HomeMy WebLinkAboutMeeting Notes 2-15-2017
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BUDGET COMMITTEE
Meeting Notes - February 15, 2017
Committee present: Eric Levine - Chairman, Pamela Bleiwas
Staff present: Mike Solvig, Judy Drake, Sue Ritter (left at 12:29)
Others present: Bill Goodman, Tompkins County Assessor Jay Franklin
Meeting was called to order at: 12:05 p.m.
AGENDA ITEMS:
• Review and approve meeting notes.
The Committee reviewed and approved the draft meeting notes from January 18, 2017.
• Discuss RPTL Sec. 485-g Infrastructure Exemption.
One of the impediments for developing housing on a large scale is the carrying costs of holding the
remaining land that could not be absorbed into the market place. As a subdivision is developed,
the installation of utilities (roads, water, sewer, electricity, etc.) increases the value of the land.
The resulting increase in the taxable assessed value means increased property taxes paid by the
developer on the unsold lots. Real Property Tax Law Sec. 485-g allows for a 3-year exemption in
this increase spread out amongst the remaining lots owned by the developer, thereby reducing
the carrying costs for the subdivision.
Tompkins County Assessor Jay Franklin informed the Committee that this law has to be adopted
separately by each taxing district. If the Town adopts the law, the exemption only applies to taxes
levied by the Town, not to taxes levied by the County or school district. Mr. Franklin distributed
and explained a sample exemption calculation, noting that a developer must apply to the Assessor
for the exemption, the exemption lasts for three years, the exemption cannot be applied
retroactively, and once a lot is sold it becomes fully taxable. Adopting this law has no financial
implications to the Town in the sense that it will not reduce what the Town collects on its tax levy.
As with any exemption, the holder of the exemption will pay a little less, and everyone else will
pay a little more.
The Committee members agreed that by reducing the cost to the developer you encourage
development, and were in favor of moving this on for consideration by the Town Board.
• Discuss establishing a Highway Townwide Fund for the 2018 Ithaca Town Budget.
Historically, the Town has accounted for revenues and expenditures for highway purposes (repairs
& improvements, machinery, snow removal and miscellaneous) through a Highway Part-Town
Fund, which excludes the Village of Cayuga Heights. For towns with villages, Highway Law Sec.
277 requires that expenditures for repairs & improvements be financed by the area outside the
village. Expenditures for machinery, snow removal and miscellaneous may be financed on a town-
wide basis, unless the town board elects to finance these activities by only the area outside the
village. The NYS-OSC Accounting and Reporting Manual states that “a town with a village must
maintain two highway funds, town-wide and part-town”.
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The committee reviewed and discussed the report on creating a town-wide highway fund. This
report suggested financing expenditures for Snow Removal a town-wide basis, including those
Machinery and Employee Benefit expenses associated with snow removal activities. As shown on
the schedule on page 1 of the report, this would be $447,540 for Snow Removal, $152,900 for
related Machinery expenses, and $124,357 for Employee Benefits, a total of $724,797 that would
be financed on a town-wide basis. This represents 23.1% of total expenditures for highway
purposes, not including capital projects.
The two major revenue sources for the current Highway Part-Town Fund are the Property Tax Levy
and Sales Tax Collections. If property tax is used to finance this fund, the effect of moving part of
the property tax levy from the part-town tax base to the larger town-wide tax base will be to
decrease taxes on properties in the Town, and increase taxes on properties in the Village. Based
on 2017 tax year assessment totals, a shift of $250,000 from the part-town levy to the town-wide
levy would decrease the property tax bill to the typical property in the Town by approx. $13.62,
and increase the property tax bill on a typical Village property by approx. $58.52.
Chairman Levine commented that this will return the property tax levy to the way it was originally
intended. Prior to 2010, the entire property tax levy
1 was in the General Townwide Fund,
apportioned over the town-wide tax base which included the Village of Cayuga Heights. In 2010
the property tax levy was split between the General Townwide Fund and the Highway Part-Town
Fund for what were, and still remain, good reasons. However, an unintended outcome of this
action was that part of the property tax levy was now apportioned over the smaller part-town tax
base, excluding the Village of Cayuga Heights. This was not adequately explained to the Town
Board at the time the change was implemented, and only in the past few years have the board
members come to fully appreciate the effects of that change.
Mr. Solvig requested that this concept be discussed with and a decision made by the full Town
Board well in advance of starting the 2018 budget process, if possible. There is a considerable
amount of work which needs to be done to “weave” a new fund into the budget documents, and
he would prefer not to invest a great deal of time in this if the majority of the Town Board
members were not in favor of proceeding in this direction.
1 Does not include the property tax levies for the Fire Protection Fund, Water Fund and Sewer Fund.
• Preliminary Financial Report for the Year Ended December 31, 2016.
The Committee reviewed the preliminary Financial Report for the Year Ended December 31, 2016.
Results were generally positive, with fund balance increasing in all funds except the Capital Project
Funds and Inlet Valley Cemetery Fund. For all funds, combined expenditures and other uses of
$21,912,596 exceeded combined revenues and other sources of $21,448,337. Of continuing
concern is that revenues from sales tax collections declined from the prior year’s total for the
second year in a row. Collections have fallen by 4.2% from the historical high total of $3,135,084
received in 2014.
For the major funds, results of 2016 operations were as follows:
- GENERAL TOWNWIDE FUND - Fund equity increased by $227,434, with revenues of $4,461,753 exceeding
expenditures of $4,234,319. Ending fund balance totaled $3,722,879, which includes reserves of
$726,866 for the Parks, Recreation and Open Space Plan Reserve, $169,306 for the General Benefit
Reserve, $40,097 for the Preserve Maintenance Reserve, and $10,018 for the Land Stewardship
Reserve. The unreserved fund balance of $2,776,592 represents 56.7% of 2017 budgeted
appropriations.
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- GENERAL PART-TOWN FUND - Fund balance increased by $71,436 as revenues of $1,421,807 exceeded
expenditures of $1,350,371. Total expenses were significantly under budget, due in large part to
contractual services being well below budget. The ending fund balance of $942,030 includes $59,979
for the General Benefit Reserve. The unreserved fund balance of $882,051 represents 51.1% of 2017
budgeted appropriations.
- HIGHWAY PART-TOWN FUND - With revenues of $3,356,081 exceeding expenditures of $3,353,972, fund
equity increased by $2,108. Revenues were higher than expected, helped by increased receipts for sale
of surplus equipment and state aid (CHIPS). Ending fund balance of $1,827,327 includes $62,516 for the
Highway Equipment Reserve and $88,480 for the General Benefit Reserve. U nreserved fund balance
totals $1,676,331 or 46.0% of 2017 budgeted appropriations .
- WATER FUND - Fund balance increased by $243,797 as revenues of $4,254,104 exceeded expenditures
totaling $4,010,307. Revenues were higher than expected, helped by increased receipts for metered
water sales as a result of the dry summer. The ending fund balance of $2,575,525 includes $17,863 for
the General Benefit Reserve. The unreserved fund balance of $2,629,976 represents 63.8% of 2017
budgeted appropriations.
- SEWER FUND - With revenues of $2,713,467 exceeding expenditures of $2,645,537, fund balance
increased by $67,930. Increased revenues were realized due to higher than budgeted sewer rent
receipts. The ending fund balance of $2,809,320 includes $14,642 for the General Benefit Reserve and
$1,307,910 for SJC projects account. The unreserved fund balance of $1,486,768 represents 51.7% of
2017 budgeted appropriations.
- FIRE PROTECTION DISTRICT FUND - With revenues of $3,609,065 exceeding estimated expenditures of
$3,465,987, fund equity increased by $143,078 to total $1,181,217 at year-end. The year-end fund
balance represents 34.6% of 2016 budgeted appropriations.
Staff is waiting for the December fire protection invoice from the City before closing the books for
2016. There are also some final adjustments to both revenues and expenditures that will need to
be made.
The reserve funds and accounts are all in very good shape as of year-end, and were reviewed by
the Budget Committee at the January meeting.
• Discuss 2017 Bond Issue.
The Town is scheduled to issue new long-term debt this year to finance water infrastructure
projects included in the 2016 and 2017 Capital Improvement Programs. The Trumansburg Water
Tank was constructed in 2016. Most of the Park Lane Water Main project was completed and put
in service in 2016. The Sapsucker Woods Water Main and Christopher Circle Water Main projects
are out for bids, and will be constructed this year. We anticipate issuing approx. $2,200,000 in
new debt as detailed on the following schedule:
Amount Amount Issuance
Authorized Bonded Costs
Trumansburg Road Water Tank 900,000$ 710,000$ 10,811$
Park Lane Water Mains 500,000 500,000 7,614
Sapsucker Woods Water Mains 579,000 570,000 8,680
Christopher Circle Water Mains 422,000 420,000 6,395
Total - 2016 / 2017 Capital Projects 2,401,000$ 2,200,000$ 33,500$
2016 / 2017 Capital Projects
The estimated issuance costs of $33,500 represent 1.5% of the expected bond proceeds.
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Amount
Bond Attorney - Orrick, Herrington & Sutcliffe 11,500.00$
Bond Advisors - Fiscal Advisors & Marketing, Inc.8,500.00
Bond Rating - Moody's Investors Services 11,500.00
Printing & Mailing - Premier Printing Services 2,000.00
Total Estimated Bond Issuance Costs:33,500.00$
Estimated Bond Issuance Costs
While assuming the bonds will be issued for a 15 year term, Mr. Solvig also wanted to inform the
Committee of the financial implications of a 10 year term.
- 15 YEAR MATURITY: Estimated interest rate at an average of 2.65% over the 15 year life of the
bonds. The average annual debt service payment is approx. $180,200. Total interest paid over
the life of the bonds is estimated at $502,000. Final payment would be made in 2032.
- 10 YEAR MATURITY: Estimated interest rate at an average of 2.15% over the 10 year life of the
bonds. The average annual debt service payment is approx. $247,250. Total interest paid over
the life of the bonds is estimated at $271,000. Final payment would be made in 2027.
Mr. Levine commented that he would like to save the $231,000 in interest charges with the 10
year maturity. Mr. Solvig replied that he completely agrees, however, in addition to the additional
$67,000 in principal payments each year, the Town will also be issuing (at least) another $2.5
million in new bonds again next year to finance the Ellis Hollow water tank. We do not have to
make this decision now, but it does need to be made soon.
Mr. Solvig also informed the Committee that the Town will continue using Orrick, Herrington &
Sutcliffe LLP of New York (Douglas E. Goodfriend) as our Bond Counsel, and Fiscal Advisors and
Marketing, Inc. of Syracuse (John Shehadi) as our Bond Advisor.
• Other Items.
- Escrow Account for Series 2014-A Refunding Bonds: This escrow account at the Bank of New
York Mellon was finally closed. On February 13, the Town received a check for the $20.00
balance remaining in the account since May 2015.
- 2017 Justice Court Assistance Program (JCAP) Grant: The Town received a check from the
State in the amount of $1,029.96 for the 2017 JCAP Grant. This year’s grant will allow the
Ithaca Town Court to purchase computer monitors and a camera system for the Town Hall
lobby.
- Audit of 2016 Financial Statements: Auditors from Sciarabba Walker & Co. will be here on
March 20 & 21 for preliminary field work. Field work is scheduled for the first week of May.
No schedule has been set yet for the Court audit.
- Moody’s Update: Mr. Goodman shared with the Committee a copy of the annual update to
the Town’s profile by Moody’s Investors Service. The report will be in the correspondence
folder at the next Town Board meeting.
- Water Bill Appeal: Mr. Goodman told the Committee a water customer with a high water bill
has asked to appeal the Town Board for relief. Mr. Goodman explained that for several years
the customer did not report actual water meter readings to Bolton Point, but simply reported
the same usage each quarter. When the old meter was recently replaced with the new
automated reporting meter, it was found there was considerable unreported usage on the old
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meter. The customer states that as he has been paying a minimum bill each quarter, that
usage should be deducted from the current bill. Bolton Point has declined to adjust the bill
based on that argument as, without any actual readings to use as points of reference, it’s
impossible to know if the unreported usage was gradual over time, or came largely at one or
two points in time.
After discussion, it was the consensus of the Committee that this was a self-created hardship
by the customer when he did not take the time to record and send in the actual readings. The
Committee declined to forward the appeal to the full Town Board.
- Change in May meeting date: Mr. Solvig asked the Committee if the May meeting date could
be moved from May 17. The Committee agreed to move the May meeting to May 10.
The meeting was adjourned at 1:28 p.m.
Next Meeting: Wednesday, March 15, 2017 at 12:00 pm, Town Hall - Aurora Room
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TOWN OF ITHACA
COMPARISON OF CURRENT DB HIGHWAY FUND WITH PROPOSED DA / DB HIGHWAY FUNDS
Current DB Highway Part-Town Fund: With Proposed DA Highway Town-wide Fund:
REVENUE REVENUE
REAL PROPERTY TAXES 1,250,000$ REAL PROPERTY TAXES 250,000$ 1,000,000$ 1,250,000$
SALES TAX COLLECTIONS 1,955,000 SALES TAX COLLECTIONS 464,000 1,491,000 1,955,000
SNOW & ICE RMVL - CNTY 10,000 SNOW & ICE RMVL - CNTY 10,000 - 10,000
INTEREST 2,500 INTEREST 750 1,750 2,500
SALE OF EQUIPMENT 25,000 SALE OF EQUIPMENT - 25,000 25,000
OTHER - OTHER - - -
STATE AID - CHIPS 74,000 STATE AID - CHIPS - 74,000 74,000
BOND PROCEEDS 200,000 BOND PROCEEDS - 200,000 200,000
TOTAL REVENUE 3,516,500$ TOTAL REVENUE 724,750$ 2,791,750$ 3,516,500$
EXPENSE EXPENSE
GENERAL GOVERNMENT 75,550$ GENERAL GOVERNMENT -$ 75,550$ 75,550$
TRANSPORTATION TRANSPORTATION
- GENERAL REPAIRS 521,320$ - GENERAL REPAIRS -$ 521,320$ 521,320$
- PERMANENT REPAIRS 960,300 - PERMANENT REPAIRS - 960,300 960,300
- MACHINERY 641,350 - MACHINERY 152,900 488,450 641,350
- BRUSH & WEEDS 263,570 - BRUSH & WEEDS - 263,570 263,570
- SNOW REMOVAL 447,540 - SNOW REMOVAL 447,540 - 447,540
TOTAL TRANSPORTATION 2,834,080$ TOTAL TRANSPORTATION 600,440$ 2,233,640$ 2,834,080$
EMPLOYEE BENEFITS EMPLOYEE BENEFITS
- NYS RETIREMENT 143,500$ - NYS RETIREMENT 32,431$ 111,069$ 143,500$
- HEALTH INSURANCE 235,000 - HEALTH INSURANCE 53,110 181,890 235,000
- OTHER BENEFITS 171,750 - OTHER BENEFITS 38,816 132,934 171,750
TOTAL BENEFITS 550,250$ TOTAL BENEFITS 124,357$ 425,893$ 550,250$
TRANSFERS TO OTHR FNDS TRANSFERS TO OTHR FNDS
- GENERAL FUND 118,800$ - GENERAL FUND -$ 118,800$ 118,800$
- RISK RETENTION FUND 3,200 - RISK RETENTION FUND - 3,200 3,200
- DEBT SERVICE FUND 259,425 - DEBT SERVICE FUND - 259,425 259,425
TOTAL TRANSFERS - OUT 381,425$ TOTAL TRANSFERS - OUT -$ 381,425$ 381,425$
TOTAL EXPENSE 3,841,305$ TOTAL EXPENSE 724,797$ 3,116,508$ 3,841,305$
TOTALDESCRIPTIONDB FUND DESCRIPTION DA FUND DB FUND
Historically, the Town has accounted for revenues and expenditures for highway purposes (repairs &
improvements, machinery, snow removal and miscellaneous) through a Highway Part-Town Fund, which
excludes the Village of Cayuga Heights. For towns with villages, Highway Law Sec. 277 requires that
expenditures for repairs & improvements be financed by the area outside the village. Expenditures for
machinery, snow removal and miscellaneous may be financed on a town-wide basis, unless the town
board elects to finance these activities by only the area outside the village. The NYS-OSC Accounting
and Reporting Manual states that “a town with a village must maintain two highway funds, town -wide
and part-town”.
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If the Town Board were to decide to begin financing part of our highway expenditures on a town -wide
basis, the Board would need to identify those activities to be included. The Town’s current activities
that could be financed on a town-wide basis include:
▪ General Governmental expenditures, budgeted at $75,500 in 2017.
▪ Transportation expenditures other than repairs & improvements:
- Machinery, budgeted at $641,350.
- Brush & Weeds, budgeted at $263,570.
- Snow Removal, budgeted at $447,540.
▪ Employee Benefits, budgeted at $550,250 in 2017.
▪ Transfers to Other Funds, budgeted at $381,425.
After reviewing these activities, it seems reasonable that expenditures for Snow Removal be financed on
a town-wide basis, including those Machinery and Employee Benefit expenses associated with snow
removal activities. As shown on the schedule on page 1, this would be $447,540 for Snow Removal,
$152,900 for related Machinery expenses, and $124,357 for Employee Benefits, a total of $724,797 that
would be financed on a town-wide basis. This represents 23.1% of total expenditures for highway
purposes, not including capital projects.
The Town Board will also need to decide which revenue, or mix of revenues, will be used to finance this
fund. The two major revenue sources for the current Highway Part-Town Fund are the Property Tax
Levy and Sales Tax Collections. If property tax is used to finance this fund, the effect of moving part of
the property tax levy from the part-town tax base to the larger town-wide tax base will be to decrease
taxes on properties in the Town, and increase taxes on properties in the Village. A shift of $250,000
from the part-town levy to the town-wide levy would have the following effects:
• Town of Ithaca: The taxable assessed valuation of the Town of Ithaca is $1,409,739,322. The
typical property is a single-family residence with an assessed value of $190,000. For this typical
Town property, property taxes paid in 2017 are $1,315 in County tax and fees, $1,400 in Town tax
and fees, and $3,450 in School District tax; a total of $6,165. The shift of $250,000 from the part -
town levy to the town-wide levy would decrease property tax by approx. $13.62.
• Village of Cayuga Heights: Taxable assessed valuation of the Village of Cayuga Heights is
$405,855,741. The typical property is a single-family residence with an assessed value of
$330,000. For this typical Village property, property taxes paid in 2017 are $2,240 in County tax
and fees, $715 in Town tax, $2,132 in Village tax, and $5,993 in School District tax; a total of
$11,080. The shift of $250,000 from the part-town levy to the town-wide levy would increase
property tax on a typical Village property by approx. $58.52. This is an increase of 8.8% in the
Town tax, and a 0.5% increase in total annual taxes paid.
TOWNOFITHACABUDGETCOMMITTEEWednesday,February15,2017-12:00p.m.TownHall-AuroraConferenceRoomAGENDA•ReviewandapprovemeetingnotesfromJanuary18,2017.•DiscussRPTLSec.485-gInfrastructureExemption.TompkinsCountyAssessorJayFranklinwillbeatthismeeting.•InitialdiscussiononcreationofHighwayTownwideFundfor2018Budget.•PreliminaryFinancialReportfortheYearEndedDecember31,2016(subjecttoaudit).•Initialdiscussionon2017BondIssue.•OtherItemsNextMeeting:Wednesday,March15,2017at12:00p.m.
BUDGETCOMMIHEEDraftMeetingNotes-January18,2017Committeepresent:EricLevine-Chairman,PatLeary,PamelaBleiwasStaffpresent:MikeSolvig,JudyDrakeOtherspresent:BillGoodmanMeetingwascalledtoorderat:12:01p.m.AGENDAITEMS:•Reviewandapprovemeetingnotes.TheCommitteereviewedandapprovedthedraftmeetingnotesfromtheAugust24,2016andSeptember21,2016meetings.•Set2017BudgetCommitteemeetingdates.Thecommitteereviewedandapprovedtheproposedmeetingschedulefor2017.BudgetCommitteemeetingsin2017willbeheldthethirdWednesdayofeachmonth.Meetingswillbeginat12:00noon,andwillbeheldatTownHallintheAuroraRoom.•Discuss2017BudgetCommitteepriorities.Thecommitteeidentifiedthefollowingtopicsasprioritiesfor2017:-ReviewReserveFundsandAccounts,settingmaximumbalanceswhereappropriate.-ConsidertheestablishmentofaHighwayTownwideFund.-ContinuereviewoftheTownsvoluntarycontributionstocommunityorganizations.ReviseWaterRatesandSewerRentsfor2018basedonBoltonPoint’snewratestructure.-ReviewTown’sLong-TermDebt.2017BondIssue—NewEllisHollowWaterTank&WaterMainswilllikelybein2018.-PropertyTaxCap.-Five-YearFinancialProjections.-Five-YearCapitalImprovementPlanand2018CapitalBudget.-2018IthacaTownBudget.•Updateon2016SalesTaxandMortgageTaxCollections.-SalesTaxCollections:TheCommitteereviewedtheSalesTaxCollectionsReportfortheYearEndedDecember31,2016.Mr.SolviginformedtheCommitteethattheTownhasnotyetreceivedthe$302,473Decemberpayment,butTompkinsCountyFinanceDirectorRickSnyderwasabletofurnishhimwiththeamount.Asexpected,totalcollectionsfor2016fellbelowtotalcollectionsfor2015.Budgetedfor$3,000,000in2016,actualSalesTaxcollectionsof$3,003,943werejustslightlyoverbudget,butatonly97.9%ofthe$3,067,336collectedin2015.Totalsalestaxcollectionsfor2017areagainbudgetedat$3,000,000.1
SALESTMCOLLECTIONS20122012014201520162017SalesTax-Budget$2,650,000S2,750,000$2,825,000$2,885.000$3,000,000$3,000,000SalesTax-Actual2,907,2132.990,8633,135,0543,067,3363,003.943-ActualOver(Under)Budget$257.213$240,863$310.054$182,336$3,943$-Actualas%otPriorYearActual103.48%102.88%104.82%97.54%97.93%WAMortgageTaxCollections:Mr.Solvigreportedthatcollectionsfor2016totaled$286,227,asubstantialdecreasefromthe$429,760collectedin2015.However,includedinthe2015totalwasanunexpectedone-timereceiptof$169,770fromtheexpansionofKendallatIthaca.Withoutthisone-timereceipt,collectionsfor2015wouldhavetotaledonly$245,990.*4Totalmortgagetaxcollectionsfor2017arebudgetedat$250,000.aMORTGASETAXCOLLECTIONS201220132014201520162017MortgageTax-Budget$200,000$220,000$250,000$350,000$300,000$250,000MortgageTax-Actual279,560313,999329,274429,760286,227-ActualOver(Under)Budget$79,560S93,999$79,274$79,760$(13,773)$-Actualas%atPriorYearActual112.71%112.32%104.06%130.52%6640J’.WA•DiscussTown’sReserveFundsandAccounts.ThecommitteereviewedanddiscussedthereportontheTown’sreservefundsandaccounts.Parks.RecreationandOpenSpacePlanAcêtbnt:TheFundBalanceoftheGeneralTownwideFundincludesfundsdesignatedforthepurposeoffutureparkdevelopmentandthepurchasingofdevelopmentrights,asoutlinedintheTown’sPark,RecreationandOpenSpacePlan,asadoptedonDecember12,1997.Asof1/01/16,thebalanceofthisaccountwas$811,260.DuringFV-2016thisaccountwasincreasedbya$75,000re-designationoffundbalance,plus$716ininterestincome.Expendituresfromthisaccounttotaled$160,110forpurchaseoftheMeigspropertyonWestHill.Thebalanceofthisaccountasof12/31/16was$726,866.ThisaccountisfundedbytheTownBoardmakinganannualre-designationofaportionoftheFundBalanceoftheGeneralTownwideFundfromunreservedtoreserved.Additionalincomeisreceivedfrominterestearnings.Anadditional$100,000inunreservedfundbalancewasdesignatedasreservedforthispurposebytheTownBoardonJanuary9,2017(ResolutionNo.2017-014g).-GeneralBenefitReserveAccount:Theaggregatebalanceofthisaccountasof12/31/16was$350,269.Thebalancebyfundisasfollows:GeneralTownwideFund$169,306GeneralPart-TownFund59,979HighwayPart-TownFund88,479waterFund17,863SewerFund14,642Total-BenefitReserve:$350,269In2015theTownBoardsetthemaximumforthisaccountat$350,000,withthebalanceinexcessofthemaximumatyear-endtobereturnedtotheunreservedfundequityofthehostfunds.2
Mr.SolvigpresentedtotheCommitteeafundinganalysis,basedon2017budgetamountsforretirementandhealthinsurancebenefits,thatwouldadjusttheamountsintheGeneralBenefitReserveto$350,000.Afterdiscussion,theCommitteedirectedMr.Solvigtoadjustthereserveamountstoreflectthe$350,000maximum.Theadjustedbalancebyfundwouldbeasfollows:GeneralTownwideFund$177,750GeneralPart-TownFund60,250HighwayPart-TownFund82,650WaterFund18,550SewerFund10,800Total-BenefitReserve:$350,000PreserveMaintenanceAccount:TheGeneralTownwideFundincludesfundsdesignatedforthemaintenanceofthePineTreeWildlifePreserve,donatedtotheTownbyalocalfamilyin2013.Inconjunctionwiththedonationoftheland,theamountof$40,000wasprovidedforfuturemaintenanceofthepreserve.A5of12/31/16thebalanceofthisaccounttotaled$40,097.Futureincomeforthisaccountwillbelimitedtointerestearnings.LandStewardshipAccount:In2014theTownpurchasedthedevelopmentrightstotheIndianCreekFarmwithfinancialassistancethroughaStateofNewYorkgrant.Thisgrantincluded$10,000tobeheldbytheTown,designatedforthestewardshipoftheIndianCreekFarmlands.Fortheyearended12/31/16,thebalanceofthisreservetotaled$10,018.Futureincomeforthisaccountwillalsobelimitedtointerestearnings.HighwayEquipmentAccount:ThefundbalanceoftheHighwayPart-TownFundincludesfundssetasideforthepurchase/replacementofhighwayequipmentandmachinery.Thebalanceasof12/31/16was$62,516.Thisreserveisfundedbysaleofsurplusmachineryandequipment,withadditionalincomefrominterestearnings.In2015theTownBoardsetthemaximumforthisaccountat$250,000,withfundsbysaleofsurplusmachineryandequipmentinexcessofthemaximumtobedepositedtotheunreservedfundbalanceoftheHighwayFund.RiskRetentionFund:Thisfundisusedtoaccountforexpendituresfor1)directemployeehealthandwellnessexpenditures,includingwork-relatedemergencyroomandclinichealthcarevisits,and2)repairstoequipmentandfacilitiesnotcoveredbyinsuranceoruntilreimbursementfrominsuranceisreceived.Incomeforthisfundisderivedfromannualbudgetedinter-fundtransfers,plusinsurancerecoveriesandinterestincome.Fundbalancewas$166,908asofDecember31,2016.In2015theTownBoardestablishedthemaximumfundbalanceoftheRiskRetentionFundbesetat$150,000,withanyamountinexcessofthemaximumatyear-endtobereturnedtotheunreservedfundequityofthecontributingfunds.Tomeetthemaximumfundbalance,approx.$16,900wouldneedtobereturnedtothecontributingfunds.Mr.SolvigexplainedthattheGeneralFunds,HighwayFund,WaterFundandSewerFundareeachbudgetedtotransfer$3,200(atotalof$16,000)totheRiskRetentionFundin2017.Asexpendituresinthisfundfor2017shouldtotal$10,000,hisrecommendationwouldbetomakenocontributionin2017andseewherethefundbalanceisatyear-end.TheTowncouldmakeanynecessaryadjustmentsatthattime.3
-SicAccountinSewerFund:TheFundBalanceoftheSewerFundincludesfundsdesignatedforSiCpurposes.In2015thesepurposesweredefinedbytheTownBoardas1)topayforexpendituresrelatedtotheimprovementofjointly-ownedsewerinterceptorlines,and2)topaytheTown’sshareoftheCityofIthaca’sbondeddebtissuedtopayforIthacaAreaWastewaterTreatmentFacility(IAWWTF)improvements.Thebalanceinthisaccountasof12/31/16totaled$1,307,910.1)Jointly-ownedSewerInterceptorLines:InterceptorsewersconveysewagefromtheTownthroughtheCityofIthacafortreatmentattheIAWWTF.TheseinterceptorsewersarejointlyownedwiththeCity,andtheTownisresponsibleforaportionofthemaintenanceandreplacementcostsoftheselines.TheTownofIthacaandtheCityofIthacamustinitiallyapproveallcapitalprojectsandrelatedexpendituresbeforeanyconstructioncantakeplace.ThereplacementoftheStateStreetInterceptoristhelastoffiveprojectsoriginallyagreedtobetweentheTownandCity.$300,000oftheSiCaccountbalancehasbeendesignatedtopayforfutureimprovementofjointly-ownedsewerinterceptorlines.2)IAWWTFBondedDebt:Asof12/31/16,outstandingbondeddebttotaled$13,289,372.TheTownshare(40.88%)ofthistotalamountsto$5,432,695.In2015,TheTownBoarddetermineditwouldbeprudentfortheTowntodesignatefundstopaypartofthisdebtintheeventoffutureeconomichardships,andthatsuchfundswouldbeinanamountequalto25%oftheTown’sshareofoutstandingIAWWTFdebtatyear-end,tobereviewedandadjustedannually.Thisamount,basedonthe12/31/16outstandingdebttotal,wouldequal$1,358,174.Asof12/31/16,theactualamountavailableintheSJCaccountwas$1,007,910.Thisis$350,264belowthecalculatedamount.ThetotaldesignatedforSiCpurposesasof12/31/16shouldbe$1,658,174.Mr.Solvigrecommendedthattheamountof$200,000betransferredtotheSJCaccountfromtheunreservedfundbalanceoftheSewerFund.TheCommitteeconcurredwiththisrecommendation.•OtherItems.-AuditoftheFY-2016FinancialStatements:Theauditorswillbeon-siteatTownHallonMarch20&21forpreliminaryfieldwork.FieldworkhastentativelybeenscheduledforthefirstweekofMay.2017JusticeCourtAssistanceProgram(JCAP)Grant:TheIthacaTownCourthasreceivedaJCAPGrantforcomputermonitorsandacamerasystemfortheTownHalllobby.Theamountofthegrantis$1,029.96.NVS-GFOAConference:Mr.SolvigwillbeattendingtheNYSGovernmentFinanceOfficersAssociationmeetingfromMarch29-31inAlbany.Themeetingwasadjournedat1:24p.m.NextMeeting:Wednesday,February15,2017at12:00pm,TownHall-AuroraRoom4
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:NoMeeting5
TOWNOFITHACASALESTAXCOLLECTIONSFortheYearEndedDecember31,2016LiabilityMonthGeneralGeneralHighwayTOTALMonthCollectedTownwidePart-TownPart-TownJanuaryApril$31,209.81$74,123.31$128,740.48$234,073.60FebruaryApril23,120.7654,911.7995,373.11173,405.66MarchMay33,933.3180,591.60139,974.88254,499.79AprilMay33,627.7079,865.80138,714.27252,207.77MayJuly29,339.2069,680.60121,024.21220,044.01JuneJuly37,265.5488,505.65153,720.35279,491.54JulyAugust34,223.7781,281.46141,173.06256,678.29AugustSeptember31,448.7874,690.86129,726.24235,865.88SeptemberOctober41,937.6799,637.37173,036.17314,611,21OctoberDecember31,742.8875,389.34130,939.39238,071.61NovemberDecember32,327.9776,806.22133,386.23242,520.42DecemberY/EAccrual40,577.0094,516.00167,380,47302,473.47TOTALCOLLECTIONS:$400,754.39$950,000.00$1,653,188.86$3,003,943.25TOTAL-2016BUDGET:$400,000.00$950,000.00$1,650,000.00$3,000,000.00%of2016BudgetCollected:100.2%[100.0%100.2%100.1%2013-2016COMPARISONOFSALESTAXCOLLECTIONSPERIOD20132014201520161__COMPARISONJanuary$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$661,979.0594.12%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$759,157.33$751,743.3299.02%First6Months$1,443,330.85$1,517,698.56$1,462,458.42$1,413,722.3796.67%July$223,126.63$228,195.87$242,962.28$256,678.29105.65%August222,005.89241,303.19245,767,26235,865.8895.97%September343,687.65321,392.55289,144.08314,611,21108.81%3rdQuarter$788,820.17$790,891.61$777,873.62$807,155.38103.76%First9Months$2,232,151.02$2,308,590.17$2,240,332.04$2,220,877.7599.13%October$221,963.28$240,640.03$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%IC6
DepartmentofAssessment128EastBuffaloStreetIreneKehoeAssistantDirectorInformationisprovidedontheSection485-goftherealpropertylawwhichallowsforanexemptionontheincreasedinvalueattributedtothelandwhenthedeveloperputsinroads/utilities.1.ActionRequest:Noactionisbeingrequestedotherthantoconsiderwhetherthisissomethingthecountywouldwanttoadopt.Typicallywheneveramunicipalityadoptsacertainexemption,alltaxingjurisdictionsarenotifiedoftheirdecision.Ifthecountywishestoadoptthislocallaw,IwouldbringitbackinAprilforconsideration.2.Background;RPTL458-gallowsfora3yearexemptionintheincreaseinassessmentduetotheinstallationofroads,sewer,electricityetc.Withutilitiesavailable,thelandvaluewillincrease.Thisexemptionallowsfora3yearexemptiononthisincreasespreadoutamongsttheremaininglotsownedbythedeveloper.Oneoftheimpedimentsfordevelopinghousingonalargescaleisthecarryingcostsofholdingtheremaininglandthatcouldnotbeabsorbedintothemarketplace.Thisexemptionallowsforamodest3yearexemptionontheincreaseinvaluetherebyreducingthecarryingcostsforthesubdivision.ThisexemptionwasadoptedbytheVillageofDrydenin2000andjustrecentlybroughttomyoffice’sattention(February29,2016).AswehavenotknownthattheVillagepassedthislocallaw,wehavenotyetadministeredit.3.FinancialImplicationWhilenoactualfinancialimplication,theremightbea3yearlagintheincreaseinvalueonlandwhereadeveloperputinutilitiesinordertodevelopapieceoflandifalllotsarenotsoldwithinthefirstyear.MailAddress:128EastBuffaloStreetIthaca,NewYork14850http://www.tompkins-co.org/assessmenvTel:607-274-5517Fax;607-274-5507assessment@tompkins-co.orgJayFranklinDirectorTo:From:Date:Subject:InclusionthroughDiversityTompkinsCountyLegislatureJayFranklinMarch1,2016RPTL465-g—InfrastructureExemption
TOWNOFITHACACOMPARISONOFCURRENTDBHIGHWAYFUNDWITHPROPOSEDDA/DBHIGHWAYFUNDSEXPENSEGENERALGOVERNMENTTRANSPORTATION-GENERALREPAIRS-PERMANENTREPAIRS-MACHINERY-BRUSH&WEEOS-SNOWRE,OVALTOTALTRANSPORTATIONEMPLOYEEBENEFITS-NYSRETIREMENT-HEALTHINSURANCE-OTHERBENEFITSTOTALBENEFITSTRANSFERSTOOTHRFNDS-GENERALFUND-RISKRETENTIONFUND-DEBTSERViCEFUNDTOTALTRANSFERS-OUT$521,320960,300641,350263,570447,540$2,834,080$118,8003,200259.425$381,425EMPLOYEEBENEFITS-NYSRETIREMENT-HEALTHINSURANCE-OTHERBENEFrrSTOTALBENEFITS$521,320960,300488,450263,570Historically,theTownhasaccountedforrevenuesandexpendituresforhighwaypurposes(repairs&improvements,machinery,snowremovalandmiscellaneous)throughaHighwayPart-TownFund,whichexclude5theVillageofCayugaHeights.Fortownswithvillages,HighwayLawSec.277requiresthatexpendituresforrepairs&improvementsbefinancedbytheareaoutsidethevillage.Expendituresformachinery,snowremovalandmiscellaneousmaybefinancedonatown-widebasis,unlessthetownboardelectstofinancetheseactivitiesbyonlytheareaoutsidethevillage.TheNVS-OSCAccountingandReportingManualstatesthat“atownwithavillagemustmaintaintwohighwayfunds,town-wideandpart-town”.CurrentDBHighwayPart-TownFund:WithProposedDAHighwayTown-wideFund:DESCRIPTIONDBFUNDDESCRIPTIONDAFUNDDBFUNDTOTALREVENUEREVENUEREALPROPERTYTMES$1,250,000REALPROPERWTAXES$250,000$1,000,000$1,250,000SALESTAXCOLLECTIONS1,955,000SALESTAXCOLLECTIONS464,0001,491,0001,955,000SNOW&CERMVt-CNTY10,000SNOW&ICERMVL-CNTY10,000-10,000INTEREST2,500INTEREST7501,7502,500SALEOFEQUIPMENT25,000SALEOFEQUIPMENT-25,00025,000OTHER-OTHER---STATEAID-CHIPS74,000STATEAID-CHIPS-74,00074,000BONDPROCEEDS200,000BONDPROCEEDS-200,000200,000TOTALREVENUE$3,516,500TOTALREVENUE$724,750$2,791,750$3,516,500$75,550$$EXPENSEGENERALGOVERNMENTTRANSPORTATION-GENERALREPAIRS-PERMANENTREPAIRS-MACHINERY-BRUSH&WEEOS-SNOWRENOVALTOTALTRANSPORTATION$75,550152,900447,540$75,550$521,320960,300641,350263,570447,540$143,500235,000171,750$550,250S600,440$2,233,640$2,834,080S32,431$111,069$143,50053,110181,890235,00038,816132,934171.750S124,357S425,893$550,250S-$118,800$118,800-3,2003,200-259,425259,425TRANSFERSTOOThRFNDS-GENERALFUND-RISKRETENTIONFUND-DEBTSERViCEFUNDTOTALTRANSFERS-OUTTOTALEXPENSE$3,841,305$$TOTALEXPENSE$724,797LS3,116,508S3,841,305381,425$381,4251
IftheTownBoardweretodecidetobeginfinancingpartofourhighwayexpendituresonatown-widebasis,theBoardwouldneedtoidentifythoseactivitiestobeincluded.TheTown’scurrentactivitiesthatcouldbefinancedonatown-widebasisinclude:•GeneralGovernmentalexpenditures,budgetedat$75,500in2017.•Transportationexpendituresotherthanrepairs&improvements:-Machinery,budgetedat$641,350.-Brush&Weeds,budgetedat$263,570.-SnowRemoval,budgetedat$447,540.•EmployeeBenefits,budgetedat$550,250in2017.aTransferstoOtherFunds,budgetedat$381,425.AfterReviewingtheseactivities,itseemsreasonablethatexpenditure5forSnowRemovalbefinancedonatown-widebasis,includingthoseMachineryandEmployeeBenefitexpensesassociatedwithsnowremovalactivities.Asshownonthescheduleonpage1,thiswouldbe$447,540forSnowRemoval,$152,900forrelatedMachineryexpenses,and$124,357forEmployeeBenefits,atotalof$724,797thatwouldbefinancedonatown-widebasis.Thisrepresents23.1%oftotalexpendituresforhighwaypurposes,notincludingcapitalprojects.TheTownBoardwillalsoneedtodecidewhichrevenue,ormixofrevenues,willbeusedtofinancethisfund.ThetwomajorrevenuesourcesforthecurrentHighwayPart-TownFundarethePropertyTaxLevyandSalesTaxCollections.Ifpropertytaxisusedtofinancethisfund,theeffectofmovingpartofthepropertytaxlevyfromthepart-towntaxbasetothelargertown-widetaxbasewillbetodecreasetaxesonpropertiesintheTown,andincreasetaxesonpropertiesintheVillage.Ashiftof$250,000fromthepart-townlevytothetown-widelevywouldhavethefollowingeffects:•TownofIthaca:ThetaxableassessedvaluationoftheTownofIthacais$1,409,739,322.Thetypicalpropertyisasingle-familyresidencewithanassessedvalueof$190,000.ForthistypicalTownproperty,propertytaxespaidin2017are$1,315inCountytaxandfees,$1,400inTowntaxandfees,and$3,450inSchoolDistricttax;atotalof$6,165.Theshiftof$250,000fromthepart-townlevytothetown-widelevywoulddecreasepropertytaxbyapprox.$13.62.•VillageofCayugaHeights:TaxableassessedvaluationoftheVillageofCayugaHeightsis$405,855,741.Thetypicalpropertyisasingle-familyresidencewithanassessedvalueof$330,000.ForthistypicalVillageproperty,propertytaxespaidin2017are$2,240inCountytaxandfees,$715inTowntax,$2,132inVillagetax,and$5,993inSchoolDistricttax;atotalof$11,080.Theshiftof$250,000fromthepart-townlevytothetown-widelevywouldincreasepropertytaxonatypicalVillagepropertybyapprox.$58.52.Thisisanincreaseof8.8%intheTowntax,anda0.5%increaseintotalannualtaxespaid.2
TOWNOFITHACA215N.TiogaStreet,Ithaca,N.Y.14850www.town.ithaca.ny.usFINANCEANDBUDGET-(607)273-1721FAX-(607)273-1704Date:February6,2017Memoto:EricLevine,Chairman,andMembersoftheBudgetCommitteeFrom:MichaelT.Solvig,FinanceOfficerSubject:PreliminaryFinancialReportfortheFiscalYearEndedDecember31,2016ThefinancialresultsforFiscalYear2016weregenerallypositive,withfundequityincreasinginallfundsexcepttheCapitalProjectFundsandtheInletValleyCemeteryFund.Forallfunds,combinedexpendituresandotherusesof$21,912,596exceededcombinedrevenuesandothersourcesof$21,448,337.Ofcontinuingconcernisthatrevenuesfromsalestaxcollectionsdeclinedfromtheprioryear’stotalforthesecondyearinarow.Collectionshavefallenby4.2%fromthehistoricalhightotalof$3,135,084receivedin2014.ResultsofFiscalYear2016OperationsbyFund:•GENERALTOWNWIDEFUND-Fundequityincreasedby$227,434,withrevenuesof$4,461,753exceedingexpendituresof$4,234,319.Endingfundbalancetotaled$3,722,879,whichincludesreservesof$726,866fortheParks,RecreationandOpenSpacePlanReserve,$169,306fortheGeneralBenefitReserve,$40,097forthePreserveMaintenanceReserve,and$10,018fortheLandStewardshipReserve.Theunreservedfundbalanceof$2,776,592represents56.7%of2017budgetedappropriations.•GENERALPART-TOWNFUND-Fundbalanceincreasedby$71,436asrevenuesof$1,421,807exceededexpendituresof$1,350,371.Totalexpensesweresignificantlyunderbudget,dueinlargeparttocontractualservicesbeingwellbelowbudget.Theendingfundbalanceof$942,030includes$59,979fortheGeneralBenefitReserve.Theunreservedfundbalanceof$582,051represents51.1%of2017budgetedappropriations.•HIGHWAYPART-TOWNFUND-Withrevenuesof$3,356,081exceedingexpendituresof$3,353,972,fundequityincreasedby$2,108.Revenueswerehigherthanexpected,helpedbyincreasedreceiptsforsaleofsurplusequipmentandstateaid(CHIPS).Endingfundbalanceof$1,527,327includes$62,516fortheHighwayEquipmentReserveand$88,480fortheGeneralBenefitReserve.Unreservedfundbalancetotals$1,676,331or46.0%of2017budgetedappropriations.•WATERFUND-Fundbalanceincreasedby$243,797asrevenuesof$4,254,104exceededexpenditurestotaling$4,010,307.Revenueswerehigherthanexpected,helpedbyincreasedreceiptsformeteredwatersalesasaresultofthedrysummer.Theendingfundbalanceof$2,575,525includes$17,863fortheGeneralBenefitReserve.Theunreservedfundbalanceof$2,629,976represents63.8%of2017budgetedappropriations.•SEWERFUND-Withrevenuesof$2,713,467exceedingexpendituresof$2,645,537,fundbalanceincreasedby$67,930.Increasedrevenueswererealizedduetohigherthanbudgetedsewerrentreceipts.Theendingfundbalanceof$2,809,320includes$14,642fortheGeneralBenefitReserveand$1,307,910forSJCprojectsaccount.Theunreservedfundbalanceof$1,486,768represents51.7%of2017budgetedappropriations.
•CAPITALPROJECTFUNDS-AsofDecember312016,theTownofIthacahadeight(8)activecapitalprojectfundswithacombinedfundbalanceof($562,312).Thisnegativefundbalancewillbeaddressedwhenthe2017PublicImprovement(Serial)Bondsareissued.Six(6)projectswerecompletedandclosedin2016.Anadditionalfour(4)projectsareexpectedtobecompletedandclosedin2017.CapitalProjectFundBeginning20162016EndingFundBalanceRevenuesExpendituresFundBalanceHanshawRoadWalkway$100,602$77-$100,679PineTreeRoadWalkway69,90453-69,957GatewayTrail73,8115,4156,70472,522SandBankRoadlmprnnts359,906274-360,180WinnersCircleReconstruction40,7621040,773-ChristopherLaneWaterTank68,3091768,326-coddingtcnRoadWaterNt111,09344111,142-SapsuckerWoodsWaterTank158,53648158,584-HennessLaneWnprovemenls35,3631835,381-MarcyCourtfrnprovements(11,027)11,027--TrumansburgWaterTank-57,500756,286(698,786)ParkLaneWaterMain--465,621(465,621)sapsuckerWoodsWaterMain--548(548)christopherCircleWalerMain--695(695)Total-CapitalProjectFundsS1.007,264S74,483$1,644,059S(562,312)•RISKRETENTIONFUND-Fundbalanceincreasedby$6,591asrevenuesof$20,126exceededexpendituresof$13,535.Endingfundbalancefor2016totaled$166,908.•FIREPROTECTIONDISTRICTFUND-Withrevenuesof$3,580,838exceedingestimatedexpendituresof$3,244,644,fundequityincreasedby$336,194tototal$1,608,784atyear-end.Theyear-endfundbalancerepresents45.6%of2017budgetedappropriations.•LIGHTDISTRICTFUNDS-Fundequityatyear-endforalllightdistrictfundstotaled$5,848.Theresultsof2016operationsforindividualdistrictsarepresentedonthetableshownbelow.LightDistrictFundBeginning20162016EndIngFundBalanceRevenuesExpendIturesFundBalanceForestHomeughtDistrict$1,536$4,000$5,367$170GlensideLightDistrict1441,301879566RenwickHeightsLightDistrict8591,1021,128833EastwoodCmmnsLightDist7882,4022,1901,000CloverLaneLightDistrict169250263156WinnerscircleLightDistrict385801754432BurleighDriveLightDistrict2711,201901571WesthavenRoadLightDistrict5483,7522,9461354CoddingtonRoadLightDistrict3622.2011.797766Total-LightDistrictFunds$5,063$17,010$16,225$5,848•INLETVALLEYCEMETERYFUND-Therewas$4inrevenueand$4,670inexpendituresforthisfundinFiscalYear2016.Fundbalanceatyear-endtotaled$4.417.•DEBTSERVICEFUND-Withinterfundtransfersandotherrevenuestotaling$1,548,664exceedingdebtserviceandotherexpendituresof$1,394,956,fundequityincreasedby$153,708tototal$429,910atyear-end.Theyear-endfundbalancerepresents30.5%of2017budgetedappropriations.2
ReserveAccounts:•PARK,RECREATIONANDOPENSPACEPLANACCOUNT-ThefundbalanceoftheGeneralTownwideFundincludesfundsdesignatedforthepurposeoffutureparkandrecreationfacilitiesdevelopmentandthepurchasingofdevelopmentrights,asoutlinedintheTown’sPark,RecreationandOpenSpacePlanadoptedin1997.ThisaccountisfundedbytheTownBoardmakinganannualredesignationofaportionoftheFundBalanceoftheGeneralTownwideFundfromunreservedtoreserved.Additionalincomeisreceivedfrominterestearnings.During2016thisaccountreceiveda$75,000re-designationoffundbalance,plus$716ininterestincome.Expenditurestotaled$160,110forpurchaseoftheMeigspropertyonWestHill.ThebalanceofthisaccountasofDecember31,2016was$726,866.•GENERALBENEFITRESERVEACCOUNT-ThefundbalanceoftheGeneralTownwideFund,GeneralPart-TownFund,HighwayPart-TownFund,WaterFund,andSewerFundincludesfundsestablishedformanagingunanticipatedincreasesinemployeefringebenefitcosts(e.g.NYSRetirement,HealthInsurance).TheaggregatebalancefortheyearendedDecember31,2016was$350,269.Thebalancebyfundisasfollows:GeneralTownwideFund$169,306GeneralPart-TownFund59,979HighwayPart-TownFund88,479WaterFund17,863SewerFund14,462Total-BenefitReserve:$350,269•PRESERVEMAINTENANCEACCOUNT-ThefundbalanceoftheGeneralTownwideFundincludesfundsdesignatedforthemaintenanceofthePineTreeWildlifePreserve,donatedtotheTownbyalocalfamilyin2013.Inconjunctionwiththedonationoftheland,theamountof$40,000wasalsodonatedtoprovideforfuturemaintenanceofthepreserve.AsofDecember31,2016,thebalanceofthisaccounttotaled$40,097.•LANDSTEWARDSHIPACCOUNT-In2014theTownpurchasedthedevelopmentrightstotheIndianCreekFarmwithfinancialassistancethroughaStateofNewYorkgrant.Thisgrantincluded$10,000tobeheldbytheTown,designatedforthefuturestewardshipoftheIndianCreekFarmlands.FortheyearendedDecember31,2016,thebalanceofthisaccounttotaled$10,018.•HIGHWAYEQUIPMENTACCOUNT-ThefundbalanceoftheHighwayPart-TownFundincludesfundsdesignatedforthepurchase/replacementofhighwayequipmentandmachinery.Thisaccountisfundedbysaleofsurplusmachineryandequipment,withadditionalincomefrominterestearnings.During2016thisaccountreceived$51,351fromthesaleofsurplusequipment,plus$86ininterestincome.Expendituresfromthisaccounttotaled$238,908forpurchaseofanewGradallExcavator.ThebalanceatDecember31,2016was$62,516.TheTownBoardsetthemaximumamountofthisaccountat$250,000in2016.•SJCACCOUNTINSEWERFUND-TheFundBalanceoftheSewerFundincludesfundsdesignatedforSJCpurposes.In2015thesepurposesweredefinedbytheTownBoardas1)topayforexpendituresrelatedtotheimprovementofjointly-ownedsewerinterceptorlines,and2)topaytheTown’sshareoftheCityofIthaca’sbondeddebtissuedtopayforIthacaAreaWastewaterTreatmentFacility(IAWWTF)improvements.ThebalanceinthisaccountasofDecember31,2016totaled$1,307,910.1)Jointly-ownedSewerInterceptorLines:$300,000oftheSJCaccountbalancehasbeendesignatedtopayforfutureimprovementofjointly-ownedsewerinterceptorlines.2)IAWWTFBondedDebt:$1,007,910oftheSJCaccountbalancehasbeendesignatedtopayfortheTown’sshareoftheCityofIthaca’sIAWWTFbondeddebt.3
SalesTaxandMortgageTax:•SALESTAX-Collectionsin2016totaled$3,003,943,adecreaseof$63,393or2.1%fromthepreviousyear’stotalof$3,067,336.Thisisthesecondyearnowwheresalestaxcollectionshavedecreasedfromtheprioryear.Fromthehistoricalhightotalof$3,135,084receivedin2014,collectionshavefallenby4.2%.SalestaxrevenuesaresplitbetweentheGeneralTownwideFund,GeneralPart-TownFundandHighwayPart-TownFund.TaxCollectionsActualActualActualActualActualActual201120122013201420152016SalesTaxCollections:-GeneralFund$458,409$438,630$584,498$550,000$522627$400,754-GeneralP-TFund836,061957,433935,000945,000950,000950,000-t-ghwayP-TFund1,514,9601,481,1501,471,3651,640,0841,594,7091,653,189Total-SalesTax$2,809,431S2,907,213$2,990,863S3,135,084$3,067,336$3,003,943MortgageTax5248,039S279,560S313,999S329,274$415,760$286,227•MORTGAGETAX-Collectionsfor2016totaled$286,277,adecreaseof$129,533or31.2%,fromthetotalof$415,760collectedin2015.NotethatSi69,770ofthe2015totalwasaone-timereceiptfromtheexpansionofKendallatIthaca.Withoutthisone-timereceipt,collectionsfor2015wouldhavetotaledonly$245,990.GeneralObligationLong-TermDebt:•OUTSTANDINGDEBT-During2016,theTownretired$1,058,000inoutstandingdebt.AsofDecember31,2016,thetotaloutstandinggeneralobligationlong-termdebtoftheTownofIthacatotaled$11,858,000,asshownonthefollowingtable:AmountofAmountYearofDescriptionofDebtDebtIssuedOutstandingMaturityPublicImprovement(Serial)Bonds-2003S1,000,000$72,0002017Publicfrrprovement(Serial)Bonds-2004-A1,000,000201,0002019PublicImprovement(Serial)Bonds-20091,125,000660,0002024PublicImprovement(Serial)Bonds-20112,650,0001,970,0002031PublicImprovement(Serial)Bonds-20133,450,0002,740,0002028PublicImprovementRefundingBonds-2014-A910,000790,0002024PublicImprovement(Serial)Bonds-2014-B3,000,0002,645,0002029PublicImprovement(Serial)Bonds-20152,950,0002,780,0002030TotalGeneralObligationLong-TermDebt$16,085,000$11,858,000Ofthistotal,$816,000isforfacilityimprovements,$2,750,000isforroadimprovements,and$8,292,000isforwaterinfrastructureimprovements.•BONDHATING-OnSeptember30,2015,Moody’sInvestorsServiceassignedanAalratingtothe2015BondIssue,andaffirniedtheAalratingtotheTown’s$15.9millionofoutstandingparitydebt.TheAalratingreflectstheTown’s“moderately-sizedtaxbasewithabove-averageincomelevelsandsignificantinstitutionalpresence,strongfinancialmanagementandsoundbudgetingpractices,amplereservelevels,andamodestdebtprofile.”Moody’sfullreportisavailableuponrequest.•CONSTITUTIONALDEBTLIMIT-TheTownofIthacamaintainsaverylowdirectdebtburden.Atyear-endtheTownhadexhaustedonly3.82%ofitsdebt-contractingpower.Pleaseseepage7forthedetailedcalculationoftheConstitutionalDebtLimit.4
TOWN OF ITHACA
SCHEDULE OF REVENUES AND EXPENDITURES -BUDGET TO ACTUAL
FOR THE FISCAL YEAR ENDED DECEMBER 31 2D16
REVENUES:
GENERAL TOWNWIDE FUND GENERAL PART-TOWN FUND HIGHWAY PART-TOWN FUND
BUDGET ACTUAL BUDGET ACTUAL BUDGET ACTUAL BUDGET ACTUAL BUDGET ACTUAL BUDGET ACTUAL
950,000
70.000
192,100
500
950,000
68,565
193,330
778
WATER FUND -SEWER FUND -CAPITAL PROJECTS FUNDS
2,599,982 -1,500,000 1,499,985 8,500 8,500 9,700 9,700
62,941 --820,066 803,496 196,348 192,205
400,754 1,650,000 1,653,189 ----
17,495 --3,295,000 3,434,145 2,413,500 2,500,367
113,493 10,000 20,806 -464 --
5,759 2,500 2,596 2,000 2,309 2,000 2,955
29,715 ------
10,939 ---------
273,619 ---------
6,563 --25,000 61,539 -3,990 -240 -
72,466 ---2,534 -1,200 -8,000 -
298,227 141,500 209.134 74,000 115,432 -----
3,891,953 1,354,100 1,421,801 3,261,500 3,356,081 4,125,566 4,254,104 2,621,548 2,713,467 -
57,500
594
REAL PROPERTY TAXES 2,600,000
REAL PROPERTY TAX ITEMS 48,000
SALES TAX 400,000
FRANCHISE TAX -
DEPARTMENTAL INCOME 16,700
INTERGOVERNMENTAL CHRG 58,500
INTEREST INCOME 6,000
RENTAL INCOME 27,350
LICENSES AND PERMITS 12,500
FINES AND FORFEITURES 280,000
PROPERTY SALEIRECOVERY -
LOCAL SOURCES 15,000
STATE SOURCES 383.250
FEDERAL SOURCES -
TOTAL REVENUES 3,847.300
INTERFUND TRANSFERS 569,800 569,800 ---------
PROCEEDS OF OBLIGATIONS ----------3,050,000 -
TOTAL OTHER SOURCES 559,800 569,800 --------3,050,000 11,026
REVENUESOThER SOURCES 4,417,100 4,461,753 1,354,100 1,421,807 3.261.500 3,356,061 4,125,566 4,254,104 2,621,548 2,713,467 3,050,000 74,483
EXPENDITURES:
GENERALGOVERNMENT 1,609.306 1,478,914 144,225 148,729 71,800 65,422 53,825 62,008 39,825 38,356 --
PUBLIC SAFETY 80,834 80,868 ----------
HEALTH&WELLNESS ------------
TRANSPORTATION 413,090 395,434 --2,489,665 2,459,766 ------
CULTURE &RECREATION 1,028,790 1,011,717 ---------6,704
HOME &COMMUNITYSRVC 310,070 322,105 995,900 780,455 --2,765,100 2,816,619 2.844,370 2,377,303 -1,301,146
EMPLOYEE BENEFITS 936,700 613,826 341,700 337,887 562,650 440,180 102,470 99,093 77,080 53,676 --
DEBT SERVICE ------------
TOTAL EXPENDITURES 4,378.790 4,102,865 1,481,825 1,267,071 3,124,115 2,965,368 2,921,395 2,977,720 2,961,275 2,469,337 -1,307,850
INTERFUNOTRANSFERS 131.554 131,454 83,400 83.300 388,704 388,604 1,032,687 1,032,587 176,300 176,200 -336,209
TOTAL OTHER USES 131,554 131,454 83.400 83,300 388,704 388,604 1,032,687 1,032,587 176,300 176,200 -336,209
EXPENDITURES &OThER USES 4,510.344 4,234,319 1.565,225 1.350,371 3,512,619 3,353,972 3,954,082 4,010.307 3,137,575 2,645,537 -1,644,059
EXCESS (DEFICIT)OF REVENUES
OVER EXPENDITURES:(93,244)227,434 (211,125)71,436 (251.319)2,108 171,484 243,797 (516,027)67,930 3,050,000 (1,569,576)
BEGINNING FUND BALANCE 3,495,445 3,495,445 870,594 870,594 1.825,219 1,825,219 2,404,041 2,404,041 2,741,390 2,741,390 1,007,264 1,007,264
ENDING FUND BALANCE 3,402,201 3,722,879 659,469 942,030 1,573,900 1,827,327 2,575,525 2,647,838 2,225,363 2,809,320 4,057,264 (562,312)
RESERVED FUND BALANCE 946,287 59,979 150,996 17,853 1,322,552
UNRESERVED FUND BALANCE 2,776,592 882,051 1,676,331 2,629,976 1,486,768
5,363
63,457
11,026
(562,312)
%0F2017 APPROPRIATIONS:56.70%51.10%46.04%63.81%51.72%MA
5
TOWN OF ITHACA
SCHEDULE OF REVENUES AND EXPENDITURES -BUDGET TO ACTUAL
FOR THE FISCAL YEAR ENDED DECEMBER 31,2016
REVENUES:
REAL PROPERTY TAXES
REAL PROPERTY TAX FEMS
SALES TAX
FRANCHISE TAX
DEPARTMENTAL INCOME
INTERGOVERNMENTAL CHRG
INTEREST INCOME
RENTAL INCOME
LICENSES AND PERMITS
FINES AND FORFEITURES
PROPERTY SALE/RECOVERY
LOCAL SOURCES
STATE SOURCES
FEDERAL SOURCES
TOTAL REVENUES
INTERFUND TRANSFERS
PROCEEDS OF OBLIGATIONS
TOTAL OTHER SOURCES
REVENUE &OThER SOURCES
EXPENDITURES:
GENERAL GOVERNMENT
PUBLIC SAFETY
HEALTH &WELWESS
TRANSPORTATION
CULTURE &RECREATION
HOME &COMMUNITY SRVC
EMPLOYEE BENEFIfS
DEBT SERVICE
TOTAL EXPENDITURES
INTERFUND TRANSFERS
TOTAL OTHER USES
EXPENDITURES &OThER USES
EXCESS (DEFICIT)OF REVENUES
OVER EXPENDITURES:
BEGINNING FUND BALANCE
ENDING FUND BALANCE
RESERVED FUND BALANCE
-7,685,200
-1,064,414
-3,000,000
-70,000
-5,917,300
-68,500
17,500
-27,350
-12,500
-280,000
-25000
-15000
-618.750
7,685,134
1,058,643
3,003,943
68,565
6,145,337
192,264
20,322
29,715
10,939
273,619
72,332
84,200
654,971
RISK RETENTION FUND FIRE PROTECTION FUND LI6HT DISTRICT FUNDS INLET VALLEY CEMETERY DEBT SERVICE FUND TOTAL -ALL FUNDS
BUDGET ACTUAL BUDGET ACTUAL BUDGET ACTUAL BUDGET ACTUAL BUDGET ACTUAL BUDGET ACTUAL
-3,550,000 3,549,967 17,000 17,000 ---
126 4,000 4,055 -10 -4 500 1,135
20,000 26,815
-126 3,574,000 3,580,838 17,000 17,010 -4 500 1,135 18,801,514 19,299,983
20.500 20,000 ------1,222,344 1,547,529 1,812.644 2,148,354
---------
-3,050,000 -
20,500 20,000 ------1,222,344 1,547,529 4,862,644 2,148,354
20,500 20,126 3,574,000 3,580,838 17,000 17,010 -4 1,222,844 1,548,664 23,664.158 21,448,337
-
-5,000 3,180 ----5,500 3,123 1,929,481 1,799,734
--3,405,000 3,241,464 ------3,485,834 3,322,333
16,000 13,535 --------16,000 13,535
----16,150 16,225 ----2,918,905 2,871,426
--------1,028,790 1,018,421
------1.500 4,670 --6,916,940 7,602,298
---------
-2,020,600 1,744,662
-------
-1,412,344 1,391,833 1,412.344 1,391,333
16,000 13,535 3,410,000 3,244,644 16,150 16,225 1,500 4,670 1,417,844 1,394,956 19,728,894 19,764,241
---------1,812.645 2,148,354
---------
-1,812,645 2,148,354
16,000 13,535 3,410,000 3,244,644 16,150 16,225 1,500 4,670 1,417,844 1,394,956 21,541,539 21,912,596
5,063
5,913
5,053
5,848
4,500 6,591 164,000 336,194 850 785 (1,500)(4,666)(195,000)153,708 2,122,619 (464,259)
160,317 160,317 1,272,591 1,272,591 9,083 276,202 276,202 14,067,208 14,067,208
164,817 166,908 1,436,591 1,608,784 4,417 81.202 429,910 16,189,827 13,602.949
-
-2,497,6fl
9,083
7,583
UNRESERVED FUND BALANCE 166,908 1,608,784 5,848 4,417 429,910 11,105,272
%OF 2017 APPROPRIATIONS:>100%45.57%32.76%>100%30.52°!.
6
TOWNOFITHACACONSTITUTIONALDEBTLIMITYearEndedDecember31,2016DEBTLIMITAssessedFullValuationofTaxableRealProperty;-FortheFiscalYearended12/31/2012-FortheFiscalYearended12/31/2013-FortheFiscalYearended12/31/2014-FortheFiscalYearended12131/2015-FortheFiscalYearended12/31/2016Five-YearAverageFullValuationofTaxableRealProperty;PermittedPercentageoftheAverageFullValuation”TownofIthacaConstitutionalDebtLimit:$1,281,218,0661294,998,3801,323,741,6701,366,007,6771409,739,322S1,335,141,0237%S93,459,872$93,459,872representsthemaximumamountofindebtednessthattheTownofIthacacanissueandhaveoutstandingpursuanttoArticleVIIIoftheNewYorkStateConstitution,andTitle9ofArticle2oftheLocalFinanceLaw.TOTALNETINDEBTEDNESSOFTHETOWNPrincipalBorrowingsOutstandingasof12/31/2016:-$1,000,000PublicImprovement(Serial)Bonds,2003-$1,000,000PublicImprovement(Serial)Bonds,2004-$1,125,000PublicImprovement(Serial)Bonds,2009-$2,650,000PublicImprovement(Serial)Bonds,2011-$3,450,000PublicImprovement(Serial)Bonds,2013-$910,000PublicImprovementRefundingBonds,2014-$3,000,000PublicImprovement(Serial)Bonds,2014-$2,950,000PublicImprovement(Serial)Bonds,2015TotalDebtOutstandingasof12/31/2016:Less:ExclusionforWater&SewerIndebtedness:TotalNetIndebtednessSubjecttoDebtLimit:$72,000201,000660,0001,970,0002,740,000790,0002,645,0002.780,000S11,858,000(8,292,000)S3,566,000NETDEBT-CONTRACTINGMARGINConstitutionalDebtLimit:$93,459,872Less:TotalNetIndebtedness(3,566,000)NetDebt-ContractingMargin:$89,893,872PercentageofDebt-ContractingPowerExhausted:3.82%7
TOWNOFITHACAPUBLICIMPROVEMENT(SERIAL)BONDS—SERIES2017IssueAmount:$2,200,000(Estimated)BondRating:Mi-Moody’sInvestorsServiceThe$2,200,000PublicImprovement(Serial)Bonds,Series2017,isnewgeneral-obligationdebtissuedtofinancetheTown’s2016and2017waterinfrastructurecapitalprojects.Theseprojectsincludethefollowing:TrumansburgWaterTankReplacement$710,000ParkLaneWaterMainImprovements500,000SapsuckerWoodsWaterMainImprovements570,000ChristopherCircleWaterMainImprovements420.000Total-2016/2017CapitalProjects$2,200,000OPTION1:TimetoMaturity:15years,withfinalpaymentmadein2032.InterestRate:Estimatedatanaverageof2.65%overthe15yearlifeofthebonds.Theaverageannualdebtservicepaymentisapprox.$180,200.Totalinterestpaidoverthelifeofthebondsisestimatedat$502,000.OPTIoN2:TimetoMaturity:10years,withfinalpaymentmadein2027.InterestRate:Estimatedatanaverageof2.15%overthe10yearlifeofthebonds.Theaverageannualdebtservicepaymentisapprox.$247,250.Totalinterestpaidoverthelifeofthebondsisestimatedat$271,000.BondIssuanceCosts:Estimatedat$33,500,thecosttoissuethebondsrepresents1.5%oftheissueamount,asdetailedonthescheduleshownbelow:EstimatedBondIssuanceCostsMountBondAttorney-Orrick,Herrington&Sutclifte$11,500.00BondAcWsors-FiscalAdvisors&Marketing,Inc.8,500.00BondRating-FvtodysInvestorsServices11500.00Printing&Mailing-PremierPrintingServices2,000.00TotalEstimatedBondIssuanceCosts:$33,500.00DistributionofBondIssuanceCosts:Thebondissuancecostswillbepro-ratedanddistributedtotheindividualcapitalprojectfunds.Theestimatedcosttoeachprojectisshownbelow:..MountMountIssuance2016/2017CapitalProjectsAuthorizedBondedCostsTrumansburgRoadWaterTank$900,000$710,000$10,811ParkLaneWaterMains5000005000007,614SapsuckerWoodsWaterMains579,000570,0008,680ChristopherCircleWaterMains422,000420,0006,395Total-2016/2017CapitalProjects$2,401,000$2,200,000$33,5001