HomeMy WebLinkAboutAgenda 2-12-2024TOWN OF ITHACA
BUDGET COMMITTEE
Monday, February 12, 2024 - 12:00 p.m.
Town Hall - Aurora Conference Room
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AGENDA
• Set 2024 Budget Committee meeting dates.
• Discuss 2024 Budget Committee priorities.
• Review and Discuss Town's Reserve Funds/Accounts as of December 31, 2023.
- Parks, Recreation and Open Space Plan Reserve Fund
- General Benefit Reserve Fund
- <New> Public Works Facility Office Expansion – 2020-A Bond Payment Reserve
- Inlet Valley Cemetery Account
- Land Preserve Maintenance Account
- Land Stewardship Account
- Highway Equipment Reserve Fund
- Risk Retention Fund
- Sewer Fund - SJC Account
• Update on 2023 Sales Tax and Mortgage Tax collections.
• Update on 2023 Interest Revenue and Investments.
• Review and Discuss Projected Fund Balance for 2023.
• Discuss Funding Request from Ithaca Area Economic Development
• Other Items
Next Meeting: Monday, March 11, 2024 - 12:00 p.m.
Town of Ithaca
Budget Committee
2024 Meeting Schedule
Budget Committee meetings are held monthly, scheduled for the second Monday of the month.
Meetings will begin at 12:00 noon and will be held at Town Hall in the Aurora Room and/or via
Zoom.
January 8: No meeting.
February 12: Set meeting schedule for 2024. Discuss Committee priorities for 2024. Review
and discuss Town's Reserve Funds/Accounts. Report on 2023 Sales Tax & Mortgage Tax
Collections. Report on 2023 Interest Earnings. Review 2023 balance of reserve funds. Review
projected fund balance for 2023. Discuss potential funding of Ithaca Area Economic
Development.
March 11: Financial Report for the Year Ended December 31, 2023. Review Preliminary Five-
Year Financial Projections for 2025 - 2029. Review Town’s Procurement Policy.
April 8: Discuss possible 2024 BAN/Bond Issue (if needed). Review of Long-Term Debt and
Debt Service schedules. Review 2023 Fund Balance. Continue discussion on Procurement
Policy.
May 13: Review draft Five-Year Capital Improvement Plan for 2025 – 2029 and update on
current year projects. Review and discuss the Capital Budget Process. Continue discussion of
2023 Fund Balance and potential uses. Continued discussion on Procurement Policy (if
needed). 2023 Audit updates. Introducing the new Finance Officer.
June 10: Discuss Property Tax Cap Override for FY-2024. Report on 2024 Sales Tax & Mortgage
Tax Collections. Report on 2024 Interest Earnings.
July 8: Review Five-Year Capital Improvement Plan for 2025 – 2029. Review 2024 Budget to
Actuals.
August 12: Discuss 2025 Water & Sewer Rates. Discuss 2025 Water & Sewer Benefit Fees.
Initial review of Tentative 2025 Budget.
September 9: Continue review of Tentative 2025 Budget.
September 23 - 4:30 PM: Present 2025 Tentative Budget at study session due to scheduling
conflicts/holidays.
October 14: If Needed – no meeting scheduled.
November: No Meeting
December: No Meeting
DRAFT
Town of Ithaca
Budget Committee
2024 Budget Committee Priorities
- Review Reserve Funds and Accounts.
- 2024/2025 Bond Issue
- Review of the Town’s Long-Term Debt and Debt Service Schedules.
- Consideration / Recommendation for the Town's contribution to:
- Ithaca Area Economic Development
- Review / Revision of the Town’s Investment Policy and Investing of Town Funds.
- Review / Revision of the Town’s Procurement Policy.
- Five-Year Financial Projections 2025 - 2029.
- Property Tax Cap for FY-2025 and recommend 2025 Property Tax Levy.
- Five-Year Capital Improvement Plan 2025 - 2029 and 2025 Capital Budget.
- 2025 Ithaca Town Budget.
1
TOWN OF ITHACA
RESERVE FUNDS AND ACCOUNTS
PARK, RECREATION AND OPEN SPACE PLAN RESERVE ACCOUNT - The Fund Balance of the General Townwide
Fund includes funds designated for the purpose of future park development and the purchasing of
development rights, as outlined in the Town’s Park, Recreation and Open Space Plan, as adopted on
December 12, 1997. As of 1/01/23, the balance of this account was $970,343. During FY-2023 this account
was increased by a $100,000 re-designation of fund balance and $35,465 in interest income. No funding
was allocated from this account in FY-2023. The balance of this account as of 12/31/23 was $1,105,808.
This account is funded by the Town Board making an annual re-designation of a portion of the Fund Balance
of the General Townwide Fund from unreserved to reserved. Additional income is received from interest
earnings. An additional $100,000 in unreserved fund balance was designated as reserved for this purpose
by the Town Board in January 2023.
No maximum amount has been established for this reserve. It was recommended that the question of a
maximum designated amount be revisited when the balance reaches $1,000,000.
GENERAL BENEFIT RESERVE ACCOUNT - The fund balances in the General Townwide Fund, General Part-
Town Fund, Highway Part-Town Fund, Water Fund, and Sewer Fund includes reserves established for
managing unanticipated increases in NYS Employee Retirement System. The aggregate balance of this
reserve as of 12/31/23 was $350,000 plus $7232.82 in accrued interest on a CD maturing in April 2024.
The balance by fund is as follows:
Certificates Accrued Balance as
of Deposit Interest of 12/31/2023
General Townwide Fund 154,000$ 3,182$ 157,182$
General Part-Town Fund 77,000 1,591 78,591
Highway Part-Town Fund 80,500 1,664 82,164
Water Fund 21,000 434 21,434
Sewer Fund 17,500 362 17,862
Total as of 12/31/2022 350,000$ 7,233$ 357,233$
General Benefit Reserve
In 2015 the Town Board established the maximum of this reserve be set at $350,000. Balance in excess
of the limit at year-end to be returned to the unreserved fund equity of the host funds.
PUBLIC WORKS FACILITY OFFICE EXPANSION – 2020-A BOND PAYMENT RESERVE FUND – This fund was
created by Resolution 2023-157 on September 25, 2023 to accumulate money to pay the principal and
interest related to the Town’s Public Works Facility Office Expansion project included in the Ser ies 2020-A
Bond Issue. The initial deposit into this fund was $300,000 from the unreserved fund balance in the General
Fund, which will cover three years of principal and interest payments.
INLET VALLEY CEMETERY ACCOUNT - In 2017 the Inlet Valley Cemetery Fund was closed and the remaining
assets transferred to the General Townwide Fund, to be used in maintaining the Inlet Valley Cemetery. For
the year ended 12/31/23, the balance of this account totaled $4,739. Future income for this reserve will be
limited to interest earnings. No maximum amount was established for this account.
PRESERVE MAINTENANCE ACCOUNT - The Fund Balance of the General Townwide Fund also includes funds
designated for the maintenance of the Pine Tree Wildlife Preserve, donated to the Town by a local family
in 2013. In conjunction with the donation of the land, the amount of $40,000 was also donated to provide
for future maintenance of the preserve. As of 1/01/23, the balance of this account was $42,174. During
FY-2023 this account was increased by $1,753 in interest income. There were no expenditures from this
account during FY-2023. As of 12/31/23 the balance of this account totaled $43,927. Future income will
be limited to interest earnings.
As this account is expected to decrease over time, no maximum amount was established.
2
LAND STEWARDSHIP ACCOUNT - In 2014 the Town purchased the development rights to the Indian Creek
Farm with financial assistance through a State of New York grant. This grant included $10,000 to be held
by the Town, designated for the future stewardship of the Indian Creek Farm lands. As of 1/01/23, the
balance of this account was $10,209. Interest revenue for FY-2023 totaled $435. For the year ended
12/31/23, the balance of this account totaled $10,644. Future income for this reserve will be limited to
interest earnings.
As this account is also expected to decrease over time, no maximum amount was established.
HIGHWAY EQUIPMENT RESERVE ACCOUNT - The Fund Balance of the Highway Part-Town Fund includes
funds designated for the purchase/replacement of highway equipment and machinery. The balance in this
account as of 1/01/23 was $400,000. Interest revenue for FY-2023 totaled $8,266. Balance of this account
as of 12/31/23 was $408,266 with $8,266 moved to Highway Part-Town Fund balance to keep the reserve
balance at $400,000.
This account is funded by sale of surplus machinery and equipment, with additional income from interest
earnings. In 2015 the Town Board established the maximum of this account be set at $250,000. In 2018
the Town Board increased the maximum to $400,000. Balance in excess of the limit at year-end to be
returned to the unreserved fund equity of the Highway Part-Town Fund.
RISK RETENTION FUND - This fund is used to account for expenditures for 1) direct employee health and
wellness expenditures, including training, work-related emergency room and clinic health care visits, and
2) repairs to equipment and facilities not covered by insurance, or until reimbursement from insurance is
received. Income for this fund is derived from annual budgeted inter-fund transfers, plus insurance
recoveries and interest income. Fund balance as of 12/31/23 was $149,249.
The Town Board has established the maximum fund balance of the Risk Retention Fund be set at $150,000.
Balance in excess of the limit at year-end to be returned to the unreserved fund equity of the contributing
Funds.
SJC ACCOUNT IN SEWER FUND - The Fund Balance of the Sewer Fund includes funds designated for SJC
purposes. In 2015 these purposes were defined by the Town Board as 1) to pay for expenditures related
to the improvement of jointly-owned sewer interceptor lines, and 2) to pay the Town’s share of the City of
Ithaca’s bonded debt issued to pay for Ithaca Area Wastewater Treatment Facility (IAWWTF)
improvements. The balance in this account as of 1/1/23 totaled $1,315,056. Revenue for FY-2023 totaled
$73,379 in interest income, resulting in a 12/31/23 balance totaling $1,388,435.
1) Jointly-owned Sewer Interceptor Lines: Interceptor sewers convey sewage from the Town through
the City of Ithaca for treatment at the IAWWTF. These interceptor sewers are jointly owned with
the City, and the Town is responsible for a portion of the maintenance and replacement costs of
these lines. The Town of Ithaca and the City of Ithaca must initially approve all capital projects and
related expenditures before any construction can take place. With the replacement of the State
Street Interceptor completed in 2018, the last of five projects originally agreed to between the Town
and City, $63,228 of the SJC account balance remained for this purpose.
2) IAWWTF Bonded Debt: In 2015, the Town Board determined it would be prudent for the Town to
designate funds to pay part of this debt in the event of future economic hardships. As of 12/31/22,
the amount available in the SJC account for this purpose was $496,465.
3) Capital Projects: The balance of this account on 1/1/2023 was $755,363. In 2023 the Town Board
approved $1,461,113 for the IAWWTF Additional Boiler Replacement and Facility Improvements
(Resolution 2023-033 and 2023-146). Our 2023 share of those costs was $552,445 paid on
February 12, 2024. Interest earned in 2023 was $73,379. The balance in this account as of
12/31/2023 was $828,742, leaving $276,297 after the $552,444.79 is paid.
General Highway Fire
Part-Town Part-Town Protection TOTAL
Liability Month B1120 DB1120 SF1120
Month Collected 1,732,000.00$ 1,712,000.00$ 306,000.00$ 3,750,000.00$ 0.4619 0.4565 0.08 1.0000
January May 170,521.16$ 168,552.09$ 30,126.72$ 369,199.97$
February June 155,969.07$ 154,168.04$ 27,555.74$ 337,692.85$
March June 176,141.20$ 174,107.24$ 31,119.64$ 381,368.08$
April June 158,185.36$ 156,358.74$ 27,947.30$ 342,491.40$
May June 152,839.26$ 151,074.38$ 27,002.78$ 330,916.42$
June July 203,025.28$ 200,680.88$ 35,869.36$ 439,575.52$
July August 176,236.92$ 174,201.86$ 31,136.55$ 381,575.33$
August September 171,722.58$ 169,739.64$ 30,338.98$ 371,801.20$
September October 231,050.92$ 228,382.90$ 40,820.78$ 500,254.60$
October November 166,941.63$ 165,013.90$ 29,494.31$ 361,449.84$
November December -$ 119,720.33$ 260,590.58$ 380,310.91$
December January -$ -$ 406,111.25$ 406,111.25$
TOTAL COLLECTIONS:1,762,633.39$ 1,862,000.00$ 978,113.97$ 4,602,747.37$
TOTAL - 2023 BUDGET:1,732,000.00$ 1,862,000.00$ 306,000.00$ 3,900,000.00$
% of 2023 Budget Collected:101.8%100.0%319.6%118.0%
COMPARISON
PERIOD 2020 2021 2022 #2023 TO PRIOR YEAR
January 266,756.00$ 241,976.77$ 349,600.04$ 369,199.97$ 105.61%
February 241,529.18 220,287.15 300,462.74 337,692.85 112.39%
March 294,969.05 392,202.28 396,743.39 381,368.08 96.12%
1st Quarter 803,254.23$ 854,466.20$ 1,046,806.17$ 1,088,260.90$ 103.96%
April 193,919.94$ 281,825.36$ 350,840.20$ 342,491.40 97.62%
May 181,781.59 284,332.00 366,126.50 330,916.42 90.38%
June 279,411.53 431,611.13 330,348.56 439,575.52 133.06%
2nd Quarter 655,113.06$ 997,768.49$ 1,047,315.26$ 1,112,983.34$ 106.27%
First 6 Months 1,458,367.29$ 1,852,234.69$ 2,094,121.43$ 2,201,244.24$ 105.12%
July 254,742.19$ 314,638.93$ 384,844.57$ 381,575.33 99.15%
August 248,307.40 312,514.79 358,575.22 371,801.20 103.69%
September 437,518.95 472,220.61 458,984.88 500,254.60 108.99%
3rd Quarter 940,568.54$ 1,099,374.33$ 1,202,404.67$ 1,253,631.13$ 104.26%
First 9 Months 2,398,935.83$ 2,951,609.02$ 3,296,526.10$ 3,454,875.37$ 104.80%
October 269,331.84$ 292,143.63$ 350,174.18$ 361,449.84 103.22%
November 231,274.86 302,394.38 340,396.99 380,310.91 111.73%
December 381,304.49 436,657.63 496,300.24 406,111.25 81.83%
4th Quarter 881,911.19$ 1,031,195.64$ 1,186,871.41$ 1,147,872.00 96.71%
ANNUAL TOTAL 3,280,847.02$ 3,982,804.66$ 4,483,397.51$ 4,602,747.37 102.66%
COMPARISON
PERIOD 2020 2021 2022 #2023 TO PRIOR YEAR
April/May 100,391.42$ 158,060.48$ 134,965.47$ 78,588.88$ 58.23%
October/November 196,709.44 224,517.51 269,365.59 107,631.22 39.96%
ANNUAL TOTAL 297,100.86$ 382,577.99$ 404,331.06$ 186,220.10$ 46.06%
TOWN OF ITHACA
SALES TAX COLLECTIONS
For the Year Ending December 31, 2023
2020 - 2023 COMPARISON OF SALES TAX COLLECTIONS
Mortgage Tax Collections
FUNDS JANUARY FEBRUARY MARCH APRIL MAY JUNE JULY AUGUST SEPTEMBER OCTOBER NOVEMBER DECEMBER TOTAL Modified
Budget Variance
General Fund 34,322.20$ 53,409.18$ 44,688.56$ 41,194.10$ 38,924.45$ 37,585.86$ 34,923.93$ 39,194.88$ 35,691.08$ 33,052.75$ 32,420.56$ 28,572.10$ 453,979.65$ 295,566.00 158,413.65
General Part-Town Fund 7,567.53 6,067.56 7,526.08 7,005.33 7,496.33 8,174.25 7,717.70 11,090.56 11,497.47 11,847.72 12,258.68 11,547.56 109,796.77 54,603.00 55,193.77
Highway Fund - DA 3,307.22 3,779.34 4,622.28 4,195.99 3,949.55 3,880.93 3,317.33 4,500.42 4,389.19 4,388.27 4,365.78 4,036.49 48,732.79 24,394.00 24,338.79
Highway Part-Town Fund - DB 12,676.69 11,543.65 17,677.86 16,843.53 18,995.30 17,707.84 11,788.24 18,448.60 17,690.09 17,882.59 17,438.75 16,479.16 195,172.30 65,044.00 130,128.30
Water Fund 8,530.13 10,152.70 11,313.88 12,184.00 12,139.23 12,802.70 11,414.44 12,878.57 11,261.54 12,005.13 9,953.54 10,551.90 135,187.76 74,191.00 60,996.76
Sewer Fund 10,421.57 10,524.00 10,084.56 11,802.96 12,659.33 13,124.01 12,224.27 14,882.38 14,289.36 15,400.55 14,808.01 13,195.11 153,416.11 88,949.00 64,467.11
Risk Retention Fund 509.30 510.73 556.96 537.18 592.94 590.68 574.90 768.28 665.30 676.18 627.72 634.56 7,244.73 2,600.00 4,644.73
Fire Protection Fund 12,246.50 17,285.44 19,132.06 17,241.89 17,308.81 16,452.16 12,703.54 14,288.03 13,513.04 12,087.69 11,376.83 9,402.64 173,038.63 50,183.00 122,855.63
Debt Service Fund 1,411.69 1,519.52 1,686.19 1,685.89 1,748.92 1,648.16 1,591.81 1,908.45 1,715.48 1,796.46 1,693.34 1,560.01 19,965.92 500.00 19,465.92
Light District Funds 114.21 52.01 18.44 87.90 150.85 166.90 174.93 178.96 175.27 186.23 176.21 180.17 1,662.08 - 1,662.08
TOTAL - Operating Accounts 91,107.04$ 114,844.13$ 117,306.87$ 112,778.77$ 113,965.71$ 112,133.49$ 96,431.09$ 118,139.13$ 110,887.82$ 109,323.57$ 105,119.42$ 96,159.70$ 1,298,196.74$ 656,030.00 642,166.74
Investment Balance Interest Rate Maturity
Savings 654,035$ 4.00%n/a
CD - 12 Mos.5,192,648 4.60%2/13/2024
CD - 9 Mos.5,103,326 5.00%4/10/2024
CD - 12 Mos.5,020,878 5.20%11/28/2024
CD - 12 Mos.5,000,000 4.80%12/28/2024
CD - 12 Mos.54,440 4.80%10/25/2024
NYCLASS 2,762,046 5.25%n/a
TOWN OF ITHACA - INTEREST INCOME FOR FY-2023
Investments
as of 12/31/2023