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HomeMy WebLinkAboutMN-IURAGOV-2023-10-26108 E. Green St. Ithaca, NY 14850 (607) 274-6565 MEETING MINUTES ITHACA URBAN RENEWAL AGENCY GOVERNANCE COMMITTEE (GC) 8:30 A.M., Thursday, October 26th, 2023 Common Council Chambers, Third Floor 108 E. Green St. (City Hall) │ Ithaca, NY 14850 Present: Kathy Schlather, Chairperson; Donna Fleming; David Whitmore; Susan Cummings Excused: None. Vacancy: 1 Staff: Nels Bohn; Charles Pyott (virtual) Guests: None I. Call to Order Chairperson Schlather called the meeting to order at 8:41 A.M. II. Agenda Additions/Deletions None. III. Verbal/Written Public Comments None. IV. Review of Meeting Minutes: July 28th, 2023 Whitmore moved, seconded by Fleming to approve the meeting minutes, with no modifications. Carried Unanimously: 4-0 V. New Business A. IURA 2023 Budget-to-Actual Analysis — Review Bohn explained that the budget needs to be submitted in draft form by November 1st. The first budget issue is a look at the current year-to-date budget versus what is actually being spent. As of the end of August, about 66% through the budget, we are at 62% of expenditures, which is on target. There is no major overspending. Looking at the revenues, the Agency is under-drawing down revenues to support staff expenses from HUD entitlement grants compared to the budget. In lieu of that, we are overspending slightly in other categories. Approved/Adopted: 1/19/24 Governance Committee October 26, 2023 Page 2 of 11 2 Governance Committee October 26, 2023 Page 3 of 11 3 Governance Committee October 26, 2023 Page 4 of 11 4 Governance Committee October 26, 2023 Page 5 of 11 5 Governance Committee October 26, 2023 Page 6 of 11 6 B. IURA Cash Financial Position Analysis — Review Bohn explained that these are the accounts held at Tompkins Trust Company of all of the cash assets. These accounts are categorized by the restrictions on how they can be used. For the most part, they are HUD funds and must comply with federal requirements. Once a year, we look at our cash balance in these accounts and compare it to last year’s cash balance. There are some accounts that are down in value and some that are up. The CD Revolving Loan Fund is down the most, almost $200,000. This is because three loans were issued from this account. The IURA Non-Federal account is made up of funds that can be used without federal restrictions, however, there are state restrictions that don’t allow these funds to be used for grants or loans. The money in this account comes from a variety of sources, primarily from the selling of urban renewal projects. Cummings asked what percentage of the development in town provides money towards the urban renewal agency. She also asked if a municipal social public maintenance fund exists anywhere. Bohn replied that he would need to do further research into this question to see if other communities have done something similar. The bank account analysis shows that we are still very solvent. Governance Committee October 26, 2023 Page 7 of 11 7 Governance Committee October 26, 2023 Page 8 of 11 8 C. Clarify Financial Audit Fee Responsibility (19:27) Bohn explained that the city has covered the IURA’s audit costs since the inception of the IURA, since the IURA is primarily managing the City’s CDBG and HOME funds, and auditors consider the IURA’s finances a “blended component of the City” — in other words, it has to be included in the City’s audit. The City has fallen behind in the completion of its audit, which means that the IURA had to hire its own auditors. The IURA has been paying $900 to $1,000 for the convenience of having the audit packaged as a separate financial report, which is then fed into the City’s audit when it’s completed later in the year. Since Insero did not do the City’s 2022 audit, the IURA had to hire Insero & Company, LLP to do the audit, which was $11,500. This is not a cost the IURA can continue to absorb. This resolution puts asks the City to reimburse the IURA for the audit costs. Whitmore moved, seconded by Fleming: Clarify Financial Audit Fee Responsibility WHEREAS, the IURA administers federal CDBG and HOME grants awarded to the City of Ithaca (City) which account for the majority funds held by the IURA, and WHEREAS, the IURA finances are considered a blended financial component of the City which must be included in the City’s annual financial reports, and WHEREAS, the IURA is required by Public Authorities Law to submit a financial audit within 90 days from the end its fiscal year (March 31st deadline), and WHEREAS, the City is required by to submit a financial audit within nine months from the end if its fiscal year (September 31st deadline), and WHEREAS, for over a decade, the IURA has paid the City’s auditor a separate packaging fee to prepare an IURA financial report with the City covering the cost of the audit work which is integrated into the City’s annual financial audit, and WHEREAS, in 2022, the City’s long-time independent auditor declined to continue auditing the City’s finances, and Governance Committee October 26, 2023 Page 9 of 11 9 WHEREAS, a new auditor was not procured by the City in time to meet the IURA’s deadline to submit its financial audit for fiscal year 2022, and WHEREAS, the IURA procured an auditor to prepare FY 2022 financial reports at a cost of $11,500, and WHEREAS, the IURA had not budgeted for this unplanned auditing expenses for which the results are integrated into the City’s financial audit, and WHEREAS, IURA administrative funding derived from CDBG and HOME grants cover only approximately 45% of the IURA’s operating expenses, and an ongoing audit fee of $11,500 or more will contribute to creation of an IURA structural deficit where expenses exceed annual revenues, and WHEREAS, at their October 26, 2023 meeting, the IURA Governance Committee considered this matter and recommended the following; now, therefore, be it RESOLVED, that the IURA hereby requests the City of Ithaca to restore its past practice of paying audit fees to conduct annual financial audits of the City that includes IURA finances as IURA finances are a blended financial component of the City of Ithaca, and be it further RESOLVED, that the IURA respectfully requests the Mayor to clarify to the City Controller that the scope of the City’s annual financial audit shall include IURA finances, which finances are a blended financial component of the City’s finances, and that such audit cost shall be borne by the City, with the exception of the cost to package and prepare a separate IURA financial report, and RESOLVED, any future IURA audit fees incurred by the IURA are hereby authorized, subject to the Mayor’s approval, to be reimbursed to the IURA from the City from funds the IURA collects on behalf of the City from loans and leases, minus any additional audit fee to package and prepare a separate IURA financial report by the March 31st deadline. Carried Unanimously: 4-0 D. Proposed 2024 IURA Budget Bohn explained that there is a proposed 3.4% increase, up to $432,000 for the administrative budget. Health insurance went up 7.5%, while the salary proposal is a 3.7% increase. There are no major increases in expenditures. The budget increase last year was a similar percentage (3.5% increase.) Going forward, Bohn predicts that the IURA will be fine in 2024 and 2025, but after that, the IURA will run out of special funding that was awarded during COVID-19. The IURA needs to figure out a new revenue source(s) before 2026. Fleming moved, seconded by Whitmore: 2024 IURA Budget WHEREAS, the IURA desires to annually adopt an administrative budget to guide expenditures and manage financial resources of the IURA, and Governance Committee October 26, 2023 Page 10 of 11 10 WHEREAS, New York State law governing public authorities requires submission of a proposed budget 60 days prior to the start of the next fiscal year, and WHEREAS, the IURA budget is due to be submitted to the New York State Authorities Budget Office (ABO) by November 1st of each year, and WHEREAS, the IURA Governance Committee reviewed this matter at their October 26, 2023 meeting and recommended the following; now, therefore, be it RESOLVED, that the IURA hereby adopts the FY 2024 IURA Administrative Budget, dated 10/23/23. Carried Unanimously: 4-0 VI. Other Business A. IURA Mission Statement Schlather asked if there were any comments on the Mission Statement. Cummings noted that she did not like the use of the word “strive,” since that seems to suggest that they are working towards something which has not been achieved yet. She would prefer a declarative statement. Schlather suggested saying that the IURA is committed to its goals. Fleming moved, seconded by Whitmore (as amended): Amended IURA Mission Statement WHEREAS, the Ithaca Urban Renewal Agency (IURA) adopted the following mission statement on March 25, 2011: The Ithaca Urban Renewal Agency secures and manages resources to improve the social, physical and economic characteristics of the City of Ithaca by expanding access to quality affordable housing, strengthening neighborhoods and the local economy, and supporting other community development activities. And, WHEREAS, Public Authorities Law requires authorities, such as the IURA, to conduct annual review of its mission statement and post its mission statement on its website, and WHEREAS, at its July 2023 meeting, the IURA Governance Committee recommended the Agency consider incorporating concepts of equity and sustainability into the mission statement, and WHEREAS, at its August, 2023 meeting, the Agency endorsed the Governance Committee’s recommendation and referred suggested edits to the mission statement for the Governance Committee’s consideration, and WHEREAS, at their October 26, 2023 meeting, the IURA Governance Committee considered edits to the mission statement and recommended the following action; now, therefore be it Governance Committee October 26, 2023 Page 11 of 11 11 RESOLVED, that the IURA hereby adopts the following amended IURA Mission Statement: The Ithaca Urban Renewal Agency secures and manages resources to improve the social, physical and economic characteristics of the City of Ithaca by expanding access to quality affordable housing, strengthening neighborhoods and the local economy, and supporting other community development activities. The IURA is committed to carrying out its mission in an equitable and sustainable manner, and to build and maintain an inclusive community with the input of the people and organizations we serve. Carried Unanimously: 4-0 B. Review of IURA Financials: August/September 2023 Bohn reviewed the Grants Summary, explaining that the left-hand “On Schedule” column calls out any projects (with a ) that are not progressing on schedule and may need attention. Both the New Gym Renovations and GIAC Youth Programming projects are behind in their submission of reimbursement requests to the IURA. Bohn reported all Loan Payments and Lease Payments are current, as of today, except Southside Community Center, Inc. (SSCC), which is one month late. C. Staff Report Bohn remarked that staff has been working on completing the Consolidated Annual Performance Evaluation Report (CAPER). Staff is also in the beginning stages of drafting the 2024-2028 Consolidated Plan. The Planning Office has been able to fill up its vacant positions. The Conference Center is scheduled to open in April. The next Committee meeting will be the third Friday in January (the 19th). VII. Adjournment The meeting was adjourned by consensus at 9:30 A.M. — END — Minutes prepared by C. Pyott, edited by N. Bohn.