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HomeMy WebLinkAbout2020-10-05-TownBoard-BudgetWorkshop-MinutesTown of Danby Town Board Budget Planning Meeting via Zoom Video Conferencing 05 October 2020 at 6:00 PM Attendees: 1.Call to Order 1.Meeting called to order at 6:02pm by Town Supervisor Joel Gagnon. 2.Budget Workshop Facilitated by Laura Shawley, Town Bookkeeper 2.1. Shawley compiled starting point figures for the general fund and delivered to all councilpersons. The goal is to have a place to start analyzing things looking at the different accounts to see where we would be. 2.1.1.She completed a tax levy analysis with the general fund, the water fund, and the highway fund; fire district does not have figures yet, although the fire district has its own tax cap. 2.1.1.1.This current proposed starting budget is over the tax levy limit by $89,943. 2.1.1.2.This is a levy increase from last year of $137,040. 2.1.2. Five-Year Budget rate analysis 2.1.2.1.Provides the tax amount for hundred thousand dollars of assessed value over the previous 7-year period. 2.1.2.2.Based on this analysis, for every $100k in assessed value of a home, the taxes would increase by $38.20. 2.1.2.3.Notes of mention: 2.1.2.3.1.These figures are governed by the assessments. Town Board Joel Gagnon, Supervisor Leslie Connors Jim Holahan Sarah Schnabel Matt Ulinski Recording Secretary Janice R. Adelman, Town Clerk Bookkeeper Laura Shawley Members of the Public Bill Evans Bruce Richards Katharine Hunter Ted Crane Town Board Meeting Town of Danby 05 October 2020 2.1.2.3.2.The levy went up every year except in 2018, when the board elected to not raise levy at all. 2.1.2.3.3.The budget has been under the tax cap every year except in 2017 when we over by about $79k. 2.1.2.3.4.In 2017, appropriated $60k from the fund balance to balance the budget; however by looking at the overall year-end fund balance, it increased by $189k that year. 2.1.2.3.5.In the proposed 2021 budget, it is over the tax cap by $89,943 without using a fund balance to balance the budget. 2.1.2.3.6.At the end of 2019 the balances are 2.1.2.3.6.1.General Fund Balance: $445k 2.1.2.3.6.2.Highway Fund balance: $402k 2.1.2.3.6.3.This does not include the amount in our building reserve nor in our retirement reserve. 2.1.2.3.7.The current proposed starting budget for 2021 shows an increase of $38.20 per $100k of assessment. For example, given a $150k assessed value home, taxes would increase about $58-$59. 2.1.3.Keep in mind that the budget will also be influenced by other departmental needs, such as the library, the pond, etc. 2.1.4.There was a lengthy discussion following a question from Schnabel regarding taking into account the metered water sales income in the Water District budget as a means of reducing the need to go over the tax levy. 2.1.4.1.Shawley noted that we are already including the metered water sales in this analysis. 2.1.4.2.Gagnon noted that the water district actually contributes meaningfully to keeping us from running over the tax cap more because there was a major adjustment in the budget of the water district by about $26k. 2.1.4.3.Ulinski asked how we are getting away with saving that money in the water budget. 2.1.4.4.Gagnon replied that we’ve been budgeting; taxing and accumulating $15k a year ever since the major increase several years ago to raise the money to do studies on the system as a prelude to the major upgrades that were taking place. But that increase was never taken out so the water district has run up as a consequence the meaningfully large fund balance. 2.1.4.5.Gagnon noted that the budget previously had been fairly conservative and when there wasn’t much of a fund balance there was a Budget Workshop Minutes of 2 5 Town Board Meeting Town of Danby 05 October 2020 lot of buffer in some of the line items to meet any potential unforeseen needs. 2.1.4.6.Gagnon also noted that with a $300k+ fund balance there’s no need to have that kind of excess money in the budget so the projection for next year is much closer to the actual expectations for what it will actually cost to run the system. 2.1.4.7.Ulinksi commented his understanding was that the water district needed serious funding to upgrade. 2.1.4.8.Gagnon replied that we did make serious upgrades to it, but what’s missing is an analysis which the Board of Commissioners is focused on doing that would get us to the life expectancies for the major components within the system. 2.1.4.8.1.The piping in the main one 2.1.4.8.2.The tank is brand new 2.1.4.8.3.Looking into a spare pump 2.1.4.8.4.Already have several spare chlorinators 2.1.4.9.Ulinksi replied that it brings up a good question and thanked Sarah for bringing this topic up, are there other items in the budget where you’ve done something similar that we need to know about? 2.1.4.9.1.Gagnon: Not a whole lot. Shawley and Gagnon discussed some of the discretionary spending such as the Community Council, Seniors, West Danby Community Association, the Pond Program, where they’re not using their entire budget this year. So the question is should we reduce their budget next year? Suggested that we not since we don’t know what it will be like; rather not drop it back and then jump it up again next year. This is where we are with the pond program—we didn’t spend the money and that money will help with the fund balance at the end of the year. But rather than cut it back dramatically, well we cut it a little bit… 2.1.4.9.2.Schnabel: It was cut almost in half—I’d say that’s pretty dramatic. 2.1.4.9.3.Ulinski: I thought we were going to meet with all of these groups and talk to them about their budgets before we did anything to them. 2.1.4.9.4.Gagnon: Yes, this is as Laura said, a starting place. 2.1.4.9.5.Shawley: This is in no way a final budget, just a starting place to have some figures together. 2.1.4.9.6.Ulinski, agreeing with the starting point, was concerned that the numbers don’t show the reasoning behind why they changed. Budget Workshop Minutes of 3 5 Town Board Meeting Town of Danby 05 October 2020 2.1.4.9.7.Shawley noted that some departments have reviewed this proposed budget, including Water and Highway. 2.2.Departmental Budget Reviews 2.2.1.Highway and Water District were reviewed in detail during other meetings. 2.2.2.Water District Board of Commissioners will be meeting and reviewing their budget lines. 2.2.3.Ulinski recommends that we have someone from the Water District come to the next meeting to have this discussion. 2.2.4.Gagnon commented that so far there has been a preliminary meeting previously authorized by the Water District Board in which Bruce and Tod and Laura and Joel went through the budget line by line to come up with this proposal, which was presented to the board at last month’s meeting and will also be reviewed at Wednesday’s meeting of the Board of Water Commissioners. 2.2.5.Shawley commented that normally a packet is sent out to every department (e.g., Highway, Planning, Clerk) to fill out and make a proposal of what they’re asking for in their budget. This year, the process was a little different in making projections of where the Town wanted to be and then working through the budget with the various departments to determine needs based on what’s going on with the rest of the world and how it’s affecting everybody in town. 2.2.6.Gagnon also commented that there has been a lot of turnover in personnel such that people currently occupying positions in those departments are not in a good position to project based on their limited experience as to what their needs will be in the next year. 2.2.7.Shawley walked through several budget lines to help provide context to some of the projected figures, such as printing costs for taxes in the Clerk’s office, salary increases, building repairs, and contractual budgets. 2.2.8.Holahan and Connors requested budget discussions be had with groups such as the historian, librarians, seniors group, food pantry. 2.2.9.Ulinksi asked if the Community Council and the Water District could appear at the next Board meeting to discuss their budgets with kudos to Jim Holahan for this plan. 3.[Ulinksi signed off at 7:52pm.] 3.1.Final Budget Discussions Around Reviewing the Revenue Lines 4. Concluding Remarks 4.1.Gagnon noted that this was a good review. Budget Workshop Minutes of 4 5 Town Board Meeting Town of Danby 05 October 2020 4.2.Schnabel asked if there will be a meeting to go through and talk about everything. 4.3.Shawley: Now that you know where you’re at, you can pick it all apart, meet with the different departments, and modify figures to see what happens. Suggest focusing on what is your strategy going forward?; where do we want to be?; what is our goal for this year?; do we want to stay under the team cap? Now that you can see what’s in front of you, you can see what you want to do next. 4.4.Next Actions 4.4.1.Board members will talk to departments before next week’s Board meeting. 4.4.2.We then need to have a public hearing on the budget 4.4.3.Budget approval in November. 4.4.4.Announce committee and board vacancies; first meeting in December is the deadline for applications; second meeting is when interviews occur. 5.Meeting Adjournment 5.1.Meeting adjourned at 8:23pm. ______________________________________________ Janice R. Adelman Town Clerk Budget Workshop Minutes of 5 5