Saratoga Springs finance office outlines cuts and $900,000 revenue options as rising costs squeeze 2026 budget

Finance Commissioner Benita presented the proposed 2026 comprehensive budget to the Saratoga Springs City Council, saying escalating personnel and insurance costs left the city with “heartbreaking” choices and limited options to avoid cuts.

Benita said the city has seen an 89% increase in retirement costs, a 188% increase in liability insurance and about a 27% rise in health insurance, and she gave an example of capital inflation: an ambulance purchased in 2019 for about $180,000 that was financed in 2025 for $587,000.

The proposed budget holds a 2% property tax increase as Benita’s recommendation but notes the legal maximum available to the council this year would allow up to a 4.5% increase. Benita said a full 4.5% tax increase would add about $620,000 to the budget; eliminating a 2.25% early-payment property-tax discount required by the charter would add another $280,000. Combined, those two steps would provide roughly $900,000 that councilors could allocate back to departments.

Why this matters: The city’s adopted spending relies on a combination of property tax, fees and fund balance. Benita warned that drawing down fund balance further could harm the city’s fiscal stress score and credit rating, limiting future borrowing and increasing interest costs.

Most important details

- Expense drivers: retirement +89%, liability insurance…