HomeMy WebLinkAboutMeeting Minutes 1-29-20
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BUDGET COMMITTEE
Meeting Minutes - January 29, 2020
Committee present: Eric Levine - Chairman, Pat Leary, Pamela Bleiwas
Staff present: Mike Solvig, Donna Shaw, Judy Drake
Others present: Rod Howe, Bill Goodman
Meeting was called to order at 12:03 p.m.
AGENDA ITEMS:
• Review and approve September 23, 2019 meeting minutes.
Moved: Pam Bleiwas Second: Pat Leary Motion Passed
• Set 2020 Budget Committee meeting dates.
The consensus of the Committee was that meetings will be held at 12:00 p.m. on the third Monday
of the month. The February meeting will be on Monday, February 24 at 12:00 p.m.
• Discuss 2020 Budget Committee priorities.
The committee identified the following topics as priorities for 2020:
- Review Reserve Funds and Accounts.
- 2020 Bond Issue – includes $1.4M for the Public Works Facility Office Expansion.
- Review Town’s Long-Term Debt and Debt Service Schedules.
- Review / revision of the Town’s Investment Policy and Investing of Town Funds to increase
annual interest earnings.
- Review / revision of the Town’s Purchasing Policy.
- Consider hiring a full-time Town Attorney.
- Five-Year Financial Projections 2020 - 2024.
- Consideration / Recommendation for the Town's contribution to:
▪ Community housing fund managed by Tompkins County.
▪ Reconsider contribution to TCAT.
▪ Budget funds for the Town’s Bicentennial in 2021.
- Property Tax Cap for FY-2021 and recommend 2021 Property Tax Levy.
- Five-Year Capital Improvement Plan 2021 - 2025 and 2021 Capital Budget.
- 2021 Ithaca Town Budget.
- Establish Sidewalk and Park Districts.
• Discuss Town's Reserve Funds and Accounts.
The committee reviewed and discussed the report on the Town’s reserve funds and accounts as of
December 31, 2019. All funds and accounts are in very good condition as of year-end 2019. A copy
of this report is included with these minutes.
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• Update on Sales Tax and Mortgage Tax Collections through November 2019.
- Sales Tax Collections: The Committee reviewed the Sales Tax Collections Report for 2019.
Through November, Sales Tax collections are 5.5% over the same period in 2018. Sales Tax
collections through November 2019 total $3,241,786 against collections of $3,072,100 for the
same period in 2018. Mr. Solvig stated he had hoped we would have received the December
payment from Tompkins County before the meeting but had not as of yesterday.
If the December payment comes in around the same $316,700 amount as last year, total
collections for 2019 will finish at 5.0% over 2018. (The December Sales Tax payment was
received on January 30 in the amount of $355,376.48. Sales Tax collections for 2019 finished at
$3,597,162.42, which is 6.2% over 2018 total collections of $3,388,799.01.)
- Mortgage Tax Collections: Mortgage Tax collections for 2019 total $400,947 against collections
of $299,934 for 2018, an increase of 33.7% over the prior year.
• Prior and Current Year Adjustments to Sales Tax.
When the Comptroller’s Office reviewed the 2018 AUD, they informed us that our distribution of
sales tax collections was not “correct”. If property taxes are levied for either the General Part-Town
or Highway Part-Town Funds, then sales tax cannot be distributed to the General Townwide Fund.
While the Town has done this for the past 10 years and reported it to OSC each year, this is the first
time we have been notified. After extended discussions with OSC, we have made the following
adjustments:
- For 2018 we have transferred $488,799 from the General Townwide Fund to the General Part -
Town Fund.
- For 2019 we have transferred $353,839 from the General Townwide Fund to the Highway Part-
Town Fund.
- For 2020, the $750,000 budgeted to the General Townwide Fund will now be distributed to the
General Part-Town Fund and Highway Part-Town Fund.
While this has the effect of reducing the current fund balance in the General Townwide Fund and
increasing the fund balances in the General Part-Town Fund and Highway Part-Town Fund above
expected levels, this will be addressed and “corrected” with the 2021 Property Tax Levy.
• Update on Investment of Town Funds.
At December 31, 2019, out of $18,083,445 in available funds, $6,813,933 or 37.7% was invested in
Certificates of Deposit at an interest rate of 2.23%, maturing on May 15, 2020. $10,871,617 or 60.1%
was in a short-term investment account earning 1.39%. The remaining $397,895 or 2.2% was in various
Town savings and checking accounts, with savings accounts earning 0.2% interest.
In 2019, the Town earned $302,268 in interest income. The General Funds earned $103,919.64, the
Fire Protection Fund earned $54,001.45, and the Highway Funds earned $53,645.67.
Out of a total of $32,729,066 on deposit at Tompkins Trust this morning, $32,165,125 or 98.3% was
invested. $25,388,792 is in the Short-Term Investment account and $6,826,833 is in Certificates of
Deposit. The Short-Term Investment account includes $14,870,000 in property tax collections held
by the Town at this time. By the middle of February about half this money will be turned over to
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Tompkins County. The remainder stays with the Town.
Mr. Solvig stated that it may be difficult for the Town to reach the $300,000 level in interest earnings
again in 2020. Interest rates are slightly lower this year compared with 2019, and once the 2.23%
Certificates of Deposit mature on May 15, we do not know yet what our options will be for re-
investing those funds, although he expects the interest rate will be lower. He also expects that the
Town will have slightly less funds available to invest over 2020.
• Begin discussion on Reviewing Cash Management & Investment and Purchasing Policies.
Supervisor Howe has asked the Budget Committee to review these policies and recommend any
revisions to the Town Board.
• Capital Improvement Plan.
Mr. Solvig informed the members that Town Engineer Dan Thaete will be updating the Budget
Committee on a regular basis as the Five-Year Capital Improvement Plan is constructed.
• Other Items.
- The 2019 Town Court audit has been completed (early) at a cost of $2,511.
- Tompkins Trust will be converting to a new internet banking platform on February 3.
The meeting was adjourned at 12:57 p.m.
Next Meeting: Monday, February 24, 2020 at 12:00 p.m., Town Hall - Aurora Room