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HomeMy WebLinkAboutBudget Committee Minutes 1-11-2021 1 BUDGET COMMITTEE Meeting Minutes - January 11, 2021 Committee present: Eric Levine - Chairman, Pat Leary Committee excused: Pam Bleiwas Staff present: Donna Shaw, Judy Drake, Joe Slater Others present: Rod Howe, Bill Goodman Meeting was called to order at 12:00 p.m. AGENDA ITEMS:  Review and approve September 14, 2020 meeting minutes. Moved: Eric Levine Second: Pat Leary Motion Passed  Set 2021 Budget Committee meeting dates. The consensus of the Committee was that meetings will be held at 12:00 p.m. on the second Monday of the month. The February meeting will be on Monday, February 8 at 12:00 p.m.  Discuss 2021 Budget Committee priorities. The committee identified the following topics as priorities for 2021: - Review Reserve Funds and Accounts. - 2021 Bond Issue – $1.7M for Water Main Improvements. - Review Town’s Long-Term Debt and Debt Service Schedules. - Consideration / Recommendation for the Town's contribution to:  Reconsider contribution to TCAT. - Review / revision of the Town’s Investment Policy and Investing of Town Funds. - Review / revision of the Town’s Procurement Policy. - Create Fund Balance Policy. - Five-Year Financial Projections 2021 - 2025. - Property Tax Cap for FY-2022 and recommend 2022 Property Tax Levy. - Five-Year Capital Improvement Plan 2022 - 2026 and 2022 Capital Budget. - 2022 Ithaca Town Budget. - Explore Establishing Sidewalk Districts. - Impacts of Green New Deal. - CHIPS funding requirements – action needed?  Discuss Town's Reserve Funds and Accounts. The committee reviewed and discussed the report on the Town’s reserve funds and accounts as of December 31, 2020. All funds and accounts are in very good condition as of year-end 2020. There was some discussion regarding the Open Space Plan balance being over $1 million. Mr. Goodman mentioned that there may be some investment in the Inlet Valley area this year. Mr. Howe noted that the Park, Recreation, and Open Space Plan is being updated which may highlight new priorities. 2 The Committee will continue to review this account throughout 2021. A copy of this report is attached.  Update on Sales Tax and Mortgage Tax Collections through November 2020. - Sales Tax Collections: The Committee reviewed the Sales Tax Collections Report for 2020. Through November, Sales Tax collections are 89.2% of budget. Sales Tax collections through November 2020 total $2,899,543 compared to collections of $3,241,786 for the same period in 2019, which is a decline of 10.5%. - Mortgage Tax Collections: Mortgage Tax collections for 2020 total $297,101 against collections of $400,947 for 2019, a decrease of 25.9% over the prior year.  Update on 2020 Interest Revenue. The Town earned $210,948 in interest in 2020. The high point was February with a total earned of $34,691. Interest rates plummeted due to the pandemic and subsequent economic downturn. The interest earned in December was only $2,149. We currently have $8,000,000 in Certificates of Deposit and $12,534,370 in a short-term investment account (Super Savings) at the Trust Company.  Review, Discuss and revise the Town Investment Policy. Will continue to review in the coming months.  Other Items. - Since there was no property tax assessed for Highway Part-Town in 2021, there may be some action needed to remain eligible for CHIPS funding. A more thorough review of Town Highway Law is required. - Supervisor Howe reported on his conversation with the Village of Cayuga Heights Mayor and Trustee regarding the 31% increase in General Town-wide tax, even though we published a 5.3% decrease (overall). An explanation has been posted to the Town website for tax payers. The meeting was adjourned at 12:57 p.m. Next Meeting: Monday, February 8, 2021 at 12:00 p.m., Town Hall - Aurora Room or Zoom