HomeMy WebLinkAboutMeeting Notes 1-18-2017
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BUDGET COMMITTEE
Meeting Notes - January 18, 2017
Committee present: Eric Levine - Chairman, Pat Leary, Pamela Bleiwas
Staff present: Mike Solvig, Judy Drake
Others present: Bill Goodman
Meeting was called to order at: 12:01 p.m.
AGENDA ITEMS:
• Review and approve meeting notes.
The Committee reviewed and approved the draft meeting notes from the August 24, 2016 and
September 21, 2016 meetings.
• Set 2017 Budget Committee meeting dates.
The committee reviewed and approved the proposed meeting schedule for 2017. Budget
Committee meetings in 2017 will be held the third Wednesday of each month. Meetings will
begin at 12:00 noon, and will be held at Town Hall in the Aurora Room.
• Discuss 2017 Budget Committee priorities.
The committee identified the following topics as priorities for 2017:
- Review Reserve Funds and Accounts, setting maximum balances where appropriate.
- Consider the establishment of a Highway Townwide Fund.
- Continue review of the Town's voluntary contributions to community organizations.
- Revise Water Rates and Sewer Rents for 2018 based on Bolton Point’s new rate structure.
- Review Town’s Long-Term Debt.
- 2017 Bond Issue – New Ellis Hollow Water Tank & Water Mains will likely be in 2018.
- Property Tax Cap.
- Five-Year Financial Projections.
- Five-Year Capital Improvement Plan and 2018 Capital Budget.
- 2018 Ithaca Town Budget.
• Update on 2016 Sales Tax and Mortgage Tax Collections.
- Sales Tax Collections: The Committee reviewed the Sales Tax Collections Report for the Year
Ended December 31, 2016. Mr. Solvig informed the Committee that the Town has not yet
received the $302,473 December payment, but Tompkins County Finance Director Rick Snyder
was able to furnish him with the amount. As expected, total collections for 2016 fell below
total collections for 2015. Budgeted for $3,000,000 in 2016, actual Sales Tax collections of
$3,003,943 were just slightly over budget, but at only 97.9% of the $3,067,336 collected in
2015.
Total sales tax collections for 2017 are again budgeted at $3,000,000.
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Sales Tax - Budget 2,650,000$ 2,750,000$ 2,825,000$ 2,885,000$ 3,000,000$ 3,000,000$
Sales Tax - Actual 2,907,213 2,990,863 3,135,084 3,067,336 3,003,943 -
Actual Over (Under) Budget 257,213$ 240,863$ 310,084$ 182,336$ 3,943$ -$
Actual as % of Prior Year Actual 103.48%102.88%104.82%97.84%97.93%N/A
SALES TAX COLLECTIONS 2012 2013 2014 2015 2016 2017
- Mortgage Tax Collections: Mr. Solvig reported that collections for 2016 totaled $286,227, a
substantial decrease from the $429,760 collected in 2015. However, included in the 2015
total was an unexpected one-time receipt of $169,770 from the expansion of Kendall at
Ithaca. Without this one-time receipt, collections for 2015 would have totaled only $245,990.
Total mortgage tax collections for 2017 are budgeted at $250,000.
Mortgage Tax - Budget 200,000$ 220,000$ 250,000$ 350,000$ 300,000$ 250,000$
Mortgage Tax - Actual 279,560 313,999 329,274 429,760 286,227 -
Actual Over (Under) Budget 79,560$ 93,999$ 79,274$ 79,760$ (13,773)$ -$
Actual as % of Prior Year Actual 112.71%112.32%104.86%130.52%66.60%N/A
2012 2013 2014 2015 2016 2017MORTGAGE TAX COLLECTIONS
• Discuss Town's Reserve Funds and Accounts.
The committee reviewed and discussed the report on the Town’s reserve funds and accounts.
- Parks, Recreation and Open Space Plan Account: The Fund Balance of the General Townwide
Fund includes funds designated for the purpose of future park development and the
purchasing of development rights, as outlined in the Town’s Park, Recreation and Open Space
Plan, as adopted on December 12, 1997. As of 1/01/16, the balance of this account was
$811,260. During FY-2016 this account was increased by a $75,000 re-designation of fund
balance, plus $716 in interest income. Expenditures from this account totaled $160,110 for
purchase of the Meigs property on West Hill. The balance of this account as of 12/31/16 was
$726,866.
This account is funded by the Town Board making an annual re-designation of a portion of the
Fund Balance of the General Townwide Fund from unreserved to reserved. Additional income
is received from interest earnings. An additional $100,000 in unreserved fund balance was
designated as reserved for this purpose by the Town Board on January 9, 2017 (Resolution No.
2017-014g).
- General Benefit Reserve Account: The aggregate balance of this account as of 12/31/16 was
$350,269. The balance by fund is as follows:
General Townwide Fund $ 169,306
General Part-Town Fund 59,979
Highway Part-Town Fund 88,479
Water Fund 17,863
Sewer Fund 14,642
Total - Benefit Reserve: $ 350,269
In 2015 the Town Board set the maximum for this account at $350,000, with the balance in
excess of the maximum at year-end to be returned to the unreserved fund equity of the host
funds.
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Mr. Solvig presented to the Committee a funding analysis, based on 2017 budget amounts for
retirement and health insurance benefits, that would adjust the amounts in the General
Benefit Reserve to $350,000. After discussion, the Committee directed Mr. Solvig to adjust
the reserve amounts to reflect the $350,000 maximum.
The adjusted balance by fund would be as follows:
General Townwide Fund $ 177,750
General Part-Town Fund 60,250
Highway Part-Town Fund 82,650
Water Fund 18,550
Sewer Fund 10,800
Total - Benefit Reserve: $ 350,000
- Preserve Maintenance Account: The General Townwide Fund includes 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 provided for
future maintenance of the preserve. As of 12/31/16 the balance of this account totaled
$40,097. Future income for this account will be limited to interest earnings.
- Land Stewardship Account: 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 by the Town, designated for the stewardship of the Indian Creek Farm
lands. For the year ended 12/31/16, the balance of this reserve totaled $10,018. Future
income for this account will also be limited to interest earnings.
- Highway Equipment Account: The fund balance of the Highway Part-Town Fund includes
funds set aside for the purchase/replacement of highway equipment and machinery. The
balance as of 12/31/16 was $62,516. This reserve is funded by sale of surplus machinery and
equipment, with additional income from interest earnings. In 2015 the Town Board set the
maximum for this account at $250,000, with funds by sale of surplus machinery and equipment in
excess of the maximum to be deposited to the unreserved fund balance of the Highway Fund.
- Risk Retention Fund: This fund is used to account for expenditures for 1) direct employee
health and wellness expenditures, including work-related emergency room and clinic health
care visits, and 2) repairs to equipment and facilities not covered by insurance or until
reimbursement from insurance is received. Income for this fund is derived from annual
budgeted inter-fund transfers, plus insurance recoveries and interest income. Fund balance
was $166,908 as of December 31, 2016.
In 2015 the Town Board established the maximum fund balance of the Risk Retention Fund be
set at $150,000, with any amount in excess of the maximum at year-end to be returned to the
unreserved fund equity of the contributing funds. To meet the maximum fund balance,
approx. $16,900 would need to be returned to the contributing funds.
Mr. Solvig explained that the General Funds, Highway Fund, Water Fund and Sewer Fund are
each budgeted to transfer $3,200 (a total of $16,000) to the Risk Retention Fund in 2017. As
expenditures in this fund for 2017 should total $10,000, his recommendation would be to
make no contribution in 2017 and see where the fund balance is at year-end. The Town could
make any necessary adjustments at that time.
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- SJC Account in Sewer Fund: The Fund Balance of the Sewer Fund includes funds designated
for SJC purposes. In 2015 these purposes were defined by the Town Board as 1) to pay for
expenditures related to the improvement of jointly-owned sewer interceptor lines, and 2) to
pay the Town’s share of the City of Ithaca’s bonded debt issued to pay for Ithaca Area
Wastewater Treatment Facility (IAWWTF) improvements. The balance in this account as of
12/31/16 totaled $1,307,910.
1) Jointly-owned Sewer Interceptor Lines: Interceptor sewers convey sewage from the
Town through the City of Ithaca for treatment at the IAWWTF. These interceptor
sewers are jointly owned with the City, and the Town is responsible for a portion of the
maintenance and replacement costs of these lines. The Town of Ithaca and the City of
Ithaca must initially approve all capital projects and related expenditures before any
construction can take place. The replacement of the State Street Interceptor is the last
of five projects originally agreed to between the Town and City. $300,000 of the SJC
account balance has been designated to pay for future improvement of jointly-owned
sewer interceptor lines.
2) IAWWTF Bonded Debt: As of 12/31/16, outstanding bonded debt totaled $13,289,372.
The Town share (40.88%) of this total amounts to $5,432,695. In 2015, The Town Board
determined it would be prudent for the Town to designate funds to pay part of this debt
in the event of future economic hardships, and that such funds would be in an amount
equal to 25% of the Town’s share of outstanding IAWWTF debt at year-end, to be
reviewed and adjusted annually. This amount, based on the 12/31/16 outstanding debt
total, would equal $1,358,174. As of 12/31/16, the actual amount available in the SJC
account was $1,007,910. This is $350,264 below the calculated amount.
The total designated for SJC purposes as of 12/31/16 should be $1,658,174. Mr. Solvig
recommended that the amount of $200,000 be transferred to the SJC account from the
unreserved fund balance of the Sewer Fund. The Committee concurred with this
recommendation.
• Other Items.
- Audit of the FY-2016 Financial Statements: The auditors will be on-site at Town Hall on March
20 & 21 for preliminary field work. Field work has tentatively been scheduled for the first
week of May.
- 2017 Justice Court Assistance Program (JCAP) Grant: The Ithaca Town Court has received a
JCAP Grant for computer monitors and a camera system for the Town Hall lobby. The amount
of the grant is $1,029.96.
- NYS-GFOA Conference: Mr. Solvig will be attending the NYS Government Finance Officers
Association meeting from March 29-31 in Albany.
The meeting was adjourned at 1:24 p.m.
Next Meeting: Wednesday, February 15, 2017 at 12:00 pm, Town Hall - Aurora Room
TOWNOFITHACABUDGETCOMMIHEEWednesday,January18,2017-12:00p.m.TownHall-AuroraConferenceRoomAGENDA•Reviewandapprovemeetingnotes.-August24,2016-September21,2016•Set2017BudgetCommitteemeetingdates.•Discuss2017BudgetCommitteepriorities.•Updateon2016SalesTaxCollections.•ReviewandDiscussTown’sReserveFunds/Accounts.-GeneralBenefitReserveAccount-Parks,RecreationandOpenSpacePlanReserveAccount-LandPreserveMaintenanceAccount-LandStewardshipAccount-HighwayEquipmentReserveAccount-RiskRetentionFund-SewerFund-SiCAccount•OtherItems-2017JusticeCourtAssistanceProgram(JCAP)Grant-NYS-GFOAConference—March2016NextMeeting:Wednesday,February15,2017at12:00p.m.
BUDGETCOMMIHEEDraftMeetingNotes-August24,2016Committeepresent:EricLevine-Chairman,BillGoodman,PatLearyStaffpresent:MikeSolvig,JudyDrake,JimWeberOtherspresent:Meetingwascalledtoorderat:12:02p.m.AGENDAITEMS:ReviewandapprovemeetingnotesfromJuly27,2016.Mr.SolvigreportedhewasnotabletocompletethemeetingnotesfromJuly27.TheywillbecompletedandpresentedforreviewattheSeptember21meeting.ReviewandDiscuss2017IthacaTownBudget.TheCommitteereviewedthe2017TentativeBudget.ThecommitteereviewedanddiscussedthedetailedbudgetsfortheGeneralFund,GeneralPart-TownFund,HighwayFund,WaterFund,andSewerFund,andthesummariesofrevenuesandexpendituresforallfunds-Totalexpenditureswillincreasejustover4%,from$24,591,539in2016to$25,582,705in2017.ExpenditureswillincreaseintheGeneralFundby8.1%;GeneralPart-TownFundby2.8%;HighwayFundby1.8%;WaterFundby7.3%;andFireProtectionFundby3.5%.ExpendituresintheSewerFundwilldecreaseby8.8%.AsdiscussedatpreviousBudgetCommitteeandPersonalandOrganizationCommitteemeetingsthisyear,three(3)positionshavebeenaddedtothe2017Budget;theseareaDeputyTownClerkfortherecordsmanagementprogram(approvedbytheTownBoardearlierthisyear),anElectrical/CodeEnforcementOfficertoassistwiththeadditionalworkexpectedtobegeneratedbytheMaplewoodexpansion,andaMaintenanceSupervisor(newposition).EmployeeSalaries&Wagesincreasefrom$3,449,706in2016to$3,691,120in2017,or7.0%.FringeBenefitsincreasefrom$2,020,600in2016to$2,047,850in2017,or1.4%.TotalPersonnelCostsfortheTownwillincreaseby$268,664or4.9%overtheprioryear.-Totalrevenuesin2017arebudgetedtoincrease2.6%overtheprioryear.Salestaxandmortgagetaxcollectionscontinuetodecline,withsalestaxcollectionsin2017notexpectedtoincreasefrom2016,andmortgagetaxcollectionsfor2017budgetedfor$50,000lessthanbudgetedin2016.Thepropertytaxlevyisbudgetedtoincrease2.0%overtheprioryear.ThisbudgethasnoincreaseinWaterRatesandSewerRents,butdoesincludeanincreaseintheWaterBenefitAssessmentFeefrom$100/unitin2016to$110/unitin2017.TheSewerBenefitAssessmentFeewillremain$25/unitin2017.TheWaterFundalsoincludesa$300,000contributionfromCornellforthereplacementofthePineTreeWaterTank,althoughthisstillhastobeworkedoutwithCornell.BillGoodmanpointedoutthattheTown’scontributiontoCityofIthacaparkswillbecutfrom$83,620in2015/2016to$50,000in2017.Ofthis$33,620difference,$8,000hasbeenbudgetedtosupporttheCity’sGorgeRangerprogramforSixMileCreek,and$25,000hasbeenbudgetedtoincreasetheannualtransfertothePark,RecreationandOpenSpacePlanaccountfrom$75,000to1
$100,000.Mr.GoodmancommentedthatheremainsmoreinterestedindevelopingtheTown’sparkandtrailnetworkthancontinuingtosupportCitypark5.Mr.Solviginformedthecommitteethatbasedonpriorconversationsofthemembersthisbudgetwillnotbecompliantwiththe2017TaxCap.Thetentativebudgetaspresentedincludesa2%increaseinthePropertyTaxLevywhich,togetherwiththeincreaseintheWaterBenefitAssessmentFee,putstheTown$56,817overtheallowableincreaseperthe2017taxcap.Thecommitteemembersreviewedthetaxcapcalculation,anddiscussedvariouspossibleallocationsofthepropertytaxlevytolowerthetotalpropertytaxrateasmuchaspossible.ReviewandDiscuss2017BoltonPointBudget.TheCommitteereviewedBoltonPoint’s2017PreliminaryBudget.Thetotalbudgetwillincreasefrom$4,402,883in2016to$4,452,857in2017.Thisisanincreaseof$49,974or1.1%overtheprioryear.Thewaterratechargedtomembermunicipalitieswillremainatthe2016rateof$4.44/bOOgallonsin2017.Discuss2016BondIssue.Therewasnonewinformationorfurtherdiscussiononthistopic.PropertyTaxCap.Asdiscussedearlier,thisbudgetwillnotbecompliantwiththe2017TaxCap.Thetentativebudgetaspresentedincludesa2%increaseinthePropertyTaxLevywhich,togetherwiththeincreaseintheWaterBenefitAssessmentFee,putstheTown$56,817overtheallowableincreaseperthetaxcap.OtherItems.-Statusof2016SalesTaxCollections:Mr.Solvigreportedthatsalestaxcollectionsforthefirstsixmonthsof2016totaled$1,413,722.Thiscomparesto$1,462,458collectedinthefirstsixmonthsof2015.Forthefirstsixmonths,2016collectionsareat96.7%of2015collections.Thisisthesecondyearwheresalestaxcollectionshavebeenlessthantheprioryearatthispoint.Mr.Solvigcommentedthatheisconcernedthatsalestaxcollectionsfor2016willbelessthanthe$3,067,336collectedin2015,butmayalsofallshortofthe$3,000,000budgetedfor2016.Ifso,thiswillbethesecondyearnowwherecurrentyearcollectionshavebeenlessthantheprioryear.-ExtensionofFiberOpticCabletoPublicWorksFacility:FingerLakesTechnologyGroup(FLTG)hasrevisedtheirquotetoextendfiberopticcablesfromtheTompkinsCountyPublicWorksFacilitytotheTown’sCountyPublicWorksFacility.Theoriginalquoteincludedaone-timeinstallationfeeof$5,000,plusachargeof$3,300permonthfor6years;atotalof$242,600over6years.Therevisedquotereducestheone-timeinstallationfeeto$2,500,plusachargeof$1,750permonthforthefirst3yearsand$1,000permonthforyears4-10.Over10yearsthecostwouldbe$149,500.FLTGfeltthiswouldallowthemtorecouptheirinstallationcosts.ByputtinginthisfiberatPWFitwouldallowforoneTownwidenetworksystemthatcouldbeoperatedatTownHallforbothlocations.Itwouldimprovethespeedandreliabilityoftransferringinformationbetweenthefacilities,andwouldallowthePublicWorks/EngineeringstafftofullyutilizeourMunicityparcelmanagementprogram.2
UpgradeTelephoneSystemsatTownHallandPublicWorksFacility:OncethereisthefiberopticconnectionbetweenTownHallandPublicWorks,thenextobjectiveistoupgradetheantiquated1997phonesystemateachlocation.Rightnowwehaveaninternallyhostedphonesystemwhichcanonlyberepaired/replacedwithitemsfoundoneBay,orcan’tberepairedatall.Toputinanewexternallyhosteddigitalphonesystemandinternetserviceatbothlocationsitwasquotedtocost$25,620peryear.Thesesystemswouldbeleasedforaninitialperiodof5years.•TownHallTelephoneSystem:A36-phonedigitalsystemwouldbeinstalledatTownHallatacost$1,450permonth.Totalannualcostis$17,400.CostswouldbeallocatedbetweentheGeneral,GeneralPart-Town,WaterandSewerFunds.•PublicWorksFacilityTelephoneSystem:Adigitalsystemconsistingof15phoneswouldbeinstalledatthePublicWorksFacilityatacost$680permonth.Totalannualcostis$8,160.CostswouldbeallocatedbetweentheGeneral,Highway,WaterandSewerFunds.SYear1costsforallprojectswouldbedistributedasshownbelow:ACCOUNT-ACCOUNTDESCRIPTIONANNUALGENERALGENERALHIGKWAYWATERSEWERCOSTFUNDFUNDP-TFUNDFUNDFLMDDARKFIBERSERi1CETOpusucWORKScOsTcThALE)6ENSE1680.496DARKFIBERSERCE23,5003.5251.1757.0505,8755,875TOTAL-DARKFIBERSERViCE23,5003,5251,1757,0505,8755,875TOWNHALLDIGITALPHONESYSTEMCONTflACThALE)QENSE1650415TELEPHONES17.5005,2508.750-1,7501,750TOTAL-TOWNHALLPHONESYSTEM17,5005.2508,750-1,7501,750PUBLICWORKSDIGITALPHONESYSTEMc0’sTftcThALE)G’ENSE1650.415TELEPHONES5,2001.640-2.46020502,050TOTAL-PUBLICWORKSPHONESYSTEM8,2001,640-2,4602,0502,050TOTALYEAR1COST-ALLSERVICES49,20010,41599259,5109,6759,675Thecommitteediscussedtheseprojects,notingthattheTownBoardhaslongbeenawareofboththeinadequateinternetserviceconnectiontoPublicWorks,andtheincreasingageanddeterioratingconditionofthetelephonesystems.Theseproposalswouldmakeitpossibletoproceedandcorrectthesedeficienciesatamanageablecost.ItwastheconsensusofthecommitteethattheTownshouldmoveforwardwiththe5eprojects.Mr.Goodmanstatedhewillhavethecostsoftheseprojectsincludedinhis2017TentativeBudget.Themeetingwasadjournedat1:33p.m.NextMeeting:Wednesday,September21,2016at12:00pm,TownHall-AuroraRoom3
BUDGETCOMMIUEEDraftMeetingNotes-September21,2016Committeepresent:EricLevine-Chairman,BillGoodman,PatLearyStaffpresent:MikeSolvig,JudyDrake,JimWeber,Su5anRitterOtherspresent:Meetingwascalledtoorderat:12:04p.m.AGENDAITEMS:•ReviewandapprovemeetingnotesfromJuly27,2016andAugust24,2016.Mr.SolvigreportedthemeetingnotesfromAugust24havenotbeencompleted.TheCommitteereviewedandapprovedthemeetingnotesfromJuly27.•ReviewandDiscuss2017IthacaTownBudget.TheCommitteereviewedthe2017TentativeBudget.Changestothebudgetsincelastmonth’smeetinginclude:•AdditionofasecondElectrical/CodeEnforcementOfficertoassistwiththeadditionalworkexpectedtobegeneratedbytheMaplewoodexpansion.Mr.GoodmanexplainedthatasheandstaffhadreviewedtheamountofworkwebelievewillbegeneratedbytheMaplewoodproject,itmaybenecessarytohavetwoadditionalinspectorsonstaff.InadditiontotheE/CEOposition($60,000),anadditionalstaffvehicleandotherequipmentisincluded.EmployeeSalaries&Wagesincreasefrom$3,449,706in2016to$3,751,120in2017,anincreaseof$301,414or8.7%.FringeBenefitsincreasefrom$2,020,600in2016to$2,082,125in2017,anincreaseof$61,525or3.0%.TotalPersonnelCostsfortheTownin2017willincreaseby$362,939or6.6%overtheprioryear.•Asdiscussedatthelastmeeting,$23,000hasbeenaddedtoextendfiberopticcablestothePublicWorksFacility,and$25,700fornewtelephonesystemsatTownHallandthePublicWorksFacility.CostsfortheseprojectsweredistributedbetweentheGeneral,GeneralPart-Town,Highway,WaterandSewerFunds.PatLearycommentedthatshewouldalsoliketoseefundsbeingsetasideforsidewalksandaffordablehousing.Mr.Goodmanrespondedthatthesidewalkissueisstillbeingstudiedincommitteeandisnotreadyforbudgetconsiderationyet.Affordablehousingisalsoaverycomplexissue,andhewouldliketoseewhatdevelopsfromtheCounty’shousingsummitthisfallbeforetheTowntakesanyaction.Highlightsforthe2017IthacaTownBudgetincludethefollowing:-TheIthacaTownBudgetwillincreasefrom$24,591,539in2016to$25,595,090in2017,anincrease$1,003,551or4.08%.-ThebudgetedtotalforPersonnelCostsincreasesfrom$5,470,306in2016to$5,833,245in2017,anincreaseof$362,939or6.63%.Personnelcostsrepresent22.79%oftheTown’stotal2017budget.-TotalforPersonalServicesincreasesto$3,751,120in2017from$3,449,706in2016,anincreaseof$301,414or8.74%.1
-ThebudgetedtotalforEmployeeBenefitsincreasesto$2,082,125in2017from$2,020,600in2016,anincreaseof$61,525or3.04%.Totalemployeebenefitsare55.51%ofthetotalforemployeesalariesandwages.-Paymentsforemployeeretirementarebudgetedfor$600,300in2017,anincreaseof$26,300or4.58%fromthe$574,000totalbudgetedin2016.-Paymentsforemployeehealthinsurancearebudgetedfor$1,002,500in2017,adecreaseof$2,000or0.20%fromthe$1,004,500totalbudgetedin2016.-CapitalProjectsbudgetedin2017willtotal$4,485,000;anincreaseof$235,000or5.53%overthe$4,250,000totalbudgetedin2016.Capitalprojectsrepresent17.52%oftheTown’stotalbudget.-ContractualServicesincreaseto$10,998,172in2017;anincreaseof$191,928or1.78%overthe$10,806,244in2016.Contractualservicesrepresent42.97%ofthetotalbudgetfor2017.-Equipment/CapitalOutlaydecreasesfrom$840,000in2016to$825,500in2017;adecreaseof$14,500or1.73%.Equipment/capitaloutlayrepresents3.23%oftheTown’stotalbudget.-SalesTaxcollectionsfor2017arebudgetedat$3,000,000.SalestaxcollectionsfortheTownhavebeenweakthepasttwoyears,with2015actualand2016estimatedcollectionsbothfallingshortoftheprioryear.Salestaxcollectionsrepresent12.33%oftheTown’stotalbudgetedrevenues.-Contributionstocommunityorganizations/programswilltotal$371,283in2017,adecreaseof$27,041fromtheprioryear.Ofthistotal,$350,983isbudgetedintheGeneralTownwideFund,withtheremaining$20,300budgetedintheWaterFund.TheTown’scontributiontoCityofIthacaparkswilldeclinefrom$83,620in2015/2016to$50,000in2017.-TheTownwilltransfer(re-designate)$100,000fromtheunreservedfundbalanceintheGeneralTownwideFundtotheParks,RecreationandOpenSpacePlanAccount.-The2017PropertyTaxLevywilltotal$7,839,200,anincreaseof$154,000or2.00%overtheprioryear.Thisincreasedoesnotcomplywiththepropertytaxcapfor2017.PropertytaxesaretheTown’slargestrevenuesource,representing32.21%oftotalbudgetedrevenues.-ThepropertytaxbillforatypicalpropertyintheTownofIthacawilldecreaseto$1,400.20in2017from$1,424.48in2016,adecreaseof$24.28or1.70%.ThetypicalpropertyintheTownofIthacaisasinglefamilyresidencewithanassessedvalueof$190,000.Thepropertytaxbilltotalshownincludesincreasedwaterandsewerbenefitassessmentfees.-Therewillbenoincreaseinwaterratesandsewerrentsin2017.Waterrateswillstayat$6.55/bOOgallonsofconsumption.Sewerrents,billedonwaterconsumption,willremainat$4.31/lOGOgallons.WaterBenefitAssessmentFeewillincreaseto$110.00/unitfrom$100.00/unitfromtheprioryear.SewerBenefitAssessmentFeewillremainat$25.00/unit•DiscussWaterandSewerRates.Mr.GoodmanremindedthecommitteethatBoltonPointwillbechangingthewaterbillingstructurein2017.Thecurrentbillingstructurechargesaminimumof10,000gallonseachquarterforbillingpurposes,butabout40%ofcustomersuselessthan10,000gallonsperquarter.Underthenewbillingstructure,theminimumusagewillbereducedto5,000gallons.Thiswillreducethequarterlychargeforcustomersusinglessthan10,000gallons.2
Forexample,underthecurrentstructureandrates,acustomerusing5,000gallons/quarterisbilledattheminimumof10,000gallonspaying$65.50forthequarter.Underthenewstructure,thissamecustomerwillonlybechargedforthe5,000gallonsofwaterheused,paying$32.75.Overayear,thisamountstoasavingsof$131.00.Mr.Levineaskedifthewaterrateswouldincreaseunderthenewbillingstructure.Mr.Goodmanrepliedthatrateswillhavetoincreasetomake-uptherevenuethatwillbelostfromthosewhopreviouslypaidatthe10,000gallonminimumbutusedless.Mr.Levinethenaskedifthenewwaterrateswouldbegraduatedsothatcustomerswhousedmorewateralsopaidahigherrateastheusageincreased.Mr.GoodmanrepliedthattheratesBoltonPointchargestheTownwouldbethesameforallusagelevels.Asthehigh-usagecustomerswouldalreadybepayingmorewiththehigherrates,theBoltonPointboarddidnotwanttoaddontothiswithratesthatincreasedasusageincreased.AsBoltonPointgetsreadytoimplementthenewratestructure,theTownwillneedtodetermineonitsownhowitsetstheratesforTowncustomers.Mr.GoodmanalsoadvisedtheCommitteethattheTownwillneedtoreviseitsbillingstructureforsewerrents.•PropertyTaxCap.Therewasnofurtherdiscussiononthistopic.•ReviewandDiscuss2017IAWWTFBudget.TheCommitteereviewedthe2017PreliminaryBudgetfortheIthacaAreaWastewaterTreatmentFacility.Thetotalbudgetwillincreasefrom$3,725,681in2016to$4,112,187in2017.Thisisanincreaseof$386,506or10.4%overtheprioryear.TheTown’spaymentwillincreasefrom$1,154,402in2016to$1,183,284in2017,anincreaseof$28,882or2.5%.•OtherItems.Themeetingwasadjournedat1:28p.m.NextMeeting:Wednesday,October26,2016(ifneeded)at12:00pm,TownHall-AuroraRoom3
TownofIthacaBudgetCommittee2017MeetingScheduleBudgetCommitteemeetingsareheldmonthly,scheduledforthethirdWednesdayofthemonth.Meetingswillbeginat12:00noon,andwillbeheldatTownHallintheAuroraRoom.January18:Setmeetingschedulefor2017.DiscussCommitteeprioritiesfor2017.Updateon2016SalesTaxCollections.ReviewanddiscussTown’sReserveFunds/Accounts.February15:PreliminaryFinancialReportfortheYearEndedDecember31,2016.DiscusscreationofHighwayTownwideFundfor2018Budget.Initialdiscussionon2017BondIssue.March15:FinancialReportfortheYearEndedDecember31,2016.ContinuediscussiononcreationofHighwayTownwideFundfor2018Budget.Continuediscussionon2017BondIssue.April19:ReviewofLong-TermDebtandDebtServiceschedules.ReviewFive-YearFinancialProjections.Initialdiscussionofnewwaterratestructureandwaterrates.May17:ReviewFive-YearCapitalImprovementPlan.ReviewanddiscusstheCapitalBudgetProcess.DiscussPropertyTaxCapOverrideforFY-2018.Continuediscussionofnewwaterratestructureandwaterrates.June21:ContinuereviewofFive-YearCapitalImprovementPlan.July19:ContinuereviewofFive-YearFinancialProjections.Discuss2018PropertyTaxCap.Discusspossibleincreasetowagescale.August16:ReviewTentative2018Budget.September20:ReviewTentative2018Budget.October18:IfNeeded—nomeetingscheduled.November:NoMeetingDecember:NoMeetingPage1of1
TOWNOFITHACASALESTAXCOLLECTIONSFartheYearEndedDecember31,2016LiabilityMonthGeneralGeneralHighwayTOTALMonthCollectedTownwidePan-TownPart-TownJanuaryApril$31,209.81$74123.31$128,740.48$234,073.60FebruaryApril23,120.7654,911.7995,373.11173,405.66MarchApril33,933.3180,591.60139,97488254,499.79AprilMay33,627.7079,865.80138,71427252,207.77MayJuly29,339.2069,680.60121,024.21220,044.01JuneJuly37,265.5488,505.65153,720.35279,491.54JulyAugust34,223.7781,281.46141,173.06256,678.29AugustSeptember31,448.7874,690.86129,726.24235,865.88SeptemberOctober41,937.6799,637.37173,036.17314,611.21OctoberDecember31,742,8875,389.34130,939.39238,071.61NovemberDecember32,327.9776,806.22133,386.23242,520.42DecemberVIEAccrual40,577.0094,516.00167,380.47302,473.47TOTALCOLLECTIONS:$400,754.39i950,000.001,653,188.86$3,003,943.25TOTAL-2016BUDGET:S400,000.00$950,000.00$1,650,000.00$3,000,000.00%of2016BudgetCollected:100.2%100.0%1002%100.1%2013-2016COMPARISONOFSALESTAXCOLLECTIONSPERIOD2013201420162016COMPARISONJanuary$250,612.00$220,056.70$246,519.03$234,073.6094.95%February203,476.74186,064.03193,488.68173,405.6689.62%March259,150.60327,857.13263,293.38254,499.7996.66%1stQuarter$713,239.34$733,977.86$703,301.09$661,919.0594.12%April$208,981.24$219,069.27$232,815.10$252,207.77108.33%May216,676.25215,857.69231,478.57220,044.0195.06%June304,434.02348,793.74294,863.66279,491.5494.79%2ndQuarter$730,091.51$783,720.70$769,157.33$751,743.3299.02%First6Months$1,443,330.85S1,517,698,56$1,462,458.42S1,413,722.3796.67%July$223,126.63S228,195.87$242,962.28$256,678.29105.65%August222,005.89241,303,19245,767.26235,865.88,95.97%September343,687.65321,392.55289,144.08314,611.21108.81%3rdQuarter$788,820.17S790,891.61S777,873.62$807,156.38103.76%First9ManthsS2,232,151.02S2,308,590.17S2,240,332.04S2,220,877.7599.13%October$221963.28S240,640.03$272,562.76$238,071.6187.35%November227,031.34228,886.09252,177.41242,520.4296.17%December309,717.03356,967.92302,264.18302,473.47100.07%4thQuarter$758,711.65$826,494.04$827,004.35$783,065.5094.69%ANNUALTOTAL$2,990,862.67$3,135,084.21$3,067,336.39$3,003,943.2597.93%
TOWNOFITHACARESERVEFUNDSANDACCOUNTSPARK,RECREATIONANDOPENSPACEPLANRESERVEACCOUNT-TheFundBalanceoftheGeneralTownwideFundincludesfundsdesignatedforthepurposeoffutureparkdevelopmentandthepurchasingofdevelopmentrights,asoutlinedintheTown’sPark,RecreationandOpenSpacePlan,asadoptedonDecember12,1997.Asof1/01/16,thebalanceofthisaccountwas$811,260.DuringFY2016thisaccountwasincreasedbya$75,000re-designationoffundbalance,plus$716ininterestincome.Expendituresfromthisaccounttotaled$160,110forpurchaseoftheMeigspropertyonWestHill.Thebalanceofthisaccountasof12/31/16was$726,866.ThisaccountisfundedbytheTownBoardmakinganannualre-designationofaportionoftheFundBalanceoftheGeneralTownwideFundfromunreservedtoreserved.Additionalincomeisreceivedfrominterestearnings.AnadditionalSi00,000inunreservedfundbalancewasdesignatedasreservedforthispurposebytheTownBoardinJanuary2017,Nomaximumamounthasbeenestablishedforthisreserve.Itwasrecommendedthatthequestionofamaximumdesignatedamountberevisitedwhenthebalancereaches$1,000,000.GENERALBENEFITRESERVEACCOUNT-ThefundbalancesintheGeneralTownwideFund,GeneralPart-TownFund,HighwayPart-TownFund,WaterFund,andSewerFundincludesreservesestablishedformanagingunanticipatedincreasesinemployeefringebenefitcosts(e.g.NYSEmployeeRetirementSystem,HealthInsurance).Theaggregatebalanceofthisreserveasof12/31/16was$350,269.Thebalancebyfundisasfollows:GeneralTownwideFund$169,306GeneralPart-TownFund59,979HighwayPart-TownFund88,479WaterFundi7,863SewerFund14,642Total-BenefitReserve;$350,269Inpastyearsthisaccountwasfundedbyannuallyre-designatingaportionoffundequityfromunreservedtoreservedinthosefundsservedbythisreserve.Additionalincomeisreceivedfrominterestearnings.In2015theTownBoardestablishedthemaximumofthisreservebesetat$350,000.Balanceinexcessofthelimitatyear-endtobereturnedtotheunreservedfundequityofthehostfunds.PRESERVEMAINTENANCEACCOUNT-TheFundBalanceoftheGeneralTownwideFundalsoincludesfundsdesignatedforthemaintenanceofthePineTreeWildlifePreserve,donatedtotheTownbyalocalfamilyin2013.Inconjunctionwiththedonationoftheland,theamountof$40,000wasalsodonatedtoprovideforfuturemaintenanceofthepreserve.Asof12/31/16thebalanceofthisaccounttotaled$40,097.Futureincomewillbelimitedtointerestearnings.Asthisaccountisexpectedtodecreaseovertime,nomaximumamountwasestablished.LANDSTEWARDSHIPACCOUNT-In2014theTownpurchasedthedevelopmentrightstotheIndianCreekFarmwithfinancialassistancethroughaStateofNewYorkgrant.Thisgrantincluded$10,000tobeheldbytheTown,designatedforthefuturestewardshipoftheIndianCreekFarmlands.Fortheyearended12/31/16,thebalanceofthisaccounttotaled$10,018.Futureincomeforthisreservewillalsobelimitedtointerestearnings.Asthisaccountisalsoexpectedtodecreaseovertime,nomaximumamountwasestablished.
HIGHWAYEQUIPMENTRESERVEACCOUNT-TheFundBalanceoftheHighwayPart-TownFundincludesfundsdesignatedforthepurchase/replacementofhighwayequipmentandmachinery.Thebalanceinthisaccountasof1/01/16was$249,987.DuringFY-2016thisaccountwasincreasedby$51,351receivedfromthesaleofsurplusequipment,plus$86ininterestincome.Expendituresfromthisaccounttotaled$238,908forpurchaseofanewGradallExcavator.Balanceofthisaccountasof12)31/16was$62,516.Thisaccountisfundedbysaleofsurplusmachineryandequipment,withadditionalincomefrominterestearnings.In2015theTownBoardestablishedthemaximumofthisaccountbesetat$250,000.Balanceinexcessofthelimitatyear-endtobereturnedtotheunreservedfundequityoftheHighwayFund.RISKRETENTIONFUND-Thisfundisusedtoaccountforexpendituresfor1)directemployeehealthandwellnessexpenditures,includingwork-relatedemergencyroomandclinichealthcarevisits,and2)repairstoequipmentandfacilitiesnotcoveredbyinsurance,oruntilreimbursementfrominsuranceisreceived.Incomeforthisfundisderivedfromannualbudgetedinter-fundtransfers,plusinsurancerecoveriesandinterestincome.Fundbalanceasof12/31/16was$166,908.TheTownBoardhasestablishedthemaximumfundbalanceoftheRiskRetentionFundbesetat$150,000.Balanceinexcessofthelimitatyear-endtobereturnedtotheunreservedfundequityofthecontributingFunds.SJCACCOUNTINSEWERFUND-TheFundBalanceoftheSewerFundincludesfundsdesignatedforSJCpurposes.In2015thesepurposesweredefinedbytheTownBoardas1)topayforexpendituresrelatedtotheimprovementofjointly-ownedsewerinterceptorlines,and2)topaytheTown’sshareoftheCityofIthaca’sbondeddebtissuedtopayforIthacaAreaWastewaterTreatmentFacility(IAWWTF)improvements.Thebalanceinthisaccountasof12/31/16totaled$1,307,910.1)Jointly-ownedSewerInterceptorLines:InterceptorsewersconveysewagefromtheTownthroughtheCityofIthacafortreatmentattheIAWWTF.TheseinterceptorsewersarejointlyownedwiththeCity,andtheTownisresponsibleforaportionofthemaintenanceandreplacementcostsoftheselines.TheTownofIthacaandtheCityofIthacamustinitiallyapproveallcapitalprojectsandrelatedexpendituresbeforeanyconstructioncantakeplace.ThereplacementoftheStateStreetInterceptoristhelastoffiveprojectsoriginallyagreedtobetweentheTownandCity.$300,000oftheSJCaccountbalancehasbeendesignatedtopayforfutureimprovementofjointly-ownedsewerinterceptorlines.2)IAWWTFBondedDebt:Asof12/31/16,outstandingbondeddebttotaled$17,500,000(est.).TheTownshare(40.88%)ofthistotalamountsto$7,154,000.In2015,TheTownBoarddetermineditwouldbeprudentfortheTowntodesignatefundstopaypartofthisdebtintheeventoffutureeconomichardships,andthatsuchfundswouldbeinanamountequalto25%oftheTown’sshareofoutstandingIAWWTFdebtatyear-end,tobereviewedandadjustedannually.Thisamount,basedonthe12/31/16outstandingdebttotal,Wouldequal$1,788,500.Asof12/31/16,theactualamountavailableintheSJCaccountwas$1,007,910.Thisis$780,590belowthecalculatedamount.ThetotaldesignatedforSJCpurposesasof12/31/16shouldbe$2,088,500.Itisrecommendedthattheamountof$200,000betransferredtotheSJCaccountfromtheunreservedfundbalanceoftheSewerFund.PURPOSE12t3112016CALCULATEDAMOUNTSJCACCOUNTSJCACCOUNTOVER(UNDER)SewerInterceptorLines$300,000$300,000$-IAWWTFBondedDebt$1,007,910$1,788,500$(780,590)TOTALSJCACCOUNT$1,307,910$2,088,500$(780,590)2