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HomeMy WebLinkAboutMeeting Notes 6-24-2015 1 BUDGET COMMITTEE Meeting Notes - June 24, 2015 Committee present: Eric Levine - Chairman, Herb Engman, Pat Leary Staff present: Mike Solvig, Judy Drake, Jim Weber Others present: Bill Goodman Meeting was called to order at: 12:03 p.m. AGENDA ITEMS: • Review and approve meeting notes from May 27, 2015. Committee members reviewed and approved the revised meeting notes from May 27, 2015. • Review Five-Year Capital Improvement Plan. The Committee reviewed an updated CIP schedule received from Public Works. Capital projects scheduled for 2016 include the following: - WATER TANKS - The Trumansburg Road Water Tank Replacement project has been moved up from 2017 to 2016 to take advantage of lower interest rates, and the estimated cost of the project lowered from $1,200,000 to $900,000. Together with the Pine Tree Road Water Tank Replacement project, estimated at $600,000, the total estimated expenditures for 2016 are $1,500,000. Mr. Weber commented that these are the last two water tanks that need replacement for the next 10 to 15 years. These projects will be financed by issuing new long- term debt. - WATER MAINS - Total cost for Water Main improvements for Fiscal Year 2016 is estimated at $1,300,000. Water main replacement projects currently scheduled include Sapsucker Woods Road - $425,000; Christopher Circle - $325,000; and Cliff Street - $550,000. These projects will also be financed by issuing new long-term debt. - SEWER AND MANHOLE REHABILITATION - These on-going maintenance projects will reduce water infiltration into aging sewer lines and manholes. The amount of $250,000 will be budgeted for sewer rehabilitation and $50,000 for manhole rehabilitation, which will be financed from current year revenues/fund balance. - STORM DRAINAGE - Added $250,000 to line the interior of the culvert pipe under the Elm Street Extension at Coy Glen Creek. This General Fund project will be financed from current year revenues/fund balance. Mr. Weber informed the Committee that as there remains $150,000 in the 2015 budget for this work, Public Works may still re-bid this project in 2015. - ROAD IMPROVEMENTS - Upper Sand Bank Road and Town Line Road are scheduled for 2016 at a total estimated cost of $800,000. The Town still has in excess of $300,000 from 2014 bond proceeds that can be used for Sand Bank Road. The remaining $500,000 will be financed by issuing new long-term debt. - TOWN FACILITIES - The upgrades to the Fuel Dispensing System at the Public Works facility scheduled for 2016 has been postponed to 2017. Project year was “swapped” with the Trumansburg Road Water Tank Replacement project. 2 - PARKS & TRAILS - Projects for 2016 include the Hungerford Heights Playground Replacement - $50,000; South Hill Trail Culvert Repairs - $25,000; and the East Ithaca Recreation Way Culvert Repairs - $25,000. Total expenditures for 2016 are estimated at $100,000. Budgeted in the General Fund, these projects will also be financed with current year revenue/fund balance. Total estimated costs for the CIP for Fiscal Years 2016 - 2020 are presented on the schedule shown below: INFRASTRUCTURE 2016 2017 2018 2019 2020 WATER INFRASTRUCTURE 2,800,000$ 1,300,000$ 1,350,000$ 950,000$ 750,000$ SEWER INFRASTRUCTURE 800,000 500,000 500,000 500,000 500,000 STORMWATER DRAINAGE 250,000 - - 250,000 250,000 ROAD IMPROVEMENTS 800,000 800,000 800,000 800,000 1,500,000 TOWN FACILITIES - 500,000 - 350,000 300,000 PARKS & TRAILS 100,000 100,000 140,000 100,000 - TOTAL ANNUAL COST 4,750,000$ 3,200,000$ 2,790,000$ 2,950,000$ 3,300,000$ FUNDING SOURCE: - Current Year Revenue 1,450,000$ 600,000$ 640,000$ 1,050,000$ 750,000$ - Grant Funding - - - - - - New Long-Term Debt 3,300,000 2,600,000 2,150,000 1,900,000 2,550,000 TOTAL FUNDING 4,750,000$ 3,200,000$ 2,790,000$ 2,950,000$ 3,300,000$ Of the $16,990,000 total estimated project costs, $4,490,000 would be financed with current year revenues/fund balance, and the remaining $12,500,000 by the issuance of new long-term debt. • Discuss 2016 Ithaca Town Budget process. Mr. Solvig informed the Committee that budget worksheets will be distributed to department heads in early July, to be returned by July 31. A first draft of the Preliminary 2016 Ithaca Town Budget will be reviewed by the Budget Committee at the August meeting. The first Town Board Budget Meeting is scheduled for Thursday, October 1. The Committee will review the Five-Year Capital Improvement Plan with the Town Board at the July Study Session. • Discuss 2015 Bond Issue. There was no additional discussion on this topic at this meeting. • Property Tax Cap and Property Tax Freeze Programs. There was no additional discussion on this topic at this meeting. This item will remain on the Committee’s monthly agenda and will be discussed on an on-going basis as further information becomes available. • Other Items. - Status of 2015 Sales Tax Collections - First Quarter: Mr. Solvig reported that he had again hoped to present the Committee with the sales tax collections report for the 1st Quarter of 2015, but the Town has not yet received the March, April and May collections from the County. Sales tax collections for the first two months of 2015 were very good, with January and February total collections at 8.3% over collections for the same period in 2014. The 1st Quarter report will hopefully be presented at the July meeting. 3 - Purchase of New Fire Pumper Truck by Cayuga Heights Fire Department: Mr. Engman reported that Cayuga Heights is in the process of purchasing a new Fire Pumper to replace a 2001 Fire Pumper that has reached the end of its useful life. Cayuga Heights has opened bids for this apparatus, and the cost of this new equipment, after trade-in and other discounts, is $467,193. In accordance with the terms of our fire protection contract, Cayuga Heights is requesting a contributory payment by the Town in the amount of $174,076. A resolution to authorize this payment will be presented to the Town Board on July 13. - Post Office Lease: Mr. Solvig reported that our lease with the Post Office will expire on June 29, 2019. While this still seems a long way in the future, he thought it might be better to begin the renewal process earlier as opposed to later, considering how long it can take to get anything accomplished with the USPS. Mr. Engman stated he will ask for volunteers at the next Board Meeting to form an Ad Hoc Committee. - Public Works Bus Tour: Mr. Weber informed the Committee that this year’s tour of capital project sites has been scheduled for July 24 from 10:00 am to 2:00 pm. Tour will leave from the Public Works facility. The meeting was adjourned at 1:09 p.m. Next Meeting: Wednesday, July 29, 2015 at 12:00 pm, Town Hall - Aurora Room