Finance commissioner proposes 2% property-tax increase, hiring freeze in Saratoga Springs 2026 budget

The commissioner of finance presented the proposed 2026 comprehensive budget to the City Council at the October meeting, proposing a 2% property-tax increase and recommending a hiring freeze as the city contends with rising personnel, insurance and retirement costs.

The budget presentation, required by the city charter, laid out a $61,370,000 comprehensive budget that the commissioner said balances with a 2% tax levy increase and $1.5 million drawn from reserves. The commissioner said the council must adopt a final budget by Nov. 30 under the charter and scheduled two public hearings on the proposal for Oct. 21 and Nov. 5.

The commissioner of finance said personnel and benefit costs are the main drivers of the increase: the city’s full-time workforce grew from 315 in 2021 to 361 today, retirement expenses rose from $4.4 million in 2022 to $8.2 million in the 2026 proposal, and health insurance increased from $7.8 million to about $9.9 million. Liability insurance rose from $834,000 in 2022 to $2.4 million in the proposed 2026 budget, a change the commissioner described as “188%.” The commissioner said those cost increases, plus steady or only modestly rising revenues, make continued headcount growth “not sustainable” without new revenue sources.

To limit spending growth, the finance commissioner recommended…