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HomeMy WebLinkAboutTB Minutes 2005-11-10November 10, 2005 Town Board Meeting Approved December 12, 2005 Budget Meeting of the Ithaca Town Board Thursday, November 10, 2005 at 5:30 P.M. 215 North Tioga Street, Ithaca, New York THOSE PRESENT: Supervisor Valentino; Councilwoman Grigorov; Councilman Lesser; Councilman Burbank; Councilwoman Gittelman; Councilman Engman; Councilman Stein. STAFF PRESENT: Tee -Ann Hunter, Town Clerk; Dan Walker, Town Engineer; Fred Noteboom, Highway Superintendent; Jonathan Kanter, Director of Planning; Al Carvill, Budget Officer; Judy Drake, Human Resources Manager; John Barney, Attorney for the Town. CALL TO ORDER Supervisor Valentino called the meeting to order at 5:30 p.m. and led the assemblage in the Pledge of Allegiance Wastewater Treatment Plant Budget Supervisor Valentino distributed copies of the Final Wastewater Treatment Plant Budget to the Board. Agenda item No. 3 - Board Comments Financial Trends (Attachment #1 — Long Term Financial Trends 2000-2005) Councilman Stein stated he had been looking into historical trends having to do with the budget and told the Board what it was that he has discovered as outline in his handout titled "Long Term Financial Trends 2000-2005". He thanked Mr. Carvill for providing him with the needed data. Mr. Stein reviewed his findings with the Board and made the following comments: • The funds over which the Board has the most operational control are the general fund, the part town fund, and the highway fund. • The two major sources of income in these funds are the real estate tax and the sales tax. • The two major expense categories in these funds are personnel and equipment. • The personnel and the equipment expenses amounts over the past 5 years on the average between 85% and 95% of the property tax plus the sales tax. What interested Mr. Stein how these particular items have changed over the past 4 to 5 years. The property tax levy over the period 2000 to 2005 has increased at an average of 8- 1Y2% per annum. During this period the sales tax revenue has increased at an average of 5.9% per annum. A person observation that Mr. Stein guessed one could argue about is whether these trends can be considered to stay at this level for a long time. The property tax levy, of course, is the source of revenue the Town has control over because they c n set the tax rate. The sales tax revenue the Board has no control over. Mr. Stein would be surprised if an average increase of 6% per annum can be expected over the long run. Mr. Stein November 10, 2005 Town Board Meeting Approved December 12, 2005 doubted that either the 8-1/2% of annual real estate tax increase or the 5.9% annual sales tax revenue are sustainable over the long term. With regard to the expense side, expenditures on equipment have been roughly flat over the past 4 to 5 years. Personnel costs on the other hand have increased according to Mr. Stein's calculations something like 11.7% per annum over this same period. Mr. Stein stated he did not understand why the personnel costs have been increasing at this rate, but it seemed to him this must be where the increased revenues are going. He felt that the Board needed to understand this. His conclusion is that it will be very difficult to sustain an annual rate of growth of 11.7% in the personnel budget over the long run. Supervisor Valentino stated she would be interested to see how Mr. Stein arrived at his figures. Mr. Lesser stated another issue the continuing Board members are going to need to contend with is that in the provision of additional services to residents, such as trails and parks, the Town is building increased commitments into the future. Those costs are going to become increasingly evident and Mr. Lesser felt it was important that the cost of each project be identified. Mr. Stein did not want his comments interpreted as saying that the increase in personnel was fat or was not providing services that are important; it's just that in balancing dollars and cents, Mr. Stein does not see any way that this kind of growth can continue given the Town's sources of income. Coddington Road and Hanshaw Road On another matter, Councilman Lesser told the Board that some of the residents along Coddington Road are beginning to evaluate a possibility of having the area identified as an historic district. If this moves ahead it is possible that the Town will be asked some time in the future to endorse such a designation. Councilman Burbank reported that he had attended the community meeting on the Coddington Road reconstruction project. Mr. Burbank came away understanding that the County really can't afford to do "the whole thing". They are going to have to make some choices and some of what they are proposing to do is clearly out of sync with what the neighbors want. Mr. Burbank encouraged the Town Board to continue to be involved in the process and use whatever sway they have to encourage the County to keep the pavement as narrow as possible and do what they can to reduce speeds. Supervisor Valentino reported that she had called Peter Penniman, chair of the County committee, and talked to him about the neighbors and the Town's request for narrower pavement on both Coddington and Hanshaw Roads. Additionally, she has spoken with Mayor Peterson who she felt would also be interested in seeing the pavement narrowed because of what it is going to dump into the City. Supervisor Valentino thought the City's Board of Public Works may be passing a resolution similar to the Town's regarding the width of the road. Supervisor Valentino encouraged Board members to make the Town's wishes known to individual County Legislators and ask for a County resolution of support to go to the State. The Board discussed the misalignment of available funds and the cost of the proposed projects. 2 November 10, 2005 Town Board Meeting Approved December 12, 2005 Sales Tax on Clothing Councilman Engman and Supervisor Valentino reported having heard from the County that the State is proposing to forgive the sales tax on clothing under $100 for the entire year. David Squires has calculated that it would represent approximately $790,000 of sales tax that the County would lose. They are urging local officials to come to the County Capital Project meeting to provide input. Agenda Item No. 4 - Public Hearing to Consider 2006 Assessment Rolls for Special Benefit Districts and Special Benefit Areas Supervisor Valentino opened the public hearing at 5:51 p.m. The hearing was published and posted as required. There was no one present to address the Board and the hearing was closed at 5:52 p.m. Agenda Item No. 5 - Consider Approval of 2006 Assessment Rolls for Special Benefit Districts and Special Benefit Areas TB RESOLUTION NO. 2005-159: 2005 Assessment Rolls for Special Benefit Districts. WHEREAS, the properly advertised public hearings have been held to consider the 2005 Assessment Rolls for Special Benefit Districts for the Town of Ithaca for the Town 2006 tax bills; now therefore be it RESOLVED, the governing Town Board of the Town of Ithaca hereby approves and adopts the 2005 Assessment Rolls for the Special Benefit District of the Town of Ithaca. TB RESOLUTION NO. 2005-159a Forest Home Lighting District: Tax Year 2006, Assessed Value $26,343,200 MOVED: Supervisor Valentino SECONDED: Councilman Engman VOTE: Supervisor Valentino, aye; Councilwoman Grigorov, aye; Councilman Lesser, aye; Councilman Burbank, aye; Councilwoman Gittelman, aye; Councilman Engman, aye; Councilman Stein, aye. TB RESOLUTION NO. 2005-159b Glenside Lighting District: Tax Year 2006, Assessed Value $3,728,500 MOVED: Supervisor Valentino SECONDED: Councilwoman Gittelman VOTE: Supervisor Valentino, aye; Councilwoman Grigorov, aye; Councilman Lesser, aye; Councilman Burbank, aye; Councilwoman Gittelman, aye; Councilman Engman, aye; Councilman Stein, aye. 3 November 10, 2005 Town Board Meeting Approved December 12, 2005 T13 RESOLUTION NO. 2005-159c Renwick Heights Lighting District: Tax Year 2006, Assessed Value $10,599,000 MOVED: Supervisor Valentino SECONDED: Councilman Lesser VOTE: Supervisor Valentino, aye; Councilwoman Grigorov, aye; Councilman Lesser, aye; Councilman Burbank, aye; Councilwoman Gittelman, aye; Councilman Engman, aye; Councilman Stein, aye. T13 RESOLUTION NO. 2005-159d Eastwood Commons Lighting District: Tax Year 2006, Assessed Value $8,279,200 MOVED: Supervisor Valentino SECONDED: Councilwoman Gittelman VOTE: Supervisor Valentino, aye; Councilwoman Grigorov, aye; Councilman Lesser, aye; Councilman Burbank, aye; Councilwoman Gittelman, aye; Councilman Engman, aye; Councilman Stein, aye. T13 RESOLUTION NO. 2005-159e Clover Lane Lighting District: Tax Year 2006, Assessed Value $1,723,600 MOVED: Supervisor Valentino SECONDED: Councilwoman Grigorov VOTE: Supervisor Valentino, aye; Councilwoman Grigorov, aye; Councilman Lesser, aye; Councilman Burbank, aye; Councilwoman Gittelman, aye; Councilman Engman, aye; Councilman Stein, aye. T13 RESOLUTION NO. 2005-159f Winners Circle Lighting District: Tax Year 2006, Assessed Value $2,183,000 MOVED: Supervisor Valentino SECONDED: Councilman Lesser VOTE: Supervisor Valentino, aye; Councilwoman Grigorov, aye; Councilman Lesser, aye; Councilman Burbank, aye; Councilwoman Gittelman, aye; Councilman Engman, aye; Councilman Stein, aye. T13 RESOLUTION NO. 2005-159g Burleigh Drive Lighting District: Tax Year 2006, Based upon 3,721.10 lineal feet MOVED: Supervisor Valentino SECONDED: Councilman Engman 0 November 10, 2005 Town Board Meeting Approved December 12, 2005 VOTE: Supervisor Valentino, aye; Councilwoman Grigorov, aye; Councilman Lesser, aye; Councilman Burbank, aye; Councilwoman Gittelman, aye; Councilman Engman, aye; Councilman Stein, aye. TB RESOLUTION NO. 2005-159h Westhaven Road Lighting District: Tax Year 2006, Based upon Road Frontage 6,730 lineal feet MOVED: Supervisor Valentino SECONDED: Councilman Burbank VOTE: Supervisor Valentino, aye; Councilwoman Grigorov, aye; Councilman Lesser, aye; Councilman Burbank, aye; Councilwoman Gittelman, aye; Councilman Engman, aye; Councilman Stein, aye. TB RESOLUTION NO. 2005-159i Coddington Road Lighting District: Tax Year 2006, Based Upon Road Frontage 7,032 lineal feet MOVED: Supervisor Valentino SECONDED: Councilman Lesser VOTE: Supervisor Valentino, aye; Councilwoman Grigorov, aye; Councilman Lesser, aye; Councilman Burbank, aye; Councilwoman Gittelman, aye; Councilman Engman, aye; Councilman Stein, aye. TB RESOLUTION NO. 2005-159j Water Improvement Benefit District: Units Available & Connected 7,595.09 MOVED: Supervisor Valentino SECONDED: Councilman Burbank VOTE: Supervisor Valentino, aye; Councilwoman Grigorov, aye; Councilman Lesser, aye; Councilman Burbank, aye; Councilwoman Gittelman, aye; Councilman Engman, aye; Councilman Stein, aye. TB RESOLUTION NO. 2005-159k Sewer Improvement Benefit District: Units Available & Connected 7,196.91 MOVED: Supervisor Valentino SECONDED: Councilman Lesser VOTE: Supervisor Valentino, aye; Councilwoman Grigorov, aye; Councilman Lesser, aye; Councilman Burbank, aye; Councilwoman Gittelman, aye; Councilman Engman, aye; Councilman Stein, aye. 'Wj November 10, 2005 Town Board Meeting Approved December 12, 2005 Agenda item No. 6 - Public Hearing to Consider Decreasing the Sewer Benefit Charge Payable in Connection with the Town -wide Sewer Benefitted Area in the Town of Ithaca Supervisor Valentino opened the public hearing at 5:56 p.m. The hearing was published and posted as required. There was no one from the public to comment and Supervisor Valentino closed the hearing at 5:57 p.m. Agenda Item No. 7 — Decrease the Sewer Benefit Charge Payable in Connection with the Town -wide Sewer Benefitted Area in the Town of Ithaca. TB RESOLUTION NO. 2005 —160: Resolution Decreasing the Sewer Benefit Charge Payable in Connection with the Town -wide Sewer Benefitted Area in the Town of Ithaca WHEREAS, the current sewer benefit unit charge for the Town of Ithaca used for the purposes of calculating the sewer benefit assessment is $65.00 per unit; and WHEREAS, said sewer benefit charge was last changed by a decrease adopted in November of 2003 applicable to the tax years beginning January 1, 2004; and WHEREAS, the number of benefitted parcels in the Town has increased; and WHEREAS, the debt service costs related to the Town of Ithaca Townwide Sewer Improvement Area have decreased substantially as bonds for various portions of the Townwide system have been fully paid; and WHEREAS, because of the increased number of benefit units and the reduction in debt service expense it is possible to reduce the per unit benefit levy; and WHEREAS, a resolution was duly adopted by the Town Board of the Town of Ithaca for a public hearing to be held by said Town Board on November 10, 2005, at 5:50 p.m. to hear all interested parties on a proposal to reduce the sewer benefit charge payable in connection with the Townwide Sewer Benefitted Area in the Town of Ithaca; and WHEREAS, notice of said public hearing was duly advertised in the Ithaca Journal; and WHEREAS, said public hearing was duly held on said date and time at the Town Hall of the Town of Ithaca and all parties in attendance were permitted an opportunity to speak on behalf of or in opposition to said proposed local law, or any part thereof; and WHEREAS, pursuant to Part 617 of the Implementing Regulations pertaining to Article 8 (State Environmental Quality Review Act or "SEAR") of the New York State Conservation Law and the Town's Environmental Regulations it is determined by the Town Board that adoption of this resolution is a Type 11 Action, being routine agency administration and management (617.5(21)), and thus may be processed without further regard to SEAR; NOW, THEREFORE, it is I Lei November 10, 2005 Town Board Meeting Approved December 12, 2005 RESOLVED, that the Town Board of the Town of Ithaca hereby approves a decrease in the sewer benefit charge from $65.00 per unit of sewer assessment to $30.00 per unit; and it is further RESOLVED, that said decreased assessment be the basis for determining the sewer benefit assessment roll for the year 2006. MOVED: Councilman Engman 0--I•1� III � 1�1� r MX0010N � I MTOMAIL VOTE: Supervisor Valentino, aye; Councilwoman Grigorov, aye; Councilman Lesser, aye; Councilman Burbank, aye; Councilwoman Gittelman, aye; Councilman Engman, aye; Councilman Stein, aye. Agenda Item No. 8 - — Public Hearing to Consider Increasing the Water Benefit Charge Payable in Connection with the Town -wide Water Benefitted Area in the Town of Ithaca Supervisor Valentino opened the public hearing at 5:57 p.m. The hearing was published and posted as required. There was no one from the public to comment and Supervisor Valentino closed the hearing at 5:58 p.m. Agenda Item No. 9 — Consider Increasing the Water Benefit Charge Payable in Connection with the Town -wide Water Benefitted Area in the Town of Ithaca TB RESOLUTION NO. 2005-161: Increasing Water Benefit Unit Charge WHEREAS, the current water benefit levy for the Town of Ithaca used for the purposes of calculating the water benefit assessment is $65.00 per unit; and WHEREAS, said water benefit charge was last changed by an increase adopted in November of 2003; and WHEREAS, there have been constructed a substantial amount of additional infrastructure including water mains, storage tanks and other facilities to serve the Town of Ithaca Townwide Water Improvement Area; and WHEREAS, the Town incurred a substantial amount of debt to pay for such infrastructure, which is now being amortized; and WHEREAS, the revenues derived from the current benefit assessment are not adequate to fund such amortization and provide needed reserves in the Townwide Water Improvement Area Fund; and WHEREAS, because of these increased expenses it is necessary to increase the per unit benefit levy; and 7 November 10, 2005 Town Board Meeting Approved December 12, 2005 WHEREAS, a resolution was duly adopted by the Town Board for a Public Hearing to be held by said Town Board on November 10, 2005, at 5:55 p.m. to hear all interested parties on a proposal to increase the water benefit charge payable in connection with the Townwide Water Benefitted Area in the Town of Ithaca; and WHEREAS, notice of said Public Hearing was duly advertised in the Ithaca Journal; WHEREAS, said Public Hearing was duly held on said date and time at the Town Hall of the Town of Ithaca and all parties in attendance were permitted an opportunity to speak on behalf of or in opposition to said proposed local law, or any part thereof; and WHEREAS, pursuant to Part 617 of the Implementing Regulations pertaining to Article 8 (State Environmental Quality Review Act or "SEAR") of the New York State Conservation Law and the Town's Environmental Regulations it is determined by the Town Board that adoption of this resolution is a Type 11 Action, being routine agency administration and management (617.5(21)), and thus may be processed without further regard to SEAR; NOW, THEREFORE, it is RESOLVED, that the Town Board of the Town of Ithaca hereby approves an increase in the water benefit charge from $65.00 per unit of water assessment to $80.00; and it is further RESOLVED, that said increased assessment of $80.00 be the basis for determining the water benefit assessment roll for the year 2006. MOVED: Supervisor Valentino SECONDED: Councilman Lesser VOTE: Supervisor Valentino, aye; Councilwoman Grigorov, aye; Councilman Lesser, aye; Councilman Burbank, aye; Councilwoman Gittelman, aye; Councilman Engman, aye; Councilman Stein, aye. Agenda Item No. 10 - Public Hearing to Consider Adoption of 2006 Southern Cayuga Lake Intermunicipal Water Commission Preliminary Budget as the 2006 Final Budget (Attachment #2 — Southern Cayuga Lake Intermunicipal Water Commission 2006 Preliminary Operating Budget) Supervisor Valentino opened the public hearing at 6:00 p.m. The hearing was published and posted as required. There was no one from the public to comment and Supervisor Valentino closed the hearing at 6:01 p.m. Agenda item No. 11 - Consider Adoption of 2006 Southern Cayuga Lake Intermunicipal Water Commission Preliminary Budget as the 2006 Final Budget November 10, 2005 Town Board Meeting Approved December 12, 2005 TB RESOLUTION NO. 2005-162: Adoption of Preliminary 2006 Southern Cayuga Lake Intermunicipal Water Commission Budget as the Final 2006 Southern Cayuga Lake Intermunicipal Water Commission Budget WHEREAS, the properly advertised public hearing has been held to consider the adoption of the Preliminary 2006 Southern Cayuga Lake Intermunicipal Water Commission Budget as the Final 2006 Southern Cayuga Lake Intermunicipal Water Commission Budget; and, WHEREAS, the Town Board has reviewed the Preliminary Budget as presented; now, therefore, be it RESOLVED, that the Town Board of the Town of Ithaca does hereby adopt the Preliminary 2006 Southern Cayuga Lake Intermunicipal Water Commission Budget as the Final 2006 Cayuga Lake Intermunicipal Water Commission Budget. MOVED: Councilman Lesser SECONDED: Councilwoman Grigorov ROLL CALL VOTE: Supervisor Valentino, aye Councilwoman Grigorov, aye Councilman Lesser, aye Councilman Burbank, aye Councilwoman Gittelman, aye Councilman Engman, aye Councilman Stein, aye Agenda item No. 12 - Consider Approval of the 2006 Ithaca Area Wastewater Treatment Plant Budget (Attachment #3 - Ithaca Area Wastewater Treatment Plant 2006 Preliminary Budget) Councilman Lesser asked what the difference was between the budget in their packets and the one at their places on the table. Supervisor Valentino told him there might be a couple minor line changes, but it is essentially the very same budget as the one they received in their packets. TB RESOLUTION NO. 2005-163: Approval of the 2006 Ithaca Area Wastewater Treatment Plant Budget WHEREAS, pursuant to the Joint Sewer Agreement between the City of Ithaca, Town of Ithaca, and Town of Dryden, the governing bodies for all parties to that agreement must vote on approval of the Treatment Plant budget; and WHEREAS, the City of Ithaca held the required public hearing to consider approval of the 2006 Ithaca Area Wastewater Treatment Plant Budget on October 17, 2005; and 01 November 10, 2005 Town Board Meeting Approved December 12, 2005 WHEREAS, the Town Board has reviewed said Budget as presented; now, therefore be it RESOLVED, the Town Board of the Town of Ithaca hereby approves the 2006 Ithaca Area Wastewater Treatment Plant Budget. Councilman Engman Councilwoman Grigorov Supervisor Valentino, aye Councilwoman Grigorov, aye Councilman Lesser, aye Councilman Burbank, aye Councilwoman Gittelman, aye Councilman Engman, aye Councilman Stein, aye Agenda Item No. 13 - Public Hearing to Consider Adoption of 2006 Town of Ithaca Preliminary Budget as the 2006 Final Budget (Attachment #4 — An Estimated View of Fund Balance; Sliding Tax Rate Scale; Summary of Changes Adopted 2006 Budget: Summary of Fund Balance) Supervisor Valentino reviewed with the Board changes made in the budget going from the Tentative to the Preliminary and some other things that they have talked about since then. Supervisor Valentino reported the following: - $4,000.00 for the Human Services Coalition was added to the Preliminary Budget. - The cost of utilities for Tutelo Park was added to the Preliminary Budget - The cost of an ArcView upgrade was added to the Preliminary Budget - A $6,000.00 loss in revenue as a result of the County taking over tax collection beginning in April rather than June of each year has been added to the Preliminary Budget. - There is a decrease in salary and fringes in the Part Town Budget because of the reorganization of the Building and Zoning Department. - Not added in the Preliminary Budget is money for a security officer for the justice court. Supervisor Valentino felt this discussion should be held with the incoming justice. Supervisor Valentino and Mr. Carvill distributed information on the impacts on fund balance of a tax rate of 20-cent/1 000 of assessed rather than 30-cent/1 000 of assessed value. (See attached Sliding Tax Rate Scale and An Estimated View of Fund Balance Position) 10 November 10, 2005 Town Board Meeting Approved December 12, 2005 Supervisor Valentino delayed discussion to open the public hearing on the budget at 6:15 p.m. The hearing was published and posted as required. There was no one from the public to comment and Supervisor Valentino closed the hearing at 6:16 p.m. Returning to discussion of the distributed information, Supervisor Valentino told the Board there was a bit of good news that helps a little bit if the Board wants to look at lowering the tax rate from 30 cents to 20 cents. The Town received the year's final mortgage tax payment and it was $91,000 more than budgeted. Additionally, sales tax revenue for the 3 rd quarter was 2% higher than it was last year at this time. Supervisor Valentino and Mr. Carvill did some calculations of the three quarters and if the trend continues it looks as if what the projected as a $191,000 shortfall is not going to happen. The Board then reviewed the information. Councilman Stein commented that four years ago the Town used to fund the general fund with sales tax revenue but have been taking that away to pay for increasing highway costs. He stated the Town has reached the end of the road on that and, if highway expenses continue to increase, they will have to make a real estate tax for part town. Supervisor Valentino added, "or Highway" and told him that, if they do not receive enough sales tax, he was right. Supervisor Valentino commented that the Highway budget has begun to level off a bit, but it comes down to policy and priority decisions. To a large extent what has been fueling the Highway budget is not Highway expenses themselves but what the Town has been spending for their parks, trails, and open space. In the coming years the Town Board will need to make decisions and talk to the public about whether they want to continue funding these things at the rate the Town has been able to fund them in the past. In response to questions from Councilman Lesser, Mr. Carvill stated the Town is now approaching a level where they do not want to be dipping into fund balance. The consideration before the Board of going from 30 cents to 20 cents is certainly feasible but Mr. Carvill did not feel it was one that was practical or financially prudent to exercise. He projected that a 10-cent reduction in the tax rate, given the projected 4% increase in expenses and a possible reduction in mortgage tax revenue would result in a 2007 tax rate of $1.78 per thousand. Councilman Burbank felt Mr. Carvill had made a convincing case for the 30-cent rise in the tax rate and encouraged the Board to stay with what was adopted in the Preliminary Budget. Supervisor Valentino commented that even with the $1.68 tax rate the Town of Ithaca is still one of the lowest tax rates in the County. For all the residents outside the Village of Cayuga Heights the fire tax has been lowered by 10 cents. This means only a 20 cents increase for people outside of the Village of Cayuga Heights. Additionally, because of a reduction in the sewer benefit charge there's a savings there of around $20.00. For people with water and sewer that will put them at either a no increase or, in some cases, a tax decrease. While not the case for everyone, it will effect the majority of the people that live in the Town of Ithaca and they will not see any significant tax increase. Supervisor Valentino told the Board she felt more comfortable with the $1.68 rate than the $1.58 rate. 11 November 10, 2005 Town Board Meeting Approved December 12, 2005 Councilman Stein stated he felt the discussions become muddled by talking about the tax rate. He thought the tax rate is not a number that matters to individuals, what matters to individuals is how much money they pay and how much more money they are going to pay this year than last year. He stated the Board should be very careful about either congratulating themselves or slapping themselves because the tax rate goes up or down. Mr. Stein felt the number that they ought to look at to decide on whether they are spending more money or less is the tax levy. It's not been true that the tax levy has been flat; the tax rate has been flat but the levy has not been flat and it's gone up at a rate of roughly 8% per annum. Likewise it is the same thing about comparing the Town's real estate taxes to other towns in the area. Maybe that's because we do things more efficiently than other towns or maybe it's because our property is assessed higher in this town than it is in other towns. Ms. Valentino stated that Mr. Stein was right, the levy is a very important indicator, but just like the tax rate or anything else, it is not the whole story. For example, in the Town this past year, there was an assessment increase rate of what she believed was 9%, but 20% of that 9% is brand new housing that has never been on the tax roll before. So just to say everybody's taxes +s going to up because of that, well in a Town like Ithaca, mainly a bedroom community without a lot of commercial growth, the growth that we get also increases the Town's costs. There are more roads to take care of, more water and sewer to take care of, services to provide. If your growth in housing is going to grow, then your levy has to grow with it. You can't keep it static. Supervisor Valentino stated that what she and Mr. Carvill are talking about is keeping those things in balance. You are not going to have a static tax levy or a lower tax levy when you have additional responsibilities because there is additional growth. What you hope for, and it's not always true, most of the statistics show this, that the additional growth does not always provide you with additional revenue to lower people's costs. In fact often, it's exactly the opposite. The additional housing causes more costs for the Town to maintain those things. That is why it is important and has always been the Town's policy to try to keep the growth rate under control. Councilman Stein responded stating Ms. Valentino was absolutely right there is no question that the tax levy has to be adjusted for the new housing and these numbers are complicated and it's hard to get a real numerical answer to the kinds of questions he has been talking about. It's true that the increase in the levy is not only rising assessments, but he thought it was dominated by rising assessments. But Ms. Valentino is absolutely right that if you want to make a study of it in terms of the tax burden on individuals you subtract the new construction and Mr. Stein felt new construction probably, on the average, averages out. You probably get as much increase in taxes as you do increase in services that new construction means more people and more people mean more services. It probably all averages out in the end. Councilman Engman agreed with Mr. Burbank that the budget has been worked on very hard and his purpose in asking for the implications of a 20 cent rather than 30 cent increase in the tax rate was to make sure the Board looked at things very hard. He does not feel uncomfortable with the higher levy. He agreed it gave more of a cushion for the future. Mr. Engman had four questions: 12 November 10, 2005 Town Board Meeting Approved December 12, 2005 He noticed in the Personnel Committee minutes that the health insurance rates were going to be half of what was anticipated and wondered if those saving showed up in the budget and how much would they be. Supervisor Valentino told him they had left the 20% increase, $60,000, in the budget at this point. What she would like to talk to the Town Board about is taking part of that money and putting it into the Benefit Reserve Fund so that the Town can respond to spikes in the State Retirement or health insurance premiums. He noticed the total increase from Preliminary to Tentative was $58,300. The biggest item was adding in the gas and petroleum products. Now that gasoline prices are dropping, Mr. Engman asked if there was going to be a little more of a safety valve. Supervisor Valentino explained that as a municipality we do not pay the gasoline taxes that consumers pay at the pump. Those taxes are not based on quantity used. When the gasoline price itself doubles and not the taxes, it shows up in as a bigger increase. Mr. Engman asked for clarifications of "General Benefit Purposes". Supervisor Valentino told him it was the Benefit Reserve mentioned earlier. Mr. Engman stated there was something called "add revenue and other sources" in the Summary by Fund Balance that was in the Tentative Budget. He did not see an estimate for that in 2005. Mr. Carvill told him the reason he did not see it in 2005 is because 2005 is not over yet. Mr. Engman asked if he could provide an estimate, stating the average for the past 5 years has been about 2.5 million dollars. He wondered if 2005 was going to be in line with that number. Mr. Carvill responded stating when you look at 2001, 2002, 2003, 2004 you are going from the end of one year to the beginning of the next year and in the current year that you're looking at Mr. Carvill needs to add in the revenue sources of the current year's budget, take out the current year's expenses to give you that estimated number. When Mr. Carvill gets to 2005 the year hasn't closed out yet. What the number is actually showing at the end of the year is what are the actual revenues and other resources. Supervisor Valentino asked the Board if there was any more discussion about the budget. There was not and Supervisor Valentino moved adoption. TB RESOLUTION NO. 2005-164: Adoption of the 2006 Town of Ithaca Final Budget WHEREAS, the properly advertised public hearing has been held to consider the adoption of the 2006 Preliminary Town of Ithaca Budget as the 2006 Town of Ithaca Final Budget; and WHEREAS, the Town Board has discussed and reviewed all modifications to the said budget as presented by the Town Supervisor and Budget Officer; now, therefore, be it RESOLVED, the Town Board of the Town of Ithaca hereby approves and adopts the 2006 Preliminary Town of Ithaca Budget, as presented by the Town Supervisor and Budget Officer, as the 2006 Town of Ithaca Final Budget. MOVED: Supervisor Valentino 13 November 10, 2005 Town Board Meeting Approved December 12, 2005 SECONDED: Councilwoman Gittelman ROLL CALL VOTE: Supervisor Valentino, aye Councilwoman Grigorov, aye Councilman Lesser, aye Councilman Burbank, aye Councilwoman Gittelman, aye Councilman Engman, aye Councilman Stein, aye Agenda item No. 15 - Consider Approval of Delinquent Water and Sewer Charges on the 2006 Town and County Taxes (Attachment #5 — Delinquent Relevies for 2006 Town & County Tax Bills) TB RESOLUTION NO. 2005-165: 2006 Water & Sewer Relevy Delinquent 2004/2005 Water & Sewer Rents. WHEREAS, $ 72,205.24 of outstanding accounts receivables for water and sewer charges inclusive of penalties and related surcharges for the billing period 12/1 /04, 3/1 /05, 6/1 /05, and 9/1 /05 remain unpaid and due to the Town as of October 15, 2005; and TOWN OF ITHACA RECONCILIATION OF RECEIVABLES ITEM# DESCRIPTION WATER SEWER TOTALS 1 Delinquent Relevies $48,591.89 $23,613.35 $72,205.24 2 Penny Write Offs $ 00.00 $ 00.00 $ 00.00 3 Billing Credits $ (41440.53) $ 295.16 $ (41145.37) Account Receivable Balance: $445151.36 $23,908.51 $ 689059.87 WHEREAS, (Item No. 1 above) $ 72,205.24 of delinquent water and sewer charges inclusive of penalties and related surcharges for the billing period 12/1 /04, 3/1 /05, 6/1 /05, and 9/1 /05 remain unpaid and due to the Town as of October 15, 2005 to be relevied onto the 2006 Town and County Tax Bills; and WHEREAS, (Item No. 2 above) $ 00.00 of delinquent water and sewer charges to be written off the books; and WHEREAS, Local Town Law No. 2 of 1976 "WATER RENTS" and Local Town Law No. 6 of 1986 "SEWER RENTS" provides for all delinquent accounts for payment of water and sewer rents and related charges to be placed on the ensuing years tax roll as a relevy; NOW THEREFORE BE IT RESOLVED, that this governing Town Board approves delinquent water and sewer charges of $ 48,591.89 and $ 23,613.35, respectively, for relevy to the 2006 Town and County Tax Roll; and be it further 14 November 10, 2005 Town Board Meeting Approved December 12, 2005 RESOLVED, that a certified copy of this resolution along with a listing of those relevied water and sewer charges be given to Tompkins County Assessment Department for adding these delinquent charges to the 2006 Town and County Tax Roll, the Town Budget Officer for accounting purposes, and that Southern Cayuga Lake Intermunicipal Water Commission for the purpose of reconciling and account billing purposes. MOVED: Councilman Lesser SECONDED: Councilman Engman VOTE: Supervisor Valentino, aye; Councilwoman Grigorov, aye; Councilman Lesser, aye; Councilman Burbank, aye; Councilwoman Gittelman, aye; Councilman Engman, aye; Councilman Stein, aye. Agenda Item No. 16 - Consider Approval of 2006 Health Insurance Rates Supervisor Valentino reported that insurance rates had gone up only 7.84% and commended the staff and Ms. Drake in particular for the work in figuring out ways to cut these costs. Supervisor Valentino reminded the Board that on November 17 th at 2:30 p.m. Carol Swayze, Supervisor of Owego, will be speaking to the Revenue Sharing Group regarding Tioga County's Council of Governments. One of the things that this group has been able to accomplish is a health care consortium. TB RESOLUTION NO. 2005-166: Approval of Health Insurance Plan for 2006 WHEREAS, the Human Resources Manager has received the annual renewal for health insurance for 2006 from Excellus BlueCross BlueShield of Central NY for the BluePPO Option H Plan, which resulted in an increase of 7.84% for monthly premiums; and $ 394.93- Individual $ 810.40 — Double $1,164.25 - Family WHEREAS, the Personnel Committee has discussed the rate increase and plan design options presented, and recommends no change to the plan; and WHEREAS, Town Board has discussed the increase as outlined by the renewal for 2006 and wishes to enter into an agreement with Excellus to provide the outlined BluePPO Option H Plan with no changes; and Now, therefore, be it RESOLVED, the Town Board of the Town of Ithaca does hereby authorize, and direct the Town Supervisor to enter into an agreement with Excellus BlueCross BlueShield of Central NY to provide the BluePPO Option H Plan for health insurance coverage for the employees, elected officials, and retirees upon the advice of the Attorney for the Town and the Human Resources Manager; and be it further 15 November 10, 2005 Town Board Meeting Approved December 12, 2005 RESOLVED, the monthly health insurance premiums for 2006 will be as follows; $ 394.93- Individual $ 810.40 — Double $1,164.25 - Family RESOLVED, Employees, Elected Officials, and retirees shall contribute based on the percentages prescribed in the Town 's Personnel Manual. • • Engman SECONDED: Supervisor Valentino VOTE: Supervisor Valentino, aye; Councilwoman Grigorov, aye; Councilman Lesser, aye; Councilman Burbank, aye; Councilwoman Gittelman, aye; Councilman Engman, aye; Councilman Stein, aye. Agenda Item No. 17 - Consider Approval of 2006 Dental Insurance Rates Employees pay 100% of their dental insurance. TB RESOLUTION NO. 2005-167: Approval of Dental Insurance Plan WHEREAS, the Town Board of the Town of Ithaca wishes to continue the agreement with Guardian, to provide dental insurance for certain Town of Ithaca employees, retirees and elected officials; and WHEREAS, the quote from Guardian increases the individual and family monthly rates 17% for 2006, which changes the rates as follows: 2005 $29.50 Individual $79.71 Family 2006 $34.52 Individual $93.27 Family Increase $ 5.02 $13.56 F, MAI Z � WHEREAS, the Town Board has discussed the coverage and the 17% premium increase as outlined; Now, therefore, be it RESOLVED, the Town Board of the Town of Ithaca does hereby authorize and direct the Town Supervisor to enter into an agreement with Guardian to provide dental coverage for 16 November 10, 2005 Town Board Meeting Approved December 12, 2005 certain Town of Ithaca employees, retirees and elected officials upon the advice of the Attorney for the Town and the Human Resources Manager; and be it further RESOLVED, all participants are required to pay 100% of the monthly premiums, which are $34.52 for individual coverage and $93.27 for family coverage. MOVED: Councilman Lesser SECONDED: Councilwoman Gittelman VOTE: Supervisor Valentino, aye; Councilwoman Grigorov, aye; Councilman Lesser, aye; Councilman Burbank, aye; Councilwoman Gittelman, aye; Councilman Engman, aye; Councilman Stein, aye. Agenda Item No. 19 - Consider Approval of Increase in Maximum Contribution Level for Medical Care Reimbursement Accounts Councilman Stein asked who keeps the money if any employee under spends. Ms. Drake told him the Town has a separate savings account for this payroll deduction. If there is money that is not spent out it stays in that account to hopefully offset any loss. TB RESOLUTION NO. 2005-168: Approval of Increase in Maximum Contribution Level for Medical Care Reimbursement Accounts WHEREAS, the Town authorized providing employees a Flexible Spending Program effective January 1, 2005, with a maximum employee contribution level of $1,000 for the Medical Care Reimbursement Account for the first year, with the option to change the amount, if recommended in the future; and WHEREAS, the Personnel Committee discussed employees requests to increase the maximum contribution level to $2,000; and WHEREAS, the Personnel Committee recommends increasing the maximum contribution level for the Medical Care Reimbursement Account to be $2,000; now, therefore, be it RESOLVED, the Town Board of the Town of Ithaca does hereby approve increasing the maximum contribution level for the Medical Care Reimbursement Account from $1,000 to $2,000, to be effective January 1, 2006. MOVED: Supervisor Valentino SECONDED: Councilwoman Grigorov 17 November 10, 2005 Town Board Meeting Approved December 12, 2005 VOTE: Supervisor Valentino, aye; Councilwoman Grigorov, aye; Councilman Lesser, aye; Councilman Burbank, aye; Councilwoman Gittelman, aye; Councilman Engman, aye; Councilman Stein, aye. Agenda Item No. 19 — Consent Councilman Engman questioned the voucher to the Country Club of about $2,000 and wondered what the Town would be paying the Country Club for. Mr. Carvill explained that it is a refund of development review fees. TB RESOLUTION NO. 2005- 169: Consent Agenda Items. BE IT RESOLVED, that the governing Town Board of the Town of Ithaca hereby approves and/or adopts the resolutions for Consent Agenda Items as presented. MOVED: Councilman Lesser SECONDED: Councilwoman Grigorov VOTE: Supervisor Valentino, aye; Councilwoman Grigorov, aye; Councilman Lesser, aye; Councilman Burbank, aye; Councilwoman Gittelman, aye; Councilman Engman, aye; Councilman Stein, aye. TB RESOLUTION NO. 2005-169a: Town Board Minutes of October 6,2005, October 1 2005 and October 17, 2005 WHEREAS, the Town Clerk has presented the minutes for Town Board Meeting held on October 6, 2005, October 14, 2005 and October 17, 2005 to the governing Town Board for their review and approval of filing; now therefore be it RESOLVED, the governing Town Board does hereby approve for filing the minutes for the meeting held September 12, 2005 as presented at the October 17, 2005 board meeting. MOVED: Councilman Lesser SECONDED: Councilwoman Grigorov VOTE: Supervisor Valentino, aye; Councilwoman Grigorov, aye; Councilman Lesser, aye; Councilman Burbank, aye; Councilwoman Gittelman, aye; Councilman Engman, aye; Councilman Stein, aye. TB RESOLUTION NO. 2005-164: Adoption of the 2006 Town of Ithaca Final Budget WHEREAS, the properly advertised public hearing has been held to consider the adoption of the 2006 Preliminary Town of Ithaca Budget as the 2006 Town of Ithaca Final Budget; and WHEREAS, the Town Board has discussed and reviewed all modifications to the said budget as presented by the Town Supervisor and Budget Officer; now, therefore, be it ffelo] November 10, 2005 Town Board Meeting Approved December 12, 2005 RESOLVED, the Town Board of the Town of Ithaca hereby approves and adopts the 2006 Preliminary Town of Ithaca Budget, as presented by the Town Supervisor and Budget Officer, as the 2006 Town of Ithaca Final Budget. MOVED: Supervisor Valentino SECONDED: Councilwoman Gittelman ROLL CALL VOTE: Supervisor Valentino, aye Councilwoman Grigorov, aye Councilman Lesser, aye Councilman Burbank, aye Councilwoman Gittelman, aye Councilman Engman, aye Councilman Stein, aye TB RESOLUTION NO. 2005-169c: Bolton Point Abstract WHEREAS, the following numbered vouchers for the Southern Cayuga Lake Intermunicipal Water Commission have been presented to the governing Town Board for approval of payment; and WHEREAS, the said vouchers have been audited for payment by the said Town Board; now, therefore, be it RESOLVED, that the governing Town Board hereby authorizes the payment of the said vouchers. Voucher Numbers: 609-613, 691-697, 699-754 Check Numbers: 8570-8573, 8575, 8654-86602 8662-8716 Operating Fund $257,999.55 1998 SCADA Capital Project $ 8,715.77 2002 Office Space Addition $ 6,299.11 TOTAL $271014.43 MOVED: Councilman Lesser SECONDED: Councilwoman Grigorov 19 November 10, 2005 Town Board Meeting Approved December 12, 2005 VOTE: Supervisor Valentino, aye; Councilwoman Grigorov, aye; Councilman Lesser, aye; Councilman Burbank, aye; Councilwoman Gittelman, aye; Councilman Engman, aye; Councilman Stein, aye. Additional Business Leaf Pickup Mr. Noteboom commented that the Public Works Department has received numerous calls requesting that the fall leaf pickup be extended because the leaves have fallen off the trees so late this year. The Town is picking up bagged leaves through the month of November, but Mr. Noteboom is hesitant to extend the loose-leaf pickup without Board permission because it is set by board resolution. Mr. Noteboom would like to see the Town move toward a bag leaf pickup entirely and not have the specialized equipment. It is something he would like to have put on the Public Works agenda. Councilman Stein was hesitant to extend the leaf pickup because people would be upset to see the vacuum make a second sweep after they had already taken the time to bag the leaves. He felt that the Board should stick to the policy established. The board further discussed allowing the extension of the leaf pickup and the associated cost. TB RESOLUTION NO. 2005-170: Authorization to Extend Leaf Pickup for One Week Be it Resolved, that the Town Board of the Town of Ithaca authorizes extending the fall leaf pickup for one week. MOVED: Councilman Engman SECONDED: Councilman Lesser Supervisor Valentino, aye; Councilwoman Grigorov, aye; Councilman Lesser, aye; Councilman Burbank, aye; Councilwoman Gittelman, aye; Councilman Engman, aye; Councilman Stein, nay. Sales Tax Abatement Supervisor Valentino wanted to get a sense from the board on their feelings about the proposed sales tax abatement because she would be attending the meeting at the County. She wondered whether the Board felt they should ask the County to vote for or against the abatement. Councilman Burbank asked for further clarification of the tax abatement. Supervisor Valentino explained that when someone buys clothing under $100 per item, there would not be sales tax. The abatement would be year round. Councilman Burbank felt that was significant and that there was a better way to help the people the tax abatement was attempting to help. 20 November 10, 2005 Town Board Meeting Approved December 12, 2005 Councilwoman Gittelman thought that it would be helpful for low-income families, but that it really opened up a can of worms. Councilman Stein thought that the way to look at it was the sales tax receipts would go down and that the property tax revenue would go up. It would be a direct transfer from sales tax to an increased property tax rate. Supervisor Valentino added that the County would lose approximately $790,000. Councilman Engman wanted to urge the Board to advise the County to say no. He did not trust that the tax abatement would be for the entire year and felt it was better to keep it the way it was because people can plan based on what it is now. It also is not going to save governments any money. Governments will have to raise the monies somehow since the budgets are already set. The money will need to be raised somehow and it will come out of real estate. People complain most bitterly about taxes on real estate. Councilman Lesser wanted to go on record supporting the tax abatement in the area. He considered sales tax on essential items, including lower priced clothing, as very regressive taxes. It is shifting it to a category that is less regressive. He also expressed the concern that if Tompkins County does not follow the tax abatement, and the surrounding counties do, there will be a shift in sales out of the County. Councilman Lesser thought you could make the same argument for putting sales tax on food. If you put sales tax on food then more sales tax revenue would be raised. Councilman Stein countered the same argument could be made for gasoline and that there is no end to these arguments. Councilman Engman would support what Councilman Lesser was saying if the State would increase the income tax to compensate and share that money with localities. The income tax is the true less regressive tax, but that is not being proposed. Supervisor Valentino asked for direction from the Board and took a straw vote. Supervisor Valentino, Councilman Burbank, Councilwoman Gittelman, Councilman Engman, and Councilman Stein were against the tax abatement. Councilman Lesser and Councilwoman Grigorov were for the tax abatement. Councilwoman Grigorov felt that people needed the tax abatement. Supervisor Valentino said that there are ways for people to figure out how to clothe themselves and their children, but there was nothing that can be done about the property tax. Councilwoman Gittelman added that the property tax was pushing people out of the County because of the high prices on housing. The Board decided to report the majority opinion of the Board. Pedestrian Light Petition Supervisor Valentino acknowledged receipt of a petition from residents around Warren Road and Hasbrouck Apartments requesting a light at the pedestrian crosswalk by the school. Supervisor Valentino would like to forward the petition to the Public Works Committee. 21 November 10, 2005 Town Board Meeting Approved December 12, 2005 Annual Association of Towns Meeting Supervisor Valentino mentioned that she had put money in the 2006 budget for a couple of Board members to attend the annual Association of Towns Meeting in February. Interested Board Members should let Supervisor Valentino know. Reception for Departing Board Members Mr. Carvill and Supervisor Valentino asked Councilman Lesser and Councilwoman Grigorov to provide them with a guest list for a reception that they would like to have to thank them for their service to the Town. Adjournment On motion by Councilman Engman, the meeting was adjourned at 7:31 p.m. Respectfully submitted, Tee -Ann ""tnleiv Town Clerk Next Meeting — November 14,, 2005 22