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 +188%, health insurance ~+27%; example ambulance cost rose from ~$180,000 (2019) to $587,000 (2025).
- Revenue options presented: 2% proposed tax increase (recommended), 4.5% legal cap would add ~$620,000, eliminating the 2.25% early-payment discount would add ~$280,000; combined potential = ~$900,000.
- Fund balance: unassigned fund balance reported at $12,295,125 at end of 2023 and about $11.2 million at end of 2024 (roughly 16.3% of the budget). City policy aims for 10%–25% unassigned fund balance.

Mayor’s department and nonprofits

Joanne, speaking for the mayor’s office, described “must-have” budget items for her department — a paid secretary for land use boards, required continuing-education and conference registration for building inspectors, copier leases and basic vehicle maintenance — and noted the mayor’s department comp budget decreases from about $4.6 million in 2025 to $3.8 million in the 2026 comp proposal. She said reductions included cuts to nonprofit funding: in 2024 the mayor’s office paid about $660,602 to 12 nonprofits; the 2025 budget expanded that to nearly $750,000 and the 2026 comp proposal trims that support.

During public comment, Lois Celeste of the Saratoga Senior Center criticized the proposed cuts to nonprofits and senior services. Celeste said she was “highly disappointed” and told the council that “40% of your voting public are seniors,” urging the council to consider the human impacts if nonprofit programs are reduced.

Fund balance, hiring freeze and overtime

Councilors pressed Benita about the city’s fund balance and hiring-freeze recommendations. Benita said the comp budget includes using $1 million of fund balance to balance the budget but cautioned that further draws risked putting the fund balance below best-practice levels and could raise fiscal stress and borrowing costs.

Benita described a recommended hiring freeze as a council-level decision that would be made in coordination with HR and departments; the finance office’s draft envisions no new positions but allows department-level discussion about filling vacant posts. A councilor proposed handling detailed staffing decisions in executive session because they may involve specific employees; others said the overall hiring-freeze policy could be discussed publicly.

Public safety and contractual obligations

Council members raised public safety staffing and overtime as a priority. Commissioners noted police overtime year-to-date was down 7% while fire overtime was up 58% (figures cited in the meeting). Benita and other councilors emphasized that much of public-safety spending is contractual and that hiring alone has not reliably reduced overtime in past years.

Other revenue and expense items discussed

- Fee changes and new fees: Benita encouraged departments to propose fee increases (building permits, outdoor dining, concessions, composting, paid parking season extension) as ways to generate department-specific revenue.
- CDTA bike share: Joanne said the city has paid $25,000 annually and will revisit the partnership; councilors questioned the arrangement and discussed negotiating a revenue-sharing or different cost model.
- Legal costs: Benita and others described higher outside legal fees and changes in city-attorney coverage (two city attorneys vs periods with less coverage) as drivers of legal spending.

Next steps

Benita said the finance office will not prepare an amended budget until after department budget hearings are complete; the council will review those hearings, decide whether to adopt any of the proposed revenue options (for example, removing the early-payment discount or increasing property taxes), and then consider amendments before adoption. The mayor’s office said it will notify nonprofits in advance if proposed funding reductions remain so organizations can prepare their 2026 budgets.

Ending

The council continued departmental budget hearings at the same meeting; no formal amendments or final votes on the 2026 budget occurred at this session. The meeting adjourned after closing remarks and routine business.