Initiation of City/County Committee Process Resolution # 19-148 A temporary committee to study cost saving measures and ideas between Chemung County and the City of Elmira.

City/County Committee Members Chairperson - John Burin, Vice-Chairperson, Chemung County Legislature, Chemung County Legislator District 9 Dan Mandell, Mayor, City of Elmira Joe Duffy, Elmira City Councilman District 3 Dave Vandermark, Former Elmira City Chamberlain Christina Sonsire, Chemung County Legislator District 7 Marty Chalk, Chemung County Legislator District 10 Bill McCarthy, Chemung County Legislator District 12 Scott Drake, Chemung County Legislator District 13

Background

Restructuring Board – conducted a comprehensive review of city operations, finances, management practices and economic base. City Bond Rating – Ba3 with a stable outlook from Moody’s. Health Insurance – cost overruns could undermine all of the committee’s recommendations. Real Property – 38% of tax base and 25% of land area is tax exempt. Tax Base – the city lost $18,772,712 of taxable assessed valuation from 2014 through 2018. CCIDA – PILOT incentives for new developments generate zero tax dollars and will generate only 17% of the full value tax over the life of the PILOT. Current PILOTs represent $131,366 of non-collectible tax this year.

Impact of exemptions & lost tax base for 2019 Exemption Valuation $328,291,498 $26.70/1000 $8,765,383 Lost Tax Base $ 18,772,712 $26.70/1000 $ 501,200 PILOTs $ 131,366 TOTAL $9,397,949

Projected City Fund Balance 2019-2023

Public Safety Costs

New Economic Activity

#1 Mark Twain Golf Course

Mark Twain Golf Course Community asset Currently pays taxes Operated in the “red” three of the last five years Sale v. Lease – Home Rule Legislation City gets a guaranteed revenue stream and/or debt reduction County operation reduces operating cost – tax exempt Operating deficits are spread over a larger base

#2 Sales Tax

Sales Tax History & Empire Zone

Cost of housing and protecting tax exempt property per capita Sales Tax Analysis Cost of housing and protecting tax exempt property per capita

Municipal fund balance per capita Sales Tax Analysis Municipal fund balance per capita

Municipal fund balance to expense ratios Sales Tax Analysis Municipal fund balance to expense ratios

Municipal sales tax & expenses per capita Sales Tax Analysis Municipal sales tax & expenses per capita

Municipal sales tax to expense ratios Sales Tax Analysis Municipal sales tax to expense ratios

Sales Tax Redistribution Step #1 No change to current sales tax agreement. Debt reduction plan for the city based on reductions to the operating budget.

Sales Tax Redistribution Step #2 – Option A Increase sales tax by 0.05% in 2021. Projected annual increase to the County = $5,266,206 and to all others = $1,831,107. Half of new revenue goes to the city, remainder is allocated to remaining towns and villages with an additional percentage to municipalities with police departments.

What .05% would have done last year

Sales Tax Redistribution Step #2 – Option B Increase sales tax by 0.075% in 2021. Projected annual increase to the county = $7,899,309 and to all others = $ $2,746,660 Half of new revenue goes to the city, remainder is allocated to remaining towns and villages with an additional percentage to municipalities with police departments.

Sales Tax Redistribution Step #2 – Option C No increase in sales tax in 2021. No change to the county’s allocation. Redistribution of sales tax revenue to the city, towns and villages based on the committee’s sales tax analysis.

#3 Bridges

#4 City Debt

No county impact. Short term borrowing should not increase liabilities beyond assets. Reduce short term borrowing over a two to three period to achieve a 1:1 ratio. Long term borrowing should not exceed what was paid down in the previous year. Excess long term borrowing should be itemized and authorized via City Council resolution.

#5 Sanitation

#6 Elmira College & LECOM

No county impact Create an advisory committee to oversee the development of a master plan for economic development opportunities related to LECOM, Elmira College and the city. Use new formed base zoning to create a College Town connecting the college and downtown. City and college meet monthly to discuss grants, tuition based public service fees, community issues etc. Expand student intern opportunities involving city services such as code enforcement and animal control.

#7 Room Tax

#8 Financial Services

#9 Public Safety