Work Session Budget Meeting – September 29, 2025

The Common Council held a budget work session on Monday, September 29, 2025, at 6:00 p.m. in the Common Council Chamber. The meeting began with a brief executive session to discuss personnel matters, then returned to public session. Presentations covered the 2026 tentative city manager's budget, including the finance capital plan, debt service, fee schedule, and departmental budgets for Building, Human Resources, Assessor, and Nutrition/Recreation.

Budget Presentations – Finance Overview (Tony Tracy, Comptroller)

• Revenue highlights: a $700,000 increase (3.5%) in the tax levy, additional PILOT payment of $235,000 from 645 Main Street, and $316,000 in anticipated penalties and interest from the in-rem process (which now includes 2022 and 2023 open taxes, expected to conclude spring 2026).
• Sales tax is trending upward; employee health contributions are projected to increase by 8% (no increase in 2025).
• The AIM (Aid to Municipalities) payment increased by $257,000 for 2026, continuing from 2025.
• Appropriated fund balance is projected at $500,000, leaving an unappropriated fund balance of approximately $3.5 million (total fund balance ~$17 million).
• Revenue sources: 42% from property taxes, 58% from other sources (sales tax, PILOTs, state/federal, departmental income, etc.).
• Expenses: 84% are mandatory (personnel, benefits, debt service), leaving only 16% controllable.
• Total 2026 general fund budget: $57,350,612; water fund: $9,589,622; sewer fund: $1,978,000; Section 8: $9,947,684; overall total: $78,865,918.
• Proposed tax rate: $316.25 per $1,000 assessed value, an increase of 2.98% from the current $307.11. For an average home valued at $425,000 (equalized), the annual tax bill would rise by $88.74 (about $7.39/month).

Capital Plan, Debt, and Fee Schedule

• The capital plan (reviewed in June) includes projects for vehicles, equipment, buildings, and parks; funding sources include grants, matching funds, and debt. The superintendent of public works (Mark Fetzer) may purchase some 2026 items early due to lower costs.
• Debt service: outstanding long-term bonds total $27,125,000; leases total $4,838,921. Bond anticipation notes (BANs) of $11,590,946 (including parking garage, fire trucks, machinery, vehicles) will need to be converted to long-term debt in 2026. A $17.5 million borrowing for momentum projects is anticipated, with plans to pay down to $3.8 million by 2028 using developer fees.
• Fee schedule: most fees increased by 3%, with exceptions (senior parking permits, some certificates, dog licenses, pool fees, taxi fees, etc.). The comptroller will survey surrounding municipalities for comparison.

Building Department (Nick Sisier)

• 2026 proposed budget: $773,000 (down from $775,000 in 2025).
• Permit and enforcement activity: 825 permits issued so far in 2025 (including 257 plumbing, 214 electrical, 4 geothermal, 60 solar); 955 complaints/violations handled; revenue $652,531 (including $120,414 in court fines).
• Accomplishments: nighttime/weekend enforcement, new temporary venue permit, new battery energy storage ordinance (to be presented), digitalization of records, fire safety inspections (225 conducted, 500+ letters sent).
• New NYS building codes effective December 31, 2025, require 100% electric for new one- and two-family homes. Training required: 24 hours per staff member.
• Council discussion: concerns about litter enforcement and education; the city manager noted ongoing collaboration between departments.

Human Resources Department (Joanna Duncan)

• 2026 budget request: personnel services for two full-time staff; unclassified line recommended at $18,000 (down from $25,000 in 2025 proposed, but recommended at $7,500 in the tentative budget).
• Specifically requested: $5,000 to activate performance management and compensation modules in Paycom system; $13,000 for an employee assistance program (EAP) covering stress, grief, financial literacy, and retirement planning; $1,000 for professional membership dues (SHRM).
• Paycom contract: originally budgeted $45,000 but now over $100,000; council expressed dissatisfaction with implementation and requested a review of alternatives.
• Council suggested pulling the Paycom issue offline for further analysis and to hold the budget as-is pending a decision.

Assessor's Department (Bob Moran)

• 2026 budget: $324,578 (a less than 1% increase from $321,973).
• Grievances: 93 residential (up from 36 in 2024) and 56 commercial (up from 35), attributed to economic slowdown and AI-driven mass appraisal firms.
• Exemptions: senior citizen exemptions increased 17% (from 289 to 348) due to educational mailing; veterans exemptions fell but 24 new were added after the mailing. The mailing cost was funded in prior years and is effective.
• Council noted the increase in grievances and potential for more; the assessor expects to defend the role via traditional appraisal methods.

Nutrition/Recreation Departments (Jonathan Zamora)

• Nutrition and Senior Services: 52-year-old regional meal program; averaging 60 seniors per day on-site; international menu popular; new partnership with Field Library for "Pages and Plates" book delivery. 2026 revenue: $207,000 (down from $340,000 due to expiration of COVID-era grants); expenses: $93,000 (but total expenses in budget sheet show ~$860,000). Grants applied for: Westchester County Office of the Aging ($60,000), NYP Hospital ($60,000 + $9,000), plant-based cooking grant, Westchester Community College (exercise instructor). Council praised the program's growth.
• Recreation Department: 2025 year-to-date revenue $295,000 vs. expenses $945,000, creating a ~$650,000 gap. 2026 budget anticipates $365,000 in revenue from contracts and $200,000 from sponsorships/grants, but expenses are $972,000. Council expressed serious concern about the structural deficit and asked how the gap will be filled. The city manager noted that the deficit is managed through overall budget adjustments and that the department has historically been subsidized. Council requested a detailed analysis of program costs, participation, and revenue to identify efficiencies and potential fee increases with scholarships.
• Accomplishments: first full pickleball season, Tri-County basketball program, 16,000 attendees at July 4th event, grants for financial literacy, and partnerships (YWCA summer camp saved $120,000).
• Grants: SAM grant for playground resurfacing ($1.7M, nearing final approval), EPF grant for new city parks ($675,000), but ORLP grant eliminated due to federal cuts.

City Manager's Closing Remarks (Matt Alexander)

• Summarized achievements: $150M in capital projects, $55M in grants secured, reduced debt-to-budget ratio from 71% to 47%; added walking patrols, code enforcement, fire inspections, six new firefighters, two new park laborers, and improved water infrastructure.
• The 2026 budget proposes a 2.98% tax levy increase (under the cap but requires override) — $7.39/month more for the average homeowner — to maintain services and fund six new public safety positions, park maintenance, stormwater studies, and equipment.

Liaison Reports

• Councilman Scott: reminded of BID board meeting October 7.
• Councilwoman Talbot: reported that the lake at the park is very green (algae) and asked about remediation; parks is exploring rental of machinery. Also thanked DPW for speed bumps and paving.
• Mayor: congratulated Hispanic community gala, thanked DPW, and gave condolences to the Smith family.

Key Outcomes

• No formal votes were taken; the meeting was a work session for budget review.
• Council directed the comptroller to provide additional analysis on debt interest rates, debt service schedule, and the transfer tax reserve.
• Council expressed intent to review budget lines department by department and make adjustments before adoption (due November 1).
• The Parks/Recreation deficit will be addressed through further analysis of program costs and revenue, with a goal to reduce the gap through partnerships, grants, and potentially fee restructuring.
• The Paycom system issue will be reviewed offline by the city manager, finance, and HR to determine whether to continue or seek alternatives.
• The next budget meeting is scheduled for Wednesday, October 8, 2025, at 6:00 p.m., covering Police, Fire, City Clerk, and other departments.