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Kingston administrator proposes 0.025% EIT increase to help close 2026 budget gap
Summary
Administrator Sondra Riviello told the Town Council the 2026 budget will be ready for the Nov. 17 work session and proposed a 0.025% earned income tax increase that would raise an estimated $90,000–$120,000; she also outlined healthcare cost pressures including a projected 13% increase and potential changes to employee deductibles to save about $35,000.
Administrator Sondra Riviello told the Municipality of Kingston Town Council on Nov. 5 that the 2026 municipal budget will be ready for the Nov. 17 work session and highlighted two revenue and cost-containment options the administration is weighing.
Riviello said she is considering a small increase to out-of-pocket employee deductibles that would not change plan design or carrier and, if accepted by the municipality's two bargaining units, could save about $35,000 annually. She told Council health-care costs are expected to rise roughly 13% next year and that some employees will move from single to family coverage as part of negotiated concessions with the police department, which also increases costs.
On revenue, Riviello proposed Council consider a 0.025% increase in the earned income tax (EIT). She estimated that change would generate between $90,000 and $120,000 in additional annual revenue and offered an illustration that a 0.025% increase would add about $8.75 a year for a worker earning $35,000.
"We're trying to balance the budget while minimizing the impact on residents and maintaining competitive employee benefits," Riviello said. She said any changes to deductibles would require bargaining-unit agreement and that the Borough's health-plan design would not change.
Riviello also reported that contractual obligations with the Kingston Police Department and the Department of Public Works are among the budget's primary drivers, and said the administration will present a more detailed 2025-to-2026 cost comparison when available. She added the audit is complete and under partner review, with a final bound copy to be delivered by Dec. 1.
Council did not take a vote on the EIT suggestion at the Nov. 5 meeting; Riviello framed the proposal as an item for Council consideration at upcoming budget meetings and the Nov. 17 work session.
