HomeMy WebLinkAboutAgenda 02-14-2022TOWN OF ITHACA
BUDGET COMMITTEE
Monday, February 14, 2022 - 12:00 p.m.
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AGENDA
• Review and approve meeting minutes from September 13, 2021 and January 10, 2022.
• Update/discussion on projected Fund Balance for 2021.
• Review of Town’s Long-Term Debt and Initial Discussion on possible 2022 Bond Issue.
• Energy Audit Recommendations.
• Review Common Property Tax Exemptions.
• Other Items
Next Meeting: Monday, March 14, 2022 - 12:00 p.m.
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BUDGET COMMITTEE
Draft 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.
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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
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BUDGET COMMITTEE
Meeting Minutes - January 10, 2022
Committee present: Eric Levine - Chairman, Pam Bleiwas, Rod Howe
Staff present: Donna Shaw, Judy Drake, Joe Slater, Marty Mosely
Meeting was called to order at 12:01 p.m.
AGENDA ITEMS:
Set 2022 Budget Committee meeting dates.
The consensus of the Committee was that meetings will be held at 12:00 p.m. on the second
Monday of the month. The February meeting will be on Monday, February 14 at 12:00 p.m.
Discuss 2022 Budget Committee priorities.
The committee identified the following topics as priorities for 2022:
- Review Reserve Funds and Accounts.
- 2022 Bond Issue – $1.7M for Water Main Improvements.
- Review 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.
- Review voluntary payments to organizations.
- Pursue upgrading financial and budget software.
- Five-Year Financial Projections 2022 - 2026.
- Property Tax Cap for FY-2023 and recommend 2023 Property Tax Levy.
- Five-Year Capital Improvement Plan 2023 - 2027 and 2023 Capital Budget.
- 2023 Ithaca Town Budget.
- Impacts of Green New Deal.
- ARPA Funding.
Discuss Town's Reserve Funds and Accounts.
The committee reviewed and discussed the report on the Town’s reserve funds and accounts as of
December 31, 2021. All funds and accounts are in very good condition as of year-end 2021.
There was some discussion regarding the Pine Tree Wildlife Preserve and what those funds could
be used for. Staff will research which parcel this relates to and the potential uses.
The SJC Account in Sewer Fund includes $1,496,465 designated to pay part of the sewer facility debt
in the event of future economic hardships. The current debt payment is $495,000 and is covered
with benefit assessment fees. It’s therefore unlikely we would ever need that much set aside. It
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was decided to designate $1,000,000 for Sewer Capital Improvements (either joint projects or Town
infrastructure).
A copy of this report is attached.
Update on Sales Tax Collections through November 2021.
- Sales Tax Collections: The Committee reviewed the Sales Tax Collections Report for 2021.
Through November, Sales Tax collections are 109.1% of budget. Sales Tax collections through
November 2021 total $3,546,147 compared to collections of $3,280,847 for the same period in
2020, which is an increase of 22.3%. This is also a 9.4% increase over 2019 collections for the
same period.
Update on 2021 Interest Revenue.
Interest earnings continue to be weak and will be under budget in 2021.
Review, Discuss and revise the Town Investment Policy and Procurement Policy.
Will continue to review in the coming months.
Other Items.
Mr. Howe reported that there is a meeting with Mr. Franklin from Assessment regarding different
tax exemptions that the Town can opt into. More information to come at a future meeting.
The meeting was adjourned at 12:40 p.m.
Next Meeting: Monday, February 14, 2022 at 12:00 p.m., Town Hall - Aurora Room or Zoom
General
Townwide
General Part
Town
Highway
Townwide
Highway Part
Town
Fund Equity Beginning Detail
Fund Balance Beginning @ 1/1/2021 3,855,828 2,123,322 652,518 5,264,702
Prior Period Adj - Retiree Health Liability 368,302 189,973 140,517
Add: Revenue & Other Sources (as of 02/07/2022)7,720,937 1,113,307 832,345 1,120,222
Deduct: Expenses & Other Uses (as of 02/07/2022)(5,262,152) (1,600,604) (591,432) (2,899,597)
Fund Balance Ending @ 12/31/2021 6,682,915 1,825,998 893,431 3,625,844
Less: Amount of Additional Fund Balance
Appropriated and Assigned in the
Adopted 2022 Budget - 914 (575,482) (39,125) - -
Encumbrances (433,545) (20,914) (253,156) (32,569)
Less: Reserved Portion of Fund Balance
Non Spendable:
Prepaids - 806 (139,262) (59,240) (12,336) (53,840)
Restricted:
Preserve Maintenance Reserve - 870 (41,652)
Land Stewardship - 870 (10,095)
Saunders Park donation - 870 (44,150)
Parks & Open Space - 878 (724,763)
Committed:
Gen'l Benefit Purposes - 867 (154,398) (77,199) (80,708)
Cemetary Maintenance - 867 (4,501)
Equipment (399,477)
Maple Ave. Rehab (153,000)
Assigned:
Assigned Unappropriated (R Fund)(149,719)
Unassigned Fund Balance 12/31/2021 4,405,348 1,629,520 627,939 2,906,250
2022 Budgeted Expenditures 5,622,070 1,912,977 732,591 2,880,379
Fund Balance % of Budgeted Expenditures 78.36%85.18%85.71%100.90%
Fund Balance Over 40%2,156,520.33 864,328.92 334,902.60 1,754,098.70
Potential 2022 Uses
2015 Bond Payoff (461,000.00)
Open Space Plan Contribution (reserve)(100,000.00)
Potential 2023 Uses
Transfer from B to DB for Maple Ave project (246,571.00) 246,571.00
CIP - Roads (Maple Ave & Judd Falls?)(740,000.00)
CIP - PWF Fueling Station Construction (481,370.00)
1,575,150.33 617,757.92 334,902.60 799,669.70
2021 Fund Balance - Projected 2/9/22
Bonds Principal Interest Bonds Principal Interest Bonds Principal Interest Bonds Principal Interest
Outstanding Payment Payment Outstanding Payment Payment Outstanding Payment Payment Outstanding Payment Payment
2013 8/1/2021 -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
2014-A n/a 280,000$ 95,000$ 5,284$ -$ -$ -$ -$ -$ -$ 280,000$ 95,000$ 5,284$
2014-B 12/15/2024 1,695,000$ 205,000$ 46,900$ -$ -$ -$ 502,000$ 70,000$ 13,706$ 1,193,000$ 135,000$ 33,194$
2015 10/15/2022 1,890,000$ 190,000$ 40,612$ -$ -$ -$ 513,000$ 52,000$ 11,021$ 1,377,000$ 138,000$ 29,591$
2018 12/1/2025 3,465,000$ 240,000$ 103,604$ -$ -$ -$ -$ -$ -$ 3,465,000$ 240,000$ 103,604$
2020-A 8/15/2029 3,170,000$ 170,000$ 104,950$ 1,196,220$ 64,150$ 39,604$ -$ -$ -$ 1,973,780$ 105,850$ 65,346$
2020-B 8/15/2028 1,335,000$ 165,000$ 55,500$ -$ -$ -$ -$ -$ -$ 1,335,000$ 165,000$ 55,500$
TOTAL 11,835,000$ 1,065,000$ 356,850$ 1,196,220$ 64,150$ 39,604$ 1,015,000$ 122,000$ 24,727$ 9,623,780$ 878,850$ 292,519$
Bonds 2022 Principal
Additional
Payoff
Outstanding Payment Payment 2023 2024 2025 2026 2027 2028 2029 2030
2015 Road Improvement 513,000 52,000 461,000 47,944 53,000 54,000 56,000 57,000 58,000 60,000 61,000 62,000
Sapsucker Woods Tank 961,000 96,000 865,000 90,020 99,000 102,000 104,000 107,000 110,000 112,000 114,000 117,000
Coddington Road ph 2 416,000 42,000 374,000 38,986 43,000 44,000 45,000 46,000 47,000 48,000 50,000 51,000
1,377,000$ 138,000$ 1,239,000$ 129,006$ 142,000$ 146,000$ 149,000$ 153,000$ 157,000$ 160,000$ 164,000$ 168,000$
TOTAL 1,890,000$ 190,000$ 1,700,000$ 176,950$ 195,000$ 200,000$ 205,000$ 210,000$ 215,000$ 220,000$ 225,000$ 230,000$
Outstanding Debt by Fund
January 1, 2022
Year
Issued
Total General Highway Part-Town Water
First Call Date
Water
Fund
2015 Bond Issue
Total Interest
Savings
Yearly Principal Budget Savings
Highway Part-Town