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Home My WebLink AboutMeeting Minutes 5-11-20 1 BUDGET COMMITTEE Meeting Minutes - May 11, 2020 Committee present: Eric Levine, Pat Leary, Pamela Bleiwas Staff present: Mike Solvig, Donna Shaw, Judy Drake, Lisa Carrier-Titti, Dan Thaete, Rich Tenkate and Joe Talbut Others present: Rod Howe, Bill Goodman Meeting was called to order by Chairman Levine at 12:10 p.m. AGENDA ITEMS: • Review and approve April 13, 2020 meeting minutes. The meeting minutes from April 13 were not ready and will be reviewed at the next meeting. • Discussion of Contribution to Community Housing Development Fund. The Committee reviewed the Community Housing Development Fund: Overview and Request submitted by the County. The CHDF is a partnership between Tompkins County, City of Ithaca, and Cornell University to encourage the construction and rehabilitation of housing units that remain affordable to buyers or renters. The majority of units serve those with earnings below 80% of the area median income (AMI). Since inception in 2009, almost 4.7 million has been awarded towards projects totaling 654 units. Past projects in the Town of Ithaca include Holly Creek Townhomes. The current annual funding is $100,000 from the City of Ithaca, $100,000 from Tompkins County, and $200,000 from Cornell University. The request is for the Town to contribute $50,000 in 2021 to allow the CHDF to fund more near-term projects. The Town would be eligible to appoint one associate member, with voting privileges, to the Program Oversight Committee for the program year in which the contribution is made. Clarification was requested on whether this is expected to be a one-time contribution or annual. • Initial Review of 2021-2025 Capital Improvement Plan and 2021 Capital Budget. The Committee reviewed a preliminary CIP schedule received from Public Works. Capital projects scheduled for 2021 include the following: - WATER TANKS - No Water Tank replacement or improvement projects are scheduled for 2021. - WATER MAINS - Total cost for Water Main Improvements for 2021 is estimated at $1,760,000 and includes the following projects: - Cliff/Trumansburg/Hopkins Water Mains $ 750,000 - Southwoods/Coddington PRV’s 950,000 - West Hill THM Study 60,000 West Hill THM Study would be financed from current year revenues/fund balance. 2 - SANITARY SEWER - The amount of $300,000 will be budgeted in 2021 for sewer and manhole rehabilitation. The Lift Station Review is expected to be completed for $60,000. Both projects will be financed from current year revenues/fund balance. - STORM DRAINAGE - The amount of $250,000 will be budgeted in 2021 for drainage improvements, which will be financed from current year revenues/fund balance. - ROAD IMPROVEMENTS - Total cost for scheduled 2021 Road Improvement Program is estimated at $750,000 and includes the following projects: - Seven Mile Drive Overlay $ 250,000 - Elm Street Rebuild 700,000 This work will be financed with current year property tax revenue and fund balance. - SIDEWALKS – The amount of $375,000 will be budgeted in 2021 for the Forest Home S-Curve Sidewalk. Discussions will continue about whether to create a sidewalk district to fund the project or use current year revenues/fund balance. - TOWN FACILITIES – The amount of $100,000 will be budgeted for the new Fueling State Design, which will be funded with new long-term debt. The amount of $40,000 will be budgeted for the demolition of the newly acquired Welch House, to be paid from current year revenues/fund balance. - PARKS & TRAILS – Improvements to Town Parks & Trails for 2021 is budgeted at $250,000 and includes the following projects: - Trail Improvements/Overlay $ 100,000 - Forest Home Walkway 150,000 Discussions will continue about whether to create a park district to fund the Forest Home Walkway or use current year revenues/fund balance. Total estimated costs for the CIP for Fiscal Years 2021 - 2025 are presented on the schedule shown below: INFRASTRUCTURE 2021 2022 2023 2024 2025 TOTAL WATER INFRASTRUCTURE 1,760,000$ 1,475,000$ 1,750,000$ 1,050,000$ 3,200,000$ 9,235,000$ SEWER INFRASTRUCTURE 360,000 370,000 300,000 300,000 300,000 1,630,000 STORMWATER DRAINAGE 250,000 250,000 100,000 100,000 100,000 800,000 ROAD IMPROVEMENTS 750,000 1,600,000 475,000 800,000 800,000 4,425,000 SIDEWALK IMPROVEMENTS 375,000 500,000 - - - 875,000 TOWN FACILITIES 140,000 650,000 400,000 - - 1,190,000 PARKS & TRAILS 250,000 150,000 100,000 - 500,000 TOTAL ANNUAL COST 3,885,000$ 4,995,000$ 3,125,000$ 2,250,000$ 4,400,000$ 18,655,000$ FUNDING SOURCE: - Current Year Revenue 2,085,000$ 2,870,000$ 975,000$ 1,200,000$ 1,200,000$ 8,330,000$ - Grants & Donations - - - - - - - New Long-Term Debt 1,800,000 2,125,000 2,150,000 1,050,000 3,200,000 10,325,000 TOTAL FUNDING 3,885,000$ 4,995,000$ 3,125,000$ 2,250,000$ 4,400,000$ 18,655,000$ Of the $18,655,000 total estimated project costs, $8,330,000 would be financed with current year revenues, $0 with grants and donations, and the remaining $10,325,000 by the issuance of new long-term debt. 3 • Continued Discussion of COVID-19 Implications on the 2020 Ithaca Town Budget. The total cost of staff wages for “other” time (not working) is $275,000 to date. • Update on April 2020 Interest Earnings and January – April Year-to-Date Totals. Interest earnings for April totaled $23,584.87. For the First four months of 2020 the Town earned $126,162.57 in interest from savings accounts and certificates of deposit. This represents approximately 42.5% of the interest earnings budgeted for 2020. The three 14-month certificates of deposit are set to mature on May 15th. We initially invested $6,700,000 at 2.23%. The current rate offered by Tompkins Trust Company is 0.70% for 12-months. It will be decided over the next few weeks how much to reinvest in certificates of deposit and how much to keep on hand to fund current cash flow needs of the 96B Sidewalk and PW Addition projects. We expect to go out for bonds (for last years Water projects and the PW addition) by mid- summer. The 96B Sidewalk Project is 80% funded by a federal grant administered by NYS DOT. This is a cost reimbursement grant and it is unclear how quickly reimbursement will be made under current economic conditions. Mr. Levine stated that while the offered interest rate seems very low, interest rates are not expected to increase significantly in the near future. Waiting and hoping for interest rates to increase could actually result in the Town losing revenue. After discussion, the recommendation of the Committee was to open a new 12-month CD at 0.70%, investing an amount similar to the three maturing CD’s. The exact amount to be invested will be left to Supervisor Howe’s and Mr. Solvig’s discretion. • Other Items. - Audit of 2019 Financial Statements: Field work was completed in April. The draft report is expected in June. The meeting was adjourned at 12:56 p.m. Next Meeting: Monday, June 8, 2020 at 12:00 pm, Town Hall - Aurora Room (and/or Zoom)