HomeMy WebLinkAboutMeeting Minutes 2-24-20
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BUDGET COMMITTEE
Meeting Minutes - February 24, 2020
Committee present: Eric Levine - Chairman, Pat Leary, Pamela Bleiwas
Staff present: Mike Solvig, Donna Shaw, Judy Drake
Others present: Rod Howe
Meeting was called to order by Chairman Levine at 12:02 p.m.
AGENDA ITEMS:
• Review and approve January 29, 2020 meeting minutes.
Moved: Pamela Bleiwas Second: Pat Leary Motion Passed.
• Report on Sales Tax and Mortgage Tax Collections for 2019.
- Sales Tax Collections: Collections in 2019 totaled $3,597,162, an increase of $208,363 or 6.2%
over the 2018 total of $3,388,799. 2019 also sets a new historical high for sales tax collections,
surpassing the previous historical high total received in 2018. Sales tax revenues are distributed
between the General Part-Town Fund and Highway Part-Town Fund.
Actual Actual Actual Actual Actual Actual
2014 2015 2016 2017 2018 2019
Sales Tax 3,135,084$ 3,067,336$ 3,003,943$ 3,184,969$ 3,388,799$ 3,597,162$
Mortgage Tax 329,274 415,760 286,227 279,791 299,934 400,947
Tax Collections
- Mortgage Tax - Mortgage taxes increased $101,013 or 33.7%, from collections totaling
$299,934 in 2018 to $400,947 in 2019. Mortgage tax revenues are assigned to the General
Townwide Fund.
• Preliminary Financial Report for the Year Ended December 31, 2019.
The Committee reviewed the Preliminary Financial Report for the Year Ended December 31, 2019.
The financial results for Fiscal Year 2019 were generally positive, with fund balances increasing in
most funds. Fund balances decreased in the Fire Protection Fund, Debt Service Fund and Capital
Project Funds. For all funds, combined revenues and other sources of $23,358,224 exceeded
combined expenditures and other uses of $20,784,997.
For the major funds, results of 2019 operations were as follows:
- GENERAL TOWNWIDE FUND - Fund balance increased by $192,951, with revenues of $4,985,657
exceeding expenditures of $4,792,706. Ending fund balance totaled $3,966,213, which includes
reserves of $858,458 in the Parks, Recreation and Open Space Plan account, $168,508 for the
General Benefit Reserve, $40,907 in the Preserve Maintenance account, $9,918 in the Land
Stewardship account, and $4,468 for the maintenance of the Inlet Valley Cemetery. The
unreserved fund balance of $2,883,999 represents 52.3% of 2020 budgeted appropriations.
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- GENERAL PART-TOWN FUND - With revenues of $1,862,296 exceeding expenditures of $1,726,560,
fund balance increased by $135,736. Revenues exceeded budget due to increased receipts from
sales tax collections. Expenses were significantly under budget for contractual services. Year-
end fund balance of $1,848,503 includes $70,676 for the General Benefit Reserve. The
unreserved fund balance of $1,777,827 represents 96.8% of 2020 budgeted appropriations.
- HIGHWAY TOWNWIDE FUND - This fund was established with the 2018 Ithaca Town Budget to
account for those highway activities to be funded on a town-wide basis. With revenues of
$829,406 exceeding expenditures of $641,677, year-end fund balance totaled $430,854, all of
which is unreserved. The unreserved fund balance represents 53.7% of 2020 budgeted
appropriations.
- HIGHWAY PART-TOWN FUND - With revenues of $3,915,995 exceeding expenditures of $2,851,457,
year-end fund balance increased by $1,064,268. Revenues were higher than expected, helped
by adjusted sales tax collections and state aid (CHIPS). Ending fund balance of $3,734,597
includes $370,892 for the Highway Equipment account and $80,793 for the General Benefit
Reserve. Unreserved fund balance of $3,283,156 is 115.2% of 2020 budgeted appropriations.
- WATER FUND - With revenues of $4,947,012 exceeding expenditures totaling $4,086,510 fund
equity increased by $860,501. The estimated ending fund equity of $7,121,299 includes
$24,253 for the General Benefit Reserve. The unreserved fund equity is estimated at
$3,358,578, representing 67.5% of 2020 budgeted appropriations.
- SEWER FUND - With revenues of $2,926,203 exceeding total expenditures of $2,464,773 fund
equity increased by $461,430. The estimated ending fund equity of $5,880,269 includes
$12,255 for the General Benefit Reserve and $1,537,396 for the SJC Projects account. The
unreserved fund equity is estimated at $1,323,794 represents 42.4% of appropriations
budgeted for 2020.
- FIRE PROTECTION DISTRICT FUND - With revenues of $3,236,678 falling short of expenditures of
$3,438,404, fund balance will decrease by $201,726 to total $1,808,624 at year-end. The year-
end fund balance represents 51.4% of 2020 budgeted appropriations.
The reserve funds and accounts were reviewed by the Budget Committee at the January meeting.
• Initial Discussion of 2020 Bond Issue.
The Town is scheduled to issue $2,350,000 in new long-term debt this year to finance 2019 and
2020 Water Main Replacement projects and $1,400,000 to finance the Public Works Facility Office
Expansion project.
Amount Amount Issuance
Budgeted Authorized Costs
Public Works Facility Office Exp. 1,400,000$ 1,400,000$ 14,650$
Winthrop Drive Water Main Replmnt.625,000 700,000 7,300
Muriel Street Water Main Replmnt.700,000 630,000 6,550
Winston - Salem Water Main Replmnts 875,000 1,000,000 10,500
Total - 2020 Bond Issue 3,600,000$ 3,730,000$ 39,000$
2020 Public Improvement Bonds
The estimated issuance costs of $39,000 represent 1.05% of the expected bond proceeds.
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Amount
Bond Attorney - Orrick, Herrington & Sutcliffe 15,000.00$
Bond Advisors - Fiscal Advisors & Marketing, Inc.9,000.00
Bond Rating - Moody's Investors Services 12,500.00
Printing & Mailing - Premier Printing Services 2,500.00
Total Estimated Bond Issuance Costs:39,000.00$
Estimated Bond Issuance Costs
We anticipate these bonds will be issued for a 15-year term. The Committee’s discussion focused on
whether to pay for the Public Works Facility Office Expansion project by using fund balance or issuing
new long-term debt. The preference of the Committee is to proceed with paying for the PWF project
with fund balance and defer issuing bonds until 2021 if conditions remain favorable.
• Continue discussion on Investment of Town Funds.
In January the Town earned $25,340 in interest income. As of January 31, out of $35,751,208 in
available funds, $6,826,833 or 19.1% was invested in Certificates of Deposit at an interest rate of 2.23%,
maturing on May 15, 2020. $27,948,352 or 78.2% was in a Short-Term Investment account earning
1.39%. The Short-Term Investment account includes $17,000,000 in property tax collections held by
the Town at this time. The remaining $972,354 or 2.7% was in various Town savings and checking
accounts, with savings accounts earning 0.2% interest.
Mr. Solvig wanted to again remind the Committee members 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 less funds available to invest over 2020.
• Other Items.
- Audit of 2019 Financial Statements: Auditors from Sciarabba Walker & Co. will be here on
March 5 & 6 for preliminary field work. Field work is scheduled for April 20 - 24.
- Committee Meeting Schedule: Pat Leary asked the Committee to consider moving the meeting
day from the third Monday of the month. After a short discussion, the Committee changed the
meeting day to the second Monday of the month. Due to the short amount of time to March
9, it was decided that no meeting will be held in March. The next meeting of the Budget
Committee will be held on Monday, April 13.
The meeting was adjourned at 12:59 p.m.
Next Meeting: Monday, April 13, 2020 at 12:00 pm, Town Hall - Aurora Room