HomeMy WebLinkAboutBudget Committee Minutes 8-29-2023
1
BUDGET COMMITTEE
Meeting Minutes - August 29, 2023
Committee present: Eric Levine and Rod Howe
Staff present: Donna Shaw, Judy Drake, Debby Kelley, Joe Slater, Marty Mosely, Dan Thaete, and CJ
Randall
Meeting was called to order at: 12:05 p.m. by Eric Levine.
AGENDA ITEMS:
• Review and approve meeting minutes from June 12, 2023 and July 10, 2023.
Moved: Eric Levine Second: Rod Howe Motion Passed
• Approval of 2024 Office and Field Classification Wage Scales.
Wages are proposed to increase 4%, the same as bargaining unit wages in 2024.
• Review and Discuss Proposed 2024 Budget (Including Capital Budget).
The Committee reviewed and discussed the summaries of revenues and expenditures for all funds
for the Tentative 2024 Ithaca Town Budget.
o Total expenditures will decrease by .53%, from $30,111,590 in 2023 to $29,951,022 in 2024.
Expenditures will decrease in the General Townwide Fund by 3.15%; increase in the General
Part-Town Fund by 7.42%; increase in Highway Town-Wide Fundy by 52.45%; increase in
Highway Part-Town Fund by 4.52%; decrease in Water Fund by 13.09%; decrease in Sewer Fund
by 1.44%; increase in Fire Protection Fund by 8.36% and Light Districts have been eliminated.
Debt Service Fund expenditure will increase by 2.36%.
o Total for Personal Services (employee salaries and wages) increases from $4,862,338 in
2023 to $5,163,328 in 2024, an increase of $300,990 or 6.19%. The collective bargaining
agreement with the Public Works unit established a 4% COLA for 2024. It is recommended
that all classifications for the 2024 Office and Field Wage Scales receive the same. There are
also three new position requests:
- FT Senior Code Enforcement Officer (promoting current CEO, no increase in FTE)
- FT Senior Planner (promoting current Planner, no increase in FTE)
- PT Deputy Town Clerk
o The budgeted total for Employee Benefits increases from $2,329,820 in 2023 to $2,469,620 in
2024, an increase of $139,800 or 6.0%. Total employee benefits in 2024 are calculated at
47.83% of the total for employee salaries and wages. NYSLRS invoice estimates have not yet
been received. Health insurance increases are budgeted at 8.5% but have not yet been finalized
by the Consortium.
o Sales Tax collections are budgeted at $4,300,000, representing 15.67% of the Town’s 2024
budgeted revenues. This is an increase of $550,000 over the $3,750,000 budgeted for sales tax
2
in 2023. Sales tax collections in 2022 were $4,483,398 and 2023 sales tax collections are 5%
higher for the first six months. If this trend continues, 2023 sales tax collections are projected
to be $4,700,000.
• Capital Projects budgeted in 2024 will total $5,916,404; an increase of $382,204 or 6.9%
from the $5,534,200 total budgeted in 2023. Capital projects represent 19.75% of the Town’s
total budget.
- $50,000 is budgeted for Lead and Copper Rule-Services Identification and is
funded with current year revenue.
- $1,265,204 is budgeted for sewer infrastructure improvement. $300,000 for
sewer lining and manhole rehabilitation is funded with current year revenues
and $900,000 for the Inlet Valley Pump Station Rehab/Rebuild Gravity Sewer
will be funded with bonds and/or current year revenue/grants. $65,204 is
budgeted for four joint projects with the City of Ithaca.
- $300,000 is budgeted for King Road West Box Culvert replacement to be
funded with available fund balance.
- $1,636,000 is budgeted for road improvements and funded with $818,000 in
Highway Part-Town fund balance and $818,000 in current year revenues (CHIPS
and property tax).
- $680,000 is budgeted for mechanical/electrical/plumbing improvements to
the Public Works Facility and funded with General fund balance.
- $150,000 is budgeted for PWF Security Fence Installation and is funded with a
grant.
- $600,000 is budgeted for renovations to the Mezzanine and Court Offices in Town Hall and is
funded with General Fund Balance.
- $250,000 is budgeted for Town Hall weatherization architectural design services and is
funded with grants and/or fund balance.
- $410,000 is budgeted for design work on the Townline Road Bridge and is funded with a
Bridge-NY grant and a contribution from the County.
• Initial Discussion on Property Tax Levy, Tax Rates and Tax Cap Calculation for FY-2024.
The proposed 2024 property tax levy, tax rates, and tax cap calculation was reviewed. The 2024
Property Tax Levy totals $8,764277, an increase of $81,789 or .9% over the prior year total of
$8,682,488. The total 2024 Property Tax Levy (including Water/Sewer Benefit Assessment Fees)
is projected to be $10,995,105 in 2024, an increase of $164,254 or 1.50% over the prior year total
of $10,830,851. This increase does comply with the property tax cap calculation for 2024.
Property taxes are the Town’s largest revenue source, representing 44.2% of total budgeted
revenues.
The property tax bill for a typical property in the Town of Ithaca will decrease to $1,776.76 in 2024
from $1,906.11 in 2023, a decrease of $129.35 or 6.8%. The typical property in the Town of Ithaca
is a single-family residence with an assessed value of $300,000.
• Initial Discussion of proposed Water Rates and Sewer Rents for FY-2024.
Water Rates: Based on a 5.0% increase, the Bolton Point rate will increase from $6.03/1000 gallons
in 2023 to $6.33/1000 gallons in 2024. For the Town, our portion, used to cover our operating costs,
is proposed to increase from $2.86/1000 gallons in 2023 to $3.00/1000 gallons in 2024. The total
3
amount charged to Town water customers would be $9.33/1000 gallons in 2024, an increase of
5.0% over the $8.89/1000 gallons charged in 2023.
Sewer Rents: The amount charged to Town customers is proposed to increase to $6.15/1000
gallons in 2023, an increase of 73.0% over the $5.75/1000 gallons charged in 2023. This projection
may change when the budget is received for the IAWWTF.
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 is proposed to increase
from $73.20 in 2023 to $77.40 in 2024, an increase of $4.20 or 5.7%.
• Initial Discussion of proposed Water and Sewer Benefit Assessment Fees for FY-2022.
The Water Benefit Assessment Fee is recommended to remain the same in 2024, $189.59 per unit,
raising revenues of approximately $1,484,759 to be used to pay the annual debt service on the
Town’s outstanding long-term debt for water infrastructure improvements. There aren’t any large
capital projects in 2024 and debt payments are not scheduled to increase over the next couple of
years.
The Sewer Benefit Assessment Fee is proposed to increase to $100.00/unit in 2024 from $89.00/unit
in 2023, raising revenues of approximately $746,069 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 Wastewater
Treatment Facility. This projection may change when the budget is received for the IAWWTF.
The Special Assessment Rolls, including water and sewer benefit units, are currently under review
by Engineering and GIS. Any changes to the total will affect the benefit assessment rates and
revenues.
• Other Items.
The July Sales Tax payment has been received. The $381,575 payment puts us approximately 5%
over the sales tax collected for the same period last year and on track to end the year over budget.
The meeting was adjourned at 12:34 p.m.
Next Meeting: Monday, September 11, 2023 at 12:00 pm, Town Hall - Aurora Room