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HomeMy WebLinkAboutAgenda 05-09-2022TOWN OF ITHACA BUDGET COMMITTEE Monday, May 9, 2022 - 12:00 p.m. Join Zoom Meeting https://us06web.zoom.us/j/5063713554 AGENDA • Review and approve meeting minutes from April 11, 2022. • Review and approve Electronic Banking Policy. • Review and approve Debt Management Policy. • Review January – March Sales Tax Receipts. • Review and approve 1Q 2022 Budget Amendments. • Further Discussion of Property Tax Exemptions • Other Items Next Meeting: Monday, June 13, 2022 - 12:00 p.m. 1 BUDGET COMMITTEE Meeting Minutes - April 11, 2022 Committee present: Eric Levine Pam Bleiwas, Rod Howe Staff present: Donna Shaw, Judy Drake, Debby Kelley, Marty Mosely, Joe Slater, Dan Thaete Meeting was called to order at 12:02 p.m. AGENDA ITEMS:  Review and approve meeting minutes from March 21, 2022. Moved: Pam Bleiwas Second: Rod Howe Motion Passed  Review and approve creating an investment account with NYCLASS. The committee discussed materials received regarding New York Cooperative Liquid Assets Securities System (NYCLASS). NYCLASS is a local government investment pool that allows municipalities to pool funds to collectively earn interest on investments. Investment holdings are collateralized as required by New York State General Municipal Law. Deposits are liquid and participants may move money on any business day. There is never a penalty for withdrawals. Accounts can be set up to parallel our own internal funds. Interest rates tend to be better than our local banks due to professional investment expertise provided by Public Trust and economies of scale relative to purchasing power of the pooled funds. It is believed that the Village of Cayuga Heights currently participates in the fund and will be contacted for feedback based on their experience. The Committee was in favor of moving this investment option to the Town Board for consideration. Our investment policy would probably need to be amended.  Discuss implementation of automatic payments for water and sewer bills. Staff have received numerous requests from customers in the past for automatic payments of their water and sewer bills. Williamson doesn’t have the capability to accomplish this. After a conversation with the Trust Company, it was determined that we could handle this through our Treasury Management ACH processing. This would require setting up an ACH template much like we payroll direct deposits, only opposite, with the Town account being credited and customer accounts being debited. Customers would need to sign an authorization form that includes bank information and contact details. This would require a fair amount of administrative work to get set up but should be manageable to maintain (especially considering there would be less check payments to process). The Committee discussed contacting customers if their quarterly bill was significantly higher than normal before initiating the ACH.  Discuss utilizing consolidated account codes for final budget. Sample budget information was shared with Committee regarding consolidating account codes for final budget adoption. This is an effort to limit the amount of budget amendments required by giving Managers the flexibility to move budget amounts within there .100 and .400 accounts. It was explained that we would still maintain the account detail currently used in our accounting system. We would also continue to provide this detail for the tentative and preliminary budgets. However, when it was time to adopt and publish the final budget, we would eliminate the detail. 2  Other Items. There was some discussion regarding upcoming changes to the open meeting law and whether committee meetings could continue virtually. It was also reported that Fiscal Advisors has advised that there would not be any savings realized by refunding the 2015 water bond. We would still pay off the road improvement portion of that bond later this year. The meeting was adjourned at 12:30 p.m. Next Meeting: Monday, May 9, 2022 at 12:00 p.m., Town Hall - Aurora Room or Zoom Town of Ithaca Electronic Banking Policy The Town Board recognizes the use of various electronic banking transactions as a faster, easier, and more efficient substitute for paper transactions. Electronic banking uses computer and electronic technology to streamline the processing and recording of receipts and disbursements, while reducing the cost of processing these transactions. Receipts, disbursements, and transfers in proper circumstances can be processed via electronic funds transfer (EFT) services, whether transferring funds from a savings to a checking account at the same bank or making a payment to a vendor’s bank across the country. Internal controls, such as written policies and procedures, authorizations, segregation of duties and monitoring, however, are still important in the new technological world. The Town Board shall authorize the Finance and Human Resource Offices to engage in electronic banking in accordance with all applicable laws and regulations including General Municipal Law Section 5-a authorizing the use of electronic or wire transfers and in conformity with the guidelines established by this policy. The Town Board also recognizes that most banking institutions no longer provide cancelled paper checks to their customers, but instead offer an electronic image obtained online or on a CD. As such, the Town Board authorizes the acceptance of these electronic images in lieu of cancelled checks as required by statute. Scope Electronic banking activities will be used for, but not limited, to the following: 1. Online banking services (reviewing account balances, retrieving bank statements, downloading copies of cancelled checks, making stop payment orders, etc.) 2. Check fraud prevention services (Positive Pay – Tompkins Community Bank) 3. Electronic depositing of checks received 4. Pre-authorized debit payments 5. ACH vendor payments 6. ACH payroll direct deposit 7. ACH Water & Sewer automatic payments 8. EFT or wire transfers 9. Electronic Federal Tax Payment System (EFTPS) 10. Electronic State Tax Payment System (Prompt Tax) Online Banking Services are recognized as standard practice and procedure for maintaining an effective cash management program. Access to any of the Town’s online bank accounts will be managed by the Finance Officer to allow other users restricted access as necessary for banking functions as needed. The Finance Officer will utilize a separate, limited access account for daily online banking. The super user/admin account will be reserved for account administration purposes. (Examples of daily online banking functions include monitoring account balances, positive pay functions, retrieving copies of cancelled checks, etc. Examples of account administration would be adding authorized users, adding/deleting permissions, adding wire beneficiaries, etc). Check Fraud Prevention Services – To help protect against the threat of check fraud, a file of all Accounts Payable cash disbursement payments made by paper checks will be uploaded to the bank’s positive pay system. This process provides details about checks the Town has written and compares that information to checks being processed to the bank for payment. The Town is notified by the bank of any exceptions by 8:00 a.m., these exceptions will be decisioned by the Finance Officer or Bookkeeper by noon. The benefits include reducing the risk of check fraud by providing the Town with the ability to monitor and control checks presented against any Town account so only authorized items are paid. Electronic Funds Transfers (EFT’s) and wire payments can only be initiated by the Finance Officer, Human Resource Manager, or Bookkeeper. All EFT’s and wire payments require dual authorization by either the Human Resource Manager, Bookkeeper, or Finance Officer. An email and text will be sent by the bank notifying the Human Resource Manager, Bookkeeper and Finance Officer that there is a payment pending approval. Someone (other than the initiator) must log in to Treasury Management before 3:00 p.m. to authorize the payment. The recording of such transactions will be captured manually by the Bookkeeper using journal entries. Dual approvals are required for any transaction with an end recipient not a Town of Ithaca account or in a different financial institution. Electronic wire transfers to foreign banks are not enabled in Treasury Management. ACH Vendor Payments are authorized by the Finance Officer or the Human Resource Officer after standard payment process recording through the abstract cycle and auditing process. Recording of ACH vendor payments will be the responsibility of the Bookkeeper through the standard posting of cash disbursements journal(s). All payments made through this process are subject to the same claims audit process as exists currently with paper drawn checks. Releases of payments are made by the Finance Officer only after the completion of the approval and claims audit process. Pre-authorized ACH Payments are authorized by the Human Resource Manager and/or Bookkeeper and are restricted to payroll related deduction payments to authorized third party administrators of the Town. Any such ACH payments must be taken from the payroll bank account. All ACH payments require dual authorization by either the Human Resource Manager, Bookkeeper, or Finance Officer. Recording of such transactions will be by the Bookkeeper using journal entries. Revenue Collection 1. Electronic Deposit of Checks by means of utilizing a secure remote deposit device (provided by the bank) for checks received are authorized as delegated by the Finance Officer. The use of a remote deposit capture device helps improve security, efficiency, and cost effectiveness of making deposits. Recording of such deposits will be the responsibility of the Bookkeeper through the standard posting of the cash receipts journal. The Clerk’s office will provide a monthly cash receipt report with the Supervisor’s payment. 2. Electronic payments received from customers are acceptable and will be recorded by the Bookkeeper through the regular cash receipts transaction journal. Automatic ACH payments for Water and Sewer invoices will be authorized in writing by the customer. Safeguards and Best Practices All banking transactions for the Town will be conducted on a Town computer with a secure internet connection. Town computers employ two-factor authentication and password complexity requirements. Employees will:  Type the bank’s website address into the internet browser’s address bar every time because email and search engine links may not be secure.  Check that the session is secure before undertaking any online banking.  Log out of all banking websites and close the browser window.  Erase the web browser cache, temporary internet files, cookies and history after each online banking session so that if the system is compromised, that information will not be on the system to be stolen by an attacker or malware program.  Never access the bank’s website from a public computer, unprotected mobile device or public WIFI (i.e. Starbucks, hotel, etc).  Always use the Town’s virtual private network (VPN) when accessing the bank while working offsite. Monitoring The Finance Officer is responsible for implementing adequate internal controls for each of the electronic banking methods utilized. An effective internal control system includes, but is not limited to, segregation of duties, proper authorization, monitoring bank accounts daily for unauthorized or suspicious activity, and adequate documentation for all electronic transactions. 1 Town of Ithaca Debt Management Policy I. SCOPE Long term debt is an effective way to finance capital improvements by matching the term of the debt with the useful life of the asset being financed. Properly managed debt provides flexibility in current and future operating budgets and provides the Town of Ithaca (the “Town”) with the long-term assets required to deliver services or other resources to the public. The Town recognizes that effective debt management practices require a comprehensive Debt Management Policy (“Policy”) that details the use of capital and capital debt to support the services provided to its residents. II. PURPOSE The following policy seeks to position the Town’s debt plan amongst the best practices in municipal finance, as well as to underscore the Town’s commitment to curtail borrowing in the near term to improve its bond rating and preserve the highest credit rating possible with the allocation of resources to the programs and services provided by the Town. III. OUTSTANDING AND MATURING OBLIGATIONS Nothing in this policy shall be deemed to affect or impair any outstanding obligations of the Town or any obligations issued to renew such outstanding obligations. Failure to comply with any goal or limit established by this policy shall not of itself be deemed to invalidate any obligations. IV. SHORT-TERM OPERATIONAL BORROWINGS The Town is authorized under the New York State Local Finance Law (“LFL) to borrow in anticipation of the receipt of taxes or other forms of revenue (primarily in the form of State or Federal aid). Such borrowings take the form of short-term notes and provide working capital to balance timing differences between revenue and expenditures. Short-term operational borrowings include budget, deficit, tax, and revenue anticipation notes. Under normal circumstances, tax anticipation notes shall be fully paid on or before December 31 of each year. Revenue anticipation notes shall be paid in accordance with limitations of the LFL. The Town shall not use short-term borrowing to finance operating needs except in the case of financial necessity, as determined by the Finance Officer with approval by the Town Supervisor and Town Board. 2 V. PERIODS OF PROBABLE USEFULNESS The LFL assigns a period of probable usefulness (“PPU”) to each capital purpose that can be financed, which determines the maximum period over which assets may be financed. The Finance Officer shall ensure the final maturity date for any long-term debt will not exceed the expected life of the capital improvement financed. VI. METHOD OF DEBT STRUCTURING The LFL permits bonds to be amortized using the 50 Percent Rule or a level or declining debt structure. The Town shall select the amortization method that produces debt service payments compatible with the Town’s needs and ability to repay its existing and forecasted debt obligations. The Finance Officer shall confer with the Town’s Municipal Advisor and/or Bond Counsel relating to the structuring of debt obligations. When appropriate, by recommendation of the Town Finance Officer, the Town may consider lease financing or other alterative types of financing as permitted by the LFL. VII. METHOD OF SALE The Town Finance Officer shall confer with the Town’s Municipal Advisor and/or Bond Counsel to determine the most appropriate method of sale based upon various issuance specific factors. If a negotiated sale process is deemed appropriate, the Underwriter(s) shall be selected through a competitive process. The Town Finance Officer may request the Town’s Municipal Advisor and/or Bond Counsel to assist in this process, analyze proposals and provide recommendations with respect to the selection(s). VIII. DEBT LIMIT Pursuant to the State Constitution, the total amount of the Town’s outstanding debt may not exceed seven per centum (7%) of the five-year average taxable full valuation of property assessments. This is the Constitutional Debt Limit (“CDL”). The Town’s water debt is excluded from the calculation of the CDL. Self-supporting debt, including sewer debt, paid from non-real property tax revenue may also be excluded in full or part if authorized by the Office of the State Comptrollers (“OSC”). If applicable, the Finance Officer should apply for all self-supporting debt exclusions to maintain sufficient debt capacity. The Finance Officer shall ensure that the net general obligation debt of the Town will not exceed the constitutional debt limit. 3 IX. CAPITAL IMPROVEMENT PLAN AND THE CAPITAL BUDGET The Town’s Engineering Department annually prepares and submits a five-year Capital Improvement Plan (“CIP”) to the Town Board for its consideration and approval. The Town considers this Debt Management Policy to be an integral part of the CIP. Therefore, the CIP submitted to Town Board should include a prospective impact statement and analysis with respect to proposed capital budget improvements financed with debt obligations. The impact analysis should include an annual overlay of proposed and existing debt obligations and an evaluation of applicable debt ratios. To assist with debt service assumptions, the Finance Officer may enlist the support of the Town’s Municipal Advisor and/or Bond Counsel. X. INVESTMENT OF DEBT PROCEEDS The Town Finance Officer is required to invest proceeds of obligations in accordance with the Town’s then current Investment Policy adopted in accordance with Section 39 of the General Municipal Law, Section 11 of the General Municipal Law, and in accordance with applicable Federal tax requirements. New York State law permits the Town to co-mingle debt proceeds with operating moneys under a pooled investment program. However, for disbursement purposes debt proceeds are required to be deposited in one or more demand accounts separate from other funds of the Town. Accounting records shall be maintained to ensure that debt proceeds are spent for the purpose(s) for which they are authorized. XI. TIMELY REPAYMENT OF DEBT OBLIGATIONS The Town must be certain that debt payments are made timely and in full, without impairing its cash flow and subsequently its ability to provide essential governmental service. Accordingly, the Finance Officer shall monitor the Town’s cash flow position and the annual operating budget to ensure the full and timely repayment of all debt principal and interest due that fiscal year. XII. REFUNDING OF OUTSTANDING LONG-TERM DEBT OBLIGATIONS The Town Finance Officer, with the assistance of the Town’s Municipal Advisor, shall periodically review the Town’s outstanding long-term debt to identify refunding opportunities. If a refunding opportunity is identified, the Town Finance Officer shall work in conjunction with the Town’s Municipal Advisor to determine if the potential benefits of the refunding outweigh the risks or costs of delaying the refunding. XIII. CREDIT RATING STRATEGIES The Town’s credit rating has a significant impact on its ability to access the capital markets, the issuance costs associated with a debt sale, and the interest rate that is obtained on its debt obligations. As such, the Town is committed to maintaining a credit rating strategy. However, the rating strategies must not compromise the delivery of basic services to city residents. The Town Finance Officer will be responsible for maintaining relationships with rating agencies assigning 4 ratings to the Town’s debt. The Town Finance Officer will confer with the Town’s Municipal Advisor regarding rating agency methodologies and the Town’s credit rating strategy. Changes to current methodologies could impact future fiscal decisions. XIV. CONTINUING DISCLOSURE REQUIREMENTS The Town Finance Officer shall work in conjunction with the Town’s Municipal Advisor in order to ensure compliance with secondary market information and disclosures made pursuant to Rule 15- 2c-12 of the Securities Exchange Act of 1934. XV. ANNUAL REVIEW & AMENDMENTS On an annual basis, or as deemed necessary, the Town Board shall review the Debt Management Policy and shall approve policy revisions, if any, by formal resolution. General Highway Part-Town Part-Town TOTAL Liability Month B1120 DB1120 Month Collected 1,618,000.00$ 1,632,000.00$ 3,250,000.00$ 0.4978 0.5022 1.0000 January April 174,047.04$ 175,553.00$ 349,600.04$ February April 149,584.22 150,878.52 300,462.74 March April 197,517.17 199,226.22 396,743.39 April May - - - May June - - - June July - - - July August - - - August October - - - September November - - - October November - - - November December - - - December January - TOTAL COLLECTIONS:521,148.43$ 525,657.74$ 1,046,806.17$ TOTAL - 2022 BUDGET:1,618,000.00$ 1,632,000.00$ 3,250,000.00$ % of 2021 Budget Collected:32.2%32.2%32.2% COMPARISON PERIOD 2019 2020 2021 2022 TO PRIOR YEAR January 269,396.32$ 266,756.00$ 241,976.77$ 349,600.04$ 144.48% February 225,039.78 241,529.18 220,287.15 300,462.74 136.40% March 310,009.67 294,969.05 392,202.28 396,743.39 101.16% 1st Quarter 804,445.77$ 803,254.23$ 854,466.20$ 1,046,806.17$ 122.51% April 256,261.09$ 193,919.94$ 281,825.36$ - 0.00% May 268,201.64 181,781.59 284,332.00 - 0.00% June 418,808.26 279,411.53 431,611.13 - 0.00% 2nd Quarter 943,270.99$ 655,113.06$ 997,768.49$ -$ 0.00% First 6 Months 1,747,716.76$ 1,458,367.29$ 1,852,234.69$ 1,046,806.17$ 56.52% July 295,250.32$ 254,742.19$ 314,638.93$ - 0.00% August 287,577.63 248,307.40 312,514.79 - 0.00% September 335,180.68 437,518.95 472,220.61 - 0.00% 3rd Quarter 918,008.63$ 940,568.54$ 1,099,374.33$ -$ 0.00% First 9 Months 2,665,725.39$ 2,398,935.83$ 2,951,609.02$ 1,046,806.17$ 35.47% October 273,032.77$ 269,331.84$ 292,143.63$ - 0.00% November 303,027.78 231,274.86 302,394.38 - 0.00% December 355,376.48 381,304.49 436,657.63 - 0.00% 4th Quarter 931,437.03$ 881,911.19$ 1,031,195.64$ - ANNUAL TOTAL 3,597,162.42$ 3,280,847.02$ 3,982,804.66$ 1,046,806.17 26.28% COMPARISON PERIOD 2019 2020 2021 2022 TO PRIOR YEAR April/May 202,754.85$ 100,391.42$ 158,060.48$ 134,965.47$ 85.39% October/November 198,192.03 196,709.44 224,517.51 100.00% ANNUAL TOTAL 400,946.88$ 297,100.86$ 382,577.99$ 100.00% TOWN OF ITHACA SALES TAX COLLECTIONS For the Year Ending December 31, 2022 2019 - 2022 COMPARISON OF SALES TAX COLLECTIONS Mortgage Tax Collections Overview Local government sales tax collections in New York State totaled nearly $5.2 billion in the first calendar quarter (January- March) of 2022, an increase of 21.1 percent, or $901 million, compared to the same quarter last year.1 (See Figure 1.) New York City collections this past quarter exceeded pre-pandemic levels for the second straight quarter after remaining below pre-pandemic levels for most of 2020 and 2021. Counties and cities in the rest of the State had rebounded more quickly and are now well above pre-pandemic levels.2 (See Figure 2.) One contributor to local sales tax strength in the January-March period appears to have been high inflation, especially in gasoline, new and used motor vehicles, and household energy (i.e., oil, propane, electricity, etc.). Nationally, the rising cost of goods and services hit a 40-year high of 8.5 percent in March compared to a year ago.3 Just as individuals and private industry face higher costs due to inflation, so do local governments. Generally speaking, the sales tax is sensitive to changing economic conditions and often grows with inflation helping to at least partially offset higher costs for local governments. Other sources of local revenue are not as directly affected by the economy, and the property tax – the largest source of revenue for most local governments – is capped at 2 percent growth annually.4 Thomas P. DiNapoli, State Comptroller OFFICE OF THE NEW YORK STATE COMPTROLLER Division of Local Government and School Accountability April 2022 Local Sales Tax Collections Up 21 Percent in the First Quarter of 2022 Inflation Contributing to Overall Growth Figure 1 Percentage Change in Statewide Local Sales Tax Collections Source: New York State Department of Taxation and Finance (Tax and Finance), with calculations by the Office of the State Comptroller (OSC). Notes: Includes New York City. -40% -30% -20% -10% 0% 10% 20% 30% 40% 50% 60% 21.1% (1Q 2022) Quarterly Year-Over-Year 1Q 2Q 3Q 4Q 2021 1Q 2Q 3Q 4Q 2019 1Q 2Q 3Q 4Q 2020 Monthly Year-Over-Year 1Q 2022 Percentage Change in Statewide Local Sales Tax Collections Source: New York State Department of Taxation and Finance (Tax and Finance), with calculations by the Office of the State Comptroller (OSC). Notes: Includes New York City. Figure 1 $2.0 $2.0 $2.1 $2.2 $2.0 $1.3 $1.6 $1.8 $1.7 $1.9 $2.1 $2.2 $2.2 $2.0 $2.2 $2.4 $2.3 $2.1 $1.8 $2.4 $2.4 $2.3 $2.7 $2.8 $2.7 $2.6 $0.0 $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 $3.5 1Q2019 2Q2019 3Q2019 4Q2019 1Q2020 2Q2020 3Q2020 4Q2020 1Q2021 2Q2021 3Q2021 4Q2021 1Q2022 New York City Rest of State Quarterly Local Sales Tax Collections Over Time (In Billions) Source: Tax and Finance, with calculations by OSC. Notes: “Rest of State” includes all counties and cities located outside of New York City; however, it does not include local sales taxes collected on behalf of the New York Convention Center Development Corporation, the Mass Transportation Operating Assistance Fund, the Metropolitan Transit Authority Aid Trust Account and school districts. Figure 2 2 Office of the New York State Comptroller April 2022 New Sales Tax Policies in the State Budget Withholdings from County and New York City Collections In recent years, the State has withheld a portion of sales taxes from counties and New York City for various purposes. However, the State Fiscal Year (SFY) 2022-23 Budget eliminated all withholdings outside of the City. Specifically, the Budget: • Restored $59 million in State Aid and Incentives for Municipalities (AIM) funding that was discontinued for 1,325 towns and villages in the SFY 2019-20 Budget, and eliminated “AIM- related payments” to those municipalities, under which they received an equivalent amount of funding derived from amounts withheld from their counties’ sales tax collections, effective July 1, 2022.5 • Repealed provisions of the Tax Law enacted in the SFY 2020-2021 Budget requiring the withholding of certain amounts from local sales tax revenues collected in counties outside New York City for deposit into a Distressed Provider Assistance (DPA) account in an aggregate amount of $50 million annually. (The Budget did, however, extend the Tax Law provisions requiring withholding of local sales tax revenues collected in New York City for DPA purposes for another three years, although it reduced the amount to $150 million annually, from $200 million).6 For more information on both AIM-related payments and DPA withholdings, go to OSC’s website at www.osc.state.ny.us/local-government/data/withholdings-county-sales-tax. Gas Tax “Holiday” The SFY 2022-23 Budget provides for a partial suspension of State taxes on motor fuels from June through December of 2022, amounting to a reduction of 16 cents per gallon during that period. The Budget also expands the authorization for local governments’ to impose a cents-per-gallon sales tax based on a price of either $2, $3 or $4 per gallon.7 In New York, the consumption of motor fuels is taxed at the federal, State and local levels. The federal government imposes a tax of 18.4 cents per gallon on gasoline and 24.4 cents per gallon on diesel. The State, on the other hand, which has been taxing motor fuels since 1929, levies various taxes (and fees) totaling 33.35 cents per gallon sold on either type of motor fuel outside of the Metropolitan Commuter Transportation District (the “MTA region”). Consumers inside the MTA region pay an additional .75 cents per gallon. At the local level, with one exception, the sale of motor fuels is subject to the same sales tax rate per dollar as other products, ranging from 3 percent to 4.875 percent. (Seneca County imposes a fixed 8 cents per-gallon tax instead.) The amount imposed per gallon, therefore, varies based upon local tax rate and the price of the fuel per gallon. For example, if the pre- tax price of gasoline is $4.00 per gallon, a county with a 4 percent tax rate would typically collect 16 cents per gallon sold.8 Taxes on Motor Fuels In New York State 3 April 2022 Division of Local Government and School Accountability The local taxes imposed on the sale of motor fuels are a major component of local sales tax revenue, comprising around 5 percent of overall local collections in a typical year. The importance of the collection of local sales tax on motor fuels varies quite a bit: it represents under 2 percent of total collections in New York City and ranges from as low as 3 percent to as high as 13 percent outside of the City. In general, upstate counties rely more heavily on it than those downstate.9 For a recent analysis of motor fuel prices, tax collections and consumption, see www.osc.state.ny.us/files/local-government/publications/pdf/2021-local-sales-taxes- grew-by-over-19-percent-exceeded-pre-pandemic-levels.pdf. County and City Collections County sales tax collections outside of New York City increased by 15.2 percent in the first quarter of 2022 compared to the same period the previous year. Most counties experienced double-digit growth, with close to half of all counties exceeding 15 percent. (See Figure 3.) Broome County saw the largest year-over-year increase at 24.3 percent, followed by Yates (22.2 percent), and Schuyler and Columbia – each at just over 21 percent. New York City’s collections grew by 28.5 percent in the first quarter compared to the same period in 2021, when its sales tax revenue remained depressed due to the pandemic’s continued effect on its overall economy. Almost every other city that imposes its own sales tax experienced double-digit growth in collections in the first quarter. Norwich saw the strongest year- over-year increase at 30.8 percent, followed by Johnstown (29.2 percent) and Ithaca (28.6 percent). Beginning this past March, the City of Ogdensburg, which is located in St. Lawrence County, became the eighteenth city outside of New York City to impose its own sales tax and does so at a rate of 4 percent.10 It had previously received a portion of county collections in accordance with a sales tax sharing agreement. (To view collections by region and local taxing jurisdiction for the first quarter of 2022, see the Appendix. To download a detailed spreadsheet with monthly and quarterly analysis, see Monthly and Quarterly Local Sales Tax Collections by Region.) Yates Schuyler ColumbiaBroome Wyoming Westchester Warren Tompkins Tioga Sullivan Suffolk Steuben St. Lawrence Seneca Schoharie Schenectady Saratoga Rockland Rensselaer Putnam Otsego Oswego Orange Ontario Onondaga OneidaNiagara New York City Nassau Monroe Madison Livingston Lewis Jefferson Herkimer Hamilton Greene Genesee Fulton Franklin Essex Delaware Clinton Chenango ChemungChautauqua Cayuga Cattaraugus Allegany Wayne Washington Ulster Orleans Montgomery Erie Dutchess Cortland Albany Change in County Sales Tax Collections, January-March 2021 to January-March 2022 Source: Tax and Finance, with calculations by OSC. Notes: Includes county and New York City collections. Figure 3Figure 3 Change in County Sales Tax Collections, January-March 2021 to January-March 2022 Source: Tax and Finance, with calculations by OSC. Notes: Includes county and New York City collections. Increase more than 20% Increase between 15% and 20% Increase between 10% and 15% Increase less than 10% Percentage Change Year-Over-Year 4 Office of the New York State Comptroller April 2022 Appendix: Sales Tax Collections by Region, First Quarter (January - March) Region City/ County First Quarter (Jan-Mar)January February March 2021 (millions)2022 (millions)Percentage Change 2021 (millions)2022 (millions)Percentage Change 2021 (millions)2022 (millions)Percentage Change 2021 (millions)2022 (millions)Percentage Change Capital District $195.8 $223.6 14.2%$61.3 $73.2 19.4%$51.8 $57.2 10.4%$82.7 $93.1 12.6% Albany County $68.3 $78.8 15.3%$22.5 $27.3 21.2%$19.0 $17.7 -7.1%$26.8 $33.8 26.3% Columbia County $11.8 $14.3 21.2%$3.3 $4.0 22.6%$2.8 $3.3 20.3%$5.8 $7.0 20.7% Greene County $9.6 $10.7 10.7%$2.7 $3.3 21.4%$2.4 $2.8 17.1%$4.5 $4.6 0.9% Rensselaer County $24.0 $27.7 15.2%$7.6 $9.1 20.6%$6.4 $7.7 21.7%$10.1 $10.9 7.3% Saratoga County $32.9 $37.2 13.0%$10.1 $12.6 23.8%$8.7 $10.4 19.5%$14.0 $14.2 1.2% Saratoga Springs City $2.8 $3.3 18.1%$0.9 $1.1 27.6%$0.7 $0.9 26.3%$1.2 $1.2 5.9% Schenectady County $27.5 $30.0 9.1%$8.5 $8.8 4.6%$7.0 $8.4 20.0%$12.0 $12.7 5.9% Warren County $12.0 $14.3 18.8%$3.8 $4.6 19.0%$3.1 $3.9 26.4%$5.1 $5.8 14.1% Glens Falls City $0.9 $1.0 12.0%$0.3 $0.3 23.7%$0.2 $0.3 20.8%$0.4 $0.4 -1.0% Washington County $6.0 $6.4 7.5%$1.7 $2.1 24.1%$1.5 $1.8 17.6%$2.8 $2.6 -8.1% Central New York $140.5 $159.1 13.3%$45.2 $53.0 17.3%$37.4 $44.5 19.1%$57.9 $61.6 6.4% Cayuga County $10.2 $11.9 16.4%$3.0 $3.6 19.5%$2.5 $3.1 25.1%$4.7 $5.1 9.7% Auburn City $2.5 $2.7 10.8%$0.8 $0.9 19.3%$0.6 $0.8 24.6%$1.0 $1.0 -4.0% Cortland County $8.1 $9.1 12.4%$2.4 $2.9 20.3%$2.1 $2.5 17.4%$3.6 $3.7 4.0% Madison County $8.0 $8.9 10.7%$2.3 $2.7 19.2%$1.9 $2.3 20.0%$3.9 $3.9 1.1% Oneida City $1.4 $1.5 11.3%$0.4 $0.5 25.2%$0.3 $0.4 22.4%$0.7 $0.7 -1.7% Onondaga County $94.9 $106.7 12.5%$31.2 $36.7 17.8%$25.4 $30.6 20.3%$38.3 $39.4 2.9% Oswego County $11.6 $13.9 19.9%$3.9 $4.3 9.4%$3.0 $3.6 19.6%$4.6 $6.0 28.9% Oswego City $3.8 $4.4 14.0%$1.2 $1.4 10.3%$1.4 $1.2 -17.6%$1.2 $1.9 53.9% Finger Lakes $202.8 $234.4 15.6%$63.3 $75.7 19.6%$49.9 $64.4 29.0%$89.6 $94.3 5.2% Genesee County $10.5 $12.4 18.1%$3.0 $3.8 25.2%$2.6 $3.3 27.8%$4.8 $5.3 8.5% Livingston County $9.0 $9.7 8.0%$2.6 $3.2 23.4%$2.2 $2.6 21.5%$4.2 $3.9 -8.2% Monroe County $128.7 $150.3 16.9%$41.6 $49.2 18.2%$31.4 $41.7 33.1%$55.7 $59.5 6.7% Ontario County $22.1 $25.8 16.5%$6.9 $8.4 21.7%$6.0 $7.1 19.5%$9.2 $10.2 10.8% Orleans County $4.9 $5.3 7.8%$1.4 $1.7 22.4%$1.2 $1.4 21.8%$2.4 $2.2 -7.5% Seneca County $6.5 $7.1 8.3%$1.9 $2.4 23.3%$1.7 $2.1 23.4%$2.9 $2.6 -10.4% Wayne County $12.9 $14.3 10.2%$3.7 $4.4 19.1%$3.2 $3.8 20.5%$6.0 $6.0 -0.6% Wyoming County $4.8 $5.5 13.5%$1.3 $1.6 23.8%$1.1 $1.4 31.4%$2.4 $2.4 0.0% Yates County $3.5 $4.2 22.2%$0.9 $1.1 27.7%$0.8 $0.9 14.2%$1.8 $2.2 22.9% Long Island $704.6 $809.9 15.0%$218.4 $267.2 22.3%$186.7 $219.7 17.6%$299.4 $323.1 7.9% Nassau County $316.8 $370.1 16.8%$102.0 $123.3 20.9%$87.3 $101.8 16.6%$127.5 $145.1 13.8% Suffolk County $387.4 $439.3 13.4%$116.3 $143.8 23.7%$99.3 $117.8 18.6%$171.8 $177.8 3.5% Mid-Hudson $493.9 $570.5 15.5%$155.9 $187.7 20.4%$131.7 $153.3 16.4%$206.3 $229.5 11.3% Dutchess County $56.1 $65.2 16.3%$15.9 $19.9 25.2%$13.5 $16.5 22.2%$26.6 $28.8 8.0% Orange County $74.6 $87.0 16.6%$23.6 $29.9 26.6%$20.5 $23.1 12.8%$30.5 $34.0 11.4% Putnam County $17.8 $19.5 9.6%$5.2 $6.2 18.5%$4.5 $5.0 12.6%$8.1 $8.3 2.3% Rockland County $61.4 $70.5 14.7%$19.5 $23.7 21.8%$16.7 $19.1 14.7%$25.3 $27.6 9.4% Sullivan County $13.5 $14.4 6.6%$3.6 $4.5 24.1%$3.1 $3.6 17.4%$6.8 $6.3 -7.5% Ulster County $32.5 $38.4 18.0%$9.7 $11.6 20.3%$8.0 $10.1 25.8%$14.8 $16.6 12.2% Westchester County $185.1 $214.8 16.0%$60.7 $71.0 17.0%$50.6 $58.4 15.4%$73.7 $85.3 15.7% Mount Vernon City $6.4 $7.1 11.7%$2.0 $2.5 24.9%$1.6 $1.9 17.7%$2.8 $2.7 -1.3% New Rochelle City $8.2 $9.5 16.4%$2.5 $3.0 17.9%$2.2 $2.5 13.0%$3.5 $4.1 17.4% White Plains City $12.0 $13.8 14.4%$4.5 $5.1 14.0%$3.7 $4.3 14.4%$3.8 $4.4 14.9% Yonkers City $25.8 $29.8 15.7%$8.5 $10.1 18.4%$7.1 $8.5 20.0%$10.2 $11.2 10.4% 5 April 2022 Division of Local Government and School Accountability Appendix: Sales Tax Collections by Region, First Quarter (January - March) Region City/ County First Quarter (Jan-Mar)January February March 2021 (millions)2022 (millions)Percentage Change 2021 (millions)2022 (millions)Percentage Change 2021 (millions)2022 (millions)Percentage Change 2021 (millions)2022 (millions)Percentage Change Mohawk Valley $73.7 $83.6 13.4%$21.9 $26.2 19.6%$18.6 $22.2 18.9%$33.1 $35.2 6.2% Fulton County $5.8 $6.6 13.8%$1.7 $2.1 24.3%$1.4 $1.7 22.0%$2.8 $2.9 3.4% Gloversville City $1.0 $1.1 4.6%$0.3 $0.4 25.8%$0.2 $0.3 27.0%$0.5 $0.4 -20.3% Johnstown City $1.0 $1.3 29.2%$0.3 $0.4 17.9%$0.3 $0.3 24.1%$0.4 $0.6 40.8% Hamilton County $0.9 $1.0 14.0%$0.2 $0.3 30.4%$0.2 $0.2 22.8%$0.4 $0.4 1.5% Herkimer County $8.7 $9.5 9.1%$2.5 $2.9 18.1%$2.2 $2.5 12.7%$4.0 $4.1 1.4% Montgomery County $9.0 $10.1 12.5%$2.6 $3.1 22.3%$2.2 $2.6 21.3%$4.2 $4.3 2.0% Oneida County $38.2 $43.5 13.9%$11.7 $13.8 17.7%$9.9 $11.7 18.1%$16.6 $18.1 8.8% Rome City $2.1 $2.3 10.5%$0.7 $0.8 16.6%$0.5 $0.7 25.0%$0.9 $0.9 -2.0% Utica City $2.8 $3.3 17.3%$0.9 $1.0 17.9%$0.7 $0.9 17.2%$1.2 $1.4 17.0% Schoharie County $4.2 $4.9 15.8%$1.1 $1.5 29.5%$1.0 $1.2 24.7%$2.1 $2.2 4.4% North Country $68.8 $76.5 11.1%$20.6 $24.4 18.7%$17.1 $20.8 21.6%$31.1 $31.2 0.3% Clinton County $14.9 $16.4 10.4%$4.8 $5.4 13.2%$3.8 $4.7 23.7%$6.2 $6.2 0.1% Essex County $7.8 $8.9 13.3%$2.4 $2.9 19.5%$2.0 $2.4 21.3%$3.5 $3.6 4.5% Franklin County $6.6 $7.4 11.9%$1.9 $2.3 18.0%$1.6 $1.9 23.8%$3.1 $3.1 2.0% Jefferson County $20.3 $22.3 10.1%$5.8 $7.0 19.6%$4.9 $6.0 21.0%$9.5 $9.4 -1.4% Lewis County $3.4 $4.0 17.7%$0.9 $1.1 24.0%$0.6 $0.9 55.2%$1.9 $1.9 2.6% St. Lawrence County $15.9 $17.4 9.8%$4.7 $5.8 22.2%$4.2 $4.8 15.1%$6.9 $6.8 -1.8% Ogdensburg City NA $0.1 NA NA NA NA NA NA NA NA $0.1 NA Southern Tier $112.3 $133.6 18.9%$35.4 $42.2 19.3%$30.5 $36.0 18.0%$46.4 $55.4 19.3% Broome County $35.8 $44.5 24.3%$11.7 $13.8 17.7%$10.3 $12.0 16.9%$13.7 $18.6 35.6% Chemung County $15.5 $17.5 12.6%$5.0 $6.1 21.9%$4.4 $5.0 15.6%$6.2 $6.3 3.0% Chenango County $6.3 $7.3 15.9%$1.9 $2.3 20.2%$1.7 $1.8 10.5%$2.7 $3.2 16.3% Norwich City $0.5 $0.6 30.8%$0.1 $0.2 25.2%$0.1 $0.1 13.9%$0.2 $0.3 45.1% Delaware County $6.3 $7.3 16.4%$1.7 $2.0 19.6%$1.4 $1.8 26.2%$3.2 $3.6 10.4% Otsego County $9.3 $10.4 12.1%$2.7 $3.3 19.3%$2.4 $2.8 18.3%$4.1 $4.3 3.8% Schuyler County $2.4 $2.9 21.2%$0.7 $0.9 20.1%$0.6 $0.7 10.7%$1.0 $1.3 28.8% Steuben County $14.4 $17.1 18.8%$4.4 $5.3 20.9%$3.7 $4.5 19.4%$6.2 $7.3 16.9% Tioga County $6.3 $7.5 19.1%$2.0 $2.4 20.1%$1.7 $2.1 27.1%$2.6 $3.0 13.3% Tompkins County $13.1 $15.2 16.3%$4.1 $5.0 19.7%$3.5 $4.2 20.5%$5.5 $6.1 11.2% Ithaca City $2.5 $3.3 28.6%$0.9 $1.0 11.0%$0.8 $0.8 12.2%$0.9 $1.4 60.0% Western New York $274.8 $320.0 16.4%$87.3 $103.8 18.9%$72.9 $87.0 19.5%$114.6 $129.1 12.7% Allegany County $6.1 $7.1 16.5%$1.8 $2.2 21.2%$1.5 $2.0 34.8%$2.8 $3.0 4.0% Cattaraugus County $10.8 $12.3 14.2%$3.1 $3.9 23.6%$2.7 $3.4 24.9%$5.0 $5.1 2.5% Olean City $1.2 $1.3 9.3%$0.3 $0.4 29.4%$0.3 $0.4 15.0%$0.5 $0.5 -6.6% Salamanca City $0.2 $0.2 7.4%$0.06 $0.1 33.1%$0.05 $0.1 15.1%$0.1 $0.1 -11.4% Chautauqua County $17.7 $19.8 11.7%$5.2 $6.4 22.5%$4.2 $5.5 30.5%$8.3 $8.0 -4.5% Erie County $205.0 $240.0 17.1%$66.0 $78.4 18.7%$55.1 $65.1 18.3%$83.9 $96.5 15.0% Niagara County $31.8 $36.9 16.0%$10.2 $11.8 16.1%$8.5 $10.1 17.7%$13.1 $15.0 14.7% New York City $1,736.1 $2,231.1 28.5%$699.4 $775.4 10.9%$582.8 $643.3 10.4%$453.9 $812.4 79.0% Other Local $260.5 $323.0 24.0%$92.5 $105.5 14.0%$78.1 $87.4 11.9%$90.0 $130.1 44.6% Statewide Total $4,263.8 $5,165.2 21.1%$1,501.2 $1,734.4 15.5%$1,257.6 $1,435.9 14.2%$1,504.9 $1,995.0 32.6% Source: Tax and Finance, with calculations by OSC. Notes: Collections data can reflect technical adjustments and other administrative issues, quarterly reconciliations, as well as changes in tax rates, which may require care when analyzing changes over time. Collections include distributions made to counties and cities that impose a paper carryout bag reduction fee. The cities included in the above table impose their own sales tax instead of receiving a share of what their respective counties collect. “Other Local” includes sales taxes collected on behalf of the New York Convention Center Development Corporation, the Mass Transportation Operating Assistance Fund, the Metropolitan Transit Authority Aid Trust Account and school districts. Regional totals do not include taxes collected for these purposes but do include collections for cities that impose a segmented sales tax on consumer utilities or hotel occupancy. Tax and Finance reports the “gross” local sales tax collections for each county, not adjusting for any money withheld for AIM-related payments or Distressed Provider Assistance. For more details on these withholdings, go to www.osc.state.ny.us/local-government/data/county-sales-tax-distributions-and-withholdings. 6 Office of the New York State Comptroller April 2022 1 Unless otherwise noted, all sales tax collections data in this report are taken from the New York State Department of Taxation and Finance’s (Tax and Finance) Revenue Distribution Certification (AS001 Report), at www.tax.ny.gov/research/stats/statistics/sales_tax/government/as001.htm. The sales tax distributions that counties and cities receive from the State in any given month may reflect sales tax payments remitted to the State from registered vendors – including businesses that operate partially or entirely online, along with brick- and-mortar establishments – over several sales tax liability periods, and may also include distributions made to counties and cities that impose a paper carryout bag reduction fee. For monthly sales tax activity by liability period, see Tax and Finance, Monthly Sales Tax Activity by Liability Period, All Collections (ST10TC Report), at www.tax.ny.gov/research/stats/statistics/sales_tax/government/st10tc.htm; Tax and Finance periodically adjusts its methodology for estimating monthly distributions to improve the accuracy of its monthly estimates. For more information on distribution adjustments (also referred to as “quarterly reconciliation”), see “Frequently Asked Questions,” at www.tax.ny.gov/research/stats/statistics/sales_tax/government/transparency_reports_list.htm. 2 “Rest of State” includes all counties and cities located outside of New York City; however, it does not include local sales taxes collected on behalf of the New York Convention Center Development Corporation, the Mass Transportation Operating Assistance Fund, the Metropolitan Transit Authority Aid Trust Account and school districts. 3 U.S. Bureau of Labor Statistics, “Consumer Price Index,” accessed on April 12, 2022, at www.bls.gov/data/. 4 With some exceptions, the State’s “Tax Cap” limits the amount that local governments and school districts can increase the real property tax levy to the lower of 2 percent or the rate of inflation. However, local governments can pass a local law or resolution by at least a 60 percent vote to override the Tax Cap and voters in school districts can override with a 60 percent vote. For more detailed information on the Tax Cap, go to www.osc.state.ny.us/local-government/property-tax-cap. 5 Chapter 55 of the Laws of 2022. Final AIM-related payments totaling $12.5 million will be made in May 2022 to villages with a fiscal year ending on May 31. 6 Chapter 57 of the Laws of 2022. 7 Part RR of Chapter 59 of the Laws of 2022. The SFY 2022-23 Budget also suspends the three-fourths of 1 cent tax (or .75 cents) per gallon on the retail sale of motor fuels within the Metropolitan Commuter Transportation District. Section 1111 of the Tax Law allows for counties and cities to pass a local law to lower, or cap, the taxable amount per gallon on the retail sale of gasoline and diesel motor fuels. 8 For a list of local sales tax rates imposed on motor fuels, see Tax and Finance, Local Sales and Use Tax Rates on Qualified Motor Fuel, Highway Diesel Motor Fuel, and B20 Biodiesel (Publication 718-F), March 2022, at www.tax.ny.gov/pdf/publications/sales/pub718f.pdf. 9 The percentages cited are from calendar year 2021. In aggregate, tax collections from the sale of motor fuels comprise 5.9 percent of the total sales tax collections in upstate counties; downstate they comprise 2.8 percent including New York City and 4.4 percent excluding New York City. All data on local gas tax revenue distributions are taken from Tax and Finance’s Monthly Sales Tax Activity by Liability Period, All Jurisdictions, Motor Fuel Collections (ST60JRMF Report), at www.tax.ny.gov/research/stats/statistics/sales_tax/government/st60jrmf.htm. 10 Tax and Finance, City of Ogdensburg Imposes Local Sales and Use Tax (Form ST-22-1), February 16, 2022, at www.tax.ny.gov/pdf/2022/st/st-22-1.pdf. Notes 7 April 2022 Division of Local Government and School Accountability Division of Local Government and School Accountability 110 State Street, 12th Floor, Albany, NY 12236 Tel: 518.474.4037 • Fax: 518.486.6479 Email: localgov@osc.ny.gov www.osc.state.ny.us/local-government Technical Assistance is available at any of our Regional Offices BINGHAMTON REGIONAL OFFICE Tel 607.721.8306 • Fax 607.721.8313 • Email Muni-Binghamton@osc.ny.gov Counties: Broome, Chemung, Chenango, Cortland, Delaware, Otsego, Schoharie, Tioga, Tompkins BUFFALO REGIONAL OFFICE Tel 716.847.3647 • Fax 716.847.3643 • Email Muni-Buffalo@osc.ny.gov Counties: Allegany, Cattaraugus, Chautauqua, Erie, Genesee, Niagara, Orleans, Wyoming GLENS FALLS REGIONAL OFFICE Tel 518.793.0057 • Fax 518.793.5797 • Email Muni-GlensFalls@osc.ny.gov Counties: Albany, Clinton, Columbia, Essex, Franklin, Fulton, Greene, Hamilton, Montgomery, Rensselaer, Saratoga, Schenectady, Warren, Washington HAUPPAUGE REGIONAL OFFICE Tel 631.952.6534 • Fax 631.952.6530 • Email Muni-Hauppauge@osc.ny.gov Counties: Nassau, Suffolk NEWBURGH REGIONAL OFFICE Tel 845.567.0858 • Fax 845.567.0080 • Email Muni-Newburgh@osc.ny.gov Counties: Dutchess, Orange, Putnam, Rockland, Sullivan, Ulster, Westchester ROCHESTER REGIONAL OFFICE Tel 585.454.2460 • Fax 585.454.3545 • Email Muni-Rochester@osc.ny.gov Counties: Cayuga, Livingston, Monroe, Ontario, Schuyler, Seneca, Steuben, Wayne, Yates SYRACUSE REGIONAL OFFICE Tel 315.428.4192 • Fax 315.426.2119 • Email Muni-Syracuse@osc.ny.gov Counties: Herkimer, Jefferson, Lewis, Madison, Oneida, Onondaga, Oswego, St. Lawrence STATEWIDE AUDIT Tel 315.793.2484 New York State Comptroller THOMAS P. Di NAPOLI COMPTROLLEROffice of the NEW YORK STATE Andrea C. Miller Executive Deputy Comptroller Executive • 518.474.4037 Elliott Auerbach, Deputy Comptroller Tracey Hitchen Boyd, Assistant Comptroller Randy Partridge, Assistant Comptroller Audits, Local Government Services and Professional Standards • 518.474.5404 (Audits, Technical Assistance, Accounting and Audit Standards) Local Government and School Accountability Help Line • 866.321.8503 or 518.408.4934 (Electronic Filing, Financial Reporting, Justice Courts, Training) Division of Legal Services Municipal Law Section • 518.474.5586 New York State & Local Retirement System Retirement Information Services Inquiries on Employee Benefits and Programs 518.474.7736 BUFFALO BINGHAMTON ROCHESTER SYRACUSE GLENS FALLS NEWBURGH HAUPPAUGE Contacts Like us on Facebook at facebook.com/nyscomptroller Follow us on Twitter @nyscomptroller Contact Office of the New York State Comptroller Division of Local Government and School Accountability 110 State Street, 12th floor Albany, NY 12236 Tel: (518) 474-4037 Fax: (518) 486-6479 or email us: localgov@osc.ny.gov www.osc.state.ny.us/local-government Meeting of the Ithaca Town Board TB Resolution 2022 -: Approval of Budget Transfers, Amendments and Modifications for the Quarter Ending March 31, 2022. Whereas, the Town Finance Officer has reviewed all budgetary revenue and appropriation accounts for the quarter ending March 31, 2022, and Whereas, this review disclosed certain budgetary revenues and expenditures requiring transfers, amendments or modifications summarized below: General Town-wide Fund Budget Transfers Account Description From To A1220.415 Telephone 480 A1220.416 Supervisor – Cell 480 A1340.100 Regular 31,944 A1680.100 Regular 31,944 A1340.100 Regular 41,000 A1680.491 Hardware & Equipment 41,000 Now, therefore, be it Resolved, that this Town Board authorizes and directs the Town Finance Officer to record all budget transfers, amendments and modifications, including all other changes deemed appropriate and necessary. Moved: Seconded: Vote: ayes-