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Home My WebLink About2008-10-02 - TB SPECIAL TOWN BOARD BUDGET WORKSHOP OCTOBER 2, 2008 PRESENT : Supervisor Douglas Austic ; Council Mr. Ferrentino, David Kerness, Elizabeth Thomas and Lucia Tyler; Town Clerk Marsha L. Georgia. Meeting was called to order at 6 : 40 pm and Supervisor Austic reviewed the following: 2009 BUDGET CALCULATIONS ASSUMPTIONS 1 . Year End 08 fund balance = year end fund balance 07 + 08 Est. Rev. — 08 Est. App . Generally estimated revenues are based on the 9/30 operating statement divided by . 75 to relate to yearly totals unless there are some items that occur at certain times of the year, these are considered separately. (for instance Mortgage Tax etc .) 25 % of Appropriations is considered a healthy Fund Balance Estimated Year End 2008 Fund Balances (EYEFB) General Fund A EYEFB 4335264 + $634132 — $ 520959 = $448441 Unrestricted Fund Balance (URFB) = Total Fund Balance — Restricted Fund Balance (RFB) (reserves) A Unrestricted Fund Bal . _ $448441 — $ 83508 = $ 364933 25 % FB = $91233 Apparent Excess over 25 % _ $273700 General Fund B EYEFB = $213576 + $ 145062 - $ 143464 = $215174 B URFB= $215174 - $ 86598 = $ 128576 25 % FB = $43414 Apparent Excess over 25 % _ $ 85162 Highway Townwide DA EYEFB = $ 562347 + $ 584195 - $245658 = $ 891884 DA URFB = $ 891884 - $641807 = $ 250077 25%FB = $ 123337 Apparent Excess over 25 % _ $ 126740 Highway Part Town DB EYEFB = $205918 + $262915 - $222372 = $245461 DBURFB = $245461 - $66187 = 179247 25 %FB = $65728 Apparent Excess over 25 % _ $ 113519 2008 is the first year that the Town of Ulysses chose to receive its entire allocated share of Sales Tax from Tompkins County. It is important to remember that it is extremely hard to budget using unknown revenue such as sales tax so the 2008 budget only comprised about 75 % of the estimated sales tax revenue anticipated. However, this year' s sales tax receipts will exceed the budget by a considerable amount. 2008 budget used $454500 in sales tax revenue, however on an average monthly received basis this years sales tax receipts is estimated as $ 590000. Since we received all of the sales tax this year the county tax to Ulysses went up, therefore it is essential that Budget Work Shop 2 10/2/2008 we return all of this additional sales tax received ($ 135500) to the town residents as tax reductions. In addition due to the increasing fund balances in all of our funds above the standard suggested amount, we should be reducing our tax rate to return some of this excess to the taxpayer. In addition to all of these factors, the assessment in the town increased by almost 20% . The average taxpayer should expect that the tax rate would go down to keep the tax levy at a point we can live with and provide the services the town needs to provide to pits residents . In addition, I feel that in these unknown financial climate in the country that we should do all we can to keep things in line and do what ever we can to keep taxes as low as possible. . All of these considerations lead to my proposed budget which will reduce the tax rate by .47/ 1000 or approximately 29%. By using the non-property tax revenues and some fund balances to accomplish this, the actual tax levy will reduce by. $ 110500 or 19% . For those that say this is not sustainable, with our reserves and fund balances and a plan to use excesses in sales tax or fund balances to maintain a stable RP tax situation, this can be extended forward for several years and still provide for services needed. At this time, it would seem inappropriate to embark on any new non essential ventures to use the additional revenues for things that may seem important to some but in the short run have no real measurable impact on the town government and its residents. Revenue sources in the 2009 budget reflect the advice of Mr. Squires and can be seen in the reduction in the state aid sources in the budget. These reductions may or may not happen, but that is the best advice at this time. Mr. Squires also stated that he thought that 2009 sales taxes would remain approximately the same as this year. However, the budget does not reflect the total estimated sales tax revenues this year either. So it is possible that at the end of 2009 we will have an amount of excess sales tax to deal with. Appropriations are fairly constant with some increases and decreases determined by the use in the 2008 budget. The largest increases are found in both Highway budgets . The cost of fuel, salt and asphalt products are an unknown at this time and in some cases suppliers will not even quote a price for the future. In talking with Jim, the budget includes increases for such items such that we feel the budget will cover at least a reasonable increased price next year. Due to the healthy reserves in these funds we can pay cash for the bridge project and building project which have been planned for several years . The fund balances in these two funds will also help to make up any unforeseen larger increases in things we buy. The Board discussed having Mr. Austic create some sub-accounts to break items down in some of the accounts of CE to make them more self explanatory. The Board discussed areas where the majority would like to see funds allocated in the 2009 budget for things like water quality study, community building, web update and SPCA. The Board will meet again on October 15th, 2008 at 7PM to discuss the budget in more detail . Hearing no further business Mr. Ferrentino moved, seconded by Ms . Thomas to adjourn the meeting. Unanimously approved, meeting adjourned at 8 :45 pm. Respectfully submitted, Marsha L . Georgia Ulysses Town Clerk MLG: mlg