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HomeMy WebLinkAboutBudget Committee Minutes 9-13-2021 1 BUDGET COMMITTEE Meeting Minutes - September 13, 2021 Committee present: Eric Levine - Chairman, Pat Leary Committee absent: Pam Bleiwas Staff present: Donna Shaw, Judy Drake, Marty Mosely, Joe Slater, Dan Thaete Others present: Rod Howe, Bill Goodman Meeting was called to order at: 12:10 p.m. by Chairman Levine. AGENDA ITEMS: • Review and approve meeting minutes from August 9, 2021. Moved: Pat Leary Second: Eric Levine Motion Passed • Update on status of 2021 Sales Tax Collections. For the first six months of 2021, collections of $1,852,234.69 are 27% higher than the same period in 2020, and 6% higher than 2019. If this upward trend continues, we could be $300,000 over the sales tax budget of $3,250,000 in 2021. • Continue Review of Tentative Ithaca Town Budget. The Committee reviewed the changes made between V1 and V2 of the 2022 Tentative Budget: • Retirement contribution rates went down resulting in savings in the major funds. Since we were making that change, we also went ahead and adjusted health insurance down from a 6% increase to 5% increase. • Highway Town-wide and Highway Part-Town property taxes decreased. • Franchise fees were reduced by 5% in General Part-Town Fund. • Water and Sewer benefit units have been updated by Engineering resulting in fewer units. Once final units are received from Assessment, the Water and Sewer Benefit rates will be increased to maintain the revenue needed to cover debt payments. • Final numbers are not yet available for the City Sewer and Fire contracts so we are using an estimate based on prior year. The Tentative Budget is $224,000 under the property tax cap. We are continuing to accumulate funds in the Light Districts to pay for the streetlight purchase and conversion to LED. It is anticipated that the purchase will take place this October, with the conversion to follow in 2022. We have spread this cost over five years in the light districts. We are hoping to pursue closing the light districts after this project is complete. Annual operating costs are anticipated to be greatly reduced and the districts are already small, with Clover Lane expending $283 in 2020. These costs could be absorbed with at-large streetlights in General Fund in the future. 2 Tentative Tax Rate Changes: The meeting was adjourned at 12:33 p.m. Next Meeting: Monday, October 11, 2021 at 12:00 pm, if needed. FUND 2020 2021 2022 GENERAL TOWNWIDE Property Tax Rate 1.879356 2.40206 2.062903 Property Tax Levy 3,036,000 4,000,000 3,500,000 HIGHWAY TOWNWIDE Property Tax Rate 0.4952219 0.480412 0.381932 Property Tax Levy 800,000 8,000,000 648,000 HIGHWAY PART-TOWN Property Tax Rate 1.25895 0 0.71412 Property Tax Levy 1,446,000 - 869,500 FIRE PROTECTION Property Tax Rate 2.57898 3.000128 2.85933 Property Tax Levy 3,216,000 3,875,000 3,720,000