Elmira city officials Monday unveiled a proposed 2016 budget that calls for a 5.5 percent property tax increase but includes no layoffs for police or firefighters.
City Manager Kimberlee Middaugh shared details of the $32 million spending plan during a news conference Monday morning at Elmira City Hall. Spending in the tentative new budget is down about $1 million from the 2015 budget.
The budget also relies heavily on shared services with Chemung County and other surrounding municipalities as the city tries to preserve vital services without putting too much burden on taxpayers, Middaugh said.
“As everyone knows by now the city is in a financial crisis,” Middaugh said. “We’ve seen a reduction in our population and in our overall assessed value. Thirty-eight percent of our property is tax-exempt. Most municipalities in New York state are seeing a decrease in income and an increase in the cost of doing business.”
Chemung County Legislator Rodney J. Strange from the 15th legislative district who represents the Towns of Ashland, Southport, Elmira and the Village of Wellsburg says even though most legislators don’t represent constituents in the city, the future solvency of Elmira is in everyone’s best interest.
“No matter where you live in Chemung County, Elmira is the place we call home,” Strange said. “We must make Elmira a prosperous and vibrant city once again. We cannot let the failed leadership of the past allow this once great city to go bankrupt. As a county legislator, I will do all I can to work to save our city from fiscal collapse and make it financially solvent once again. We have a new mayor and city council who will work with the county to bring their fiscal house in order. The city faces difficult times ahead, but we all must work together to fix this monetary crisis and move forward to solve the city’s problems.”
If the increase is approved, the new tax rate will be $21.95 per $1,000 of assessed value.
“The 5.5 percent tax increase that’s recommended means a $57 (per year) increase for a home assessed at $50,000,” Middaugh said.
The Consumer Price Index, or rate of inflation, for the 12-month period ending in September was zero.
Between shared services, the tax increase and use of a modest fund balance, the proposed 2016 budget is balanced, she said. Without major changes down the road, however, the city will be staring at a $1.7 million deficit for 2017, Middaugh added. She and her staff plan to start addressing those issues immediately.
Under the proposed budget, the city workforce will shrink from 209 full-time equivalents in 2015 to 159 next year. Twenty of those positions are Street Department employees who have already been transferred to the county, and another 19 positions will be taken over by the county next year, Middaugh said.
Some additional administrative positions will be eliminated through retirement and other means, but there will be no reductions in the police or fire departments, she said.
“Public safety is the most expensive but also the most important service,” Middaugh said.
In addition to street maintenance, the budget calls for a transition to the county insurance plan at a savings of $1 million per year. The city also shares an assessor with the Town of Elmira and a code enforcement officer with the Town of Horseheads.
The incoming City Council will tackle the proposed budget in January and it has to be in place by the end of March, Middaugh said.
Mayor-elect Dan Mandell was at Monday’s news conference and said he and City Council members will have a lot of work to do.
“Kim has done a lot of work on this. Hats off to (county executive) Tom Santulli and the county Legislature for working with us through this,” Mandell said. “These are tough times. This will be a collaboration and working together we can defeat the tough times. I’m not happy with the 5.5 percent tax increase and I hope we can get that down. I know it’s not going to be zero, but we’re already overtaxed.”