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HomeMy WebLinkAboutMN-IURAGOV-2026-04-17108 E. Green St. Ithaca, NY 14850 (607) 274-6565 MEETING MINUTES ITHACA URBAN RENEWAL AGENCY GOVERNANCE COMMITTEE (GC) 9:00 A.M., Friday, April 17th, 2026 Common Council Chambers, Third Floor 108 E. Green St. (City Hall) │ Ithaca, NY 14850 Present: Kathy Schlather, Chairperson; George McGonigal; Ellen McCollister Excused: Susan Cummings; Donna Fleming, Vice-Chairperson Vacancy: 0 Staff: Nels Bohn; Charles Pyott [virtual] Guests: None I. Call to Order Chairperson Schlather called the meeting to order at 9:06 A.M. II. Agenda Additions/Deletions None. III. Verbal/Written Public Comments None. IV. Review of Meeting Minutes: January 16th, 2026 McCollister moved, seconded by McGonigal to approve the meeting minutes, with no modifications. Carried Unanimously: 3-0 V. New Business: IURA Budget A. 2025 IURA Financial Audit Bohn walked through some key points: • The audit was a clean audit with no deficiencies or recommendations. • Financial statements were prepared on an adjusted accrual basis, which aligns well with grant-based accounting. • IURA financial position remains stable. • A modest increase in the balance sheet was noted due to limited loan activity in 2025. Approved/Adopted: 7/17/26 Governance Committee April 17, 2026 Page 2 of 8 2 • Future operating deficits are anticipated due to inflationary pressures and timing delays in reimbursements for urban renewal projects. • Federal funding uncertainty remains, as proposed Federal budgets continue to recommend eliminating CDBG and HOME funding. • Emphasis on growing importance of non-grant activities, such as urban renewal projects and small business lending, to maintain financial stability. McCollister moved, seconded by McGonigal: Approval of 2025 IURA Financial Audit Report WHEREAS, the Ithaca Urban Renewal Agency (IURA) derives the majority of its finances from grants awarded to the City of Ithaca, and WHEREAS, for financial reporting purposes, the IURA is a blended component unit of the City of Ithaca whose financial activity is reported in the Special Grant Fund, a governmental fund of the City of Ithaca financial statements, and WHEREAS, the IURA contracts separately from the City to have its finances audited within 90 days of the end of its fiscal year to comply with the Public Authorities Accountability Act, and WHEREAS, the IURA received an audited 2025 IURA financial report on April 3, 2026, and WHEREAS, at its April 17, 2026 meeting, the IURA Governance Committee reviewed the financial report and attached correspondence; now, therefore, be it RESOLVED, the IURA hereby approves the Financial Report of the Ithaca Urban Renewal Agency for the period January 1, 2025 through December 31, 2025, prepared by the accounting firm of Insero & Co. CPAs, LLP. Carried Unanimously: 3-0 B. Review of Investment Guidelines Bohn walked through some key points: • All funds are held in FDIC-insured bank accounts. • Balances exceeding insured limits are fully collateralized through a tri-party agreement. • Investment practices are conservative, as required by HUD. • Any interest earned over $500 annually on HUD funds is returned to HUD. Schlather moved, seconded by McCollister: Approval of IURA Investment Guidelines WHEREAS, pursuant to the Public Authorities Accountability Act, as amended, the IURA is required on an annual basis to review its investment guidelines and report, and Governance Committee April 17, 2026 Page 3 of 8 3 WHEREAS, the IURA originally adopted Investment Guidelines on March 25, 2011, and WHEREAS, the Director of Community Development prepared an annual 2025 IURA Investment Report, and WHEREAS, at their April 17, 2026 meeting, the IURA Governance Committee reviewed the IURA Investment Guidelines and the 2025 Investment Report; now, therefore, be it RESOLVED, that the IURA hereby reaffirms its approval of the IURA Investment Guidelines. Carried Unanimously: 3-0 C. 2025 Public Authorities Law (PAL) Reporting Bohn explained that certain reporting questions do not apply to the IURA due to its size and structure. McGonigal moved, seconded by McCollister: Approval of Reports Submitted to NYS Authorities Budget Office (ABO) WHEREAS, pursuant to the Public Authorities Accountability Act, as amended, the IURA is required on an annual basis to submit reports to the New York State Authorities Budget Office (ABO), and WHEREAS, the IURA Director of Community Development is designated to certify accuracy of the reporting, and WHEREAS, the reporting is due to be submitted within 90 days of the end of the fiscal year, and WHEREAS, it is appropriate that IURA members exercise oversight over the staff reporting to the ABO, and WHEREAS, at its meeting of April 17, 2026, the IURA Governance Committee reviewed the reporting and recommends the following action; now, therefore, be it RESOLVED, that the IURA hereby approves FY2025 IURA public authority reports submitted to the New York State Authorities Budget Office, including the following reports: • Budget report • Annual report • Procurement report • Investment report • Certified financial audit report Carried Unanimously: 3-0 Governance Committee April 17, 2026 Page 4 of 8 4 D. Amendment to Independent Contractor Agreement for Accounting Services (Amber Moore) Bohn described the transition from an employee accountant to an independent contractor accountant, citing recruitment challenges related to benefits. He walked through some key points: • Independent contractor works approximately 22 hours per week. • Staff proposed amending the contract to reimburse mileage at the IRS rate when the contractor is required to travel to the office to deliver payroll checks and HUD drawdown documentation. • No reimbursement would be provided for travel time, only mileage. • Estimated travel would occur approximately once every two weeks. • Arrangement would be reviewed annually. Members agreed the proposal was reasonable and supported bringing the matter forward for formal IURA Board consideration at its next meeting. VI. Other Business A. City Policy Priorities Bohn explained that Common Council recently adopted a new set of policy priorities (as described in resolution pasted further below), including: (1) establishing citywide minimum residential density requirements; (2) creating a comprehensive zoning reform package to modernize land use regulations; and (3) consideration of new design standards to streamline and improve the residential and mixed-use property development process. (continued on following page) Governance Committee April 17, 2026 Page 5 of 8 5 Governance Committee April 17, 2026 Page 6 of 8 6 Governance Committee April 17, 2026 Page 7 of 8 7 B. Review of IURA Financials: February 2026 Bohn walked through the Grants Summary and explained that the left-hand “On Schedule” column calls out any projects that are not on schedule and may need attention. The vast majority of projects have been progressing well in terms of expenditures and project completion. Bohn reported all Loan Payments and Lease Payments are current as of today. Governance Committee April 17, 2026 Page 8 of 8 8 C. Community Development Block Grant (CDBG) Program Timely Expenditure — Report Bohn explained that IURA staff has been paying particular attention to this year’s CDBG timely expenditure deadline requirement (including reprogramming certain funds to faster-moving projects) and appears to be in a relatively good position to meet the deadline by June 1st. D. Staff Report Bohn reported the City/IURA finally received official notice of Ithaca’s FY2026 HUD Entitlement Funding allocations, both of which fortunately increased compared to FY2025: • Community Development Block Grant (CDBG) Program $715,084.00 • HOME Investment Partnerships Program (HOME) $286,155.57 Bohn reported the Seneca Street Garage will most likely need some significant maintenance work and future investment. VII. Adjournment The meeting was adjourned by consensus at 10:10 A.M. — END — Minutes prepared by C. Pyott, edited by N. Bohn.