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HomeMy WebLinkAboutTB Minutes 2021-10-07 Budget Meeting of the Ithaca Town Board October 7, 2021 at 5:30 p.m. This meeting will be held virtually and broadcast via our YouTube Link and ZOOM for your convenience. If you are planning to address the Board,please join via ZOOM and consider shifting to YouTube for the remainder of the meeting. BUDGET MEETING AGENDA 1. Call to order 2. Consider approval of 2022 Elected Officials' salaries 3. Presentation of the Town of Ithaca 2022 Preliminary Budget a. Consider any amendments b. Discuss and consider setting a public hearing regarding the Town of Ithaca 2022 Preliminary Budget 4. Town of Ithaca Abstract 5. Adj ournment TB Resolution 2021- : Approval of 2022 Proposed Elected Officials Salaries Resolved, that the Ithaca Town Board approves the following proposed 2022 salaries for the elected officials : TOWN SUPERVISOR $ 76,818 (Paid Biweekly) (includes Town Supervisor pay and 80%percentage of Supervisor's Administrative Function pay) DEPUTY TOWN SUPERVISOR $ 26,448 (Paid Biweekly) (includes Board Member pay and 20%percentage of Supervisor's Administrative Function Pay) TOWN BOARD MEMBER(5) $ 15,973 Each (Paid Biweekly) TOWN JUSTICE (2) $ 26,523 Each (Paid Biweekly) and be it further Resolved, that the Town Clerk shall publish said proposed salaries as required by Town Law Section 108. Moved: Seconded: Vote: Ayes: TB Resolution 2021 - : Setting a public hearing regarding the Town of Ithaca 2022 Preliminary Budget Whereas, the Town Supervisor filed his 2022 Tentative Budget with the Town Clerk on September 28, 2021, and Whereas the Town Clerk presented the Tentative Budget to the Town Board at its October 9, 2021 Budget Meeting and the Town Supervisor reviewed his highlights; now, therefore,be it Resolved that, the Town Board adopts the 2022 Tentative Budget as its 2022 Preliminary Budget and schedules a public hearing to be held on their meeting of October 18, 2021 which begins at 5:30 p.m. via ZOOM, ID 989 1095 8241 for the purpose of hearing public comments on the Town of Ithaca's 2022 Preliminary Budget. Moved: Seconded: Vote: ayes— Meeting of the Ithaca Town Board October 7, 2021 BUDGET MEETING Due to Gov. Hotchel's executive order suspending certain aspects of the Open Meetings Law due to the COVID 19 pandemic, this meeting was held virtually and broadcast via the Town's YouTubeLive and Zoom accounts. MINUTES Board Members Present: Rod Howe, Supervisor; Members Eric Levine, Rich DePaolo, Bill Goodman, Tee-Ann Hunter, and Pat Leary Absent: Pamela Bleiwas Staff Present: Judy Drake, Director of Human Resources; Marty Moseley, Director of Code Enforcement; Susan Ritter, Director of Planning; Paulette Rosa, Town Clerk; Joe Slater, Director of Public Works; Donna Shaw, Director of Finance; and Dan Thaete, Director of Engineering 1. Call to order—Mr. Howe called the meeting to order at 5:32 p.m. 2. Consider approval of 2022 Elected Officials' salaries TB Resolution 2021- 130: Approval of 2022 Proposed Elected Officials Salaries Resolved, that the Ithaca Town Board approves the following proposed 2022 salaries for the elected officials: TOWN SUPERVISOR $ 76,818 (Paid Biweekly) (includes Town Supervisor pay and 80%percent of Supervisor's Administrative Function pay) DEPUTY TOWN SUPERVISOR $ 26,448 (Paid Biweekly) (includes Board Member pay and 20%percentage of Supervisor's Administrative Function Pay) TOWN BOARD MEMBER (5) $ 15,973 Each (Paid Biweekly) TOWN JUSTICE (2) $ 26,523 Each (Paid Biweekly) and be it further Resolved, that the Town Clerk shall publish said proposed salaries as required by Town Law Section 108. Moved: Rich DePaolo Seconded: Bill Goodman Vote: ayes—DePaolo, Goodman, Hunter, Howe, Leary and Levine TB Budget 2021-10-07 (Filed 2022-02-08) Pg. 1 3. Presentation of the Town of Ithaca 2022 Preliminary Budget Mr. Howe thanked the Budget Committee and Ms. Shaw for their work throughout the year on the budget. Mr. Howe went through the highlights supplied in the packet. He added that he has asked Ms. Shaw to look at having pie charts next year for a visual aid. Mr. Levine said Mr. Howe hit all the points he would have, and this is a modest increase of just over $25 for the average home, he also thanked Ms. Shaw for her efficiency and help during the Budget Committee and developing the budget. Mr. DePaolo asked a general question, asking why if the budget went down, did the taxes go up? Ms. Shaw responded that last year's budget, the Fund Balance was used and this year we did not, so revenue needed to go up. Mr. DePaolo asked what falls under the umbrella"contractual services" although he understood that the Fire contract was a large portion of it. Ms. Shaw responded that it is everything that is not equipment or personnel services, so community services, telephone, professional services, supplies; all itemized elsewhere in the budget under contractual services in the fund. Ms. Johnson asked if there are certain revenues that are dedicated to certain expenditures, and if so, is that shown somewhere. Ms. Shaw responded that there are dedicated revenues but they are not shown as such; for example, sales tax can only be appropriated to the B Funds and the water and sewer benefit assessment fees can only go to water and sewer funds etc. Mr. Howe added that the ARPA funds are coming, and some have been received, but they are not reflected in the budget because we do not know how we are going to spend it. Ms. Hunter asked about the facility improvements under consideration. Mr. Howe responded that we are doing energy audits and we do not have the reports yet, but we do know that there may be costs associated with those and because we have been cautious, we may be able to do some things within this budget. Mr. DePaolo asked about the Personnel Budget and how many FTE's we have now in 2021 compared to 2022. Ms. Drake responded that there is no change in FTE's. TB Budget 2021-10-07 (Filed 2022-02-08) Pg. 2 Mr. DePaolo asked about the Deputy Finance Officer, a Bookkeeper to the Supervisor and a Receiver of Taxes, and he asked who those individuals were. Ms. Shaw responded that she was the Deputy Finance Officer and is currently vacant. Mr. DePaolo said it is still there and budgeted for though? Ms. Shaw responded that we are leaving the option open. Mr. DePaolo asked about the Director of Planning which shows at 1.25 FTE's? Ms. Drake responded that that is succession planning for Ms. Ritter. Mr. DePaolo asked about"other revenue"which is large and he wondered what that is. Ms. Shaw responded that that is all other revenues other than taxes; building permits, court fees, etc. Mr. DePaolo asked about the Worksheet, and PILOT revenue. What and with whom are these agreements? Are any with the colleges? Ms. Shaw responded they are not; most are with affordable or low-income housing. Mr. DePaolo said he is amazed at how much tax-exempt property is in the Town; 48% is shockingly high and speaks to why our taxes, although we have done everything in our power to hold the line, are so high. Mr. Howe said he was surprised that Cornell is in the top of our taxpayers. Mr. DePaolo asked about the reference to the Apprenticeship Program where no money was spent last year and it doesn't seem to be funded for this year. Was the money returned to Fund Balance? Ms. Drake responded that this is a program with the City and the County where we bring in apprentices to work in each entity for Public Works jobs to try and increase diversity. Mr. Howe added that due to COVID it didn't happen last year and the line is being held until we know. Ms. Shaw responded that it is delineated into the lines for Public Works, and the funds from this year will be adjusted back to Fund Balance when she closes the year. Mr. DePaolo asked about Saunders Park; is the $40K in addition to the $40 spent in 2021? Ms. Shaw responded that the $40 for 2021 hasn't been spent yet but yes, the additional $40 for a total of up to $80K spent. TB Budget 2021-10-07 (Filed 2022-02-08) Pg. 3 Ms. Hunter asked about Land Acquisition which is showing zero and whether the Town is looking to buy any land and where would those funds come from. Mr. Howe responded that there are a number of parcels that the town is interested in, and we will be using the money we have already set aside for those. Mr. DePaolo asked about the IT Budget and the Telephone recurring expenses. Mr. Howe responded that Mr. Little is looking into this and he and Ms. Shaw can get more information on this. Mr. DePaolo if the network support has gone away? Mr. Howe responded that Mr. Little brought that expertise with him so it has gone away in the budget. Mr. DePaolo asked about the internet dark fiber which also went to zero. Mr. Goodman responded that that was a 5-year term and last year was the final year of that expense. Mr. Goodman noted that the City presented their initial summary and the Fire and IAWTF effects on our budget. There were no more questions from the Board. TB Resolution 2021 -131: Setting a public hearing regarding the Town of Ithaca 2022 Preliminary Budget Whereas, the Town Supervisor filed his 2022 Tentative Budget with the Town Clerk on September 28, 2021, and Whereas the Town Clerk presented the Tentative Budget to the Town Board at its October 9, 2021 Budget Meeting and the Town Supervisor reviewed his highlights; now, therefore, be it Resolved that, the Town Board adopts the 2022 Tentative Budget as its 2022 Preliminary Budget and schedules a public hearing to be held on the meeting of October 18, 2021 which begins at 5:30 p.m. for the purpose of hearing public comments on the Town of Ithaca's 2022 Preliminary Budget. Moved: Eric Levine Seconded: Tee-Ann Hunter Vote: ayes— Levine, Leary, Hunter, Howe, Goodman and DePaolo TB Budget 2021-10-07 (Filed 2022-02-08) Pg. 4 4. Consent Agenda TB Resolution 2021 - 132: Consent Agenda Resolved, that the Town Board of the Town of Ithaca hereby approves and/or adopts the following Consent Agenda items: a. Approval of Town of Ithaca Abstract b. Approval of Bolton Point Abstract Moved: Tee-Ann Hunter Seconded: Eric Levine Vote: ayes—Hunter, Levine, Leary, Goodman, DePaolo and Howe TB Resolution 2021 - 132a: Town of Ithaca Abstract No. 19 for FY-2021 Resolved that the Town Board has audited the following vouchers as submitted, and hereby authorizes payment in the amounts indicated: VOUCHER NOS. 1114 - 1160 General Fund Town Wide 20,259.92 General Fund Part-Town 175.00 Highway Fund Town Wide DA 1,192.10 Highway Fund Part Town DB 6,142.46 Water Fund 41,442.94 Sewer Fund 401,936.85 Risk Retention Fund 81.00 Fire Protection Fund 38,810.08 TOTAL 510,404.35 TB Resolution 2021- 132b: Bolton Point Abstract Resolved that the Ithaca Town Board has audited the Southern Cayuga Lake Intermunicipal Water Commission (Bolton Point) vouchers as submitted and hereby approved payment of the following: Voucher Numbers: 420-466 Check Numbers: 19856-19902 Capital Impr/Reel Project $ 5,961.66 Operating Fund $ 88,181.34 TOTAL $ 94,143.00 Less Prepaid $ 23,294.11 TOTAL $ 70,848.89 TB Budget 2021-10-07 (Filed 2022-02-08) Pg. 5 5. Other- Mr. Howe noted that the South Hill Charrette will be on October 25,h 271" and the hope is that Board members participate, especially Monday and Wednesday evening and if members of the Planning Committee would like to meet individually or as a group with them, let Ms. Ritter know. He said he is very excited to see this begin. 6. Adjournment Meeting was adjourned at 6:21 p.m. upon motion by Mr. Howe, seconded by Mr. ePaolo; unanimous. ZSubmitt d by 6�4� Paulette Rosa, Town Clerk TB Budget 2021-10-07 (Filed 2022-02-08) f1p �6, TOWN OF ITHACA FISCAL YEAR 2022 BUDGET HIGHLIGHTS • The Ithaca Town Budget will decrease from $26,054,056 in 2021 to$25,160,580 in 2022, a decrease of$893,476 or 3.43%. • The budgeted total for Personnel Costs increases from $6,689,773 in 2021 to $6,791,742 in 2022, an increase of$101,969 or 1.52%. Personnel costs represent 26.99% of the Town's total 2022 budget. • Total for Personal Services (employee salaries and wages) increases from $4,465,798 in 2021 to $4,579,372 in 2022, an increase of$113,574 or 2.54%. • The budgeted total for Employee Benefits decreases from $2,223,975 in 2021 to$2,212,370 in 2022, a decrease of$11,605 or 0.5%. Total employee benefits in 2022 are calculated at 48.31% of the total for employee salaries and wages. - Payments for employee retirement are budgeted for $498,000 in 2022, a decrease of $99,000 from the$597,000 total budgeted in 2021. This is due to an employer rate decrease by the New York State Comptroller's Office. - Payments for employee health insurance are budgeted for $1,203,100 in 2022, an increase of $84,100 or 7.5% from the $1,119,000 total budgeted in 2021. Our health insurance rates increased by 5%, the additional increase is due to enrollment changes and retirements. • Capital Projects budgeted in 2022 will total $3,516,205; an increase of $276,205 or 8.5% over the $3,240,000 total budgeted in 2021. Capital projects represent 14.0% of the Town's total budget. - $1,390,000 is budgeted for water infrastructure improvements, $1,100,000 funded by new long- term debt and $290,000 funded by the benefit assessment charge. - $300,000 is budgeted for sewer and manhole rehabilitation in inlet valley and funded with current year revenues. - $450,000 is budgeted for Forest Home Pump Station rebuild and funded with Sewer fund balance. - $86,205 is budgeted for the Town's share of upgrades to the Stewart Park Pump State and is funded with reserves. - $30,000 is budgeted for storm water drainage improvements and funded with General fund balance. - $755,000 is budgeted for improvements to various Town roads and funded with property tax and CHIPS. - $90,000 is budgeted for Town parks and trails improvements funded with current year revenues. - $30,000 is budgeted for Forest Home Crosswalk funded with General fund balance. - $120,000 is budgeted for the Babcock Ridge Trail Design pending NYS grant approval. - $265,000 is budgeted for PWF improvements and is funded with General fund balance. • Contractual Services increase from $12,016,547 in 2021 to $12,332,556 in 2022; an increase of $316,009 or 2.6%. Contractual services represent 49.0% of the total budget for 2022. • Equipment/Capital Outlay decreases from $945,000 in 2021 to $869,500 in 2022; a decrease of $75,500 or 8.0%. Equipment/Capital Outlay represents 3.5% of the Town's total 2022 budget. - $749,500 is budgeted for the replacement of vehicles and other motor equipment in 2022. - $120,000 is budgeted for miscellaneous equipment valued over$5,000. 2 • Funding for community organizations/programs will total $397,016 in 2022. Of this total, $374,620 is budgeted in the General Town-wide Fund, with the remaining $22,396 budgeted in the Water Fund. The Town's contribution to City of Ithaca waterfront parks will increase from $56,000 to$58,000 for 2022. The Town's contribution to the Recreation Partnership will increase from $73,353 to $78,000 in 2022. 2022 funding for Joint Youth Commission programs is budgeted for$223,620. This assumes a 2% increase from the Town of Ithaca, Town of Caroline and Village of Lansing. And assumes use of$25,616 left over from 2020. The Town's contribution to the Tompkins County Public Library will remain at$15,000 in 2022. The amount budgeted for the Town's contribution for the county-wide Water Quality Monitoring Program will increase from $21,960 in 2021 to $22,396 in 2022. • The Town will transfer (re-designate) $100,000 from the unreserved fund balance in the General Town-wide Fund to the Parks, Recreation and Open Space Plan account. • The Town will transfer (re-designate) another $50,000 from the unreserved fund balance in the General Town-wide Fund to the new(2021)Tompkins County Housing Development Fund account in 2022. This will bring the balance to$100,000. There have not been any approved projects to date. • The 2022 Property Tax totals $8,603,934, a decrease of$124,366 or 1.43% from the prior year total of$8,728,300. The total 2022 Property Tax Levy (including Water/Sewer Benefit Assessment Fees) is$10,626,967 in 2022, a decrease of$45,923 or.43%from the prior year total of$10,672,890. This increase does comply with the property tax cap limit for 2022. Property taxes are the Town's largest revenue source, representing 44.2%of total budgeted revenues. • The property tax bill for a typical property in the Town of Ithaca will increase to$2,020.08 in 2022 from $1,994.78 in 2021, an increase of$25.30 or 1.27%. The typical property in the Town of Ithaca is a single-family residence with an assessed value of $300,000. The estimated property tax bill total shown below includes proposed water and sewer benefit assessment fees. PROPERTY TAX BILL FOR ATYPICAL PROPERTY IN THE TOWN OF ITHACA Major Components to Property Tax Bill 2017 2018 2019 2020 2021 2022 GENERAL TOWNWIDE PROPERTY TAX RATE $ 2.1649 $ 1.8698 $ 1.9197 $ 1.8792 $ 2.4021 $ 2.0629 HIGHWAY TOWNWIDE PROPERTY TAX RATE - 0.5439 0.5162 0.4952 0.4804 0.3819 HIGHWAY PART-TOWN PROPERTY TAX RATE 1.2452 1.3192 1.3027 1.2416 - 0.7141 FIRE PROTECTION DIST.PROPERTY TAX RATE 3.2488 2.8622 2.6535 2.5787 3.0001 2.7139 WATER BENEFIT ASSESSMENT CHARGE/UNIT 110.00 125.00 150.00 160.00 165.00 182.81 SEWER BENEFIT ASSESSMENT CHARGE/UNIT 25.00 25.00 45.00 60.00 65.00 75.41 TOTAL TOWN TAX ON TYPICAL PROP RTY* $2,132.67 $2126.54, $2,112.87 $2,078.42 $1;994.78 $2;026.08 TOWN TAX INCREASE FROM PRIOR YEAR $ (44.11) $ (4.13) $ (15.87) $ (34.25) $ (83.64) $ 25.30 PERCENTAGE INCREASE FROM PRIOR YEAR -1.70% -0.19% -0.75% -1.62% -4.02% 1.27% *ATypical Property in the�Town of Ithaca is a Single-Family Residen'cawith an Assessed,Value of$300,000." • The taxable assessed valuation of the Town of Ithaca increased from $1,665,237,301 in 2021 to $1,696,638,433 an increase of approx. 1.9% over the prior year. • Sales Tax collections are budgeted at$3,250,000, representing 13.5% of the Town's 2022 budgeted revenues. Sales tax collections for the Town having been strong in the 2Q of 2021, exceeding 2019 and 2020 levels. Mortgage tax collections are budgeted at $280,000 in 2022, a $30,000 increase over the $250,000 budgeted in 2021. 3 • Water rates are proposed to increase from $8.26/1000 gallons of consumption in 2021 to $8.51/1000 gallons of consumption in 2022, an increase of 3.0%. Sewer rents, billed on water consumption, are proposed to increase from $5.34/1000 gallons in 2021 to $5.50/1000 gallons in 2022, an increase of 3.0%. Based on these proposed rates,the quarterly minimum water and sewer charge would increase from $68.00 in 2021 to$70.05 in 2022, an increase of$2.05 or 3.00%. • The Water Benefit Assessment Fee will increase to $182.81/unit in 2022 from $165.00/unit in 2021, raising revenues of approx. $1,451,638 to be used to pay the annual debt service on the Town's outstanding long-term debt for water infrastructure improvements. The Sewer Benefit Assessment Fee will increase to$75.41/unit in 2022 from$65.00/unit in 2021, raising revenues of approx. $571,396 to be used to pay the annual debt service on the Town's share of outstanding long-term debt for improvements at the Ithaca Area Waste Water Treatment Facility. These rate increases are in part due to a review and adjustment of the water and sewer benefit units for Town properties that resulted in a decrease in the total number of units. • The fire protection contract payment to the Village of Cayuga Heights will decrease from $155,240 to $105,306 in 2022 due to their Fire Station bond being paid in full. The City of Ithaca contract is estimated to be $3,430,000 in 2022, a 2% increase over the 2021 contract of$3,360,000. • The streetlight purchase is anticipated to be finalized in October-November 2021, with the conversion to LEDs taking place shortly after(late 2021 or early 2022). The 2022 budget includes a conservative 50% reduction of electricity costs in the Lighting Districts and in General Fund for the at-large streetlights. The 2022 budget also includes $13,580 for a maintenance contract- $4,580 in the Light Districts and $9,000 included in General Fund for at large streetlights (based on number of lights). Since the light districts do not have sufficient funds to pay for the purchase and conversion of their lights, they are being assessed an enhanced tax rate over five years, with 2022 being year 3. • The Fund Balance Policy was approved on July 12, 2021 and identified a fund balance range of 30- 40% of budgeted expenditures for General Town-wide, General Part-town, Highway Town-wide and Highway Part-town funds. The policy outlined that fund balances in excess of 40% should be utilized within two budget cycles for one time expenses which do not result in recurring operating costs, or other one-time costs including early repayment of debt and the establishment or increase in legitimate restrictions (reserves)of fund balance. Tentative plan for the use of fund balance in 2022 and 2023: 4