HomeMy WebLinkAboutBudget Committee Minutes 8-08-2021
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BUDGET COMMITTEE
Meeting Minutes - August 08, 2021
Committee present: Pam Bleiwas – Acting Chairperson and Pat Leary. Absent: Eric Levine
Staff present: Donna Shaw, Judy Drake, Joe Slater, Marty Mosely
Others present: Rod Howe, Bill Goodman
Meeting was called to order at: 12:02 p.m. by Acting Chairperson Bleiwas.
AGENDA ITEMS:
Review and approve meeting minutes from June 14 and July 12, 2021.
Moved: Pam Bleiwas Second: Pat Leary Motion Passed
Review and Discuss Tentative 2022 Ithaca Town Budget.
The Committee reviewed and discussed the summaries of revenues and expenditures for all funds
for the Tentative 2022 Ithaca Town Budget.
Total expenditures will decrease 3.65%, from $26,054,055 in 2021 to $25,102,827 in 2022.
Expenditures will decrease in the General Townwide Fund by 8.8%; General Part-Town Fund by
2.7%; Highway Town-Wide Fundy by 27.8%; Highway Part-Town Fund by 2.5%; Water Fund by
6.4%; Special Districts by 86.0% and Debt Service Fund by 52.4%. Expenditures will increase in
the Sewer Fund by 19.1%; Risk Retention Fund by 7.0%; and Fire Protection District by 3.4%.
Total for Personal Services (employee salaries and wages) increases from $4,465,798 in 2021 to
$4,576,372 in 2022, an increase of $110,574 or 2.5%.
The budgeted total for Employee Benefits increases from $2,223,975 in 2021 to $2,364,070 in
2022, an increase of $140,095 or 6.3%. Total employee benefits in 2022 are calculated at 51.7%
of the total for employee salaries and wages.
Funding for community organizations/programs: JYC Programs are requesting a 2% increase;
Recreation Partnership is requesting an additional $5,000; and the county-wide Water Quality
Monitoring Program is expected to increase by 2%. The contributions to City of Ithaca
waterfront parks and the Tompkins County Public Library are expected to remain the same as
2021.
Total revenues decrease 1.33%, from $24,500,548 in 2021 to $24,173,711 in 2022. After review
of the past nine years of Mortgage Tax collections, the budgeted amount was increased from
$250,000 to $280,000.
Sales Tax collections are budgeted at $3,250,000, representing 13.44% of the Town’s 2022
budgeted revenues. Sales tax collections for the Town were weak in 2020 due to the 2nd Quarter
business shutdowns in response to the COVID-19 pandemic, but still exceeded the budget by
$30,0000. Sales tax collections for 2021 have exceeded 2019 levels for several months and are
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projected to total approx. $3,600,000. We will continue to budget sales tax conservatively for
2022.
Review and Discuss Tentative 2022 Capital Budget.
The Committee reviewed and discussed the 5-Year Capital Improvement Plan schedule and
summary of vehicles and other motor equipment to be replaced in 2022.
Capital Projects budgeted in 2022 will total $3,310,000; an increase of $70,000 or 2.16% from the
$3,240,000 total budgeted in 2021. Capital projects represent 13.19% of the Town’s total budget.
- $1,390,000 is budgeted for water infrastructure improvements, $1,100,000 to be funded by
issuing new long-term debt and $290,000 funded by the benefit assessment charge.
- $300,000 is budgeted for sewer and manhole rehabilitation and funded with current year
revenues.
- $450,000 is budgeted for Forest Home Pump Station rebuild and funded with Sewer Fund
balance.
- $30,000 is budgeted for storm water drainage improvements and funded with General Fund
balance.
- $755,000 is budgeted for improvements to various Town roads and funded with property
tax and CHIPS.
- $90,000 is budgeted for Town parks and trails improvements.
- $30,000 is budgeted for Forest Home Crosswalk and funded with General Fund balance.
- $265,000 is budgeted for PWF improvements and is funded with General Fund balance.
Equipment/Capital Outlay decreases from $945,000 in 2021 to $908,000 in 2022; a decrease of
$37,000 or 3.9%. Equipment/Capital Outlay represents 3.62% of the Town’s total 2022 budget.
- $749,500 is budgeted for the replacement of vehicles and other motor equipment in 2022.
- $195,500 is budgeted for miscellaneous equipment valued over $5,000.
Initial Discussion on Property Tax Levy, Tax Rates and Tax Cap Calculation for FY-2022.
The proposed 2022 property tax levy, tax rates, and tax cap calculation was reviewed. The 2022
Property Tax Levy totals $8,870,508, an increase of $138,415 or 1.59% over the prior year total of
$8,732,093. The total 2022 Property Tax Levy (including Water/Sewer Benefit Assessment Fees)
is $10,893,543 in 2022, an increase of $220,543 or 2.07% over the prior year total of $10,672,890.
This increase does comply with the property tax cap calculation for 2022. Property taxes are the
Town’s largest revenue source, representing 45.1% of total budgeted revenues.
The property tax bill for a typical property in the Town of Ithaca will increase to $2,065.22 in 2022
from $1,994.78 in 2021, an increase of $70.44 or 3.53%. The typical property in the Town of Ithaca
is a single-family residence with an assessed value of $300,000. The estimated property tax bill
total shown below includes proposed water and sewer benefit assessment fees
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The property tax levy as proposed is $147,012 under the property tax cap for FY-2022. This
includes $105,143 carried over from 2021.
Initial Discussion of proposed Water Rates and Sewer Rents for FY-2022.
Water Rates: Based on a 3.0% increase, the Bolton Point rate will increase from $5.60/1000 gallons
in 2021 to $5.77/1000 gallons in 2022. For the Town, our portion, used to cover our operating costs,
would increase from $2.66/1000 gallons in 2021 to $2.74/1000 gallons in 2022. The total amount
charged to Town water customers would be $8.51/1000 gallons in 2022, an increase of 3.0% over
the $8.26/1000 gallons charged in 2021.
Sewer Rents: The amount charged to Town customers is proposed to increase to $5.50/1000
gallons in 2022, an increase of 3.0% over the $5.34/1000 gallons charged in 2021.
Minimum Quarterly Bill: The quarterly water & sewer bill is based on a minimum usage of 5,000
gallons of water and 5,000 gallons of sewage. The minimum quarterly bill will increase from $68.00
in 2021 to $70.05 in 2022, an increase of $2.05 or 3.0%.
Initial Discussion of proposed Water and Sewer Benefit Assessment Fees for FY-2022.
The Water Benefit Assessment Fee will increase to $170.00/unit in 2022 from $165.00/unit in 2021,
raising revenues of approx. $1,451,610 to be used to pay the annual debt service on the Town’s
outstanding long-term debt for water infrastructure improvements.
The Sewer Benefit Assessment Fee will increase to $70.00/unit in 2022 from $65.00/unit in 2021,
raising revenues of approx. $571,245 to be used to pay the annual debt service on the Town’s share
of outstanding long-term debt for improvements at the Ithaca Area Waste Water Treatment Facility.
The Special Assessment Rolls, including water and sewer benefit units, are currently under review
by Engineering and GIS. Any changes to the total will affect the benefit assessment rates and
revenues.
Update on Status of 2021 Sales Tax Collections.
The County has not released sales tax money in July so there is not an updated report for Town o f
Ithaca collections. There was an update on the state collections from the Office of the State
Comptroller that was shared with Committee. Local Sales Taxes Surge 49.2% in April-June 2021
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Over Same Quarter in 2020. It’s recognized that the April-June 2020 quarter was extremely weak
due to the pandemic. However, it is also noted that the April-June 2021 sales tax collections
exceeded 2019 levels by 8.7% (for the same quarter).
Discuss Auditing Services Request for Proposals.
Sciarabba Walker has informed the Town that 2020 would be their last year performing our audits.
Since we are their last government client, they have decided that it’s not feasible to keep up on all
the changing GASB rules and required continuing education. The Town and Bolton Point will issue
a joint Request for Proposals for audit services in the coming weeks.
The meeting was adjourned at 12:35 p.m.
Next Meeting: Monday, September 13, 2021 at 12:00 pm, Town Hall - Aurora Room