HomeMy WebLinkAboutMeeting Minutes 3-25-19
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BUDGET COMMITTEE
Meeting Minutes - March 25, 2019
Committee present: Eric Levine – Chairman, Pat Leary, Pamela Bleiwas
Staff present: Mike Solvig, Judy Drake, Jim Weber
Others present: Bill Goodman (by telephone at approx. 12:10)
Meeting was called to order at: 12:05 p.m.
AGENDA ITEMS:
• Review and approve meeting notes from February 25, 2019.
Moved: Pamela Bleiwas Second: Pat Leary Motion Passed
• Discuss Budget Amendment for various Guide Rail repairs.
Jim Weber discussed the quote from Elderlee, Inc. to furnish and install new Guide Rail on Forest Home
Drive for the estimated amount of $36,790.20. Mr. Weber explained the Town expends an average of
about $12,000 annually to repair/replace guide rail, which is charged to the Highway Part-Town Fund under
General Repairs, budget account DB5110.453. This account also pays for road patching, surface treating
(stone & oil and hot mix asphalt blacktop), striping and shoulder repairs. Mr. Weber is concerned that this
larger than normal expense for the Forest Home Drive guide rail would require the Town to reduce the six
miles of surface treatment planned for 2019 to remain within budget. He is asking the Committee to
consider a budget amendment to cover the cost of the Forest Home Drive guide rail installation.
After discussion, it was the consensus of the Committee to proceed with the Forest Home Drive guide rail
installation, with a budget amendment for the actual cost of the work to be recommended to the Town
Board upon completion of the work.
• Continue discussion on adjusting Supervisor’s Salary.
Mr. Solvig thanked Judy Drake for furnishing the information on the evolution of the Supervisor’s salary. In
reviewing the past surveys of salaries from other towns, the Committee members noted that the salaries
were “all over the place”, and would not be of much help in this analysis. The top half of the schedule
presented below shows the history of the Town Board Members’ and Town Supervisor’s salaries from 2010 -
2020 (with 2020 salaries projected on an expected 3% increase).
Position 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Town Board Member and Town Supervisor's Salary History - Fiscal Years 2010 - 2020:
Town Board Member 8,797$ 12,590$ 12,850$ 13,110$ 13,410$ 13,534$ 13,805$ 14,081$ 14,365$ 14,725$ 15,167$
Town Supervisor 19,500$ 19,800$ 20,200$ 20,600$ 21,020$ 21,250$ 21,655$ 22,090$ 22,535$ 23,100$ 23,791$
TS - Admin Function 29,200 29,700 30,300 30,900 31,530 31,900 32,152 32,800 33,460 34,300 35,327
TOTAL - Supervisor 48,700$ 49,500$ 50,500$ 51,500$ 52,550$ 53,150$ 53,807$ 54,890$ 55,995$ 57,400$ 59,118$
Salary progression if Town Supervisor salary was raised in 2011 by the same 43.1% as Town Board Member salary:
Town Supervisor 19,407$ 27,774$ 28,330$ 28,896$ 29,474$ 29,769$ 30,186$ 30,790$ 31,406$ 32,192$ 33,157$
TS - Admin Function 29,110 41,662 42,495 43,345 44,212 44,654 45,279 46,184 47,108 48,285 49,734
TOTAL - Supervisor 48,516$ 69,436$ 70,825$ 72,241$ 73,686$ 74,424$ 75,465$ 76,974$ 78,514$ 80,477$ 82,891$
Change from Prior Year 43.1% 2.0% 2.0% 2.0% 1.0% 1.4% 2.0% 2.0% 2.5% 3.0%
In 2010, a Board Member’s salary was approx. 18% of the Supervisor’s salary. This changed in 2011, when
the Town Board voted to increase the Board Members’ salaries by 43%. Then Supervisor Herb Engman was
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very much opposed to this increase, and refused to accept a similar increase in the Supervisor’s salary, with
the result that in 2011 a Board Member’s salary was now approx. 25% of the Supervisor’s salary. The
Supervisor’s salary has lagged behind since then.
After much discussion, it was decided to project the Supervisor’s salary starting from 2011 based on the
same percentage increases as were applied each year to the Board Members’ salary. This projection is
shown in the bottom half of the schedule shown on the previous page. Using this projection, the
Supervisor’s salary would have increased from $57,400 in 2019 to approx. $82,891 in 2020. Upon review of
the projected salary, the Committee members made the following comments/observations:
1. The adjusted salary is fair based on the responsibilities of the Supervisor’s position.
2. The adjusted salary is in line with other managerial staff.
3. The adjusted salary is cost effective compared to the cost of hiring a professional manager.
• Financial Report for the Year Ended December 31, 2018 (Subject to Audit).
The Committee reviewed the Financial Report for the Year Ended December 31, 2018. Mr. Solvig
explained this report contains the “final” revenues, expenditures and fund balances as of
December 31, 2018 after various adjustments and accruals were posted. These figures are subject
to further adjustment upon audit. The financial results for Fiscal Year 2018 were generally
positive, with fund balances increasing in the cumulative amount of $3,307,699 for all funds. Fund
balances decreased in the Sewer Fund, Risk Retention Fund, Fire Protection Fund and Debt Service
Fund. For all funds, combined revenues and other sources of $26,466,825 exceeded combined
expenditures and other uses of $23,159,126.
For the major funds, results of 2018 operations were as follows:
- GENERAL TOWNWIDE FUND - Fund balance increased by $265,059, with revenues of $4,630,928 exceeding
expenditures of $4,365,869. Ending fund balance totaled $4,262,061, which includes reserves of
$832,626 for the Parks, Recreation and Open Space Plan account, $165,628 for the General Benefit
Reserve, $40,173 for the Preserve Maintenance account, $9,752 for the Land Stewardship account, and
$4,425 for the Inlet Valley Cemetery. The unreserved fund balance of $3,209,457 represents 73.3% of
2019 budgeted appropriations.
- GENERAL PART-TOWN FUND - With revenues of $1,688,731 exceeding expenditures of $1,537,530, fund
equity increased by $151,201. Revenues exceeded budget due largely to increased receipts from sales
tax collections and temporary certificates of occupancy issued for the Maplewood Apartments.
Expenses were significantly under budget for contractual services. Year-end fund balance of $1,223,969
includes $69,468 for the General Benefit Reserve. The unreserved fund balance of $1,1 54,501
represents 60.9% of 2019 budgeted appropriations.
- HIGHWAY TOWNWIDE FUND – This fund was established with the 2018 Ithaca Town Budget to account for
those highway activities to be funded on a town-wide basis. With revenues of $974,307 exceeding
expenditures of $731,182, year-end fund balance totaled $243,125, all of which is unreserved. The
unreserved fund balance represents 34.0% of 2019 budgeted appropriations.
- HIGHWAY PART-TOWN FUND - With revenues of $3,411,795 exceeding expenditures of $3,008,977, year-
end fund balance increased by $402,818. Revenues were higher than expected, helped by increased
receipts from sales tax collections, the sale of surplus equipment and state ai d (CHIPS). Ending fund
balance of $2,670,329 includes $283,905 for the Highway Equipment account and $79,412 for the
General Benefit Reserve. Unreserved fund balance totals $2,307,012 or 67.1% of 2019 budgeted
appropriations.
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- WATER FUND - Fund equity increased by $236,884 as revenues of $4,154,514 exceeded expenditures
totaling $3,917,629. Revenues from metered water sales were under budget, as were expenditures for
purchasing water from Bolton Point. The ending fund equity of $3,057,300 inclu des $23,836 for the
General Benefit Reserve. The unreserved fund equity of $3,033,462 represents 67.5% of 2019
budgeted appropriations.
- SEWER FUND - With expenditures of $3,021,963 exceeding revenues of $2,771,517, fund equity
decreased by $250,446. The ending fund equity of $2,512,810 includes $12,046 for the General Benefit
Reserve and $1,275,376 for the SJC Projects account. The unreserved fund equity of $1,225,388
represents 42.6% of 2019 budgeted appropriations.
- FIRE PROTECTION DISTRICT FUND - With expenditures of $3,349,007 exceeding revenues of $3,280,530, fund
equity decreased by $68,477 to total $2,010,350 at year-end 2018. The year-end fund balance
represents 58.9% of 2019 budgeted appropriations.
• Review Long-Term Debt Projections.
The Committee reviewed the Long-Term Debt and Debt Service Projection schedules for Fiscal
Years 2018 through 2030. Future fiscal year debt projections include those capital projects
identified in the Town’s Capital Improvement Plan (up to and including Fiscal Year 2022) to be
financed by issuing new long-term debt, with the amount of the debt to be issued equal to the
current estimated cost of the project. Interest rates, which have remained historically low over
the past six years, have started to increase. Average interest rates for the Town’s 2011, 2013 and
2014 bond issues have all been slightly less than 3%. Interest rate for the 2015 bond issue was just
over 2%.
Total outstanding long-term debt increases from $10,769,000 at year-end in 2017 to an estimated
$17,625,000 at year-end in 2022. Of this total, $1,191,000 is for facilities improvements,
$1,265,000 is for highway improvements, and the remaining $15,169,000 for water infrastructure
improvements.
Total annual debt service payments (principal and interest) increase from $1,403,000 in 2017 to
an estimated $2,271,000 in 2022. Of this total, $279,300 is for facilities improvements, $260,400
is for highway improvements, and the remaining $1,731,300 for water infrastructure
improvements.
• Continue discussion of 2019 Bond Issue.
We are now estimating that the cost of the Public Works Facility Office Expansion will be approx.
$800,000. This project has been tentatively included in the 2019 Bond Issue
As of 12/31/18, the unreserved fund balance of the General Townwide Fund was $3,209,457, or
73.3% of 2019 budgeted appropriations. If the Town decided to pay for the estimated $800,000
cost of the Public Works Facility Office Expansion with fund balance and not issue new bonds,
unreserved fund balance would be reduced to 55.0% of 2019 budgeted appropriations. This
would still be well in excess of the Town’s informal target of a 25% unreserved fund balance.
• Other Items.
- Audit of 2018 Financial Statements: Auditors from Sciarabba Walker & Co. were at Town Hall
on March 26 for preliminary field work. Field work is scheduled for the first week of May
(April 29 – May 3). No schedule has been set yet for the Court audit.
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- Investment of Town Funds: Mr. Solvig reported that three (3) Certificates of Deposit for a
combined total of $6,700,000 were opened with Tompkins Trust Company on March 15.
These Certificates of Deposit are for a 14-month term with an interest rate of 2.23% (2.25%
APY).
The meeting was adjourned at 12:55 p.m.
Next Meeting: Monday, April 22, 2019 at 12:00 pm, Town Hall - Aurora Room