[PAGE 1] COMMON COUNCIL BUDGET MEETING AGENDA September 24th 2025 - November 12th 2025 Date: Wednesday September 24, 2025 Time: 6:00 PM Location: City Hall Council Chambers Watch Online: https://www.youtube.com/@CityofIthacaPublicMeetings 1. Call To Order 2. Agenda Review 3. Department Review This Document will serve as the agenda for all following Special Budget Meetings. Wednesday, September 24th, 2025 Fee Study Presentation Capital Projects Presentation Community Responder Program Development Monday, October 6th, 2025 City Manager presents 2026 Proposed Budget Tuesday, October 7th, 2025 Department Budget Reviews: Youth Bureau Fire Department Wednesday, October 8th, 2025 Public Hearing #1- *Note: this date is also a voting meeting of Council Department Budget Reviews: Police Department City Attorney Planning and Economic Development Tuesday, October 14th, 2025 Department Budget Reviews: DPW Controller Human Resources City Manager Wednesday, October 15th, 2025 Public Hearing #2 Department Budget Reviews: Public Information & Technology GIAC Capital Projects – final review Funding Outside Agencies Conference Center/Room Tax Tuesday, October 21st, 2025 Council Discussion on 2026 Budget; Proposed Amendments 1 [PAGE 2] Wednesday, October 22nd, 2025 Council Discussion on 2026 Budget; Proposed Amendments Wednesday, November 5th, 2025 Public Hearing #3 2026 Budget Vote by Common Council Wednesday, November 12th, 2025 Extra Budget Meeting, if necessary 4. Meeting Wrap Up Public Hearing Comments MUST be limited to the subject of the Public Hearing. There will be NO Privilege of the floor, and Council will NOT be responding to the public's comments during the Public Hearing. Members of the public can provide short statements germane to the subject of the public hearing during this portion of the meeting. 3 minutes is the maximum time allotted per speaker, but the chair reserves the right to modify the amount of time per individual at the start of the meeting. Groups of 3 or More Speakers are allotted more speaking time For Longer Speaking Time – Multiple Speakers can speak as a group with one Designated Speaker to represent the Group. This will give you more time to share your thoughts and concerns during the public hearing. 3-4 Persons with One Designated Speaker – Designated Speaker allotted 5 Minutes 5+ Persons with One Designated Speaker – Designated Speaker allotted 7 Minutes Can't Come To The Meeting But Still Want To Speak? Register To Speak Virtually-https://tinyurl.com/7ts9zmku Attending The Meeting To Speak In Person? Pre-Registration Not Required Comment Cards are provided to those who attend in person. Once you have filled out your Comment Card, please hand your card to the Clerk. Your name will be called to speak in the order the cards are received. Please Note Comment Cards will be accepted up until the meeting at which the public hearing begins. Want To Submit A Comment and Not Speak In Person? To Submit Written Comments - https://tinyurl.com/mr9kdhw8 *Written comments submitted will be compiled and entered into the record. 2 [PAGE 3] No Public Comment Not all meetings have a Public Comment segment. The City of Ithaca wants to hear from you! You are encouraged to share your thoughts with Common Council using the options below: To Submit Written Comments please use the link below. https://tinyurl.com/mr9kdhw8 2026 Budget Schedule of Budget Meetings 3 [PAGE 4] CITY OF ITHACA 108 East Green Street, Ithaca, New York 14850-6590 City Manager's Office Shaniqua Lewis, Deputy City Clerk MEMORANDUM TO: Common Council FROM: Deb Mohlenhoff DATE: September 24, 2025 RE: 2026 Budget Schedule of Budget Meetings ITEM #: ATTACHMENTS: 2026_Budget _Meetings_Schedule (2).pdf CGR - City of Ithaca Municipal Fee Study -FINAL VERSION - v.1.0.pdf Sept Memo - Capital Projects.pdf 2026 Capital Projects DRAFT Recommendations.pdf Community Responder Development Memo with DRAFT resolution.pdf 4 [PAGE 5] 2026 Budget Schedule of Budget Meetings All meetings are scheduled to begin at 6:00 pm unless otherwise noted. Wednesday, September 24th, 2025 Fee Study Presentation Capital Projects Presentation Community Responder Program Development Monday, October 6th, 2025 City Manager presents 2026 Proposed Budget Tuesday, October 7th, 2025 Department Budget Reviews: Youth Bureau Fire Department Wednesday, October 8th, 2025 Public Hearing #1 Department Budget Reviews: Police Department City Attorney Planning and Economic Development Tuesday, October 14th, 2025 Department Budget Reviews: DPW Controller Human Resources City Manager Wednesday, October 15th, 2025 Public Hearing #2 Department Budget Reviews: Public Information & Technology GIAC Capital Projects – final review Funding Outside Agencies Conference Center/Room Tax Tuesday, October 21st, 2025 Council Discussion on 2026 Budget; Proposed Amendments Wednesday, October 22nd, 2025 Council Discussion on 2026 Budget; Proposed Amendments Wednesday, November 5th, 2025 Public Hearing #3 2026 Budget Vote by Common Council Wednesday, November 12th, 2025 Extra Budget Meeting, if necessary City of Ithaca 108 E. Green Street | Ithaca, NY 14850 | cityofithaca.org | citymanager@cityofithaca.org | 607.274.6512 5 [PAGE 6] City of Ithaca Municipal Fee Study Final Version 1.0 September, 2025 Prepared for City of Ithaca Prepared by Kieran Bezila, Ph.D. Project Manager Paul Bishop Project Director © CGR Inc. 2025 – All Rights Reserved 1 South Washington Street, Suite 400, Rochester, New York 14614 www.cgr.org (585) 325-6360 • info@cgr.org 6 [PAGE 7] i Executive Summary Overview CGR was engaged to review the City of Ithaca’s municipal fee structure and determine how it might be improved by streamlining the fee-setting process, developing a better understanding of revenue-drivers, and examining the possibility of increased cost-recovery. The project focused on three main deliverables: 1) Compiled spreadsheets of all of the City’s fees. 2) A standardized methodology for calculating administrative costs. 3) A report containing an overview of the City’s fees and recommendations for process improvement. CGR identified more than 500 different fees across Ithaca’s departments and divisions. This high number is not a problem in itself, as more fees enable to possibility of more revenue and cost recovery, but some fees may be candidates for elimination. However, it is higher than some similar municipalities. CGR prepared spreadsheets listing the fees associated with 11 different departments or divisions. These spreadsheets also feature a built-in methodology for calculating associated administrative and servicing costs that can be used to update fees. CGR conducted interviews with representatives of each department/division. We have provided an overview of key matters and suggestions from the staff on specific fee changes per department/division. As well, CGR broadly examined the implications of a possible change in water/sewer rate methodology. The report also contains: Recommendations for incorporating and organizing fee presentation in the annual budget. A process for determining which fees should be subsidized. A process for identifying unnecessary fees. A series of follow-up steps for departments and divisions, the City Manager and the Common Council to each undertake in order to rationalize Ithaca’s fee structures. Main Findings Our study came to the following conclusions: Full cost-recovery is unlikely on many fees. www.cgr.org 7 [PAGE 8] ii Subsidies will remain necessary on many fees to achieve assorted City/community goals. Fee information should be standardized and organized across departments and the budget process to increase transparency of revenue sources and ease the process of regular updating. Further internal review will be needed to determine if parts of the fee structure should be simplified. The City Manager, City departments/divisions, and the Common Council each have tasks to undertake that can improve Ithaca’s fee structure but will require time and attention across the board. All parties must decide how much time they wish to devote to digging into the weeds of tweaking individual fees or whether a strategy of targeted adjustments to a smaller number of higher revenue fees represents a more efficient approach. Currently, additional information and review of the respective fee spreadsheets will be required from departments before the City has the necessary information to make an informed choice on the strategy it wishes to pursue. www.cgr.org 8 [PAGE 9] iii Acknowledgements CGR wishes to thank City staff for their support during this work, including all who participated in interviews, and especially City Manager Deb Mohlenhoff, Executive Assistant Chris Ibert, and City Clerk Alan Karasin, who fielded and coordinated multiple information requests. Staff Team Senior Associate Kieran Bezila prepared the report, with interview and research support from Research Associate Deon Willis. Principal Paul Bishop directed the project. www.cgr.org 9 [PAGE 10] iv Table of Contents Executive Summary ........................................................................................................................... i Overview .................................................................................................................................... i Main Findings ............................................................................................................................ i Table of Contents ............................................................................................................................ iv Introduction ...................................................................................................................................... 1 Principles in Fee-Setting .......................................................................................................... 1 Project Process ........................................................................................................................ 2 Overview of Ithaca’s Fees ............................................................................................................... 3 Organization and Process ....................................................................................................... 3 Considerations in Subsidizing Fees .............................................................................................. 4 Defining a Policy for Subsidies ................................................................................................ 5 Fee Template Spreadsheets .......................................................................................................... 7 Fee Detail Information ............................................................................................................. 7 Cost Calculation ....................................................................................................................... 8 Transaction Data ............................................................................................................................. 9 2024 OpenGov Transaction Summary ................................................................................... 9 Recommendations ........................................................................................................................ 10 Findings .................................................................................................................................. 10 Process Recommendations .................................................................................................. 12 Next Steps .............................................................................................................................. 13 Supporting Information ................................................................................................................. 15 Information from Departments/Divisions ............................................................................ 15 Peer Comparisons .................................................................................................................. 29 www.cgr.org 10 [PAGE 11] 1 Introduction CGR was engaged by the City of Ithaca to help review and rationalize its system of municipal fees. The City had several goals with this study: Exploring the feasibility of service cost recovery – making sure service fees cover the cost of service, where this makes sense. Ensuring that fees & rates are fair and reasonable – making sure that direct users pay their fair share, but also that rates are affordable and set at a level to incentivize engagement and participation in services and activities beneficial to the City, its residents and visitors. Creating a process to more easily adjust fees – gathering and standardizing fee rate information to increase transparency and allow for regular adjustment of fees by the City Manager and Common Council based on information and recommendations from City departments and service providers. The project focuses on three central deliverables from CGR: Producing compiled, editable spreadsheet templates of all of the City’s fees. Creating a standardized methodology for calculating administrative costs and setting and adjusting fees over time. Authoring a report reviewing and summarizing all aspects of the project. Aspects that CGR was asked to consider in the report include devising a policy for when fees may be eligible for subsidy and whether an alternative rate system for water/sewer metering would be advantageous. Principles in Fee-Setting In an ideal world, a municipality might set fees however it pleased. But in the real world, municipal fees are subject to a variety of pressures. These pressures include: • Trying to recover costs. • Keeping fees reasonable for customers across a variety of income levels. • Working within the political constraints of public pressure to keep fees low and in-line with surround regional practices. • Legal and regulatory concerns. Good-government principles and legal precedent state that fees should be reasonable, proportionate, and should be intended to defray or cover actual direct and indirect costs, rather than meant to raise extra revenue above costs. www.cgr.org 11 [PAGE 12] 2 In the legal arena, fees considered excessive have been grounds for legal challenges against municipalities. In 1999, the NYS Office of the State Comptroller issued an advisory opinion on the matter of municipal permit fees which expressed the following notable positions: 1) “It is a fundamental principle that a permit fee must bear a direct relation to the costs of issuing the permit and inspecting or enforcing the permitted activity”; 2) Although: “‘Exact congruence’ between the total expenses and total permit charges is not required”; 3) But: “The fees, however, must be reasonably necessary to cover the cost of issuance, inspections and enforcement and may not be charged to offset the cost of general governmental function”. 4) Furthermore: “…to the extent that fees charged are exacted for general revenue purposes or to offset the cost of general government functions they are invalid as an unauthorized tax.”1 While this opinion was specifically rendered in regard to building permit fees under NYS Town Law, the above principles can be applied to municipal fees, broadly. Setting fee levels appropriately involves balancing all of the above considerations, making it as much an art as a science. In addition to this, it is important that municipalities avoid two common pitfalls: 1) Setting arbitrary amounts without some sort of logical basis, and 2) Failing to periodically adjust/update fees. This project is meant to address both of these issues by introducing a rational method for calculating fee amounts and creating a standardized structure allowing for regular, easier fee updating. Project Process CGR initially undertook a process to chart all of the City’s various fees and calculate, as closely as possible, the administrative and service cost of each fee, in order to determine the level of cost recovery associated with each fee. As we reviewed Ithaca’s fees, the goal of calculating full costs for every fee was scaled back: after piloting the spreadsheet with the Clerk’s Office, we determined that the process was workable, but gathering the required information would impose a significant burden on participating departments that had a large number of fees or high complexity. The template system is designed to be editable and a self-directed process that the City can run on its own going forward without CGR’s assistance. For this reason, CGR and the City 1 Office of the New York State Comptroller, Opinion 99-13: https://www.osc.ny.gov/legal-opinions/opinion-99-13. www.cgr.org 12 [PAGE 13] 3 Manager decided that the City would take possession of the spreadsheet templates for all departments and manage filling them out at the City’s own pace and convenience. Overview of Ithaca’s Fees As CGR gathered and standardized fee information, we # of fees Department/Division determined that Ithaca has over 500 existing fees identified spread across 11 different departments or divisions, as Chamberlain 9 shown in the adjacent table. It is likely that this list is Clerk 66 not fully exhaustive, as departments identified some DPW - Streets & Facilities 40 fees that had not been included in the initial lists CGR GIAC 21 received. The departments/divisions will need to review Fire Department 39 and edit their respective spreadsheet templates to Parking - all except Cayuga 59 ensure accuracy. Parking - Cayuga Garage 4 Most of these fees are for separate items or categories Planning & Development 83 of service, but in some cases, such as with the Youth Police Department 24 Bureau, the high number of fees reflects gradations Water & Sewer 25 within one overall category of fees. For example, there Youth Bureau 134 are different fee levels to use the Cass Park Ice Rink for TOTAL 504 children, students, adults, and seniors. Organization and Process CGR interviewed staff with fee management responsibility in each different division/department listed in the table above, revealing a variety of fee-setting practices which were functional for those departments/divisions, but lacked consistency, transparency and central organization across departments for the City as a whole. There is currently no common, consistent and transparent process across departments for reviewing and updating fees. Frequency of updates In some cases, fees are being updated regularly in an effort to adjust to increasing costs and evolving service demands. In other cases, staff interviewees believe that some fees – such as garage parking rates – have not been adjusted in many years and data is lacking about past practice for reviewing fees and fines. In report sections below covering each department/division, we note the information we received on when fees were most recently updated in that unit. Authority for updates Departments/divisions also have different ideas of who has the responsibility for setting fees. Some departments state that they set amounts themselves, based on the judgment of www.cgr.org 13 [PAGE 14] 4 department heads. Other departments state that the power to set their fees belongs to the Common Council and must follow a formal approval process. In some cases, traditional systems and practices for setting fees have broken down and been replaced at the department level. One example: the Board of Public Works traditionally had responsibility for setting a variety of fees across a number of departments, such as the mobile vending fees that that Clerk’s Office collects; however, the Board stopped meeting during the COVID-19 pandemic and never resumed, and responsibility for setting the fees devolved to the Superintendent of Public Works, who has been making adjustments based on his discretion. A large number of fees are specified in the City’s Charter, which makes identifying and altering them a complex and onerous process. This can cause a lack of clarity about who is overseeing the fees and can lead to regular updates being neglected due to diffusion of responsibility – everybody thinks someone else has the authority to make the changes and is keeping track of what they should be. CGR recommends that the City thoroughly review the City’s Code to identify fee-authorizing sections and adjust them to allow for any fee referenced in the Code to be set administratively in the budget process. Process for updates The process for setting fee amounts also varies widely: some departments/divisions try to conduct regular or periodic comparison with what peer organizations, such as neighboring municipalities, are charging for similar fees. Others base fees on an estimate of their costs. Others make adjustments on an ad hoc basis, based on their intuition of what seems an appropriate amount. Finally, many departments/divisions make an effort to try to maintain affordability in fees for a variety of segments – such as recreational services for children and families, or individual home improvement construction permits. Management of fees Most of Ithaca’s fee transactions are handled through the OpenGov software platform, but it is not flexible enough for all uses, including the complexity of recreation program fees, which leads the Youth Bureau to use the CommunityPass software system and GIAC to use the Xplor Recreation software package. While individual departments are using the platforms they believe are best suited to their needs, this fragmentation weakens the City’s oversight of all fee revenues and makes it more difficult to centrally track transaction counts and adjustments. Considerations in Subsidizing Fees In most municipalities, a large number of fees are at least partially subsidized by the local government and therefore by the general taxpaying public. This can be an unintentional result of neglecting to regularly update fees to keep up with inflating service and administrative www.cgr.org 14 [PAGE 15] 5 costs. But it can also be an intentional philosophy of local government to keep some fees lower or “reasonable” in order to attract and encourage public participation in the services being charged for. Defining a Policy for Subsidies Most general philosophies for fee subsidies make a distinction between services that largely have a “public” or general community benefit and services that primarily have a private benefit. In practice, this distinction is subject to local discretion and may boil down to identifying which practices the municipality wishes to encourage and believes are price- sensitive to participants. We believe this constitutes a good two-part test of fee subsidies: 1) Is the practice or service something the City wishes to encourage, because it delivers a public/community benefit? 2) Does the City believe that residents/participants may be price-sensitive: deterred from paying the fee (and participating in the service) if it is set too high? If a fee meets both of these tests, it is a candidate for a subsidy. Setting the appropriate subsidy level is a puzzle with no simple right answer. In practice, the exact level of subsidy will depend on the Council or leadership of the servicing City department making an educated guess at what a “reasonable” level for the fee is. Some of this can come from peer benchmarking, some of it can come from the experience of the departments providing the service, and some of it must come from “common sense” – if a fee seems unreasonably high to the average person, that should trigger reconsideration of its level. Example: Dog Licenses Dog licenses are one example of a service/practice that CGR would label a public good. First, Ithaca wishes to encourage dog owners to properly register and vaccinate their dogs – both for public health reasons and to track and manage loose dogs. Second, raising the fees substantially – to the actual cost of all involved services – may dissuade dog owners from licensing their animals. The City of Ithaca pays the SPCA approximately $60,400 annually for animal control. While this potentially includes controlling some number of animals beyond dogs – rescuing a cat or handling a raccoon in a house – the dog license is the only direct fee associated with this service. www.cgr.org 15 [PAGE 16] 6 Currently, Ithaca charges $15 for a spayed/neutered dog and $25 for a non-spayed/non- neutered dog, and when obligatory NYS surcharges of $1 and $3, respectively, are remitted, Ithaca nets $14 per fixed dog and $22 per unfixed dog. According to Clerk’s Office records, in 2024, 348 dog licenses were issued, for a net revenue of approximately $5,300 – covering just under 9% of the SPCA costs. Even doubling the fee amount would therefore cover below a fifth of the full cost. If Ithaca were to charge the full SPCA cost to these same 348 dog owners, the cost would come to approximately $173.50 per dog license – an unsustainable amount. National estimates are that at least 4 in 10 households own one or more dogs. Given that Ithaca has approximately 13,800 households, this should translate into at least 5,520 dog licenses, annually. If Ithaca were able to get 55% of these households to register their dogs, this would cover the full SPCA amount. In this specific case, CGR would suggest the following: modestly raise the dog license fees – by perhaps $5-10 for each category – but embark on a public educational campaign to encourage more households to license their dogs. This would likely be the most practical way to reasonably cover the full costs. But because, realistically, such a campaign to boost licensing participation is likely to only be partially successful, this is an example of a fee that Ithaca should accept subsidizing, for the public benefit it provides. CGR’s Subsidy Ratings As noted above, CGR has included subsidy ratings and recommendations for every listed fee in the spreadsheet templates. This comprises two ratings and a recommendation: 1. We rate whether we assess the service being charged for as mostly providing public benefit, or private benefit, or a mix of the two. 2. We rate whether we believe the fee is price-sensitive to the general public – this means, if the fee were to be raised substantially, would average people find it burdensome or be deterred from paying? 3. We recommend whether the City should subsidize or not subsidize the fee. In cases where we find this ambiguous, we have opted for a “use discretion” recommendation. Subsidy-Rating Examples www.cgr.org 16 [PAGE 17] 7 Parking permits A good example is Annual Residential Parking Permits and Residential Parking Visitor Passes. We judge that these provide a private benefit to those who purchase them, but we also believe this is a price-sensitive matter to the public: the general public might be unhappy if these fees were substantially raised and reduce participation; in an extreme case, raising the Visitor Pass price could potentially reduce visitors and tourism dollars. Therefore, we recommend that the City use discretion in deciding whether to raise these fees to recover full cost. Recreation opportunities As another example, we generally rate recreation opportunities as providing a public benefit, even if the enjoyment accrues privately. But, in some cases, we provide mixed ratings. For example, we endorse subsidies on most GIAC program fees, but no subsidies on private-party room rentals of GIAC facilities, for instance. Likewise, for some spaces, like the golf course, we are mixed in our recommendation, endorsing the existing discounts (an effective subsidy) which are available for young people and seniors but not for regular adult players. Code enforcement, zoning and plan review fees. For fees related to code enforcement, building, zoning and planning, generally, we suggest the following philosophy: there is a public good/community benefit to be gained in ensuring that residential households and private individuals allow code enforcement inspections. They are more likely to do this when the process is not onerous and the fees appear reasonable. For this reason, we draw a distinction between what is in the individual interest of a small household or property owner, and what is a larger-scale, commercial development. We believe the former category (small residential/small property owner) is deserving of some subsidies at the level that will keep fees reasonable and keep them complying with the code enforcement and inspection process. For the latter (larger-scale commercial) there is still a public interest in making sure they comply with the code enforcement process, for safety and livability reasons, but we believe they are able to bear the full cost of services and should not be subsidized. Fee Template Spreadsheets To aid in calculation of the costs associated with each fee, CGR constructed a series of individual spreadsheet templates for each listed department/division. These templates include two major parts: fee detail information and a methodology for calculating costs. Fee Detail Information Fee detail information is comprised of a listing of all fees, with details on their categorization and type, current cost, and the fee unit of charge (per service, per hour, per dog, etc.). CGR www.cgr.org 17 [PAGE 18] 8 filled these details in to the greatest extent possible, but some information – for instance, on units of charge – was not initially available in the information we gathered and individual departments will need to review, correct, and add any missing information, as needed. Adjacent to the basic fee information is CGR’s recommendation on whether each fee should be considered a candidate for subsidies or not. These recommendations, and a general policy on subsidies, are explained in a following section below. Example of Clerk’s Office Fee Spreadsheet Template Cost Calculation Each spreadsheet includes a standardized cost-calculation methodology. This involves a series of fields to input information on staff time and costs required in administering and performing the task or service for which the fee is charged. The methodology makes a distinction between the administrative time costs of processing a service – for example, processing the paperwork to register a child for a recreation program – and performing the service – for example, staffing and conducting the recreation programming. This process involves significant input from each fee-administering department and unit, as they have to provide time-cost and overhead-cost information, along with average salary and benefit costs for involved personnel. As indicated in the spreadsheet template instructions, one of the key aspects is producing realistic estimates of time costs. For instance, it is important that staff do not overestimate the time that it takes to process permits or fee paperwork, and that the total time they report spending on the individual fee tasks in a week does not add up to more than the total hours they actually work in a week. www.cgr.org 18 [PAGE 19] 9 Transaction Data The spreadsheet templates ask each department/division to produce data on the number of transactions for each fee listed. This will provide fine-grained data on where the majority of revenues are coming from, which can help the City decide which fees are important to keep and adjust and which are not consequential in budgetary terms. 2024 OpenGov Transaction Summary Until departments prepare that data, the next best source of information on transaction rates and associated revenues is OpenGov summaries. The Clerk’s Office provided the following 2024 transaction summary from OpenGov. www.cgr.org 19 [PAGE 20] 10 This summary provides much useful information, with the caveats that it does not cover every department/division and aggregates multiple fees together in broad categories that can obscure where the majority of fee transactions are actually occurring (for example, the multiple types of building permit applications with different associated fees are grouped in one overall category). IPD separately provided its own totals from 2024: Ithaca Police Department Transactions 2024 Total Transactions Total Type Fee 2024 Revenue Background checks $5.00 31 $155.00 Visa clearance $5.00 12 $60.00 Taxi license Renewal $30.00 0 $ - Taxi license New $35.00 0 $ - Solicitor's Permit (varies by type) 1 N/A Accident Report Requests $25.00 N/A N/A This data makes clear that the overwhelming bulk of fee revenue is derived from the Building Division, from standard building, electrical, and plumbing work permits. Of the other units listed, only the Streets Division raised more than $10,000 in a year, largely from street permits related to construction closures and other events. In most cases, even a theoretical doubling of all fee revenue collected by most departments/divisions would not have a substantial budgetary impact. Finally, it is important to note that the fee totals reported here from the OpenGov system do not always match fee revenue amounts being listed in Ithaca’s budget documents. The source of this discrepancy likely stems from differences between which fees are included in OpenGov’s departmental categories and how these vary from which fees are included in the account number categories used in the budget records. The City is still in the process of migrating data from the legacy Munis software system to the current OpenGov implementation and standardizing new categories. City management is aware of the discrepancies and working to correct them. Recommendations The review of the City’s fees yields a number of conclusions and recommendations. Findings www.cgr.org 20 [PAGE 21] 11 Fee Levels & Subsidies Full cost-recovery is unlikely on many fees. Relevant City staff believe most fees can be increased, but even if these are doubled or tripled – which is practical and reasonable for some fees in some cases, but not for others – many fees will not approach full cost recovery. Subsidies will remain necessary to achieve other City/community goals. It is reasonable for the City to provide some level of subsidy for services and opportunities that provide public benefits, which include use of public space by a variety of groups. Raising fees to cost recovery levels, as shown in the example of dog licenses, is unrealistic and impractical in a variety of cases. Items like construction permit fees for commercial projects can be expected to recoup costs, but other permits will likely be subsidized. Organization & Transparency Fee information should be standardized and organized to ease regular updating. Currently, fee information is scattered and unstandardized across departments and budget materials. It would benefit from standardized categories and full reporting. As an example, the amount of fees the Clerk’s Office recorded being paid for “Electrical Permit Applications” for 2023 in its OpenGov records for the year is $8,885.50. But the City’s official budget lists actual revenue of $147,186 for “Electrical permits”, and $7,968 for “Electrical inspections” for 2023. It is not clear how these categories differ from the Clerk’s category, whether parts of either of these revenue amounts overlap with Clerk’s income, or whether the Clerk’s total is included under a separate budget line that records actual revenues of $38,529 in “Clerk Fees” for 2023. Meanwhile, the total of revenue listed through the Clerk’s OpenGov records, which includes fees collected for the Building Division, comes to $89,334 for 2023, while the fees listed for that year as belonging exclusively to the Clerk’s Office itself total to only $2,365. Clearly, none of these numbers match. The most likely cause of these discrepancies is that the various budgetary accounts presented as revenue lines combine and categorize various fees in different ways than departments themselves group them, making it hard to know what is and is not included in a given budgetary account line, and thus hard to know which fees are or are not producing significant budget revenue and why some actuals fluctuate so dramatically against projections. Better organization of fee information according to the suggestions presented elsewhere in the report will ideally allow fee revenue amounts to be clearly trackable from end-to-end. Considerations in Simplifying the Fee Structure Further review is needed to determine if the fee structure should be simplified. www.cgr.org 21 [PAGE 22] 12 Ithaca may have good reasons for the variety and number of fees it has. Just because comparison municipalities may have fewer does not mean that simplicity is automatically best. More fees, where appropriate, equals more cost recovery. Decisions on the number of fees and overall complexity should be decided in consultation with the respective departments through a multi-step test: 1) Does the fee meaningfully contribute to cost recovery or serve another function, such as providing an opportunity to register and track service users or reduce unnecessary applications, etc.? 2) How many transactions of the fee occur annually and how much staff/processing time do they incur? 3) What is the level of compliance among the general public with paying the fee? 4) Would removing the fee either save a meaningful amount of time for City staff or save a meaningful amount of time and cost for the public? If the fee is infrequently collected, produces low revenue, and takes a meaningful amount of staff time to process, without producing other useful tracking or registration information, or other identifiable public benefits, it is a candidate for elimination. Fees that are candidates for elimination can be flagged by departments as the fill out the spreadsheet templates, and then discussed with the City Manager and ultimately the Common Council. Process Recommendations Currently, Ithaca’s current fee structure and process lacks consistency and some clarity of authority and responsibility in fee-setting. A basic level of centralized oversight can aid in managing regular and consistent updates, while at the same time respecting the experience and knowledge of departments/divisions which have the best sense of their own costs, program scopes, and appropriate level of affordability. CGR recommends that fees be centralized in the budget process, with the City Manager having oversight for collecting and standardizing fees, in consultation with the home departments. We recommend the following process: www.cgr.org 22 [PAGE 23] 13 1) Move fee-setting to be part of the annual budgetary process, as several peer municipalities do. a. Fees can be listed by department in an appendix to the budget. i. Follow the presentation format laid out in the Lessons from Comparison Fee Structures section found in the Supporting Information appendix below. b. This may require a charter commission or other legal work to transfer authority for fee changes from the charter to the budgetary process. 2) The City Manager should annually consult respective departments/divisions about their suggests for changes to the fees they manage. a. This would include raising or lowering rates and adding or eliminating fee categories. b. For any fees where the amount is being raised more than the cost of inflation, a clear, written rationale for the change should be provided. 3) The Common Council can review and approve amounts as part of the normal budgetary process. a. This will ensure that fees are regularly updated, reviewed for fairness and consistency, and approved by elected representatives, rather than through the opaque process of having some departments decide for themselves. Next Steps The findings and process recommendations feed into the following immediate next steps for the City: Departments/Divisions 1) Set aside time to complete the spreadsheet templates. This will require the best possible accuracy in staff time estimates, with the acknowledgement that these are estimates of weekly and yearly time expenditures, so will not be perfect. What is important is that the estimates are realistic for the fees listed. 2) Provide recommendations and input to the City Manager on how various fees should be adjusted or kept level, based on staff expertise. City Manager 1) Work with City departments to complete the spreadsheets tracking costs. These can be used to estimate general overhead costs for different kinds of permits and operations. www.cgr.org 23 [PAGE 24] 14 2) Decide on the desired level of cost recovery for various items by consulting with departments on their preferred fee levels. Common Council 1) Review compiled fee information to understand where the bulk of fee revenue is and is not coming from. 2) Review suggestions from departments and City Manager for potential changes. 3) Weigh the potential implications of fee changes: who will they help/hurt? 4) Decide whether low-volume, low-revenue fees (i.e., fees with few annual transactions and little revenue generation) serve other desirable functions – such as reserving or registering Commons Use or tracking and regulating who can do door-to-door soliciting – and whether or not some fee categories can or should be eliminated. www.cgr.org 24 [PAGE 25] 15 Supporting Information Information from Departments/Divisions CGR conducted interviews with leadership or representatives of each main department or division charging, collecting, or overseeing fees. This included 10 distinct units or operational areas within the City: the Chamberlain, the Clerk, the Greater Ithaca Activities Center (GIAC), the Fire Department, Parking operations (including garages), Planning & Development, the Police Department, Streets & Facilities and Water & Sewer (both within the Department of Public Works), and the Youth Bureau. Chamberlain The Chamberlain collects and processes fees from other sources but is not setting any fees themselves. Fees collected include late fees on taxes and parking ticket payments, but her office has not been receiving late fees for water and sewer bills. The Chamberlain is unclear how this is being handled. The Chamberlain believes that many fees have not been changed in more than two decades and most fees need to go up. Chamberlain last fee change: the majority of fees have not changed in 20+ years. Chamberlain fee recommendation: all fees need to increase. Clerk’s Office The Clerk’s Office handles a variety of permit fees. Many of the permit fees involving the use of public space have been traditionally set by the Board of Public Works, but the Board stopped meeting in the wake of the Covid pandemic and has not resumed. The Superintendent of Public Works now makes minor adjustments to the fees at his discretion. The Clerk believes this fee-setting responsibility should be transferred to the City Manager to compile annually in coordination with departments. Examples: Special Events, Commons Use & Noise Permits CGR also spoke with Scott Rougeau, Event Permit Specialist in the Clerk’s Office/PIT, who provided more detail on the permitting process. Special Events permits For example, a typical Special Events permit may have to be processed or approved by seven to eight different people in six other departments for functions such as the safety plan, insurances, liquor permits, private security, etc. Involved departments can include Streets & Facilities, Fire, Police, the city forester, the Building Division, and the Youth Bureau. www.cgr.org 25 [PAGE 26] 16 Scott estimates a standard Special Events permit may take 18-20 hours of staff time, well in cost excess of its $100 fee. The Clerk processes 60-70 special events permits in a typical year. Scott suggests a fee structure based on size and features – for instance, a stage with amplified sound could require a higher fee. But because a variety of groups secure events permits, including non-profits running community events and activist groups organizing rallies and protests, Scott believes the fees should be kept affordable. For instance, if events are priced small/medium/large based on anticipated attendance (which organizers must provide to secure a permit), a “small” event might maintain the $100 fee, while a medium event may be priced at $250 and a large event at $500. Exactly what attendance sizes would be at what level is something the City must decide. In any event, the fee levels likely cannot be raised to the point of covering all time costs without becoming prohibitively expensive. Commons Use permits The Clerk suggested that minor fees for Commons Use should either be raised or eliminated – such as the weekday small events charge for less than 2 hours, which is only $5. However, Scott noted that these nominal fees can keep things affordable for nonprofits or community groups, but more importantly act as a reservation for the space for that group and entail some work – events can still involve insurance reviews, safety plans or maps. Fees could be raised across the board on some items, such as rental of the pavilion, but still would not approach cost recovery without becoming prohibitively expensive. Noise permits As many as 250 noise permits are issued per year without any fees charged. Depending on the event, in addition to the Clerk’s Office, these can require review by the Police and Fire Departments. While some may be for minor events like a birthday party, others can be for bands playing on private property. The Common Council should consider whether there should be some kind of fee for these permits, perhaps differentiated by expected size or scope of the event. Clerk’s Office last fee change: some fees, like dog licenses & residential parking fees, have not changed in 10-15 years. Clerk’s fee recommendations: • Almost all fees that can be adjusted should be raised. • Most fees should be raised annually. • Permit fee amounts should incorporate convenience fee (credit card/e-check) processing costs. • Residential parking permits could be priced differently in College Town vs. Downtown. People would pay a premium. www.cgr.org 26 [PAGE 27] 17 • Special Events permit fee – currently $100 – is set too low for work involved. Could change to three fee levels (S/M/L) based on projected attendance/event size. • Noise permits, currently free, should have an associated fee. • Food truck space fees could all be priced at “premium” level because limited number of good spots are all premium now. • An “Expedited Processing fee” should be attached to some permits (such as noise/events) if they are submitted in less time than mandated before the date needed/required in a rush. Greater Ithaca Activities Center (GIAC) The Greater Ithaca Activities Center (known as GIAC) charges a variety of fees for their program. Per GIAC staff, they have a unique relationship with the City as they are a nonprofit organization, with the City as the employer of record. Because of this structure, their fees are approved by the board of the nonprofit, not the City. However, they are required to send certain revenues to the City, including all youth program fees and pool fees. GIAC’s staff primary concern is keeping fees affordable – they note that 73% of the families they serve are classified as Low-to-Moderate Income. The fees therefore are broken into multiple levels based on household income: six to seven income brackets are used for pricing school-year programs, while two brackets – under or above $60,000 – are used for summer programs. GIAC also stated that about 70% of attendees receive “scholarships”, such as a subsidized season pass for pool, etc. GIAC especially voiced concern for keeping programs affordable for teenagers. They note that while parents are willing to pay program fees for younger children, teenagers are often expected to be old enough fend for and entertain themselves during summer months, and perhaps pick up summer jobs and provide some of their own money. Without parental subsidies, when fee are introduced or raised for programs involving teens, many stop coming. GIAC notes they have a long list for their daycare programs and are concerned about affluent families displacing lower income families for these services. Although GIAC offers room rentals at competitive rates, they note there is low uptake, in part because any renters have to work around existing GIAC programing using these rooms, leaving only limited hours available for private rentals. Ultimately, GIAC staff were of the opinion that a centralized system for setting their fees would not work well; they need departmental discretion to adjust them based on their sense of what is affordable and appropriate for different groups of participants and people they are trying to attract. www.cgr.org 27 [PAGE 28] 18 GIAC fee change: there is a percentage increase to fees every two years. GIAC fee recommendations: • They believe current fees are priced appropriately. • They wish to retain discretion in setting their amounts, based on knowledge of participants and program draws. • They could charge more but want to remain affordable for lower-income households. • There is difficulty raising fees for programs involving older teens and young adults, as parents are less willing to subsidize participation for these groups. Ithaca Fire Department The Ithaca Fire Department (IFD) has a variety of fees all related to fire safety inspections and plan reviews. The Fire Prevention Bureau division of IFD is staffed by an Assistant Chief who acts as the current Fire Marshal for the City and three line firefighters. They handle over 1,000 inspections per year, each taking approximately one hour. Most inspection fees are currently priced at $65-$75, representing an hourly rate that the Chief notes was based on previous personnel costs, and therefore all fees must be raised to reflect the rates under the latest collective bargaining agreement. As well, the Chief stated that staffing levels need to increase in fire prevention bureau to properly handle inspection load and the department would like to add a lieutenant to the Bureau to learn the job from the current Fire Marshal to prepare for an eventual retirement and transition. Finally, the Chief noted that some new fee categories need to be created for new technology, such as expanding the categories for energy storage safety inspections, which including things like installed battery systems. As well, some fees are remitted late and there are currently no penalties in place for late payments. IFD fee change: fees are based on hourly costs for firefighters and have not been updated yet to reflect the latest rates in the new collective bargaining agreement. IFD fee recommendations: www.cgr.org 28 [PAGE 29] 19 • New fee categories are needed for new technology types, such as installed battery energy storage systems. • There is currently no penalty for late or delayed payments, and this should be considered. Parking Parking is a division within the Department of Public Works that oversees both the operations of street parking and the public parking garages – except for the Cayuga Street Garage, which is operated by the Ithaca Urban Renewal Agency. Income from both the garages and street parking is constrained by the available hours of parking staff: parking in both is free on evenings and weekends simply because staff are not on duty. Street Parking Street parking enforcement (CSOs – Community Service Officers) work standard daily shifts. For evening or weekend coverage, more CSOs would need to be hired. The Manager of Parking & Commons Operations, Todd Lalonde, reports that street parking enforcement is revenue-positive – i.e., taking in more revenue than the cost of staffing – and therefore adding more staffing could positively increase revenue. This would be subject to estimates of evening and weekend demand. The possibility of charging for parking in the Stewart Park lot was raised in discussion. In general, parking staff thought it would be complex to enact a system that allowed free or reduced parking for residents and allowed in non-residents who are enrolled in Recreation programs while charging non-resident who are not in either category. Garages For the garages – the Dryden Road, Green Street, and Seneca Street garages – the gates are open and parking is free on nights and weekends. Ideally, the gates should be down and generating revenue 24 hours a day, but the machinery is not reliable enough to fully automate (e.g., gates get stuck down and payment and tickets do not always process correctly), and therefore some level of staffing is required in the booths while gates (and revenue collection) are in operation. Parking is currently subsidized by the City: rates would have to go up substantially to fully cover debt and net deficits, especially of the parking garages. However, the understanding is that garage infrastructure is subsidized to increase walkability, business vitality and property taxes downtown. Fee Levels www.cgr.org 29 [PAGE 30] 20 Garages Parking staff believe all fees should be raised, claiming that parking garage rates, currently set at $1/hr, have not been changed in recent memory. Among a number of suggested new rates that have been noted in the Parking spreadsheet, staff suggest raising all garage rates to $2/hr. There is capacity in the garages, such that Parking staff suggest raising street parking prices, believing more parkers will utilize the garage, freeing up street spaces for more turnover, which will be positive for customer flow and short-term availability to access downtown businesses. Street parking For the same reason, staff suggest enforcing a 2-hour street parking limit downtown – telling CSOs and setting the meters to not allow more than 2 hours of parking per license plate. This will generate more fee revenue and stop the practice of some individuals using all-day street parking in the same spot, which removes space availability and impedes easy access to downtown businesses. Likewise, all parking ticket rates should be increased, with a CPI inflation escalator, and overtime zone or meter penalties need to be increased – currently, the fine for being 20 minutes overtime in a space is the same as being 8 hours overtime. Parking fee change: some fees, such as parking garage rates, have not been changed since the 1970’s. Parking fee recommendations: • Street meter rates and ticket penalties should be increased and tied to a CPI inflation escalator. • All garages should change to $2/hr, $12/day rate. • Overtime zone/meter penalties should increase and scale based on amount of time over the limit. • Enforce 2-hour limit on street parking downtown to free up spaces and increase garage utilization. • Consider using demand-based pricing for College Town and downtown during peak hours. • Other specific fee increase recommendations are noted in the Parking spreadsheet. www.cgr.org 30 [PAGE 31] 21 Planning & Development Planning & Development collects fees relating to its code enforcement and planning functions. The department recently moved to using the OpenGov system, which required simplifying their previous fee schedule structure. As part of this simplification, housing inspection fees were revised this year and benchmarked against other municipalities, which the department and City Manager believe puts them at the right level for the moment. Building permit fees and site plan review fees are calculated based on overall construction costs, so the department describes them as “self-leveling”. Per staff, developers sometimes take issue with the complexity of the site plan process itself but have not complained about the cost of the fees. In general, the department tries to keep permit fees at a reasonable level so that individuals will voluntarily apply for permits without being deterred by the cost. Planning & Development fee change: Housing inspection fees were updated this year. Building permit and site plan review costs are “self-leveling” as a percentage of full project costs. Planning & Development fee recommendations: • Most fees are currently set at a reasonable level to encourage individuals to apply for permits. • Fees for special event inspections and mobile vending inspections could be raised. • Property maintenance fines may need to be increased. Police Department The Ithaca Police Department (IPD) has a small number of fees in four categories: background checks and clearance letters, taxi licenses, solicitor’s permits, and setting towing fees. Most of these categories do not generate significant revenues – IPD accounts receive fees from background checks, police reports and visa clearance letters, but they believe all other amounts go directly into the City’s general fund. Background checks, police reports and solicitation permits In 2024, IPD reported processing 31 background checks at $5 apiece ($155 in total revenue) and 13 visa clearance letters at $5 apiece ($65). Solicitation permits are rare – they estimate processing about three new solicitation applications in a typical year, but report only one permit issued in 2024. In all, IPD estimates bringing in less than $300 on all the permits issued in 2024. www.cgr.org 31 [PAGE 32] 22 Taxi licensing Currently, there are two taxi companies operating that did not renew their licenses, but IPD states it is hard to justify charging them as ridesharing companies like Uber and Lyft are not charged anything to operate in Ithaca. IPD requested that the Common Council advise on whether pursuing these fees should be a priority. Towing fees IPD believes that towing fees are out of date and should be updated. In their understanding, towing companies are allowed to keep the vehicle storage fees for housing towed vehicles in their yards, and must remit other towing fees back to the City’s general fund. There is currently a City working group dealing with complicated issues related to towing and recommendations on towing changes should come to the Council in early 2026. Security staffing IPD officers are paid overtime to provide a presence at certain events and festivals, such as Ithaca Fest and Reggae Fest. This money comes out of the IPD’s overtime budget, while some other overtime at third-part events is paid for by grants. This overtime situation deserves closer scrutiny to better understand if this overtime cost is being borne by Ithaca taxpayers through the general funding of IPD’s annual budget, rather than being charged to event organizers. If so, that represents a subsidy that could be eliminated for larger-scale private events. IPD fee change: IPD per hour/overtime labor costs likely have not changed since 2020. Other fees may not have been updated in the last 20 years. IPD fee recommendations: • Towing fees need to be updated. • Fees for permits and background checks could both be increased, but some tasks, such as background checks and visa clearance letters, have a minimal time-cost, taking no more than 10 minutes to complete. • Traffic tickets come with a $60 surcharge that could be increased, if the City rather than the state sets that level. • City should consider a fine for faulty burglar alarms – other municipalities charge for repeat faulty alarms after the first response. www.cgr.org 32 [PAGE 33] 23 • Property checks requested by private parties – such as college fraternities – are currently a free service. Perhaps there could be a charge for this. Streets & Facilities Streets & Facilities manages fee services for the Newman municipal golf course, trash and yard waste collection, and street and sidewalk closure permits, as well as cleanup for traffic accidents. Golf course The manager of the Newman golf course has stated that fees should generally be raised to equally what other local golf courses are charging, so that additional revenue can be raised to maintain competitive quality for the golf course. Traffic accidents For traffic accidents, the division charges FEMA-specified rates on equipment deployment, plus a 25% administrative fee. Trash & yard waste The division believes that trash tag amounts – currently set at $5 for a regular trash tag and $1.50 for yard waste – should be raised, as operational costs far exceed revenue. Tipping fees – the amount that trash disposal facilities and recyclers charge – have been climbing. For example, Tompkins County raised recycling fees to $10 a ton. As well, the division suggest the possibility of charging for pickup of bulk trash items, which is currently free. Sidewalk snow removal Snow removal is a complicated issue, with property owners currently responsible for snow removal on adjacent sidewalks, but not always fulfilling their responsibility. The City has been examining this issue for a few years and the City Manager has stated that more consideration is needed to determine options for better compliance and enforcement before fine recommendations can be made. Stormwater fees Commercial and residential properties are charged fees to support stormwater infrastructure according to a formula based on the amount of impervious surface area, with different rates for residential and commercial plots. The revenue generated is not covering the costs of stormwater infrastructure and the fees need to be raised. www.cgr.org 33 [PAGE 34] 24 Streets & Facilities fee change: some fees were last updated in 2022; others have not been changed over a longer time. Streets & Facilities fee recommendations: • Newman Golf Course: raise fees to be competitive with other nearby courses. • Trash tag fees should be raised. • Stormwater fees should be raised. • Sidewalk snow removal enforcement policies and procedures need further development. Water & Sewer One aspect of this project is considering whether it would be beneficial to change the water and sewer rate methodology. This is driven by two conflicting demands: on one hand, some residents are unhappy with how their bills are calculated; on the other hand, the water and sewer system is in need of increased revenues. Staff state that there are a several large upcoming infrastructure investments that will be needed: this includes life-cycle replacements to part of the sewer system, a dam renovation and investments to improve the water plant. Per information from Mark Verbanic, Assistant Superintendent of Public Works, the required operational costs and investment needs far exceed current revenues. Currently, water rates are calculated through the following process: each water customer is charged a minimum base amount based on their meter size (the size of their connection to the water system, which determines how much flow they receive) along with a standard water allotment that scales along with meter size, plus an accompanying sewer rate. They are charged a combined water & sewer rate - currently $18.68 per “unit” (a unit equals 100 cubic feet/748 gallons) – on any overage amount. Water & Sewer quarterly bill amount = meter size + initial water allotment charge (by size) + initial sewer charge (by size) + any overage charge (overage amount * combined water & sewer rate). Sewer rates are currently less than water rates because while the water plant does not serve other municipalities, the wastewater treatment plant does and costs are shared with the Town of Ithaca and the Town of Dryden. The plant also treats private septic waste, which brings in approximate $500,000 a year in revenue. www.cgr.org 34 [PAGE 35] 25 The smallest meter size, which would serve most individual residential customers, is a 5/8” connection, which comes with the charge for a minimum initial allotment of 1,200 cubic feet of water (approximately 9,000 gallons) per quarter (roughly 3 months). As noted, the issue of raising water and sewer rates is a complicated one: everyone would like their bill to be lower, while the City requires additional capital for system improvements. The City Manager also passed along feedback from some residents that they dislike the minimum initial allotment rate methodology as they believe they use less water and they do not want to be charged for what they are not using. Some would like the methodology to be changed to an initial connection (meter) fee, plus a per-gallon fee starting at zero – in other words, a methodology that tracks actual usage closely and could result in cost-savings for those who use less. The minimum allotment rate methodology currently in place is widely used by other municipalities near Ithaca, as well (Geneva, Oneonta, Newburgh, etc.), as it provides a steady revenue base for the system. However, some larger systems, such as the City of Rochester’s, use the alternative rate methodology of a base meter charge, plus a standard charge per 1,000 gallons, without any minimum allotment charge, so bill sizes track more closely to actual usage. (Rochester’s initial gallon rate tier is standard from zero up to 300,000 gallons per month and then decreases as it scales to large volumes, which would only affect the heaviest commercial and industrial users.) Altering water & sewer rate methodology If Ithaca decided to alter its rates methodology, the math of doing so is relatively straightforward. The City would need to: 1) Determine average usage by various segments based on meter size, which should correspond roughly to individual home residential users vs. large scale residential (multi-unit buildings), industrial, and commercial users; 2) Determine its revenue goals for each segment, and calculate backwards based on average usage to determine a 1) water & sewer unit rate and a 2) meter fee. Example of new water & sewer rates. For example, if the quarterly revenue goal for the average 5/8” meter customer (most individual home residential customers) was $450 per quarter, and the average customer/household consumes 16,000 gallons per quarter (approximately 21.4 units in Ithaca’s methodology), the existing combined unit cost of $18.68 per unit and a standard quarterly meter fee of $50 for a 5/8” meter would reach this target: • 21.4 units * $18.68 = $399.75 • 5/8” meter fee = $50 • Total revenue = $449.75 per quarter Any or all of the three variables that compose this equation – meter connection fee, consumption amount, unit/usage charge – can be altered by different amounts to produce www.cgr.org 35 [PAGE 36] 26 the desired total revenue amount. For example, if the meter fee were increased to $100 per quarter, and the consumption amount held steady at 21.4 units, the per-unit charge could be reduced to $16.35 and produce the same amount of total revenue ($449.89). While the math and formula may be straightforward, the fiscal and political considerations are more complicated. The fiscal consideration involves whether the City intends to produce equal or increased revenue under the new methodology. In order to produce equal or increased revenue, it is axiomatic that if some customers’ bills go down under the new methodology, other customers’ bills must go up by an equal or greater amount, which becomes the political consideration. Some customers may consider a more strict “pay by usage” system more fair, while others – residents, businesses and other users – may be higher users dismayed by higher fees. Thus, the political consideration involves who wins and loses under the new arrangement and how many and what type of constituents (such as commercial vs. residential) are in each category. Given that the water system currently has tiered rates based on meter size, it would be possible to swing more of the cost onto larger users by either charging more for their larger- size meters, and/or introducing higher-tiered water and sewer rates for customers with larger meters. However, the City should also anticipate that some customers will respond to their increased bills by somewhat reducing consumption, which again alters the revenue curve. Some buffer would have to be built into the calculations and expected revenue to account for this probability. Better data is needed To successfully implement a new pricing methodology while maintaining or increasing overall revenues, the City requires a better understanding of exactly what customers/users are inhabiting each meter segment and what their average usage is. Currently, the Water/Sewer division reports that it does not track individual usage in a way that would allow calculation of average usage or average billing rates by customer class. They hope that when the transition to the new Neptune cloud-based metering system – currently in process – is complete, they will be able to analyze customer data at a more detailed level. As described above, a “progressive” rate methodology could be imagined that attempts to shift cost burden towards larger-scale commercial and industrial users, while minimizing impact on residential users. However, there is no clean way to currently target this: while it is currently known that most individual residential houses are on the smallest (5/8”) meter size, larger multi-unit housing complexes, such as apartment buildings and residential towers, use a single common meter, and individual submeters are not allowed. Therefore, a policy of raising rates simply on larger meter sizes would increase rates for residents of multi-unit buildings while favoring residents of individual or small houses/residences. Conclusion on water/sewer rate changes The basic economics of the situation tell us that – unless substantial additional money for water and sewer investments and operating expenses comes from other sources, such as www.cgr.org 36 [PAGE 37] 27 state or federal grants, or from elsewhere in the general fund – the overall amount raised by water/sewer fees must at least remain constant, or more likely needs to increase. Given this reality, the same basic economics informs us that if a new rate methodology produces savings for one group – such as individual households that use less than the standard minimum allotment for their meter size – the ensuing revenue reduction must be made up for by another group – such as larger-scale users, if the budget is to be kept at the same level. In other words, if somebody pays less, someone else must pay more, in order to keep the whole revenue amount constant or increasing. Thus, the City is left with three main options: 1) Maintain the status quo, including slow but steady increases in current rates to support needed system investments. This approach requires the least work and maintains current levels of satisfaction/dissatisfaction. 2) Institute a new rate methodology without minimum allotments, but with increased standard meter “infrastructure” fees in a sweeping, non-targeted, across-the-board changeover. This will result in a new mix of ‘winners and losers’ with perhaps some smaller users feeling satisfied that they are being billed less based on actual usage, while larger users would be paying more. This approach carries the most risk of unanticipated consequences and possible constituent dissatisfaction. 3) Attempt a new “progressive” targeted rate methodology that singles out larger commercial and industrial users for higher rates, while attempting to keep rates lower for residential users. This targeting approach would require customer data that the water/sewer division does not currently track but will hopefully have the ability to once the new metering system is fully implemented. This approach would require the most work to implement and involves data capacities the City’s water system does not yet possess, but may in the future. As a practical matter, if the fees are raised either within the existing rate methodology or through a new rate methodology, DPW staff recommends moving to monthly billing rather than quarterly billing, as this will reduce the likelihood of customers facing a larger bill all at once. However, if a substantial number of customers are still receiving and paying paper bills, or paying in person, monthly billing will add some amount of transaction and processing costs. Water & Sewer fee change: rates are updated regularly for inflation, but are not keeping pace with cost recovery & need for future investments. Water & Sewer fee recommendations: • Water & sewer rates could be calculated under a new methodology that charges more closely for actual usage. This change would produce some winners and losers, based on www.cgr.org 37 [PAGE 38] 28 usage. The City would need a better understanding of specific water users in specific segments to decide if this is a wise move. • If rates are raised, consider a move to monthly billing rather than quarterly to reduce price impact. This, however, would increase processing and transaction costs. • Bulk water fees – mainly used by private contractors – can be raised. Youth Bureau The Youth Bureau charges fees related to pavilion rentals, access to recreation facilities such as athletic fields, the pool and the ice rink, equipment such as bike and boat rentals, and a variety of fees for recreational programs and camps offered to a variety of ages from toddlers onward. A recreation partnership of 11 groups and 10 municipalities all contribute funding to the Youth Bureau (around $400,000), which is used to subsidize programming for their residents/members. Grants, donations, and state funding also provide some support for a variety of programs. The Youth Bureau works to keep programming and facility access fees affordable and believes that most fees are set at the right level, with the exception of pavilion rental fees, which could be raised. Fees are determined through what seems reasonable based on past history and benchmarking of similar fees in comparable programs elsewhere. Fees are raised on an as-needed basis and price increases are usually driven by a change in systems for running or administering the programs/activities, or a change in external cost factors. Finally, Youth Bureau staff expressed their belief that additional investments in park and recreational infrastructure would pay off through increased utilization, resulting in increased fee revenues. For example, they state that Cass Park pavilions could use renovations, which may spur increased pavilion rentals. Youth Bureau fee change: fees are not updated on a set schedule but are adjusted over time, in response to changes in external and internal costs. The goal is to keep most fees as affordable as possible. Youth Bureau fee recommendations: • Pavilion rental fees should be raised. www.cgr.org 38 [PAGE 39] 29 • Other program and activity fees should be kept as affordable as possible. Peer Comparisons Studying the fee organization processes of other cities can help Ithaca extract best practices and lessons for its own fee work. CGR selected the cities of Binghamton, Rye and White Plains as three municipalities using a variety of best practices in organizing their fees withing their budgets. While samples of these cities’ fee structures are presented below, Ithaca should review the respective budgets (linked above) in more depth to determine if there are different fee categories or other ideas to be gleaned beyond the general best practices presented below. But directly benchmarking from their rates is not advised. In general, CGR does not recommend directly benchmarking from comparison cities’ fee amounts for two main reasons: while peer benchmarking can provide a rationale for adjusting fees (usually upwards) with a logic of “everyone else is doing it”, 1) there is no guarantee that these municipalities are using a more rational fee-setting method, and, 2) there is no reason to believe that their costs and service complexity issues are the same as those in Ithaca and will produce the necessary cost-recovery. If Ithaca calculates its own costs via the provided templates, those provide a firmer basis for setting fees, and local benchmarking may instead be used primarily as a check against disproportionate fee escalation – that is, Ithaca may or may not want to be known for charging double what other nearby municipalities charge for the same function. City of Binghamton, NY Binghamton presents a comprehensive fee schedule as an appendix to their budget, with more than 300 individual fee types listed, and many equivalents to Ithaca’s system, including water and sewer fees and municipal golf course fees. www.cgr.org 39 [PAGE 40] 30 Binghamton Budget fee section sample: www.cgr.org 40 [PAGE 41] 31 City of Rye, NY Rye’s budget includes a separate fee schedule section noting just over 200 individual fees, with information for each fee on where in city code the fee is authorized, when it was last changed, and the amount it has been set at for the last two fiscal years. Rye Budget fee section sample: www.cgr.org 41 [PAGE 42] 32 City of White Plains, NY White Plains distinguishes between license and permit fees (45 fees) and charges for services (65 fees), and regularly revises charges for services as a major budget component, as explained in the following budget excerpt: While White Plains is a model for projecting revenues and costs and instituting a process for regularly adjusting fees, it is a cautionary example in its fee organization, as it does not break out fees and charges by any particular order or departmental division in its budget. www.cgr.org 42 [PAGE 43] 33 White Plains Budget fee section sample: The fact that most fees from the comparison cities are round numbers priced in the units of fives, tens or hundreds indicates that they are not pricing their fees closely to cost, but are rather utilizing ballpark numbers that feel reasonable, as most municipalities do. Lessons from Comparison Fee Structures None of these three comparison budgets is a perfect model on their own, but combining all three can yield a number of best practices. Lessons include: Present all fees in one standardized format (such as a table) in one part of the budget, such as an appendix or a separate section. Include the following information in the fee table (many, but not all, of these categories are built into the templates CGR has prepared for Ithaca). www.cgr.org 43 [PAGE 44] 34 Fee name Fee type Fee unit (per dog, per year, per event, etc.) Section of City code authorizing fee or description of who sets fee. Current fee amount Date when fee was last changed Number of transactions last year Total revenue last year Proposed new fee amount Percent change from old amount Break the fees out by department and total the fee revenue received from each department at the end of its respective section. If expenditures are separately broken out by department elsewhere in the budget, include fee revenue totals after each department’s expenditures list on those respective pages, so that cost recovery can be holistically assessed against categories of expense. Finally, although the comparison municipalities appear to have superficially ‘simpler’ fee structures in that they appear to have substantially fewer fees than Ithaca, this does not make simplicity better. Binghamton, Rye and White Plains have approximately 300, 200, and 100 listed fees in their budgets, respectively, but there is no indication that any one system is working better than the others. A process for considering which fees to simplify or eliminate is discussed above in the report. www.cgr.org 44 [PAGE 45] M E M O R A N D U M Date: September 24, 2025 To: Common Council From: Capital Project Committee RE: 2026 Capital Project Plan EXECUTIVE SUMMARY The purpose of this memorandum is to outline the rationale for limiting new capital project recommendations during the 2026 budget process and initiating the development of a long-term, fiscally sustainable Capital Improvements Plan (CIP). This temporary pause is a strategic decision intended to reinforce financial health, improve internal operations, and lay the groundwork for a stronger, more transparent capital program beginning in FY2026. PROJECT HISTORY, BACKGROUND, & ANALYSIS As a reminder, the Capital Projects process is outlined in the Code here: https://ecode360.com/8385897 “There shall be in the Office of City Manager an interdepartmental Capital Program Committee, consisting of the City Manager as Chairperson, the Director of Planning and Development, the Superintendent of Public Works and the Controller.” We have also included the Grant Administrator, Director of Sustainability, Director of the Youth Bureau, and Director of DICE on the committee. Capital Projects Borrowing History 2021 2022 2023 2024 2025 Total General Fund $2,688,900 $10,208,194 $11,563,754 $7,284,347 $5,190,000 Total Water & Sewer $396,200 $2,075,000 $3,850,000 $3,005,000 $7,300,000 TOTAL BUDGETED $3,085,100 $12,283,194 $15,413,754 $10,289,347 $12,490,000 TOTAL (Minus ARPA) $3,085,100 $5,635,494 $13,163,754 $10,289,347 $12,490,000 CHIPS funds $605,000 $3,016,054 $3,016,054 $4,064,347 n/a Total Bond Issue* $2,318,400 $2,319,440 $9,797,700 $5,006,000 n/a Total Debt Service Payment $11,248,215 $11,324,442 $11,871,131 $12,159,431 $13,786,614 *Diff b/t bond and total is some things are paid from operating and some things we don’t borrow for until we need the funds. 45 [PAGE 46] KEY ISSUES IDENTIFIED While capital investments are essential to addressing the systemic deferred maintenance issues, the City must first address foundational financial and administrative challenges. Using an austerity model for 2026 provides an opportunity to refocus and realign in a critical transition period—now in the second year under the city manager form of government. With professional management structures in place, we are better positioned to strengthen internal controls, complete overdue financial work, and establish clear policies and long-term plans that will guide more effective and transparent capital investment in future years. We can also directly address concerns resulting from the completed 2021 audit. They have recommended we convert the current accounting process for capital projects into the financial software system to better track Capital Fund Activity. Additional rationale for an austerity capital projects year is as follows: Financial Recovery and Credit Rating Restoration The City is prioritizing the completion of overdue financial audits to regain transparency and credibility with credit rating agencies. Catching up on audits is essential to restoring our Moody’s bond rating and reducing long-term borrowing costs. ACTION STEPS: • Onboarding and set-up documents portal with the new audit firm, Bonadio (completed) • Utilizing temporary staff from ProNexus to address backlog (ongoing) Stabilization of the Controller’s Office Key vacancies and turnover in both the Controller’s Office (as well as other departmental staffing transitions) have impacted our capacity to accurately track, manage, and close out capital accounts. Staffing stabilization is needed to reestablish a consistent and reliable system for both the planning and management of projects and the associated funds. ACTION STEPS: • Pending the retirement of the Deputy Controller, hiring a Staff Accountant (approved by Council at the 9/3/25 meeting) to do more day-to-day entry and financial accounting • Submitted OTR in 2026 budget for a second Staff Accountant • Restart Controller Search in January 2026 Reconciliation of Existing Capital Project Lines Many existing capital project accounts remain open with unspent or improperly categorized funds. A citywide capital account “scrub” is necessary to reconcile project statuses, close dormant accounts, and return unused funds where appropriate. ACTION STEPS: • A preliminary review was completed by staff in August of 2025 • Complete set-up of all exiting capital projects into DebtBook (partially completed) 46 [PAGE 47] Development of a 5-Year Capital Improvements Plan A robust, strategic CIP is a nationally recognized best practice for prioritizing infrastructure needs and aligning projects with long-term community goals. The pause allows time to develop a data-informed, community- engaged 5-year CIP starting in FY2026. ACTION STEPS: • Benchmarking of other City CIP plans (in process) • Migrating CIP Plan into Munis and OpenGov (early 2026) Creation of a Citywide Master Facilities Plan To address deferred maintenance, space needs, and operational efficiency, the City will initiate a facilities assessment and planning process. This will ensure capital investments are aligned with long-term use, cost- efficiency, and service delivery goals. This ACTION STEPS: • First draft of a facilities status inventory is available for review, but note this is an active document that staff will continue to update: City Facilities Master Planning Priorities.xlsx • Staff will develop a Master Facilities Plan in time for the 2027 Capital Projects Process This effort will be informed in part by knowledge and information gained in past facilities planning efforts. From 2016 to 2020, a mayor-appointed internal committee evaluated City facilities to develop recommendations for improvements, consolidations, and relocations. As Council is aware, the committee's primary actionable finding was that the Police Station is the facility with the most urgent needs—needs that could not feasibly be addressed within the current building. In 2024 and 2025, this project advanced to site selection and acquisition for the new police facility, culminating in the recent purchase of 401 Third Street. While other projects identified by the committee were not pursued, understanding their scope provides valuable context. The commissioned studies did not encompass all city facilities but focused on the most urgent needs and analyzed promising consolidation scenarios for operational efficiencies. These studies included: • A joint City Police and County Sheriff facility • A central campus combining City Hall and the Central Fire Station • Consolidation of public works departments (streets and facilities, water and sewer, and engineering) into a new facility in Southwest Park Each exploration ultimately encountered significant barriers, including cost constraints, logistical challenges, property acquisition difficulties, and other limiting factors. 47 [PAGE 48] Establishment of Financial and Debt Management Policies The City will formalize capital budgeting and debt issuance policies to guide future investment decisions and ensure fiscal discipline. This includes setting thresholds for project evaluation, debt capacity, and operating cost impacts. ACTION STEPS: • Convene a meeting with the members of the Council advisory committee before the end of 2025 • Benchmarking of other municipal financial policies for review (in process) Exceptions to the Capital Project Pause While the default position for FY2026 is to pause new capital project authorizations, the City will move forward with select projects that meet one or more of the following criteria: • Emergency or Critical Needs: Projects necessary to address public safety, health, or essential service continuity (e.g., infrastructure failures, code compliance). • Projects Tied to Grant Funding: Capital projects that are supported by state, federal, or philanthropic grants where local match requirements are minimal or already budgeted. • Projects Already Underway: Capital projects that are in the implementation phase or under contract will continue as planned to avoid financial penalties or service disruption. Please see the attached Capital Projects approvals list for 2026. Additional projects that emerge in 2026 will be reviewed and submitted to Council for consideration on a case- by-case basis, with a focus on financial impact, readiness, and strategic alignment. SHORT DESCRIPTIONS OF RECOMMENDED PROJECTS: Public Safety This is the continuation of the CP approved last year to Requested: $166,000 Camera replace the City's failing and aged infrastructure of public Recommended: $150,000 Expansion safety cameras. The project previously approved did not allow for expansion, which is greatly needed. This will allow for the installation of cameras at Green St. Garage, Cass Park, Youth Bureau, and expand the exterior cameras at IPD. IYB – Cass Park The existing tractor is at the end of its useful life. This is Requested: $63,350 Replacement something that would normally be paid for out of operating. Recommended: $63,350 Tractor IPD – Police The department annually replaces aging vehicles that have Requested: $481,000 Vehicles surpassed their effective “police service” lifespan. Recommended: $375,000 48 [PAGE 49] JUSTICE 50 Staff is requesting guidance from the Common Council regarding implementing Justice50 in FY26. The policy, which was adopted unanimously by Common Council in 2024, mandates that at least 50% of capital project spending benefits climate justice communities, or those most impacted by the social and economic stressors of climate change. Justice50 also requires 10% of the total capital project budget to be reserved for participatory budgeting to increase public engagement with local government, increase participation in democratic processes, and ensure public priorities are funded. 49 [PAGE 50] G E N E R A L F U N D Project Title Department Estimated Cost Other Funding Sources Funded Public Safety Camera Expansion DICE $166,000 $0 $150,000 Fleet Vehicles IPD $481,000 $0 $375,000 Tractor IYB $63,350 $0 $63,350 TOTAL $588,350 P R E V I O U S L Y A U T H O R I Z E D P R O J E C T S New Public Safety Building IPD In 2025 we will pursue a new fit test for the site acquired. TOTAL n/a W A T E R & S E W E R Project Title Department Estimated Cost Other Funding Sources Funded 60' Dam Rehabilitation Water & Sewer $10M $5.5M (FEMA) $2.5 million 2026 $2.5 million 2027 Water & Sewer Facility Renovations Water & Sewer $11M - Revised There may be a reserve fund to $5M for 2026 for Water & Sewer. Miscellaneous Plant Improvements Water & Sewer $4M The plant is joint funded, so the City would be responsible for approximately 58% of the debt. TOTAL **This is still in deliberation with the SJC. E M E R G E N C Y R E S E R V E S Project Title Department Estimated Cost Other Funding Sources Funded Bridge Maintenance DPW $100,000 $0 $100,000 Emergency Repair Fund DPW $400,000 $0 $400,000 Technology Infrastrucutre Fund DICE $50,000 $0 $50,000 Misc. Pump Station Improvements Water & Sewer $300,000 $0 $300,000 TOTAL $850,000 50 [PAGE 51] M E M O R A N D U M Date: September 18, 2025 To: Common Council From: Deputy City Manager Dominick Recckio, Community Justice Center Project Director Monalita Smiley RE: Community Responder Program Development EXECUTIVE SUMMARY A new community responder program, tentatively named the ROOTS Team (Responders Offering Outreach, Trust, and Support), is being proposed to the Ithaca Common Council. This proposal comes after benchmarking existing programs in the U.S., interviews with the Ithaca Police Department and other government and community agencies, and a review of previous policy directives from the Common Council made to date regarding the development of such a program. The program is being proposed for implementation in 2026, it includes five new City employees: four responders and one dedicated supervisor. This memo includes proposed shifts, day-to-day activities, draft response protocols, and necessary partnerships with IPD and community not-for- profit agencies to get this program off the ground and make it a success. The proposal seeks to best respond to some non-violent calls for service and serve community members in need via outreach and engagement activities. The proposed 2026 budget for the first year of this new program is $795,000, with a plan to use existing encumbered funds to subsidize the program’s first three years (reducing the estimated new cost for year one (2026) to $416,500, $586,750 in years two and three, and $795,000 in year 4 and onwards). PROJECT HISTORY, BACKGROUND, & ANALYSIS This proposal builds on the work of community members who have contributed greatly to this effort over many years, informing the City of Ithaca and Tompkins County on implementing Reimagining Public Safety initiatives. Specifically, community members of color have provided invaluable contributions of time and input to help make a program like this one a reality in Ithaca. Common Council has resolved via several resolutions to develop and implement such a program, most recently via its 2025 Legislative Priorities, “Expand and institutionalize unarmed and community-based crisis response as a complement to traditional policing.” 51 [PAGE 52] In April 2023 Common Council adopted a Special Committee Report directing City staff to “Develop and initiate a pilot program utilizing unarmed responders to respond to non-violent calls for service.” That report includes additional background on the initiative. A general timeline reviewing the history of City of Ithaca efforts on this initiative is available as an attachment. Ithaca’s community responder program will be modeled after many existing successful programs. In addition to general research on these programs, the Deputy City Manager is a participant in monthly Alternative 911 Emergency Response Community of Practice sessions hosted by the Harvard Government Performance Lab. Five example programs will be detailed to council in the accompanying presentation: • Durham, NC - HEART Program • Portland, ME - Special Services • Albuquerque NM - Community Safety • Denver, CO - STAR Program • Olympia, WA - Crisis Response Unit & Familiar Faces Program Generally, programs in other U.S. cities have shown: • Successful diversion of thousands of calls from law enforcement to formal unarmed community responder programs • Limited need for police backup in the vast majority of interactions and calls for service • Successful violence prevention strategies in partnership with community-based organizations • Effective peer support programs and aligned strategies to help people with complex behavioral health challenges Interviews have been completed with 17 local public safety agencies, government divisions, and community-based not-for-profit agencies, providing insights to develop a right-sized community responder program for Ithaca. Interviews examined community response and service delivery work already being conducted (formally and informally), as well as what agencies see as the role of a new community responder program: • Regarding City of Ithaca Policing o Ithaca Police Department conducts a significant breadth of work ▪ Including specialized activities solely for police (i.e. search warrants, evidence processing, arrests, involuntary commitments, crisis negotiation and specialized response) o There continue to be opportunities to address some non-violent calls via a community responder unit 52 [PAGE 53] o A community responder unit can allow for quick and effective handoffs to and from police on a scene, engaging law enforcement when a situation escalates or freeing up law enforcement when not necessary o Not-for-profit agencies reported positive relationships with the Ithaca Police Department while also supporting a new community responder unit • Community Agencies o Most agencies find/use alternatives to engaging law enforcement, but those activities also take away capacity for those agencies to serve their core missions: ▪ Support people in need and address non-violent incidents, typically with their clients or stakeholder groups, even if not a formal program ▪ Receive calls over the phone, support people directly or offer connections/referrals ▪ Help to de-escalate situations or resolve minor disputes even if not a formal program o Agencies provide a depth of service delivery and connections, but are typically at or nearing capacity for more work o Some agencies would like to see a non-police unit with the ability to enforce ordinances or issue summons for low-level non-violent infractions, as an alternative to police (i.e. traffic, commons) o Opportunities for additional referrals to LEAD and CARE programs o Opportunity for regular beats and patrols (non-police) to provide presence, build trust and relationships o Few agencies have trained medical or behavioral health professionals on staff, relying on referrals o Opportunities to formalize responses to minor, non-violent calls for service, many of which never make it to IPD, to free up agencies and/or support their efforts o Lack of formal violence prevention programming, supporting people to stop crime and violence before it happens o Opportunity for peers to provide assistance, encourage positive behavior, build community KEY ISSUES IDENTIFIED This program will seek to address the disproportionate contact between law enforcement and people of color. According to the Community Justice Center data dashboard, in 2024 32.71% of arrests made by the Ithaca Police Department were of Black individuals. Further analysis must be conducted regarding arrests of repeat offenders. Census data shows that Ithaca’s Black population is around 6% of the total. A Community Justice Center review of the 2024 IPD Incident Based Report (from the IPD Community Dashboard) identifies a significant share of IPD’s current call volume as non-criminal, low-risk, and service-oriented. These incidents provide an opportunity for community responders to engage with calls for service in a variety of ways, including conducting their own regular beats and patrols, co-responding with police, and responding on their own when appropriate. 53 [PAGE 54] In 2024, over 80% of incidents that received a law enforcement response were reported as a service-oriented, non-criminal, or non-violent call type. Of the lowest-risk incidents (34% of the total, including assists, checking property and welfare, parking problems, property damage accidents, verbal only harassment, and noise complaints), 7.0% were marked as a more serious call type after observation by a law enforcement officer. Continued analysis of this incident dataset will inform when and how community responders engage in these typically non-violent, non- criminal situations. Of 3,121 incidents that were initially reported as more severe with a higher likelihood of a criminal violation or violence, over 38% were ultimately coded as a less intense call type. Another key issue is the increasing volume of calls for service managed by law enforcement. The Tompkins County Department of Emergency Response reports more than 22,000 calls for IPD service in 2024, a 16% increase over 2023 and 8% over 2019 pre-pandemic levels. Fire and EMS calls for service are also increasing. Persistence in unsheltered homelessness, mental health challenges, and substance use crises show the need for more social/human service delivery in conjunction with law enforcement and emergency response. Through programs such as LEAD (Law Enforcement Assisted Diversion) and ongoing collaboration with outreach agencies to respond to homeless encampments, law enforcement is showing success working with outreach and diversion programs. There is a need to expand outreach capacity in this area. The CARE Team is another model that includes a licensed mental health clinician for co-responses with IPD officers to address calls with a serious mental health component – this has also proven successful over the program’s first year. PROPOSED SOLUTION A thorough analysis of interview responses, example programs, and key issues led to the identification of the following elements that will help to make a community responder program successful. Interviews with community agencies included an open-ended question asking what success for a community responder program would look like to them. Several of these elements are adapted from themes shared in those responses. • Provides a teamwork approach with police • Builds trust with community • Reflects community values, involves people with lived experience • Collects data for constant improvement and iteration • Adds capacity to community outreach efforts • Integrates within existing emergency response system • Collaborates with community agencies • Preserves and enhances capacity of existing community agencies • Offers more pathways for violence prevention 54 [PAGE 55] • Effectively provides wraparound health and human services Proposing the Ithaca ROOTS Team: Mission Statement: Ithaca's community responder unit conducts outreach, builds trust, and offers support to community members in need. They respond when dispatched, when requested by IPD, and when they proactively observe a situation where they can help. A teamwork approach with police and other community agencies enhances the capacity and effectiveness of the existing emergency response and social services systems. Vision Statement: Ithaca’s community responder program reduces overreliance on policing and disproportionate contact between minorities and the criminal justice system while providing ample access to supportive services for community members in need. Structure The unit’s systems are integrated into the existing Tompkins County and City of Ithaca emergency response systems in partnership with the 911 Center and Ithaca Police Department. The unit is directly supervised by a new Community Response Supervisor. This position reports directly to the Deputy City Manager and is responsible for making day-to-day and case-by-case decisions regarding calls for service and when/how to dispatch the community responder unit. They inform and help carry out the training, policies, and procedures of the unit. They work in tandem with the Ithaca Police Department to provide the best direction to responders in the field. The unit is comprised of four new Community Responders. The responders work in teams of two, on two overlapping shifts (i.e. 11am-7pm, 3pm-11pm) allowing all four to be available during regular high-volume call times in the early evening. An on-call system is implemented for overnight and weekend calls where police or other units request a response from the unit. They are trained in outreach, de-escalation, violence prevention, mental health first aid, CPR, other life-saving techniques, trauma-informed care, local emergency and first response systems, and how to access and refer to community resources. In practice, there are at least three ways in which a community responder will provide a response to non-violent situations: • Proactive beats and outreach 55 [PAGE 56] o Responder teams proactively make rounds by foot, bike, or motor vehicle around the community o Responders observe a situation where they can provide support, build trust, or engage in outreach o Responders alert dispatch/supervisor, stop and offer support, alert dispatch/supervisor when interaction ends o Responder tracks data from self-initiated call • Scene handoff from IPD o IPD responds to a call for emergency service o IPD officer “clears scene” as non-violent, non-emergent, possible benefit from community responder engagement o IPD officer hands off scene to community responder, re-engages as necessary but free to conduct other emergency work • First on scene / dispatched o Supervisor assesses non-violent non-emergency call for service in collaboration with IPD and 911 center o Supervisor determines appropriateness of call for community responders o Supervisor / dispatcher radios responder team o Responder team dispatched to scene, provides support o Team able to radio for backup at any time Community responders will provide effective pathways to “wraparound services” via warm handoffs to the 211 information line and other service providers. A program will be developed with 211 (Human Services Coalition) to offer scheduled calls back after someone is engaged by community responders. Such a program will allow for warmer handoffs to supportive services, data collection, and guaranteed follow ups for addressing social needs. Responders complete a brief form including details from the response situation, the needs of the individual, and their preferred time for a follow-up call. That information is shared with 211 who will call the individual back at the pre-identified time for a virtual check-in and to ensure seamless service delivery. Protocols for service delivery through this program will be developed with organizations connected through 211. The unit will have access to vehicles, bicycles, radios, workstations, and other equipment to support their job functions and operate within existing emergency response systems. The unit will work with the Community Justice Center on community engagement, participate in community and trust-building exercises with community groups, and be present at functions including community healing events. A companion “peer program” will be established and deployed through a local not-for-profit agency. This program will act as an extension of the community responder program, helping to follow up in-person with individuals who come in contact with law enforcement or 56 [PAGE 57] community responders and will help to encourage behavior change or follow-through use of social and supportive services offered. The program will hire people with lived experience in the criminal justice system and/or homelessness or poverty to act as supportive peers throughout the community. Companion violence prevention programming will be established and carried out via a local not-for-profit agency based on a request for proposals. Programming will use best practices in violence prevention and will work with community responders to engage with community members and groups to reduce violence and offer alternative programming and social supports. QUESTIONS FOR COUNCIL Common Council should determine whether the program proposal above will serve as the initial desired model, and if so, direct staff via resolution to develop and budget for this program to begin in 2026. If a larger or smaller model is desired, Council should direct staff appropriately based on your interest. Feedback on the proposal is being sought from Common Council. The draft resolution (attached) directs staff to implement the program described in this memo, spreading the use of pre-existing funding over the course of three years and provides a framework for feedback from council members. This memo, accompanying slides, and a link to the recording of the Council meeting where this is discussed will be made available on the City’s website for the public. During the 2026 budget process Council will also receive proposals for ongoing support for the Law Enforcement Assisted Diversion (LEAD) program, the CARE Team, Community Outreach Worker Program, Community Justice Center, and other law enforcement programming. BUDGET IMPLICATIONS & FUNDING The proposed 2026 budget for the first year of this new program is $795,000, with a plan to spread out the use of existing encumbered funds over the program’s first three years (estimating a new cost of $416,500 in year one (2026), $586,750 in years two and three, and $795,000 in year 4). Initial 2026 proposed program budget: Responder Salaries + Fringe (4 total) $450,000 Supervisor Salary + Fringe $150,000 Vehicles $100,000 Equipment $25,000 57 [PAGE 58] Training $20,000 PEER Program $25,000 Violence Prevention Program $25,000 TOTAL: $795,000 Equipment and vehicle costs will be higher in the program’s first year. Maintaining a steady budget for the first four years will allow for increases in pay, training, and other programming. Draft job descriptions will be completed following program direction and budget decisions. The Civil Service scoring system will identify the appropriate pay scales for the responder and supervisor positions, which Common Council will be asked to add to the roster once they are prepared. The budgeted amounts above include salary and fringe and are estimates based on other positions on the City roster. This budget request may be proposed by the City Manager but made as an “Over Target Request” through the 2026 budget process, requiring an additional vote of Common Council to add it to the budget. A conceptual budget for one team would be approximately $500,000 annually, and an expansion to three teams would cost an estimated $1.3M. At this time, staff is recommending the budget outlined above. PUBLIC FEEDBACK This and other elements of the Reimagining Public Safety initiative have received a significant amount of feedback over nearly a half-decade. Further detail on past feedback can be found in a 2023 Special Committee Report as well as the initial Public Safety, Reimagined report and the subsequent implementation report. Interviews with community agencies were completed in 2025 and are detailed above. All agencies interviewed were invited to an August 2025 feedback session where the general outline of this proposal was shared. A feedback session was held with REACH Medical’s Peer Advisory Board which includes people with lived experience in the criminal justice system and with addiction and/or homelessness. The following themes and insights emerged from the recent feedback sessions: • What success will look like for this program: o Resulting in reduced arrests for the BIPOC community o Diverting calls from existing emergency response system and policing 58 [PAGE 59] o Increased community trust in City government, IPD, and responders o Increase in people being successful when calling for emergency service o Sometimes people just want to be heard – community responders offering a call back from 211 will be helpful • Whether the proposal is right-sized for Ithaca: o This is a great start and an appropriate size with four responders o Important for a supervisor to help make day-to-day decisions on calls o Need to avoid burnout of employees when the program starts small o Peers and other programs can expand capacity o Community partners are interested in reviewing and improving the program over time o Consider expanding the team to include overnight hours o It will be important to make sure the entire community knows that this program is available o A peer program can make a difference because it connects people in a more personal way with trusted partners, supportive check-ins are helpful • Whether the proposal would address issues or add capacity: o Several agencies are glad to know there will be a new team/process for providing a warm handoff when they see someone in need or the opportunity for a non-law enforcement response o If people with the right commitments/backgrounds are hired it will add capacity because people will trust them to be compassionate and provide connections o The 211 partnership will add appropriate capacity but with more people connected to services, those services will need additional support over time o A program like the proposed one with 211 will address people’s concerns after the initial call o Peer programs are built on shared experiences, transparency between people, and help support de-escalation calls Two breakout groups with community agencies were held, one focusing on key elements of community responder job descriptions and the other on the complementary peer and violence prevention programming. The Peer Advisory Board was asked similar questions. • Job Descriptions o Community Responders: ▪ Should have de-escalation experience and a trauma-informed background or approach ▪ Important to be able to “meet people where they are” and have a working knowledge of the Ithaca community and the resources available ▪ Ability to collaborate with police, other first responders, community agencies, and work with local business community ▪ Possess strong communication skills ▪ Be open to shift work ▪ Have experience working with people from different backgrounds and ready to respond to calls with complex situations incl. substance use and homelessness ▪ Ability to pivot and make difficult decisions quickly ▪ Operate with empathy and compassion 59 [PAGE 60] ▪ Openness to feedback from law enforcement and having law enforcement on the interview panel ▪ Ability to offer on-scene mental health first-aid ▪ Customer service and other experience working with people ▪ Community agencies and peers advocated for limited background checks and hiring people with lived experience, whereas law enforcement has more strict requirements for people who work closely with them. There is a need to consider the balance of lived experience and ability to work closely with law enforcement and sensitive information. o Supervisor ▪ Knowledge of community ▪ Trauma informed background ▪ Managerial and planning experience ▪ Experience with policy and procedure development ▪ Program design and implementation ▪ Ability to work closely with police and other emergency responders ▪ Experience coaching staff in difficult situations • Companion Peer and Violence Prevention Programming o Programs will need appropriate training / investment to be successful o Organizations should provide effective and specialized supervision o Program participants will need people skills and trust-building skills o Peers should be treated as professionals and adequately compensated o Important for community agencies to know peer roles and what violence prevention programming is available for appropriate referrals Additional public feedback from key stakeholders and the public will be sought as the program is fully developed and implemented over the next several months. NEXT STEPS Common Council should consider the attached resolution and provide guidance on the desired program outline. City staff will include funding for this program in the 2026 budget. Job descriptions for community responders and a dedicated supervisor will be drafted and completed through the civil service process to determine salaries and prepare to add positions to the City roster. Interview committees including the Deputy City Manager, Community Justice Center, Ithaca Police Department, and community representation will be put in place to support the recruitment and hiring processes. A draft training regimen will be developed for the responder unit. Goals and objectives will be drafted for the community-based peer and violence prevention programs. 60 [PAGE 61] Program Development Timeline: 61 [PAGE 62] DRAFT Resolution WHEREAS, following the murder of George Floyd in 2020 and other instances of violent or inequitable policing in the United States the City of Ithaca has committed to a Reimagining Public Safety initiative including the introduction of unarmed community responders, and WHEREAS, Common Council has resolved via several resolutions to develop and implement such a program, most recently via its 2025 Legislative Priorities, “Expand and institutionalize unarmed and community-based crisis response as a complement to traditional policing,” and WHEREAS, in April 2023 Common Council adopted a Special Committee Report directing City staff to “Develop and initiate a pilot program utilizing unarmed responders to respond to non-violent calls for service,” and WHEREAS, community members have contributed greatly to this effort over many years, informing the City of Ithaca and Tompkins County on implementing Reimagining Public Safety initiatives. Specifically, community members of color have provided invaluable contributions of time and input to help make a program like this one a reality in Ithaca, and WHEREAS, in May 2025 Common Council received a presentation proposing next steps toward the development of such a program, with the goal of a proposal being delivered before the 2026 budget, and WHEREAS, Interviews have been completed with 17 local public safety agencies, government divisions, and community-based not-for-profit agencies, providing insights to develop a right-sized community responder program for Ithaca. Interviews examined community response and service delivery work already being conducted (formally and informally), as well as what agencies see as the role of a new community responder program, and WHEREAS the Council of State Governments defines Community Responder Units as: offering an additional option for first response. Composed of multidisciplinary professionals trained to address behavioral health and quality-of-life concerns, community responder programs provide a person- centered response to 911 and other emergency calls for service. Integrating community responder programs into first response systems ensures that all calls for service can receive the most appropriate response, NOW THEREFORE BE IT RESOLVED, that the City of Ithaca Common Council commits to the development and funding of a community responder program as proposed in a September 17, 2025, legislative memo prepared by the Deputy City Manager, including these tenets of success: • Provides a teamwork approach with police • Builds trust with community • Reflects community values, involves people with lived experience 62 [PAGE 63] • Collects data for constant improvement and iteration • Adds capacity to community outreach efforts • Integrates within existing emergency response system • Collaborates with community agencies • Preserves and enhances capacity of existing community agencies • Offers more pathways for violence prevention • Effectively provides wraparound health and human services, and be it further RESOLVED, that the community responder program be developed with this initial mission and vision: Mission Statement: Ithaca's community responder unit conducts outreach, builds trust, and offers support to community members in need. They respond when dispatched, when requested by IPD, and when they proactively observe a situation where they can help. A teamwork approach with police and other community agencies enhances the capacity and effectiveness of the existing emergency response and social services systems. Vision Statement: Ithaca’s community responder program reduces overreliance on policing and disproportionate contact between minorities and the criminal justice system while providing ample access to supportive services for community members in need. And be it further, RESOLVED, that the City of Ithaca Common Council directs City staff to draft job descriptions for community responders and a community responder supervisor, develop community responder policies and procedures in consultation with the Tompkins County 911 Dispatch Center and Ithaca Police Department leadership, and outline complementary programming related to service delivery, violence prevention, and peer support, and be it further, RESOLVED, that the City of Ithaca Common Council directs the City Manager to include the cost of this program in the 2026 City Budget, which may be included as a base item or recommended as an over target request, and be it further, RESOLVED, that City staff should annually review available grant opportunities to cover program costs, and be it further, RESOLVED, hiring of future community response team members should be through an interview committee including the Deputy City Manager, Community Justice Center, Ithaca Police Department, and community representation, and be it further 63 [PAGE 64] RESOLVED, that the City of Ithaca Common Council thanks community members, community agencies, Ithaca Police Department officers and leadership, and other City staff from the City Manager’s Office, Ithaca Fire Department, Building Division, and Parking Enforcement for their invaluable input throughout this process in support of developing and implementing a successful community responder program in the City of Ithaca. 64