The URL can be used to link to this page

Home My WebLink AboutMN-CC-2025-08-06YouTube Link:https://tinyurl.com/vxxtbew8 Date: Location: Wednesday August 6, 2025 City Hall Council Chambers 8-6-2025 COMMON COUNCIL REGULAR MEETING Voting Record 1.Call to Order- 10 Min 1.1 Emergency Evacuation 1.2 Agenda Review 1.3 Reports From Municipal Officials 1.4 Proclamations and Awards- Quarterly Recognition 2.Review and Approval of Minutes- 5 Minutes Attendance Record of Voting Members Name Present Absent/Excused Mayor - Robert Cantelmo X 1st Ward - Kayla Matos X 1st Ward - Phoebe Brown X 2nd Ward - Ducson Nguyen X 2nd Ward - Kris Haines-Sharp X 3rd Ward - David Shapiro X 3rd Ward - Pierre Saint-Perez X 4th Ward - Patrick Kuehl X 4th Ward - Tiffany Kumar X 5th Ward - Margaret Fabrizio X 5th Ward - Clyde Lederman X Discussion Summary: The August 6th 2025 Common Council meeting is called to order. The Emergency Evacuation is read. There are no changes to the agenda. Legislator Pillar reported to Council on County updates on the County's budget process, Code Blue Navigation Hub, Board of Elections, and the Center of Government Timestamp 0:22- 12:36. Quarterly Recognition was awarded to DPW's Water Plant Operations staff, and Acting City Controller Wendy Cole. Timestamp 12:39-16:16 Discussion Summary: The June 4th2025 Common Council Meeting minutes and the June 11th 2025 COW Meeting minutes were approved by Council. Alderperson Saint-Perez pointed out a typo in the voting record in the 6-11 COW Meeting minutes. Council voted unanimously to accept Alderperson's proposed motion for the minutes to reflect the 2.1 6-4-2025 CC Meeting Minutes 2.2 6-11-2025 COW Meeting Minutes 3.Petitions and Hearings of Persons Before Council- 60 Minutes 3.1 Statement From The Public 3.2 Privilege Of The Floor- Comments From Council and The Mayor 4.Consent Agenda -5 Minutes 4.1 Amendment to 2025 Youth Bureau Approved Budget videotape. Timestamp 16:42-18:21 Moved By: Clyde Lederman Seconded By: David Shapiro Motion Summary: Minutes moved and Seconded by Alderperson Lederman, Seconded by Alderperson Shapiro. Alderperson Saint-Perez pointed out a typo in the 6-11-2025 COW minutes. Motion carried 11-0 with minutes approved as amended. Vote Passed 11-0 Carried Unanimously Member Approve Oppose Abstain Robert Cantelmo X Kayla Matos X Phoebe Brown X Ducson Nguyen X Kris Haines-Sharp X David Shapiro X Pierre Saint-Perez X Patrick Kuehl X Tiffany Kumar X Margaret Fabrizio X Clyde Lederman X Discussion Summary: Members of the public addressed the Council to share their concerns and perspectives on issues affecting the City of Ithaca. Timestamp 18:22-1:02:21 Discussion Summary: The Mayor and Council responded to the public, addressing the issues raised. Timestamp 1:02:24-1:24:31 Discussion Summary: Council approved Consent agenda item 4.1, amending 3 Youth Bureau approved budget items. There was no discussion from Council. Timestamp 1:24:33-1:24:39 5.General Order of Business- 30 Minutes 5.1 Audit Presentation- Insero Moved By: Kayla Matos Seconded By: Pierre Saint-Perez Motion Summary: Motion to approve Consent Agenda Items moved by Alderperson Matos, Seconded by Alderperson Saint-Perez. Motion carried unanimously 11-0 Vote Passed 11-0 Carried Unanimously Member Approve Oppose Recuse Robert Cantelmo X Kayla Matos X Phoebe Brown X Ducson Nguyen X Kris Haines-Sharp X David Shapiro X Pierre Saint-Perez X Patrick Kuehl X Tiffany Kumar X Margaret Fabrizio X Clyde Lederman X Discussion Summary: Mayor Cantelmo asked for a 5 minute recess Timestamp 1:24:40- 1:34:08 Moved By: Pierre Saint-Perez Seconded By: Patrick Kuehl Motion Summary: Move for a 5 Minute Recess. Moved Alderperson Saint-Perez, Seconded by Alderperson Kuehl. Motion carries unanimously 11-0. Vote Passed 11-0 Carried Unanimously Member Approve Oppose Abstain Robert Cantelmo X Kayla Matos X Phoebe Brown X Ducson Nguyen X Kris Haines-Sharp X David Shapiro X Pierre Saint-Perez X Patrick Kuehl X Tiffany Kumar X Margaret Fabrizio X Clyde Lederman X 6.Member Filed- 30 Min 6.1 Stewart Avenue Bridge over Fall Creek Rehabilitation Project Discussion Summary: Auditor from accounting firm INSERO Advisors LLC, presented the 2021 annual audit, provided a summary of the findings, and addressed questions from Council. Alderperson Saint-Perez moved and read the resolution to open for discussion. Timestamp 1:34:25-2:09:42 Moved By: Pierre Saint-Perez Seconded By: Kris Haines-Sharp Motion Summary: Motion to approve the 2021 City Single Audit Report, Moved by Alderperson Saint-Perez, Seconded by Alderperson Shapiro. Motion carried unanimously 11-0 Vote Passed 11-0 Carried Unanimously Member Approve Oppose Recuse Robert Cantelmo X Kayla Matos X Phoebe Brown X Ducson Nguyen X Kris Haines-Sharp X David Shapiro X Pierre Saint-Perez X Patrick Kuehl X Tiffany Kumar X Margaret Fabrizio X Clyde Lederman X Discussion Summary: Member filed item 6.1 Stewart Ave Bridge over Fall Creek Rehabilitation Project was moved and summarized by the Mayor with a discussion. John Licitra was present to address questions and comments from Council. Timestamp 2:09:48-2:16:02 Moved By: Robert Cantelmo Seconded By: Kayla Matos Motion Summary: Stewart Avenue Bridge over Fall Creek Rehabilitation Project moved by Mayor Cantelmo, Seconded by Alderperson Matos. All In Favor. Motion carries 11-0 Vote Passed 11-0 Carried Unanimously 6.2 Sub-Lease Authorization to Operate Navigation Hub 7.Mayor Appointments - 10 Min 7.1 Appointment To Community Police Board Member Approve Oppose Recuse Robert Cantelmo X Kayla Matos X Phoebe Brown X Ducson Nguyen X Kris Haines-Sharp X David Shapiro X Pierre Saint-Perez X Patrick Kuehl X Tiffany Kumar X Margaret Fabrizio X Clyde Lederman X Discussion Summary: Sub-Lease Authorization to Operate Navigation Hub moved and summarized by Mayor Cantelmo. No discussion from Council. Timestamp 2:16:08-2:17:23 Moved By: Robert Cantelmo Seconded By: Kayla Matos Motion Summary: Sub-Lease Authorization to Operate Navigation Hub Vote Passed 11-0 Carried Unanimously Member Approve Oppose Recuse Robert Cantelmo X Kayla Matos X Phoebe Brown X Ducson Nguyen X Kris Haines-Sharp X David Shapiro X Pierre Saint-Perez X Patrick Kuehl X Tiffany Kumar X Margaret Fabrizio X Clyde Lederman X Discussion Summary: Aryeal Jackson is appointed to the Community Police Board for a 3 year term ending 12/31/2027. Timestamp 2:17:55-2:18:23 Moved By: Robert Cantelmo Seconded By: 7.2 Appointments to the Ethics Board Motion Summary: Moved that Aryeal Jackson be appointed to the Community Police Board for a 3 Year Term. Moved by the Mayor with no formal second. Motion carries 9-2 with Alderperson's Shapiro and Saint-Perez against. Vote Passed 9-2 Member Approve Oppose Recuse Robert Cantelmo X Kayla Matos X Phoebe Brown X Ducson Nguyen X Kris Haines-Sharp X David Shapiro X Pierre Saint-Perez X Patrick Kuehl X Tiffany Kumar X Margaret Fabrizio X Clyde Lederman X Discussion Summary: Christopher House and Amber Robson are appointed to the Ethics Advisory Board. Alderperson Matos recused themselves as Dr House is a Board member of the South Side Community Center. Timestamp 2:18:25- 2:21:30 Moved By: Robert Cantelmo Seconded By: Motion Summary: Dr Christopher House is appointed to the Ethics Advisory Board for a 4 year term ending 12/31/2028. Moved by the Mayor with no formal second. Motion Carried 10-0 with Alderperson Matos Recused. Vote Passed 10-0 Carried Unanimously Member Approve Oppose Recuse Robert Cantelmo X Kayla Matos X Phoebe Brown X Ducson Nguyen X Kris Haines-Sharp X David Shapiro X Pierre Saint-Perez X Patrick Kuehl X Tiffany Kumar X Margaret Fabrizio X Clyde Lederman X Moved By: Robert Cantelmo 8.Monthly Reports To Council 8.1 City Manager's Monthly Reports 8.2 Controller's Monthly Report- August 2025 9.Executive Session - If needed 10.Meeting Wrap Up- 5 Min Seconded By: Motion Summary: Amber Robson is appointed to the Ethics Advisory Board for a 3 year term ending 12/31/2027. Moved by Mayor Cantelmo with no formal second. Motion carries 11-0 Vote Passed 11-0 Carried Unanimously Member Approve Oppose Recuse Robert Cantelmo X Kayla Matos X Phoebe Brown X Ducson Nguyen X Kris Haines-Sharp X David Shapiro X Pierre Saint-Perez X Patrick Kuehl X Tiffany Kumar X Margaret Fabrizio X Clyde Lederman X Discussion Summary: Will be discussed at 2nd Committee of The Whole Meeting 8/20/2025 Discussion Summary: Meeting Adjourned. Council convening for 2 Advice of Council. Timestamp 2:21:31-2:21:56 Moved By: Kris Haines-Sharp Seconded By: Pierre Saint-Perez Motion Summary: Motion to Adjourn moved by Alderperson Haines-Sharp Seconded by Alderperson Saint-Perez. Meeting at 8:21pm Vote 11-0 Carried Unanimously Member Approve Oppose Abstain Robert Cantelmo X Kayla Matos X Phoebe Brown X Ducson Nguyen X Kris Haines-Sharp X David Shapiro X Pierre Saint-Perez X Patrick Kuehl X Tiffany Kumar X Margaret Fabrizio X Clyde Lederman X Public Comment Forum Shaniqua Lewis, Deputy City Clerk Submitted: August 29th 2025 Adopted: Sept 3rd 205 Date: Time: Location: Watch Online: August 6th 2025 COMMON COUNCIL REGULAR MEETING AGENDA- AMENDED Wednesday August 6, 2025 6:00 PM City Hall Council Chambers https://www.youtube.com/@CityofIthacaPublicMeetings Agenda At A Glance Call to Order- Item 1.1- 1.4 (10 Minutes) The Mayor will call the meeting to order and read the emergency evacuation procedures for members of the public. Following this, the agenda will be reviewed for any changes, additions,or deletions. County Legislators will then present their monthly report to the Mayor and Common Council. Lastly, the Ithaca Fire Department’s D Shift will be recognized and presented with the Quarterly Recognition Award. Review and Approval of Minutes 2.1-2.2 (5 Minutes) Council will vote to adopt the minutes from the previous Council meeting. Petitions and Hearings of Persons Before Council- Item 3.1-3.2 (60 Min) Members of the public will have the opportunity to address the Common Council on topics of concern. Following public comments, Council members may respond or provide clarification as appropriate. Consent Agenda Items- 4.1 (5Min) Procedural items that are considered normal business items have been previously discussed and approved in principle. These are amendments to 3 approved Youth Bureau budget amendments General Order of Business 5.1 (30Min) Common Council will discuss and consider the adoption of the 2021 Financial Report Member Filed Items 6.1- 6.2 (30Min) Common Council will be discussing for consideration funding the rehabilitation of the Stewart Avenue Bridge over Fall Creek. The project is eligible for federal and state aid, with the federal government covering 80% and the City responsible for the remaining share (expected to be no more than 5%). Council will discuss the sublease authorization and operational budget estimate to operate Navigation Hub/ Code Blue Shelter. Mayor Appointments Items 7.1-7.2 (10 Min) Council will consider the Mayor's appointments to the Community Police Board and the Ethics Advisory Board. Executive Session No Schedule Business Date: Time: Location: Watch Online: Wednesday August 6, 2025 6:00 PM City Hall Council Chambers https://www.youtube.com/@CityofIthacaPublicMeetings August 6th 2025 COMMON COUNCIL REGULAR MEETING AGENDA- AMENDED 1.Call to Order- 10 Min 1.1. 1.2. 1.3. 1.4. 2.Review and Approval of Minutes- 5 Minutes 2.1. 2.2. 3.Petitions and Hearings of Persons Before Council- 60 Minutes 3.1. 3.2. 4.Consent Agenda -5 Minutes 4.1. 5.General Order of Business- 30 Minutes 5.1. 6.Member Filed- 30 Min 6.1. 6.2. 7.Mayor Appointments - 10 Min 7.1. 7.2. 8.Monthly Reports To Council 8.1. 8.2. 9.Executive Session - If needed 10.Meeting Wrap Up- 5 Min Emergency Evacuation Agenda Review Reports From Municipal Officials Proclamations and Awards- Quarterly Recognition 6-4-2025 CC Meeting Minutes 6-11-2025 COW Meeting Minutes Statement From The Public Privilege Of The Floor- Comments From Council and The Mayor Amendment to 2025 Youth Bureau Approved Budget Audit Presentation- Insero Stewart Avenue Bridge over Fall Creek Rehabilitation Project Sub-Lease Authorization to Operate Navigation Hub Appointment To Community Police Board Appointments to the Ethics Board The discussion session will take place at the 2nd Committee of the Whole Council Meeting scheduled on August 20th, 2025 - See Attached Reports for information. City Manager's Monthly Reports Controller's Monthly Report- August 2025 1 Public Comment Forum The public can provide short statements during this portion of the meeting. 3 minutes is the maximum time allotted, but the chair reserves the right to modify the amount of time per individual at the start of the meeting. Only the first hour of the meeting is set aside for Public Comment. Groups of 3 or more speakers are allotted more speaking time. For Longer Speaking Time - Multiple speakers on the same topic can speak as a group with one Designated Speaker to represent the Group. This will give you more time to share your thoughts and concerns during the Public Comment Forum. 3-4 Persons with One Designated Speaker - Alotted 5 minutes 5 or More Persons with One Designated Speaker - Alotted 7 minutes Can't Come to the Meeting but still want to speak? Register to Speak Virtually - https://tinyurl.com/7ts9zmku Attending the Meeting to Speak in Person? Pre-Registration Not Required Comment Cards are provided to those who attend in person. Once you have filled out your Comment Card, please hand your card to the Clerk. Your name will be called to speak in the order the cards are received. Please Note Comment Cards will be accepted up until the Public Comment Forum begins or a maximum of 30 speakers, whichever comes first. Once we have reached a maximum of 30 speakers, you can submit your comment using the Written Comment Link Below. Want to Submit a Comment and Not Speak in Person? To Submit Written Comments - https://tinyurl.com/mr9kdhw8 *Written comments submitted with be compiled and entered into the record. CITY OF ITHACA 108 East Green Street, Ithaca, New York 14850-6590 Human Resources Shaniqua Lewis, Deputy City Clerk TO:Common Council FROM:Mayor Robert Cantelmo DATE:August 6, 2025 RE:Proclamations and Awards- Quarterly Recognition ITEM #:1.4 MEMORANDUM Quarterly Recognition honoring Ithaca Fire Department D Shift working 3/27/2025 Brian Weinstein, Lucas Albertsman, Macie Chasman, Jason Lawrence, Tom Pirko, Brian Quadrozzi, Christopher Baker, Ryan Harding, John Foster, Patrick Sullivan, Kevin Whitney, Keven Morse ATTACHMENTS: IFD D Shift - Nomination.pdf 3 QUARTERLY RECOGNITION NOMINATION FORM Candidate for Recognition: Reason for Nomination: Ithaca Fire D shift working 3/27/25 Brian Weinstein, Lucas Albertsman, Macie Chasman, Jason Lawrence, Tom Pirko, Brian Quadrozzi, Christopher Baker, Ryan Harding, John Foster, Patrick Sullivan, Kevin Whitney, Keven Morse Shortly after 5pm on Thursday, March 27 the Ithaca Fire Department was dispatched to a report of "a lot of smoke" in the area of 90 Abbott Lane. Upon arrival IFD units found a significant working fire in a multi family apartment building. The fire was located in a center apartment creating a significant exposure hazard due to the volume of fire. Furthermore, the life safety hazard based on the type of occupancy and construction of the building forced Ithaca firefighters to conduct significant fire attack and search functions simultaneously. The actions taken that evening led to zero firefighter and civilian injuries and also contained the fire to the apartment of origin. Ithaca Firefighters are phenomenal at their jobs! This fire though taxed all available on duty resources to there very limits. Every single firefighter on duty truly performed above and beyond the call of duty. For this reason I nominate the entire on duty shift working that evening as their actions protected countless lives and homes. Submitted By: Jared Gebel, IFD Assistant Chief Created on 7/3/18 4 CITY OF ITHACA 108 East Green Street, Ithaca, New York 14850-6590 Ithaca Youth Bureau Shaniqua Lewis, Deputy City Clerk TO:Common Council FROM:GREGG HOUCK DATE:August 6, 2025 RE:Amendment to 2025 Youth Bureau Approved Budget ITEM #:4.1 MEMORANDUM Consent Agenda Items: 1. Amendment to 2025 Youth Bureau Approved Budget (YES-DYC) 2. Amendment to 2025 Youth Bureau Approved Budget (YES-JYC) 3. Amendment to 2025 Youth Bureau Approved Budget (YES-TSYEP) ATTACHMENTS: Resolution to Amend Youth Bureau 2025 Approved Budget (YES-DYC) - June 2025.pdf IYB Amendment to 2025 Approved Budget - (YES-DYC) Memo - June 2025 (1).pdf Resolution to Amend Youth Bureau 2025 Approved Budget (YES-JYC) - June 2025.pdf IYB Amendment to 2025 Approved Budget - (YES-JYC) Memo - June 2025.pdf Resolution to Amend Youth Bureau 2025 Approved Budget (YES-TSYEP) - June 2025.pdf IYB Amendment to 2025 Approved Budget - (YES-TSYEP) Memo - June 2025.pdf 5 Resolution to Amend the Approved Youth Bureau Budget for the Year 2025 WHEREAS, the Danby Youth Commission has advised that the Youth Bureau’s Youth Employment Service program will receive $10,476 in funding for Danby youth to participate in the Summer Jobs Program; and WHEREAS, the funding will cover wages and fringe for youth employees living in the Town of Danby; and WHEREAS, these funds will allow Youth Employment Service to offer summer employment to additional teens; now, therefore be it RESOLVED THAT, Common Council hereby amends the 2025 Approved Youth Bureau Budget as follows: Increase in revenue anticipated: Account # A 7310-4820-1202 Youth Employment Service $10,476.00 Total: $10,476.00 Increase in projected expenses: Account # A 7310-5120-1202 Part time/Seasonal $9,300.00 YES Fringe Benefits: Participants $9,300 x 12.65% $1,176.00 Total: $10,476.00 6 M E M O R A N D U M Date: June 24, 2025 To: Common Council From: Gregg Houck, Youth Bureau Director Ever Stokes, Youth Employment Service (YES) Program Coordinator RE: Amendment to 2025 Youth Bureau Approved Budget (YES-DYC) EXECUTIVE SUMMARY The Danby Youth Commission has advised that the Youth Bureau’s Youth Employment Service program will receive $10,476 in funding to cover wages and fringe for youth employees living in the Town of Danby. QUESTION FOR COUNCIL We respectfully request Council’s approval to amend the Approved 2025 Youth Bureau Budget as outlined below, contingent upon conﬁrmation of funding. BUDGET IMPLICATIONS & FUNDING Increase in revenue anticipated: Account # A 7310-4820-1202 Youth Employment Service $10,476.00 Total: $10,476.00 Increase in projected expenses: Account # A 7310-5120-1202 Part time/Seasonal $9,300.00 YES Fringe Benefits: Participants $9,300 x 12.65% $1,176.00 Total: $10,476.00 7 Resolution to Amend the Approved Youth Bureau Budget for the Year 2025 WHEREAS, the Joint Youth Commission and the Town of Ithaca have advised that the Youth Bureau’s Youth Employment Service program will receive $79,870 in funding as a provider for the Joint Youth Commission First-Time Work Program; and WHEREAS, the goal of this program is to provide short-term subsidized internships for eligible teens needing assistance in securing employment; now, therefore be it RESOLVED THAT, Common Council hereby amends the 2025 Approved Youth Bureau Budget as follows: Increase in revenue anticipated: Account # A 7310-2350-1202 Youth Employment Service $78,870.00 Account # A 7310-2350-1400 Administration $1,000.00 Total: $79,000.00 Increase in projected expenses: Account # A 7310-5120-1202 Part time/Seasonal $63,251.00 Account # A 7210-5125-1202 Overtime $1,000.00 Account # A 7310-5425-1202 Office Supplies $1,600.00 Account # A 7310-5440-1202 Staff Development $1,000.00 Account # A 7310-5445-1202 Travel & Mileage $1,554.00 Account # A 7310-5460-1202 Program Supplies $2,000.00 Account # A 7310-5435-1400 Contracts $1,000.00 YES Fringe Benefits: Participants $53,695.64 x 12.65% $6,793.00 Other PTS Staff $9,555 x 15.85% $1,514.00 Overtime $1,000 x 15.85% $158.00 Total: $79,870.00 8 M E M O R A N D U M Date: June 24, 2025 To: Common Council From: Gregg Houck, Youth Bureau Director Ever Stokes, Youth Employment Service (YES) Program Coordinator RE: Amendment to 2025 Youth Bureau Approved Budget (YES-JYC) EXECUTIVE SUMMARY The Joint Youth Commission and the Town of Ithaca has advised that the Youth Bureau’s Youth Employment Service program will receive $79,870 in funding as a provider for the Joint Youth Commission First-Time Work Program. QUESTION FOR COUNCIL We respectfully request Council’s approval to amend the Approved 2025 Youth Bureau Budget as outlined below, contingent upon conﬁrmation of funding. BUDGET IMPLICATIONS & FUNDING Increase in revenue anticipated: Account # A 7310-2350-1202 Youth Employment Service $78,870.00 Account # A 7310-2350-1400 Administration $1,000.00 Total: $79,000.00 Increase in projected expenses: Account # A 7310-5120-1202 Part time/Seasonal $63,251.00 Account # A 7210-5125-1202 Overtime $1,000.00 Account # A 7310-5425-1202 Office Supplies $1,600.00 Account # A 7310-5440-1202 Staff Development $1,000.00 Account # A 7310-5445-1202 Travel & Mileage $1,554.00 Account # A 7310-5460-1202 Program Supplies $2,000.00 Account # A 7310-5435-1400 Contracts $1,000.00 YES Fringe Benefits: Participants $53,695.64 x 12.65% $6,793.00 Other PTS (Staff) $9,555 x 15.85% $1,514.00 Overtime $1,000 x 15.85% $158.00 Total: $79,870.00 9 Resolution to Amend the Approved Youth Bureau Budget for the Year 2025 WHEREAS, the Tompkins County Workforce Development Board has advised that the Youth Bureau’s Youth Employment Service program will receive $223,000 in funding as a provider for the Tompkins Summer Youth Employment Program; and WHEREAS, the goal of this program is to provide short-term subsidized summer employment for eligible teens needing assistance; now, therefore be it RESOLVED THAT, Common Council hereby amends the 2025 Approved Youth Bureau Budget as follows: Increase in revenue anticipated: Account # A 7310-4820-1202 Youth Employment Service $219,117.00 Account # A 7310-4820-1400 Administration $3,883.00 Total: $223,000.00 Increase in projected expenses: Account # A 7310-5120-1202 Part time/Seasonal $181,782.00 Account # A 7210-5125-1202 Overtime $3,000.00 Account # A 7310-5425-1202 Office Supplies $3,000.00 Account # A 7310-5440-1202 Staff Development $2,000.00 Account # A 7310-5445-1202 Travel & Mileage $1,000.00 Account # A 7310-5460-1202 Program Supplies $4,000.00 Account # A 7310-5125-1400 Overtime $86.00 Account # A 7310-5425-1400 Office Supplies $3,783.00 YES Fringe Benefits: Participants $154,782 x 12.65% $19,580.00 Other PTS (Staff) $27,000 x 15.85% $4,280.00 Overtime $3,000 x 15.85% $475.00 Admin Fringe Benefits: PTS Staff $86 x 15.85% $14.00 Total: $223,000.00 10 M E M O R A N D U M Date: June 24, 2025 To: Common Council From: Gregg Houck, Youth Bureau Director Ever Stokes, Youth Employment Service (YES) Program Coordinator RE: Amendment to 2025 Youth Bureau Approved Budget (YES-TSYEP) EXECUTIVE SUMMARY The Tompkins County Workforce Development Board has advised that the Youth Bureau’s Youth Employment Service program will receive $223,000 in funding as a provider for the Tompkins Summer Youth Employment Program. QUESTION FOR COUNCIL We respectfully request Council’s approval to amend the Approved 2025 Youth Bureau Budget as outlined below, contingent upon conﬁrmation of funding. BUDGET IMPLICATIONS & FUNDING Increase in revenue anticipated: Account # A 7310-4820-1202 Youth Employment Service $219,117.00 Account # A 7310-4820-1400 Administration $3,883.00 Total: $223,000.00 Increase in projected expenses: Account # A 7310-5120-1202 Part time/Seasonal $181,782.00 Account # A 7210-5125-1202 Overtime $3,000.00 Account # A 7310-5425-1202 Office Supplies $3,000.00 Account # A 7310-5440-1202 Staff Development $2,000.00 Account # A 7310-5445-1202 Travel & Mileage $1,000.00 Account # A 7310-5460-1202 Program Supplies $4,000.00 Account # A 7310-5125-1400 Overtime $86.00 Account # A 7310-5425-1400 Office Supplies $3,783.00 YES Fringe Benefits: Participants $154,782 x 12.65% $19,580.00 Other PTS (Staff) $27,000 x 15.85% $4,280.00 Overtime $3,000 x 15.85% $475.00 Admin Fringe Benefits: PTS Staff $86 x 15.85% $14.00 Total: $223,000.00 11 CITY OF ITHACA 108 East Green Street, Ithaca, New York 14850-6590 City Manager's Office Shaniqua Lewis, TO:Common Council FROM:City Manager, Deb Mohlenhoff DATE:August 6, 2025 RE:Audit Presentation- Insero ITEM #:5.1 MEMORANDUM City of Ithaca Financial Report for the year ended December 31, 2021. ATTACHMENTS: 2021 Audit Approval - RESOLUTION (1).pdf INSERO FINANCIAL REPORT001.pdf INSERO COMM LETTER001.pdf INSERO MGT COMM LETTER001.pdf 12 Approval of 2021 City Single Audit – Resolution RESOLVED, That the Independent Auditor’s Report for the period January 1, 2021, through December 31, 2021, prepared by the accounting ﬁrm of Insero Advisors, LLC, be accepted to comply with all the City’s applicable Governmental Accounting Standards Board (GASB) Statement 34 and other related audit and single-audit requirements. 13 CITY OF ITHACA Ithaca, New York FINANCIAL REPORT For the Year Ended December 31,2021 lnsero&co ( i'nititrl Plrbli( ,\(r'( )lu ttar ) ts 14 CITY OF ITHACA TABLE OF CONTENTS Required Supplementary lnformation Management's Discussion and Analysis Basic Financial Statements Governmen!Wide Financial Statements Statement of Net Position Statement of Activities Governmental Fund Financial Statements Balance Sheet - Govemmental Funds Reconciliation of Govemmental Funds Balance Sheet to the Statement of Net Position Statement ofRevenues, Expenditures, and Changes in Fund Balances - Govemmental Funds Reconciliation of Govemmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances to the Statement of Activities Statement of Fiduciary Net Position Statement of Changes in Fiduciary Net Position Notes to Financial Statements t-4 5-5k 6-7 8 9 t2 13 t4 l0 ll l5-53 Required Supplementary lnformation Budgetary Comparison Schedule (Non-U.S. GAAP) - General Fund Schedule of Changes in the City's Total OPEB Liability and Related Parties Schedule of City Contributions - NYSLRS Pension Plans Schedule of City's Proportionate Share ofthe Net Pension (Asset)iliability Notes to Required Supplementary Information Independent Auditors' Report 54 55 56 57 58 15 CITY OF ITHACA TABLE OF CONTENTS Supplementary Information Combining Balance Sheet - Non-Major Covemmental Funds Combining Statement of Revenues, Expenditures, and Changes in Fund Balances - Non-Major Govemmental Funds Reports Required Under Government Auditing Standards Independent Auditors' Report on Intemal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance W ith Government Aud it ing Standards Reports Required Under the Single Audit Act lndependent Auditors' Report on Compliance for Each Major Program and on lntemal Control Over Compliance Required by Uniform Guidance Schedule of Expenditures ofFederal Awards Notes to Schedule of Expenditures of Federal Awards Schedule of Findings and Questioned Costs 59 60 6t-62 63-66 67 68 69-'?2 16 lnsero&co Certifi ed Puhlic Accountans Common Council City of Ithaca Ithaca, New York Report on the Audit of the Financial Statements Opinions We have audited the financial statements of the governmental activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of the City oflthaca (the City), as ofand for the year ended December 31, 2021, and the related notes to the financial statements, which collectively comprise the City's basic financial statements as listed in the table of contents. Emphasis of a Matter During the year ended December 3 l, 2021 the City reclassified certain items that had previously been accounted for in the Custodial Fund. Note l9 to the financial statements describes the restated items. Our opinion is not modified with respect to this matter. Basis for Opinions We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States (Government Auditing Standards). Our responsibilities under those standards are further described in the Auditors' Responsibilities for the Audit ofthe Financial Statements section ofour report. We are required to be independent ofthe City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of intemal control relevant to the preparation and fair presentation offinancial statements that are free from material misstatement, whether due to fraud or eITOr. hseno & Co. CPAs, LLP lhr HiEhe'( S'anddid l(R00' lll-q51" 1""\^ in'cr.cpr conr INDEPENDENT AUDITORS' REPORT In our opinion, the accompanying financial statements referred to above present fairly, in all material respects, the respective financial position of the govemmental activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of the City, as of December 3 I , 2021, and the respective changes in financia! position for the year then ended in accordance with accounting principles generally accepted in the United States of America. 17 In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City's ability to continue as a going concem for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter. Auditors' Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors' report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. The risk ofnot detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of intemal control. Misstatements are considered material ifthere is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. In performing an audit in accordance with GAAS and Government Auditing Standards, we Exercise professional judgment and maintain professional skepticism throughout the audit a a a Identily and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Obtain an understanding of intemal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control. Accordingly, no such opinion is expressed. Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City's ability to continue as a going concem for a reasonable period of time. We are required to communicate with those charged with govemance regarding, among other matters, the planned scope and timing of the audit, signifrcant audit findings, and certain intemal control- related matters that we identified during the audit. 2 18 Required Supplementary Information Accounting principles generally accepted in the United States of America require that the Management's Discussion and Analysis; Budgetary Comparison Schedules; Schedule ofChanges in the City's Total OPEB Liability and Related Parties; Schedule of the City's Contributions - NYSLRS Pension Plans; Schedule of the City's Proportionate Share of Net Pension (Asset)/Liability; and the Notes to Required Supplementary Information be presented to supplement the basic financial statements. Such information is the responsibility ofmanagement and, although not a part ofthe basic financial statements, is required by the Govemmental Accounting Standards Board who considers it to be an essential part offinancial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with GAAS, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Supplementary Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City's basic financial statements. The Combining Balance Sheet - Non- Major Govemmental Funds; Combining Statement of Revenues, Expenditures, and Changes in Fund Balances - Non-Major Govemmental Funds; and Schedule of Expenditures of Federal Awards, as required by Title 2 U.S. Code of Federal Regulalions Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Reqttirements ./br Federal Awards are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit ofthe basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with GAAS. In our opinion, the Combining Balance Sheet - Non-Major Governmental Funds; Combining Statement of Revenues, Expenditures, and Changes in Fund Balances - Non-Major Govemmental Funds; and Schedule of Expenditures of Federal Awards are fairly stated, in all material respects, in relation to the basic financial statements as a whole. -t 19 Other Reporting Required by Government Auditing Standards ln accordance with Government Auditing Standards, we have also issued our report dated June 25, 2O25, on our consideration ofthe City's intemal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose ofthat report is solely to describe the scope ofour testing of intemal control over financial reporting and compliance and the results ofthat testing, and not to provide an opinion on the effectiveness of the City's intemal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Governmenl Auditing Standards in considering City's intemal control over financial reporting and compliance. Respectfully submitted, -C5""- ( G,A\LU? Insero & Co. CPAs, LLP Certifi ed Public Accountants Ithaca, New York Iune 25,2025 1 20 CITY OF ITHACA MANAGEMENT'S DISCUSSION AND ANALYSIS DECEMBER 31,2021 Our discussion and analysis ofthe City oflthaca's (the City) financial performance provides an overview of the City's financial activities for the fiscal year ended December 31,2021. Please read it in conjunction with the City's financial statements, which begin on page 5. FINANCIAL HIGHLIGHTS The City's expenses were $3,299,930 greater than the $92,202,969 generated in tax and other revenues for all govemmental program activities. The City invested $14,866,348 in capital assets during the year. This investment included $833,419 in buildings and improvements, $1,609,893 in machinery and equipment, as well as $12,423,036 for infrastructure. a a The General Fund recorded an operating increase of $5,997 ,591 in 2021 and a decrease of $69,435 in 2020. The General Fund had a fund balance of $ I 6,545,540 at year end. USING THIS ANNUAL REPORT This amual report consists of a series of basic financial statements. The Statement of Net Position and Statement of Activities (pages 5-6) provide information about the City as a whole and present a longer- term view of the City's finances. Govemmental Fund financial statements start on page 7. These statements, for Govemmental Activities, tell how services were financed in the short+erm, as well as what remains for future spending. Govemmental Fund financial statements also report the City's operations in more detail than the Govemment-wide financial statements by providing information about the City's most significant funds. The remaining statements provide financial information about activities for which the City acts solely as a trustee or agent for the benefit of those outside the govemment. Following these statements are notes that provide additional information essential to a full understanding ofthe data provided in the financial statements. 5 . Assets ofthe City plus deferred outflows ofresources were less than liabilities and deferred inflows ofresources at the close ofthe most recent fiscal year by $65,600,205 (net deficit). Unrestricted net position showed a deficit of $173,799,494. This deficit is due to the net liability for other postemployment benefits of $214,191 ,466. o The City complies with Govemmental Accounting Standards Board (GASB) Statement No. 68, as amended. As a result, the City reported a net pension (asset)/liability of $8,719,924. o Outstanding debt was $ 120,571,768 at year end, a decrease of $2,424,513. 21 CITY OF ITHACA MANAGEMENT'S DISCUSSION AND ANALYSIS DECEMBER 3I,2O2I In addition to basic financial statements, the annual report contains other information in the form of budgetary comparison schedules for the General Fund and Budgeted Major Special Revenue Funds, as well as combining statements for funds that are not considered Major Funds and, therefore, are not presented individually in the basic financial statements. Other information consists of the Schedule of Changes in the City's Total Other Postemployment Benefits (OPEB) Liability (related to the City's liability for retiree health), which is reported as other post-employment benefits, and schedules related to the City's proportionate share of retirement systems' liabilities. Reporting the City as a Whole Our analysis of the City as a whole begins on page 5, with the Govemment-wide financial statements. The Statement of Net Position and Statement of Activities report information about the City and about its activities in a way that helps answer the question of whether the City, as a whole, is better or worse off as a result of the year's activities. These statements include a// assets, liabilities, and deferred outflows and inflows of resources using the accrual basis of accounting, which is similar to the accounting used by most private-sector companies. All current year revenues and expenses are taken into account regardless of when the cash is received or paid. These two statements report the City's net position and changes in it. One can think of the City's net position, the difference between assets and liabilities, as one way to measure the City's financial health, or financial position. Over time, increases or decreases in the City's net position is one indicator of whether its financial health is improving or deteriorating. One will need to consider other nonfinancial factors however, such as changes in the City's property tax base and the condition of the City's infrastructure, to assess the overall health ofthe City. In the Statement of Net Position and Statement of Activities, all of the City's activities which are govemmental in nature are reported in one column including general govemmental support, public safety, transportation, economic assistance and opportunity, culture and recreation, home and community services, and interest on long-term debt. Property and sales taxes, and state and federal grants finance most ofthese activities. Reporting the Cif"v's Most Significant Funds Governmental Fund Financial Statements Analysis of the City's Major Funds begins on page 7. The Govemmental Fund financial statements provide detailed information about the most significant funds not on the City as a whole. Some funds are required to be established by New York State law. However, management establishes many other funds to help it control and manage money for particular purposes or to show it is meeting legal responsibilities for using cartain taxes and grants. 5a 22 CITY OF ITHACA MANAGEMENT'S DISCUSSION AND ANALYSIS DECEMBER 3I,2021 Governmental Funds: All of the City's services are reported in the Govemmental Funds, which focus on how money flows in and out of those funds, and the balances left at year end that are available for spending. These {irnds are reported using an accounting method called modified accrual accounting which measures cash and all other financial assets that can be readily converted to cash. The Govemmental Fund financial statements provide a detailed short-term view ofthe City's general govemmental operations and the basic services it provides. Govemmental Fund information helps determine whether there are more or fewer financial resources that can be spent in the near future to finance City programs. The relationship (or differences) between Govemmental Activities (reported in the Govemment-wide financial statements) and Govemmental Funds is explained in a reconciliation following the Govemmental Fund financial statements. The City as Trustee: The City is the trustee, or fiduciary, for other assets held on behalfofothers. All of the City's Fiduciary Activities are reported in a separate Statement of Fiduciary Net Position - Fiduciary Fund on page I L We exclude these activities from the City's other financial statements because the City cannot use these assets to finance its operations. The City is responsible for ensuring the assets reported in this fund are used for their intended purposes. Component Units: The City includes two separate legal entities in its report, the Ithaca Area Waste Water Treatment Facility (IAWWTF) and the lthaca Urban Renewal Agency (I[IRA). The IAWWTF is a discretely presented component unit and is reported in the Statement of Net Position and the Statement of Activities. The IURA is reported as a blended component unit as the Special Grant Fund. Although legally separate, these "component units" are important because the City is financially accountable for them. Complete financial statements for the IAWWTF and IURA can be obtained by contacting them at 108 East Green Street, Ithaca, NY 14850. a a THE CITY AS A WHOLE A portion of the City's net position reflects its investment in capital assets (such as land, buildings, machinery, equipment, and infrastructure) less any related debt used to acquire those assets that is still outstanding. The City uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the City's investment in capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided by other sources, as the capital assets themselves cannot be used to liquidate these liabilities. An additional portion of the City's net position represents resources subject to extemal restrictions on how they may be used and are reported as restricted. The remaining category of total resources is unrestricted. Included in unrestricted net position is the City's equity interest in two joint ventures totaling $13,917,805. 5b 23 I ffi CITY OF ITIIACA MANAGEMENT'S DISCUSSION AND ANALYSIS DECEMBER 31, 2O2I Our analysis below focuses on the net position (Figure.l) and changes in net position (Figure 2) of the City's Govemmental Activities. Figure I Current assets consist of $48,703,472 in unrestricted cash, $12,018,980 of cash restricted for various purposes, receivables of$13,623,967, and other miscellaneous items. Noncurrent assets consist ofcash restricted for future noncurrent expenses of $5,976,023, long-term portion of loans receivable of $6,097,332,andthe City's equity interest in joint ventures of $ 13,917,805. The increase in current assets is primarily due to timing ofreceivables and payables, less cash used for capital projects. Capital assets, net of accumulated depreciation, increased slightly as a result ofthe City's investment in buildings and infrasmrcrure exceeding depreciation expense. The fluctuations in deferred outflows and deferred inflows of resources related to pensions and OPEB are due to the net difference between projected and actual investment eamings on pension plan investments and changes in assumptions. Current Assets Noncurrent Assels Capital Assels, Net $ 78,687,598 25,991,r60 194,201,249 $ 64,s73,358 25,406,683 t91,83'7 ,439 $ 14,114,240 s84,477 2,363,810 Curyent Liabilities Noncurrenl Liab ilit ies 41,722,015 351,756,250 37,982,702 338,979,197 3,739,313 t2,777,053 Net Investment in Capital Assets Restricted Unrestricted 85,772,'.|42 22,426,547 (173,799,,494) 85,090,329 16,609,104 (163,999,708) 682,413 5,817 ,443 (9,799,786\ 5c Net Position G ovem mcntal A ct ivit i es and Total Government 2021 2020 Dn nr rLd,a. Total Assels 281.8r7.C80 t7 Total Liabilities 16.516.366 2s.63s,022 25.123.039 Net $$$ (3,299.930) 24 CITY OF ITHACA MANAGEMENT'S DISCUSSION AND ANALYSIS DECEMBER 3I,2O2I Included in current liabilities are bond anticipation notes (BANs) payable of$15,787,783, the current portion of long{erm liabilities of $7,164.064, and various payables of$18,770,168. Current liabilities increased largely because uneamed ARPA revenues are recorded as uneamed revenue, which is somewhat offset by Iower BAN balances. Noncurrent liabilities consist of bonds payable of 597,550,234, compensated absences of $3,180,512, other postemployment benefits payable of $245,7 68,936, pension [iabilities of$5,066,959, and lease obligations of$189,609. Noncurrent liabilities increased based on the increase in OPEB liabilities and the issuance of new serial bonds, offset somewhat by reductions in pension liabilities. Net investment in capital assets increased due to the change in capital-related debt and the use of proceeds of that debt exceeding the change in capital assets. Restricted net position consists of $3,681,588 for debt service, $8,103,362 for home and community service programs, $10,619,2,14 for future capital projects, and $22,353 for cultural and recreational programs. Figure 2 demonsfates the operations ofthe City's activities. Figure 2 REVENUES Program Revenues: Charges for Sertrices Operat ing Grant s and Cont ribut ions Capital Grants and Contributions General Revenues: Property Toxes and Tax hems Nonproperty Taxes State Sources Use of Money and Property Change in Equity lnterest in Joinl Venture Aher $ 26,127,959 3,027,64s 7,57 4,108 28,590,142 17,487,8s0 3,777,154 s04,063 1,160,449 3,743,982 $ 24.231,314 ) 70i {oA 6,569,07 4 26,374,594 13,s90,512 3,270,076 283,177 743,308 2,44s,600 $ 1,890,645 232,049 1,005,034 2,215,548 3,897,338 s07,078 220,886 4t7,141 1,300,382 I1,162,889 28,709,150 13,s48,328 725,,814 r 3,820,431 24,291,347 $ 3 37 23 $ 10,537,691 30,597,565 t1,691,494 6 r,000 8,443,774 19,923,181 3,623,868 $ 625,198 (1,888,41s 1,856,834 664,814 s,376,657 4,368,166 5 86,545 PROGRAM EXPENSES G enera I G ov emment a I Support Public Sakty Transportation Econom ic Ass ist ance and Opportun ity Culture and Recreation Home and Community Services lnterest on Debt 22S s 1,269,39299,930sIN NET POSITIONCREA.sEE 5d Changes in Net Posilion Govemmental Aaivities and Total Govemment 2021 2020 Total Revenues $ 91.995.3s2 $$ 11.686.101 Total Exoenses s 9s,29s,282 $ 84,878573 $ 25 CITY OF ITHACA MANAGEMENT'S DISCUSSION AN D ANALYSIS DECEMBER 31,2021 Governmental Activities Charges for services showed an increase due to increased charges for water and sewer services and permits for street opening. Capital grants and contributions increased due to the application ofCHIPS, PAVE-NY, and EWR funding. Property tax and tax items increased 8.47o compared to an increase of3 .7%o in 2020. Nonproperty taxes increased 28.7o/o as the economy began its recovery from the COVID-19 pandemic. The increase in state sources is due to a rebound year in the housing market which led to an increase in mortgage tax revenue. The change in the City's equity interest injoint ventures is dependent on those entities' yearly operating results. See Note l4 for more information about the City's joint ventures. General Govemmental Support increased over the prior year due to increased costs associated with building systems, insurance, and judgements and claims. Transportation expenses were up because of increased spending on the maintenance of roads and bridges. Culture and Recreation expenses and Home and Community Services were up due to more maintenance in those functions. Interest on debt decreased over the prior year due to the timing ofdebt issuances. Total cost and revenue comparison of the Govemmental Activities for each of the City's largest programs is presented above. Note that the City's home and community service activities, which provide water and sewer services, include debt service costs in their fee strucfures. Because debt service costs are not expenses of this function, excess revenue generated by these activities is used to make debt principal and interest payments. 5e The cost of all Govemmental Activities in 2021 in the Statement of Activities was $95,295,282. However, as shown in the Statement of Activities, the amount ultimately financed for these activities through City property and payments in lieu oftaxes was $58,357,953, because some ofthe cost was paid by those who directly benefited from the programs ($26,335,576) or by other govemments and organizations that subsidized certain programs with grants and contributions ($10,601,753). Overatl, City govemmental program revenues, including fees for services and grants, were $36,937,329. The City paid for the remaining "public benefit" portion of Govemmental Activities with $55,265,640 in taxes and other revenues, such as interest and general entitlements. 26 CITY OF ITHACA MANAGEMENT'S DISCUSSION AND ANALYSIS DECEMBER 3I,2O2I THE CITY'S FUNDS As the City completed the year, its Govemmental Funds, as presented in the balance sheets on page 9, reported a combined fund balance of 260/o more than last year's total, primarily as a result of the conversion of shortterm debt to long-term debt in the Capital Fund. Figure 3 shows changes in fund balance for the year for the Ciry's funds Figure 3 Governmental Funds Fund Balance at Year Ending December 31, General Fund Budgetary Highlights Over the course of the year, the Common Council as well as the management of the City revised the City General Fund budget several times. These budget amendments consist of transfers between functions, encumbrances from the prior fiscal year, and acceptance of gmnt awards. Revenue available for appropriation was greater than the final budgeted amount by $2,280,68 I . The actual charges to appropriations (expenditures) were below the final budget amounts by $4,280,930. General Fund Special Grant Fund Capital Projects Fund Non-Maj or Funds: Water Fund Sewer Fund Refuse and Garbage Fund Urban Renewal Agency Fund Mtsc. Special Revenue Fund Sidewalk Improvement Distrbt Fund Sto rmwat er Drainage Fund Debt Sertt ice Fund Permanent Fund $ 16,545,540 1,705,785 17,058,81I 4,906,320 4,861,415 (s04,9ss) 125.000 22,353 1,269,199 833,208 3,681,588 52,045 $ 10,s47,949 |,787 ,17 4 1,935,4t2 4,728,483 6,481,995 (403,294\ 125,000 2s,337 518,280 499,719 3,687,440 48,992 $ 5,997,591 (81,3 89) 5 111 1qq ( l0l,66l ) (2,984\ 750,919 333,489 (s,852) 3,053 ( 1,620,5 177,837 80 ) 5f Governmental Fund Balances Total Govemmenl Ilnllot lhanot 2021 2020 lTonls $ 50,556,309 $ 39,982,487 $ r0,573,822 27 -11CITY OF ITHACA MANAGEMENT'S DISCUSSION AND ANALYSIS DECEMBER 31,202I CAPITAL ASSET AIID DEBT ADMINISTRATION Capital Assets At December 3 l, 2021, the City had $379,778,441, net of accumulated depreciation of $ 185,577,192, invested in a broad range of capital assets, including buildings, machinery and equipment, roads and bridges. This amount represents a net increase (including additions of$14,866,348 and depreciation expense of $ I | ,314,782) over 2020. Figure 4 Capital Assas, Nel of Deprecialion Debt Administration Debt (bonds, BANs, and lease obligations payable), considered a liability of Govemmental Activities, decreased over the prior year, as shown in Frgare 5. Of the amount of bonds, BANs, and capital leases outstanding, $83,474,507 is subject to the constitutional debt limit and represented 59% of the City's statutory debt limit. The City's bond rating was assigned an Aa2 by Moody's. More detailed information about the City's liabilities is presented in Notes 9 and 10 to the financial statements. Figure 5 Outstanding Debl at Year Ended $ r2,058,257 49,489,397 9,107,645 121,182,140 S (3,266,691) (98,281) 5,728,782 Land Buildings and Improvements Equipmut Infras t ructure $ 12,058,257 46,222,,706 9,009,364 126,910,922 BANs Serial Bonds Lease Obligation Pavable $ 15,787,783 104,287,609 496,376 $ 23,089,539 99,113,200 793,542 $ (7,301,7s6) 5,174,409 (297,t66) G ovemtaental Adivitia and Total Govennrunt 2021 2020 Dollar Change Totals s 194,201,249 $.439 $ Governmcntal Aciivit i es and Tolal Governmcnt Dollar Change 2021 2020 $120,571,768 $ 122,996,281 $ Q,424,s13\ 28 CITY OF ITIIACA MANAGEMENT'S DISCUSSION AND ANALYSIS DECENIBER 3I, 2021 ECONOMIC FACTORS AND NEXT YEAR'S BUDGETS AND RATES The City considered many factors when developing and adopting the budget for fiscal year ending December 31, 2022. Two of these factors were state and local economies. The unemplol.rnent rate in Tompkins County continues to be the lowest in the state. However, the City and State are expecting a difficult and uncertain economic environment for the next few years mostly related to Covid impacts. In addition, New York State retirement costs continue to be high, although lower rates are forecast for the short-term. Higher health care costs, a high debt load and related debt service costs, higher labor costs, uncertain sales tax collections, heavy infrastn:cture needs, and level state aid payments are all factors that will strain future budgets. Projects inside the City slated for development continue to be active, which continues to be a positive sign for the fun-rre. While it will take time to complete these projects, future development and related property taxes for the City look strong in the near term. The following is a summary of currently known facts, decisions, or conditions expected to have a significant effect on the City's financia[ position: Sales Tax: We continue to see strong commercial development even with the lingering impacts from the pandemic. COVID-19 did negatively impact our 2021 sales tax revenues. However, sales tax collections rebounded better than anticipated in 2021 . Our original bu dgetfor 2021was $13,843,000. Our 2021 estimate for sales tax collections was $15,748,000. The increase of $1,905,000 is most likely related to post COVID- 19 impacts on our local economy. Consumers had greater availability to stimulus funding. In addition, prices for goods started to climb at the end of 2021 . ln our 2022 budget for sales tax, we estimated to collect $14,932,000 ln 2022, we had estimated sales tax collections of $ I 7,856,000. ln our 2023 budget, we estimated sales tax collection in the amount of $ I 7,I 08,600. We budgeted more conservatively in this area due to the many uncertainties facing the economy, including inflation, supply chain and staffing issues. We are hopeful that the increasing activity ofdevelopment inside the City will outpace the uncertainry ofthe economy and be reflective in a continued higher sales tax collection trend. a a Taxable Assessments/Tax Rates: Based on the continued increase in development in the City and an active housing market, we expect to see increasing assessments over the next few years. 2023 taxable assessments will increase by 6.1%, and 2023 taxable assessments are expected to increase by 8.92%. Assessments are slowly shifting from residential to commercial. Our tax rate for 2022 increased to $11.89 per $1,000 assessed value. The 2023 tax rate increased to $ I 1.98 per $1,000 assessed value. Building Permits: In 2022, we budgeted $2,070,000 in building permit revenue. We collected $1,806,254 in building permits during 2022. Ov 2023 budget for building permits is $1,320,000. Development is strong in the Collegetown area and is picking up in the inlet area of the City. In addition, Comell University is becoming active with projects again. This is a difficult revenue to budget as it is dependent on projects outside the City's control. We anticipate building permit revenue to continue to be active through 2024 and then we do expect this revenue source to slow down within three to five yean. COVID has impacted the development activity in the City with delaying some projects and increasing overall project costs for other projects. 5h 29 a a CITY OF ITHACA MANAGEMENT'S DISCUSSION AND ANALYSIS DECEMBER 3I,2O2I Comell Universrty Contribution: The City and Cornell University signed an amended memorandum of understanding in November 2003 related to Cornell University's annual contribution to the City. The current memorandum runs through 2023-2024. Cornell University contributions are now adjusted by the Consumer Price Index (CPI), which will significantly increase this amual revenue. The total 2022 contribution increased by 4.7% due to a positive and increasing CPl. The 2022 contribution was $ 1,486,042. 60% of the contribution is allocated to fire services to help offset the fire department's operational costs. Our 2023 estimate reflects a 670 increase in the contribution. This reflects the increasing CPI. Employee Pension Rates: Our 2022 employee retirement pension actual amount is $5,455,750, which is fully budgeted. This represents an approximate $ I 86,589 increase from 2021 contribution levels. New York pension rates are expected to remain high for the next few years. Overall, the City expects current stafling levels to remain steady in the near future with increasing labor costs. In addition, the City expects a fair$ significant staff tumover in the next five years due to an aging workforce. Health Insurance Costs: Health Insurance costs continue to increase. The estimated premium cost for health insurance is expected to increase 63% in 2023 but will be partially offset by employee contributions. Our premium rates increased 502 in 2022. 2022health insurance premium claim costs will exceed $15 million prior to employee contributions. We continue to participate in a health insurance consortium which has, and will, stabilize our premium rates for the future. We continue to look at various opportunities to make changes to our current health plan in hopes of realizing further cost savings and cost control measures. Our participation in the consortium has saved the City significant premium cost since its establishment in 201 1. The Affordable Care Act has increased our health costs and will continue to impact costs moving forward. Due to strong financial performance, the consortium was able to give a premium holiday for December 2020. As a result, the consortium did not bill premium for December 2020 and total premium claim costs totaled under $13 million for 2020. Both the City and the employees benefited from the holiday. We do expect health insurance costs to continue to increase as we look ahead beyond 2023. State Revenue Aid and Incentives for Municipalities (AIM): New York State cut the City's annual state general revenue aid in the early 1990s by over $1 million. Since that time the City has struggled to recover financially. Aid payment to the City remained fairly constant until 2005 when general revenue aid started increasing. Although the State promised increased aid to municipalities for several more years, the weaker economy has made it impossible for the state to keep that promise. State aid began decreasing in 2009 and is expected to remain flat over the next few years. 1n2020, due to COVID- 19 impacts, the state originally withheld 20o/o from our expected amount of $2,610,000 for the City. However, in the end the state did allocate the full 20% to the City. The state again proposed a 20% withholding ofstate aid for 2021, but did fully fund our aid at $2,610,000. In 2022, we budgeted for the full $2,610,000 state aid payment from the state and received our full amount. In 2023, we budgeted $2,610,000 for State AIM payments. Ifyou consider inflation over time, our aid payment should be approximately $5,700,000 in 2022. We believe the State needs to adjust the aid formula to account for tax exempt property and inflation. 5l 30 a a CITY OF ITHACA MANAGEMENT'S DISCUSSION AND ANALYSIS DECEMBER 3I, 2021 Debt Service Costs: The debt load for the City continues to be high. Our outstanding debt, including installment debt, at December 31,2O22 will be $139,917,423. Recent large projects include the Water Treatment Plant rebuild, completed in 2018, the Commons Pedestrian Mall Improvement Project, and various upgrades to the Wastewater Treatment Facility. We have leveraged large amount of state and federal aid for many of the Ciry's more recent projects, including the Commons, Wastewater, and various Bridge and Street Projects. This aid has helped keep the City's overall project cost as low as possible. Larger capital projects facing the City in the next few years include upgrades to many ofthe City's buildings; including parking garage structures and city infrastructure. We continue to work on reducing our overall debt load. However, with many infrastructure improvements necessary in the City and the on-going need to limit tax rate and tax lely growth, reducing debt will be a challenge. Cayuga Parking Garage: Under a complex agreement, the City is obligated to pay the deficit of operations related to the Cayuga Street Parking Garage. The Project had a total construction cost of $19 million. The outstanding bonds for the garage at December 31,2021witl be $9,385,000. The bonds will mature in 2O3O. The 2021 annual appropriation for the garage is $ I ,050,000. This is the same amount pai d, in 2020 . Tax Exempt Property: The City has an exceptionally high exempt property rate, primarily related to Comell University. Since 1991, the tax-exempt rate in the City has ranged from 56%o to 72o/o. For 2021, the percentage of tax-exempt property inside the City is 59.51%. Tbe 2022 tax exempt rate will be approximately 59Yo. As a result of the high rate, the remaining tax base must pick up a majority of the overall City operating costs. The City continues to discuss this issue with both Comell Universiry and New York State to find some mitigation to the problem. However, this ongoing issue leaves the City with a higher tax rate. Economy: The national, state and local economies will continue to have various impacts on the City's financial status moving forward. With continued uncertain times, both positive and negative impacts can be expected. The local economy is cunently a bit stronger than it has been in recent years. We are working hard to develop a sustainable financial plan for the City that witl allow us to maintain a solid financial base during future uncertain economic times. The COVID-19 impacts have been sigrrificant to our revenue sources such as sales tax and parking revenue and now are impacting our expenses with higher pricing, supply chain issues and various staffing issues. We expect COVID- 19 impact to linger on the local economy for a few years. Labor Units: The City has six total labor units; CSEA Administrative, CSEA DPW, Ithaca Paid Firefighters Association (IPFFA), IFD Chief Officers Unit (COU), Police Benevolent Association (PBA), and lhe Executive Association. In 2021, we have current agreements in place with CSEA Admin and the Executive Association. At the end of 2021, the City and PBA came to a binding arbitration contract award for the years 2014 - 2023. Retroactive payments for the PBA contract will take place in 2022. During 2021 and 2022, we are still in negotiations with the CSEA DPW Unit, IPFFA, COU and Executive Association. Labor costs will have a significant impact on future City expenses. a sj 31 a a a CITY OF ITHACA MANAGEMENT'S DISCUSSION AND ANALYSIS DECEMBER 3I,2O2I Property Tax Cap: New York State has imposed a property tax cap on all of the State's municipalities. The tax cap limits the total tax levy set by local govemments. The cap is the lesser of 2Yo or the current rate of inflation. The 2022 properry cap for the City will be in the range of 9.5%, which is higher than the 2020 cap. This property tax cap puts a limit on the City's largest revenue source, property taxes. The cap can be exceeded by an override approval by 60% ofthe goveming body. American Rescue Plan Act (ARPA): The Act was signed into law on March [ 1,2021 and provides funds to municipalities for Coronavirus fiscal recovery. The City is considered an Entitlement City under the Act and will receive $16,092,137 in funds under the Act. The funds are restrictive in nature and must be fully expended by December 3l,2026. The City will receive the funds in two payments of equal value, one in May 202 I and the other one tnMay of 2022. As the funding is one- time funding, the City will carefully expend the funds over the next few years with long-term investments in mind. Room Tax: The City established a new Hotel Room Occupancy Tax Law in earlier 2021 to support the new Conference Center located at the westem part of the old Green Street Parking Garage. The Conference Center, which is part ofthe Asteri Ithaca Project, will begin construction in 2022 andbe completed in 2024. The new 570 Room Tax is for lodging properties located in the City of Ithaca and collection of the tax will begin April l, 2021. Room tax revenue is expected to bring in approximately $ I ,230 ,000 in 2022 . Asteri Ithaca Project: As part of a revitalization of Ithaca's downtown area, the Vecino Group is the developer ofthe new parking garage, conference center and affordable housing project to be located at the former site of the Green Street Parking Garage. The development will include a 55,000 square foot Conference Center, 18l units of affordable housing and 350 of public parking spaces. The financing agreement for the parking, cost $14,965,000, will be a similar agreement to the Cayuga Parking Garage agreement except that the City will operate and maintain the garage. An annual appropriation will be needed to support the garage operations. The Conference Center, cost $34,505,000, will be supported by the City's 5%o room tax and backed by the City. CONTACTING THE CITY'S FINANCIAL MANAGEMENT This financial report is designed to provide our citizens, taxpayers, customers, and investors and creditors with a general overview of the City's finances and to show the City's accountability for the money it receives. If you have questions about the report or need any additional financial information, contact Wendy Cole, Deputy City Controller, First Floor, City Hall, 108 East Green Street, lthaca, New York 148s0. 5k 32 CITY OF ITHACA STATEMENT OF NET POSITION DECEMBER 3I. 2021 Component Unit Gove rnme ntal Activities Ithaca Are a Wastewater Treatment Facilitv ASSETS Currrnt Assets Cash and Cash Equiwlents Resficted Cash and Cash Equivalents I nvestrrEnts Taxes Receiable. Net Due From State and Federal Govemnrnts Due From Other GovernrrEnts Other Receiables, Net loans Rece able, Short-Term Portkrn Inventory Prepafr Expenses Total Current Assets Noncurr€nt Assets Restricted Cash and Cash Equivalents loans Receivable, l-ong-Term Portion Equity Interest in Joint Venfires Capital Assets: I-and and Corstruction in Progress Depreciable Capital Assets, Net Total Noncurrent Assets Total Assets DEFERRED OUTFLOWS OF RESOURCES Defened Charge on Refrnding Pensions Other P o stenp loynEnt Benefits Total Defenrcd Outflows of Resourres $ 48,703,472 $ r 2,01 8,980 1,590 199 1,26s,696 1,849,692 626.612 1,696,224 34,645 2,626,307 3,064.475 t52,726 250,000 1,296,930 194 557 78,687,598 29,326 s,699,499 s,976,023 25t,767 6,097,332 l3 9t7 805 12,058,2s7 ili2 142 992 220 t92 409 1,073,548 32,848,586 7,000 33, 107,353 38 806 8s2 28,246,799 671,747 50,435,767 79,7 56,114 I,426,5t9 754,772 See Notes to Financial Statements 6 Primary Gove rnme nt '7,986,656 298,880,007 33 CITY OF ITHACA STATEMENT OF NET POSITION (CONTINUED) DECEMBER 3I,2O2I Primary Government Governmental Activities Component Unit Ithaca Area Wastelrater Treatment Facility LIABILITIES Current Liabilities Accoruts Payable Accnred Liabilities Due to Otlrer Govemnrms Bond Anticpatkrn Notes Payable Accrued Interest Payable Retainage Payable Uneamed Revenue Current Portion of Long-Term Liabilities Bonds Palable kase Obligatiors Payabb Conpensated Absences Total Curre nt Liabilities [,ong-Te rm Liabilitie s Bonds Payable kase Obligations Payable Other Postenploynrnt Berefits Liability Net Pemion (Asset)/Liabihy - Proportionate Share Conpensated Absences Total Long-Te rm Liabilities Total Liabilities DEFERRED IN FI]OWS OF RESOTIRCES Pensiors Other Postenp loynrnt Berrefits Deftrred Charge on Refirnding Total Deferred lnflorrt of Resources NET POSITION Net Investnpnt in Capital Assets Restricted, Nonexpendable, for Honr and Conrmurig Services Restrbted, Expendable, for Honr and CorrrnLnity Servbes Restrbted, Expendable, for Capial Restrbted, Expendabb, for CulhLre and Recreation Restricted, Expendabb, for Debt Unrestrbted (Deftit) Total Net Position (Deficit) $ 6,166,259 $495,709 7 5t,397 3,2'13 589 | 5,7 87 I )t)936 286 640 1 377 360 258 961 7,751 7,365,987 1,200 I l9 922 4t.722.0t5 755 178 6,182,799 91.550,234 2t,265,307 189,609 245.7 68,936 3 392 658 5,066,959 9522 3,180,512 3st,"756,250 24,660 917 3 i ,899,764 872,667 t8 85 8,297 25r,440 6,926 50,758,061 1.13 1,033 9< 11) 1t)6,650 6t7 50 245 8,053, l l7 t0.619,244 251 ,7 67 ,, '15 1 3,681 ,588 t,356,238 $ (6s,600,20s) $ 7 8,258,622 6,737,375 306,767 393.478,265 30,843,716 (173.799,494) See Notes to Financial Statements 34 CITY OF ITHACA STATEMENT OF ACTIVITIES FOR THE YEAR ENDED DECEMBER 37,2021 Program Revenues \et (Erpense) Revenue srld Cbanges ia Net Position Srpenses Chargcs for Services Covcrnmental Activities Operating Capital Gratrts and Crants and Cotrtributions Co.ltributioDs P mary Covcrnment Componcot Unit Ithece Area Wastewater Tr€etment lircilitv FUNCTIONS/PROGRAMS Primary Government Governmental Activities Ceneral Govemmental Suppon Public Safety Transportatio, Economic Assistance and Opportunity Culhre and Recreation IIome and Cortrmunily Scrvices Inlerest on Debt $ ,t62,889 S 456,361 S 1,5?7,248 $s (9,)79,280) $ 28.?09,150 4,283,15s 65.055 44246 j,698,876 (24,360.940) r3,548,328 2,12,515 (5,692,631) T25 814 (?25,8r 4) 13.820,,131 1.680,571 24.291.347 17.595.294 (t 1,847,288) 1,875,232 (3,"22,294) 1.037,323 (i,037,323) $ 95,295,282 $ 26,r27,959 $ 3,027,645 $ 7,s74,108 (58,565,570) 292.569 1p9e.527 l olal Governmental r\ctivities Component Unit Irhaca Arca Wasrewarer Trcatrnent Facility $ 6,905,294 $ 3,959,816 S 'l'otal ComponeDt Units s 6.905.29.1 $ 3,9s9,816 $ GENERAL REVE:''[UES Real Property Ta,xes Real Property Tax Items Nonp.openy Tax ltems Use of Money and Prcperty Sale of P.openy and Compensalion for Loss Miscellareous l.ocal Sources State Sources Change iD Equity Interest in Joint Venhues Intcrgovemmental Revenuc Change in Net Position Net Posilioo (Deficit) - Beginning ofYear Net Position (D€ficit) - End ofYear See Notes to Financial Slatements $ 2.r57.894 (787.581) s 2,157,891 (787,584) 17,4ri7,850 504,061 186.082 3{910 35.85 r3.359.900 3,7 77,t54 t,160,449 1.240.017 55,265,640 1,113,027 6,299,930)525 141 't.731,119(62,300,27 5) $ (6s,600,20s) $8,2s8,622 8 Total Gcncral Revenues and Contributions 27,220,034 1,370.108 35 CITY OF ITHACA BALANCE SHEET GOVERNMENTAL FUNDS DECEMBER 3I,2021 )l ajor Funds Ce ne ral Special Revenue Funds Special Grant Fund Total \ oiFM ajor Gove rnltr ntal Funds Total GovernIIEntal Funds Capital Prcjects Fund s 28,000,978 S 125,127 $ 18,340,192 5 2,237,175 $ 48,703,472 366,t64 705 785 tt,023,924 4,899,130 17,995,003 I,1t49.6921.849,692 626,6t2 t.727,3t4 10,466,313 626 6t2 14,09{t,29t1,904,664 ASSETS Cash ard Cash Equ alents - Uffestricted Cash and Cash Equivabns - Restricted Tefiporary lnvestfiEnts Taxes Recei bb, Nct Dw From Otlrcr Ftrds DtE From State ard Federal Govermrrnts DtE From Other GovemrEnts OtlEr Receivables. Net Inventory Prepaid Experses Loaru Rece able, Net 590,485 '1 96 171 2.411,229 986,656 |,696,224 3,064,115 1 1,615,833 80,391 578,785 t4,16t 406,1 10 ti90,lt20 1.296,930 t.040.995 153,562 t,194,551 6,341,332 6,34'7,332 Total Assets $ 36,980,318 $8,192,70s $ 38,487,601 $ 2r,198,620 $ 104,859,244 $ 1, t 58,105 $139.588 $ 2 001 072 $ 2,867,494 $ 6,t66,259 t3,532 8,249,63t 2,984,946 3,87 4,172 974 48't 14,09tt,29r288,643 3,273,589- t5,553,54615,553,546 | 19,922 I19,9)2 7,282,030 19,808,166 u21,822 8,103.852 Total Liabilities 139,588 21,428,790 5,952,447 17,328,991 DETERRED IN FLOWS OF RESOURCES Unaraihble Revemr 626.612 6,34'7,332 6 973.9M FIIND BAI,ANCES Fund Balances Nonsperdable Restricted Assigned Urnssigrrd Total Fund Balances 1,447,105 366.t64 1,705.785 096,427 2,543,532 7,922.,\34 9,994,0tt3 6.042,227 17,058,81I 6,737,546 29,838,584 8,690,0,14 (s09,934) 8,180 lt0 Total Liabilities, Deferred Inno$s of Resources, and Fund Balarrces 16,545,540 705 785 17,058,81r 15,246,173 50.5 56.109 __$_________-u22/q $ 38,487,601 $ 21,198,620 $ l0,l,tl59,214 See Noles lo Financial Statements 9 LIABILITIES Accounts Payable Accrued Liabfties Due to Other Frmds Due to Ofier Governrrrcna Bond Antbbation Notes PaFble Conpemated Abserrces Ottrcr Liabfties $ 36,980,318 36 CITY OF ITHACA RECONCILIATION OF GOVERNMENTAL FUNDS BALANCE SHEET TO THE STATEMENT OF NET POSITION DECEMBER 31,2O2I Total Governnrcntal Fund Balances $ 50,556,309 Armunts reported for GovernnpntalActivities in the StatenEnt ofNet Position are diferent because: Capital assets, net of accwnrlaied depreciatbn, used in Govemnental Acti,ities are not friancbl resouces ard, tkrefore, are not reporled in the fimds. Capital Assets $ 379,778,441 Accurnuhted Depreciation ( l 8s,s77,192) t94,20t,249 Equity interests in joint venh.nes are rlot reported in the fi.md ftEncirl statenEnts because they do not represent current resources. These are the investnBns in tlre City's joint vennnes.r3,917,805 Other long-term assets are not available to pay fur current period expendih.nes and, therefure, are deferred in tlrc firnds.6,97 3,944 The City's proportionate share ofthe colhctive net pembn lbbfty b rnt reported in the Govemnrnlal Fuds. Net Pension Liabikty - Proportionate Share (s.066,9s9) Deferred outffows ofresources represent a comurption ofnet position that applbs to future perbds and, therefure, are not reporled in the Goremnental FLrds. Defened inllows of resources represent an acqusition of rnt positbn that apptes to firture perbds and, therefore, are not reported in the Governnrntal Funds. Defrned Charge on Refinrding S 1,073,548 De€rred Outflows of Resources - Pemions 28,246,799 Defened Inflows ofResources - Pensiom (31,899,764) Defrned Oltflows of Resouces - Other Postenployrent Benefts 50,435,767 Defened Infows ofResorrces - Other Postenpbynrnt Benefils ( 18,858,297)28,998,053 Certain accrued expemes reported in the StatenEnt ofNet Positbn do not require the use ofcurrent ftrancial resources ard, therefore, are not reported as liabilites in Govemnrntal Fuds. Accncd lnterest Payable $ (1,212,936) Prerniun on BANs (234,237) Otlrr Postenploynrnt Benefits Payable (245,7 68,936) Conpensated Abserres (3,180,512)(2s0,396,62r) Bonds payable are not due and payable in the current period and, therefore, are not reported in the fi.rds.(t04,287,609) Icase obtigations payable are not dr.r and payable in the current period and, therefore, are not reported in the fixxCs. Net Position @elicit) of Governmental Activities See Notes to Financial Statements 496,37 6 l0 $ (6s,600,205) 37 CITY OF ITHACA STATEMENT OF REVENUES, EXPENDTTURES, AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS FOR THE YEAR ENDED DECEMBER 3I.2O2I !Iajor Funds General Fund Total Non-Major Covernmental Funds Total Go1,ernmental Funds Capital Projects Fund REVENUES Real Property Taxes Real Property Tax ltems Nonproperty Tax ltems Depa(mental Income lntergovemmental Charges Use of Money and Property Licenses and Permits Fines and Forfeitures Sale of Property and Compensation for Loss Miscellaneous [ocal Sources Interfund Revenues State Sowces !'ederal Sourccs $ 26,333,612 1,370,108 s s S s 26,333,672 885,329 1,370,108 18,373,1'7917,487,850 4.206,3)8 14,707,934 t7,622 18,293,069 4,223,940 263,245 t,326 6,288 270,859 t,942,892 58.26'7 2,001,159 578,939 578.939 567,341 2,146,086 lt65,991 )l ?to 592,130 490,3r8 57 4,840 4,017,235 1,925,8{t7 4,047,180 t,504,519 12 00 1,938,387 ')045,88 8 6,093,068 l'otal Revenues 65,959,1"t2 1,943,380 t,076,063 5,478,220 8,0t4,426 8,05 8,802 16,287,569 92,204.54'1 t,335,831 6,419,5635,083,712 13,930,686 5,662,094 r3,930,686 5,662,094 EXPENDITURES Current General Govemmental Support Public Safety Transportation Economic Assistance and Opponunity Culture and Recreation Home and Community Services Employee Benefits Debt Service Principal lnterest Capital Outlay 725 8l4 6,160 528 3,035,260 18,174,935 5,213,915 1,944,617 2,024,7 69 9,303,657 r4,363,686 2,298,54'1 20,473,482 2,406,609 '7,620,524 1,787,570 3,732,181 15,337,045 15,337,045 725,8t 4 6,r60,528 'l'otal Expenditures Excess of Rcvcnucs (Expendilurcs) 59,931,581 2.024.769 t5,337,045 t7.t32.214 94.425.609 6,02',7,591 (81,389) (7,322,619) (844,64s) (2,221,062) 30,000 30,000 (30,000)(30,000) OTHER FINANCING SOURCES (USES) Interlund Transfers In lnterfund Transfcrs (Out) Premiums on Obligations BANs Redecmcd From Appropnatrons Proceeds of Obligations Pal,ments to Escrow Agent 5ql 7qR 593,798 904,005 11,542,013 r,995,000 (2,239,932) 904,005 13,537,0 r 3 (2,239,932) Total Other Financing Sources (Uses) Net Changes in Fund Balances l'und Balances, Beginning ofYear Fund Balances, End of Year (30,000)t2 .146,018 378,866 t2,'794,884 5,997,59 t (81,389)(465,779\ 10,513,822 181 174 11,935.4t2 15,71I,952 1.705,785 10.547,949 $ 16,5,t5,540 $ See Notes to Financial Statements ll $ r7,058,811 $ 15,246,173 $ 50,556J09 Special Revenue Funds Special Grant Fund 5,123,399 39,982,487 38 CITY OF ITHACA RECONCILIATION OF GOVERNMENTAL FUNDS STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES FOR THE YEAR ENDED DECEMBER 31,202I :{et Change in [und Bahnc€s - Total GovemrEntal FunG s r0,573,822 AImttrlts reponed 6r GovemnEflal Activitbs in the ShtenEnt ofActivitas ale diferert because GolermyEntrl Furds repon capiEl ouhy as experditLres. However, in the SlalenErn of Aclivitbs, tlE cost of those assets i albcated over their eslinBted usefullives as deprecAtion cxpens€. In the Statenrrn ofActivilies, only the gain or bss on the sale ofcapital assets b reportcd. whereas, in tlp Govemnpntal Funds, llle proceeds liom the sale ofcapihlassets increase fnaDcial resources. The net efect b a loss on sab ofcapitalassets on the Go!€rnrrEnt-wde StatenEnt ofActivities !s. proceeds fiom thc sale ofcapital assets on the GovemnEnbl Fund ftEncial statenEnts. Thb b the anEu[ by which capitaloutlay exceeded depreciation experse and disposals in the cursnt perit. Capital Ouby, Net ofDbposals Depr€chtbn Epense Net Book VatE ofDbposed Assets s 14,866,348 (l r,1r4,782) (1,r 87,756)2,363,810 Re./enEs in the StatenEm of Activirbs that do not provile cunent ftlArrhl resormes are not repoied as re!€nres in th€ fi.mds.(207,61't) Equiry interests in joint ventues are not reported in tie filrd Inarrial stateirEnts because they do not rcpresenl current resorrccs. This is the change in irwestnefit in tlle Civsjoi ventures.1,160,4,19 Cenain arDrmts are accrucd in the StatenErft ofNet Position btll llot in the CovernnEntal Ftnds because they are not due and palable. This b the change in such accruals.(s00.487) ClBrEes in tlE CiVs proportbnate share ofnet peraion liabiilies have no eftct on current lhancial resources ard, thereforE, are mt reported in tlE Go\ernnEntal Fuds. ln additiorL changps in dr Ci{s de€rred ouflows and deered infows rehted to persirm do not afect cwrent lilarEial resou'ces ard are, abo, nol reponed in $e Go\€mirerral Furds. De€rred lnflows ofResources - Pemirm S (30,779,728) Deftned Ol.nflows ofResources - Pembns 5,521,470 Defrrred ordows of Resomes - Other PosternploynEnt Benefits | 5,871,249 Derarred Inflows ofResources - Other Postenpb)rrEnt Benefts 5,656,689 NetPembnliab ity- Proponbnate Share 2!,$!564 22,892,241 Bord proceeds provde cuarefi fimncial resources to CorerrurEntal Fwds, brt bsuing debt increases bng-term labftbs in tlE Statefirit ofNet PositbrL RepalnEnt ofdebt prirrhal is an experditure in 0E Cole.rllrEinal Furds, brt the repaynErn reduces bng-term lhbiities in the ShtenEr( of Net Positbn This b tE anDts by *tich t}E bsuance ofnew debt ard BANS redeenEd exceeded repay[Ent ofdebt princbal Proceeds ofDebl S (13,537,013) PalrrEflts to Escrow Agent 2,239,932 BANS RedeenEd From Appropriatbm (904,005) Premium on Debt Issued (593,798) Principal PayrEnls 7,620,524 (s,174,360) SorE expenses reported in the SlatenEnt ofActivities do not require the use of curent frEncial resources and, thereforc, are not reported as experdirEes in GoverrErEntal Fuds. Change in AccnEd Interest PalBble S 388,119 Change in Conpe0sated AbserEes (1M,373) Change in OtlEr PostenpblrEnt Benefits Palable (34.905.028) Annrtbtion of Premiun and De€ned Armw$ on Refimding of Serbl Bords 17 5,346 AnDnization of Premiwn on Bond Anticbatbn Notes r45 (34,40'7,791 Chenge in Net Position ofGovernmental Activities See Notes to Financial Statements 12 3li -!_GnzpiE 39 CITY OF ITHACA STATEMENT OF FIDUCIARY NET POSITION Df,CEMBER 3I,2O2I ASSETS Cash and Cash Equivalents - Urnestricted Total Assets NET BOSITION Restricted for Indivlluals, Organizatiors, and Other Governnrnts Total Net Position See Noles to Financial Statements Custodial Funds $ 10,881 $ 10,881 $ 10,88 l $ 10,881 l3 40 CITY OF ITHACA STATEMENT OF CHANGES IN FIDUCIARY NET POSITION FOR THE YEAR ENDED DECEMBER 3I,2O2I ADDITIONS Miscelhneous Total Additions DEDUCTIONS Crstodial Actiwies Total Deductions Change in Net Position Net Positbn - Beginning of Year, as Restated Net Position - End of Year S Custodial Funds 10,881 $ 10,881 See Notes to Financial Statements l4 41 Note I CITY OF ITHACA NOTES TO FINANCIAL STATEMENTS DECEMBER 31,2021 Summary of Significant Accounting Policies The financial statements ofthe City oflthaca (the City) have been prepared in conformity with accounting principles generally accepted in the United States of America (U.S. GAAP) as applied to govemment units. The City's reporting entity applies all relevant Govemmental Accounting Standards Board (GASB) pronouncements. The GASB is the accepted standard setting body for establishing govemmental accounting and financial reporting principles. Financial Reporting Entity The City, which was established in 1888, is govemed by its Charter, General City Law and other general laws of the State of New York and various local laws. The Common Council is the legislative body responsible for overall operations; the Mayor serves as chief executive officer, and the Controller serves as the chief fiscal officer. The following basic services are provrded: public safety (police and fire), highways and streets, sanitation, health, culture and recreation, public improvements, planning and zoning. and general administration. All Govemmental Activities and functions performed for the City are its direct responsibility. No other govemmental organizations have been included or excluded from the reporting entity. The primary government, which is the City; Organizations for which the primary govemment is financially accountable; and Other organizations ior which the nature and significance oftheir relationship with the primary govemment are such that exclusion would cause the reporting entity's financial statements to be misleading or incomplete. The decision to include a potential component unit in the City's reporting entity is based on several criteria set forth in GASB Statement No. 14, as amended by GASB Statements No.39, and No. 85 including legal standing, fiscal dependency, and financial accountability. Based on the application ofthese criteria, the following has been included in the City's reporting entity. a a a 15 The financial reporting entity consists ofthe following, as defined by GASB Statement No. 14, "The Financial Reporting Entity," as amended. 42 CITY OF ITHACA NOTES TO FINANCIAL STATEMENTS DECEMBER 3I,2O2I Note I Summary of Significant Accounting Policies - Continued Financial Reporting Entity - Blended Component Unit Based on the foregoing criteria and the significant factors presented below, the Ithaca Urban Renewal Agency (the Agency) is included in the reporting entity and is reflected as such as blended component unit in the financial statements, reported as a special revenue fund. The Agency is a public benefit corporation established in 1965 as an urban renewal agency. The Agency has a corporate identity separate from the City and is independently funded, but works in close conjunction with the City to revitalize urban neighborhoods and strengthen the local economy. The Agency is composed of the Mayor and four members appointed by the Mayor with the concurring approval of the Common Council. The Director of Planning and Development for the City of Ithaca serves as the Executive Director of the Agency. Through a variety ofmeans, including site acquisition and disposition, the Agency works to implement the Urban Renewal Plan that seeks to stabilize neighborhoods and enhance the vitality of the downtown and community. Through the City, the Agency applies for and receives various grants to address community development needs. On an annual basis, the Agency manages the City's HUD Entitlement Grant award of Community Development Block Grant (CDBG) and Home lnvestment Partnerships Program (HOME) funds to undertake activities in the areas ofhousing, community facilities, public services, and economic development that benefit Ithaca's low and moderate-income neighborhoods and households, or eliminate blighting conditions. In addition, the Agency administers various economic development loan programs, the Cherry Street Industrial Park, and leases to facilitate private/public real estate projects. Separate financial statements for the IURA can be obtained by contacting the IURA at 108 East Green Street, Ithaca. NY r 4850. Financial Reporting Entity - Joint Ventures Ithaca Area Wastewater Treatment Facility In 1981, the City, Town oflthaca, and Town of Dryden executed an agreement whereby the parties agreed to jointly own and operate a sewage treatment plant and related facilities. Board members of each municipality jointly act as the goveming body for the joint venture. The Facility is intended to be self-sustaining. However, any shortfall is to be provided by equal share contributions from the participants. See Note 14 for additional disclosure regarding this joint venture. The activities ofthe Facility are also reported as a discretely presented component unit of the City. l6 43 CITY OF ITHACA NOTES TO FINANCIAL STATEMENTS DECEMBER 3I,2O2I Note I Summary of Significant Accounting Policies - Continued Financial Reporting Entity - Joint Ventures - Continued Tompkins Consolidated Area Transit (TCAT) Tompkins Consolidated Area Transit (TCAT) was formed under a consolidation agreement between the City, Tompkins County, and Comell University effective Apnl l, 1998. The agreement shall remain in lorce until October 9, 2021. TCAT began operations on January 1, 1999, with its purpose to provide public transportation in Tompkins County and surrounding areas. As of January l,2005, TCAT was reorganized as a 501(cX3). However, the structure of the Board of Directors (Board), and the interest of each party was not changed. TCAT is governed by a Board of Directors consisting of nine voting members with three members being appointed by each participant in the venture. The General Manager of TCAT is a non-voting ex-officio member of the Board. In addition, the nine voting members of the Board select five additional non-voting, ex-officio members. Interest of each party in surpluses, losses, property, and in debt acquired by TCAT shall be shared equally. Each party makes an annual contribution of equal amounts to the venture. See Note 14 for additional disclosure regarding this joint venture. Financial Reporting Entity - Related Organizations Although the following organizations, functions, or activities are related to the Ciry, they are not included in the City's reporting entity because the City does not meet the criteria for manifestation of oversight as defined by the GASB. Ithaca Housing Authority The Ithaca Housing Authority (Authority) was created pursuant to S447 of the Public Housing Law. Its general purpose is to provide housing for low-income residents ofthe City. Members of the Board of Commissioners are appointed by the Mayor. Specific reasons for excluding the Authority from the City's reporting entity are as follows: The Authority's Board of Commissioners control employment of personnel; the City cannot significantly influence the Authoriry's operations; the City has no budgetary authority; the Authority controls surpluses and deficits; the City has no responsibility for the Authority's debt; and the Authority's Board of Commissioners controls fiscal management. Ithaca City School District Essentially, the primary function of the Ithaca City School District (School District) is to provide education for pupils. Services such as transportation of pupils, administration, finance, and plant maintenance support the primary function. Specific reasons for excluding the School District fiom the City's reporting entity are as follows: The City cannot significantly influence the School District's operations; the City has no budgetary authority; the School District controls surpluses and deficits; the City has no responsibility for the School District's debt; and the School District's Board ofEducation controls fiscal management. l7 44 CITY OF ITHACA NOTES TO FINANCIAL STATEMENTS DECEMBER 3I.2O2I Note I Summary of Significant Accounting Policies - Continued Basic Financial Statements The City's basic financial statements include both Govemment-wide (reporting the City as a whole) and Govemmental Fund financial statements (reporting the City's Major Funds.) The Govemment-wide and Govemmental Fund financial statements categorize primary activities as either govemmental or business-type. The Ciry's general govemmental support, education, public safety, health, ffansportation, highways and streets, economic assistance and opportunity, culture and recreation, and home and community services are classified as Govemmental Activities. Basic Financial Statements - Government-Wide Financial Statements The Govemmenlwide financial statements include a Statement of Net Position and a Statement of Activities. These statements present summaries of activities for the primary govemment. Govemment-wide financia[ statements do not include the activities reported in the Fiduciary Funds. This Govemment-wide focus is more on the sustainability of the City as an entity and the change in the City's net position resulting from the current year's activities. ln the Govemment-wide Statement of Net Position, the Govemmental Activities columns are reported on a full accrual, economic resource basis, which recognizes all long{erm assets and receivables as well as long-term debt and obligations. The City's net position is reported in three parts - net investment in capital assets, restricted, and unrestricted. The Statement of Activities reports both the gross and net cost for each of the City's functions or programs. Gross expenses are direct expenses, including depreciation, that are specifically associated with a service, program or department and, therefore, are clearly identifiable to a particular function. These expenses are offset by program revenues - charges paid by the recipient of the goods or services offered by the program, grants, and contributions - that are restricted to meeting the program or capital requirements of a particular program. Revenues, which are not classified as program revenues, are presented as general revenues of the City, with certain limited exceptions. The net cost represents the extent to which each function or program is self-financing or draws from the general revenues of the City. Governmental Fund Financial Statements The financial transactions of the City are reported in individual funds in the Govemmental Fund financial statements. Each fund is accounted for by providing a separate set of self- balancing accounts that comprises its assets, liabilities, defened inflow of resources, reseryes, fund equity, revenues, and expenditures or expenses. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain govemment functions or activities. The City records its transactions in the funds described as follows. l8 45 CITY OF ITHACA NOTES TO FINANCIAL STATEMENTS DECEMBER 31,2021 Note I Summary of Significant Accounting Policies - Continued Governmental Fund Financial Statements - Continued Govemmental Funds are those through which most govemmental functions are financed. The acquisition, use, and balances ofexpendable financial resources, and related liabilities are accounted for through Govemmental Funds. The measurement focus of the Govemmental Funds is based on determination offinancial position and changes in financial position under the modified accrual basis of accounting. The following are the City's Govemmental Funds: Major Funds o General Fund - Principal operating fund; includes all operations not required to be recorded in other funds. Capital Projects Fund - Accounts for financial resources to be used for the acquisition, construction, or renovation of major capital facilities. or equipment. Special Revenue Funds Special Grant Fund - Accounts for Community Development Block Grant activities. Non-Major Funds Special Revenue Funds o Water Fund - Accounts for revenues derived from charges for water consumption and the application ofsuch revenues toward related operating expenses and debt retirement. o Sewer Fund - Accounts for revenues derived from charges for sewer usage and benefited assessments, and the application of such revenues toward related operating expenses and debt retirement. o Refuse and Garbage Fund - Accounts for revenues derived fiom charges for garbage, refuse, and recycling consumption, and the application of such revenues toward related operating expenses. o Urban Renewal Agency Fund - Accounts for money advanced for the Center Ithaca Project. o Miscellaneous Fund - Accounts for assets held in the capacity ofa trustee for assets to benefit the City's parks program. o Sidewalk Improvement District Fund - Accounts for revenues derived from property assessments for sidewalk improvement. o Stormwater Drainage Fund - Accounts for revenues derived from property assessments for water and sewer drainage. o o a l9 46 Note I CITY OF ITHACA NOTES TO FINANCIAL STATEMENTS DECEMBER 3I,2021 Summary of Significant Accounting Policies - Continued Governmental Fund Financial Statements - Confinued Non-Maior Funds - Continued Debt Service Fund - Accounts for current payments ofprincipal and interest on general obligation debt and for financial resources accumulated in a reserve for payment of future principal and interest on long-term indebtedness. Permanent Fund - Reports all trust arrangements under which principal and income benefit individuals, private organizations, or other govemments. The City uses this fund to repon funds provided lor cemetery maintenance. a Fiduciary Fund Types Fiduciary Fund Types are used to account for assets held by the local govemment in a trustee or custodial capacity. The following is the City's Fiduciary Fund: Custodial Fund - Accounts for money and/or property received and held in the capacity oftnrstee, custodian, or agent. Basis of Accounting/Measurement Focus Basis of accounting refers to when revenues and expenditures and the related assets, liabilities and deferred inflows of resources are recognized in the accounts and reported in the basic financial statements. Basis ofaccounting relates to the timing ofthe measurements made, regardless of the measurement focus. Measurement focus is the determination ofwhat is measured, such as, expenditures or expenses. Accrual Basis The Govemment-wide financial statements and Fiduciary Fund financial statements are presented on an "economic resources" measurement focus and the accrual basis of accounting. Accordingly, all of the City's assets, deferred outflows, liabilities, and deferred inflows, including capital assets, as well as infrastructure assets and long-term liabilities, are included in the accompanying Statement of Net Position. The Statement of Activities presents changes in net position. Under the accrual basis of accounting, revenues are recognized when eamed and expenses are recognized when incurred. 20 47 CITY OF ITHACA NOTES TO FINANCIAL STATEMENTS DECEMBER3I,2O2I Note 1 Summary of Significant Accounting Policies - Continued Modified Accrual Basis Under this basis of accounting, revenues are recorded when measurable and available. Available means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. Material revenues that are accrued include real property taxes, state and federal aid, sales tax, and certain user charges. The City considers property tax receivables collected within 60 days after year end to be available and recognizes them as revenues of the current year. All other revenues deemed collectible within one year after year end are recognized as revenues in the current year. If expenditures are the prime factor for determining eligibility, revenues from federal and state grants are accrued when the expenditure is made. Expenditures are recorded when incurred. The cost of capital assets is recognized as an expenditure when received. Exceptions to this general rule are that l) principal and interest on indebtedness are not recognized as an expenditure until due; and 2) compensated absences, such as vacation and sick leave, which vest or accumulate, are charged as an expenditure when paid. Unearned Revenues The City reports uneamed revenues on its Statement ofNet Position and its Balance Sheet. On the Statement of Net Position, uneamed revenue arises when resources are received by the City before it has legal claim to them, as when grant monies are received prior to incurrence of qualirying expenditures. ln subsequent periods, when the City has legal claim to resources, the liability for uneamed revenue is removed and revenue is recognized. Deferred Outflows and Inflows of Resources In addition to assets, the Statement ofNet Position reports a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption ofnet position that applies to a future period and will not be recognized as an outflow of resources (expense/expenditure) until then. The City reports deferred outflows related to pensions and Other Postemployment Benefits (OPEB) in the Statements of Net Position. The types of deferred outflows related to pensions and OPEB are described in Notes 8 and I I , respectively. The govemment also has a deferred charge on refunding reported in the Govemment-wide Statement of Net Position. A deferred charge on refunding results from the difference in the carrying value ofrefunded debt and its reacquisition price. This amount is deferred and amortized over the shorter of the life ofthe refunded or refunding debt. 2t 48 CITY OF ITHACA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2O2I Note I Summary of Significant Accounting Policies - Continued Deferred Outflows and Inflows of Resources - Continued In addition to liabilities. the Statement of Net Position and the Balance Sheet will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows ofresources, represents an acquisition ofnet position that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The govemment has two types ofdefened inflows of resources, one of which arises only under a modified accrual basis of accounting that qualifies for reporting in this category. Accordingly, the item, unavailable revenue, is reported only in the govemmental fund Balance Sheet. The govemmental funds report unavailable revenues from loans receivable, water and sewer rents receivable not collected by year end, and property taxes not received within 60 days after year end. These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available. The City reports deferred inflows related to pensions and OPEB which are described in Notes 8 and I l, respectively. Inventory Inventory is valued at cost utilizing the first-in, first-out method for the General, Water, and Sewer Funds. Property Taxes Real property taxes are levied annually by the City no later than December 31, and become a lien on January l. City taxes are collected in two installments, the first due in January and the second due in June. The City collects county taxes fiom January 1 through May 31. Collected county taxes are remitted to the county on a monthly basis. Unpaid taxes are enforced pusuant to Article II ofReal Property Tax Law. The County retains all rights, title, and interest in any unpaid County taxes. Unpaid City taxes and unpaid school taxes plus advertising costs and accrued penalties are foreclosed two years after lien date pursuant to Article II of Real Property Tax Law. Should both the County and the City have liens on a particular properry, either may foreclose. The foreclosure is subject to the other's lien. The City and the County share proceeds from the property sale based on their respective tax liens. Receivables Property County tax receivables are stated net of estimated allowances for uncollectible amounts. Amounts due from state and federal govemments represent amounts owed to the City to reimburse it for expenditures incurred pursuant to state and federally funded programs. Other receivables represent amounts owed to the City including sewer rents, water rents, rehabilitation loans, and assessments. No provision has been made for uncollectible accounts reported as other receivables, as it is believed that such amounts would be immaterial. All receivables net of estimated allowances for uncollectible amounts are expected to be collected within the subsequent fiscal year. )',49 CITY OF ITHACA NOTES TO FINANCIAL STATEMENTS DECEMBER 31,2021 Note I Summary of Significant Accounting Policies - Continued Cash and Cash Equivalents For financial statement purposes, all highly liquid investments with initial maturities of three months or less are considered cash equivalents. Capital Assets Atl capital assets are valued at historical cost or estimated historical cost. Contributed assets are reported at fair market value as of the date received. Additions, improvements, and other capital outlays that significantly extend the useful life ofan asset are capitalized. Other costs incurred for repairs and maintenance are expensed as incurred. Depreciation on all assets is provided on the straight-line basis over the estimated useful lives of the assets. Govemmental capital assets purchased or acquired with an original cost of over $5,000 for buildings and infrastructure assets and $2,500 for machinery and equipment, and having a useful life of greater than one year are capitalized. The estimated useful lives for govemmental capital assets are as follows: Buildings and Improvements Machinery and Equipment Infrastructure I0 - 45 Years 5 - 25 Years l0 - 60 Years No interest on construction in progress has been capitalized. lnsurance The City assumes the liability for most risk including, but not limited to, property damage and personal injury liability. Judgments and claims are recorded when it is probable that an asset has been impaired, or a liability has been incurred and the amount of loss can be reasonably estimated. Vacation, Sick Leaveo and Compensatory Absences City employees are granted vacation, sick leave, and other leave benefits as defined in agreements between the City and the representative units. The City recognizes a liability for vacation leave and other compensated absences with similar characteristics and additional salary-related payments as the benefits are eamed by the employees, based on the rendering of past service and the probability the employees will be compensated for the benefits through paid time off or some other means. This includes vacation leave and other compensated absences with similar characteristics eamed but not used during the current or prior periods and for which employees can receive compensation in a future period. Amounts do not include leave expected to lapse and do include leave that (new) employees will (eventually) qualift for. 23 50 CITY OF ITHACA NOTES TO FINANCIAL STATEMENTS DECEMBER 3I,2O2I Note I Summary of Significant Accounting Policies - Continued A portion ofthe compensated absence liability recogrized is attributable to the value ofsick leave converted into payment for employees'share of postemployment health care insurance premiums. The liability for compensated absences is calculated at rates in effect as ofthe balance sheet date and is recorded in the Govemmental Funds inasmuch as it will be funded irom current financial resources. The Statement of Net Position records this current portion, as well as amounts to be paid lrom future financial resources. Other Postemployment Benefi ts (OPEB) ln addition to providing pension benefits, the City provides health insurance coverage and survivor benefits for retired employees and their survivors in accordance with employment contracts. Substantially all of the City's employees may become eligible for these benefits if they reach normal retirement age while working for the City. Health care benefits and survivors benefits are provided through an insurance company whose premiums are based on the benefits paid during the year. The City recognizes the cost ofproviding benefits by recording its share ofinsurance premiums as an expenditure in the year paid. For additional information, see Note 1 I . Health Insurance The City participates in an employee health insurance plan, the Greater Tompkins County Municipal Health Insurance Consortium (Consortium). The Consortium was organized in 2010 as an Article 5-G General Municipal Law (GML) municipal corporation to provide health insurance benefits for its member municipalities. The term "Municipal Corporation," as defined by $ll9-N of the GML, includes a county, city, town, or village. The Consortium's general objectives are to formulate, develop, and administer, on behalfofthe member participants, an adequate program of insurance in a cost effective manner. Municipalities joining the Consortium must remain members for a minimum of three years; a participant may withdraw with written notice prior to October 3rd of each plan year. Municipalities applying for membership in the Consortium may do so with two-thirds approval of the Board. Consortium underwriting and rate setting policies have been established after consultation with third party administration. Consortium members are subject to supplemental assessment in the event of deficiencies. Premium assessments are determined annually, and should assets of the Plan be exhausted, members would be responsible for the Consodum's liabilities. 24 Vacation, Sick Leave, and Compensatory Absences - Continued In addition, the City recognizes a liability for vesting sick leave and other compensated absences with similar characteristics and additional salary-related payments as employees eam benefits and to the extent it's probable that the City will compensate the employees for the benefits through cash payments (which may be conditioned on the employees' termination or retirement), rather than be taken as absences due to illness or other contingencies. 51 CITY OF ITHACA NOTES TO FINANCIAL STATEMENTS DECEMBER 3I, 2O2I Note I Summary of Significant Accounting Policies - Continued Health Insurance - Continued Plan membership currently includes 39 municipalities. The Consortium uses reinsurance agreements to reduce its exposure to large losses on insured events. Reinsurance permits recovery ofa portion oflosses from the reinsurer, although it does not discharge the primary liability ofthe Consortium as direct insurer ofthe risks reinsured. Use of Estimates The presentation of financial statements in conformity with the prescribed basis of accounting as applied to govemmental units requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. Restricted Resources When an expense is incurred for purposes for which both restricted and unrestricted resources are available, it is the City's policy to apply restricted funds before unrestricted funds, unless otherwise prohibited by legal requirements. Certain assets are classified on the Statement of Net PositiorVBalance Sheet - Govemmental Funds as restricted because their use is limited. The proceeds of bond and note sales can only be used for the stated purpose of the borrowing. Property taxes collected for debt service payments are legally restricted for that purpose. Community Development Block Grant Funds must be used only for approved programs. Cemetery perpetual care funds camot be expended. However, the interest eamings can be spent for cemetery maintenance functions. It is the City's policy to spend the interest eamings each fiscal year. Equity Classifications - Government-Wide Financial Statements Equity is classified as net position and displayed in three components: Net Investment in Capital Assets - Consists of capital assets including restricted capital assets, net of accumulated depreciation and reduced by the outstanding balances of any bonds, mortgages, notes, or other borrowings attributable to the acquisition, construction, or improvement of those assets. Restricted - Consists of resources with constraints placed on the use either by 1) extemal groups such as creditors, grantors, contributors, or laws or regulations of other govemments; or 2) law through constitutional provisions or enabling Iegislation. a Unrestricted - Consists of all other resources that do not meet the definition of "restricted" or "net investment in capital assets." ,(52 CITY OF ITHACA NOTES TO FINANCIAL STATEMENTS DECEMBER 3I, 2O2I Note I Summary of Significant Accounting Policies - Continued Equity Classilications - Governmental Fund Financial Statements Govemmental Fund equity is classified as fund balance. Proprietary Fund equity is classified the same as in the Govemment-wide financial statements. Any capital gains or interest eamed on reserve fund resources becomes part of the respective reserve fund. While a separate bank account is not necessary for each reserve fund, a separate identity for each reserve fund must be maintained. Constraints are broken into five classifications: nonspendable, restricted, committed, assigned, and unassigned. These classifications serve to inform readers of the financial statements of the extent to which the government is bound to honor any constraints on specific purposes for which resources in a fund can be spent. Nonspendable - Consists ofassets inherently nonspendable in the current period either because of their form or because they must be maintained intact; including prepaid items, inventories, long-term portions of loans receivable, financial assets held for resale, and endowments principal. a a Restricted - Consists of amounts subject to legal purpose restrictions imposed by creditors, grantors, contributors, or laws and regulations of other govemments and enforced extemally; or through constitutional provisions or enabling legislation. Most ofthe City's legally adopted reserves are reported here. Committed - Consists of amounts subject to a purpose constraint imposed by formal action of the govemment's highest level of decision-making authority prior to the end of the fiscal year, and requires the same level of formal action to remove said constraint. Assigned - Consists of amounts subject to a purpose constraint representing an intended use established by the govemment's highest level of decision-making authority, or their designated body or official. The purpose of the assignment must be narrower than the purpose of the General Fund. In funds other than the General Fund, assigned fund balance represents the residual amount of fund balance. a 26 o Unassigned - Represents the residual classification ofthe govemment's General Fund, and could report a surplus or deficit. In funds other than the General Fund, the unassigned classification should only be used to report a deficit balance resulting from overspending amounts restricted, committed, or assigned for specific purposes. 53 CITY OF ITHACA NOTES TO FINANCIAL STATEMENTS DECEMBER 3I,2O2I Note I Summary of Significant Accounting Policies - Continued Equity Classifications - Governmental Fund Financial Statements - Continued The City has not adopted any resolutions to commit fund balance. Currently, fund balance is assigned by the City Controller for encumbrances and designations and the Common Council, by resolution, approves fund balance appropriations for next year's budget. The City has not formally adopted a policy defining the order in which to apply expenditures against fund balances. However, the City's policy is to apply expenditures against nonspendable fund balance, restricted fund balance, committed fund balance, assigned fund balance, and unassigned fund balance. Interfund Activity Interfund activity is reported as either loans, services provided, reimbursements or transfers. Loans are reported as interfund receivables and payables as appropriate, and are subject to elimination upon consolidation. Services provided, deemed to be at market or near market rates, are treated as revenues and expenditures/expenses. Reimbursements are when one fund incurs a cost, charges the appropriate benefiting fund and reduces its related cost as a reimbursement. All other interfund transactions are treated as transfers. Future Changes in Accounting Standards GASB has issued Statement No. 95, "Postponement of the Effective Dates of Certain Authoritative Guidance," which delays the implementation dates for several GASB statements. GASB has issued Statement No. 87, "Leases," effective for the year ended December 3 l, 2020, delayed by CASB Statement No. 95 to December 3 I , 2022. GASB has issued Statement No. 92, "Omnibus 2020," effective for the year ended December 31, 2020, delayed by GASB Statement No. 95 to December 3 I , 2022. Note2 Stewardship,Compliance,Accountability De{icit Fund Balances The Refuse and Garbage Fund had a deficit fund balance of$504,955 due to the current and previous years' excess of expenditures over revenue. The City continues to review the trash tag fee structure, yard waste expense, and route changes to find increasing revenue sources and cost efficiencies to balance the Solid Waste Fund. The General Fund will continue to provide funds necessary to balance the budget in the future. For the year ended December 31,2021, the excess ofexpenditures was $ l0l,661. a ,,1 City management will evaluate the impact each of these pronouncements may have on its financial statements and will implement them as applicable and when material. 54 Nole 3 CITY OF ITHACA NOTES TO FINANCIAL STATEMENTS DECEMBER 31,202I Note 2 Stewardship, Compliance, Accountability - Continued Deficit Net Position At December 3 I , 2021, the City's Statement of Net Position had an unrestricted net deficit of $173,799,494. This is a result of the requirement to record other postemployment benefit liability with no requirement or mechanism to fund this liability (see Note I l). The deficit is not expected to be eliminated during the normal course ofoperations. Cash and Investments The City's investment policies are govemed by New York State statutes. In addition, the City has its own written investment policy. City monies must be deposited in Federal Deposit Insurance Corporation (FDIC) insured commercial banks or trust companies located within the state. The Controller is authorized to use demand accounts and certificates of deposit. Permissible investments include obligations of the U.S. Treasury and U.S. Agencies, repurchase agreements, and obligations of New York State or its localities. Collateral is required for demand and time deposits and certificates ofdeposit not covered by federal deposit insurance. Obligations that may be pledged as collateral are obligations ofthe United States and its agencies and obligations ofthe state and its municipalities and school districts. Deposits and investments are valued at cost or cost plus interest. Total financial institution (bank) balances at December 3 I , 2021 , per the banks, were $64,991 ,549, which were insured, and collateral, where required, was held by the City's agent in the City's name. Cash restricted for General, Water, and Sewer Fund reserves are $366,164, $1,702,529, and $2,515,664, respectively. Other restricted cash consists of911,023,924 in the Capital Fund for unspent debt proceeds, $1,705,785 in the Special Grant Fund for community development projects, $52,045 in the Permanent Fund, and $628,892 in the Debt Service Fund lnvestments consisted of a one year certificate of deposit with a cost and fair value of $ 1,849,692 at December 31, 2021 . 28 The written investment policy requires repurchase agreements to be purchased from banks located within the state and that underlying securities must be obligations ofthe federal govemment. Underlying securities must have a market value of at least the cost of the repurchase agreement- 55 Note 4 Note 5 Note 6 CITY OF ITHACA NOTES TO FINANCIAL STATEMENTS DECEMBER 3I, 2O2I State and Federal Aid Receivables State and federal aid receivables at December 31,2021 consisted ofthe following, which are stated at net realizable value. The Ciry has deemed the amounts to be fully collectible. Description Annunt NYS DOT NYSERDA Sales Tax Other $5,581,369 135,819 s90,485 1,678,953 _$___4!q!rq_ Property Taxes At December 3 1 , 2021, total real property tax assets of $626,612 are offset by deferred tax revenue of $616,612 in the General Fund. In the Statement of Net Position, these assets are not deferred. Sales Taxes and Collection The City, under the general authority of Article 29 of the Tax Law, imposes a 0.5% sales and compensating use tax. The County of Tompkins, by similar authority, also imposes a 0.57o sales tax within the City and a 3% sales tax in the towns outside the City. Both the City and County imposed tax are administered and collected by the State Tax Commission in the same manner as that relating to the state imposed 4Yo (llun,e l, 2005) sales and compensating use tax. Net collections, meaning monies collected after deducting expenses of administration and collections and amounts refimded or to be refunded, but inclusive ofany applicable penalties and interest, are paid by the state to the City and the county, respectively. In 2021, direct payments from this source aggregated $17,122,914, and were credited to the General Fund. These funds were used to finance general City expenses. Net collections of the 1.5% sales tax imposed within the City by the County are retained by the County, and, together with 0.5% of the tax levied in the towns outside of the City, or 2.0o/o, are applied, to the reduction of taxes levied on a countywide basis. The County of Tompkins increased sales tax collected within the county to 8%. The City, under the l0% increased sales tax, receives 0.25Yo of the lo% increase. 29 56 Note 7 CITY OF ITHACA NOTES TO FINANCIAL STATEMENTS DECEMBER 31,2021 Capital Assets A summary ofchanges in capital assets at December 31, 2021 follows: Gove rnmental Activities Balance at 12t31/2020 Additiors Deletions Balance at t2/31D02t Non-Depreciable Capital Assets t"and Total NorrDeprtciable Capital Assets Depreciable Capital Assets BuiHings and Inprovenpnts Machinery and Equipnrnt Intastruchne Total Depreciable Capital Assets Total Historical Cost [,ess Accumulated Depreciation Buihings and krprovenEnts Machinery and Equfunrent lnfastructure Total Accumulated Depreciation Total $ 12,058,257 $$$ 12,058,257 t2,0s8,2s7 12,0s8,2s7 l r 0,255,8 r4 28,3'76,483 2t9,173,864 833,419 1,609,893 12,423,036 (4,370,062) (s82,263) t06,719,171 29,404,t13 23t,s96,900 3s7,806,161 t4 866.348 (4,9s2,32s) 361,720,184 369 864 418 14,866,348 (4,952,325) 379,778,441 (60,766,417) ( l 9,268,838) (97,991 ,724) (3,006,591) ( l ,613,937) (6,694,2s4) 3,276,543 488.026 (60,496,46s) (20,394;749) (104,68s,978) (178,026,979) (t,3t4,782) 3,764,s69 (18s,s77,192) _!_l2t llule $3,ss1,566 $ (1,187,7s6)jrel;20J24e_ Depreciation expense was charged to functions as follows Gove rnrnental Activitie s General Govemnpntal Sryport Public Safety Transportation Culture and Recreation Honp and Conrrnnity Services Total $109,454 1,028,227 6,642,882 1,453,030 2 081 189 $ 11,314,782 30 57 Note 8 CITY OF ITHACA NOTES TO FINANCIAL STATEMENTS DECEMBER 3I, 2021 Pension Obligations - New York State and Local Employees' Retirement System (ERS) (PFRS) Plan Descriptions and Benefits Provided Employees' Retirement System (ERS) (PFRS) (System) The City participates in the New York State and Local Employees' Retirement System (ERS) and the New York State and Local Police and Fire Retirement System (PFRS), which are collectively referred to as the New York State and Local Retirement System (the System). The net position of the System is held in the New York State Common Retirement Fund (the Fund), which was established to hold all net assets and record changes in plan net position allocated to the System. The Comptroller of the State of New York serves as the trustee of the Fund and is the administrative head ofthe System. System benefits are established under the provisions of the New York State Retirement and Social Security Law (RSSL). Once a public employer elects to participate in the System, the election is irrevocable. The New York State Constitution provides that pension membership is a contractual relationship and plan benefits cannot be diminished or impaired. Benefits can be changed for future members only by enactment of a state statute. The City also participates in the Public Employees' Group Life Insurance Plan (GLIP), which provides death benefits in the form oflife insurance. The System is included in the state's financial report as a pension trust fund. That report, including information with regard to benefits provided, may be found at www.osc.state.ny.us/retire/publications/index.php or obtained by writing to the New York State and Local Retirement System, I l0 State Street, Albany, New York 12244. The System is noncontributory except for employees who joined after July 27,1976,who contribute 3% of their salary for the first ten years of membership, and employees who joined on or after January I , 201 0, who generally contribute 3.0 to 3.5%:o of their salary for their entire length ofservice. In addition, employee contribution rates under ERS Trer VI vary based on a sliding salary scale. For ERS, the Comptroller annually certifies the actuarially determined rates expressly used in computing the employers' contributions based on salaries paid during the System's fiscal year ending March 3 1. Summary of Signilicant Accounting Policies The System's financial statements from which the System's fiduciary respective net position is determined are prepared using the accrual basis ofaccounting. System member contributions are recognized when due and the employer has a legal requirement to provide the contributions. Benefits and refunds are recognized when due and payable in accordance with the terms of the Plan. Investments are reported at fair value. For detailed information on how investments are valued, please refer to the System's annual reports. 3r 58 Note 8 CITY OF ITHACA NOTES TO FINANCIAL STATEMENTS DECEMBER 3I,2O2I Pension Obligations - New York State and Local Employees' Retirement System (ERS) (PFRS) - Continued Contributions The City's contributions for the current year and two preceding System years were equal to 100% of the contributions required, and were as follows: 2021 2020 2019 $ 2,306,52s 2,961,388 $ 2,091,1 l9 2,649,259 $ 2,048,507 2,ss9,719 Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions At December 3 l, 202 I , the City reported the following liability for its proportionate share of the net pension (asset)/liability for the System. Net pension (asset)/liability was measured as of March 31,2021. The total pension liability used to calculate the net pension (asset)/liability was determined by an actuarial valuation. The City's proportionate share of the net pension (asset)/liability was based on a projection of the City's long-term share of contributions to the System relative to the projected contributions of all participating members, actuarially determined. This information was derived from a report provided to the City by the System. ERS PFRS Actuarial Vabation Datc April l, 2020 April I, 2020 Net Pension (Asset),/Liabflity C ity's Proportionate Sharc Plan's Total Net Pension (Assct)/Liability $99,573,957 5 5 165 0.0556019% $ t,736,275,954 5,011,594 0.2888640% For the year ended December 31, 2021, the City recognized pension expense of $ I,213,156 and $2,500,964 for ERS and PFRS, respectively, in the financial statements. 32 ERS PFRS 59 Note 8 CITY OF ITHACA NOTES TO FINANCIAL STATEMENTS DECEMBER 3I,2O2I Pension Obligations - New York State and Local Employees' Retirement System (ERS) (PFRS) - Continued Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions - Continued At December 31,2021, the City reported defened outflows of resources and deferred inflows ofresources related to the pensions from the following sources: ERS PFRS Defened Outflouc of Resourtes Differences Between Expected and Actual Experierre Changes of Asswrptions Net Differences Between Projected and Acnul Earnings on Persbn Phn lnvestnrcnts Changes in Proportbn arxl Differences Between the City's C ontrbntions and Proportionate Share of Contrbutiors City's Contrbubns Subseqrnnt to the Measurenrnt Date Total Deferred Outllorm of Resources $ 12,597,088 $ 15,649,711 $ 676,157 I 0, I 79,841 $ 1,1i2,046 12,3t2,946 Deferred InIIorm of Resourres Differences Between Expected and Actual Experience Changes of Assunptions Net Differerres Between Projected and Actual Eamings on Pension Plan InvestnEnls Changes in Proportbn and Differences Between the City's C ontrbutions and Proportionate Share ofC ontributiors Total Deferrtd Infloran of Resources 98,774 1,642,316 2,741 2,221,978 $ l 9l ,995 15,904,093 14,736,300 268.785 798,591 $ 16,364,873 _sl!f!1f21_ $ 33 60 Note 8 CITY OF ITHACA NOTES TO FINANCIAL STATEMENTS DECEMBER 3I,2O2I Pension Obligations - New York State and Local Employees' Retirement System (ERS) (PFRS) - Continued Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions - Continued City contributions subsequent to the measurement date, reported as deferred outflows of resources, will be recognized as a reduction of the net pension (asset)/liability in the year ended December 31,2022. Other amounts reported as defened outflows of resources and deferred inflows ofresources related to pensions will be recognized in pension expense as follows: YearEnding ERS PFRS 2022 2023 2024 2025 2026 Thercafter Measwenrnt Date Actuarial Valuation Date Interest Rate Sahry Scale Cost of Living Adjustrrrcnts lnflatbn Rate $ (l,002,060) $ (387,273) (916,970) (3,103,798) (807,87s) (2s2,149) (6s3,3 l6) (2,742,336) 2,348,51 8 Actuarial Assumptions The total pension liability as ofthe measurement date was determined by using an actuarial valuation as noted in the table below, with update procedures used to roll forward the total pension liabiliry to the measurement date. The actuarial valuations used the following actuarial assumptions: ERS PFRS March 3 l, 2021 April l, 2020 5.9% 4.4yo 1.4% 2.7% March3l,2021 April l, 2020 5.9% 6.2% t.4% a 10/L-t /o For ERS and PFRS, annuitant mortality rates are based on April 1,2015 - March 31,2020 System experience with adjustments for mortality improvements based the Society of Actuaries' Scale on MP-2020. The actuarial assumptions used in the April l, 2020 valuation are based on the results of an actuarial experience study for the period April l, 2015 - March 3 l, 2020. 34 61 Note 8 CITY OF ITHACA NOTES TO FINANCIAL STATEMENTS DECEMBER 3I, 2O2I Pension Obligations - New York State and Local Employees' Retirement System (ERS) (PFRS) - Continued Actuarial Assumptions - Continued The long-term rate ofretum on pension plan investments was determined using a building block method in which best estimate ranges of expected future real rates of retum (expected retums net of investment expense and inflation) are developed lor each major asset class. These ranges are combined to produce the long-term expected rate of retum by weighting the expected future real rates of retum by each the target asset allocation percentage and by adding expected inflation. Best estimates of the arithmetic real rates of retum for each major asset class included in the target asset allocation are summarized below: NYSLRS Measurenrnt Date March3l,2021 Asset Type Donrcstic Equitbs Intemational Equities Real Estate Prilate Equities Opportunistic Portfolio/ARC Real Assets Cash Credit 4.1% 6.3% 5.0% 6.8% 45% 6.0% 0.5% 3.6% Discount Rate The discount rate used to calculate the total pension liability was 5.9%. The projection of cash flows used to determine the discount rate assumes that contributions from plan members will be made at the current contribution rates and contributions from employers will be made at statutorily required rates, actuarially. Based on the assumptions, the System's fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of retum on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. 35 62 Note I CITY OF ITHACA NOTES TO FINANCIAL STATEMENTS DECEMBER 3I, 2021 Pension Obligations - New York State and Local Employees' Retirement System (ERS) (PFRS) - Continued Sensitivity of the Proportionate Share of the Net Pension (Asset)/Liability to the Discount Rate Assumption The following presents the City's proportionate share of the net pension (asset)/liability calculated using the discount rate, as well as what the City's proportionate share ofthe net pension (asset)/liability would be if it were calculated using a discount rate that is one percentage point lower or higher than the current rate: ERS 17o Decrease (4.9%) Curre nt Assumption (s.e%) 17o Increase (6.e%) City's Proportionate Share ofthe N et Persion (Asset)/Liability $ 15,367,187 $ l7o Decrease PFRS (4.gyo 5s,36s $ (14,065,718) ) Current Assumption (s.e%) l7o lncrease (6.9%\ Ciry's Proportionate Share of the Net Pension (Asset)/Liability Enployen' Total Pension Liability Plan Net Position Employen' Net Pension (As s et)/Liability Ratio of Phn Net Position to the Enpbyers' Total Persion Liabiliy $ 2t,312,124 $ 5,0r 1,594 $ (8,481,031) Pension Plan Fiduciary Net Position The components ofthe current-year net pension (asset)/liability ofthe employers as ofthe respective valuation dates were as follows: Dollan in Thousands Dollars in Thousands ERS PFRS Vahatkrn Date March 3 1, 202 I March3l.2021 $220,680,157 (220,580,583) 4t ,236,77 5 (39,s00,s00) $ $99,s74 $l,'736,275 99.9% Payables to the Pension Plan For ERS and PFRS, employer contributions are paid annually based on the System's fiscal year which ends on March 31. Accrued retirement contributions as of December 31,2021 represent the projected employer contribution for the period of April l, 2021 through December 31,2021, based on estimated wages multiplied by the employer's contribution rate, by tier. Accrued retirement contributions as of December 31,2021 were $-0-. 36 9s.8% 63 Note I CITY OF ITHACA NOTES TO FINANCIAL STATEMENTS DECEMBER 3I,2O2I Pension Obligations - New York State and Local Employees' Retirement System (ERS) (PFRS) - Continued Current Year Changes Changes in the net pension (asset)/liability and deferred outflows and inflows ofresources for the year ended December 31, 2021 resulted in the following effect on net position: Beginning Balance Change Ending Balance Net Pension Liabilitv Defened Outfl ows of Resources Defened Ilflows of Resources Total PFRS $ (14,989,3e6) $ 10,659,321 (472,163) 14,934,031 $ 1,937,'767 (15,892,710) (55,365) 12,59',7,088 (16,364,873) $ (4,802,238) $ 979,088 _!_Q,823,1s!)- Beginning Balance Change Ending Balance Net Pension Liability Deferred Outflows of Resources Defened Inflows of Resources Total $ (16,694,127) 12,060,008 (647,873\ $ 11,682,533 $ 3,589,703 (14,887,018) (5,011,s94) 15,649,7 tl ( 15,534,891) $ (s,281,992) $ 38s,218 $ (4,896,774 Note 9 Short-Term Debt Liabilities for bond anticipation notes are generally accounted for in the Capital Projects Fund to finance capital projects. Principal payments on BANs must be made annually. 37 ERS State law requires BANs issued for capital purposes be converted to long{erm obligations within five years after the original issue date. However, BANs issued for assessable improvement projects may be renewed for periods equivalent to the maximum life of the permanent financing, provided stipulated annual reductions ofprincipal are made. 64 CITY OF ITHACA NOTES TO FINANCIAL STATEMENTS DECEMBER 3I, 2021 Note 9 Short-Term Debt - Continued Summary of Bond Anticipation Notes As of December 31, 2021, the bond anticipation notes, including issue and maturity dates and interest rates, consisted of the following: Description of Iss ue Year of Issue lnterest Rate Payable to Maturity City of Ithaca Public Inprovenrnt Public Inprovenrnt 2021 2021 2021 2021 2022 2022 2022 2022 1.00% 150% 1.00% t.s0% $ 4,720,903 t0,832,643 15,553,546 234,237 -U!lqZ4L $ 102,68s 4,274,675 $ 4,377,360 Subtotal Bond Antic ipation Notes Unannrtized Premium Total City of Ithaca Bond Anticipation Notes IAWWTP Waste Water InprovenEnt Waste Water InprovefiEnt Interest on short-term debt for the year ended December 31, 2021 is as follows: Interest Paid [-ess: Interest Accrued in the Prior Year Pts: Interest Accrued in the Cunent Ycar [,ess: Armrtization of BAN Prcmium $ 553,501 (410,273) 41,365 (3 8,14s) Note l0 Total $ 146,448 Long-Term Debt and Liabilities At December 31 , 2021 , the total outstanding indebtedness of the City, not including the debt of the IAWWTP aggregated $120,571,768. Of this amount, $83,474,507 was subject to the constitutional debt limit and represented approximately 59Yo of its debt timit. 38 Final M aturity Total IAWWTP Bond Anticipation Notes 65 CITY OF ITHACA NOTES TO FINA}ICIAL STATEMENTS DECEMBER 31,2O2I Note 10 Long-Term Debt and Liabilities - Continued Serial Bonds The City borrows money in order to acquire land or equipment or construct buildings and improvements. This enables the cost ofthese capital assets to be bome by the present and luture taxpayers receiving the benefit of the capital assets. These long-term liabilities, which are full faith and credit debt of the local govemment, are recorded in the Statement of Net Position. The provision to be made in future budgets for capital indebtedness represents the amount exclusive ofinterest, authorized to be collected in future years from taxpayers and others, for the liquidation ofthe long{erm liabitities. Statutory Installment Bonds are sometimes issued directly with a financial institution or investor and are not offered for public sale. There are no terms that present additional risk to the City associated with these direct borrowings or placements. Other Long-Term Debt and Liabilities In addition to the above long-term debt, the City had the following non-current liabilities Compensated Absences - Represents the unfunded value ofthe liabiliry for compensated absences and is liquidated in the General, Water, Sewer, and Refuse and Garbage Funds. Lease Obligations Payable - Represents the amount outstanding on a capital lease for energy improvements. The gross amount of assets in the Statement of Net Position recorded under capital leases is $4,7 46,465, which is recorded under buildings. The associated accumulated amortization, which is reported in depreciation expense, ofthese assets, is $2,137,496. Lease obligations are liquidated in the General Fund. Changes in Indebtedness and Other Long-Term Liabilities The following is a summary ofchanges in the City's indebtedness and long-term liabilities for the year ended December 3 I , 2021 : a a Description Balance December 31, 2020 M aturitie s/ Paym€ nts Due Within C)ne Year Gerrral Obligatbn atd Stahxory InstalhrEnt Bods Premiun Total Bonds Defened Charges BANs Unarnrtized Premfun TotalBANS 99.113,200 r 3,896,574 s (8,196,232) $103,001,900 t,285,709525.933 104,287,609 S 9',7 ,661,r t9 1,452.081 s 13,537,0 r3 359,561 $ 6,571,003 t66,312 6,737,375 (1,195,319) (135,562) 2s7,333 (1.07i.548)(l2l,771) 22,817,t57 272,382 15,553,546 234,237 (22,817,ts7)r5,553,546 15,553,546 72 82 234 231 t)+231 23,089,539 r5,787,783 (23,089,539)15,787,783 15,787,783 trase Obtrgations Payabh Conpensated Absences ?ol (a) 3,196,061 104,373 (291,t66\496,37 6 3,300,434 306,161 ]r9922 $ 29,653,168Totals 121,997.023 39 $ (31,851,s37)_9____.1:2J2!q s 22,830,076 New Issues/ Additions Balanc€ December31,2021 (8,722,16s) 66 CITY OF ITHACA NOTES TO FINANCIAL STATEMENTS DECEMBER 3I, 2O2I Note l0 Long-Term Debt - Continued Summary of Serial Bonds As of December 31,2021, serial bonds, including issue and maturity dates and interest rates, consisted of the following: Description of Issue Date of Issue Inte re s t Rate Payable to Maturity 20 l3 Publb I(proverrEnt 201 3 Public krprovenrcnt 20 14 Refi.nrding Bonds 201 6 Public Inprovenent 20 l6 Public krproverrrcnt 2017 Refi-urding Bonds 201 8 Public Inprovenrnt 2019 Publb Inprovenrnt 20 I 9 Public Inprovenpnt 202I Public Inprovenrnt 2021 Reftnding Bonds Subtotal Bonds Premium IAWWTP Phosphorous Renrolal Inprovenrnts Enerry Upgades Septage Inprovenrnts Energ, Upgra.des Enerry Upgrades Enerry Inproverrrnts 2017 Refurding Bonds 20 I 9 Public Inprovenpnt 201 9 Public Inprovenrnt 2021 Public Inprovenent Subtotal Bonds Premium 2013 2013 2007 2016 20t6 2017 201 8 2019 2019 2021 2021 2005 2013 2016 20t6 2016 20t6 2017 2019 2019 2021 3.00% 2.00% 4.13% 1 1<O/- 2.00% 1.06% 3.00% 2.2s% 2.2504 12s% 2.00% $ 10,469,830 40,000 4,885,000 12,046,080 12,909,000 13,451,107 16,285,000 5,456,960 t3,926,910 11,542,013 1,990,000 103,00 I ,900 1,285 709 2035 2037 2046 2046 2046 2043 2034 2045 2036 2047 33s% 3.00% 2.25% 2.2s% 2.25% 2.00% t.06% 2.25% t.25% $ 1,230,000 2,245,170 2,758,040 1,391,370 334,5 t 0 2,591 ,000 533,893 3,383,040 398,090 7,126,984 21,992,09'.7 28,388 IAWWTP Total Bonds 40 $ 22,020,485 Total Bonds Final M aturity 2037 2023 2025 2046 2043 2034 2038 2045 2036 2047 203s $ 104,287,609 67 Note 10 CITY OF ITHACA NOTES TO PINANCIAL STATEMENTS DECEMBER 3I,2O2I Long-Term Debt - Continued Summary of Serial Bonds - Continued On March 16, 2017 , the City issued $ 18,860,000, of general obligation bonds, with interest rates ranging between 1.06%o and 4.19o/o, pursuant to a Refunding Bond Resolution duly adopted by the Council on January 4, 2017.The City issued the bonds to advance refund $17,893,600 ofthe outstanding balance ofthe 2008,2009, and 2010 serial bonds with interest rates of 3.75% to 6.750/o. The City used the net proceeds along with other resources to purchased U.S. govemment securities. These securities were deposited in an irrevocable trust to provide for all future debt service on the refunded portion ofthe bonds. As a result, the $17,893,600 in bonds is considered defeased and the liability has been removed from the financial statements. The outstanding principal of the defeased bonds was $575,400 at December 3l ,2021 . Additions and deletions to compensated absences are shown net, as it is impractical to determine these amounts separately. Debt Maturity Schedule The following table summarizes the City's future debt service requirements as of December 31,2021: Year Ending December 31,Principal Inte re s t Bonds 2022 2023 2024 2025 2026 2027-203t 2032-2036 2037-2041 2042-2046 2047 2007 Enerry IrprovenE nts Watcr Metcr Replacenrnt $ 6,57 r ,003 6,875,173 6,392,008 6,478,733 5,356,3 l0 24,613,723 25,152,960 12,782,510 8,275,770 s03 7t0 $ 2,94t,924 2,631,664 2,426,147 2,246,994 2,082,375 8,332,372 4,85t,720 t,977 ,045 589.768 5 037 Total $ 103,001,900 $ 28,085,046 The following is a statement of lease obligations payable with corresponding maturity schedules. Date of Is sue Inte re st Rate 4.03% 2.68% Payable to M aturity S 122,108 374,268 2007 2009 Total 41 s 496.376 Description of Issue Final M aturitv 2022 2023 68 Note l0 CITY OF ITHACA NOTES TO FINANCIAL STATEMENTS DECEMBER 3T,2021 Long-Term Debt - Continued The following table summarizes the City's future lease obligation requirements as of December 3 1, 2021 : Year Ending Dece mbe r 3l, Ca Lease Inte r€ st 2022 2023 $ 306.767 189.609 $ 13,740 5,085 Total $ 496,376 $ 18,825 The following table summarizes the future debt service requirements of the Wastewater Treatment Plantjoint venture, less interest subsidies, as of December 31,2021: Year Ending December 31,Principal Interest Bonds 2022 2023 2024 2025 2026 202'.7-203t 2032-2036 2037-2041 2042-2046 2047 752,994 839,827 857,992 881,267 908,690 4,481,2',77 4,882,040 4,182,490 3,864,230 341,290 s90,6t4 515,855 495,722 474,526 452,186 1,941,765 1,413,952 818,039 277,943 3,4t3 $$ Total $ 21,992,,097 $ 6,984,0t5 Interest on long-term debt for the year ended December 31,2021 is as follows lnterest Paid lrss: Interest Accrued in the Prbr Year Phs: Interest Accrued in the Current Year Phs: Armrtization of Deferred Arrpunts kss: Anrcrtization of Premiurn $ 3,178,686 ( l , 190,782) t,t'71,571 257,333 (52s,933) Total 42 $ 2,890,87s Principal 69 CITY OF ITHACA NOTES TO FINANCIAL STATEMENTS DECEMBER 3I, 2021 Note I I Postemployment Benefits Other Than Pensions (OPEB) General Information about the OPEB Plan Plan Description - The Ciry's defined OPEB plan provides medical benefits to eligible retirees and their spouses in accordance with various employment contracts. The plan is a single employer defined benefit healthcare plan administered by the City. Article I I ofthe State Compiled Statutes grants the authority to establish and amend the benefit terms and financing requirements to the Common Council. No assets are accumulated in a trust that meets the criteria in paragraph 4 of GASB Statement No. 75. The Plan does not issue separate financial statements, as there are no assets legally segregated for the sole purpose ofpaying benefits under the plan. Benefits Provided The City provides healthcare benefits for eligible retirees and their spouses. Benefit terms are dependent of which contract each employee falls under. The specifics ofeach contract are on file at the City offices and are available upon requests. Employees Covered by Benelit Terms At December 3l ,2021,the following employees were covered by the benefit terms. Inactivc Enployecs or Beneficiaries Currently Receiving Benefit PaynBnts Inactive Enployees Entitled to But Not Yet Receiving Benefit Paynrcnts Active Enployecs 291 389 Total Total OPEB Liability The City's total OPEB liability of$245,768,936 was measured as ofJanuary 1,2021, and was determined by an actuarial valuation as ofthat date. Actuarial Assumptions and Other lnputs The total OPEB liability in the January 1,2021 acfiarial valuation was determined using the following actuarial assumptions and other inputs, applied to all periods included in the measurement, unless otherwise specified: 680 l.ong-Term Bord Rate Single Discount Rate Sahry Scale Dental Trend Rate Marital Assunption Heahh Care Trerd Rate 2.r2% 3.00% 4.00o/o 70.00% 6 .00% br 2021 , decreasing to an uhinste rate of3.94% in 68 years. 43 70 CITY OF ITHACA NOTES TO FINANCIAL STATEMENTS DECEMBER 3I,2O2I Note I I Postemployment Benefits Other Than Pensions (OPEB) - Continued Total OPEB Liability - Continued The discount rate is based on Bond Buyer Weekly 20-Bond Go Index. Mortality rates were based on the Scale MP-2014 and projected forward with Scale MP- 2021 (generational mortality) published by the pension mortality study released by the Society of Actuaries. Termination rates were based on the experience under the New York State and Local Retirement System. Retirement rates are based on the experience under the New York State and Local Retirement System. The actuarial assumptions used in the January 1,2021 valuation were consistent with the requirements of GASB Statement No. 75 and Actuarial Standards of Practice (ASOPs). Total OPEB Liability Balance at December 31, 2020 Changes for the Year Service Cost Interest Cost Changes ofBerrfit Terns Differences Between Expected and Actual Experbnce Changes in Assunptkrrs or Other lrpr-ls Benefit Paynents 8,869,105 5,951,27 5 25,2t8,630 (s, r 33,982) 34,905 028 Balance at December 31, 2021 $ 245,768,936 Sensitivity of the Total OPEB Liability to Changes in the Discount Rate The following presents the total OPEB liability of the City, as well as what the City's total OPEB liability would be if it were calculated using a discount rate that is one percentage point lower or higher than the current discount rate: l7o Decrease (1.12%) Discount Rate (2.12%) 17o Increase (3.12%) $ 296,012,822 $ 24s,768,936 $ 206,915,989 Changes of assumptions and the inputs reflect a change in the discount note from 2.74Yo at the measurement date ofDecember 31, 2020 to 2.12%o at December 31, 2019. 44 $ 210,863,908 71 CITY OF ITHACA NOTES TO FINANCIAL STATEMENTS DECEMBER 3I.2OZI Note I I Postemployment Benefits Other Than Pensions (OPEB) - Continued Total OPEB Liabilitv - Continued Deferred Outflows of Resources Diferences Between Expected ard Actrml Eperience Changes in Assunpirons or Other Irputs Confrbutiors Subsequent to MeaswenEnt Date S Sensitivity of the Total OPEB Liability to Changes in the Healthcare Cost Trend Rate The following presents the total OPEB liability of the City, as well as what the City's total OPEB liability would be if it were calculated using a healthcare cost trend rate that is I percentage point lower higher than the current healthcare cost trend rate: 17o Decrease Healthcare Cost Trcnd Rate l7o Incre ase $ 200,s75,296 $ 24s,768,936 $ 306,244,717 OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB For the year ended December 31, 2021, the City recognized OPEB expense of $ 18,887,65s. At December 31,2021, the City reported deferred outflows of resources and deferred inflows ofresources related to OPEB from the following sources: Total Deferred Inllows of Resourtes $7,74r,745 l1,l16,55244,925,201 5,510,566 $ 50,435,767 $ 18,858,297 Amount $ 4,049,s05 4,049,505 4,0t9,220 s,136,150 6,1s0,307 2,662,217 City contributions subsequent to the measurement date, reported as deferred outflows of resources, will be recognized as a reduction of the net OPEB liability in the year ending December 31,2022. Other amounts reported as deferred outflows of resources and deferred inflows ofresources will be recognized in OPEB expense as follows: Fiscal Year Ending December 31, 2022 2023 2024 2025 2026 2027 arvl Thereafter 45 72 CITY OF ITHACA NOTES TO FINANCIAL STATEMENTS DECEMBER 31,2021 Note I I Postemployment Benefits Other Than Pensions (OPEB) - Continued Current Year Changes The following is a summary of current year activity Beginning Balance Change Ending Balance OPEB Lbbility DeGned Ourflows of Resources Deferred Infows of Resources $ (2 10,863,908) 34,564,518 (24,s14,986) $ (34,90s,028) 15,871,249 5,656,689 $ (245,768,936) 50,435,767 (18,858,297) Note 12 Total $(200,814,376) $ (13,377,090)_$_cg,!2t4gr Interfund Receivables and Payables During the course ofnormal operations, the City has numerous transactions befween funds including expenditures and transfers ofresources, primarily to provide services, which are routine annual events for the budget and accounting process. Interfund receivables and payables at December 31, 2021 were as follows Interfund Receivables Inte rfund Payables Interfund Revenue lnterfund Expe ns e General Fund Capital Projects Fund Non-Major Fr.nds Total $ 1,904,664 1,727 ,3t4 10,466,3 I 3 $ 8,249,631 3,874,t72 1,974,488 $$ 30.000 30.000 $ 14,098,291 $ 14,098,291 _I__4q9_$ 30,000 46 73 CITY OF ITHACA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2021 Note 13 Fund Equity Fund Balances - Fund Balance Detail At December 31, 2021, fund balance in the govemmental funds was comprised of the following: General Fund Special Grant Fund Capital Projects Fund Non-Major Governmental Funds Nonspendable Prepaid Expenses Inventory Permanent Fund Balance Restricted Capital Reserves Unspent Grant Funds Miscellaneous Debt Total R€stricted Fund Balance Assigned Encumbered for: General Govemment Public Safety Transportation Cultwe and Recreation Home and Community Services Assigned for Insurance Assigned for Workers' Compensation Assigned for Refuse and Garbage Deficit Assigned for Occupancy Tax Remaining Fund Balance: Capital Projects Transportation Home and Community Services $ 366,164 $ 1,705,785 $ $ 1,040.995 S 406,1l0 S s 153,562 890,820 52,045 $ 1,447,10s $ $ 366,164 S $ 4,218,193 ,, 1<1 3,68 r,588 $ 1,705,785 $ t,726,127 $ 566,049 86,666 98,061 494,324 I ,75 1,061 100,000 s09,934 710,005 S $ $ 7,922,134 t,269,199 5,468,347 17,058,81 1 $ 6,042,227Total Assigned Fund Balance 47 $$ 17,058,811 $ 6,737,546 Total Nonspendable Fund Balance $ 1,096,427 S 74 CITY OF ITHACA NOTES TO FINANCIAL STATEMENTS DECEMBER 31,202I Note 13 Fund Equity - Continued Reconciliation Between Restricted Fund Balance and Restricted Net Position Restricted fund balances and restricted net position differ because loans receivable in the Special Grant Fund are deferred in the fund financial statements and reported as restricted in the Statement of Net Assets. Additionally, fund balance in the Permanent Fund is reported as restricted, nonexpendable in the Statement of Net Position and nonspendable in the fund financial statements. Restricted Fund Balance in the Fmd Financial Statenrnts I-oam Receivable in the Special Grant Fund Pernarrcnt Frnd Balarrce Assigned lor capital projects, less Lnnpent debt Purpose Stewart Park Landscaping Stewart Park Carousel Rick Gray Memorial $ 9,994,083 6,34'7,332 50,245 6,034,887 Restricted Net Position in the Government-Wide Financial Statements $ 22,426,547 Note 14 $ 22,353 Joint Ventures The following is the activity undertaken jointly with another municipality. Except for their equity interest in the joint venture, this activity is excluded fiom the financial statements ofthe participating municipalities. Separate financial statements are issued for this joint venture and may be obtained from their administrative office. 48 Miscellaneous Fund Equity Fund equity for the Miscellaneous Fund includes funds established for the following purposes: $ 20,171 t,597 585 Total 75 CITY OF ITHACA NOTES TO FINANCIAL STATEMENTS DECEMBER 31,2021 Note 14 Joint Ventures - Continued Tompkins Consolidated Area Transit (TCAT) TCAT was formed under a consolidation agreement between the City, Tompkins County, and Comell University effective April l, 1998. The agreement shall remain in force until October 9, 2021. TCAT began operations on January l, 1999, with its purpose to provide public transportation in Tompkins County and surrounding areas. As of January 1,2005, TCAT was reorganized as a $501(c)(3). However, the structure ofthe Board of Directors, and the interest of each party was not changed. Significant provisions of the agreement are as follows: TCAT is govemed by a Board of Directors (Board) consisting of nine voting members with three members being appointed by each participant in the venture. The General Manager of TCAT is a non-voting ex-officio member of the Board. In addition, the nine voting members of the Board select five additional non-voting, ex-officio members. Interest ofeach party in surpluses, losses, property, and debt acquired by TCAT shall be shared equally. Each party makes an annual contribution ofequal amounts to the venture. The Ciry's contribution for 2021 was $1,325,492. The financial statements of TCAT are audited annually and may be obtained from their administrative office. The following is an audited summary of financial information included in financial statements for thejoint venture as ofDecember 31,2021: Year Ended December31,2021 a a a Total Assets Total Liabfties Joint Vcnhre Equity Total Revenues Total Expenscs 39,34s.124 1 0,943,1 85 28,401,939 21,152.302 18,275,832 S 49 Ithaca Area Wastewater Treatment Plant The following is an activity undertaken jointly with other municipalities. The financial statements of the Ithaca Area Wastewater Treatment Plant may be obtained from their administrative office. 76 CITY OF ITHACA NOTES TO FINANCIAL STATEMENTS DECEMBER 3I, 2O2I Note 14 Joint Ventures - Continued Ithaca Area Wastewater Treatment Plant - Continued The City and Towns of Ithaca and Dryden jointly own the Ithaca Area Wastewater Treatment Plant. The venture operates under the terms of an agreement dated 198 I . The agreement is for a period of 25 years. An updated agreement was signed in 2003 and remains in effect until 2035, the year debt associated with phosphorous removal is paid off. Significant provisions ofthe agreement are as follows: The Boards ofeach municipality jointly act as the goveming body for thejoint venture. Debt for capital cost is issued by each participant in the following ratios:a City oflthaca Town oflthaca Town ofDryden s7.14% 40.88% 1.98% Debt issued by the City for the joint venture is shown in Notes 9 and 10. The goveming body has established charges at rates intended to be self-sustaining to cover all operating costs and debt service. Any shortfall in revenues produced by such charges is to be provided by equal share contributions from the participants. The following is an audited summary offinancial information included in the basic financial statements issued for the joint venture: Year Ending December 31, 2021 Total Assets Deferred Outflows of Resoruces Total Liabfties Deferred Inflows of Resources Joint Ventue Equity Total Revenues Total Exp end itures S 38,336,983 1,426,519 30,843,716 I ,13 1,033 7,788,'753 6,960,868 6,905,294 Note 15 Public Entity Risk Pool Risk Financing The City participates in a Plan sponsored by the Tompkins County Greater Tompkins Health Consortium. The Plan's objectives are to formulate, develop, and administer a program of insurance to obtain lower costs for that coverage, and to develop a comprehensive loss control program. Plan members are subject to a supplemental assessment in the event ofdeficiencies. Ifthe Plan's assets were to be exhausted, members would be responsible for the Plan's liabilities. 50 77 CITY OF ITHACA NOTES TO FINANCIAL STATEMENTS DECEMBER 3I, 2O2I Note I5 Public Entity Risk Pool - Continued Risk Financing - Continued The Plan establishes a liability for both reported and unreported insured events, which includes estimates of both future payments of losses and related claim adjustment expenses. However, because acfual claims costs depend on complex factors, the process used in computing claims liabilities does not necessarily result in an exact amount. Such claims are based on the ultimate cost of claims (including future claim adjustment expenses) that have been reported but not settled and claims that have been incurred but not reported. Adjustments to claims liabilities are charged or credited to expense in the periods in which they are made. During the year ended December 3 I , 2021, the City incurred premiums or contribution expenditures totaling $12,016,286. Plan financial statements may be obtained from the Greater Tompkins County Municipal Health Insurance Consortium, at 125 East Court Street, Ithaca, New York, 14850. General Information The City is exposed to various risks of loss related to, but not limited to, torts; theft of, damage to, and destruction ofassets; injuries to employees; errors and omissions; natural disasters. These risks are covered by commercial insurance purchased from independent third parties. Settled claims from these risks have not exceeded commercial insurance coverage for the past three years. Judgments and Claims The City and/or its agencies are named in several lawsuits, some of which are for substantial amounts. Most of these claims are either adequately covered by insurance or, in the opinion of City officials, will not result in material judgments against the City or will not be pursued and, therefore, are not expected to have a material effect on the basic financial statements- State and Federally Assisted Programs The City receives many different state and federal grants to be used for specific purposes. These glants are generally conditioned on compliance with certain statutory, regulatory and,/or contractual requirements. The City makes every effort to comply with all applicable requirements. However, because these grants are audited from time to time, it is possible that the City wi[ be required, upon audit, to repay portions ofthe grant monies received and recorded as revenue in a prior year. City officiats do not anticipate material grant-in-aid disallowances, and no provision, therefore, is reflected in the basic financial statements. Other Contingencies As described in Note 14, the City is a partner in TCAT, ajoint venture, and shares equally in surpluses or losses. The City may, in the future, be required to provide additional resources to finance its share ofany operating deficits ofTCAT. However, that amount, if any, for the year ended December 3 l, 2021 is undeterminable as of this report date. 5l 78 CITY OF ITHACA NOTES TO FINANCIAL STATEMENTS DECEMBER 3I.2O2I Note 16 Letter of Credit Under its third-parry agreement for workers' compensation, the City is required to maintain a $525,000 lefter of credit as collateral for payment of workers' compensation obligations. At December 31 ,2021, the City had not utilized this letter ofcredit. Note 17 Tax Abatement For the year ended December 3 I ,2021, the City was subject to tax abatements negotiated by the Tompkins County Industrial Development Agency (TCIDA), and the City of Ithaca, New York. Under TCIDA, companies from outside the City can apply for sales tax exemptions under eligible spending related to relocating to the City. Companies accepted into the program document sales tax paid on eligible spending and receive a rebate up to a maximum of 100%. Through this program, companies promise to expand or maintain facilities or employment in the City, to establish new business in the City, or relocate an existing business to the City. Economic development agreements entered into by TCIDA can include the abatement of county, local, and school district taxes. In this case, negotiated abatements have resulted in reduction of property taxes, which TCIDA administers as a temporary reduction in the assessed value of the property involved. The abatement agreements stipulate a percentage reduction of properry taxes, which can be as much as t00%. Information relevant to disclosure of the program for the year ended December 31,2021 is as follows: Tax Abaternent Program Armunt of Taxes Abated Economic Development Real Propcrty Tax $ 585,963 Total $ 58s,963 The City entered into a properry tax abatement agreement with local businesses under Chapter 535 ofthe l97l Laws ofNew York State for the purpose ofencouraging economic growth. Under the Act, localities may grant property tax bills for the purpose ofattracting or retaining businesses within their jurisdictions. The abatements may be granted to any business located within or promising to relocate to the City. Under this program, the City abated taxes to the following entities: Ithaca West Village LP and ISN Housing Development Fund Co. The amount of taxes that would have been paid was $237,948. The amount oftaxes abated was $ 140,900. <,79 Note 18 Note 19 CITY OF ITHACA NOTES TO FINANCIAL STATEMENTS DECEMBER 3I,2O2I Subsequent Events Every year the City routinely issues debt to fund capital projects and to repay principal on outstanding bonds and bond anticipation notes, which includes the funding of the City's capital projects. There were no additional issuances ofdebt subsequent to the date ofthis report, other than routine renewals and capital projects. Restatements During the year ended December 31,2021 the City reviewed the balances that had previously been accounted for in the custodial fund, and determined that several of those balances should be reported as liabilities in the General Fund. Restatements to the Net Position ofthe Custodial Fund were as follows: Custodial Fund Net Position Beginning of Year $ 774,821 Balances nroved to General Fuurd Liabilities (763,940) Net Position Beginning of Year, as Restated $ 10,881 s3 80 CITY OF ITHACA BUDGETARY COMPARISON SCHEDULE GENERAL FUND. NON-U,S. GAAP BUDGET BASIS FOR THE YEAR ENDED DECEMBER 3I, 2021 Original Budget Final Budget Actual Variance Encumbrances Fav.(Unfav.) RE!'ENUES Real Property Taxes Real Property Tax ltens Nonproperty Tax Iten6 Depafifirntal kponE Intgrgoverff rEntal Charges Use of Morey ard Properry Licerues and Permits Fines ard For€irures Sah ofProperty and Corpensation for l.oss Mbcelhneous local Sor-nces Interfinl Revenues Statr Sources Federal Souces EXPENDITIJRES Curlent General Govennrrntal Slpport Public Saftty Tmnsportation Economic Assbtarce ard Opporturity Culture and Recreation Honrc ard Conrnmity Serviccs Enplolee Berefs Debt Service Princbal ard lnterest Total Expenditures Excess ofRevenues ( Expeditures) OTHER FINA\CING SOURCES (USES) Interfmd Tran-sfeN (O ut) Total Other Financing Sourres Excess of Revenues and Other financing Sourres Oyer (Expenditures) ard (Xher Financing (Uses) Appropriated Fund Bahrrces Net Change in Fund Bal.nce Furd Balance, Begirming ofYear $ 26,384,57t 1,055,000 t 4,232,8',7 I s 26,384,57t t,055,000 15,145,035 $ 26,333.6',72 r,370,108 s (50,899)S 3 r5,108 17,487.850 2,342,815 (907,303)4,450,438 4,248,466 360,000 3,057,300 780,000 243,400 4,492,438 4,323,410 360.000 3.585.135 4,206,318 (117,r52 (96,755) 3,057,300 t.942,892 (I, r 14,408) 780,000 578,939243,400 56'1,341 (20r,061) 2. 1,16,086 1)1q4t 658'35l1,4'12,135 t,481,'135 2,075,886 2,075,886 2,919,226 3,711,120 |,925,88't 4,047,180 ( 149,999 336,06033,1.000 562,536 t,504,519 941,983 61,613,893 63,6^18,491 65,959,172 2,280,68l 6.691.185 t4.392,175 5.842.900 6t,000 8,629,488 5,083,732 1,726,12'1 1.8r9,629 14,037,285 5.7 t6.909 13,930,686 566,049 5,662,094 86,666 (459,4s0) (3r,851) 725,8l4 494,',700 I I t,29498,0616,250,829 1,930,r36 t9,r48,758 6,369,883 2.134,3'7 4 20,056,633 6,r60,528 3,035,260 18,174,935 494.324 (1,395,2r0) 1,881,698 'l,266,910 6r,s83,893 7,353,683 7,t58,532 l95,l5l 65.5 18.769 ) o'71 )),2,615,961 30,000 (1,840,278)6,02',7.591 (2,97 t,221)4,896,642 (30,000) (30,000)(30,000) (30,000) (30,000)(30,000) ( 1,n70,278) 5,997,591 $ (2,971,221)$,r,896,6,12 1,870,278 5.99'7,591 10,54'7,949 $ 16.545,540 See Notes to Required Supplementary Information $$ Fund Balance. End of Year 54 Total Reverlues 81 CITY OF ITHACA 2021 2020 2019 20t6 2015 2014 20r 3 2012 'Iiltal OPEII l,iahilitv Service Cost Interest Cost Changes of ttenefit Terrm Differemes Between Expected ard Actual Experbme Clunges in.dssrnptirns or OtlEr Irpus Bcneft Paynrcnts Total OPEII Liabf,ity - tieginnng ofYear Total OPEa Uability - End of Ycar Covered Efipbyee Pa],roll 'l otal OI'UB Liability as a Pon:cnt.gc of Cov€rcd l'aymll $ 5,972,830 7,528,149 $ 7,316.387 6,745.569 $ 6,443,416 $ 7,018,548 $ 8,869,10s s,951,275 25,21E,630 (5,r33,982) (3,084,017) 25,231.606 (5,02S.736) (20,329,168) (4.s63,055) (14,084,498) t 4.6t2,469 (4,29s,291) S $ S S 5$ t lnhmtation is undvailable ond will be present as inlorrnalioh beconres available 9,694,638 l8 |,380,105 s 245,168,936 $ 210,863.908 $ r 9 t,07,1,743 Sr81.380.105 S s 29.325.091 6t 50/. See Notes to Required Supplemenlaryt Information 3.1,90s,028 210,86.1,908 t0.6t9.{12 t 80,24,1.476 ( 10.830.267) l9t,o71,'711 $ llto.244.476 S$ S $ Ss 29,575,819 83tVo $ 29,566.342 113v" $ 24,930,226 S 766% S S *s 1.94%-6.00% 1.OO% 2.50yo 3.94%-6.OOvo 1.00% 2.50% 2.74Y6 3.94%-6.500/. 3.00% 2.50yo 4.toyo f .oo% 2.soyo 3.44yo 55 SCHEDULE OF CHANGES IN THE CITY'S TOTAL OPEB LIABILITY AND RELATED RATIOS FOR THE LAST IO FISCAL YEARS 2018 2011 The foloring is . Summary ofChanges in Assuinptions: Healdrcare Cost Trerd Rales Sabry IrEreases Inflation Rate Discourt llate 82 2021 2020 2014 201-1 2017 CITY OF ITHACA SCHEDULE OF CITY CONTRIBUTIONS NYSLRS PENSION PLANS FOR THE, LAS'T 1O FISCAL YEARS 2019 20llr 2017 2016 Contractually Requted Contrtruirn ERS PFRS Contrbuions in Rehtion to dle Contractuany Required Contrbdion ERS PFRS CitYs Covered - Enpblee Palml ERS PFRS Contrt utions as a Percentage ofCovered - Enpblee Payroll ERS PFRS * InJbrmatiotl Unavailahle $ 2,306,s25 2,961,388 (2.306,525) (2,961.388) 15,480,t 7-3 11,431,112 $2,091.1t9 s 2,649,2s9 2,04n,507 2,559.7 t9 $ 2,029,s00 2,56t.044 (2,029.s00) (2.56r.044) t4.144,2',7 | I I ,447 -677 (2,048,507) (2.s59.7r9) (2,s93,990) (2.442;t 49\ 20t5 (2,493.814\ (2,621,419\ (2,389,638) (2,986.315) (2,091,1 l9) (2.649.2s9) 15,686.054 I I,698,262 (2,032,628\ (2.600,r28) t3,830,377 I I,12t,749 $ 2,032,628 2,600,128 $ 2,593,990 2,442;t 49 $ 2,493.814 2,621,479 $ $2.389,638 $ 2.986,315 $ 14,984,593 11,874,549 t1,549.6t2 t0,995.854 t3, t 46,4s7 10,259,960 I2,9 t6.,126 t 0.16u.980 t4.gyo 25.90 r.3% 22.6% 13.1% 2t.60h t4.t% 22.4% t9.t%r9.0% 25.60/r I8 50/. 2l\.8% 9,312,414 8,0t 4;711 N/A N/A N/,6 N/r' See Notes to Required Supplementary lnfomdtion 56 Contrbution Defciency (Excess) ERS PFRS t4.'tvr 23.40/o 83 CITY OF ITHACA SCHEDULE OF CITY'S PROPORTIONATE SHARE OF THE NET PENSION (ASSETYLTABILITY NYSLRS P[,NSION PLANS F'OR THE YEARS B,ND[,D DECEMB[,R 3I, 2021 2020 2019 2018 201'l 20t6 2015 Citys Proponbrnte Share oflhe Net Pension (Asset)/Liabrity as a Pcrccnlagc ofils Covcrcd-En{rhl,cc Pa}roll Phn l:iduciary Ncl l'osition as a Percemage ofthe Total Pension Lbbliry Police and lirc RetircnEnt System City's tuopoflion ofthe Net Pcnsion (Asselylrability Ernployeesi Retircment S}stcm City's Proporrbn ofthe Net Persion (Asset)/Lbbilily City's Proponionate Share ofthe Nel Pcnsbn (Asset)rliabilfty 0.0556019% s 55J65 14,323,092 o.39yo 99.9yo 0.0556019% $ 14,989,396 15,t46,6r'.l s8.96% 86.4% 0.0552329% s 3,913,4r6 t4,498,522 26.990/. 96j% 0.05322780/o $ t,717,897 13,881,518 t23ao/o 98.2% o.0557287% s 4,968.783 13,6'76,952 36.33yo 94.70/o 0.0540405% s 8,673,649 13,t67,593 65.87% 90.70/. 0.05317 480/" $ 1,815,705 13,083,051 13.89% 97.v/. o,24464040/0 $ 5,011,594 r0,935,767 45.830/" 9s.4"/" 0.2888640% 616,694,121 |,9't7,967 t39.310/. 84.9o/o 0.3 t842050/o $ 5,340,113 I1,564,293 46.lao/o 95.t% 0.3181800% $ 3,216,030 I1,081,828 29.O20/o .q/o 0.3175907% 6,582.550 I l.24l,st0 58.560/" 93.5% 0.3241448% 9,615,003 10,258,884 93.720/0 90.20/o 0.2967564% 806,850 10,263,186 1.960/0 99.00/o Citys Proportx)lEte Share of tlle Nc1 Pcnsion (Assct){-hbility Ci(Ys C overcd-Enpby€e Palaoll During the MeasurerrEnt Period City's Proportronate Share ol the Net Pension (Asse0/Liabilny as a Pcrccntagc ofit-s Corcrcd-Enploycc Payoll Plan liluciary Net Position as a PercenkSe oftlE Tolal Pension Liabfity 'lhc folo$nlg k " Sunmary ofChanges in Assurptions: 2.500/0 4.20% 5.OOyo t.30./" 6.400/0 6.80y. MP-2018 2.500/0 4.200/o 5.00% 1.30% 't.00% 7.00% MP-2018 2.50% 3.800/o 4.50% 1.300/0 '7.00% 7.00./. MP-20t4 2.s0% 3.8t]f/o 4.500/r 1.30% 't.000/i '7.OV/o MP-2014 2.500/0 3.80% 4.50Vo r.l0% '7.O0% '7.O0% M.P-20t4 2.700/o 4.90./o 6.000/0 r.40% '7.50% ?s0% MP-2014 See Notes lo Required Supplementary lnformation 57 CitYs Covered-Enphlre Payrol During the MeasurerErt Peric'd lnfation Sahry lrcreases - ERS Sahry lrErcascs - PFRS Cost of LiirE Adj6lrrErns INrsurEot Rale ofRelum Dbco@t Ralc Socbty ofActuaries' Morhlity Scab 2.700/o 4.40y. 6.200h t.40v. 5.90% 5.gtoa MP-2020 84 CITY OF ITIIACA NOTES TO REQUIRED SUPPLEMENTARY INFORMATION DECEMBER 31, 2021 Note I a a No later than September 1, the budget officer submits a tentative budget to the Common Council for the fiscal year commencing the following January 1. The tentative budget includes proposed expenditures and the proposed means of financing for all funds. Afier public hearings are conducted to obtain taxpayer comments, no later than December 3 l, the goveming board adopts the budget. All modifications ofthe budget must be approved by the goveming board. (However, the Controller is authorized to transfer certain budgeted amounts within departments.) Note 3 Budget Basis of Accounting Except as indicated below, budgets are adopted annually on a basis consistent with accounting principles generally accepted in the United States of America. Appropriations authorized for the current year are increased by the amount of encumbrances carried forward from the prior year. Encumbrances are not considered a disbursement in the financial plan or an expenditure in U.S. GAAP based financial statements. Encumbrances reserve a portion of the applicable appropriation for purchase orders, contracts, and other commitments not expended at year end, thereby ensuring that appropriations are not exceeded. An annual legal budget is not adopted for the Special Grant Fund, which is one of the Special Revenue Funds. Budgetary controls for the Special Grant Fund are established in accordance with the applicable grant agreements. Reconciliation of the General Fund Budget Basis to U.S. GAAP No adjustment is necessary to convert the General Fund's excess of revenues and other sources over expenditures and other uses on the U.S. GAAP basis to the budget basis. Encumbrances, ifpresent, are presented in a separate column and are not included in the actual results at December 3 l, 2021 . Schedules of the City's Proportionate Share of the Net Pension (Asset)/Liability The Schedule of the City's Proportionate Share of the Net Pension (Asset)/Liabiliry, required supplementary information, will present ten years of information as it becomes available from the pension plans. Schedutes of City's Contributions - NYSLRS Pension Plans and Schedules ofthe City's Proportionate Share of the Net Pension (Asset)/Liability NYSLRS Nole 4 Note 5 Note 2 Budgeting Policies Budget policies are as follows: Changes in Benefit Terms There were no significant legislative changes in benefits. 58 85 CITY OF ITHACA COMBINING BALANCE SHEET NON-MAJOR GOVERNMENTAL FUNDS DECEMBER 31, 2O2I s cial Revcnue I,unds Urbrn Rc ncrral Agcncy Misce llaneous Fund Fund Side\ralk lnrpmve rne nt District Fund Debt Sen'i(c Fund Pefirlrna nt Fund Total Non-Major GorcmnEnt l Funds Re filsc end Carbtge Fund StonrrrlEto r Drainrgc Fund ASSETS Cash ard Cash Equivale s - Uffestricted Cash and Cash Equilabnts - Resrbted Due From Other Funds Due From Other GovernrDnts Other Receilables. Net hrrentory Prepaid Expeirses Water Furd s )4,194 t,'t02.529 t.846,163 $ 869.681 2,5r5,664 sSS$ 812.073 $$ 500.625 $$ 2.237 ,17 5 62lt.lr92 4.{r99,80 t,s28.4',7',7 104,307 349.111 3.052.696 10.466.113 80,391 80,391 | .14'l 643 6',73.62',7 23.168 398.079 1.991 226.1t 5 2,4'71,229 7rJ6,79r{104.022 t390.ti20 69.807 4.9't9 153.56218,776 qj,5e6,lqlTotal Asscts LIABILITIES, DEFERRED IN FLOWS OF RESOURCES. AND FUND BAI,ANCES Liabilities Accortr s Payabb Dl,rc lo Othcr F'urds Due to Odrer GoventrIEnls OtlEr Liab iGs Total Liahilitics trurd Balanccs Norspendabb Resrbted Assigned Urrassigred $ 5,841,671 $ 132,454 $ 398,079 $ 832,073 $ 3,587,550 $ 1,076,457 $3,681,588 $ 52.045 $ 21,198,620 $ 36,621 s 22;t8'7 $ 493.963 S 5iS$ 2,313,796 $ 327 $$ 2.867,494 570,315 945.387 119.059 12.000 71.855 717,865 4.555 243.3t7 1.974.481r3,s64 273,0'79 288.643 ti3.447 82 690,-1lt3 865.574 171,829 980,256 671,409 213,0',79 809.720 2,318.35 r 24f ,219 823 (3e5)821.822 5,952,447 4.979 52,045 1.096.42'tt,'t02,529 2,515,664 22-353 1.269.199 833.20tt .1,681.588 '7.922,134 6;111.5462,338,211 2.111,922 125.000 509.934)(509.934 Total Fund Balanccs (Deficit)4.906,320 4,86t.415 504.955) r2s.000 22.153 I.269. t99 833.208 1,68t.588 52,045 t5,246,1',t3 $ l-12,454 $ 391t,079 $ 1i32,073 'I or{l Liabilities, Deferrcd Inllo$$ of Resources, and Fund Balances $ s,s96,703 $ 5,84t,671 59 $ -1,5t7,550 $ 1.076,457 $3,681.s88 $ s2,04s S 21,198,620 Serre r Fund 15R5 t51 86 CITY OF ITHACA COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - NON-MAJOR GOVERNMENTAL FUNDS FOR THE YEAR ENDED DECEMBER 3I.2O2I SFcialRcrcnuc !unds ['und t'und Refuse and Crrtage l'und Urban Agemy Fund Sidenrlk IrnpmvenEnt Miscelhmous District ['und Fund SlormiEt€r Dr$inqge fund Dcbt Service t'und t\lnd lolsl Non-Mrhr Govenlnrent{l Funds REVf,N-uf,S Nonproperty Tax ltenE D€partrYEdal kEonu trnergor€rrlEntal Clurg.s Use ofMoney arxl Property Li:enses ad Permils Sale ofPmperty lnd Conpensarbn for Lss MbcclhrEous lrcal sources Interfi.ud Re\rn*s $5:t5 S s 885,329 S s $$ 885.329 7,406,394 5,309,410 - t7,622 6t 3,108 16,t00 1,362,862 14.707.914 t'7,622 l.ll94 l6 5:l 6.288 23,343 14.485 34,924 10,304 (4,415) '7,230 s8,261 24J89 26,145 5,2',70 1,471.731 5.379,390 611.820 (2.984) 1,455.033 1.362,862 664 t6.:87.56q 5.1{31 LXPI]N DITUR ES Cufient GcDeral Gor€rnrEnlrl Slpport HonE ard Conrruity Services Enployec BerEfitr Debt S€Fic€ Principal Interesl 392,66',7 3,4t4,575 919. t78 60'7,272 I t4.335 462.2-|t 4.269,57(t 951,466 1,513,225 873,385 443.2732.1(.) 197,1394 lil.000634.511r 311,116 69 4,834 4,957 2',72.382 '704,1t4 1,029 'tl 9.:r01,65? 2,298,517 2,406,609 t,'t87,570 15.165 6.709 Totrl Itrt'e nditurts Excess of RewmEs (Expe'dihncs) Total ()lher Finrncing Souncs (tjscs) '7.299.1\94 6.999.970 74:1,4t t]7.837 1.620,580 I I I.a'61 :t0.000 ) 7.tt2.2t4 OTHER FINANCING SOURCES (USES)I erfili TramErs ln Proceeds ofobtgatbns Prcmims oD ObligltbDs PayrE s lo Escrcw Agefl (2.984t 750,919 133,489 (354.7t8) 3.053 (844,645) I.995,000- 59:1.?98 - 591.79n (2.239,t)32) 34ti,ti66 371t,N66 Excess ofRelrnEs ard othe. Fbancmg Sources O\rer (E\perditues) and Other FinarEing (Use, 117,837 l-l[d Ralances, (Dcficir) B€simiflg ,1,72lt.483 (r 0r.66r ) (2,984) (403,294) 125,000 25,33',1 $ (s04,ess) _!_!.?::!99_ _!_13!!!_ 60 (r.620,580) 6.18r,995 _!3S_ (s.8s2) 3,687,440 _!_3!!.!.i39. (465.'t19) t5,71t,952 -$.l5!1!{]_Fud Balances, (Deficit) [nding $ 4,906,320 750.919 5l8.2tto -U2!2:!99- :t11.489 499,1t9 48,992 $ 52,045 4.lrs (654) 'Io(al R€r'€ou€s 355.382 1,995,000 30.000 87 lnsero&co Cstifi ed Public Accounans INDEPENDENT AUDITORS'REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Common Council City of lthaca Ithaca, New York We have audited, in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States (Government Auditing Standards), the financial statements ofthe govemmental activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of the City of Ithaca (the City) as of and for the year ended December 31,2021, and the related notes to the financial statements, which collectively comprise the City's basic financial statements, and have issued our report thereon dated June 25, 2025. Report on Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the City's intemal control over financial reporting (intemal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose ofexpressing an opinion on the effectiveness ofthe City's intemal control. Accordingly, we do not express an opinion on the effectiveness ofthe City's intemal control. A deficiency in intemal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in intemal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination ofdeficiencies, in internal control that is less severe than a material weakness yet important enough to merit attention by those charged with govemance. Our consideration of intemal control was for the limited purpose described in the first paragraph of this section and was not designed to identifiz all deficiencies in intemal control that might be material weaknesses or significant deficiencies and therefore, material weakresses or significant deficiencies may exist that were not identified. We identified certain deficiencies in intemal control, described in the accompanying Schedule of Findings and Questioned Costs as items 2021-001, 2021-002, and 2021-003 that we consider to be material weaknesses. INsrno & Co. CPAs, LLP ll,e Highe,l Slandrrd l,xl)0,l3: qSrr q$\ .rn.ero(pr.conr 88 Report on Compliance and Other Matters As part ofobtaining reasonable assurance about whether the City's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective ofour audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other mattem that are required to be reported under Government Auditing Standards. City's Response to Findings Government Auditing Standards requires the auditor to perform limited procedures on the City's response to the findings identified in our audit and described in the accompanying Schedule of Findings and Questioned Costs. The City's response was not subject to the other auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on the response. Purpose of This Report The purpose of this report is solely to describe the scope of our testing of intemal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City's intemal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Stctndards in considering the City's intemal control and compliance. Accordingly, this communication is not suitable for any other purpose. Respectfu[y submitted, Insero & Co. CPAs. LLP Certifi ed Public Accountants Ithaca, New York June25,2025 62 89 lnsero&co Certifi ed Frblic Accoun Ents INDEPENDENT AUDITORS' REPORT ON COMPLIANCE FOR EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY UNIFORM GUIDANCE Common Council City of Ithaca Ithaca, New York Report on Compliance for Each Major Federal Program Opinion on Each Major Federal Program We have audited the City of Ithaca's (the City's) compliance with the types of compliance requirements identified as subject to audit in the OMB Compliance Supplement thdt could have a direct and material effect on each of the City's major federal programs for the year ended December 31,2021. The City's major federal programs are identified in the summary of auditors' results section ofthe accompanying Schedule of Findings and Questioned Costs. In our opinion, the City complied, in all material respects, with the compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended December 3l ,2021. Basis for Opinion on Each Major Federal Program We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America (GAAS); the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States (Government Audiling Standards); and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Untform Administrative Requirements, Cost Principles, and Audit Requirements .for Federal Awards (Uniform Guidance). Our responsibilities under those standards and the Uniform Guidance are further described in the Auditors' Responsibilities for the Audit of Compliance section of our report. INsrno & Co. CPAs, LLP fhe Hrghc.l SrandarJ l(x00) li:-q5{- l\ uw in-erocf.,.(onr We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on compliance for each major federal program. Our audit does not provide a legal determination of the City's compliance with the compliance requirements referred to above. 90 Responsibilities of Management for Compliance Management is responsible for compliance with the requirements referred to above and for the design, implementation, and maintenance ofeffective internal control over compliance with the requirements of laws, statutes, regulations, rules and provisions of conkacts or grant agreements applicable to the City's federal programs. Auditors' Responsibilities for the Audit of Compliance Our objectives are to obtain reasonable assurance about whether material noncompliance with the compliance requirements referred to above occurred, whether due to fraud or error, and express an opinion on the City's compliance based on our audit. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS, Government Auditing Standards, and the Uniform Guidance will always detect material noncompliance when it exists. The risk of not detecting material noncompliance resulting from fraud is higher than for that resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, orthe override of intemal control. Noncompliance with the compliance requirements referred to above is considered material, if there is a substantial likelihood that, individually or in the aggregate, it would influence thejudgment made by a reasonable user of the report on compliance about the City's's compliance with the requirements of each major federal program as a whole. In performing an audit in accordance with CAAS, Government Auditing Standards, and the Uniform Guidance, we: Obtain an understanding of the City's intemal control over compliance relevant to the audit in order to design audit procedures that are appropriate in the circumstances and to test and report on intemal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of the City's intemal control over compliance. Accordingly, no such opinion is expressed. We are required to communicate with those charged with govemance regarding, among other matters, the planned scope and timing ofthe audit and any significant deficiencies and material weaknesses in intemal control over compliance that we identified during the audit. Other Matters The results of our auditing procedures disclosed an instance ofnoncompliance which is required to be reported in accordance with the Uniform Guidance and which is described in the accompanying Schedule of Findings and Questioned Costs as item 2021-004. Our opinion on each major federal program is not modified with respect to these matters. a 64 r Exercise professionaljudgment and maintain professional skepticism throughout the audit. o ldentifu and assess the risks of material noncompliance, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the City's compliance with the compliance requirements referred to above and performing such other procedures as we considered necessary in the circumstances. 91 Government Auditing Standards requires the auditor to perform limited procedures on the City's response to the noncompliance findings identified in our audit described in the accompanying Schedule of Findings and Questioned Costs. The City's response was not subjected to the other auditing procedures applied in the audit of compliance and, accordingly, we express no opinion on the response. Report on Internal Control Over Compliance Our consideration of intemal control over compliance was for the limited purpose described in the Auditors' Responsibilities for the Audit of Compliance section above and was not designed to identifu all deficiencies in intemal control over compliance that might be material weaknesses or significant deficiencies in intemal control over compliance and therefore, material weaknesses or significant deficiencies may exist that were not identified. We did not identifu any deficiencies in intemal control over compliance that we consider to be material weaknesses. However, as discussed below, we did identifo certain deficiencies in intemal control over compliance that we consider to be significant deficiencies. A deficiency in intemal control over compliance exists when the design or operation ofa control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a qpe of compliance requirement of a federal progmm on a timely basis. A material weakness in intemal control over compliance is a deficiency, or a combination ofdeficiencies, in intemal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement ofa federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in intemal control over compliance is a deficiency, or a combination of deficiencies, in intemal control over compliance with a type of compliance requirement ofa federal program that is less severe than a material weakness in intemal control over compliance, yet important enough to merit attention by those charged with govemance. We consider the deficiency in intemal control over compliance described in the accompanying Schedule of Findings and Questioned Costs as item 2021-005 to be a significant deficiency. Our audit was not designed for the purpose of expressing an opinion on the effectiveness ofinternal control over compliance. Accordingly, no such opinion is expressed. Government Auditing Standards requires the auditor to perform limited procedures on City's response to the intemal control over compliance findings identified in our compliance audit described in the accompanying Schedule of Findings and Questioned Costs. The City's response was not subjected to the other auditing procedures applied in the audit of compliance and, accordingly, we express no opinion on the response. 65 92 The purpose of this report on intemal control over compliance is solely to describe the scope of our testing of intemal control over compliance and the results of that testing based on the requirements ofthe Uniform Guidance. Accordingly, this report is not suitable for any other purpose. Respectfully submitted,-Cr""- ( G.A\r,L0 Insero & Co. CPAs, LLP Certifi ed Public Accountants Ithaca, New York June 25,2025 66 93 CITY OF ITHACA SCHEDULE OF EXPENDITURES OF FEDERAL AWAR,DS FOR THE YEAR ENDED DECEMBER 31. 2O2I Federal Craltor/Pass - Through Grantor Program Title U.S. Department ofHousing and Urtan Dcvelopment Commrmity Development Block C,rant and CDBG Entitlement Crrants Chrster Home Investrnent P artne nihips Program: Entitlement Grant Total U.S. Department ofHousing and Urban Development U.S. Department of Justice Equitab)e Sharing Funds (Drug Seizue) U.S. Department of Transportation Passed Through NYS Department of Transportation: Highway Planning and Construction Cfuster: Highway Planning and Construction Hrghway Planning and Construc tion Highway Planning and Construction Highway Phnning and Construc tion Highway Planning and Construc tion Highway Planning and Construction Highway Planning and Construction I lighway Planning and Construction Total Highway Planning and Construction Cluster and U.S. Department o f T rans po rtatio n U.S. Department of Homeland S€curity Passed Through NYS Division of l{omeland Services and Emergency Sewi:es: Homeland Security Crant Program Total U.S, Department ofHomcland Securi$ Passed Through Tornpkins County: Tenporary Assistance to Needy Families and TANF Chuter Fe de r.l q!4e€-Ne. Pass-Through Grantor No. 14.2 t 8 t4.239 16.922 20.205 20.205 20.205 20 205 20.205 20.205 20.205 20.20s 9'',1.06',7 N/A N/A $ 544.338 $ 746.356 78,328 622,66 r 076,063 3,691 50,910 t,917,U4 1,669,831 94,883 1,007,000 178,M 65,677 299,0',1t 5 R7 ql) 55,000 55.000 181.139 2-812 $ 622,666 S 7,541,637 329.707 U.S. Department of Trcasury Direct Progam: (COVID-I9) Coronavirus State and L<xalFiscal ReliefFund 2l.02'7 Total Expenditures of Federal ABards N/A D035659 D035333 D035332 D036451 D035769 D036r79 D040023 D036019 cht2289 (1) wA See Notes to Schedule of Expenditures ofFederal Awards 67 U.S. Department ofHealth and Human Services Pass-Thmugh to Subrecipients Expenditurcs 93.558 94 CITY OF ITHACA NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS DECEMBER 3I,2O2I Basis of Presentation The accompanying Schedule of Expenditures of Federal Awards presents the activity of all federal awards programs administered by the City, an entity as defined in Note I to the City's basic financial statements. Federal awards received directly from federal agencies, as well as federal awards passed through from other govemment agencies, are included on the Schedule of Expenditures ofFederal Awards. Basis of Accounting The basis of accounting varies by federal program consistent with the underlying regulations pertaining to each program. The amounts reported as federal expenditures generally were obtained from the appropriate federal financial reports for the applicable program and periods. The amounts reported in these federal financial reports are prepared from records maintained for each program. These records are periodically reconciled to the general ledger which is the source ofthe basic financial statements. Matching Costs Matching costs, i.e., the City's share ofcertain program costs, are not included in the reported expenditures. Expenditures of Federal Revenue The City operates revolving loan programs utilizing federal financial assistance received under current and prior Community Development Block Grants and Home lnvestment Partnership Programs. Loans outstanding at December 31,2021 under these programs, reported as part ofloans receivable in the City's basic financial statements, are as follows: Loans Receivable $4,479,469 New loans in the amount of$380,866 were disbursed and loan principal repayments totaling $193,491 were made during the year fiom economic development loans. Program income of$208,508 consisted ofprincipal and interest payments. Note 2 Note 3 Note 4 Note 5 68 Note I lndirect Cost Rate Indirect costs are included in the reported expenditures to the extent they are included in the federal financial reports used as the source for the data presented. The City has elected not to use the 10% de minimus cost rate allowed under Uniform Guidance. 95 CITY OF ITHACA SCHEDULE OF FINDINGS AND QUESTIONED COSTS DECEMBER 3I,2O2I Section I Summary of Auditorsl Resulls Financial Slatements Type o[ Auditors' report issued Signifi cant defi ciency(ies) identifi ed that are not considered to be material weakness(es)? Type of Auditors' report issued on compliance for major programs: Any audit findings disclosed that are required to be reported in accordance with 2 CFR $200 516(a) Identification of major programs CFDA Number(s) 21.02'7 20.20s Dollar threshold used to distinguish between type A and type B programs lntemal control over financial reporting: Material weakness(es) identifi ed?X ves no Significant defi ciency(ies) identified that are not considered to be material weakness(es)?_ yes .-! none reported Noncompliance material to financial statements noted? _ yes X no Material weakness(es) identifi ed?ves X no X yes _ none reported Unmodified X yes _ no Name ofFederal Program or Cluster Coronavirus State and Local Fiscal Recoverv Funds Highway Plannin and Constn:ction $7s0,000 Auditee qualified as low-risk auditee 69 _yes X no Unmodified Federal Awards lntemal control over major programs: 96 CITY OF ITHACA SCHEDULE OF FINDINGS AND QUESTIONED COSTS - CONTINUED DECEMBER 31,2021 Section II Financial Statement Findinss 2021-001 Capital Project Accounting Condition/Criteria Currently, City personnel account for the Capital Fund in spreadsheets and do not enter information in the City's financial software system. This creates oppoffunities for errors to occur and not be detected by management timely. During a prior year audit, we noted discrepancies which resulted in a restatement to the beginning fund balance in the Capital Fund and beginning net position in the Govemment-wide financial statements. Cause The City's financial software system does not have the capability to account for the numerous capital projects in process. Recommendation We recommend City personnel convert the current accounting process to incorporate the Capital Fund as a whole into its financial software system and continue to account for each project in spreadsheets, while pursuing a system that will provide the functionality desired to appropriately track Capital Fund activity. Corrective Action PIan The City began setting up the Capital Project accounting in MUNIS in 2020. Covid-19 and subsequent staff shortages, staff tumover, and shortcomings of other MUNIS modules has prevented completing the conversion. Condition/Criteria Currently, City personnel accounts for fixed assets in spreadsheets rather than in the City's financial software system. This creates greater opporhrnity for error. We also noted significant formula errors in the City's spreadsheets. Cause The City's financial software as currently used does not include the capability for maintaining fixed assets. Recommendation We recommend that the City upgrade MUNIS which would add the capability for fixed asset accounting. Corrective Action Plan The City determined the MIINIS upgrade would not be adequale. There are no immediate plans to purchase other fixed asset software 70 2021-002 Fixed Asset Accounting 97 CITY OF ITHACA SCHEDULE OF FINDINGS AND QUESTIONED COSTS - CONTINUED DECEMBER 3I.2O2I Section II Financial Statement Findinss - Continued 2021-003 Audit Adjustments Condition/Criteria As part ofour audit for the year ended December 3 1 , 2021 , we recorded several significant audit adjustments to correct misstatements, including adjustments to cash, accounts receivable, and accounts payable balances. Cause The City has had significant ongoing personnel challenges, which have made it difficult to maintain its general ledger balances properly. Recommendation We recommend the City ensure that monthly reconciliations are completed timely and that any adjustments necessary to reconcile accounts are completed promptly. Corrective Action Plan In closing the City's 2021 books, the City did discover significant adjustments to Cash, Current Taxes Receivable, and Accounts Payable and the City agrees that timely reconciliations are necessary to ensure accurate financial statements. 2021-004 Late Filing of Single Audit Condition/Criteria The Office of Management and Budget (OMB) Memorandum M-20-26 requires December 31,2021 single audits to be filed by September 30,2022. The City did not file its single audit for the year ended December 3 l, 2021 timely. Cause Due to staff furloughs, COVID-I9, and time consuming atypical administrative demands, the City was unable to have its audited financial statements complete timely, and was unable to meet the September 30, 2022 deadline. Context The City's Single Audit for the years ended December 31,2022,2023, and 2024 will also not be filed timely. The City is working to resolve these issues and intends to file future Single Audits timely. Recommendation We recommend that the City continue working to resolve its issues with respect to timeliness, and that it file future Single Audits on time. 71 Section III Federal Award Findinss and Ouestioned Costs 98 SCHEDULE OF FINDINGS AND QUESTIONED COSTS - CONTINUED DECEMBER 3I,2O2I Section Ill Federal Award Findings and Questioned Costs - Continued Corrective Action Plan As noted above the City is working to resolve these issues, and intends to file its future Single Audits timely. 2021-005 Reporting - State and Local Fiscal Recovery Funds Conditior/Criteria Reporting is performed by the City Controller, who has many years of experience in reporting under Uniform Guidance and is capable and has not had any findings in the past regarding this requirement. The reports are lightly reviewed by the Deputy Controller and City Administrator. However, no formal process is in place to document such approval. Therefore, there is no control that can be tested to veri$r this review. Cause Due to the extensive experience of the City Controller, it was not felt that additional documentation of the review by the Deputy Controller and City Administrator was necessary. Recommendation We recommend that the City create a method to document the review by the Deputy Controller and City Manager. Corrective Action Plan The City will implement a formal review and sign-off by the Deputy Controller and City Manager. 72 CITY OF ITHACA 99 lnsero&co Crnifi ed Public Accounhnts COMMUNICATION WITH THOSE CHARGED WITH GOVERNANCE AT THE CONCLUSION OF THE AUDIT Common Council City of Ithaca Ithaca, New York Significant Audit Matters Accounting estimates are an integral part of the financial statements prepared by management and are based on management's knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because oftheir significance to the hnancial statements and because of the possibility that future events affecting them may differ significantly from those expected. The most sensitive estimates affecting the City's financial statements were accumulated depreciation, other postemployment benefits liability, pension obligations, and compensated absences. INseno & Co. CPAs, LLP Th( Highest Standard rl()01 :ll-q5l' \ $w rn.crocpr,jonr We have audited the financial statements of the govemmental activities, each major fund, and the ag$egate remaining fund information of the City of Ithaca (the City) for the year ended December3l, 202[. Professional standards require that we provide you with information about our responsibilities under generally accepted auditing standards, Government Auditing Standards, and Uniform Guidance, as well as certain information related to the planned scope and timing of our audit. We have communicated such information in our letter to you dated August 10, 2023. Professional standards also require that we communicate to you the following information related to our audit. Qualitative Aspects of Accounting Practices Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by the City are described in Note I to the financial statements. No new accounting policies were adopted, and the application ofexisting policies was not changed during202l. We noted no transactions entered into by the City during the year for which there is a lack of authoritative guidance or consensus. All significant transactions have been recognized in the financial statements in the proper period. 100 City of Ithaca J:une 25,2025 Page 2 Certain financial statement disclosures are particularly sensitive because of their significance to financial statement users. The most sensitive disclosures affecting the financial statements were: The disclosures related to capital assets, pension obligations, short and long+erm debt, other posr employment liability, fund equity, and restatements in Notes 7, 8, 9, 10, 11, 13, and 19 to the financial statements. The financial statement disclosures are neutral, consistent, and clear. Difficulties Encountered in Performing the Audit We encountered signihcant difficulties and delays in obtaining information needed to complete the audit. Corrected and Uncorrected Misstatements Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are clearly trivial, and communicate them to the appropriate level of management. The attached schedule provides information on corrected misstatements found during the audit process. There were no uncorrected misstatements identified as a result of audit procedures, other than those considered to be trivial. Disagreements With Management For purposes of this letter, a disagreement with management is a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditors' report. We are pleased to report that no such disagreements arose during the course of our audit. Management Representations We have requested certain representations from management that are included in the management representation letter dated lrne 25,2025. Management Consultations with Other Independent Accountants ln some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a "second opinion" on certain situations. Ifa consultation involves application of an accounting principle to the City's financial statements or a determination of the type of auditors' opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants. Management's estimates of accumulated depreciation, other postemployment benefits liability, pension obligations, and compensated absences are based on various assumptions. Depreciation estimates are based on the historical cost of assets and their estimated useful lives. Other postemployment benefits liability estimates are based on actuarial calculations. Accounting and reporting for pensions is based on the City's actuarially determined proportionate share ofthe NYS and Local Retirement System Plans' assets or liabilities. The compensated absences estimates are based on employees' accrued sick and vacation time and rate of pay. We evaluated the key factors and assumptions used to develop the accumulated depreciation, other postemployment benefits tiability, pension obligations, and compensated absences estimates in determining that they are reasonable in relation to the financial statements taken as a whole. 101 City of lthaca Jrne 25, 2O25 Page 3 Other Audit Matters or Issues We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as the City's auditors. However, these discussions occurred in the normal course ofour professional relationship and our responses were not a condition to our retention. Other Matters We applied certain limited procedures to the Management's Discussion and Analysis; Budgetary Comparison Schedules; the Schedule of Changes in the City's Total OPEB Liability and Related Ratios; Schedule of City Contributions - NYSLRS Pension Plan; Schedule ofthe City's Proportionate Share ofthe Net Pension Liability - NYSLRS Pension Plan; and Notes to Required Supplementary Information, which is required supplementary information (RSI) that supplements the basic financial statements. Our procedures consisted ofinquiries of management regarding the methods ofpreparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We did not audit the RSI and do not express an opinion or provide any assurance on the RSI. We were engaged to report on the Combining Balance Sheet - Non-Major Govemmental Funds; the Combining Statement of Revenues, Expenditures, and Changes in Fund Balance; and the Schedule of Expenditures of Federal Awards, which accompany the financial statements but are not RSI. With respect to this supplementary information, we made certain inquiries of management and evaluated the form, content, and methods of preparing the information to determine that the information complies with accounting principles generally accepted in the United States of America, the method of preparing it has not changed from the prior period, and the information is appropriate and complete in relation to our audit of the financial statements. We compared and reconciled the Combining Balance Sheet - Non-Major Govemmental Funds; the Combining Statement of Revenues, Expenditures, and Changes in Fund Balance; and the Schedule of Expenditures of Federal Awards to the underlying accounting records used to prepare the financial statements or to the financial statements themselves. Restriction on Use This information is intended solely for the information and use of the City of Ithaca's audit committee and management and is not intended to be, and should not be, used by anyone other than these specified parties. Respectfu lly submitted, -55555555 5"^- ( G.U\r,L0 Insero & Co. CPAs, LLP Certifi ed Public Accountants Ithaca, New York Jure 25,2025 102 CITY OF ITHACA SCHEDULE OF CORRECTED MISSTATEMENTS FOR THE YEAR ENDED DECEMBER 3I.2O2I The following audit adjustments were reviewed, approved, and posted by management. Govcrnlnental Activities EITect - Imrease (Decrcase) Description Ass c ts Liabilities Fund Balance Revenue Exp€ns€ s (1,198,423) (2,022,29t) $ 942.812 $ 942.812SS 1,159,285 335.417 Current Year Elfect Balance Sheet/StatemeDt ofNet Position Effcct 823,868 $ 2,102,097 $ t,278,229 $ (1,198,423) $ (2,022,291) $ 823,868 Ge nc ral Fund Effect - Incrcase (Decrease) Dcscdption Asscts f,iabilitics Fund Balance Revenuc Erpe ns c Recognition of ARPA revenuc Adjusting cash accormts receilabb, and accouls payabb to correct bahncc S (13 r,636) (2,050,753) $ (131,636) $(2,0s0,?53)$ l,919,1l7 $ 942,812 $ 942,812SS 587 104 ( r,332,013) 1,919,1l7 $ 1,s29,916 S (389,201)Current Year Effect Balance Sh€eustatement ofNet Position Effect Non-M r Governrrental Funds Effect - Increase (Decreasc) Description Assets Liabilities Fund Balance Rcvenue Expe nse Adjusting cash accowls receirabh, ard accounts payable to correct balance $ (r,066,787) $ 28.462 $s 572,181 $ l,667,430 095.249) S 572.181 S 1,667.430(lCurlrnt Year EITect Balance Sheeustatenent ofNet Position Effect Recognition of ARPA reventr Adjrsting cas}l accormls receilabb, and accornts payable to correct bahnce $ (1,066,787) S 28.462 S (r,09s.249) 103 lnsero&co (brtifi ed l\rblic Accountans MANAGEMENT COMMENT I,T],TTF],R Common Council City of lthaca Ithaca, New York In planning and performing our audit of the financial statements of the govemmental activities, each major fund, and the aggregate remaining fund information of the City of Ithaca (the City) for the year ended December 31,2021, in accordance with auditing standards generally accepted in the United States of America, we considered the City's intemal control over financial reporting (intemal control) as a basis for designing our auditing procedures for the purpose of expressing our opinions on the financial statements, but not for the purpose ofexpressing an opinion on the effectiveness ofthe City's intemal control. Accordingly, we do not express an opinion on the effectiveness ofthe City's intemal control. Our consideration ofinternal control was for the limited purpose described in the preceding paragraph and was not designed to identifu all deficiencies in intemal control that might be material weaknesses or significant deficiencies and, therefore, material weaknesses or significant deficiencies may exist that were not identified. However, as discussed below, we identified certain deficiencies in intemal control that we consider to be material weaknesses and a deficiency that we consider to be a significant deficiency. A deficiency in intemal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies in intemal control, such that there is a reasonable possibility that a material misstatement of the City's financial statements will not be prevented, or detected and corrected on a timely basis. We consider the deficiencies in intemal control described in the Schedule of Findings and Questioned Costs and noted below as 2021-001, 2021-002, and 2021-003 to be material weaknesses as defined above. A significant deficiency is a deficiency, or a combination of deficiencies, in intemal control that is less severe than a material weakness, yet important enough to merit attention by those charged with govemance. We consider the deficiency in intemal control described in the Schedule ofFindings and Questioned Costs as 2021-005 to be a significant deficiency as defined above. During our audit, we also became aware ofcertain matters that provide opportunities for strengthening intemal controls and operating efficiency. This letter summarizes our current and prior year comments and recommendations regarding these matters. This letter does not affect our report dated June 25, 2025 on the financial statements of the City of Ithaca. INsrno & Co. CPAs, LLP Tlrc H,Ehc,t Srandrrd lr80U) 2l.l-c547 lqqu.rnsero(pu c.,nl 104 City of Ithaca Iune 25,2025 Page 2 MATERIAL WEAKNf,SSES Capital Project Accounting 2021-001 Finding: Currently, City personnel account for the Capital Fund in spreadsheets rather than entering information into the City's financial software system. This creates opportunities for errors that may not be detected timely by management. The City's financial software system does not have the capability to account for the numerous capital projects in process. The City authorized installation of the capital project accounting module of MUNIS, which was to be completed during the 2017 fiscal year. However, the new module has not yet been implemented. Recommendation: We recommended City personnel convert the current accounting process to incorporate the Capital Fund as a whole into its financial software system and continue to account for each project via spreadsheets, while pursuing a system that will provide the functionality desired to appropriately track Capital Fund activity. Current Status: The City began setting up the Capital Project accounting in MUNIS in 2020. Covid- 19 and subsequent staff shortages, staff tumover, and shortcomings of other MUNIS modules has prevented completing the conversion. Fixed Asset Accounting 202 I -002 Finding: Currently, City personnel accounts for fixed assets in spreadsheets rather than in the City's financial software system. This creates greater opportunity for error. We also noted significant formula errors in the City's spreadsheets. lnquiries of management revealed an upgrade to MUNIS is planned, which will include the fixed asset module. Recommendation: We continue to recommend converting the current accounting process to incorporate fixed assets in the financial software system as soon as feasible. Current Status: The City determined that the MIINIS upgrade would not be adequate. There are no immediate plans to purchase other fixed asset software. Audit Adjustments 202 I -003 Finding: As part of our audit for the year ended December 31,2021, we recorded several significant audit adjustments to correct misstatements, including adjustments to cash, accounts receivable, and accounts payable balances. 105 City of Ithaca June 25,2025 Page 3 Recommendation: We recommend the City ensure that monthly reconciliations are completed timely and that any adjustments necessary to reconcile accounts are completed promptly. Current Status: In closing the Ciry's 2021 books the City did discover significant adjustments to Cash, Current Taxes Receivable, and Accounts Payable and the City agrees that timely reconciliations are necessary to ensure accurate financial statements. COMPLIANCE ISSUE Late Filing of Single Audit 2021-004 Issue: The Office of Management and Budget (OMB) Memorandum M-20-26 requires December 31,2021 single audits to be filed by September 30, 2022. Due to staff furloughs, COVID- 19, and time consuming atypical administrative demands, the City did not file its single audit for the year ended December 3 l, 202 I timely. Current Status: The City's single audit for the years ended December 3l,2022,2023, and 2024 will also not be filed timely. The City is working to resolve these issues and intends to file future Single Audits timely. SIGNIFICANT DEFICIENCY Finding: Reporting is performed by the City Controller, who has many years ofexperience in reporting under Uniform Guidance and is capable and has not had any findings in the past regarding this requirement. The reports are lightly reviewed by the Deputy Controller and City Administrator. However, no formal process is in place to document such approval. Therefore, there is no control that can be tested to veri! this review. Recommendation: We recommend that the City institute a method of documenting the review that is taking place Current Status: The City will implement a formal review and sign-off by the Deputy Controller and City Manager. Reporting - State and Local Fiscal Recovery Funds 2021-005 106 City of Ithaca June 25, 2025 Page 4 Recurring Comments Physical Inventory of Capital Assets Finding: The City has not had a formal physical inventory of capital assets in recent years. The current list was created using lists provided by each department from the last physical inventory. An updated physical inventory is necessary to ensure records include only assets currently in use. Discussions with City management indicate a committee of Common Council members has been formed to work on this issue. Recommendation: We continue to recommend the City perform a physical inventory of all capital assets and update records accordingly. Current Status: The City agrees with the benefits ofa formal inventory of physical assets and continues to look for reasonably prudent solutions to accomplish this. This communication is intended solely for the information and use of management, the Common Council, and others within the City of Ithaca, and is not intended to be, and should not be, used by anyone other than these specified parties. Respectfu lly submitted,- 5""- (G,U\L0 Insero & Co. CPAs. LLP Certifi ed Public Accountants Ithaca. New York June 25, 2025 OTHER MATTERS 107 CITY OF ITHACA 108 East Green Street, Ithaca, New York 14850-6590 Dept of Public Works-Engineering Shaniqua Lewis, Deputy City Clerk TO:Common Council FROM:Johnathan Licitra, Civil Engineer DATE:August 6, 2025 RE:Stewart Avenue Bridge over Fall Creek Rehabilitation Project ITEM #:6.1 MEMORANDUM Stewart Avenue Bridge over Fall Creek Bridge Rehabilitation BIN 2210620 Project Resolution ATTACHMENTS: Stewart Ave Bridge over Fall Creek Rehab Project-CC-Resolution .pdf Stewart Ave over Fall Creek Bridge Rehab Project Memo.pdf 108 Stewart Avenue Bridge over Fall Creek Bridge Rehabilitation, BIN 2210620 Project- Resolution WHEREAS, a project for rehabilitation of the Stewart Avenue Bridge over Fall Creek, P.I.N. 375669 (“the Project”) is eligible for funding under Title 23 U.S. Code as administered by the Federal Highway Administration (FHWA), as amended, that calls for the apportionment of the costs to be borne at the ratio of 80% Federal funds and 20% non-Federal funds, and WHEREAS, the City of Ithaca will design, let, and administer all phases of the Project, and WHEREAS, the City of Ithaca desires to advance the Project by making a commitment of 100% of the non-Federal share of the costs of Scoping, Preliminary Design, Detailed Design, Right of Way (ROW) Incidentals and Acquisition, Construction, and Construction Support and Inspection work for the Project or portions thereof, and WHEREAS, the City of Ithaca approved the environmental review and initial Capital Project funding on Feb 22, 2022 and previously amended the budget in 2023 and June 19, 2024 to $1,530,000., and. Now therefore, the Common Council, duly convened does herby RESOLVED, that the Common Council hereby approves the Project; and be it hereby further RESOLVED, that the Common Council hereby authorizes the City of Ithaca to pay in the first instance 100% of the Federal and non-Federal share of the Scoping, Preliminary Design, Detailed Design, ROW Incidentals and ROW Acquisition, Construction, and Construction Support and Inspection work for the project thereof; and be it further RESOLVED, that Common Council amends Capital Project #910 by $4,430,330.00 for an amount not to exceed the sum of $5,960,330.00 is hereby appropriated from the issuance of Serial Bonds ___________ with repayment for the Federal share being $4,760,800 and the NYS share being $892,650 and the City’s estimated share of the project cost not to exceed 5% or $306,880.00 and made available to cover the cost of participation in the above phases of the Project; and it is further RESOLVED, that the Common Council of the City of Ithaca hereby agrees that the City of Ithaca shall be responsible for all costs of the Project, including costs which exceed the amount of reimbursement available from the awarded amount to the City of Ithaca, and it is further RESOLVED, that in the event the costs of the Project exceed the amount appropriated above, Common Council of the City of Ithaca shall convene as soon as possible to appropriate said 109 excess amount immediately upon the notification by the Engineering staff and/or New York State Department of Transportation (NYSDOT) thereof, and it is further RESOLVED, that the City Manager of the City of Ithaca of the County of Tompkins be and is hereby authorized to sign all necessary Agreements, certifications, or reimbursement requests with NYSDOT to secure Federal Aid and Marchiselli Aid on behalf of the City of Ithaca and the Superintendent of Public Works is authorized to sign all necessary construction documents, contracts, certifications and reimbursement requests, in connection with the advancement or approval of the Project and providing for the administration of the Project and the municipality’s funding of the Project costs, and it is further RESOLVED, that the Superintendent of Public Works be and is hereby authorized to administer the above project, and it is further RESOLVED, that the City of Ithaca will be responsible for all maintenance of the Project; and it is further RESOLVED, that a certified copy of this resolution be filed with the New York State Commissioner of Transportation by attaching it to any necessary Agreement in connection with the Project, and it is further RESOLVED, That this Resolution shall take effect immediately. 110 CITY OF ITHACA ENGINEERING DEPARTMENT 108 E. Green Street, Rm 204 Ithaca, New York 14850-6590 OFFICE OF THE CITY ENGINEER Telephone: 607/274-6530 Fax: 607/274-6587 “An Equal Opportunity Employer with a commitment to workforce diversification.” MEMORANDUM TO: Common Council FROM: Johnathan Licitra, Civil Engineer DATE: 28 July 2025 RE: Stewart Avenue Bridge over Fall Creek Rehabilitation Project Please find attached a resolution seeking Common Council authorization to pay 100% of the Federal/State share of the project cost in the first instance. Original Capital Project funding began in Feb 2022, and initial assessments were geared towards a 180’ span bridge painting project. With further analysis, various structural components (deck and beams) have substantial degradation and deemed expanding the scope for the longevity and cost effectiveness of the project towards a major rehabilitation project. Current project funds come from approximately 80% Federal, 15% NYS, and 5% local. The City of Ithaca will be reimbursed for 95% of the eligible total project cost up to $5,960,330 and the City local share is $306,880. -------------------------------------------------------------------------------------------------------------------- The project will include the following: • Replacing select truss members, repainting of metal structure or components of either superstructure or substructure members • Replacement of guiderails, curbs, sidewalk, and wearing surface • During construction, there will be an on-site path for pedestrians and bicycles, and a vehicular detour to Thurston Ave. Bridge will be used. Additional coordination efforts are on-going with City Water, sewer, and Cornell over various projects components. Construction is scheduled to begin Spring 2026 and last 5 months. If you have any questions, please call me @ 607-274-6534 or email me jlicitra@cityofithaca.org 111 Page 2 of 2 Figure 1. Bridge Overview—General Plan Figure 2. Additional Photos 112 CITY OF ITHACA 108 East Green Street, Ithaca, New York 14850-6590 City Manager's Office Christine Ibert, TO:Common Council FROM:Dominick Recckio DATE:August 6, 2025 RE:Sub-Lease Authorization to Operate Navigation Hub ITEM #:6.2 MEMORANDUM ATTACHMENTS: Sub-Lease Authorization_Nav_Hub.pdf 113 Authorization to Enter into a Sublease with Tompkins County for the Purposes of Operating a Homeless Services Navigation Hub WHEREAS, in response to people experiencing unsheltered homelessness at a sustained high level in the City of Ithaca, on May 7, 2025 Ithaca Comon Council (Council) adopted an updated Pilot Administrative Policy to Manage Homeless Encampments on City-Owned Land, and WHEREAS, on May 7, 2025 Council adopted the accompanying Advisory Committee Report, “Reviewing the City of Ithaca’s Pilot Administrative Policy to Manage Homeless Encampments on City Property” which called for the City to open and operate a Navigation Hub facility near the “Southwest Parcel” where the City temporarily allows individuals to experiencing unsheltered homelessness to camp outdoors, and WHEREAS, operating a navigation hub facility that will provide an inclusive space to provide personal item storage, hygiene facilities, housing resource navigation and other social services supports nearby the “Southwest Parcel” is advantageous to the City as the City will be required to provide hygiene facilities to achieve a waiver or variance related to New York State Campground Regulations (locally regulated by Tompkins County Environmental Health) nearby the “Southwest Parcel,” and WHEREAS, after an exhaustive commercial real estate search in the area nearby the “Southwest Parcel” a Maguire LLC-owned building on a consolidated parcel at 100 Commercial Avenue is the best available property to house a navigation hub facility, and WHEREAS, partnering with Tompkins County (the County) and local not-for-proﬁt agencies will aid in the City’s ability to open and operate the navigation hub facility, and WHEREAS, the County and City share a common interest in best serving individuals experiencing unsheltered homelessness in a compassionate and digniﬁed manner that reduces barriers to accessing social and human services, and WHEREAS, the County intends to co-locate its required Code Blue emergency shelter with the City’s navigation hub, and WHEREAS, the County Administrator is authorized to ﬁnalize negotiations and sign a lease agreement with the landlord, Maguire LLC, pending a memorandum of agreement for a sublease with the City of Ithaca, and WHEREAS, the County and the City recognize the beneﬁts of collaboratively leveraging their respective resources to maximize opportunities to serve the population and reduce unsheltered homelessness, and 114 WHEREAS, co-locating and coordination of services between the Code Blue Shelter and Navigation Hub presents one such opportunity; NOW THEREFORE BE IT RESOLVED, that the City Manager, upon the advice of the City Attorney, is authorized to enter into a sublease at 100 Commercial Avenue for the purposes of operating a homeless services navigation hub, the terms of which are expected to include the County paying a 50% portion of the lease costs and a 100% share of the upﬁt costs, and be it further RESOLVED, that the City Manager shall incorporate suAicient navigation hub operational expenses into the proposed 2026 City Budget. 115 CITY OF ITHACA 108 East Green Street, Ithaca, New York 14850-6590 Mayor's Office Alan Karasin, TO:Common Council FROM:Mayor Cantelmo DATE:August 6, 2025 RE:Appointment To Community Police Board ITEM #:7.1 MEMORANDUM Aryeal Jackson is being appointed to serve on the Community Police Board ATTACHMENTS: Res Mayor Appoint- CPB 8-6-2025 Aryeal Jackson.pdf 116 Mayoral Appointments- Community Police Board (CPB) RESOLVED, that Aryeal Jackson be appointed to serve as a member of the Community Police Board for a 3 Year Term ending December 31, 2027 117 CITY OF ITHACA 108 East Green Street, Ithaca, New York 14850-6590 Mayor's Office Shaniqua Lewis, TO:Common Council FROM:Mayor Robert Cantelmo DATE:August 6, 2025 RE:Appointments to the Ethics Board ITEM #:7.2 MEMORANDUM Christopher House and Amber Robson are being appointed to serve on the Ethics Board. ATTACHMENTS: Mayor Appointment-Ethics Board .pdf 118 Mayor Appointment- Ethics Board Resolved, that Christopher House be appointed to serve on the Ethics Board for a four (4 ) year term ending 12/31/2028 and be it Resolved, that Amber Robson be appointed to serve on the Ethics Board for a three (3) year term ending 12/31/2027. 119 CITY OF ITHACA 108 East Green Street, Ithaca, New York 14850-6590 City Manager's Office Christine Ibert, TO:Common Council FROM:Deborah Mohlenhoff DATE:August 6, 2025 RE:City Manager's Monthly Reports ITEM #:8.1 MEMORANDUM Monthly Department Activity Report: June-July 2025 Update- City Staff & City Manager Work Plan 2025 ATTACHMENTS: 0806_CM Monthly Depts Report to CC.pdf 2025 CM July-Aug Workplan Update.pdf 120 M E M O R A N D U M Date: August 6, 2025 To: Common Council From: Deborah Mohlenhoﬀ, City Manager RE: Monthly Department Activity Report: June-July 2025 I am pleased to provide this monthly report to Council that will serve as an opportunity to highlight the work of our city departments in the past two months and give key updates on ongoing initiatives. The City’s Department Heads submit these items each month to the City Manager. City Attorney • The Attorney’s Oﬃce continues to provide legal support and advice to the Common Council, City Manager, and City departments. The grace period for obtaining an operating permit under the City’s Short-Term Rental Ordinance, City Code Chapter 325-27, expired on June 1, 2025. The Attorney’s Oﬃce has been working closely with the Planning & Development Division and the Building Division regarding enforcement of the ordinance against those who violate it. More information regarding the program can be found on the City’s website at https://www.cityoﬁthaca.org/770/Short-Term-Rentals. • In other news, the Attorney’s Oﬃce has been working closely with the Department of Public Information and Technology to shift the bulk of the City’s contracting processes online. We are additionally undertaking a review of contracting and procurement procedures and implementing changes as needed. Taken together, these eﬀorts will improve the speed and eﬃciency of City contracting, save countless hours of staﬀ time across the organization, and help ensure that the City’s expenditure of tax dollars on needed goods and services is on the most favorable terms possible. Finally, the Oﬃce is assisting with this year’s labor negotiations, which formally began in June. Public Information & Technology Events and Community Permits • With the summer season in full swing, we’ve seen a noticeable increase in requests to use the Commons and City Parks. Assembly permit applications are also on the rise. Additionally, managing SeeClickFix—our citizen reporting tool—has become a key focus as we continue to expand the range of reportable issues. 121 Information Technology • We’re pleased to announce that Jeﬀ Knight has been promoted to the role of Information Systems Endpoint Analyst. Despite the busy summer season, the volume of service requests and ongoing projects remains high. The team continues to demonstrate exceptional commitment to delivering top- tier internal support. Clerk's Oﬃce • This team continues to provide outstanding customer service, especially during July, which brings a seasonal increase in marriage applications and the processing of new annual residential parking permits. July 2025 Measures and Metrics Permit / Application Type Count Commons Use Permit 5 Dog License 62 Domestic Partnerships 5 License 21 Marriage One-Day Officiant License 7 Marriage Transcripts 22 Noise Ordinance Permit Application 9 10 13 Residential Parking Permit (RPP) 54 Special Event Permit Application - Phase 1 5 Special Event Permit Application - Phase 2 2 Grand Total 167 122 SeeClickFix Category Created in period Pothole 16 Dead Animal Removal 2 Streetlight 6 Pedestrian Crossing Signal 3 Tree Concern 2 Line of Sight Obstruction (non-exterior maintenance) 3 Traffic Signal 2 Missed Trash Pickup 2 Parking Garage Maintenance 1 Information Technology Count Help Desk Tickets Created 76 Tickets Closed 60 Ithaca Youth Bureau Youth Development • Big Brothers Big Sisters o Coordinator, Joe Gibson, conducted a Mental Health First Aid Course for City staﬀ including folks from PIT, DPW, and GIAC. o Match Support had their most well-attended match event in recent years with 20 matches coming together at Ringwood Raceway for go-karting. o Members of the BBBS Team attended the Big Brothers Big Sisters of America National Conference in Philadelphia from June 9-12 for four days of inspiration, connection, and learning with 2,000+ attendees from across the country. o BBBS is currently hiring a 22 Hour/Week Youth Program Leader to lead programs for youth currently on the match waitlist. • College and Career Discovery Program (CCDP) o The school year has wrapped up with Boynton, Dewitt, and LACS graduation on 6/23 and 6/24. o 10 CCDP participants will be participating in the YES Summer Jobs Program. 123 o Planning is underway for the program's annual summer exploration trip in partnership with PSMP. This year participants will be traveling to Cleveland, Ohio. Highlights include visits to the Great Lakes Science Center and Steamship William G. Mather, Playhouse Square for a performance of the musical Beetlejuice, Karamu House (the nation's oldest producing Black Theatre), Cozad Bates House Interpretive Center, Edgewater Park, and the Museum of Illusions. This annual trip is made possible through the generous support of community donors. • Outings o After-school programs ran through the end of June. Staﬀ were very busy running seven weekly programs, which is about 90 young people per week! o Activities included group games, tree climbing, local forest hikes, biking, and end-of-program barbeques. o Summer programs began on July 7th. • Paul Schreurs Memorial Program (PSMP) o PSMP celebrated several students graduating from high school and some moving up to high school with a special dinner at Northstar House. o All of the seniors in the program graduated on time and in good standing. They are all excited about their next steps in life. We will miss them! o Staﬀ are in the process of creating a new, merged program with the CCDP staﬀ, and it's going really well. There is a shared excitement about all of the possibilities and new programming opportunities. Part of the process includes incorporating participant needs and priorities, which are being collected through a survey. o We will be getting together this summer with our rising seniors, and 9th graders will be joining CCDP this summer on their trip and summer activities. • Youth Employment Service (YES) o 168 teens have been matched to worksites through the Summer Jobs Program. o We have 66 active worksite partners this summer. o The YES Team hosted six Orientation and Payroll Sessions during the month of June and will facilitate one more in the ﬁrst week of July. These two-hour sessions are facilitated by the full YES roster and seasonal team and go over general program expectations, teach teens how to ﬁll out their time sheets, and help them ﬁll out their tax paperwork step by step. 136 teens are fully on payroll at the time of this report. Some teens are beginning training shifts this week. The oﬃcial start date for the Summer Jobs Program is July 7th. o From June 27th - July 3rd, YES hosted daily Kickstart Trainings and Worksite Supervisor Orientations. The Kickstart training is a two-hour paid activity that covers City Policies, NYS Sexual Harassment Training, and Financial Literacy. o In addition to funding from the City of Ithaca, the YES Summer Jobs Program receives $223,000 from the Tompkins County Workforce Development Board, $79,870 from the Joint Youth Commission through the Town of Ithaca, and $10,476 from the Danby Youth Commission to fund teen work placements. 124 Recreation • The very wet spring created many challenges for ﬁeld youth for spring sports programs. Staﬀ worked diligently to avoid program cancellations as much as possible. • Summer Camp programs are oﬀ to a great start! Demand remains high for our programs, and the staﬀ team has worked hard to place as many youth as possible. • Thanks to the eﬀorts of Recreation Specialist, Amir Ali, the department received a 2025 USTA Eastern Growing Tennis Together Grant Award of $700.00 • We welcomed Stephanie Sroka as our new Administrative Assistant for the Recreation Division. She is joining us during our busiest season and has jumped in with both feet! We are glad to have her join us! • The Recreation Support Services Camp Inclusion Program has brought on 18 seasonal Inclusion Specialists (our largest group ever) to support the participation of 21 youth with disabilities in our Cass and Stewart Park Day Camp programs. • The Recreation Support Services Summer Recreation Program is completely ﬁlled with waiting lists. We are oﬀering a variety of programs throughout July including workout programs, arts and crafts, hiking, swimming, bowling, bingo, park visits, and ﬁeld trips to places like the Syracuse Zoo, Syracuse Mets Baseball, and Mountain Speedway. • Ithaca Bike Rental is open for their summer hours, which are Thursday - Monday: 11am – 7pm. Make a reservation here: https://www.ithacabikerental.com/reservations.html. Parks • The Cass Park Pool is open for the summer! Public swim hours are Monday-Friday 1-7pm and Saturday/Sunday 12:30-6pm. Pool information can be found at: https://www.casspark.org/pool.html. • Summer Roller Skating at the Cass Park Rink is in full swing. For dates, times, and other information visit: https://www.casspark.org/roller-skate.html. • City staﬀ are working on poison ivy mitigation at high-traﬃc areas at the parks, particularly Cass Park. Department-Wide • TetraTech is assessing the Youth Bureau building and will start meeting with stakeholders to develop conceptual plans for future renovation/expansion. • The department is planning to pursue funding for the project through the NY-BRICKS grant program. • Construction of the new participant/visitor parking lot for the Youth Bureau is complete. We are now working to install new accessible doors at the main entrance to complete the full scope of the project. • The ﬁre alarm replacement project is nearly complete. Required testing/commissioning will be completed the week of July 7th. • The department’s three leased new 12-passenger vans have all been delivered. • We still need to secure our 4th van, which Enterprise was not able to procure for us because of the required conﬁguration. • We are reviewing applications for a full-time Executive Assistant. We hope to have someone in place by the end of July. Police Department • We hired two new lateral transfers, Oﬃcer Ron Lower and Oﬃcer Abdullah Hassan. • Our three new oﬃcers in the Syracuse Police Academy continue to progress. 125 • The application portal to take the next Civil Service exam closed on July 31st for the September 20th test. • We have increased public awareness of Ordinances on Commons with media, increased enforcement, and partnership with community outreach. • IPD received a 2025-2026 GIVE Grant award of $150,485. • We now have an MOU with Second Wind Cottage to fund a Violence Interrupter through the GIVE grant. • We also created an MOU with the Learning Web to promote the safety, well-being, and rights of youth participating in the Transitional Housing Program. • IPD is hosting National Night Out at the police station on August 5th from 4:00pm to 7:00pm. • On August 2nd, IPD staﬀ participated in an annual softball competition with Ithaca College, Cornell University, and Tompkins County Sheriﬀ to raise awareness for suicide prevention. Fire Department July 2025 • IFD’s four new ﬁreﬁghters continue to do IFD-speciﬁc training. We anticipate they will be ready to transfer onto shift in August. • Assistant Chief Brian Weinstein retired after 31 years of service to the Ithaca community. Interviews for Assistant Chief and Lieutenant promotions occured in July. • FF Shawn Lauper has been activated by the US Army for a one-year overseas deployment. • Two new ﬁreﬁghters started on July 7, 2025. The 15-Week Fire Academy started on July 21, 2025. • The IFD promotional examinations for Fire Lieutenant occurred on June 28, 2025. • The hose-uncoupling ceremony for the new East Hill Fire Station took place on June 25, 2025. Punch list items are being completed. We are waiting for Spectrum to install ﬁber optics in the building to complete several IT-based projects. We anticipate the ﬁnal move from the current station by the end of July. • IFD’s annual hydrant maintenance continues across the district. • IFD members attended a swift water rescue class at the NYS Preparedness Center in Oriskany, NY. • IFD submitted a FEMA SAFER Grant for $1.8 million to supplement funding for six Fireﬁghters for three years. Human Resources • Staﬀ held a Flagging/Workzone Safety training with Forestry/W&S folks. • Staﬀ completed CPR/AED/First Aid Training as a pilot program with (6) Sr. Staﬀers, in hopes of oﬀering it Citywide in 2025-2026 down season. • Staﬀ completed a second CPR/AED/First Aid Training for the folks (FT/Seasonal), including golfers, at the Pro Shop/Newman. • Staﬀ are coordinating Chainsaw Safety Training for Forestry. • There will be Mobile Elevating Work Platform (MEWP) Certiﬁcation for Boom, Scissor and Other Aerial Lifts for multiple departments at S&F/Water Div. 126 • We oﬀered an Ergonomics Health & Safety Training, citywide. • We are preparing workers' compensation information packets and delivering them to each department to hand out to anyone with a WC claim, as well as to orientation attendees. • HR staﬀ welcomed seven newly hired City employees and completed their orientation in July. Public Works Engineering • Detailed design is now underway for Stewart Ave bridge over Fall Creek (deck replacement). Bridge closure scheduled for 2026. • Design is on-going for N Cayuga St bridge over Fall Creek (full replacement) • Design continues for Black Diamond Trail Connector (trail extension to the Town of Ithaca’s Gateway Trail), including access to the Kirby Edmonds bridge over Rt 13 and Buttermilk Falls State Park. Mostly working through permitting and environmental review (including Inlet Rd railroad crossing). Mitigation plan established for a rare and endangered grass (in NYS) called Satin Brome. Working toward 2026 construction. • Cass Park pavilion and bathroom building replacements were bid and came in way over budget. We are retooling and strategizing on how to redesign and rebid in order to get better pricing. • Safe Streets and Roads for All project (www.safestreetstompkins.com). Plan adopted and we are now strategizing on implementation. • Working on two projects with the Youth Bureau – a construction project to upgrade the ﬁre alarm system and a planning/scoping project to assess current building condition and to consider renovations and possible expansion to better accommodate programming. • Route 13/Cayuga Waterfront Revitalization project, BUILD grant www.route13ithaca.com • Currently lining up Design approval. Grant application submitted for ﬁnal engineering and construction. • Sidewalk 2025 construction contract about half complete. Work to be completed in Sept or early October. • Construction of new parking lot for Youth Bureau building is substantially complete. • The Ithaca Tompkins County Transportation Council’s (ITCTC) Transportation Improvement Plan (TIP) has been adopted. Engineering submitted 6 projects and led the eﬀort on behalf of the City. The TIP programs approximately $18.5M in federal funds over 5 years to help maintain the City’s bridge and street infrastructure. • Continued coordination with NYSDOT for their Rt 13 repaving & Signals project. Starting this fall and extending through summer 2026 NYSDOT’s contractor will be repaving Rt 13 from Old Elmira Rd to the north City line and replacing traﬃc signals along the corridor. All sidewalks (including Meadow & Fulton Streets) will be brought up to accessibility guidelines. Three oﬀ-corridor new traﬃc signals are also included: Seneca Street at Geneva Street, Seneca Street at Plain Street and Green Street at Plain St (currently a ﬂashing warning signal related to Central Fire Station). 127 Planning and Economic Development • Grants & Funding: The Grant Administrator and Deputy Director for Economic Development are working with UrbanCore LLC to develop the NYS Main St grant application due at the end of July. • Zoning Rewrite Update: Staﬀ will release a Request for Proposals (RFP) in md-August to assist with preparation of the new zoning code. The project will include a Zoning Advisory Committee, and staﬀ will be seeking interested members later in July. • The City, in collaboration with the Town of Ithaca and Tompkins County Planning & Sustainability, is hosting a presentation on Flood Insurance and the New FEMA Maps on July 15th at Town Hall. We will be asking Council members to help us get the word out. More information to come. • STR Implementation: 36 operating permits have been issued. Full enforcement started on June 1, 2025. • In collaboration with DIA and other partners, we are piloting ways to improve safety for pedestrians on the Commons and reduce the risk of pedestrian – bike conﬂicts. We’ll be testing out planter layouts at the end of Home Dairy Alley paired with signage and public service-type announcements. We’ll be soliciting feedback and making sure all layouts are ADA compliant. • The City has oﬃcially opened the Call for Projects for New York State's Downtown Revitalization Initiative (DRI) Application. We encourage you to send out this information to potential organizations, businesses, and entities planning capital investments within or adjacent to the designated DRI boundary. Please direct any questions or proposals to Emma Recckio (erecckio@cityoﬁthaca.org) and Thomas Knipe (tknipe@cityoﬁthaca.org). • City Fleet Electriﬁcation - The Building Division has received (3) new EV’s to modernize our ﬂeet! We have turned in (4) fossil-fuel vehicles and await more EV’s in the future. • The Building Division issued 71 building permits in the ﬁrst six months of 2025 for installation of heat pumps. 19 of the 71 permits were for stand-alone heat pump installations; the remainder were for heat pump installations that were part of larger construction projects. GIAC • Summer Camp has begun! We are at full capacity with 150 campers and 64 staﬀ, including 34 teenage employees through our partnership with YES, Workforce, and YAP, and 12 counselors-in-training. • Alex Haley Municipal Pool is open and busy but needs constant repairs. It is time for a new pool. 18 additional staﬀ were hired for the pool. • Summer youth and adult basketball leagues are underway ﬁve nights a week with 19 youth/teen teams with 10-12 members each, and 7 adult teams with 10 members each. It has been great having the GRC indoor space for games on the many overly hot days we have had. GRC Travel Basketball - CONGRATS! • 8th and 9th grade teams traveled to Orlando at the beginning of July for the World Championships. 350 teams from around the world participated. Eighth grade made it to the elite 8 round, and 9th grade steamrolled over the competition and brought home to Ithaca the AAU World Championship Trophy. We were the only NY team left standing. Kudos to Coach Jordanny Marte-Cuevas (8th grade) and Coaches Rahmel Mack and Tony Love (9th grade) 128 CITY STAFF & CITY MANAGER WORK PLAN 2025 Leadership Team Workplan *Highlighted Rows have updated information from last month. *Green Rows have been completed. Project Name Staff Lead Project Summary/Goals Council's Role Systems of Government Updates/Notes Upgrade Public Communication Dominick R. modernizing communication methods, expanding outreach/building audiences, and improving access to city information. Comms & Public Info practices •Launched three community feedback surveys for the public (planters for bike safety, participatory budgeting, and DRI) •Increased capacity and volume of press releases to increase outward communication to the public and gain traction on issues in the media service delivery, share resources, and address regional challenges Hub accessibility, transparency, and ease of navigation.CivicPlus continuity, knowledge transfer, and workforce sustainability. term investment, maintenance, and space utilization. to improve efficiency and service delivery. The items in this section were identified as citywide priorities from the City's leadership team staff retreat held on January 13, 2025. The City Manager's report will provide continuous updates on these items monthly. They are listed here in the priority order ranked by the staff. We will continue to work on identifying project details and staff leads as the projects move forward. We are structuring our work around the 9 Systems of Government used in the City Manager's 100 Day Plan last January. The 'Council's Role' column will be completed when the item reaches the level of input or approval from Council. 129 Credit Card Policies Wendy C./Alan K.Review and update credit card usage policies to enhance oversight, accountability, and financial controls; determine appropriate fee structure for departments that accept credit cards. stability, aligns with best practices, and ensures sustainable engagement, community services, and inclusive programming.the working group on encampment policy wide response plans, interagency coordination, and staff training. alternative funding sources to ease financial burdens on residents.reductions wherever possible programs, and decision-making processes; update the City's consistency, clarity, and compliance across city operations; develop an annual review process; ensure easy access to the policies by all staff. working on the development of an online site for storage of all citywide policies satisfaction, and foster a positive organizational culture.on September 19 elected officials to enhance governance and policy implementation.Heads meeting and preparing a document that will streamline how Council can interact with different departments through ride- alongs or facility tours streamline communication, and improve access to policies and 130 City Manager Work Plan - Additional Items Project Name Staff Lead Project Summary/Goals Council's Role Systems of Government Updates/Notes Parking Working Group increase enforcement, and maximize revenues. Budget & Finance Encampment Working Group Dominick R. that clarify the city's role in addressing homelessness and encampments in the City with a focus on public safety, housing Continuous Improvement CJC and RPS Dominick R. Integrate Reimagining Public Safety initiatives to advance police reform, determine alternative response methods, and increase Diversity & Equity DRI Tom K. projects to enhance economic development and urban vibrancy. (Pending successful award announcement.) Budget & Finance UPDATE: Planning to submit for next year is underway. Food Trucks Scott R. balance business opportunities with community needs. Customer Service Financial Audits inc. NYS Wendy C. requirements through comprehensive audits and fiscal oversight; Identify barriers to completion of audits; bring the City up to current Budget & Finance at Aug. 6 meeting •2022 audit underway with new firm, Bonadio Fleet Leasing Analysis Rebecca E. vehicle fleet for municipal operations. Budget & Finance the leasing program COMPLETED PIT Re-Org Public Information & Technology department to streamline services related to positions brought council at upcoming meeting in August infrastructure fee to establish financial sustainability and ensure transparency and affordability for residents. brought forward. Customer Service The items in this section are identified as additional priorities for the City Manager's workplan. The City Manager's report will provide continuous updates on these items monthly. This will also serve as the submission of required annual goals to the Common Council by February 15. These are not in priority order. 131 Contract negotiations Deb M.Lead negotiations for key municipal contracts, balancing fiscal responsibility with employee and service provider needs.as an observer to negotiations; council will vote on contracts once ratified by the bargaining unit. result in agreements that can be prepared to be ratified by the respective bargaining units so that we will have final numbers to work with for the 2026 budget Cannabis Enforcement Victor K.Develop local regulations related to legal cannabis sales, ensuring of licensed dispensaries. Vote on legislative changes brought forward. Governance •City Attorney meeting with IPD to coordinate enforcement efforts ARPA Final Reporting Wendy C.Budget & Finance COMPLETED Controller Search Deb M.Mgmt. & Leadership DPW Superintendent Search Deb M.Mgmt. & Leadership FEMA Flood Maps Mike T./Lisa N. and policy changes to mitigate flood risks; develop programs to assist Customer Service resources for homeowners around insurance City Hall Annex Alan K. the lease of offices on Cayuga St. Personnel Budget & Finance Develop and oversee a transparent, strategic budget process that aligns financial planning with city priorities. •Will be holding OpenGov training session for Council Aug. 13 and Town-City Fire Contract Deb M.Budget & Finance Odd-Even Mark V.Customer Service NO UPDATES Busking Scott R.Customer Service NO UPDATES Towing Policy Dominick R. efficient vehicle removal practices; explore aligning and transferring towing responsibilities to the County. Customer Service 132 CITY OF ITHACA 108 East Green Street, Ithaca, New York 14850-6590 Controller's Office Christine Ibert, TO:Common Council FROM:Deputy City Controller, Wendy Cole DATE:August 6, 2025 RE:Controller's Monthly Report- August 2025 ITEM #:8.2 MEMORANDUM ATTACHMENTS: August 2025 Controller report.pdf 133 City of Ithaca – August Controller’s Report Prepared by: Wendy Cole, Deputy Controller Budget Development - Budget work is underway using the new OpenGov software. - Departments are actively submitting updated figures. - New Debt software being utilized this season cutting down on outdated spreadsheet calculation method Finance Department Highlights - 2021 Audit: Completed. - 2022 Audit: In progress. - Staffing: A temporary staff accountant has been hired to assist with workload and prepare for an upcoming retirement at the end of September. Debt Management - Completed the summer borrowing round, consisting solely of Bond Anticipation Notes (BANs). - Paid off one pre-COVID BAN totaling $84,560, opting not to bond. - This decision resulted in an estimated $30,000 savings in financing charges over the life of the bond. - Next round of debt payments is due August 15, 2025. Labor & Staffing – Year to Date Category % of Budget Used Notes Full-Time Staff 44.7% On track Seasonal Staff 73.71% On target due to summer hiring, including Y.E.S. 134