HomeMy WebLinkAboutMN-CC-1993-03-11 March 11, 1993
1
COMMON COUNCIL PROCEEDINGS
CITY OF ITHACA, NEW YORK
Special Meeting 7:00 p.m. March 11, 1993
PRESENT:
Mayor Nichols
Alderpersons (10) - Blanchard, Romanowski, Daley, Efroymson,
Booth,
Johnson, Berg, Golder, Schroeder, Hoffman
OTHERS PRESENT:
City Attorney - Guttman
City Clerk - Paolangeli
City Controller - Cafferillo
Superintendent of Public Works - Gray
Youth Bureau Director - Cohen
PLEDGE OF ALLEGIANCE:
Mayor Nichols led all present in the Pledge of Allegiance to the
American flag.
SPECIAL ORDER OF BUSINESS:
Proposed Sales Tax Agreement with Tompkins County
Mayor Nichols reported to the Council on the meeting that was held
last night between the County and City representatives.
Sales Tax Resolution
By Alderperson Booth: Seconded by Alderperson Romanowski
RESOLVED, That the Mayor is hereby authorized to enter into the
agreement dated March 11, 1993 with the County of Tompkins
regarding the City's support for proposed legislation authorizing
the County to charge an additional 1% sales tax for a total sales
tax of 4% in addition to the 4% imposed by the State of New York,
with that portion of the 1% generated from sales within the City
of Ithaca to be divided between the County and the City so that
the City receives 25% of that 1% and the County receives 75% of
that 1%, and be it further
RESOLVED, That the City of Ithaca's support of such legislation is
provided in consideration of the County of Tompkins' agreement to
provide payment of certain sums to the City of Ithaca for services
which the City provides, as outlined in said agreement, such sum
to total $825,000.00 in 1994 and to be adjusted in subsequent
years for inflation, and be it further
RESOLVED, That the Mayor is hereby authorized to take all
appropriate steps to effectuate the terms of such agreement.
Extensive discussion followed on the floor regarding the proposed
agreement which follows:
This agreement made this day of March 1993 between
the City of Ithaca a municipal corporation, hereinafter referred
to as the "City" and the County of Tompkins a municipal
corporations, hereinafter referred to as the "County".
WHEREAS, the City of Ithaca is a part of Tompkins County and
persons owning real property situate in the City of Ithaca pay not
only City taxes to the City, but also pay County taxes to the
County, and
WHEREAS, the City provides certain services which benefit not only
City residents, but also benefit residents of the County who
reside outside the City limits, including but not limited to
transit services, police protection, roads and bridges, parks and
March 11, 1993
2
recreation, etc., and
WHEREAS, the City also provides certain services, including but
not limited to transit, roads and bridges, criminal prosecution,
youth development services, and recreation mainstreaming, etc.
which are paid for out of the City's general funds, while similar
services provided in the towns and villages of Tompkins County are
paid wholly or partially for out of the County general funds to
which City residents contribute, and
WHEREAS, the County wishes to obtain the City's support for
proposed New York State legislation which would authorize the
County to charge up to a total sales tax of 4%, in addition to the
4% sales tax which is imposed by the State of New York, which
legislation would specifically provide with respect to that
portion of the final 1% which is generated from sales occurring
within the City of Ithaca, that it would be divided between the
City and County with the City's receiving 25% of that 1% and the
County's receiving 75% of that 1%, and
WHEREAS, based on adjusted sales tax reports for 1992 as provided
by the New York State Department of Taxation and Finance, and
assuming continued inflation in the amount of 3% per year, it is
estimated that the difference between the City's receiving 50% of
that 1% and receiving 25% of that 1% exceeds $975,000.00 for
calendar year 1994, and
WHEREAS, the County wishes to contract with the City for the
provision of certain services that the City now provides at its
own expense, which services are paid for wholly or partially by
the County for areas outside the City, and
WHEREAS, the City and County wish to develop mechanisms for more
efficient consolidation of services to be provided by the City and
the County;
NOW, THEREFORE, it is agreed as follows:
1. The City will advise Assemblyman Martin Luster and State
Senator James Seward of this agreement and the City's support for
proposed State legislation authorizing the County to charge an
additional 1% sales tax for a total sales tax of 4%, in addition
to the 4% imposed by the State of New York, with that portion of
the 1% generated from sales within the City of Ithaca to be
divided between the City and the County with the City's receiving
25% of that 1% and the County's receiving 75% of that 1%.
2. The City and County agree to establish a joint committee for
the purpose of specifying methods by which City and County
services for transit, the City Prosecutor Office, youth
development and recreation mainstreaming, as well as other
services and payments to human service agencies may be
consolidated. It is the intention of the City and County that as
City and County services are consolidated this agreement will be
amended accordingly.
3. If the State approves such legislation covering the period
December 1, 1993 through November 30, 1994, the County will pay to
the City for the period December 1, 1993 through November 30, 1994
the sum of $825,000.00. Such payments shall be made in equal
quarterly payments of March 1, June 1, September 1, and December
1.
4. It is understood and expected that the proposed State
legislation authorizing the County to collect the additional 1%
will run for a three (3) year period from December 1, 1993 through
March 11, 1993
3
November 30, 1996. If the legislation is adopted and covers the
period from December 1, 1994 through November 30, 1995, the County
will pay to the City for that period a sum equal to $825,000.00
multiplied by a fraction, the numerator of which is the consumer
price index (CPI-U, Northeast) for the period ending November 30,
1994 and the denominator of which is the equivalent consumer price
index for the period ending November 30, 1993.
5. If the proposed State legislation is adopted and covers the
period from December 1, 1995 through November 30, 1996, the County
will pay to the City for that period, the sum of $825,000.00
multiplied by a fraction, the numerator of which is the consumer
price index for the period ending November 30, 1995 and the
denominator of which is the consumer price index for the period
ending November 30, 1993.
6. If the County is obligated to make payments for the period
from December 1, 1994 through November 30, 1996, they shall be
made in periodic payments as provided in paragraph 3 above.
7. The City currently estimates that it will spend, on an annual
basis, approximately $435,000.00 for transit services, $50,000.00
for the City Prosecutor's Office, $200,000.00 for youth
development services and recreation mainstreaming not supported by
the County, and $180,000.00 for funding human service agencies
approved by the human services coalition, which total amount
exceeds $825,000.00. In consideration of the payments to be made
by the County to the City pursuant to this agreement, the City
agrees to send during the lifetime of this agreement, a total in
excess of $825,000.00 per year for these services, with such
amount to be adjusted annually for inflation as the County's
payments to the City are adjusted for inflation, and to advise the
County on an annual basis as to the exact amount the City is
budgeting for each of the above categories; provided however, that
the City and the County may agree that to the extent the County
takes over the City's payments to human service agencies or any of
those services is consolidated between the City and the County,
that the City's obligation to make payments pursuant to this
agreement will be adjusted accordingly.
8. It is understood and agreed that the terms of this agreement,
including the City's agreement to support this proposed
legislation with the above described division of the additional 1%
sales tax and the County's agreement to make the payments
specified in this agreement, are interrelated and co-dependent.
If the proposed legislation is not passed, the terms of this
agreement shall cease and not be binding upon the parties hereto.
Similarly, if the proposed legislation is passed, but does not
include the entire 3 year period described above or thereafter the
division of that 1% is modified by State law, the terms of this
agreement will cease for the periods of time during which the
proposed legislation as described above is not in effect. It is
specifically understood and agreed that the County's obligation to
make the payments described herein are conditioned on the County's
receiving 75% of the additional 1% sales tax. Similarly, it is
understood and agreed that the City's agreement to support said
proposed legislation is conditioned upon and in consideration of
receiving such payments from the County and that nothing in this
agreement or in the City's support for this proposed legislation
shall be construed to imply the City's support for future similar
legislation.
Amending Resolution
Alderperson Hoffman proposed the following amendments to the
March 11, 1993
4
agreement:
RESOLVED, That on page 2 of the agreement, the second and third
Whereas Clauses be combined to read as follows:
"WHEREAS, the City and the County wish to develop mechanisms for
more efficient and more equatable consolidation of the payment for
services that the City now provides at its own expense, which
services are paid for wholly or partially by the County for areas
outside the City; now, therefore, be it"
RESOLVED, That on page 3 of the agreement, under item #2, after
the word "consolidated", add the following words: "and costs
allocated more equitably among County residents, etc."
RESOLVED, That Item #7 of the agreement be deleted.
Discussion followed on the floor regarding the suggested
amendments. It was the consensus of the Council that the
amendments should be voted on separately.
Amending Resolution to Agreement
By Alderperson Hoffman: Seconded by Alderperson Golder
RESOLVED, That in Item #7, the first 13 lines be stricken from the
agreement so that Item #7 would start with the words "The City
and County may agree, etc."
Ayes (2) - Hoffman, Golder
Nays (8) - Booth, Romanowski, Efroymson, Daley, Johnson,
Berg,
Schroeder, Blanchard
Motion Fails
Further discussion followed on the floor.
Amending Resolution to Agreement
By Alderperson Schroeder: Seconded by Alderperson Daley
RESOLVED, That the Council accept the basic approach but add in
services to amount to $975,000.00.
Ayes (4) - Golder, Schroeder, Daley, Hoffman
Nays (6) - Booth, Romanowski, Blanchard, Berg, Johnson,
Efroymson
Motion Fails
Amending Resolution to Agreement
By Alderperson Efroymson: Seconded by Alderperson Hoffman
RESOLVED, That the words "In consideration for the payments to be
made by the County to the City pursuant to this agreement, the
City agrees to spend during the lifetime of this agreement, a
total in excess of $825,000.00 per year for these services, with
such amount to be adjusted annually for inflation as the County's
payments to the City are adjusted for inflation, and to advise the
County on an annual basis as to the exact amount the City is
spending for each of the above categories; provided, however," be
deleted.
Further discussion followed on the amending resolution.
A vote on the amending resolution resulted as follows:
Ayes (3) - Hoffman, Efroymson, Daley
Nays (7) - Booth, Blanchard, Golder, Romanowski, Schroeder,
March 11, 1993
5
Berg, Johnson
Motion Fails
Amending Resolution to Agreement
By Alderperson Hoffman: Seconded by Alderperson Blanchard
RESOLVED, That in Item #2, after the word "consolidated", add the
following words: "and costs allocated more equitably among County
residents., etc."
Carried Unanimously
Amendment to Resolution
By Alderperson Booth: Seconded by Alderperson Johnson
RESOLVED, That the first five Whereas Clauses from the agreement
become part of the resolution and that a further Whereas Clause be
added to the resolution to read as follows:
"WHEREAS, the City believes it should receive 50% of the
additional 1% sales tax in order to be able to meet its
responsibilities without imposing undue adverse property tax
impacts on the property owners in the City, and"
Carried Unanimously
Amendment to Resolution
By Alderperson Golder: Seconded by Alderperson Johnson
RESOLVED, That a further Whereas Clause be added to the resolution
to read as follows:
"WHEREAS, the City wishes to further the spirit of cooperation
between the City and County;"
Carried Unanimously
A vote on the Main Motion as Amended resulted as follows:
Ayes (6) - Blanchard, Romanowski, Johnson, Efroymson, Booth,
Golder
Nays (4) - Schroeder, Hoffman, Berg, Daley
Carried
The Main Motion as Amended shall read as follows:
WHEREAS, the City of Ithaca is a part of Tompkins County and
persons owning real property situate in the City of Ithaca pay not
only City taxes to the City, but also pay County taxes to the
County, and
WHEREAS, the City provides certain services which benefit not only
City residents, but also benefit residents of the County who
reside outside the City limits, including but not limited to
transit services, police protection, roads and bridges, parks and
recreation, etc., and
WHEREAS, the City also provides certain services, including but
not limited to transit, roads and bridges, criminal prosecution,
youth development and recreation mainstreaming services, etc.
which are paid for out of the City's general funds, while similar
services provided in the towns and villages in Tompkins County are
paid wholly or partially for out of the County general funds to
which City residents contribute, and
WHEREAS, the County wishes to obtain the City's support for
proposed New York State legislation which would authorize the
County to charge up to a total sales tax of 4%, in addition to the
4% sales tax which is imposed by the State of New York, which
legislation would specifically provide with respect to that
March 11, 1993
6
portion of the final 1% which is generated from sales occurring
within the City of Ithaca, that it would be divided between the
City and County with the City's receiving 25% of that 1% and the
County's receiving 75% of that 1%, and
WHEREAS, based on adjusted sales tax reports for 1992 as provided
by the New York State Department of Taxation and Finance, and
assuming continued inflation in the amount of 3% per year, it is
estimated that the difference between the City's receiving 50% of
that 1% and receiving 25% of that 1% exceeds $975,000.00 for
calendar year 1994, and
WHEREAS, the City believes it should receive 50% of the additional
1% sales tax in order to be able to meet its responsibilities
without imposing undue adverse property tax impacts on the
property owners in the City, and
WHEREAS, the City wishes to further the spirit of cooperation
between the City and the County; now, therefore, be it
RESOLVED, That the Mayor is hereby authorized to enter into the
agreement dated March 11, 1993 with the County of Tompkins
regarding the City's support for proposed legislation authorizing
the County to charge an additional 1% sales tax for a total sales
tax of 4% in addition to the 4% imposed by the State of New York,
with that portion of the 1% generated from sales within the City
of Ithaca to be divided between the County and the City so that
the City receives 25% of that 1% and the County receives 75% of
that 1%, and be it further
RESOLVED, That the City of Ithaca's support of such legislation is
provided in consideration of the County of Tompkins' agreement to
provide payment of certain sums to the City of Ithaca for services
which the City provides, as outlined in said agreement, such sum
to total $825,000.00 in 1994 and to be adjusted in subsequent
years for inflation, and be it further
RESOLVED, That the Mayor is hereby authorized to take all
appropriate steps to effectuate the terms of such agreement.
The aforementioned agreement shall read as follows:
This agreement made this day of March 1993 between
the City of Ithaca a municipal corporation, hereinafter referred
to as the "City" and the County of Tompkins a municipal
corporations, hereinafter referred to as the "County".
WHEREAS, the City of Ithaca is a part of Tompkins County and
persons owning real property situate in the City of Ithaca pay not
only City taxes to the City, but also pay County taxes to the
County, and
WHEREAS, the City provides certain services which benefit not only
City residents, but also benefit residents of the County who
reside outside the City limits, including but not limited to
transit services, police protection, roads and bridges, parks and
recreation, etc., and
WHEREAS, the City also provides certain services, including but
not limited to transit, roads and bridges, criminal prosecution,
youth development services, and recreation mainstreaming, etc.
which are paid for out of the City's general funds, while similar
services provided in the towns and villages of Tompkins County are
paid wholly or partially for out of the County general funds to
March 11, 1993
7
which City residents contribute, and
WHEREAS, the County wishes to obtain the City's support for
proposed New York State legislation which would authorize the
County to charge up to a total sales tax of 4%, in addition to the
4% sales tax which is imposed by the State of New York, which
legislation would specifically provide with respect to that
portion of the final 1% which is generated from sales occurring
within the City of Ithaca, that it would be divided between the
City and County with the City's receiving 25% of that 1% and the
County's receiving 75% of that 1%, and
WHEREAS, based on adjusted sales tax reports for 1992 as provided
by the New York State Department of Taxation and Finance, and
assuming continued inflation in the amount of 3% per year, it is
estimated that the difference between the City's receiving 50% of
that 1% and receiving 25% of that 1% exceeds $975,000.00 for
calendar year 1994, and
WHEREAS, the County wishes to contract with the City for the
provision of certain services that the City now provides at its
own expense, which services are paid for wholly or partially by
the County for areas outside the City, and
WHEREAS, the City and County wish to develop mechanisms for more
efficient consolidation of services to be provided by the City and
the County;
NOW, THEREFORE, it is agreed as follows:
1. The City will advise Assemblyman Martin Luster and State
Senator James Seward of this agreement and the City's support for
proposed State legislation authorizing the County to charge an
additional 1% sales tax for a total sales tax of 4%, in addition
to the 4% imposed by the State of New York, with that portion of
the 1% generated from sales within the City of Ithaca to be
divided between the City and the County with the City's receiving
25% of that 1% and the County's receiving 75% of that 1%.
2. The City and County agree to establish a joint committee for
the purpose of specifying methods by which City and County
services for transit, the City Prosecutor Office, youth
development and recreation mainstreaming, as well as other
services and payments to human service agencies may be
consolidated and costs allocated more equitably among County
residents. It is the intention of the City and County that as
City and County services are consolidated this agreement will be
amended accordingly.
3. If the State approves such legislation covering the period
December 1, 1993 through November 30, 1994, the County will pay to
the City for the period for December 1, 1993 through November 30,
1994 the sum of $825,000.00. Such payments shall be made in equal
quarterly payments on March 1, June 1, September 1, and December
1.
4. It is understood and expected that the proposed State
legislation authorizing the County to collect the additional 1%
will run for a three (3) year period from December 1, 1993 through
November 30, 1996. If the legislation is adopted and covers the
period from December 1, 1994 through November 30, 1995, the County
will pay to the City for that period a sum equal to $825,000.00
multiplied by a fraction, the numerator of which is the consumer
March 11, 1993
8
price index (CPI-U, Northeast) for the period ending November 30,
1994 and the denominator of which is the equivalent consumer price
index for the period ending November 30, 1993.
5. If the proposed State legislation is adopted and covers the
period from December 1, 1995 through November 30, 1996, the County
will pay to the City for that period, the sum of $825,000.00
multiplied by a fraction, the numerator of which is the consumer
price index for the period ending November 30, 1995 and the
denominator of which is the consumer price index for the period
ending November 30, 1993.
6. If the County is obligated to make payments for the period
from December 1, 1994 through November 30, 1996, they shall be
made in periodic payments as provided in paragraph 3 above.
7. The City currently estimates that it will spend, on an annual
basis, approximately $435,000.00 for transit services, $50,000.00
for the City Prosecutor's Office, $200,000.00 for youth
development services and recreation mainstreaming not supported by
the County, and $180,000.00 for funding human service agencies
approved by the human services coalition, which total amount
exceeds $825,000.00. In consideration of the payments to be made
by the County to the City pursuant to this agreement, the City
agrees to spend during the lifetime of this agreement, a total in
excess of $825,000.00 per year for these services, with such
amount to be adjusted annually for inflation as the County's
payments to the City are adjusted for inflation, and to advise the
County on an annual basis as to the exact amount the City is
budgeting for each of the above categories; provided however, that
the City and the County may agree that to the extent the County
takes over the City's payments to human service agencies or any of
those services is consolidated between the City and the County,
that the City's obligation to spend money pursuant to this
paragraph and the County's obligation to make payments pursuant to
this agreement will be adjusted accordingly.
8. It is understood and agreed that the terms of this agreement,
including the City's agreement to support this proposed
legislation with the above described division of the additional 1%
sales tax and the County's agreement to make the payments
specified in this agreement, are interrelated and co-dependent.
If the proposed legislation is not passed, the terms of this
agreement shall cease and not be binding upon the parties hereto.
Similarly, if the proposed legislation is passed, but does not
include the entire 3 year period described above or thereafter the
division of that 1% is modified by State law, the terms of this
agreement will cease for the periods of time during which the
proposed legislation as described above is not in effect. It is
specifically understood and agreed that the County's obligation to
make the payments described herein are conditioned on the County's
receiving 75% of the additional 1% sales tax. Similarly, it is
understood and agreed that the City's agreement to support said
proposed legislation is conditioned upon and in consideration of
receiving such payments from the County and that nothing in this
agreement or in the City's support for this proposed legislation
shall be construed to imply the City's support for future similar
legislation.
ADJOURNMENT:
On a motion the meeting adjourned at 9:25 p.m.
March 11, 1993
9
Callista F. Paolangeli Benjamin Nichols
City Clerk Mayor