Ithaca administration outlines 2026 ‘maintenance of effort’ budget; OpenGov tool to increase transparency

City of Ithaca administrators presented a preliminary budget framework and data analysis for 2026 that uses the 2025 general fund as a baseline and estimates a 6.5% property tax levy increase to maintain existing staffing and service levels.

The presentation — delivered by city staff during the Committee of the Whole meeting — included an in-depth review of local population and revenue trends, a set of eight taxpayer “personas” showing how an estimated maintenance-of-effort levy would affect different owners and renters, and a demonstration of a new OpenGov platform to make budget data public and more interactive.

Why it matters: the administration said the 6.5% estimate would, under current assumptions, translate to about a $142 annual increase for a median homeowner and that personnel costs (wages and fringe) are the largest single driver of the projected levy. Staff framed the proposed approach as a conservative starting point and said it would be refined as new information (sales tax receipts, state aid, fee-study results, and the official tax-cap calculation) becomes available.

Key elements presented - Personnel and benefits: Staff said wages and fringe make up roughly 68% of general-fund spending and are the primary upward pressure on the levy. Health insurance rose about 14% for 2025 and is expected to rise again; the city participates in a municipal insurance consortium that staff said has moderated increases compared with nonparticipating employers.

- Revenue drivers and assumptions: Sales tax was described as a bright spot (first-quarter local collections cited as up by 12.5% year-over-year in a state comptroller report), but the administration said it is treating sales-tax forecasts conservatively for 2026. State aid (including AIM payments) was described as flat in the current outlook. The administration also assumed a 15% increase in user fees as a modest, early estimate pending the outcome of a fee study underway.

- Tax base and distribution: Staff showed that in recent years the commercial share of the tax base has grown (from about 47% to 50% in the latest data cited) and argued that increasing commercial valuation helps diversify the tax burden away from single-family homeowners. Presenters used eight personas (median homeowner, senior with exemption, renter’s landlord/tenant, small business lessee, large commercial property) to illustrate how levy changes would be distributed.

- OpenGov preview: Staff demonstrated an OpenGov dashboard intended to pull data from the city’s accounting system (Munis) and present expenses, revenues, actuals and year-to-date activity in an interactive format for council and the public. They said OpenGov will not replace accounting entry in Munis but will be a read-only, user-friendly view of budget and actuals and will allow staff and council members to filter by department, object code, contracts, and other elements.

Discussion and next steps Council members asked for additional detail on the assumptions behind the 6.5% figure, for itemized contract lists (to review outsourcing and contracted services), and for a clearer schedule for the fee-study results and tax-cap calculation. Administration said it will ask departments for “over-target” requests only where a new or expanded program is proposed, that departments will be asked for vacancy reviews and potential efficiency savings, and that more granular budget submissions will be collected through OpenGov this year.

Administration also noted a list of ongoing priorities that will feed into the 2026 budget process: diversifying the tax base through planning and development, a multi-year capital planning approach (with emphasis on using reserves and reducing new debt), and continued efforts to stabilize residential property taxes. Staff said they will provide further breakdowns by midyear actuals and will circulate the presentation materials and OpenGov training opportunities to council members.

Ending note: Administrators described the 6.5% number as an initial maintenance-of-effort baseline — not a final levy — and asked council to use the upcoming months to test assumptions, review departmental over-target requests, and participate in OpenGov training so council can monitor midyear actuals and proposed changes.