ 425,796 $ Equipment Reserve Fund - - 150,655 - - - - - Other Reserves - - - Parks&Open Space Reserve Funds 758,248 - - - - General Benefit Reserve 180,260 63,501 99,799 14,206 7,994 Preserve Maintenance Reserve 40,006 - - - - - - - Total Fund Equity Beginning @ 1/1/2014 $ 2,769,575 $ 787,882 $ 1,641,080 $ 3,651,812 $ 3,418,311 $ 774,433 $ 122,226 $ 425,796 $ Add:Revenue&Other Sources 4,668,521 1,295,105 2,829,218 3,821,779 2,741,356 3,530,624 25,109 1,304,294 Deduct:Expenses&Other Uses (4,320,995) (1,249,251) (2,760,631) (4,446,348) (2,016,362) (3,266,917) ( 5,461) ( 302,909) Fund Equity Ending Balance @ 12/31/2014 $ 3,117,101 $ 833,736 $ 1,709,667 $ +3,027,243,,,,$ 4 143,305 $ 1,038,140 $ 141,874 $ 1,427181 $ Less:Amount of Additional Fund Balance Appropriated and Assigned in the Adopted 2015 Budget ( 599,813) ( 207,255) ( 324,711) ( 341,398) - - ( 247,416) Less:Reserved Portion of Fund Balance Parks&Open Space ( 735,544) - - - - Gen'1 Benefit Purposes ( 180,391) ( 63,548) ( 99,876) ( 14,220) ( 8,003) Preserve Maintenance Reserve ( 40,036) - - - - Land Stewardship ( 10,002) - Equipment - ( 212,109) Cemetery Maintenance - - - - - - - Total Net Fund Equity Beginning 1/1/2015 $ 1,551,315 $ 562,933 $ 1,072,971 $ 3,013,023 $ 39793,904 $ 1,038,140 $ 141,874 $ 1,179,765 $ XIV TOWN OF ITHACA Figure A-]0:Summary of Fund Balance by Fund For the Year Ended 2015 2015 Description General General Highway Water Sewer Fire Risk Debt Townwide Part Town Protection Retention I Service Fund Equity Beginning Detail Operating Unreserved Funds $ 2,151,128 $ 770,188 $ 1,397,682 $ 3,013,023 $ 4,135,302 $ 1,038,140 $ 141,874 $ 1,427,181 $ Equipment Reserve Fund - - 212,109 - - - - - Other Reserves - - Parks&Open Space Reserve Funds 735,544 - - - - General Benefit Reserve 180,391 63,548 99,876 14,220 8,003 Preserve Maintenance Reserve 40,036 - - - - Land Stewardship 10,002 - - Restate Fund Balance-Proprietary Funds - - - ( 4,583) ( 2,456) - - - Total Fund Equity Beginning @ 1/1/2015 $ 3,117,101 $ 833,736 $ 1,709,667 $ 3,022,660 $ 4,140,849 $ 1,038,140 $ 141,874 $ 1,427,181 $ Add:Revenue&Other Sources 4,688,822 1,337,045 2,884,917 4,969,655 2,780,846 3,609,064 28,597 1,253 Deduct:Expenses&Other Uses (4,310,472) (1,300,192) (2,769,365) (3,374,333) (2,025,646) (3,374,613) ( 10,156) (1,152,239) fund Equity Ending Balance @ 12131/2015 $ 3,495,451 $ 870489 $ 1,825,219 $ `;4,617,9$2 $ 4,896,049 $ 1,272;591 S 160,315 $ 276,195 Less:Amount of Additional Fund Balance Appropriated and Assigned in the Adopted 2016 Budget ( 93,244) ( 211,125) ( 251,319) ( 516,027) ( 195,000) Less:Reserved Portion of Fund Balance Parks&Open Space ( 811,260) - - - - Gen']Benefit Purposes ( 180,522) ( 63,595) ( 99,954) ( 14,234) ( 8,011) Preserve Maintenance Reserve ( 40,067) - - - - - Land Stewardship ( 10,010) - - Equipment - ( 249,988) - Cemetery Maintenance - - - - - - - - Total Net Fund Equity Beginning 1/1/2076 $ 2,360,348 $ 595,869 $ 1,223,958 $ 4,603,748 $ 4,372,011 $ 1,272,591 $ 160,315 $ 81,195 $ XV TOWN OF ITHACA Figure A-10:Summary of Fund Balance by Fund For the Year Ended 2016 2016 Description General I General Highway Water Sewer Fire Risk Debt Townwide Part Town Protection Retention Service Fund Equity Bgnnine Detail Operating Unreserved Funds $ 2,453,592 $ 806,994 $ 1,475,277 $ 4,603,748 $ 4,888,038 $ 1,272,591 $ 160,315 $ 276,195 $ Equipment Reserve Fund - - 249,988 - - - - - Other Reserves - - Parks&Open Space Reserve Funds 811,260 - - - - General Benefit Reserve 180,522 63,595 99,954 14,234 8,011 Preserve Maintenance Reserve 40,067 - - - - Land Stewardship 10,010 - Restate Fund Balance-Proprietary Funds - - - - 75,170 - - - Total Fund Equity Beginning(&.1/1/2016 $ 3,495,451 $ 870,589 $ 1,825,219 $ 4,617,982 $ 4,971,219 $ 1,272,591 $ 160,315 $ 276,195 $ Add:Revenue&Other Sources 4,461,753 1,433,344 3,356,080 4,350,656 2,689,598 3,580,837 20,126 602,046 Deduct:Expenses&Other Uses (4,319,865) (1,439,422) (3,381,821) (2,282,030) (2,246,672) (3,195,715) ( 13,535) ( 448,339) Fund Equity Ending Ualane e @ 12/31/2016 $ 3,637,339 S, 864,511, $ 1,799%478 $ 0,U6,008 $ 5,414,145 $ 1,657 713 $ 166,906 $ 429,902 Less:Amount of Additional Fund Balance Appropriated and Assigned in the Adopted 2017 Budget ( 385,346) ( 76,750) ( 324,805) ( 257,520) ( 6,000) ( 204,750) Less:Reserved Portion of Fund Balance Parks&Open Space ( 726,866) - - - - - - Gen']Benefit Purposes ( 169,306) ( 59,979) ( 88,480) ( 17,863) ( 14,642) - Preserve Maintenance Reserve ( 40,097) - - - - Land Stewardship ( 10,018) - - Equipment - ( 62,517) - Cemetery Maintenance - - - - - - - - Total Net Fund Equity Beginning 1/1/2017 $ 2,305,706 $ 727,782 $ 1,323,676 $ 6,668,745 $ 5,141,983 $ 1,651,713 $ 166,906 $ 225,152 $ XVI TOWN OF ITHACA Figure A-]0:Summary of Fund Balance by Fund For the Year Ended 2017 2017 Description General I General Highway Water Sewer Fire Risk Debt Townwide Part Town Protection Retention Service Fund Equity Beamnine Detail Operating Unreserved Funds S 2,691,052 S 804,532 $ 1,648,481 $ 6,668,745 S 5,399,503 $ 1,657,713 $ 166,906 $ 429,902 S Equipment Reserve Fund - - 62,517 - - - - - Other Reserves - - Parks&Open Space Reserve Funds 726,866 - - - - General Benefit Reserve 169,306 59,979 88,480 17,863 14,642 Preserve Maintenance Reserve 40,097 - - - - Land Stewardship 10,018 - - - - - - - Total Fund Equity Beginning @ 1/1/2017 $ 3,637,339 $ 864,511 $ 1,799,478 $ 6,686,608 $ 5,414,145 $ 1,657,713 $ 166,906 $ 429,902 $ Add:Revenue&Other Sources 4,670,448 1,681,222 3,736,781 4,759,307 2,492,288 3,531,788 127 251,257 Deduct:Expenses&Other Uses (4,310,780) (1,472,968) (3,268,748) (3,378,719) (2,498,017) (3,1 10,673) ( 15,329) ( 453,040) Fund Equity Ending Balance�7a 13/31/2017 $ 3,997,007 $ 1;072,765 $ 2,267;511 $ ;8,067196 $ 5,408,416 $ 2,078,828 $ 151,704: $ 228,119 $ Less:Amount of Additional Fund Balance Appropriated and Assigned in the Adopted 2018 Budget ( 417,444) ( 350,920) ( 280,998) ( 638,624) ( 108,500) ( 133,000) Less:Reserved Portion of Fund Balance Parks&Open Space ( 827,661) - - - - - - Gen']Benefit Purposes ( 169,807) ( 69,389) ( 79,321) ( 23,811) ( 12,034) - Preserve Maintenance Reserve ( 40,129) - - - - - Land Stewardship ( 9,844) - - Equipment - ( 250,000) Cemetery Maintenance - - - - - - Total Net Fund Equity Beginning 1/1/2018 $ 2,532,122 $ 652,456 $ 1,657,192 $ 8,043,385 $ 4,757,758 $ 1,970,328 $ 151,704 $ 95,119 $ XVII Factors Bearing on the Town's Future • On June 24, 2011, Chapter 97 of the Laws of 2011 (the "Tax Levy Limitation Law") was signed into law. The Tax Levy Limitation Law applies to all local governments, including most school districts, independent special districts, and to town and county improvement districts as part of their parent municipalities tax levies. The Tax Levy Limitation Law restricts, among other things, the amount of real property taxes (including assessments of certain special improvement districts) that may be levied by or on behalf of a municipality in a particular year, beginning with fiscal years commencing on or after January 1, 2012. It expires on June 16, 2016 unless extended. Pursuant to the Tax Levy Limitation Law, the tax levy of a municipality cannot increase by more than the lesser of(i) two percent (2%) or (ii) the annual increase in the consumer price index ("CPI"), over the amount of the prior year's tax levy. Certain adjustments would be permitted for taxable real property full valuation increases or changes in physical or quantity growth in the real property base as defined in Section 1220 of the Real Property Tax Law. A municipality may exceed the tax levy limitation for the coming fiscal year only if the governing body of such municipality first enacts, by at least a sixty percent vote of the total voting strength of the board, a local law (resolution in the case of fire districts and certain special districts) to override such limitation for such coming fiscal year only. There are permissible exceptions to the tax levy limitation provided in the Tax Levy Limitation Law, including expenditures made on account of certain tort settlements and certain increases in the average actuarial contribution rates of the New York State and Local Employees' Retirement System. Municipalities are also permitted to carry forward a certain portion of their unused levy limitation from a prior year. Each municipality prior to adoption of each fiscal year budget must submit for review to the State Comptroller any information that is necessary in the calculation of its tax levy for each fiscal year. The Town exceeded the allowable increase in the tax levy limit in Fiscal Years 2012, 2014, 2015, 2016 and 2017. • The 2008 recession has impacted the local economy of the Town to a lesser degree than the State and National economies, due in part to the stabilizing influence of the local colleges and other large employers. Cornell University and Ithaca College in particular, with combined totals of almost 10,000 employees and 28,000 students, supports a wide array of businesses in the retail, service and real estate sectors. The local unemployment rate has consistently been lower than the state and national unemployment rates during and after the 2008 recession. The average annual unemployment rate for 2011, 2012, 2013, 2014, 2015, 2016 and 2017, respectively, in Tompkins County was 6.1%, 6.1%, 5.2%, 4.4%, 4.4%, 4.2% and 4.2% compared with 8.3%, 8.5%, 7.7%, 6.3%, 5.3%, 4.9% and 4.7% for New York State, and 8.9%, 8.1%, 7.4%, 6.2%, 5.3%, 4.9% and 4.4% for the national average. Description 2011 2012 2013 2014 2015 2016 2017 National Average 8.9% 8.1% 7.4% 6.2% 5.3% 4.9% 4.4% New York State 8.3% 8.5% 7.7% 6.3% 5.3% 4.9% 4.7% Tompkins County 6.1% 6.1% 5.2% 4.4% 4.4% 4.2% 4.2% • The Town of Ithaca anticipates continuing an aggressive Capital Improvement Program (CIP). The Five-Year CIP for Fiscal Years 2018 - 2022 identifies various capital projects to XVIII be constructed at a total estimated cost of$20,475,000. Of this total, $10,400,000 is for the improvement of water infrastructure, $3,050,000 for sewer infrastructure, $1,000,000 for storm water drainage improvements, $4,050,000 for road improvements, $1,500,000 for improvements to Town facilities, and $475,000 for parks and trails development. Funding will be provided with $8,677,000 from current year revenues or reserves, $98,000 from grants and donations, and $11,700,000 from the issuance of new long-term bonded debt. • Sales tax collections in 2017 totaled $3,184,969, an increase of $181,026 or 6.0% over the 2016 total of$3,003,943. This reverses a two-year trend in 2015 and 2016 where collections fell short of the total for the prior year. 2017 also sets a new historical high for sales tax collections, surpassing the previous historical high total of $3,135,084 received in 2014. Collection of mortgage taxes declined again in 2017, with collections totaling $279,791, a decrease of$6,436 or 2.2%, from the total of$286,277 collected in 2016. This is the second year where collections have fallen short of the previous year total and have declined $135,969 or 32.7% from the historical high of$415,760 collected in 2016. • Taxable assessed valuation of real property in the Town has continued to increase. In 2013, the taxable assessed valuation of real property in the Town totaled $1,281,218,066. In 2017, the total was $1,409,909,397, an increase of 10.044% over this five-year period. The average annual increase has been 2.422%. Description 2013 2014 2015 2016 2017 Taxable Assessed Valuation $1,281,218,066 $1,294,998,380 $1,323,741,670 $1,366,007,677 $1,409,909,397 Change from Prior Year 0.599% 1.076% 2.220% 3.193% 3.214% FINANCIAL CONTACT The Town's financial statements are designed to present users (citizens, taxpayers, customers, investors and creditors) with a general overview of the Town's finances and to demonstrate the Town's accountability. If you have questions about the report or need additional financial information, contact the Town's Supervisor, Town of Ithaca, 215 North Tioga Street, Ithaca, NY 14850. XIX TOWN OF ITHACA STATEMENT OF NET POSITION December 31, 2017 ASSETS Governmental Business-type Activities Activities Total CURRENT ASSETS: Cash $ 10,831,597 $ 3,262,194 $ 14,093,791 Cash, restricted 1,446,209 35,845 1,482,054 Accounts receivable: Water and sewer rents - 1,096,557 1,096,557 Due from other funds 113,189 1,980,305 2,093,494 Due from other governments 801,490 2,078,487 2,879,977 Other receivables 100,000 2,259 102,259 Prepaid expenses 13,386 - 13,386 TOTAL CURRENT ASSETS 13,305,871 8,455,647 21,761,518 CAPITAL ASSETS, net: 11,490,183 15,290,260 26,780,443 Construction in progress 361,466 622,473 983,939 TOTAL CAPITAL ASSETS 11,851,649 15,912,733 27,764,382 TOTAL ASSETS 25,157,520 24,368,380 49,525,900 DEFERRED OUTFLOWS OF RESOURCES DEFERRED PENSION OUTFLOW 1,046,889 87,775 1,134,664 TOTAL ASSETS AND DEFERRED OUTFLOWS OF RESOURCES $ 26,204,409 $ 24,456,155 $ 50,660,564 See notes to financial statements. LIABILITIES Governmental Business-type Activities Activities Total CURRENT LIABILITIES: Accrued liabilities $ 526,110 $ 291,028 $ 817,138 Bond interest payable 24,840 47,606 72,446 Due to other funds 1,980,305 113,189 2,093,494 Due to other governments 1,143,344 24,000 1,167,344 Long-term debt, current portion 313,247 733,753 1,047,000 TOTAL CURRENT LIABILITIES 3,987,846 1,209,576 5,197,422 LONG-TERM DEBT, non current 2,908,683 8,867,067 11,775,750 PREMIUM ON BONDS PAYABLE 39,903 115,310 155,213 NET PENSION LIABILITY 953,622 82,703 1,036,325 LONGTERM LIABILITIES 6,028,479 633,856 6,662,335 TOTAL LIABILITIES 13,918,533 10,908,512 24,827,045 DEFERRED INFLOWS OF RESOURCES DEFERRED INFLOWS 987,083 72,030 1,059,113 NET POSITION INVESTED IN CAPITAL ASSETS, net of related debt 8,629,719 8,365,663 16,995,382 RESTRICTED: Culture and recreation 877,634 - 877,634 Equipment 250,000 - 250,000 Benefits 318,517 35,845 354,362 UNRESTRICTED 1,222,923 5,074,105 6,297,028 TOTAL NET POSITION 11,298,793 13,475,613 24,774,406 TOTAL LIABILITIES, DEFERRED INFLOWS AND NET POSITION $ 26,204,409 $ 24,456,155 $ 50,660,564 - 1 - TOWN OF ITHACA STATEMENT OF ACTIVITIES For the Year Ended December 31, 2017 Program Governmental Activities Revenue Operating Functions/Programs Charges for Grants and Expenses Services Contributions General governmental support $ 2,538,960 $ 16,507 $ 258,990 Public safety 3,201,013 240 - Transportation 3,330,976 15,213 - Culture and recreation 1,132,655 - 112,287 Home and community services 2,150,312 377,706 - Total governmental activities $ 12,353,916 $ 409,666 $ 371,277 Business-type activities: Water 3,378,719 3,084,600 - Sewer 2,322,517 2,287,056 - Total business-type activities 5,701,236 5,371,656 - $ 18,055,152 $ 5,781,322 $ 371,277 GENERAL REVENUES: Real property taxes and related tax items Non-property taxes Interest earnings Fines and fees - town court State aid not restricted to specific purposes Other miscellaneous revenues Transfers TOTAL GENERAL REVENUES CHANGE IN NET POSITION NET POSITION, beginning of year NET POSITION, end of year See notes to financial statements. Net(Expenses) Program Revenues and Revenue Changes in Net Position Capital Grants and Governmental Business-type Contributions Activities Activities Total $ 2,461 $ ( 2,261,002) $ - $ ( 2,261,002) - ( 3,200,773) - ( 3,200,773) 232,581 ( 3,083,182) - ( 3,083,182) - ( 1,020,368) - ( 1,020,368) - ( 1,772,606) - ( 1,772,606) $ 235,042 $ (11,337,931) $ - $ (11,337,931) - - ( 294,119) ( 294,119) - - ( 35,461) ( 35,461) - - ( 329,580) ( 329,580) $ 235,042 $ (11,337,931) $ ( 329,580) $ (11,667,511) $ 7,881,966 $ 1,094,165 $ 8,976,131 3,266,137 - 3,266,137 16,447 4,658 21,105 224,402 - 224,402 281,051 - 281,051 149,082 1,405 150,487 ( 604,211) 604,211 - 11,214,874 1,704,439 12,919,313 ( 123,057) 1,374,859 1,251,802 11,421,850 12,100,754 23,522,604 $ 11,298,793 $ 13,475,613 $ 24,774,406 - 2 - TOWN OF ITHACA BALANCE SHEET—GOVERNMENTAL FUNDS December 31, 2017 Major Funds General Highway Fire ASSETS AND OTHER DEBITS: Unrestricted cash $ 5,515,007 $ 1,805,726 $ 2,721,818 Restricted cash 1,116,888 329,321 - Due from other funds 92,213 87,149 - Due from other governments 342,445 396,780 - Prepaid expenses 91,209 26,034 - Other receivables 100,001 - - TOTAL ASSETS AND OTHER DEBITS $ 7,257,763 $ 2,645,010 $ 2,721,818 LIABILITIES, DEFERRED INFLOWS OF RESOURCES, FUND EQUITY, AND OTHER CREDITS: LIABILITIES: Accrued liabilities $ 520,872 $ 143,448 $ 354,036 Due to other funds 56,088 10,085 - Due to other governments 1,143,344 - - TOTAL LIABILITIES 1,720,304 153,533 354,036 DEFERRED INFLOWS OF RESOURCES: 315,982 223,966 288,954 FUND BALANCES: Nonspendable-prepaid expenses 91,208 26,034 - Restricted 1,116,830 329,321 - Committed - - - Assigned 1,549,282 1,912,156 2,078,828 Unassigned 2,464,156 - - TOTAL FUND BALANCES 5,221,476 2,267,511 2,078,828 TOTAL LIABILITIES, FUND EQUITY, AND OTHER CREDITS $ 7,257,762 $ 2,645,010 $ 2,721,818 See notes to financial statements. Nonmaj or Major Funds Funds Total Capital Other Governmental Proj ects Funds Funds $ 548,851 $ 240,195 $ 10,831,597 - - 1,446,209 - - 179,362 126 - 739,351 - - 117,243 - - 100,001 $ 548,977 $ 240,195 $ 13,413,763 $ 23,098 $ 1,268 $ 1,042,722 1,980,305 - 2,046,478 - - 1,143,344 2,003,403 1,268 4,232,544 - 1,991 830,893 - - 117,242 - - 1,446,151 528,514 - 528,514 - 236,936 5,777,202 ( 1,982,940) - 481,216 ( 1,454,426) 236,936 8,350,325 $ 548,977 $ 240,195 $ 13,413,762 - 3 - TOWN OF ITHACA RECONCILIATION OF THE TOTAL FUND BALANCES SHOWN IN THE GOVERNMENTAL FUNDS TO GOVERNMENTAL ACTIVITIES SHOWN IN THE STATEMENT OF NET POSITION December 31, 2017 Total fund balances in the fund financial statements for the governmental funds. $ 8,350,325 This amount differs from the balance of net position in the Statement of Net Position due to the following: Capital assets are included as assets in the government-wide statements and are added, net of accumulated depreciation. 11,851,649 Long-term liabilities for bonded debt are included as liabilities in the government- wide statements and are subtracted. (3,261,833) Receivables for revenues earned and measurable, but not available to provide financial resources, are included in the government-wide statements as assets and are added. 62,139 Long-term liabilities for compensated absences and other post employment benefits are included in the government-wide statements as liabilities and are subtracted. (5,511,867) Current liabilities for bond interest payable are included in the government- wide statements as liabilities and are subtracted. ( 24,840) Deferred outflows of resources are included in the government-wide statements and are added. 1,046,889 Net pension liability is included in the government-wide statements and is subtracted. ( 953,622) Prepaid pension expense is included in the fund financial statements and is subtracted. ( 103,856) Deferred inflows of resources are included in the government-wide statements and are subtracted. ( 156,191) Interfund receivables and payables within the governmental funds are eliminated in the government-wide statements. The amounts offset: Due from other funds 66,173 Due to other funds ( 66,173) Total Net Position - End of Year $ 11,298,793 See notes to financial statements. - 4 - TOWN OF ITHACA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS For the Year Ended December 31, 2017 Major Funds General Highway Fire REVENUES: Real property taxes $ 3,052,000 $ - $ 3,500,000 Real property tax items 60,966 1,250,001 - Non-property tax items: Sales tax 1,100,000 2,084,969 - Other non-property tax items 81,168 - - Departmental income 385,250 - - Intergovernmental charges 101,496 15,213 - Use of money and property 7,675 2,661 4,604 Rental income 30,674 - - Licenses and permits 22,829 - - Fines and forfeitures 224,402 - - Sale of property and compensation for loss 5,907 240,207 - Local sources 165,216 11,149 - State sources: Mortgage tax 279,791 - - State aid per capita 178,577 - - NYS highway improvement(CHIPS) - 132,581 - Miscellaneous - - 27,184 TOTAL REVENUES 5,695,951 3,736,781 3,531,788 Other Sources: Inter-fund transfers 655,846 - - TOTAL REVENUES AND OTHER SOURCES 6,351,797 3,736,781 3,531,788 See notes to financial statements. Major Nonmajor Funds Funds Total Capital Other Governmental Proj ects Funds Funds $ - $ 18,999 $ 6,570,999 - - 1,310,967 - - 3,184,969 - - 81,168 - - 385,250 - - 116,709 429 1,078 16,447 - - 30,674 - - 22,829 - - 224,402 - - 246,114 - - 176,365 - - 279,791 - - 178,577 - - 132,581 126 - 27,310 555 20,077 12,985,152 95,500 250,197 1,001,543 96,055 270,274 13,986,695 - 5 - TOWN OF ITHACA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS (continued) For the Year Ended December 31, 2017 Major Funds General Highway Fire EXPENDITURES: General governmental support $ 1,594,772 $ 72,016 $ 2,268 Public safety 75,225 - 3,108,405 Transportation 369,715 2,403,978 - Culture and recreation 951,103 - - Home and community services 1,163,128 - - Employee benefits 1,305,738 414,529 - Debt service(principal and interest) - - - TOTAL EXPENDITURES 5,459,681 2,890,523 3,110,673 Other Uses: Interfund transfers 339,395 378,225 - TOTAL EXPENDITURES AND OTHER USES 5,799,076 3,268,748 3,110,673 EXCESS (DEFICIT) OF REVENUES OVER EXPENDITURES 552,721 468,033 421,115 FUND BALANCE, beginning of year 4,668,755 1,799,478 1,657,713 FUND BALANCE, end of year $ 5,221,476 $ 2,267,511 $ 2,078,828 See notes to financial statements. Major Nonmajor Funds Funds Total Capital Other Governmental Proj ects Funds Funds $ - $ 3,093 $ 1,672,149 - - 3,183,630 100,379 16,053 2,890,125 157 - 951,260 - - 1,163,128 - - 1,720,267 - 454,367 454,367 100,536 473,513 12,034,926 888,134 - 1,605,754 988,670 473,513 13,640,680 ( 892,615) ( 203,239) 346,015 ( 561,811) 440,175 8,004,310 $ ( 1,454,426) $ 236,936 $ 8,350,325 - 6 - TOWN OF ITHACA RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE OF THE GOVERNMENTAL FUNDS TO THE CHANGE IN NET POSITION OF GOVERNMENTAL ACTIVITIES SHOWN IN THE STATEMENT OF ACTIVITIES FOR THE YEAR ENDED DECEMBER 31,2017 Net change in fund balances shown for total Governmental Funds. This amount differs from the change in net position reflected in the Statement of Activities due to the following: $ 346,015 Capital outlays for the acquisition of capital assets and capital projects are reported in the Governmental Funds as expenditures. In the Statement of Activities, the cost of those assets is allocated over their useful lives and reported annually as depreciation expense. In the Statement of Activities, acquisition costs are removed and depreciation expense is added as follows: Capital expenditures 1,255,650 Depreciation expense ( 998,252) 257,398 Proceeds from sales of equipment are recorded as revenue in the Governmental Funds. In the Statement of Activities, a gain or loss is recognized based on the net book value of the asset sold (cost minus accumulated depreciation) and the sale price of the equipment: Proceeds from equipment sales ( 59,540) Loss recognized ( 91,802) ( 151,342) Major revenues are recorded in the Governmental Funds when they are earned, measurable and available to provide current financial resources. In the Statement of Activities, major revenues are recognized when they are earned and measurable, regardless of when they become available. Current year revenues, earned and measurable, are recognized in the Statement of Activities. The Governmental Funds include amounts that were earned and measurable in the prior year, and these amounts are removed to prevent overstating revenues on the Statement of Activities: Current year revenues 62,139 Prior year revenues ( 60,879) 1,260 Bond principal payments are reflected as expenditures in the Governmental Funds. These payments are reflected on the Statement of Net Position as a reduction of debt obligations and are not included in the Statement of Activities. Bond principal payments for the current year are as follows: 357,952 See notes to financial statements. - 7 - TOWN OF ITHACA RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE OF THE GOVERNMENTAL FUNDS TO THE CHANGE IN NET POSITION OF GOVERNMENTAL ACTIVITIES SHOWN IN THE STATEMENT OF ACTIVITIES FOR THE YEAR ENDED DECEMBER 31,2017(continued) Interest on debt is reported in the Governmental Funds when the payments are rendered. In the Statement of Activities, interest expense is allocated over the time periods it pertains to. Interest expense allocated to applicable periods is greater than Governmental Funds interest expense by the following amount: 1,797 Payments for compensated absences are reported in the Governmental Funds as they are due. In the Statement of Activities, these amounts are reported in the periods that the liabilities are incurred. Current year expenditures for amounts due from prior years are removed and an expense is recognized for current year liabilities that have not been paid: Prior year expenses 144,706 Current year expenses ( 154,776) ( 10,070) Payments for other post employment benefits are reported in the Governmental Funds as they are due. In the Statement of Activities, an expense is recognized based on an actuarial estimate of the current year cost associated with amortizing the estimated present value of future benefits over a thirty-year period: ( 793,328) Payments for pension expenses are reported in the Governmental Funds as they are due. In the Statement of Activities, the expense is adjusted based on pension information provided by the retirement system in accordance with GASB 68: ( 136,013) Amortization of bond premiums are not reported in the Governmental Funds. In the Statement of Activities, an adjustment to interest expense is recognized based on the current year amortization associated with the bonds: 3,274 Interfund transactions are eliminated in the Statement of Activities. The amounts offset, and have a zero effect on operations: Transfers in 787,965 Transfers out ( 787,965) - Change in Net Position $ ( 123,057) See notes to financial statements. - 8 - TOWN OF ITHACA STATEMENT OF NET POSITION PROPRIETARY FUNDS December 31, 2017 PROPRIETARY FUNDS Sewer Water Fund Fund Total CURRENT ASSETS: Cash $ 2,594,919 $ 667,275 $ 3,262,194 Cash, restricted 12,034 23,811 35,845 Accounts receivable: Accounts receivables 2,259 - 2,259 Water and sewer rents 484,641 611,916 1,096,557 Due from other governments - 2,078,487 2,078,487 Due from other funds - 1,980,305 1,980,305 TOTAL CURRENT ASSETS 3,093,853 5,361,794 8,455,647 CAPITAL ASSETS, net: Equipment and machinery 445,827 307,117 752,944 Infrastructure 2,086,718 12,450,598 14,537,316 Construction in progress 156,853 465,620 622,473 TOTAL CAPITAL ASSETS 2,689,398 13,223,335 15,912,733 TOTAL ASSETS 5,783,251 18,585,129 24,368,380 DEFERRED PENSION OUTFLOW 31,860 55,915 87,775 TOTAL ASSETS AND DEFERRED OUTFLOWS OF RESOURCES $ 5,815,111 $ 18,641,044 $ 24,456,155 CURRENT LIABILITIES: Accrued liabilities $ 27,766 $ 263,262 $ 291,028 Bond interest payable - 47,606 47,606 Due to other funds 58,144 55,045 113,189 Due to other governments 24,000 - 24,000 Long-term debt, current portion - 733,753 733,753 TOTAL CURRENT LIABILITIES 109,910 1,099,666 1,209,576 LONG-TERM DEBT, non current - 8,867,067 8,867,067 PREMIUM ON BONDS PAYABLE - 115,310 115,310 NET PENSION LIABILITY 29,623 53,080 82,703 LONG-TERM LIABILITIES 252,484 381,372 633,856 TOTAL LIABILITIES 392,017 10,516,495 10,908,512 DEFERRED INFLOWS 14,678 57,352 72,030 INVESTED IN CAPITAL ASSETS, net of related debt 2,689,398 5,676,265 8,365,663 RESTRICTED: Benefits 12,034 23,811 35,845 UNRESTRICTED 2,706,984 2,367,121 5,074,105 TOTAL NET POSITION 5,408,416 8,067,197 13,475,613 TOTAL LIABILITIES, DEFERRED INFLOWS AND NET POSITION $ 5,815,111 $ 18,641,044 $ 24,456,155 See notes to financial statements. - 9 - TOWN OF ITHACA STATEMENT OF REVENUES, EXPENSES,AND CHANGES IN FUND NET POSITION PROPRIETARY FUNDS December 31, 2017 PROPRIETARY FUNDS Sewer Water Fund Fund Total OPERATING REVENUES: Charges for services $ 2,287,056 $ 3,084,600 $ 5,371,656 TOTAL OPERATING REVENUES 2,287,056 3,084,600 5,371,656 OPERATING EXPENSES: Cost of sales and services 1,890,017 2,317,401 4,207,418 Wages and benefits 251,665 383,570 635,235 Depreciation 135,391 395,851 531,242 Administration 45,444 68,652 114,096 TOTAL OPERATING EXPENSES 2,322,517 3,165,474 5,487,991 OPERATING INCOME ( 35,461) ( 80,874) ( 116,335) NON-OPERATING REVENUES (EXPENSES): Real property taxes 201,829 892,337 1,094,166 Intergovernmental charges - 405 405 Interest expense - ( 213,245) ( 213,245) Use of money and property 3,403 1,255 4,658 Sale of property - 1,000 1,000 TOTAL NON-OPERATING REVENUES 205,232 681,752 886,984 INTERFUND OPERATING TRANSFERS ( 175,500) 779,711 604,211 CHANGE IN NET POSITION ( 5,729) 1,380,589 1,374,860 NET POSITION,beginning of year, as restated 5,414,145 6,686,608 12,100,753 NET POSITION, end of year $ 5,408,416 $ 8,067,197 $ 13,475,613 See notes to financial statements. - 10 - TOWN OF ITHACA STATEMENT OF CASH FLOWS PROPRIETARY FUNDS December 31, 2017 PROPRIETARY FUNDS Sewer Water Fund Fund Total CASH FLOWS FROM OPERATING ACTIVITIES: Received from user charges and other assessments $ 2,275,159 $ 3,111,856 $ 5,387,015 Payments for administration ( 45,444) ( 68,652) ( 114,096) Payments for wages and benefits ( 237,121) ( 325,514) ( 562,635) Payments to suppliers for goods and services (2,044,033) (2,258,545) (4,302,578) NET CASH (USED IN) PROVIDED BY OPERATING ACTIVITIES ( 51,439) 459,145 407,706 CASH FLOWS FROM NON-CAPITAL FIINANCING: Real property taxes 201,829 892,336 1,094,165 Operating grants 5,231 ( 743,241) ( 738,010) Transfers (to) from other funds ( 175,500) 779,711 604,211 NET CASH PROVIDED BY NON-CAPITAL FINANCING ACTIVITIES 31,560 928,806 960,366 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES: Acquisition of capital assets ( 223,775) ( 918,173) ( 1,141,948) Principal paid on capital debt - ( 731,048) ( 731,048) Interest paid on capital debt - ( 217,597) ( 217,597) NET CASH USED IN CAPITAL AND RELATED FINANCIING ACTIVITIIES ( 223,775) ( 1,866,818) (2,090,593) CASH FLOWS FROM INVESTING ACTIVITIES: Interest on cash and CD's 3,403 1,255 4,658 NET CASH PROVIDED BY INVESTING ACTIVITIES 3,403 1,255 4,658 NET CHANGE IN CASH AND CASH EQUIVALENTS ( 240,251) ( 477,612) ( 717,863) Cash,beginning of year 2,847,204 1,168,698 4,015,902 Cash, end of year $ 2,606,953 $ 691,086 $ 3,298,039 RECONCILIATION OF OPERATING INCOME TO NET CASH PROVIDED BY OPERATING ACTIVITIES: Operating income $ ( 35,461) $ ( 80,874) $ ( 116,335) Adjustments to reconcile operating income to net cash(used in)provided by operating activities: Depreciation 135,391 395,851 531,242 Amortization of bond premiums - ( 10,913) ( 10,913) Changes in receivables ( 11,897) 27,256 15,359 Changes in deferred outflows of resources 30,258 63,324 93,582 Changes in liabilities ( 177,932) 19,719 ( 158,213) Changes in deferred inflows of resources 8,202 44,782 52,984 NET CASH (USED IN) PROVIDED BY OPERATING ACTIVITIES $ ( 51,439) $ 459,145 $ 407,706 See notes to financial statements. - 11 - TOWN OF ITHACA STATEMENT OF FIDUCIARY NET POSITION AGENCY FUNDS December 31, 2017 ASSETS: Cash $ 214,674 TOTAL ASSETS $ 214,674 LIABILITIES: Accounts payable and other liabilities $ 214,674 TOTAL LIABILITIES 214,674 NET POSITION - TOTAL LIABILITIES ANIS NET POSITION $ 214,674 See notes to financial statements. - 12 - TOWN OF ITHACA NOTES TO FINANCIAL STATEMENTS December 31, 2017 NOTE 1 —SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accompanying financial statements of the Town of Ithaca have been prepared in conformity with generally accepted accounting principles (GAAP) as applied to government units. The Governmental Accounting Standards Board (GASB) is the accepted standard setting body for establishing governmental accounting and financial reporting principles. A. Financial Reporting Entity The Town of Ithaca, which was established in 1821, is governed by the Town Law, other general municipal laws of the State of New York, and various local laws. The Town Board is the legislative body responsible for the overall operation, the Town Supervisor serves as Chief Executive Officer and Chief Fiscal Officer. The Town provides the following principal services: fire protection, transportation (streets and highways), recreation, planning and zoning, general administration, and public improvements. Street lighting is provided by the Town Board in nine separate areas of the Town called lighting districts. It is funded by means of a tax on the real property situated within each district. The Town provides for intersection street lighting from the General Fund appropriations. Fire protection for certain areas of the Town outside the village is provided by the Town Board via the Ithaca Fire Protection District. This district is funded by means of a tax on the real property situated within the district. Services for fire protection are contracted out through the City of Ithaca and the Village of Cayuga Heights. All governmental activities and functions performed for the Town of Ithaca are its direct responsibility. No other governmental organization has been included or excluded from the reporting entity. The financial reporting entity consists of the following, as defined by Governmental Accounting Standards Board (GASB) Statement 414, "The Financial Reporting Entity:" 1. The primary government which is the Town of Ithaca. 2. Organizations for which the primary government is financially accountable, and; 3. Other organizations for which the nature and significance of their relationship with the primary government is such that exclusion would cause the reporting entity's general purpose financial statements to be misleading or incomplete. The decision to include a potential component unit in the reporting entity is based on the criteria set forth in GASB Statement 414, including legal standing, fiscal dependency, and financial accountability. - 13 - B. Excluded from the Reporting Entity The following activities are jointly undertaken with other municipalities. These activities are excluded from the Town's financial statements. 1. Southern Cayuga Lake Intermunicipal Water Commission (SCLIWC) is a joint venture involving the Towns of Ithaca, Dryden, Lansing and the Villages of Cayuga Heights and Lansing. The joint venture operates under terms of an original agreement dated March 1, 1977. The agreement was restated on September 11, 2017. • SCLIWC's executive body consists of ten members, two members being appointed by each municipality. The Treasurer of SCLIWC is traditionally the Town of Ithaca's Supervisor. • The Town of Ithaca owns a majority (51.87%) of the Commission and must adopt its budget and any subsequent amendments. • The executive body has established charges at rates intending to be self- sustaining to cover all operating costs and debt service. Any shortfalls in revenues produced by such charges will ultimately be provided by contributions from participants. A separate audited financial statement is available from the administrative offices of the Southern Cayuga Lake Intermunicipal Water Commission, 1402 East Shore Drive, Ithaca, New York 14850. For the year ended December 31, 2017, the audited financial statements of the Commission showed: Total Assets $ 13,889,769 Deferred Outflows of Resources $ 360,905 Total Liabilities $ 7,397,798 Deferred Inflows of Resources $ 53,380 Net Position $ 6,799,496 Total Revenues $ 4,179,376 Total Expenses $ 3,695,034 2. The Ithaca Area Wastewater Treatment Plant (IAWTP) is a joint venture involving the Towns of Ithaca and Dryden, and the City of Ithaca. This joint venture was formed for the treatment of wastewater. The joint venture operates under terms of an original agreement dated December 22, 1981 and has been amended several times, the last of which is dated December 31, 2003. Construction of the treatment plant began in 1984 and was completed in 1986. • The Special Joint Committee (governing body) of the IAWTP consists of eight members; four from the City of Ithaca, three from the Town of Ithaca, and one from the Town of Dryden. The City of Ithaca operates the plant and has custody of the joint activity funds. • Capital costs allocated to the Town of Ithaca are 40.69% of the total. • The governing body has established charges at rates intending to be self- sustaining to cover all operating costs and debt service. Any shortfall in revenues produced by such charges is to be provided by equal share contributions from the participants. - 14 - The following information is from the separately issued financial statements of the IAWTP for the year ended December 31, 2016 (latest available): Total Assets $ 33,586,909 Deferred Outflows of Resources $ 483,922 Total Liabilities $ 21,509,500 Deferred Inflows of Resources $ 57,466 Net Position $ 12,503,865 Total Revenues $ 3,751,856 Total Expenses $ 5,674,301 C. Basis of Presentation 1. Government-wide Statements The Statement of Net Position and the Statement of Activities present financial information about the Town's governmental activities. These statements include the financial activities of the overall government in its entirety, except those that are fiduciary. Eliminations have been made to minimize the double counting of internal transactions. These statements distinguish between the governmental and business-type activities of the Town. Governmental activities generally are financed through taxes, state aid, intergovernmental revenues, and other exchange and non-exchange transactions. Business-type activities are financed in whole or in part by fees charged to external parties. Operating grants include operating-specific and discretionary (either operating or capital) grants, while the capital grants column reflects capital-specific grants. The Statement of Activities presents a comparison between direct expenses and program revenues for each function of the Town's governmental activities. Direct expenses are those that are specifically associated with and are clearly identifiable to a particular function. Program revenues include charges paid by the recipients of goods or services offered by the programs, and grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues. 2. Fund Financial Statements The fund statements provide information about the Town's funds, including fiduciary funds. Separate statements for each fund category (governmental, proprietary, and fiduciary) are presented. The emphasis of fund financial statements is on major Governmental and Enterprise Funds, each displayed in a separate column. All remaining Governmental Funds are aggregated and reported as non-major funds. Proprietary fund operating revenues, such as charges for services, result from exchange transactions associated with the principal activity of the fund. Exchange transactions are those in which each party receives and gives up essentially equal values. Non-operating revenues, such as subsidies and investments earnings, result from non-exchange transactions or ancillary activities. - 15 - The Town of Ithaca reports the following major Governmental Funds: • General Fund: This is the Town's primary operating fund. It accounts for all financial transactions that are not required by law or other provision to be accounted for in other funds. • Highway Fund: Used to account for revenues and expenditures for part town highway purposes. • Fire Protection District Fund: Used to record transactions involving the Town Fire Protection District and the contracts for fire protection with the City of Ithaca and Village of Cayuga Heights. • Capital Projects Fund: Used to account for capital improvements financed from current monies transferred from other funds, federal and state grants and proceeds of obligations. The Town also reports the following non-major funds: • Lighting District Fund: Used to record operation and maintenance transactions. Revenues derived from special districts' assessment. • Debt Service Fund: Used to account for interest earned on proceeds of borrowing for capital projects. Interest earned is transferred to the Debt Service Fund from the Capital Projects Fund and then to the Operating Funds for payment of principal and interest. Annual principal and interest payments due on serial bonds are transferred from the Town's other funds. Payments are made directly from the Debt Service Fund to the respective paying agents. • Inlet Valley Cemetery Fund: The Inlet Valley Cemetery Association was dissolved in 2010, upon which ownership of the cemetery devolved to the Town in accordance with state statutes. This account is used to account for funds used for maintenance of the cemetery. The Town reports the following major enterprise funds: • Water Fund: This enterprise fund is used to account for the activity of providing water service to residents of the Town of Ithaca. The Town is responsible for the collection of water revenues in the Town of Ithaca and contracts for delivery services with the Southern Cayuga Lake Intermunicipal Water Commission (SCLIWC) and Ithaca Area Wastewater Treatment Plant (IAWTP). • Sewer Fund: This enterprise fund is used to account for the activity of providing sewer service to residents of the Town of Ithaca. The Town is responsible for the collection of sewer revenues in the Town of Ithaca and contracts for treatment services with the Southern Cayuga Lake Intermunicipal Water Commission (SCLIWC) and Ithaca Area Wastewater Treatment Plant(IAWTP). The Town reports the following fiduciary funds: • Agency Fund: Used to account for those funds held in custody and subsequent distributions, transmittal or release to other governments, individuals or to other funds. - 16 - D. Measurement Focus and Basis of Accounting The Government-Wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash transaction takes place. Non- exchange transactions, in which the Town gives or receives value without directly receiving or giving equal value in exchange, include property taxes, grants and donations. On an accrual basis, revenue from property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from grants and donations are recognized in the fiscal year in which all eligibility requirements have been satisfied. Proprietary funds distinguish operating revenues and expenses from non- operating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund's principal ongoing operations. The principal operating revenues of the Town are charges to customers for sewer and water fees. Operating expenses for enterprise funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as non-operating revenues and expenses. The Governmental Funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this basis of accounting, revenues are recorded when measurable and available. Available means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. Material revenues that are accrued include real property taxes, state and federal aid sales tax and certain user charges. If expenditures are the prime factor for determining eligibility, revenues from federal and state grants are accrued when the expenditure is made. Expenditures are recorded when the related fund liability is incurred, except for principal and interest on general long-term debt, claims and judgments, and compensated absences, which are recognized as expenditures to the extent they have matured. General capital asset acquisitions are reported as expenditures in Governmental Funds. Proceeds of general long-term debt and acquisitions under capital leases are reported as other financing sources. E. Property Taxes Town real property taxes are levied annually on January 1, and become a lien on that date. Property owners can elect to pay their taxes using one of two options. Taxpayers may elect to pay their bill in two installments equal to 1/2 the total bill, plus a 2.5%processing fee. If the installment option is selected, the first payment is due between January 1 and January 14, without penalty, or between January 15, and January 20, with 1% interest (election to pay in installments ceases January 20). The second installment is due on or before July 1, payable to the County Division of Budget and Finance. Taxpayers may elect to pay their tax bill in full. Using this method, taxes are collected during the period January 1 to January 31 at face value and from February 1 to May 31 with interest added. The Town Receiver of Taxes collects all real estate taxes for Town and County purposes. The Town Receiver - 17 - distributes the collected tax money to the Town Supervisor prior to distributing the balance collected to the County on June 1. The Town thereby is assured of 100% tax collection. Responsibility for the collection of unpaid taxes rests with the County. Uncollected tax liens are sold annually by the County. F. Budgetary Data 1. Budget Policies —The budget policies are as follows: a. No later than October 5, the budget officer submits a tentative budget to the Town Board for the fiscal year commencing the following January 1. The tentative budget includes proposed expenditures and the proposed means of financing for all funds. b. After public hearings are conducted to obtain taxpayer comments, no later than November 20, the Town Board adopts the budget. c. All modifications of the budget must be approved by the Town Board. However, the Town Supervisor is authorized to transfer certain budgeted amounts within departments. d. Appropriations lapse at year-end. 2. Encumbrances Encumbrance accounting, under which purchase orders, contracts and other commitments for the expenditure of monies are recorded for budgetary control purposes to reserve that portion of the applicable appropriations, is employed in all funds. Encumbrances are reported as reservations of fund balances since they do not constitute expenditures or liabilities. Expenditures for such commitments are recorded in the period in which the liability is incurred. For the year ended December 31, 2017, no budgetary encumbrances were outstanding. In the interest of accurately monitoring, budgeting and maintaining an adequate operating fund balance in all funds, it is the Town's fiscal practice not to encumber unused appropriations into the ensuing year's budgeted operations. G. Cash and Investments The Town of Ithaca's investment policies are governed by State statutes. In addition, the Town of Ithaca has its own written investment policy. Town of Ithaca's monies must be deposited in FDIC insured commercial banks or trust companies located within the State. The supervisor is authorized to use demand accounts and certificates of deposit. Permissible investments include obligations of the U.S. Treasury and U.S. Agencies, repurchase agreements, and obligations of New York State or its localities. Collateral is required for demand deposits and certificates of deposit not covered by federal deposit insurance. Obligations that may be pledged as collateral are obligations of the United States and its agencies and obligations of the State and its municipalities and school districts. The written investment policy requires repurchase agreements to be purchased from banks located within the state and that underlying securities must be obligations of the federal government and New York State. Underlying securities must have market value of at least the cost of the repurchase agreement. - 18 - H. Accounts Receivable Accounts receivable are shown gross, with uncollectible amounts recognized under the direct write-off method. No allowance for uncollectible accounts has been provided since it is believed that such allowance would not be material. All receivables are expected to be collected within the subsequent fiscal year. I. Due to/from Other Funds Amounts due to and due from within the same fund type are eliminated in the Government-wide statements. Inter-fund receivables and payables are detailed in Note 4 on page 28. J. Inventories and Prepaid Items Purchases of inventoriable items are recorded as expenditures in the Governmental Funds at the time of purchase. Inventory-type items are considered immaterial and, consequently, are not provided in the Government-wide statements. Prepaid items represent payments made by the Town for which benefits extend beyond year-end. K. Capital Assets Capital assets are reported at historical cost. The Town depreciates capital assets using the straight-line method over the estimated useful life of the assets. Capitalization thresholds (the dollar value above which capital asset acquisitions are added to the capital asset accounts) and estimated useful lives of capital assets reported in the Government-wide statements are as follows: Estimated Capitalization Useful Threshold Life Building and improvements $ 5,000 30-40 years Non-building improvements 5,000 15-20 years Equipment and machinery 5,000 5-15 years Furniture and furnishings 5,000 10 years L. Infrastructure The Town includes long-lived improvements to roads, water and sewer systems as capital assets in the Government-wide statements. Infrastructures are reported at historical costs and are depreciated using the straight-line method over their estimated useful lives. Capitalization thresholds and estimated useful lives for infrastructures are as follows: Estimated Capitalization Useful Threshold Life Road systems $ 10,000 20 years Water and sewer systems 10,000 40 years - 19 - M. Deferred Outflows/Inflows of Resources In addition to assets, the statement of net position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. The Town has one item that qualifies for reporting in this category; the deferred outflow related to pensions reported in the Statement of Net Position. In addition to liabilities, the statement of net position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to a future period(s) and therefore, will not be recognized as an inflow of resources (revenue) until that time. The Town has two items that qualifies for reporting in this category; the deferred inflow related to pensions reported in the Statement of Net Position and the deferred inflow related to prepaid property taxes reported in each applicable governmental fund. N. Vested Employee Benefits Employees accrue (earn) vacation leave based on the number of years employed up to a maximum of 20 days a year. Upon separation from service, employees are paid for unused vacation time. Employees accrue (earn) sick leave at the rate of one day per month and may accumulate such credits up to a total of 120 days. Employees who retire apply any unused sick leave to pay for individual cost employee health insurance benefits and potentially add accumulated sick time to be credited to their service time in the New York State Retirement System. In 2017, the Town has recognized a liability of $527,053 based on accumulated sick time balances currently being spent down by retirees and accumulated sick time balances of current Town employees who have reached minimum retirement age and would be eligible to apply accumulated sick time towards the payment of health insurance premiums. The balance is allocated to a current ($10,442) and long-term ($516,611) liability in the Government-wide statements. The liability for accrued vacation time is reflected in the Government-wide statements as a long-term liability. In addition to providing pension benefits, the Town of Ithaca provides health insurance coverage for retired employees. Substantially all of the Town's employees may become eligible for these benefits if they reach normal retirement age while working for the Town. Health care benefits are provided through an insurance company whose premiums are based on the benefits paid during the year for the community. These benefits are further discussed in Note 9. O. Unemployment Insurance As of January 1, 1978, Town employees are covered by unemployment insurance. The Town has chosen to discharge its liability to the New York State Unemployment Insurance Fund by means of the benefit reimbursement method. This is a dollar-for-dollar reimbursement to the Unemployment Insurance Fund for the benefits paid to former employees and charged to the Town's account. The Town is exempt from federal unemployment insurance tax. - 20 - P. Deferred Compensation The Town offers their employees a Deferred Compensation Plan (the Plan) created in accordance with Internal Revenue Code Section 457. The Plan, which is available to all eligible participants, permits participants to defer a portion of their salary (100% of gross wages not to exceed $18,000 or $24,000 for employees over the age of 50 to allow for catch up contributions) until future years. Amounts deferred under the Plan are not available to the employee until termination, retirement, death or unforeseeable emergency. Effective, January 1, 1998, all amounts of compensation deferred under the Plan, all property and rights purchased with the amounts, and all income attributable to these amounts are the sole property of the employee. As required, the Town Supervisor is the Chairman of the Town's Deferred Compensation Committee and Trustee. Q. Risk Retention The Town of Ithaca is exposed to various risks of loss related to employee injury. During 1996 the Town established reservations of fund balance to finance certain uninsured risks of loss in the interest of lower annual insurance costs. Claims that will be paid from these reserves are for small employee medical claims. During the year ended December 31, 2017, $15,329 was paid out on behalf of the employees. R. Restricted Resources When an expense is incurred for purposes for which both restricted and unrestricted net position is available, it is the Town's policy to apply restricted funds before unrestricted funds, unless otherwise prohibited by legal requirements. S. Equity Classification 1. Government-wide Statements Equity is classified as net position and displayed in three components: • Invested in Capital Assets, Net of Related Debt Consists of capital assets including restricted capital assets, net of accumulated depreciation and reduced by the outstanding balances of any bonds, mortgages, notes or other borrowings that are attributable to the acquisition, construction, or improvement of those assets. • Restricted Net Position Consists of net position with constraints placed on the use either by 1) external groups such as creditors, grantors, contributors, or laws or regulations of other governments; or 2) law through constitutional provisions or enabling legislation. • Unrestricted Net Position All other net position that does not meet the definition of "restricted" or "invested in capital assets, net of related debt." - 21 - 2. Fund Financial Statements During the year ending December 31, 2011, the Town implemented Governmental Accounting Standards Board (GASB) Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions. Statement No. 54 changes the terminology and classification of fund balance to reflect spending constraints on resources, rather than availability for appropriation to provide users more consistent and understandable information about a fund's net resources. Constraints are broken down into five different classifications: nonspendable, restricted, committed, assigned, and unassigned. The classifications serve to inform readers of the financial statements of the extent to which the government is bound to honor constraints on the specific purposes for which resources in a fund can be spent. Governmental fund equity is classified as fund balance. In the fund basis statements there are five classifications of fund balance: • Nonspendable Fund Balance Consists of assets that are inherently nonspendable in the current period either because of their form or because they must be maintained intact, including prepaid items, inventories, long-term portions of loans receivable, financial assets held for resale and principal of endowments. The Town's nonspendable fund balance is comprised of prepaid expenses. • Restricted Fund Balance Consists of amounts that are subject to externally enforceable legal purpose restrictions imposed by creditors, grantors, contributors or laws or regulations of other governments; or imposed by law through constitutional provisions or enabling legislation. The Town's restricted fund balance includes a general purpose benefit reserve, a parks and open space plan reserve, a highway equipment reserve and a reserve for cemetery maintenance. • Committed Fund Balance Consists of amounts that are subject to a purpose constraint imposed by formal action of the Town's highest level of decision making authority (the Town Board) before the end of the fiscal year and that require the same level of formal action to remove the constraint. • Assigned Fund Balance Consists of amounts that are subject to a purpose constraint that represents an intended use established by the government's highest level of decision making authority or by their designated body or official. In funds other than the General Fund, the Town's assigned fund balance represents the residual amount of fund balance. In the General Fund, assigned fund balance represents the portion of fund balance appropriated for the ensuing year's budget. • Unassigned Fund Balance Represents the residual classification of the government's general fund and could report a surplus or a deficit. In funds other than the general fund, the unassigned classification is used only to report a deficit balance resulting from overspending for specific purposes for which amounts had been restricted, committed or assigned. - 22 - 3. Order of Use of Fund Balance The Town's policy is to apply expenditures against nonspendable fund balance, restricted fund balance, committed fund balance, assigned fund balance and unassigned fund balance at the end of the fiscal year. For all funds, nonspendable fund balances are determined first and then restricted fund balances for specific purposes are determined. Any remaining fund balance amounts for funds other than the General Fund are classified as committed or assigned fund balance. In the General Fund, committed fund balance is determined next and then assigned fund balance. The remaining amounts are reported as unassigned. Assignments of fund balance cannot cause a negative unassigned fund balance. 4. Fund Financial Statements - Restricted Fund Balance • The General Town-Wide Fund equity includes reserve funds established for the purpose of future park development and purchasing rights as outlined in the Town's Open Space Plan. The balance at the end of 2017 was $827,661. This Reserve Fund was designated by Board Resolution No. 170 of October 2, 1997. Interest earnings and additional funding for the year both increased the Reserve Fund. • The General Part-Town Highway Fund equity includes reserve funds established for the replacement of highway machinery. The balance at the end of 2017 was $250,000. This Highway Equipment Reserve Fund was designated by Board resolution No. 193 of November 8, 1984, and any unexpended appropriation for machinery at year end is to be transferred to the Reserve Fund. The Reserve Fund is also increased by interest earned for the year. • The General Town-Wide Fund, the General-Part Town Fund, the General Part-Town Highway Fund, the Water Fund, and the Sewer Fund equity include funds established for fiscally managing annual economic increases and decreases in employee fringe benefits (e.g. NYS Retirement Costs, Health Insurance). The aggregate balance at the end of 2017 was $354,362. This Reserve Fund was established at the June 13, 2005 Town Board meeting under Board Resolution No. 084. The reserve is funded on an annual basis as assessed by the Town Board. The reserve also is increased by interest earned for the year. The balance by fund is as follows: General Town-Wide Fund $ 169,807 General Part-Town Fund 69,389 General Part-Town Highway Fund 79,321 Water Fund 23,811 Sewer Fund 12,034 $ 354,362 • The General Town-Wide Fund equity includes reserve funds designated for the maintenance of the Pine Tree Wildlife Preserve, donated to the Town by a local family in 2013. In conjunction with the donation of the land, the amount of $40,000 was donated to provide for future maintenance of the preserve. As of December 31, 2017, the balance of the reserve totaled $40,129. • In 2014, the Town purchased development rights to Indian Creek Farm with financial assistance through a grant provided by New York State. The - 23 - grant included $10,000 to be held in reserve by the Town, designated for future stewardship of Indian Creek Farm lands. The reserve is reflected in the General Townwide Fund and had a balance of$9,844 at December 31, 2017. • The Inlet Valley Cemetery Fund reserve includes funds provided for the maintenance of the cemetery. The balance at the end of 2017 was $0. T. Inter-fund Transfers The operations of the Town give rise to certain transactions between funds, including transfers to provide services and construct assets. The amounts reported on the Statement of Revenues, Expenditures and Changes in Fund Balance- Governmental Funds for inter-fund transfers have been eliminated for the Statement of Activities. A detailed description of the individual fund transfers that occurred during the year is provided subsequently in these Notes. U. New Accounting Pronouncements GASB Statement No. 75 In June 2015, the GASB issued Statement No. 75, "Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions". The statement replaces the requirements of GASB Statement No. 45, "Accounting and Financial Reporting by Employers for Postemployment Benefits Other Than Pensions". Among other things, Statement 75 requires governments to report a liability on the face of the financial statements for the OPEB that they provide and requires governments in all types of OPEB plans to present more extensive note disclosures and required supplementary information about their OPEB liabilities. The Town is required to adopt GASB Statement No. 75 for its 2018 financial statements. GASB Statement No. 83 In November 2016, the GASB issued Statement No. 83, "Certain Asset Retirement Obligations". This Statement addresses accounting and financial reporting for certain asset retirement obligations (AROs). An ARO is a legally enforceable liability associated with the retirement of a tangible capital asset. A government that has legal obligations to perform future asset retirement activities related to its tangible capital assets should recognize a liability based on the guidance in this Statement. The Town is required to adopt GASB Statement No. 83 for its 2019 financial statements. GASB Statement No. 84 In January 2017, the GASB issued Statement No. 84, "Fiduciary Activities". This Statement's objective is to improve guidance regarding the identification of fiduciary activities for accounting and financial reporting purposes and how those activities should be reported. This Statement establishes criteria for identifying fiduciary activities of all state and local governments. The focus of the criteria generally is on (1) whether a government is controlling the assets of the fiduciary activity and (2) the beneficiaries with whom a fiduciary relationship exists. Separate criteria are included to identify fiduciary component units and postemployment benefit arrangements that are fiduciary activities. The Town is required to adopt GASB Statement No. 84 for its 2019 financial statements. GASB Statement No. 85 In March 2017, the GASB issued Statement No. 85, "Omnibus 2017". This Statement's objective is to address practice issues that have been identified during implementation and application of certain GASB Statements. This Statement - 24 - addresses a variety of topics including issues related to blending component units, goodwill, fair value measurement and application, and postemployment benefits (pensions and other postemployment benefits [OPEB]). Specifically, this Statement addresses the following topics: • Blending a component unit in circumstances in which the primary government is a business-type activity that reports in a single column for financial statement presentation. • Reporting amounts previously reported as goodwill and "negative" goodwill. • Classifying real estate held by insurance entities. • Measuring certain money market investments and participating interest-earning investment contracts at amortized cost. • Timing of the measurement of pension or OPEB liabilities and expenditures recognized in financial statements prepared using the current financial resources measurement focus. • Recognizing on-behalf payments for pensions or OPEB in employer financial statements. • Presenting payroll-related measures in required supplementary information for purposes of reporting by OPEB plans and employers that provide OPEB. • Classifying employer-paid member contributions for OPEB. • Simplifying certain aspects of the alternative measurement method of OPEB. • Accounting and financial reporting for OPEB provided through certain multiple-employer defined benefit OPEB plans. The Town is required to adopt GASB Statement No. 85 for its 2018 financial statements. GASB Statement No. 86 In May 2017, the GASB issued Statement No. 86, "Certain Debt Extinguishment Issues". This Statement's primary objective is to improve consistency in accounting and financial reporting for in-substance defeasance of debt by providing guidance for transactions in which cash and other monetary assets acquired with only existing resources—resources other than the proceeds of refunding debt—are placed in an irrevocable trust for the sole purpose of extinguishing debt. This Statement also improves accounting and financial reporting for prepaid insurance on debt that is extinguished and notes to financial statements for debt that is defeased in substance. The Town is required to adopt GASB Statement No. 86 for its 2018 financial statements. GASB Statement No. 87 In June 2017, the GASB issued Statement No. 87, "Leases". This Statement requires that government lessees: • Recognize the following: (a) a lease liability and (b) an intangible asset representing the lessee's right to use the leased asset; and • Report in its financial statements: (a) amortization expense for using the lease asset over the shorter of the term of the lease or the useful life of the underlying asset, (b) interest expense on the lease liability and (c) note disclosures about the lease. This Statement requires that government lessors: • Recognize: (a) a lease receivable and (b) a deferred inflow of resources and continue to report the leased asset in its financial statements; and • Report in its financial statements: (a) lease revenue, recognized over the term of the lease, corresponding with the reduction of the deferred inflow, - 25 - (b) interest income on the receivable; and (c) note disclosures about the lease. The Town is required to adopt GASB Statement No. 87 for its 2020 financial statements. GASB Statement No. 88 In April 2018, the GASB issued Statement No. 88, "Certain Disclosures Related to Debt, Including Direct Borrowings and direct Placements." This Statement's objective is to clarify which liabilities governments should include in their note disclosures related to debt. This Statement requires that all debt disclosures present direct borrowings and direct placements of debt separately from other types of debt. This Statement also requires governments to disclose additional essential debt-related information for all types of debt, including: • Amounts of unused liens of credit • Assets pledged as collateral for debt • Terms specified in debt agreements related to significant: o Events of default with finance-related consequences o Termination events with finance-related consequences o Subjective acceleration clauses The Town is required to adopt GASB Statement No. 88 for its 2019 financial statements. GASB Statement No. 89 In June 2018, the GASB issued Statement No. 89, "Accounting for Interest Cost Incurred before the End of a Construction Period." This Statement's objectives are (1) to enhance the relevance and comparability of information about capital assets and the cost of borrowing for a reporting period and (2) to simplify accounting for interest cost incurred before the end of a construction period. For financial statements prepared using the economic resources measurement focus, interest cost incurred before the end of a construction period should be recognized as an expense in the period in which the cost is incurred. Such interest cost should not be capitalized as part of the historical cost of a capital asset. For financial statements prepared using the current financial resources measurement focus, interest incurred before the end of a construction period should continue to be recognized as an expenditure on a basis consistent with governmental fund accounting principles. The Town is required to adopt GASB Statement No. 88 for its 2020 financial statements. GASB Statement No. 90 In August 2018, the GASB issued Statement No. 90, "Majority Equity Interests." This Statement's primary objectives are to improve the consistency and comparability of reporting a government's majority equity interest in a legally separate organization and to improve the relevance of financial statements information for certain component units. It defines a majority equity interest and specifies that a majority equity interest in a legally separate organization should be reported as an investment if a government's holding of the equity interest meets the definition of an investment. A majority equity interest that meets the definition of an investment should be measured using the equity method, unless it is held by a special-purpose government engaged only in fiduciary activities, a fiduciary fund, or an endowment (including permanent and term endowments) or permanent fund. Those governments and funds should measure the majority equity interest at fair value. - 26 - The Town is required to adopt GASB Statement No. 90 for its 2019 financial statements. V. Non-Cash Capital and Related Financing Activities -Proprietary Funds The Water Fund recorded debt and a receivable of$2,053,750 related to the Town of Ithaca's proportionate share of bond liabilities related to the Southern Cayuga Intermunicipal Water Commission. This activity is not reflected in the Statement of Cash Flows for Proprietary Funds. NOTE 2 —EXPLANATION OF CERTAIN DIFFERENCES BETWEEN GOVERNMENTAL FUND STATEMENTS AND GOVERNMENT-WIDE STATEMENTS Due to the differences in the measurement focus and basis of accounting used in the governmental fund statements and the Government-wide statements, certain financial transactions are treated differently. The differences result primarily from the economic focus of the Statement of Activities, compared with the current financial resources focus of the Governmental Funds. A. Total Fund Balances of Governmental Funds vs. Net Position of Governmental Activities: Total fund balances of the Town's governmental funds differ from "net position" of governmental activities reported in the Statement of Net Position. This difference primarily results from the additional long-term economic focus of the Statement of Net Position versus the solely current financial resources focus of the Governmental Fund Balance Sheet. B. Explanation of Difference between Governmental Funds Operating Statement and the Statement of Activities: Differences between the Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balance and the Statement of Activities fall into one of three broad categories. The amounts shown below represent these differences as follows: • Long-term revenue differences arise because Governmental Funds report revenues only when they are considered "available,"whereas the Statement of Activities reports revenues when earned. Differences in long-term expenses arise because Governmental Funds report on a modified accrual basis, whereas the accrual basis of accounting is used on the Statement of Activities. • Capital related differences include the difference between proceeds for the sale of capital assets reported on Governmental Fund Statements and the gain or loss on the sale of assets as reported on the Statement of Activities, and the difference between recording an expenditure for the purchase of capital items in the Governmental Fund Statements and depreciation expense on those items as recorded in the Statement of Activities. • Long-term debt transaction differences occur because both interest and principal payments are recorded as expenditures in the Governmental Fund statements, whereas interest payments are recorded in the Statement of Activities as incurred, and principal payments are recorded as a reduction of liabilities in the Statement of Net Position. - 27 - The basic financial statements contain a detailed reconciliation of 1) the items creating the differences between fund balance reported in the Governmental Fund Statements and net position reported on the Statement of Net Position and 2) the items creating the differences between the change in fund balance reported in the Governmental Fund Statements and the change in net position reported in the Statement of Activities. NOTE 3 —CASH The Town of Ithaca's investment policies are governed by State statutes, as previously described in these Notes. Deposits are valued at cost or cost plus interest and are categorized as either: 1. Insured or collateralized with securities held by the entity or by its agent in the entity's name; 2. Collateralized with securities held by the pledging financial institution's trust department or agency in the entity's name; or 3. Uncollateralized. Total financial institution (bank) balances at December 31, 2017, per the bank, were $16,556,112. 1 2 3 Governmental funds 12.947.412 $ $ Enterprise funds 3261.459 $ - $ - Agency funds $ 347,241 $ - $ - NOTE 4 —INTER-FUND ACTIVITY Inter-fund receivables and payables at December 31, 2017, were as follows: Inter-Fund Inter-Fund Fund Type Receivables Payables General town-wide $ 92,213 $ 56,088 Highway 87,149 10,085 Water 1,980,305 55,045 Sewer - 58,144 Capital projects - 1,980,305 $ 2,159,667 $ 2,159,667 Inter-fund revenues and expenditures at December 31, 2017, were as follows: Inter-Fund Inter-Fund Fund Type Revenues Expenditures General town-wide $ 655,665 $ 258,295 General part-town 181 81,100 Highway - 378,225 Water 817,789 38,078 Sewer - 175,500 Capital projects 95,500 888,134 Risk retention - - Non-major 250,197 - $ 1,819,332 $ 1,819,332 - 28 - NOTE 5 -CAPITAL ASSETS Capital asset balances and activity for the year ended December 31, 2017, were as follows: Beginning Disposals & Ending Balance Additions Reclassifications Balance Governmental Funds CAPITAL ASSETS THAT ARE NOT DEPRECIATED: Land $ 599,780 $ - $ - $ 599,780 Construction in progress 68,696 292,770 - 361,466 TOTAL NON-DEPRECIABLE HISTORICAL COST 668,476 292,770 - 961,246 CAPITAL ASSETS THAT ARE DEPRECIATED: Buildings 5,048,915 - - 5,048,915 Equipment and machinery 5,582,608 501,915 356,564 5,727,959 Furniture and furnishings 209,179 - - 209,179 Non-building improvements 1,010,983 13,077 - 1,024,060 Infrastructures 5,407,576 447,888 - 5,855,464 TOTAL DEPRECIABLE HISTORICAL COST 17,259,261 962,880 356,564 17,865,577 LESS ACCUMULATED DEPRECIATION: Buildings 1,779,588 149,975 - 1,929,563 Equipment and machinery 2,972,579 533,722 205,222 3,301,079 Furniture and furnishings 200,385 2,549 - 202,934 Non-building improvements 345,847 38,712 - 384,559 Infrastructures 883,744 273,295 - 1,157,039 TOTAL ACCUMULATED DEPRECIATION 6,182,143 998,253 205,222 6,975,174 TOTAL HISTORICAL COST, net $ 11,745,594 $ 257,397 $ 151,342 $ 11,851,649 Depreciation was charged to governmental functions as follows: General government support $ 113,186 Transportation 614,770 Culture and recreation 98,491 Home and community services 171,806 Total Depreciation Expense $ 998,253 - 29 - Beginning Disposals & Ending Balance Additions Reclassifications Balance Enterprise Funds CAPITAL ASSETS THAT ARE NOT DEPRECIATED: Construction in progress $ 466,363 $ 156,853 $ 743 $ 622,473 CAPITAL ASSETS THAT ARE DEPRECIATED: Equipment and machinery 796,172 167,305 - 963,477 Infrastructures 16,598,378 818,533 - 17,416,911 TOTAL DEPRECIABLE HISTORICAL COST 17,394,550 985,838 - 18,380,388 LESS ACCUMULATED DEPRECIATION: Equipment and machinery 97,661 112,872 - 210,533 Infrastructures 2,461,225 418,370 - 2,879,595 TOTAL ACCUMULATED DEPRECIATION 2,558,886 531,242 - 3,090,128 TOTAL HISTORICAL COST, net $ 15,302,027 $ 611,449 $ 743 $ 15,912,733 Depreciation was charged to enterprise funds as follows: Sewer fund $ 135,391 Water fund 395,851 Total Depreciation Expense $ 531,242 NOTE 6—LIABILITIES A. Pension Plans Plan Description The Town of Ithaca participates in the New York State and Local Employees' Retirement System (ERS) and the Public Employees' Group Life Insurance Plan (Systems). These are cost-sharing multiple-employer retirement systems. The Systems provide retirement benefits as well as death and disability benefits. Obligations of employers and employees to contribute and benefits to employees are governed by the New York State Retirement and Social Security Law (NYSRSSL). As set forth in the NYSRSSL, the Comptroller of the State of New York (Comptroller) serves as sole trustee and administrative head of the Systems. The Comptroller shall adopt and may amend rules and regulations for the administration and transaction of the business of the Systems and for the custody and control of their funds. The Systems issue a publicly available financial report that includes financial statements and required supplementary information. That report may be obtained by writing to the New York State and Local Retirement Systems, Gov. Alfred E. Smith State Office Building, Albany, NY 12244. - 30 - Funding Policy The Systems are noncontributory except for employees who joined the New York State and Local Employees' Retirement System after July 27, 1976 who contribute 3% of their salary for their first 10 years in the system, and employees who joined on or after January 1, 2010 who generally contribute 3% percent of their salary for their entire length of service. Under the authority of the NYSRSSL, the Comptroller shall certify annually the rates expressed as proportions of member payroll and employer contributions, used in computing the contributions required to be made by employers to the pension accumulation fund. Chapter 126 adds Article 19 "Benefits Enhancements" of the New York State and Local Employees Retirement System. An Eligible Tier III or IV member with ten or more years of membership or ten years credited service will not be required to contribute to the Retirement System. Effective in 2000, the Town adopted Section 41j of the Retirement System. This allows a retiring municipal employee to add service credit by using accumulated sick time. The Town of Ithaca is required to contribute at an actuarially determined rate. The required contributions for the current year and four preceding years were: ERS 2017 $ 459,827 2016 $ 513,481 2015 $ 548,769 2014 $ 570,512 2013 $ 602,622 Town contributions made to the Systems were equal to 100% of the contributions required for each year. Since 1989, the Systems' billings have been based on Chapter 62 of the Laws of 1989 of the State of New York. This legislation requires participating employers to make payments on a current basis, while amortizing existing unpaid amounts relating to the Systems' fiscal years ended March 31, 1988 and 1989 (which otherwise were to have been paid on June 30, 1989 and 1990, respectively) over a 17-year period, with an 8.75% interest factor added. Local governments were given the option to prepay this liability. The Town's total unpaid liability at the end of 2017 fiscal year was $0. a. Southern Cayuga Lake Intermunicipal Water Commission Pension Plan The Southern Cayuga Lake Intermunicipal Water Commission's payroll is prepared through the Town of Ithaca, resulting in the New York State and Local Retirement Plan billings being a combination of the Town's and the Water Commission's. The Water Commission is remitted along with the Town's share. Pension Liabilities and Deferred Outflows and Inflows of Resources Related to Pensions At December 31, 2017, the Town reported the following liability for its proportionate share of the net pension liability for the Systems. The net pension liability was measured as of March 31, 2017. The total pension liability used to calculate the net pension liability was determined by an actuarial valuation. - 31 - Measurement date March 31, 2017 Net pension liability $ 1,036,325 Town's portion of the Plan's total net pension liability 0.011% At year end December 31, 2017, the Town recognized pension expenses of $624,204. The Town reported deferred outflows of resources related to pensions from the following sources: Deferred Outflows of Resources Differences between expected and actual experience $ 25,970 Changes of assumptions 354,047 Net difference between projected and actual investment earnings on pension plan investments 206,996 Changes in proportion and differences between employer contributions and proportionate share of contributions 87,822 Employer contributions subsequent to the measurement date 459,827 Total $ 1,134,662 The Town reported deferred inflows of resources related to pensions from the following sources: Deferred Inflows of Resources Differences between expected and actual experience $ 157,372 Changes of assumptions - Net difference between projected and actual investment earnings on pension plan investments - Changes in proportion and differences between employer contributions and proportionate share of contributions 13,485 Total $ 170,857 The Town's contributions subsequent to the measurement date for the Plans amounted to $459,827. The Town's contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended December 31, 2018. The Town's balances of deferred outflows and inflows of resources related to pension will be recognized in the pension expense as follows: 2018 $ 218,934 2019 218,934 2020 194,491 2021 ( 128,380) Total $ 503,979 - 32 - Actuarial Assumptions The Town's total pension liability as of the measurement date was determined by using an actuarial valuation as of April 1, 2016, with updated procedures used to roll forward the total pension liability to March 31, 2017. The actuarial valuations used the following actuarial assumptions: Actuarial cost method Entry age normal Inflation 2.5% Investment rate of return 7.0% Salary scale 3.8% Projected COLAs 1.3% Decrement tables 04/01/10-03/31/15 Annuitant mortality rates are based on April 1, 2010 —March 31, 2015 System's experience with adjustments for mortality improvements based on the Society of Actuaries Scale MP-2014. The Town's long-term rate of return on pension plan investments was determined using a building block method in which best estimate ranges of expected future real rates of return (expected returns net of investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by each of the target asset allocation percentages and by adding expected inflation. Best estimate of the arithmetic real rates of return for each major asset class included in the target asset allocation at the valuation date of March 31, 2017 are as follows: Long-Term Expected Real Asset Class Target Allocation Rate of Return Domestic equity 36% 4.55% International equity 14% 6.35% Privet equity 10% 7.75% Real estate 10% 5.80% Absolute return strategies 2% 4.00% Opportunistic portfolio 3% 5.89% Real assets 3% 5.54% Bonds and mortgages 17% 1.31% Cash 1% -0.25% Inflation-indexed bonds 4% 1.50% 100% Discount rate The Discount rate used to calculate the total pension liability was 7.0%. The projection of cash flows used to determine the discount rate assumes that the contributions from plan members will be made at the current contributions rates and that contributions from employers will be made at statutorily required rates, actuarially determined. Based upon the assumptions, the System's fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. - 33 - Sensitivity of the Proportionate Share of the Net Pension Liability to the Discount Rate Assumption The following tables present the Town's proportionate share of the net pension liability/(asset) calculated using the discount rate of 7.0%, as well as what the Town's proportionate share of the net pension liability would be if it were calculated using a discount rate that is one percentage point lower (6.0%) or one percentage point higher(8.0%) that the current rate: Current 1% Decrease Assumption 1% Increase (6.0%) (7.0%) (8.0%) Town's proportionate share of the net pension (asset)/liability $ 3,309,824 $ 1,036,325 $ ( 885,910) Pension Plan Fiduciary Net Position The components of the current-year net pension liabilities of the employers as of March 31, 2017 were as follows: Employers' total pension liability $ ( 177,400,586,000) Fiduciary net position 168,004,363,000 Employers' net pension liability $ ( 9,396,223,000) Ratio of Plan net position to the employers' total pension asset/(liability) 94.7% B. Short-Term Debt Liabilities for bond anticipation notes (BANs) are generally accounted for in the Capital Projects Fund. The notes or renewal thereof may not extend more than five years beyond the original date of issue unless a portion is redeemed within five years and within each 12-month period thereafter. For short-term financing, the Town of Ithaca redeems (pays down) one-fifth (1/5) of the original BAN borrowing. State law requires that BANs issued for capital purposes be converted to long- term obligations within five years after the original issue date. However, BANs issued for assessable improvement projects may be renewed for period's equivalent to the maximum life of the permanent financing, provided that stipulated annual reductions of principal are made. As of December 31, 2017, temporary financing in outstanding bond anticipation notes totaled $0. C. Long-Term Debt Bonds: The Town of Ithaca borrows money in order to acquire land or equipment or construct buildings and improvements. This enables the cost of these capital assets to be borne by the present and future taxpayers. At December 31, 2017, the total principal indebtedness outstanding of the Town of Ithaca aggregated $12,822,750. Of this amount, $3,221,930 was subject to the Town's constitutional debt limit and represented 3.47% of the Town's debt limit. - 34 - Further calculations disclosed that the Town of Ithaca meets the 7% indebtedness requirement and has not exhausted its borrowing and repayment abilities. The following is a summary of the Town of Ithaca's outstanding serial bonds for the year ended December 31, 2017: Original Date Original Interest Maturity Outstanding Description of Issue Amount Rate Date 12/31/2017 GENERAL TOWNWIDE FUND 2011 Public Improvement 9/1/11 $ 300,000 2.25% 9/1/21 $ 120,000 2013 Public Improvement 8/1/13 790,000 2.00% 8/1/23 522,000 WATER FUND 2004 Public Improvement 2/12/04 1,000,000 3.88% 2/12/19 134,000 2009 Public Improvement 10/1/09 1,125,000 2.75% 10/1/24 585,000 2011 Public Improvement 9/1/11 2,000,000 2.25% 9/1/31 1,565,000 2013 Public Improvement 8/1/13 1,420,000 2.00% 8/1/23 1,052,000 2014 Public Improvement 12/30/14 950,000 2.00% 12/15/29 1,698,000 2014 Refunding Bond 12/30/14 910,000 2.00% 5/15/24 685,000 2015 Public Improvement 11/13/15 2,150,000 2.00% 10/15/30 1,902,000 SCLIWC serial bonds various 3,763,000 various various 2,053,750 HIGHWAY FUND 2011 Public Improvement 9/1/11 350,000 2.25% 9/1/21 140,000 2013 Public Improvement 8/1/13 1,240,000 2.00% 8/1/23 891,000 2014 Public Improvement 12/30/14 950,000 2.00% 12/15/29 767,000 2015 Public Improvement 11/13/15 $ 800,000 2.00% 10/15/30 708,000 Total Serial Bonds Payable $ 12,822,750 Interest on long-term debt paid during the year was: Interest paid $ 314,012 Add interest accrued- current year 72,446 Less interest accrued-prior year ( 78,594) $ 307,864 Interest expense has been allocated to the following governmental functions: General $ 9,452 Transportation 85,167 $ 94,619 Interest expense has been allocated to the following enterprise funds: Water fund $ 213,245 - 35 - Long-term liability balances and activity for the year are summarized below: Beginning Ending Governmental Funds Balance Issued Redeemed Balance Serial bonds $ 3,579,882 $ - $ ( 357,952) $ 3,221,930 Total serial bonds and $ 3,579,882 $ - $ ( 357,952) $ 3,221,930 Other liabilities: Compensated absences $ 144,706 $ 10,070 $ - $ 154,776 Net pension liability 1,677,531 - ( 723,909) 953,622 Convertible sick/personal time (1) 453,097 73,956 - 527,053 Other post-employment benefits 4,563,764 793,327 - 5,357,091 Total long-term liabilities $ 10,418,980 $ 877,353 $ ( 1,081,861) $ 10,214,472 (1) Value of accumulated sick/personal time that may be used by retirees to offset retiree portion of health insurance premiums. See Note 9. Beginning Ending Enterprise Funds Balance Issued Redeemed Balance Serial bonds $ 8,278,118 $ - $ ( 731,048) $ 7,547,070 SCLIWC serial bonds 2,438,000 - ( 384,250) 2,053,750 Total serial bonds and bond anticipation notes $ 10,716,118 $ - $ ( 1,115,298) $ 9,600,820 Other liabilities: Compensated absences $ 16,103 $ 1,696 $ - $ 17,799 Net pension liability 156,669 - ( 73,966) 82,703 Convertible sick/personal time(1) - - - - Other post-employment benefits 507,858 108,199 - 616,057 Total long-term liabilities $ 11,396,748 $ 109,895 $ ( 1,189,264) $ 10,317,379 (1) Value of accumulated sick/personal time that may be used by retirees to offset retiree portion of health insurance premiums. See Note 9. Activity for compensated absences is shown at net due to the impracticability of determining these amounts separately. Payments of compensated absences are dependent upon future factors and, therefore, the timing of such payments cannot be determined. Compensated absences are reflected as a long-term liability in the Statement of Net Position. The following is a summary of the maturity of total long-term indebtedness (excluding SCLIWC bonds): - 36 - Serial Bonds Year Principal Interest Total 2018 $ 1,047,000 $ 288,643 $ 1,335,643 2019 1,082,000 260,569 1,342,569 2020 1,020,000 236,619 1,256,619 2021 1,040,000 212,769 1,252,769 2022 990,000 183,547 1,173,547 2023-2027 3,815,000 560,006 4,375,006 2028-2031 1,775,000 103,769 1,878,769 Total Serial Bonds $ 10,769,000 $ 1,845,922 $ 12,614,922 The following long-term debt has been authorized, but remains unissued at December 31, 2017: Trumansburg Water Tank Replacement $ 900,000 Park Lane Water Main Replacment 500,000 Sapsucker Woods Water Main Replacement 579,598 Christopher Circle Water Main Replacement 422,319 Total- authorized, but unissued debt $ 2,401,917 NOTE 7—DEBT: SOUTHERN CAYUGA LAKE INTERMUNICIPAL WATER COMMISSION (SCLIWC) Per agreement, the Town of Ithaca is a joint obligor of debt used to fund the capital activities of the Southern Cayuga Lake Intermunicipal Water Commission (SCLIWC). The Town has recorded a liability for bonds payable in the Water Fund of $2,053,750 representing the Town's approximate 53% share of the total outstanding serial bond debt associated with SCLIWC as of December 31, 2017. Historically, and consistent with the cooperative agreement of the SCLIWC participating municipalities, the repayment of SCLIWC debt and related interest has been funded through user fees charged by the Water Commission. Accordingly, the Water Fund reflects a receivable (due from other governments) of $2,053,750 at December 31, 2017 which reflects the anticipated debt principal payments to be made by SCLIWC. The following reflects information related to the total serial bond debt for SCLIWC at December 31, 2017: Date Original Date of Outstanding Description of Issue Amount UR Final Maturity 12/31/2017 Joint Water Improvement 3 5/17/2006 1,000,000 4.66% 5/17/2026 $ 545,000 Joint Water Improvement 4 10/5/2012 2,600,000 2% - 3% 10/5/2032 2,055,000 Joint Water Improvement 5 6/12/2013 1,500,000 3%-3.25% 6/12/2033 1,275,000 Total Serial Bonds $ 3,875,000 The following is a summary of the maturity of total long-term indebtedness for SCLIWC debt: - 37 - Year Principal Interest Total Serial Bonds 2018 $ 235,000 $ 115,410 $ 350,410 2019 240,000 108,522 348,522 2020 245,000 101,559 346,559 2021 245,000 94,496 339,496 2022 260,000 87,433 347,433 2023-2033 2,650,000 438,659 3,088,659 Total Serial Bonds $ 3,875,000 $ 946,079 $ 4,821,079 NOTE 8 —UNRESTRICTED BALANCES Of the $6,297,028 in unrestricted net position, $1,929,486 has been appropriated by the Town for 2018 expenditures. NOTE 9 —POSTEMPLOYMENT BENEFITS OTHER THAN PENSIONS Plan Description - The Town of Ithaca administers a single-employer defined benefit healthcare plan ("the Retiree Health Plan"). The plan provides lifetime healthcare insurance for eligible retirees and their spouses through the Town's group health insurance plan, which covers both active and retired members. The Town pays a portion of retiree's premiums for healthcare insurance based on the number of years of service to the Town at the time of retirement. In addition, retiring employees can convert unused sick time to offset portions of healthcare premiums that are the retiree's responsibility. The Town tracks the accumulated balances and makes premium payments on behalf of the retirees until the balances are exhausted. The Retiree Health Plan does not issue a publicly available financial report. Funding Policy - The Town contributes a portion of the retiree's healthcare premium according to the following schedule. For employees whose most recent date of hire is prior to 1/1/2015, the following percentages apply: Years of Town Service Contribution 30 and over 75.0% 25-29 50.0% 15-24 35.0% 5-14 20.0% less than 5 0.0% For employees who were hired on or after 1/1/2015, the following percentages apply: Years of Town Service Contribution 30 and over 50.0% 25-29 35.0% 10-24 20.0% less than 10 0.0% - 38 - For fiscal year 2017, the Town contributed $47,600 to the plan. Annual OPEB Cost and Net OPEB Obligation - The Town's annual other postemployment benefit (OPEB) cost (expense) is calculated based on the annual required contribution of the employer (ARC). The Town has elected to calculate the ARC and related information using the alternative measurement method permitted by GASB Statement 45 for employers in plans with fewer than one hundred total plan members. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover normal costs each year and to amortize any unfunded actuarial liabilities (or funding excess) over a period not to exceed thirty years. The following table shows the components of the Town's annual OPEB cost for the year, the amount actually contributed to the plan, and changes in the Town's net OPEB obligation to the Retiree Health Plan. Annual required contribution $ 1,006,131 Interest on net OPEB obligation 138,962 Adjustment to annual required contribution ( 195,967) Annual OPEB expense 949,126 Contributions made ( 47,600) Increase in net OPEB obligation 901,526 Net OPEB obligation-beginning of year 5,071,622 Net OPEB obligation- end of year $ 5,973,148 The Town's annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the net OPEB obligation for fiscal year, 2008 through 2017 are as follows: Percentage of Net Year Annual Annual OPEB OPEB Ended OPEB Cost Cost Contributed Obligation 12/31/2008 $ 349,422 7.70% $ 322,544 12/31/2009 $ 362,344 11.15% $ 644,482 12/31/2010 $ 375,221 9.16% $ 985,330 12/31/2011 $ 662,956 7.27% $ 1,600,116 12/31/2012 $ 681,399 7.94% $ 2,227,380 12/31/2013 $ 700,217 7.45% $ 2,875,456 12/31/2014 $ 759,159 6.15% $ 3,587,913 12/31/2015 $ 778,752 5.02% $ 4,327,608 12/31/2016 $ 799,093 6.89% $ 5,071,622 12/31/2017 $ 949,126 5.02% $ 5,973,148 Funded Status and Funding Progress - As of December 31, 2017 (actuarial valuation date of 12/31/17), the actuarial accrued liability for benefits was $8,675,669, all of which was unfunded. The covered payroll (annual payroll of active employees covered by the plan) was $3,670,571 and the ratio of the unfunded actuarial accrued liability to the covered payroll was 236.36%. See the Schedule of Funding Progress on page 43 for additional details. The projection of future benefit payments for an ongoing plan involves estimates of the value of reported amounts and assumptions about the probability of occurrence of - 39 - events far into the future. Examples include assumptions about future employment, mortality, and the healthcare cost trend. Amounts determined regarding the funded status of the plan and the annual required contributions of the employer are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. The schedule of funding progress, presented as required supplementary information following the notes to the financial statements, presents multi-year trend information about whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liabilities for benefits. Methods and Assumptions - Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employer and plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and plan members to that point. The methods and assumptions used include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term perspective of the calculations. The following simplifying assumptions were made: Retirement age for active employees Based on the historical average retirement age for the covered group, active plan members were assumed to retire at age 62, or at the first subsequent year in which the member would qualify for benefits. Marital status Marital status of members at the calculation date was assumed to continue throughout retirement. Mortality Life expectancies were based on mortality tables from the National Center for Health Statistics. The 2009 United States Life Tables for Males and for Females were used. Turnover Non-group-specific age-based turnover data from GASB Statement 45 was used as the basis for assigning active members a probability of remaining employed until the assumed retirement age and for developing an expected future working lifetime assumption for purposes of allocating to periods the present value of total benefits to be paid. Healthcare cost trend rate The expected rate of increase in healthcare insurance premiums was based on current premium rates and projections of the Office of the Actuary at the Centers for Medicare & Medicaid Services. A rate of 7.8 percent was used initially, reduced to an ultimate rate of 7.0 percent after six years. Health insurance premiums 2014 health insurance premiums for retirees were used as the basis for calculation of the present value of total benefits to be paid. Inflation rate The expected long-term inflation assumption of 2.8 percent was based on projected changes in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) in The 2014 Annual Report of the Board of Trustees of the Federal Old-age and survivors' insurance and disability insurance trust funds for an intermediate growth scenario. Payroll growth rate The expected long-term payroll growth rate was assumed to equal 2.0%. Based on the historical and expected returns of the Town's short-term investment portfolio, a discount rate of 2.74 percent was used. In addition, a simplified version of - 40 - the entry age actuarial cost method was used. The unfunded actuarial accrued liability is being amortized as a level percentage of projected payroll on an open basis. The remaining amortization period at December 31, 2017, was twenty-three years. In addition to the plan described above, retiring employees can convert a portion of unused sick and vacation time to offset portions of healthcare premiums that are the retiree's responsibility. The Town tracks the accumulated balances and makes premium payments on behalf of the retirees until the balances are exhausted. The Town estimates its liability based on an analysis of accumulated sick and vacation time for current retirees and employees who have reached retirement age (55). At December 31, 2017 there were two retirees spending down a cumulative balance of $16,604 and fifteen employees who had reached retirement age with a cumulative balance of $510,449. The total liability was $527,053 at December 31, 2017. The Town calculates this liability separately from its OPEB liability under GASB 45. NOTE 10 —POLLUTION REMEDIATION CONTINGENT OBLIGATION In 2009, a site commonly known as the Ithaca Area Wastewater Treatment Plant (IAWTP), which is jointly owned and operated by the City of Ithaca and the Towns of Ithaca and Dryden, was listed as a site under CERCLA for hydrocarbon contamination (coal-tar). The City of Ithaca was sued by First Energy (parent company of New York State Electric & Gas) for $750,000 in remediation costs. The Town of Ithaca and Dryden voluntarily joined in defense of this lawsuit. In 2010 an out-of-court settlement was reached in the amount of$284,249, of which the Town of Ithaca is liable for $80,000, payable over a ten-year period. At December 31, 2017, the remaining liability totaled $32,000. NOTE 11 —TAX ABATEMENTS Town of Ithaca negotiates property tax abatement agreements on an individual basis. The Town of Ithaca has tax abatement agreements with five entities as of December 31, 2017: Percentage of Taxes Abated Amount of Taxes during the Fiscal Abated during Purpose Year the Fiscal Year Acquire, construct and equip a new residential campus for student housing. 36% $ 80,129 Purchase of housing development fund company and continuation to conform to requirements for low income housing. 20% 4,634 Acquiring title to acres of vacant land and maintain and operate solely as a housing project for persons of low income. 20% 3,358 Construction of new brewing facility, welcome center and brew pub. 41% 11,025 Operate and maintain a facility for the benefit of the citizens of Tompkins County, New York and its practice of providing Charitable Services 51% 51,150 - 41 - Each agreement was negotiated under the Real Property Tax Law of the State of New York allowing localities to abate property taxes for a variety of purposes, including acquiring and constructing a new residential campus for student housing, maintaining and operating housing for persons of low income, construction of a new brewing facility, and maintaining and operating a facility to benefit the citizens of Tompkins County, New York. The taxes were originally based on the assessed value of the property and through PILOT Agreements have been reduced to an agreed upon value for the given year. As long as each individual agreement is met based on the conditions set, taxes will continue to be abated each year. The Town of Ithaca has not made any commitments as part of the agreements other than to reduce taxes. The Town of Ithaca is not subject to any tax abatement agreements entered into by other governmental agencies. The Town of Ithaca has chosen to disclose information about its tax abatement agreements individually. There was no established quantitative threshold of the total dollar amount of taxes abated during the year. NOTE 12 —SUBSEQUENT EVENTS Subsequent events were evaluated through October 25, 2018, which is the date the financial statements were available to be issued. - 42 - TOWN OF ITHACA SCHEDULE OF FUNDING PROGRESS FOR THE RETIREE HEALTH PLAN December 31, 2017 Actuarial Accrued Actuarial Liability UAAL as a Value (AAL) Unfunded Percentage Actuarial of Simplified AAL Funded Covered of Covered Fiscal Valuation Assets Entry Age (UAAL) Ratio Payroll Payroll Year Date (a) (b) (b-a) (a/b) ( c ) ((b-a)/c) 2008 12/31/2008 $ - $ 3,302,265 $ 3,302,262 0.00% $ 2,935,300 112.50% 2009 12/31/2008 - 3,302,265 3,302,262 0.00% 3,047,779 108.35% 2010 12/31/2008 - 3,302,265 3,302,262 0.00% 3,127,364 105.59% 2011 12/31/2011 - 6,513,090 6,513,090 0.00% 2,713,389 240.04% 2012 12/31/2011 - 6,513,090 6,513,090 0.00% 3,023,321 215.43% 2013 12/31/2011 - 6,513,090 6,513,090 0.00% 3,255,652 200.05% 2014 12/31/2014 - 7,565,004 7,565,004 0.00% 2,941,028 257.22% 2015 12/31/2014 - 7,565,004 7,565,004 0.00% 3,381,971 223.69% 2016 12/31/2014 - 7,565,004 7,565,004 0.00% 3,397,458 222.67% 2017 12/31/2017 - 8,675,669 8,675,669 0.00% 3,670,571 236.36% See independent auditor's report. - 43 - TOWN OF ITHACA SCHEDULE OF REVENUES AND EXPENDITURES COMPARED TO BUDGET MAJOR FUNDS For the Year Ended December 31, 2017 GENERAL HIGHWAY Original Original Budget Actual Budget Actual REVENUES: Real property taxes S 3,052,000 S 3,052,000 $ 1,250,000 S 1,250,001 Real property tax items 54,000 60,966 - - Nonproperty tax items 1,113,000 1,181,168 1,955,000 2,084,969 Departmental income 431,950 385,250 - - Intergovernmental charges 96,851 101,496 10,000 15,213 Interest income 6,500 7,675 2,500 2,661 Rental income 28,350 30,674 - - Licenses and permits 12,500 22,829 - - Fines and forfeitures 280,000 224,402 - - Sale of property and compensation for loss - 5,907 25,000 240,207 Local sources 115,000 165,216 - 11,149 State and federal sources 389,650 458,368 74,000 132,581 TOTAL REVENUES 5,579,801 5,695,951 3,316,500 3,736,781 OTHER SOURCES: Interfund transfers 596,900 655,846 - - Proceeds of obligations - - 200,000 - Appropriated fund balance 462,096 - 324,805 - TOTAL REVENUES AND OTHER SOURCES 6,638,797 6,351,797 3,841,305 3,736,781 EXPENDITURES: General governmental support 1,890,720 1,594,773 75,550 72,016 Public safety 92,534 75,225 - - Transportation 530,450 369,715 2,834,080 2,403,978 Culture and recreation 1,158,679 951,103 - - Home and community services 1,354,525 1,163,127 - - Employee benefits 1,361,775 1,305,738 550,250 414,529 TOTAL EXPENDITURES 6,388,683 5,459,681 3,459,880 2,890,523 OTHER USES: Interfund transfers 250,114 339,395 381,425 378,225 TOTAL EXPENDITURES AND OTHER USES 6,638,797 5,799,076 3,841,305 3,268,748 EXCESS OF REVENUES OVER EXPENDITURES - 552,721 - 468,033 FUND BALANCE,beginning of year 4,668,755 4,668,755 1,799,478 1,799,478 FUND BALANCE, end of year S 4,206,659 S 5,221,476 S 1,474,673 S 2,267,511 See independent auditor's report. FIRE Original Budget Actual $ 3,500,000 $ 3,500,000 4,000 4,604 20,000 27,184 3,524,000 3,531,788 6,000 - 3,530,000 3,531,788 5,000 2,268 3,525,000 3,108,405 3,530,000 3,110,673 3,530,000 3,110,673 - 421,115 1,657,713 1,657,713 $ 1,651,713 $ 2,078,828 - 44 - TOWN OF ITHACA SCHEDULE OF THE TOWN'S PROPORTIONATE SHARE OF THE NET PENSION LIABILITY For the Year Ended December 31, 2017 2017 2016 Proportion of the net pension liability (asset) 0.011% 0.011% Proportionate share of the net pension liability (asset) $ 1,036,325 $ 1,834,200 Covered-employee payroll $ 3,444,677 $ 3,256,757 Proportionate share of the net pension liability (asset) as a percentage of its covered-employee payroll 30.08% 56.32% Plan fiduciary net position as a percentage of the total pension liability (asset) 94.7% 90.7% See independent auditor's report. - 45 - TOWN OF ITHACA SCHEDULE OF THE TOWN'S PENSION CONTRIBUTIONS For the Year Ended December 31, 2017 2017 2016 Contractually required contribution $ 459,827 $ 513,481 Contributions in relation to the contractually required contribution 459,827 513,481 Contribution deficiency (excess) $ - $ - Covered-employee payroll $ 3,670,571 $ 3,397,458 Contributions as a percentage of covered-employee payroll 12.53% 15.11% See independent auditor's report. - 46 - TOWN OF ITHACA CAPITAL PROJECTS FUND DETAILED BALANCE SHEET December 31, 2017 ASSETS Active Projects Sand Bank Park Christopher State Route Gateway Road Lane Circle 96B Sidewalk Trail Reconstr. Water Main Water Main ASSETS: Cash in savings $ 95,505 $ 72,421 $ 360,462 $ 12,019 $ 2,463 Due from other funds - - - - - Due from other gov't - 126 - - - 95,505 72,547 360,462 12,019 2,463 TOTAL ASSETS $ 95,505 $ 72,547 $ 360,462 $ 12,019 $ 2,463 LIABILITIES AND FUND BALANCE LIABILITIES: Due to other funds $ - $ - $ - $ 454,542 $ 364,862 Retainage - - - 23,098 - TOTAL LIABILITIES - - - 477,640 364,862 FUND BALANCE: Committed fund balance 95,505 72,547 360,462 - - Unassigned fund balance - - - ( 465,621) ( 362,399) TOTAL FUND BALANCE 95,505 72,547 360,462 ( 465,621) ( 362,399) TOTAL LIABILITIES AND FUND EQUITY $ 95,505 $ 72,547 $ 360,462 $ 12,019 $ 2,463 See independent auditor's report. Active Projects Closed Projects Sapsucker Trumansburg Water Water Hanshaw Road Pine Tree Rd. Main Tank Walkway Ped Bridge Total $ 4,743 $ 1,238 $ - $ - $ 548,851 - - 126 4,743 1,238 - - 548,977 $ 4,743 $ 1,238 $ - $ - $ 548,977 $ 460,877 $ 700,024 $ - $ - $ 1,980,305 - - - - 23,098 460,877 700,024 - - 2,003,403 - - - - 528,514 ( 456,134) ( 698,786) - - (1,982,940) ( 456,134) ( 698,786) - - (1,454,426) $ 4,743 $ 1,238 $ - $ - $ 548,977 - 47 - TOWN OF ITHACA CAPITAL PROJECTS FUND DETAILED REVENUES AND EXPENDITURES For the Year Ended December 31, 2017 Active Projects Sand Bank Park Christopher State Route Gateway Road Lane Circle 96B Sidewalk Trail Reconstruction Water Main Water Main REVENUE: Interest earnings $ 5 $ 55 $ 283 $ - $ - Interfund transfers 95,500 - - - - State and federal grants - 126 - - - Contributions - - - - - TOTAL REVENUE $ 95,505 $ 181 $ 283 $ - $ - EXPENDITURES: Design $ - $ 157 $ - $ - $ - General construction contract - - - - 359,859 Contract administration - - - - 154 Row permit/inspection - - - - - Testing - - - - 1,691 Transfers to other funds - - - - - TOTAL EXPENDITURES $ - $ 157 $ - $ - $ 361,704 See independent auditor's report. Active Projects Closed Projects Sapsucker Trumansburg Total for Water Water all Closed Main Tank Proj ects Total $ - $ - $ 87 $ 430 - - - 95,500 - - - 126 $ - $ - $ 87 $ 96,056 $ - $ - $ - $ 157 455,010 - 100,378 915,247 212 - - 366 864 - - 2,555 - - 70,345 70,345 $ 456,086 $ - $ 170,723 $ 988,670 - 48 - TOWN OF ITHACA INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS YEAR ENDED DECEMBER 31, 2017 SCIARABBA &CO WALKERLLP CERTIFIED PUBLIC ACCOUNTANTS BUSINESS CONSULTANTS INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Supervisor and Town Board Town of Ithaca Ithaca,New York 14850 We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the Town of Ithaca, as of and for the year ended December 31, 2017, and the related notes to the financial statements, which collectively comprise the Town's basic financial statements, and have issued our report thereon dated October 25, 2018. Internal Control over Financial Reporting In planning and performing our audit of the financial statements, we considered the Town of Ithaca's internal control over financial reporting to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Town of Ithaca's internal control. Accordingly, we do not express an opinion on the effectiveness of the Town of Ithaca's internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the Town's financial statements will not be prevented or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. 410 East Upland Road Ithaca,New York 14850 607-272-5550/607-273-6357(Fax) www.swcllp.coni Compliance and Other Matters As part of obtaining reasonable assurance about whether the Town of Ithaca's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Town's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. )a" . /4/,r,/// Sciarabba Walker & Co., LLP Ithaca, New York October 25, 2018 - 51 -