ECO N O M I C V I TALI T Y
4.1
Fiscal Health The City of Ithaca provides highlyvalued services for more than 30,000 residents, as well as businesses, educational institutions, not-for-profit organizations, and visitors. For its size, the City offers a wide variety of unique services, including a comprehensive sidewalk program, urban forestry, flood control on area waterways, enhancement of streams and gorges, youth programming, and economic development.
LU CL MT NC
Figure 4.2 City Expenditures by Category11
15%
$9,821,248
10%
43%
The City of Ithaca is one of the area’s largest employers, with nearly 440 full-time employees. The City’s total annual budget is just under $67 million, which funds the operation of twelve departments. The majority of these revenues come from property taxes, sales taxes, and other local sources (including fees, contracts with other municipalities, and payments in lieu of taxes). The City’s largest expenditures are related to public works and public safety.
$6,808,824
$28,590,735
32%
$21,563,992
Administration Community Programs Public Safety Public Works
Figure 4.3 City Revenues by Source12
17%
$11,182,441
17%
32%
$21,402,237
$10,980,221
20%
$13,425,000
4%
$2,766,533
1%
$850,082
5%
4%
$3,344,108
$2,441,000
Property Taxes Sales Tax State and Federal Aid Parking Revenues Sidewalk Assessments Permits, Licenses, & Fees Water & Sewer Revenues Other Revenues
11
Source: City of Ithaca 2015 Budget
12
Ibid.
The City strives to sustain and improve its services and infrastructure at a cost that allows people of all socio-economic groups to live and work within the city. In a climate in which State and Federal aid are declining, the City of Ithaca continues to face an uncertain financial future. The cost of providing municipal services continues to rise, and the challenge is to find the appropriate balance between maintaining the vital services residents and employers demand and taxpayers’ ability to pay for them. The City must optimize all sources of income, promote economic growth that expands the tax base, and invest strategically in services and infrastructure that enhance our quality of life and promote economic vitality. By providing more housing and attracting a larger population, we will expand the tax base while offering more people the opportunity to live within the city. Additional compact, mixed-use development in appropriate areas will have the greatest impact. This type of development generates higher property tax revenues per acre than single-use commercial or residential developments. It allows residents to live near jobs, services, and transit while transforming underutilized areas into desirable urban neighborhoods. Appropriate compact, mixed-use development will provide significant new development opportunities while preserving the character of our established residential neighborhoods.
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