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HomeMy WebLinkAboutAgenda 03-21-2022TOWN OF ITHACA BUDGET COMMITTEE Monday, March 21, 2022 - 12:00 p.m. Join Zoom Meeting https://us06web.zoom.us/j/5063713554 AGENDA • Review and approve meeting minutes from February 14, 2022. • Review and approve early payoff of 2015 Road Improvements Bond using 2021 DB Projected Fund Balance. • Review an additional IT Position. • Review and recommend common Property Tax Exemptions. • Other Items Next Meeting: Monday, April 11, 2022 - 12:00 p.m. 1 BUDGET COMMITTEE Meeting Minutes - February 14, 2022 Committee present: Eric Levine - Chairman, Pam Bleiwas, Rod Howe Staff present: Donna Shaw, Judy Drake, Joe Slater, Marty Mosely, Dan Thaete, Debby Kelley, Paulette Rosa Meeting was called to order at 12:02 p.m. AGENDA ITEMS:  Review and approve meeting minutes from September 13, 2021 and January 10, 2022. Moved: Pam Bleiwas Second: Rod Howe Motion Passed  Update/discussion on projected Fund Balance for 2021. Projected Fund Balance Report attached. The report used data through 2/7/2022 and is not final. All four of the major governmental funds has unassigned fund balance of more than 40% of 2022 budgeted expenditures. Some projects have been identified from the 2022-2026 Capital Improvement Program (CIP) to use fund balance in 2023. The Committee discussed paying down road improvement debt in 2022. The recent energy audit has identified facility improvements that may be a good use of fund balance. These projects will likely be part of a multiyear plan and will be incorporated into the 2023-2027 CIP. The committee will work to establish a thoughtful, fiscally responsible plan for its use over the next couple months to present to the Town Board.  Review of Town’s Long-Term Debt and Initial Discussion on possible 2022 Bond Issue. The committee reviewed the report on the Town’s Outstanding Debt by Fund as of January 1, 2022. The 2015 bond is callable later this year. It is possible to payoff $461,000 in road improvement debt from Highway Part-Town fund balance. The remaining $1,239,000 balance is water debt and could potentially be refinanced with the next bond issue. The 2021 water projects to be funded with bonds: Campbell Hopkins - $500,000 King Road East - $1,050,000 The King Road East project was delayed and is expected to pick up again this spring and be completed later this year. The 2022 Ridgecrest Booster Pump project for $1,100,000 will be funded with ARPA. At this point, the bonded projects total approximately $1,550,000. Plus, the possible refunding of 2015 water debt of $1,239,000 gives us $2,789,000 in potential bonding. We typically try to bond for $4 – 5 million because of the staff time and fees involved (fiscal advisors, bond counsel, etc). The committee discussed waiting to bond until 2023 to include any potential projects from the 2023-2027 CIP. Bond anticipation notes may be sought later this year if cash flow becomes an issue. 2 Staff will contact Fiscal Advisors to discuss timing, options, and the costs involved with issuing BANs prior to the bond issue.  Energy Audit Recommendations. Taitem Engineering prepared an energy audit for the Town. There are lighting improvements identified in the report that could be implemented this year. Other smaller projects would include air sealing and insulation and water heating at Town Hall. Most of the report involved large projects that would require further review by an engineer and/or architect to develop a multiyear implementation plan. There may be grant opportunities to fund improvements at Town Hall since the building is on the federal historic registry. These recommendations will be discussed further as the 2023-2027 CIP is developed.  Review Common Property Tax Exemptions. Preliminary information was received by Jay Franklin and shared with the Committee. The committee discussed options and expressed interest in looking at details more closely in the coming months. Jay Franklin is also willing to attend a future meeting to go into greater detail.  Other Items. Staff met with Tompkins Trust Company representatives for a periodic relationship meeting to review the banking relationship. The Town currently has 39 bank accounts, and it was decided to streamline our processes and close 20 of those accounts. Most of the Town’s cash has been in a super municipal savings to maximize interest earnings for a few years. We would be closing the lesser used accounts that have been consolidated into the short-term investment account. The Town has implemented dual controls to approve ACH and wire transfers. The Town is pursuing a new credit card with increased cash back possibilities. We will also increase the credit limit to accommodate paying utility bills and avoiding late fees. Mail delivery has been an issue that resulted in recent late fees. Mail delivery has also been an issue for tax bills. Debby sent out second notices earlier this year as a courtesy and that seemed to prompt people to pay. And prompted many complaints about not receiving the original tax bill. This also resulted in requests to waive late fees, that we are prohibited from doing. The meeting was adjourned at 12:55 p.m. Next Meeting: Monday, March 14, 2022 at 12:00 p.m., Town Hall - Aurora Room or Zoom General Townwide General Part Town Highway Townwide Highway Part Town Fund Equity Beginning Detail Fund Balance Beginning @ 1/1/2021 3,855,828 2,123,322 652,518 5,264,702 Prior Period Adj - Retiree Health Liability 368,302 189,973 140,517 Add: Revenue & Other Sources (as of 02/07/2022)8,212,159 1,102,557 832,345 1,120,222 Deduct: Expenses & Other Uses (as of 02/07/2022)(5,327,161) (1,611,650) (591,418) (2,899,871) Fund Balance Ending @ 12/31/2021 7,109,128 1,804,202 893,445 3,625,570 Less: Amount of Additional Fund Balance Appropriated and Assigned in the Adopted 2022 Budget - 914 (575,482) (39,125) - - Encumbrances (433,545) (20,914) (253,156) (32,569) Less: Reserved Portion of Fund Balance Non Spendable: Prepaids - 806 (139,262) (59,240) (12,336) (53,840) Restricted: Preserve Maintenance Reserve - 870 (41,652) Land Stewardship - 870 (10,095) Saunders Park donation - 870 (44,150) Parks & Open Space - 878 (724,763) Committed: Gen'l Benefit Purposes - 867 (154,398) (77,199) (80,708) Cemetary Maintenance - 867 (4,501) Equipment (399,477) Maple Ave. Rehab (153,000) Assigned: Assigned Unappropriated (R Fund)(149,719) Unassigned Fund Balance 12/31/2021 4,831,561 1,607,724 627,953 2,905,976 2022 Budgeted Expenditures 5,622,070 1,912,977 732,591 2,880,379 Fund Balance % of Budgeted Expenditures 85.94%84.04%85.72%100.89% Fund Balance Over 40%2,582,733.28 842,532.92 334,916.60 1,753,824.70 Potential 2022 Uses 2015 Bond Payoff (461,000.00) Open Space Plan Contribution (reserve)(100,000.00) Potential 2023 Uses Transfer from B to DB for Maple Ave project (246,571.00) 246,571.00 CIP - Roads (Maple Ave & Judd Falls?)(740,000.00) CIP - PWF Fueling Station Construction (481,370.00) Potential 2024 Uses 2014 Bond Payoff (361,000.00) 2,001,363.28 595,961.92 334,916.60 438,395.70 2021 Fund Balance - Projected 3/17/2022 1 Donna Shaw From:Judy Drake Sent:Monday, March 14, 2022 4:33 PM To:Donna Shaw; Rod Howe Subject:budget -wages Donna and Rod, This is the breakdown of where the funds would come from for the new Computer System Support Aide position. There is no concern for adding this position in 2022. I am doubting we will be budgeting for the DFO position in ’23 or ’24. 2022 payroll changes In 2022 Budget: Deputy Finance Officer $ 72,988.50 IT Intern $ 15,356.25 A Fund Total $ 88,344.75 Change in position expense IT Intern Jan -April estimated $ 10,631.25 Computer System Support Aide C class $28.36 $ 36,669.00 17 pays Pay 10-26 4/25 - 12/17/22 A Fund Total $ 47,300.25 Remaining DFO wages $ 41,044.50 Judith (Judy) Drake, PHR/SHRM-CP Human Resource Manager For: Town of Ithaca, Bolton Point Water System and Greater Tompkins Co. Municipal Health Insurance Consortium Town of Ithaca Town Hall 215 N. Tioga Street Ithaca, NY 14850 Phone: 607-273-1721 x 115 Fax: 607-273-5854 Cell: 607-220-4879 JDrake@town.ithaca.ny.us www.town.ithaca.ny.us www.boltonpoint.org www.healthconsortium.net 2 “The Town, Commission and Consortium value having a diverse and inclusive workforce to serve our diverse constituents, customers and members.” Real Property Tax Law Section 470: Green Buildings Construction of improvements as specified in local law and is certified as meeting one of three levels of energy efficiency and environmental standards is partially exempt from taxation but still liable to special ad valorem levies and special assessments. Such partial exemption is valued by the value added to the property by the improvements and varies according to the level of certification standard:  Property must meet standards established by LEED, the Green Building Initiative’s Green Globes rating system, the national green building standards as approved by the American National Standards Institute (ANSI), or substantially equivalent green building standards determined by the taxing jurisdiction. The property must be certified by an accredited professional.  The construction or reconstruction project must be documented by a building permit or other documentation as required by the assessor.  Property must be owned by an individual(s) or by a private organization. Local Options: 1. The governing board must pass a local law or ordinance to adopt the exemption after a public hearing. 2. The governing board may establish a maximum exemption amount in its local law or ordinance after a public hearing. (For example, the County established a $100,000 maximum when they adopted the exemption.) 3. The taxing jurisdiction may specify any date after January 1, 2013 as the date after which the construction or reconstruction must have commenced for the property to be eligible for exemption. Certified/Silver Gold Platinum 1 100 100 100 2 100 100 100 3 100 100 100 4 80 100 100 5 60 80 100 6 40 60 100 7 20 40 80 8 0 20 60 9 0 0 40 10 0 0 20 Year of exemption Percentage of exemption Real Property Tax Law Section 421-f: Capital Improvements One- and two-family residential buildings that are reconstructed, altered, or improved under certain conditions are exempt from taxation and special ad valorem levies to the extent of an annually declining percentage of at least some of the increase in the property’s assessed value attributable to the reconstruction, alteration, or improvement. No exemption is allowed for special assessments. Local taxing jurisdictions may limit the types of construction projects eligible for exemption and the percentages of exemption.  The extent of the exemption is determined by the exemption base and the percentage of that base allowed as exempt each year. The exemption base is defined as the increase in assessed value as determined in the initial year of the term of exemption.  Property must be used as a residential building for not more than two families.  The value of the construction project must exceed $3,000 and must be of the type allowed exemption by the taxing jurisdiction (see below); the project may not be one of ordinary maintenance or repairs.  The greater portion of the building, as measured by the square footage, of the building reconstructed, altered or improved, must be at least five years old. Local Options: 1. The governing board must pass a local law or ordinance to adopt the exemption after a public hearing. 2. Any taxing jurisdiction may reduce the percentage of exemption allowed in each year by state law (see table above). 3. State law limits the exemption to a maximum of $80,000 in increased market value. Local taxing jurisdictions may reduce this maximum to any amount not less than $5,000. 4. A taxing jurisdiction may limit the forms of reconstruction, alteration, or improvement eligible. The County also included a provision that the exemption must be applied for within 1 year of completion of the project. Year of exemption 1 2 3 4 5 6 7 8 62.5 50 37.5 25 12.5 Percentage of exemption base 100 87.5 75 Real Property Tax Law Section 485-g: Residential Subdivision Infrastructure Residential building lots which are part of a subdivision for residential development which includes infrastructure intended to be dedicated to a municipality are exempt from taxation to the extent of the increased assessed value of such lots resulting from the addition of such infrastructure but are liable for special ad valorem levies and special assessments. The duration of the exemption extends from the time the exemption is granted until the issuance of a certificate of occupancy, but in no event longer than three years following the granting of the exemption.  Property must be owned by a private individual or organization.  Property must be located on residential building lots which are part of a subdivision plat for residential development which includes infrastructure intended to be dedicated to the municipality.  The owner of the subdivision must file a subdivision plat which shows the facilities which comprise the infrastructure eligible for this exemption – i.e. streets, storm and sanitary sewers, drainage facilities and any other facilities required by the municipality. Local Options: 1. The governing board must pass a local law or ordinance to adopt the exemption after a public hearing. Real Property Tax Law Section 467: Persons 65 years of age or older Originally adopted by the Town on March 8, 1971. Income limits should be updated. Local Law section 239-2: A. Pursuant to the provisions of § 467 of the Real Property Tax Law of the State of New York, real property located in the Town of Ithaca, owned by one or more persons, each of whom is 65 years of age or over, or real property owned by husband and wife or by siblings, one of whom is 65 years of age or over, or real property owned by one or more persons, some of whom qualify under § 467 and the others of whom qualify under § 459-c of the Real Property Tax Law of the State of New York, shall be partially exempt from taxation by said Town for the applicable taxes specified in said § 467 based upon the income of the owner or combined incomes of the owners. Such partial exemption shall be to the extent set forth in the schedule following: [Last amended 1-12-2009 by L.L. No. 2-2009 Annual Income of Owner or Combined Annual Income of Owners Percentage Assessed Valuation Exempt From Taxation Up to and including $28,000 50% More than $28,000 but less than $29,000 45% $29,000 or more but less than $30,000 40% $30,000 or more but less than $31,000 35% $31,000 or more but less than $31,900 30% $31,900 or more but less than $32,800 25% $32,800 or more but less than $33,700 20% $33,700 or more but less than $34,600 15% $34,600 or more but less than $35,500 10% $35,500 or more but less than $36,400 5% Amend table to increase “M = $29,000” 50% 45% 40% 35% 30% 25% 20% 15% 10% 5% Annual Income of Owner or Combined Annual Income of Owners Percentage Assessed Valuation Exempt $32,000 or more but less than $32,900 $32,900 or more but less than $33,800 $33,800 or more but less than $34,700 $34,700 or more but less than $35,600 $35,600 or more but less than $36,500 $36,500 or more but less than $37,400 Up to and including $29,000 More than $29,000 but less than $30,000 $30,000 or more but less than $31,000 $31,000 or more but less than $32,000 Real Property Tax Law Section 459-c: Persons with disabilities and limited incomes Originally adopted by the Town on February 9, 2004. Income limits should be updated. Town Law section 239-12: A. Pursuant to the provisions of § 459-c of the Real Property Tax Law of the State of New York, real property located in the Town of Ithaca, owned by one or more persons with disabilities as defined in § 459-c, or by a husband, wife, or both, or by siblings, at least one of whom has such a disability, or real property owned by one or more persons, some of whom qualify under § 459-c and the others of whom qualify under § 467 of the Real Property Tax Law of the State of New York, and whose income is limited by reason of such disability, shall be partially exempt from taxation by said Town for the applicable taxes specified in said § 459-c based upon the income of the owner or combined incomes of the owners. Such partial exemption shall be to the extent set forth in the schedule following: [Last amended 1-12-2009 by L.L. No. 3-2009] Annual Income of Owner or Combined Annual Income of Owners Percentage Assessed Valuation Exempt From Taxation Up to and including $28,000 50% More than $28,000 but less than $29,000 45% $29,000 or more but less than $30,000 40% $30,000 or more but less than $31,000 35% $31,000 or more but less than $31,900 30% $31,900 or more but less than $32,800 25% $32,800 or more but less than $33,700 20% $33,700 or more but less than $34,600 15% $34,600 or more but less than $35,500 10% $35,500 or more but less than $36,400 5% Amend table to increase “M = $29,000” 50% 45% 40% 35% 30% 25% 20% 15% 10% 5% Annual Income of Owner or Combined Annual Income of Owners Percentage Assessed Valuation Exempt $32,000 or more but less than $32,900 $32,900 or more but less than $33,800 $33,800 or more but less than $34,700 $34,700 or more but less than $35,600 $35,600 or more but less than $36,500 $36,500 or more but less than $37,400 Up to and including $29,000 More than $29,000 but less than $30,000 $30,000 or more but less than $31,000 $31,000 or more but less than $32,000