The City–County Relationship
Elmira's fiscal distress cannot be explained by the city alone. A shrinking share of
the countywide sales tax and a decade of unwound shared-service agreements have moved
tens of millions of dollars away from the city — this is where that story lives.
The Slice Shrank While the Pie Grew
The most damning chart in this story: the county's retained sales tax climbed steeply
after the mid-2010s, while the city's receipts stayed essentially flat. Same economy,
same shoppers — a different split.
County-retained sales tax (A1110) vs. city-received sales tax (A1120)
NYS OSC Annual Update Document, 1995–2024.
How the loss is calculated. Had the city held its 2014 share (12.33%)
of the growing pool, it would have collected roughly
$22.8M more in
sales tax from 2015 through 2025 than it actually did. That figure comes from the city's
own analysis and matches the OSC receipts we independently pulled. It is comparable to
several years of the city's entire fund balance — see the
City Budget Explorer.
The Shared-Services Bundle (Resolution 15-114)
In February 2015 the city and county bundled five services together. A decade later most
of that bundle is being unwound — each reversal shifting costs back onto the city.
The county took on the city's street employees; the city paid $2M in year one, with the
county absorbing an additional ~$400K/year until the city paid nothing. By 2025 the county
was carrying ~$1.47M in salary and fringe. The county issued a termination
notice on 6/30/25 (effective 12/31/25) and offered a four-year, 25%/year
takeback — but the service was not actually cut; it continued under negotiation.
Status: unresolved dispute, not a completed termination.
Buildings & Grounds
Returned to city
Merged in January 2016 with five positions cut; later returned to the city. The city is
repaying roughly $900K over five years (~$181K/year).
Health Insurance
Dropped 2024
The county dropped the shared health-insurance arrangement in 2024, returning that cost
to the city.
Information Technology
Billing disputes
Shared since April 2009; marked by late and lumpy billing in 2022–2024.
Chamberlain Services
Part of the 2015 bundle
The fifth service tied to Resolution 15-114, alongside the four above.
Still being sourced. We are working to obtain the original Resolution
15-114 text and the Feb 15 2015 Public Works Shared Service Agreement, and to confirm the
October 2025 legislature minutes. Figures here come from the city's October 2025 council
presentation cross-checked against OSC data; see
Data & Sources
for what is documented versus still pending.