HomeMy WebLinkAboutMeeting Minutes 1-16-19
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BUDGET COMMITTEE
Meeting Minutes - January 16, 2019
Committee present: Eric Levine - Chairman, Pat Leary, Pamela Bleiwas
Staff present: Mike Solvig, Judy Drake, Jim Weber
Others present: Bill Goodman
Meeting was called to order at 12:00 p.m.
AGENDA ITEMS:
• Review and approve September 5, 2018 meeting minutes.
Moved: Pam Bleiwas Second: Pat Leary Motion Passed
• Set 2019 Budget Committee meeting dates.
Chairman Levine informed the Committee that, with his new position at Alternatives, Wednesdays
will no longer be a good day for Budget Committee meetings. The committee had a short
discussion on which days/times would and would not work this year. Eric will email the
committee members later and work out an acceptable day and time. The 2019 meeting schedule
will then be re-done. For the February meeting, the committee agreed to Monday, February 25 at
12:00 p.m.
• Discuss 2019 Budget Committee priorities.
The committee identified the following topics as priorities for 2019:
- Review Reserve Funds and Accounts, setting maximum balances where appropriate.
- 2019 Bond Issue – includes expansion of the Public Works Facility offices.
- Review Town’s Long-Term Debt and Debt Service Schedules.
- Review of Town Supervisor’s salary – Mr. Levine would like to review and adjust, if necessary,
the Supervisor’s salary for FY-2020 prior to the 2019 election.
- Review / revision of the Town’s Investment Policy and Investing of Town Funds.
- Five-Year Financial Projections 2019 - 2023.
- Review of the Town's voluntary contributions to community organizations – continuation of
discussions which began during the 2019 Ithaca Town Budget process.
- Consider establishing Sidewalk Districts within the Town – Mr. Goodman would like to see
this completed by mid-year in 2019 so, if approved, taxes can be levied beginning in 2020.
- Consider establishing Park & Recreation Districts within the Town – Mr. Goodman would like
to discuss establishing park & recreation districts to raise revenue to fund future projects. The
use of districts will allow the Town to “tax” otherwise exempt properties, such as Cornell
University and Ithaca College properties.
- Property Tax Cap for FY-2020 and recommend 2020 Property Tax Levy.
- Five-Year Capital Improvement Plan 2020 - 2024 and 2020 Capital Budget.
- 2020 Ithaca Town Budget.
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• Discuss Town's Reserve Funds and Accounts.
The committee reviewed and discussed the report on the Town’s reserve funds and accounts.
- Parks, Recreation and Open Space Plan Account: The Fund Balance of the General Townwide
Fund includes funds designated for the purpose of future park development and the
purchasing of development rights, as outlined in the Town’s Park, Recreation and Open Space
Plan, as adopted on December 12, 1997. As of 1/01/18, the balance of this account was
$827,661. During FY-2018 this account was increased by a $100,000 re-designation of fund
balance, plus $1,277 in interest income. $96,312 was expended to purchase part of the
Babcock property on West Hill from the Finger Lakes Land Trust. The balance of this account
as of 12/31/18 was $832,626.
This account is funded by the Town Board making an annual re-designation of a portion of the
Fund Balance of the General Townwide Fund from unreserved to reserved. Additional income
is received from interest earnings. An additional $100,000 in unreserved fund balance was
designated as reserved for this purpose by the Town Board in January 2019.
- General Benefit Reserve Account: The fund balances in the General Townwide Fund, General
Part-Town Fund, Highway Part-Town Fund, Water Fund, and Sewer Fund includes reserves
established for managing unanticipated increases in employee fringe benefit costs (e.g. NYS
Employee Retirement System, Health Insurance). The aggregate balance of this account as of
12/31/18 was $350,392. The balance by fund is as follows:
General Townwide Fund $ 165,628
General Part-Town Fund 69,468
Highway Part-Town Fund 79,412
Water Fund 23,838
Sewer Fund 12,046
Total - Benefit Reserve: $ 350,392
In 2015 the Town Board set the maximum for this account at $350,000, with the balance in
excess of the maximum at year-end to be returned to the unreserved fund equity of the host
funds.
- Preserve Maintenance Account: The General Townwide Fund includes funds designated for
the maintenance of the Pine Tree Wildlife Preserve, donated to the Town by a local family in
2013. In conjunction with the donation of the land, the amount of $40,000 was provided for
future maintenance of the preserve. As of 12/31/18 the balance of this account totaled
$40,173. Future income for this account will be limited to interest earnings.
- Land Stewardship Account: In 2014 the Town purchased the development rights to the Indian
Creek Farm with financial assistance through a State of New York grant. This grant included
$10,000 to be held by the Town, designated for the stewardship of the Indian Creek Farm
lands. For the year ended 12/31/18, the balance of this reserve totaled $9,752. Future
income for this account will also be limited to interest earnings.
- Inlet Valley Cemetery Account: In 2017 the Inlet Valley Cemetery Expendable Trust Fund was
closed and the remaining assets transferred to the General Townwide Fund. The remaining
balance will be used by the Town to maintain the cemetery. As of 12/31/18, the balance of
this account totaled $4,425.
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- Highway Equipment Account: The fund balance of the Highway Part-Town Fund includes
funds set aside for the purchase/replacement of highway equipment and machinery. This
reserve is funded by sale of surplus machinery and equipment, with additional income from
interest earnings. The balance in this account as of 1/01/18 was $250,000. During FY-2018,
revenues to this account included $33,616 from the sale of surplus equipment, and $289 in
interest income. Balance of this account as of 12/31/18 was $283,905.
In 2015 the Town Board set the maximum for this account at $250,000, with funds from the
sale of surplus machinery and equipment in excess of the maximum to be deposited to the
unreserved fund balance of the Highway Fund. In 2018 the Town Board increased the
maximum for this account to $400,000.
- Risk Retention Fund: This fund is used to account for expenditures for 1) direct employee
safety, health and wellness expenditures, including work-related emergency room and clinic
health care visits, and 2) repairs to equipment and facilities not covered by insurance or until
reimbursement from insurance is received. Income for this fund is derived from annual
budgeted inter-fund transfers, plus insurance recoveries and interest income. Fund balance
was $149,222 as of December 31, 2018.
In 2015 the Town Board established the maximum fund balance of the Risk Retention Fund be
set at $150,000, with any amount in excess of the maximum at year-end to be returned to the
unreserved fund equity of the contributing funds.
- SJC Account in Sewer Fund: The Fund Balance of the Sewer Fund includes funds designated
for SJC purposes. In 2015 these purposes were defined by the Town Board as 1) to pay for
expenditures related to the improvement of jointly-owned sewer interceptor lines, and 2) to
pay the Town’s share of the City of Ithaca’s bonded debt issued to pay for Ithaca Area
Wastewater Treatment Facility (IAWWTF) improvements. The balance in this account as of
12/31/18 totaled $1,512,796.
1) Jointly-owned Sewer Interceptor Lines: Interceptor sewers convey sewage from the
Town through the City of Ithaca for treatment at the IAWWTF. These interceptor
sewers are jointly owned with the City, and the Town is responsible for a portion of the
maintenance and replacement costs of these lines. The replacement of the State Street
Interceptor is the last of five projects originally agreed to between the Town and City.
$300,000 of the SJC account balance was designated to pay for improvement of the
State Street Interceptor in 2018. ( In January 2019 the Town received an invoice from
the City of Ithaca in the amount of $237,420 for the Town’s share of the cost for
improvements to the State Street Interceptor. )
2) IAWWTF Bonded Debt: As of 12/31/18, outstanding bonded debt and BAN’s totaled
almost $16,548,000. The Town share (40.88%) of this total amounts to approx.
$6,764,800. In 2015, the Town Board determined it would be prudent for the Town to
designate funds to pay part of this debt in the event of future economic hardships, and
that such funds should be in an amount equal to 25% of the Town’s share of
outstanding IAWWTF debt at year-end, to be reviewed and adjusted annually. This
amount, based on the 12/31/18 outstanding debt total, would equal $1,691,200. As of
12/31/18, the actual amount available in the SJC account was $1,212,796. This is
approx. $478,400 below the calculated amount.
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• Update on Sales Tax and Mortgage Tax Collections through November 2018.
- Sales Tax Collections: The Committee reviewed the Sales Tax Collections Report for 2018.
Through November, Sales Tax collections are 8.6% over the same period in 2017. Ten out of
eleven months have seen collections increase over the same month of the prior year. Sales
Tax collections through November 2018 total $3,072,100 against collections of $2,830,074 for
the same period in 2017. Mr. Solvig informed the Committee that the Town has not yet
received the December payment from Tompkins County.
- Mortgage Tax Collections: Mortgage Tax collections for 2018 total $299,934 against
collections of $279,791 for 2017, an increase of 7.2% over the prior year.
• Begin discussion on Investment of Town Funds.
With interest rates now rising, conditions are favorable for the Town to begin investing idle funds
again. Mr. Solvig would like the Committee to review and revise, as needed, the Town’s current
investment policy, and decide what types of investments the Committee would like to see used
for investing Town funds.
• Begin discussion on Funding of Community Groups.
During the Town Board’s review of the proposed 2019 Ithaca Town Budget, the Tompkins County
Public Library’s request for an increase in annual funding for FY-2019 started a discussion on how
the Town Board should determine the annual level of funding for community organizations and
programs. This discussion was not finished by the Town Board, and Mr. Goodman has asked the
Budget Committee to look at this issue and recommend a policy to the Town Board.
• Other Items.
No other items were discussed
The meeting was adjourned at 1:07 p.m.
Next Meeting: Monday, February 25, 2018 at 12:00 pm, Town Hall - Aurora Room