HomeMy WebLinkAboutMeeting Notes 5-25-2016
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BUDGET COMMITTEE
Meeting Notes - May 25, 2016
Committee present: Eric Levine - Chairman, Bill Goodman, Pat Leary
Staff present: Mike Solvig, Judy Drake, Jim Weber, Susan Ritter
Others present: None
Meeting was called to order by Chairman Levine at: 12:01 pm.
AGENDA ITEMS:
• Review and approve meeting notes from March 23, 2016 and May 4, 2016.
Committee members reviewed and approved the meeting notes from March 23, 2016. The
meeting notes from the May 4, 2016 meeting will be revised and brought back for review at the
June 29 meeting.
• Update on Sales Tax and Mortgage Tax collections for First Quarter of 2016.
Sales Tax Collections: The Committee reviewed Sales Tax collections for the first three months of
2016. Mr. Solvig reported that collections are down by 5.9% from the prior year, decreasing from
$703,301 in 2015 to $661,979 in 2016. This is the second year where collections have decreased
over the first quarter from the prior year.
Mr. Solvig also reported that the Town received the April payment from the County this past
Monday, in the amount of $252,208. This is an increase of 8.3% over the $232,815 received in
April 2015. On a year-to-year comparison for the first four months, 2016 collections of $914,187
represent 97.7% of 2015 collections of $936,117.
Total Sales Tax collections were budgeted at $3,000,000 for 2016.
The Budget Committee meeting was suspended at 12:11 to allow for a Special Meeting of the
Town Board. The Budget Committee meeting resumed at 12:14.
Mortgage Tax Collections: The Town received $115,240 for the first installment of Mortgage Tax
collections in 2016. This is an increase of 21.7% over 2015 collections of $94,669 for the same
period. Mortgage Tax collections were budgeted at $300,000 for 2016.
Mr. Solvig informed the committee that based on the year-to-date collections, the Town may be
very close to collecting the budgeted amounts for 2016. In recent years, we collected more than
budgeted, but it looks like that cushion is now gone.
• Review Differentials between Wage Classification Scales in preparation for FY 2017 Budget
(from May 18 Personnel and Organization Committee meeting):
Ms. Drake informed the committee that the Personnel & Organization Committee reviewed the
differentials between several wage classifications at their May 18 meeting. She reviewed with the
committee spreadsheets detailing the differentials between the D through G classes on the Office
Wage Classification and the differential between the VI class on the Field Wage Classification and
G class on the Office Classification. During the revamping of the whole classification structure and
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wage comparison in 2012 it was determined that more review of the middle management classes,
especially the engineering track, needed to be done in the future. As we move forward with the
2017 Budget process, this is the time to start making corrections to this part of the wage scale.
Ms. Drake explained that under the 2016 wage scale there is only a 3.71% difference in the Job
Rate from class D (top administrative positons) to class E (initial level positions for planning,
engineer & codes). Based on the work requirements, including decision making and independent
judgement of the positions in the two classes, there should be a percentage difference closer to 8-
12%. Judy reviewed the proposed differentials for the 2017 Wage Scale. She is beginning work on
a 2% cost of living adjustment for 2017 wages and then will work on making adjustments to bring
the differentials between classifications in line. This was reviewed and discussed at the May 18
P&O Committee meeting, where members were in favor of making adjustments to the
differentials. Ms. Drake explained that she will present a 2017 draft wage scale at the July
meeting with a proposed 2% COLA and then a second one with differential changes after the
proposed 2% COLA is applied. The committee will need to consider the recommendation and
decide if the changes should occur all in one year or need to be spread out over two or more
years. That recommendation would then be brought back the Budget Committee.
Ms. Drake further explained the Town’s current setup for succession planning in the Field
Classification. A Laborer is encouraged to get a Commercial Driver’s License for promotion to
Motor Equipment Operator (MEO) if an opening occurs. Likewise, MEO’s are encouraged to get a
class A CDL for promotion to Heavy Equipment Operator (HEO) if an opening occurs. There has
been the need to provide this same type of incentive for succession planning in the Civil
Engineering track. Currently the Civil Engineer is in class E and the Senior Civil Engineer (requires a
PE license) is in class G. The goal is to create a Civil Engineer with PE license title at the class F
level. This would not create another position, but would encourage a Civil Engineer to complete
the requirements for obtaining a PE license. This would strengthen the set up that we have now
with a Civil Engineer with a PE license available to promote to the Senior Civil Engineer position.
P&O Committee was in favor of this plan.
• Discuss Resolutions and Local Law for Property Tax Cap Override for FY 2017.
The Committee reviewed the resolutions and local law for the property tax cap override for FY
2017. The resolution to set the public hearing will be on the June 13 Town Board agenda, setting
the public hearing for July 11 at 5:30 pm. Consideration of adoption of the local law will be
scheduled for the July 11 Town Board meeting following the public hearing.
• Initial Review of Five-Year Capital Improvement Plan.
The Committee reviewed an updated CIP schedule received from Public Works. Capital projects
scheduled for 2017 include the following:
- WATER TANKS - The Pine Tree Road Water Tank Replacement project was postponed from 2016
due to complications with the proposed expansion of Cornell University’s Maplewood
Apartments and future expansion of the East Hill Plaza complex. Originally budgeted in 2016
to replace the existing 200,000 gallon capacity water tank in kind at a cost of $600,000, it is
now expected that a 500,000 gallon capacity water tank will be required. The estimated cost
of this project is now $900,000, to be financed by issuing $600,000 in new long-term debt, the
same amount budgeted in 2016, and an expected $300,000 contribution from Cornell
University.
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- WATER MAINS - Total cost for Water Main improvements for 2017 is estimated at $1,000,000.
Projects scheduled for 2017 include the Cliff Street Water Main Improvements ($850,000) and
the demolition of the abandoned Cliff Street Pump Station ($150,000). These projects will
also be financed by issuing new long-term debt.
- SEWER AND MANHOLE REHABILITATION - These on-going maintenance projects will reduce water
infiltration and blockages in aging sewer lines and manholes. The amount of $300,000 will be
budgeted in 2017, which will be financed from current year revenues/fund balance.
- ROAD IMPROVEMENTS - Total cost for 2017 Road Improvement Program is estimated at
$700,000. Projects scheduled for 2017 include the reconstruction of Perry Lane ($500,000)
and the overlay of Culver Road ($200,000). These projects will be financed with $500,000 of
current year revenue, and issuing new long-term debt for the remainder.
- TOWN FACILITIES - Modifications to the Vehicle and Equipment Fluids Storage Area at Public
Works Facility are estimated cost $100,000, which will be funded from current year revenues.
- PARKS & TRAILS - Projects for 2017 include the Grandview Park Playground Replacement
($50,000) and South Hill Trail Culvert Repairs ($110,000). Total expenditures for 2017 are
estimated at $160,000. Budgeted in the General Fund, these projects will be financed with up
to $24,000 in grant funding and the remainder from current year revenue/fund balance.
Total estimated costs for the CIP for Fiscal Years 2017 - 2021 are presented on the schedule shown
below:
INFRASTRUCTURE 2017 2018 2019 2020 2021 TOTAL
WATER INFRASTRUCTURE 1,900,000$ 1,475,000$ 1,175,000$ 950,000$ 1,350,000$ 6,850,000$
SEWER INFRASTRUCTURE 500,000 800,000 500,000 500,000 500,000 2,800,000
STORMWATER DRAINAGE - - 250,000 250,000 250,000 750,000
ROAD IMPROVEMENTS 700,000 800,000 800,000 1,500,000 800,000 4,600,000
TOWN FACILITIES 100,000 500,000 400,000 - 600,000 1,600,000
PARKS & TRAILS 160,000 140,000 100,000 - - 400,000
TOTAL ANNUAL COST 3,360,000$ 3,715,000$ 3,225,000$ 3,200,000$ 3,500,000$ 17,000,000$
FUNDING SOURCE:
- Current Year Revenue 1,836,000$ 2,220,000$ 1,350,000$ 1,450,000$ 1,250,000$ 8,106,000$
- Grants & Donations 324,000 20,000 - - - 344,000
- New Long-Term Debt 1,200,000 1,475,000 1,875,000 1,750,000 2,250,000 8,550,000
TOTAL FUNDING 3,360,000$ 3,715,000$ 3,225,000$ 3,200,000$ 3,500,000$ 17,000,000$
Of the $17,000,000 total estimated project costs, $8,106,000 would be financed with current year
revenues, $344,000 with grants and donations, and the remaining $8,550,000 by the issuance of
new long-term debt.
Susan Ritter asked about the status of the design and construction of the East King Road (Michigan
Hill) park. Mr. Weber explained that the design work was scheduled to be done this year by the
Town’s engineering staff. With the departure of Creig Hebdon, it will now be impossible for this
work to be started this year. Ms. Ritter reminded the committee members that there is an
individual who wants to donate up to $60,000 for the design and construction of the park, and
feels it is very important to be able to show this potential donner that progress is being made. Mr.
Goodman asked if there was any funding available with which the Town could hire an outside firm
this year to prepare the design. Mr. Weber responded that there is $20,000 in the Town Parks
budget for hiring a design consultant for the Forest Home Walkway. With the personnel changes
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discussed earlier, staff will not be moving forward with this project, and the funds could be used
for the East King Road (Michigan Hill) park design. Ms. Leary moved that the Budget Committee
recommend to the Town Board using up to $20,000 to hire an outside design consultant this year
for the East King Road (Michigan Hill) park. The motion was seconded by Mr. Levine and carried
unanimously.
The schedule shown below identifies the capital equipment scheduled for replacement in Fiscal
Year 2017 at a total estimated cost of $777,000. Funding of capital equipment replacements will
come from current year revenues/fund balance.
FLEET MODEL USEFULL ORIGINAL REPLACEMENT
NO .YEAR LIFE COST COST
2017 REPLACEMENTS:
Jeep Liberty (Public Works)27 2003 15 18,337$ 32,000$
Volvo 6x4 Dump/Snow Plow Truck 13 2007 8 140,073 250,000
Ford F250 Crew-Cab Pickup Truck 12 2008 10 18,241 35,000
Gradall Wheeled Excavator 40 2004 15 92,000 385,000
Dynapack Roller 80 2006 10 13,500 40,000
Grasshopper Mower w/Mowing Deck 53 2013 3 14,684 20,000
Quality Steel Tiltbed Trailer T3 2013 3 4,981 7,500
Custom Trailer - Pipe Hauling T6 2001 10 2,300 7,500
Total - 2017 Vehicle & Equipment Expenditures 777,000$
CAPITAL EQUIPMENT
• Other Items.
- Court Audit: Mr. Solvig reported that field work was conducted on May 23 & 24. The cost of
this audit is included in the cost of the Town’s annual audit.
- Deferred Comp Audit: Mr. Solvig informed the Committee that field work is scheduled for
May 26. An audit of our deferred compensation plan is required annually to verify that the
correct amounts are deducted from employees’ pay and deposited with the deferred
compensation plan. The cost of this year’s audit is $2,475.
- New Bank Accounts for 2016 Capital Projects: New bank accounts are in the process of being
established at Tompkins Trust Company for the following 2016 Capital Projects:
1) Trumansburg Water Tank Replacement
2) Park Lane Water Main Improvements
3) Sapsucker Woods Road Water Main Improvements
4) Christopher Circle Water Main Improvements
Interim funding for these projects will be provided by a short-term transfer from the Water
Fund until the 2016 Bond Issue is completed.
- Park, Recreation and Open Space Plan Reserve Account: Mr. Solvig informed the Committee
that the recent purchase of the Meigs property used $160,110 from the Park, Recreation and
Open Space Plan Reserve Account. Account balance is now $726,463.
- Highway Equipment Reserve Account: Mr. Solvig reported that the recent purchase of the
Gradall D152 Excavator used $238,908.16 of the Highway Equipment Reserve Account. The
balance in this account is now $11,154.
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The meeting was adjourned at 1:14 pm.
Next Meeting: Wednesday, June 29, 2016 at 12:00 pm, Town Hall - Aurora Room