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HomeMy WebLinkAboutB - 02 Town Board Minutes 10/10/2023 OCTOBER 10, 2023 11:00 A.M. SPECIAL TOWN BOARD MEETING BUDGET WORKSHOP The Special Meeting of the Town Board of the Town of Cortlandville was held at the Raymond G. Thorpe Municipal Building, 3577 Terrace Road, Cortland, New York with Supervisor Williams presiding. Members present: Supervisor, Thomas A. Williams Councilman, Jay E. Cobb Councilman, David J. Donlick Councilman, Jeffrey D. Guido Councilman, Gregory K. Leach Town Clerk, Kristin E. Rocco-Petrella Others present were: Town Financial Advisor, Richard Tupper; Financial Administrator, Megan Johnson; Deputy Town Clerk, Abigail Albro; Assistant to the Supervisor, Amanda Rainbow; Highway Sup’t. Larry Drach; Town Justice, MaryBeth Mathey; Water/Sewer Superintendent, Brian Congdon; Assessor, David Briggs; Town resident: Andrea Niggli; Others joining via Zoom video/telephone conference: None. Supervisor Williams called the Special Meeting to order for the purpose of a Budget Workshop to discuss the 2024 Tentative Budget. He explained that the Town began the budget process in June 2023 and that the committee spent in excess of 100 hours going through the budget requests from department heads. Most department heads submitted a “wish list” while some did not. The Tentative Budget, which the committee thought was a good budget, was based on the requests, what was spent last year, and inflation. He asked the Town’s Financial Advisor, Richard Tupper, and Financial Administrator, Megan Johnson to provide an overview of the budget. Richard Tupper, Financial Advisor to the Town, gave an overview of the 2024 Tentative Budget, which he said started off with a review of things past and present. He stated that it was a difficult budget process due to increased costs, noting that equipment prices alone have increased significantly. He noted the following with regard to the 2024 Tentative Budget: • Highway Equipment – trucks were ordered in 2022 and 2023 that have not been delivered. The truck budgeted for 2024 likely won’t be received until 2025/2026. • Purchased a new Roller using Highway Reserve Funds in 2023. As the Town moves ahead with the construction of the Concession Building at GLSC, the Roller will be used. • Revenue is up, including the federal revenue. • Sales Tax revenue – Town has been underestimating the revenue – in 2022 and 023 the revenue was close to $1 million more than budgeted. The Town included $400,000 more in expected sales tax revenue for the 2024 budget. Sales tax revenue is in General Fund B. • General Fund A is the Townwide fund, which was “a problem this year”. When the A budget increases the tax rate for the Village of McGraw increases. A lot of time was spent reviewing and cutting the GFA budget lines, but the Village will still have more of a tax increase. The village tax rate may increase by $1.12/1,000 of assessed value while last year the rate decreased about $0.32/1,000 of assessed value. The Town does not have a lot of money to rollover from 2023 to 2024. Town is spending more money and taking in more revenue. The Town tax rate will increase about $0.01/1,000 of assessed value. • The Town will be under the tax cap; at this time the Town will not have to adopt the Local Law to override the tax cap. • Park revenue is increasing. Supervisor Williams asked the Board for their input and/or questions, noting that they have all had the Tentative Budget in their possession for six days. Questions could be answered by himself, Mr. Tupper or Ms. Johnson. Councilman Leach stated there has been concern from the public about the Budget Officer’s salary. He stated that he agreed with making Supervisor Williams the Budget Officer but proposed removing the salary and hiring Mr. Tupper as the Board had in the past, which would save the Town over $15,000.00. Mr. Tupper interjected and stated that as the Financial Advisor he has no responsibility to the State or to the Board. It is Supervisor Williams who is responsible for every decision the Town OCTOBER 10, 2023 SPECIAL TOWN BOARD MEETING PAGE 2 makes and stated, “Tom has to pay the price and has to deal with the auditors and comptroller … that’s the reason you have a Budget Officer … you have to have one and compensate.” Councilman Leach recalled that when Mr. Tupper was the Supervisor, he was also the Budget Officer. He suggested another option was to take $12,000 from the Budget Officer’s salary to pay Mr. Tupper. Mr. Tupper explained that he has a background in accounting and prior to being the Town Supervisor he was on the County Legislature and worked on the County’s budgets. He stated, “government finance is a totally different world than private finance”, whi ch he said was part of the reason Supervisor Williams asked him to work with the Town. Supervisor Williams stated that the salary was the Board’s decision. He explained his role as Budget Officer and his daily responsibilities, noting that he works with Financial Administrator, Megan Johnson daily. He explained that the first approval for every purchase, other than the automatic paper and pens is on his plate. He offered the example of a recent purchase of equipment needed to solve a problem, stating that “we recognize problems and solve them expeditiously”. He apprised the Board that he spends a lot of his time working on financials and mentioned that during the preparation of the budget they go through each item line by line and that he makes the final decision. He reiterated that the Board could do whatever they wanted with the salary. Councilman Leach state, “you are our supervisor – that’s your job”. He explained that as the owner of a business there are “things that fall on me daily …”. Councilman Leach proposed to split $12,000 from the Budget Officer’s salary to be used to pay Mr. Tupper, with the balance to go to the Supervisor as Budget Officer. He stated that the split would save the Town $12,000. Councilman Leach made a formal motion to reduce the Supervisor’s Budget Officer salary by $12,000.00 (for the year 2024). Councilman Donlick seconded the motion, followed by a vote from the Board. RESOLUTION #297 DECREASE THE SALARY OF THE BUDGET OFFICER AS LISTED IN THE 2024 TENTATIVE BUDGET (A1340.1) BY $12,000.00 Motion by Councilman Leach Seconded by Councilman Donlick VOTES: AYE – Cobb, Donlick, Leach NAY – Guido ABSTAIN – Williams ADOPTED BE IT RESOLVED, the Town Board hereby decreases the salary of the Budget Officer as listed in the 2024 Tentative Budget (A1340.1) by $12,000.00, thereby reducing the salary from the total of $27,651.81 to $15,651.81. Councilman Leach asked questions regarding the budget lines for Gutchess Lumber Sports Complex (GLSC). He asked if the increase in A7110.1 (Culture and Recreation Parks, Personnel) from $70,000 to $110,000 was due to salary. Mr. Tupper explained that the Town hired a full- time employee for $40,000+ in addition to the Recreation Director. Councilman Leach asked the following questions: Can we set GLSC up with its own set of books, so we keep track of revenue and expenses? Are some of these costs being buried so GLSC looks better? Is the Highway Department paying for GLSC expenses? Mr. Tupper explained that the Highway Superintendent is responsible for parks and recreation and offered the example of the Highway Department mowing all town property including the parks. The Highway Department also has skilled workers such as plumbers and carpenters. He explained the Town has to pay prevailing wage to anyone else who works on the parks. If the Highway Superintendent sends employees to help at the park it is only when he can do it, however the Highway Superintended is responsible for Town parks. Councilman Donlick stated that he understood, but asked if GLSC should be broken out for the sake of the public. He noted that the budget separates each park, but from what he has heard from the public, when the budget is prepared it looks like “smoke an d mirrors”. He asked that it be “all spelled out” for GLSC. Mr. Tupper explained that when department heads submit their budget requests, they itemize the expenditures, however the information is condensed into the budget line. He stated it would be impossible to break it all down. Mr. Tupper mentioned that every month the Board receives the Supervisor’s report of expenditures and revenues; there is an itemized report that Ms. Johnson prepares for the Supervisor and Mr. Tupper that the Board could also review, which he showed the Board. Councilman Donlick suggested it would be helpful for the Board and for the public to see the breakdown. Mr. Tupper suggested that Ms. Johnson provide the full report to the OCTOBER 10, 2023 SPECIAL TOWN BOARD MEETING PAGE 3 Board, which shows each budget line. Ms. Johnson can break down every budget line to see all of the transactions; the information is already available. Supervisor Williams responded to Councilman Leach and Councilman Donlick. He stated that as we move along and as GLSC grows, he has instructed them that he wants to see GLSC become its own department and its own entity. The Highway Superintendent is in charge of parks and in time it needs to be changed noting that the Town has a Recreation Director. More work needs to be done in order to separate the parks. He stated that the Highway Department could bill the parks for work done and then reimburse the Highway Department fund. Councilman Leach stated that GLSC is not an ordinary park but is a money-making enterprise. He asked, how do we know what to charge [for rentals] if we don’t know our true costs to maintain the parks. Mr. Tupper stated that they could look to reorganize that. He mentioned that the town parks are in GFA, which is the part of the budget the Town has the most problem with. GFA does not receive sales tax. Any excess sales tax goes into the highway’s budget. Town Clerk Rocco-Petrella recalled that parks used to be in GFB. Mr. Tupper agreed and said the parks were moved to GFA as everyone, town wide uses the parks. In the past with the parks in GFB, the villages were not paying for parks. He stated that unless the Town starts to get additional revenue in GFA, everything that goes up in GFA affects the Village of McGraw more than the rest of the town which is not what the Town wants to do. Councilman Leach asked about the increase in budget line B7310.4, Youth Program Contractual Expense, which increased from $112,000 to $129,000. Mr. Tupper explained that the expenditure line is for the youth programs. The Town has recreation contracts with the Village of McGraw, Village of Homer, and City of Cortland. The increase was due to an increase in the Village of McGraw contract to help pay for the Village to rebuild its softball field; the contract with the City of Cortland also increased. The contract with Homer would remain the same and has been stable for several years. Supervisor Williams added that he asked the City of Cortland to identify specific items that the Town would be supporting with the requested funds, such as for the chemicals at Wickwire Pool, and the repair of Yaman Beach. He explained that approximately 25% of the participants in the City’s recreation programs are Cortlandville residents. The City requested $86,820 for the 2024 year. The City also checks the Town parks at night to make sure they are closed, and also lines the fields at the parks (excluding GLSC). Town residents pay the same participation fees as City of Cortland residents due to the Town’s contract with the City. Councilman Donlick asked about budget line A3310.4, Traffic Control. Ms. Johnson explained that the budget line pays for striping town roads. Mr. Tupper added that the County Highway Department stripes the Town’s roads, and the Town pays the County. Councilman Donlick commented on the expected revenue from the mortgage tax, suggested that the budgeted amount seems high. Mr. Tupper understood his concern and explained that the Town received $75,000 in revenue for the first six months of 2023 and expected the revenue would be the same for the next six months. The revenue in the 2024 budget was reduced by $100,000 for the budget line. He stated that despite the high interest rates, people are still buying houses. Councilman Donlick stated that the federal government was going to raise interest rates again and suggested that in 2024 the Town may receive as much mortgage tax. Assessor David Briggs commented that both he and local realtors are surprised that the numbers are what they are. Assessor Briggs commented on the Town’s equalization rate which was down to 70%. He explained that normally, when the equalization rate drops below 80%, he would talk to the Board about a townwide reassessment. However, he was not supporting a reevaluation until the levels stabilize, based on what has happened over the past three years. Mr. Tupper informed the Board that a modification to the expenditure line (A8090.4) for the South Hill Dump must be made. The total amount in the 2024 Tentative Budget was $14,000, however the Board authorized a change order at their October 4, 2023 meeting in the amount of $4,500 for additional work. The Board was in agreement to increase the budget line A8090.4 to $18,500. Mr. Tupper did not expect the change to have an impact on the tax rate. Councilman Donlick asked about the budget line B2111, Building Permit Fees and whether $50,000 in revenue was appropriate. The total revenue in 2022 was $38,952, and the amount collected through August 31, 2023 was $27,578.50. Mr. Tupper explained that the revenue was $50,000 in the 2023 budget as well. He expected that the earned revenue for 2023 would increase as there are five months left of the year. With regard to PILOT revenue, Town Clerk Rocco-Petrella informed Ms. Johnson and Mr. Tupper that she included the 2024 Administrative Fees for solar in the PILOT revenue line. She asked if that revenue must be moved to a different revenue line or if it was appropriate to include it with the PILOT revenue. Ms. Johnson would look into her question. A change, if needed, would not have an impact on the tax rate. Councilman Donlick asked about the budget line for State Retirement noting that no expenditures have been made in 2023. Ms. Johnson explained that the Town does not pay the State Retirement until December of each year; the Town receives a discount to pay early for the next year. The amount due in December 2023 for the year 2024 is less than the Town budgeted in OCTOBER 10, 2023 SPECIAL TOWN BOARD MEETING PAGE 4 2023. However, Mr. Tupper mentioned that the amount in the 2024 budget increased by $2,000 as it looks like the federal government has or will increase the percentages. Ms. Johnson indicated that there is a $2,000 buffer in each of the retirement fund budget lines. Councilman Leach stated that he looks at the trends in his line of work; when he sees interest rates going up and unions going on strike, he wonders if sales tax will be affected. He stated that he was trying to be conservative. At the beginning of the year, we were looking at 7.5% interest rates. He stated, “I don’t think we recovered from that”. Mr. Tupper stated that we look at trends too, noting that the Town has sales tax figures that go back to 2000; sales tax only went down one time since then. The Town received more than budgeted in 2022 and in 2023, to date, the Town already received the amount budgeted and has one more check to be received this year. All three of the checks received in 2023 were more than they were the previous year. While Mr. Tupper and Supervisor Williams expected the 4th quarter check would also be high, Ms. Johnson expects the check to be less. Councilman Leach stated that these were unusual times with the pandemic, and now the government has stopped infusing money. Mr. Tupper stated that GLSC must have had an impact as there are 500 kids playing baseball on the weekend; hotels are booked; occupancy tax is up. Supervisor Williams explained that out of all the sales tax revenue in the County, the Town receives approximately 8.4% of the total revenue. If the Town’s revenue is up, the revenue in other municipalities is up. He stated, “look at how much is coming into the County, the City, in Willet …”. Mr. Tupper agreed and suspected that the City will earn over $6 million in sales tax revenue for 2023. Councilman Donlick asked how often the Town discusses sales tax with the County. Mr. Tupper explained that it was a ten-year agreement with a five-year renewal. He thought the five- years would be up in 2024. However, he explained that sales tax is decided by the City and the County. The County would like to keep 100% of sales tax, but that would impact all municipalities. Mr. Tupper explained that if the Town had to raise the revenue in taxes, the Town tax rate would increase at least $5.00. However, the County could take all of the sales tax money. Mr. Tupper explained that at the end of the five years, the City picks up another percentage and the Town’s percentage decreases; with inflation the Town should not be impacted. Mr. Tupper stated that economically, the Town is in very good shape. With sales tax, excess revenues and growth there is a reason the Town’s tax rate has only increased a total of $0.15 in years. He stated that the Town is fortunate; we are secure. Supervisor Williams stated that the Board could continue to review the Tentative Budget before moving it to the Preliminary Budget, which would be done at a future meeting. Prior to the close of the meeting, Town Clerk Rocco-Petrella submitted a request to the Board for consideration of an increase in salary for her staff, indicating that she submitted a request with her budget workpapers. However, the proposed 3.2% salary increase for all employees was all that was put in the tentative budget. No further comments or discussion was heard. Supervisor Williams adjourned the special meeting at 12:12 p.m. Respectfully submitted, Kristin E. Rocco-Petrella, RMC Town Clerk Town of Cortlandville *Note: The draft version of this meeting was submitted to the Town Board for their review on October 24, 2023. The final version of this meeting was approved as written at the Town Board meeting of .