HomeMy WebLinkAboutMeeting Minutes 7-22-19
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BUDGET COMMITTEE
Minutes - July 22, 2019
Committee present: Eric Levine - Chairman, Pat Leary, Pam Bleiwas
Staff present: Mike Solvig, Judy Drake, Donna Shaw
Others present: Bill Goodman
Meeting was called to order at: 12:03 p.m.
AGENDA ITEMS:
• Review and approve meeting minutes from May 20 and June 24, 2019.
The meeting minutes from May 20 and June 24 were not ready at this time and will be reviewed at
the next meeting.
• Continue discussion on creating Park and Sidewalk District(s).
Bill Goodman informed the Committee he still intends to form a Sidewalk District for Forest Home
to be included on the 2020 Property Tax Bills. We will need to hold a public hearing in October,
probably at the Town Board Budget Meeting on October 3. The deadline to get this to Jay Franklin
for inclusion on the 2020 Tax Bills is November 15.
Forming a sidewalk district for the northwest schools is more complicated and will have to be
worked on during 2020. The goal is to create this district to be included on the 2021 Tax Bills.
• Review and discuss 2020 Capital Budget.
The Committee reviewed an updated schedule for capital projects scheduled for 2020:
- WATER TANKS - No projects are scheduled for 2020.
- WATER MAINS - Water Main Improvements for 2020 consist of the Salem Dr / Winston Dr /
Winston Ct Water Main Replacements, estimated at $875,000. This work will be financed by
issuing new long-term debt.
- SEWER AND MANHOLE REHABILITATION - The amount of $300,000 will be budgeted in 2020, which
will be financed from current year revenues/fund balance in the Sewer Fund.
- STORM DRAINAGE - The amount of $250,000 will be budgeted in 2020, which will be financed
from current year revenues/fund balance in the General Townwide Fund.
- ROAD IMPROVEMENTS - The 2020 Road Improvement Program is for Winthrop Drive, from Warren
Road to Village of Cayuga Heights border. $250,000 is budgeted for this work financed with
current year property tax revenue in the Highway Part-Town Fund.
- SIDEWALKS - The amount of $375,000 will be budgeted in 2020 for work around the Forest Home
S-Curve. Financing will be provided through formation of a new Sidewalk District for Forest
Home.
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- TOWN FACILITIES - The expansion of the office area at the Public Works Facility will add approx.
1,100 SF of office space to accommodate additional personnel added the past couple years. This
work was first budgeted in 2019, with bids for construction exceeding the amount budgeted.
The 2020 Capital Budget will include $1,400,000 for this project.
- PARKS & TRAILS – Improvements to Town Parks & Trails for 2020 is budgeted at $340,000 and
includes the following projects:
- South Hill Trail Culvert Repairs $ 50,000
- Trail Overlay / Drainage Improvements 100,000
- Forest Home Walkway Re-construction 100,000
- East King Road Park & Trail – Phase II 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 $90,000 donation from a local resident.
• Initial Discussion on Property Tax Levy and Tax Rate Calculations for FY-2020.
The Committee reviewed the spreadsheet for the preliminary 2020 Property Tax Levy and Tax Rates.
The total property tax levy for 2020 is proposed at $8,569,800, a $168,150 or 2.00% increase over
the prior year. This proposed tax levy would provide $3,036,000 to the General Townwide Fund,
$815,000 to the Highway Townwide Fund, $1,466,000 to the Highway Part -Town Fund, of which
$800,000 would be to finance the 2020 Road Improvements Program, and $3,216,000 in the Fire
Protection Fund. Increases to the individual fund levies range from 1.81% to 2.10%.
The Tompkins County Assessor’s Office has provided the Town with the 2019 assessed valuations,
again showing better than anticipated increases in the taxable valuations over the prior year. The
Townwide A.V. increased by 4.25% to $1,615,579,157; the Part-Town A.V. increased by 5.36% to
$1,164,596,108; and the Fire Protection District A.V. increased by 5.06% to $1,247,137,791.
Town staff is also proposing to increase the Water Benefit Assessment Fee by $20.00 per assessed
unit, from $150.00 in 2019 to $170.00 in 2020. Also proposed is increasing the Sewer Benefit
Assessment Fee by $5.00 per assessed unit, from $45.00 in 2019 to $50.00 in 2020. The Committee
will discuss these proposed increases later today.
In 2019, the property tax bill for a typical property* in the Town was $1,409.52. 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
decrease to an estimated $1,402.02 in 2020. This decrease of $7.50 in the 2020 property tax bill for
a typical property is a 0.53% decrease from 2019.
* A Typical Property in the Town of Ithaca is a single-family residence with an assessed value of $190,000.
• Review and discuss the Property Tax Cap for FY-2020.
The Committee reviewed the Property Tax Cap calculation for FY-2020. For the 2020 Tax Year, the
Tax Base Growth Factor is 1.41% and the Levy Growth Factor is 2.00%. These growth factors are set
by the State. When these growth factors are applied to the Town’s actual assessed 2019 Property
Tax Revenue total of $10,053,867 we come to the allowable 2020 Property Tax Revenue total of
$10,345,063. This is an increase of $291,196 or 2.90% over 2019. The current working budget total
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PROPERTY TAX LEVY & TAX RATE PROJECTION - 2020 - 2024
ACTUAL ACTUAL BUDGET PROJECTED PROJECTED PROJECTED PROJECTED
2018 2019 2020 2021 2022 2023 2024
PROPERTY TAX LEVY:
GENERAL TOWNWIDE FUND 2,750,000$ 2,975,000$ 3,036,000$ 3,090,000$ 3,151,000$ 3,210,000$ 3,270,000$
HIGHWAY TOWNWIDE FUND 800,000 800,000 815,000 834,000 848,000 868,000 880,000
HIGHWAY PART-TOWN FUND 1,400,000 1,440,000 1,466,000 1,500,000 1,530,000 1,560,000 1,590,000
WATER FUND 9,000 8,750 8,800 9,000 9,100 9,200 9,300
SEWER FUND 10,000 9,900 10,000 10,200 10,500 10,800 11,200
FIRE PROTECTION FUND 3,250,000 3,150,000 3,216,000 3,280,000 3,350,000 3,420,000 3,500,000
LIGHT DISTRICTS FUND 19,000 18,000 18,000 18,000 17,000 16,000 15,000
TOTAL PROPERTY TAX LEVY 8,238,000$ 8,401,650$ 8,569,800$ 8,741,200$ 8,915,600$ 9,094,000$ 9,275,500$
INCREASE FROM PRIOR YEAR 398,800$ 163,650$ 168,150$ 171,400$ 174,400$ 178,400$ 181,500$
% INCREASE FROM PRIOR YEAR 5.09%1.99%2.00%2.00%2.00%2.00%2.00%
ASSESSED VALUATIONS:
GENERAL TOWNWIDE FUND 1,470,783,820 1,549,688,565 1,615,579,157 1,672,124,427 1,734,829,094 1,804,222,257 1,876,391,148
HIGHWAY TOWNWIDE FUND 1,470,783,820 1,549,688,565 1,615,579,157 1,672,124,427 1,734,829,094 1,804,222,257 1,876,391,148
HIGHWAY PART-TOWN FUND 1,061,231,644 1,105,371,520 1,164,596,108 1,205,356,972 1,250,557,858 1,300,580,173 1,352,603,379
FIRE PROTECTION FUND 1,135,473,489 1,187,098,119 1,247,137,791 1,290,787,614 1,339,192,149 1,392,759,835 1,448,470,229
PROPERTY TAX RATES:
GENERAL TOWNWIDE FUND 1.8698$ 1.9197$ 1.8792$ 1.8479$ 1.8163$ 1.7792$ 1.7427$
HIGHWAY TOWNWIDE FUND 0.5439 0.5162 0.5045 0.4988 0.4888 0.4811 0.4690
HIGHWAY PART-TOWN FUND 1.3192 1.3027 1.2588 1.2444 1.2235 1.1995 1.1755
FIRE PROTECTION FUND 2.8622 2.6535 2.5787 2.5411 2.5015 2.4556 2.4163
TOTAL PROPERTY TAX RATE 6.5951$ 6.3922$ 6.2212$ 6.1322$ 6.0301$ 5.9153$ 5.8035$
DESCRIPTION 2018 2019 2020 2021 2022 2023 2024
GENERAL TOWNWIDE FUND 355.25$ 364.75$ 357.05$ 351.11$ 345.10$ 338.04$ 331.11$
HIGHWAY TOWNWIDE FUND 103.35 98.08 95.85 94.77 92.87 91.41 89.11
HIGHWAY PART-TOWN FUND 250.65 247.52 239.17 236.44 232.46 227.90 223.35
FIRE PROTECTION FUND 543.83 504.17 489.95 482.81 475.29 466.56 459.11
WATER BENEFIT ASSESSMENT 125.00 150.00 170.00 190.00 205.00 220.00 225.00
SEWER BENEFIT ASSESSMENT 25.00 45.00 50.00 55.00 55.00 55.00 60.00
TAX ON TYPICAL PROPERTY *1,403.08$ 1,409.52$ 1,402.02$ 1,410.13$ 1,405.72$ 1,398.90$ 1,387.67$
C HANGE FROM PRIOR YEAR 2.88$ 6.45$ (7.50)$ 8.10$ (4.41)$ (6.81)$ (11.23)$
% CHANGE FROM PRIOR YEAR 0.21%0.46%-0.53%0.58%-0.31%-0.48%-0.80%
ACTUAL ESTIMATED BUDGET PROJECTED PROJECTED PROJECTED PROJECTED
2018 2019 2020 2021 2022 2023 2024
GENERAL TOWNWIDE FUND 488,799$ 340,000$ 315,000$ 321,300$ 327,700$ 334,400$ 341,100$
GENERAL PART-TOWN FUND 1,100,000 1,380,000 1,260,000 1,285,200 1,310,900 1,337,200 1,364,400
HIGHWAY PART-TOWN FUND 1,800,000 1,780,000 1,625,000 1,657,500 1,690,400 1,724,400 1,758,500
TOTAL SALES TAX COLLECTED 3,388,799$ 3,500,000$ 3,200,000$ 3,264,000$ 3,329,000$ 3,396,000$ 3,464,000$
SALES TAX COLLECTIONS:
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.
DESCRIPTION
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of $10,427,800 is $82,737 over the 2020 Property Tax Cap, or 3.72% over 2019. Increases in
revenue are $169,050 from the Property Tax Levy; $155,928 from Water Benefit Fees; $41,955
from Sewer Benefit Fees; and $7,000 from PILOT payments.
• Review and Discuss Town Department Staffing Plans for 2020 - 2023.
The Committee reviewed the 2020 - 2023 staffing plans for Town departments. This item was
previously reviewed and discussed by the Public Works and Personnel & Organization Committees
at earlier meetings. Judy Drake reviewed the current staff levels of the Public Works Department
and presented the preliminary plan increasing staff from the current level of 35.0 FTE’s in FY-2019
to 39.0 FTE’s by FY-2023. The preliminary staffing plan for the Public Works Department includes
the following:
• FY-2020: Add and fill the new position of Geographic Information System (GIS) Analyst at an
annual cost of $65,700 + benefits. This position would be under Engineering, housed at Town
Hall due to limited space at the Public Works Facility. Director of Public Works will retire in
May 2020. Public Works organizational structure should be reviewed and modified as needed
prior to recruitment for position.
• FY-2021: Add and fill one (1) additional Heavy Equipment Operator at an additional annual
cost of $61,200 + benefits. Eliminate one (1) Seasonal Laborer positions for an annual saving
of $15,500. Total additional annual cost: $45,700 + benefits.
• FY-2022: Add and fill one (1) additional Motor Equipment Operator at an additional annual
cost of $55,560 + benefits. This would create the ability to have smaller crews 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.
• FY-2023: Add and fill one (1) additional Laborer at an additional annual cost of $46,250 +
benefits. Eliminate one (1) Seasonal Laborer positions for an annual saving of $15,750. Total
additional annual cost: $30,500 + benefits.
Mrs. 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 32.75 FTE’s in FY-2019 to
31.5 FTE’s in FY-2022 and includes the following:
• FY-2020: Expected promotion (planned succession) of the Senior Code Enforcement Officer to
Director of Code Enforcement in late-2019/early-2020 will leave the Senior Code Enforcement
Officer position vacant 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 a nnual
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.
• Discuss COLA for FY-2020
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• Update on status of Investments and Interest received for April.
The Committee reviewed the spreadsheet showing interest income received from short-term
investments and certificates of deposit for April.
- SHORT-TERM INVESTMENT ACCOUNT: On April 11 the Town opened the Short-Term Investment
Account at Tompkins Trust to consolidate funds from various Town accounts to take advantage
of higher interest rates offered on higher account balances. Initially, $14,500,000 was
consolidated in this account from 21 other Town accounts. For account balances in excess of
$10 million, the interest rate is 1.49%. For the remaining 20 days in April, total interest earned
was $11,691.87, which was distributed to the original accounts as shown on the spreadsheet.
The balance in this account will fluctuate as funds are added as revenues are received or
withdrawn to pay current expenses. As of April 30, the balance of this account was at
$14,200,000. At the point where the balance in the account falls below $10 million, the interest
rate will fall to 0.995%. Below $5 million the interest rate falls to 0.40%
- CERTIFICATES OF DEPOSIT: On March 15 the Town opened three 14-month certificates of deposit
at Tompkins Trust at a total of $6,700,000. These certificates have an interest rate of 2.23%.
The $6,700,000 is from 14 Town accounts, consisting of idle fund balance or other funds
expected to remain unused over the 14-month life of these certificates of deposit. On April 15,
the first month’s interest of $13,111.36 was received and distributed to the original accounts
as shown on the spreadsheet.
Of the $25,264,653.26 on deposit at Tompkins Trust as of this morning, $15,826,663.05 (62.6%) was
in the Short-Term Investment Account earning interest at the rate of 1.49%, and $6,725,426.59
(26.6%) was in the Certificates of Deposit earning interest at the rate of 2.23%.
In total, $24,803.23 in interest was earned in April from the Short -Term Investment Account and
certificates of deposit. This compares favorably to the (approx.) $33,000 in interest the Town
earned for all of 2018.
• Initial Discussion on FY-2020 Water Rates & Sewer Rents.
Water Rates: The Bolton Point Commission has adopted a 2020 budget where the expenditures
are 4.0% over the prior year. The Commission has not yet set the water rate for 2020, and the rate
could be set at, above or below 4.0%. 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 4.0% increase, the Bolton Point rate would increase from
$5.15/1000 gallons in 2019 to $5.36/1000 gallons in 2020. For the Town, our portion, used to cover
our operating costs, would increase from $2.44/1000 gallons in 2019 to $2.54/1000 gallons in 2020.
The total amount charged to Town water customers would be $7.90/1000 gallons in 2020, an
increase of 4.1% over the $7.59/1000 gallons charged in 2019.
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MINIMUM
CHARGE
New Rate Structure :
2020 5.36$ 2.54$ 7.90$ 5.10$ 65.00$
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
2020 0.21$ 0.10$ 0.31$ 0.19$ 2.50$
INCREASE 4.1%4.1%4.1%3.9%4.0%
WATER RATES AND SEWER RENTS
PER 1,000 GALLONS OF WATER CONSUMPTION
TOWN OF ITHACA
YEAR BOLTON TOWN
POINT OPERATING WATER SEWER
Sewer Rents: The amount charged to Town customers is proposed to increase to $5.10/1000
gallons in 2020, an increase of 3.9% over the $4.91/1000 gallons charged in 2019.
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 $62.50
in 2019 to $65.00 in 2020, an increase of 4.0%
• Initial Discussion on FY-2020 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 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.
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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 for the Property Tax Levy, Water Rates & Sewer
Rents, and the Water & Sewer Benefit Assessment Fees will be used in preparing the Tentative 2020 Ithaca
Town Budget. 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 2019 and 2020.
• Other Items.
No other items were discussed.
The meeting was adjourned at 1:19 p.m.
Next Meeting: Monday, August 26, 2019 at 12:00 pm, Town Hall - Aurora Room