HomeMy WebLinkAboutMeeting Minutes 6-08-20
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BUDGET COMMITTEE
Meeting Minutes - June 8, 2020
Committee present: Eric Levine - Chairman, Pat Leary, Pam Bleiwas.
Staff present: Mike Solvig, Donna Shaw, Judy Drake, Dan Thaete, Marty Mosely.
Others present: Rod Howe, Bill Goodman
Meeting was called to order at: 12:02 p.m.
AGENDA ITEMS:
• Review and approve meeting minutes from April 13, 2020.
Moved: Pam Bleiwas Second: Pat Leary Motion Passed
• Review and approve meeting minutes from May 11, 2020.
Moved: Eric Levine Second: Pam Bleiwas Motion Passed
• Update on Sales Tax Collections for 2020.
For the first four months of 2020, sales tax collections of $1,017,274 are 4.1% below 2019
collections of $1,060,707 for the same period. Our May payment from Tompkins County (which
would be for sales taxes collected in April on March sales) was for $193,920 or 75.7% of our May
2019 payment. When staff was asked to estimate the loss in sales tax revenue due to the shutdown
of businesses due to the pandemic, we estimated the May payment at 50% of May 2019, and that
as of May, total sales tax collections would be at 89.7% of the prior year. Collections are currently
at 95.9%, which translates to a little over $66,000 in year-to-date collections above earlier
estimates. Currently, we do not anticipate modifying the 2020 budget. Any shortfalls at year end
can be absorbed by fund balance.
• Update on status of Investments and Interest received for May.
The Committee reviewed the spreadsheet showing interest income received from short-term
investments, certificates of deposit and various Tompkins Trust savings accounts for May. A total
of $21,561 in interest was earned in May.
- SHORT-TERM INVESTMENT ACCOUNT: In April 2019 the Town opened this account at Tompkins
Trust to consolidate funds from various Town accounts to take advantage of higher interest
rates offered on higher account balances. Initially, the interest rate was 1.49% for account
balances in excess of $10 million. The balance in this account fluctuates as funds are transferred
in when revenues are received or withdrawn to pay current expenses. As of May 1, the balance
of this account was at $18,956,343, falling to $16,246,104 on May 31. This represents 65.9% of
the Town’s funds as of May 31. A total of $8,605 in interest was earned in May.
- CERTIFICATES OF DEPOSIT: In March 2019 the Town opened three 14-month certificates of deposit
at Tompkins Trust at a total of $6,700,000. The $6,700,000 was from 14 Town accounts,
consisting of idle fund balance or other funds expected to remain unused over the 14-month
life of these CD’s. These certificates had an interest rate of 2.23%. On May 15 these CD’s
matured and were redeemed. The distribution of the $177,374.68 in interest earned over the
life of the CD’s is shown on the following spreadsheet.
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On May 22 the Town opened a new 12-month certificate of deposit for $8,000,000 at an interest
rate of 0.70%. The distribution of the estimated interest earnings of $56,800 is shown below.
The $8,000,000 invested in this CD represents 32.5% of the Town’s funds as of May 31.
OPENING TOTAL AT OPENING ESTIMATED TOTAL AT
AMOUNT MATURITY AMOUNT INTEREST MATURITY
General Fund 1,000,000.00$ 26,469.84$ 1,026,469.84$ 530,000.00$ 3,763.00$ 533,763.00$
Open Space Plan Reserve 550,000.00 14,558.41 564,558.41 840,000.00 5,964.00 845,964.00
Land Preserve Maint. Reserve 40,000.00 1,058.79 41,058.79 41,100.00 291.81 41,391.81
Land Stewardship Reserve 9,000.00 238.22 9,238.22 9,900.00 70.29 9,970.29
General Part-Town Fund 500,000.00 13,234.91 513,234.91 1,000,000.00 7,100.00 1,007,100.00
Highway Fund - - - 300,000.00 2,130.00 302,130.00
Highway Part-Town Fund 1,000,000.00 26,469.82 1,026,469.82 2,000,000.00 14,200.00 2,014,200.00
Highway Equipment Reserve 261,000.00 6,908.63 267,908.63 373,000.00 2,648.30 375,648.30
Sewer - SJC Account 1,000,000.00 26,496.82 1,026,496.82 1,000,000.00 7,100.00 1,007,100.00
Risk Retention Fund 100,000.00 2,646.99 102,646.99 130,000.00 923.00 130,923.00
Fire Protection Fund 1,500,000.00 39,704.74 1,539,704.74 1,000,000.00 7,100.00 1,007,100.00
Sand Bank Road Fund 360,000.00 9,529.11 369,529.11 - - -
Debt Service Fund - - - 350,000.00 2,485.00 352,485.00
General Benefit Reserve 350,000.00 9,264.47 359,264.47 350,000.00 2,485.00 352,485.00
Stormwater Coalition Escrow - - - 40,000.00 284.00 40,284.00
Cayuga Lake Watershed I - O - - - - - -
LVC Escrow - Permanent Maint.20,000.00 529.30 20,529.30 24,300.00 172.53 24,472.53
LVC Escrow - Ferris Memorial 10,000.00 264.63 10,264.63 11,700.00 83.07 11,783.07
TOTAL - All Accounts 6,700,000.00$ 177,374.68$ 6,877,374.68$ 8,000,000.00$ 56,800.00$ 8,056,800.00$
Certificates of Deposit - 14-Month at 2.23%Certificate of Deposit - 12-Month at 0.71%
TOWN OF ITHACA ACCOUNT INTEREST
Revised June 8, 2020
Mr. Solvig noted that there is one change to the spreadsheet that was sent out with the agenda.
He had talked with Tee-Ann Hunter prior to opening the CD regarding placing $30,000 of the
I-O’s funds in the CD. She thought it was a good idea and said she would discuss it with the I-O
board at their meeting scheduled for May 27. When the CD was opened on May 22, and not
expecting any objection from the I-O, he included the $30,000 from the I-O. However, the I-O
decided it did not want to tie-up their funds in the CD for 12 months. To correct this, Mr. Solvig
replaced the I-O’s funds with $30,000 from the General Fund. This increases the General Fund’s
share of the CD by $30,000 and reduces the I-O’s share to zero. The majority of the I-O’s funds
in the Town’s custody are deposited in the Short-Term Investment account.
- SAVINGS ACCOUNTS: The Town earned $397 from various savings accounts at Tompkins Trust.
Mr. Solvig also noted that with the lower interest rates for the new CD and Short-Term Investment
account, it will be a while before we see monthly interest income like this past month. Going
forward, the monthly interest from the CD will be approx. $4,700/month, and the and Short-Term
Investment account will generate maybe $8,500/month, but this amount will steadily fall as account
balances are used to pay expenses.
• Initial Review of Long-Term Debt.
Discussion postponed until the next meeting.
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• Property Tax Cap Override for FY-2021.
The Committee reviewed the resolutions and local law for the property tax cap override for FY-
2021. The resolution to set the public hearing will be on the June 8 Town Board agenda, setting the
public hearing for July 13 at 5:30 pm. Consideration of adoption of the local law will be scheduled
for the July 13 Town Board meeting following the public hearing.
• Other Items.
- Status of Town Audit - Field work was completed in April. The draft report is expected in June.
- Moody’s Issuer Comment, Updated 6/05/2020 - Bond rating still Aa1.
- Status of Recreation Partnership - There was some discussion about the status of programming
and the balance of 2020 funding. The County is looking at two budget scenarios for 2021, with a
12% reduction and same funding as 2020. Eric will be attending the next JYC meeting and will
report back.
The meeting was adjourned at 12:30 p.m.
Next Meeting: Monday, June 13, 2020 at 12:00 pm, Town Hall - Aurora Room