HomeMy WebLinkAbout02-26-14 City Administration Committee Meeting AgendaCA Meeting
City Administration Committee
DATE: February 26, 2014
TIME: 6:00 pm
LOCATION: 3rd Floor,
City Hall, Council Chambers
AGENDA ITEMS
Item Voting
Item?
Presenter(s) Time
Allotted
Chair, Deb Mohlenhoff
1.Call To Order *Note: We will review the number of 15 Min*
1.1 Agenda Review No cards received at the beginning of each
1.2 Review and Approval of Minutes Yes meeting and adjust time if needed.
1.3 Statements from the Public No
1.4 Statements from Employees No
1.5 Council Response No
(6:15 p.m.)
2.Standing Sub-Committee and Staff Reports
3.City Administration, Human Resources, and Policy
3.1 Authorization to Accept and Adoption the Yes Julie Holcomb, City Clerk 10 Min
Multi-Jurisdictional All-Hazard Mitigation
Plan Update
3.2 Approval of Extension of Exemption from Yes Ari Lavine, City Attorney 10 Min
Real Property Taxes and Provision for In-Lieu
Payments, with Regard to City of Ithaca Tax
Parcel Numbers 104.-1-2 Pursuant to Section 52
of the Public Housing Law of the State of
New York.
3.3 Attorney - 2014 Sidewalk Improvement Yes Ari Lavine, City Attorney 15 Min
District Amendments Concerning Certain
Vacant Lots
3.4 IURA - Cayuga Green Project - Endorsement Yes Nels Bohn, Director, IURA 15 Min
of Requested 28-Day Extension to Sales
Contract for Parcel “D” of Cayuga Green II, LLC
3.5 Transfer of Function and Budget for Parking Yes Steve Thayer, Controller 10 Min
Enforcement Schelley Michell-Nunn
(7:15 p.m.)
4.Finance, Budget, and Appropriations
4.1 IPD - Request to Amend 2013 IPD Budget Yes Scott Andrew, Deputy Controller 5 Min
(7:20 p.m.)
5.Performance Measures No Kevin Sutherland, Chief of Staff 10 Min
(7:30 p.m.)
6.GPA Transition No Julie Holcomb, City Clerk 10 Min
(7:40 p.m.)
7.2015 Budget Process – Discussion No All 40 Min
(8:20 p.m.)
If you have a disability that will require special arrangements to be made in order for you to fully participate in the
meeting, please contact the City Controller’s Office at 607-274-6576 at least 48 hours before the meeting.
CA MEETING AGENDA
February 26, 2014
Continued
8.Meeting Wrap-up
5.1 Announcements No All 5 Min
5.2 Review Agenda Items for next meeting No
5.3 Adjourn Yes
(8:25 p.m.)
Committee Charge: The CA committee will:
Review financial and administrative issues pertaining to the City, along with items relating to the City of Ithaca workforce
environment, intergovernmental relations and human resource
If you have a disability that will require special arrangements to be made in order for you to fully participate in the
meeting, please contact the City Controller’s Office at 607-274-6576 at least 48 hours before the meeting.
3.City Administration, Human Resources, and Policy
3.1 Authorization to Accept and Adoption the Multi-Jurisdictional All-Hazard Mitigation
Plan Update
WHEREAS, the Tompkins County Planning Department, with the assistance from Barton &
Loguidice, P.C., has gathered information and prepared the Multi-Jurisdictional All-Hazard
Mitigation Plan Update for Tompkins County, New York, and
WHEREAS, the Multi-Jurisdictional All-Hazard Mitigation Plan Update for Tompkins County,
New York has been prepared in accordance with the Disaster Mitigation Act of 2000 and Title 44
Code of Federal Regulations (CFR), Part 201, and
WHEREAS, Title 44 CFR, Chapter 1, Part 201.6(c)(5) requires each local government
participating in the preparation of a Multi-Jurisdictional Mitigation Plan or Plan Update to accept
and adopt such plan, and
WHEREAS, the City of Ithaca, has reviewed the 2013 Hazard Mitigation Plan Update, has found
the document to be acceptable, and as a local unit of government, has afforded its citizens an
opportunity to comment and provide input regarding the Plan Update and the actions included in
the Plan, and
WHEREAS, the City of Ithaca, will consider the Tompkins County HMP Update during the
implementation and updating of local planning mechanisms, and will incorporate the hazard
assessment data, hazard vulnerabilities, and mitigation actions in these mechanisms, whe`re
applicable; now, therefore, be it
RESOLVED, That the City of Ithaca, as a participating jurisdiction, adopts the Multi-
Jurisdictional All-Hazard Mitigation Plan Update for Tompkins County, New York, dated
December 2013.
*The 230 page plan can be found at:
http://www.tompkinscountyny.gov/files/planning/community%20planning/documents/Tompkins%
20County%20HMP%20Final%20Draft%2001-16-14.pdf
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3.City Administration, Human Resources, and Policy
.2 Approval of Extension of Exemption from Real Property Taxes and Provision for In-Lieu
Payments, with Regard to City of Ithaca Tax Parcel Numbers 104.-1-2 Pursuant to Section
52 of the Public Housing Law of the State of New York.
WHEREAS, the Ithaca Housing Authority (hereinafter referred to as the “IHA”) is a municipal
housing authority created and established by virtue of §429 of the Public Housing Law and is the
current owner of the lands and premises in the City of Ithaca, County of Tompkins, State of New
York know as 800 South Plain Street (Titus Towers) (T.P # 104.-1-2) (hereinafter referred to as the
“Property”) which property is used for the provision of affordable rental housing to qualified
persons or families of low income; and
WHEREAS, pursuant to §52(3) of the Public Housing Law of the State of New York, the IHA, as
a municipal housing authority has been entitled to and has enjoyed an exemption from real
property taxes subject to certain required payments in lieu of such taxes; and
WHEREAS, pursuant to §52(5) of the Public Housing Law of the State of New York the tax
exemptions from real property taxes shall not operate for a period of more than fifty years,
commencing in each instance from the date on which the benefits of such exemption first became
available and effective; and
WHEREAS, pursuant to §52(6) of the Public Housing Law of the State of New York the IHA, as a
municipal housing authority that received the tax exemption specified above may upon the
expiration of the tax exemption period be granted an additional tax exemption period of up to fifty
years;
WHEREAS, the first tax exemption period on 800 South Plain Street (Titus Towers) (T.P # 104.-
1-2) is believed to have been granted for a forty year period on or about March 1, 1974.
WHEREAS, as a result of the expiration of the exemption for 800 South Plain Street (Titus
Towers) (T.P # 104.-1-2) and pursuant to §52(5) of the Public Housing Law of the State of New
York the IHA now seeks an extension of the effective date for an extension of the tax exemption
period for an additional forty (40) year period to commence March 1, 2014 for the following
property: 800 South Plain Street (Titus Towers) (T.P # 104.-1-2); and
WHEREAS, that pursuant to §52 of the Public Housing Law of the State of New York and since
the inception of the initial tax abatement period, the IHA has annually remitted to the City of
Ithaca Payments in Lieu of Taxes (hereinafter referred to as “Pilot”) pursuant to a Pilot Agreement
between the IHA and the City of Ithaca; and
WHEREAS, the City of Ithaca has determined that the continued provision of affordable rental
housing to qualified persons or families of low income by the IHA is beneficial to and in the long
term best interests of the public, now, therefore, be it
RESOLVED, that the Common Council of the City of Ithaca pursuant to§52(5) of the Public
Housing Law of the State of New York hereby grants to the following property, 800 South Plain
Street (Titus Towers) (T.P # 104.-1-2) a tax exemption from real property taxes levied by the City
of Ithaca and other local taxing authorities for an additional forty (40) years period upon the
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condition that commencing on said new effective date the IHA make annual payments in lieu of
taxes to the City of Ithaca and shall continue to make such annual payments for the duration of the
exemption period; and it is further
RESOLVED, that the effective date for the foregoing tax exemption period shall be retroactive to
March 1, 2014 and the expiration date shall be March 1, 2054; and it is further
RESOLVED, that the Mayor upon the advice of the City Attorney and the City Controller and on
behalf of the City of Ithaca is hereby authorized and requested to execute and deliver to any
pertinent party an agreement between the City of Ithaca and the IHA setting forth as necessary the
details of the payments in lieu of taxes, and to take any and all action necessary and/or required to
effectuate or verify such payments or tax exemption.
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3.City Administration, Human Resources, and Policy
.3 2014 Sidewalk Improvement District Amendments Concerning Certain Vacant Lots
Local Law No. ____-2014
A local law entitled “2014 Sidewalk Improvement District Amendments Concerning Certain
Vacant Lots”
WHEREAS the City amended Section C-73 of the City Charter in 2013 by creating five Sidewalk
Improvement Districts (each a “SID”) for the construction and repair of sidewalk, and assessing
each property located in each SID for the benefits received by the property from said local
improvements, and
WHEREAS the Common Council concludes that it is appropriate to adjust the assessments for
certain small, vacant lots under the SID assessment formula to more accurately reflect the benefits
from the sidewalk construction and repair received by those properties, and
WHEREAS certain other amendments to Section C-73 are desirable in order to improve the SID
system, and
WHEREAS pursuant to Municipal Home Rule Law Section 10(1)(ii)(c)(3) the City of Ithaca is
authorized to adopt a local law relating to the authorization, making, confirmation, and correction
of benefit assessments for local improvements,
BE IT ENACTED by the Common Council of the City of Ithaca as follows:
Section 1. Legislative Findings, Intent, and Purpose.
Pursuant to Municipal Home Rule Law Section 10(1)(ii)(c)(3) the City of Ithaca is authorized to
adopt a local law relating to the authorization, making, confirmation, and correction of benefit
assessments for local improvements. The Common Council concludes that certain adjustments to
the SID assessment formula are appropriate.
The Common Council makes the following findings of fact:
A. Vacant lots located in a SID receive a benefit from the SID system, which may
include relief from the responsibility for constructing or repairing the sidewalk
located on the lot and an increase in market value from the presence of a high-
quality sidewalk network around the property.
B. Although small, vacant lots are already assessed a reduced amount due to the lack
of any buildings located on the lot, it is equitable to further reduce the fee assessed
to certain smaller, vacant lots to better reflect the benefit received from the SID
system by those lots.
C. The owner of a lot which is approved for a past work credit that is larger than the
lot’s SID assessment in a given year should be able to apply the remaining credit to
other parcels in the same SID that are owned by the same owner.
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Section 2. Charter Amendments.
Section C-73(C) of the Ithaca City Charter is hereby amended as follows:
C. Assessment Formula.
(1) Definitions.
ANNUAL MAINTENANCE FEE
The Annual Maintenance Fee for Non-Developable Lots and Sliver
Lots is zero dollars ($0.00); for Low-Foot-Traffic Lots, it is
seventy dollars ($70.00); and for all other Lots, it is one hundred and
forty dollars ($140.00).
BUILDING SQUARE FOOTAGE
The total square footage of all buildings on a Lot as recorded by
the Tompkins County Department of Assessment.
COST OF PAST WORK
The total sum, including labor and materials, actually paid for Past
Work; provided, however, that none of the following shall be
included: (i) costs exceeding fifteen dollars ($15.00) per square foot
of Past Work completed; or, (ii) any overhead fee, interests or
penalties imposed for failure to perform Sidewalk Construction or
Repair pursuant to the Charter or City Code, including but not
limited to Section C-73.1(E) of the Charter.
FRONT FEET
The length of perimeter, measured in feet, by which a Lot abuts the
line of the public street or streets; provided that, if a Lot’s
perimeter along the line of the public street or streets is bisected
such that a portion of the perimeter is within a SID and a
portion of the perimeter is not located within any SID, only that
portion of the perimeter within a SID shall be included; and
provided further that a Sliver Lot’s Front Feet shall be deemed
to be the lesser of (i) the Lot’s actual Front Feet or (ii) one
hundred and ten (110) feet.
LOT
Lot or parcel of land, as set forth by the current City of Ithaca Tax
Maps on file with the Tompkins County Department of Assessment.
LOT SQUARE FOOTAGE
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The total area of a Lot measured in square feet, as recorded by
the Tompkins County Department of Assessment, or as
otherwise calculated by that Department.
LOW-FOOT-TRAFFIC LOTS
Those Lots not qualifying as Sliver Lots with a Property Class
Code of 210, 215, 220, 240, 250, [or ]270, 311, or 312, or
substantially identical successor designations.
NON-DEVELOPABLE LOTS
Those Vacant Lots not qualifying as Sliver Lots with a Lot
Square Footage less than the minimum lot size requirements for
development under the City of Ithaca Zoning Ordinance for the
zoning district in which the Lot is located, as certified by the
Director of Planning and Development or his or her designee
pursuant to Subsection (C)(3) hereof; provided, however, that if
a zoning district has more than one minimum lot size, the
relevant minimum lot size for this purpose shall be the smallest
minimum lot size for that zoning district that is not subject to
adjustments for residency or number of units.
PAST WORK
Sidewalk Construction or Repair performed on a Lot located in and
subject to assessments as part of a Sidewalk Improvement District,
and permitted by and performed in accordance with the general
drawings and specifications established by the Office of City
Engineer, provided that such work is (i) performed at the cost of the
property owner of the Lot upon which the work is performed or (ii)
funded by documented contributions made to a business
improvement district established by Chapter 149 of the City Code by
the property owner of a Lot located in said business improvement
district for the sole purpose of performing Sidewalk Construction
and Repair; and provided further that work completed as required by
a site plan review pursuant to Chapter 276 of the City Code is
excluded.
PROPERTY CLASS CODE
The property type classification code, as defined by the New York
State Office of Real Property Services in the Assessors’ Manual, or
such other substantially similar documentation later produced
by that office, assigned to a Lot by the Tompkins County
Department of Assessment, as may be updated by that Department
from time to time.
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SIDEWALK CONSTRUCTION OR REPAIR
Construction or repair of any public sidewalk or footpath intended
for the use of pedestrians in a City park or approximately following
along the line of the public street or streets upon which the Lot
fronts, including but not limited to sidewalk curb cuts and curb
accessibility ramps, and, other actions determined by the Board of
Public Works to be necessary to the construction or repair of said
sidewalk or footpath, including but not limited to, any paving, earth
work, drainage, and appurtenances; provided, however, that the
construction or repair of driveway cuts, aprons, or a pedestrian mall
(as that term is defined in Section C-89(B) of the Charter) is
excluded.
SLIVER LOTS
Those Vacant Lots with a Lot Square Footage equal to two
thousand (2,000) square feet or less.
[SQUARE FOOTAGE
The total square footage of all buildings on a Lot as recorded by the
Tompkins County Department of Assessment.]
VACANT LOTS
Those Lots with a Property Class Code between 300 and 399, or
substantially identical successor designations.
(2) Each Lot in a SID shall be annually assessed for work to be performed in the
district as follows: Annual Maintenance Fee plus Square Footage Fee plus
Frontage Fee less Past Work Reduction.
(a) Square Footage Fee. The Square Footage Fee for all Low-Foot-
Traffic Lots shall be $0.00. For all other Lots, the Lot’s Square
Footage Fee shall be equal to the Lot’s Building Square Footage
times $0.015.
(b) Frontage Fee. The Frontage Fee for all Low-Foot-Traffic Lots shall
be $0.00. For all other Lots, the Frontage Fee shall be $30.00 for
each fifty-five (55) feet of Front Feet or portion thereof.
(c) Past Work Reduction. A Lot’s assessment under this Section shall be
reduced as set forth herein.
[1] A Lot is eligible for a reduction for the Cost of Past Work for
twenty (20) years from the date the Past Work was
substantially completed (“Reduction Period”). In each year of
the Reduction Period for which an assessment, if any, is
made pursuant to this Section, the Lot’s Past Work Reduction
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shall be an amount equal to one-twentieth (1/20) of the Cost
of Past Work. Should the allowable reduction for the Cost of
Past Work be greater than a Lot’s assessment under this
Section in any given year, the Lot owner shall not be entitled
to the difference, and the difference shall not apply to the
assessment for any other year; provided, however, that if
the owner of record of the Lot is the owner of record of
other Lots located within the same SID, the owner of
record may choose to apply this difference to the
assessments made pursuant to this Section on the owner
of record’s other Lots located in the same SID for the
same year in which the difference occurs by giving notice
of such choice, including the tax parcel number and
sufficient proof of current ownership for each lot affected,
to the City Chamberlain no later than the deadline for
providing evidence for a Past Work Reduction pursuant
to subsection [2] below; and provided further that any
such notice is valid to reduce assessments for only the
immediately ensuing fiscal year.
[2] The Lot owner must provide sufficient evidence to the
Superintendent of Public Works or his or her designee of the
nature and location of the Past Work performed, the Cost of
the Past Work, and the date the Past Work was substantially
completed. Such evidence must be provided no later than
May 1 of the year preceding the fiscal year for which the
owner seeks a Past Work reduction; provided, however, that
in the first fiscal year following the year of enactment of this
Local Law, such proof must be provided no later than the
deadline, if any, established by the Board of Public Works,
and if no such deadline is established, such proof must be
provided no later than February 1 of that fiscal year. If the
request is approved by the Superintendent of Public Works or
his or her designee, the Past Work reduction shall
automatically recur in each remaining year of the Reduction
Period. The Lot owner may appeal the determination of the
Superintendent of Public Works or his or her designee to the
Board of Public Works at an open meeting thereafter.
(3) Certification of Non-Developable Lots. The owner of a Lot may file an
application with the Director of Planning and Development or his or
her designee to have the lot certified as a Non-Developable Lot. Such
applications must be filed no later than the deadline for providing
evidence for a Past Work Reduction pursuant to subsection (c)[2]
above. Such certification shall be granted only to those Lots not
qualifying as Sliver Lots with a Lot Square Footage less than the
minimum lot size required for development by the City of Ithaca
Zoning Ordinance for the zoning district in which the Lot is located at
the time of application. Once granted, the certification shall continue to
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be in effect for the Lot, regardless of subsequent changes in ownership,
until the end of the fiscal year during which: (i) the Lot Square Footage
increases for any reason to an amount in excess of the minimum lot size
required for development; or (ii) the minimum Lot size for
development, as may be revised or amended from time to time, in the
zoning district in which the Lot is located, is reduced to an amount
equal to or lesser than the Lot Square Footage. The owner of a Lot that
has received a certification pursuant to this provision shall notify the
Director Planning and Development or his or her designee of any
change in the Lot Square Footage.
Section 3. Severability Clause.
Severability is intended throughout and within the provisions of this Local Law. If any section,
subsection, sentence, clause, phrase, or portion of this Local Law is held to be invalid or
unconstitutional by a court of competent jurisdiction, then that decision shall not affect the validity
of the remaining portions of this Local Law or of those portions of Section C-73 not amended by
this Local Law.
Section 4. Effective and Operative Date.
This Local Law shall be effective, following the passage of forty-five (45) days after the adoption
of this Local Law and after filing in the office of the Secretary of State, retroactive to January 1,
2014. This Local Law is subject to referendum on petition pursuant to Municipal Home Rule Law
Section 24.
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M E M O R A N D U M
To: City Administration Committee
From: Ari Lavine, City Attorney
Date: February 14, 2014
Subject: Amendments to the Sidewalk Improvement
District Assessment Formula for Certain Vacant Lots
_________________________________________________________________
As you know, in September 2013 Council enacted a new Charter Section C-73 that replaced the
prior, troubled system of financing sidewalk construction and repair with a system based on five
Sidewalk Improvement Districts (each a “SID”) financed by an assessment formula under which
each tax parcel is assessed for the benefit the property receives from a network of sidewalks
throughout the district.
As passed last year, the SID law consciously reflected the value received even by vacant lots
from the SID system, including increased development value from nearby, high-quality
sidewalks. However, some unforeseen consequences of the law’s structure, and resulting public
feedback, prompt me now to propose a minor amendment with modest financial impact Citywide
but improved user experience for a small group of owners.
Specifically, this amendment would adjust the assessments imposed on three categories of vacant
properties:
1.Sliver Lots, defined as vacant lots with an area equal to or less than 2,000 square feet,
2.Non-Developable Lots, meaning lots sufficiently small that—though over 2,000 square
feet in area—do not permit of development under the applicable zoning ordinance, and
3.Vacant Residential lots, meaning larger vacant lots that—though developable per
applicable zoning—are characterized by the Department of Assessment as lots likely to
be developed for residential use when and if developed at all.
CITY OF ITHACA
108 East Green Street Ithaca, New York 14850-6590
OFFICE OF THE CITY ATTORNEY
Aaron O. Lavine, City Attorney Telephone: 607/274-6504
Robert A. Sarachan, Assistant City Attorney Fax: 607/274-6507
Krin Flaherty, Assistant City Attorney
Jared Pittman, Assistant City Attorney
Jody Andrew, Executive Assistant
CA Item 3.3
The proposed amendments would assess sliver lots and non-developable lots based solely on the
lot’s frontage on a public street. The rate of the assessment would be the same as the frontage fee
assessed on non-Low Foot Traffic Lots; currently, a frontage fee of $30 is assessed for each fifty-
five feet or portion thereof. Additionally, the assessment for sliver lots would be capped at two
frontage units (currently, $60 total). Meanwhile, the proposed amendment would assess larger
vacant residential lots (i.e., (3) above) as Low Foot Traffic Lots (i.e., the same as a one- or two-
family home; currently $70 per year).
The assessment adjustment described in (3) carries most of the financial impact of these
adjustments, reducing the Citywide assessment levy by approximately $19,000, approximately
$10,000 of which would be a reduction in SID #5, containing West Hill. This would constitute
an approximately 8% reduction in the total assessment levy for that District. Of the
approximately $19,000 reduction citywide, approximately $4000 would take the form of reduced
assessments on City-owned lands. (In contrast to $19,000, the assessment adjustments described
in items (1) and (2) above are anticipated to reduce the Citywide assessment levy by
approximately $5000 and $7000 respectively.)
There has also been some discussion regarding vacant lots that have areas in excess of the sizes
indicated above, but that have no frontage upon a public street. This amendment does not alter
the assessment for such lots (unless they are characterized as vacant residential lots, per item (3)
above), because they may in some cases contain great value that can ultimately benefit from the
sidewalks in their district; imagine a large, vacant, commercial lot, set back from the street, that
might in a few years contain a large store with much foot traffic. Should the Committee’s views
differ on this topic, I am glad to offer language to accommodate.
Lastly, the proposed amendment also includes a provision allowing an owner of more than one
lot in the same SID to apply excess past work credit—i.e., the difference between one lot’s past
work credit and that lot’s SID assessment—against the assessments for the owner’s other lots.
I look forward to discussing with you.
"An Equal Opportunity Employer with a commitment to workforce diversification."
CA Item 3.3
3. City Administration, Human Resources, and Policy
.4 Cayuga Green Project - Endorsement of Requested 28-Day Extension to Sales Contract for
Parcel “D” of Cayuga Green II, LLC
WHEREAS, Cayuga Green II, LLC (Purchaser) seeks a 28-day extension to March 14, 2014 to
satisfy the final seller contingency contained in the 2013 Purchase and Sale Contract (Contract) for
parcel “D”, a ½ acre parcel located behind the Cayuga Garage with a street address of 217 S.
Cayuga Street, and
WHEREAS, the proposed Contract agrees to a sales price of $270,000 and obligates the purchaser
to undertake a project “anticipated to consist of construction of no fewer than 30 rental and/or for-
sale housing units located adjacent to the Cayuga Garage or such other uses approved by Seller
and the Common Council of the City of Ithaca,” and
WHEREAS, Cayuga Green II, LLC proposes to construct a 49,000 square foot, seven-story
housing project containing 45 housing units to be known as Cayuga Place Two, and
WHEREAS, Cayuga Green II, LLC is controlled by Bloomfield/Schon + Partners, LLC who is
designated by the Ithaca Urban Renewal Agency (IURA) as a qualified and eligible sponsor
pursuant to §507 of General Municipal Law to acquire property to undertake the Cayuga Green
project, and
WHEREAS, to enforce the future land use obligation, the proposed Contract requires the purchaser
to satisfy the following seller contingencies prior to expiration of the contract as a condition of
conveyance of the property:
1. Submit proof of final site development plan approval for a project containing at least 30
housing units;
2. Submit proof of issuance of a building permit for the project;
3. Submit proof that all project financing has been secured to complete the project, and
WHEREAS, the Purchaser has satisfied the site plan and building permit contingencies, but has
hot submitted proof of project financing, and
WHEREAS, Purchaser has submitted an executed, nonbinding, detailed term sheet for bank
financing, dated December 5, 2013, identifying a series of additional submissions necessary for
lender review prior to issuance of a loan commitment, including a new phase II Environmental Site
Assessment (ESA), and
WHEREAS, the phase II ESA was completed on February 14, 2014, and
WHEREAS, Purchaser projects project financing will be secured no later than March 5, 2014, and
WHEREAS, Purchaser has made payment of a $20,000 non-refundable deposit toward the
purchase price which shall be retained by the seller in the event seller contingencies are not
satisfied, and
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WHEREAS, the purchaser seeks no property tax abatements for this market-rate project and the
proposed Contract effectively prohibits any tax abatements on the project, and
WHEREAS, the primary objective of the Ithaca Urban Renewal Plan (IURA) for this urban
renewal project is to improve the social, physical, and economic characteristics of the project
neighborhood; and
WHEREAS, the IURA seeks to facilitate the construction of additional housing units in downtown
Ithaca that will expand the range of housing opportunities, increase the property tax base, and
visually conceal the concrete block wall portions of the east wall of the adjacent Cayuga garage,
and
WHEREAS, under §507 of Article 15 of General Municipal Law, the IURA is authorized to sell
real property to a qualified and eligible sponsor subject to Common Council approval following a
public hearing, and
WHEREAS, the prior purchase and sale contract for parcel ‘D’ and site plan review for a proposed
7-story housing project at parcel ‘D’ were the subject of environmental reviews under the City
Environmental Quality Review Ordinance (CEQRO) pursuant to which the lead agency issued a
negative declaration that the implementation of the action as proposed will not result in any
significant adverse environmental impacts, and
WHEREAS, the action of approving an extension to the proposed 2013 Contract for sale of parcel
‘D’ is no less protective of the environment than the previously-approved Contract and site plan,
therefore requiring no additional environmental review, and
WHEREAS, on February 27, 2014 the IURA approved the following terms to extend the 2013
Contract for sale of parcel “D”:
1. 28-day extension to March 14, 2014 to satisfy seller contingencies;
2. $10,000 additional non-refundable cash deposit;
3. IURA Chairperson discretion for one additional 14-day extension; now, therefore, be it
RESOLVED, That the Common Council for the City of Ithaca hereby approves the Ithaca Urban
Renewal Agency proposed extension to the 2013 Purchase and Sale Contract with Cayuga Green
II, LLC for Parcel ‘D’ (tax map parcel #81.-2-4) containing the following terms:
a. authorization of a 28-day extension to March 14, 2014 to satisfy seller contingencies;
b. requirement for an additional $10,000 non-refundable cash deposit; and
authorization to the IURA Chairperson to approve, at his sole discretion, one additional 14-day
extension to March 28, 2014 to satisfy seller contingencies.
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3.City Administration, Human Resources, and Policy
.5 Transfer of Function and Budget for Parking Enforcement to the Department of Public
Works
WHEREAS, the City of Ithaca hired a Director of Parking in 2013 and created the Parking
Division to provide better management and oversight of the City’s parking program, and
WHEREAS, the consolidation of parking enforcement activities into the Parking Division will
further advance these goals, and
WHEREAS, the civilian parking enforcement staff are currently employed by the Ithaca Police
Department, and
WHEREAS, it is the intention and desire of Common Council to transfer the civilian parking
enforcement function, budget and staff to the Parking Division of the Department of Public Works;
now, therefore be it
RESOLVED, That effective March 1, 2014, all parking enforcement functions currently
performed by civilian employees at the Ithaca Police Department and all civilian employees
engaged in performing those functions and activities shall be transferred from the Ithaca Police
Department to the Department of Public Works pursuant to Section 70.2 of New York State Civil
Service Law, and be it further
RESOLVED, That the following budget transfer be made as part of said function transfer for
parking with any further accounting transfers needed to be made, as necessary, by the City
Controller:
Account Transfer From: Account Transfer To:
A3120-5110 $270,984 A5656-5110
A3120-5125 200 A5656-5125
A3120-5415 2,000 A5656-5415
A3120-5420 6,200 A5656-5420
A3120-5425 100 A5656-5425
A3120-5477 9,000 A5656-5477
$288,484
J:\DRedsicker\AGENDAS\City Admin Comm\2014\2-26 CA Agenda.docx 2/26/14
4.Finance, Budget, and Appropriations
4.1 Ithaca Police Department – Request to Amend 2013 IPD Budget
WHEREAS, the Ithaca Police Department has received funds through the recycling of brass shell
casings recovered from the IPD shooting range, and
WHEREAS, the Ithaca Police Department is desirous of utilizing some of these funds ($6,000) to
purchase a small structure for the shooting range; now, therefore, be it
RESOLVED, That Common Council hereby amends the 2013 Ithaca Police Department Budget
as follows:
Increase revenue account:
A 3120-2770-5017 Miscellaneous Revenue $6,000
Increase expenses:
A 3120-5480-5017 Building Maintenance Supplies $6,000
J:\DRedsicker\AGENDAS\City Admin Comm\2014\2-26 CA Agenda.docx 2/26/14
Preliminary Budget Timeline & Actions:
When What/Where Who
February 2014 Budget Process Brainstorm at CA
meeting 2/26
CA committee, Mayor, Chief
of Staff, & Controller
March 2014 CA Meeting – Topic Discussion
Topic: _____________________
CA committee
April 2014 CA Meeting – Topic Discussion
Topic: _____________________
Process for Council priorities?
CA committee
CA committee
May 2014 CA Meeting – Topic Discussion
Topic: _____________________
CA committee
June 2014 -Mayor’s Memo asking for Budgets from
Departments sent out.
-Message from Council about Budget
Priorities sent with Mayor’s memo
Mayor, Controller
All of Council
July 2014
August 2014 8/1/14 Department Budgets due All Department Heads
September 2014 Budget Development
-Meetings with departments
Mayor & Controller
October 2014 10/1/14 Mayor’s Budget released
Mid-October Department Narratives
due (this is new short form added last
year)
Month of October – Budget Meetings
Mayor
All Department Heads
CA Chair leads Budget
Process
November 2014 Mid November Budget approval CA Chair leads Budget
Process
December 2014
J:\DRedsicker\AGENDAS\City Admin Comm\2014\2-26 CA Agenda.docx 2/26/14
CA Item 7
Budget Process Discussion
1.Council Priorities & Strategic Themes
2.Glossary of Terms
3.Budget Review Narrative & Presentations
4.Focus on IFD, IPD, DPW – how?
5.CA Topic Focused Discussions
6.Other issues
J:\DRedsicker\AGENDAS\City Admin Comm\2014\2-26 CA Agenda.docx 2/26/14
CA Item 7
Budget Factors Shaping the 2014 Budget
As we begin the process of developing the 2014 City Budget the following factors are
being incorporated into the estimates:
Revenues:
Property Tax/Tax Rate/Levy: In 2014, we assumed a 2% increase in taxable assessments
for the City. Increased development will push assessments higher for the next three years. The
2% assessment will produce $30,730,736 in increased assessments. Tax rate estimated at a 1%
increase and the tax levy up by 3% overall.
Sales tax: We are assuming a 2% increase in sales tax based on 2013 amounts. Our
2013 sales tax amount is assuming a 2.8% increase over actual 2012 amounts. Early
2013 returns are producing a 6.2% increase from 2012.
Parking: A Parking Director will be hired by mid-year 2013. Expecting a focus on
parking will produce additional revenue and more efficient operations. Construction may
impact results.
Fire protection contract: During 2014, we will be in the last year of the current
City/Town contract. The Town has warned us they are looking at other options for fire
services. We are assuming little growth in the fire department costs. The fire
departments labor costs will continue to increase, but at a controlled pace. Firefighter
retirements may reduce costs for the future.
Building permits: We continue to see large swings in this revenue source. Recent
development and recession recovery has increased revenues in this area. We expect this
source, which averages $468,000 over the last five years, to remain higher into 2015.
Sale of property: We budgeted for the sale of the City’s surplus property in 2012,
$125,000 and again in 2013, $232,000. To-date we have yet to sell any of the properties.
However, some of the property has been fully approved for sale. We are hopeful that
during 2013 we can sell a few of these properties. The sale of these properties will allow
us to replenish some of the recently used fund balance and give us some needed financial
flexibility for 2014.
Gifts and Donations: This represents mainly the Cornell University voluntary
payment to the City for fire services and general fund services. The MOU allows for an
annual change based on the CPI. Generally this revenue source is increasing, although,
we did experience a reduction in 2010 when the CPI went negative. We believe this
source should be higher and it remains to be seen if it will increase greater than CPI
anytime soon. We are estimating a CPI increase of 2% for 2014. The 2013 CPI to-date
is 1.8%. The CU donation for 2014 is estimated at $1,269,059. We don’t generate much
in the way of donations for the rest of the general fund.
State Aid: This is the general AIM payment to the City from NYS. We believe this
payment should be much larger than it currently is. There is some talk about a small
increase for 2013 during the current NYS budget discussions. At this time, we are
estimating that our 2014 aid level will remain as is at $2,610,398. We have encouraged
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CA Item 7
the state to change the aid formula and incorporate the tax exemption issue that the City
faces annually. Since 2008, the city’s Aim payment has decreased $261,038.
Expenses:
Labor contracts: We have six bargaining units. We have contracts in place for the
Fire Fighters Association (2015), Chief Officer Unit (2015), CSEA Admin (2015). We
are currently in negotiations with CSEA DPW, Executive and the PBA. We are
continuing to look for cooperation from the units in finding ways to reduce are labor
costs. In 2014, the fire unit will see increases of 2.50%-2.75% and the CSEA Admin unit
will increase by 2%. As a result of the CSEA compensation plan, CSEA unit employees
have seen salaries increase from 3%-7% annually. Our health insurance contributions
have also increased as a result of the comp plan. We saved over $250,000 in 2012 with
our hiring delays.
Pensions: Pension costs continue to be big driver in our recent challenging financial
problems. The state has increased these costs significantly over the past few years.
Again, the proposed state budget appears that it will have some sort of rate stabilization
program. Once we get all the details we will take a close look at the program to see if it
will make financial sense to participate. Our 2013 payment is expected to be $6,110,000.
The 2012 payment was $5,196,850. Also, note that pensions are tied to labor costs and
the CSEA Compensation plan increases will factor into the larger pension costs. 2014
will be the final phase of the plan, but even after 2014, increased labor costs will continue
for CSEA from the comp plan, as new staff will be placed into the program. We have
been told that after 2015 we may start to see the increasing pension costs slow a bit. An
increasing stock market will help reduce the future required increases. Depending on our
financial status we may not have a choice in participating in any new rate stabilization
program.
Liability Insurance: Recently, insurance costs in both liability and workers
compensation are also increasing significantly. The current environment seems active
with lawsuits and claims. In addition, the insurance market trends have been increasing
due to natural disasters and a more difficult economic situation. As a result, our
premiums are now increasing and we are finding it more difficult to obtain insurance
coverage for all the city’s needs. We estimate premiums will continue to increase into
2014. The 2013 insurance costs increased 21%. The total insurance costs for 2013 are
estimated at $1,391,512.
Health Insurance: Health insurance is another fringe benefit that is increasing well
beyond the annual CPI. We are participating in the Health Insurance Consortium and
while it is bringing us significant savings we are currently facing some benefit difficulties
with our transition to a new Rx TPA. Our 2012 health insurance costs were $10,011,056;
we were able to offset 12% of the cost with active and retiree insurance contributions.
We continue to work toward a 20% contribution rate by employees. We expect these
costs to rise by a net amount of 8% for 2014. Finding changes in our health program will
be essential as we move forward with our attempt to control the costs.
Debt Service: The City’s debt service remains high. It’s a great time to borrow and
bad time to invest. For 2014, we are estimating a total debt service payment of
$8,131,000. In 2013, our total debt service was $7,962,367. This is a 2% increase, with
most of the increase coming in the water fund.
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CA Item 7
Projected 2014 budget gap: We are currently projecting a 2014 budget gap of
$1,900,000. This amount will change as we move through 2013 and refine our numbers.
Remember, we had a 2013 early deficit of $3,000,000-$3,500,000. We are making
progress, but must continue to work at finding cost containment and revenue
enhancements.
Other Items
Tax Cap: The tax cap continues to place restrictions on our largest revenue source,
property taxes. Our cap last year was 2.77% and we came in just under this amount at
2.74%. We expect the tax cap for 2014 to be a little higher as we should continue to get
adjustments for city growth. I suggest we move to override the cap to give us some
flexibility and avoid any penalties as a result of calculation errors.
Tax Exemption: Our tax exemption rate continues to be one of the highest rates in
the New York State. The 2013 exemption rate was 60.82%. Cornell University plays a
large role in the reason why our exemption rate is so high. This rate changes annually
and it’s based on the County’s final assessment which we receive July 1st. For 2014, we
expect this rate to remain at a high level.
State Budget: The state budget is in the final stages of approval. We don’t have all
the details, but we know some things. AIM funding will remain at current levels. There
will be no binding arbitration reform. CHIPS funds are increasing. We normally receive
$353,000 in CHIPS funds, with the increase; we will see $427,130 annually. This is the
first increase in several years and will help our highway infrastructure. There is a
pension rate stabilization program similar to what’s currently in place. We would have
one opportunity to opt into the program, and once that option is chosen, we cannot
withdraw. We will look at this closely, but it may be another short-term savings with
higher costs long-term type of program. If we can avoid these state budget games, we
should.
Development: City development is currently exploding. There are many projects
currently under construction and more in the works. The assessment base will increase as
a result, but it will take a couple of years to feel the full impact. Property taxes and some
sales tax increases can also be expected in the future. Planned growth is good and we
should embrace it. Of course, it also means greater demand on city staff, services and
infrastructure. We will work the increases into the city’s overall financial plan.
Fund Balance: Maintaining the City’s fund balance at between 10%-20% of
operations is the best practice that we try to incorporate into our annual financial activity.
Our 2012 fund balance should be around $7,687,000. This would put us at 15.4% of
operations. This is a bit stronger than we were forecasting with the use of $995,000 of
fund balance in 2012. This gives us more flexibility for 2013-2014. In 2013, we lowered
our appropriation of fund balance to $299,632. With any luck, we won’t have to use it.
We should be able to appropriate some fund balance in 2014 to lower our budget gap.
2014 Outlook: Our 2014 forecast is still very challenging and uncertain, but
somewhat better than it was looking a year ago. If we continue working hard at reducing
on-going costs and finding additional revenue sources and the economy continues its
recovery, we may be able to pull ourselves out of this difficult financial period with
limited damage.
3
CA Item 7
2014 Budget
Budget Review Narrative (please limit response to 2 pages only)
Department:
Prepared by:
Key Financial Metrics:
FY12
Final
FY13
Approved
FY 14
Mayor’s
Budget
$ change
from 2013
to 2014
%
Change
from
2013 to
2014
Summary of Revenue Sources
Summary of Expenditures
Departmental
FTE
Discussion of how proposed departmental budget supports Strategic Themes:
Discussion of how any proposed staffing changes will affect your Department (+/-):
Discussion of how proposed Equipment/Administrative and Program changes affect
department(+/-)
Discussion of requested changes/alternatives to Mayor’s Proposed 2014 Budget (if
any):
CA Item 7
City of Ithaca
Summary of Factors Shaping City Budgets
2012-2014
2/18/2014
Estimated
2014 2013 2012
Revenues:
Assessments 1,567,267,519$ 1,536,536,783$ 1,512,975,624$
Tax rate per $1,000 13.21$ 13.08$ 12.93$
Tax Levy increase 3.00%2.74%3.81%
Property Taxes 20,704,858$ 20,094,108$ 19,565,035$
Sales tax 13,019,622$ 12,940,806$ 12,580,000$
Parking 2,110,000$ 2,059,500$ 2,005,000$
Fire services contract 3,130,000$ 3,130,000$ 3,135,000$
Building Permits 700,000$ 819,000$ 890,000$
Sale of Property 50,000$ 232,000$ 125,000$
Gifts and Donations 1,280,280$ 1,255,176$ 1,274,289$
State Aid 2,610,398$ 2,610,398$ 2,610,398$
Expenses:
Pensions (all funds)7,000,000$ 6,110,000$ 5,196,850$
Liability/WC Insurance (all funds)1,500,000$ 1,391,512$ 1,052,000$
Health Insurance (all funds)10,105,806$ 9,357,228$ 8,775,614$
Debt Service 6,504,000$ 6,676,678$ 6,212,710$
Budget Gap 1,900,000$ 299,632$ 995,000$
Tax Cap 3%2.77%4.17%
Override No Yes
Tax Exemption 61%60.82%60.44%
Fund Balance 5,487,000$ 7,387,000$ 7,687,000$
% of operations 10.22%14.28%15.40%
These are General Fund numbers unless noted
CA Item 7