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Ithaca council approves 5% water and sewer increase, adopts CIP and sets millage; final budget appropriation tabled
Summary
The Ithaca City Council on June 2 adopted a 5% increase to water and sewer rates, approved the 2026–2032 Capital Improvement Plan and amended the property tax millage (setting the Emergency Services millage to zero), while tabling final budget appropriation until its next meeting after officials identified a drafting error.
The Ithaca City Council on June 2 adopted several fiscal measures including a 5% increase to water and sewer rates, approved the 2026–2032 Capital Improvement Plan (CIP) and adopted property tax millage rates, while postponing final budget appropriation after a drafting error was identified.
City Treasurer/Finance Director Chris Foster, assisted by former City Treasurer Luke Klifman, presented the CIP and the proposed 2026–2027 fiscal-year budget during a public hearing. Foster reported that “the proposed budget contained an error of transition resulting in an unbalanced bottom line,” and the council voted to leave the appropriation ordinance (Resolution 2026-12) on the table until corrections can be made.
The council voted to adopt Resolution 2026-10 amending water and sewer rates; the presentation accompanying the budget stated that water and sewer rates will increase by 5%. The motion to adopt the rate change passed on a roll call vote with all six members present voting yes (Ayes: Andrew, Endter, Ester, Hubbard, Vernon, Baublitz). The council also approved Resolution 2026-11 setting property tax millage rates, amending the Emergency Services millage to 0 effective July 1, 2026 after Mayor Brett Baublitz noted the change.
Councilmembers approved the city’s 2026–2032 Capital Improvement Plan by motion. After reviewing the proposed appropriations and budget summary, Councilmember Brandon Ester moved and Councilmember James Andrew seconded a motion to table Resolution 2026-12 (the FY 2026–2027 appropriation ordinance) to the next meeting; that motion carried.
Separately, staff recommended and the council approved a contract for financial consulting services with Plante & Moran, PLLC, selecting the $200 hourly blended rate. That agreement was approved by motion (moved by Ester, seconded by Baublitz) and carried.
Other routine items handled at the meeting included approval of minutes from the May 19 meeting, excusal of absent members, and adoption of Resolution 2026-09 designating city depositories for FY 2026–2027. Public comment was limited; Shelly Brown of Greater Gratiot Development provided information about county millage renewal proposals for the Commission on Aging and for MSU Extension/4-H and economic development services. The meeting adjourned at 7:02 p.m.
What’s next: the council tabled final budget appropriation to correct the drafting error and is expected to take the appropriation ordinance up at its next meeting.
