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Home My WebLink AboutMeeting Notes 8-24-2016 1 BUDGET COMMITTEE Meeting Notes - August 24, 2016 Committee present: Eric Levine - Chairman, Bill Goodman, Pat Leary Staff present: Mike Solvig, Judy Drake, Jim Weber Others present: Meeting was called to order at: 12:02 p.m. AGENDA ITEMS: - Review and approve meeting notes from July 27, 2016. Mr. Solvig reported he was not able to complete the meeting notes from July 27. They will be completed and presented for review at the September 21 meeting. - Review and Discuss 2017 Ithaca Town Budget. The Committee reviewed the 2017 Tentative Budget. The committee reviewed and discussed the detailed budgets for the General Fund, General Part-Town Fund, Highway Fund, Water Fund, and Sewer Fund, and the summaries of revenues and expenditures for all funds - Total expenditures will increase just over 4%, from $24,591,539 in 2016 to $25,582,705 in 2017. Expenditures will increase in the General Fund by 8.1%; General Part-Town Fund by 2.8%; Highway Fund by 1.8%; Water Fund by 7.3%; and Fire Protection Fund by 3.5%. Expenditures in the Sewer Fund will decrease by 8.8%. As discussed at previous Budget Committee and Personal and Organization Committee meetings this year, three (3) positions have been added to the 2017 Budget; these are a Deputy Town Clerk for the records management program (approved by the Town Board earlier this year), an Electrical/Code Enforcement Officer to assist with the additional work expected to be generated by the Maplewood expansion, and a Maintenance Supervisor (new position). Employee Salaries & Wages increase from $3,449,706 in 2016 to $3,691,120 in 2017, or 7.0%. Fringe Benefits increase from $2,020,600 in 2016 to $2,047,850 in 2017, or 1.4%. Total Personnel Costs for the Town will increase by $268,664 or 4.9% over the prior year. - Total revenues in 2017 are budgeted to increase 2.6% over the prior year. Sales tax and mortgage tax collections continue to decline, with sales tax collections in 2017 not expected to increase from 2016, and mortgage tax collections for 2017 budgeted for $50,000 less than budgeted in 2016. The property tax levy is budgeted to increase 2.0% over the prior year. This budget has no increase in Water Rates and Sewer Rents, but does include an increase in the Water Benefit Assessment Fee from $100/unit in 2016 to $110/unit in 2017. The Sewer Benefit Assessment Fee will remain $25/unit in 2017. The Water Fund also includes a $300,000 contribution from Cornell for the replacement of the Pine Tree Water Tank, although this still has to be worked out with Cornell. Bill Goodman pointed out that the Town’s contribution to City of Ithaca parks will be cut from $83,620 in 2015 / 2016 to $50,000 in 2017. Of this $33,620 difference, $8,000 has been budgeted to support the City’s Gorge Ranger program for Six Mile Creek, and $25,000 has been budgeted to increase the annual transfer to the Park, Recreation and Open Space Plan account from $75,000 to 2 $100,000. Mr. Goodman commented that he remains more interested in developing the Town’s park and trail network than continuing to support City parks. Mr. Solvig informed the committee that based on prior conversations of the members this budget will not be compliant with the 2017 Tax Cap. The tentative budget as presented includes a 2% increase in the Property Tax Levy which, together with the increase in the Water Benefit Assessment Fee, puts the Town $56,817 over the allowable increase per the 2017 tax cap. The committee members reviewed the tax cap calculation, and discussed various possible allocations of the property tax levy to lower the total property tax rate as much as possible. - Review and Discuss 2017 Bolton Point Budget. The Committee reviewed Bolton Point’s 2017 Preliminary Budget. The total budget will increase from $4,402,883 in 2016 to $4,452,857 in 2017. This is an increase of $49,974 or 1.1% over the prior year. The water rate charged to member municipalities will remain at the 2016 rate of $4.44/1000 gallons in 2017. - Discuss 2016 Bond Issue. There was no new information or further discussion on this topic. - Property Tax Cap. As discussed earlier, this budget will not be compliant with the 2017 Tax Cap. The tentative budget as presented includes a 2% increase in the Property Tax Levy which, together with the increase in the Water Benefit Assessment Fee, puts the Town $56,817 over the allowable increase per the tax cap. - Other Items. - Status of 2016 Sales Tax Collections: Mr. Solvig reported that sales tax collections for the first six months of 2016 totaled $1,413,722. This compares to $1,462,458 collected in the first six months of 2015. For the first six months, 2016 collections are at 96.7% of 2015 collections. This is the second year where sales tax collections have been less than the prior year at this point. Mr. Solvig commented that he is concerned that sales tax collections for 2016 will be less than the $3,067,336 collected in 2015, but may also fall short of the $3,000,000 budgeted for 2016. If so, this will be the second year now where current year collections have been less than the prior year. - Extension of Fiber Optic Cable to Public Works Facility: Finger Lakes Technology Group (FLTG) has revised their quote to extend fiber optic cables from the Tompkins County Public Works Facility to the Town’s County Public Works Facility. The original quote included a one-time installation fee of $5,000, plus a charge of $3,300 per month for 6 years; a total of $242,600 over 6 years. The revised quote reduces the one-time installation fee to $2,500, plus a charge of $1,750 per month for the first 3 years and $1,000 per month for years 4 - 10. Over 10 years the cost would be $149,500. FLTG felt this would allow them to recoup their installation costs. By putting in this fiber at PWF it would allow for one Townwide network system that could be operated at Town Hall for both locations. It would improve the speed and reliability of transferring information between the facilities, and would allow the Public Works/Engineering staff to fully utilize our Municity parcel management program. 3 - Upgrade Telephone Systems at Town Hall and Public Works Facility: Once there is the fiber optic connection between Town Hall and Public Works, the next objective is to upgrade the antiquated 1997 phone system at each location. Right now we have an internally hosted phone system which can only be repaired/replaced with items found on eBay, or can’t be repaired at all. To put in a new externally hosted digital phone system and internet service at both locations it was quoted to cost $25,620 per year. These systems would be leased for an initial period of 5 years. ▪ Town Hall Telephone System: A 36-phone digital system would be installed at Town Hall at a cost $1,450 per month. Total annual cost is $17,400. Costs would be allocated between the General, General Part-Town, Water and Sewer Funds. ▪ Public Works Facility Telephone System: A digital system consisting of 15 phones would be installed at the Public Works Facility at a cost $680 per month. Total annual cost is $8,160. Costs would be allocated between the General, Highway, Water and Sewer Funds. Year 1 costs for all projects would be distributed as shown below: ANNUAL GENERAL GENERAL HIGHWAY WATER SEWER COST FUND FUND P-T FUND FUND FUND DARK FIBER SERVICE TO PUBLIC WORKS CONTRACTUAL EXPENSE 1680.496 DARK FIBER SERVICE 23,500 3,525 1,175 7,050 5,875 5,875 TOTAL - DARK FIBER SERVICE 23,500 3,525 1,175 7,050 5,875 5,875 TOWN HALL DIGITAL PHONE SYSTEM CONTRACTUAL EXPENSE 1650.415 TELEPHONES 17,500 5,250 8,750 - 1,750 1,750 TOTAL - TOWN HALL PHONE SYSTEM 17,500 5,250 8,750 - 1,750 1,750 PUBLIC WORKS DIGITAL PHONE SYSTEM CONTRACTUAL EXPENSE 1650.415 TELEPHONES 8,200 1,640 - 2,460 2,050 2,050 TOTAL - PUBLIC WORKS PHONE SYSTEM 8,200 1,640 - 2,460 2,050 2,050 TOTAL YEAR 1 COST - ALL SERVICES 49,200 10,415 9,925 9,510 9,675 9,675 ACCOUNT - ACCOUNT DESCRIPTION The committee discussed these projects, noting that the Town Board has long been aware of both the inadequate internet service connection to Public Works, and the increasing age and deteriorating condition of the telephone systems. These proposals would make it possible to proceed and correct these deficiencies at a manageable cost. It was the consensus of the committee that the Town should move forward with these projects. Mr. Goodman stated he will have the costs of these projects included in his 2017 Tentative Budget. The meeting was adjourned at 1:33 p.m. Next Meeting: Wednesday, September 21, 2016 at 12:00 pm, Town Hall - Aurora Room