HomeMy WebLinkAboutMeeting Minutes 8-10-20
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BUDGET COMMITTEE
Meeting Minutes - August 10, 2020
Committee present: Eric Levine - Chairman, Pat Leary, Pam Bleiwas
Staff present: Mike Solvig, Donna Shaw, Judy Drake, Dan Thaete, Joe Slater, Marty Mosely
Others present: Rod Howe, Bill Goodman
Meeting was called to order at: 12:02 p.m. by Chairman Levine.
AGENDA ITEMS:
• Review and approve meeting minutes from June 8, 2020.
Moved: Pam Bleiwas Second: Pat Leary Motion Passed
• Review and Discuss Tentative 2021 Ithaca Town Budget.
The Committee reviewed and discussed the summaries of revenues and expenditures for all funds
for the Tentative 2021 Ithaca Town Budget.
• Total expenditures will decrease 2.5%, from $$26,266,830 in 2020 to $25,614,038 in 2021.
Expenditures will decrease in the General Townwide Fund by 15.2%, Highway Part-Town Fund
by 3.1%; Debt Service Fund by 72.6%; and Special Districts by 16.6%. Expenditures will increase
in the General Part-Town Fund by 6.4%; Highway Townwide Fund by 28.5%; Water Fund by
21.1%; Sewer Fund by 3.3%; Risk Retention Fund by 108.8%; and Fire Protection District by 3.4%.
• Total for Personal Services (employee salaries and wages) increases from $4,400,453 in 2020 to
$4,465,798 in 2021, an increase of $66,345 or 1.5%.
- The budgeted total for Employee Benefits decreases from $2,272,275 in 2020 to $2,223,975 in
2021, a decrease of $48,300 or 2.1%. Total employee benefits in 2021 are calculated at 49.8%
of the total for employee salaries and wages.
- Total revenues decrease 4.7%, from $25,698,890 in 2020 to $24,480,349 in 2021. Revenues will
decrease in the General Townwide Fund by 16.2%; Highway Part-Town Fund by 32.4%; Debt
Service Fund by 72.6%; and Special Districts by 16.6%. Revenues will increase in the General
Part-Town Fund by 15.2%; Highway Townwide Fund by 1.1%; Water Fund by 17.40%; Sewer
Fund by 3.8%; Risk Retention Fund by 108.8%; and Fire Protection Fund by 19.7%.
• Sales Tax collections are budgeted at $3,250,000, representing 13.3% of the Town’s 2021
budgeted revenues. Sales tax collections for the Town were weak in 2020 due to the 2nd Quarter
business shutdowns in response to the COVID-19 pandemic, with collections falling short of
both 2018 and 2019. Sales tax collections for 2020 are projected to total approx. $3,190,000.
• Review and Discuss Tentative 2021 Capital Budget.
The Committee reviewed and discussed the 5-Year Capital Improvement Plan schedule and
summary of vehicles and other motor equipment to be replaced in 2021.
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Capital Projects budgeted in 2021 will total $2,940,000; a decrease of $245,000 or 7.62% from the
$3,215,000 total budgeted in 2020. Capital projects represent 11.60% of the Town’s total budget.
- $1,700,000 is budgeted for water infrastructure improvements, to be funded by issuing new
long-term debt.
- $300,000 is budgeted for sewer and manhole rehabilitation.
- $250,000 is budgeted for storm water drainage improvements.
- $450,000 is budgeted for improvements to various Town roads.
- $240,000 is budgeted for Town parks and trails improvements.
Equipment/Capital Outlay increases from $607,000 in 2020 to $945,000 in 2021; an increase of
$338,000 or 55.7%. Equipment/Capital Outlay represents 3.69% of the Town’s total 2021 budget.
- $778,000 is budgeted for the replacement of vehicles and other motor equipment in 2021.
- $150,000 is budgeted to replace the Municity parcel management and building permit
software which will no longer be supported beginning in 2023.
Except for the $1,700,000 in water infrastructure improvements to be financed by issuing new
long-term debt, the remaining $ 1,230,000will be paid with current year revenues or fund balance.
• Initial Discussion on Property Tax Levy, Tax Rates and Tax Cap Calculation for FY-2021.
Mr. Solvig reviewed the proposed 2021 property tax levy, tax rates, and tax cap calculation. The
2021 Property Tax Levy totals $8,720,500, an increase of $171,430 or 2.01% over the prior year
total of $8,549,070. This increase does comply with the property tax cap calculation for 2021 .
Property taxes are the Town’s largest revenue source, representing 35.62% of total budgeted
revenues.
The property tax bill for a typical property in the Town of Ithaca will decrease to $1,992.58 in 2021
from $2,078.42 in 2020, a decrease of $85.84 or 4.13%. The typical property in the Town of Ithaca
is a single-family residence with an assessed value of $300,000. The estimated property tax bill
total shown below includes proposed water and sewer benefit assessment fees
2016 2017 2018 2019 2020 2021
1.9033$ 2.1649$ 1.8698$ 1.9197$ 1.8792$ 2.3963$
- - 0.5439 0.5162 0.4952 0.4793
1.5388 1.2452 1.3192 1.3027 1.2416 -
3.3971 3.2488 2.8622 2.6535 2.5787 2.9997
100.00 110.00 125.00 150.00 160.00 165.00
25.00 25.00 25.00 45.00 60.00 65.00
2,176.79$ 2,132.67$ 2,128.54$ 2,112.67$ 2,078.42$ 1,992.58$
90.62$ (44.11)$ (4.13)$ (15.87)$ (34.25)$ (85.84)$
4.34%-1.70%-0.19%-0.75%-1.62%-4.13%
TOWN TAX INCREASE FROM PRIOR YEAR
PERCENTAGE INCREASE FROM PRIOR YEAR
* A Typical Property in the Town of Ithaca is a Single-Family Residence with an Assessed Value of $300,000.
HIGHWAY PART-TOWN PROPERTY TAX R ATE
FIRE PROTECTION D IST. PROPERTY TAX R ATE
WATER BENEFIT ASSESSMENT CHARGE / UNIT
SEWER BENEFIT ASSESSMENT CHARGE / UNIT
TOTAL TOWN TAX ON TYPICAL PROPERTY *
Major Components to Property Tax Bill
GENERAL TOWNWIDE PROPERTY TAX RATE
HIGHWAY TOWNWIDE PROPERTY TAX R ATE
PROPERTY TAX BILL FOR A TYPICAL PROPERTY IN THE TOWN OF ITHACA
The property tax levy as proposed is $91,058 under the property tax cap for FY-2021.
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• Discuss Cost of Living Adjustment (COLA) for FY-2021.
Ms. Drake informed this Committee that the Personnel and Organization Committee has approved
a 2.75% increase for non-union staff to coincide with the Public Works contract. There being no
questions or concerns, the proposal will go to the Town Board for final approval.
• Update on Status of 2020 Sales Tax Collections.
For the first six months of 2020, collections are at 84.6% for the same period in 2019. Sales Tax
collections through June 2019 totaled $1,747,717 against 2020 collections of $1,478,468. Mr. Solvig
reported he ran some projections through the end of 2020 and, assuming the pandemic remains in
check and does not necessitate another business shutdown, it is possible that total collections could
reach $3,190,000. This would be about $407,000 below 2019 total collections of $3,597,000.
• Update on Bolton Point 2021 Water Rate.
Mr. Solvig informed the Committee that Bolton Point has approved a 3.5% increase in their water
rate for 2021.
• Initial Discussion of proposed Water Rates and Sewer Rents for FY-2021.
Water Rates: Based on a 3.5% increase, the Bolton Point rate will increase from $5.41/1000 gallons
in 2020 to $5.60/1000 gallons in 2021. For the Town, our portion, used to cover our operating costs,
would increase from $2.56/1000 gallons in 2020 to $2.66/1000 gallons in 2021. The total amount
charged to Town water customers would be $8.26/1000 gallons in 2021, an increase of 3.6% over
the $7.97/1000 gallons charged in 2020.
MINIMUM
CHARGE
New Rate Structure :
2021 5.60$ 2.66$ 8.26$ 5.34$ 68.00$
2020 5.41$ 2.56$ 7.97$ 5.16$ 65.65$
2019 5.15$ 2.44$ 7.59$ 4.91$ 62.50$
2018 4.96$ 2.35$ 7.31$ 4.81$ 60.60$
Old Rate Structure :
2018 4.53$ 2.15$ 6.68$ 4.40$ 102.00$
2017 4.44 2.11 6.55 4.31 99.98
2016 4.44 2.11 6.55 4.31 99.98
2015 4.35 2.03 6.38 4.27 97.96
2021 0.19$ 0.10$ 0.29$ 0.18$ 2.35$
INCREASE 3.5%3.9%3.6%3.5%3.6%
WATER RATES AND SEWER RENTS
PER 1,000 GALLONS OF WATER CONSUMPTION
TOWN OF ITHACA
YEAR BOLTON TOWN
POINT OPERATING WATER SEWER
Sewer Rents: The amount charged to Town customers is proposed to increase to $5.34/1000
gallons in 2021, an increase of 3.5% over the $5.16/1000 gallons charged in 2020.
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Minimum Quarterly Bill: The quarterly water & sewer bill is based on a minimum usage of 5,000
gallons of water and 5,000 gallons of sewage. The minimum quarterly bill will increase from $65.65
in 2020 to $68.00 in 2021, an increase of $2.35 or 3.6%. (see schedule on previous page)
• Initial Discussion of proposed Water and Sewer Benefit Assessment Fees for FY-2021.
The Water Benefit Assessment Fee will increase to $165.00/unit in 2021 from $160.00/unit in 2020,
raising revenues of approx. $1,373,315 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 $65.00/unit in 2021 from $60.00/unit in 2020,
raising revenues of approx. $519,166 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.
• Other Items.
Mr. Solvig informed the Committee that the Moody’s rating call is scheduled for tomorrow.
The meeting was adjourned at 12:58 p.m.
Next Meeting: Monday, September 14, 2020 at 12:00 pm, Town Hall - Aurora Room