Elmira, NY – The city of Elmira has proposed a significant increase in property taxes as part of its nearly $47 million budget for 2026, calling for a 12% hike to ensure the delivery of essential services and maintain financial stability. The proposed budget, which is $5.3 million higher than the previous year’s budget of $41.4 million, is set to be reviewed by the City Council next month.
City Manager Michael Collins outlined the necessity of the tax increase in a letter to the council, emphasizing that rising health insurance costs, employee wages, and retirement contributions, along with changes to shared services agreements, have placed considerable strain on the city’s finances. The tax increase would result in an additional annual cost of approximately $179.90 for properties assessed at $50,000, $359.80 for $100,000, and $539.70 for $150,000.
To address a budget deficit, Collins indicated that the city plans to draw nearly $1 million from its general fund balance, which has seen a substantial decline in recent years—from $7.46 million in 2023 to an estimated $2.42 million in 2024. The city’s financial challenges have been exacerbated by the termination of shared services with Chemung County and expiring union contracts.
Since 2018, the county has ended various shared services agreements that previously allowed Elmira to benefit from reduced health insurance costs and more favorable sales tax distribution. As a result, Elmira has reportedly lost approximately $23.4 million over the past decade due to these changes. Mayor Dan Mandell expressed concern over the deteriorating relationship with the county executive, citing that the city can no longer afford the financial burden resulting from these policy decisions.
The New York State Comptroller’s office has rated Elmira as “susceptible” to fiscal stress, reflecting its declining fund balance and operating deficits. The city’s financial woes are compounded by the fact that 39% of properties within its limits are tax-exempt, with only 61% contributing to the property tax levy.
Additionally, the county’s recent acquisition of a city office building for $1 million has further reduced the city’s tax base by approximately $24,000 annually. The proposed budget includes a contingency for ongoing negotiations with the Elmira Professional Firefighters Association, as their contract is set to expire at the end of the year.
A public hearing on the budget is expected to be scheduled for early January, prior to the council’s vote on adoption. Budget documents are available on the city’s official website for public review.