HomeMy WebLinkAboutMeeting Notes 7-18-18
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BUDGET COMMITTEE
Meeting Minutes - July 18, 2018
Committee present: Eric Levine - Chairman, Pat Leary, Pam Bleiwas
Staff present: Mike Solvig, Judy Drake, Jim Weber
Others present: Bill Goodman
Meeting was called to order at: 12:01 p.m.
AGENDA ITEMS:
• Review and approve meeting minutes from June 27, 2018.
Moved: Pat Leary Second: Pam Bleiwas Motion Passed
• Initial Discussion on Property Tax Levy and Tax Rate Calculations for FY-2019.
The Committee reviewed the spreadsheet for the preliminary 2019 Property Tax Levy and Tax
Rates. The total property tax levy for 2019 is proposed at $8,402,650, a $164,650 or 2.00%
increase over the prior year. This proposed tax levy would provide $2,815,000 to the General
Townwide Fund, $820,000 to the (new) Highway Townwide Fund, $1,430,000 to the Highway
Part-Town Fund, of which $800,000 would be to finance the 2019 Road Improvements Program,
and $3,300,000 in the Fire Protection Fund. Increases to the individual fund levies range from
1.5% to 2.5%.
The Tompkins County Assessor’s Office has provided the Town with the 2018 assessed valuations,
showing better than anticipated increases in the taxable valuations over the prior year. The
Townwide A.V. increased by 5.4% to $1,550,062,565, the Part-Town A.V. increased by 4.2% to
$1,105,745,520, and the Fire Protection District A.V. increased by 4.6% to $1,187,428,119.
Town staff is also proposing to increase the Water Benefit Assessment Fee by $25.00 per assessed
unit, from $125.00 in 2018 to $150.00 in 2019. Also proposed is increasing the Sewer Benefit
Assessment Fee by $20.00 per assessed unit, from $25.00 in 2018 to $45.00 in 2019. The
Committee will discuss these proposed increases later today.
In 2018, the property tax bill for a typical property* in the Town was $1,403.08. Based on the
proposed property tax levy, updated assessed valuations, and proposed increases to the water
and sewer benefit assessment fees the property tax bill for a typical property in the Town would
increase to an estimated $1,414.31 in 2019. This $11.23 increase in the 2019 property tax bill for
a typical property is a 0.8% increase over 2018.
After discussion, the consensus of the Committee members was that this was a reasonable
increase under current economic conditions. Chairman Levine asked what the property tax bill
would be if the water and sewer benefit assessment fees did not increase in 2019. Mr. Solvig
answered the property tax bill for a typical property would decrease to an estimated $1,369.31.
This would have been a decrease of $33.77 or 2.4% from the 2018 property tax bill.
* A Typical Property in the Town of Ithaca is a single-family residence with an assessed value of $190,000.
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PROPERTY TAX LEVY & TAX RATE PROJECTION - 2019 - 2023
ACTUAL ACTUAL BUDGET PROJECTED PROJECTED PROJECTED PROJECTED
2017 2018 2019 2020 2021 2022 2023
PROPERTY TAX LEVY:
GENERAL TOWNWIDE FUND 3,052,000$ 2,750,000$ 2,815,000$ 2,870,000$ 2,925,000$ 2,985,000$ 3,050,000$
HIGHWAY TOWNWIDE FUND - 800,000 820,000 840,000 860,000 880,000 900,000
HIGHWAY PART-TOWN FUND 1,250,000 1,400,000 1,430,000 1,460,000 1,490,000 1,520,000 1,555,000
WATER FUND 8,600 9,000 8,750 9,000 9,000 9,000 9,000
SEWER FUND 9,600 10,000 9,900 10,000 10,000 10,000 10,000
FIRE PROTECTION FUND 3,500,000 3,250,000 3,300,000 3,365,000 3,440,000 3,515,000 3,585,000
LIGHT DISTRICTS FUND 19,000 19,000 19,000 19,000 19,000 19,000 19,000
TOTAL PROPERTY TAX LEVY 7,839,200$ 8,238,000$ 8,402,650$ 8,573,000$ 8,753,000$ 8,938,000$ 9,128,000$
INCREASE FROM PRIOR YEAR 154,000$ 398,800$ 164,650$ 170,350$ 180,000$ 185,000$ 190,000$
% INCREASE FROM PRIOR YEAR 2.00%5.09%2.00%2.03%2.10%2.11%2.13%
ASSESSED VALUATIONS:
GENERAL TOWNWIDE FUND 1,409,739,322 1,470,783,820 1,550,062,565 1,597,500,000 1,637,437,500 1,682,467,031 1,732,941,042
HIGHWAY TOWNWIDE FUND - 1,470,783,820 1,550,062,565 1,597,500,000 1,637,437,500 1,682,467,031 1,732,941,042
HIGHWAY PART-TOWN FUND 1,003,883,581 1,061,231,644 1,105,745,520 1,145,800,000 1,174,445,000 1,206,742,238 1,242,944,505
FIRE PROTECTION FUND 1,077,313,706 1,135,473,489 1,187,428,119 1,227,900,000 1,258,597,500 1,293,208,931 1,332,005,199
PROPERTY TAX RATES:
GENERAL TOWNWIDE FUND 2.1649$ 1.8698$ 1.8161$ 1.7966$ 1.7863$ 1.7742$ 1.7600$
HIGHWAY TOWNWIDE FUND - 0.5439 0.5290 0.5258 0.5252 0.5230 0.5193
HIGHWAY PART-TOWN FUND 1.2452 1.3192 1.2932 1.2742 1.2687 1.2596 1.2511
FIRE PROTECTION FUND 3.2488 2.8622 2.7791 2.7405 2.7332 2.7180 2.6914
TOTAL PROPERTY TAX RATE 6.6589$ 6.5951$ 6.4174$ 6.3370$ 6.3134$ 6.2749$ 6.2219$
DESCRIPTION 2017 2018 2019 2020 2021 2022 2023
GENERAL TOWNWIDE FUND 411.34$ 355.25$ 345.05$ 341.35$ 339.40$ 337.09$ 334.40$
HIGHWAY TOWNWIDE FUND - 103.35 100.51 99.91 99.79 99.38 98.68
HIGHWAY PART-TOWN FUND 236.58 250.65 245.72 242.10 241.05 239.32 237.70
FIRE PROTECTION FUND 617.28 543.83 528.03 520.69 519.31 516.43 511.37
WATER BENEFIT ASSESSMENT 110.00 125.00 150.00 170.00 190.00 210.00 220.00
SEWER BENEFIT ASSESSMENT 25.00 25.00 45.00 50.00 50.00 50.00 60.00
TAX ON TYPICAL PROPERTY *1,400.20$ 1,403.08$ 1,414.31$ 1,424.04$ 1,439.55$ 1,452.22$ 1,462.15$
CHANGE FROM PRIOR YEAR (24.28)$ 2.88$ 11.23$ 9.73$ 15.51$ 12.67$ 9.93$
% CHANGE FROM PRIOR YEAR -1.70%0.21%0.80%0.69%1.09%0.88%0.68%
ACTUAL ESTIMATED BUDGET PROJECTED PROJECTED PROJECTED PROJECTED
2017 2018 2019 2020 2021 2022 2023
GENERAL TOWNWIDE FUND 100,000$ 413,100$ 363,100$ 313,100$ 313,100$ 313,100$ 313,100$
GENERAL PART-TOWN FUND 1,000,000 1,032,800 1,182,800 1,332,800 1,332,800 1,332,800 1,332,800
HIGHWAY PART-TOWN FUND 2,084,969 1,704,100 1,604,100 1,504,100 1,504,100 1,504,100 1,504,100
TOTAL SALES TAX COLLECTED 3,184,969$ 3,150,000$ 3,150,000$ 3,150,000$ 3,150,000$ 3,150,000$ 3,150,000$
DESCRIPTION
PROPERTY TAX BILL FOR A TYPICAL PROPERTY IN THE TOWN OF ITHACA
* A Typical Property in the Town of Ithaca is a Single Family Residence with an Assessed Value of $190,000.
SALES TAX COLLECTIONS:
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• Initial Discussion on FY-2019 Water Rates & Sewer Rents.
Water Rates: Bill Goodman reported that the Bolton Point Commission has adopted a 2019
budget where the expenditures are 3.8% over the prior year. The Commission has not yet set the
water rate for 2019, and the rate could be set at, above or below 3.8%. Hopefully the Commission
will set the rate at the next meeting.
Mr. Solvig stated that while we do not have the final water rate from Bolton Point yet, he had
prepared some preliminary water rate and sewer rent numbers for the Committee’s review. The
water rate is based on the assumption that Bolton Point is likely to increase their rate to cover the
increase in expenditures. Based on a 3.8% increase, the Bolton Point rate would increase from
$4.96/1000 gallons in 2018 to $5.15/1000 gallons in 2019. For the Town, our portion, used to
cover our operating costs, would increase from $2.35/1000 gallons in 2018 to $2.44/1000 gallons
in 2019. The total amount charged to Town water customers would be $7.59/1000 gallons in
2019, an increase of 3.8% over the $7.31/1000 gallons charged in 2018.
MINIMUM
CHARGE
New Rate Structure:
2019 5.15$ 2.44$ 7.59$ 4.91$ 62.50$
2018 4.96$ 2.35$ 7.31$ 4.81$ 60.60$
Old Rate Structure:
2018 4.53$ 2.15$ 6.68$ 4.40$ 102.00$
2017 4.44 2.11 6.55 4.31 99.98
2016 4.44 2.11 6.55 4.31 99.98
2015 4.35 2.03 6.38 4.27 97.96
2019 0.19$ 0.09$ 0.28$ 0.10$ 1.90$
INCREASE 3.8%3.8%3.8%2.1%3.1%
WATER RATES AND SEWER RENTS
PER 1,000 GALLONS OF WATER CONSUMPTION
TOWN OF ITHACA
YEAR BOLTON TOWN
POINT OPERATING W ATER SEWER
Sewer Rents: The amount charged to Town customers is proposed to increase to $4.91/1000
gallons in 2019, an increase of 2.1% over the $4.81/1000 gallons charged in 2018.
Minimum Quarterly Bill: The quarterly water & sewer bill is based on a minimum usage of 5,000
gallons of water and 5,000 gallons of sewage. The minimum quarterly bill will increase from
$60.60 in 2018 to $62.50 in 2019, an increase of 3.1%
• Initial Discussion on FY-2019 Water and Sewer Benefit Assessment Fees.
The Committee reviewed and discussed the Water and Sewer Benefit Assessment Fee
spreadsheets. The revenues received from Water and Sewer Benefit Assessment Fees are used to
pay for capital expenditures and/or for the annual debt service payments on long-term debt
issued to finance past capital expenditures. As the Town continues to issue new long-term debt to
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finance capital projects, annual debt service payments will continue to increase. At the close of
2018, the Town’s outstanding water-related long-term debt will total $11,083,000 with estimated
annual debt service payments of $1,228,000 in 2019. By year-end 2022, the Town’s outstanding
water-related long-term debt will increase to $14,874,000 with estimated annual debt service
payments of $1,860,000 in 2023.
Water Benefit Assessment Fee: In 2019, there will be an estimated 8,293.81 Water Units on the
county tax roll. At a proposed Water Benefit Fee of $150.00 per unit, the Town will collect
revenues in the amount of $1,244,000. This revenue will cover 101.2% of the $891,973 in debt
service payments made in 2019 for principal and interest on long-term debt issued to finance past
water projects. For the Water Benefit Assessment Fee to continue to provide 100% of the
revenue to cover the annual debt service payments, the annual fee would have to gradually
increase from $150.00 in 2019 to $220.00 in 2023.
Improvements to the Ithaca Area Wastewater Treatment Facility (IAWWTF) are financed by long-
term debt issued by the City of Ithaca. The City makes the annual debt service payments, and is
reimbursed by the Town for its share of the annual principal and interest costs. In 2019, the
Town’s payment to the City for annual debt service payments is estimated at $366,500. By 2023
the Town’s estimated payment will increase to $426,000.
Sewer Benefit Assessment Fee: In 2019, there will be an estimated 7,956.55 Sewer Units on the
county tax roll. At a proposed Sewer Benefit Fee of $45.00 per unit, the Town will collect
revenues in the amount of $358,000. This revenue will cover 98% of the $366,000 Town share of
debt service payments made in 2019 for improvement projects at the IAWWTF. For the Sewer
Benefit Assessment Fee to continue to provide 100% of the revenue to cover the Town’s share of
annual debt service payments, the annual fee would have to gradually increase from $45.00 in
2019 to $55.00 in 2023.
Mr. Solvig commented that the numbers discussed today will be used in preparing the Tentative
2019 Ithaca Town Budget for the Property Tax Levy, Water Rates & Sewer Rents, and the Water &
Sewer Benefit Assessment Fees. We will make adjustments as we develop the budget and see
where we project the individual performances of each fund for year-end in both 2018 and 2019.
(Subsequent to the meeting, we found that there was not a quorum at Bolton Point’s August
meeting, and would not set their water rate until the September 6th meeting at the earliest. The
SJC Board is not expected to set the IAWWTF annual budget until their October meeting.)
• Review of Five-Year Budget Projections.
The Committee did not discuss the budget projections.
• Other Items.
The meeting was adjourned at 1:06 p.m.
Next Meeting: Wednesday, September 5, 2018 at 12:00 pm, Town Hall - Aurora Room