HomeMy WebLinkAboutBudget Committee Minutes 4-12-2021
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BUDGET COMMITTEE
Meeting Minutes - April 12, 2021
Committee present: Eric Levine, Pat Leary, Pamela Bleiwas
Staff present: Donna Shaw, Judy Drake, Marty Mosely
Others present: Rod Howe, Bill Goodman
Meeting was called to order by Chairman Levine at 12:04 p.m.
AGENDA ITEMS:
Review and approve minutes from January 11th and February 8th.
Moved: Eric Levine Second: Pamela Bleiwas Motion Passed.
Review 2013 Bond repayment/refunding options.
The 2013 Bond issue is callable on August 1, 2021. The total 2013 bond outstanding is $1,555,000
with a payment of $310,000 required this year. The prepayment amount is $1,245,000 with
$192,000 from General Fund, $469,000 from Highway Part-Town Fund, and $584,000 from Water
Fund. This bond issue had a variable interest rate of 2.0 – 4.0%. For the final seven years (2022-
2028) the interest rate is 3.0-4.0%. Redeeming the bonds early will result in $151,325 in interest
savings. It would also allow us to spend down fund balance in accordance with the draft Fund
Balance Policy. The Committee unanimously agreed to move the early redemption to the Town
Board for approval.
Discussion of the American Rescue Plan.
It is estimated that the Town will receive $2.16 million from the American Rescue Plan signed into
law by President Biden on March 11, 2021. This is intended to be shared with the Village of Cayuga
Heights. We are waiting for comprehensive guidance to be developed by the Treasury Department
but what we know so far:
1. Eligible Uses:
o Revenue Replacement- for revenue lost due to COVID-19.
Bonds 2021 Principal
Additional
Payoff
Outstanding Payment Payment
284,000$ 92,000$ 192,000$ 9,120$
567,000 98,000 469,000 62,840
704,000 120,000 584,000 79,365
TOTAL 1,555,000$ 310,000$ 1,245,000$ 151,325$
General
Highway Part-Town
Water
Fund
2013 Bond Issue
Total Interest
Savings
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o Covid-19 related expenditures or negative economic impacts of COVID-19.
o Premium pay for essential workers.
o Investments in water, sewer, and broadband infrastructure.
2. Funds must be spent by December 31, 2024.
3. Funds will be issued in 2 “tranches” – half this year and half next year.
4. Other state and federal funds will likely become available, so it is advised to carefully consider
the best use of these temporary funds to enhance budgetary and financial stability.
Supervisor Howe expects to have ongoing discussions with staff in Planning, Public Works and
Engineering regarding eligible infrastructure projects and bring recommendations forward to
Committees and the full Board.
Continue Discussion on Fund Balance Policy.
A draft Fund Balance Policy was discussed. The policy includes definitions of the different
classifications of fund balance (non-spendable, restricted, committed, assigned, and unassigned).
Restricted fund balance includes legally created reserves. After review of our reserves with Chris
Mott from Sciarabba Walker it was concluded that our Open Space Plan would likely be considered
a legal reserve. Consultation with Susan Brock will be required to make sure. Making use of Capital
Reserves will be key to making our Fund Balance Policy work. The unassigned fund balance range
in the draft policy is 30-40% of total adopted expenditures for the General Fund. There was
discussion about how to use any excess fund balance over the 40%. To stabilize the tax rate, we
would use any excess for one-time expenditures, early repayment of debt, or the establishment of
a legitimate reserve fund for future capital projects.
Report on January – February Sales Tax.
January and February 2021 sales tax collections of $462,265 are 9% below 2020 collections of
$508,285 for the same period.
Review 1Q 2021 Budget Amendments.
The Committee reviewed twelve routine budget transfers totaling $36,880 and one budget
amendment for $5,000 for a Triad Foundation grant to Pleasant Grove Cemetary.
Other Items.
The 2020 Audit began March 16, 2021 and the final report is expected end of May.
The meeting was adjourned at 12:42 p.m.
Next Meeting: Monday, May 10, 2021 at 12:00 pm, Town Hall - Aurora Room - Zoom