ELMIRA, N.Y. (WENY) -- A deal between Chemung County and the city of Elmira could extend a five-year sales tax agreement. 

The deal began in 2013, with the county taking on the cost of the city's D-P-W and grounds workers; Chemung County also began keeping a larger portion of of the sales tax revenue it distributes to the city.

This year, that agreement will come to an end.

According to County Executive Tom Santulli, a new agreement was presented and passed unanimously in the Chemung County Legislature earlier this week.
The proposal is a two year deal, which would defer the $1.3 million dollars the city currently owes the county.

"What we did is give them a way to delay the payments for the shared services and delay those payments for the next two years," says Santulli. "[We also gave] them an extra one million, three-hundred thousand dollars to be used in any way they deem possible."

Santulli says he believes the deal would allow the city to put that money towards Elmira's tax rate.

The proposed deal would also give the Towns and Villages additional sales tax distributions of approximately $500,000 for both 2019 and 2020.

"For the taxpayers in the towns, villages and cities, this is a wonderful deal," says Santulli. "In the towns and villages, there's going to be more sales tax dollars for them."

Elmira City Mayor Dan Mandell tells WENY News the agreement will not be discussed at next weeks City Council meeting. Instead, he plans to table the issue until later this year. Meanwhile, the county says the council needs to approve the agreement before the county budget is presented on November 8th.

If the deal is not approved in time, the agreement will--by law--default to a per-capita system. For the city of Elmira, that arrangement would mean a loss of $170,000 in sales tax revenue.