HomeMy WebLinkAboutMeeting Notes 3-23-2016
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BUDGET COMMITTEE
Meeting Notes - March 23, 2016
Committee present: Eric Levine - Chairman, Bill Goodman, Pat Leary
Staff present: Mike Solvig, Judy Drake
Others present:
Meeting was called to order at: 12:00 p.m.
AGENDA ITEMS:
• Review and approve meeting notes from February 24, 2016.
Committee members reviewed and approved the meeting notes from February 24, 2016.
• Review Long-Term Debt and Debt Service Projections.
The Committee reviewed the Long-Term Debt and Debt Service Projection schedules for Fiscal
Years 2017 through 2028. Future fiscal year debt projections include those capital projects
identified in the Town’s Capital Improvement Plan (up to and including Fiscal Year 2021) to be
financed by issuing new long-term debt, with the amount of the debt to be issued equal to the
current estimated cost of the project. Interest rates, which have remained historically low over
the past four years, have been projected to increase slowly over the next five years. Average
interest rates for the Town’s 2011, 2013 and 2014 bond issues have all been slightly less than 3%.
Interest rate for the 2015 bond issue was just over 2%.
Total outstanding long-term debt increases from $14,008,000 at year-end in 2015 to $15,961,000
at year-end in 2021. Of this total, $757,000 is for facilities improvements, $3,382,000 is for
highway improvements, and the remaining $11,822,000 for water infrastructure improvements.
This is an increase of $1,953,000, or 13.9%, over the period from 2016 to 2021.
Total annual debt service payments (principal and interest) increase from $1,391,833 in 2016 to
$2,210,783 in 2021. Of this total, $213,150 is for facilities improvements, $512,636 is for highway
improvements, and the remaining $484,997 for water infrastructure improvements.
• Discussion on 2016 Bond Issue.
The Town is scheduled to issue $2,750,000 in new long-term debt this year to finance the
following listed projects included in the 2016 Capital Improvement Program:
Trumansburg Water Tank Replacement $ 900,000
Pine Tree Water Tank Replacement 600,000
Park Lane Water Main Improvements 500,000
Sapsucker Woods Water Main Improvements 425,000
Christopher Circle Water Main Improvements 325,000
Mr. Solvig stated he would like to continue with Douglas Goodfriend of Orrick, Herrington &
Sutcliffe as Bond Counsel, and John Shehadi of Fiscal Advisors & Marketing, Inc. as Bond Advisor.
Total bond issuance costs are estimated at $32,500 as detailed on the schedule shown below:
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Amount
Bond Attorney - Orrick, Herrington & Sutcliffe 11,000.00$
Bond Advisors - Fiscal Advisors & Marketing, Inc.8,500.00
Bond Rating - Moody's Investors Services 11,000.00
Printing & Mailing - Premier Printing Services 2,000.00
Total Estimated Bond Issuance Costs:32,500.00$
Estimated Bond Issuance Costs
At this time the Pine Tree Water Tank Replacement project has been put on hold due to Cornell’s
Maplewood Apartment expansion project. The capacity of the replacement tank has been
determined to be inadequate to serve the expanded apartment complex. The Town will be
meeting with Cornell to determine what capacity the new tank should be, as well as Cornell’s
monetary contribution to this project.
Based on this delay with the Pine Tree Water Tank, the amount of the new debt issued in 2016
would be reduced from $2,750,000 to $2,150,000, as shown below:
Amount Amount Issuance
Budgeted Bonded Costs
Trumansburg Water Tank Replmnt 900,000$ 900,000$ 13,605$
Pine Tree Water Tank Replmnt 600,000 - -
Park Lane Water Mains 500,000 500,000 7,558
Sapsucker Woods Water Mains 425,000 425,000 6,424
Christopher Circle Water Mains 325,000 325,000 4,913
Total - 2016 Capital Projects 2,750,000$ 2,150,000$ 32,500$
2016 Capital Projects
The estimated issuance costs of $32,500 represent 1.51% of the expected bond proceeds.
• Property Tax Cap and Property Tax Freeze Programs.
There was no discussion on this item at the March 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.
- 2015 Audit: The auditors will be on-site on March 24 &25 for preliminary field work, and the
week of May 2 for field work. Date for the court audit has not yet been set.
The meeting was adjourned at 1:22 p.m.
Next Meeting: Wednesday, April 27, 2015 at 12:00 pm, Town Hall - Aurora Room