Tonawanda council adopts 2026 budget with 4.5% tax levy after line-item cuts

The Tonawanda Common Council on Nov. 18 adopted a revised 2026 operating budget that raises the city's property tax levy to $16,252,698, a 4.5% increase from the current levy, after approving a package of amendments intended to restore $598,736.30 to the city's reserve fund.

Council members said the changes balance two competing priorities: avoid depleting the unassigned fund balance while limiting the immediate tax burden on residents. The council's amendment package reduced or reallocated multiple lines, including a $300,000 reduction to retirement costs, $100,000 from hospital insurance, $50,000 from community parks cameras, $50,000 from professional services, and other smaller adjustments, and created or adjusted several targeted lines (for example, a $2,000 increase for the city cemetery capital project).

"Increasing the tax rate is a necessary and responsible corrective measure to reduce the dependence on reserves," one sponsor said during debate, arguing the action was needed to keep the unassigned fund balance at or above the policy target of about 16% of operating expenses.

Opponents urged framing the vote as the lesser of difficult options. Several council members and residents warned that cutting services or deferring maintenance would reduce property values and create larger costs later. Resident Timothy Piano said, "When we underfund essential services, police, fire, infrastructure, parks, programs for seniors and families, we create a cycle that harms our local value," and argued a modest tax increase could preserve services and long-term revenue.

Council discussion was extensive and detailed. Members pressed staff on whether specific line items could be trimmed without impairing essential functions and probed assumptions behind projected retirement payouts, health-insurance increases and anticipated sales or assessments revenue. Senior staff and the treasurer appeared during the debate to clarify that certain figures (for example, state-mandated retirement costs and health-insurance projections from the city's brokers) have limited short-term flexibility.

The council also debated alternatives, including deeper cuts that would keep the levy at the tax-cap level and temporary use of reserves. Sponsors said the adopted approach preserves essential services while reducing the planned drawdown on reserves. The voting record on the primary budget resolution shows a majority in favor following the adopted amendments.

The council voted on an amended resolution to adopt the general fund, water fund and sewer fund budgets for the fiscal year beginning Jan. 1, 2026. The adopted budget sets the sewer fund budget at $2,684,518, with a sewer rate and minimum usage as described in the adopted resolution.

Next steps: the budget as adopted will proceed to any required administrative filings and, if the mayor were to veto any adopted amendment, the council discussed the mechanics of an override during the meeting. Council members also signaled plans to revisit some long-term structural issues, including contract negotiations due in 2026 that could materially affect future budgets.

Votes and procedure: The council adopted the amendment package and the final budget by roll call; the meeting transcript records aye and nay votes by member during each roll call.

What remains open: Council members requested follow-up detail on several items, including retiree payout history, health-insurance contract options and specific contingency lines. The council directed staff and the treasurer to provide updated numbers so the new administration can begin contract negotiations and multi-year planning.