Saratoga Springs officials outline 2026 budget shortfalls, propose paid-parking expansion and fee increases

Saratoga Springs City officials spent a budget workshop on rising costs for the Department of Public Works and the Recreation Department and on options to close a projected funding gap for the 2026 fiscal year. Presenters highlighted steep increases in benefits and equipment costs, recommended expanding paid parking and other fee increases, and discussed the limits of using reserves and fund balance.

Mayor Stafford told the council that health insurance, retirement and liability premiums and capital prices have jumped sharply and are outpacing revenue growth. “Health insurance have gone up about 26%. Retirement has gone up 89%. Liability insurance has gone up 188%,” Mayor Stafford said, adding that an ambulance that cost about $180,000 in 2019 now costs about $587,000. He said the city’s revenues have not kept pace with those cost increases and urged departments to evaluate fees and other revenue sources.

The workshop focused on three linked themes: (1) operating pressures in DPW, (2) Recreation Department requests to expand programming while offsetting costs, and (3) where to find one-time or recurring revenue to reduce reliance on fund balance.

Why it matters: DPW provides essential services — snow removal, street repairs, event support and facility maintenance — and Recreation runs popular programs that generate revenue. Both departments reported that mandated wage and union-contract increases, higher vendor and repair costs, and staffing shortfalls are squeezing operating lines and emergency overtime budgets.

Public works director Mike Reach told the council that recent contract and parts-price increases and an aging fleet drive repair and overtime costs. “That storm alone was $33,000 in overtime,” Reach said, describing a multi-day winter event that consumed a large share of a year’s overtime budget. Reach said DPW’s overtime lines as currently funded would cover only a limited number of major winter events and that vehicle repair and replacement costs often run into the tens of thousands per unit.

Recreation staffer John summarized the department’s comprehensive budget change request and the effect of a rising minimum wage and approved union contracts. John said Recreation sought roughly $119,600 in increased revenues and requested increases in program lines — including an expansion of Camp Saradac that would require more buses and adjusted staffing ratios. “We’re pretty fortunate, we’re having a great year so far — a little bit over 80% or 86% of our revenue and only about 60% of our expenses,” John said, noting some one-time uses of current-year revenue to smooth needs.

Revenue options and cuts: Officials described a mix of cuts already made — reductions in part-time positions, overtime and supplies — and several revenue options to direct additional money to DPW. Those options included: extending the paid-parking schedule to match the city’s outdoor-dining season (April 1–Nov. 1), an internal “community preservation fund” financed by a one-time transfer tax on property sales (transfer tax of 0.5–1% was discussed), modest increases in recreation fees (an illustrative 3% increase would raise about $46,000, 5% about $75,000), charging for EV charging, and revisiting enforcement and overnight-rate design for the paid-parking program. Mayor Stafford estimated the paid-parking schedule change could generate roughly $170,000 directed to DPW.

Officials discussed limits on using reserves and fund balance. A finance-affiliated staff speaker said that on Oct. 14 the city’s unrestricted unassigned fund balance was about $8.7 million and reviewed the council’s policy band (not to go below 10% or above 25%). The presentation noted that the comprehensive budget proposed using about $1,053,500 from unassigned fund balance plus $500,000 from other restricted reserves and $500,000 from a debt-service reserve to balance the budget, and that the city typically uses varying amounts from reserves year to year.

Council members asked for more granular backup for several lines — including the cost breakdown for staff education and ice-rink training, and more detailed projections for paid parking enforcement and overnight charging policy. Reach and others said they would work with finance to provide line-by-line backup and to study tweaks that could yield additional DPW revenue.

Process and next steps: Presenters asked council members to consider a mix of actions ahead of the November budget adoption: restore targeted DPW overtime and vehicle/repair lines where necessary, adopt operational changes to paid parking and fee schedules, and decide whether to pursue a transfer tax to seed a community preservation fund earmarked for DPW maintenance and climate/trail projects. No final budget vote occurred at the workshop; the meeting ended after routine adjournment.

Votes at a glance: The only formal action recorded on the transcript was a motion to adjourn the workshop, which passed on a voice vote with all present members saying “aye.”

The city manager and department directors said they will provide more detailed line-item backup, fund-balance projections through year-end, and options for parking, fee and rental-rate adjustments before the council’s next budget discussions.

Ending: The council agreed to follow up with written detail and a possible additional workshop to review fund-balance categories, reserve levels and the DPW/Rec line items before finalizing the 2026 budget.