city oF ELMIRA NEw YORK November 10, 222 Honorable Mayor Mandell, Deputy Mayor Joe Dufly, and Members of Elmira City Council: Today, the City Manager's 2023 Proposed Budget is respectfully submitted tothe Elmira City Council and residents ofthe City of Elmira, ‘This budget has been prepared in accordance with Section 51 of the City of Elmira’s Charter. The proposed 2023 Operating Budget is a comprehensive document that addresses the anticipated reverues and expenditures forall departments within the City of Elmira, including ‘Animal Control, Assessor, Buildings and Grounds, City Chamberlain, City Clerk, City Mani Code Enforcement, Corporation Counsel, Fire, Mayor and Council, Police, Public Works and Sanitation, Four years ago, a budget committee was formed by City Council. The 2023 budget committee consisted of Mayor Mendell, Deputy Mayor Joe Duffy, City Chamberein Charmin Cattan, and myself. After gathering input from department heads, the City Chambedtain and 1 ‘et regularly during the summer months and then as needed with the full committe. As ideas, suggestions and recommendations were made by all committee member, the proposed budget is the result of extensive collaboration ofthe Budget Committee. 1 would like to thank the entire Committee especially City Chamberlain Charmain Cattan, for the many hours needed to prepare the City budget. We ended 2021 with a general fund balance of $6.8 million. Over the pas six years we hhave gone from a deficit to positive fund balance. This is due to the hard work by ali Department Heads and our City Chamberlain. During this current year, S&P Global Ratings revised its outlock from stable to positive and confirmed its ‘BBB’ rating onthe Ciy. Also, as you know, the City received an award of $28,270,386 million from the American Rescue Plan announced in March 2021, In 2021, the City iramediately rolled out several programs to benefit local residents, businesses and non-profits, reaffirmed our commitment to improving tourism, ‘broadband and water infrastructure, and has shared plans to address impending nee here inthe City. A total of 921 residential properties have been approved for remodeling or repairs using [ARP funds to da, and 101 businesses and non-profits received support inthe form: of redress for lost revenve asa result of the COVID-19 pandemic. Intemet access will be improved as high- speed, fiber optic intemet service is made available throughout the City withthe aid of an ARP. rant. Significan: funds are slated for investment into stormwater maintenance and wateringiastructure improvements. With additional programs and plans announced in August 2029, the revitalization ofthe City of Elmira eontinues ito 2023 and beyond. 2023 GOALS ‘The City of Elmira has several goals as we look tothe upeoming year. These ar: + To continue te provide City services to our residents ina professional manner ‘+ To fill all vacant positions within all City Departments in support of providing excellent service to City residents ‘+ Toutilize ARP Funding for Commercial Property Rehab and Tourism ‘+ To.utilize ARP Funding for several addtional Capital Projets, totaling approximately $6.3 million dollars, and ‘+ To.continue to maintain and/or improve our bond ratings BUDGET SUMMARY In 2023, | am proposing a 1.0% property tax increase. Ata high level, the 2023 ‘Operating Budget incorporates general fund revenues of $35,791,274 and expenses of 935,791,274. Please note that we are appropriating $1,949,999 of the General Fund balance to ‘offset the 2023 proposed budget spending, Operating Revenues “The majority of revenue forthe City comes from property taxes, PILOTS, sales tax and NY State Aid. Property taxes are slated to increase modestly next year and we anticipa $15,688,721 in revenues from this area. Our PILOT wll generate approximately $234,816 ‘We will budget the same in sales tax as 2022, totaling $5,600,000, based on our anticipated share of these funds. Gur AIM money trom the state s budgeted at $4.918,80 ating Expendity “The Elmira Cty Council, Department Heads and City Staff are dedicated servants to the taxpayers. This proposed budget will maintain essential services to all residents, and in support ‘ofthis objective, the City plans to fll ll vacant positions in 2023. Another major personnel- related expense tothe City is the cost of health insurance. l am reassured to announce that the City saw only a modest inerease of approximately 2.5% for 2023,Union Negotiations We are delighted to report thatthe City has negotiated a 4-year contract with the CSEA effective January 1, 2028 through December 31, 2026, As a result, all four unions ~ CSEA slong withthe PBA, the EFFA, and the School Traffic Officers ~ are curently under contract. ECONOMIC DEVELOPMENT & COMMUNITY DEVELOPMENT ‘The City is delighted to welcome Pizza Hut back! In addition, the downtown distri is hosting several new businesses, including the WellNow Urgent Care, WMC North Restaurant and Jazz Club, andthe I'l Eagle Barrel Room Event Center Outdoor Patio and Deck. Caprotti Properties continues to purchase and develop properties downtown, including the Mark Twain. Apartment building, 1 Clemens Square, and the former Iszard’s building. The First Arena is under new management with Tadross Donner Sports and Entertainment LLC. Under this ‘management team, two sporting teams will call First Arena home. We welcome both the Elmira “Mammoth Hockey team, which began its 2022 season last month, and the Elmira Renegades, a rember of the Profesional Box Lacrosse Association, which will kick off its 2022 season in December. Furthermore, with this new First Arena management team, the entertainment angle is already live, with concerts and other activities there. Also, Community Development has applied for funding under Round 6 of the Restore New York Communities Program for funding in support of converting the former Booth School property located at 414 Davis Steet to $8 units of market rate housing. In addition, a letter of intent will be submitted for Round 7 ofthe Restore New York Communities Program for funding ‘of the Reynolds Way Project to create 62 units of affordable housing. Both properties are vacant at presen and please note that funding has not been awarded to the City at this time. In addition to economie development, the work of strengthening our communities continues. To thi enc, the City’s 2023 budget will continue to include funding from the NYS ‘Attomey General's Office for neighborhood revitalization projects focusing on new policies and practices for Code Enforcement and neighborhood housing policy.2023 CAPITAL BUDGET ‘The 2023 Capial budget encompasses projects funded by ARP, other federal and state pants, as well as bonds. The following isan outline ofthe Capital budget: Parks & Recretion $ 130000 Mate Twain Golf Course $313.00 “Transportation 3 3800497 Butdngs $238,000 Emergency Sevies 3216000 Feet $138.000 Management Sevces 330300 Proje fndec with assistance fom ARP $ 2078017 Capital Spending Total $13,047,964 EUNDING FOR CAPITAL PROJECTS state $2,963,447 Feder including American Rescue Pl) $ 66m0017 Community Development 5 Ses000 Grants Toa sone New Borowing. Net $310.0 CONCLUSION | am excited and looking forwatd to 2023 and the postive developments that continue to ‘happen in our City. Tam plesced to cubmit this budget to City Couneil and | look forward tothe supporting votes to pass this budget in early 2023. Thank you to our Budget Committee and thank you to our City Chamberlain for making this process possible. Sincerely, Lo P. fk Cine City Manager