Ithaca Urban Renewal Agency adopts FY2026 administrative expenditure budget as presented

The Ithaca Urban Renewal Agency adopted its fiscal year 2026 administrative expenditure budget dated 10/07/2025 by unanimous vote during the board’s Oct. 7 meeting.

Staff presented the expenditure budget and related financial materials, saying the proposed spending plan increases operating expenses by less than 1% and includes a 3% adjustment for staff pay. "The budget does include $10,000 to continue to do the work on Inlet Island to get that ready for development proposals," said Nels, a staff member. The proposal maintains current staffing levels (3.63 full‑time equivalent positions) and does not add capacity.

The committee recommended the expenditure budget for adoption and the board moved and seconded the resolution. Cheyenne seconded the motion; the board voted 4–0 to adopt the administrative expenditure budget as presented.

Staff emphasized that the agency’s revenue outlook differs from the expenditure plan. Nels told the board the agency is projecting about a $36,000 operating deficit for 2026, driven primarily by flat or reduced federal grant funding (CDBG and HOME) combined with inflationary pressure on costs. He said staff plans to pursue multiple revenue strategies, including expanding the agency’s loan portfolio, advancing urban‑renewal development projects (Inlet Island, Cherry Street) and pursuing joint agreements with the city to recover staff time; the proposed budget includes $30,000 in anticipated reimbursements from joint city projects.

Board members and staff discussed the agency’s bank accounts and how prior one‑time receipts (loan payoffs, property sales) affect cash balances and revenue projections. Nels explained why the agency files an expenditure budget with the state public‑authorities regulator (the filing requires only the expenditure side), while revenue forecasts are treated as projections and monitored separately.

The agency’s packet noted limited flexibility for certain local funds because of public authorities law restrictions (staff said some local funds cannot be used to make grants or loans). The budget resolution adopted at the meeting applies to the administrative expenditure side only; revenue assumptions remain under staff monitoring and will be updated as actual receipts are realized.

Board action: the resolution adopted reads in part, "Resolved that the IURA hereby adopts the FY2026 IURA administrative expenditure budget dated 10/07/2025." The motion passed unanimously, 4–0. The board also adopted the meeting minutes and several routine governance items earlier in the session.

Looking ahead, staff will track revenue performance against the adopted expenditure budget and report back to the board if additional adjustments are needed.