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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