HomeMy WebLinkAboutMeeting Notes 6-27-18
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BUDGET COMMITTEE
Meeting Minutes - June 27, 2018
Committee present: Eric Levine - Chairman, Pat Leary Committee absent: Pam Bleiwas
Staff present: Mike Solvig, Judy Drake, Jim Weber, Bruce Bates, Lisa Carrier-Titti
Others present: Bill Goodman
Meeting was called to order at: 12:08 p.m.
AGENDA ITEMS:
• Review and approve meeting notes from May 23, 2018.
Moved: Eric Levine Second: Pat Leary Motion Passed
• Initial Review of Five-Year Capital Improvement Plan / 2019 Capital Budget.
The Committee reviewed an updated CIP schedule received from Public Works. Capital projects
scheduled for 2019 include the following:
- WATER TANKS - No projects are scheduled for 2019.
- WATER MAINS - Total cost for Water Main Improvements for 2019 is estimated at $2,200,000
and includes the following projects:
- Muriel Street Water Main Improvements $ 625,000
- Winthrop Drive Water Main Improvements 700,000
- Salem Dr / Winston Dr / Winston Ct Water Mains 875,000
It is anticipated this work will be financed by issuing new long-term debt. All projects are
under the threshold where approval of the NYS Comptroller’s Office would be required.
- SEWER AND MANHOLE REHABILITATION - The amount of $300,000 will be budgeted in 2019, which
will be financed from current year revenues/fund balance.
- ROAD IMPROVEMENTS - Total cost for scheduled 2019 Road Improvement Program is estimated
at $800,000 and includes the following projects:
- Lower Bundy Road Improvements $ 500,000
- Poole Road Improvements 300,000
This work will be financed with current year property tax revenue.
- PARKS & TRAILS – Improvements to Town Parks & Trails for 2019 is budgeted at $240,000 and
includes the following projects:
- South Hill Trail Culvert Repairs $ 50,000
- Honness Trail Overlay 100,000
- East King Road Park & Trail Construction 90,000
These projects will be financed with current year revenue. The cost of the East King Road Park
& Trail Construction will be partially offset by a $60,000 donation from a local resident.
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- TOWN FACILITIES - The Expansion of the Office Area at the Public Works Facility will add approx.
1,000 SF of office space to accommodate additional personnel added the past couple years.
This work is budgeted at $600,000, which will be financed by issuing new long-term debt.
Total estimated costs for the CIP for Fiscal Years 2019 - 2023 are presented on the schedule shown
below:
INFRASTRUCTURE 2019 2020 2021 2022 2023 TOTAL
WATER INFRASTRUCTURE 2,200,000$ 2,200,000$ 1,650,000$ 2,150,000$ 1,550,000$ 9,750,000$
SEWER INFRASTRUCTURE 650,000 650,000 650,000 650,000 650,000 3,250,000
STORMWATER DRAINAGE 250,000 250,000 250,000 250,000 250,000 1,250,000
ROAD IMPROVEMENTS 800,000 1,050,000 750,000 1,750,000 950,000 5,300,000
TOWN FACILITIES 600,000 500,000 100,000 400,000 - 1,600,000
PARKS & TRAILS 240,000 150,000 200,000 100,000 100,000 790,000
TOTAL ANNUAL COST 4,740,000$ 4,800,000$ 3,600,000$ 5,300,000$ 3,500,000$ 21,940,000$
FUNDING SOURCE:
- Current Year Revenue 1,880,000$ 2,100,000$ 1,950,000$ 2,750,000$ 1,950,000$ 10,630,000$
- Grants & Donations 60,000 - - - - 60,000
- New Long-Term Debt 2,800,000 2,700,000 1,650,000 2,550,000 1,550,000 11,250,000
TOTAL FUNDING 4,740,000$ 4,800,000$ 3,600,000$ 5,300,000$ 3,500,000$ 21,940,000$
Of the $21,940,000 total estimated project costs, $10,630,000 would be financed with current
year revenues, $60,000 with grants and donations, and the remaining $11,250,000 by the issuance
of new long-term debt.
The schedule shown below identifies the capital equipment scheduled for purchase/replacement
in Fiscal Year 2019 at a total estimated cost of $741,000. This is a slight reduction from the
$754,000 budgeted in 2018. Funding of capital equipment replacements will come from current
year revenues/fund balance.
FLEET MODEL USEFULL ORIGINAL REPLACEMENT
NO .YEAR LIFE COST COST
2019 REPLACEMENTS:
Jeep Liberty 4x4 (Codes)26 2006 7 14,711$ 33,000$
International Medium-Duty Dump Truck 8 2006 15 59,445 100,000
Ford F750 Dump Truck w/plow 20 2010 10 87,222 100,000
Ford F250 Super-Cab Pickup w/plow 68 2012 6 37,338 50,000
Ford F250 Super-Cab Pickup w/plow 69 2013 6 36,640 50,000
Bobcat "Toolcat" Utility Tractor 43 2015 3 69,470 80,000
Ventrac Utility Tractor 51 2014 3 48,117 55,000
Grasshopper Mower w/mowing deck 52 2015 3 15,089 18,000
Quality Steel Tilt-Bed Trailer T - 3 2017 3 5,317 7,000
Sure-Trac Trailer - 15-Ton T-11 2009 10 9,506 15,000
2019 NEW EQUIPMENT:
Maintenance Vehicle - Pickup Truck 38,000$
F450 Crew-Cab Dump Truck 75,000
Mini-Excavator w/Attachments 120,000
Total - 2019 Vehicle & Equipment Expenditures 741,000$
CAPITAL EQUIPMENT
• Review and Discuss Town Department Staffing Plans for 2019 - 2022.
The Committee reviewed the 2019 - 2022 staffing plans for Town departments. This item was
reviewed and discussed by the Personnel & Organization Committee at their June 20 meeting.
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Judy Drake reviewed the current staff levels of the Town Hall Departments and presented the
preliminary staffing plan which decreases staff from the current level of 32.25 FTE’s in FY-2018 to
30.25 FTE’s in FY-2022 and includes the following:
• FY-2019: In 2019 there are anticipated retirements in the Director of Code Enforcement and
Code Enforcement Officer positions. The Director position may be filled internally through
promotion (planned succession) of the Senior Code Enforcement Officer. The temporary
Electrical/Code Enforcement Officer position then being made permanent. The
recommendation is to keep the CEO and E/CEO positions at a combined total of four.
Increase budget to add paid IT Intern for Spring: February - April (12 weeks) and Fall:
September - December (13 weeks) at an additional annual cost of $15,000. Planned
retirement of the First Deputy Town Clerk; recommend the Deputy Town Clerk position be
extended through 2019 to provide coverage.
• FY-2020: Expected promotion (planned succession) of the Senior Code Enforcement Officer
to Director of Code Enforcement in late-2019/early-2020 will leave this position vacant.
Eliminate the Senior Code Enforcement Officer position for an annual estimated savings of
$70,000. Planned retirement of Network/Records Specialist; provide crossover for new
position for three months at an estimated cost of $17,000. Eliminate the First Deputy Town
Clerk position for an annual estimated savings of $54,000.
• FY-2021: Planned retirement of Finance Officer; provide crossover for new position for one
month at an estimated cost of $7,500.
• FY-2022: No changes requested.
Judy Drake and Jim Weber reviewed the current staff levels of the Public Works Department, and
presented the preliminary plan increasing staff from the current level of 34.75 FTE’s in FY-2018 to
41.0 FTE’s in FY-2022. The preliminary staffing plan for the Public Works Department includes the
following:
• FY-2019: Increase current Administrative Assistant I (Information Aide) position from part-
time, 30 hours per week to full-time, 40 hours per week, at an estimated additional annual
cost of $11,000.
• FY-2020: Fill vacant Sr. Engineering Technician position; annual cost of $63,900 + benefits.
• FY-2021: Add and fill one (1) additional Heavy Equipment Operator and one (1) additional
Laborer at an additional annual cost of $104,200 + benefits. This would create a specialized
crew responsible for sidewalk/trails/parking lot snow removal in the winter, and for trail
maintenance and road signage/striping/crack-filling during the other seasons. Eliminate two
(2) Seasonal Laborer positions for an annual saving of $32,000. Total additional annual cost:
$72,200 + benefits.
• FY-2022: Add and fill one (1) additional Motor Equipment Operator and two (2) additional
Laborers at an additional annual cost of $147,300 + benefits. This would create a smaller
crew that could complete jobs not requiring the full 5-member crew and/or any heavy
equipment, such as sidewalk/trails snow removal in the winter, and parks/trails maintenance
during the other seasons. Eliminate two (2) Seasonal Laborer positions for an annual saving
of $32,500. Total additional annual cost: $114,800 + benefits.
The estimated cost for implementing this plan (not including employee benefits) is shown below:
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2019 2020 2021 2022
Town Hall Departments:32.50 FTE's 30.50 FTE's 30.35 FTE's 30.25 FTE's
First Deputy Town Clerk -$ (54,000)$ -$ -$
Senior Code Enfrcmnt Officer - (70,000) - -
Information Technology Intern 15,000 - - -
Total Annual Wages 15,000$ (124,000)$ -$ -$
Training Overlap - 17,000 7,500 -
Total - Town Hall Departments:30,000$ (231,000)$ 7,500$ -$
Public Works Department:35.00 FTE's 36.00 FTE's 38.00 FTE's 41.00 FTE's
Working Supervisor -$ -$ -$ -$
Heavy Equipment Operator - - 59,300 -
Motor Equipment Operator - - - 55,300
Laborer - - 44,900 92,000
Seasonal Laborers - - (32,000) (32,500)
Sr. Engineering Technician - 63,900 - -
Admin. Asst. I (Information Aide)11,000 - - -
Total Annual Wages 11,000$ 63,900$ 72,200$ 114,800$
Total - Public Works Department:11,000$ 63,900$ 72,200$ 114,800$
Annual Total - All Departments:41,000$ (167,100)$ 79,700$ 114,800$
TOWN OF ITHACA
CHANGES IN ANNUAL WAGES FOR 2019 - 2022 STAFFING PLAN
Does not include Employee Benefits
POSITION
Ms. Drake stated that this plan will be reviewed each year and staffing will be discussed during the
budget process.
• Discuss Charitable Gifts Reserve Fund and Property Tax Implications.
The 2018-2019 NYS budget authorizes local governments (and school districts) to establish
Charitable Gifts Reserve Funds and offer real property tax credits to incentivize contributions to
these funds. This program is voluntary for local governments (and school districts). If it were
decided by the Town Board to offer this program, implementation is done in two steps:
1. Establishment of a Charitable Gifts Reserve Fund by adoption of a local law.
2. Authorize real property tax credits to incentivize contributions to this fund by adoption of
another local law. Tax credits may be valued at a maximum of 95% of the value of the
charitable contribution, although a lesser amount may be set.
Taxpayers would make a voluntary and unrestricted monetary charitable contribution to a local
government(s) and receive a signed acknowledgement of the contribution. The taxpayer would
then present this acknowledgement to the collector of taxes to be used as payment on real
property tax bills.
Mr. Solvig stated that there is not much guidance yet from NYS in general and the Comptroller’s
Office in particular on how to account for these transactions. For at least this first year, this
process will not be automated, and the amount of work falling on Town staff to make this work
appears to be substantial.
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The IRS has not yet issued a ruling on whether contributions to local charitable gift funds will be
deductible for federal tax purposes. Many believe that, at best, only the portion not used for real
property tax credit will be deductible. Most local governments at this point seem to waiting for
the IRS ruling before moving forward.
If implemented, some of the difficulties we would have to deal with include:
• Fire Protection Districts, Light Districts and other special districts are not included in this
program. For the typical property in the Town of Ithaca, approx. 37% of the 2019 tax bill is
for the fire protection tax. As every property pays the fire protection tax, any taxpayer who
wants to pay the Town portion of the tax bill through the charitable contribution process will
still need to pay the fire and other special district amounts with a check or cash. We have no
information at this time on how Town water & sewer benefit assessment fees and County
solid waste collection fees, which also appear on property tax bills, would be handled.
• County and Town property taxes are combined on the tax bills. This could result in a
taxpayer paying his tax bill with 1) a charitable contribution acknowledgement from the
County, 2) a charitable contribution acknowledgement from the Town, and 3) a check or cash
for that portion of the tax bill not covered by a charitable contribution.
• Current property tax collection software does not support this program. This will require the
Town to keep all records of taxpayer contributions and payments in an Excel-type database.
(Subsequent to the meeting Mr. Solvig spoke with Williamson Software regarding
• There is no guidance yet on how to handle property taxes paid through escrow.
Mr. Goodman stated that this topic will be scheduled for further discussion with the Town Board
at the July 23 Study Session.
• Discuss 2019 Ithaca Town Budget process.
Mr. Solvig informed the Committee that budget worksheets will be distributed to department
heads in early July, to be returned by July 31. A first draft of the Preliminary 2019 Ithaca Town
Budget will be reviewed by the Budget Committee at the August 15 meeting. The first Town
Board Budget Meeting is scheduled for Thursday, October 4.
The Committee will review the Five-Year Capital Improvement Plan / 2019 Capital Budget with the
Town Board at the July 23 Study Session.
• Other Items.
- 2018 Billing to Post Office for 2011 Roof Repair Project: Mr. Solvig reported that the annual
billing was sent to the USPS on June 10 for the amount of $2,343.93.
The meeting was adjourned at 1:08 p.m.
Next Meeting: Wednesday, July 18, 2018 at 12:00 pm, Town Hall - Aurora Room