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HomeMy WebLinkAboutAgenda 01-10-2022 TOWN OF ITHACA BUDGET COMMITTEE Monday, January 10, 2022 - 12:00 p.m. Town Hall - Aurora Conference Room Join Zoom Meeting https://us06web.zoom.us/j/89655185089 Meeting ID: 896 5518 5089 AGENDA • Set 2022 Budget Committee meeting dates. • Discuss 2022 Budget Committee priorities. • Review and Discuss Town's Reserve Funds/Accounts as of December 31, 2021. - Parks, Recreation and Open Space Plan Reserve Account - General Benefit Reserve Account - Inlet Valley Cemetery Account - Land Preserve Maintenance Account - Land Stewardship Account - Highway Equipment Reserve Account - Risk Retention Fund - Sewer Fund - SJC Account • Update on 2021 Sales Tax and Mortgage Tax collections. • Update on 2021 Interest Revenue. • Review, Discuss and Revise as appropriate the Town Investment Policy and Procurement Policy. • Other Items Next Meeting: Monday, February 8, 2021 - 12:00 p.m. Town of Ithaca Budget Committee 2022 Meeting Schedule Budget Committee meetings are held monthly, scheduled for the second Monday of the month. Meetings will begin at 12:00 noon and will be held at Town Hall in the Aurora Room and/or via Zoom. January 10: Set meeting schedule for 2022. Discuss Committee priorities for 2022. Review and discuss Town's Reserve Funds/Accounts. Update on 2021 Sales Tax collections. Begin discussion on the Investment Policy and Procurement Policy. February 14: Report on 2021 Sales Tax & Mortgage Tax Collections. Preliminary Financial Report for the Year Ended December 31, 2021. Initial discussion on possible 2022 Bond Issue. Begin discussion on Town’s Procurement Policy. March 14: Financial Report for the Year Ended December 31, 2021. Review Preliminary Five- Year Financial Projections for 2022 - 2026. Continue discussion on Investment of Town Funds and Investment Policy. April 11: Continue discussion on possible 2022 Bond Issue (if needed). Review of Long-Term Debt and Debt Service schedules. Continue discussion on Purchasing Policy (if needed). May 9: Review Five-Year Capital Improvement Plan for 2021 - 2025. Review and discuss the Capital Budget Process. Discuss creating Park/Sidewalk Districts for 2022. Review Preliminary Five-Year Financial Projections for 2022 - 2026. June 13: Discuss Property Tax Cap Override for FY-2023. Review of Five-Year Capital Improvement Plan for 2022 - 2026. July 11: Continue review of Five-Year Financial Projections for 2022-2026. Discuss Property Tax Levy, Tax Rates and Property Tax Cap for FY-2023. Discuss possible increase to wage scale for FY-2023. August 8: Discuss 2022 Water & Sewer Rates. Discuss 2022 Water & Sewer Benefit Fees. Initial review of Tentative 2022 Budget. September 12: Continue review of Tentative 2022 Budget. Thursday, OCTOBER 6 - 5:30 PM: Town Board Budget Meeting October 11: If Needed – no meeting scheduled. November: No Meeting December: No Meeting DRAFT Town of Ithaca Budget Committee 2022 Budget Committee Priorities - Review Reserve Funds and Accounts. - 2022 Bond Issue - $1.7M for Water Main Replacements/Improvements. - Review of the Town’s Long-Term Debt and Debt Service Schedules. - Consideration / Recommendation for the Town's contribution to:  Reconsider contribution to TCAT. - Review / Revision of the Town’s Investment Policy and Investing of Town Funds. - Review / Revision of the Town’s Procurement Policy. - Five-Year Financial Projections 2022 - 2026. - Property Tax Cap for FY-2022 and recommend 2022 Property Tax Levy. - Five-Year Capital Improvement Plan 2022 - 2026 and 2022 Capital Budget. - 2022 Ithaca Town Budget. - Impacts of Green New Deal. - ARPA Funding 1 TOWN OF ITHACA RESERVE FUNDS AND ACCOUNTS PARK, RECREATION AND OPEN SPACE PLAN RESERVE ACCOUNT - The Fund Balance of the General Townwide Fund includes funds designated for the purpose of future park development and the purchasing of development rights, as outlined in the Town’s Park, Recreation and Open Space Plan, as adopted on December 12, 1997. As of 1/01/21, the balance of this account was $969,047. During FY-2021 this account was increased by a $100,000 re-designation of fund balance, plus $2,961 in interest income. During FY- 2021 there was a $269,245 contribution to the Gateway Trail project and the purchase of an agricultural easement on approximately 52 acres on Bostwick Road for $78,000. The balance of this account as of 12/31/21 was $724,763. At year-end, the State owed the Town $137,250 reimbursement for the Town’s 2018 and 2019 purchases of the Babcock property under a NYS-DEC grant. This reimbursement is now expected in 2022. This account is funded by the Town Board making an annual re-designation of a portion of the Fund Balance of the General Townwide Fund from unreserved to reserved. Additional income is received from interest earnings. An additional $100,000 in unreserved fund balance was designated as reserved for this purpose by the Town Board in January 2022. No maximum amount has been established for this reserve. It was recommended that the question of a maximum designated amount be revisited when the balance reaches $1,000,000. GENERAL BENEFIT RESERVE ACCOUNT - The fund balances in the General Townwide Fund, General Part- Town Fund, Highway Part-Town Fund, Water Fund, and Sewer Fund includes reserves established for managing unanticipated increases in employee fringe benefit costs (e.g. NYS Employee Retirement System, Health Insurance). The aggregate balance of this reserve as of 12/31/21 was $350,001 plus $902.52 in interest on a CD maturing in July 2022. The balance by fund is as follows: Savings Certificates Accrued Balance as Account of Deposit Interest of 12/31/2021 General Townwide Fund 1$ 154,000$ 397$ 154,398$ General Part-Town Fund - 77,000 199 77,199 Highway Part-Town Fund - 80,500 208 80,708 Water Fund - 21,000 54 21,054 Sewer Fund - 17,500 45 17,545 Total as of 12/31/2020 1$ 350,000$ 903$ 350,904$ General Benefit Reserve In 2015 the Town Board established the maximum of this reserve be set at $350,000. Balance in excess of the limit at year-end to be returned to the unreserved fund equity of the host funds. INLET VALLEY CEMETERY ACCOUNT - In 2017 the Inlet Valley Cemetery Fund was closed and the remaining assets transferred to the General Townwide Fund, to be used in maintaining the Inlet Valley Cemetery. For the year ended 12/31/21, the balance of this account totaled $4,501. Future income for this reserve will be limited to interest earnings. No maximum amount was established for this account. PRESERVE MAINTENANCE ACCOUNT - The Fund Balance of the General Townwide Fund also includes funds designated for the maintenance of the Pine Tree Wildlife Preserve, donated to the Town by a local family in 2013. In conjunction with the donation of the land, the amount of $40,000 was also donated to provide for future maintenance of the preserve. As of 1/01/21, the balance of this account was $41,429. During FY-2021 this account was increased by $223 in interest income. There were no expenditures from this account during FY-2021. As of 12/31/21 the balance of this account totaled $41,652. Future income will be limited to interest earnings. As this account is expected to decrease over time, no maximum amount was established. 2 LAND STEWARDSHIP ACCOUNT - In 2014 the Town purchased the development rights to the Indian Creek Farm with financial assistance through a State of New York grant. This grant included $10,000 to be held by the Town, designated for the future stewardship of the Indian Creek Farm lands. As of 1/01/21, the balance of this account was $10,041. Revenue for FY-2021 totaled $54 in interest income. For the year ended 12/31/21, the balance of this account totaled $10,095. Future income for this reserve will be limited to interest earnings. As this account is also expected to decrease over time, no maximum amount was established. HIGHWAY EQUIPMENT RESERVE ACCOUNT - The Fund Balance of the Highway Part-Town Fund includes funds designated for the purchase/replacement of highway equipment and machinery. The balance in this account as of 1/01/21 was $397,420. Revenue for FY-2021 totaled $2,057 in interest income. Balance of this account as of 12/31/21 was $399,477. This account is funded by sale of surplus machinery and equipment, with additional income from interest earnings. In 2015 the Town Board established the maximum of this account be set at $250,000. In 2018 the Town Board increased the maximum to $400,000. Balance in excess of the limit at year-end to be returned to the unreserved fund equity of the Highway Part-Town Fund. RISK RETENTION FUND - This fund is used to account for expenditures for 1) direct employee health and wellness expenditures, including training, work-related emergency room and clinic health care visits, and 2) repairs to equipment and facilities not covered by insurance, or until reimbursement from insurance is received. Income for this fund is derived from annual budgeted inter-fund transfers, plus insurance recoveries and interest income. Fund balance as of 12/31/21 was $154,325. The Town Board has established the maximum fund balance of the Risk Retention Fund be set at $150,000. Balance in excess of the limit at year-end to be returned to the unreserved fund equity of the contributing Funds. SJC ACCOUNT IN SEWER FUND - The Fund Balance of the Sewer Fund includes funds designated for SJC purposes. In 2015 these purposes were defined by the Town Board as 1) to pay for expenditures related to the improvement of jointly-owned sewer interceptor lines, and 2) to pay the Town’s share of the City of Ithaca’s bonded debt issued to pay for Ithaca Area Wastewater Treatment Facility (IAWWTF) improvements. The balance in this account as of 1/1/21 totaled $1,553,491. Revenue for FY-2021 totaled $6,202 in interest income, resulting in a 12/31/21 balance totaling $1,559,693. 1) Jointly-owned Sewer Interceptor Lines: Interceptor sewers convey sewage from the Town through the City of Ithaca for treatment at the IAWWTF. These interceptor sewers are jointly owned with the City, and the Town is responsible for a portion of the maintenance and replacement costs of these lines. The Town of Ithaca and the City of Ithaca must initially approve all capital projects and related expenditures before any construction can take place. With the replacement of the State Street Interceptor completed in 2018, the last of five projects originally agreed to between the Town and City, $63,228 of the SJC account balance remained for this purpose. The 2022 Budget includes $86,205 for the Stewart Park Pump Station Rehabilitation which will utilize the balance of this fund. 2) IAWWTF Bonded Debt: In 2015, the Town Board determined it would be prudent for the Town to designate funds to pay part of this debt in the event of future economic hardships. As of 12/31/21, the amount available in the SJC account for this purpose was $1,496,465. General General Highway Townwide Part-Town Part-Town TOTAL Liability Month A1120 B1120 DB1120 Month Collected 1,750,000.00$ 750,000.00$ 750,000.00$ 3,250,000.00$ January April 130,295.19$ 55,840.79$ 55,840.79$ 241,976.77$ February April 118,616.15 50,835.50 50,835.50 220,287.15 March April 211,185.84 90,508.22 90,508.22 392,202.28 April May 151,752.12 65,036.62 65,036.62 281,825.36 May June 153,101.85 65,615.08 65,615.08 284,332.00 June July 232,405.99 99,602.57 99,602.57 431,611.13 July August 169,420.97 72,608.98 72,608.98 314,638.93 August October 168,277.19 72,118.80 72,118.80 312,514.79 September November 254,272.64 108,973.98 108,973.99 472,220.61 October November 157,308.11 67,417.76 67,417.76 292,143.63 November December 162,827.74 69,783.32 69,783.32 302,394.38 December January - - - - TOTAL COLLECTIONS:1,909,463.79$ 818,341.61$ 818,341.62$ 3,546,147.03$ TOTAL - 2021 BUDGET:1,750,000.00$ 750,000.00$ 750,000.00$ 3,250,000.00$ % of 2021 Budget Collected:109.1%109.1%109.1%109.1% COMPARISON PERIOD 2018 2019 2020 2021 TO PRIOR YEAR January 249,058.27$ 269,396.32$ 266,756.00$ 241,976.77$ 90.71% February 226,911.56 225,039.78 241,529.18 220,287.15 91.21% March 292,631.96 310,009.67 294,969.05 392,202.28 132.96% 1st Quarter 768,601.79$ 804,445.77$ 803,254.23$ 854,466.20$ 106.38% April 260,601.06$ 256,261.09$ 193,919.94$ 281,825.36 145.33% May 240,448.25 268,201.64 181,781.59 284,332.00 156.41% June 354,024.40 418,808.26 279,411.53 431,611.13 154.47% 2nd Quarter 855,073.71$ 943,270.99$ 655,113.06$ 997,768.49$ 152.30% First 6 Months 1,623,675.50$ 1,747,716.76$ 1,458,367.29$ 1,852,234.69$ 127.01% July 279,704.84$ 295,250.32$ 254,742.19$ 314,638.93$ 123.51% August 271,252.79 287,577.63 248,307.40 312,514.79 125.86% September 369,610.27 335,180.68 437,518.95 472,220.61 107.93% 3rd Quarter 920,567.90$ 918,008.63$ 940,568.54$ 1,099,374.33$ 116.88% First 9 Months 2,544,243.40$ 2,665,725.39$ 2,398,935.83$ 2,951,609.02$ 123.04% October 255,095.27$ 273,032.77$ 269,331.84$ 292,143.63$ 108.47% November 272,761.48 303,027.78 231,274.86 302,394.38 130.75% December 316,698.86 355,376.48 381,304.49 - 0.00% 4th Quarter 844,555.61$ 931,437.03$ 881,911.19$ 594,538.01$ ANNUAL TOTAL 3,388,799.01$ 3,597,162.42$ 3,280,847.02$ 3,546,147.03$ 108.09% TOWN OF ITHACA SALES TAX COLLECTIONS For the Year Ending December 31, 2021 2018 - 2021 COMPARISON OF SALES TAX COLLECTIONS