HomeMy WebLinkAboutMeeting Notes 2-24-2016
1
BUDGET COMMITTEE
Meeting Notes - February 24, 2016
Committee present: Eric Levine - Chairman, Bill Goodman, Pat Leary
Staff present: Mike Solvig, Judy Drake
Others present: Pamela Bleiwas
Meeting was called to order at: 12:03 p.m.
AGENDA ITEMS:
• Review and approve meeting notes.
Committee members reviewed and approved the meeting notes from July 29, 2015, September
16, 2015 and January 27, 2016.
• Financial Report for the Year Ended December 31, 2015.
The Committee reviewed the Financial Report for the Year Ended December 31, 2015. Mr. Solvig
noted that these are the final numbers the 2015 accounting records closed with. These numbers
are still subject to audit, and will probably change slightly when the 2015 Audit is completed.
• Discuss Town's Reserve Funds and Accounts.
The committee reviewed and discussed the report on the Town’s reserve funds and accounts.
- Parks, Recreation and Open Space Plan Account: This account in the General Fund reserves
resources for future park and recreation facility development and the purchase of
development rights to preserve open space within the Town. This account, funded by
annually re-designating a portion of the General Fund’s fund balance from unreserved to
reserved, had a balance of $811,260 as of December 31, 2015. An additional $75,000 in
unreserved fund balance was designated as reserved for this purpose by the Town Board on
January 11, 2016 (Resolution No. 2016-018).
- General Benefit Reserve Account: The aggregate balance of this reserve as of December 31,
2015 was $366,316. The balance by fund is as follows:
General Townwide Fund $ 180,522
General Part-Town Fund 63,595
Highway Part-Town Fund 99,954
Water Fund 14,234
Sewer Fund 8,011
Total - Benefit Reserve: $ 366,316
In 2015 the Town Board set the maximum for this account at $350,000, with the balance in
excess of the maximum at year-end to be returned to the unreserved fund equity of the host
funds. Mr. Solvig presented to the Committee a funding analysis, based on 2016 budget
amounts for retirement and health insurance benefits, that would adjust the amounts in the
General Benefit Reserve to $350,000. After discussion, the Committee directed Mr. Solvig to
adjust the reserve amounts to reflect the $350,000 maximum.
2
The adjusted balance by fund would be as follows:
General Townwide Fund $ 169,180
General Part-Town Fund 59,933
Highway Part-Town Fund 88,404
Water Fund 17,849
Sewer Fund 14,634
Total - Benefit Reserve: $ 350,000
- Preserve Maintenance Account: The General Townwide Fund includes funds designated for
the maintenance of the Pine Tree Wildlife Preserve, donated to the Town by a local family in
2013. In conjunction with the donation of the land, the amount of $40,000 was provided for
future maintenance of the preserve. As of December 31, 2015 the balance of this account
totaled $40,067. Future income for this account will be limited to interest earnings.
- Land Stewardship Account: In 2014 the Town purchased the development rights to the Indian
Creek Farm with financial assistance through a State of New York grant. This grant included
$10,000 to be held by the Town, designated for the stewardship of the Indian Creek Farm
lands. For the year ended December 31, 2015, the balance of this reserve totaled $10,010.
Future income for this account will also be limited to interest earnings.
- Highway Equipment Account: The fund balance of the Highway Part-Town Fund includes
funds set aside for the purchase/replacement of highway equipment and machinery. The
balance as of December 31, 2015 was $249,987. This reserve is funded by sale of surplus
machinery and equipment, with additional income from interest earnings. In 2015 the Town
Board set the maximum for this account at $250,000, with funds by sale of surplus machinery and
equipment in excess of the maximum to be deposited to the unreserved fund balance of the Highway
Fund.
Mr. Solvig commented that Jim Weber asked him to remind the Committee that the situation
with our current Badger excavator remains unresolved at this time. Replacement of the
Badger excavator would cost between $260,000 for a Gradall D152 to $345,000 for a Gradall
XL3100.
- Risk Retention Fund: This fund is used to account for expenditures for 1) direct employee
health and wellness expenditures, including work-related emergency room and clinic health
care visits, and 2) repairs to equipment and facilities not covered by insurance or until
reimbursement from insurance is received. Income for this fund is derived from annual
budgeted inter-fund transfers, plus insurance recoveries and interest income. Fund balance
was $160,316 as of December 31, 2015.
In 2015 the Town Board established the maximum fund balance of the Risk Retention Fund be
set at $150,000, with any amount in excess of the maximum at year-end to be returned to the
unreserved fund equity of the contributing funds. To meet the maximum fund balance,
approx. $10,300 would need to be returned to the contributing funds.
Mr. Solvig explained that the General Funds, Highway Fund, Water Fund and Sewer Fund are
each budgeted to transfer $4,100 (a total of $20,500) to the Risk Retention Fund in 2016. As
expenditures in this fund for 2015 totaled $10,156, his recommendation would be to make no
contribution in 2016 and see where the fund balance is at year-end of 2016. The Town could
make any necessary adjustments at that time.
3
- SJC Account in Sewer Fund: The Fund Balance of the Sewer Fund includes funds designated
for SJC purposes. In 2015 these purposes were defined as 1) to pay for expenditures related
to the improvement of jointly-owned sewer interceptor lines, and 2) to pay the Town’s share
of the City of Ithaca’s bonded debt issued to pay for IAWWTF improvements. The balance in
this account as of December 31, 2015 totaled $1,306,276.
Outstanding IAWWTF debt at December 31, 2015 totaled $17,275,790. The Town share
(40.88%) of this total amounts to $7,062,343. The Town Board determined it would be
prudent for the Town to designate funds to pay part of this debt in the event of future
economic hardships. It is determined that such funds would be in an amount equal to:
1) 25% of the Town’s share of outstanding IAWWTF debt at year-end, to be adjusted
annually. This amount, based on the December 31, 2015 outstanding debt, would equal
$1,765,586.
2) $300,000 to pay for future improvement of jointly-owned sewer interceptor lines.
Based on the above, the total designated for SJC purposes as of December 31, 2015 should be
$2,065,586. Mr. Solvig recommended that $250,000 be transferred from the unreserved fund
balance of the Sewer Fund to the SJC Account, increasing the balance of this account to
approx. $1,556,500. If the Town continues to make similar transfers over the next two years,
the desired funding level will be met.
• Revisions to Joint Youth Commission Budget for 2016.
The Committee reviewed a communication from the Joint Youth Commission (JYC) requesting a
budget amendment to the 2016 Ithaca Town Budget regarding the JYC programs. This would be
an increase to both the revenue and expenditure sides of the budget. This is the result of a late
increase in Tompkins County’s budget, after the Town had already approved its budget.
On the expenditure side, increases would be:
- Coddington Road Community Center’s Summer Youth Employment Program would increase
from $10,673 to $13,135, an increase of $2,462.
- Learning Web’s Community Career Exploration/Apprenticeship Program would increase from
$43,111 to $44,997, an increase of $1,886.
- Cornell Cooperative Extension’s Youth Employment Program would increase from $77,487 to
$84,753, an increase of $7,266.
On the revenue side, increases include:
- County funding to JYC would increase from $17,485 to $26,916, an increase of $9,431.
- County funding to Town of Caroline would increase from $9,207 to $14,173, an increase of
$4,966.
- Town of Ithaca contribution would increase from $88,052 to $89,813, an increase of $1,761.
The Committee briefly discussed this request from the JYC, and the JYC budgeting process. Mr.
Solvig commented that this is the one area of the Town’s budget that is usually still somewhat in
flux at the time the Town adopts its budget, as the County’s budget is (usually) adopted after the
Town’s.
A resolution amending the 2016 Ithaca Town Budget and increasing the appropriations to the JYC
programs will be placed on the March 7 Town Board meeting for review and consideration.
4
Subsequent to this meeting, TB Resolution No. 2016-045, amending the 2016 Ithaca Town Budget,
was adopted by the Town Board on March 7, 2016.
• Discuss Donation of Surplus Lawn Mower to Lake View Cemetery.
Lake View Cemetery is interested in acquiring a surplus lawn mower from the Town. This year the
Town will be replacing a Grasshopper lawn mower purchased in 2012 at a cost of $13,266. The
current cemetery board has had on-going discussions with the Town over the past couple years to
acquire one of our surplus mowers, allowing volunteers to do more of the lawn mowing and the
cemetery to contract out less for this service. Lawn mowing services cost the cemetery approx.
$20,000 in 2015. Trade-in value of the 2012 mower was estimated at $6,800.
The Committee briefly reviewed the proposed resolution and agreement for transferring the lawn
mower to the Cemetery. Mr. Solvig noted that Attorney for the Town Susan Brock is reviewing
both, and expects there will be some changes to the final documents. The resolution will be on
the agenda for the March 7 Town Board meeting.
Subsequent to this meeting, TB Resolution No. 2016-051d, transferring ownership of the surplus
lawn mower to Lake View Cemetery, was adopted by the Town Board on March 7, 2016.
• Property Tax Cap and Property Tax Freeze Programs.
Mr. Goodman reported that he learned some interesting information regarding the new Property
Tax Relief program at the Association of Towns meeting. Contrary to initial reports, municipal
compliance with the tax cap is not required for residents to be eligible for this program. Taxpayers
will only be eligible for tax rebate checks and income tax credits in years 2016 through 2019 if
their school district complies with the tax cap.
While the Town is still required to comply with the tax cap, either remaining under the annual
allowable increase or passing the tax cap override each year, there is no longer a financial penalty
to our residents for exceeding the tax cap.
• Other Items.
- Results of Surplus Equipment Auction: The Committee reviewed the report for the Surplus
Equipment Auction held on 2/02/2016 by Roy Teitsworth, Inc. This was an on-line auction. A
total of $8,996.65 was realized from the auction, $7,150 of which was from the sale of the
2006 Pipe Hunter tow-behind sewer vacuum machine. The remaining $1,846.65 was from the
sale of small sewer and surveying items. When these proceeds are received, they will be
deposited as follows:
General Townwide Fund $ 1,606.65
Highway Equipment Account 7,150.00
Sewer Fund 240.00
Total Auction Proceeds: $ 8,996.65
- Update on Costs for Town Hall Alterations: The Committee discussed the report on the costs
for the Town Hall Alterations. Fees for architectural services have totaled $29,270 to date,
with approx. $470 yet to be paid. Architectural services were not budgeted in 2015.
The contract for construction with Elmira Structures, Inc. was awarded for $121,600. There
were two change orders for an additional $3,178, making the total for construction $124,778.
Construction was budgeted at $100,000 in 2015. Furniture for the Clerk’s Office and PEZ areas
5
was budget for $45,000 in 2015, with actual costs at $20,621. We still have a few accessory
pieces employees have asked to add. We are looking into the cost of these items.
Total amount budgeted for construction and furniture in 2015 was $145,000. Actual costs
totaled $145,399. Due to the project overlapping two fiscal years, $84,596 was charged
against 2015, with the remaining $60,803 charged to 2016.
- Maplewood Apartments: Mr. Goodman informed the Committee of the recent meeting with
Cornell regarding their Maplewood Apartments expansion project. Targeted for use by
Cornell’s graduate students and faculty, this $80,000,000 project will rebuild the current
complex, increasing the number of beds by a factor of 2.5. This presents two challenges for
the Town:
1) Water Distribution: Potable water for the Maplewood Apartments comes from the Pine
Tree Water Tank. The current 200,000 gallon capacity tank is scheduled to be replaced
this year with a new 200,000 gallon capacity tank at a budgeted cost of $600,000. Staff
believes the capacity of this tank will be insufficient to serve an expanded Maplewood
complex. The replacement of the Pine Tree Water Tank has been put on hold until we
can reevaluate what the capacity of the new tank should be.
2) Inspections: An aggressive construction schedule that would allow for occupancy in time
for the 2018-2019 academic year will put a great deal of stress on our inspection staff. It
may be necessary for the Town to hire additional staff to meet this project’s schedule.
Town staff will be holding additional meetings with Cornell and AdR, the developer chosen by
Cornell for the Maplewood project, to review the project.
- Audit of 2015 Financial Statements: The auditors will be on-site at Town Hall on March 24 &
25 for preliminary field work.
The meeting was adjourned at 1:19 p.m.
Next Meeting: Wednesday, March 30, 2016 at 12:00 pm, Town Hall - Aurora Room