HomeMy WebLinkAboutMeeting Minutes 5-20-19
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BUDGET COMMITTEE
Meeting Minutes - May 20, 2019
Committee present: Pam Bleiwas - Acting Chairman, Pat Leary Committee absent: Eric Levine
Staff present: Mike Solvig, Judy Drake, Dan Thaete.
Others present: Bill Goodman (via telephone), Tompkins County Assessor Jay Franklin.
Meeting was called to order at: 12:08 p.m.
AGENDA ITEMS:
• Review and approve meeting minutes from April 15, 2019.
Moved: Pat Leary Second: Pam Bleiwas Motion Passed
• Initial Discussion on creating Park District(s).
The Committee and Supervisor Bill Goodman discussed the possible formation of Park Districts
(and Sidewalk Districts) with Tompkins County Assessor Jay Franklin. Mr. Goodman explained
that the Town is interested in being able to apply these taxes/fees to properties that are
currently tax exempt. Mr. Goodman added that in addition to a sidewalk district for Forest
Home, there is now interest in having sidewalks installed the Northeast Elementary School.
Mr. Franklin indicated that park districts would be taxed on the ad valorem assessed value and
would include those properties currently tax exempt, but only for the capital costs. They could
not be charged for maintenance. Sidewalk districts can also include currently exempt properties
for the capital costs, but he advises they should be assessed on a “unit” system similar to what
the City (of Ithaca) uses. While you could use the ad valorem assessed value for a sidewalk
district, he advises against it.
Pam Bleiwas asked if we could use grants for sidewalks near the school. Mr. Goodman
responded that we have received grants in the past, such as the grant for Warren Road, but the
priority is for projects along the busier roads. Ms. Bleiwas said she would like the Town to be
able to respond more quickly to requests for sidewalks.
• Update on Sales Tax and Mortgage Tax Collections for First Quarter of 2019.
- SALES TAX COLLECTIONS: For the first three months of 2019, sales tax collections of $804,446
are 4.7% over 2018 collections of $768,602 for the same period. We are a little bit ahead of
2018, which saw the first quarter at 3.7% over the prior year. 2018 collections totaled
$3,338,799, which was 6.4% over prior year collections.
- MORTGAGE TAX COLLECTIONS: 2019 Mortgage Tax collections of $202,755 are 34.8% over 2018
collections of $150,407 for the same period. Mr. Solvig commented that total collections for
2018 were $299,934.
• 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.
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- 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 Review of Five-Year Capital Improvement Plan / 2020 Capital Budget.
The Committee reviewed an updated CIP schedule received from Public Works. Capital projects
scheduled for 2020 include the following:
- WATER TANKS - No Water Tank replacement or improvement projects are scheduled for 2020.
- WATER MAINS - Total cost for Water Main Improvements for 2020 is estimated at $1,100,000
and includes the following projects:
- Salem Dr / Winston Dr / Winston Ct Water Mains $ 950,000
- Remove Cliff Street Pump Station (Demolition) 150,000
- Replace Cliff Street PRV (at Hopkins) - future year (400,000)
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 2020, which
will be financed from current year revenues/fund balance.
- ROAD IMPROVEMENTS - Total cost for scheduled 2020 Road Improvement Program is estimated
at $1,750,000 and includes the following projects:
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- Upper Sand Bank / Town Line Roads Improvements $ 800,000
- Winthrop Road Improvements (Warren to VCH) 250,000
- Maple Avenue Improvements 700,000
This work will be financed with current year property tax revenue and fund balance.
- PARKS & TRAILS – Improvements to Town Parks & Trails for 2020 is budgeted at $250,000 and
includes the following projects:
- Trail Culvert Repairs (various locations) $ 50,000
- Trail Improvements/Overlay 100,000
- Forest Home Walkway 100,000
These projects will be financed with current year revenue and fund balance.
- TOWN FACILITIES - The Expansion of the Office Area at the Public Works Facility will add approx.
1,500 SF of office space to accommodate additional personnel added the past couple years.
This work is budgeted at $1,400,000, which will be financed by issuing new long-term debt.
Mr. Goodman commented that the $1,400,000 figure for the Public Works Facility comes from the
low bid we received on the project. Staff will continue to look into ways to reduce the cost of the
project. He said he would also like to see a new category fo r Sidewalks on the CIP. This would
include funding for the Forest Home Sidewalk project.
Total estimated costs for the CIP for Fiscal Years 2020 - 2024 are presented on the (revised)
schedule shown below:
INFRASTRUCTURE 2020 2021 2022 2023 2024 TOTAL
WATER INFRASTRUCTURE 1,500,000$ 1,650,000$ 3,050,000$ 1,650,000$ 3,200,000$ 11,050,000$
SEWER INFRASTRUCTURE 650,000 650,000 650,000 650,000 650,000 3,250,000
STORMWATER DRAINAGE 100,000 100,000 100,000 100,000 100,000 500,000
ROAD IMPROVEMENTS 1,750,000 2,250,000 1,750,000 950,000 - 6,700,000
SIDEWALK IMPROVEMENTS - 100,000 - - - 100,000
TOWN FACILITIES 1,400,000 650,000 400,000 - - 2,450,000
PARKS & TRAILS 250,000 200,000 150,000 150,000 150,000 900,000
TOTAL ANNUAL COST 5,650,000$ 5,600,000$ 6,100,000$ 3,500,000$ 4,100,000$ 24,950,000$
FUNDING SOURCE:
- Current Year Revenue 2,050,000$ 1,800,000$ 2,650,000$ 1,850,000$ 1,300,000$ 9,650,000$
- Grants & Donations - - - - - -
- New Long-Term Debt 3,600,000 3,800,000 3,450,000 1,650,000 2,800,000 15,300,000
TOTAL FUNDING 5,650,000$ 5,600,000$ 6,100,000$ 3,500,000$ 4,100,000$ 24,950,000$
Of the $24,950,000 total estimated project costs, $9,650,000 would be financed with current year
revenues, $0 with grants and donations, and the remaining $15,300,000 by the issuance of new
long-term debt.
• Property Tax Cap Override for FY-2020.
The Committee reviewed the resolutions and local law for the property tax cap override for FY
2020. The resolution to set the public hearing will be on the June 10 Town Board agenda, setting
the public hearing for July 8 at 5:30 pm. Consideration of adoption of the local law will be
scheduled for the July 8 Town Board meeting following the public hearing.
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• Other Items.
- Status of Town Audit - Field work, originally scheduled for the week of April 29, was post-
poned to the week of June 10 at the request of the auditors.
- Status of Court Audit - Not yet scheduled.
- Lake View Cemetery - Mr. Solvig informed the Committee the Town plans to return the
Cemetery’s checkbook to the LVC Board at their May 23 meeting. From that point on the LVC
Board will be entirely responsible for the Cemetery’s finances. The Town has agreed to
continue holding the Permanent Maintenance Fund and Ferris Memorial Fund in escrow to
ensure these funds will not disappear again.
The meeting was adjourned at 1:10 p.m.
Next Meeting: Monday, June 24, 2019 at 12:00 pm, Town Hall - Aurora Room
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The schedule shown below identifies the capital equipment scheduled for purchase/replacement
in Fiscal Year 2020 at a total estimated cost of $549,000. This is a reduction from the $741,000
budgeted in 2019. Funding of capital equipment replacements will come from current year
revenues/fund balance.
FLEET MODEL USEFULL ORIGINAL REPLACEMENT
NO .YEAR LIFE COST COST
2020 REPLACEMENTS:
Ford Escape SUV (Codes)24 2013 7 23,473$ 34,000$
Ford F350 1-Ton Dump Truck 17 2010 7 24,932 32,000
Ford F250 Super-Cab Pickup w/plow 69 2013 6 36,640 50,000
John Deere 624K Front-End Loader 31 2010 15 135,500 250,000
Gehl Skid-Steer Loader 46 2010 10 25,977 65,000
Caterpillar Mini-Excavator w/Attachments 36 2013 7 86,436 100,000
Grasshopper Mower w/mowing deck 53 2017 3 16,864 18,000
2020 NEW EQUIPMENT:
None -$
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Total - 2020 Vehicle & Equipment Expenditures 549,000$
CAPITAL EQUIPMENT