Saratoga Springs finance presentation lays out 2026 'comp' budget, proposes revenue options and cuts to nonprofits

Finance Commissioner Minita opened a presentation on the city’s 2026 comprehensive budget, saying rising retirement, insurance and health-care costs have made previously sustainable spending levels no longer tenable. "We have seen a, 89% increase in retirement, a 188% increase in liability insurance," Minita said during the meeting, and noted health insurance rises of about 27% and higher capital costs for vehicles: an ambulance bought in 2019 for about $180,000 was bonded in 2025 for $587,000, which Minita characterized as an increase of roughly 226%.

Minita told the council the comp budget currently assumes a 2% property tax increase but outlined an option that would allow up to a 4.5% increase because the city did not increase taxes last year; she said that the larger tax cap would add roughly $620,000 to the budget. She also described removing a 2.25% early-payment property tax discount (per the charter) as another revenue source, which she estimated would add about $280,000. "The 620,000 essentially add up to $900,000," she said, and described one example allocation: DPS would receive roughly $500,000, DPW about $180,000, finance and the mayor’s office about $54,000 each, recreation about $45,000 and accounts about $27,000 if the full $900,000 were restored to departments.

Minita recommended that departments bring fee-increase proposals alongside any service requests. She identified possible fee and revenue changes that could be considered during the budget process, including paid parking from April 1 to Oct. 31, higher outdoor-dining fees, adjustments to concessions and composting fees, and a short-term rental registry—all as ways to generate nonproperty-tax revenue.

Nonprofit funding was a focal point of the discussion. Minita said the mayor’s department showed an apparent drop in nonprofit funding in the proposed comp budget and acknowledged that nonprofit support is one of the items that could be restored if the council opts for additional revenues. During the public comment period, Lois Celeste of the Saratoga Senior Center urged the council to reconsider cuts to nonprofit funding. "When there's no food for people, they will go to your food pantries," Celeste said, calling proposed cuts to nonprofit support "beyond floored and disappointed." Minita said the council could choose to add back revenue options she presented and direct funds to specific nonprofit programs.

Members raised the city’s fund-balance position and the risks of using reserves. Minita said the unassigned fund balance stood at about 16.3% of the adopted budget at Jan. 1, 2025, and that the city policy target is between 10% and 25%. She said the comp budget includes a $1 million allocation from fund balance and warned that greater use of reserves could affect the city’s fiscal stress score and credit rating.

Legal costs and city-attorney staffing also drew attention. Minita and others noted increases in outside counsel spending and differences in in-house attorney hours compared with prior years; council members urged examining how to reduce outside legal expense and whether staffing of the city-attorney office should be adjusted. The mayor’s department presenter, Joanne, described a set of "must-haves" for that office — items she said were contractual or required for the land-use boards — and asked the council to weigh those needs against available funds.

On staffing, Minita presented a recommended hiring-freeze policy as a finance-office proposal and said the council and HR would need to define its scope. "What we are suggesting is definitely no new positions," she said, adding that some vacant positions in the comp budget were assumed not to be refilled. Several council members said they would want public discussion of a hiring freeze but that specific personnel details or contracts should be addressed in executive session when appropriate.

Minita said department-level hearings will continue and noted that the public-safety budget hearing is scheduled for Oct. 30 so the council and departments can discuss overtime and hiring needs in detail. She said amended-budget work would follow completion of those meetings.

The meeting closed after public comment and procedural items; a motion to adjourn was moved and seconded and the chair declared the meeting adjourned.

Next steps: Council members will continue department budget hearings, the finance office will provide additional data on revenues and fund-balance estimates, and departments were asked to return with specific fee or revenue proposals if they want restoration of line items such as nonprofit support.