HomeMy WebLinkAboutMN-CC-2000-09-14COMMON COUNCIL PROCEEDINGS
CITY OF ITHACA, NEW YORK
Special Meeting 5:00 p.m. September 14, 2000
PRESENT:
Mayor Cohen
Alderpersons: (8)Pryor, Manos, Sams, Farrell, Blumenthal,
Vaughan, Spielholz, Hershey
OTHERS PRESENT:
City Clerk – Conley Holcomb
City Chamberlain – Parsons
City Controller – Cafferillo
Director of Human Resources – Michell-Nunn
EXCUSED:
Alderpersons: Taylor, Glasstetter
PLEDGE OF ALLEGIANCE:
Acting Mayor Manos led all present in the Pledge of
Allegiance to the American Flag.
ADDITIONS OR DELETIONS TO THE AGENDA:
Mayor Cohen requested the addition of Item 2.3 Elimination
of Clothing Sales Tax – Discussion.
No Council member objected.
SPECIAL ORDER OF BUSINESS:
2000 Compensation for Confidential Employees
By Alderperson Farrell: Seconded by Alderperson Pryor
RESOLVED, That for the period of January 1, 2000 through
December 31, 2002, all employees not covered by a formal
labor contract, excluding positions designated as
management, be granted salary increases and fringe benefits
in accordance with the provisions of the CSEA Administrative
Unit contract.
Carried Unanimously
Elimination of Clothing Sales Tax
Mayor Cohen distributed copies of the Tompkins County Board
of Representatives Sub-committee Resolution regarding the
elimination of clothing sales tax that will be considered by
the Board next week. The proposed effective date for this
resolution is March 1, 2002.
City Controller Cafferillo reported that the projected
impact of the elimination of clothing sales tax on the City
would be approximately $350,000 per year. This amount was
derived from reports compiled by the Association of
Counties, and the NYS Department of Finance and Taxation.
City Controller Cafferillo is attempting to retrieve data
from New York State regarding how much money was lost from
the elimination of the State portion of sales tax, in the
City of Ithaca, since March, 2000. He further reported that
approximately $180,000 was lost through the exemption of
sales tax on textbooks.
Extensive discussion followed on the floor regarding the
City’s options:
1.) The City could eliminate clothing sales tax with
Tompkins County
September 14, 2000
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2.) The County could eliminate their portion of the sales
tax, while the City retains its 1 ½%
3.) The effective date of the elimination of sales tax
could be extended
Alderperson Sams arrived at the meeting at 5:25 pm.
Further discussion followed regarding the possibility of
future property tax revenues offsetting the loss of sales
tax revenues.
Cortland, Broome, Schuyler, and Tioga Counties opted to
eliminate the clothing sales tax, however northern counties
have not considered it as yet.
Alderperson Vaughan stated that she feels it is premature to
consider the elimination of clothing sales tax at this
point, but would be agreeable to re-visiting the issue in
one year when more data is available.
The Mayor was asked to present the following resolution to
the Tompkins County Board of Representatives:
Resolution
By Alderperson Vaughan: Seconded by Alderperson Blumenthal
WHEREAS, the City of Ithaca is aware of the County Board’s
deliberations regarding the elimination of sales tax on
clothing items worth less than $110, which would result in a
significant loss of revenue for both the City and the
County, and
WHEREAS, the City of Ithaca has suffered a loss of tax
revenues in recent years, including the elimination of sales
tax on textbooks and the removal of properties from the tax
rolls, and
WHEREAS, sales tax is paid by permanent residents, students
and area visitors, and a decrease in sales tax revenue will
result in an increase in the more regressive property tax,
and
WHEREAS, the City of Ithaca is moving forward with
development plans that will provide additional revenues for
the City and offer local consumers more choices, and
WHEREAS, it is documented that the lack of consumer choice
in our County has resulted in a leakage of millions of
dollars of sales to adjacent counties, and
WHEREAS, no such documentation exists to determine the
effect on consumers of a clothing sales tax in our County
when some adjacent counties do not have such a tax, and
WHEREAS, the development in both the City of Ithaca and the
Village of Lansing of shopping alternatives similar to those
that exist in adjacent counties will enable the County to
determine what, if any, leakage still occurs due to the
existence of the clothing sales tax; now, therefore, be it
RESOLVED, That the Common Council of the City of Ithaca
urges the County Board to not take any action on the
elimination of the clothing sales tax in our County until
such time as the data is available to make a more informed
decision, and, be it further
September 14, 2000
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RESOLVED, That if the County Board feels compelled to act on
this matter at this time, that it consider delaying the
implementation date of the tax elimination to March 2003.
Carried Unanimously
Possible Disposition of Property
Executive Session
By Alderperson Blumenthal: Seconded by Alderperson Vaughan
RESOLVED, That Common Council adjourn into Executive Session
to discuss the possible disposition of property.
Carried Unanimously
Reconvene:
Common Council reconvened into Regular Session with no
formal action taken.
ADJOURNMENT:
On a motion the meeting was adjourned at 6:35 p.m.
Julie Conley Holcomb, CMC Alan J. Cohen,
City Clerk Mayor