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HomeMy WebLinkAboutTown City Consolidation Paper 2008Report of the Joint City/Town Study Group 1 on 2 Shared Services and Consolidation 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 November 3, 2008 30 31 Diane V. Bruns 32 Lois E. Chaplin 33 Paul R. Eberts 34 Nathan Fawcett 35 Ellen McCollister 36 Tom Niederkorn (Chair) 37 Peter C. Stein 38 Stuart W. Stein 39 Mary Tomlan 40 41 Draft 18 For Internal Use Only JOINT CITY-TOWN STUDY GROUP 42 43 Dear Mayor Peterson and Supervisor Engman: 44 45 We are pleased to submit the results of the Joint City/Town Study Group on the issue of 46 possible shared municipal services and/or consolidation of the City and Town of Ithaca. It 47 has been an interesting and educational experience working on this challenging 48 assignment. 49 50 From our discussions with city and town personnel responsible for the operation of eight 51 major governmental functions we were encouraged to hear that 1.) there are already 52 examples of successful contractual agreements as well as informal practices to 53 collaborate in the provision of services and equipment; 2.) there are undoubtedly 54 opportunities to increase the current level of sharing and to formalize responsibility for 55 some inter-municipal operations and 3.) there are other opportunities to be explored, and 56 possible efficiencies to be gained, by continued review of staff activities in an attempt to 57 reduce duplication and thereby achieve a higher level of service. Although more analysis 58 is necessary it appears that, in some cases, the increased operational efficiency might also 59 result in a lower level of cost. 60 61 We encourage the legislative bodies in both municipalities to continue to pursue this 62 important sharing/consolidation issue. You should support and possibly reward future 63 staff efforts and activities that might result in greater operational efficiency and 64 effectiveness as well as less duplication of effort and, possibly, less cost including further 65 analysis of the benefits and impediments to full municipal consolidation. 66 67 A positive attitude is vital to such efforts. The public as well as municipal staff members 68 need to know, by actions as well as words, how you and the members of your 69 governments feel about this very important issue. 70 71 Thank you for the opportunity to participate in this far-reaching effort. 72 73 Members of the Joint City/Town Study Group 74 75 Diane V. Bruns 76 Lois E. Chaplin 77 Paul R. Eberts 78 Nathan Fawcett 79 Ellen McCollister 80 Tom Niederkorn 81 Peter C. Stein 82 Stuart W. Stein 83 Mary Tomlan 84 Note: Randy Haus, Wendy Skinner and Constance V. Thompson were also nominated for 85 the committee but were unable to participate. 86 87 Draft 18 For Internal Use Only Table of Contents 88 89 I. Introduction 4 90 A. The Joint City/Town Study Group 4 91 B Overview of Study Group Activities 4 92 II. A Brief History of the Political Geography of Tompkins County: 5 93 III Possible Future Courses of Action 6 94 A. Allow Cooperation/Consolidation to Evolve on a Case-by-Case Basis 6 95 B. Consolidation of Services As Directed by Legislative Bodies. 7 96 C Full Consolidation of the City and Town of Ithaca 7 97 IV. Consolidation of Individual Services 8 98 A. Fire Protection 9 99 B. Code Enforcement 10 100 C. Planning 11 101 D. Public Safety 14 102 E. Public Works 14 103 F. Records Management 17 104 G. Recreation 17 105 V. Full Consolidation of the Town and City of Ithaca 18 106 A. Commonly Expressed Arguments For and Against Consolidation 19 107 B. An Analysis of the Major Perceived Benefits and Barriers 19 108 1. The Effect of Consolidation on Property Tax Rates 20 109 a. The "Status Quo" Assumption. 20 110 b. Sales Tax Distribution under Consolidation 21 111 c. Savings due to Increased Efficiency 22 112 ` d. Increase in Per Capita State Aid 22 113 e. The Issue of Debt 23 114 2. Identity Politics in the City, Village and Town 24 115 3. Moral and Ethical Considerations 25 116 4. Non-monetary Costs and Benefits 26 117 a. Merging Three Workforces into One 26 118 b. Increased Services for the Town 27 119 c The Contribution of Each Municipality to the 120 Other's Quality of Life 27 121 d. The Future Politics of Greater Ithaca 27 122 VI. Other Approaches to a More Unified Local Government 30 123 A. The Role of County Government 30 124 B. Other Consolidation Avenues 31 125 VII. Recommended Next Steps 31 126 VIII. A Vision of the Future 32 127 Appendix 1. Past Cooperation and Consolidation Efforts 34 128 Appendix 2 NY State Reports on Shared Services and Consolidation 36 129 Appendix 3 Legal Aspects of Consolidation 39 130 Appendix 4 2005 Town, City and Village Budgets 41 131 Appendix 5 Resolutions Establishing the Joint Study Group 46 132 133 134 Draft 18 For Internal Use Only I. Introduction 135 136 A. The Joint City/Town Study Group 137 In May 2006 a resolution to set up a “Joint Study Group” to investigate possible 138 shared services and/or municipal consolidation opportunities between the City of Ithaca 139 and the Town of Ithaca was co-written by members of the City and Town governing 140 bodies and passed by both (see Appendix 5). These 2006 resolutions were the outgrowth 141 of an earlier facilitated meeting of elected officials of Tompkins County and the City and 142 Town of Ithaca held in December 2005. The purpose of this facilitated meeting was to 143 allow elected representatives an opportunity to discuss the positive and negative aspects 144 of shared services in, and possible consolidation of, the Ithaca communities. Pursuant to 145 the 2006 resolutions passed by both City and Town a Joint Study Group was established. 146 147 The Joint Study Group (JSG) first met on December 1, 2006. At that meeting, 148 members discussed and agreed on several specific issues related to its purpose and 149 function as well as the scope of its study. Issues agreed upon included: 150 151 ● REPORT: The JSG intends to produce a report for the City and Town of Ithaca, 152 and interested members of the Ithaca community, that is relevant and usable as a 153 guide to potential merging or sharing of services. The JSG sees its primary goal as 154 politically neutral fact finding. 155 156 ● DEFINITIONS: Within the context of the JSG’s work “consolidation” implies a 157 merging of two or more levels of government. “Shared services” are publicly 158 funded community services that are or could be combined or extended to serve the 159 population of more than one municipality. City, Town and Village refer to the 160 City of Ithaca, the Town of Ithaca, and the Village of Cayuga Heights, and Greater 161 Ithaca refers to a new, consolidated municipality comprised of the City, Town and 162 Village. 163 164 ● FOCUS: The JSG agreed to explore and report on consolidation of governments 165 but acknowledged that, because this issue is highly politically and emotionally 166 charged, most of the group’s effort will focus on the more feasible potential of 167 shared services. 168 169 ● HISTORY AND BACKGROUND: The JSG will oversee compilation of 170 documents that trace the history of similar studies and discussions since the 171 1950’s, as well as documents and reports that detail existing shared services or 172 government consolidations. (See Appendix 1) 173 174 ● RESOURCES: The JSG agreed that fully meeting the charge that has been given 175 is dependent on provision of adequate support services. (It should be noted that 176 study efforts were restricted by the absence of staff assistance to record meetings, 177 assemble basic data and historical efforts, assist in report preparation and similar 178 duties.) 179 180 Draft 18 For Internal Use Only B. Overview of Study Group activities. 181 182 Monthly meetings of the JSG were held during 2007 and much of 2008. In 183 addition to reviewing some past local efforts on the issue of consolidation and/or sharing 184 services, the JSG also investigated state legislation and a number of related state staff 185 reports on this issue as well as similar efforts of other communities in the Ithaca 186 region.(See Appendix 2) Using 2005 budget data for the Town, City and Village (See 187 Appendix 5), the JSG made various analyses of the effects of consolidation on property 188 taxes of residents. 189 190 At many of these meetings the detailed functions and operational responsibilities 191 presented by representatives from specific City and Town departments were reviewed. 192 Department heads and major staff members from both the City and Town jointly 193 presented a summary of duties and responsibilities and also responded to JSG questions 194 and comments. Early in 2007, the then mayor of Cayuga Heights declined the JSG's 195 informal invitation to have Village staff participate in the JSG's reviews. 196 197 Responsibilities, programs, organizational structure, operational concerns and 198 suggestions were presented and discussed. Areas and functions about which information 199 was presented were, in order of presentation, Fire Services, Human Resources, Finance, 200 Planning, Parks and Recreation, Records Management and Archives, Code Enforcement 201 and Public Works. 202 203 During the various group discussions there was nothing said to the JSG to indicate 204 strong resistance to the idea of closer City-Town operational alliances. There are already 205 opportunities for sharing services, equipment and information that have been 206 implemented by some departments. Several participants felt the concepts and specifics of 207 additional sharing could be examined. 208 209 II. A Brief History of the Political Geography of Tompkins County: 210 211 Tompkins County came into being in 1817, was significantly expanded in 1822, 212 and then slightly contracted to its current borders in 1854. Within those borders, the 213 county was divided into predominantly agricultural or unsettled towns of roughly equal 214 size. The central town, Ithaca, was set off from Ulysses on March 16, 1821, and the 215 Village of Ithaca incorporated the following April 2. Local government was the province 216 of the towns and the Village of Ithaca. County-wide functions, in particular the court 217 system, were administered collectively by the supervisors of the county's towns. Apart 218 from a few very minor changes, the names and outer borders of the county's nine towns 219 (Caroline, Danby, Dryden, Enfield, Groton, Ithaca, Lansing, Newfield, and Ulysses) were 220 the same in 1854 as they are in 2007. Within those decades, and within the Town of 221 Ithaca, the City of Ithaca has expanded its borders to the east and the north. 222 223 As time went on, as other areas in the County became more densely settled and 224 developed commercial activities, their residents apparently decided that their increasing 225 development gave rise to needs that were not being satisfactorily addressed by town 226 Draft 18 For Internal Use Only governments, and incorporated themselves as villages. Between 1857 and 1887, Dryden, 227 Groton, Trumansburg and Freeville were incorporated as villages. The Village of 228 Lansing, a part of the Town of Lansing, was incorporated in 1974. 229 230 In 1888, the Legislature granted a charter to the Village of Ithaca, allowing it to 231 incorporate as a City. This was seen at the time as a major event by area residents, and 232 was greeted with speeches, parades, band concerts, and fireworks, culminating in a 29 233 gun salute. 234 235 The formation, expansion and services of the Village of Cayuga Heights, a part of 236 the Town of Ithaca, is particularly relevant to this study. Cayuga Heights is the only 237 incorporated village in the Town and offers services parallel to those now available in the 238 City and Town of Ithaca. Cayuga Heights voted to incorporate as a village in 1915 with 239 an area of 0.44 square miles and a population of 137. In 1954, in response to the desire 240 of a growing suburban population for suburban amenities, principally water, sewers and 241 sidewalks, that the Town could not supply, it quadrupled its area. In another referendum 242 in the same year, the Village rejected a proposal to be annexed by the City. In 2008, 243 Cayuga Heights is a highly developed suburban community with a small commercial 244 center and almost no land available for development. Furthermore, increased 245 development in the Town has brought water and sewer service to the areas adjacent to the 246 Village of Cayuga Heights, reducing the reasons that originally motivated the split 247 between the Village and the Town. At present, a strong allegiance to local identity and a 248 perception that the Village is more responsive to local service needs persists. 249 250 Three simple metrics and a single picture summarize many of the arguments for 251 and against consolidation. The populations of the City, Town and Village are 29,300, 252 18,200 (including the Village) and 3,300 respectively, their median family incomes are 253 $42,000, $68,000 and $123,000 respectively, and their family poverty rates are 13.5%, 254 4.2%, and 1.5% respectively. The map that appears on the title page of this report shows 255 the immutable geography of the southern end of Cayuga Lake in which the three 256 municipalities are situated. 257 258 III Possible Future Courses of Action. 259 260 A. Encourage Departmental Cooperation/Consolidation Efforts on a Case-by-Case Basis 261 262 Several departments in the Town and the City have already established 263 consolidated or cooperative efforts in similar types of services. In some cases, (e.g., in 264 the public works sector) staff, on their own, have found ways to cooperate, share staff and 265 equipment and otherwise work together to save money and provide efficiencies, without 266 direction by elected officials. In other cases (e.g., the Ithaca Area Wastewater Treatment 267 Facility), elected officials cooperated to build a new consolidated facility that was a 268 necessity for both of them. In neither of these above examples was consolidation or 269 cooperation pursued for any reason beyond the economies dictated by the particular 270 situation. In our review, we did not find obvious examples of consolidation/cooperation 271 opportunities that promised to save meaningful amounts of money that have been 272 Draft 18 For Internal Use Only overlooked. Furthermore, we believe that when such opportunities arise in the future, 273 staff members in Town and City departments will be aware of them, and further 274 cooperation actions will occur naturally. 275 276 While such incremental and natural evolution of service delivery is praiseworthy, 277 there are limits to what it can accomplish. It often is the result of decisions made by line 278 and administrative staff who focus only on their own domains. Such individual decision- 279 making by its nature lacks the broader viewpoint that comes from oversight from the 280 elected public officials. There is also the natural tendency for the director of a 281 department to protect his/her own territory, which often directly conflicts with increasing 282 cooperation and consolidation. Under such circumstances, cooperation and consolidation 283 can only come as a result of pressure applied from the top, i.e. from the elected officials, 284 often during times of fiscal stress. 285 286 Given these circumstances, we see no useful role that we, or any outside review 287 study group, can play in further advancing consolidation or cooperation of a natural and 288 incremental nature. 289 290 This approach, however, does not address overarching issues like comprehensive 291 planning and land use, transportation strategies, environmental protection or adjustments 292 to climate change, among others. 293 294 B. Consolidation of Additional Services As Directed by Legislative Bodies. 295 296 This option assumes that there remain opportunities for further consolidation of 297 services that have not already taken place. Where this has not already taken place, 298 external direction or pressure from the elected officials of both the Town and the City 299 could cause the staff of those departments to work more closely together to achieve 300 efficiencies and cost-savings. Individual Town and City departments could be integrated 301 into a single department, or just be required to work more closely together. Interestingly, 302 the committee’s interviews of some department heads indicated a clear willingness to 303 engage in further cooperation, and even integrate their departments with those of other 304 municipalities. 305 306 While recognizing that there would be barriers to overcome before full 307 consolidation of additional services could actually take place, the committee sees this 308 option as viable. More detailed study of any specific service area needs to be 309 undertaken. Such questions as labor contracts, ownership of assets, oversight and 310 direction, etc. can be difficult, although not impossible to handle. The functions that are 311 the most likely candidates for consolidation are listed below in alphabetical order. 312 313 Code Enforcement 314 Fire Protection 315 Planning 316 Public Safety 317 Public Works 318 Draft 18 For Internal Use Only Records Management 319 Recreation 320 321 Each of these functions will be discussed in greater length in a subsequent section of this 322 report. 323 324 C. Full Consolidation of the City and the Town of Ithaca. 325 326 The ultimate form of consolidation, of course, is to make the Town and City one 327 governmental entity. Over the years, a number of individuals and groups have made such 328 a recommendation with the general aim of increasing the efficiency of local government. 329 In any review of this kind, the option of consolidation of governments must be addressed. 330 This approach is very attractive to many, but there are many significant barriers to such a 331 move. 332 333 Full consolidation would require a full, wide ranging analysis of many issues, 334 such as legal constraints and the costs and benefits of consolidation. Furthermore there 335 must be extensive debate by the city and town legislative bodies as well as by the 336 residents of both jurisdictions. A preliminary analysis of the legal issues is presented in 337 Appendix 3, and a first look at the costs and benefits is presented in Section VI below. 338 While a full analysis far exceeds our charge and capabilities, we believe that full 339 consolidation merits a serious examination by stakeholders in both jurisdictions. For our 340 part, we will attempt to advance the discussion by systematically examining what we 341 believe are the most often expressed advantages (i.e., benefits) and disadvantages (i.e., 342 costs) of consolidation. 343 344 IV. Consolidation of Individual Services 345 346 There are many examples of local services that are provided by partnerships of 347 independent jurisdictions or institutions. TCAT (Tompkins Consolidated Area Transit) 348 was formed as a partnership of the three existing independent transportation systems of 349 Cornell, the City of Ithaca and Tompkins County. The Southern Cayuga Lake 350 Intermunicipal Water Commission (Bolton Point) is a partnership of three Towns 351 (Dryden, Ithaca and Lansing) and two Villages (Cayuga Heights and Lansing) founded to 352 provide water to the residents of the partnership. The Ithaca Area Wastewater Treatment 353 Plant (IAWWTP) is a partnership of the City and Town of Ithaca and the Town of 354 Dryden for the purpose of treating the sanitary sewage of these municipalities so that it 355 can safely be discharged into Cayuga Lake. 356 357 Each of these partnerships has a different governing structure to apportion both 358 the expenses and the decision-making powers of the enterprise among the partners in 359 what was seen as an equitable fashion. These three enterprises are widely accepted as 360 successful examples of intermunicipal cooperation and as enduring cornerstones of local 361 government. 362 363 Draft 18 For Internal Use Only Given these successes, one might speculate that other specialized-function 364 consolidations will follow in their path. In all three cases, the ultimate benefits of 365 consolidation seem obvious, at least in hindsight. It is hard to fashion an argument that it 366 would have made sense for the Bolton Point or IAWWTP to have built their own parallel 367 water or sewage treatment plants simultaneously, or that it made sense for Tompkins 368 County to have three independent public transportation systems, each with its own routes, 369 equipment and infrastructure. 370 371 On closer analysis, it seems clear that Bolton Point and IAWWTP consolidations 372 are fundamentally different from TCAT. Bolton Point and IAWWTP were both built 373 from scratch, while TCAT combined three existing systems, each with its own 374 equipment, labor unions and routes. While management decisions in all three joint 375 ventures involve both technical and policy questions, policy issues probably play a 376 greater role in TCAT than in Bolton Point and IAWWTP, and governments are probably 377 less inclined to share decision-making power on policy issues than on technical issues. 378 On the other hand, the path to the TCAT consolidation was both driven by demands of 379 regulatory agencies and smoothed by a large influx of federal and state funds. 380 381 It would appear that each case is different, and that there is no generic path to 382 consolidation of services. If one is talking about consolidation of existing organizations, 383 there must be clear demonstrable gains for both sides to compensate for the inevitable 384 loss of control (perceived or real) by one or both parties. Below, we will systematically 385 examine the services we think are the prime candidates for consolidation. 386 387 A. Fire Protection 388 389 The City, Village and Town each have different ways of providing fire protection. 390 The City's fire department (the Ithaca Fire Department) is mostly composed of career 391 firefighters with a small (less than 10% of the total) volunteer component. The Village 392 has a totally volunteer fire department. The Town does not have a fire department of its 393 own; it contracts with both the City and the Village to provide fire protection to its 394 residents. 395 396 In one sense, fire protection services in Greater Ithaca are already consolidated. 397 The Village Fire Department has the responsibility for responding to incidents in the 398 Village and certain parts of the Town, and the Ithaca Fire Department has the 399 responsibility of responding to incidents in the City and the remainder of the Town. 400 However both fire departments provide backup for each other, and may even be first 401 responders for a fire outside of their area of responsibility if the situation demands it. 402 403 However, in other important ways, the fire departments are not consolidated. In 404 the Ithaca Fire Department, volunteers and career firefighters are combined into the same 405 units. The various tasks that firefighters are required to perform require different and 406 skill levels. An area-wide integration of volunteer and career firefighters would make 407 more efficient use of the capabilities of both groups. Furthermore, the relationship 408 between the Town on the one hand, and the City and Village on the other, namely that of 409 Draft 18 For Internal Use Only a customer and a vendor, does not seem appropriate for municipalities providing a 410 consolidated service. While the Town does recommend the appointment of some of the 411 Ithaca Fire Department fire commissioners, the role of the commissioners is more 412 advisory than decision-making. 413 414 Since fire protection for Greater Ithaca is provided by two independent 415 departments with intertwined responsibilities, the three municipalities might wish to 416 establish a new structure for providing fire safety that shares both cost and control among 417 the users in an equitable fashion. It is also possible that in the light of the high priority 418 given to maximally efficient use of all resources, a countywide consolidation of providers 419 of fire safety should be examined. We have found no compelling argument that such a 420 consolidation will significantly reduce total costs, but it may well provide an improved 421 area wide level of fire protection. 422 423 B. Code Enforcement 424 425 The Town of Ithaca and the City of Ithaca must adhere to the New York State 426 Uniform Code for fire and safety. The state law was changed last year to require many 427 more triennial fire inspections. 428 429 The Town of Ithaca building code calls for the code enforcement department to be 430 responsible for zoning and building permits, property inspections, property maintenance, 431 excavation and fill, sign permits, and for storm water code enforcement to be the 432 responsibility of the engineering department.. The Town is responsible for inspecting 433 approximately 4500 dwelling units. 434 435 The City of Ithaca building department abides by the same New York State fire 436 and safety codes as does the Town, and must enforce local laws enacted by the City. It 437 too, is responsible for the above-mentioned functions. In practice, however, there are 438 substantial differences in the work of the Town and City code inspectors due to the 439 differences in populations of the Town and the City. The City is much denser than the 440 Town and the ratio of (mostly student) rental properties to single family homes is far 441 greater. There are approximately 10,000 rental properties in the City, which are supposed 442 to be inspected yearly. In contrast, one or two family homes are inspected every five 443 years. In addition, City code enforcement officers are responsible for inspecting Cornell 444 University fraternities and dormitories. Because there are often substantial code 445 violations at rental properties and fraternities, some properties must be inspected 446 numerous times before compliance is achieved. Thus, the City inspectors face a very 447 field-intensive job. The building permit fees do not cover the costs of compliance and 448 inspection. Finally, the board review structure .(e.g., the Board of Zoning Appeals, the 449 Planning and Development Board, etc.) in the City as outlined in City Charter requires 450 the frequent input of the City's building department, also resulting in more work for staff. 451 452 As far as collaborative or consolidation efforts are concerned, staff of both 453 municipalities agreed that there could be opportunities for jointly sponsored training. 454 However, that is such a small component of their jobs that it would neither save much 455 Draft 18 For Internal Use Only money nor require that the two entities be consolidated. The respective workloads are 456 larger than existing staff resources can cover fully, so consolidation clearly would not 457 save personnel costs. It might, however, produce some marginal management 458 efficiencies. 459 460 However, the primary opportunity for reorganization and consolidation may be in 461 the area of fire inspections. The recently revised New York State code mandates 462 increased fire inspections. It would be better for the Ithaca Fire Department, which must 463 deal with future fires, to do all the fire inspections in the Town and City rather than for 464 the Town and City inspectors to do it independently. The Ithaca Fire Department will 465 then have first hand knowledge of the conditions it will face if it were required to fight a 466 fire in a given structure. 467 468 It is our understanding that as of the time of this writing, the Town and the City 469 are pursuing an arrangement whereby the Town's fire inspections will be carried out by 470 the Ithaca City Fire Department. 471 472 473 C. Planning 474 475 “In New York State municipalities have extensive authority to cooperate with one 476 another to accomplish their land use objectives. Where villages, towns and cities share 477 natural resources, transportation corridors or economic markets they are authorized to 478 enter into intermunicipal agreements to perform together any municipal function they 479 have power to undertake individually.” Well Grounded, John R. Nolan, Professor of 480 Law, Pace University School of Law, White Plains, NY, March 1999. 481 482 In terms of fundamental planning tools such as land use character and 483 development controls, it is clear that New York communities have available extensive 484 legal tools to help guide development and regulate the use of land. State laws related to 485 planning and zoning give communities extensive control over the use and development of 486 land within their boundaries. However, the use of these statutes depends, in most cases, 487 on the desire of the communities to develop, enact and use the planning and 488 implementation measures available to them. 489 490 At present there is a full program of planning and zoning activity existing in the 491 greater Ithaca community. Both City and Town have professional planning staffs to 492 create and implement planning and development programs. The Town Planning 493 Department currently consists of 6 to 7 personnel. An operating budget of $344,276 was 494 authorized for 2007. The City of Ithaca Planning Department consists of 12 personnel, 495 which includes four Ithaca Urban Renewal (IURA) personnel. The budget of the City's 496 Planning Department for 2008 is $843,376. In addition, both City and Town make use of 497 consulting services as necessary. Tompkins County also has an extensive planning 498 program and an active professional planning staff. 499 500 Draft 18 For Internal Use Only In addition to the professional staff, both the City and Town have a lay planning 501 board, a zoning board of appeals, a special planning committee comprised of one or more 502 members of the legislative body and one or more lay or legislative-body committees for 503 such issues as housing, conservation and protection of the environment, and similar 504 planning and development-related issues. 505 506 A meeting with planning directors of the City and Town planning departments, 507 and the assistant planning director of the County planning department pointed out that 508 these entities have prepared and enacted a range of planning tools including site plan 509 approval, some form of comprehensive planning including, in the City and Town, 510 detailed and complex subdivision regulations and zoning (land use) controls. The City’s 511 comprehensive plan was adopted in 1971 and has been somewhat modified since. The 512 Town plan was adopted in 1993 and has been selectively reviewed several times. Both 513 municipalities are currently in the process of updating their comprehensive plans. 514 Preparation of the existing plans was probably undertaken in the general context of 515 growth issues, future development objectives and control of land use in the broader 516 community. On the other hand, specific attempts to coordinate development concepts, 517 community character and the overall impact of future land use changes beyond municipal 518 boundaries did not play a major role in shaping the adopted Town and City plans. 519 520 The County has only recently become involved in comprehensive planning and 521 has, according to the county planner, focused on those land use issues that transcend of 522 municipal boundaries. The County’s plan was adopted in 2004 and is to be reviewed in 523 2009. Cayuga Heights Village has legislative authority to prepare and adopt a 524 comprehensive plan but this has not been undertaken to date. Zoning regulations and site 525 plan review are active components of development in the Village. The Village has no 526 planning staff, and zoning and development permits are coordinated by the Village 527 Engineer/Zoning officer. 528 529 Multi-municipal planning and development issues have been acknowledged in 530 State legislation for cities, towns and villages. Article 5-G of the General Municipal Law 531 establishes statutory authority for communities to “...enter into agreements to undertake 532 comprehensive planning and land use regulation with each other….Furthermore, 533 according to Article 5-G “…any city, town or village may contract with a county to carry 534 out all or a portion of the ministerial functions related to…land use….” The intent of 535 this legislation is to provide the participating governing bodies the opportunity to “… 536 promote intergovernmental cooperation that could result in increased coordination and 537 effectiveness of comprehensive planning and land use regulation, more efficient use of 538 infrastructure and municipal revenues, as well as the enhanced protection of community 539 resources, especially where such resources span municipal boundaries.” 540 541 State enabling legislation also empowers cities, towns and villages to create 542 special land use districts which encompass all or a portion of one or more municipalities 543 for the purpose of protecting, enhancing or developing one or more community resources. 544 545 Draft 18 For Internal Use Only Both City and Town planning directors stated their belief that additional 546 opportunity for collaboration or sharing of governmental activities and responsibilities 547 existed. They noted that fire protection and sewage disposal are municipal services that 548 are currently shared between the two municipalities. They also suggested that additional 549 consolidation of the area’s public water supply seems like an opportunity and that sharing 550 for parks and recreation could be improved. In their view such efforts to coordinate or 551 share services would likely be short of total consolidation of the two municipalities. 552 Fundamental issues such as the nature and extent of future development and the 553 establishment of future land use goals and objectives were also viewed quite differently 554 by both the planning and legislative functions of each government. In addition, the issues 555 of cost vs. control are factors that increasingly stall or completely derail potential 556 collaboration opportunities at both the planning and legislative levels. 557 558 In the 1990s the State Legislature recognized the increasing importance that 559 planning can play in helping municipalities broadly face development issues when it 560 passed enabling legislation giving municipalities authorization to undertake programs for 561 ”…protecting the public health, safety and general welfare of its citizens". (Section 272-562 [1][b] of the Town Law) Using these tools and strategies in a broader collaborative or 563 consolidated format could be helpful in reducing carbon emissions and environmental 564 degradation at the local level, an increasingly important issue that could be addressed by 565 community planning programs at all levels. 566 567 Since both the City and Town are currently beginning efforts to update their 568 comprehensive plans, and expect this work to take several years, a collaborative effort is 569 clearly a unique opportunity to evaluate development goals and long range land use 570 objectives in a comprehensive way and to seriously consider critical environmental issues 571 and concerns. In our meeting with them, the planning directors acknowledged this 572 opportunity but indicated concerns about how this would be accomplished. A combined 573 planning effort would ultimately require and promote mutual agreement on the important 574 tasks of establishing future land use character and development goals and objectives for 575 the Greater Ithaca Area, i.e. the City and Town, or at least some major portions thereof. 576 Agreement on these and other basic issues would be needed, initially at the planning level 577 and, more importantly, at the legislative level. For this comprehensive master planning to 578 be fully effective, it would also need to include the Village of Cayuga Heights. 579 580 Despite the inherent difficulties, the shared long range planning opportunity 581 available at this particular time appears to be unique. It could, perhaps, be started by a 582 coordinated description and shared analysis of existing conditions and trends in the two 583 Ithaca communities. Included in this discussion would be the critically important 584 planning and development programs of Cornell and Ithaca College. Future activities and 585 development programs at both institutions can be expected to have major and long-lasting 586 impacts on many planning issues in the City and Town. 587 588 Implied in the undertaking of a new comprehensive plan in the City and Town is 589 the complicated issue of zoning and the changes that would most likely be necessary to 590 reflect coordinated planning goals and objectives. To the extent that current economic 591 Draft 18 For Internal Use Only development, zoning and site planning decisions are skewed by existing municipal 592 taxation boundaries, the results become sub optimal for meeting comprehensive master 593 planning objectives. This issue could be even more difficult and contentious than the 594 more general conclusions and proposals of a coordinated comprehensive plan. 595 Nonetheless, to begin implementation of coordinated development and land use goals for 596 the two communities would surely involve a review and possible modification of the 597 underlying laws, tax revenue protocols and implementation procedures. In an era when 598 the need for nations to work together to solve global problems is increasingly being 599 recognized and taken into account, we believe that municipal governments should 600 commit themselves to make a special effort to jointly fashion an area-wide plan for the 601 future. 602 603 D. Public Safety 604 605 Four independent police forces belonging to the City of Ithaca, the Village of 606 Cayuga Heights, Cornell University and Ithaca College provide primary police protection 607 to residents of Greater Ithaca. The Tompkins County Sheriff provides primary police 608 protection for the Town of Ithaca outside of the Village of Cayuga Heights, as part of the 609 Sheriff's responsibility to provide primary police protection for those municipalities that 610 do not have a police force of their own. Generally these independent police organizations 611 have provided backup coverage for each other in emergencies. 612 613 The Sheriff is an independent public official, elected by all of the residents of 614 Tompkins County, and makes his or her own decisions about how to distribute the 615 resources the County grants to support the Sheriff's office. As a result, Town government 616 has limited ability to determine where and what kind of public safety protection will be 617 provided to its residents. 618 619 The general perception of Town residents is that drivers respect speed limits and 620 other traffic and parking regulations more in municipalities that have their own police 621 force than those that rely on the Sheriff and state police for enforcement. Periodically, 622 the Town has talked about instituting its own police force, but was always deterred by the 623 considerable anticipated start up costs. If consolidation of Greater Ithaca were to take 624 place, residents of the current Town would expect to enjoy the same level of police 625 presence as City and Village residents currently have. 626 627 Of course a consolidated police force that could provide such protection would 628 have to be greater than the combined City and Village Police forces, and detailed study 629 would be required to estimate accurately the size of the required increase. To get some 630 idea of what would be required, we consulted individuals familiar with public safety 631 administration. According to several knowledgeable sources we consulted, a level of 632 police presence enough to deter speeding and other moving violations throughout the 633 Town would probably require approximately two additional two-shift road patrols. 634 635 E. Public Works 636 637 Draft 18 For Internal Use Only Public Works staff from the Town and the City met with the committee in 638 October 2007 to outline the basic responsibilities assumed by their respective 639 departments, and to comment on areas where there might be opportunities for additional 640 cooperation and/or consolidation. 641 642 The Town's Public Works Department includes highways, parks, trails, water and 643 sewer operations, storm water management, buildings and grounds, and some 644 engineering. The City’s Board of Public Works advises the City public works 645 department, which is organized into three main divisions: water and sewer, streets and 646 facilities (including a large function for urban forestry) and engineering. In the Town, 647 there are approximately 28 staff dealing with these functions; in the City, 168. Both 648 departments are unionized, and and represented by different unions. In area, the town is 649 responsible for about 50 miles of roadway. The City is responsible for about 70 miles of 650 streets and their sidewalks, plus 33 bridges. Responsibility for the 28 bridges in the 651 Town rests with the County. 652 653 Thus, functionally, the Town and the City public works departments are expected 654 to serve their taxpayers in similar ways in providing for and maintaining infrastructure. 655 Historically, the departments have evolved to duplicate most functions, although there are 656 individual differences in methods of management and in equipment inventory. With the 657 Town encircling the City geographically, and roads not stopping at an artificial Town-658 City boundary, it is an archaic model that results in two municipalities functioning 659 independently vis-à-vis their public works duties. This seemed evident both to the 660 committee and to staff. In theory, many of the functions could at a minimum be 661 coordinated, and in many cases consolidated. As always, the devil would be in the 662 details. Moreover, public works is another example where there is the ever-present trade-663 off between increased efficiency and economies of scale and reduced autonomy by the 664 individual municipality. Many taxpayers prefer small, local, minimal government and 665 are averse to what they see as subsidizing infrastructure outside their borders. But with a 666 trend toward regionalism, and borders becoming increasingly an historical artifact, public 667 works is an area that seems prime for review of specific services that could be 668 consolidated or jointly operated, perhaps along the lines of the Tompkins Consolidated 669 Area Transit (TCAT) model. It was interesting that the City superintendent observed that 670 New York State has 3500 municipal public works departments while Massachusetts 671 functions with 1800. 672 673 In the absence of sweeping consolidation, the committee suggests looking closely 674 at the functional areas described below to see where further cooperation or consolidation 675 could occur. In some cases, significant cost-savings due to economies of scale could be 676 achieved in such areas as water or sewer facilities, or snow removal. In other cases there 677 might not be initial cost savings, but planning and coordination on an area wide basis 678 would be better for all (e.g., location and maintenance of sewer and water lines that 679 reflect desired regional growth patterns.) It is noted that some of the best suggestions for 680 consolidation opportunities might come from the “bottom up”, such as having a contest 681 that would enable staff from the various departments to suggest trial models that would 682 Draft 18 For Internal Use Only best serve taxpayers. The other mechanism for change would require the respective 683 Town-City boards or councils to approve any change, based on constituency input. 684 685 • Equipment and trucks: There are economies of scale in purchasing decisions. The 686 Town and City would have the same peak use problems, for instance, during heavy snow 687 and rainstorms, but often idle equipment inventory could be shared. The committee was 688 told that there are already informal agreements in place whereby municipalities come to 689 each other’s aid on a case-by-case basis when one municipality's truck or equipment 690 breaks down or other unusual situations arise. In addition, there is already coordination 691 between the two departments regarding snowplow routes. 692 693 • Water source: The current discussions on water source-- Bolton Point vs. Six Mile 694 Creek-- are complicated from environmental, political and financial standpoints. But if 695 the water issue is looked at as an opportunity for consolidation and uniformity of water 696 quality and supply, there are opportunities for consolidation and economies of scale 697 possible. Failure to think of potable water as an area need can lead to sub-optimal 698 technical decisions, such as the route that Town water mains follow to serve South Hill. 699 700 • Water and sewer infrastructure: There are some inefficiencies and existing duplication 701 of capital infrastructure regarding water and sewer lines, and water tower locations. With 702 population growth patterns moving throughout the county, a regionalist approach would 703 suggest having these decisions coordinated under a single entity. Such an approach 704 would frame the decision the City must make about its water source as finding the safest 705 and most efficient way to supply the future water needs of the Greater Ithaca area. 706 707 • Roads and Bridges: Municipal responsibility for the construction and maintenance of 708 roads and bridges does not seem to reflect current day realities. Both the City and the 709 Town are participating members in the Ithaca-Tompkins County Transportation Council 710 (the federally-designated Metropolitan Planning Organization (MPO)), which is the 711 conduit for federal and state transportation infrastructure funds. When a road or bridge is 712 first built or undergoes major repairs under this program, the costs are borne 713 predominately by the state and federal governments. Committee members noted, that, 714 absent project funding through the MPO, the City is responsible for the entire cost of 715 building, replacing and maintaining its bridges. However, the County pays for much of 716 the cost of replacement of Town bridges having a span of twenty-five feet or more, 717 usually with a split of approximately County 80%, Town 20%. Following construction or 718 rebuilding, the maintenance costs for Town bridges is shared with the County, with the 719 County responsible for maintenance of the structure, and the Town responsible for 720 maintenance of the floor or wearing surface of the bridge (according to a County 721 resolution in 1946). Designation of the MPO in the ‘90s brought additional infrastructure 722 funding into the area and has been instrumental in developing a rational system for 723 allocating scarce resources. It may be time to consider consolidating the responsibility for 724 road and bridge improvements under a single authority. Such an approach would conform 725 to the basic fact that while traffic problems may have definite geographic locations, the 726 causes and effects of these problems are shared by the residents of a much broader area. 727 728 Draft 18 For Internal Use Only • Storm Water Management: This is a real opportunity for further collaboration and 729 consolidation, particularly because storm water management is a new mandate from the 730 Department of Environmental Conservation (DEC.), that requires all communities to 731 develop new parallel regulation and enforcement capabilities. 732 733 • Transit: The local public transit system has been consolidated via Tompkins 734 Consolidated Area Transit (TCAT). TCAT represents the joining of Ithaca Transit (City), 735 TomTran (County) and Cornell Transit into one unified system providing service 736 throughout Tompkins County and adjoining areas in Schuyler and Tioga Counties. 737 Because TCAT’s scope is regional, it has the advantage of having the broader picture in 738 mind when making decisions about routes and service areas. TCAT is not a municipal 739 function even though it provides a public service; it is organized as a not-for-profit 740 corporation reporting to a board of directors. New members of the board are nominated 741 by the City, the County and Cornell University, and confirmed by the TCAT board. 742 Funding of its operational deficit each year is shared equally among these three partners. 743 In addition, Cornell provides significant additional support through its pass programs for 744 staff and students. 745 746 F. Records Management 747 The County, the City and each municipality are required by the state to store vital 748 records of many kinds. In addition, there are other records that, while not required to be 749 kept, nevertheless are historically important. Some municipalities may currently be 750 handling record keeping well, while others are hard-pressed to find the appropriate space 751 and personnel to manage these important records. The main issue is with the storage of 752 relatively inactive records. Many departments keep active records close-by as they often 753 need them in doing their work on a regular basis. 754 755 This issue was brought to the committee by several County staff members: the 756 County Clerk, the County Historian and staff of County Personnel and Administration. 757 They emphasized the current need, and certainly a growing future need, to address the 758 growing burden of record storage by all levels of municipalities in the County. 759 760 In the presentation, it was pointed out that this burden represented both a 761 challenge and an opportunity. The County, City and Town could work together to create 762 a centralized records center that could serve not only these three governmental entities, 763 but also other municipalities that may have the need for such a facility. Combining 764 efforts to create a records center for the entire county to house vital public records and 765 historic documents could be more efficient and less costly than if each municipality 766 attempted to address the problem on it own. It was noted, however, that discussions with 767 all of the County's municipalities, including the Town and the City of Ithaca, about 768 records storage needs have not been held. Therefore, it is not clear whether there will be 769 buy-in from everyone to this concept. 770 771 It was pointed out, also, that a New York State program currently exists that could 772 provide what could be substantial financial assistance for its creation and management. 773 The County and several municipalities already have tapped into that fund for grants. 774 Draft 18 For Internal Use Only 775 While a records center may not be seen by many as a major service when 776 compared to other critical public services, it is required and is necessary, and will have to 777 be established eventually. This appears to be an opportunity to achieve municipal 778 efficiency. It was suggested that the City-Town committee, working with the County, 779 could assist in moving forward with such a project. In fact, it was learned by the 780 committee that the County currently has taken the first steps to locate and fund such a 781 facility and have it built, probably in the Town of Ithaca. The tentative timetable for 782 construction of such a records building is 2010, which suggests that a timely response to 783 this opportunity is called for. 784 785 G. Recreation 786 787 Until the mid 1990's, public recreational facilities and programming in Greater 788 Ithaca were provided by the State and the City of Ithaca. The State Parks System 789 provides local Greater Ithaca residents ready, convenient access to three major State 790 Parks offering a choice of swimming, camping, hiking, and picnicking opportunities and 791 spectacular view sheds. The City provided local residents access to its lakeside centrally 792 located Stewart Park with picnicking facilities, playgrounds, a carousel and a pavilion 793 available for group functions, Cass Park with its seasonal swimming pool/skating rink, 794 ball fields, pavilion and marina, as well as other parks and facilities. In addition, the 795 Ithaca Youth Bureau has provided extensive recreational programming based principally 796 at the City's recreational facilities for more than half a century. 797 798 Before the 1980's, the City gave area residents equal access to its recreational 799 programs irrespective of their home address. In response to budget pressures, the City 800 instituted a system in the mid 1980's whereby local municipalities could opt to make a 801 designated financial contribution to the City and become "an affiliate", in which case a 802 resident of that municipality could use City recreational facilities and programs on a par 803 with City residents. Several municipalities, including the Town of Ithaca, became 804 "affiliated" with the City in this way. The Town has continued to make regular payments 805 to the City in one form or another to compensate the City for its provision of recreational 806 facilities and activities used by Town residents. 807 808 In recent years, the Recreation Partnership, a joint venture of the City, the County 809 and most of the county's Towns, was formed to provide resources for youth oriented 810 recreational programming for county residents. The funds raised by the Recreation 811 Partnership were largely paid to the City, which provided the programming requested by 812 the Partnership. In addition to its contributions to the Recreation Partnership, the Town 813 has made annual contributions of approximately $100,000 to the City to reimburse the 814 City for the use that Town residents make of the Cass Park facilities in ways other than 815 the programming of the Recreational Partnership. 816 817 In 1997, the Town adopted its Park, Recreation Open Spaces Plaon and embarked 818 on a program to expand the number of parks within its boundaries. It has opened a 819 variety of parks of various kinds, from Tutelo Park, with a regulation baseball field and a 820 Draft 18 For Internal Use Only pavilion, to undeveloped neighborhood parks offering an opportunity to walk quietly in a 821 natural setting. 822 823 Recreation in the Town and City is a function that is particularly well suited to 824 cooperative or consolidated efforts of the two municipalities, as residents freely cross 825 municipal boundaries in using parks. However, the obstacles to making it a joint venture 826 are the usual considerations that arise in such issues, namely the degree to which the 827 share of control and benefit to each municipality equals or exceeds its financial 828 contribution. Insistence on a strict cost/benefit accounting can sometimes conflict with 829 win-win arrangements. 830 831 V. Full Consolidation of the City and Town of Ithaca 832 833 Initially, the members of the study group held a wide range of views regarding 834 full consolidation. Some believed that a full study of the issues might well demonstrate 835 that consolidation was possible, desirable and practical, and could in fact lead to that 836 result. Others believed the advantages of consolidation would not be found to be 837 compelling enough to justify following a path that was sure to be long and difficult. 838 839 Despite these differences of opinion, the study group agreed that it was 840 worthwhile to record the results of our analysis, in the hopes that such a record would 841 clarify and delineate the issues that must be examined by whoever wishes to realistically 842 pursue consolidation. As indicated in Section VIII - Recommended Next Steps below, a 843 broader consensus among study group members to recommend pursuing consolidation 844 developed during the course of deliberations, with full recognition of the difficulties 845 involved. 846 847 During the course of our deliberations, individual members of the study group 848 talked with each other about what we thought about consolidation of the City and the 849 Town, what we had heard from friends and acquaintances, and what we believed were the 850 prevailing attitudes amongst citizens. We then assembled a list of core arguments for and 851 against consolidation. We certainly cannot pretend that the list is in any way a scientific 852 survey of the attitudes of citizens of the City and the Town. We present it only as our 853 best guess at what a public opinion survey would reveal, and as a starting point for an 854 analysis of the key issues that lie at the center of any consolidation debate. 855 856 We will start by presenting the key arguments for and against consolidation, then 857 reduce them into four distinct categories, and finally analyze them as best we can. 858 859 860 A. Commonly Expressed Arguments For and Against Full Consolidation 861 862 Arguments For 863 1 Increased efficiency should lower property taxes in the long run 864 2 Residents already self-identify as "Ithacans", not Town or City residents 865 3 Social responsibilities would be shared more fairly 866 Draft 18 For Internal Use Only 4 Town residents would benefit from increased services 867 5 The quality of life for Town and Village residents is strongly affected by the 868 health of, and services provided by, downtown Ithaca 869 6 Integrated planning will improve responses to challenging issues (e.g., 870 transportation congestion, climate change, environmental stewardship) 871 872 Arguments Against 873 1 Would result in substantial increases in property taxes for Town residents 874 2 The Town would lose its identity 875 3 The disparate cultures of the Town and City preclude a harmonious union 876 4 Cayuga Heights would never agree to consolidation 877 5 The welfare of Town residents would not be adequately addressed in a joint 878 government 879 6 A merger would create grave problems for the staff 880 7 The effort required is not justified by the potential gain 881 8 In a larger municipality, there will be a loss of control over local service quality 882 and delivery 883 884 Argument 1 in each of the two lists presents the two sides of the same question, 885 namely how would total costs of government and property taxes change if the two 886 municipalities were to consolidate. Argument 2 in the "For" list, and arguments 2 , 3, 4 887 and 8 in the "Against" list all pertain to the identity politics issue for the 47,500 residents 888 of the City and Town. Argument 3 on the "For" list is a moral issue for Town residents. 889 Arguments 4, 5 and 6 in the "For" list and arguments 5 and 6 in the "Against" list are 890 costs and benefits for Town residents that cannot be given a monetary value. Argument 7 891 in the "Against" list is not really an argument. It is simply a prediction of what the 892 conclusion of a full cost-benefit analysis of consolidation will be. 893 894 We will organize our analysis of the issues raised in the consolidation debate 895 along the following four dimensions. 896 897 The effect of consolidation on property tax rates 898 Identity politics in the City, Village and Town 899 Moral and ethical considerations 900 Non-monetary costs and benefits 901 902 B. An Analysis of the Major Perceived Benefits and Barriers 903 904 1. The Effect of Consolidation on Property Tax Rates 905 The first question that most residents pose is straightforward enough, namely; "If 906 the City, Town and Village were to consolidate, how much would my property tax bill 907 change?" Unfortunately, the question is easier to pose than it is to answer. The answer 908 depends strongly on a series of subsidiary questions, such as whether the services 909 delivered to residents would change, whether a consolidated government would be more 910 or less efficient than the current governments independently and whether (and how much) 911 Draft 18 For Internal Use Only the sources of public income other than property tax would change and how outstanding 912 debt service payments will be handled. 913 914 In order to make a first estimate of the impact of consolidation on real estate tax 915 bills of City, Town and Village residents, we will assume that the expenditures and 916 revenues of the combined municipality (Greater Ithaca) will be the sum of the current 917 expenditures and revenues of the three separate municipalities. Following that, we will 918 examine the effects on the tax bills of a few modifications to that assumption that we 919 think are reasonable possible projections. The estimates are based on data for the year 920 2005 supplied by the financial officers of the three municipalities (See Appendix 4). 921 From the point of view of a 2009 reader, the data must be taken as illustrative. However, 922 percentage changes in tax rates attributable to consolidation probably have not changed 923 significantly. The data will be presented as the City/Town/Village property tax bill on a 924 $200,000 residence. 925 926 a. The "Status Quo" Assumption. 927 To make this calculation, we assume that every resident in Greater Ithaca will pay 928 the same local tax rate, and that the revenue raised by this tax will equal the sum of the 929 revenues that the City, Town and Village raised from the property tax in 2005. The 930 results are shown in Table 1. In addition, the current City/Town/Village property tax 931 bills, the school and county tax bill, the total property tax and the percentage changes in 932 property tax due to consolidation for each of the three municipalities are shown. 933 934 Table 1 935 Property Tax on a $200,000 Home 936 Status Quo Assumption 937 938 City Town Village Current City/Town/Village $2,640 $1,052 $1,528 Greater Ithaca $1,831 $1,831 $1,831 School + County Tax $5,028 $5,028 $5,028 Total City/Town/Village Tax $7,668 $6,080 $6,556 Total Greater Ithaca Tax $6,859 $6,859 $6,859 Percent Tax Increase -10.6% 12.8% 4.6% 939 We think it is likely that under this scenario, the substantial increase in 940 Town/Village taxes and decrease in City taxes would overshadow all other 941 considerations, and the consolidation would be seen simply as a subsidy of City taxpayers 942 by Town/Village taxpayers. Were this to be the common perception, consolidation 943 would have virtually no chance of becoming a reality. 944 945 b. The Effect of Consolidation on Sales Tax Distribution 946 Sales taxes revenues generated within Tompkins County are divided among New 947 York State, Tompkins County and local governments. The local government share of 948 sales taxes generated within the City goes to the City. The local government share of 949 sales taxes generated outside of the City is divided between the local governments (other 950 than the City) based on their population, irrespective of the jurisdiction in which they are 951 Draft 18 For Internal Use Only generated. The County Legislature bears the responsibility of determining how the sales 952 tax revenue is divided between the County and the municipalities. 953 954 Since only a modest number of retail stores are located within the boundaries of 955 the Town and Village, most of the Town and Village's sales tax revenue is generated by 956 sales that take place in the other towns and villages in Tompkins County. Therefore, if 957 the Town, City and Village were to consolidate into the City of Greater Ithaca, and the 958 formula for dividing the sales tax revenue were not changed (i.e., the sales tax revenue 959 actually generated in Greater Ithaca would be credited to Greater Ithaca), a large fraction 960 of the sales tax revenue currently received by the Town and Village would be credited to 961 Greater Ithaca. We estimate that of the Town and Village's current combined sales tax 962 annual revenue of $3.2 million would be reduced to $800,000. The resulting change in 963 real estate tax on a $200,000 home is shown in Table II. 964 965 Table 2 966 Property Tax on a $200,000 Home 967 Status Quo with Sales Tax Sharing Determined by the Existing Algorithm 968 969 City Town Village Current City/Town/Village $2,640 $1,052 $1,528 Greater Ithaca $2,043 $2,043 $2,043 School + County Tax $5,028 $5,028 $5,028 Total City/Town/Village Tax $7,668 $6,080 $6,556 Total Greater Ithaca Tax $7,071 $7,071 $7,071 Percent Tax Increase -7.8% 16.3% 7.9% 970 Of course, the County Legislature could certainly decide to allow the Town and 971 Village to take their sales tax with them when they consolidated with the City. In that 972 case, Table 1 would apply. This is a concrete example of how decisions made by higher 973 bodies regarding the allocation of local tax revenue can lead to sub-optimal local land 974 use, planning and transportation strategies. 975 976 c. Savings Due to Increased Efficiency 977 The Study Group talked with the department heads of the major departments in 978 the Town and City. Both municipalities have many of the same departments, including 979 public works, planning, recreation, and budget and finances. While the services these 980 departments perform are in many cases identical, they are not duplicative, since they 981 provide these services to a different group of customers. Some, and possibly the 982 majority, of the savings that might be realized from consolidation, such as the sharing of 983 specialized capital equipment, have already been accomplished by informal agreements 984 between parallel departments in these two municipalities. 985 986 However, it is possible that savings could be achieved by eliminating one of the 987 department heads when two parallel departments are combined. A very rough quick 988 estimate indicates a maximum annual saving of approximately $800,000, including fringe 989 benefits. Such a saving would translate in to a Greater Ithaca tax rate decrease of only 990 $0.35 per $1000 of assessed value. 991 Draft 18 For Internal Use Only 992 d. Increase in Per Capita State Aid 993 Cities in New York currently receive block grants from the State in an amount 994 roughly proportional to their population. If the City, Town and Village were to 995 consolidate, and the grant aid were increased to reflect the increase in population in the 996 transition from the City of Ithaca to the City of Greater Ithaca, the Greater Ithaca tax rate 997 would decrease by $0.59 per $1000 of assessed value. 998 999 Of course, there is no guarantee that the State would make such an adjustment. 1000 Indeed, currently that grant is capped. Currently, the enacted budget includes funding for 1001 an increase in state aid of 15% of the combined property tax revenue as an incentive for 1002 municipalities that consolidate, with a ceiling of a $1 million increase. That incentive 1003 would continue annually. Adding that increased state aid would decrease the Greater 1004 Ithaca tax rate by $0.45 per $1000 of assessed value. An alternative provision of law, 1005 which apparently is not funded at present, provides for an increase of 25% in the existing 1006 state aid block grant on an ongoing annual basis when municipalities consolidate, again 1007 capped at $1 million. Moreover, the former governor stated his support for consolidation 1008 of municipalities, and it is conceivable that his successor's support could translate into a 1009 proportional increase in the block grant. 1010 1011 Assuming that the County Legislature will allow the three municipalities to keep 1012 their current sales tax revenues when they consolidate, that the efficiency savings 1013 described above will be realized and that the State will agree to increase the block grant 1014 aid proportional to the increase in the population, Table 3 shows the changes to the real 1015 estate tax on a $200,000 home for the city, the town and the village. 1016 1017 Table 3 1018 Property Tax on a $200,000 Home 1019 Status Quo plus Increased Efficiency and State Aid 1020 as Described Above 1021 1022 1023 e. The Issue of Debt 1024 A glance at Table 1 shows that the current total property tax on a home in the City 1025 is 150% higher than a comparably priced home in the Town and 75% higher than a 1026 comparably priced home in the Village. Of the many factors that contribute to this 1027 disparity, one deserves special attention. The outstanding debt in the City per dollar of 1028 taxable assessed value is roughly ten times greater than it is in the Town, and eight times 1029 greater than it is in the Village. 1030 City Town Village Current City/Town/Village $2,640 $1,052 $1,528 Greater Ithaca $1,643 $1,643 $1,643 School + County Tax $5,028 $5,028 $5,028 Total City/Town/Village Tax $7,668 $6,080 $6,556 Total Greater Ithaca Tax $6,671 $6,671 $6,671 Percent Tax Increase -13.0%9.7%1.8% Draft 18 For Internal Use Only 1031 To estimate the effect of the current debt on property tax in a consolidated Greater 1032 Ithaca, we repeated the "Status Quo" calculation, making the following assumption: that 1033 part of the property tax on a $200,000 home in Greater Ithaca that pays for all expenses 1034 except for debt would be the same for all residents. However, residents in that part of 1035 Greater Ithaca that was originally in the City would pay the debt service on the City debt 1036 until it was paid off. Residents in that part of Greater Ithaca that was originally in the 1037 Town or Village would likewise continue to pay the debt service on that Town or Village 1038 debt until it was paid off. Of course, all property owners in Greater Ithaca whose 1039 property had the same assessed value would share equally the debt service on any new 1040 debt. Given the City's history of accumulating large debt, Town residents would have to 1041 be convinced that the governmental structure of Greater Ithaca had sufficient safeguards 1042 against the continuation of this practice. It would also be important for Town and Village 1043 residents to understand the degree to which they use and benefit from the infrastructure in 1044 the City such as bridges and roads that their tax dollars would be help to support in the 1045 future. 1046 1047 Table 4 shows the result of this calculation. 1048 1049 Table 4 1050 Property Tax on a $200,000 Home 1051 Status Quo plus Increased Efficiency and State Aid 1052 and Existing Debt of the Three Municipalities not Pooled 1053 1054 1055 Table 4 presents a scenario in which the owner of a $200,000 home living in the 1056 City and the Village enjoys a decrease of approximately $400 in his property tax, and the 1057 owner of the same home living in the Town experiences an increase of $150 in his or her 1058 property tax. 1059 1060 2. Identity Politics in the City, Village and Town 1061 By identity politics in the context of this report, we mean the extent to which the 1062 political jurisdiction in which an individual resides is a significant factor in that 1063 individual's self-identification. For example, local election district, State Assembly, 1064 Senate district and Congressional district boundaries change every ten years with little 1065 public comment or concern other than by elected officials and political leaders. On the 1066 other hand, a treaty by which the U.S. and Canada realigned the border between them is 1067 nearly unthinkable. The reason for the difference in the two cases is clear. National 1068 City Town Village Current City/Town/Village $2,640 $1,052 $1,528 Greater Ithaca $2,233 $1,200 $1,068 School + County Tax $5,028 $5,028 $5,028 Total City/Town/Village Tax $7,668 $6,080 $6,556 Total Greater Ithaca Tax $7,261 $6,228 $6,096 Percent Tax Increase -5.3%2.4%-7.0% Draft 18 For Internal Use Only citizenship is a critical part of most individuals' self-identification, while a legislative 1069 district is not. 1070 1071 Identity politics of this sort has played a leading role in changes in the political 1072 map of the globe in recent times, including the former two Vietnams, the Germanys, 1073 Soviet Union, Yugoslavia and Czechoslovakia. What role it will play in advancing or 1074 retarding the formation of Greater Ithaca remains to be seen. 1075 1076 Based on our experience as long time residents of the area, we make the following 1077 assessment of the prevailing self-identification of area residents. We are unaware of any 1078 existing survey information that speaks to this issue. We believe that Town and City 1079 residents generally identify themselves as coming from "Ithaca". Their children go to the 1080 same middle and high Schools. They share the same post office address and zip code. 1081 Politically, both are solidly Democratic; in the City, by a ratio of 4 to1, and in the Town, 1082 by a ratio of 2.5 to 1. The Town of Ithaca Board and the City Common Council have not 1083 had Republican members for nearly twenty years. Many residents of both jurisdictions 1084 are unaware of the boundary between the two jurisdictions. Residents tend to identify 1085 with neighborhoods with names that cannot be found on many maps such as Fall Creek, 1086 East Hill, Cornell Heights, or West Hill or Taughannock Boulevard, rather than as Town 1087 or City residents. We do not believe that the boundaries between the Town and City 1088 parts of the residential areas are of great concern or interest to residents of these areas. 1089 1090 Over the years, the Town has steadily changed from a mixture of rural and 1091 residential areas to a predominantly residential community. Currently, there are less than 1092 a dozen active farms in the Town. Furthermore, its odd geography (often described as a 1093 doughnut) makes the City's downtown the geographical, commercial, cultural and 1094 entertainment center of the Town. It is no accident that the Town's Town Hall is in the 1095 City. This unique geography and the current concentration in the City of Town residents' 1096 work, social, entertainment and cultural opportunities blurs the distinction between City 1097 and Town in their minds. Furthermore, it is our guess that for City residents, the 1098 geographical distinction that matters most to their self-identification is between 1099 downtown and the suburbs (including the City parts of East, South and West Hills) rather 1100 than the political boundary between the City and the Town. 1101 1102 In contrast to residents of the Town and the City, it is our sense that residents of 1103 the Village identify strongly as citizens of the Village of Cayuga Heights. Cayuga 1104 Heights is widely considered the most prestigious address in the County. The median 1105 family income and the per capita home assessment of the Village is roughly twice that of 1106 the Town. The perception of its residents is that the Village is the most desirable, safest, 1107 best served and best maintained municipality in the County. Our guess, based on 1108 perception, rather than any survey data, is that Village residents would be very reluctant 1109 to lose their Cayuga Heights identity. However, there are alternative strategies for 1110 preserving local geographic identity and some level of local control short of municipal 1111 boundaries that can be pursued (see Section VIII -Recommended Next Steps). 1112 1113 3. Moral and Ethical Considerations 1114 Draft 18 For Internal Use Only The problems arising from the structure of local public financing, whereby less 1115 affluent communities often have a greater ratio of financial needs to tax base, is widely 1116 recognized. One example of this phenomenon is a high density, lower income downtown 1117 jurisdiction surrounded by an independent low density, higher income residential 1118 jurisdiction. State aid to needy local jurisdictions and consolidation of jurisdictions are 1119 often proposed as solutions to the problems of financially stressed jurisdictions. 1120 1121 Consolidation can be seen as an appropriate step when the jurisdictions are 1122 contiguous, when the two jurisdictions share some measure of self-identification and 1123 when a convincing argument can be made that the more affluent jurisdiction derives an 1124 important benefit by its proximity to the less affluent jurisdiction. Even without a legal 1125 obligation to do so, residents of the more affluent jurisdiction may feel a moral obligation 1126 to take an action that may not be in their own financial interests. 1127 1128 In this particular consolidation, it is the citizens of the Village and the Town that 1129 must decide whether or not they agree with, and if they do, wish to respond to the moral 1130 and ethical dimensions of consolidation. No matter how this particular consolidation is 1131 structured, it will likely entail some additional property taxes for the residents of what is 1132 now the Town and Village to meet the mutual needs and benefits for the residents of 1133 Greater Ithaca. It would, in addition, likely entail some increase in service levels for 1134 residents of the Town (e.g., public safety) and possibly the Village as well. Many of 1135 these residents think of themselves as socially conscious individuals and support 1136 progressive causes and solutions. Whether those inclinations will play a role in their 1137 willingness to support consolidation can only be known when the idea enters the local 1138 public debate. 1139 1140 4. Non-monetary Costs and Benefits 1141 In the end, it is our conclusion that the decision whether or not to consolidate will 1142 depend on voters' assessments of a series of issues that do not have a direct or even 1143 predictable effect on their pocketbooks. One of these issues involves all three 1144 jurisdictions, and the others relate primarily to the Town and Village. We will discuss 1145 these four issues separately. 1146 1147 a. Merging Three Municipal Workforces into One 1148 Whether the sector is private, educational or public, one can expect to find that 1149 any proposal for a major organizational change will result in a volley of protests and 1150 arguments for preserving the status quo. The intensity of the protests tends to be 1151 proportional to the degree to which the protester is directly affected by the change, and no 1152 one is more affected by a change in an organization than those who derive their living 1153 from it. Staff who are content with their workplace, their bosses and their fellow workers 1154 have good reason to be wary of change. Mergers are often justified by savings or 1155 increased efficiency, which often means staff reductions or changes in responsibilities. 1156 The difficulties are compounded when the workforces of the merging organizations are 1157 represented by different labor unions. 1158 1159 Draft 18 For Internal Use Only We have no particular insight into the magnitude of this problem as it affects the 1160 consolidation of Greater Ithaca. We note that successful corporate mergers are 1161 commonplace throughout the nation. However, staff objections to consolidation is 1162 probably a greater obstacle to a successful merger in the public than in the private sector, 1163 since the municipal workforce has easier access and probably will attract greater support 1164 from the local residents than the workforce of a corporation can expect from corporate 1165 stockholders. 1166 1167 In the course of its deliberations, the study group talked with the department 1168 heads of the Public Works Departments of the Town and the City, and asked them 1169 whether they thought that staff objections would be a substantial obstacle to consolidation 1170 if the government of both municipalities came to the conclusion that it was in the best 1171 interests of the residents to pursue that course. They both felt that if that were to happen, 1172 the staff of their departments (which constitute a large part of the staff of both 1173 municipalities) would be happy to try to work constructively with each other to carry out 1174 the wishes of the public, and that they do not anticipate serious problems. We also note 1175 that the consolidation of the transportation systems of the City, the County and Cornell to 1176 form TCAT was achieved over the initial objections of the three different unions that 1177 were involved. 1178 1179 b. Increased Services for the Town 1180 With the exception of police protection for Town residents, nearly all of the 1181 services provided by the City, the Town or the Village are provided by each of the three 1182 jurisdictions. Police protection for Town residents is provided by the County Sheriff's 1183 office, which is independent of Town government. There is considerable anecdotal 1184 evidence that Town residents (outside of the Village) have been frustrated by the Town's 1185 inability to deploy a police presence to reduce speeding, illegal parking and other such 1186 problems. On occasion, the Town has considered establishing its own police force to 1187 carry out such activities, but found that the expense of building from scratch even a small 1188 police force was too great. 1189 1190 It is possible that the existing infrastructure of the City and Village police 1191 departments could be expanded at a modest cost to cover the police needs of the Town 1192 outside of the Village borders. If that turned out to be feasible, increased public safety 1193 might come to be seen by Town residents as an important tangible benefit of 1194 consolidation. 1195 1196 c. The Contribution of Each Municipality to the Other's Quality of Life 1197 When Town residents travel far from home and proudly describe their hometown 1198 as "a special place in upstate New York called Ithaca", what exactly do they have in 1199 mind? What's "special" about Ithaca compared to similarly sized upstate New York 1200 towns? 1201 1202 There is certainly no one answer to this question. Some will describe the setting - 1203 the three hills overlooking Cayuga Lake. Others will describe the spectacular vistas 1204 greeting visitors approaching Ithaca from the four points of the compass. But many will 1205 Draft 18 For Internal Use Only point to the quiet, suburban residential area that can boast the above settings yet is only a 1206 stone's throw from a nationally admired university, a smaller but very prominent college 1207 and a downtown center with cultural, culinary and entertainment opportunities that can 1208 compete with much larger metropolitan areas. 1209 1210 The state of downtown Ithaca has an important impact on the quality of life for 1211 those residents of the Town whose view of their hometown coincides with the latter 1212 description. For those residents, the chance to help define and take responsibility for the 1213 character and quality of their downtown may be viewed as a positive outcome of 1214 consolidation. Additional benefits might include the chance to participate in such 1215 looming future issues as transportation congestion, climate change, environmental 1216 stewardship and the interface of Cornell and Ithaca College with the community 1217 1218 The Town makes its contribution to City residents' quality of life in a 1219 complimentary fashion. With just a few miles of driving or biking, City residents will 1220 find in the Town working farms with livestock and roadside stands, preserved unique 1221 natural areas, cross country ski trails, peaceful recreational areas, a network of trails and 1222 parks and woods open to the public, and incomparable views in all seasons. 1223 1224 Taken as a whole, Greater Ithaca, the colored area on this report's cover page, 1225 provides a broader range of quality life experiences than the vast majority of other 1226 American municipalities can offer. 1227 1228 d. The Future Politics of Greater Ithaca 1229 At some level, consolidation involves complementary trade-offs for residents of 1230 the City and the Town. From the point of view of City residents, the downtown would 1231 receive additional resources from Town residents at a cost of their losing some measure 1232 of control over all decisions regarding the downtown. From the point of view of Town 1233 residents, they will acquire some level of control over decisions regarding the downtown, 1234 but at the cost of providing some level of financial support in exchange for that control. 1235 If consolidation is to be viable and acceptable to all parties, each must be aware of the 1236 nature of the potential gains, the trade-offs and the safeguards, and accept them willingly 1237 or not. 1238 1239 The Town and the City have some history of having agreed to similar bargains in 1240 the case of fire protection and the wastewater treatment plant. However these two 1241 examples have not given rise to deal-breaking policy disputes. Consolidation, on the 1242 other hand, makes all issues that face the City and the Town joint issues. In such a 1243 situation, each side must carefully consider how differing needs will fare under a 1244 combined government. 1245 1246 Both Town and City residents will surely note that the ratio of the population, and 1247 therefore the potential voting strength, of the City to that of the Town is roughly 5 to 3. 1248 In the U.S. Senate, such a ratio would correspond to a division of 62 to 38. In a binary 1249 legislature (i.e., two parties or two distinct interest groups), the majority group has the 1250 ability to ignore the views and concerns of the minority group. Indeed, we have heard 1251 Draft 18 For Internal Use Only concerns expressed by Town residents that consolidation would lead to a legislature that 1252 would simply use Town resources to fund City projects and address City needs. If a 1253 majority of Town residents do not believe that their concerns will be addressed in the 1254 Greater Ithaca governing body, consolidation will simply never happen. 1255 1256 The quick answer to the concern of Town residents is, as we have discussed 1257 above, that the boundaries between City and Town are artificial, often invisible to 1258 residents and will disappear with consolidation. In a consolidated government, the 1259 residential areas of the City adjacent to the Town will find more in common with the 1260 suburban parts of the Town than they do with downtown. However, in any elected 1261 government, what matters is the self-identification of the legislators, not the self-1262 identification of the residents. Before examining the implications of this statement, it 1263 makes sense to contemplate the future governing structure of Greater Ithaca. 1264 1265 The elected mayor of the City is its chief executive officer, and as such, prepares 1266 its budget. In addition, the mayor is a member of, chairs and appoints the committees of 1267 the Common Council, the City's legislative branch. The City is divided into five wards, 1268 each of which elects two members of the Council. The Town of Ithaca governing body is 1269 the Town Board, which exercises the executive and legislative functions of Town 1270 government. The Town Board consists of six Town Board members and a Supervisor, all 1271 elected at large. The Supervisor chairs the Town Board, appoints its committees, and 1272 prepares the annual budget, which is considered, amended and approved by the Town 1273 Board. In recent years, the Town Board has annually chosen to delegate its managerial 1274 responsibilities to the Supervisor. 1275 1276 If the City and the Town decide to consolidate, they must decide whether the new 1277 municipality will organize as a Town or a City. The conventional wisdom is that a city is 1278 allowed more flexibility in establishing the details of its governing structure, and that 1279 cities are more likely than towns to receive state and federal aid. Towns may choose to 1280 have Town Boards as large as they please, and may choose to have them represent 1281 subsections of the Town (i.e., wards) rather than the Town as a whole. Likewise, cities 1282 may choose to elect their Council members at large or by wards. While it is certainly true 1283 that most cities are larger than most towns, there are striking exceptions to this rule. The 1284 Town of Hempstead, New York has a greater population than the cities of Boston, Seattle 1285 or San Francisco. Either form of government could probably work for Greater Ithaca. 1286 What is more important is the politics of the consolidated municipality. 1287 1288 When redistricting takes place, legislators strive to have "their" new districts 1289 correspond as much as possible to their old districts. Currently, in addition to the city 1290 mayor and town supervisor there are ten elected City Council members and six elected 1291 Town Board members. The 16 legislators representing the City and Town are consistent 1292 with the 5 to 3 ratio of population of the two jurisdictions. Traditionally, legislators 1293 identify themselves with their legislative districts, and strongly prefer redistricting 1294 solutions that preserve their districts. A division of Greater Ithaca into 8 wards, five in 1295 the city and three in the town, would maintain the districts of all city legislators and 1296 Draft 18 For Internal Use Only create favorable districts for all of the six town board members, and likely appeal to 1297 current office holders. 1298 1299 Unfortunately, current legislators bring with them their self-identification with 1300 City or Town, and would be likely to reinforce the fears of current Town representatives 1301 that their concerns would not receive a sympathetic hearing from a 16 member Council 1302 dominated by ten representatives answerable to solely City constituents. One possibility 1303 might be to elect all legislators at large. However, it is conceivable that such a system 1304 might make the problem worse by inducing the Town legislators to run as a block and 1305 concentrate their efforts on the parts of Greater Ithaca that were in the old Town, and 1306 vice-versa for City legislators. It is possible that such an election would produce a 1307 winner-take-all outcome, resulting in a legislature that was composed mostly of either 1308 Town or City legislators, depending on which jurisdiction had a greater voter turnout. 1309 1310 The decision about how to design and apportion the governing council of Greater 1311 Ithaca, be it a Town or a City, is very fundamental and crucial, and must be an important 1312 part of future study and deliberation if consolidation is pursued. 1313 1314 VI. Other Approaches to a More Unified Local Government 1315 1316 A. The Role of County Government 1317 1318 While this report deals with issues of consolidation of services between the City 1319 and Town of Ithaca, Tompkins County government could play a role in this discussion in 1320 the future. In recent decades, county government has become stronger and more 1321 involved in providing local services as the state has become more urbanized, with the 1322 balance between rural and urban populations shifting towards urban areas away from the 1323 surrounding rural towns. In this process, some services provided by local municipalities 1324 have been taken over by county governments, and the state legislature, which regulates 1325 the powers of local municipalities have encouraged this transition. A bit of governmental 1326 history in Tompkins County helps illustrate this trend. 1327 1328 Originally, Tompkins County was governed by a Board of Supervisors. Town 1329 Supervisors carried out dual responsibilities as both the leaders of town governments and 1330 members of the county legislature. Many rural, low population counties in New York 1331 still retain this form of government. Initially, Tompkins County offered relatively few 1332 services. It had a sheriff's department, and a major concern was caring for the poor. A 1333 County Home was established in the early nineteenth century and continued to exist until 1334 quite recently. In the early twentieth century, the County Board of Supervisors 1335 established a Highway Department, and in mid-twentieth century, it established the 1336 Public Health and the Welfare (renamed Social Services) departments. Other services 1337 came along rapidly in the mid and late twentieth century as the county population grew. 1338 1339 A major change in governmental structure took place in 1970 when the Board of 1340 Supervisors was replaced by the Board of Representatives (renamed recently as the 1341 County Legislature). That year, the County became what is known as a charter county. 1342 Draft 18 For Internal Use Only According to state law, a charter county is permitted to exercise more control (otherwise 1343 known as home-rule) over the scope of its operations. Charter counties are seen by their 1344 supporters as being better suited to address the wider range of public services demanded 1345 by those living in cities and urbanized towns. The Tompkins County Board of 1346 Supervisors in 1970 saw the need to adopt a different governmental structure that could 1347 respond more effectively to the demands caused by the rapid increase of population in 1348 Tompkins County following the end of World War II, and the rapid growth of Cornell 1349 University and Ithaca College. 1350 1351 Since 1970, with this new form of government, the County was better able to 1352 assume some of the functions of the City and the towns, relieving them of the costs and 1353 responsibilities. A few examples of this realignment of services are instructive; they 1354 point to a possible continuation of the movement of some local services to the County, 1355 reinforcing the suggestion that future discussions of consolidation of public services 1356 would benefit by bringing the County into the picture. 1357 1358 One of the first actions taken by the County on January 1, 1970 was to establish a 1359 county-wide property assessment office. Interestingly, Tompkins County is still only one 1360 of two counties in the state to have done so. This consolidation of the assessment 1361 services has provided a uniform system and has saved our local governments time and 1362 money. Many other New York counties look to Tompkins as a leader in assessment 1363 practices, and some have expressed wonderment that the county was able to accomplish 1364 this major feat of consolidation in the face of the power often wielded by local assessors. 1365 1366 Another important consolidation of local services was in the area of solid waste. 1367 Until approximately twenty years ago, our towns and the city each had their own garbage 1368 dump. As environmental issues became more prominent, the State required that these 1369 dumps be upgraded or closed. This would be a very costly process for the local 1370 municipalities, especially for the rural towns with small populations and limited budgets. 1371 With state financial and professional assistance (together with a mandate), the County 1372 took over this responsibility, relieving the municipalities of that financial burden. Solid 1373 waste removal, together with the expanded services for recycling, has now become a 1374 major and costly responsibility of Tompkins County government. Nevertheless, this 1375 consolidation was a better way of dealing with solid waste, rather than having each 1376 municipality manage its own dump and recycling center. 1377 1378 For similar reasons, the County has become involved, or considered becoming 1379 involved in other functions. For example, the County now builds all the bridges and 1380 much of their repairs in all of the County's towns (but not the City), even though they are 1381 not on County roads. Also, discussions have been ongoing for a number of years about 1382 moving youth services entirely to County government, and to have much of the cost of 1383 those programs included in the County budget. In these discussions, issues of sharing of 1384 costs and control are at stake, as can be expected when towns are asked to give up 1385 services to another governmental organization. 1386 1387 B. Other Consolidation Avenues 1388 Draft 18 For Internal Use Only 1389 Additionally, there are other consolidations that have occurred recently that have 1390 been based on consortiums of other local organizations and governments. Examples 1391 include the Metropolitan Planning Organization, a regional transportation planning 1392 group, TCAT, a regional public transportation network, governed by a consortium of the 1393 City, County and Cornell representatives, the County Library governed by its own Board 1394 of Trustees, and Bolton Point a water system operated by a consortium of towns. In the 1395 mid twentieth century, local school systems in NY were consolidated into a structure that 1396 transcends municipal boundaries and is governed by a separately elected school board. 1397 Thus there are several forms of governmental structure that could be employed when 1398 looking at consolidation of services. This trend toward the upward movement of services 1399 to larger organizational structures could provide some savings and improved efficiencies 1400 for the County's municipalities. 1401 1402 VII Recommended Next Steps 1403 1404 In general, the committee believes that consolidation of the two municipalities 1405 makes sense conceptually, and that the idea should be pursued. The committee 1406 recognizes that there will always likely be substantial barriers to the consolidation of two 1407 municipalities, and that it will not take place without building a strong consensus in both 1408 municipalities that consolidation makes sense. Therefore, the committee suggests the 1409 following courses of action. 1410 1411 The first and most urgent cooperative venture should be to establish a close 1412 relationship between the parallel efforts in the Town and City to revise their 1413 comprehensive plans. This relationship should be much more than an exchange of 1414 information. One of the major potential gains of consolidation is that Greater Ithaca 1415 would look more broadly at future planning, and establish a plan based on a common 1416 vision. If the two municipalities cannot agree on a common vision, it is unlikely that 1417 consolidation will ever come to pass. If they can, then some of the barriers to 1418 consolidation (e.g., fears that the two entities will have very different plans and priorities 1419 for their common resources) may be greatly diminished. Comprehensive planning is a 1420 rare event in both municipalities, and the two municipalities should not squander this 1421 fortuitous congruence of timing. 1422 1423 The City and the Town should establish a joint committee of legislators (including 1424 legislators from the Village of Cayuga Heights) to adopt a broad policy position to be 1425 adopted by the municipalities to consolidate over time, regardless of how long that may 1426 take. Such a policy should include the following items: 1427 1428 ● An exploration, in greater depth, of the step-by-step consolidation of specific 1429 services, as identified in Section V of this report. Special note should be taken of 1430 the need to participate quite soon in the County's efforts to build a new public 1431 records center. 1432 1433 Draft 18 For Internal Use Only ● The establishment of joint City/Town neighborhood associations in border 1434 areas such as South Hill, East Hill, West Hill and Cornell Heights/Cayuga Heights 1435 so that the City and Town could address the concerns of their residents in a 1436 coordinated way. 1437 1438 ● Detailed studies of the legal and financial aspects of consolidation undertaken 1439 by professionals. Particular attention should be paid to the possibility of the 1440 Village maintaining some measure of independence in a consolidated 1441 municipality. Examples of consolidation successes and failures in other 1442 communities should be thoroughly studied. Funds for this should be sought from 1443 the state government, which has a program for this purpose (see Appendix 2). As 1444 noted above, no funds and no staff were available to the committee to prepare this 1445 report. These in-depth studies should look at both individual public services as 1446 well as the larger picture of total consolidation. The City and Town might jointly 1447 approach Cornell and Ithaca College to make use of any expertise and help they 1448 could offer, 1449 1450 ● The municipal parties should enlist the help of local media, political parties, 1451 civic associations (e.g., Chamber of Commerce, League of Women Voters, 1452 Service Clubs, religious organizations) to foster broad based Town, City-and 1453 Village wide public discussion of shared services and consolidation. 1454 1455 VIII. A Vision of the Future 1456 1457 At its initial meetings in December 2006, the Joint Study Group carefully read the 1458 documents in Appendix 5 in an effort to understand our charge. We were asked "to 1459 examine, among others, the pros and cons of both shared services and possible 1460 consolidation." While we were not specifically asked to draw any conclusions from our 1461 examination, we were not prohibited from doing so. However, early in the process, we 1462 all agreed that for various reasons, we should not make a recommendation regarding 1463 whether or not the Town and City should consolidate. 1464 1465 During the almost two years of regular discussion and deliberation, we found that 1466 our initial skepticism about the feasibility and possible benefits of consolidation slowly 1467 evolved into a unanimous belief that its rewards were potentially substantial and that for 1468 national as well as local reasons this moment was unique and the opportunity it presents 1469 must not be allowed to slip by. In this spirit, we offer below in narrative form our view 1470 of what benefits consolidation might mean to future citizens of Greater Ithaca. 1471 1472 An energized Greater Ithaca would pioneer new and innovative ways to 1473 determine, establish and carry out area goals, hold down the expenses of providing public 1474 services and at the same time provide mechanisms that give neighborhoods the 1475 opportunity to bring forward their problems in the expectation that they would be 1476 addressed. Consolidation, joint authorities, neighborhood councils, and shared services 1477 are the tools most often mentioned, but a general recognition that solving the problems of 1478 a new century requires new tools will likely generate other more efficient institutions. 1479 Draft 18 For Internal Use Only 1480 A unified Greater Ithaca would find ways to coordinate its planning and economic 1481 development efforts to achieve area goals and work as a single partner with Cornell and 1482 Ithaca College to ensure the economic vitality of the area while preserving the quality of 1483 life of all its neighborhoods. It would join with other area governments and institutions 1484 to capitalize on the diverse strengths of the area from its high tech potential to its growing 1485 wine industry, to solve its diverse problems from a lack of affordable housing to a 1486 deteriorating infrastructure, and last but not least, to develop sustainable, socially 1487 conscious and environmentally sensitive policies for the future. 1488 1489 In short, Greater Ithaca could lead the way in the long sought transformation of 1490 upstate New York. 1491 1492 1493 1494 Draft 18 For Internal Use Only Appendix 1 1495 1496 Past Cooperation and Consolidation Efforts 1497 1498 While the work of this City-Town Joint Study Group should be viewed as unique in its 1499 particular combination of time, place and circumstances, it is not without precedent in the 1500 municipal lives of the City and the Town of Ithaca. A modest review of local newspaper 1501 coverage and public meeting minutes dating back sixty years has revealed a number of 1502 concerted efforts toward intermunicipal cooperation and consolidation involving the City, 1503 the Town and, in some instances, the Village of Cayuga Heights. Also evident in past 1504 decades are successful initiatives within even broader geographic spheres, such as the 1505 Tompkins County Board of Supervisors’ approval in mid-1946 of the consolidation of 1506 City and County health offices into a County health district, or the April 1956 vote by 1507 forty-two suburban school districts in favor of consolidation with the Ithaca City School 1508 District. 1509 1510 Among the various efforts involving the City and the Town of Ithaca, the most salient 1511 were two which produced substantial documents of their work—the Greater Ithaca Fact-1512 Finding Committee, formed in 1947, whose report was released in March 1953, and the 1513 Greater Ithaca Regional Planning Board, created in 1957, whose plan of the Ithaca urban 1514 area was published in 1959. During the 1950s and 1960s, still other joint committees 1515 composed of elected officials and community leaders explored ways to make a reality of 1516 the prediction that was captured in a July 15, 1963 Ithaca Journal headline—“Unified 1517 Area Government ‘Inevitable’ Here.” To understand the work and significance of each 1518 of these efforts would require further investigation in order to identify the conditions that 1519 led up to each initiative, its chief proponents and participants, the vehicle (board, 1520 commission, committee) charged with each study and the resources made available to it, 1521 and the findings, recommendations and outcomes of each. 1522 1523 Greater Ithaca Fact-Finding Committee 1524 “The Invisible Wall; Shall It Come Down?” queried the headline of the Ithaca Journal 1525 editorial as it quoted a local official who had noted that “‘there has been too much of this 1526 business of setting the people of the City against the people of the Town [of Ithaca] and 1527 the Village [of Cayuga Heights], or vice versa on the basis of prejudice coupled with 1528 incomplete or erroneous facts.’” The date was February 11, 1947, and a committee, to be 1529 named the Greater Ithaca Fact-Finding Committee, was embarking on its work, seeking 1530 to gather facts and balance advantages and disadvantages in order to ascertain whether 1531 Ithaca “can be made a better community, a more attractive community, a more 1532 progressive community, through a consolidation of the separate political units inside and 1533 outside of the Invisible Wall” of the corporation boundary. This initiative was set in 1534 motion by City Mayor Arthur N. Gibb, following conversations with the Town of Ithaca 1535 Supervisor, Harry N. Gordon. 1536 1537 While many of the observations recorded in this 1947 editorial have parallels today, its 1538 language that describes “the possible expansion of the city’s boundaries” gives a clue to 1539 the City’s relationship to the other municipalities as one of a “have” to “have-nots” in 1540 Draft 18 For Internal Use Only terms of water and sewer systems, fire and police protection, garbage collection, and the 1541 like. Appropriately, the charge to the new committee was to present information on the 1542 cost of providing such services to outlying areas. 1543 1544 The final, approximately 350-page report of the Greater Ithaca Fact-Finding Committee, 1545 delayed by an initial lack of resources, was dated December 1952 and made public on 1546 March 23, 1953. Remaining close to its “fact-finding” mission rather than specifically 1547 promoting or discouraging annexation, the committee concluded that “[its] estimates 1548 indicate that it is possible to devise arrangements under which the cost to taxpayers 1549 during the next several years is not likely to differ greatly regardless of whether urban 1550 services are provided for areas adjacent to the City by annexation or by the use of special 1551 town districts and other devices.” (Ithaca Journal, Mar. 23, 1953) 1552 1553 Interlude 1554 About a month following the release of the report, the heads of the three participating 1555 municipalities agreed to establish a four-member committee to study the matter of 1556 annexation with greater specificity in order to provide recommendations and information 1557 pertaining to particular areas of the Town and Village; five such study areas were 1558 identified as candidates for early attention. The committee was expected to engage 1559 Cayuga Heights engineer Carl Crandall for technical studies, and to have additional input 1560 from City Superintendent of Public Works Francis J. Laverty. (Ithaca Journal, Apr. 27, 1953) 1561 1562 Although details of the new committee’s work have not yet been ascertained, it is clear 1563 that interest in intermunicipal opportunities and issues remained current. In an October 7, 1564 1953, speech to the Ithaca Rotary Club, Superintendent Laverty called for “a 1565 comprehensive master plan for the Greater Ithaca area,” one that would address 1566 “clusters” of problems or needs—traffic, water and sewer facilities, indoor and outdoor 1567 recreation, etc.—through joint initiatives by the City and either the County or the Town. 1568 He cited two different means of coordinating efforts—by the consolidation of 1569 governmental units, or by “closer cooperation between groups with similar functions.” 1570 Noting, for example, that there were twelve governmental agencies concerned with 1571 highway construction in Tompkins County, Laverty proposed the pooling of all publicly 1572 owned equipment, with its administration under county supervision. (Ithaca Journal, Oct. 8, 1573 1953) 1574 1575 Meanwhile, various annexation proposals continued to be explored, with one of the more 1576 dramatic involving the Village of Cayuga Heights, fueled by a Tompkins County Board 1577 of Health assessment of sewerage conditions in the village. When the proposed 1578 annexation was rejected in late 1954 by an informal poll in which 744 of the village’s 1579 potential 900 voters participated, Cayuga Heights trustees responded by adopting 1580 resolutions “committing the villagers to construction of their own sewage disposal plant 1581 and establishment of a fire department.” (Ithaca Journal, Jan. 5, 1955) 1582 1583 The idea of a broad-based planning effort was given form and made public in August 1584 1955 by “a committee of interested citizens which has been meeting frequently for the 1585 last two years,” at least three of whose members had participated in earlier initiatives. 1586 Behind this proposal for a Citizens Regional Planning Council of Tompkins County was 1587 Draft 18 For Internal Use Only the belief that the community’s limited resources of time and money could be best 1588 employed by physical and social planning efforts that emphasized cooperation and 1589 prioritization. A letter of introduction and an outline of the proposed council’s goals and 1590 membership were distributed to some 400 community leaders, from whom comments 1591 were solicited. (Ithaca Journal, Aug. 8, 1955) 1592 1593 Greater Ithaca Regional Planning Board 1594 Though no direct link has yet been identified between the 1955 proposal and the 1595 subsequent establishment of a regional planning board, it seems likely that that they are 1596 connected. Following preliminary approvals by the respective municipal bodies in Fall 1597 and Winter 1956, the City of Ithaca Common Council on February 6, 1957 approved an 1598 agreement between the City and Town of Ithaca and the Village of Cayuga Heights to 1599 create the Greater Ithaca Regional Planning Board. Four members were to be from the 1600 City, two from the Town and one from the Village. Funds totaling $7,000 for the board’s 1601 operations in 1957 were committed by the respective municipalities, in proportion to their 1602 membership. (Common Council Minutes, Regular Meeting) 1603 1604 The broad goals and specific efforts of this board may be understood in its 1959 1605 publication, Ithaca Urban Area: A General Plan that resulted from a comprehensive 1606 general plan study undertaken in 1958, with consultants Community Planning Associates, 1607 Inc. of West Trenton, New Jersey, Thomas Niederkorn, Resident Planner. This general 1608 plan set forth desirable principles, objectives and standards for the physical development 1609 of the region, and recommended particular actions based on its studies of land use, 1610 physical facilities, population distribution, and projected growth rates. It was presented 1611 as “a dynamic ‘Living Platform’ from which action on specific problems can be 1612 programed [sic].” 1613 1614 The Greater Ithaca Regional Planning Board remained active during the 1960s, having 1615 expanded its membership beyond the original three municipalities, and being called upon 1616 by various of the governing bodies and their elected officials. Still other committees were 1617 formed, as local interests expanded into regional ones. In 1960, Village of Cayuga 1618 Heights Mayor Frederick G. Marcham was reported to have described “his ideal 1619 governmental situation” being a “’composite structure of government’” including the 1620 Village, City and Town, and perhaps even the county. In 1963, Ithaca Mayor John Ryan 1621 changed the name of the City’s special Annexation Committee to include the word 1622 “Consolidation,” and the Greater Ithaca Study Committee worked alongside the Regional 1623 Planning Board on a number of issues. 1624 1625 Woven throughout the local news of these times were reports of requests for extensions 1626 of water and sewer services, as residential and commercial development sought to expand 1627 beyond the immediate urbanized area. Understanding these requests and their disposition 1628 of seems essential in understanding the historical context of intermunicipal initiatives. In 1629 addition, alongside the reports of efforts toward cooperation and consolidation were 1630 concerns about population decline in the City and costs. The City proceeded to approve 1631 and adopt its own “General Plan” in May 1970; in the plan, as published in 1971, the 1632 Epilogue noted that “while the General Plan is limited directly by the governmental 1633 Draft 18 For Internal Use Only boundaries of the city, the plan must also estimate the impact of trends of growth and 1634 development in the area external to the city and vice versa.” After presenting some of the 1635 areas in which broader perspectives were required, it acknowledged the importance of 1636 intergovernmental cooperation and of planning and programming organized action by 1637 private and public agencies at all levels. 1638 1639 1640 1641 Draft 18 For Internal Use Only Appendix 2 1642 1643 New York State Commissions, Reports, Funding Opportunities and 1644 Fiscal Incentives Related to Local Government Efficiency, Shared 1645 Services and Consolidations 1646 1647 The State of New York has long been interested in fostering local 1648 government efficiency, shared or consolidated services and, where warranted, 1649 municipal consolidations. 1650 1651 Most recently, in April 2007 Governor Eliot Spitzer established the New 1652 York State Commission on Local Government Efficiency and Competitiveness. That 1653 Commission issued its final report in April 2008. The report along with the briefs and 1654 studies that accompany it may be found on the web at 1655 http://www.nyslocalgov.org/report_page.asp. Of particular relevance to these Ithaca City 1656 and Town study considerations is a consultant’s report to the Commission that assessed 1657 opportunities for shared services and consolidations between three upstate city/town 1658 configurations: Oneonta, Norwich, and Cortland. The consultant’s findings at points bear 1659 striking similarity to these Joint Study Group conclusions. The Commission report 1660 concludes, as have earlier efforts, that New York State suffers from the burden of an 1661 antiquated local government structure, with nearly 5.000 local entities. The report 1662 recommends modernization through change initiated at the local level that will 1663 streamline municipal jurisdictions and increase shared services, without sacrificing local 1664 identify. 1665 In recent decades several earlier commissions have addressed local 1666 government reform. These have included: the Commission on Local 1667 Government Reform (Governor Pataki, 2002-2004); Commission on the 1668 Consolidation of Local Governments (Governor Cuomo, 1990-1993); the Local 1669 Government Restructuring Project (Riley Commission, Rockefeller Institute, 1670 1990-1992); and the School District Organizational Change Study (Regents/State 1671 Education Department, 1992-1995). All have supported the need for increased 1672 shared services and consolidations to improve effectiveness and efficiency. 1673 1674 The Division of Local Government Services and Economic Development 1675 within the Office of the State Comptroller has issued a number of reports over the years 1676 that focus on the need for local government reforms. Significant reports include: Local 1677 Government Management Guide, Intermunicipal Cooperation, November 2003; 1678 Intermunicipal Cooperation and Consolidation, 2003; and Outdated Municipal Structures, 1679 Cities, Towns, and Villages – 18th Century Designations for 21st Century Communities, 1680 October 2006. Copies of these reports may be accessed on the web at 1681 http://www.osc.state.ny.us/localgov/pubs/listresearch2.htm. 1682 1683 The Division of Local Government in the New York State Department of 1684 State also has prepared a guideline for considering Consolidations for Towns and 1685 Villages, which can be accessed on the web at 1686 Draft 18 For Internal Use Only http://www.dos.state.ny.us/lgss/publications.htm, along with relevant statutes and 1687 legislation governing municipal organization. The Department also maintains the State’s 1688 Shared Municipal Services Incentive (SMSI) Grant Program, which provides: 1689 1690 • Cities and towns, among other municipal entities, may apply for grants of up to 1691 $200,000 per municipality for consolidations, mergers, cooperative agreements 1692 and shared services between two or more municipalities; 1693 • Priority in the selection of awards will be given to applications that plan or study 1694 consolidations, mergers, and dissolutions; implement shared highway services 1695 projects; and develop countywide shared service plans, among other criteria. 1696 • Annual grant application deadlines are usually in December and awards 1697 announced the following May; 1698 • More information is available on the Department of State website at: 1699 http://www.dos.state.ny.us/lgss/smsi/index.html 1700 1701 State government also supports a Local Government Efficiency Grant 1702 Program (LGEG), which provides: 1703 1704 • Two or more municipalities may apply for competitive grants for Efficiency 1705 Implementation activities that can achieve savings; 1706 • Grants can be used to cover transitional personnel costs to implement new joint 1707 functions, among other applications; 1708 • Grant amounts will be up to $200,000 per municipality, with a total amount not to 1709 exceed $1 million; 1710 • General Planning Grants for groups of municipalities to study shared services 1711 will be awarded on a competitive basis in amounts up to $25,000 for two 1712 municipalities, plus $1,000 for each additional partner, with a $35,000 maximum; 1713 • High Priority Planning Grants targeted to specific types of studies are available 1714 on a non-competitive basis; groups of municipalities may receive funding to study 1715 sharing or consolidating services countywide or on a multi-county or regional 1716 basis; single municipalities may get grants for charter revision studies that include 1717 functional consolidation or service sharing; amounts will vary by category, not to 1718 exceed $50,000. 1719 1720 As recommended by the Joint City / Town Study Group, a successor body 1721 should be charged with studying in detail the feasibility and desirability of consolidating 1722 the City and Town of Ithaca municipalities into a Greater Ithaca municipality and, if not a 1723 full political consolidation, then consolidation of services or shared services including 1724 such functions as comprehensive planning. That study and planning activity would be 1725 eligible for state support through the General or the High Priority Planning Grants 1726 identified above and, if significant savings were identified, and Efficiency 1727 Implementation Grant. If consolidation of municipalities or services were ultimately 1728 approved, then state support of up to $200,000 per municipality might, on a competitive 1729 basis, be available to implement the consolidation. 1730 1731 Draft 18 For Internal Use Only In addition, the State Budget funds specific Consolidation Incentives for 1732 municipalities that achieve consolidation. These include: 1733 1734 • An increase in Aid and Incentives for Municipalities (AIM or "revenue 1735 sharing") equal to 15% of the combined property tax levy of the 1736 consolidating municipalities; this incentive funding continues annually and 1737 is capped at $1 million annually; OR 1738 • A 25% increase in the AIM of the consolidating municipalities. This 1739 incentive funding continues annually and is capped at $1 million annually; 1740 OR 1741 • $250,000 the first year after the consolidation, phased down in equal parts 1742 over the following four years ($200,000 in the second year, $150,000 in the 1743 third year, etc.) This is capped at 25% of the combined property tax levy of 1744 the consolidating municipalities. 1745 1746 This program is administered by the New York State Division of the Budget, 1747 and more information is available on the DOB website at: 1748 http://www.budget.state.ny.us/localities/local/aim.html. Additional modeling 1749 is required to confirm the level of additional ongoing state revenue sharing that 1750 would be available to a Greater Ithaca municipality. 1751 1752 1753 Complementing these financial supports and incentives, State Government 1754 will also be providing enhanced technical assistance and information on best practices. 1755 Technical assistance might include legal guidance, financial modeling, procedural advice, 1756 data sharing, results from case studies, and liaison with other municipalities studying or 1757 pursuing consolidation. 1758 1759 Draft 18 For Internal Use Only Appendix 3 1760 Legal Aspects of Consolidation 1761 1762 Like many other aspects of New York State government, the powers of, and 1763 relationships among, the state's municipal corporations are covered by a number of 1764 separate and at times confusing statutory regulations. While not intended to be in any 1765 way comprehensive, the purpose of this Appendix is to point out some of the legal 1766 questions that might arise in any proposed consolidation of the City and the Town of 1767 Ithaca. Municipal corporations, including cities and towns, are created by the state, and 1768 the state accordingly may prescribe the manner in which municipal corporations are 1769 created, made larger or smaller, or dissolved, with or without the consent of the citizens 1770 of the larger area out of which the municipal corporation has been created. 1771 1772 One of the major differences between towns and cities is that towns, like counties, 1773 are mere subdivisions of the state; they are organized in order to exercise, in a convenient 1774 manner, portions of the state's political power. Cities and villages, on the other hand, are 1775 created by charter and have a number of private and proprietary powers other than 1776 carrying out the duties of government. This distinction has eroded somewhat over time, 1777 as New York's towns have begun to assume proprietary and quasi-proprietary duties of 1778 their own, but it is still an important one. However, under New York law, both cities and 1779 towns have an inherent right to local self-government that is considered to have existed 1780 even before the adoption of the state Constitution; for this reason, the New York State 1781 Constitution itself contains a bill of rights of local governments. 1782 1783 There appear to be no legal barriers to the consolidation of services between a city 1784 and a town. Under the Constitution, local governments may provide, cooperatively or 1785 jointly, or through contract, "any facility, service, activity or undertaking which each 1786 participating local government has the power to provide separately" and to apportion the 1787 sharing of expenses between or among the local governments affected. The actual 1788 consolidation of local governments into one governmental entity is a different matter. 1789 1790 Under the Municipal Annexation Law, a local government may annex territory 1791 belonging to another local government, provided that the majority of the inhabitants of 1792 that territory agree and that the governing board of each of the involved local 1793 governments consents to the annexation. If this consent is not given, the State 1794 Legislature may direct that the Supreme Court (New York's lowest court of general 1795 jurisdiction) determine whether the annexation would be in the overall public interest. 1796 However, by the explicit provisions of the Municipal Annexation Law, the term 1797 "annexation" does not mean or include "consolidation." 1798 1799 Under the Town Law, two or more towns in the same county may consolidate by 1800 a vote of the majority of the voters in each of the towns, in a vote on a ballot proposition 1801 for consolidation submitted by the boards of the towns at either a general or special 1802 election. Consolidation of a city and a town, however, is not so simple. 1803 1804 Draft 18 For Internal Use Only As noted, the State Legislature has the power to consolidate municipal 1805 corporations without receiving the consent of those municipal corporations. When the 1806 Home Rule Amendment was added to the State Constitution in 1923, the question 1807 quickly arose whether the amendment limited that particular power of the Legislature. 1808 The Court of Appeals, New York's highest court, answered that it did not. The Court 1809 held that increasing or decreasing the size of an existing city is not within the "property, 1810 affairs or government matters" covered by Home Rule; instead, it remains an incident of 1811 the "legislative power to create and abolish municipal corporations and to define their 1812 boundaries," because this is a matter of state concern, extending beyond the limits of the 1813 affected city.1 1814 1815 Although our research has not yet uncovered any case specifically addressing this 1816 question, it appears that a city and a town that wish to consolidate may not do so in the 1817 manner that would be available to two towns. In order to consolidate a city and a town, a 1818 special law must be passed by the Legislature. An existing city that would be affected by 1819 such a special law can present its objections to the Legislature before the special law is 1820 enacted, but the decision itself is up to the Legislature. 1821 1 See City of New York v. the Village of Lawrence (250 NY 429 [1929]). 1822 1823 1824 Appendix 4 1825 1826 2005 Municipality Budgets 1827 1828 TOWN CITY VILLAGE 1829 1830 Aggregate Expenditures Subtotals Total Operations Personnel $3,717,568 $30,061,621 $2,328,619 Wages $2,621,282 $19,366,200 $1,738,182 Fringes $1,096,286 $10,695,421 $590,737 Materials & Equipment $2,437,000 $476,931 $409,327 Highway Dept $1,937,000 Payments for Services to City $3,294,942 $6,049 Cass Park $100,192 Fire Protection $2,329,914 Water&Sewer $864,836 Payment to Cayuga Heignts $385,056 Fire Protection $188,475 Sewer Treatment $196,581 Other Governmental Servie Providers $1,171,848 $253,137 Bolton Point $1,171,848 Non Governmental Service Providers $99,321 $8,890,001 Debt Service $6,221,379 $122,161 Other $371,591 $203,838 $46,280,709 Capital Expenses Personnel $634,984 Draft 18 For Internal Use Only Materials & Equipment $82,422 $2,609,277 Pew Trail and South Hill Water $56,709 Other $25,713 Non-Govermnemtal Service Providers $325,000 Debt Service $1,204,706 $281,624 $3,850,885 Total $12,392,863 $50,131,594 $3,063,945 Expenditures by Function Administration $1,405,596 $4,168,991 $315,029 Water $1,893,372 $3,196,407 Sewer $1,097,677 $4,718,127 Solid Waste $542,194 $152,414 Fire $2,750,646 $7,674,487 $213,878 Planning and Development $465,563 $809,723 Zoning $285,385 $966,979 $86 Highways, Walkways and Trails $2,076,328 $3,528,134 $660,254 Parks & Recreation $749,029 $5,661,298 Parks $945,158 Recreation $4,716,140 Other Human Services $23,900 $56,790 Police/Crossing Guards $16,021 $8,991,066 $602,253 Traffic Controls $621,856 Safety Inspections $966,979 $25,610 Parking Garages $1,493,821 $126,740 Contributions to BID $58,500 Other $254,369 $210,881 Courts/Prosecution $386,723 $381,097 $44,204 TCAT $663,166 Utilities $81,103 $804,463 Draft 18 For Internal Use Only Insurance $113,187 $722,262 $61,383 Debt Service $1,204,706 $0 $122,161 Other $27,441 Capital Expenses $3,850,885 $12,576,677 $50,131,594 $2,534,893 Aggregate Revenue by Source Property Tax $4,930,493 $13,511,816 $1,697,062 Sales Tax $2,604,003 $9,761,642 $639,654 Mortgage Tax $313,290 Fines and Penalties $354,015 $722,048 $39,409 Parking $1,339,047 Payments/Fees for Services Water $1,908,799 $3,241,985 Sewer $1,427,748 $3,734,969 Solid Waste $558,443 $37,892 Other Services to individuals/organizations $576,071 Other Services to governments Town $2,548,676 Other $1,263,576 $147,446 Grants State $127,903 $45,532 Federal $162,976 Utility Tax $313,222 $61,697 Other Depmental Income $913,192 Other Income $631,768 $80,000 StateAid Per Capita $1,905,116 $204,887 Gifts $1,223,010 $37,892 Licenses $988,087 $13,640 Insurance Recoveries $16,397 Sale of Property/Equipment $30,903 $30,949 $133,832 RentalProperty $146,057 Interest $138,570 $220,732 $37,116 Draft 18 For Internal Use Only Proceeds from Bonds $500,000 $3,850,000 $12,911,795 $47,129,240 $3,130,527 Other Information Total Assessment Taxable K$937,082 K$1,023,622 K$326,204 Exempt K$827781 K$2,231,803 K$ 32,722 Real Estate Tax Receipts $4,930,493 $13,511,810 $1,697,062 General Fund $1,293,091 Water $485,477 Sewer $466,717 Fire Protection $2,518,389 Other $166,819 Tax Rate/$1000 General Fund 1.38 Total 5.26 13.20 Number of Households 6,440 10,268 1,500 Number of Residents (2000 Census) 18,198 28,875 3,273 Debt $5,630,000 $61,290,008 $2,409,000 Debt/Million dollars of assessed value $6,009 $59,912 $7,390 1831 Appendix 5 1832 1833 Resolutions of the Town of Ithaca Board and City of Ithaca Council 1834 1835 Establishing the Joint City/Town Study Group 1836 1837 on Shared Services and Consolidation 1838 1839 Draft 18 For Internal Use Only May 3, 2006 – Regular Common Council Meeting – 1840 1841 GOVERNANCE & INTERMUNICIPAL RELATIONS COMMITTEE: 1842 A Resolution to set up a joint study group to investigate possible shared services and 1843 possible consolidation between the City of Ithaca and the Town of Ithaca. 1844 By Alderperson Berry: Seconded by Alderperson Tomlan 1845 WHEREAS, over the last several decades there has been much local and national 1846 discussion over the advantages and disadvantages of shared services or consolidation of 1847 governments, and 1848 1849 WHEREAS, several successful partnerships have emerged in local municipalities during 1850 that time, such as the Ithaca Area Waste Water Treatment Plant, youth and recreation 1851 services, joint city/town fire services, and the Bolton Point Water System, and 1852 1853 WHEREAS, the benefits of cost sharing/ consolidation have been enumerated by the 1854 New York State comptroller as reported in the booklets Local Government Management 1855 Guide: Intermunicipal Cooperation and Intermunicipal Cooperation and Consolidation: 1856 Exploring Opportunities for Savings and Improved Service Delivery, and 1857 1858 WHEREAS, recent state reports illustrate the difficulties that New York State 1859 municipalities have been facing especially in the last 5 years including rising pension 1860 costs and health insurance, and 1861 1862 WHEREAS, the Mayor of the City of Ithaca and the Supervisor of the Town of Ithaca 1863 have recently held meetings including an intermunicipal forum facilitated by Interface of 1864 the Community Dispute Resolution Center, and 1865 1866 WHEREAS, the City of Ithaca Common Council and the Town of Ithaca Board are 1867 desirous of further examination of the mutual benefits between the two municipalities 1868 that could improve services, create efficiencies, and benefit citizens, now therefore be it 1869 1870 RESOLVED, That a study group on intermunicipal cooperation and consolidation be 1871 created forthwith to examine, among others, the legal and regulatory aspects of shared 1872 services and possible consolidation, the pros and cons for both shared services and 1873 consolidation, the financial opportunities and liabilities of consolidation or shared 1874 services, an analysis of the property and sales tax scenario for a single jurisdiction, the 1875 concept of a new jurisdiction, a unified comprehensive plan, and be it further 1876 1877 RESOLVED, That an analysis of the strengths, weaknesses, opportunities, and threats be 1878 provided for each topic area, and be it further 1879 1880 RESOLVED, That the study group be composed of 8 members, mutually agreed upon 1881 by the town of Ithaca Board and the City of Ithaca Common Council, with 1882 representatives having knowledge of finance, law, planning, public works, police, or 1883 organizational culture, plus one elected official liaison from each jurisdiction (making 10 1884 members), such study group and its chair to be nominated by a town/city joint 1885 nomination committee comprised of the mayor, supervisor, one Common Council 1886 member and one town board member, and be it further 1887 1888 Draft 18 For Internal Use Only RESOLVED, That the city council and the town board identify and work toward 1889 obtaining financial assistance such as grants from appropriate agencies including the 1890 State comptroller's office, and be it further 1891 1892 RESOLVED, That each municipality agree to provide staff assistance to the study group, 1893 including participation from each municipality’s historian, and be it further 1894 1895 RESOLVED, That the study group report at least quarterly or as needed to the Common 1896 Council and Town Board at a joint meeting for periodic updates and consideration of 1897 possible amendments or additional directives, with ample opportunity for public input, 1898 and be it further 1899 1900 RESOLVED, That a final report will be presented to the Common Council and the Town 1901 Board for their deliberation on future policy, based on the above topics, in approximately 1902 12 months from the study group’s first meeting. 1903 1904 Mayor Peterson stated that this Resolution was co-written with members of the Town of 1905 Ithaca Governing body. 1906 1907 A vote on the Resolution resulted as follows: 1908 Carried Unanimously 1909 1910 Draft 18 For Internal Use Only October 4, 2006 Regular Common Council Meeting 1911 1912 INDIVIDUAL MEMBER – FILED RESOLUTIONS: 1913 Resolution to Approve A Joint Study Group to Investigate Possible Shared 1914 Services and Possible Consolidation between the City of Ithaca and the Town of 1915 Ithaca 1916 By Alderperson Tomlan: Seconded by Alderperson Cogan 1917 WHEREAS, the City of Ithaca Common Council and the Town of Ithaca Board, desiring 1918 to examine the mutual benefits that could be achieved through possible shared services 1919 and possible consolidation measures, have agreed by votes at their respective meetings of 1920 May 3, 2006, and May 8, 2006, to pursue such investigation through the establishment of 1921 a joint study group, and 1922 WHEREAS, the Common Council voted unanimously to create such a study group to 1923 investigate, among others, the legal and regulatory aspects of shared services and possible 1924 consolidation, the pros and cons of both shared services and consolidation, the financial 1925 opportunities and liabilities of consolidation or shared services, an analysis of the 1926 property and sales tax scenario for a single jurisdiction, the concept of a new jurisdiction, 1927 and a unified comprehensive plan, and to provide an analysis of the strengths, 1928 weaknesses, opportunities, and threats for each topic area, and 1929 1930 WHEREAS, the Common Council voted that the study group would be composed of 1931 eight “at-large” members, mutually agreed upon by the City of Ithaca Common Council 1932 and the Town of Ithaca Board, with these representatives having knowledge of finance, 1933 law, planning, public works, police, or organizational culture, plus one elected official 1934 liaison from each jurisdiction, making a total of ten members, and 1935 1936 WHEREAS, the Common Council directed that such study group and its chair be 1937 nominated by a joint City-Town nomination committee consisting of the Mayor, the 1938 Supervisor, one Common Council member, and one Town Board member, and 1939 1940 WHEREAS, the nomination committee, consisting of Mayor Carolyn K. Peterson, 1941 Supervisor Cathy Valentino, Alderperson Mary Tomlan, and Councilor Peter Stein, has 1942 met three times, beginning June 26, 2006, and 1943 1944 WHEREAS, the nominating committee has agreed to put forward the names of eight “at-1945 large” study group members, all of whom have agreed to serve, being Lois E. Chaplin, 1946 Paul R. Eberts, Nathan Fawcett, Randy Haus, Tom Niederkorn, Wendy Skinner, Stuart 1947 W. Stein, and Constance V. Thompson, with Wendy Skinner nominated and agreed to 1948 serve as chair, and 1949 1950 WHEREAS, Mayor Peterson has nominated Mary Tomlan to serve as the elected official 1951 liaison from the Common Council; and 1952 1953 WHEREAS, each municipality has agreed to provide staff assistance to the study group, 1954 including participation from each municipality’s historian; now, therefore, be it 1955 1956 RESOLVED, That the Common Council of the City of Ithaca concurs in the naming of 1957 the above-cited individuals to the joint City-Town study group. 1958 1959 Draft 18 For Internal Use Only Nominees to City of Ithaca-Town of Ithaca joint study group 1960 Lois E. Chaplin, Extension Associate, Department of Biological and 1961 Environmental Engineering, Cornell University; Bicycle and Pedestrian Specialist, 1962 Cornell Local Roads Program 1963 Paul R. Eberts, Professor, Department of Development Sociology, and Director of 1964 Graduate Studies for the Field of Community and Rural Development, Cornell University 1965 Nathan Fawcett, Special Assistant to the Provost for State-Related Issues, Cornell 1966 University; Tompkins Public Library Treasurer and Trustee; formerly served with New 1967 York State Division of Budget 1968 Randy Haus, Trumansburg Police Department; former Deputy Police Chief, City 1969 of Ithaca; former Tompkins County Undersheriff 1970 Tom Niederkorn, Principal, Planning & Environmental Research Consultants; 1971 former City of Ithaca Planning Director 1972 Wendy Skinner, Marketing and Communications Manager, Tompkins 1973 Consolidated Area Transit; active in Sustainable Tompkins; former Tompkins County 1974 Public Information Officer 1975 Stuart W. Stein, former Member and Chair, Tompkins County Board of 1976 Representatives; Professor Emeritus, Department of City and Regional Planning, Cornell 1977 University 1978 Constance V. Thompson, Manager, Recruitment and Diversity Recruitment, 1979 Recruitment and Employment Center, Cornell University; Steering Committee Member, 1980 Alliance for Community Empowerment (ACE) 1981 1982 A vote on the Resolution resulted as follows: 1983 Carried Unanimously (7-0) 1984 1985 Draft 18 For Internal Use Only March 7, 2007 Regular Common Council Meeting 1986 1987 Approval of Substitute Members to the Joint Study Group formed to Investigate 1988 possible Shared Services and possible Consolidation between the City of Ithaca and 1989 the Town of Ithaca - Resolution 1990 By Alderperson Coles: Seconded by Alderperson Tomlan 1991 WHEREAS, the City of Ithaca Common Council and the Town of Ithaca Board, desiring 1992 to examine the mutual benefits that could be achieved through possible shared services 1993 and possible consolidation measures, agreed by votes at their respective meetings of May 1994 3, 2006, and May 8, 2006, to pursue such investigation through the establishment of a 1995 joint study group, and 1996 1997 WHEREAS, the Common Council voted unanimously to create such a study group to 1998 investigate, among others, the legal and regulatory aspects of shared services and possible 1999 consolidation, the pros and cons of both shared services and consolidation, the financial 2000 opportunities and liabilities of consolidation or shared services, an analysis of the 2001 property and sales tax scenario for a single jurisdiction, the concept of a new jurisdiction, 2002 and a unified comprehensive plan, and to provide an analysis of the strengths, 2003 weaknesses, opportunities, and threats for each topic area, and 2004 2005 WHEREAS, the Common Council voted that the study group would be composed of 2006 eight “at-large” members, mutually agreed upon by the City of Ithaca Common Council 2007 and the Town of Ithaca Board, with these representatives having knowledge of finance, 2008 law, planning, public works, police, or organizational culture, plus one elected official 2009 liaison from each jurisdiction, making a total of ten members, and 2010 2011 WHEREAS, the Common Council directed that such study group and its chair be 2012 nominated by a joint City-Town nomination committee consisting of the Mayor, the 2013 Supervisor, one Common Council member, and one Town Board member, and 2014 2015 WHEREAS, the nomination committee, consisting of Mayor Carolyn K. Peterson, 2016 Supervisor Cathy Valentino, Alderperson Mary Tomlan, and Councilor Peter Stein, put 2017 forward the names of eight “at-large” study group members, and 2018 2019 WHEREAS, the Common Council and the Town Board voted at their respective 2020 meetings of October 4, 2006, and October 14, 2006, to name those eight persons as study 2021 group members, being Lois E. Chaplin, Paul R. Eberts, Nathan Fawcett, Randy Haus, 2022 Tom Niederkorn, Wendy Skinner, Stuart W. Stein, and Constance V. Thompson, and 2023 2024 WHEREAS, two of those members, Randy Haus and Wendy Skinner, have since found 2025 that they are unable to serve, and 2026 2027 WHEREAS, the nominating committee has agreed to put forward the names of Ellen 2028 McCollister and Diane Bruns as study group members; now, therefore, be it 2029 2030 RESOLVED, That the Common Council of the City of Ithaca concurs in the naming of 2031 Ellen McCollister and Diane Bruns to the City-Town joint study group. 2032 2033 A vote on the Resolution resulted as follows: 2034 Draft 18 For Internal Use Only 2035 Ayes (8) Coles, Seger, Berry, Clairborne, Tomlan, Gelinas, Townsend, Cogan 2036 Nays (0) 2037 Carried (8-0) 2038 Alderperson Zumoff absent from 2039 vote 2040 2041 2042 Draft 18 For Internal Use Only BUDGET MEETING OF THE ITHACA TOWN BOARD 2043 THURSDAY, OCTOBER 5, 2006 2044 2045 2046 TB RESOLUTION NO. 2006-199: Approving a Joint Study Group to Investigate 2047 Possible Shared Services and Possible Consolidation between the City of Ithaca and 2048 the Town of Ithaca 2049 2050 WHEREAS, the City of Ithaca Common Council and the Town of Ithaca 2051 Town Board, desiring to examine the mutual benefits that could be achieved 2052 through possible shared services and possible consolidation measures, have 2053 agreed by votes at their respective meetings of May 3, 2006 and May 8, 2006, to 2054 pursue such investigation through the establishment of a joint study group, and 2055 2056 WHEREAS, the Town Board of the Town of Ithaca voted in favor of 2057 creating a study group to examine, among others, 2058 • the legal and regulatory aspects of shared services and possible 2059 consolidation 2060 • the pros and cons for both shared services and possible consolidation 2061 • the financial opportunities and liabilities of consolidation or shared 2062 services 2063 • an analysis of the property and sales tax scenarios for a single jurisdiction 2064 • the concept of a new jurisdiction 2065 • a unified comprehensive plan 2066 2067 WHEREAS, the Town Board voted that the study group would be 2068 composed of eight members, mutually agreed upon by the City of Ithaca 2069 Common Council and the Ithaca Town Board, with representatives having 2070 knowledge of finance, law, planning, public works, police, or organizational 2071 culture, including one elected official liaison from each jurisdiction, making ten 2072 members, and 2073 2074 WHEREAS, the Town Board directed that such a study group and its chair be 2075 nominated by a joint City-Town nomination committee consisting of the Mayor, the 2076 Supervisor, one Common Council member, and one Town Board member, and 2077 2078 WHEREAS, the nominating committee, consisting of Mayor Peterson, Supervisor 2079 Valentino, Alderperson Tomlan, and Councilman Stein, has met three times, beginning 2080 June 26, 2006, and 2081 2082 WHEREAS, the nominating committee has agreed to put forward the names of 2083 eight study groups members, all of whom have agreed to serve, being Lois E. Chaplin, 2084 Paul R. Eberts, Nathan Fawcett, Randy Haus, Tom Niederkorn, Wendy Skinner, Stuart 2085 W. Stein, and Constance V. Thompson, with Wendy Skinner nominated and agreed to 2086 serve as chair, and 2087 2088 WHEREAS, the Town Board of the Town of Ithaca has nominated Peter Stein to 2089 serve as the elected liaison from the Town Board; now, therefore, be it 2090 Draft 18 For Internal Use Only 2091 RESOLVED, that the Town Board of the Town of Ithaca concurs in the naming 2092 of the above-cited individuals to the joint City-Town study group. 2093 2094 2095 MOVED: Supervisor Valentino 2096 2097 SECONDED: Councilman Stein 2098 2099 VOTE: Supervisor Valentino, aye; Councilman Burbank, aye; Councilwoman Gittelman, 2100 aye; Councilman Engman, aye; Councilman Stein, aye; Councilwoman Leary, aye. 2101 Motion carried. 2102 2103